Meridian Bioscience Reports Fiscal 2003 Year End and Fourth Quarter Operating Results, Declares Regular Quarterly Cash Dividend, Discusses Fiscal 2004 Dividends and Guidance.Business Editors/Health/Medical Writers BIOWIRE2K CINCINNATI--(BUSINESS WIRE)--Nov. 18, 2003 Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. Bioscience, Inc. (Nasdaq:VIVO (Video In Video Out) Refers to a display adapter with analog video capture and analog video out (NTSC out) capabilities. See display adapter. ) HIGHLIGHTS Meridian Bioscience, Inc., Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. (Nasdaq:VIVO) today: -- reported record fiscal 2003 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 of $65.9 million (up 11% over fiscal 2002) and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.47 (up 38% over fiscal 2002) and at the upper range of management's guidance; -- reported record fourth quarter fiscal 2003 net sales of $17.2 million (up 10% over the fourth quarter of fiscal 2002) and diluted earnings per share of $0.12 (up 100% over the same period of the prior fiscal year; -- declared the regular quarterly cash dividend of $0.09 per share, 29% higher than the regular quarterly rate of fiscal 2002; and -- announced an 11% increase in the annual indicated cash dividend for fiscal 2004 from $0.36 to $0.40 per share; and -- reaffirmed its earlier fiscal 2004 guidance of net sales between $71 million and $75 million and per share 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. earnings between $0.47 and $0.53 for the fiscal year ending September 30, 2004, based on average shares outstanding of 15.3 million.
FINANCIAL HIGHLIGHTS
In Thousands, Except per Share Data
Three Months Ended Fiscal Year Ended
September 30 September 30
2003 2002 % Change 2003 2002 % Change
------- ------- -------- ------- ------- --------
Net Sales $17,155 $15,559 10% $65,864 $59,104 11%
Operating Income 3,175 1,913 66% 12,789 9,994 28%
Net Earnings 1,849 863 114% 7,018 5,031 39%
Earnings per Share
(diluted) $0.12 $0.06 100% $0.47 $0.34 38%
Cash $2,683 $3,060
Working Capital 17,831 15,126
Long-term Obligations 21,505 23,626
Shareholders' Equity 27,484 24,381
Total Assets $66,420 $65,095
FOURTH QUARTER OPERATING RESULTS Net sales for the fourth quarter of fiscal 2003 were $17,155,000 as compared to $15,559,000 for the same period of the prior fiscal year, an increase of $1,596,000 or 10%. Net earnings for the fourth quarter ended September 30, 2003, were $1,849,000 or $0.12 per diluted share, up 114% and 100% respectively over the fourth quarter of fiscal 2002. Diluted common shares outstanding for the fourth quarter of fiscal 2003 and 2002 were 15,132,000 and 14,749,000, respectively. FISCAL YEAR 2003 OPERATING RESULTS Net sales for fiscal 2003 were $65,864,000 as compared to $59,104,000 for fiscal 2002, an increase of $6,760,000 or 11%. Net earnings for fiscal 2003 were $7,018,000 or $0.47 per diluted share, compared to $5,031,000 or $0.34 per diluted share, up 39% and 38%, respectively over the prior fiscal year. Diluted common shares outstanding for fiscal 2003 and 2002 were 14,950,000 and 14,760,000, respectively. CASH DIVIDEND MATTERS The Board of Directors declared the regular quarterly cash dividend of $0.09 per share for the fourth quarter ended September 30, 2003. The dividend is of record November 28, 2003 and payable December 5, 2003. The annual cash dividend rate for fiscal 2003 was $0.36 per share, an increase of 29% over the $0.28 per share rate for fiscal 2002. No special or extra dividends were declared in connection with fiscal 2003. The Board of Directors voted to increase the regular quarterly cash dividend rate to $0.10 per share for fiscal 2004. This annual indicated dividend Indicated Dividend The total dividends that would be paid on a share of stock throughout the next year if each dividend is the same amount as the previous payment. Notes: For example, if General Motors paid a dividend of $0. rate of $0.40 per share represents an 11% increase over the fiscal 2003 rate of $0.36 per share. Meridian has increased its regular cash dividend rate eleven times since it established a regular dividend thirteen years ago. During November 2002, the Board of Directors adopted a new cash dividend policy calling for an increased payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. of net earnings. The fiscal 2003 and 2004 indicated dividend payout ratios reflect the Company's policy of paying out between 75% and 85% of each fiscal year's expected net earnings. Consideration will also be given by the Board to special year-end cash or stock dividends. The declaration and amount of dividends will be determined by the Board