New Brunswick Scientific Reports 2000 Third-Quarter and Nine-Months Financial Results
EDISON, N.J., Nov. 10 /PRNewswire/ -- New Brunswick Scientific Co., Inc.
(Nasdaq: NBSC), today reported its operating results for the third quarter and
nine months ended September 30, 2000.
For third-quarter 2000, net sales increased 3.7 percent to $12.6 million
from $12.1 million for the year-ago period. The Company reported a net loss
of $631,000, or $.10 per share, compared with the net loss of $485,000, or
$.08 per share, in 1999's third quarter. The loss for the 2000 quarter
included a $150,000 writeoff of the balance of the Company's investment in
Organica, Inc.
For the 2000 nine-months, revenues were $34.8 million, compared with
$38.5 million for the same period last year. A portion of the decline in
revenues is attributed to DGI, which contributed $1,693,000 in the 1999 period
compared with $328,000 in 2000's first nine months. The net loss for the
period was $4.0 million, or $.66 per share, versus the loss of $788,000, or
$.14 per share, for the comparable period in 1999. Both the quarterly and
nine-month results were negatively affected by depressed shipments from the
Company's European subsidiaries and by the writeoff of the Company's
investment in Organica, Inc.
Gross margins continued to improve as a result of the acquisition of DJM
in November 1999 as well as a more profitable mix of products sold. For the
nine-month period, gross margins, excluding DGI revenues, improved to
40.6 percent from 36.5 percent in the 1999 period.
The Company also stated that orders for its custom bioprocess units have
increased. These units typically require six to nine months of production
time to complete, and the larger number of units currently in production are
partially responsible for the Company's higher inventory level.
Order levels are also solid as evidenced by the more than 48 percent
increase in consolidated backlog since the beginning of the year.
Approximately flat with the level at the end of the second quarter, the
backlog now stands at $12.7 million, versus $8.6 million at December 31, 1999.
New Brunswick Scientific co-founder and Chairman David Freedman said,
"While we are disappointed with the softness in our European shipments, it
appears to be a temporary situation. On balance, we are very encouraged by
the number of contracts we are being awarded for our custom bioprocess
equipment. We expect a positive impact in the fourth quarter as we are
scheduled to ship several units before year-end."
He concluded, "Expenses associated with DGI BioTechnologies continue to
restrain our financial performance. DGI's expenses increased 15 percent to
$2.6 million during the nine-month period. We believe DGI needs to become
financially self-sufficient in the near term. We are continuing actively to
explore means to accomplish this."
New Brunswick Scientific Co., Inc., designs and manufactures a wide
variety of research equipment and scientific instruments for the life
sciences. The Company, through DGI BioTechnologies, its greater than
83 percent owned drug-lead-discovery operation, has developed a proprietary
process that is expected to result in the discovery of novel therapeutics by
generating biologically active drug leads for known pharmaceutical targets.
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, including without limitation risks relating to the
development by DGI of its technology, 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.
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30,
2000 1999 2000 1999
Net sales $12,597 $12,146 $34,793 $38,491
Operating costs and expenses:
Cost of sales 7,534 7,250 20,458 23,361
Selling, general and
administrative
expenses 3,769 3,678 11,699 11,297
Research, development
and engineering
expenses 1,594 1,595 5,247 4,488
Total operating costs
and expenses 12,897 12,523 37,404 39,146
Loss from operations (300) (377) (2,611) (655)
Other income (expense):
Interest income 15 11 36 35
Interest expense (166) (23) (468) (38)
Other income (expense),
net (34) 39 (57) 23
Writedown of investment (150) -- (950) --
Equity in loss in joint
venture company (8) (15) (14) (33)
(343) 12 (1,453) (13)
Loss before income taxes (643) (365) (4,064) (668)
Income tax expense
(benefit) (12) 120 (105) 120
Net loss $(631) $( 485) $ (3,959) $(788)
Basic loss per share $(.10) $(.08) $(.66) $(.14)
Diluted loss per share $(.10) $(.08) $(.66) $(.14)
Basic weighted average
number of
shares outstanding 6,071 5,862 6,017 5,827
Diluted weighted average
number of
shares outstanding 6,071 5,862 6,017 5,827
Selected Balance Sheet Items
(Dollars in thousands)
September 30, December 31,
2000 1999
(Unaudited)
Cash and cash equivalents $1,473 $2,111
Inventories 18,027 14,997
Property, plant and equipment, net 6,168 7,023
Total assets 43,532 46,026
Accounts payable and accrued expenses 7,262 7,831
Long-term debt, net of current installments 8,083 7,347
Shareholders' equity 25,552 29,770
Working capital 21,574 23,180
Current ratio 3.2 to 1 3.7 to 1
SOURCE New Brunswick Scientific Co., Inc.
Web Site: nbsc.com |
