Dade Behring Reports Continued Revenue and Profitability Growth in the First Quarter of 2003.Business Editors DEERFIELD Deerfield, towns, United States Deerfield. 1 Village (1990 pop. 17,327), Cook and Lake counties, NE Ill., a residential suburb of Chicago; inc. 1903. The huge Sara Lee Bakery is its major industry, and there is other light manufacturing. , Ill.--(BUSINESS WIRE)--May 12, 2003 Dade v. t. 1. To hold up by leading strings or by the hand, as a child while he toddles. Little children when they learn to go By painful mothers daded to and fro. - Drayton. v. i. 1. Behring Beh·ring , Emil Von 1854-1917. German physiologist. He won a 1901 Nobel Prize for work on serum immunization against diphtheria and tetanus. Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DADE) today reported continued year-over-year revenue growth in the first quarter ended March 31, 2003. Net income for the quarter was $10.8 million, or $0.26 per share on a 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. basis. Net income for the same period in 2002 was $15.6 million, which included a $20.0 million gain from the required adoption of FAS 141. Income excluding the gain from the adoption of FAS 141 increased by $15.2 million over the prior year's period. "Our sole focus on the clinical lab and the resulting strength of our partnership with our customers have been key drivers of Dade Behring's continued success. Our customers in the clinical lab know they can count on Dade Behring people to deliver the product and service solutions they need," said Jim Reid-Anderson, Dade Behring's Chairman, President and 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. . "We remain intensely focused on strengthening bonds with our current customers, as well as on continuing share gains in the markets we serve." The company reported first-quarter 2003 revenues of $342.7 million, an increase of 11.9 percent over revenues during the same period last year. On a constant currency basis, revenues rose 3.8 percent year-over-year. "First-quarter results reflect the strength of our business. We have now moved completely beyond the impact of our debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: process," said Reid-Anderson. "We generated net cash flow of $27 million (cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses less capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. ) in the first quarter, and continued to make good progress toward the achievement of all our key five-year financial targets as previously communicated." First-quarter 2003 Bank EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation, amortization and certain non-cash and non-recurring charges, as defined in our credit agreements) was $70.5 million, compared with first-quarter 2002 Bank EBITDA of $60.9 million, a year-over-year increase of 15.8 percent. To allow for accurate year-over-year comparisons and because it is an important financial metric for certain of our investors, Dade Behring will continue to report Bank EBITDA. Operational Highlights Dade Behring reported strong performance across all core product lines in the first quarter of 2003. First quarter 2003 total revenues increased 11.9 percent which was comprised of a 2.8 percent increase 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. and a 22.2 percent increase internationally when compared with revenues in the year earlier period. Dade Behring's worldwide installed instrument base grew to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40,600 in the first quarter of 2003, an increase of 1.3 percent compared to the company's installed instrument base in the fourth quarter of 2002. Research and development spending in the first quarter of 2003 increased $7.0 million or 37.2 percent compared with the same period last year. "This was a particularly noteworthy quarter for us since we began trading on the NASDAQ in late February February: see month. , an important milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. for the company and its stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ," Reid-Anderson added. "We also made excellent progress on all key R&D projects, including our next-generation chemistry 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. , and saw the introduction of products such as the D-Dimer test d-dimer test Lab medicine A test that detects FDPs using latex beads coated with monoclonal antibodies to the d-dimer of fibrinogen. See Deep vein thrombosis, Fibrin split products. for our Stratus stratus: see cloud. (Stratus Technologies, Maynard, MA, www.stratus.com) A manufacturer of fault-tolerant computers founded in 1980. It supports both the VOS and FTX Unix operating systems on its XA/R line of i860-based systems. (R) CS instrument and the Protis software now available in 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). . Equally important has been our
recognition as Supplier of the Year by two major purchasing
organizations in the U.S."With 2002 revenues of nearly $1.3 billion, Dade Behring (NASDAQ: DADE) is the world's largest company dedicated solely to 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 . It offers a wide range of products and systems designed to meet the day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. needs of labs. The company is headquartered in Deerfield, Illinois Deerfield is a village in Lake County, Illinois, United States. A portion of the village is in Cook County, Illinois, United States. The population was 18,420 at the 2000 census. It is one of the predominant suburbs that make up Chicago's North Shore region. , and has operations in 43 countries. Additional company information is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.dadebehring.com. This press release may contain "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. These forward statements include statements regarding the intent, belief or current expectation of the Company and members of its senior management team, including, without limitation, expectations regarding prospective performance and opportunities and the outlook for the Company's businesses. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by the Company.
Dade Behring Holdings, Inc.
Revenue By Product Line
Quarter Ended March 31
-----------------------------------
% Change
-------------------
On a
Constant
(Dollars in millions) Currency(a)
Product Line 2003 2002 Reported Basis
-------------------------------- ------- ------- --------- ---------
Core Chemistry $215.8 $192.8 11.9% 5.1%
Hemostasis 57.3 49.2 16.5% 4.2%
Mircobiology 32.1 28.5 12.6% 7.7%
Infectious Disease 19.1 15.4 24.0% 4.4%
Mature Products 18.4 20.3 -9.4% -15.6%
------- ------- --------- ---------
Total $342.7 $306.2 11.9% 3.8%
-------------------------------- ------- ------- --------- ---------
(a)"Constant currency" is not a U.S. GAAP defined measure. We believe
this measure provides a meaningful analysis of the underlying
activity, since it eliminates the effect of changes in foreign
currency exchange rates. The change in sales on a constant
currency basis has been calculated by comparing reported current
year sales to prior year sales in local currency translated at the
foreign currency exchange rates for the current year. "Constant
currency" as defined or presented by us may not be comparable to
similarly titled measures reported by other companies.