of Directors in its discretion based upon its evaluation of earnings, cash flow requirements and future business developments, including acquisitions. FISCAL 2004 GUIDANCE REAFFIRMED For the fiscal year ending September 30, 2004, management expects net sales to be in the range of $71 to $75 million and per share diluted earnings to be between $0.47 and $0.53. The per share estimates assume an increase in average shares outstanding from approximately 15.0 million at fiscal 2003 year end to 15.3 million at fiscal 2004 year end. The sales and earnings guidance provided in this press release does not include the impact of any acquisitions the Company might complete during fiscal 2004. FINANCIAL CONDITION The Company's financial condition is sound. At September 30, 2003, current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. were $33,161,000 compared to current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. of $15,330,000, thereby producing working capital of $17,831,000 and a current ratio of 2.16. Cash on hand was $2,683,000 and the Company had borrowing capacity of $19,537,000 under its commercial bank credit facility. Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. obligations were $21,505,000 compared to shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $27,484,000. Subordinated convertible debt of $20 million due 2006 represented 93% of the total long-term debt obligations outstanding. On November 12, 2003, the Company commenced an exchange offer for $16 million of its 7% convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before and announced its plans to redeem the balance of $4 million in debentures at par, assuming the exchange offer is fully subscribed Fully Subscribed A situation in which an underwriting firm has successfully sold to investors all of its available issues of a public offering of securities. When the issue is fully subscribed, the underwriter's risk of being undersubscribed (being unable to sell its allotment of . The effect of this exchange offer, if successful, will be to reduce annual interest expense by about $500,000, reduce potential per share and ownership dilution, increase the likelihood of eventual equity conversion, and extend the maturity date of the indebtedness by seven (7) years.
Fourth Quarter and Fiscal 2003 (Unaudited) Results
Summary Financial Data (unaudited)
(in thousands, except per share data)
Three Months Ended Fiscal Year Ended
September 30, September 30,
2003 2002 2003 2002
-------- -------- -------- --------
Net sales $17,155 $15,559 $65,864 $59,104
Cost of goods sold 7,220 6,203 27,576 24,506
-------- -------- -------- --------
Gross profit 9,935 9,356 38,288 34,598
-------- -------- -------- --------
Operating expenses
Research and development 915 741 3,875 2,888
Sales and marketing 2,491 2,503 10,601 9,730
General and administrative 3,354 2,988 11,023 10,775
Costs of abandoned acquisition - 1,211 - 1,211
-------- -------- -------- --------
Total operating expenses 6,760 7,443 25,499 24,604
-------- -------- -------- --------
Operating income 3,175 1,913 12,789 9,994
Other income (expense), net (77) (428) (1,198) (1,751)
-------- -------- -------- --------
Income before income taxes 3,098 1,485 11,591 8,243
Income tax provision 1,249 622 4,573 3,212
-------- -------- -------- --------
Net earnings $1,849 $863 $7,018 $5,031
======== ======== ======== ========
Net earnings per basic common
share $0.13 $0.06 $0.48 $0.34
Basic common shares outstanding 14,708 14,633 14,664 14,621
Net earnings per diluted common
share $0.12 $0.06 $0.47 $0.34
Diluted common shares outstanding 15,132 14,749 14,950 14,760
Company Comments John A. Kraeutler, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "Our strong financial performance in fiscal year 2003 is a testament to our strong, global operating team operating team Surgery The participants–surgeons, nurses, etc–in a sterile surgical procedure performed under general–less commonly, local anesthesia and its commitment to the achievement of our growth strategies. During the past year, Meridian Bioscience continued to capture market share in its core business, expanded its product portfolio with new influenza influenza or flu, acute, highly contagious disease caused by a virus; formerly known as the grippe. There are three types of the virus, designated A, B, and C, but only types A and B cause more serious contagious infections. and other respiratory tests, and launched its Life Science business strategy. We are encouraged by the opportunities we have defined for fiscal 2004, and we are eagerly anticipating several pending new product introductions. Our protein production labs are now operating and