Beckman Coulter Announces First Quarter Results.FULLERTON, Calif.--(BW HealthWire)--April 20, 1998--Beckman Coulter, Inc. (NYSE NYSE See: New York Stock Exchange : BEC), announced today results of the first full quarter of operations since Beckman Instruments acquired Coulter Corporation. Sales were $399 million, 72 percent greater than Beckman's first quarter in 1997, while charges associated with the acquisition and integration of Coulter contributed to a loss of $.30 per share as compared to earnings of $.54 per share in the prior year. Reported results were affected by the following factors: -- The purchase accounting treatment for acquired Coulter inventory required that it be written-up to market value, which had the effect of increasing costs of sales and suppressing first quarter gross profits as the inventory was delivered to customers. This will not be a factor in subsequent quarters, but it will affect year-to-date results for all of 1998. -- The strengthening U.S. dollar has suppressed reported sales by about 5 percent, lowering both gross profit and selling & marketing expense. -- Only January and February Coulter sales 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. have been included, as reporting of Coulter international sales has been lagged by one month to be consistent with the rest of the company. Operating and integration plans for the combined companies are proceeding as anticipated, with the objective of achieving more than $60 million in annual synergies in 1999, followed by further gains in 2000. During the first quarter, many staff functions were combined and other cost-savings initiatives were announced, including termination of manufacturing at a Coulter facility in England. These actions affected about 600 positions. During the quarter, 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. placed $400 million of Senior Notes at an average annual rate of 7.31 percent. The proceeds were used to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. existing bank borrowings, with the benefit of more
closely matching maturities and expected cash flow. Later in 1998, as
part of a plan to enhance the company's credit profile by the end
of 1999, the company expects to monetize Monetize1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. non-core assets to fund debt reduction and provide cash for maturing purchase liabilities associated with the Coulter acquisition. At the 1998 Annual Meeting, stockholders voted to adopt Beckman Coulter, Inc. as the new corporate name. This will allow the company to fully benefit from the valuable history and market presence of both companies. During the meeting, management introduced a new graphic identity that included a distinctive red symbol. This symbol's elliptical el·lip·tic or el·lip·ti·cal adj. 1. Of, relating to, or having the shape of an ellipse. 2. Containing or characterized by ellipsis. 3. a. shape, representing a blood cell, conveys both the company's focus on biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. analysis and its global leadership. Within the ellipse ellipse, closed plane curve consisting of all points for which the sum of the distances between a point on the curve and two fixed points (foci) is the same. It is the conic section formed by a plane cutting all the elements of the cone in the same nappe. are two intertwining strands that can be viewed as a unique representation of the DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. double helix double helix n. The coiled structure of a double-stranded DNA molecule in which strands linked by hydrogen bonds form a spiral configuration. Also called DNA helix, Watson-Crick helix. and the union of two industry leaders. During the quarter, Beckman Coulter began commercial shipments of its recently introduced SYNCHRON LX(R)20 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. clinical chemistry system to customers. This high-throughput 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. extends the company's automated clinical chemistry capability to include large hospitals, where it is a companion product for the COULTER(R) GenS(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. system. Successful leveraging of the installed base of GenS systems in large hospitals to place LX20 analyzers is an important example of the sales synergies that are anticipated in the Beckman Coulter combination. Also in the quarter, Beckman Coulter announced FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval of a new "free PSA free PSA Urology PSA in the circulation that is unbound to its usual carrier molecules, the protease inhibitors; free PSA is used to distinguish prostate CA from BPH, etc; free PSA levels are measured in Pts with a total PSA level between 4 and 10 ng/mL and " blood test to aid in detection of prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. . The test is expected to reduce the number of prostate biopsies Prostate Biopsy Definition Prostate biopsy is a surgical procedure that involves removing a small piece of prostate tissue for microscopic examination. by 20 percent, allowing many patients to avoid this expensive and uncomfortable procedure. Free PSA will be used when initial screening shows moderately elevated PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. levels, an indication of possible cancer. The company has extended its technical leadership in centrifugation Centrifugation A mechanical method of separating immiscible liquids or solids from liquids by the application of centrifugal force. This force can be very great, and separations which proceed slowly by gravity can be speeded up enormously in centrifugal with the introduction of the first imbalance-correcting rotor rotor: see generator; motor, electric. . With this breakthrough technology, Beckman Coulter centrifuges will be able to automatically correct for sample balance errors, greatly simplifying processing in both research and clinical settings. This capability will be particularly useful when incorporated into automation concepts that simplify testing in hospitals and drug discovery