{"id":732375,"date":"2023-02-16T16:35:32","date_gmt":"2023-02-16T21:35:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/bio-rad-reports-fourth-quarter-and-full-year-2022-financial-results\/"},"modified":"2023-02-16T16:35:32","modified_gmt":"2023-02-16T21:35:32","slug":"bio-rad-reports-fourth-quarter-and-full-year-2022-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/bio-rad-reports-fourth-quarter-and-full-year-2022-financial-results\/","title":{"rendered":"Bio-Rad Reports Fourth-Quarter and Full-Year 2022 Financial Results"},"content":{"rendered":"

<\/p>\n

Bio-Rad Reports Fourth-Quarter and Full-Year 2022 Financial Results<\/b><\/p>\n

HERCULES, Calif.–(BUSINESS WIRE<\/a>)–
\nBio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global leader in life science research and clinical diagnostic products, today announced financial results for the fourth quarter and full year ended December 31, 2022.\n<\/p>\n

\nFourth-quarter 2022 net sales were $730.3 million, a decrease of 0.3 percent compared to $732.8 million reported for the fourth quarter of 2021. COVID-related revenue was approximately $13 million in the fourth quarter of 2022 versus approximately $46 million reported in the year-ago period. On a currency-neutral basis, quarterly sales increased 5.8 percent compared to the same period in 2021. Fourth-quarter 2022 revenue increased 10.6 percent on a currency-neutral basis when excluding COVID-related sales.\n<\/p>\n

\nFourth-quarter 2022 gross margin was 54.4 percent compared to 54.6 percent for the fourth quarter of 2021.\n<\/p>\n

\nLife Science segment net sales for the fourth quarter were $359.7 million, an increase of 10.1 percent compared to the same period in 2021. On a currency-neutral basis, the segment sales increased 16.4 percent compared to the same quarter in 2021. When also excluding COVID-related sales, Life Science revenue increased 28.1 percent, and were primarily driven by Droplet Digital\u2122 PCR, process chromatography, Western blotting, and qPCR products.\n<\/p>\n

\nClinical Diagnostics segment net sales for the fourth quarter were $369.6 million, a decrease of 8.7 percent compared to the same period in 2021. On a currency-neutral basis, net sales decreased 2.9 percent versus the same quarter last year. Excluding COVID-related sales, Clinical Diagnostics revenue decreased 1.9 percent from the year-ago period, on a currency-neutral basis. The decrease was primarily driven by continuing supply chain constraints, which impacted instrument placements and sales of related consumables.\n<\/p>\n

\nIncome from operations for the fourth quarter of 2022 was $118.7 million versus $108.9 million during the same quarter last year.\n<\/p>\n

\nNet income for the fourth quarter of 2022 was $827.7 million, or $27.78 per share, on a diluted basis, versus a net loss of $1,572.2 million, or $52.54 per share, on a diluted basis, during the same period in 2021. Net income (loss) amounts for the fourth quarter of 2022 and 2021 were predominantly impacted by the recognition of changes in the fair market value of equity securities related to the holdings of the company\u2019s investment in Sartorius AG.\n<\/p>\n

\nThe effective tax rate for the fourth quarter of 2022 was 24.2%, compared to 22.8% for the same period in 2021. The effective tax rate reported in Q4 of 2022 was primarily affected by an unrealized gain in equity securities, and the tax rate reported in Q4 of 2021 was primarily affected by unrealized loss in equity securities.\n<\/p>\n

\n\u201cDuring the fourth quarter, we continued to make progress, working through the ongoing global supply chain challenges,\u201d said Norman Schwartz, Bio-Rad\u2019s President, and Chief Executive Officer. \u201cWe also saw positive market response to new product introductions, setting the stage for 2023.\u201d\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

GAAP Results<\/b><\/p>\n<\/td>\n<\/tr>\n

\n\n

Q4 2022<\/b><\/p>\n<\/td>\n

\n\n\n

Q4 2021<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue (millions)\n<\/p>\n<\/td>\n

