0000842023-12-000017.txt : 20120731
0000842023-12-000017.hdr.sgml : 20120731
20120731085745
ACCESSION NUMBER: 0000842023-12-000017
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 3
CONFORMED PERIOD OF REPORT: 20120731
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20120731
DATE AS OF CHANGE: 20120731
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: TECHNE CORP /MN/
CENTRAL INDEX KEY: 0000842023
STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
IRS NUMBER: 411427402
STATE OF INCORPORATION: MN
FISCAL YEAR END: 0630
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-17272
FILM NUMBER: 12995398
BUSINESS ADDRESS:
STREET 1: 614 MCKINLEY PL N E
CITY: MINNEAPOLIS
STATE: MN
ZIP: 55413
BUSINESS PHONE: 6123798854
MAIL ADDRESS:
STREET 1: 614 MCKINLEY PLACE NE
CITY: MINNEAPOLIS
STATE: MN
ZIP: 55413
8-K
1
k8q.txt
8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 31, 2012
TECHNE CORPORATION
(Exact Name of Registrant as Specified in Charter)
Minnesota 0-17272 41-1427402
(State or Other Jurisdiction (Commission I.R.S. Employer
of Incorporation) File Number) Identification No.)
614 Mckinley Place NE
Minneapolis, MN 55413
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (612) 379-8854
Not Applicable
(Former Name or Former Address, if changed since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant under any
of the following provisions:
/ / Written communications pursuant to Rule 425 under the Securities Act
17 CFR 230.425)
/ / Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
/ / Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
/ / Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
A copy of the press release issued by Techne Corporation on July 31,
2012, describing the results of operations for the quarter and fiscal year
ended June 30, 2012 and its financial condition as of June 30,
2012, is attached hereto as Exhibit 99.1.
Segment information for Techne Corporation for the quarter and fiscal year
ended June 30, 2012 which has been included on Techne Corporation's
website (www.techne-corp.com), is attached hereto as Exhibit 99.2.
The information in this Form 8-K and the Exhibits attached hereto shall not
be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), or otherwise subject to the
liabilities of that section, nor shall it be deemed incorporated by reference
in any filing under the Securities Act of 1933 or the Exchange Act, except as
expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated July 31, 2012.
99.2 Segment information for the quarter and fiscal year
ended June 30, 2012.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: July 31, 2012 TECHNE CORPORATION
By: /s/ Thomas E. Oland
---------------------------
Name: Thomas E. Oland
Title: President and Chief
Executive Officer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99.1 Press release of Techne Corporation dated July 31, 2012.
99.2 Segment information for Techne Corporation for the quarter
and fiscal year ended June 30, 2012.
EX-99.1
2
release73112.txt
EARNINGS RELEASE
TECHNE CORPORATION RELEASES UNAUDITED FOURTH QUARTER
AND FISCAL YEAR 2012 RESULTS
Minneapolis/July 31, 2012/ Techne Corporation's (NASDAQ:TECH) financial
results for the fourth quarter and fiscal year ended June 30, 2012 include
the following highlights:
Fourth quarter earnings were $27.2 million or $0.74 per diluted share.
Adjusted earnings for the quarter were $29.4 million (a decrease of 6.8%
from the prior fiscal year period) or $0.80 per diluted share. Earnings
and adjusted earnings were negatively impacted by foreign currency
fluctuations, which reduced reported sales and gross margins and
increased foreign currency transaction losses. Adjusted earnings and
earnings per share exclude intangible asset amortization, costs
recognized upon the sale of inventory that was written-up to fair value
and professional fees incurred as part of the acquisitions of Boston
Biochem, Inc. and Tocris Holdings Limited completed in the quarter ended
June 30, 2011.
Earnings for the fiscal year ended June 30, 2012 were $112 million or
$3.04 per diluted share. Adjusted earnings for the fiscal year ended
June 30, 2012 were $121 million (an increase of 3.7% from the prior
fiscal year) or $3.26 per diluted share. Adjusted earnings and
earnings per diluted share for the fiscal year also exclude the impact
of impairment charges on certain equity investments and the reversal
of deferred tax asset valuation allowances in addition to the
acquisition-related items noted above.
