SeraCare Life Sciences' Fiscal 2004 EPS Rose 45% to $0.45 Per Diluted Share - SeraCare Reiterates Fiscal 2005 EPS Guidance of $0.65 - $0.70 -.
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SeraCare Life Sciences, Inc. (Nasdaq: SRLS SRLS Stimulated Raman Loss Spectroscopy ), an innovative developer and provider of human and animal based diagnostic, therapeutic and research products for the life science industry, today reported financial results for the fourth quarter and year-ended September September: see month. 30, 2004. SeraCare also reiterated its financial guidance for fiscal 2005, previously initiated on October October: see month. 14, 2004. Fiscal 2004 Highlights: --FY '04 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 rose 23% to $28.4 million --Gross Margin expanded to 38% in FY '04 vs. 31% in FY '03 --FY '04 Net income rose nearly 59% to $4.16 million --Diluted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. rose 45% to $0.45 in FY '04 vs. FY '03 --SeraCare completed two acquisitions at the end of FY '04, expanding its expertise, capabilities, product and service lines, customer base and geographic presence. Fiscal 2004 Q4 Overview: Net sales for Q4 FY '04 increased 117% to $10.6 million, compared to Q4 FY '03 net sales of $4.9 million. The increase in net sales versus the year-ago quarter reflects internal growth, in particular from the GCI GCI Ground Circuit Interrupter GCI Getty Conservation Institute GCI Global Commerce Initiative GCI Green Cross International (non-profit international environmental organization) GCI Growth Competitiveness Index GCI Great Cities Institute Access(R) clinical sample repository (1) A database of information about applications software that includes author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a CASE or application development system in order to identify objects and business rules for reuse. (formerly Biobank) and 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 businesses as well as the initial benefits from SeraCare's active acquisition program, including a full quarter's contribution from BioMedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. Resources which was acquired in July July: see month. 2003. Reflecting the Company's strategy to focus on more value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: , higher-margin products, gross margins expanded significantly to approximately 40% in Q4 FY '04, compared to approximately 35% in Q4 FY '03. Despite a substantially higher tax provision, net income for the fourth quarter rose approximately three-fold to $1.6 million, compared to net income of $0.5 million in Q4 FY '03. 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 rose over 167% to $0.16 in Q4 FY '04, compared to earnings per share of $0.06 in Q4 FY '03. Fiscal 2004 Full-Year Overview: Net sales for FY '04 rose 23% to $28.4 million compared to net sales of $23.2 million in fiscal 2003. Reflecting a higher than expected tax rate in the fourth quarter as well as the expensing of certain costs related to the Company's acquisitions, FY '04 net income rose 59% to $4.2 million, compared to FY '03 net income of $2.6 million. Diluted earnings per share rose approximately 45% to $0.45 in fiscal 2004, compared to $0.31 in fiscal 2003. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. F. Crowley Crowley (krou`lē), city (1990 pop. 13,983), seat of Acadia parish, SW La.; inc. 1888. It is a shipping, milling, and storage center for a large rice-growing area and has a rice experiment station. Oil and natural gas wells are located nearby. , Jr., SeraCare's 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. , said, "Certainly fiscal 2004 was a transforming year for SeraCare as we were able to make substantial progress in expanding our range of products and services, industry expertise, customer base and geographic reach. This progress supports our 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. goal of becoming a more comprehensive provider of higher-margin biological materials, data and services for all segments of the life sciences industry. During the year, we identified and completed two acquisitions while also maintaining focus on operations, achieving significant improvements in both our top- and bottom-line that were consistent with the guidance we first provided in December 2003. "Our plans and forecasts for fiscal 2005 call for substantial increases in both revenue and earnings as we work to leverage our expanded size and capabilities and exploit synergies across new and existing product and service areas. We intend to utilize the next few quarters to fully integrate and exploit the value of our acquisitions before returning to any M&A activity. To that end, we also announced today the appointment of Tom Lawlor to serve as our Global 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. . In addition to continued internal new product development, we will also look to expand our range of strategic relationships, such as our recently announced collaboration Working together on a project. See collaborative software. with Cellular Technology Ltd., an industry leader in instruments and modern protocols for immune reactivity re·ac·tiv·i·ty n. 1. The property of reacting. 