\n

\n$730.3\n<\/p>\n<\/td>\n

\n\n\n

\n$732.8\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGross margin\n<\/p>\n<\/td>\n

\n

\n54.4%\n<\/p>\n<\/td>\n

\n\n\n

\n54.6%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin\n<\/p>\n<\/td>\n

\n

\n16.2%\n<\/p>\n<\/td>\n

\n\n\n

\n14.9%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income (loss) (millions)\n<\/p>\n<\/td>\n

\n

\n$827.7\n<\/p>\n<\/td>\n

\n\n\n

\n$(1,572.2)\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nIncome (loss) per diluted share\n<\/p>\n<\/td>\n

\n

\n$27.78\n<\/p>\n<\/td>\n

\n\n\n

\n$(52.54)\n<\/p>\n<\/td>\n<\/tr>\n

<\/tr>\n
\n

\n\u00a0\n<\/p>\n

Non-GAAP Results<\/b><\/p>\n<\/td>\n<\/tr>\n

\n\n

Q4 2022<\/b><\/p>\n<\/td>\n

\n\n\n

Q4 2021<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue (millions)\n<\/p>\n<\/td>\n

\n

\n$730.3\n<\/p>\n<\/td>\n

\n\n\n

\n$732.8\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGross margin\n<\/p>\n<\/td>\n

\n

\n54.9%\n<\/p>\n<\/td>\n

\n\n\n

\n55.2%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin\n<\/p>\n<\/td>\n

\n

\n17.4%\n<\/p>\n<\/td>\n

\n\n\n

\n15.7%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income (millions)\n<\/p>\n<\/td>\n

\n

\n$98.5\n<\/p>\n<\/td>\n

\n\n\n

\n$98.5\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nIncome per diluted share\n<\/p>\n<\/td>\n

\n

\n$3.31\n<\/p>\n<\/td>\n

\n\n\n

\n$3.26\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this press release. Non-GAAP adjustments include amortization of purchased intangibles; acquisition-related expenses and benefits; restructuring, impairment charges and gains and losses from change in fair market value of equity securities and loan receivable; gains and losses on equity-method investments; significant litigation charges or benefits and legal costs; and discrete income tax events and the income tax effect on these non-GAAP adjustments.<\/i><\/p>\n

\nNon-GAAP net income and non-GAAP diluted income per share (non-GAAP EPS) are non-GAAP measures that exclude certain items detailed later in this press release under the heading \u201cNon-GAAP and Currency-Neutral Reporting.\u201d\n<\/p>\n

\nNon-GAAP net income for the fourth quarter of 2022 was $98.5 million, or $3.31 per share, on a diluted basis, compared to $98.5 million, or $3.26 per share, on a diluted basis, during the same period in 2021.\n<\/p>\n

\nThe non-GAAP effective tax rate for the fourth quarter of 2022 was 28.1 compared to 20.4 percent for the same period in 2021. The higher tax rate in 2022 was driven by a geographical mix of earnings.\n<\/p>\n

\nThe following table represents a reconciliation of Bio-Rad\u2019s reported net income (loss) and diluted income (loss) per share to non-GAAP net income and non-GAAP diluted income per share for the three and twelve months ended December 31, 2022, and 2021:\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
\n\n

In thousands, except per share data<\/i><\/p>\n<\/td>\n

\n

Three Months Ended
\n
December 31, 2022<\/b><\/p>\n<\/td>\n

\n\n

Three Months Ended
\n
December 31, 2021<\/b><\/p>\n<\/td>\n

\n\n

Year Ended
\n
December 31, 2022<\/b><\/p>\n<\/td>\n

\n\n

Year Ended
\n
December 31, 2021<\/b><\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
\n