Net sales as reported grew 0.8% to $78.7 million for the quarter ended June
30, 2012. Organic sales grew 0.6% in the quarter compared to the prior
fiscal year. Organic sales exclude sales from acquisitions and the
changes in foreign currency rates.
Net sales as reported grew 8.5% to $315 million for the fiscal year ended
June 30, 2012. Organic sales grew 1.8% for the fiscal year ended June
30, 2012 compared to the prior fiscal year.
A stronger U.S. dollar as compared to foreign currencies reduced sales by
$1.6 million in the quarter ended June 30, 2012 from the comparable prior-
year quarter. Changes in foreign currency exchange rates did not have a
material effect on sales for the fiscal year ended June 30, 2012.
The Biotechnology segment includes sales made through R&D Systems'
Biotechnology Division, R&D Systems Europe, Tocris, R&D Systems China,
BiosPacific and Boston Biochem. Biotechnology segment net sales were $73.0
million for both the quarters ended June 30, 2012 and 2011. Biotechnology
net sales were $293 million for the fiscal year ended June 30, 2012, an
increase of 8.5% from $270 million for the fiscal year ended June 30, 2011.
Biotechnology sales declined 0.3% and grew 1.3% for the quarter and fiscal
year ended June 30, 2012, respectively, if sales from the acquisitions and
foreign currency effect are excluded.
Organic sales growth for the Biotechnology segment from the same prior-year
periods were:
Period Ended June 30, 2012
--------------------------
Quarter Fiscal Year
------- -----------
U.S. industrial, pharmaceutical
and biotechnology (2.6%) 3.2%
U.S. academic 0.3% (5.1%)
Europe (3.7%) (1.5%)
China 19.6% 21.6%
Pacific Rim 9.8% 7.0%
Hematology net sales for the quarter and fiscal year ended June 30, 2012 were
$5.7 million and $21.3 million, increases of 14.1% and 8.2%, respectively,
from the comparable prior-year periods.
The gross margin percentage declined to 74.8% in the quarter ended June 30,
2012 from 76.4% in the comparable prior-year quarter and to 75.0% in the
fiscal year ended June 30, 2012 from 77.6% in the comparable prior fiscal
year, due to costs recognized upon the sale of inventory that was written-up
to fair value as part of the acquisitions completed during the 2011 fiscal
year and the amortization of intangible assets. Gross margins were 78.0% and
79.5% for the quarters ended June 30, 2012 and 2011, respectively, and 78.4%
and 78.5% for the fiscal years ended June 30, 2012 and 2011, respectively, if
such costs were excluded in all periods. The decrease in adjusted gross
margins for the quarter ended June 30, 2012 was primarily caused by
unfavorable exchange rates.
Selling, general and administrative expenses for the quarter and fiscal year
ended June 30, 2012 decreased $202,000 and increased $5.8 million,
respectively, from the quarter and fiscal year ended June 30, 2011.
Excluding the acquired company's selling, general and administrative
expenses, professional fees related to the acquisitions and intangible
amortization, selling, general and administrative expenses increased $830,000
and $2.8 million for the quarter and fiscal year ended June 30, 2012,
respectively, from the same prior-year periods. The increase for the quarter
ended June 30, 2012, includes a $440,000 increase in advertising and
promotional expenses and a final litigation settlement of $170,000. The
increase for the fiscal year is mainly the result of a $1.3 million increase
in wages and benefits, including additional personnel added during the year,
the litigation settlement and $503,000 additional stock option expense.
Other non-operating expenses include foreign exchange transaction losses of
$897,000 and gains of $177,000 in the quarters ended June 30, 2012 and 2011,
respectively. Other non-operating expenses include foreign exchange
transaction losses of $1.4 million and gains of $844,000 in the fiscal years
ended June 30, 2012 and 2011, respectively.
Other expenses for the fiscal year ended June 30, 2012 also included $3.3
million of impairment losses on investments in unconsolidated entities.
These losses were the result of Nephromics, LLC signing an agreement to sell
substantially all of its assets and ACTGen, Inc. suffering substantial
operating losses and encountering funding difficulties.
