Beckman Coulter Announces 20% Net Earnings Increase for First Quarter 2002.Business Editors & Health/Medical Writers 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)--April 29, 2002 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) announced today first quarter ended March 31, 2002 results.
First Quarter Results 2002 2001 % Chg
(Amounts in millions,
except amounts per share)
Sales $446.7 $432.7 3.2%
Constant Currency 4.7%
Net Earnings (A)(B) $28.0 $23.49(A)(B) 19.7%
Per Diluted Share $0.43 $0.37 16.2%
Segment Sales (C):
Clinical Diagnostics $313.9 $302.1 3.9%
Constant Currency 5.1%
Life Science Research $90.6 $84.7 7.0%
Constant Currency 9.3%
Specialty Testing $42.2 $45.9 (8.1%)
Constant Currency (5.9%)
Geographic Sales:
Americas $296.8 $281.6 5.4%
Constant Currency 5.7%
Europe $105.8 $103.0 2.7%
Constant Currency 5.0%
Asia $44.1 $48.1 (8.3%)
Constant Currency (1.2%)
(A) Net earnings for the first quarter 2001 include $3.9 million
(net-of-tax of $0.8 million) of amortization of goodwill and certain
other intangible assets that were not recorded during the first
quarter of 2002, pursuant to the company's adoption of Statement of
Financial Accounting Standards No. 142, "Goodwill & Other Intangible
Assets."
(B) Net earnings for the first quarter 2001 exclude the $3.1 million
(net-of-tax of $1.8 million) cumulative effect charge associated with
a change in accounting principle relating to the adoption of Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities."
(C) Certain prior year amounts have been reclassified to conform to
the current year three-division sales presentation reflecting the
formation of the Specialty Testing Division.
First Quarter Discussion Net earnings for the first quarter increased 19.7%. Contributing to this increase were higher sales and lower interest expense. Sales increased 4.7% in constant currency, with solid sales increases in The Americas A·mer·i·cas , the See America. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , partially offset by a sales decline in Asia.The strongest performing product lines in the quarter were robotic ro·bot·ic adj. Relating to, characteristic of, or employing robots. automation & genetic analysis and immunodiagnostics Immunodiagnostics is a diagnostic methodology that uses an antigen-antibody reaction as their primary means of detection. The concept of using immunology as a diagnostic tool was introduced in 1960 as a test for serum insuline. . Robotic automation & genetic analysis sales grew 20% in constant currency, driven by placements of the Biomek(R) FX laboratory automation workstation and strong CEQ CEQ Council On Environmental Quality CEQ Course Experience Questionnaire (higher education) CEQ Centrale de l'Enseignement du Québec CEQ Cinema Equalizer (TM) genetic analysis product sales. Immunodiagnostics sales grew 8% in constant currency, led by a 16% increase in 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. product sales, including such tests as the new AcuTnI(TM) cardiac assay. 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. of $49 million grew by 6% in constant currency, but was trimmed by 7% due to the stronger U.S. dollar. Comparisons for first quarter operating income were also impacted by the following special items: -- Released new CRPH, a high-sensitivity laboratory test available on the Immage(R) immunochemistry system and SYNCHRON LX(R)20 PRO chemistry analyzer to help physicians determine patient risk of coronary artery disease. -- Shipped new Cytomics(TM) FC 500, a dual laser, five-color flow cytometer for the cell-based research market. -- Introduced and shipped new CEQ(TM) 8000 genetic analysis system which uses one gel, one array and one software platform to perform a wide variety of DNA-related tests. Non-operating expense in the first quarter of 2002 was $9.0 million, an improvement of $6.4 million over prior year, driven mainly by lower interest expense and the prior year $4.7 million writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. in an equity investment. The following business developments and product announcements were significant in the first quarter: Business Developments: -- Released new CRPH, a high-sensitivity laboratory test available on the Immage(R) immunochemistry system and SYNCHRON LX(R)20 PRO chemistry analyzer to help physicians determine patient risk of coronary artery disease. -- Shipped new Cytomics(TM) FC 500, a dual laser, five-color flow cytometer for the cell-based research market. -- Introduced and shipped new CEQ(TM) 8000 genetic analysis system which uses one gel, one array and one software platform to perform a wide variety of DNA-related tests. Product Announcements: -- Released new CRPH, a high-sensitivity laboratory test available on the Immage(R) immunochemistry system and SYNCHRON LX(R)20 PRO chemistry analyzer to help physicians determine patient risk of coronary artery disease. -- Shipped new Cytomics(TM) FC 500, a dual laser, five-color flow cytometer for the cell-based research market. -- Introduced and shipped new CEQ(TM) 8000 genetic analysis system which uses one gel, one array and one software platform to perform a wide variety of DNA-related tests. (a) SNP-IT is a trademark of Orchid BioSciences, Inc. John P. Wareham Wareham, town (1990 pop. 19,232), Plymouth co., SE Mass., on an inlet of Buzzards Bay; settled 1678, inc. 1739. It is a resort as well as a shipping point for cranberries and shellfish. Other industries include the manufacture of boats and nails. , chairman, president and chief executive officer, said, "The markets that Beckman Coulter participates in are generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. . There's been a widely acknowledged slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the pharmaceutical discovery market, but the publicly funded markets are healthy as evidenced by the 15% growth in the National Institutes of Health budget. Also, internationally, the research markets were strong in the first quarter, as robotic automation is becoming more broadly adopted around the world. In our 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 business, the hospital market continues to be steady." 