GAAP net income (loss)<\/b><\/p>\n<\/td>\n

\n

\n$ 827,734\n<\/p>\n<\/td>\n

\n\n

\n$ (1,572,163)\n<\/p>\n<\/td>\n

\n\n

\n$ (3,627,535)\n<\/p>\n<\/td>\n

\n\n

\n$ 4,254,257\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nLegal settlements\n<\/p>\n<\/td>\n

\n

\n–\n<\/p>\n<\/td>\n

\n\n

\n–\n<\/p>\n<\/td>\n

\n\n

\n–\n<\/p>\n<\/td>\n

\n\n

\n(28,619)\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nAmortization of purchased intangibles\n<\/p>\n<\/td>\n

\n

\n6,069\n<\/p>\n<\/td>\n

\n\n

\n6,498\n<\/p>\n<\/td>\n

\n\n

\n24,904\n<\/p>\n<\/td>\n

\n\n

\n27,530\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nLegal matters\n<\/p>\n<\/td>\n

\n

\n308\n<\/p>\n<\/td>\n

\n\n

\n874\n<\/p>\n<\/td>\n

\n\n

\n2,374\n<\/p>\n<\/td>\n

\n\n

\n16,375\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nAcquisition related benefits\n<\/p>\n<\/td>\n

\n

\n(494)\n<\/p>\n<\/td>\n

\n\n

\n–\n<\/p>\n<\/td>\n

\n\n

\n(494)\n<\/p>\n<\/td>\n

\n\n

\n(40)\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nRestructuring (benefits) costs\n<\/p>\n<\/td>\n

\n

\n31\n<\/p>\n<\/td>\n

\n\n

\n(3,510)\n<\/p>\n<\/td>\n

\n\n

\n4,594\n<\/p>\n<\/td>\n

\n\n

\n64,289\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\n(Gains) losses from change in fair market value of equity securities and loan receivable\n<\/p>\n<\/td>\n

\n

\n(978,752)\n<\/p>\n<\/td>\n

\n\n

\n2,152,505\n<\/p>\n<\/td>\n

\n\n

\n5,193,554\n<\/p>\n<\/td>\n

\n\n

\n(4,926,248)\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nLosses on equity-method investments\n<\/p>\n<\/td>\n

\n

\n16,133\n<\/p>\n<\/td>\n

\n\n

\n1,615\n<\/p>\n<\/td>\n

\n\n

\n25,310\n<\/p>\n<\/td>\n

\n\n

\n7,194\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nOther non-recurring items (2) (3)\n<\/p>\n<\/td>\n

