Meridian Bioscience, Inc. (NASDAQ: VIVO) today announced financial
results for the third quarter and first nine months ended June 30,
2019.
Third Quarter 2019 Highlights (Comparison to Third
Quarter Fiscal 2018):
- Consolidated revenue decreased 6% to $48.4 million (5% decrease
in constant-currency)
- Diagnostics segment revenues decreased 9% to $33.1 million (8%
decrease in constant-currency)
- Life Science segment revenues were flat at $15.3 million (1%
growth in constant-currency)
- Reported GAAP operating income of $6.5 million (including $2.5
million of costs associated with acquisition activities,
restructuring activities and selected legal proceedings), as
compared to $8.7 million last year (which included $2.1 million of
costs associated with restructuring activities and selected legal
proceedings)
- Reported GAAP EPS of $0.12 per diluted share and Adjusted EPS
of $0.16 per diluted share (see non-GAAP financial measure
reconciliation below)
- Operating results include one month of activity related to the
acquisition of the business of GenePOC, completed on June 3,
2019
June Year-to-Date Fiscal 2019 Highlights (Comparison to
June Year-to-Date Fiscal 2018):
- Consolidated revenue decreased 6% to $150.2 million (5%
decrease in constant-currency)
- Diagnostics segment revenues decreased 9% to $103.3 million (8%
decrease in constant-currency)
- Life Science segment revenues were flat at $46.9 million (2%
growth in constant-currency)
- Reported GAAP operating income of $26.9 million (including $4.5
million of costs associated with acquisition activities,
restructuring activities and selected legal proceedings), as
compared to $24.5 million last year (which included $8.5 million of
costs associated with restructuring activities and selected legal
proceedings)
- Reported GAAP EPS of $0.47 per diluted share and Adjusted EPS
of $0.55 per diluted share (see non-GAAP financial measure
reconciliation below)
Third Quarter Fiscal 2019 Results
(Comparison to Third Quarter Fiscal 2018)Consolidated
revenue for the third quarter of fiscal 2019 decreased 6% to $48.4
million, compared to $51.7 million last year. Diagnostics
segment revenues were down 9%, while Life Science segment revenues
were relatively flat for the third quarter. Our Diagnostics
segment experienced continued competitive pressures in a number of
our molecular products, particularly C. difficile, and volume and
pricing declines in certain gastrointestinal products. Our
Life Science segment revenues for the quarter reflected
double-digit growth in the EMEA region as well as China, but this
was offset by softness in the Americas region.
Reported operating income for the third quarter
of fiscal 2019 decreased 26% to $6.5 million. SG&A
expenses were down $2.1 million, largely due to the effects of last
year’s organizational stream-lining activities, lower FDA Quality
System remediation costs for our Billerica manufacturing site and
lower incentive compensation costs. Research and development
expenses increased modestly for the quarter, primarily due to the
addition of costs associated with the acquisition of GenePOC’s
business. Reported operating income for the quarter also
included $2.5 million of costs for acquisition activities,
restructuring activities and selected legal proceedings.
Excluding the effects of such costs, adjusted operating income
achieved a margin of 18%, as compared to 21% on the same basis for
the third quarter of fiscal 2018.
GAAP net earnings for the third quarter of
fiscal 2019 totaled $5.1 million, or $0.12 per diluted share, down
26% and 25%, respectively. On an adjusted basis (non-GAAP),
earnings were $7.0 million, or $0.16 per diluted share, down 10%
and 11%, respectively. Adjusted basis excludes the effects of
costs of acquisition activities, restructuring activities and
selected legal proceedings.
Jack Kenny, Chief Executive Officer, commented,
“While we were anticipating a challenging third quarter, our
overall sales performance came in at the lower end of our
expectations. The Life Science segment was flat in the quarter,
which was below our expectations. The Diagnostics segment, which
had a 9% revenue decline, was in line with our expectations.