The effective tax rate for the quarter and fiscal year ended June 30, 2012
was 32.9% and 30.7%, respectively, as compared to 34.1% and 31.9% for the
same prior-year periods. Income taxes for the fiscal year ended June 30, 2012
were positively impacted by $3.0 million due to the reversal of a valuation
allowance on deferred tax assets related to the excess tax basis in the
Company's investments in unconsolidated entities. The effective tax rate for
the quarter and fiscal year ended June 30, 2011 was impacted by non-
deductible professional fees and other costs related to acquisitions, the
renewal of U.S. research and development credit and an increase in the
deduction for qualified production activities. The tax rate for fiscal 2013
is expected to be 31% to 33%.
The Company's investment in ChemoCentryx, Inc. (CCXI) is included in short-
term available-for-sale investments at June 30, 2012 at a fair-value of $94.6
million. The Company's investment in CCXI was $14.3 million at June 30, 2011
and included in other non-current assets as CCXI was not publicly traded.
During the third quarter of fiscal 2012, CCXI began trading publicly and at
that time the Company invested an additional $15 million in CCXI. The
Company's unrealized gain of $65.2 million on the investment, net of deferred
tax liability of $23.4 million, was included in accumulated other
comprehensive income at June 30, 2012.
The Company repurchased 34,643 and 343,653 shares of its common stock during
the quarter and fiscal year ended June 30, 2012, respectively, for
approximately $2.3 million and $23.6 million, respectively. Approximately
$27.0 million remains available at June 30, 2012 for the repurchase and
retirement of shares under the currently-open authorization.
Forward Looking Statements:
Our press releases may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act. Such statements, including
the expected effective tax rate, 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 integration of acquired companies, the introduction and
acceptance of new biotechnology and hematology products, the levels and
particular directions 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, the retention of
hematology OEM and proficiency survey business, 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.
Use of Adjusted Financial Measures:
The adjusted financial measures used in this press release quantify the
impact the following events had on reported net sales, gross margin
percentages, selling, general and administrative expenses, net earnings and
earnings per share for the quarter and fiscal year ended June 30, 2012 as
compared to the reported amounts for the same periods ended June 30, 2011:
- fluctuations in exchange rates used to convert transactions in foreign
currencies (primarily the Euro, British pound sterling and Chinese yuan)
to U.S. dollars;
- the acquisitions of Boston Biochem, Inc. on April 1, 2011 and Tocris
Holdings Ltd. on April 28, 2011, including the impact of amortizing
intangible assets and the recognition of costs upon the sale of inventory
written-up to fair value;
- professional fess incurred as part of the acquisitions of Boston Biochem,
Inc. and Tocris Holdings Ltd.;
- the amount and impact of impairment losses related to the Company's
investments in unconsolidated entities; and
- the reversal of valuation allowances on deferred tax assets related to the
excess tax basis in the Company's unconsolidated entities.
These adjusted financial measures are not prepared in accordance with
generally accepted accounting principles (GAAP) and may be different from
adjusted financial measures used by other companies. Adjusted financial
measures should not be considered as a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP. We view
these adjusted financial measures to be helpful in assessing the Company's
ongoing operating results. In addition, these adjusted financial measures
facilitate our internal comparisons to historical operating results and
comparisons to competitors' operating results. We include these adjusted
financial measures in our earnings announcement because we believe they are
useful to investors in allowing for greater transparency related to
supplemental information we use in our financial and operational analysis.
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.
* * * * * * * * * * * *
Techne Corporation has two operating subsidiaries: Research and Diagnostic
Systems, Inc. (R&D Systems) of Minneapolis, Minnesota and R&D Systems Europe,
Ltd. (R&D Europe) of Abingdon, England. R&D Systems is a specialty
manufacturer of biological products. R&D Systems has three operating
subsidiaries: BiosPacific, Inc. (BiosPacific), located in Emeryville,
California, Boston Biochem, Inc., located in Cambridge, Massachusetts and R&D
Systems China Co. Ltd., (R&D China), located in Shanghai, China. BiosPacific
is a worldwide supplier of biologics to manufacturers of in vitro diagnostic
systems and immunodiagnostic kits. Boston Biochem is a leading developer and
manufacturer of ubiquitin-related research products. R&D China and R&D Europe
distribute biotechnology products. R&D Europe has two subsidiaries: Tocris
Holdings Ltd (Tocris) of Bristol, England and R&D Systems GmbH, a German
sales operation. Tocris is a leading supplier of reagents for non-clinical
life science research.
