IVGN Announces Fourth Quarter and Full-Year 2000 Results
SAN DIEGO, Feb. 28 /PRNewswire/ -- Invitrogen Corporation (Nasdaq: IVGN)
today announced results for its full year and fourth quarter ended
December 31, 2000. Reported results include the contribution from Life
Technologies' operations following its acquisition by Invitrogen on
September 14, 2000, which was accounted for using the purchase method of
accounting. Unless otherwise noted, results for 1999 do not include any
contribution from Life Technologies. Invitrogen's use of the term "pro forma"
in this document refers to figures calculated by removing amortization and
merger-related charges from reported results.
Financial Highlights:
-- Full-year 2000 revenues were $246.2 million, an increase of
$153.3 million from 1999. Fourth quarter 2000 revenues were
$143.2 million, an increase of $119.3 million over the same quarter of
1999.
-- 2000 pro forma income available to common stockholders excluding
amortization and merger-related charges, net of tax, rose 177% to
$36.0 million. Comparable earnings per share rose 78% to $1.07.
-- Fourth quarter 2000 pro forma income excluding amortization and
merger-related charges, net of tax, was $18.8 million. Comparable
earnings per share rose 84% to $0.35.
-- Earnings Before Interest, Taxes, Depreciation, Amortization (EBITDA),
and merger-related charges were $52.8 million for 2000, and
$26.7 million for the 4th quarter of 2000.
Full-Year 2000 Results
Revenues
Reported revenues for the year ended December 31, 2000 were
$246.2 million, a 165% increase over 1999 revenues of $92.9 million.
Invitrogen's revenues in 2000 include sales of products from Life Technologies
after the September 14, 2000 acquisition date.
Presenting the revenues of Invitrogen and Life Technologies as if they had
been combined for all of 2000 and 1999, total revenues were $567.0 million
compared with $516.6 million in 1999. Combined revenues of molecular biology
products were $366.7 million in 2000 compared to $318.7 million on a combined
basis in 1999, a growth rate of 15.1%. Changes in foreign exchange rates
during 2000 reduced the dollar-denominated sales of molecular biology products
by $10.2 million. If foreign exchange rates had remained constant with those
in 1999, the combined revenues for molecular biology products would have been
$376.9 million, an increase of 18.3% over the combined sales from 1999.
Revenues for cell culture products, again assuming Life Technologies had
been part of Invitrogen for all of 2000 and 1999, totaled $200.3 million in
2000, up 1.2% from $197.9 million in 1999. Foreign exchange effects reduced
the dollar-denominated amount of cell culture sales by $8.2 million when
comparing 2000 with 1999. If foreign exchange rates had remained constant
with those in 1999, cell culture revenues would have been $208.5 million, up
5.3% from 1999.
Gross Margins
Reported gross margins were reduced primarily by the sale of Life
Technologies products previously written-up under purchase accounting rules,
as well as by the combination of Life Technologies' otherwise lower gross
margins with Invitrogen's. These two effects were the primary cause of the
decline in the company's gross margins for 2000 to 49% from 64% in 1999.
Adjusting for the $16.6 million increased cost of written-up Life Technologies
products, gross margins for the combined company would have been 56%.
Operating Margins Excluding Amortization and Merger-Related Expenses
Invitrogen's operating margin, excluding amortization and non-recurring
merger-related costs, was 17.6% for the full year 2000. This represents a
decrease from the comparable operating margin of 18.3% for 1999. This
decrease is due primarily to the addition of Life Technologies, which had
lower operating margins.
The amortization of goodwill and other intangibles totaled $81.6 million
for 2000, the majority of which was related to the acquisition of Life
Technologies.
Taxes
Invitrogen reported an income tax benefit for the year ended December 31,
2000 of $514,000, or 0.9% of pre-tax income. Excluding the impact of
amortization and merger-related costs, the company's effective tax rate was
35.3% in 2000, compared with 32.8% in 1999. This increase is attributable to
a lower benefit from tax credits in 2000 and to a greater proportion of
taxable income from Life Technologies operations arising in countries outside
the U.S. that have, on average, statutory tax rates higher than the U.S. rate.
Earnings
Pro forma income available to common stockholders for the year ended
December 31, 2000, excluding amortization and merger-related costs, net of
tax, was $36.0 million, up 177% compared with $13.0 million for 1999. Pro
forma earnings per share were $1.07 for 2000, up 78% over pro forma earnings
per share for 1999 of $0.60.
For the twelve months ended December 31, 2000, Invitrogen posted a net
loss available to common stockholders of $54.3 million, or $1.80 per share.
This compares with net income available to common stockholders of
$10.0 million, or $0.46 per share, for the full year 1999, which included a
$1.0 million incremental adjustment reflecting the final redemption price for
redeemable preferred stock that was determined at the time of the company's
initial public offering in February, 1999.
