Meridian Bioscience Reports Third Quarter Record Sales, Higher Per Share Earnings, Declares Regular Cash Dividend, and Reaffirms Fiscal 2003 Guidance.Business Editors/Health/Medical Writers BIOWIRE2K CINCINNATI--(BUSINESS WIRE)--July 24, 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. ) Meridian Bioscience, Inc., (Nasdaq:VIVO) today: -- reported record third quarter sales of $15,693,000, a 5% increase over the same period of the prior fiscal year; -- reported 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 $0.12, a 9% increase over the same period of the prior fiscal year; -- reported third quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $3,068,000, second highest third quarter earnings in the Company's history; -- declared a regular cash dividend of $0.09 per share, 29% higher than the regular quarterly rate of fiscal 2002; and -- reaffirmed its earlier guidance of sales between $64 million and $67 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 $0.42 and $0.47 for the fiscal year ending September 30, 2003.
FINANCIAL HIGHLIGHTS
In Thousands, Except per Share Data
Three Months Ended June 30
2003 2002 % Change
------- ------- --------
Net Sales $15,693 $14,898 5%
Operating Income 3,068 2,941 4%
Net Earnings 1,822 1,556 17%
Earnings per Share (diluted) $0.12 $0.11 9%
Cash $2,924 $4,609
Working Capital 17,715 16,923
Total Assets 65,073 65,366
Shareholders' Equity 26,618 24,439
THIRD QUARTER RESULTS 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 third fiscal quarter ended June 30, 2003, were $15,693,000 as compared to $14,898,000 for the same period of the prior fiscal year, an increase of 5%. Net earnings for the second quarter of fiscal 2003 were $1,822,000 or $0.12 per diluted share, up 17% and 9%, respectively, over the third quarter of fiscal 2002. Diluted common shares outstanding for the second quarter of fiscal 2002 and 2003 were 14,818,000 and 15,012,000, respectively. YEAR-TO-DATE RESULTS Net sales for the nine months ended June 30, 2003, were $48,709,000 as compared to $43,545,000 for the same period of the prior fiscal year, an increase of 12%. Net earnings for the nine months ended June 30, 2003, were $5,169,000 or $0.35 per diluted share, up 25% over the same period of fiscal year 2002. Diluted common shares outstanding for the nine months of fiscal 2002 and 2003 were 14,764,000 and 14,882,000, respectively. CASH DIVIDEND MATTERS The Board of Directors declared a regular quarterly dividend of $0.09 per share for the third quarter ended June 30, 2003. The dividend is of record August 1, 2003 and payable August 8, 2003. The annual cash dividend rate for fiscal 2003 is $0.36 per share, an increase of 29% over the $0.28 per share rate for fiscal 2002. Meridian Bioscience has increased its regular dividend rate ten times since establishing a regular dividend policy twelve years ago. During November 2002, the Board of Directors adopted a new 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 most recent increase in the regular cash dividend is in recognition of, among other things, management's confidence in higher operating results for fiscal 2003 and strong cash flow. FISCAL 2003 GUIDANCE REAFFIRMED Based on the Company's ongoing business planning and budgeting activities, as well as results to date for fiscal 2003, management expects net sales to be in the range of $64 to $67 million and per share diluted earnings to be between $0.42 and $0.47 for the fiscal year ending September 30, 2003. As compared to fiscal 2002, the increase in per share earnings is expected to be between 24% and 38%. FINANCIAL CONDITION The Company's financial condition is sound. At June 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 $31,809,000 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 $14,094,000 thereby producing working capital of $17,715,000 and a current ratio of 2.3. Cash on hand was $2,924,000 and the Company had a borrowing capacity of $19,829,000 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 $22,436,000 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 $26,618,000. Subordinated convertible debt of $20 million due 2006 represented 89% of the total long-term debt obligations outstanding.
Summary Financial Data (unaudited)
(in thousands, except per share data)
Three Months Nine Months
Ended June 30, Ended June 30,
2003 2002 2003 2002
--------------------------------
Net sales $15,693 $14,898 $48,709 $43,545
Cost of goods sold 6,563 6,326 20,356 18,303
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Gross profit 9,130 8,572 28,353 25,242
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Operating expenses
Research and development 985 653 2,960 2,147
Sales and marketing 2,654 2,477 8,110 7,227
General and administrative 2,423 2,501 7,669 7,787
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Total operating expenses 6,062 5,631 18,739 17,161
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Operating income 3,068 2,941 9,614 8,081
Other income (expense), net (219) (460) (1,121) (1,323)
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Income before income taxes 2,849 2,481 8,493 6,758
Income tax provision 1,027 925 3,324 2,590
--------------------------------
Net earnings $1,822 $1,556 $5,169 $4,168
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Net earnings per basic common share $0.12 $0.11 $0.35 $0.29
Basic common shares outstanding 14,664 14,631 14,650 14,615
Net earnings per diluted common share $0.12 $0.11 $0.35 $0.28
Diluted common shares outstanding 15,012 14,818 14,882 14,764
COMPANY COMMENTS William J. Motto, Chairman and Chief Executive Officer, said, "With three strong quarters already achieved, we expect to meet our sales and profit projections for fiscal 2003. Our growth in revenues and earnings, along with our long-standing cash dividend history, has resulted in significant appreciation in shareholder value. We are encouraged by the financial community's recognition of the Company. The recent addition of the Company to the Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. further enhances our visibility. We are completing our business planning for fiscal 2004 and expect to publish fiscal 2004 guidance shortly." 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. , commented, "Our business planning and execution continues to evidence itself through strong sales and earnings growth. The fourth quarter will be focused on a strong finish to fiscal 2003 and further execution of our Meridian Life Science initiatives. During the third quarter, we announced the launch of Meridian Life Science, a strategic unit that will combine the Company's technological capabilities to better enable the research, development and manufacture of biopharmaceuticals and clinical diagnostics." 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 and 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. 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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