MINNEAPOLIS, Aug. 4, 2022 /PRNewswire/ --
Bio-Techne Corporation (NASDAQ: TECH) today reported its financial
results for the fourth quarter ended June
30, 2022.
Fourth Quarter FY2022 Highlights
- Fourth quarter organic revenue increased by 14% (11% reported)
to $288.2 million. Full year organic
growth of 17% (19% reported) to $1.1
billion.
- GAAP EPS was $1.51 versus
$0.37 one year ago. Delivered
adjusted earnings per share (EPS) of $2.05, an increase of 9% from the prior year.
Full year GAAP EPS was $6.63 vs
$3.47 a year ago. Achieved record
full year adjusted EPS of $7.89, an
increase of 17% from the prior year.
- Sustained operational excellence across the organization,
including Protein Sciences which achieved 16% organic growth (13%
reported) in the fourth fiscal quarter and 19% organic growth (18%
reported) for the full year.
- Fourth quarter adjusted operating income was $106.6 million ($80.6
million reported), an increase of 6% (17% reported)
from the prior year, despite foreign currency exchange negatively
impacting operating income by 6%. Adjusted operating income for
full year 2022 was $421.3 million
($296.6 million reported), an
increase of 16% (25% reported) from the prior year.
- Expanded Bio-Techne's proteomic analytical tools portfolio
through the acquisition of leading cell sorting company Namocell,
which closed on July 1, 2022.
The Company's financial statements are prepared in accordance
with accounting principles generally accepted in the United States (GAAP). Adjusted diluted
EPS, adjusted earnings, adjusted gross margin, adjusted operating
income, adjusted tax rate, organic growth, and adjusted operating
margin are non-GAAP measures that exclude certain items detailed
later in this press release under the heading "Use of non-GAAP
Adjusted Financial Measures." A reconciliation of GAAP to non-GAAP
financial measures is included in this press release.
"We had a tremendous finish to a spectacular fiscal 2022, as the
Bio-Techne team delivered 14% organic growth for the fourth quarter
and 17% organic growth for the year. This growth enabled us
to cross the $1 billion in fiscal
year revenue for the first time in our corporate history," said
Chuck Kummeth, President and CEO of
Bio-Techne. "I am particularly pleased with this performance given
the prolonged headwinds we faced in China, as lockdowns in this geography lasted
longer than we initially expected. We experienced robust
demand across our portfolio of proteomic reagents and analytical
tools, especially from our biopharma end markets, as well as
accelerating momentum in our ExosomeDx business and a return to
double-digit growth in our Spatial Biology business."
Kummeth added, "We recently strengthened our proteomic
analytical tools portfolio with the acquisition of Namocell, a
leading provider of cell sorting and dispensing instruments and
consumables, adding to our portfolio of solutions for Cell and Gene
Therapy workflows. In the quarter, we continued to scale our
GMP protein manufacturing facility, commercializing two additional
GMP proteins at scale to address current and forecasted demand.
Overall, our portfolio of Cell and Gene Therapy workflow solutions
had a stellar year, including greater than 50% organic growth.
Separately, our ExoDx Prostate test continued its momentum from the
prior quarter, as test volume set another record, increasing almost
70% in the quarter."
Kummeth continued, "Fiscal 2022 was an incredible year for
Bio-Techne. We strengthened our team across the organization,
announced another acquisition and continued to advance our leading
portfolio of diagnostic solutions, proteomic reagents and
analytical tools to advance science and enable discoveries. We are
positioned to successfully navigate the current environment and
continue our momentum into fiscal 2023 and beyond."
Fourth Quarter Fiscal 2022
Revenue
Net sales for the fourth quarter increased 11% to $288.2 million. Organic growth was 14% compared
to the prior year with foreign currency exchange having an
unfavorable impact of 3%.
GAAP Earnings Results
GAAP EPS was $1.51 per diluted
share, versus $0.37 in the same
quarter last year. GAAP EPS was negatively impacted in the prior
year by a non-operating mark-to-market loss on our ChemoCentryx
investment. GAAP operating income for the fourth quarter of
fiscal 2022 increased 17% to $80.6 million, compared to $68.6 million in the fourth quarter of fiscal
2021. GAAP operating margin was 28.0%, compared to 26.5% in the
fourth quarter of fiscal 2021. GAAP operating margin compared to
prior year was positively impacted by volume leverage, which was
partially offset by unfavorable foreign currency exchange
impacts.