Dade Behring Holdings, Inc.
Consolidated Balance Sheets
March 31, December
31,
(Dollars in millions, except share-related data) 2003 2002
------------------------------------------------ ----------- ---------
(Unaudited)
Assets
------
Current assets:
Cash and cash equivalents $62.6 $35.5
Restricted cash 8.4 7.9
Accounts receivable, net 278.7 289.7
Inventories 175.0 174.3
Prepaid expenses 17.0 18.9
Deferred income taxes 0.9 0.4
------------------------------------------------ ----------- ---------
Total current assets 542.6 526.7
Property, plant and equipment, net 391.7 390.5
Debt issuance costs, net 13.4 14.0
Deferred income taxes 4.0 3.5
Identifiable intangible assets, net 412.0 414.3
Goodwill, net 533.3 543.0
Other assets 29.6 26.8
------------------------------------------------ ----------- ---------
Total assets $1,926.6 $1,918.8
------------------------------------------------ ----------- ---------
Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
Short-term debt $5.2 $6.1
Current portion of long-term debt 10.0 5.0
Accounts payable 73.7 76.8
Accrued liabilities 213.1 228.5
------------------------------------------------ ----------- ---------
Total current liabilities 302.0 316.4
Long-term debt 756.4 760.7
Deferred income taxes 119.1 122.6
Other liabilities 139.7 131.0
------------------------------------------------ ----------- ---------
Total liabilities 1,317.2 1,330.7
Commitments and contingencies:
Common stock: $.01 par value; 50,000,000 shares
authorized; 40,039,067 and 39,929,479 shares
issued and outstanding at March 31, 2003 and
December 31, 2002, respectively 0.4 0.4
Additional paid-in capital 645.3 643.1
Unearned stock-based compensation (0.2) -
Accumulated deficit (37.8) (48.6)
Accumulated other comprehensive income (loss) 1.7 (6.8)
------------------------------------------------ ----------- ---------
Total shareholders' equity 609.4 588.1
------------------------------------------------ ----------- ---------
Total liabilities and shareholders' equity $1,926.6 $1,918.8
------------------------------------------------ ----------- ---------
Dade Behring Holdings, Inc.
Consolidated Statements of Operations
Successor Predecessor
Company Company
Quarter Quarter
ended ended
March 31, March 31,
(Dollars in millions, except per share data) 2003 2002
---------------------------------------------- ----------- -----------
(Unaudited) (Unaudited)
Net sales $342.7 $306.2
Cost of goods sold 163.9 148.2
---------------------------------------------- ----------- -----------
Gross profit 178.8 158.0
Operating costs and expenses:
Marketing and administrative expense 113.6 99.0
Research and development expense 25.8 18.8
Cost reduction programs expense - 1.0
Restructuring expense, net - 1.9
---------------------------------------------- ----------- -----------
Income from operations 39.4 37.3
Other income (expense):
Interest expense (19.9) (30.7)
Interest income 0.9 0.9
Balance sheet restructuring costs - (3.8)
Foreign exchange loss (2.2) (5.4)
Other expense (0.6) (2.0)
---------------------------------------------- ----------- -----------
Income (loss) before income tax 17.6 (3.7)
Income tax expense 6.8 0.7
---------------------------------------------- ----------- -----------
Income (loss) before cumulative effect of
change in accounting principle 10.8 (4.4)
Cumulative effect of change in accounting
principle - 20.0
---------------------------------------------- ----------- -----------
Net income $10.8 $15.6
---------------------------------------------- ----------- -----------
Basic and diluted earnings (loss) per Predecessor Company
Class L and Common shares:
Loss before cumulative effect of change
in accounting principle $(0.10)
Cumulative effect of change in accounting
principle 0.40
-----------
Net earnings per share $0.30
-----------
Basic earnings per Successor Company common
share $0.27
-----------
Diluted earnings per Successor Company common
share $0.26
-----------
Net income to Bank EBITDA reconciliation:
Net income $10.8 $15.6
Depreciation and amortization (including
amortization of deferred financing fees) 32.2 26.9
Cumulative effect of change in accounting
principle - (20.0)
Non-cash charges:
Loss on disposal of fixed assets 0.9 2.1
Stock-based compensation expense 1.4 0.4
Non-cash charge related to loss in
equity investment - 0.1
Other non-cash charges - 0.4
Non-recurring charges:
Non-recurring cost reduction programs,
net of reversals - 2.9
Non-recurring charges related to
balance sheet restructuring - 3.8
Income tax expense 6.8 0.7
Interest expense, net (excluding amortization
of deferred financing fees) 18.4 28.0
---------------------------------------------- ----------- -----------
Bank EBITDA $70.5 $60.9
---------------------------------------------- ----------- -----------
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