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HBIO Reports Second Quarter 2010 Revenue Growth Of 44% Over Second Quarter 2009

The non-GAAP financial information provided in this press release should be considered in addition to, not as a substitute for, the financial information provided and presented in accordance with GAAP.

About Harvard Bioscience

Harvard Bioscience ("HBIO") is a global developer, manufacturer and marketer of a broad range of specialized products, primarily apparatus and scientific instruments, used to advance life science research at pharmaceutical and biotechnology companies, universities and government laboratories worldwide. HBIO sells its products to thousands of researchers in over 100 countries primarily through its 850 page catalog (and various other specialty catalogs), its website, through distributors, including GE Healthcare, Thermo Fisher Scientific and VWR, and via our field sales organization. HBIO has sales and manufacturing operations in the United States, the United Kingdom, Germany and Spain with additional facilities in France and Canada. For more information, please visit www.harvardbioscience.com.

The Harvard Bioscience, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6426

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of such words as "will," "guidance," "objectives," "optimistic," "potential," "future,"  "expects," "plans," "estimates," "continue," "drive," "strategy," "potential," "potentially," "growth," "long-term," "projects," "projected," "intends," "believes," "goals," "sees," "seek," "develop" "possible" "new," "emerging," "opportunity," "pursue" and similar expressions that do not relate to historical matters. Forward-looking statements in this press release or that may be made during our conference call may include, but are not limited to, statements or inferences about the Company's or management's beliefs or expectations, the Company's anticipated future revenues and earnings, the strength of the Company's market position and business model, the impact of acquisitions, including the Denville Scientific acquisition, or potential acquisitions, the outlook for the life sciences industry and the field of regenerative medicine, opportunities or potential opportunities in the field of regenerative medicine, the Company's business strategy, the positioning of the Company for growth, the market demand and opportunity for the Company's current products, or products it is developing or intends to develop, and the Company's plans, objectives and intentions that are not historical facts. 

These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that may cause the Company's actual results to differ materially from those in the forward-looking statements include the Company's failure to identify potential acquisition candidates, successfully negotiate favorable pricing and other terms with acquisition candidates to enable potential acquisitions to close, successfully integrate acquired businesses or technologies, complete consolidations of business functions, expand our product offerings, introduce new products or commercialize new technologies, including in the field of regenerative medicine,  unanticipated costs relating to acquisitions, unanticipated costs arising in connection with the Company's consolidation of business functions and any restructuring initiatives, decreased demand for the Company's products due to changes in our customers' needs, our ability to obtain regulatory approvals, including FDA approval, for our products, including any products in the field of regenerative medicine, the current size or anticipated size of the regenerative medicine market, the existence and size of opportunities in the regenerative medicine market, our financial position, general economic outlook or other circumstances, overall economic trends, the seasonal nature of purchasing in Europe, economic, political and other risks associated with international revenues and operations, the impact of the current economic and financial  crisis, additional costs of complying with recent changes in regulatory rules applicable to public companies, our ability to manage our growth, our ability to retain key personnel, competition from our competitors, technological changes resulting in our products becoming obsolete, future changes to the operations or the activities of our subsidiaries due to manufacturing consolidations, our ability to meet the financial covenants contained in our credit facility, our ability to protect our intellectual property and operate without infringing on others' intellectual property, potential costs of any lawsuits to protect or enforce our intellectual property, economic and political conditions generally and those affecting pharmaceutical and biotechnology industries, research funding levels from endowments at our university customers, impact of any impairment of our goodwill or intangible assets, our acquisition of Genomic Solutions failing to qualify as a tax-free reorganization for federal tax purposes, the amount of earn-out consideration that the Company receives in connection with the disposition of the Company's Capital Equipment Business segment and factors that may impact the receipt of this consideration, such as the revenues of the businesses disposed of, plus factors described under the heading "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 or described in the Company's other public filings. The Company's results may also be affected by factors of which the Company is not currently aware. The Company may not update these forward-looking statements, even though its situation may change in the future, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

For investor inquiries, please call (508) 893-8066. Press releases may be found on our web site, http://www.harvardbioscience.com .