Non-GAAP Earnings Results
Adjusted EPS increased to $2.05
per diluted share, versus $1.88 in
the same quarter last year, an increase of 9%. Adjusted EPS
increased primarily due to revenue growth. Adjusted operating
income for the fourth quarter of fiscal 2022 increased 6% compared
to the fourth quarter of fiscal 2021. Adjusted operating margin was
37.4%, compared to 38.8% in the fourth quarter of fiscal 2021.
Adjusted operating margin decreased compared to the prior year due
to the impact of unfavorable foreign currency exchange.
Full Year Fiscal 2022
Revenue
Net sales for the full year fiscal 2022 increased 19% to
$1,105.6 million. Organic growth was
17%, with acquisitions having a favorable impact of 3% and foreign
currency translation having an unfavorable impact of 1%. Organic
revenue growth was broad based and driven by accelerated momentum
of the Company's long-term growth strategy.
GAAP Earnings Results
GAAP EPS was $6.63 per diluted
share compared to $3.47 per diluted
share last fiscal year. GAAP EPS was favorably impacted by a
non-operating mark-to-market gain of $16
million on our ChemoCentryx investment, compared to a loss
on investment of $68 million in the
prior fiscal year. GAAP operating income for full year fiscal 2022
increased 25.0% to $296.6 million,
compared with $237.3 million in the
full year fiscal 2021. GAAP operating margin was 26.8%, compared to
25.5% in the full year fiscal 2021. GAAP operating income and
operating margin compared to prior year was positively impacted by
both volume leverage and product mix.
Non-GAAP Earnings Results
Adjusted EPS was $7.89 per diluted
shares, versus $6.76 in full fiscal
year 2021. Adjusted operating margin for full fiscal year 2022
decreased to 38.3%, compared with 39.1% in full year fiscal 2021.
Adjusted operating margin compared to the prior year was
unfavorably impacted by foreign currency exchange, the full year
impact of prior year's Asuragen acquisition, and strategic
investments.
Segment Results
Management uses adjusted operating results to monitor and
evaluate performance of the Company's business segments, as
highlighted below.
Protein Sciences Segment
The Company's Protein Sciences segment is one of the world's
leading suppliers of specialized proteins such as cytokines and
growth factors, immunoassays, antibodies and reagents, to the
biotechnology and academic research communities. Additionally, the
segment provides an array of platforms useful in various areas of
protein analysis. Protein Sciences segment's fourth quarter fiscal
2022 net sales were $217.0 million, an increase of 13% from
$192.3 million for the fourth quarter
of fiscal 2021. Organic growth for the segment was 16%, with
foreign currency exchange having an unfavorable impact of 3%.
Protein Sciences segment's operating margin was 44.9% in the fourth
quarter of fiscal 2022 compared to 47.0% in the fourth quarter of
fiscal 2021. The segment's operating margin compared to the prior
year was negatively impacted by foreign currency exchange.
Protein Sciences segment's full year fiscal 2022 net sales were
$832.3 million, an increase of 18%
from $704.6 million for fiscal 2021.
Organic growth for the segment was 19% for the fiscal year, with
currency translation having an unfavorable 1% impact on revenue.
Protein Sciences segment's operating margin was 45.4% in fiscal
2022 compared to 46.9% in fiscal 2021. Segment operating margin
compared to the prior year was unfavorably impacted by foreign
currency exchange and strategic investments.
Diagnostics and Genomics Segment
The Company's Diagnostics and Genomics segment provides blood
chemistry and blood gas quality controls, hematology instrument
controls, immunoassays and other bulk and custom reagents for the
in vitro diagnostic market. The Diagnostics and Genomics segment
also develops and provides in situ hybridization products as
well as exosome-based diagnostics for various pathologies,
including prostate cancer. The Diagnostics and Genomics segment's
fourth quarter fiscal 2022 net sales were $71.7 million, an increase of 7% from
$67.1 million for the fourth quarter
of fiscal 2021. Organic growth for the segment was 8%, with foreign
currency exchange having an unfavorable 1% impact. The Diagnostics
and Genomics segment's operating margin was 15.7% in the fourth
quarter of fiscal 2022 compared to 16.7% in the fourth quarter of
fiscal 2021. The segment's operating margin was negatively impacted
by foreign currency exchange and strategic investments.
