Meridian Bioscience Reports Third Quarter and Nine Months Operating Results, Declares Regular Cash D

Meridian Bioscience Reports Third Quarter and Nine Months Operating Results, Declares Regular Cash Dividend, and Reaffirms Fiscal 2013 Guidance

CINCINNATI--(BUSINESS WIRE)-- Meridian Bioscience, Inc. (NAS: VIVO) :

GENERAL HIGHLIGHTS


Meridian Bioscience, Inc., Cincinnati, Ohio (NAS: VIVO) today:

  • reported fiscal 2013 third quarter and nine months net sales of $47.1 million and $139.7 million, respectively, increases of 12% and 8%, respectively, from the same periods of the prior fiscal year;

  • reported third quarter operating income of $15.7 million, an increase of 24% over the same period of the prior fiscal year;

  • reported nine months operating income of $44.0 million, an increase of 18% over the same period of the prior fiscal year;

  • reported third quarter net earnings of $10.2 million, or $0.24 per diluted share, increases of 18% and 14%, respectively, compared to the fiscal 2012 third quarter. When compared to the fiscal 2012 third quarter net earnings on a non-GAAP basis, the fiscal 2013 third quarter net earnings and net earnings per diluted share increased 15% and 14%, respectively. This non-GAAP financial measure excludes the effect of fiscal 2012 third quarter costs associated with the consolidation of its Saco, Maine operations into its Tennessee facility (see non-GAAP financial measure reconciliations);

  • reported first nine months net earnings of $28.9 million, or $0.69 per diluted share, increases of 16% and 15%, respectively, compared to the same period of fiscal 2012. When compared to the first nine months of fiscal 2012 net earnings on a non-GAAP basis, the year-to-date fiscal 2013 net earnings and net earnings per diluted share each increased 13%. This non-GAAP financial measure excludes the effect of fiscal 2012 first nine months costs associated with the consolidation of its Saco, Maine operations into its Tennessee facility (see non-GAAP financial measure reconciliations);

  • declared the regular quarterly cash dividend of $0.19 per share for the third quarter of fiscal 2013, (indicated annual rate of $0.76 per share), the same as the regular quarterly rate of fiscal 2012; and

  • reaffirmed its fiscal 2013 guidance of per share diluted earnings between $0.86 and $0.91 on net sales of $190 million to $195 million.

FINANCIAL HIGHLIGHTS (UNAUDITED)

In Thousands, Except per Share Data

Three Months Ended June 30,

Nine Months Ended June 30,

2013

2012

% Change

2013

2012

% Change

Net Sales

$

47,108

$

41,915

12

%

$

139,724

$

129,229

8

%

Operating Income

15,699

12,612

24

%

44,043

37,244

18

%

Net Earnings

10,159

8,594

18

%

28,882

24,798

16

%

Diluted Earnings per Share

$

0.24

$

0.21

14

%

$

0.69

$

0.60

15

%

Diluted Earnings per Share

excluding effect of plant

consolidation costs (2012)

(see non-GAAP financial measure

reconciliations)

$

0.24

$

0.21

14

%

$

0.69

$

0.61

13

%

June 30,

2013

2012

Cash and Equivalents

$

40,363

$

27,938

Working Capital

88,875

76,298

Shareholders' Equity

151,266

141,005

Total Assets

170,991

158,814

COMPANY COMMENTS

John A. Kraeutler, Chief Executive Officer, said, "Double-digit organic revenue growth and strong operating metrics combined to produce earnings per share above expectations. Overall revenues increased by 12% to $47.1 million with our Life Science unit demonstrating an 18% increase; the US Diagnostics business growing 14%; and, the European Diagnostics operation showing a 2% decline due to continuing macroeconomic challenges. In the Life Science unit, growth continued to be driven by the MyTaq™ and SensiFAST™ new product lines and robust industrial orders for the core antigen and antibody products. Increases in diagnostics revenues were led by foodborne tests, +21%, H. pylori tests, +15% and C. difficile assays, +5%. Sales of illumigene® products were up 36% versus the prior year period.

illumigene performed well once again in the quarter. For the current reporting period, 76 new customers were added globally for a total customer base of 1,102 labs. In June, we announced that our fourth illumigene test, illumigeneMycoplasma pneumonia, had been cleared for marketing by the FDA.