2002 Outlook "Looking ahead to the second quarter," Wareham said, "we expect sales to be up about 6% in constant currency, with foreign exchange trimming reported sales growth by around one percentage point. Net earnings growth should be in the 18% to 19% range. "Throughout 2002, in Clinical Diagnostics, we will benefit from several new products introduced in 2001 -- including the SYNCHRON LX(R)20 PRO closed-tube sampling clinical analyzer analyzer /ana·ly·zer/ (an´ah-li?zer) 1. a Nicol prism attached to a polarizing apparatus which extinguishes the ray of light polarized by the polarizer. 2. , the Access(R) 2 enhanced immunoassay platform and the COULTER(R) LH 750 high-volume 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. system. In Life Science Research, the recently introduced CEQ(TM) 8000 genetic analysis system and the Avanti Avanti Historic kingdom, north-central India. Located on the overland trade routes between northern and southern India, it lay within present-day Madhya Pradesh. Its capital was at Ujjayini (near present-day Ujjain). (R) J-E high performance centrifuge centrifuge (sĕn`trəfy  j), device using centrifugal force to separate two or more substances of different density, e.g., two liquids or a liquid and a solid. position us to meet the increasing demand for
tools in the genomic genomicpertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. and proteomic research areas. In Specialty Testing, our new Cytomics Cytomics is the study of cell systems (cytomes) at a single cell level. It combines all the bioinformatic knowledge to attempt to understand the molecular architecture and functionality of the cell system (Cytome). (TM) FC 500 flow cytometer cytometer /cy·tom·e·ter/ (si-tom´e-ter) a device for counting cells, either visually or automatically. cy·tom·e·ter n. and the soon-to-be-released ViCell(TM) automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. cell viability system give us new products to further penetrate the clinical research market." Concluded Wareham, "We want to affirm our outlook for the year: Total year sales should increase in the 7% to 8% range in constant currency, with foreign exchange trimming sales growth by up to one and one-half percentage points. Net earnings growth for the year should be in the 18% to 20% range. We expect the second half of the year to have stronger sales growth, driven by the timing of funding in the U.S. and Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and research markets, improved pharmaceutical spending and new product flow." Investor Conference Call As previously announced, there will be a conference call today, Monday Monday: see week. , April 29, 2002 at 9:30 am ET to discuss the first quarter ended March 31, 2002 results. The call will also be webcast live. The call is accessible to all investors through Beckman Beckman or Beckmann may refer to:
The process by which the corporation communicates with its investors. icon and find the call listed under "What's New." The webcast will be archived on both websites for future on-demand replay through Friday, May 10, 2002. This press 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 anticipated product introductions, expected sales and net earnings growth during 2002, and the effect of currency. These statements are based on information available at the time they are made and are subject to a number of risks and uncertainties. Actual results could differ from those anticipated by these forward-looking statements as a result of a number of factors, some of which may be beyond the company's control. Among other things, these factors include the impact of global economic conditions, 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, consolidation among customers, delays in introducing new products, introduction of competitive systems or products, potential cost and interest rate fluctuations, and taxes. Beckman Coulter, Inc. is a global biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. company, headquartered in Fullerton, California Fullerton is a city located in northern Orange County, California, United States. As of the 2000 census, the city had a total population of 126,003. It was founded in 1887 by George and Edward Amerige and named for George H. . The company develops and markets instruments, chemistries, software and supplies that simplify and automate To turn a set of manual steps into an operation that goes by itself. See automation. laboratory processes throughout the biomedical testing biomedical test A test intended to evaluate qualitative or quantitative derangements in physiology and predict impaired health due to exposure to hazardous materials continuum Continuum (pl. -tinua or -tinuums) can refer to:
intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue from supplies, chemistry kits and services. For more information, visit www.beckmancoulter.com.
