HBIO Reports First Quarter 2009 Results
First Quarter Reported Results
Revenues from the Company’s continuing operations for the three
months ended
Non-GAAP adjusted income from continuing operations was
The Company ended the first quarter of 2009 with a strong balance sheet.
We had net cash (cash and cash equivalents, net of debt) totaling
See Exhibits 4 and 5 of this press release for reconciliations of GAAP income from continuing operations to non-GAAP adjusted income from continuing operations and GAAP earnings per diluted share from continuing operations to non-GAAP adjusted earnings per diluted share from continuing operations.
Mr. Graziano continued, “We see little change in these trends for the
balance of the year and therefore, on that basis, we reconfirm our
guidance for the year of
He added, “In order to achieve our long-term goal of doubling revenues and profits in the next 3-5 years, we will continue to focus on our three major objectives: operational efficiencies throughout the company, the introduction of major new products and acquisitions. With a strong balance sheet and good cash flow, I believe we are well positioned to achieve these goals and be a much stronger company coming out of the recession.”
Our revenue guidance was calculated using
Reconciliation of Guidance for US GAAP Earnings per Diluted Share From Continuing Operations to Adjusted Non-GAAP Earnings per Diluted Share From Continuing Operations | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
June 30, 2009 | December 31, 2009 | |||||||||||||||
Low Estimate |
High Estimate | Low Estimate | High Estimate | |||||||||||||
Non-GAAP adjusted diluted earnings per common share from continuing operations - A | $ | 0.05 | $ | 0.06 | $ | 0.27 | $ | 0.32 | ||||||||
Less the impact of: | ||||||||||||||||
Amortization of intangible assets | (0.01 | ) | (0.01 | ) | (0.06 | ) | (0.06 | ) | ||||||||
Stock-based compensation (SFAS No. 123®) | (0.01 | ) | (0.01 | ) | (0.07 | ) | (0.07 | ) | ||||||||
Restructuring | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Tax - B | 0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||
GAAP diluted earnings per common share from continuing operations - A | $ | 0.02 | $ | 0.03 | $ | 0.17 | $ | 0.22 | ||||||||
|
||||||||||||||||
A - Assumes no additional acquisitions. | ||||||||||||||||
B - Tax impact of above items and utilization of deferred tax assets that have full valuation allowances. |
Operating Results for Continuing Operations
Three months ended
Revenues decreased
Cost of product revenues decreased
Sales and marketing expenses decreased
General and administrative expenses decreased
Research and development expenses were
Balance Sheet
The Company ended the first quarter of 2009 with cash and cash
equivalents of
Trade receivables were
The Company spent
Restructuring
During the quarter ended
During the quarter ended
Discontinued Operations
In
Conference Call Details
As previously announced, management will host a conference call to
discuss first quarter 2009 results and business highlights and outlook,
which will be simultaneously broadcast over the Internet and can be
accessed through the
Use of Non-GAAP Financial Information
In this press release, we have included non-GAAP financial information
including adjusted operating income from continuing operations, adjusted
income from continuing operations and adjusted earnings per diluted
share from continuing operations. We believe that this non-GAAP
financial information provides investors with an enhanced understanding
of the underlying operations of the business. For the periods presented,
these non-GAAP financial measures of income have excluded certain
expenses primarily resulting from purchase accounting or events that we
do not believe are related to the underlying operations of the business
such as amortization of intangibles related to acquisitions, fair value
adjustments of inventory and backlog related to acquisitions, asset
write-down expenses, costs related to acquisition initiatives,
restructuring expenses (including related inventory write-downs),