\n

\n2,454\n<\/p>\n<\/td>\n

\n\n

\n1,909\n<\/p>\n<\/td>\n

\n\n

\n8,600\n<\/p>\n<\/td>\n

\n\n

\n1,909\n<\/p>\n<\/td>\n<\/tr>\n

\n\n

\nIncome tax effect of non-GAAP adjustments (1)\n<\/p>\n<\/td>\n

\n

\n225,007\n<\/p>\n<\/td>\n

\n\n

\n(489,230)\n<\/p>\n<\/td>\n

\n\n

\n(1,198,728)\n<\/p>\n<\/td>\n

\n\n

\n1,064,912\n<\/p>\n<\/td>\n<\/tr>\n

\n

Non-GAAP net income<\/b><\/p>\n<\/td>\n

\n

\n$ 98,490\n<\/p>\n<\/td>\n

\n\n

\n$ 98,498\n<\/p>\n<\/td>\n

\n\n

\n$ 432,579\n<\/p>\n<\/td>\n

\n\n

\n$ 481,559\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
\n

GAAP diluted income (loss) per share<\/b><\/p>\n<\/td>\n

\n

\n$ 27.78\n<\/p>\n<\/td>\n

\n\n

\n$ (52.54)\n<\/p>\n<\/td>\n

\n\n

\n$ (121.79)\n<\/p>\n<\/td>\n

\n\n

\n$ 140.83\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n
\n

Non-GAAP diluted income per share<\/b><\/p>\n<\/td>\n

\n

\n$ 3.31\n<\/p>\n<\/td>\n

\n\n

\n$ 3.26\n<\/p>\n<\/td>\n

\n\n

\n$ 14.42\n<\/p>\n<\/td>\n

\n\n

\n$ 15.94\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n
\n

\n(1)\n<\/p>\n<\/td>\n

\n

\nExcluded items identified in the reconciliation schedule are tax effected by application of a non-GAAP effective tax rate. The non-GAAP tax provision is adjusted for items, the nature of which and\/or tax jurisdiction requires the application of a specific tax rate or treatment.\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n(2)\n<\/p>\n<\/td>\n

\n

\nIncremental costs to comply with the European Union’s In Vitro Diagnostics Regulation (“IVDR”) for previously approved products.\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n(3)\n<\/p>\n<\/td>\n

\n

\nGain from the release of an escrow for the sale of a division in 2020.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Full-Year 2022 Results<\/b><\/p>\n

\nOn a reported basis, net sales for the full year 2022 decreased 4.1 percent to $2,802.2 million compared to $2,922.5 million for the prior year. On a currency-neutral basis, net sales grew 0.3 percent. When excluding a royalty-related legal settlement totaling $32 million in 2021, full-year 2022 sales grew 1.5 percent on a currency-neutral basis.\n<\/p>\n

\nCOVID-related sales for the full year were approximately $109 million, compared to $266 million in the year-ago period. Excluding COVID-related sales and the royalty-related legal settlement of $32 million, full-year 2022 revenue increased 7.2 percent year-over-year on a currency-neutral basis.\n<\/p>\n

\nFull-year 2022 reported net sales for the Life Science segment were $1,347.2 million, an increase of 2.7 percent compared to the same period in 2021 on a currency-neutral basis and excluding the legal settlement in 2021. Life Science revenue grew 15.2 percent on a currency-neutral basis in 2022 versus 2021 when excluding COVID-related sales and the legal settlement.\n<\/p>\n

\nFull-year 2022 reported net sales for the Clinical Diagnostics segment were $1,451.0 million, an increase of 0.4 percent compared to the prior year on a currency-neutral basis. When excluding COVID-related sales, full-year Clinical Diagnostics revenue grew 1.3 percent compared to 2021 on a currency-neutral basis.\n<\/p>\n

\nFull-year 2022 gross margin was 55.9 percent, compared to 56.1 percent in 2021.\n<\/p>\n

\nNet loss for full-year 2022 was $3,627.5 million, or $121.79 per share, on a fully diluted basis, compared to net income of $4,254.3 million, or $140.83 per share, in 2021.\n<\/p>\n

\nThe effective tax rate for the full year of 2022 was 22.9 percent compared to 21.9 percent in 2021. The effective tax rate reported in 2022 was primarily affected by an unrealized loss in equity securities and the tax rate reported in 2021 was primarily affected by unrealized gain in equity securities.\n<\/p>\n

\nThe non-GAAP effective tax rate for the full year of 2022 was 22.0 percent compared to 21.2 percent in 2021.\n<\/p>\n

\nNon-GAAP net income for 2022 was $432.6 million, or $14.42 per share, compared to $481.6 million, or $15.94 per share in 2021.\n<\/p>\n

\n\u201cWhile 2022 financial results were largely in line with our expectations, it is also important to recognize the measurable progress achieved on our operational initiatives,\u201d said Mr. Schwartz. \u201cLooking forward to 2023, we remain focused on leveraging our operational scale, operational improvements, and continued innovation. Our markets are strong and have largely recovered from the pandemic, giving us a positive outlook for growth. We extend sincere thanks to our employees across the globe for their ongoing commitment to supporting our customers as we continue our transformation and growth.\u201d\n<\/p>\n

Full-Year 2022 Highlights<\/b><\/p>\n