Meridian Bioscience Reports On Profitable Operations, Increased Production and Plans to Expand Credit Facility
CINCINNATI--(BW HealthWire)--May 22, 2001--Meridian Bioscience,
Inc. (Nasdaq:VIVO) today announced operating results for the month of
April were profitable, consistent with the Company's earlier public
statements that it expected operating results would become profitable
during the current quarter. Quoting from the April 24, 2001, press
release, "Notwithstanding the operating losses reported for the second
quarter and first half of fiscal 2001, meaningful progress has been
made in improving Meridian's quality systems, strengthening the
management team, resuming product shipments, managing customer
relations and moving toward profitable operations." Production for the
month ended April 30, 2001 increased more than twofold over the low
point reached during the second fiscal quarter. The gross profit
margin for April was 63%, primarily as a result of higher production
levels and favorable product mix, up from 50% for the second quarter.
Both the Company's U.S. and European operating divisions operated at a
profit during April.
Meridian also reported that it is in the process of negotiating an
expansion from $22.5 million to $25 million of its commercial bank
credit facility that expires December 2001. At April 30, 2001,
borrowings of $11.1 million were outstanding. The Company's balance
sheet is sound and expected to increase in strength during the second
half of fiscal 2001. At March 31, 2001, current assets were
$35.3 million as compared to current liabilities of $16.7 million,
thereby producing net working capital of $18.6 million and a current
ratio of 2.1 Cash and equivalents were $4.2 million. Long-term debt
obligations were $26.5 million compared to shareholders' equity of
$25.4 million.
As stated previously, barring unforeseen circumstances, Meridian
does not anticipate problems with regard to liquidity or its ability
to meet its working capital needs, capital expenditure plans,
contractual payments or indicated cash dividend requirements. The
Company's indicated annual cash dividend rate is $0.26 per common
share and the most recent quarterly cash dividend of $0.065 per common
share was paid May 9, 2001.
John A. Kraeutler, President and Chief Operating Officer, stated,
"We are very pleased that operations have improved substantially since
February, as planned, and that we achieved profitable operations
during the month of April, even after on-going special charges
relating to FDA compliance and litigation costs." He further stated,
"Our employees are doing a great job of improving the Company's
operations and quality systems. We look forward to reporting
additional progress and more good news in the near future."
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor from civil litigation for forward-looking statements
accompanied by meaningful cautionary statements. These statements
identify important factors that could cause actual results to differ
materially from those that might be projected. Meridian's continued
growth depends, in part, on its ability to introduce into the
marketplace enhancements of existing products or new products that
incorporate technological advances, meet customer requirements and
respond to products developed by Meridian's competition. While
Meridian has introduced approximately 35 internally-developed products
since 1991, there can be no assurance that it will be successful in
the future in introducing such products on a timely basis. Ongoing
consolidations of reference laboratories and formation of
multi-hospital alliances may cause adverse changes to pricing and
distribution. Costs and difficulties in complying with laws and
regulations administered by the United States Food and Drug
Administration can result in unanticipated expenses and delays and
interruptions to the sale of new and existing products. One of
Meridian's main growth strategies is acquisition of companies and
product lines. There can be no assurance that additional acquisitions
will be consummated or that, if consummated, will be successful and
the acquired businesses successfully integrated into Meridian's
operations.
Meridian is a fully integrated life sciences company that
manufactures, markets and distributes a broad range of innovative
diagnostic test kits, purified reagents and related products and
offers biopharmaceutical enabling technologies. Utilizing a variety of
methods, these products provide accuracy, simplicity and speed in the
early diagnosis and treatment of common medical conditions, such as
gastrointestinal, viral, urinary and respiratory infections. All
Meridian products are used outside of the human body and require
little or no special equipment. The Company's products are designed to
enhance patient well being while reducing the total outcome costs of
healthcare. Meridian has strong market positions in the areas of
gastrointestinal and upper respiratory infections, serology,
parasitology and fungal disease diagnosis. In addition, Meridian is a
supplier of rare reagents and specialty biologicals. The Company
markets its products to hospitals, reference laboratories, research
centers, veterinary testing centers and physician offices in more than
60 countries around the world. The Company's shares are traded through
Nasdaq's National Market, symbol VIVO. Meridian's website address is
www.meridianbioscience.com.
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CONTACT: Meridian Bioscience, Inc.
John A. Kraeutler, 513/271-3700
KEYWORD: OHIO
INDUSTRY KEYWORD: MEDICAL BIOTECHNOLOGY PHARMACEUTICAL MEDICAL
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