Our acquisition of the GenePOC business and the revogene™ molecular
diagnostics platform is intended to directly address competitive
pressures and trends in the molecular portion of our Diagnostics
product portfolio. We are optimistic that our
integration activities are on track, and early customer feed-back
for the revogene™ molecular diagnostics platform has been
positive. Although we are early-on in the process, we are
actively converting customers from our alethia™ system to the
revogene™ system, and results to-date are ahead of
expectations. Our development efforts on our
Diagnostics instrument platforms, revogene™, Curian™ and
PediaStat™, are making significant progress, and over the next
12-18 months, we expect to submit to the FDA multiple 510k
applications to help us drive future growth. For our Life
Science segment, despite the relatively flat revenue performance
during the quarter and the first nine months, customer order
activity in July signals that our fourth quarter will yield
positive revenue growth, with strong contributions from
China. Our new lyophilization-ready qPCR and RT-qPCR mixes
are showing meaningful revenue contributions as customers recognize
the advantages of room-temperature shipping and storage and
extended shelf life. We continue to refine and optimize our
organizational structure for both business segments to ensure
customer focus and cost efficiency. We effectively managed
our expenses without compromising future growth initiatives, which
led to better than expected earnings per share in the quarter.”
Tax Reform ImpactOur net
earnings for both fiscal year-to-date periods include the effects
of the tax reform act signed into law during December 2017. The
fiscal 2019 year-to-date period reflects the lower U.S. federal tax
rate of 21% being fully phased-in, and the first nine months of
fiscal 2018 includes: (i) a benefit of $2.3 million ($0.05 per
diluted share) primarily related to the re-measurement of U.S. net
deferred tax liabilities based on the new federal rate; and (ii) a
charge of $0.9 million ($0.02 per diluted share) for the mandatory
U.S. repatriation transition tax. The effective tax rates for
the third quarter and first nine months of fiscal 2019 were 22%,
and 23%, respectively.
Fiscal 2019 Guidance Including Effects
of the Recently Completed Acquisition of GenePOC Business
For fiscal 2019, we expect our consolidated revenues to be down
approximately 6%, with our Diagnostics segment revenues being down
high-single-digits and our Life Science segment revenues being up
low-single-digits. We expect our adjusted (non-GAAP)
operating margin to be approximately 18% to 19%, and our adjusted
(non-GAAP) earnings per share on a diluted basis to be $0.63 to
$0.65 per share. Adjusted earnings per share on a diluted
basis assumes a tax rate of approximately 23%. Adjusted
(non-GAAP) operating margin and earnings per share on a diluted
basis excludes the effects of costs associated with acquisition
activities, restructuring activities and selected legal
proceedings. See non-GAAP financial measure reconciliation
below.
Financial ConditionThe
Company’s financial condition remains sound. At June 30,
2019, cash and equivalents were $55.2 million and the Company had
$49.2 million of borrowing capacity under its $125.0 million
commercial bank credit facility. The Company’s bank-debt
obligations under the bank credit facility totaled $75.8 million as
of June 30, 2019.
Conference Call InformationJack
Kenny, Chief Executive Officer, and Bryan Baldasare, Interim Chief
Financial Officer and Chief Accounting Officer, will host a
conference call on Tuesday, July 30, 2019 beginning at 10:00 a.m.
Eastern Time to discuss the third quarter financial results and
answer questions.
To participate in the live call by telephone
from the U.S., dial (866) 443-5802, or from outside the U.S., dial
(513) 360-6924, and enter the audience pass code 5392886. A
replay will be available for 14 days beginning at 1:00 p.m.
Eastern Time on July 30, 2019 by dialing (855) 859-2056 or (404)
537-3406 and entering pass code 5392886.
INTERIM UNAUDITED OPERATING
RESULTS(In Thousands, Except per Share Data)
The following table sets forth the unaudited
comparative results of Meridian on a U.S. GAAP basis for the
interim periods of fiscal 2019 and fiscal 2018.