research. In drug discovery, Beckman Coulter continued to expand its leading market position in high-throughput screening High-throughput screening (HTS), is a method for scientific experimentation especially used in drug discovery and relevant to the fields of biology and chemistry. Purpose and method (HTS HTS Heights HTS Harmonized Tariff System HTS High Throughput Screening (biomolecular assay screening) HTS High-Throughput Screening (Pharmaceutical Industry) HTS Harmonized Tariff Schedule ) of candidate compounds in pharmaceutical drug discovery, with the introduction of a microtiter plate A Microtiter plate or microplate is a flat plate with multiple "wells" used as small test tubes. The microplate has become a standard tool in analytical research and clinical diagnostic testing laboratories. stacker and other accessories for Biomek Integrated Laboratory Automation Systems. HTS methods, together with advances in genomics and combinatorial chemistry Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules. Introduction Synthesis of molecules in a combinatorial fashion can quickly lead to large numbers of molecules. , are revolutionizing the pharmaceutical development process. The company's proprietary robotic automation and integrating software provides unusual value in HTS applications, which supports rapid sales growth in this segment. Louis T. Rosso, Beckman Coulter chairman and chief executive officer said, "Because Beckman and Coulter had no product redundancy and sold to the same customers, there is a good opportunity to realize sales and operational synergies that will drive both earnings accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the and cash flow. To date, we have met our integration goals and are encouraged by early progress in combining these two companies. We are satisfied with this progress and it has strengthened our confidence that we can unlock the value of this acquisition." Beckman Coulter, Inc. is a leading provider of instrument systems and complementary products that simplify and automate laboratory processes for life sciences and clinical diagnostics. The company's instrument systems, reagents, software and supplies are used throughout the world in all phases of the battle against disease. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma annual sales for the company totaled $1.8 billion in 1997, with half of this amount generated outside the United States. 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, among other things, the company's business strategy, anticipated synergies, and future cost reductions. The forward-looking statements are based largely on the company's current expectations and are subject to a number of risks and uncertainties, many of which are beyond the company's control. Actual results could differ materially from those anticipated by these forward-looking statements as a result of a number of factors, including difficulties, delays or failures to effectively integrate worldwide operations, the amount and timing of any cost saving measures, synergies or debt reduction programs, and as a result of other factors. -0-
BECKMAN COULTER INC.
FIRST QUARTER REPORT
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Millions, Except Amounts Per Share)
Unaudited
Three Months Ended
March 31,
1998 1997
Sales $399.4 $231.9
Operating costs and expenses:
Cost of sales 229.8 109.6
Marketing, general and administrative 119.7 74.8
Research and development 41.6 24.0
------ ------
391.1 208.4
------ ------
Operating income 8.3 23.5
Nonoperating income (expense):
Interest income 3.2 1.9
Interest expense (26.2) (2.8)
Other, net 2.3 (0.3)
------ -------
(20.7) (1.2)
------ -------
(Loss) earnings before income taxes (12.4) 22.3
Income taxes (4.0) 6.7
------- -------
Net (loss) earnings $ (8.4) $ 15.6
======= ========
Weighted average number of shares outstanding
-(in thousands) 27,704 27,908
Basic (loss) earnings per share $ (0.30) $ 0.56
Weighted average number of shares outstanding
-(in thousands) 27,704 28,861
Diluted (loss) earnings per share $ (0.30) $ 0.54
Dividends declared per share $ 0.15 $ 0.15
-0-
BECKMAN COULTER INC.
FIRST QUARTER REPORT
EARNINGS RECONCILIATION
(In Millions, Except Amounts Per Share)
Unaudited
Three Months Ended March 31,
1998 1997
Per Share Per Share
Loss Shares Amount Income Shares Amount
Basic EPS
Net (Loss)
Income $ (8.4) 27.7 $ (0.30) $ 15.6 27.9 $ 0.56
Effect of dilutive
stock options - - 1.0 (0.02)
--------- ----- -------- --------- ----- -------
Diluted EPS
Net (Loss)
Income $ (8.4) 27.7 $ (0.30) $ 15.6 28.9 $ 0.54
Under generally accepted accounting principles, as the company was
in a net loss position in the current quarter, 1.2 million common
share equivalents were not used to compute diluted loss per share, as
the effect was antidilutive.
-0-
BECKMAN COULTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
Unaudited
March 31, December 31,
1998 1997
Assets
Current assets:
Cash and equivalents $ 31.2 $ 33.5
Trade receivables and other 495.8 524.6
Inventories 339.8 332.3
Deferred income taxes 54.1 53.0
Other current assets 35.2 33.3
-------- --------
Total current assets 956.1 976.7
Property, plant and equipment, net 389.2 410.9
Intangibles, less accumulated
amortization of $14.9
in 1998 and $10.6 in 1997 439.8 444.9
Goodwill, less accumulated
amortization of $9.3
in 1998 and $6.0 in 1997 400.5 402.8
Other assets 89.7 95.7
-------- --------
Total assets $ 2,275.3 $ 2,331.0
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable and current maturities $ 83.0 $ 68.9
Accounts payable, accrued expenses &
other liabilities 637.6 756.4
Income taxes 62.4 69.6
-------- --------
Total current liabilities 783.0 894.9
Long-term debt, less current maturities 1,248.7 1,181.3
Other liabilities 175.8 173.0
-------- --------
Total liabilities 2,207.5 2,249.2
Stockholders' equity 67.8 81.8
-------- --------
Total liabilities and stockholders'
equity $ 2,275.3 $ 2,331.0
======== ========
CONTACT: Beckman Coulter Inc., Fullerton Michael J. Whelan, 714/773-7620 Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. |
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