The Diagnostics segment's full year fiscal 2022 net sales were
$274.8 million, an increase of 21%
from $227.7 million for fiscal 2021.
Organic growth for the segment was 10% with acquisitions
contributing a favorable impact of 11% and currency translation
having an immaterial impact on revenue growth. The Diagnostics
segment's operating margin was 17.8% in fiscal 2022 compared to
16.9% in fiscal 2021. Fiscal 2022 operating margin was favorably
impacted by volume leverage and product mix.
Conference Call
Bio-Techne will host an earnings conference call today,
August 4, 2022 at 8:00 a.m. CDT. To listen, please dial
1-800-926-5187 or 1-312-281-2972 for international callers, and
reference conference ID 22019664. The earnings call can also be
accessed via webcast through the following link
https://investors.bio-techne.com/ir-calendar.
A recorded rebroadcast will be available for interested parties
unable to participate in the live conference call by dialing
1-844-512- 2921 or 1-412-317-6671 (for international callers) and
referencing Conference ID 22019664. The replay will be available
from 11:00 a.m. CDT on Thursday,
August 4, 2022 until 11:00 p.m. CDT on Sunday, September 4, 2022.
Use of non-GAAP Adjusted Financial Measures:
This press release contains financial measures that have not
been calculated in accordance with accounting principles generally
accepted in the U.S. (GAAP). These non-GAAP measures include:
- Organic growth
- Adjusted diluted earnings per share
- Adjusted earnings
- Adjusted tax rate
- Adjusted gross margin
- Adjusted operating income
- Adjusted operating margin
We provide these measures as additional information regarding
our operating results. We use these non-GAAP measures internally to
evaluate our performance and in making financial and
operational decisions, including with respect to incentive
compensation. We believe that our presentation of these measures
provides investors with greater transparency with respect to our
results of operations and that these measures are useful for
period-to-period comparison of results.
Our non-GAAP financial measure of organic growth represents
revenue growth excluding revenue from acquisitions within the
preceding 12 months, the impact of foreign currency, as well as the
impact of partially-owned consolidated subsidiaries. Excluding
these measures provides more useful period-to-period comparison of
revenue results as it excludes the impact of foreign currency
exchange rates, which can vary significantly from period to period,
and revenue from acquisitions that would not be included in the
comparable prior period. Revenues from partially-owned subsidiaries
consolidated in our financial statements are also excluded from our
organic revenue calculation, as those revenues are not fully
attributable to the Company. Revenue from partially-owned
subsidiaries was $3.0 million and
$4.6 million for the quarter and year
ended June 30, 2022,
respectively.
Our non-GAAP financial measures for adjusted gross margin,
adjusted operating margin, and adjusted net earnings, in total and
on a per share basis, exclude stock-based compensation, the costs
recognized upon the sale of acquired inventory, amortization of
acquisition intangibles, acquisition related expenses inclusive of
the changes in fair value of contingent consideration, and other
non-recurring items including non-recurring costs, goodwill and
long-lived asset impairments, and gains. Stock-based compensation
is excluded from non-GAAP adjusted net earnings because of the
nature of this charge, specifically the varying available valuation
methodologies, subjection assumptions, variety of award types, and
unpredictability of amount and timing of employer related tax
obligations. The Company excludes amortization of purchased
intangible assets, purchase accounting adjustments, including costs
recognized upon the sale of acquired inventory and
acquisition-related expenses inclusive of the changes in fair value
contingent consideration, and other non-recurring items including
gains or losses on legal settlements, goodwill and long-lived asset
impairment charges, and one-time assessments from this measure
because they occur as a result of specific events, and are not
reflective of our internal investments, the costs of developing,
producing, supporting and selling our products, and the other
ongoing costs to support our operating structure. Additionally,
these amounts can vary significantly from period to period based on
current activity. The Company also excludes revenue and expense
attributable to partially-owned consolidated subsidiaries in the
calculation of our non-GAAP financial measures as the revenues and
expenses are not fully attributable to the Company.
