emphasis mine........
Monday August 13, 10:00 am Eastern Time
Press Release
SOURCE: New Brunswick Scientific Co., Inc.
New Brunswick Scientific Co., Inc., Reports Improved
Second-Quarter and First-Half Financial Results
First-Half Revenues Increase 31 percent
EDISON, N.J., Aug. 13 /PRNewswire/ -- New Brunswick Scientific Co., Inc. (Nasdaq:
NBSC - news; NBS), today announced its financial results for the 2001 second quarter and
first six months, which ended June 30, 2001.
Net sales for the 2001 second quarter increased 23 percent to $14,799,000 compared with
the $12,007,000 reported for the year-ago quarter. Net income for the quarter was
$138,000, or $0.02 per diluted share, compared with 2000's second-quarter loss of
$1,950,000, or $0.29 per diluted share. Last year's reported results included an $800,000
charge related to the writedown of the Company's investment in Organica, Inc. This year's
second-quarter results include a $260,000 charge related to severance costs associated with
the Company's decision to stop accepting orders for fully custom-engineered bioprocess
equipment. The Company will redirect its focus to its core bioprocess equipment line which it
will expand and continue to modify to suit customer requirements. On June 15, 2001, the
Company's investment in DGI BioTechnologies, Inc. (DGI) was reduced from 84% to 47%
as a result of the previously announced $5 million investment in DGI by an institutional
investor. As a result, NBS is no longer required to, and will not record losses from its share
of DGI's operations beyond the carrying value of its investment ($410,000 at June 30, 2001)
since it has no further obligation to fund the DGI operations. Excluding the impact of DGI on
both periods as well as the aforementioned nonrecurring items, income before income taxes
reached $944,000, compared with last year's loss of $389,000.
For the first six months of 2001, net sales rose 31 percent to $29,499,000 compared with
the $22,548,000 reported for the same period last year. Including the aforementioned
charges, net income for the first six months of 2001 was $252,000, or $0.04 per diluted
share, compared with a loss of $3,328,000, or $0.50 per diluted share for 2000's first half.
Excluding the impact of DGI on both periods as well as the nonrecurring items, income
before income taxes reached $1,587,000 compared with last year's loss of $1,061,000.
New Brunswick Scientific co-founder and Chairman David Freedman said, ``Despite lingering softness in our European
markets, we realized substantial increases in both sales and earnings and generated our third consecutive quarter of improved
profitability. Shipments continued their upward momentum with solid sales performances from our core shakers and fermentors;
and reflected shipments of previous orders for custom bioprocess systems. We are especially pleased with the order flow of
ultra-low temperature freezers, in particular the vacuum-insulated panel (VIP) line, which surged an impressive 87 percent from
last year's first half. Additionally, we realized benefits from the cost-controls set in place last year as well as lower expenses
associated with DGI.''
He continued, ``Our outlook for the year's second half is favorable. While we believe competitive pressures resulting from the
strong dollar will continue to restrain international sales, these effects should be more than offset by continuing strong demand
for NBS' freezers and core equipment lines. At the end of the second quarter, backlog for the Company's core products held
steady at $7.9 million-two percent higher than at the end of the first quarter and the beginning of the year.''
New Brunswick Scientific Co., Inc., designs and manufactures a wide variety of research equipment and scientific instruments
for the life sciences and holds a minority equity position in DGI BioTechnologies, Inc., a drug-lead-discovery operation.
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.
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Net sales $14,799 $12,007 $29,499 $22,548
Operating costs and expenses:
Cost of sales 8,703 7,159 17,585 13,178
Selling, general and
administrative
expenses 4,069 4,019 8,169 8,028
Research, development
and engineering
expenses 735 935 1,448 1,858
DGI research expenses 594 942 1,312 1,795
Non-recurring
severance costs 260 0 260 0
Total operating
costs and
expenses 14,361 13,055 28,774 24,859
Income (loss) from
operations 438 (1,048) 725 (2,311)
Other income (expense):
Interest income 15 9) 33 21
Interest expense (144) (153) (296) (302)
Other, net (19) (22) (47) (29)
Writedown of investment 0 (800) 0 (800)
(148) (966) (310) (1,110)
Income (loss) before
income tax expense
(benefit) and equity
in operations of DGI 290 (2,014) 415 (3,421)
Income tax (benefit) 62 (64) 73 (93)
Income (loss) before
equity in operations
of DGI 228 (1,950) 342 3,328
Equity in operations
of DGI (90) 0 (90) 0
Net income (loss) $138 $(1,950) $252 $ (3,328)
Basic earnings (loss)
per share $.02 $(.29) $.04 $(.50)
Diluted earnings (loss)
per share $.02 $(.29) $.04 $(.50)
Basic weighted average
number of shares
outstanding 6,731 6,659 6,729 6,592
Diluted weighted
average number of
shares outstanding 6,753 6,659 6,746 6,592
Selected Balance Sheet Items
(Dollars in thousands)
June 30, December 31,
2001 2000
(Unaudited)
Cash and cash equivalents $1,613 $2,473
Inventories 16,905 16,721
Property, plant and equipment, net 5,150 5,936
Total assets 41,137 43,006
Accounts payable and accrued expenses 7,592 8,200
Long-term debt, net of current installments 624 694
Shareholders' equity 24,964 25,942
Working capital 14,961 15,068
Current ratio 2.0 to 1 2.0 to 1
SOURCE: New Brunswick Scientific Co., Inc. |