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
48,440 |
|
$ |
51,737 |
|
|
$ |
150,168 |
|
|
$ |
160,471 |
|
|
Cost of sales |
|
20,181 |
|
|
19,775 |
|
|
|
60,999 |
|
|
|
61,930 |
|
|
|
|
Gross profit |
|
28,259 |
|
|
31,962 |
|
|
|
89,169 |
|
|
|
98,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
4,594 |
|
|
4,264 |
|
|
|
12,294 |
|
|
|
13,159 |
|
|
|
Selling and
marketing |
|
6,747 |
|
|
8,502 |
|
|
|
21,221 |
|
|
|
25,963 |
|
|
|
General and
administrative |
|
8,002 |
|
|
8,380 |
|
|
|
24,288 |
|
|
|
26,470 |
|
|
|
Acquisition-related costs |
|
473 |
|
|
- |
|
|
|
1,445 |
|
|
|
- |
|
|
|
Restructuring
costs |
|
1,801 |
|
|
913 |
|
|
|
1,701 |
|
|
|
5,105 |
|
|
|
Litigation
costs |
|
178 |
|
|
1,168 |
|
|
|
1,370 |
|
|
|
3,370 |
|
|
|
|
Total operating expenses |
|
21,795 |
|
|
23,227 |
|
|
|
62,319 |
|
|
|
74,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
6,464 |
|
|
8,735 |
|
|
|
26,850 |
|
|
|
24,474 |
|
|
Other income
(expense), net |
|
14 |
|
|
(115 |
) |
|
|
(649 |
) |
|
|
(972 |
) |
|
|
Earnings before
income taxes |
|
6,478 |
|
|
8,620 |
|
|
|
26,201 |
|
|
|
23,502 |
|
|
|
Income tax
provision |
|
1,399 |
|
|
1,795 |
|
|
|
5,922 |
|
|
|
5,087 |
|
|
|
Net earnings |
$ |
5,079 |
|
$ |
6,825 |
|
|
$ |
20,279 |
|
|
$ |
18,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
basic common share |
$ |
0.12 |
|
$ |
0.16 |
|
|
$ |
0.48 |
|
|
$ |
0.44 |
|
Basic common
shares outstanding |
|
42,639 |
|
|
42,349 |
|
|
|
42,526 |
|
|
|
42,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted common share |
$ |
0.12 |
|
$ |
0.16 |
|
|
$ |
0.47 |
|
|
$ |
0.43 |
|
Diluted common
shares outstanding |
|
42,910 |
|
|
42,758 |
|
|
|
42,907 |
|
|
|
42,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
June 30, |
|
June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Adjusted
Financial Measures |
|
|
|
|
|
|
|
(see non-GAAP
financial measure reconciliation below) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
8,916 |
|
$ |
10,816 |
|
$ |
31,366 |
|
$ |
32,949 |
|
Net earnings |
|
6,960 |
|
|
7,722 |
|
|
23,743 |
|
|
23,126 |
|
Net earnings per
diluted common share |
$ |
0.16 |
|
$ |
0.18 |
|
$ |
0.55 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Balance Sheet Data
|
June 30, |
|
2019 |
|
2018 |
|
Cash and equivalents |
$ |
55,192 |
|
$ |
57,930 |
|
Working capital |
|
117,567 |
|
|
115,778 |
|
Long-term debt |
|
75,824 |
|
|
51,297 |
|
Shareholders’ equity |
|
188,553 |
|
|
175,127 |
|
Total assets |
|
322,436 |
|
|
253,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment DataThe following table sets forth the
unaudited revenue and segment data for the interim periods in
fiscal 2019 and fiscal 2018 (in thousands).