2. The process of reacting. reactivity, n the degree to which a being responds to a stimulus. testing. "Having entered fiscal 2005 as a substantially larger company, we are very excited about the long term prospects for SeraCare. We believe our expanded product and service platform, and broad base of established customer relationships, position SeraCare to expand its penetration of the life sciences industry." SeraCare Life Sciences Reiterates Fiscal 2005 Financial Guidance: As announced on October 14, 2004, reflecting a combination of expected internal growth as well as the continued benefit of acquisitions completed during fiscal 2004, SeraCare expects to achieve net sales of $55 to $60 million and diluted earnings per share (EPS) of $0.65 to $0.70 for fiscal 2005. About SeraCare Life Sciences SeraCare Life Sciences, Inc. is a manufacturer and provider of biological products and services for diagnostic, therapeutic, drug discovery, and research organizations worldwide. The Company's offerings include plasma-based therapeutic products, diagnostic products and reagents, cell culture products, specialty plasmas, in vitro in vitro /in vi·tro/ (in ve´tro) [L.] within a glass; observable in a test tube; in an artificial environment. in vi·tro adj. In an artificial environment outside a living organism. stabilizers, and the Global Repository(R), comprised of clinical samples (DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. , RNA RNA: see nucleic acid. RNA in full ribonucleic acid One of the two main types of nucleic acid (the other being DNA), which functions in cellular protein synthesis in all living cells and replaces DNA as the carrier of genetic , tissue, and serum) for the application of human genetics Human genetics A discipline concerned with genetically determined resemblances and differences among human beings. Technological advances in the visualization of human chromosomes have shown that abnormalities of chromosome number or structure are surprisingly to target validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. for drug discovery. SeraCare is headquartered in Oceanside, CA, and maintains facilities in Cambridge and West Bridgewater, MA; Frederick and Gaithersburg, MD; and Hatboro, PA. SeraCare is publicly traded on the NASDAQ national stock market under the symbol SRLS. For more information please visit www.seracare.com or divisional websites at www.bbii.com and www.getdna.com. 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. : Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements include (i) the Company's expectation that it will achieve net sales of $55 - $60 million and 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. EPS of $0.65 to $0.70 for fiscal 2005, and (ii) the Company's expectation with respect to the synergies described in this press release resulting from its acquisitions of substantially all of the assets of the BBI BBI Blockbuster Inc. (stock symbol) BBI Berlin Brandenburg International (Airport) BBI Broadband-Interactive BBI Browser-Based Interface BBI Best Brains Inc. Diagnostics and BBI Biotechnology Research Laboratories divisions of Boston Biomedica, Inc., as well as substantially all of the assets of Genomics Collaborative, Inc.. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements. Such factors include, but are not limited to (i) the Company's ability to integrate the acquired operations into its own, (ii) market demand for plasma and plasma-based products, (iii) the Company's ability to retain its existing customers and attract new ones, and (iv) the Company's access to adequate blood and plasma raw materials on terms consistent with its existing contracts. Information on these and additional factors that could affect the Company and its financial results is included in the Company's report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended September 30, 2004 filed with the Securities and Exchange Commission (SEC) as well as the Company's other periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SeraCare Life Sciences, Inc.
Condensed Unaudited Statements of Income
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
September 30, September 30,
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2004 2003 2004 2003
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Sales $10,638 $4,905 $28,441 $23,203
Cost of sales 6,413 3,175 17,701 16,075
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Gross profit 4,225 1,730 10,740 7,128
Selling general and
administrative expenses 1,520 1,179 5,097 4,233
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Income from operations 2,705 551 5,643 2,895
Other (expense) income (129) (22) (247) 5
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Income before income tax expense 2,576 529 5,396 2,900
Income tax expense 963 53 1,241 284
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Net income $1,613 $476 $4,155 $2,616
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Earnings per common share:
Basic $0.19 $0.06 $0.51 $0.35
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Diluted $0.16 $0.06 $0.45 $0.31
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Weighted average shares:
Basic 9,031 7,680 8,176 7,488
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Diluted 10,252 8,579 9,334 8,321
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SeraCare Life Sciences, Inc.
Condensed Unaudited Balance Sheets
(In thousands, except share amounts)
As of September 30,
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2004 2003
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ASSETS
Current assets:
Cash and cash equivalents $1,476 $2,989
Accounts receivable, net 12,025 5,969
Inventory 26,162 10,553
Prepaid expenses and other current assets 1,269 225
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Total current assets 40,932 19,736
Property and equipment, net 7,423 1,228
Goodwill 33,197 6,775
Other assets 7,576 113
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Total assets $89,128 $27,852
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,180 $1,888
Accounts payable to related parties 1,700 2,415
Accrued expenses 4,321 626
Related-party bridge note -- 2,500
Current portion long term debt 3,808 --
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Total current liabilities 17,009 7,429
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Long-term Debt:
Long-term debt $22,467 --
Long term notes to related parties 3,500 --
Other liabilities 388 ---
Stockholders' equity:
Preferred stock, no par value, 25,000,000 shares
authorized, no shares issued and outstanding -- --
Common stock, no par value, 25,000,000 shares
authorized, 9,762,116 and 7,714,492 issued and
outstanding, respectively 22,936 1,750
Additional paid-in capital 13,519 13,519
Retained earnings 9,309 5,154
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Total stockholders' equity 45,764 20,423
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Total liabilities and stockholders' equity $89,128 $27,852
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