Navigation Links
Techne Corporation Releases Unaudited First Quarter Fiscal Year 2012 Financial Results
Date:10/25/2011

MINNEAPOLIS, Oct. 25, 2011 /PRNewswire/ -- Techne Corporation's (NASDAQ: TECH) financial results for the quarter ended September 30, 2011 include the following highlights:

  • First quarter earnings were $27.5 million or $.74 per diluted share.  Adjusted earnings for the quarter grew 13.2% to $30.0 million or $.81 per diluted share after adjustment for intangible asset amortization and costs recognized upon the sale of inventory that was written-up to fair value as part of acquisitions completed in the quarter ended June 30, 2011.
  • Foreign exchange transaction losses for the quarter ended September 30, 2011 were $524,000 compared to foreign exchange transaction gains of $505,000 for the quarter ended September 30, 2010 causing a negative $.02 impact on comparable earnings per diluted share.
  • Net sales as reported grew 14.2% to $77.6 million for the quarter.  Organic sales grew 3.2% in the quarter.  

  • Consolidated net sales and earnings for the quarter ended September 30, 2011 were impacted by the acquisition of Boston Biochem, Inc. (Boston Biochem) on April 1, 2011 and Tocris Holdings Limited (Tocris) on April 28, 2011, including the cost recognized upon the sale of inventory that was written-up to fair value as part of the acquisitions and increased amortization of acquired intangible assets.  Consolidated net sales for the quarter ended September 30, 2011 includes $5.6 million of sales from the acquired companies.

    A weaker U.S. dollar as compared to foreign currencies improved sales by $1.9 million in the quarter ended September 30, 2011 from the comparable prior-year period.

    The Biotechnology segment includes sales made through R&D Systems' Biotechnology Division, R&D Systems Europe, Tocris, R&D Systems China, BiosPacific and Boston Biochem. Biotechnology net sales were $72.3 million, an increase of 14.7% from $63.0 million for the quarter ended September 30, 2010.  Biotechnology growth was 2.8% for the quarter ended September 30, 2011 if the sales from the acquisitions and foreign currency benefit are excluded.

    Customer sales growth for the Biotechnology segment, excluding sales from products of the acquired entities, from the same prior-year period include:Quarter EndedSeptember 30, 2011R&D Systems Biotechnology Division:Industrial, pharmaceutical  and biotechnology

    9.3%Academic

    (2.5%)Pacific Rim distributors

    UnchangedR&D Europe:Reported

    11.6%In constant currency

    (0.7%)R&D China:Reported

    24.0%In constant currency

    14.1%Hematology net sales for the quarter ended September 30, 2011 were $5.3 million, an increase of 7.9% from the comparable prior-year period.

    The gross margin percentage declined to 75.2% in the quarter ended September 30, 2011 from 77.4% in the comparable prior-year quarter due to the cost recognized upon the sale of the inventory that was written-up to fair value as part of the acquisitions and amortization of acquired intangible assets.  Gross margins were 79.0% and 77.6% the quarters ended September 30, 2011 and 2010, respectively, if such costs and amortization are excluded in both periods.

    Selling, general and administrative expenses for the quarter ended September 30, 2011 increased $3.2 million from the quarter ended September 30, 2010. The acquisitions added $1.6 million of selling, general and administrative expenses in the quarter, excluding intangible amortization that increased $461,000 in the quarter.  The increase in selling, general and administrative expense for the quarter was also impacted by increased profit sharing expense of $885,000 for the quarter.

    The effective tax rate for the quarter ended September 30, 2011 was 32.0% as compared to 32.3% for the same prior-year period.  Effective tax rates for fiscal 2012 are expected to be 31% to 33%.

    Forward Looking Statements:

    Our press releases may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements, including the expected effective tax rate, involve risks and uncertainties that may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company's actual results: the integration of the acquired companies, the introduction and acceptance of new biotechnology and hematology products, the levels and particular directions of research by the Company's customers, the impact of the growing number of producers of biotechnology research products and related price competition, general economic conditions, the retention of hematology OEM and proficiency survey business, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships.

    For additional information concerning such factors, see the section titled "Risk Factors" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission.  We undertake no obligation to update or revise any forward-looking statements we make in our press releases due to new information or future events.  Investors are cautioned not to place undue emphasis on these statements.