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues - By
Product Platform/Type |
|
|
|
|
|
|
|
|
|
|
|
Diagnostics |
|
|
|
|
|
|
|
|
|
|
|
|
Molecular assays |
$ |
5,937 |
|
$ |
7,509 |
|
$ |
20,371 |
|
$ |
26,200 |
|
Immunoassays & blood chemistry assays |
|
27,181 |
|
|
28,859 |
|
|
82,912 |
|
|
87,440 |
|
Total Diagnostics |
|
33,118 |
|
|
36,368 |
|
|
103,283 |
|
|
113,640 |
Life Science |
|
|
|
|
|
|
|
|
|
|
|
|
Molecular reagents |
|
5,495 |
|
|
6,049 |
|
|
17,495 |
|
|
17,882 |
|
Immunological reagents |
|
9,827 |
|
|
9,320 |
|
|
29,390 |
|
|
28,949 |
|
Total Life Science |
|
15,322 |
|
|
15,369 |
|
|
46,885 |
|
|
46,831 |
|
Total Net Revenues |
$ |
48,440 |
|
$ |
51,737 |
|
$ |
150,168 |
|
$ |
160,471 |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues - By
Disease State/Geography |
|
|
|
|
|
|
|
|
|
|
|
Diagnostics |
|
|
|
|
|
|
|
|
|
|
|
|
Gastrointestinal assays |
$ |
17,232 |
|
|
$ |
20,212 |
|
|
$ |
52,024 |
|
|
$ |
59,631 |
|
|
Respiratory illness assays |
|
5,708 |
|
|
|
5,749 |
|
|
|
21,242 |
|
|
|
22,779 |
|
|
Blood chemistry assays |
|
4,750 |
|
|
|
5,005 |
|
|
|
13,510 |
|
|
|
13,528 |
|
|
Other |
|
5,428 |
|
|
|
5,402 |
|
|
|
16,507 |
|
|
|
17,702 |
|
|
Total Diagnostics |
|
33,118 |
|
|
|
36,368 |
|
|
|
103,283 |
|
|
|
113,640 |
|
Life Science |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
4,369 |
|
|
|
5,500 |
|
|
|
14,347 |
|
|
|
15,875 |
|
|
EMEA |
|
6,389 |
|
|
|
5,756 |
|
|
|
21,608 |
|
|
|
18,307 |
|
|
ROW |
|
4,564 |
|
|
|
4,113 |
|
|
|
10,930 |
|
|
|
12,649 |
|
|
Total Life Science |
|
15,322 |
|
|
|
15,369 |
|
|
|
46,885 |
|
|
|
46,831 |
|
|
Total Net Revenues |
$ |
48,440 |
|
|
$ |
51,737 |
|
|
$ |
150,168 |
|
|
$ |
160,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics |
$ |
5,078 |
|
|
$ |
8,591 |
|
|
$ |
20,455 |
|
|
$ |
25,701 |
|
|
Life Science |
|
4,289 |
|
|
|
3,706 |
|
|
|
14,781 |
|
|
|
10,286 |
|
|
Corporate |
|
(2,926 |
) |
|
|
(3,646 |
) |
|
|
(8,450 |
) |
|
|
(11,744 |
) |
|
Eliminations |
|
23 |
|
|
|
84 |
|
|
|
64 |
|
|
|
231 |
|
|
Total Operating Income |
$ |
6,464 |
|
|
$ |
8,735 |
|
|
$ |
26,850 |
|
|
$ |
24,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic RegionsAmericas = North and Latin AmericaEMEA = Europe,
Middle East and AfricaROW = Rest of World |
|
|
NON-GAAP FINANCIAL MEASURES
In this press release, we have supplemented our
reported GAAP financial information with information on operating
expenses, operating income, net earnings, basic earnings per share
and diluted earnings per share excluding the effects of
acquisition-related costs, restructuring costs, litigation costs,
and certain one-time tax effects of the tax reform act, each of
which is a non-GAAP measure. We have provided in the tables
below reconciliations to the operating expenses, operating income,
net earnings, basic earnings per share and diluted earnings per
share amounts reported under U.S. Generally Accepted Accounting
Principles for the third quarters and nine-month periods ended June
30, 2019 and June 30, 2018.
