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Bio-Rad Reports Fourth-Quarter and Full-Year 2022 Financial Results

Business Wire - Thu Feb 16, 2023

Bio-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.

Fourth-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.

Fourth-quarter 2022 gross margin was 54.4 percent compared to 54.6 percent for the fourth quarter of 2021.

Life 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™ PCR, process chromatography, Western blotting, and qPCR products.

Clinical 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.

Income from operations for the fourth quarter of 2022 was $118.7 million versus $108.9 million during the same quarter last year.

Net 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’s investment in Sartorius AG.

The 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.

“During the fourth quarter, we continued to make progress, working through the ongoing global supply chain challenges,” said Norman Schwartz, Bio-Rad’s President, and Chief Executive Officer. “We also saw positive market response to new product introductions, setting the stage for 2023.”

GAAP Results

Q4 2022

Q4 2021

Revenue (millions)

$730.3

$732.8

Gross margin

54.4%

54.6%

Operating margin

16.2%

14.9%

Net income (loss) (millions)

$827.7

$(1,572.2)

Income (loss) per diluted share

$27.78

$(52.54)

 

Non-GAAP Results

Q4 2022

Q4 2021

Revenue (millions)

$730.3

$732.8

Gross margin

54.9%

55.2%

Operating margin

17.4%

15.7%

Net income (millions)

$98.5

$98.5

Income per diluted share

$3.31

$3.26

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.

Non-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 “Non-GAAP and Currency-Neutral Reporting.”

Non-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.

The 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.

The following table represents a reconciliation of Bio-Rad’s 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:

 

In thousands, except per share data

Three Months Ended

December 31, 2022

Three Months Ended

December 31, 2021

Year Ended

December 31, 2022

Year Ended

December 31, 2021

 

GAAP net income (loss)

$ 827,734

$ (1,572,163)

$ (3,627,535)

$ 4,254,257

Legal settlements

-

-

-

(28,619)

Amortization of purchased intangibles

6,069

6,498

24,904

27,530

Legal matters

308

874

2,374

16,375

Acquisition related benefits

(494)

-

(494)

(40)

Restructuring (benefits) costs

31

(3,510)

4,594

64,289

(Gains) losses from change in fair market value of equity securities and loan receivable

(978,752)

2,152,505

5,193,554

(4,926,248)

Losses on equity-method investments

16,133

1,615

25,310

7,194

Other non-recurring items (2) (3)

2,454

1,909

8,600

1,909

Income tax effect of non-GAAP adjustments (1)

225,007

(489,230)

(1,198,728)

1,064,912

Non-GAAP net income

$ 98,490

$ 98,498

$ 432,579

$ 481,559

 

GAAP diluted income (loss) per share

$ 27.78

$ (52.54)

$ (121.79)