    Use of Adjusted Financial Measures:

    The adjusted financial measures used in this press release quantify the impact the following had on reported net sales, gross margin percentages, selling, general and administrative expenses, net earnings and earnings per share for the quarter year ended September 30, 2011 as compared to the reported amounts for the same period ended September 30, 2010:

  • fluctuations in exchange rates used to convert transactions in foreign currencies (primarily the Euro, British pound sterling and Chinese yuan) to U.S. dollars and,
  • the acquisitions of Boston Biochem, Inc. on April 1, 2011 and Tocris Holdings, Ltd on April 28, 2011, including the impact of amortizing intangible assets and the recognition of costs upon the sale of inventory written-up to fair value.

  • These adjusted financial measures are not prepared in accordance with generally accepted accounting principles (GAAP) and may be different from adjusted financial measures used by other companies.  Adjusted financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  We view these adjusted financial measures to be helpful in assessing the Company's ongoing operating results.  In addition, these adjusted financial measures facilitate our internal comparisons to historical operating results and comparisons to competitors' operating results.  We include these adjusted financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency related to supplemental information we use in our financial and operational analysis. Investors are encouraged to review the reconciliations of adjusted financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release.

    Techne Corporation has two operating subsidiaries:  Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England.  R&D Systems is a specialty manufacturer of biological products.  R&D Systems has four subsidiaries, BiosPacific, Inc. (BiosPacific), located in Emeryville, California, Boston Biochem, Inc., located in Cambridge, Massachusetts, R&D Systems China Co. Ltd., (R&D China), located in Shanghai, China and Tocris Cookson, Inc, located in Saint Louis, Missouri.  BiosPacific is a worldwide supplier of biologics to manufacturers of in vitro diagnostic systems and immunodiagnostic kits. Boston Biochem is a leading developer and manufacturer of ubiquitin-related research products. R&D China and R&D Europe distribute biotechnology products.  R&D Europe has two subsidiaries, Tocris Holding, Ltd (Tocris) of Bristol, England and R&D Systems GmbH, a German sales operation.  Tocris is a leading supplier of reagents for non-clinical life science research.

    TECHNE CORPORATION

    CONSOLIDATED STATEMENTS OF EARNINGS

    (In thousands, except per share data)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Net sales

    $77,596

    $67,945Cost of sales

    19,209

    15,350Gross margin

    58,387

    52,595Operating expenses:   Selling, general and administrative

    10,773

    7,613Research and development

    6,667

    6,619Total operating expenses

    17,440

    14,232Operating income

    40,947

    38,363Other income (expense):   Interest income

    728

    847   Other non-operating expense, net

    (1,175)

    (257)Total other (expense) income

    (447)

    590Earnings before income taxes

    40,500

    38,953Income taxes

    12,979

    12,580Net earnings

    $27,521

    $26,373Earnings per share:   Basic

    $   0.74

    $   0.71   Diluted

    $   0.74

    $   0.71Weighted average common shares outstanding:   Basic

    37,095

    37,040   Diluted

    37,170

    37,107TECHNE CORPORATION

    CONSOLIDATED BALANCE SHEETS

    (In thousands)

    (Unaudited)ASSETS

    9/30/11

    6/30/11Cash and equivalents

    $  79,235

    $ 77,613Short-term available-for-sale investments

    54,120

    63,200Trade accounts receivable

    34,092

    35,914Other receivables

    1,547

    1,946Inventory

    42,116

    44,906Other current assets

    7,900

    6,838   Current assets

    219,010

    230,417Available-for-sale investments

    148,949

    131,988Property and equipment, net

    94,352

    95,398Goodwill and intangible assets, net

    135,390

    138,915Other non-current assets

    30,735

    20,952   Total assets

    $628,436

    $617,670LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities

    $  26,236

    $  18,188Deferred taxes

    12,846

    13,360Stockholders' equity

    589,354

    586,122   Total liabilities and stockholders' equity

    $628,436

    $617,670TECHNE CORPORATION

    RECONCILIATION of ORGANIC SALES

    (In thousands)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Net sales

    $77,596

    $67,945Organic sales adjustments:Acquisitions

    (5,619)

    0Impact of foreign currency fluctuations

    (1,878)

      0Organic sales  

    $70,099

    $67,945TECHNE CORPORATION

    RECONCILIATION of  NET EARNINGS and EARNINGS per SHARE

    (In thousands, except per share data)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Net earnings

    $27,521

    $26,373Identified adjustments:Costs recognized upon sale of acquired inventory

    2,148

    0Amortization of intangibles

    1,285

    1703,433

    170Tax impact of adjustments

    (968)

