HERCULES, Calif., March 13, 2017 /PRNewswire/ -- Bio-Rad
Laboratories, Inc. (NYSE: BIO and BIOb), a global provider of life
science research and clinical diagnostic products, today announced
several significant strategic priorities, including initiating long
term financial guidance, commitment to defining new capital
allocation targets, and hosting an annual Investor Day later this
year.
Bio-Rad expects to achieve the following financial results for
revenue and EBITDA margins:
- Long-term currency-neutral revenue growth of approximately 3%
to 5%
- Currency-neutral EBITDA margin of greater than 20% by 2020
Bio-Rad will provide further details on its long term revenue
growth and profitability goals based on this EBITDA margin
target.
Bio-Rad also plans to define a prudent capital allocation policy
focused on maximizing value over the long-term. The Company commits
to evaluate leverage levels that will enable Bio-Rad to maintain
its strong balance sheet and investment grade credit ratings, while
providing flexibility to opportunistically pursue organic growth
initiatives and attractive bolt-on acquisitions. Should Bio-Rad
identify compelling strategic opportunities that take the Company
above this target, management is committed to de-levering back to
the target range over time. Given its excess cash position, Bio-Rad
intends to move to its target leverage ratio through share
repurchases and/or value-creating M&A.
Bio-Rad plans to hold an Investor Day later this year, during
which management will discuss the Company's operating performance,
organic and inorganic growth priorities and capital allocation
strategy.
Norman Schwartz, Bio-Rad Chairman
and Chief Executive Officer, commented: "Today marks an important
step forward for Bio-Rad. As we cycle through investments designed
to enhance our growth and improve our operating efficiency, we are
striving to achieve EBITDA margins that will create significant
stockholder value over the long-term. We are committed to improving
communication with the investor and analyst community as well as
actively pursuing additional sell-side coverage."
Reiterates 2017 Financial Outlook
Bio-Rad also reiterated its 2017 financial outlook and continues
to anticipate currency neutral revenue growth of approximately 4
percent, and improved profitability with a currency neutral GAAP
operating margin of 7 percent for the full year 2017. As previously
discussed, guidance includes elevated operating costs due to the
implementation of Bio-Rad's ERP system. Revenue and operating
margin guidance does not include the impacts of the recent
acquisition of RainDance.
About Bio-Rad
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) develops,
manufactures, and markets a broad range of innovative products and
solutions for the life science research and clinical diagnostic
markets. The company is renowned for its commitment to quality and
customer service among university and research institutions,
hospitals, public health and commercial laboratories, as well as
the biotechnology, pharmaceutical, and food safety industries.
Founded in 1952, Bio-Rad is based in Hercules, California, and serves more than
100,000 research and healthcare industry customers through its
global network of operations. The Company employs more than 8,250
people worldwide and had revenues exceeding $2 billion in 2016. For more information, please
visit www.bio-rad.com.
This release may be deemed to contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as,
"intends," "believes," "expects," "anticipates," "may,"
"will," "estimate," "continue," or similar expressions or the
negative of those terms or expressions, although not all
forward-looking statements contain these words. Such statements
involve risks and uncertainties, which could cause actual results
to vary materially from those expressed in or indicated by the
forward-looking statements. For further information regarding the
Company's risks and uncertainties, please refer to the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operation" in Bio-Rad's public reports
filed with the Securities and Exchange Commission, including our
most recent Annual Report on Form 10-K and our Quarterly Reports on
Form 10-Q. Bio-Rad cautions you not
to place undue reliance on forward-looking statements, which
reflect an analysis only and speak only as of the date hereof. We
disclaim any obligation to update these forward-looking
statements.
Contacts
Christine Tsingos, Executive Vice
President and Chief Financial Officer
Bio-Rad Laboratories, Inc.
510-741-6006
investor_relations@bio-rad.com
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SOURCE Bio-Rad Laboratories, Inc.