10 cents in the 4th Qtr.,and a building backlog-Better than I expected. No wonder Mr. Orcutt got the promotion!
New Brunswick Scientific Co., Inc., Reports 2003 Fourth-Quarter and Year-End Financial Results
PR Newswire ~ March 4, 2004 ~ 5:36 pm EST
EDISON, N.J., March 4 /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (Nasdaq: NBSC), today announced financial results for the 2003 fourth quarter and for the full year ended December 31, 2003. The level of sales recorded for the 2003 fourth quarter was the highest in the last six quarters at $15.6 million, an increase of 5.4%, compared with $14.8 million in the fourth quarter of last year. Gross margin declined slightly to 40.7% from 41.9% in the 2002 quarter but was up significantly from the first three quarters of 2003 as the rate of production increased. Research, development and engineering costs rose 17.6% compared with last year's fourth quarter, as the Company continued to invest in the development of new products. After a difficult period, one in which the Company reported losses for the first three quarters of 2003 due to the weakness in the market for life science equipment, it appears that the market has finally turned around. As a result, the Company achieved net income for the 2003 fourth quarter of $894,000, or $0.10 per diluted share, compared with net income of $914,000, or $0.11 per diluted share earned in the same period a year ago.
Although sales improved significantly in the fourth quarter, for the full year, net sales declined 13.7%, to $49.4 million, compared with last year's $ 57.2 million. The Company could not overcome in one quarter the earlier weakness in demand and reduced capital spending by pharmaceutical and biotechnology companies. The Company sustained a net loss of $1.5 million, or $0.17 per diluted share for the year, compared with net income of $2.6 million, or $0.30 per diluted share in 2002.
On November 14, 2003, the Company completed the acquisition of RS Biotech Laboratory Equipment Limited, a U.K. designer, developer and manufacturer of CO2 Incubators, which has a significant presence in the U.K. marketplace and is presently ramping up sales in many other countries but sells virtually no units in the United States, thereby presenting the Company with an important opportunity for future growth.
David Freedman, Chairman and Chief Executive Officer of New Brunswick Scientific, said, "Throughout most of the year sluggish demand produced margin pressures that penalized profitability and earnings. During the latter part of the third quarter and into the fourth quarter our business began to experience steady improvement. This turnaround is gaining momentum and we are encouraged by the Company's near-term outlook. Our backlog is 35% greater than it was at the end of last year. The improvement in business continues to be driven by orders for our new sterilizable-in-place fermentors and Innova 44 incubator shakers, as well as by improving export sales. Assuming present business trends continue to build, the outlook looks bright and the Company currently anticipates that it will be profitable for 2004," Mr. Freedman concluded.
New Brunswick Scientific, an industry leader, provides a wide variety of research equipment and scientific instrumentation for use in medical, biological and chemical applications, as well as environmental research and commercial development of various goods. The Company's products are used in the creation, maintenance and control of physical and biochemical conditions required for the growth, detection and storage of microorganisms for the life sciences.
This press release includes statements that may constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Further information concerning risk factors is described in the Company's Securities and Exchange Commission filings.
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
Three Months Ended Year Ended
December December December December
31, 31, 31, 31,
2003 2002 2003 2002
Net sales $15,594 $14,793 $49,404 $57,226
Operating costs and expenses:
Cost of sales 9,242 8,588 30,935 33,345
Selling, general and
administrative expenses 3,877 3,907 16,042 16,353
Research, development and
engineering expenses 888 755 3,414 2,872
Total operating costs and
expenses 14,007 13,250 50,391 52,570
Income (loss) from operations 1,587 1,543 (987) 4,656
Other income (expense):
Interest income 35 32 84 64
Interest expense (151) (109) (485) (460)
Other, net (133) (41) (38) (185)
(249) (118) (439) (581)
Income (loss) before income tax
expense 1,338 1,425 (1,426) 4,075
Income tax expense 444 511 29 1,491
Net income (loss) $894 $914 $(1,455) $2,584
Basic net income (loss) per
share $0.10 $0.11 $(0.17) $0.31
Diluted net income (loss) per
share $0.10 $0.11 $(0.17) $0.30
Basic weighted average number of
shares outstanding 8,616 8,549 8,592 8,416
Diluted weighted average number
of shares outstanding 8,713 8,660 8,592 8,621
Selected Balance Sheet Items
(Dollars in thousands)
December 31, December 31,
2003 2002
Cash and cash equivalents $10,536 $9,718
Accounts receivable 10,012 9,991
Inventories 12,304 11,676
Property, plant and equipment, net 6,478 5,615
Total assets 51,321 45,264
Accounts payable and accrued expenses 7,260 6,489
Long-term debt, net of current installments 7,675 5,213
Shareholders' equity 31,859 30,642
Working capital 25,279 26,251
Current ratio 3.8 to 1 4.8 to 1
SOURCE New Brunswick Scientific Co., Inc.
/CONTACT: Investors - Samuel Eichenbaum, Vice President, Finance and
Treasurer of New Brunswick Scientific Co., Inc., +1-732-650-2500,
same@nbsc.com/
/Web site: nbsc.com /
(NBSC)
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