Balance Sheet Items
At December 31, 2000, Invitrogen had $418.9 million in cash and cash
equivalents, up from $102.2 million at the end of 1999. At the end of 2000,
the company had $172.5 million in convertible subordinated notes outstanding.
Fourth Quarter 2000 Results
Revenues
Revenues of $143.2 million for the fourth quarter of 2000 included the
contribution of Life Technologies for the full quarter, and were dramatically
higher than the $23.9 million in revenues recorded by Invitrogen in the fourth
quarter of 1999.
Presenting the revenues of Invitrogen and Life Technologies as if they had
been combined for the 4th quarters of 2000 and 1999, molecular biology
revenues were $92.8 million compared with $82.0 million in 1999. If foreign
exchange rates had remained constant with those in 1999, the combined revenues
for molecular biology products would have increased 18.5% over the combined
sales from 1999's 4th quarter.
Revenues for cell culture products, again assuming Life Technologies had
been part of Invitrogen for the 4th quarters of 2000 and 1999, totaled
$50.4 million in 2000, down 2.1% from $51.5 million in the 1999 quarter.
Foreign exchange effects reduced the dollar-denominated amount of cell culture
sales 6.5%, or $3.4 million, when comparing the 2000 quarter with the
4th quarter of 1999. If foreign exchange rates had remained constant with
those in 1999, cell culture revenues would have been $53.8 million for the
4th quarter of 2000, up 4.5% from the 1999 quarter.
Gross Margins
Gross margins of 42% for the 4th quarter of 2000 are down from the 68%
recorded by Invitrogen for the 4th quarter of 1999. As is the case for
full-year gross margins, reported gross margins for the 4th quarter were
reduced primarily by the sale of Life Technologies products previously
written-up under purchase accounting rules, as well as by the combination of
Life Technologies' otherwise lower gross margins with Invitrogen's. Adjusting
for the $12.3 million increased cost of written-up Life Technologies products,
4th quarter gross margins for the combined company would have been 51%.
Earnings
Pro forma net income for the quarter ended December 31, 2000, which
excludes amortization and merger-related costs, net of tax, was $18.8 million,
up from the $4.7 million recorded for the same period in 1999. These figures
represent pro forma earnings per share of $0.35, up 84% from the $0.19 per
share for 1999's fourth quarter.
For the quarter ended December 31, 2000, Invitrogen posted a net loss of
$51.7 million, or $1.03 per share, compared to earnings of $4.6 million, or
$0.19 per share for the 4th quarter of 1999.
Highlights of 2000
In February 2000, Invitrogen completed the acquisition of Research
Genetics, Inc. of Huntsville, Alabama, a leading supplier of products and
services for functional genomics and gene-based drug discovery research. "Our
acquisition of Research Genetics further broadened our market presence into
new areas of genomics, giving us the ability to serve customers from the
earliest phases of gene identification and validation. During 2000, Research
Genetics was the key figure in several collaborations we formed, which
strengthen the breadth and depth of its gene library offering and reaffirm its
leadership position as the gene supplier of choice," said Lyle Turner,
Invitrogen's Chairman and CEO.
Invitrogen acquired Ethrog Biotechnologies, Ltd. in June 2000, a supplier
of nucleic acid separation systems. "Ethrog strengthens the position of our
NOVEX business by establishing us as a leader in high-speed, easy to use
nucleic acid electrophoresis," remarked Mr. Turner.
The September 2000 acquisition of Life Technologies was by far the largest
and most significant business combination in Invitrogen's history. Commenting
on the acquisition, Mr. Turner said, "It would be difficult to overstate the
strategic and financial importance of our acquisition of Life Technologies.
With the industry's premier worldwide distribution system, a complementary
product line, and compelling synergies with Invitrogen's technologies, Life
Technologies represented a strategic fit with Invitrogen that is rarely seen.
Financially, the opportunity was equally significant for us. With revenues
four times ours, growing profits, and the opportunity for Invitrogen to
conclude the acquisition having more cash and greater earnings per share,
acquiring Life Technologies offered an outstanding opportunity to create value
for Invitrogen's shareholders."
Turner also noted that, since the merger, Invitrogen has already launched
15 new products based on the combination of Invitrogen's technologies with
those obtained from Life Technologies. During 2000, Invitrogen launched a
total of 66 new products and obtained 9 new technology licenses. During this
same period, Life Technologies launched 110 new products and obtained
24 technology licenses. At the end of 2000, the company had more than
200 technology licensing agreements covering approximately 400 patents. "Our
company has been able to grow rapidly thanks to an aggressive in-licensing
strategy that shortens product development times," added Turner.
Invitrogen will host a conference call today, February 28, 2001 at
11:00 a.m. Eastern Standard Time to discuss these results and the company's
guidance for 2001. To join the conference call, please dial 212-896-6099
after 10:55 a.m. EST. |
