Beckman Coulter Announces 1999 Results.Business Editors FULLERTON Fullerton, city (1990 pop. 114,144), Orange co., S Calif., SE of Los Angeles; founded 1887, inc. 1904. The city is named for George H. Fullerton, head of a land company, who arranged to route the San Diego–Los Angeles–Santa Fe RR through the settlement in , Calif.--(BUSINESS WIRE)--Jan. 31, 2000 Beckman Coulter This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Inc. (NYSE NYSE See: New York Stock Exchange : BEC) Monday Monday: see week. announced fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1999 results for the periods ending Dec. 31, 1999. Fourth Quarter Results 1999 1998 % Chg Sales $ 517.3M $ 483.3M 7.0% Net Earnings $ 38.6M $ 18.5M 108.6% Per Diluted Share $ 1.30 $ 0.63 106.3% -- Operating income was $69.4 million, or 13.4% of sales, up from $60.9 million, or 12.6% of sales, in the fourth quarter of 1998 before restructuring. -- In the fourth quarter compared with the same period in the prior year, worldwide clinical diagnostics sales grew 7.7% to $390.9 million, while life science research sales grew 5.2% to $126.4 million. -- On a geographic basis, sales grew 7.7% in North America, 0.5% in Europe and 16.0% in Asia/Rest of World. -- When stated at 1998 currency rates, fourth quarter sales grew 7.1%. Twelve Month Results 1999 1998 % Chg Sales $ 1,808.7M $ 1,718.2M 5.3% Net Earnings $ 106.0M $ 33.5M 216.4% Per Diluted Share $ 3.57 $ 1.14 213.2% -- Operating income was $216.3 million, or 12.0% of sales, up from $133.9 million or 7.8% of sales for 1998 before restructuring. -- For the year compared with 1998, worldwide clinical diagnostics sales grew 5.6% to $1,418.2 million, while life science research sales grew 4.0% to $390.5 million. -- On a geographic basis, sales grew 6.1% in North America, 3.4% in Europe and 5.7% in Asia/Rest of World. -- When stated at 1998 currency rates, 1999 sales grew 5.0%. Fourth Quarter Discussion Sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. were led by placements of Access(R) Immunoassay Immunoassay An assay that quantifies antigen or antibody by immunochemical means. The antigen can be a relatively simple substance such as a drug, or a complex one such as a protein or a virus. Systems, SYNCHRON CX(R) and LX(R) Clinical Chemistry Systems, Gen-S(TM) Hematology hematology Branch of medicine concerned with the nature, function, and diseases of the blood. It covers the cellular and serum composition of blood, the coagulation process, blood-cell formation, hemoglobin synthesis, and disorders of all these. Systems, CEQ CEQ Council On Environmental Quality CEQ Course Experience Questionnaire (higher education) CEQ Centrale de l'Enseignement du Québec CEQ Cinema Equalizer (TM) 2000 DNA Analysis DNA analysis Any technique used to analyze genes and DNA. See Chromosome walking, DNA fingerprinting, Footprinting, In situ hybridization, Jeffries' probe, Jumping libraries, PCR, RFLP analysis, Southern blot hybridization. Systems and SAGIAN(R) Core Systems. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales growth was up 0.5% as reported, but up 7% in constant currency. Asia/Rest of World sales growth of 16% (6% in constant currency) was led by placements of cellular analysis systems and life science research products in Japan. The following clinical diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler contracts, shown with their estimated five-year sales potential, were announced during the quarter: -- Orlando Regional Health Care Systems for $5 million -- Spectrum Laboratory Network for $12 million -- Veteran's Administration in excess of $100 million -- MHA Group Purchasing Organization for $70 million The company also partnered with Chemdex Corp. (Nasdaq: CMDX) (www.chemdex.com) to provide an e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. option for the sale of life science research small instruments, accessories and supplies. In completing the Coulter integration, the company made progress in reducing excess facilities. These activities added $3.7 million to other non-operating income in the quarter, bringing other non-operating income to $4.2 million for the year, $2.0 million less than 1998. The company also reduced its debt by $50.2 million in the quarter. 1999 Year in Review The scale provided by the 1997 Coulter acquisition has moved Beckman Coulter to a top-tier position in a consolidating diagnostics industry. The cross-trained field sales and service organization, together with broad product offerings for the hospital laboratory, has made Beckman Coulter one of the most effective competitors in the diagnostics market. The clinical diagnostics sales increase of 5.6% for the year was driven by a 3.6% growth in total chemistry and an 8.1% growth in cellular analysis. The growth in cellular analysis reflects the one month lag of Coulter International sales as reported previously in the first quarter 1999 earnings release. In life science research, the company made significant progress in its robotic ro·bot·ic adj. Relating to, characteristic of, or employing robots. automation and genetic analysis business, with sales up 20.6% over 1998. This growth was primarily driven by biotechnology and pharmaceutical companies purchasing robotic automation systems for high-throughput pharmaceutical and genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. screening and the new CEQ(TM) DNA Analysis Systems for sequencing and fragment (1) In networking, one piece of a data packet that has been broken into smaller pieces in order to accommodate the maximum transmission unit (MTU) size of a network. See IP fragmentation. analysis. Through successful integration programs and focus on life science research pricing and product mix, the company improved operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from $133.9 million in 1998 to $216.3 million in 1999 before restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . Operating income has improved to a record 12% of sales