Page 6 of 8
BECKMAN COULTER, INC.
FIRST QUARTER REPORT
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in millions, except amounts per share)
(Unaudited)
Three Months Ended
March 31,
2002 2001
Sales $446.7 $432.7
Cost of sales 239.8 230.9
Gross profit 206.9 201.8
Operating costs and expenses:
Selling, general and administrative 116.0 110.3 (A)
Research and development 41.9 42.2
Total operating costs and expenses 157.9 152.5
Operating income 49.0 49.3
Non-operating (income) and expense:
Interest income (2.2) (2.5)
Interest expense 11.8 16.4
Other, net (0.6) 1.5
Total non-operating expense 9.0 15.4
Earnings before income taxes 40.0 33.9
Income taxes 12.0 10.5
Net earnings $ 28.0 $ 23.4 (B)
Basic earnings per share $ 0.46 $ 0.39
Weighted average number of shares
outstanding (in thousands) 61,451 59,998
Diluted earnings per share $ 0.43 $ 0.37
Weighted average number of shares and
dilutive shares outstanding
(in thousands) 65,425 63,346
Dividends declared per share $ 0.085 $ 0.085
(A) Includes $4.7 million ($3.9 million net-of-tax) of amortization
of goodwill and certain other intangible assets that was not recorded
during the first quarter 2002, pursuant to the company's adoption of
Statement of Financial Accounting Standards No. 142, "Goodwill and
Other Intangible Assets."
(B) Excludes the $4.9 million ($3.1 million net-of-tax) cumulative
effect charge associated with a change in accounting principle
relating to the adoption of Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities."
BECKMAN COULTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions, except amounts per share)
March 31,
2002 December 31,
(Unaudited) 2001
Assets
Current assets:
Cash and equivalents $ 34.5 $ 36.0
Trade and other receivables 518.8 564.6
Inventories 400.4 366.1
Other current assets 70.3 68.9
Total current assets 1,024.0 1,035.6
Property, plant and equipment, net 352.5 347.4
Goodwill 353.8 335.6
Other intangibles, less accumulated
amortization of $80.8 and $83.3 at
March 31, 2002 and December 31, 2001,
respectively 353.6 382.1
Other assets 77.1 77.3
Total assets $2,161.0 $2,178.0
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable and current
maturities of long-term debt $ 57.1 $ 55.0
Accounts payable, accrued
expenses and other liabilities 353.6 384.3
Income taxes 66.0 70.6
Total current liabilities 476.7 509.9
Long-term debt, less current maturities 755.9 760.3
Other liabilities 380.1 389.6
Total liabilities 1,612.7 1,659.8
Stockholders' equity:
Preferred stock, $0.10 par value;
authorized 10.0 shares; none issued -- --
Common stock, $0.10 par value;
authorized 150.0 shares; shares
issued and outstanding 61.6 and 61.2 at
March 31, 2002 and December 31, 2001,
respectively 6.1 6.1
Additional paid-in-capital 228.3 216.5
Retained earnings 366.7 344.0
Accumulated other comprehensive
income (loss):
Cumulative foreign currency
translation adjustment (62.8) (57.2)
Derivatives qualifying as hedges 10.0 8.8
Total stockholders' equity 548.3 518.2
Total liabilities and
stockholders' equity $2,161.0 $2,178.0
Page 8 of 8
BECKMAN COULTER, INC.
FIRST QUARTER REPORT
KEY PRODUCT SALES
(Amounts in millions)
(Unaudited)
Three Months Ended
March 31, 2002
Constant
Reported Currency
$ Growth % Growth %
Routine Chemistry $ 128.5 4.0 5.1
Immunodiagnostics 84.1 7.4 8.2
Subtotal Chemistry 212.6 5.4 6.3
Hematology 101.3 1.0 2.6
Total Clinical
Diagnostics 313.9 3.9 5.1
Robotic Auto./Genetic Analysis 30.1 16.2 19.7
Centrifuge/Analytical Systems 60.5 2.9 4.8
Total Life Science
Research 90.6 7.0 9.3
Total Specialty Testing 42.2 (8.1) (5.9)
Total Beckman Coulter $ 446.7 3.2 4.7
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