Bio-Rad Laboratories, Inc. (NYSE:BIO.B) Q2 2018 Earnings Conference Call - Final Transcript

Aug 07, 2018 • 05:00 pm ET


Bio-Rad Laboratories, Inc. (NYSE:BIO.B) Q2 2018 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to the Q2 2018 Bio-Rad Laboratories' Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instruction). As a reminder, this conference call may be recorded.

I would now like to introduce your host for today's conference, VP and Treasurer, Dr. Ron Hutton, you may begin.

Ron Hutton

Thank you, David. (Forward-Looking Cautionary Statements)

Our remarks today will also include references to non-GAAP net income and non-GAAP diluted income per share, which are financial measures that are not defined under Generally Accepted Accounting Principles. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release.

With that, I will turn the call over to Christine Tsingos, EVP and CFO.

Christine Tsingos

Thanks Ron. Good afternoon everyone and thank you for joining us. With me today are Norman Schwartz, our CEO; and John Hertia, President of our Clinical Diagnostics Group. On the call, we will review our results on a GAAP basis and then provide some commentary and insight for results on a non-GAAP basis.

Today, we are pleased to report net sales for the second quarter of 2018 were $575.9 million and growth of 14.1% versus the same period last year sales of $504.7 million. On a currency neutral basis, sales increased an impressive 11%. During the quarter, we experienced good demand across many of our key product lines, resulting in double digit growth in all three major geographies.

When comparing to the second quarter of last year, remember that an estimated $16 million of revenue was disrupted, in association with the Go Live of our European deployment of SAP in April 2017. If we neutralized for last year's disruption as well as for a small amount of sales that were pulled forward into the second quarter of this year, in conjunction with the recent completion of our system deployment in Western Europe, we estimate that currency neutral organic growth for the quarter was around 6.5%.

Now let's look a little closer at the segment performance; Life Science sales in the second quarter were $217.8 million, an increase of 21.4% on a reported basis, when compared to last year, and growth of nearly 19% on a currency neutral basis. Much of the growth in the second quarter was driven by continued strong demand for our cell biology, digital PCR and food safety products. We also experienced another quarter of increased demand for our process media product line.

You may recall that 2017 was a tough year for growth in process media, making this year a bit of an easy compare. With that being said and excluding the process media sales, our core Life Science business still grew an impressive 14% currency-neutral in the second quarter of this year. On a geographic basis, Life Science experienced double-digit currency neutral growth in all three of our geographies and were particularly strong in the US,