The Company's non-GAAP adjusted operating margin and adjusted
net earnings, in total and on a per share basis, also excludes
stock-based compensation expense, which is inclusive of the
employer portion of payroll taxes on those stock awards,
restructuring, impairments of equity method investments, gain and
losses from investments, and certain adjustments to income tax
expense. Impairments of equity investments are excluded as they are
not part of our day-to-day operating decisions. Additionally, gains
and losses from other investments that are either isolated or
cannot be expected to occur again with any predictability are
excluded. Costs related to restructuring activities, including
reducing overhead and consolidating facilities, are excluded
because we believe they are not indicative of our normal operating
costs. The Company independently calculates a non-GAAP adjusted tax
rate to be applied to the identified non-GAAP adjustments
considering the impact of discrete items on these adjustments and
the jurisdictional mix of the adjustments. In addition, the tax
impact of other discrete and non-recurring charges which impact our
reported GAAP tax rate are adjusted from net earnings. We believe
these tax items can significantly affect the period-over-period
assessment of operating results and not necessarily reflect costs
and/or income associated with historical trends and future
results.
Investors are encouraged to review the reconciliations of
adjusted financial measures used in this press release to their
most directly comparable GAAP financial measures as provided with
the financial statements attached to this press release.
Forward Looking Statements:
Our press releases may contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act.
Such statements involve risks and uncertainties that may affect the
actual results of operations. The following important factors,
among others, have affected and, in the future, could affect the
Company's actual results: the effect of new branding and marketing
initiatives, the integration of new businesses and leadership, the
introduction and acceptance of new products, the funding and focus
of the types of research by the Company's customers, the impact of
the growing number of producers of biotechnology research products
and related price competition, general economic conditions,
customer site closures or supply chain issues resulting from the
COVID-19 pandemic, the impact of currency exchange rate
fluctuations, and the costs and results of research and product
development efforts of the Company and of companies in which the
Company has invested or with which it has formed strategic
relationships.
For additional information concerning such factors, see the
section titled "Risk Factors" in the Company's annual report on
Form 10-K and quarterly reports on Form 10-Q as filed with the
Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements we make in
our press releases due to new information or future events.
Investors are cautioned not to place undue emphasis on these
statements.
Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences
company providing innovative tools and bioactive reagents for the
research and clinical diagnostic communities. Bio-Techne products
assist scientific investigations into biological processes and the
nature and progress of specific diseases. They aid in drug
discovery efforts and provide the means for accurate clinical tests
and diagnoses. With thousands of products in its portfolio,
Bio-Techne generated approximately $1.1
billion in net sales in fiscal 2022 and has approximately
3,000 employees worldwide. For more infonnation on Bio-Techne and
its brands, please visit www.bio techne.com.
Contact:
David Clair, Vice President,
Investor Relations
David.Clair@bio-techne.com
612-656-4416
BIO-TECHNE
CORPORATION
|
CONSOLIDATED STATEMENTS
OF EARNINGS
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
ENDED
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
Net sales
|
|
$
|
288,229
|
|
$
|
259,028
|
|
$
|
1,105,599
|
|
$
|
931,032
|
Cost of
