Bio-Rad Laboratories, Inc. (NYSE:BIO) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 05:00 pm ET

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Bio-Rad Laboratories, Inc. (NYSE:BIO) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 and Full Year 2019 Bio-Rad Laboratories, Inc. Earnings Conference call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Ron Hutton. Thank you. Please go ahead, sir.

Executive
Ronald Hutton

Thank you, Daniel. Good afternoon and thank you all for joining us. Today, we will review the fourth quarter and full year financial results for 2019. With me today are Norman Schwartz, our CEO; Ilan Daskal, Executive Vice President and Chief Financial Officer; Andy Last, Executive Vice President and Chief Operating Officer; Annette Tumolo, President of the Life Science Group; and Dara Wright, President of the Clinical Diagnostics Group.

Before we begin our review, I would like to caution everyone that we will be making forward-looking statements about management's goals, plans and expectations, our future financial performance and other matters. Because our actual results may differ materially from these plans and expectations, you should not place undue reliance on these forward-looking statements, and I encourage you to review our filings with the SEC where we discuss in detail the risk factors in our business. The company does not intend to update any forward-looking statements made during the call today.

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 reconciliations of these non-GAAP measures to the comparable GAAP results contained in our earnings release.

I'd now like to turn the call now over to Ilan. Ilan?

Executive
Ilan Daskal

Thank you, Ron. Good afternoon and thank you all for joining us. We will review the fourth quarter and full year results for 2019 on a GAAP basis as well as commentary on a non-GAAP basis. Net sales for the fourth quarter of 2019 were $624.4 million, which is 1.2% increase on a reported basis versus $616.8 million in Q4 of 2018. On a currency neutral basis, sales increased 2.3%. The fourth quarter revenue fell short by about $20 million from the mid-point of our guidance, mainly due to the cyber-attack that we reported in early December. We expect to recover in Q1 of 2020 about $5 million of the Q4 revenue shortfall.

During the quarter, we experienced good demand across many of our key product areas and growth in the Americas and in Europe. Sales in Asia were most impacted by the cyber-attack mainly impacting the Life Science Group sales. Sales of the Life Science Group in the fourth quarter of 2019 were $242 million, compared to $239.6 million in Q4 of 2018, which is 1% increase on a reported basis and 1.8% increase on a currency neutral basis. Much of the year-over-year growth in the fourth quarter was driven by a double-digit growth in Droplet Digital PCR and in Food Safety as well as a very strong results for Process