We believe this information is useful to an
investor in evaluating our performance because:
- These measures help investors to more meaningfully evaluate and
compare the results of operations from period to period by removing
the impacts of these non-routine items; and
- These measures are used by our management for various purposes,
including evaluating performance against incentive bonus
achievement targets, comparing performance from period to period in
presentations to our board of directors, and as a basis for
strategic planning and forecasting.
Revenue reported on a constant-currency basis is
also a non-GAAP measure and is calculated by applying current
period average foreign currency exchange rates to each of the
comparable periods. Management analyzes revenue on a
constant-currency basis to better measure the comparability of
results between periods. Because changes in foreign currency
exchange rates have a non-operating impact on revenue, management
believes that evaluating revenue changes on a constant-currency
basis provides an additional and meaningful assessment of revenue
to both management and investors.
These non-GAAP measures may be different from
non-GAAP measures used by other companies. In addition, the
non-GAAP measures are not based on any comprehensive set of
accounting rules or principles. Non-GAAP measures have
limitations, in that they do not reflect all amounts associated
with our results as determined in accordance with U.S. GAAP.
Therefore, these measures should only be used to evaluate our
results in conjunction with corresponding GAAP measures.
THIRD QUARTER AND NINE MONTH
YEAR-TO-DATEGAAP TO NON-GAAP RECONCILIATION
TABLES(In Thousands, Except per Share Data)
|
|
Three Months |
|
Nine Months |
|
|
Ended June 30, |
|
Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Operating Expenses - |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP basis |
$ |
21,795 |
|
|
$ |
23,227 |
|
|
$ |
62,319 |
|
|
$ |
74,067 |
|
|
Acquisition-related costs |
|
(473 |
) |
|
|
- |
|
|
|
(1,445 |
) |
|
|
- |
|
|
Restructuring costs |
|
(1,801 |
) |
|
|
(913 |
) |
|
|
(1,701 |
) |
|
|
(5,105 |
) |
|
Litigation costs |
|
(178 |
) |
|
|
(1,168 |
) |
|
|
(1,370 |
) |
|
|
(3,370 |
) |
|
Adjusted Operating Expenses |
$ |
19,343 |
|
|
$ |
21,146 |
|
|
$ |
57,803 |
|
|
$ |
65,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
- |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP basis |
$ |
6,464 |
|
|
$ |
8,735 |
|
|
$ |
26,850 |
|
|
$ |
24,474 |
|
|
Acquisition-related costs |
|
473 |
|
|
|
- |
|
|
|
1,445 |
|
|
|
- |
|
|
Restructuring costs |
|
1,801 |
|
|
|
913 |
|
|
|
1,701 |
|
|
|
5,105 |
|
|
Litigation costs |
|
178 |
|
|
|
1,168 |
|
|
|
1,370 |
|
|
|
3,370 |
|
|
Adjusted Operating Income |
$ |
8,916 |
|
|
$ |
10,816 |
|
|
$ |
31,366 |
|
|
$ |
32,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
- |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP basis |
$ |
5,079 |
|
|
$ |
6,825 |
|
|
$ |
20,279 |
|
|
$ |
18,415 |
|
|
Acquisition-related costs * |
|
363 |
|
|
|
- |
|
|
|
1,108 |
|
|
|
- |
|
|
Restructuring costs * |
|
1,381 |
|
|
|
685 |
|
|
|
1,305 |
|
|
|
3,737 |
|
|
Litigation costs * |
|
137 |
|
|
|
864 |
|
|
|
1,051 |
|
|
|
2,467 |
|
|
One-time benefit from tax law change |
|
- |
|
|
|
(652 |
) |
|
|
- |
|
|
|
(2,347 |
) |
|
Repatriation transition tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
854 |
|
|
Adjusted Earnings |
$ |
6,960 |
|
|
$ |
7,722 |
|
|
$ |
23,743 |
|
|
$ |
23,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net of tax. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Nine Months |
|
|
Ended June 30, |
|
Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net Earnings per
Basic Common Share - |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP basis |
