BioSource International, Inc. Announces Third Quarter 2001 Financial Results and Stock Repurchase Program.Business Editors CAMARILLO Camarillo (kă'mərē`yō), city (1990 pop. 52,303), Ventura co., S Calif.; inc. 1964. It is the center of a fertile farm area where citrus fruits and flowers are grown. , Calif.--(BUSINESS WIRE)--Oct. 25, 2001 BioSource International, Inc. (Nasdaq:BIOI), announced today its operating results for the quarter and nine months ended September September: see month. 30, 2001. Net income available to common stockholders for the three months ended September 30, 2001 was $266,000 or $.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share and $790,000 or $.07 per diluted share for the nine months ended September 30, 2001. This compares to a net loss attributable to common stockholders of ($2,946,000) or ($.35) per diluted share for the three months ended September 30, 2000 and ($2,926,000) or ($.37) per diluted share for the nine months ended September 30, 2000. Proforma Proforma A financial projection based on assumptions. net income per fully diluted share for the three months ended September 30, 2001, excluding goodwill amortization and $429,000 of expenses related to an employee severance package A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter ended September 30, 2001 increased $437,000, or 5.4%, (6.3% after eliminating the $75,000 negative impact of foreign exchange) to $8.6 million when compared to net sales for the quarter ended September 30, 2000. Net sales for the nine months ended September 30, 2001 increased $1,514,000, or 6.2%, (7.5% after eliminating the $321,000 negative impact of foreign exchange) to $26.0 million when compared to net sales for the nine months ended September 30, 2000. For the three and nine months ended September 30, 2001, the Company achieved revenue growth 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. of 8.2% and 9.6%, respectively, as compared to the similar periods last year. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales for the three and nine months ended September 30, 2001 increased 11.3% (15.3% in local currency) and 5.4% (10.5% in local currency) as compared to the similar periods last year. Sales in Japan and the rest of the world decreased 15.9% and 7.0% for the three and nine months ended September 30, 2001 as compared to similar periods in the prior year. As a result of the terrorist attacks of September 11, 2001, four shipping days were lost due to the grounding of aircraft in 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. and 8-9 working days following September 11 saw a 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 our normal daily sales activity. As a result, management estimates that sales for the three months ended September 30, 2001 were approximately $175,000 less than they otherwise would have been without the occurrence of those incidents. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. was 56% for each of the three and nine months ended September 30, 2001 compared to 58% and 60% for the three and nine months ended September 30, 2000, respectively. The decrease in gross profit margin for the three and nine months ended September 30, 2001 compared to the comparable prior year periods was due to higher infrastructure cost within manufacturing, increased depreciation expense, and increased raw material costs. Selling, marketing and administration expense for the three months ended September 30, 2001 was $3.6 million compared to $4.7 million for the three months ended September 30, 2000, a decrease of $1,100,000. As a percentage of sales, selling, marketing and administrative expenses represented 41% and 58% for the three months ended September 30, 2001 and 2000, respectively. In the quarter ended September 30, 2001, in addition to our investment in personnel and increased marketing programs of $580,000, we incurred additional increased costs of $429,000 related to an employee severance package and an employee termination. These increased costs were offset by higher increased costs of $2,100,000 in the third quarter of 2000 including transition costs and a non-cash stock compensation charges from the hiring of a new CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. in September of 2000 and legal costs related to an employee termination. Selling, marketing and administration expense for the nine months ended September 30, 2001 were $10.5 million compared to $10.2 million for the nine months ended September 30, 2000, an increase of $300,000. As a percentage of sales, selling, marketing and administrative expenses represented 40% and 42% for the nine months ended September 30, 2001 and 2000 respectively. In the nine months ended September 30, 2001, in addition to our investment in personnel and increased marketing programs of $2,200,000, we incurred additional costs of $1,089,000 related to an employee severance package and legal costs related to an employee termination as well as $388,000 of a net expense reduction from a non-cash stock compensation adjustment. These increased costs were offset by higher increased costs during the nine months ended September 30, 2000 including a $523,000 charge related