discontinued operations and stock-based compensation expense. They also
exclude the tax impact of the reconciling items and the utilization of
deferred tax assets that have full valuation allowances. This non-GAAP
financial information approximates information used by our management to
internally evaluate the operating results of the Company. Tabular
reconciliations of our non-GAAP adjusted income and earnings per diluted
share from continuing operations for the three months ended
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
This press release contains, and our conference call may contain, forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "guidance,", “objectives,” "expects," "plans," "estimates," "projects," "intends," "believes,” “goals,” “sees,” 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, the outlook for the life sciences industry, 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 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 successfully integrate acquired businesses or
technologies, complete consolidations of business functions, expand its
product offerings, introduce new products or commercialize new
technologies, including our new micro liter spectrophotometer and
electrophoresis products, unanticipated costs relating to acquisitions,
unanticipated costs arising in connection with the Company’s consolidation
of business functions, decreased demand for the Company’s products due
to changes in its customers’ needs, financial position, or other
circumstances, overall economic trends, the seasonal nature of
purchasing in
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) | ||||||
March 31, | December 31, | |||||
2009 |
2008 |
|||||
Assets | ||||||
Cash and cash equivalents | $ | 15,883 | $ | 13,698 | ||
Trade receivables | 12,096 | 15,086 | ||||
Inventories | 11,997 | 11,901 | ||||
Property, plant and equipment | 3,208 | 3,221 | ||||
Goodwill and other intangibles | 32,854 | 33,782 | ||||
Other assets | 3,868 | 3,583 | ||||
Total assets | $ | 79,906 | $ | 81,271 | ||
Liabilities and Stockholder's Equity | ||||||
Total current liabilities | 10,079 | 11,215 | ||||
Total liabilities | 13,225 | 14,553 | ||||
Stockholders’ equity | 66,681 | 66,718 | ||||
Total liabilities and stockholders’ equity | $ | 79,906 | $ | 81,271 |
Exhibit 2 | |||||||||
HARVARD BIOSCIENCE, INC. | |||||||||
Consolidated Statements of Operations | |||||||||
(In thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2009 |
2008 |
||||||||
Revenues | $ | 19,072 | $ | 21,959 | |||||
Cost of product revenues | 9,662 | 11,628 | |||||||
Gross profit | 9,410 | 10,331 | |||||||
Sales and marketing expenses | 2,372 |
|
2,841 | ||||||
General and administrative expenses | 3,317 | 3,756 | |||||||
Research and development expenses | 999 | 1,081 | |||||||
Restructuring charges | 27 | 581 | |||||||
Amortization of intangible assets | 344 | 506 | |||||||
Total operating expenses | 7,059 | 8,765 | |||||||
Operating income | 2,351 | 1,566 | |||||||
Other income (expense): | |||||||||
Foreign exchange | 76 | 193 | |||||||
Interest expense | (45 | ) | (130 | ) | |||||
Interest income | 7 | 78 | |||||||
Other, net | 53 | 54 | |||||||
Other income, net | 91 | 195 | |||||||
Income from continuing operations before income taxes | 2,442 | 1,761 | |||||||
Income taxes | 603 | 544 | |||||||
Income from continuing operations | 1,839 | 1,217 | |||||||
Loss from discontinued operations, net of tax | - | (530 | ) | ||||||
Net income | $ | 1,839 | $ | 687 | |||||
Income (loss) per share: | |||||||||
Basic earnings per common share from continuing operations | $ | 0.06 | $ | 0.04 | |||||
Discontinued operations | - | (0.02 | ) | ||||||
Basic earnings per common share | $ | 0.06 | $ | 0.02 | |||||
Diluted earnings per common share from continuing operations | $ | 0.06 | $ | 0.04 | |||||
Discontinued operations | - | (0.02 | ) | ||||||
Diluted earnings per common share | $ | 0.06 | $ | 0.02 | |||||
Weighted average common shares: | |||||||||
Basic | 30,012 | 30,875 | |||||||
Diluted | 30,120 | 31,445 |
Exhibit 3 | ||||||
HARVARD BIOSCIENCE, INC. | ||||||
