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LIFE TECHNOLOGIES ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 1991

LIFE TECHNOLOGIES ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 1991
 GAITHERSBURG, Md., Feb. 3 /PRNewswire/ -- Life Technologies, Inc. (NASDAQ: LTEK) today reported net sales of $44.8 million for the quarter ended Dec. 31, 1991, an increase of 13 percent over the same period a year earlier. Operating income was $4.0 million in the fourth quarter of 1991 compared with $5.1 million in the prior year's fourth quarter. Operating income in the 1991 period included a $1.2 million charge to earnings for restructuring the company's U.S. operations. Fourth quarter 1991 net income of $2.5 million was 49 percent below net income for the same period in 1990. Fourth quarter 1991 earnings per share of 16 cents declined 54 percent from the fourth quarter of the previous year. The 1991 restructuring charge of $1.2 million, lower investment income in 1991, and an income tax benefit for foreign earnings remitted to the U.S. which reduced the effective tax rate to 22 percent in the fourth quarter of 1990 were the principal reasons for the lower net income and earnings per share in the fourth quarter of 1991 compared with the same period a year earlier.
 Net sales for the fourth quarter of 1991 were $44.8 million, an increase of $5.1 million over the comparable quarter in 1990. Sales of products other than fetal bovine serum (FBS) increased $5.7 million, or 18 percent, in the fourth quarter of 1991, mostly because of higher unit sales. Fourth quarter 1991 FBS sales were $1.8 million higher than in 1990's fourth quarter due primarily to higher unit sales and unit selling prices. FBS sales represented 22 percent of total sales in 1991 and 25 percent of sales in 1990. The effect of changes in currency exchange rates lowered fourth quarter 1991 sales by $1.5 million when compared with the fourth quarter 1990. Sales for the fourth quarter of 1990 included $0.9 million in sales of a divested diagnostics product line.
 Gross margins were 49.3 percent of sales in the fourth quarter of 1991 compared with 52.6 percent in the fourth quarter of 1990. Fourth quarter 1991 FBS gross margins were lower than in the comparable quarter of 1990 because FBS unit costs increased at a greater rate than unit selling prices. Marking and administrative expenses increased 9 percent in the fourth quarter of 1991 compared with the same period in 1990. Research and development expenses were $3 million in the fourth quarter of 1991, an increase of 2 percent over the fourth quarter of the previous year. The fourth quarter of 1990 included $0.3 million of research and development for the disposed diagnostics product line. Research and development expenses for life science research and industrial products, excluding divested diagnostic products, increased 12 percent when comparing the fourth quarter of 1991 with the same quarter of 1990.
 Operating income for the fourth quarter of 1991 was $4 million compared with $5.1 million in the same period of 1990. The decrease in operating income was mainly the result of a $1.2 million charge to earnings for the cost of restructuring the company's U.S. operations. As part of the restructuring, approximately 40 employees left the company. Investment income of $0.3 million in the fourth quarter of 1991 was $1.1 million less than in the previous year's fourth quarter. Investment income was lower in 1991 because the company significantly reduced its investable cash by paying a special dividend of $51.9 million in March 1991.
 The company declared a 5 cents per share dividend in the fourth quarter of 1991. The total dividend of $0.7 million was paid on Jan. 10, 1992. No dividends were declared or paid in the comparable quarter of 1990. The board expects to continue to consider quarterly dividends in the future at its meetings scheduled to be held in February, April, July and October 1992.
 Net income of $2.5 million was $2.4 million, or 49 percent, lower than in the fourth quarter of 1990. The decrease in net income was mostly due to the $1.2 million restructuring charge, lower investment income in 1991, and a lower effective tax rate in the fourth quarter of 1990. The lower income tax rate in the fourth quarter of 1990 was the result of tax credits realized on earnings remitted to the U.S. by the company's non-U.S. subsidiaries.
 Net sales in 1991 were $170.9 million, an increase of $19.6 million, or 13 percent, over 1990. Sales of products other than FBS increased $20.3 million, or 17 percent, over 1990 sales levels. FBS sales were $3.7 million higher in 1991 when compared with 1990 mostly because of higher unit selling prices. FBS sales represented 20 percent of the company's total sales in 1991 and 1990. Currency exchange rate changes lowered 1991 sales by $0.8 million when compared with 1990. Sales in 1990 included $3.6 million in sales of a divested product line. Royalty income was $0.4 million in 1991 compared with $0.3 million in 1990.
 Gross margins for 1991 were 51.9 percent of sales compared with 54.6 percent of sales in 1990. FBS gross margins were lower in 1991 as unit costs increased at a rate greater than unit selling prices. The company increased the LIFO reserve by $1.5 million in 1991 and $0.4 million in 1990 principally due to rising FBS costs. Marking and administrative expenses increased 9 percent in 1991 over 1990. Research ad development expenses in 1991 were $13.0 million, a 4 percent increase over 1990. In 1990, research and development expenses included $2.4 million for the divested diagnostic product line. Research and development expenses for life science research and industrial products, excluding divested diagnostic products, increased 28 percent in 1991 over 1990.
