Meridian Bioscience, Inc. (NASDAQ: VIVO) today announced financial
results for the second quarter and first six months ended March 31,
2019.
Second Quarter 2019 Highlights:
- Total revenue decreased 11% to $50.2 million, as compared to
$56.5 million in the second quarter of fiscal 2018 (10% decrease in
constant-currency)
- Diagnostics segment revenues decreased 16% to $33.5 million
(15% decrease in constant-currency)
- Life Science segment revenues were flat at $16.7 million (2%
growth in constant-currency)
- Reported operating income of $9.8 million (including $1.4
million of costs associated with acquisition activities,
restructuring activities and litigation), as compared to $7.7
million in the second quarter of fiscal 2018, which included $4.9
million of costs associated with restructuring activities and
litigation
- Reported EPS of $0.17 per diluted share and Adjusted EPS of
$0.19 per diluted share (see non-GAAP financial measure
reconciliation below)
- Quarterly cash dividend suspended in connection with the
announcement of the Company’s agreement to acquire the business of
GenePOC Inc. and decision to allocate capital to related and other
growth initiatives
Year-to-Date Fiscal 2019 Highlights:
- Total revenue decreased 6% to $101.7 million, as compared to
$108.7 million in same period of fiscal 2018 (also a 6% decrease in
constant-currency)
- Diagnostics segment revenues decreased 9% to $70.2 million
(also a 9% decrease in constant-currency)
- Life Science segment revenues were flat at $31.6 million (2%
growth in constant-currency)
- Reported operating income of $20.4 million (including $2.1
million of costs associated with acquisition activities,
restructuring activities and litigation), as compared to $15.7
million in the fiscal 2018 year-to-date period, which included $6.4
million of costs associated with restructuring activities and
litigation
- Reported EPS of $0.35 per diluted share and Adjusted EPS of
$0.39 per diluted share (see non-GAAP financial measure
reconciliation below)
Second Quarter 2019 Results
Total revenue for the second quarter of fiscal 2019 decreased 11%
to $50.2 million, compared to $56.5 million in the second quarter
of 2018. This decrease was driven by a 16% decrease in
Diagnostics business unit revenues from $39.8 million to $33.5
million, as a result of continued competitive pressures in a number
of our molecular products, particularly C. difficile, weaker
respiratory product demand, and volume and pricing declines in
certain gastrointestinal products. Life Science business unit
revenues were relatively flat at $16.7 million (a 2% increase on a
constant-currency basis compared to the second quarter of 2018), as
growth in both Americas and EMEA was largely offset by soft
customer order activity in China.
Reported operating income for the second quarter
of fiscal 2019 increased $2.2 million to $9.8 million from the
second quarter of fiscal 2018. This increase resulted from a
$7.4 million decrease in operating expenses including a $3.5
million decrease in acquisition, restructuring and litigation
costs, more than offsetting the lower amount of gross profit from
decreased revenues. Excluding the effects of the acquisition,
restructuring and litigation costs in each period, operating income
decreased 11% to $11.2 million. R&D spending was down in
the quarter compared to second quarter of fiscal 2018, due to the
timing of certain product development project expenses including
clinical trial expenses incurred in the fiscal 2018 second quarter
for the cCMV test, which launched this quarter. Sales and
marketing expenses in the quarter were down due to fiscal 2018
organization streamlining initiatives, as well as lower sales
commissions as a result of lower revenues. General and
administrative expenses were down in the quarter, also due largely
to the effects of organizational streamlining initiatives
implemented in fiscal 2018, but also due to lower FDA Quality
System remediation costs for the Billerica manufacturing facility
and lower incentive compensation costs. Fiscal 2019 second
quarter operating income in Diagnostics decreased 29%, due entirely
to the decrease in revenues, as spending was down
significantly. Operating income for the second quarter of
fiscal 2019 was up 47% in Life Science, driven by the continued
benefit of fiscal 2018 restructuring activities, including a
lower-cost commercial organization.