$ |
0.12 |
|
$ |
0.16 |
|
|
$ |
0.48 |
|
$ |
0.44 |
|
|
Acquisition-related costs |
|
0.01 |
|
|
- |
|
|
|
0.03 |
|
|
- |
|
|
Restructuring costs |
|
0.03 |
|
|
0.02 |
|
|
|
0.03 |
|
|
0.09 |
|
|
Litigation costs |
|
- |
|
|
0.02 |
|
|
|
0.02 |
|
|
0.06 |
|
|
One-time benefit from tax law change |
|
- |
|
|
(0.02 |
) |
|
|
- |
|
|
(0.06 |
) |
|
Repatriation transition tax |
|
- |
|
|
- |
|
|
|
- |
|
|
0.02 |
|
|
Adjusted Basic EPS |
$ |
0.16 |
|
$ |
0.18 |
|
|
$ |
0.56 |
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings per
Diluted Common Share - |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP basis |
$ |
0.12 |
|
$ |
0.16 |
|
|
$ |
0.47 |
|
$ |
0.43 |
|
|
Acquisition-related costs |
|
0.01 |
|
|
- |
|
|
|
0.03 |
|
|
- |
|
|
Restructuring costs |
|
0.03 |
|
|
0.02 |
|
|
|
0.03 |
|
|
0.09 |
|
|
Litigation costs |
|
- |
|
|
0.02 |
|
|
|
0.02 |
|
|
0.06 |
|
|
One-time benefit from tax law change |
|
- |
|
|
(0.02 |
) |
|
|
- |
|
|
(0.05 |
) |
|
Repatriation transition tax |
|
- |
|
|
- |
|
|
|
- |
|
|
0.02 |
|
|
Adjusted Diluted EPS ** |
$ |
0.16 |
|
$ |
0.18 |
|
|
$ |
0.55 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Diluted EPS for Nine Months Ended June 30, 2018
does not sum to total due to rounding. |
|
|
|
|
FORWARD-LOOKING STATEMENTSThe Private Securities
Litigation Reform Act of 1995 provides a safe harbor from civil
litigation for forward-looking statements accompanied by meaningful
cautionary statements. Except for historical information, this
report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, which may
be identified by words such as “continues”, “estimates”,
“anticipates”, “projects”, “plans”, “seeks”, “may”, “will”,
“expects”, “intends”, “believes”, “signals”, “should” and similar
expressions or the negative versions thereof and which also may be
identified by their context. All statements that address operating
performance or events or developments that Meridian expects or
anticipates will occur in the future, including, but not limited
to, statements relating to per share diluted earnings and revenue,
are forward-looking statements. Such statements, whether expressed
or implied, are based upon current expectations of the Company and
speak only as of the date made. Specifically, Meridian’s
forward-looking statements are, and will be, based on management’s
then-current views and assumptions regarding future events and
operating performance. Meridian assumes no obligation to publicly
update or revise any forward-looking statements even if experience
or future changes make it clear that any projected results
expressed or implied therein will not be realized. These statements
are subject to various risks, uncertainties and other factors that
could cause actual results to differ materially, including, without
limitation, the following:
Meridian’s operating results, financial
condition and continued growth depends, in part, on its ability to
introduce into the marketplace enhancements of existing products or
new products that incorporate technological advances, meet customer
requirements and respond to products developed by Meridian’s
competition, its ability to effectively sell such products and its
ability to successfully expand and effectively manage increased
sales and marketing operations. While Meridian has introduced a
number of internally developed products and acquired products,
there can be no assurance that it will be successful in the future
in introducing such products on a timely basis or in protecting its
intellectual property, and unexpected or costly manufacturing costs
associated with its introduction of new products or acquired
products could cause actual results to differ from expectations.
