New Brunswick Scientific Reports 2002 Fourth-Quarter And Full-Year Financial Results
Monday February 24, 3:12 pm ET
Declares 10% Stock Dividend
EDISON, N.J., Feb. 24 /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (Nasdaq: NBSC - News), today announced its financial results for the 2002 fourth quarter and full year ended December 31, 2002.
For the 2002 fourth quarter, net sales were $14.8 million compared with last year's fourth-quarter record of $17.3 million. Fourth-quarter net income of $914,000, or $0.12 per diluted share, compared with $1,836,000, or $0.24 per diluted share, in the year-ago period.
For the full year, revenues of $57.2 million compared with last year's $60.3 million sales record. Last year's revenues included $5.2 million from fully custom-engineered bioprocess equipment for which the Company ceased accepting orders after June 29, 2001 and $400,000 of DGI revenues. Net sales on a comparable basis increased 4.6% during the year as a result of increased shipments of cell culture equipment, shakers and ultra-low temperature freezers.
Gross margin for 2002 increased to 41.7% from 39.9% a year ago, primarily attributable to the absence of lower margin sales of fully custom-engineered bioprocess equipment. Reported income before tax expense and equity in operations of DGI increased 47% reaching $4,225,000 from $2,883,000 last year. Adjusting for the $912,000 operating loss attributable to DGI in 2001 (during the period DGI was majority-owned by the Company), income before income tax expense and equity in operations of DGI increased 11% to $4,225,000, compared with $3,795,000 in 2001. Net income for 2002 improved 17% to $2,584,000 from 2001 net income of $2,211,000. Last year's reported pre tax results included: $400,000 of revenue from DGI, $1,312,000 in research expenses attributable to DGI, $260,000 in non-recurring severance costs and $182,000 of amortization of goodwill. Reported earnings per diluted share increased 10% to $0.33 from $0.30 last year.
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, 2003, to common shareholders of record as of the close of business on April 18, 2003. Fractional shares will be paid in cash.
Co-founder and Chairman David Freedman said, "As we predicted, despite the unfavorable economic environment of 2002, we successfully generated bottom line growth. This improvement is attributable to the year's more favorable product mix as well as the decline in DGI-related research expenses and losses versus 2001."
Mr. Freedman continued, "Our outlook for 2003 is mixed. Lingering softness has persisted into the year's opening months. However, efficiency improvements including facility optimization, which has resulted in shortened lead times and better sourcing of components, should have lasting effects in the future. Moreover, when capital expenditures begin to recover in the life sciences industry NBS will realize the full impact of these efficiency improvements. Unfortunately, we are unable to accurately predict when capital investment will normalize," Mr. Freedman concluded.
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
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
Net sales $14,793 $17,253 $57,226 $60,294
Operating costs and
expenses:
Cost of sales 8,588 10,180 33,345 36,265
Selling, general
and administrative
expenses(1) 3,907 4,309 16,353 16,205
Research, development
and engineering
expenses 755 702 2,872 2,751
DGI research expenses -- -- -- 1,312
Non-recurring severance
costs -- -- -- 260
Total operating
costs and
expenses 13,250 15,191 52,570 56,793
Income from operations 1,543 2,062 4,656 3,501
Other income (expense):
Interest income 32 11 64 56
Interest expense (109) (124) (460) (561)
Other, net (41) (37) (35) (113)
(118) (150) (431) (618)
Income before income
tax expense and equity
in operations of DGI 1,425 1,912 4,225 2,883
Income tax expense 511 42 1,491 145
Income before equity in
operations of DGI 914 1,870 2,734 2,738
Equity in operations
of DGI -- (34) (150) (527)
Net income $914 $1,836 $2,584 $2,211
Basic earnings per share $0.12 $0.25 $0.34 $0.30
Diluted earnings
per share $0.12 $0.24 $0.33 $0.30
Basic weighted average
number of shares
outstanding 7,772 7,424 7,651 7,412
Diluted weighted average
number of shares
outstanding 7,873 7,509 7,837 7,449
(1) The Company adopted the provisions of SFAS 142 as of January 1, 2002,
and therefore, since that date, goodwill is no longer being
amortized. However, the three months and year ended December 31,
2001 include $45 and $182, respectively, of goodwill amortization.
Selected Balance Sheet Items
(Dollars in thousands)
December 31, December 31,
2002 2001
Cash and cash equivalents $9,718 $3,794
Accounts receivable 9,991 12,811
Inventories 12,096 15,168
Property, plant and equipment, net 5,195 4,868
Total assets 44,747 44,543
Accounts payable and accrued expenses 6,489 9,136
Long-term debt, net of current installments 5,213 6,751
Shareholders' equity 30,125 26,296
Working capital 26,671 24,389
Current ratio 4.9 to 1 3.6 to 1
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Source: New Brunswick Scientific Co., Inc. |