     
Exhibit 1    
HARVARD BIOSCIENCE, INC.
Selected Consolidated Balance Sheet Information
(Unaudited, in thousands)
 
 
  As of
  June 30, December 31,
  2010 2009
     
Assets    
     
 Cash and cash equivalents  $ 15,719  $ 16,588
 Trade receivables  13,882  14,383
 Inventories   14,636  14,406
 Property, plant and equipment  3,249  3,545
 Goodwill and other intangibles   51,648  54,513
 Other assets  3,770  3,796
 Total assets  $ 102,904  $ 107,231
     
Liabilities and Stockholders' Equity    
     
 Total current liabilities  10,181  12,258
 Total liabilities  27,418  31,974
 Stockholders' equity  75,486 75,257
 Total liabilities and stockholders' equity  $ 102,904  $ 107,231
         
         
Exhibit 2        
HARVARD BIOSCIENCE, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2010 2009 2010 2009
         
         
Revenues  $ 25,905  $ 18,049  $ 52,205  $ 37,121
Cost of product revenues  13,855  9,107  27,373  18,769
Gross profit  12,050  8,942  24,832  18,352
         
Sales and marketing expenses  4,191  2,688  7,998  5,060
General and administrative expenses  3,807  3,552  8,068  6,869
Research and development expenses  1,102  1,089  2,309  2,088
Restructuring charges  --   422  --   449
Amortization of intangible assets  578  386  1,109  730
Total operating expenses  9,678  8,137  19,484  15,196
         
Operating income  2,372  805  5,348  3,156
         
Other income (expense):        
Gain from adjustment of acquisition contingencies  429  --   429  -- 
Foreign exchange  (81)  (375)  (107)  (299)
Interest expense  (129)  (34)  (284)  (79)
Interest income  7  6  49  13
Other, net  (101)  (55)  (116)  (2)
Other income (expense), net  125  (458)  (29)  (367)
         
Income before income taxes  2,497  347  5,319  2,789
Income taxes   615  66  1,216  669
Net income   $ 1,882  $ 281  $ 4,103  $ 2,120
         
Income per share:        
Basic earnings per common share   $ 0.06  $ 0.01  $ 0.14  $ 0.07
         
Diluted earnings per common share   $ 0.06  $ 0.01  $ 0.14  $ 0.07
         
Weighted average common shares:        
Basic  29,577  29,602  29,580  29,806
Diluted  30,044  29,819  29,993  29,969
     
     
Exhibit 3    
HARVARD BIOSCIENCE, INC.
Overview of Cash Flows 
(in thousands, unaudited) 
     
  Six Months Ended
  June 30,
  2010 2009
     
Cash flows from operations:    
Net income  $ 4,103  $ 2,120
Changes in assets and liabilities  (805)  1,750
Other adjustments to operating cash flows  2,894  2,851
Net cash provided by operating activities 6,192 6,721
     
Investing activities:    
Net cash used in investing activities (2,257) (683)
     
Financing activities:    
Repayments of debt, net  (2,162)  (850)
Purchases of treasury stock  (1,751)  (2,404)
Other financing activities  180  111
Net cash used in financing activities (3,733) (3,143)
     
Effect of exchange rate changes on cash (1,071) 208
     
(Decrease) increase in cash and cash equivalents  $ (869)  $ 3,103
     
         
         
Exhibit 4        
HARVARD BIOSCIENCE, INC.
Reconciliation of US GAAP Operating Income to Non-GAAP Adjusted Operating Income 
(in thousands)
(unaudited)
  Three Months Ended Six Months Ended
  June 30, June 30,
  2010 2009 2010 2009
         
US GAAP operating income  $ 2,372  $ 805  $ 5,348  $ 3,156
         
Adjustments:        
         