to a failed follow on offering in the second quarter of 2000 and $2,100,000 of costs in the third quarter of 2000, including transition costs and a non-cash stock compensation charge resulting from the hiring of a new CEO in September of 2000, and legal costs related to an employee termination. Research and development expense for the three and nine months ended September 30, 2001 was $1,051,000 and $2,930,000, respectively, as compared to $872,000 and $2,593,000 for the comparable periods in 2000. As a percentage of sales, research and development expenses were 12% for the three months ended September 30, 2001 and 11% for every other period presented. The increase in expenses for the three and nine months ended September 30, 2001 when compared to the comparable prior year periods reflects the Company's continued efforts on new product development. The tax rate for the nine months ending September 30, 2001 benefited from R & D and other tax credits which when applied to the lower income for the period resulted in a benefit for the quarter. With the conversion of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. into common stock in September of 2000, the Company incurred a $2,384,000 charge for non-cash preferred stock dividends and 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 related to a beneficial conversion feature for the three months ended September 30, 2000. For the nine months ended September 30, 2000 the Company incurred a charge for non-cash preferred stock dividends and accretion related to a beneficial conversion feature totaling $3,853,000. "There are unprecedented opportunities for BioSource in the genomics and proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. fields," stated Len Hendrickson Hendrickson Int'l Corp. is a privately-held company with revenues in excess of $1 billion that designs and manufactures commercial full size truck suspensions. The company works with single, tandem, and tridem drive axles as well as front and trailer suspensions. , the Company's newly appointed President and Chief Executive Officer. "I am pleased to join BioSource at this exciting time. With the release of our Luminex based multiplex See multiplexing. assays and the new signal transduction Signal transduction The transmission of molecular signals from a cell's exterior to its interior. Molecular signals are transmitted between cells by the secretion of hormones and other chemical factors, which are then picked up by different cells. products including several novel ELISA ELISA (e-li´sah) Enzyme-Linked Immuno-Sorbent Assay; any enzyme immunoassay using an enzyme-labeled immunoreactant and an immunosorbent. ELISA n. assays, we are initiating our programs to exploit these opportunities. I look forward to working with our entire staff to see these through to fruition fru·i·tion n. 1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition. 2. Enjoyment derived from use or possession. 3. . "During the third quarter of 2001, BioSource completed its oligonucleotide Oligonucleotide A deoxyribonucleic acid (DNA) or ribonucleic acid (RNA) sequence composed of two or more covalently linked nucleotides. Oligonucleotides are classified as deoxyribooligonucleotides or ribooligonucleotides. production facility located in its Camarillo facility," said Hendrickson. "We intend to produce certain oligonucleotides to cGMP cGMP 3'5' cyclic guanosine monophosphate; essential in regulation of sodium channels of the retina. Decrease in cGMP concentration leads to hyperpolarization of the retinal membrane. . I am pleased to announce that we have received our first orders for products produced in this facility in October October: see month. . Also, during the third quarter, we finalized See finalization. a renegotiated 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 distribution agreement which will facilitate future sales growth in Japan." The Company also announced that the Board of Directors has approved a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. The Board has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the Company to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to $5,000,000 of its common stock. The repurchases are to be made at the discretion of management and can be made at any time, as market conditions warrant. "The Board believes that the price at which the Company's common stock is currently trading is not a proper reflection of its value," said Jean-Pierre Conte, the Company's Interim Chairman. "We believe that using the Company's excess cash to repurchase shares is an attractive way to increase long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value in this market," he said. The Company said the buy-back program would end June 30, 2003, unless extended. The Company will conduct a conference call today at 10:00 a.m. Pacific time. All interested parties may call 212/346-0157, reservation number 19832944 to participate in the call. BioSource International, Inc. is a broad based life sciences company focused on providing integrated solutions in the areas of functional genomics Noun 1. functional genomics - the branch of genomics that determines the biological function of the genes