Trickle has not followed Apogent for a while, but it is good to see this news from them:
>>PORTSMOUTH, N.H.--(BUSINESS WIRE)--Oct. 9, 2002--Apogent Technologies Inc. (NYSE: AOT - News), a leading manufacturer of laboratory and life science products, today reaffirmed guidance for fiscal year 2002 and provided its business outlook for fiscal year 2003. In addition, the company announced the acquisitions of NeoMarkers, Inc. and Opus Diagnostics.
FISCAL YEAR 2002 GUIDANCE AND BUSINESS OUTLOOK
Commenting on the fiscal year ended September 30, 2002, Apogent's President and Chief Executive Officer, Frank H. Jellinek, Jr. said: "Despite a challenging economic environment throughout the year, Apogent expects to report year-over-year revenue growth of approximately 9.5% and fully diluted earnings per share from continuing operations (before restructuring charges) of approximately $1.30. These expected results are subject to completion of our year-end audit procedures."
Regarding its business outlook for the fiscal year ending September 30, 2003, Mr. Jellinek said: "Revenues for the next year are expected to be approximately 8-10% higher than the year just finished. Current operating margins are expected to be maintained or slightly enhanced. Our balance sheet is expected to grow even stronger and our fully diluted earnings per share from continuing operations are expected to range from $1.37 to $1.43 for the year."
Mr. Jellinek continued: "We have built a first class business, which has delivered and will continue to deliver strong returns for its shareholders. Our core companies reinforce each other's strengths in manufacturing, marketing, technology and distribution. We plan to continue to be a prominent supplier to three different yet related markets -- clinical, research and industrial laboratories -- which provide the benefit of diversification and the synergy of common customers. The vast majority of our sales continue to be consumable products (approximately 80%), which generate predictable earnings and cash flow streams. Many of these products are mission critical to our customers. We also expect to have a strong year in product development generating $25-30 million in revenues from new products."
"The fundamental elements of our strategy have proven very effective and remain sound. We expect to continue to maximize growth by combining high margins and modest internal growth with focused, low risk acquisitions. While we have seen the number of attractive acquisition targets decline over time, we still anticipate spending $75 million or more in acquisitions in this next year. We plan to augment shareholder returns by using excess cash from operations to increase business investments in capital equipment and new product development, where attractive, and to repurchase our stock pursuant to our previously announced program. Our current stock repurchase program is 50% complete (1,000,000 shares purchased) and we intend to continue that program in the new year. Our balance sheet will be utilized to maximize shareholder returns consistent with maintaining an investment grade rating. In summary, we are excited and optimistic about the new year yet realize that current soft levels of demand for certain of our product lines may continue."
ACQUISITIONS
On October 1, 2002, Lab Vision Corporation, an Apogent subsidiary, acquired NeoMarkers, Inc. of Fremont, California. NeoMarkers products include antibodies and specialty markers used in the discovery of drug targets and to study human tissue samples for cancer. Lab Vision, a manufacturer of instruments, namely immunohistochemistry stainers, has distributed NeoMarkers products for the past seven years. This acquisition is intended to ensure that Lab Vision has ongoing supply of its critical consumables and should allow the company to enhance its new product development activities. The acquisition is expected to enhance profitability at Lab Vision although it is not expected to increase revenues.
Today, Seradyn, Inc., another Apogent subsidiary, has acquired the operating assets of Opus Diagnostics, Inc. of Fort Lee, New Jersey. Opus is a wholly owned subsidiary of Caprius, Inc. (OTCBB: CAPR - News). The Opus Diagnostics product line comprises a range of therapeutic drug monitoring assays, calibrators and controls. Seradyn is currently a contract manufacturer of the Opus Diagnostics product line. With this acquisition, Seradyn will control the customer relationships of Opus Diagnostics and will benefit from several advanced stage product development initiatives. During the first year with Seradyn, the Opus products are expected to contribute approximately $2.0 million in revenue.
Commenting on these acquisitions, Mr. Jellinek said: "The NeoMarkers and Opus consumable product lines strengthen our business base in key markets and position us for future growth through selective new product development initiatives. These acquisitions fit well with our continuing strategy of purchasing relatively small yet successful companies at reasonable prices that bolt on to existing operations."
UPCOMING EVENTS
Company Presentation
Apogent will present at the UBS Warburg Global Life Sciences Conference on Thursday, October 10, 2002 at 10:00 a.m. EDT. A webcast of the presentation will be available through a link that will be posted in the Investor Relations section of Apogent's website at www.apogent.com. An archive of this webcast and the accompanying presentation materials will be available there approximately two hours following the presentation and will remain available until Thursday, October 17, 2002.
Company Earnings Release and Conference Call
Apogent will release its full results for the fiscal year ended September 30, 2002 on Thursday, November 14, 2002, after the close of market. The company will host a conference call on Friday, November 15, 2002 at 11:00 a.m. EST to discuss these results and the business outlook. The dial-in numbers for the conference call are:
Domestic Callers (877) 679-9054
International Callers (952) 556-2807
The conference call will be simultaneously audio webcast on Apogent's website in the Investor Relations section at www.apogent.com. An archive of the webcast will be available on Apogent's website until December 13, 2002.
A telephone replay of the call will also be available until 1:00 p.m. EST on Tuesday, November 19, 2002. The telephone replay numbers are (800) 615-3210 (Domestic Callers) or (703) 326-3020 (International Callers), passcode 6067517.
BUSINESS DESCRIPTION
Apogent Technologies Inc. is a diversified worldwide leader in the design, manufacture, and sale of value-added laboratory and life science products essential for healthcare diagnostics and scientific research. Apogent's companies are managed in three business segments: Clinical Diagnostics, Labware and Life Sciences, and Laboratory Equipment.<<
snipped the safe harbor boilerplate
Cheers, Tuck |
