Thursday August 1, 12:48 pm Eastern Time
Press Release
SOURCE: New Brunswick Scientific Co., Inc.
New Brunswick Scientific Co., Inc., Reports Record Second-Quarter and First-Half Financial Results
EDISON, N.J., Aug. 1 /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (NBS) (Nasdaq: NBSC - News), today announced record financial results for the 2002 second quarter and first six months, which ended June 30, 2002.
Net sales for the 2002 second quarter increased 8.9 percent to $16.1 million compared with the prior second-quarter record of $14.8 million set a year ago. Last year's second quarter revenues included $1.7 million from fully custom-engineered bioprocess equipment, a product line for which the Company ceased accepting orders after June 29, 2001, as well as $0.2 million of revenues from DGI BioTechnologies, Inc. Net sales on a comparable basis increased 25 percent during the quarter.
Net income also set a second-quarter record, reaching $846,000, or $0.11 per diluted share, compared with $138,000, or $0.02 per diluted share, a year ago. Last year's results included items that did not recur in this year's second quarter-$594,000 in research expenses and $200,000 of revenue attributable to DGI, and a $260,000 charge related to severance costs associated with the Company's decision to stop accepting orders for fully custom-engineered bioprocess equipment.
First-half 2002 revenues of $29.4 million were relatively flat compared with $29.5 million last year. Adjusted to exclude fully custom-engineered bioprocess equipment and DGI revenues aggregating $4.1 million in last year's first half, net sales increased 16 percent for the 2002 six-months.
Gross margins increased for the 2002 first half to 41.2 percent from 40.4 percent a year ago. Net income surged to a first-half record of $1,412,000, or $0.18 per diluted share, compared with $252,000, or $0.03 per diluted share, for 2001's first half. Last year's results included the aforementioned items that did not recur in this year's second quarter -- $1,312,000 in research expenses and $400,000 of revenue attributable to DGI, and $260,000 related to severance costs.
New Brunswick Scientific co-founder and Chairman David Freedman said, "These record results positively reinforce our strategy implemented last year to focus on core operations and enhance efficiency throughout the entire organization. The results we are reporting today illustrate the meaningful progress we have made, and we expect further improvements in the future. Our lead times to manufacture and ship products have decreased, which contributed to our improved operating results and financial position."
He continued, "Our outlook for the future is positive in spite of the short-term challenges our industry has been facing. Our European operating results should benefit from the weakening dollar and we have a new-product development initiative, which we expect will begin to impact sales early next 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. 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(1)
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Net sales $16,113 $14,799 $29,376 $29,499
Operating costs and
expenses:
Cost of sales 9,676 8,703 17,259 17,585
Selling, general and
administrative
expenses 4,308 4,069 8,418 8,169
Research, development
and engineering
expenses 723 735 1,322 1,448
DGI research
expenses -- 594 -- 1,312
Non-recurring
severance costs -- 260 -- 260
Total operating
costs and expenses 14,707 14,361 26,999 28,774
Income from
operations 1,406 438 2,377 725
Other income (expense):
Interest income 8 15 17 33
Interest expense (121) (144) (236) (296)
Other, net 8 (19) 14 (47)
(105) (148) (205) (310)
Income before income
tax expense
and equity in
operations
of DGI 1,301 290 2,172 415
Income tax 455 62 760 73
Income before
equity in
operations of DGI 846 228 1,412 342
Equity in
operations
of DGI -- (90) -- (90)
Net income $846 $138 $1,412 $252
Basic earnings
per share $.11 $.02 $.19 $.03
Diluted earnings
per share $.11 $.02 $.18 $.03
Basic weighted average
number of
shares
outstanding 7,645 7,404 7,563 7,402
Diluted weighted
average number of
shares outstanding 7,986 7,428 7,826 7,421
(1) The Company adopted the provisions of SFAS 142 as of January 1, 2002
and has determined that no impairment exists to its goodwill at that
date. Goodwill is no longer being amortized, however, the 2001 three
and six month periods include $47 and $91, respectively, of goodwill
amortization.
Selected Balance Sheet Items
(Dollars in thousands)
June 30, December 31,
2002 2001
(Unaudited)
Cash and cash equivalents $5,208 $3,794
Inventories 15,074 15,168
Property, plant and equipment, net 4,772 4,868
Total assets 45,663 44,543
Accounts payable and accrued expenses 6,984 9,136
Long-term debt, net of current installments 6,657 6,751
Shareholders' equity 29,673 26,296
Working capital 27,523 24,389
Current ratio 4.8 to 1 3.6 to 1
SOURCE: New Brunswick Scientific Co., Inc. |