sales
|
|
|
87,878
|
|
|
83,083
|
|
|
349,103
|
|
|
298,182
|
Gross margin
|
|
|
200,351
|
|
|
175,945
|
|
|
756,496
|
|
|
632,850
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
96,630
|
|
|
86,641
|
|
|
372,766
|
|
|
324,951
|
Research and
development
|
|
|
23,148
|
|
|
20,722
|
|
|
87,140
|
|
|
70,603
|
Total operating
expenses
|
|
|
119,778
|
|
|
107,363
|
|
|
459,906
|
|
|
395,554
|
Operating
income
|
|
|
80,573
|
|
|
68,582
|
|
|
296,590
|
|
|
237,296
|
Other income
(expense)
|
|
|
(1,520)
|
|
|
(61,469)
|
|
|
4,796
|
|
|
(89,121)
|
Earnings before income
taxes
|
|
|
79,053
|
|
|
7,113
|
|
|
301,386
|
|
|
148,175
|
Income taxes
|
|
|
17,137
|
|
|
(7,531)
|
|
|
38,287
|
|
|
8,590
|
Net earnings, including
noncontrolling interest
|
|
$
|
61,916
|
|
$
|
14,644
|
|
$
|
263,099
|
|
$
|
139,585
|
Net earnings (loss)
attributable to noncontrolling interest
|
|
|
392
|
|
|
(316)
|
|
|
(8,952)
|
|
|
(825)
|
Net earnings
attributable to Bio-Techne
|
|
|
61,524
|
|
|
14,960
|
|
|
272,051
|
|
|
140,410
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.57
|
|
$
|
0.38
|
|
$
|
6.93
|
|
$
|
3.62
|
Diluted
|
|
$
|
1.51
|
|
$
|
0.37
|
|
$
|
6.63
|
|
$
|
3.47
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,199
|
|
|
38,907
|
|
|
39,219
|
|
|
38,747
|
Diluted
|
|
|
40,704
|
|
|
40,950
|
|
|
41,029
|
|
|
40,483
|
BIO-TECHNE
CORPORATION
|
CONSOLIDATED CONDENSED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
6/30/2022
|
|
6/30/2021
|
ASSETS
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
172,567
|
|
$
|
199,091
|
Short-term
available-for-sale investments
|
|
|
74,462
|
|
|
32,463
|
Accounts receivable,
net
|
|
|
194,548
|
|
|
145,385
|
Inventories
|
|
|
141,123
|
|
|
116,748
|
Other current
assets
|
|
|
22,856
|
|
|
16,919
|
Total current
assets
|
|
|
605,556
|
|
|
510,606
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
223,242
|
|
|
207,907
|
Right of use
asset
|
|
|
65,556
|
|
|
73,834
|
Goodwill and intangible
assets, net
|
|
|
1,353,623
|
|
|
1,459,035
|
Other assets
|
|
|
46,828
|
|
|
11,575
|
Total assets
|
|
$
|
2,294,805
|
|
$
|
2,262,957
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
113,704
|
|
$
|
95,960
|
Contract
liabilities
|
|
|
23,406
|
|
|
18,995
|
Income taxes
payable
|
|
|
13,237
|
|
|
5,336
|
Contingent
consideration payable
|
|
|
—
|
|
|
4,000
|
Operating lease
liabilities - current
|
|
|
11,928
|
|
|
11,602
|
Current portion of
long-term debt obligations
|
|
|
12,500
|
|
|
12,500
|
Other current
liabilities
|
|
|
1,243
|
|
|
3,891
|
Total current
liabilities
|
|
|
176,018
|
|
|
152,284
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
98,994
|
|
|
93,125
|
Long-term debt
obligations
|
|
|
243,410
|
|
|
328,827
|
Operating lease
liabilities
|
|
|
58,133
|
|
|
67,625
|
Long-term contingent
consideration payable
|
|
|
5,000
|
|
|
25,400
|
Other long-term
liabilities
|
|
|
12,239
|
|
|
24,462
|
Stockholders'
equity
|
|
|
1,701,011
|
|
|
1,571,234
|
Total liabilities and
stockholders' equity
|
|
$
|
2,294,805
|
|
$
|
2,262,957
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF
ADJUSTED GROSS MARGIN PERCENTAGE
|
(Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
ENDED
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
Gross margin percentage
- GAAP
|
|
69.5
|
%
|
|
67.9
|
%
|
|
68.4
|
%
|
|
68.0
|
%
|
Identified
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
—
|
%
|
|
0.6
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
Amortization of
intangibles
|
|
3.5
|
%
|
|
3.9
|
%
|
|
3.7
|
%
|
|
3.8
|
%
|
Stock compensation
expense
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
Impact of partially
owned consolidated subsidiaries(1)
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.1
|
%
|
Gross margin percentage
- Adjusted
|
|
73.2
|
%
|
|
72.7
|
%
|
|
72.5
|
%
|
|
72.3
|
%
|
(1)Adjusted
gross margin percentages for the fourth quarter and full year of
fiscal 2021 have been updated for comparability to fiscal 2022 for
the inclusion of the impact of partially-owned consolidated
subsidiaries on the Company's adjusted gross margin
percentage.