for 1999. For the year, the company reduced debt $86.6 million, and in 2000 expects to reduce debt by an additional $100 million. John P. Wareham, chairman, president and chief executive officer said: &uot;We are pleased with the fourth quarter and year-end results. Our sales growth, particularly for the last half of the year, is evidence that the integration process was effective and we are operating as a powerful, unified diagnostics provider. Our margins are proof that Beckman Coulter's new scale provides efficiencies not possible for the two companies operating independently. &uot;Today, we have an outstanding portfolio of products that improve laboratory productivity. These products should deliver 4 to 5% annual sales growth and approximately 13% net earnings growth over the next couple of years,&uot; Wareham continued. &uot;To augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: this growth, we are pursuing distribution agreements, bolt-on acquisitions, and pathways into exciting, new testing areas.&uot; The Beckman Coulter Annual Meeting of Stockholders will be held on April 6, 2000, at 10 a.m. (PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) at the company's headquarters in Fullerton. Each stockholder of record as of Feb. 7, 2000 will receive formal notice of the meeting, together with the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and proxy card A proxy card is an easily-acquired or home-made substitute for a collectible card. A proxy is used when a collectible card game player does not own a card, and it would be impractical for such purposes to acquire the card. . This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding the sales potential from several of the company's clinical diagnostic contracts as well as anticipated reduction of debt, sales and earnings growth during 2000. Actual sales and earnings results and debt reduction could differ from those anticipated by these forward-looking statements as a result of a number of factors. Among other things, these factors include the impact of economic conditions in Europe and Asia, government cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. initiatives, reduction in potential market as a result of consolidation among customers, delays in introducing new products, introduction of competitive systems or products, and potential cost and interest rate increases. Beckman Coulter, Inc. is a leading provider of instrument systems and complementary products that simplify and automate To turn a set of manual steps into an operation that goes by itself. See automation. processes in life science and clinical laboratories. The company's products are used throughout the world in all phases of the battle against disease, from pioneering medical research and drug discovery to diagnostic testing Diagnostic testing Testing performed to determine if someone is affected with a particular disease. Mentioned in: Von Willebrand Disease that aids in patient treatment. Annual sales for the company totaled $1.8 billion in 1999, with approximately half of this amount generated outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. .
BECKMAN COULTER, INC.
FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in Millions, Except Amounts per Share)
Unaudited
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Sales $517.3 $483.3 $1,808.7 $1,718.2
Cost of sales 265.6 247.3 942.1 920.6
Gross profit 251.7 236.0 866.6 797.6
Operating costs
and expenses:
Selling, general
and administrative 132.2 128.7 476.9 492.3
Research and
development 50.1 46.4 173.4 171.4
Restructuring
charge (0.2) 19.1 (0.2) 19.1
Total operating cost
and expenses 182.1 194.2 650.1 682.8
Operating income 69.6 41.8 216.5 114.8
Nonoperating (income)
and expense:
Interest income (1.8) (1.3) (7.8) (13.4)
Interest expense 18.6 19.6 73.8 87.8
Other, net (3.5) (1.1) (4.2) (6.2)
Total nonoperating
expense 13.3 17.2 61.8 68.2
Earnings before
income taxes 56.3 24.6 154.7 46.6
Income taxes 17.7 6.1 48.7 13.1
Net earnings $ 38.6 $ 18.5 $ 106.0 $ 33.5
Basic earnings per
share $ 1.34 $ 0.65 $ 3.70 $ 1.19
Weighted average
number of shares
outstanding
(in thousands) 28,813 28,287 28,659 28,028
Diluted earnings
per share $ 1.30 $ 0.63 $ 3.57 $ 1.14
Weighted average
number of shares
and dilutive
shares outstanding
(in thousands) 29,737 29,438 29,655 29,331
Dividends declared
per share $ 0.16 $ 0.16 $ 0.64 $ 0.61
BECKMAN COULTER, INC.
FOURTH QUARTER REPORT
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Millions, Except Amounts per Share)
Unaudited
December 31, December 31,
1999 1998
Assets
Current assets:
Cash and equivalents $ 34.4 $ 24.7
Trade and other receivables 566.4 540.2
Inventories 313.1 302.8
Deferred income taxes 21.5 60.5
Other current assets 31.0 28.4
Total current assets 966.4 956.6
Property, plant and equipment, net 305.9 309.4
Intangibles, less accumulated
amortization of $46.8 in 1999 and
$27.6 in 1998 399.9 419.1
Goodwill, less accumulated
amortization of $26.3 in 1999 and
$14.9 in 1998 344.7 356.1
Other assets 93.9 92.1
Total assets $2,110.8 $2,133.3
Liabilities and Stockholders'
Equity
Current liabilities:
Notes payable and current
maturities of Long-term debt $ 50.0 $ 135.1
Accounts payable, accrued
expenses and Other liabilities 474.1 523.0
Income taxes 51.8 61.2
Total current liabilities 575.9 719.3
Long-term debt, less current
maturities 980.7 982.2
Other liabilities 326.3 304.9
Total liabilities 1,882.9 2,006.4
Stockholders' equity
Preferred stock, $0.10 par value;
authorized 10.0 shares; none
issued - -
Common stock, $0.10 par value;
authorized 75.0 shares; shares
issued 29.1 at 1999 and 1998;
shares outstanding 29.0 at 1999
and 28.4 at 1998 2.9 2.9
Additional paid-in capital 134.5 131.9
Retained earnings 123.0 35.4
Accumulated other comprehensive
loss (24.3) (13.9)
Treasury stock, at cost (8.2) (29.4)
Total stockholders' equity 227.9 126.9
Total liabilities and
stockholders' equity $2,110.8 $2,133.3
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