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LIFE TECHNOLOGIES, INC., ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 1992; NET SALES AND NET INCOME WERE RECORDS IN 1992

 GAITHERSBURG, Md., Feb. 2 /PRNewswire/ -- Life Technologies, Inc. (NASDAQ-NMS: LTEK) reported net sales of $49.7 million for the quarter ended Dec. 31, 1992, an increase of 11 percent over the same period a year earlier. Operating income was $6.2 million in the fourth quarter of 1992 compared with $4.0 million in the prior year's fourth quarter. Operating income in the 1991 period was reduced by a $1.2 million charge to earnings, about 5 cents per share, for restructuring the company's U.S. operations to more properly align the company's expense structure with its expected revenue growth. Fourth quarter 1992 net income of $4.0 million was 63 percent greater than in the comparable period of 1991. Fourth quarter 1992 earnings per share of 27 cents were 69 percent more than per share earnings in the fourth quarter of the previous year. Excluding the effect of the 1991 restructuring charge, earnings per share in the fourth quarter of 1992 increased 29 percent compared with the fourth quarter of 1991.
 In 1992, net sales, operating income and net income reached record levels. Net sales of $197.5 million represented a 16 percent increase over 1991. Operating income was $24.5 million, an increase of 30 percent over the prior year. Net income for 1992 was $15.5 million, an increase of 28 percent over the prior year's net income of $12.1 million. Earnings per share were $1.03 for 1992, up 26 percent, compared with earnings per share of 82 cents for 1991.
 In the fourth quarter of 1992, sales of products other than fetal bovine serum (FBS) increased $4.3 million, or 12 percent, compared with the fourth quarter of 1991. Fourth quarter 1992 FBS sales were $0.9 million higher than in the fourth quarter of 1991. Higher unit sales of FBS increased fourth quarter 1992 net sales by $1.5 million while lower unit selling prices reduced net sales $0.6 million when compared with the fourth quarter of 1991. FBS sales represented 21 percent of net sales in 1992 and 22 percent of net sales in 1991. The effect of changes in currency exchange rates lowered fourth quarter 1992 sales by $0.4 million when compared with the fourth quarter of 1991.
 Gross margins were 50.1 percent of net sales in the fourth quarter of 1992 compared with 49.3 percent in the fourth quarter of 1991. The improvement in gross margins was largely the result of higher gross margins on sales of products other than FBS. Fourth quarter 1992 FBS gross margins were lower than in the fourth quarter of 1991, mostly due to lower unit selling prices in the 1992 period. Marketing and administrative expenses were 30.8 percent of net sales in the fourth quarter of 1992 compared with 31.1 percent of net sales in the fourth quarter a year earlier. Research and development expenses were $3.4 million, an increase of 15 percent over the fourth quarter of the previous year.
 Operating income for the fourth quarter of 1992 was $6.2 million, an increase of 56 percent, compared with the $4.0 million reported in the same period of 1991. Fourth quarter 1991 operating income was reduced by a $1.2 million restructuring charge. Net investment income of $0.2 million in the fourth quarter of 1992 was unchanged from the comparable quarter of 1991. The effect on earnings of other non-operating items in the fourth quarter of 1992 compared favorably to the fourth quarter of 1991, principally due to improved profitability at the company's joint venture in Japan. The effective tax rate was 36 percent in the fourth quarter of 1992 compared with 37 percent in last year's fourth quarter.
 Net sales for 1992 were $197.5 million, an increase of $26.6 million, or 16 percent, over 1991. Sales of products other than FBS increased $18.8 million, or 14 percent, over 1991 sales levels. FBS sales were $6.5 million higher in 1992 when compared with 1991. Higher unit sales of FBS increased 1992 net sales by $7.9 million, while lower unit selling prices reduced sales $1.4 million when compared with 1991. FBS sales represented 20 percent of the company's net sales in 1992 and 1991. Currency exchange rate changes increased 1992 sales by $1.3 million when compared with 1991. Royalty income was $0.1 million in 1992 compared with $0.4 million in 1991.
 Gross margins for 1992 were 50.3 percent of net sales compared with 51.9 percent of net sales in 1991. FBS gross margins were lower in 1992 as unit costs increased and unit selling prices decreased. Marketing and administrative expenses were 30.9 percent of net sales in 1992 compared with 32.8 percent of net sales in 1991. Research and development expenses in 1992 were $13.9 million, a 7 percent increase over 1991.