|
BIO-TECHNE
CORPORATION
|
RECONCILIATION OF
ADJUSTED OPERATING MARGIN PERCENTAGE
|
(Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
ENDED
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
Operating margin
percentage - GAAP
|
|
28.0
|
%
|
|
26.5
|
%
|
|
26.8
|
%
|
|
25.5
|
%
|
Identified
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
—
|
%
|
|
0.6
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
Amortization of
intangibles
|
|
6.3
|
%
|
|
7.0
|
%
|
|
6.5
|
%
|
|
6.8
|
%
|
Acquisition related
expenses
|
|
0.1
|
%
|
|
0.4
|
%
|
|
(1.6)
|
%
|
|
0.8
|
%
|
Eminence
impairment
|
|
—
|
%
|
|
—
|
%
|
|
1.8
|
%
|
|
—
|
%
|
Stock-based
compensation
|
|
3.0
|
%
|
|
4.0
|
%
|
|
4.3
|
%
|
|
5.6
|
%
|
Restructuring
costs
|
|
0.0
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
—
|
%
|
Impact of partially
owned subsidiaries(1)
|
|
0.0
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
Operating margin
percentage - Adjusted
|
|
37.4
|
%
|
|
38.8
|
%
|
|
38.3
|
%
|
|
39.1
|
%
|
(1) As
disclosed in our use of Non-GAAP Adjusted Financial Measures, the
adjusted operating margin percentages excludes partially-owned
consolidated revenue and expense amounts. The excluded revenue
attributable to partially-owned consolidated subsidiaries impacted
the operating margin by 0.4% and 0.1% for the fourth quarter and
full year of fiscal 2022, respectively, and 0.1% and an immaterial
amount for the comparative prior year periods. The excluded
operating (income)/loss impacted the operating margin by (0.4%) and
0.2% for the fourth quarter and full year of fiscal 2022,
respectively, and 0.2% for both comparative prior year periods.
Adjusted operating margin percentages for the fourth quarter and
full year of fiscal 2021 have been updated for comparability to
fiscal 2022 for the inclusion of the impact of partially-owned
consolidated subsidiaries on the Company's adjusted operating
margin percentage.
|
BIO-TECHNE
CORPORATION
|
NON-GAAP ADJUSTED
CONOLIDATED NET EARNINGS and EARNINGS per SHARE
|
(In thousands, except
per share data) (Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
|
ENDED
|
|
ENDED
|
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
|
Net earnings before
taxes- GAAP
|
|
$
|
79,053
|
|
$
|
7,113
|
|
$
|
301,386
|
|
$
|
148,175
|
|
Identified adjustments
attributable to Bio-Techne:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs recognized upon
sale of acquired inventory
|
|
|
—
|
|
|
1,474
|
|
|
1,596
|
|
|
1,565
|
|
Amortization of
intangibles
|
|
|
18,112
|
|
|
18,489
|
|
|
73,054
|
|
|
64,239
|
|
Acquisition related
expenses
|
|
|
354
|
|
|
920
|
|
|
(18,694)
|
|
|
7,489
|
|
Eminence
impairment
|
|
|
—
|
|
|
—
|
|
|
18,715
|
|
|
—
|
|
Stock-based
compensation, inclusive of employer taxes
|
|
|
8,671
|
|
|
10,321
|
|
|
46,401
|
|
|
51,846
|
|
Restructuring
costs
|
|
|
—
|
|
|
—
|
|
|
1,640
|
|
|
142
|
|
Investment (gain) loss
and other
|
|
|
359
|
|
|
57,647
|
|
|
(16,171)
|
|
|
68,391
|
|
Impact of partially
owned consolidated subsidiaries(1)
|
|
|
(919)
|
|
|
591
|
|
|
2,675
|
|
|
1,390
|
|
Net earnings before
taxes - Adjusted(1)
|
|
$
|
105,630
|
|
$
|
96,555
|
|
$
|
410,602
|
|
$
|
343,237
|
|
Non-GAAP tax
rate
|
|
|
21.2
|
%
|
|
20.3
|
%
|
|
21.2
|
%
|
|
20.2
|
%
|
Non-GAAP tax
expense
|
|
|
22,358
|
|
|
19,560
|
|
|
87,090
|
|
|
69,478
|
|
Non-GAAP adjusted net
earnings attributable to Bio-Techne(1)
|
|
$
|
83,272
|
|
$
|
76,995
|
|
$
|
323,512
|
|
$
|
273,759
|
|
Earnings per share -
diluted - Adjusted(1)
|
|
$
|
2.05
|
|
$
|
1.88
|
|
$
|
7.89
|
|
$
|
6.76
|
|
(1)Adjusted
consolidated net earnings and earnings per share for the fourth
quarter and full year of fiscal 2021 have been updated for
comparability to fiscal 2022 for the inclusion of the impact of
partially-owned consolidated subsidiaries on the Company's adjusted
consolidated net earnings and earnings per share.