Meridian relies on proprietary, patented and licensed technologies.
As such, the Company’s ability to protect its intellectual property
rights, as well as the potential for intellectual property
litigation, would impact its results. Ongoing consolidations of
reference laboratories and formation of multi-hospital alliances
may cause adverse changes to pricing and distribution. Recessionary
pressures on the economy and the markets in which our customers
operate, as well as adverse trends in buying patterns from
customers, can change expected results. Costs and difficulties in
complying with laws and regulations, including those administered
by the United States Food and Drug Administration, can result in
unanticipated expenses and delays and interruptions to the sale of
new and existing products, as can the uncertainty of regulatory
approvals and the regulatory process (including the currently
ongoing study and other FDA actions regarding the Company’s
LeadCare products). The international scope of Meridian’s
operations, including changes in the relative strength or weakness
of the U.S. dollar and general economic conditions in foreign
countries, can impact results and make them difficult to predict.
One of Meridian’s growth strategies is the acquisition of companies
and product lines. There can be no assurance that additional
acquisitions will be consummated or that, if consummated, will be
successful and the acquired businesses will be successfully
integrated into Meridian’s operations. There may be risks that
acquisitions may disrupt operations and may pose potential
difficulties in employee retention, and there may be additional
risks with respect to Meridian’s ability to recognize the benefits
of acquisitions, including potential synergies and cost savings or
the failure of acquisitions to achieve their plans and objectives.
Meridian cannot predict the outcome of goodwill impairment testing
and the impact of possible goodwill impairments on Meridian’s
earnings and financial results. Meridian cannot predict the
possible impact of U.S. health care legislation enacted in 2010 –
the Patient Protection and Affordable Care Act, as amended by the
Health Care and Education Reconciliation Act – and any modification
or repeal of any of the provisions thereof initiated by Congress or
the presidential administration, and any similar initiatives in
other countries on its results of operations. Efforts to reduce the
U.S. federal deficit, breaches of Meridian’s information technology
systems, trade wars, increased tariffs, and natural disasters and
other events could have a materially adverse effect on Meridian’s
results of operations and revenues. In the past, the Company has
identified a material weakness in our internal control over
financial reporting, which has been remediated, but the Company can
make no assurances that a material weakness will not be identified
in the future, which if identified and not properly corrected,
could materially adversely affect our operations and result in
material misstatements in our financial statements. In addition to
the factors described in this paragraph, as well as those factors
identified from time to time in our filings with the Securities and
Exchange Commission, Part I, Item 1A Risk Factors of our most
recent Annual Report on Form 10-K contains a list and description
of uncertainties, risks and other matters that may affect the
Company. Readers should carefully review these forward-looking
statements and risk factors, and not place undue reliance on our
forward-looking statements.
About Meridian Bioscience,
Inc.Meridian is a fully integrated life science company
that develops, manufactures, markets and distributes a broad range
of innovative diagnostic products. We are dedicated to developing
and delivering better solutions that give answers with speed,
accuracy and simplicity that are redefining the possibilities of
life from discovery to diagnosis. Through discovery and
development, we provide critical life science raw materials used in
immunological and molecular tests for human, animal, plant, and
environmental applications. Through diagnosis, we provide
diagnostic solutions in areas including gastrointestinal and upper
respiratory infections and blood lead level testing. We build
relationships and provide solutions to hospitals, reference
laboratories, research centers, veterinary testing centers,
physician offices, diagnostics manufacturers, and biotech companies
in more than 70 countries around the world.
Meridian’s shares are traded on the NASDAQ
Global Select Market, symbol VIVO. Meridian’s website address is
www.meridianbioscience.com.
Contact: Jack KennyChief Executive
OfficerMeridian Bioscience,
Inc.
Phone:
513.271.3700Email: mbi@meridianbioscience.com
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