Net earnings for the second quarter of fiscal
2019 totaled $7.1 million, or $0.17 per diluted share, as compared
to $5.3 million, or $0.12 per diluted share, for the second quarter
of fiscal 2018. On an adjusted basis (non-GAAP), earnings
were $8.2 million, or $0.19 per diluted share, as compared to $8.9
million, or $0.21 per diluted share, for the second quarter of
fiscal 2018, decreases of 8% and 10%, respectively. Adjusted
basis excludes the effect of acquisition transaction and litigation
costs in the fiscal 2019 quarter and restructuring and litigation
costs in the fiscal 2018 quarter.
Jack Kenny, Chief Executive Officer, commented,
“While I am disappointed in our results for the second quarter for
both our Diagnostics and Life Science business units, I am excited
about the shift that our pending acquisition of GenePOC represents
for Meridian. The addition upon closing of GenePOC and its
revogene™ molecular diagnostics platform is a critical step in our
strategy to invest in new products and technologies. We believe
thistransaction and other initiatives are necessary to stabilize
our Diagnostics business and re-position the Company for
sustainable, long-term growth. The suspension of our
quarterly cash dividend represents a change in our capital
allocation philosophy to support this strategy and increase
re-investment in the business. We recognize the near-term trends
and competitive pressures in our business and we have recently
reorganized our Diagnostics commercial organization as an
additional step to help address these pressures. For our Life
Science business unit, we are expecting customer order activity in
China to improve over the back half of the year, but not to
previously expected levels. Good growth performance this
quarter in the Americas and EMEA, however, are evidence that the
Life Science business is well-positioned, despite the recent
unforeseen weakness in China.”
Fiscal 2019 First Half
ResultsTotal revenue for the first half of fiscal 2019
totaled $101.7 million, a 6% decrease from the $108.7 million
achieved in fiscal 2018. This decrease reflects a decline of
9% (also 9% on a constant-currency basis) to $70.2 million in
Diagnostics, driven largely by competitive pressures in molecular
assays, particularly C. difficile, volume and pricing declines in
gastrointestinal products, and volume declines in respiratory
assays. Revenues in the Life Science business unit were
relatively flat (up 2% on a constant-currency basis), reflecting
softness in customer order activity in China.
During the first half of fiscal 2019, operating
income totaled $20.4 million, an increase of 30% or $4.6
million. This increase primarily resulted from lower expenses
for restructuring and litigation activities. Excluding the
effects of the acquisition, restructuring and litigation costs in
each period, operating income increased 1% to $22.5 million
compared to the first half of fiscal 2018, despite the decline in
revenues. Operating expenses were broadly lower in all
categories across both business units, which favorably affected
operating income, despite the revenue decline in Diagnostics.
Net earnings totaled $15.2 million, or $0.35 per
diluted share, for the first half of fiscal 2019, as compared to
$11.6 million, or $0.27 per diluted share, for the same period in
fiscal 2018. On an adjusted basis, earnings were $16.8
million, or $0.39 per diluted share, increases of 9% and 8%,
respectively, over fiscal 2018’s adjusted earnings of $15.4
million, or $0.36 per diluted share. Adjusted earnings
exclude the effect of acquisition transaction and litigation costs
in the first half of fiscal 2019, and restructuring and litigation
costs, and certain one-time tax effects of the tax reform act, in
the same period in fiscal 2018 period (see non-GAAP financial
measure reconciliation below).
Tax Reform Impact
Our 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 six months of fiscal 2018 includes: (i) a benefit of $1.7
million ($0.04 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 rate for both the second quarter and
first six months of fiscal 2019 was 23%.
Cash Dividend Matters
As part of the Company’s regular evaluation of
its capital allocation, upon evaluation of earnings, cash flow
requirements and future business developments, including the
pending acquisition of the business of GenePOC Inc., and other
factors deemed relevant, the Board of Directors, at its discretion,
suspended the Company’s quarterly cash dividend effective
immediately. This action was taken in order to deploy cash
into new product development activities for the revogene™ molecular
diagnostics platform among other investments and to preserve
capital resources and liquidity for general corporate
purposes.