|
BIO-TECHNE
CORPORATION
|
NON-GAAP adjusted tax
rate (In percentages)
|
(Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
ENDED
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
GAAP effective tax
rate
|
|
21.7
|
%
|
|
(105.9)
|
%
|
|
12.7
|
%
|
|
5.8
|
%
|
Discrete
items
|
|
(0.1)
|
%
|
|
122.0
|
%
|
|
10.7
|
%
|
|
19.0
|
%
|
Annual forecast
update
|
|
1.8
|
%
|
|
8.7
|
%
|
|
—
|
%
|
|
—
|
%
|
Long-term GAAP tax
rate
|
|
23.4
|
%
|
|
24.8
|
%
|
|
23.4
|
%
|
|
24.8
|
%
|
Rate impact
items
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
(2.1)
|
%
|
|
(6.0)
|
%
|
|
(1.9)
|
%
|
|
(5.7)
|
%
|
Acquisition
costs
|
|
(0.0)
|
%
|
|
(0.6)
|
%
|
|
(0.0)
|
%
|
|
(0.2)
|
%
|
Change in fair value of
investments
|
|
(0.1)
|
%
|
|
1.3
|
%
|
|
(0.1)
|
%
|
|
0.5
|
%
|
Other
|
|
0.0
|
%
|
|
0.8
|
%
|
|
(0.2)
|
%
|
|
0.8
|
%
|
Total rate impact
items
|
|
(2.2)
|
%
|
|
(4.5)
|
%
|
|
(2.2)
|
%
|
|
(4.6)
|
%
|
Non-GAAP adjusted tax
rate
|
|
21.2
|
%
|
|
20.3
|
%
|
|
21.2
|
%
|
|
20.2
|
%
|
BIO-TECHNE
CORPORATION
|
SEGMENT
REVENUE
|
(In
thousands)
|
(Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
ENDED
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
Protein Sciences
segment revenue
|
|
$
|
216,979
|
|
$
|
192,316
|
|
$
|
832,311
|
|
$
|
704,564
|
Diagnostics and
Genomics segment revenue
|
|
|
71,652
|
|
|
67,057
|
|
|
274,843
|
|
|
227,744
|
lntersegment
revenue
|
|
|
(402)
|
|
|
(345)
|
|
|
(1,555)
|
|
|
(1,276)
|
Consolidated
revenue
|
|
$
|
288,229
|
|
$
|
259,028
|
|
$
|
1,105,599
|
|
$
|
931,032
|
BIO-TECHNE
CORPORATTON
|
SEGMENT OPERATING
INCOME
|
(In
thousands)
|
(Unaudited)
|
|
|
|
QUARTER
|
|
YEAR
|
|
|
ENDED
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
|
6/30/2022
|
|
6/30/2021
|
Protein Sciences
segment operating income(1)
|
|
$
|
97,492
|
|
$
|
90,437
|
|
$
|
377,623
|
|
$
|
330,225
|
Diagnostics and
Genomics segment operating income
|
|
|
11,228
|
|
|
11,228
|
|
|
48,977
|
|
|
38,425
|
Segment operating
income
|
|
|
108,720
|
|
|
101,665
|
|
|
426,600
|
|
|
368,650
|
Corporate general,
selling, and administrative(1)
|
|
|
(2,157)
|
|
|
(1,375)
|
|
|
(5,281)
|
|
|
(4,943)
|
Adjusted operating
income
|
|
|
106,563
|
|
|
100,290
|
|
|
421,319
|
|
|
363,707
|
Cost recognized upon
sale of acquired inventory
|
|
|
—
|
|
|
(1,474)
|
|
|
(1,596)
|
|
|
(1,565)
|
Amortization of
intangibles
|
|
|
(18,112)
|
|
|
(18,489)
|
|
|
(73,054)
|
|
|
(64,239)
|
Acquisition related
expenses
|
|
|
(260)
|
|
|
(826)
|
|
|
19,070
|
|
|
(7,114)
|
Eminence
impairment
|
|
|
—
|
|
|
—
|
|
|
(18,715)
|
|
|
—
|
Impact of partially
owned consolidated subsidiaries(1)
|
|
|
1,053
|
|
|
(598)
|
|
|
(2,393)
|
|
|