Reconciliation of US GAAP Operating Income from Continuing Operations to Non-GAAP Adjusted Operating Income from Continuing Operations | ||||||
(in thousands) | ||||||
(unaudited) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2009 | 2008 | |||||
US GAAP operating income | $ | 2,351 | $ | 1,566 | ||
Adjustments: | ||||||
Amortization of intangible assets | 344 | 506 | ||||
Inventory writedown due to restructuring | 28 | 258 | ||||
Restructuring charges | 27 | 581 | ||||
Stock-based compensation expense | 312 | 430 | ||||
Non-GAAP adjusted operating income | $ | 3,062 | $ | 3,341 |
Exhibit 4 | ||||||||
HARVARD BIOSCIENCE, INC. | ||||||||
Reconciliation of US GAAP Income from Continuing Operations to Non-GAAP Adjusted Income from Continuing Operations | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2009 | 2008 | |||||||
US GAAP income from continuing operations | $ | 1,839 | $ | 1,217 | ||||
Adjustments: | ||||||||
Amortization of intangible assets | 344 | 506 | ||||||
Inventory writedown due to restructuring | 28 | 258 | ||||||
Restructuring charges | 27 | 581 | ||||||
Stock-based compensation expense | 312 | 430 | ||||||
Income taxes (A) | (375 | ) | (529 | ) | ||||
Non-GAAP adjusted income from continuing operations | $ | 2,175 | $ | 2,463 | ||||
(A) Income taxes includes the tax effect of adjusting for the amortization of intangible assets, restructuring charges and stock-based compensation. They also exclude the tax impact of the reconciling items and the utilization of deferred tax assets that have full valuation allowances. |
Exhibit 5 | ||||||||
HARVARD BIOSCIENCE, INC. | ||||||||
Reconciliation of US GAAP Diluted Earnings Per Common Share from Continuing Operations to Non-GAAP Adjusted Diluted Earnings Per Common Share from Continuing Operations | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2009 | 2008 | |||||||
US GAAP diluted earnings per common share from continuing operations | $ | 0.06 | $ | 0.04 | ||||
Adjustments: | ||||||||
Amortization of intangible assets | 0.01 | 0.02 | ||||||
Inventory writedown due to restructuring | 0.00 | 0.01 | ||||||
Restructuring charges | 0.00 | 0.02 | ||||||
Stock-based compensation expense | 0.01 | 0.01 | ||||||
Income Taxes (A) | (0.01 | ) | (0.02 | ) | ||||
Non-GAAP adjusted diluted earnings per common share from continuing operations | $ | 0.07 | $ | 0.08 | ||||
(A) Income taxes includes the tax effect of adjusting for the amortization of intangible assets, restructuring charges and stock-based compensation. They also exclude the tax impact of the reconciling items and the utilization of deferred tax assets that have full valuation allowances. |
Exhibit 6 | ||||||||||||||||||||||||||||||||
HARVARD BIOSCIENCE, INC. | ||||||||||||||||||||||||||||||||
Reconciliation of Changes In Total Revenue Compared to the Same Period of the Prior Year (Continuing Operations) | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
Three Months Ended | For the Year Ended | Three Months Ended | For the Year Ended | Three 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, | Sept. 30, | Dec. 31, | Dec. 31 | March 31, | |||||||||||||||||
2006 | 2006 | 2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2007 | 2007 | 2008 | 2008 | 2008 | 2008 | 2008 | 2009 | |||||||||||||||||
Organic growth | 11.9% | 11.2% | 3.7% | 7.8% | 8.5% | -2.7% | 4.4% | -1.9% | -3.5% | -1.0% | 0.1% | -2.5% | -1.2% | 6.4% | 1.0% | 0.0% | ||||||||||||||||
Acquisitions | 0.0% | 0.0% | 3.6% | 7.6% | 2.9% | 7.7% | 4.2% | 0.0% | 13.5% | 6.6% | 12.6% | 13.8% | 8.2% | 0.0% | 8.2% | 0.0% | ||||||||||||||||
Foreign exchange effect | -4.2% | 0.5% | 3.0% | 6.1% | 1.6% | 5.0% | 3.6% | 4.1% | 3.1% | 3.9% | 2.2% | 1.6% | -3.7% | -12.4% | -3.6% | -13.2% | ||||||||||||||||
Total revenue growth | 7.7% | 11.7% | 10.3% | 21.5% | 13.0% | 10.0% | 12.2% | 2.2% | 13.1% | 9.5% | 14.9% | 12.9% | 3.3% | -6.0% | 5.6% | -13.2% |
Source:
Harvard Bioscience, Inc.
David Green, 508-893-8999
President
dgreen@harvardbioscience.com
Fax:
508-429-8478
or
Chane Graziano
CEO
cgraziano@harvardbioscience.com
or
Tom
McNaughton
CFO
tmcnaughton@harvardbioscience.com
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