Fiscal 2019 Guidance Including Effects
of the Pending Acquisition The Company provided revised
guidance for full year fiscal 2019 in its press release dated April
2, 2019. Excluding amortization expense, the Company expects
the transaction to add approximately $4 million - $5 million in
operating expenses in fiscal 2019. The Company currently
estimates that the transaction will be dilutive to full year fiscal
2019 EPS by approximately $0.10 to $0.12 per share, based on
current purchase accounting estimates.
Financial ConditionThe
Company’s financial condition remains sound. At March 31,
2019, cash and equivalents were $66.1 million and the Company had
100% borrowing capacity under its $30.0 million commercial bank
credit facility. The Company’s bank-debt obligations totaled
$47.9 million as of March 31, 2019.
In connection with the pending acquisition of
GenePOC, the Company also expects to execute a new five-year $125
million revolving credit facility that would replace its existing
$30 million credit facility. The new credit facility is
expected to be secured by substantially all of the Company’s assets
and include certain restrictive financial covenants. The
Company expects to use this new facility and cash on-hand to repay
the existing term loan outstanding at March 31, 2019 and fund the
closing payment for the acquisition of GenePOC.
Conference Call InformationJack
Kenny, Chief Executive Officer, and Eric Rasmussen, Chief Financial
Officer, will host a conference call on Tuesday, April 30, 2019
beginning at 10:00 a.m. Eastern Time to discuss the second 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 3893028. A
replay will be available for 14 days beginning at 1:00p.m. Eastern
Time on April 30, 2019 by dialing (855) 859-2056 or (404) 537-3406
and entering pass code 3893028.
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 |
|
Six Months Ended |
|
March 31, |
|
March 31, |
|
2019 |
|
2018 |
|
2019 |
2018 |
Net revenues |
$ |
50,248 |
|
|
$ |
56,451 |
|
|
$ |
101,728 |
|
$ |
108,734 |
|
Cost of sales |
|
20,910 |
|
|
|
21,882 |
|
|
|
40,818 |
|
|
42,155 |
|
Gross
profit |
|
29,338 |
|
|
|
34,569 |
|
|
|
60,910 |
|
|
66,579 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
3,816 |
|
|
|
4,491 |
|
|
|
7,700 |
|
|
8,895 |
|
Selling
and marketing |
|
6,911 |
|
|
|
8,647 |
|
|
|
14,474 |
|
|
17,461 |
|
General
and administrative |
|
7,388 |
|
|
|
8,842 |
|
|
|
16,286 |
|
|
18,090 |
|
Acquisition and restructuring costs |
|
785 |
|
|
|
3,458 |
|
|
|
872 |
|
|
4,192 |
|
Litigation costs |
|
603 |
|
|
|
1,453 |
|
|
|
1,192 |
|
|
2,202 |
|
Total
operating expenses |
|
19,503 |
|
|
|
26,891 |
|
|
|
40,524 |
|
|
50,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
9,835 |
|
|
|
7,678 |
|
|
|
20,386 |
|
|
15,739 |
|
Other expense, net |
|
(588 |
) |
|
|
(454 |
) |
|
|
(663 |
) |
|
(857 |
) |
Earnings
before income taxes |
|
9,247 |
|
|
|
7,224 |
|
|
|
19,723 |
|
|
14,882 |
|
Income
tax provision |
|
2,153 |
|
|
|
1,936 |
|
|
|
4,523 |
|
|
3,292 |
|
Net
earnings |
$ |
7,094 |
|
|
$ |
5,288 |
|
|
$ |
15,200 |
|
$ |
11,590 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per basic
common share |
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.36 |
|
$ |
0.27 |
|
Basic common shares
outstanding |
|
42,496 |
|
|
|
42,323 |
|
|
|
42,472 |
|
|
42,289 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted common share |