 Operating income for 1991 was $18.9 million, a decrease of $0.2 million, or one percent, compared with 1990. The decrease in operating income is principally attributable to the $1.2 million restructuring charge taken in the fourth quarter of 1991. Operating income in 1990 was reduced $0.2 million for the cost of downsizing the company's diagnostic product line prior to its disposition. Investment income in 1991 was $1.6 million, a decrease of 67 percent, or $3.3 million, from 1990. Lower cash balances in 1991, due to the $51.9 million special dividend paid in March 1991, was the main reason for the decrease in investment income. Interest expense in 1991 was $0.3 million, or 46 percent, less than the previous year principally as a result of conversion of long-term debt in the first quarter of 1991. Income taxes were 37 percent of pretax income in 1991 compared with 33 percent in 1990. The effective tax rate in 1990 was lower than the 1991 rate because the company realized tax credits on earnings remitted by the company's non-U.S. subsidiaries in the fourth quarter of 1990.
 Primary earnings per share of $0.82 for 1991 were 26 percent lower than the $1.11 per share reported in the prior year. The decrease in earnings per share is mostly the result of the 1991 restructuring charge, lower investment income in 1991, and the benefit of tax credits on earnings remitted to the U.S. in 1990. The weighted average number of shares increased 1.1 million in 1991 compared with 1990 as a result of debenture conversions and stock options exercised in 1991. The company declared dividends of $54.1 million in 1991. No dividends were declared in 1990.
 Life Technologies, Inc.'s president and chief executive officer, Dr. J. Stark Thompson stated, "We are pleased that our overall sales growth has remained strong throughout 1991. In the fourth quarter of 1991 we restructured our U.S. operations to better align our expense structure with our expected sales levels. As a result, we believe we are well positioned to meet the challenges and opportunities of the coming year. We are also pleased to report that we are proceeding with our modernization program for our manufacturing facilities in the U.S., U.K., and New Zealand as planned. We believe these efforts will be a major step in improving our competitive position."
 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)
 Periods ended Three Months Year
 Dec. 31; 1991 1990 Change 1991 1990 Change
 Revenues:
 Net sales $44,821 $39,694 + 13 $170,939 $151,303 + 13
 Royalties -- -- -- 400 333 + 20
 Total 44,821 39,694 + 13 171,339 151,636 + 13
 Operating Expenses:
 Cost of sales 22,734 18,819 + 21 82,240 68,697 + 20
 Marketing & admin. 13,958 12,861 + 9 56,070 51,243 + 9
 Research & develop. 2,975 2,931 + 2 12,974 12,514 + 4
 Restructuring 1,200 -- -- 1,200 156 --
 Total 40,867 34,611 + 18 152,484 132,610 + 15
 Operating income 3,954 5,083 - 22 18,855 19,026 - 1
 Other Income (Expense):
 Investment income 278 1,380 - 80 1,621 4,922 - 67
 Interest expense (84) (149) - 44 (349) (652) - 46
 Other, net (252) (89) +183 (882) (368) +140
 Total (58) 1,142 -- 390 3,902 - 90
 Income before
 income taxes 3,896 6,225 - 37 19,245 22,928 - 16
 Income taxes 1,441 1,382 + 4 7,120 7,566 - 6
 Net income 2,455 4,843 - 49 12,125 15,362 - 21
 Average shares
 outstanding 14,947 13,987 + 7 14,838 13,787 + 8
 Primary net income
 per share .16 .35 - 54 .82 1.11 - 26
 Fully diluted net
 income per share .16 .33 - 52 .81 1.07 - 24
 Dividends declared
 per share .05 -- -- 3.65 -- --
 NOTE: Quarterly amounts are unaudited.
 LIFE TECHNOLOGIES, INC.
 Condensed Consolidated Balance Sheet
 (Amounts in thousands)
 Dec. 31; 1991 1990
 Assets
 Current Assets:
 Cash & short-term investments $5,748 $56,068
 Accounts receivable, net 28,555 24,580
 Inventories:
 Materials & supplies 12,789 9,146
 In process & finished 31,760 26,749
 LIFO reserve (4,640) (3,114)
 Total 39,909 32,781
 Prepaid expenses 2,130 2,007
 Total current assets 76,342 115,436
 Property, plant & equipment 48,136 39,689
 Less accumulated depreciation (18,504) (15,425)
 Total 29,632 24,264
 Investments & other assets 4,637 5,988
 Excess of cost over assets
 of businesses acquired, net 5,770 6,012
 Total assets 116,381 151,700
 Liabilities & Stockholders' Equity:
 Current Liabilities:
 Accounts payable 11,441 9,970
 Dividends payable 742 --
 Income taxes 1,887 3,778
 Accrued liabilities & expenses 8,576 7,503
 Total current liabilities 22,646 21,251
 Convertible subordinated debentures -- 4,095
 Deferred income taxes & tax credits 2,183 2,140
 Other 1,143 1,046
 Stockholders' Equity:
 Common stock 148 137
 Additional paid-in capital 40,791 30,833
 Retained earnings 47,894 89,908
 Currency exchange effects 1,576 2,290
 Total stockholders' equity 90,409 123,168
 Total liabilities &
 stockholders' equity 116,381 151,700
 -0- 2/3/92
 /CONTACT: Joseph C. Stokes, Jr., or C. Eric Winzer of Life Technologies, 301-840-8000, or Kevin Costello of Cameron Associates, 212-644-9560, for Life Technologies/
 (LTEK) CO: Life Technologies, Inc. ST: Maryland IN: MTC SU: ERN


SM-TJ -- NY050 -- 6201 02/03/92 12:37 EST
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