(1,505)
|
Stock-based
compensation
|
|
|
(8,671)
|
|
|
(10,321)
|
|
|
(46,401)
|
|
|
(51,846)
|
Restructuring
costs
|
|
|
—
|
|
|
—
|
|
|
(1,640)
|
|
|
(142)
|
Operating
income
|
|
$
|
80,573
|
|
$
|
68,582
|
|
$
|
296,590
|
|
$
|
237,296
|
(1)Adjusted
operating income for the fourth quarter and full year of fiscal
2021 have been updated for comparability to fiscal 2022 for the
inclusion of the impact of partially-owned consolidated
subsidiaries on the Company's adjusted operating income.
|
BIO-TECHNE
CORPORATION
|
CONDENSED CASH
FLOW
|
(In
thousands)
|
(Unaudited)
|
|
|
|
YEAR
|
|
|
ENDED
|
|
|
6/30/2022
|
|
6/30/2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net earnings
|
|
$
|
263,099
|
|
$
|
139,585
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
101,069
|
|
|
87,747
|
Costs recognized on
sale of acquired inventory
|
|
|
1,596
|
|
|
1,565
|
Deferred income
taxes
|
|
|
6,816
|
|
|
(27,431)
|
Stock-based
compensation expense
|
|
|
42,183
|
|
|
48,982
|
Fair value adjustment
to available for sale investments
|
|
|
(15,002)
|
|
|
67,879
|
Contingent
consideration payments - operating
|
|
|
(3,300)
|
|
|
(337)
|
Fair value adjustment
to contingent consideration payable
|
|
|
(20,400)
|
|
|
5,300
|
Asset impairment
restructuring
|
|
|
546
|
|
|
—
|
Eminence
impairment
|
|
|
18,715
|
|
|
—
|
Other operating
activities
|
|
|
(70,050)
|
|
|
28,874
|
Net cash provided by
operating activities
|
|
|
325,272
|
|
|
352,164
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Additions to property
and equipment
|
|
|
(44,908)
|
|
|
(44,301)
|
Investment of forward
purchase contract
|
|
|
(25,000)
|
|
|
—
|
Other investing
activities
|
|
|
(26,943)
|
|
|
(199,215)
|
Net cash provided by
(used in) investing activities
|
|
|
(96,851)
|
|
|
(243,516)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Cash
dividends
|
|
|
(50,185)
|
|
|
(49,622)
|
Proceeds from stock
option exercises
|
|
|
77,155
|
|
|
65,092
|
Long-term debt
activity, net
|
|
|
(85,500)
|
|
|
(15,500)
|
Contingent
consideration payments - financing
|
|
|
(700)
|
|
|
—
|
Share
repurchases
|
|
|
(160,950)
|
|
|
(43,178)
|
Other financing
activity
|
|
|
(22,673)
|
|
|
(19,343)
|
Net cash provided by
(used in) financing activities
|
|
|
(242,853)
|
|
|
(62,551)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(12,092)
|
|
|
6,369
|
Net increase
(decrease)in cash and cash equivalents
|
|
|
(26,524)
|
|
|
52,466
|
Cash and cash
equivalents at beginning of period
|
|
|
199,091
|
|
|
146,625
|
Cash and cash
equivalents at end of period
|
|
$
|
172,567
|
|
$
|
199,091
|
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SOURCE Bio-Techne Corporation