 Operating income for 1992 was $24.5 million, an increase of $5.7 million, or 30 percent, compared with 1991. Operating income in 1991 was reduced $1.2 million for a restructuring charge. Net investment income was $0.8 million less in 1992 than in 1991, mostly as a result of the special dividend paid in March 1991, which distributed $51.9 million of investable cash to stockholders. Other non-operating items in 1992 compared favorably with 1991 largely due to improved profitability at the company's joint venture in Japan. Income taxes were 36.5 percent of pretax income in 1992 compared with 37 percent in 1991.
 The company declared dividends of 20 cents per share in 1992, which consisted of four quarterly dividends of 5 cents per share. Dividends declared in 1991 were $3.65 per share and included the $3.50 per share special dividend paid in March of 1991.
 Life Technologies, Inc.'s president and chief executive officer, Dr. J. Stark Thompson, stated: "We are very pleased with our financial performance in 1992 as evidenced by the fact that earnings per share increased 26 percent on a 16 percent sales growth in 1992. Our sales and net income reached record levels in a difficult economic climate. Our accomplishments in 1992, both financial and non-financial, strongly reflect our commitment to excellence in satisfying our customers needs. We continue to be committed to working closely with our customers to provide high value products and services."
 Life Technologies, Inc., develops, manufactures and supplies more than 2,000 products used principally in life science research and commercial manufacture of genetically engineered products. The company is a leading supplier of sera and other cell growth media, as well as enzymes and other biological products necessary for recombinant DNA procedures.
 LIFE TECHNOLOGIES, INC.
 Consolidated Statement of Income
 (amounts in thousands, except per share data)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1992 1991 Change 1992 1991 Change
 (percent) (percent)
 Revenues:
 Net sales $49,671 $44,821 +11 $197,538 $170,939 +16
 Royalties 0 0 -- 102 400 -75
 Total 49,671 44,821 +11 197,640 171,339 +15
 Operating expenses:
 Cost of sales 24,795 22,734 +9 98,253 82,240 +19
 Marketing & admin. 15,302 13,958 +10 60,955 56,070 +9
 Research &
 development 3,410 2,975 +15 13,892 12,974 +7
 Restructuring 0 1,200 -- 0 1,200 --
 Total 43,507 40,867 +6 173,100 152,484 +14
 Operating income 6,164 3,954 +56 24,540 18,855 +30
 Other income (expense):
 Investment income 219 278 -21 556 1,621 -66
 Interest expense (12) (84) -86 (64) (349) -82
 Other, net (105) (252) -58 (642) (882) -27
 Total 102 (58) -- (150) 390 --
 Income before
 income taxes 6,266 3,896 +61 24,390 19,245 +27
 Income taxes 2,256 1,441 +57 8,903 7,120 +25
 Net income $4,010 $2,455 +63 $15,487 $12,125 +28
 Average shares
 outstanding 15,100 14,947 +1 15,079 14,838 +2
 Primary net income
 per share $0.27 $0.16 +69 $1.03 $0.82 +26
 Dividends per share $0.05 $0.05 -- $0.20 $3.65 --
 Quarterly amounts are unaudited.
 LIFE TECHNOLOGIES, INC.
 Condensed Consolidated Balance Sheet
 (amounts in thousands)
 Dec. 31, 1992 1991
 ASSETS
 Current assets:
 Cash and short-term investments $7,652 $5,748
 Accounts receivable, net 30,301 28,555
 Inventories:
 Materials and supplies 8,769 12,607
 In process and finished 36,908 31,942
 LIFO reserve (5,115) (4,640)
 Total 40,562 39,909
 Prepaid expenses 1,952 2,130
 Total current assets 80,467 76,342
 Property, plant and equipment 59,658 48,136
 Less accumulated depreciation (20,453) (18,504)
 Total 39,205 29,632
 Investments and other assets 4,836 4,637
 Excess of cost over net assets of
 businesses acquired, net 5,541 5,770
 Total assets $130,049 $116,381
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $14,177 $11,441
 Dividends payable 746 742
 Income taxes 4,125 1,887
 Accrued liabilities and expenses 10,891 8,576
 Total current liabilities 29,939 22,646
 Deferred items 3,430 3,326
 Stockholders' equity:
 Common stock 149 149
 Additional paid-in capital 41,777 40,790
 Retained earnings 60,400 47,894
 Currency exchange effects (5,646) 1,576
 Total stockholders' equity 96,680 90,409
 Total liabilities and
 stockholders' equity $130,049 $116,381
 -0- 2/2/93
 /CONTACT: Joseph C. Stokes Jr. or C. Eric Winzer of Life Technologies, 301-840-8000/
 (LTEK)


CO: Life Technologies, Inc. ST: Maryland IN: MTC SU: ERN

TW -- DC010 -- 1901 02/02/93 12:54 EST
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Date:Feb 2, 1993
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