our focus is on several key clients' requirements including the recently announced National Institutes of Health contract for Parvovirus parvovirus (pär'vōvī`rəs), any of several small DNA viruses that cause several diseases in animals, including humans. In humans, parvoviruses cause fifth disease, or erythema infectiosum, an acute disease usually affecting young vaccine manufacture. In August, we issued our fiscal 2004 guidance range of sales from $71 to $75 million and per share earnings of $0.47 to $0.53. We look forward to reporting our progress towards these goals during the year. " William J. Motto, Chairman and Chief Executive Officer, said, "At this time last year, I stated, 'During fiscal 2003 we will focus on maximizing profits and cash flow and increasing shareholder value through cash dividends and, higher stock prices.' All of these goals were achieved. Additionally, several other notable events occurred, Meridian was named to the Russell 2000(R) Index and named one of Forbes 200 Best Growth Companies. The Company also filed a shelf registration statement to position itself to offer securities should appropriate opportunities arise." FORWARD LOOKING STATEMENTS 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 provides a 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. from civil litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. for forward looking statements accompanied by meaningful cautionary statements. Except for historical information, this report 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. which may be identified by words such as "estimates", "anticipates", "projects", "plans", "expects", "intends", "believes", "should" and similar expressions which also may be identified by their context. Such statements are based upon current expectations of the Company and speak only as of the date made. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ, including, without limitation, the following. Meridian's continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian's competition. While Meridian has introduced a number of internally-developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Costs and difficulties in complying with laws and regulations administered by the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. can result in unanticipated expenses and delays and interruptions to the sale of new and existing products. Changes in the relative strength or weakness of the U.S. dollar can change expected results. One of Meridian's main growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses successfully integrated into Meridian's operations. COMPANY DESCRIPTION Meridian is a fully integrated life science company that manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions See carpal tunnel syndrome, computer vision syndrome, dry eyes and deep vein thrombosis. , such as gastrointestinal, viral, urinary urinary /uri·nary/ (u´ri-nar?e) pertaining to, containing, or secreting urine. u·ri·nar·y adj. 1. Relating to urine and its production, function, or excretion. 2. and respiratory infections Noun 1. respiratory infection - any infection of the respiratory tract respiratory tract infection infection - the pathological state resulting from the invasion of the body by pathogenic microorganisms . All Meridian products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections Noun 1. upper respiratory infection - infection of the upper respiratory tract respiratory infection, respiratory tract infection - any infection of the respiratory tract , serology Serology The division of biological science concerned with antigen-antibody reactions in serum. It properly encompasses any of these reactions, but is often used in a limited sense to denote laboratory diagnostic tests, especially for syphilis. , parasitology Parasitology The scientific study of parasites and of parasitism. Parasitism is a subdivision of symbiosis and is defined as an intimate association between an organism (parasite) and another, larger species of organism (host) upon which the parasite is and fungal fungal /fun·gal/ (fun´g'l) fungous; pertaining to fungi. fun·gal or fun·gous adj. 1. Of, relating to, resembling, or characteristic of a fungus. 2. disease diagnosis. In addition, Meridian is a supplier of rare reagents and specialty biologicals. The Company markets its products to hospitals, reference laboratories, research centers, veterinary testing centers and physician offices in more than 60 countries around the world. The Company's shares are traded through Nasdaq's National Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com. |
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