Amortization of intangible assets  578  386  1,109  730
         
Inventory writedown due to restructuring  --   64  --   92
         
Restructuring charges  --   422  --   449
         
Stock-based compensation expense  675  658  1,233  970
         
Non-GAAP adjusted operating income  $ 3,625  $ 2,335  $ 7,690  $ 5,397
         
         
Exhibit 5        
HARVARD BIOSCIENCE, INC.
Reconciliation of US GAAP Net Income to Non-GAAP Adjusted Net Income 
(in thousands)
(unaudited)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2010 2009 2010 2009
         
US GAAP net income from continuing operations  $ 1,882  $ 281  $ 4,103  $ 2,120
         
Adjustments:        
         
Amortization of intangible assets  578  386  1,109  730
         
Inventory write-down due to restructuring  --   64  --   92
         
Direct acquisition costs  90  53  90  53
         
Gain from adjustment of acquisition contingencies  (429)  --   (429)  -- 
         
Restructuring charges  --   422  --   449
         
Stock-based compensation expense  675  658  1,233  970
         
Income taxes (A)  (535)  (493)  (1,152)  (868)
         
Non-GAAP adjusted net income from continuing operations   $ 2,261  $ 1,371  $ 4,954  $ 3,546
         
(A)  Income taxes includes the tax effect of adjusting for the reconciling items and the utilization of deferred tax assets that have full valuation allowances. 
         
         
Exhibit 6        
HARVARD BIOSCIENCE, INC.
Reconciliation of US GAAP Diluted Earnings Per Common Share to Non-GAAP Adjusted Diluted Earnings Per Common Share 
(unaudited)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2010 2009 2010 2009
         
US GAAP diluted earnings per common share from continuing operations  $ 0.06  $ 0.01  $ 0.14  $ 0.07
         
Adjustments:        
         
Amortization of intangible assets  0.02  0.01  0.04  0.02
         
Direct acquisition costs  0.00  0.00  0.00  0.00
         
Gain from adjustment of acquisition contingencies  (0.01)  --   (0.01)  -- 
         
Restructuring charges  --   0.01  --   0.02
         
Stock-based compensation expense  0.02  0.02  0.04  0.03
         
Income taxes (A)  (0.02)  (0.01)  (0.04)  (0.03)
         
Non-GAAP adjusted diluted earnings per common share from continuing operations  $ 0.08  $ 0.05  $ 0.17  $ 0.12
         
(A)  Income taxes includes the tax effect of adjusting for the reconciling items and the utilization of deferred tax assets that have full valuation allowances.     
                               
                               
Exhibit 7                              
HARVARD BIOSCIENCE, INC.
Reconciliation of Changes In Total Revenue Compared to the Same Period of the Prior Year (Continuing Operations)
(unaudited)
                               
      Three Months Ended  For the Year Ended Three Months Ended  For the Year Ended Three Months Ended Six Months Ended
      March 31, June 30, Sept. 30, Dec. 31, Dec. 31 March 31, June 30, Sept. 30, Dec. 31, Dec. 31, March 31, June 30, June 30,
      2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2010 2010 2010
                               
Organic growth      0.1% -2.5% -1.2% 6.4% 1.0% 0.0% -14.8% 0.0% -8.5% -5.8% 4.3% 11.0% 7.4%
                               
Acquisitions     12.6% 13.8% 8.2% 0.0% 8.2% 0.0% 0.0% 9.4% 24.5% 8.6% 29.9% 36.1% 32.9%
                               
Foreign exchange effect     2.2% 1.6% -3.7% -12.4% -3.6% -13.2% -6.9% -4.4% 3.9% -5.4% 3.7% -3.6% 0.3%
                               
Total revenue growth     14.9% 12.9% 3.3% -6.0% 5.6% -13.2% -21.7% 5.0% 19.9% -2.6% 37.9% 43.5% 40.6%
CONTACT:  Harvard Bioscience, Inc.
          David Green, President
            508 893 8999
            Fax: 508 429 8478
            dgreen@harvardbioscience.com
          Chane Graziano, CEO
            cgraziano@harvardbioscience.com
          Tom McNaughton, CFO
            tmcnaughton@harvardbioscience.com

Harvard Bioscience, Inc. Logo

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