Press release from Business Wire
Meridian Bioscience Provides Sales and Earnings Guidance for Fiscal 2014 and Reaffirms Fiscal 2013 Guidance
Monday, September 09, 2013
Meridian Bioscience Provides Sales and Earnings Guidance for Fiscal 2014 and Reaffirms Fiscal 2013 Guidance10:00 EDT Monday, September 09, 2013
CINCINNATI (Business Wire) -- Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today provided the financial community with guidance regarding the Company's fiscal 2014 sales and earnings estimates. Based on the Company's business planning and budgeting activities for the fiscal year ending September 30, 2014, management expects net sales to be in the range of $203 to $208 million and per share diluted earnings to be between $0.98 and $1.03. The per share estimates assume an increase in average diluted shares outstanding from approximately 41.9 million at fiscal 2013 year end to 42.3 million at fiscal 2014 year end. Net earnings are expected to increase between approximately 10% and 15% from fiscal 2013 to fiscal 2014. The sales and earnings guidance provided in this press release is from expected internal growth and does not include the impact of any acquisitions the Company might complete during fiscal 2014.
Management reaffirms fiscal 2013 guidance of per share diluted earnings of between $0.86 - $0.91 on net sales of $190 million to $195 million, with current revenue expectations being near the low end of the range.
John A. Kraeutler, Chief Executive Officer, stated, “During fiscal 2013, Meridian's diagnostic business continued to expand its illumigene ® molecular menu and its user base while increasing revenues in the focus areas of foodborne and H. pylori testing. Our Life Science unit likewise added innovative new products while extending its global reach. Additionally, operating efficiency has continued to improve margins. Our outlook is for solid growth in fiscal 2014, as we expect to increase organic revenues approximately 7% to 10%, with earnings growing approximately 10% to 15%, demonstrating continued operating efficiency. As is the case in fiscal 2013, the primary drivers of our growth will continue to be our illumigene molecular system along with our tests for E. coli, Campylobacter and H. pylori from our diagnostics business. Meridian Life Science is expected to derive its growth from sales of its unique molecular components, such as MyTaq™ and SensiFAST™, plus an expanding position in our industrial customer base in global markets, especially in China.
With regard to R&D investments, in fiscal 2014 we will continue to build upon our well-accepted simple–to-use molecular platform, illumigene, with our tests for Pertussis and Chlamydia/Gonorrhea anticipated to be launched in the first half of the fiscal year and the second half of the fiscal year, respectively. Our next tests in the pipeline are expected to be Herpes Simplex I & II, tests for enteric parasites such as Giardia, foodborne pathogens such as E. coli, and bloodborne pathogens such as malaria. Finally, we will continue to invest incrementally to add more automated manufacturing capabilities and to expand our sales and marketing teams around the world. As always, our goal is to build upon strong organic growth while delivering maximum shareholder value through higher earnings and cash dividends.”
William J. Motto, Executive Chairman, commented, “Fiscal 2013 has been a year of solid progress and fiscal 2014 promises further growth in revenues, cash flow, and earnings. We will introduce new products, carefully control expenses, maintain a strong unleveraged balance sheet, and continue to look for attractive acquisition opportunities. Based on our highly positive outlook, management intends to recommend to the Board of Directors an increase in our indicated annual cash dividend at the next regular board meeting. If approved, this will mark our 20th increase in the annual rate since we began paying cash dividends in 1991.”
FORWARD LOOKING STATEMENTS
The 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 "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. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. The Company 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 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. While Meridian has introduced a number of internally developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Meridian relies on proprietary, patented and licensed technologies, and 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. 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. The Company cannot predict the possible impact of recently-enacted United States healthcare legislation and any similar initiatives in other countries on its results of operations. In addition to the factors described in this paragraph, Part I, Item 1A Risk Factors of our Form 10-K contains a list and description of uncertainties, risks and other matters that may affect the Company.
Meridian is a fully integrated life science company that develops, manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products and diagnostic tests provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral and respiratory infections. Meridian's diagnostic products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections, serology, parasitology and fungal disease diagnosis. In addition, Meridian is a supplier of rare reagents, specialty biologicals and related technologies used by biopharmaceutical companies engaged in research for new drugs and vaccines. The Company markets its products and technologies to hospitals, reference laboratories, research centers, diagnostics manufacturers and biotech companies in more than 60 countries around the world. The Company's shares are traded on NASDAQ's Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.
Meridian Bioscience, Inc.
John A. Kraeutler, Chief Executive Officer, 513-271-3700