and their products genomics - the branch of genetics that studies organisms in terms of their genomes (their full DNA sequences) , proteomics, and drug discovery through the development, manufacturing, marketing and distribution of unique biologically active reagent reagent /re·a·gent/ (re-a´jent) a substance used to produce a chemical reaction so as to detect, measure, produce, etc., other substances. re·a·gent n. systems which facilitate, enable and accelerate pharmaceutical development and biomedical research Biomedical research (or experimental medicine), in general simply known as medical research, is the basic research or applied research conducted to aid the body of knowledge in the field of medicine. . This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. For these statements, we claim the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, our ability to expand our product offerings and any transition to new products, product quality and availability, any change in business conditions, changes in our sales strategy and product development plans, competitive pricing pressures, continued market acceptance of our products, name recognition of our products, delays in the development of new technology, intellectual property and proprietary rights may not be valid or infringe in·fringe v. in·fringed, in·fring·ing, in·fring·es v.tr. 1. To transgress or exceed the limits of; violate: infringe a contract; infringe a patent. 2. the rights of others, changes in customer buying patterns issues, one-time events and other important factors disclosed previously and from time to time our filings with the Securities and Exchange Commission. These cautionary statements by us should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by us. We cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. In addition, readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "anticipates," "intends," "targets," "projections", or the like to be uncertain and forward-looking. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BIOSOURCE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Nine Months Ended September 30, 2001 and 2000
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
-------- -------- -------- --------
Net sales $ 8,587 8,150 26,004 24,490
Cost of sales 3,761 3,395 11,397 9,711
-------- -------- -------- --------
Gross profit 4,826 4,755 14,607 14,780
Operating expenses:
Research and development 1,051 872 2,930 2,593
Sales and marketing 1,806 1,325 5,552 4,065
General and administrative 1,751 3,420 4,918 6,183
Amortization of intangibles 275 275 824 818
-------- -------- -------- --------
Total operating expenses 4,883 5,892 14,224 13,660
-------- -------- -------- --------
Operating income (loss) (57) (1,137) 384 1,120
Interest income (expense), net 85 13 328 (180)
Other income (expense), net (28) (47) 47 47
-------- -------- -------- --------
Income (loss) before
income taxes (0) (1,171) 760 987
Provision for (benefit from)
income taxes (266) (609) (30) 60
-------- -------- -------- --------
Net income (loss) 266 (562) 790 927
Redeemable preferred stock
dividend and accretion
of beneficial conversion -- (2,384) -- (3,853)
-------- -------- -------- --------
Net income (loss) available
to common stockholders $ 266 (2,946) 790 (2,926)
======== ======== ======== ========
-- -- -- --
Net income (loss) per share
available to common stockholders
Basic $ 0.03 (0.35) 0.08 (0.37)
======== ======== ======== ========
Diluted $ 0.02 (0.35) 0.07 (0.37)
======== ======== ======== ========
Shares used to compute net income
(loss) available to
common stockholders
Basic 10,443 8,362 10,400 7,997
======== ======== ======== ========
Diluted 10,868 8,362 11,003 7,997
======== ======== ======== ========
BIOSOURCE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share amounts)
(Unaudited)
Sept. 30, Dec. 31,
2001 2000
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 10,846 10,633
Accounts receivable, less allowance
for doubtful accounts
of $214 at Sept. 30, 2001 and
$143 at Dec. 31, 2000 5,963 5,611
Inventories, net 6,790 6,693
Prepaid expenses
and other current assets 1,242 1,261
Deferred income taxes 2,317 2,222
-------- --------
Total current assets 27,158 26,420
Property and equipment, net 4,848 4,353
Intangible assets net of accumulated
amortization of $3,103
at Sept. 30, 2001 and
$2,279 at Dec. 31, 2000 11,928 12,752
Other assets 432 382
Deferred tax assets 6,457 6,457
-------- --------
$ 50,823 50,364
======== ========
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable $ 3,286 3,275
Accrued expenses 2,559 2,688
Deferred income 253 314
Income tax payable -- 41
-------- --------
Total current liabilities 6,098 6,318
Stockholders' equity:
Common stock, $.001 par value.
Authorized 20,000,000 shares: issued
and outstanding 10,443,607 shares
at Sept. 30, 2001; issued 10,616,889
shares and outstanding 10,326,458
shares at Dec. 31, 2000 10 10
Additional paid-in capital 49,307 49,304
Accumulated deficit (2,281) (3,071)
Accumulated other comprehensive loss (2,312) (2,197)
-------- --------
Net stockholders' equity 44,725 44,046
-------- --------
$ 50,823 50,364
======== ========
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