HBIO Reports 29% First Quarter Revenue Growth
HOLLISTON, Mass., April 25 /PRNewswire/ -- Harvard Bioscience, Inc. (Nasdaq: HBIO) today reported record revenues for the first quarter of 2001. Financial highlights for the three months ended March 31, 2001 were as follows:
Revenues for the first quarter of 2001 grew 29% before unfavorable foreign exchange effects. Including foreign exchange effects revenue for the first quarter was $8,607,000, up 22% from $7,068,000 last year. Although the Company continued to make significant investments in infrastructure and the commercialization of new technologies, pro forma income from operations was $1,463,000. Pro forma net income was $1,156,000 compared to $729,000 for the same quarter last year, an increase of 59%, and on a diluted per share basis $0.05 per share compared to $0.04 per share for the same quarter last year. Pro forma net income excludes stock compensation expense and amortization of goodwill and other intangibles, net of tax effects, for both periods and common stock warrant interest expense incurred in the first quarter of 2000.
Chane Graziano, CEO of Harvard Bioscience commented: "Our first quarter growth was largely driven by organic growth in our core business. We continue to strengthen our market position with our expanded product offering, the introduction of new products and commercialization of new technologies. Market demand for our products remains strong overall."
Reported net income for the first quarter of 2001 was $272,000, or $0.01 per share, compared to a loss of $4.4 million, or $0.76 per share for the same quarter last year. Reported net income for the first quarter of 2001 included a charge of $761,000 for stock compensation expense and $184,000 for amortization of goodwill and other intangibles while the same quarter last year included $84,000 of stock compensation expense, $132,000 for amortization of goodwill and other intangibles and $4.9 million of common stock warrant interest expense. The common stock warrant interest expense was eliminated in connection with Harvard Bioscience's initial public offering in December 2000.
HBIO ended the first quarter of 2001 with cash of $42.4 million.
Harvard Bioscience is a global developer, manufacturer and marketer of innovative, enabling tools in drug discovery research at pharmaceutical and biotechnology companies, universities and government laboratories. HBIO sells approximately 10,000 products to thousands of researchers in over 60 countries though its 1,000 page catalog, and through its distributors, the most notable of which is AP Biotech. HBIO has sales and manufacturing operations in the United States, the United Kingdom, and Germany with sales facilities in France and Canada.
The statements made in this press release that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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. Forward-looking statements include, but are not limited to statements about the Company's intention to strengthen its market position, the Company's or management's confidence or expectations, the Company's business strategy, the positioning of the Company for growth, the market demand and opportunity for the Company's products, and the Company's plans, objectives and intentions contained in this press release that are not historical facts. Other 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 expand its product offering, to introduce new products or to commercialize new technologies 0r decreased demand for the Company's products due to changes in our customers needs, financial position, general economic outlook, or otherwise, as well as those set forth under the heading "Important Factors That May Affect Future Operating Results" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2000, as well as other risks described in the Company's public filings or factors, if any, 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.
As previously announced, investors can listen to a live Webcast of the first quarter earnings and updated outlook by going to the Company's web site, http://www.harvardbioscience.com, or by dialing into the conference call in "listen only" mode at (877)313-7707. The conference call will begin at 2pm on April 26.
HARVARD BIOSCIENCE, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
Revenues $8,607 $7,068
Costs and expenses:
Cost of sales 4,354 3,630
Research and development expenses 430 351
Marketing, general & administrative 2,360 1,686
Total costs and expenses (1) 7,144 5,667
Income from operations (1) 1,463 1,401
Other income (expense) net (2) 344 (303)
Income before income taxes (1)(2) 1,807 1,098
Income tax expense (3) 651 369
Net income (1)(2)(3) $1,156 $729
Income per share (1)(2)(3)(4)
Basic $0.05 $0.05
Diluted $0.05 $0.04
Weighted average common shares (4)
Basic 25,214 15,268
Diluted 25,633 17,734
(1) Excludes stock compensation expense OF $761,000 and $84,000 and
amortization of goodwill and other intangibles of $184,000 and $132,000, in 2001 and 2000, respectively.
(2) Excludes common stock warrant interest expense of $4,900,000 in 2000.
(3) Excludes tax benefit related to items described in footnote (1) of
$61,000 in 2001 and $20,000 in 2000.
(4) Assumes conversion of all outstanding shares of convertible preferred
stock and the exercise of all outstanding warrants in 2000.
HARVARD BIOSCIENCE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
Revenues $ 8,607 $7,068
Costs and expenses:
Cost of sales 4,354 3,630
Research and development expenses 430 351
Marketing, general & administrative 2,360 1,686
Stock compensation expense 761 84
Amortization of goodwill and other intangibles 184 132
Total costs and expenses 8,089 5,883
Income from operations 518 1,185
Other income (expense) net 344 (303)
Common stock warrant interest expense - (4,900)
Total other income (expense), net 344 (5,203)
Income (loss) before income taxes 862 (4,018)
Income tax expense 590 349
Net income (loss) 272 (4,367)
Preferred stock dividends - (41)
Net income (loss) available to common
stockholders $272 $(4,408)
Income (loss) per share
Basic $0.01 $(0.76)
Diluted $0.01 $(0.76)
Weighted average common shares
Basic 25,214 5,803
Diluted 25,633 5,803
Selected Consolidated Balance Sheet Information
(In thousands)
March 31, December 31,
2001 2000
Assets
Cash and cash equivalents $42,388 $35,817
Receivables 4,204 4,698
Inventories 3,780 3,722
Property, plant and equipment 1,891 1,716
Goodwill and other intangibles 9,149 9,562
Other assets 3,207 3,294
Total assets $64,619 $58,809
Liabilities
Total current liabilities $4,598 $6,368
Total liabilities 4,703 6,474
Stockholders' equity 59,916 52,335
Total liabilities and stockholders' equity $64,619 $58,809
SOURCE Harvard Bioscience, Inc.
CONTACT: Jim Warren, CFO, jwarren@harvardbioscience.com, or David Green, President, or dgreen@harvardbioscience.com, or Chane Graziano, CEO, cgraziano@harvardbioscience.com, all of Harvard Bioscience, Inc./
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