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.35 |
|
$ |
0.27 |
|
Diluted common shares
outstanding |
|
42,946 |
|
|
|
42,732 |
|
|
|
42,925 |
|
|
42,693 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Financial Measures |
|
|
|
|
|
|
|
|
|
|
(see non-GAAP financial
measure reconciliation below) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
11,223 |
|
|
$ |
12,589 |
|
|
$ |
22,450 |
|
$ |
22,133 |
|
Net
earnings |
|
8,159 |
|
|
|
8,863 |
|
|
|
16,783 |
|
|
15,404 |
|
Net
earnings per diluted common share |
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
0.39 |
|
$ |
0.36 |
|
Condensed Balance Sheet Data
|
|
March 31, |
|
|
2019 |
|
|
2018 |
Cash and equivalents |
$ |
66,097 |
|
$ |
56,400 |
Working capital |
|
120,583 |
|
|
113,691 |
Long-term debt |
|
47,946 |
|
|
52,414 |
Shareholders’ equity |
|
181,645 |
|
|
174,336 |
Total assets |
|
253,964 |
|
|
254,547 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net Revenues -
By Product Platform/Type |
|
|
|
|
|
|
|
|
|
|
|
Diagnostics |
|
|
|
|
|
|
|
|
|
|
|
|
Molecular assays |
$ |
7,132 |
|
$ |
9,976 |
|
$ |
14,434 |
|
$ |
18,692 |
|
Immunoassays & blood
chemistry assays |
|
26,368 |
|
|
29,806 |
|
|
55,731 |
|
|
58,580 |
|
Total
Diagnostics |
|
33,500 |
|
|
39,782 |
|
|
70,165 |
|
|
77,272 |
Life
Science |
|
|
|
|
|
|
|
|
|
|
|
|
Molecular reagents |
|
5,390 |
|
|
6,143 |
|
|
11,998 |
|
|
11,832 |
|
Immunological
reagents |
|
11,358 |
|
|
10,526 |
|
|
19,565 |
|
|
19,630 |
|
Total Life
Science |
|
16,748 |
|
|
16,669 |
|
|
31,563 |
|
|
31,462 |
|
Total Net
Revenues |
$ |
50,248 |
|
$ |
56,451 |
|
$ |
101,728 |
|
$ |
108,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues -
By Disease State/Geography |
|
|
|
|
|
|
|
|
|
|
|
Diagnostics |
|
|
|
|
|
|
|
|
|
|
|
|
Gastrointestinal
assays |
$ |
16,177 |
|
$ |
19,149 |
|
$ |
34,792 |
|
$ |
39,419 |
|
Respiratory illness
assays |
|
7,553 |
|
|
9,543 |
|
|
15,534 |
|
|
17,029 |
|
Blood chemistry
assays |
|
4,330 |
|
|
4,257 |
|
|
8,760 |
|
|
8,523 |
|
Other |
|
5,440 |
|
|
6,833 |
|
|
11,079 |
|
|
12,301 |
|
Total
Diagnostics |
|
33,500 |
|
|
39,782 |
|
|
70,165 |
|
|
77,272 |
Life
Science |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
5,453 |
|
|
5,121 |
|
|
9,975 |
|
|
10,373 |
|
EMEA |
|
7,901 |
|
|
7,478 |
|
|
15,376 |
|
|
12,659 |
|
ROW |
|
3,394 |
|
|
4,070 |
|
|
6,212 |
|
|
8,430 |
|
Total Life
Science |
|
16,748 |
|
|
16,669 |
|
|
31,563 |
|
|
31,462 |
|
Total Net
Revenues |
$ |
50,248 |
|
$ |
56,451 |
|
$ |
101,728 |
|
$ |
108,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic
RegionsAmericas = North and Latin AmericaEMEA = Europe, Middle East
and AfricaROW = Rest of World |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics |
|
|
$ |
7,561 |
|
|
$ |
10,684 |
|
|
$ |
16,346 |
|
|
$ |
19,310 |
|
Life
Science |
|
|
|
5,361 |
|
|
|
3,638 |
|
|
|
10,492 |
|
|
|
6,580 |
|
Corporate |
|
|
|
(3,101 |
) |
|
|
(6,723 |
) |
|
|
(6,493 |
) |
|
|
(10,334 |
) |
Eliminations |
|
|
|
14 |
|
|
|
79 |
|
|
|
41 |
|
|
|
183 |
|
Total
Operating Income |
|
|
$ |
9,835 |
|
|
$ |
7,678 |
|
|
$ |
20,386 |
|
|
$ |
15,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURESIn
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
transaction 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 second quarters and six month periods ended
March 31, 2019 and March 31, 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.