Contact: Greg Melsen, Chief Financial Officer
Kathy Backes, Controller
(612) 379-8854
TECHNE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
QUARTER ENDED FISCAL YEAR ENDED
---------------- ------------------
6/30/12 6/30/11 6/30/12 6/30/11
------- ------- -------- --------
Net sales $78,681 $78,038 $314,560 $289,962
Cost of sales 19,817 18,407 78,756 65,025
------- ------- -------- --------
Gross margin 58,864 59,631 235,804 224,937
Operating expenses:
Selling, general and administrative 10,360 10,562 41,683 35,897
Research and development 7,286 6,466 27,912 25,985
Total operating expenses 17,646 17,028 69,595 61,882
------- ------- -------- --------
Operating income 41,218 42,603 166,209 163,055
------- ------- -------- --------
Other income (expense):
Interest income 643 818 2,639 3,752
Impairment losses on investments
in unconsolidated entities 0 0 (3,254) 0
Other non-operating expense, net (1,244) (450) (3,399) (1,826)
------- ------- -------- --------
Total other (expense) income (601) 368 (4,014) 1,926
------- ------- -------- --------
Earnings before income taxes 40,617 42,971 162,195 164,981
Income taxes 13,376 14,640 49,864 52,679
------- ------- -------- --------
Net earnings $27,241 $28,331 $112,331 $112,302
======= ======= ======== ========
Earnings per share:
Basic $ 0.74 $ 0.76 $ 3.04 $ 3.03
Diluted $ 0.74 $ 0.76 $ 3.04 $ 3.02
Weighted average common
shares outstanding:
Basic 36,831 37,140 36,939 37,098
Diluted 36,894 37,230 37,006 37,172
TECHNE CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
6/30/12 6/30/11
-------- --------
ASSETS
Cash and equivalents $116,675 $ 77,613
Short-term available-for-sale investments 152,311 63,200
Trade accounts receivable 35,668 35,914
Inventory 38,277 44,906
Other current assets 3,576 8,784
-------- --------
Current assets 346,507 230,417
Available-for-sale investments 143,966 131,988
Property and equipment, net 93,788 95,398
Goodwill and intangible assets, net 132,158 138,915
Other non-current assets 2,905 20,952
-------- --------
Total assets $719,324 $617,670
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 13,836 $ 12,679
Payable for pending available-for-sale
investment purchases 4,429 0
Income taxes - deferred and current 17,485 5,509
-------- --------
Current liabilities 35,750 18,188
Deferred taxes 9,132 13,360
Stockholders' equity 674,442 586,122
-------- --------
Total liabilities and stockholders' equity $719,324 $617,670
======== ========
TECHNE CORPORATION
RECONCILIATION of ORGANIC SALES
(In thousands)
(Unaudited)
QUARTER ENDED FISCAL YEAR ENDED
---------------- ------------------
6/30/12 6/30/11 6/30/12 6/30/11
------- ------- -------- --------
Net sales $78,681 $78,038 $314,560 $289,962
Organic sales adjustments:
Acquisitions (1,730) 0 (19,385) 0
Impact of foreign
currency fluctuations 1,556 0 27 0
------- ------- -------- --------
Organic sales $78,507 $78,038 $295,202 $289,962
======= ======= ======== ========
Organic sales growth 0.6% 1.8%
TECHNE CORPORATION
RECONCILIATION of NET EARNINGS and EARNINGS per SHARE
(In thousands, except per share data)
(Unaudited)
QUARTER ENDED FISCAL YEAR ENDED
---------------- ------------------
6/30/12 6/30/11 6/30/12 6/30/11
------- ------- -------- --------
Net earnings $27,241 $28,331 $112,331 $112,302
Identified adjustments:
Costs recognized upon sale of
acquired inventory 1,703 1,835 7,573 1,835
Amortization of intangibles 1,273 954 5,094 1,465
Acquisition related professional fees 0 1,256 0 1,735
Impairment losses on investments 0 0 3,254 0
Tax impact of above adjustments (785) (797) (4,668) (1,119)
Tax impact of reversal of
valuation allowance 0 0 (3,016) 0
------- ------- -------- --------
2,191 3,248 8,237 3,916
