Monday April 2, 4:03 pm Eastern Time
Press Release
SOURCE: New Brunswick Scientific Co., Inc.
New Brunswick Scientific Co., Inc., Reports 2000 Fourth-Quarter and
Year-End Results
Declares 10% Stock Dividend
EDISON, N.J., April 2 /PRNewswire/ -- New Brunswick Scientific Co., Inc. (NBS) (Nasdaq: NBSC - news), a designer
and manufacturer of a wide variety of research equipment and scientific instruments for the life sciences, today announced its
financial results for the 2000 fourth quarter and full year ending December 31, 2000.
For the 2000 fourth quarter, net sales were $14,545,000, compared with $15,960,000 in last year's final quarter. Net income
for the quarter was $32,000, or $0.01 per diluted share, versus the net loss of $360,000, or $0.06 per diluted share, in the
fourth quarter of 1999.
For the full year, net sales were $49,864,000 versus $54,866,000 one year ago. A net loss of $3,927,000, or $0.65 per
diluted share, was incurred in 2000, compared with a net loss of $1,148,000, or $0.20 per diluted share, in 1999. Total
research and development expenditures, all of which were expensed by the Company, rose 12 percent in 2000, reaching
$6,903,000 from 1999's $6,176,000. Gross profit margin continued to improve, reflecting the positive impact of the DJM
Cryo-Research acquisition. Excluding DGI's operations, gross margin for 2000 advanced 220 basis points to 39.9 percent
from 37.7 percent last year.
Commenting on the results, co-founder and Chairman David Freedman said, ``2000 was an eventful year for New Brunswick
Scientific. We instituted a number of initiatives to refocus the Company on its core engineering and manufacturing operations
through enhanced efficiencies and refined internal processes. One of the most significant events of the year was the Board's
decision to seek outside investment for DGI BioTechnologies for the requisite working capital required to further develop its
technology.
``We are pleased to announce that we have received a preliminary commitment from an institutional investor to make a
substantial infusion of capital into DGI in return for a significant stake in that company which will reduce NBS' ownership in
DGI to under 50%. We are hopeful that after completion of due diligence, agreement on final terms and entrance into definitive
documentation the investment will be completed by the end of April 2001 and that this institutional investment may lead to
others.
He continued, ``This action accomplishes two objectives. If the transaction closes as presently contemplated it would unburden
our future earnings potential, enabling us to concentrate on what we do best?engineer and manufacture the highest-quality
equipment, instrumentation, and software for research and development in the life sciences. It would also enable us to retain a
substantial ownership stake in DGI for our shareholders. We view this as an optimal scenario, whereby our shareholders
benefit from future upside potential while insulating NBS' future financial results from the negative cash flow impact of DGI.
However, there can be no assurances that the transaction will be consummated.''
Based on its improved outlook for 2001, New Brunswick Scientific also announced today that its Board of Directors has
declared a 10-percent stock dividend on the Company's outstanding common stock. The stock dividend is payable on May
15, 2001, to common shareholders of record as of the close of business on April 16, 2001. Fractional shares will be paid in
cash.
New Brunswick Scientific Co., Inc., designs and manufactures a wide variety of research equipment and scientific instruments
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, 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)
Three Months Year Ended
December 31, December 31,
2000 1999 2000 1999
Net sales $14,545 $15,960 $49,864 $54,866
Operating costs and
expenses:
Cost of sales 8,726 9,313 29,710 33,089
Selling, general and
administrative
expenses 3,908 4,209 15,607 15,506
Research, development
and engineering
expenses 1,656 1,688 6,903 6,176
Non-recurring
severance costs -- 663 -- 663
Total operating costs
and expenses 14,290 15,873 52,220 55,434
Income (loss) from
operations 255 87 (2,356) (568)
Other income (expense):
Interest income 20 10 56 45
Interest expense (170) (89) (638) (127)
Other income (expense),
net (16) (43) (87) (53)
Write-off of Investment
in Organica, Inc. -- -- (950) --
(166) (122) (1,619) (135)
Income (loss) before
income taxes 89 (35) (3,975) (703)
Income tax expense
(benefit) 57 325 (48) 445
Net income (loss) $32 $(360) $(3,927) $(1,148)
Basic earnings (loss)
per share $.01 $(.06) $(.65) $(.20)
Diluted earnings (loss)
per share $.01 $(.06) $(.65) $(.20)
Basic weighted average
number of
shares outstanding 6,094 5,867 6,036 5,837
Diluted weighted average
number of
shares outstanding 6,210 5,867 6,036 5,837
Selected Balance Sheet Items
(Dollars in thousands)
December 31, December 31,
2000 1999
Cash and cash equivalents $2,473 $2,111
Inventories 16,721 14,997
Property, plant and equipment, net 5,936 7,023
Total assets 43,006 46,026
Accounts payable and accrued expenses 8,200 8,293
Long-term debt, net of current installments 694 7,347
Shareholders' equity 25,942 29,770
Working capital 15,068 23,180
Current ratio 2.0 to 1 3.7 to 1
SOURCE: New Brunswick Scientific Co., Inc. |