    (63)2,465

    107Net earnings – Adjusted for identified  items

    $29,986

    $26,480Earnings per share – Diluted – Adjusted

    $   0.81

    $   0.71TECHNE CORPORATION

    RECONCILIATION of GROSS MARGIN PERCENTAGES

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Gross margin percentage

    75.2%

    77.4%Identified adjustments:Costs recognized upon sale of acquired inventory

    2.8%

    0.0%Amortization of intangibles

    1.0%

    0.2%Gross margin percentage – Adjusted

    79.0%

    77.6%TECHNE CORPORATION

    RECONCILIATION of SELLING, GENERAL and ADMINISTRATIVE EXPENSES

    (In thousands)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Selling, general and administrative expenses

    $10,773

    $7,613Identified selling, general and administrative expense  adjustments:Acquired companies' expense, excluding intangible amortization

    (1,562)

    0Amortization of intangibles

    (521)

    (61)Selling, general and administrative expenses – Adjusted

    $8,690

    $7,552TECHNE CORPORATION

    RECONCILIATION to INTANGIBLE AMORTIZATION

    (In thousands)

    (Unaudited)QUARTER ENDED9/30/11

    9/30/10Amortization of intangible assets was included in:Cost of goods sold

    $764

    $109Selling, general and administrative expenses

    521

    61Total amortization of intangible assets

    $1,285

    $170
    '/>"/>

    SOURCE Techne Corporation
    Copyright©2010 PR Newswire.
    All rights reserved

    Related medicine technology :

    1. Techne Corporation Declares Dividend
    2. Techne Corporation Declares Dividend
    3. Technest Holdings, Inc. to Acquire AccelPath, LLC; Issue Contingent Value Rights to Common Stockholders; and Issue Shares of Its Series E 5% Convertible Preferred Stock
    4. Techne Corporation Releases Unaudited Fourth Quarter and Fiscal Year 2011 Results
    5. Genaera Corporation Presents Interim Phase 1 Data for Obesity Compound Trodusquemine (MSI-1436) at IBC Conference
    6. CEL-SCI Corporation Releases Letter to Shareholders
    7. Alfacell Corporation to Present at UBS Global Life Sciences Conference
    8. Baxa Corporation Extends Global Reach With New Distribution Agreements in Colombia and the Dominican Republic
    9. Genaera Corporation Presents Preclinical Trodusquemine (MSI-1436) Data at the North American Association for the Study of Obesity Annual Meeting
    10. Genaera Corporation Presents Phase 1 Data for Trodusquemine (MSI-1436) at the North American Association for the Study of Obesity Annual Meeting
    11. The Quigley Corporation Reports Third Quarter Results, Increases Investment in Pharmaceutical R&D for Diabetic Neuropathy
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:6/23/2016)... -- MedSource announced today that it has selected Datatrial,s ... choice.  This latest decision demonstrates MedSource,s commitment to ... by offering a state-of-the-art electronic data capture (EDC) ... the EDC platform of choice in exchange for ... long been a preferred EDC platform by our ...
    (Date:6/23/2016)... startling report released today, National Safety Council research shows ... plan to eliminate prescription opioid overdoses. Prescription Nation ... the worst drug crisis in recorded U.S. history, assigned a "Making ... , New Mexico , Tennessee ... states, three – Michigan , Missouri ...
    (Date:6/23/2016)... 23, 2016 Research and Markets has ... 52" report to their offering. ... creates a favourable commercial environment for MedImmune to enter. The ... that will serve to drive considerable growth for effective anti-influenza ... to cap sales considerably, but development is still in its ...
    Breaking Medicine Technology:
    (Date:6/26/2016)... ... June 27, 2016 , ... Quality metrics are proliferating in ... ways they remain in the eye of the beholder, according to experts who offered ... The American Journal of Managed Care. For the full issue, click here . ...
    (Date:6/26/2016)... (PRWEB) , ... June 26, 2016 , ... PawPaws ... a new product that was developed to enhance the health of felines. The formula ... , The two main herbs in the PawPaws Cat Kidney Support Supplement ...
    (Date:6/25/2016)... ... June 25, 2016 , ... ... and applications at AcademyHealth’s Annual Research Meeting June 26-28, 2016, at the Hynes ... important health care topics including advance care planning, healthcare costs and patient and ...
    (Date:6/25/2016)... , ... June 25, 2016 , ... "With 30 hand-drawn ... specific project," said Christina Austin - CEO of Pixel Film Studios. , ProHand ... all within Final Cut Pro X . Simply select a ProHand generator and ...
    (Date:6/25/2016)... ... June 25, 2016 , ... Dr. Calvin Johnson has ... he has implemented orthobiologic procedures as a method for treating his patients. The ... first doctors to perform the treatment. Orthobiologics are substances that orthopaedic surgeons use ...
    Breaking Medicine News(10 mins):