------- ------- -------- --------
Net earnings - adjusted for
identified items $29,432 $31,579 $120,568 $116,218
======= ======= ======== ========
Adjusted growth (6.8%) 3.7%
Earnings per share - Diluted -
adjusted $ 0.80 $ 0.85 $ 3.26 $ 3.13
TECHNE CORPORATION
RECONCILIATION of GROSS MARGIN PERCENTAGES
(Unaudited)
QUARTER ENDED FISCAL YEAR ENDED
---------------- ------------------
6/30/12 6/30/11 6/30/12 6/30/11
------- ------- -------- --------
Gross margin percentage 74.8% 76.4% 75.0% 77.6%
Identified adjustments:
Costs recognized upon sale of
acquired inventory 2.2% 2.4% 2.4% 0.6%
Amortization of intangibles 1.0% 0.7% 1.0% 0.3%
------- ------- -------- --------
Gross margin percentage - adjusted 78.0% 79.5% 78.4% 78.5%
======= ======= ======== ========
TECHNE CORPORATION
RECONCILIATION of SELLING, GENERAL and ADMINISTRATIVE EXPENSES
(In thousands)
(Unaudited)
QUARTER ENDED FISCAL YEAR ENDED
---------------- ------------------
6/30/12 6/30/11 6/30/12 6/30/11
------- ------- -------- --------
Selling, general and
administrative expenses $10,360 $10,562 $ 41,683 $ 35,897
Identified selling, general and
administrative expense adjustments:
Acquired companies' expense,
excluding intangible amortization (1,041) (945) (4,201) (945)
Amortization of intangibles (518) (390) (2,076) (575)
Acquisition related professional fees 0 (1,256) 0 (1,735)
------- ------- -------- --------
Selling, general and administrative
expenses - adjusted $ 8,801 $ 7,971 $ 35,406 $ 32,641
======= ======= ======== ========
TECHNE CORPORATION
RECONCILIATION of INTANGIBLE AMORTIZATION
(In thousands)
(Unaudited)
QUARTER ENDED FISCAL YEAR ENDED
---------------- ------------------
6/30/12 6/30/11 6/30/12 6/30/11
------- ------- -------- --------
Amortization of intangible assets
included in:
Cost of goods sold $ 755 $ 564 $ 3,018 $ 890
Selling, general and
administrative expenses 518 390 2,076 575
------- ------- -------- --------
Total amortization of
intangible assets $ 1,273 $ 954 $ 5,094 $ 1,465
======= ======= ======== ========
EX-99.2
3
seg612.txt
SEGMENT RESULTS
SEGMENT INFORMATION
TECHNE CORPORATION AND SUBISIDARIES
(in thousands of $'s, except per share data)
Fiscal 2012 Increase (Decrease) From Fiscal 2011
-------------------------------------------------- ---------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 77,596 74,662 83,621 78,681 314,560 100% 9,651 6,954 7,350 643 24,598
Cost of sales 19,209 19,492 20,238 19,817 78,756 25% 3,859 4,165 4,297 1,410 13,731
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Gross margin 58,387 55,170 63,383 58,864 235,804 75% 5,792 2,789 3,053 (767) 10,867
Gross margin
percentage 75.2% 73.9% 75.8% 74.8% 75.0%
SG&A expense 10,773 10,651 9,899 10,360 41,683 13% 3,160 2,224 604 (202) 5,786
R&D expense 6,667 6,837 7,122 7,286 27,912 9% 48 234 825 820 1,927
Interest income (728) (798) (470) (643) (2,639) (1%) 119 222 597 175 1,113
Impairment loss 0 0 3,254 0 3,254 1% 0 0 3,254 0 3,254
Other non-oper-
ating ex., net 1,175 607 373 1,244 3,399 1% 918 (91) (48) 794 1,573
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
17,887 17,297 20,178 18,247 73,609 23% 4,245 2,589 5,232 1,587 13,653
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Earnings before
income taxes 40,500 37,873 43,205 40,617 162,195 52% 1,547 200 (2,179) (2,354) (2,786)
Income taxes 12,979 12,060 11,449 13,376 49,864 16% 399 921 (2,871) (1,264) (2,815)
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
27,521 25,813 31,756 27,241 112,331 36% 1,148 (721) 692 (1,090) 29
======= ======= ======= ======= ======= ======== ======= ======= ======= ======= ======
Diluted earnings
per share 0.74 0.70 0.86 0.74 3.04
Weighted average
