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Meridian Bioscience Reports Third Quarter And Nine Months Operating Results, Declares Regular Cash Dividend, And Revises Fiscal 2012 Guidance

Stocks in this article: VIVO

Meridian Bioscience, Inc. (NASDAQ: VIVO):

GENERAL HIGHLIGHTS

Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today:

  • reported fiscal 2012 third quarter and nine months net sales of $42.1 million and $129.8 million, respectively, increases of 5% and 10%, respectively, from the same periods of the prior fiscal year;
  • reported third quarter operating income of $12.6 million, an increase of 24% compared to the prior year third quarter;
  • reported nine months operating income of $37.2 million, an increase of 23% compared to the same period of the prior fiscal year;
  • reported third quarter net earnings of $8.6 million, or $0.21 per diluted share, increases of 26% and 24%, respectively, compared to the fiscal 2011 third quarter. On a non-GAAP basis, earnings were $8.8 million, or $0.21 per diluted share, increases of 29% and 24%, respectively. In the fiscal 2012 third quarter, this non-GAAP basis excludes the effect of costs associated with the consolidation of its Saco, Maine operations into its Tennessee facility (see non-GAAP financial measure reconciliation);
  • reported nine months net earnings of $24.8 million, or $0.60 per diluted share, increases of 23% and 22%, respectively, compared to the same period of fiscal 2011. On a non-GAAP basis, earnings were $25.5 million, or $0.61 per diluted share, increases of 21% and 20%, respectively. In the fiscal 2012 year-to-date period, this non-GAAP basis excludes the effect of costs associated with the consolidation of its Saco, Maine operations into its Tennessee facility, and in the fiscal 2011 year-to-date period it excludes the costs of reorganizing its sales and marketing leadership (see non-GAAP financial measure reconciliation);
  • declared the regular quarterly cash dividend of $0.19 per share for the third quarter of fiscal 2012, (indicated annual rate of $0.76 per share), the same as the regular quarterly rate of fiscal 2011; and
  • revised downward its fiscal 2012 guidance of per share diluted earnings to between $0.78 and $0.81 (excluding plant consolidation costs of $0.02) on net sales of $171 million to $175 million.
   
FINANCIAL HIGHLIGHTS (UNAUDITED)

In Thousands, Except per Share Data

 

 
Three Months Ended June 30, Nine Months Ended June 30,

2012

  2011   % Change 2012   2011   % Change
Net Sales $ 42,141 $ 40,052 5 % $ 129,848 $ 118,374 10 %
Operating Income 12,612 10,131 24 % 37,244 30,183 23 %
Net Earnings 8,594 6,836 26 % 24,798 20,121 23 %
Diluted Earnings per Share $ 0.21 $ 0.17 24 % $ 0.60 $ 0.49 22 %
Diluted Earnings per Share
excluding effect of plant
consolidation costs (2012) and
sales and marketing leadership
reorganization costs (2011)
(see non-GAAP financial measure
reconciliation) $ 0.21 $ 0.17 24 % $ 0.61 $ 0.51 20 %
 
June 30,
2012 2011

 

Cash and Short-Term Investments $ 27,938 $ 25,563
Working Capital 76,298 75,340
Shareholders’ Equity 141,005 138,120
Total Assets 158,814 157,951
 

COMPANY COMMENTS

John A. Kraeutler, Chief Executive Officer, said, “The third quarter, despite positive sales growth (+5%) and strong operating income (+24%), was disappointing given our good performance in the second quarter, along with the expectation that the majority of downside surprises had been minimized. While U.S. Diagnostic sales increased by 10% during the period, European Diagnostics revenues were flat on a local currency basis but down 11% on a U. S. dollar basis. Revenue growth was led by our tests for C. difficile, foodborne and H. pylori pathogens in the U.S.; however, in each product group, growth rates declined from the strong second quarter rates. Meridian Life Science revenues improved by 4%, with the timing of large orders, again causing volatility when viewed on a sequential quarter-over-quarter basis. The Bioline business grew revenues by 12% on a local currency basis; however, negative currency dropped that rate to 9% in U.S. dollars.

Operating income increased by 24%, once again reinforcing our efficiency, and reflecting the savings from the consolidation of our core Life Science manufacturing facilities. Gross profit improved from 63% in the prior year to 66% and operating income improved to 30% of revenues. Operating strength was due to improved margins and level spending versus the prior year resulting from strong spending controls and currency.

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