SECOND QUARTER AND SIX MONTH
YEAR-TO-DATEGAAP TO NON-GAAP RECONCILATION
TABLES(In Thousands, Except per Share Data)
|
|
|
Three Months |
|
Six Months |
|
|
|
|
Ended March 31, |
|
Ended March 31, |
|
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Operating
Expenses - |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
basis |
$ |
19,503 |
|
|
$ |
26,891 |
|
|
$ |
40,524 |
|
|
$ |
50,840 |
|
|
|
Acquisition
and restructuring costs |
|
(785 |
) |
|
|
(3,458 |
) |
|
|
(872 |
) |
|
|
(4,192 |
) |
|
|
Litigation
costs |
|
(603 |
) |
|
|
(1,453 |
) |
|
|
(1,192 |
) |
|
|
(2,202 |
) |
|
|
Adjusted Operating Expenses |
$ |
18,115 |
|
|
$ |
21,980 |
|
|
$ |
38,460 |
|
|
$ |
44,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
basis |
$ |
9,835 |
|
|
$ |
7,678 |
|
|
$ |
20,386 |
|
|
$ |
15,739 |
|
|
|
Acquisition
and restructuring costs |
|
785 |
|
|
|
3,458 |
|
|
|
872 |
|
|
|
4,192 |
|
|
|
Litigation
costs |
|
603 |
|
|
|
1,453 |
|
|
|
1,192 |
|
|
|
2,202 |
|
|
|
Adjusted Operating Income |
$ |
11,223 |
|
|
$ |
12,589 |
|
|
$ |
22,450 |
|
|
$ |
22,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings - |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
basis |
$ |
7,094 |
|
|
$ |
5,288 |
|
|
$ |
15,200 |
|
|
$ |
11,590 |
|
|
|
Acquisition
and restructuring costs * |
|
602 |
|
|
|
2,517 |
|
|
|
669 |
|
|
|
3,052 |
|
|
|
Litigation
costs* |
|
463 |
|
|
|
1,058 |
|
|
|
914 |
|
|
|
1,603 |
|
|
|
One-time
benefit from tax law change |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,695 |
) |
|
|
Repatriation transition tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
854 |
|
|
|
Adjusted Earnings |
$ |
8,159 |
|
|
$ |
8,863 |
|
|
$ |
16,783 |
|
|
$ |
15,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Earnings per Basic Common Share - |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
basis |
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
|
Acquisition
and restructuring costs |
|
0.01 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
|
Litigation
costs |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
One-time
benefit from tax law change |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.04 |
) |
|
|
Repatriation transition tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
Adjusted Basic EPS |
$ |
0.19 |
|
|
$ |
0.21 |
|
** |
$ |
0.40 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
|
|
Ended March 31, |
|
Ended March 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net
Earnings per Diluted Common Share - |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
basis |
$ |
0.17 |
|
$ |
0.12 |
|
$ |
0.35 |
|
$ |
0.27 |
|
|
Acquisition
and restructuring costs |
|
0.01 |
|
|
0.06 |
|
|
0.02 |
|
|
0.07 |
|
|
Litigation
costs |
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
|
One-time
benefit from tax law change |
|
- |
|
|
- |
|
|
- |
|
|
(0.04 |
) |
|
Repatriation transition tax |
|
- |
|
|
- |
|
|
- |
|
|
0.02 |
|
|
Adjusted Diluted EPS |
$ |
0.19 |
|
$ |
0.21 |
** |
$ |
0.39 |
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Net of
tax. |
|
**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”, “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 if 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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