diluted shares
outstanding 37,170 37,028 36,930 36,894 37,006
BIOTECHNOLOGY (1)
(in thousands of $'s)
Fiscal 2012 Increase (Decrease) From Fiscal 2011
-------------------------------------------------- ---------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 72,303 69,808 78,180 72,983 293,274 100% 9,262 6,728 7,060 (63) 22,987
Cost of sales 16,465 16,887 17,444 17,014 67,810 23% 3,624 4,267 4,145 1,185 13,221
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Gross margin 55,838 52,921 60,736 55,969 225,464 77% 5,638 2,461 2,915 (1,248) 9,766
Gross margin
percentage 77.2% 75.8% 77.7% 76.7% 76.9%
SG&A expense 9,470 9,003 8,921 9,059 36,453 12% 2,984 2,144 995 272 6,395
R&D expense 6,469 6,624 6,924 7,095 27,112 9% 48 245 820 823 1,936
Interest income (609) (689) (387) (541) (2,226) (1%) 53 129 484 132 798
Exchange loss/
gain 524 105 (164) 897 1,362 0% 1,029 18 85 1,074 2,206
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
15,854 15,043 15,294 16,510 62,701 21% 4,114 2,536 2,384 2,301 11,335
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Pretax result 39,984 37,878 45,442 39,459 162,763 56% 1,524 (75) 531 (3,549) (1,569)
======= ======= ======= ======= ======== ======== ======= ======= ======= ======= ======
(1) Includes R&D Systems Biotechnology Division, R&D Systems Europe,
BiosPacific, R&D China, Boston Biochem and Tocris.
HEMATOLOGY
(in thousands of $'s)
Fiscal 2012 Increase (Decrease) From Fiscal 2011
-------------------------------------------------- ---------------------------------------
First Second Third Fourth Percent First Second Third Fourth
Quarter Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Sales 5,293 4,854 5,441 5,698 21,286 100% 389 226 290 706 1,611
Cost of sales 2,744 2,605 2,794 2,803 10,946 51% 235 (102) 152 225 510
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Gross margin 2,549 2,249 2,647 2,895 10,340 49% 154 328 138 481 1,101
Gross margin
percentage 48.2% 46.3% 48.7% 50.8% 48.6%
SG&A expense 480 400 435 382 1,697 8% 152 64 (3) 33 246
R&D expense 198 213 198 191 800 4% -- (11) 5 (3) (9)
Interest income (47) (45) (23) (44) (159) (1%) 6 21 46 11 84
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
631 568 610 529 2,338 11% 158 74 48 41 321
------- ------- ------- ------- ------- -------- ------- ------- ------- ------- ------
Pretax result 1,918 1,681 2,037 2,366 8,002 38% (4) 254 90 440 780
======= ======= ======= ======= ======== ======== ======= ======= ======= ======= ======
CORPORATE AND OTHER (2)
(in thousands of $'s)
Fiscal 2012 Increase (Decrease) From Fiscal 2011
---------------------------------------- ---------------------------------------
First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter YTD Quarter Quarter Quarter Quarter YTD
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Interest income 72 64 60 58 254 (60) (72) (67) (32) (231)
Rental income 134 198 150 211 693 11 60 36 37 144
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
206 262 210 269 947 (49) (12) (31) 5 (87)
SG&A expense 823 1,248 543 919 3,533 24 16 (388) (507) (855)
Other-Building
expenses 587 482 545 513 2,127 31 (49) (41) (107) (166)
Other-Impairment
losses 0 0 3,254 0 3,254 0 0 3,254 0 3,254
Other-Equity
investment losses 198 218 142 45 603 (131) 0 (56) (136) (323)
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1,608 1,948 4,484 1,477 9,517 (76) (33) 2,769 (750) 1,910
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Pretax result (1,402) (1,686) (4,274) (1,208) (8,570) 27 21 (2,800) 755 (1,997)
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(2) Unallocated corporate expenses and Techne's share of losses
by Hemerus Medical, LLC and Nephromics, LLC.