During the third fiscal quarter our operating teams continued to deliver strong efficiency, achieving 65% gross profit margins, despite the headwinds of the 2.3% Medical Device Tax. Careful expense control, even as we begin to ramp up our R&D clinical trial investments, drove operating margins of 33%. As this fiscal year comes to a finish, we believe that we are on course to achieve our guidance expectations, despite continuing weakness in the European markets. Our global team continues to strengthen and our new product pipelines are robust, thus setting the foundation for a strong finish to fiscal 2013 and an even better fiscal 2014."

William J. Motto, Executive Chairman of the Board, said, "Our third quarter results were in line with plan and we look forward to reporting fiscal year 2013 operating results consistent with our previously issued guidance. As we look forward, fiscal 2014 promises to be another year of sales and earnings growth driven by further expansion and utilization of our illumigene platform, as well as new products and attention to operating efficiencies. We continue to look for acquisitions that could add to our business and are accretive to earnings. Our balance sheet and cash flow are strong and continue to comfortably fund our working capital, capital expenditures, and cash dividend requirements. Following our review of the fiscal 2014 operating plan with the Board of Directors later in the year, management will give consideration to recommending an increase in the indicated annual cash dividend rate consistent with our long-standing policy."

CASH DIVIDEND MATTERS

The Board of Directors declared the regular quarterly cash dividend of $0.19 per share for the third quarter ended June 30, 2013. The dividend is of record August 5, 2013 and payable August 15, 2013. This annual indicated dividend rate of $0.76 per share remains the same as the rate in fiscal 2012. Guided by the Company's policy of setting a payout ratio of between 75% and 85% of each fiscal year's expected net earnings, the actual 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 2013 GUIDANCE REAFFIRMED

For the fiscal year ending September 30, 2013, management expects net sales to be in the range of $190 million to $195 million and per share diluted earnings to be between $0.86 and $0.91. The per share estimates assume an increase in average diluted shares outstanding from approximately 41.6 million at fiscal 2012 year-end to approximately 42 million at fiscal 2013 year-end. The sales and earnings guidance provided in this press release is from expected internal growth and does not include the impact of any additional acquisitions the Company might complete during fiscal 2013.

FINANCIAL CONDITION

The Company's financial condition is sound. At June 30, 2013, current assets were $108.6 million compared to current liabilities of $19.7 million, resulting in working capital of $88.9 million and a current ratio of 5.5. Cash and equivalents were $40.4 million and the Company had 100% borrowing capacity under its $30.0 million commercial bank credit facility. The Company has no bank-debt obligations outstanding.

INTERIM UNAUDITED OPERATING RESULTS
(In Thousands, Except per Share Data)

The following table sets forth the unaudited comparative results of Meridian on a U.S. GAAP basis for the interim periods of fiscal 2013 and fiscal 2012.

Three Months Ended June 30,

Nine Months Ended June 30,

2013

2012

2013

2012

Net sales

$

47,108

$

41,915

$

139,724

$

129,229

Cost of goods sold

16,477

14,498

49,554

47,722

Gross profit

30,631

27,417

90,170

81,507

Operating expenses

Research and development

2,711

2,660

8,039

7,441

Selling and marketing

5,440

5,617

16,604

16,573

General and administrative

6,781

6,162

21,484

19,236

Plant consolidation costs

-

366

-

1,013

Total operating expenses

14,932

14,805

46,127

44,263

Operating income

15,699

12,612

44,043

37,244

Other income (expense), net

(148

)

45

263

331

Income before income taxes

15,551

12,657

44,306

37,575

Income tax provision

5,392

4,063

15,424

12,777

Net earnings

$

10,159

$

8,594

$

28,882

$

24,798

Net earnings per basic common share

$

0.25

$

0.21

$

0.70

$

0.60

Basic common shares outstanding

41,304

41,091

41,209

41,075

Net earnings per diluted common share

$

0.24

$

0.21

$

0.69

$

0.60

Diluted common shares outstanding

41,983

41,684

41,863

41,605

The following table sets forth the unaudited segment data for the interim periods of fiscal 2013 and fiscal 2012 (in thousands).

Three Months Ended June 30,

Nine Months Ended June 30,

2013

2012

2013

2012

Net sales

U.S. Diagnostics

$

29,535

$

26,008

$

90,211

$

79,472

European Diagnostics

5,770

5,897

17,166

18,326

Life Science

11,803

10,010

32,347

31,431

$

47,108

$

41,915

$

139,724

$

129,229

Operating Income

U.S. Diagnostics

$

11,876

$

9,442

$

34,731

$

29,377

European Diagnostics

439

998

1,169

2,398

Life Science

3,543

2,118

8,223

5,526

Eliminations

(159

)

54

(80

)

(57