Bio-Rad Laboratories Inc (BIO) Q1 2019 Earnings Call Transcript

In This Article:

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Logo of jester cap with thought bubble.

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Bio-Rad Laboratories Inc (NYSE: BIO)
Q1 2019 Earnings Call
May. 8, 2019, 5:00 p.m. ET

Contents:

  • Prepared Remarks

  • Questions and Answers

  • Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to the Q1 2019 Bio Rad Laboratories Inc 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 Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Ron Hutton. Sir, you may begin.

Ronald Hutton -- Vice President and Treasurer

Thank you, Jimmy. Before we begin the call, 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 our 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 our 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 reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release. With that I'd like to turn the call over to Ilan Daskal, EVP and CFO.

Ilan Daskal -- Executive Vice President, Chief Financial Officer

Thank you, Ron. Good afternoon and thank you all for joining us. Today we will review the first quarter financial results for 2019. With me today are Norman Schwartz, our CEO; Andy Last, Chief Operating Officer; Annette Tumolo, President of the Life Science Group; and John Hertia, President of our Clinical Diagnostics Group. We will review the results on a GAAP basis as well as commentary on a non-GAAP basis.

Net sales for the first quarter of 2019 were $554 million which is a 0.4% growth on a reported basis versus $551.5 million in Q1 of 2018. On a currency neutral basis, sales increased 4%. During the quarter, we experienced good demand across many of our key product areas and growth in all three regions with a particular strength noted in the Americas. When comparing to Q1 of last year, remember that Q1 of 2018 sales included a royalty settlement of approximately $6 million within the Diagnostics segment. Also included in Q1 of 2018 is about $6 million of RainDance sales compared to about $1 million in Q1 of 2019. If we exclude the RainDance reduction of sales and the royalty settlement in Q1 of 2018, we estimate that the currency-neutral sales growth for Q1 of 2019 was about 6%. Life science in the first quarter of 2019, the revenue was $215.7 million compared to $197.8 million in Q1 of 2018 which is an increase of 9.1% on a reported basis and the year-over-year growth of 12% on a currency neutral basis. The growth in the first quarter was across all product areas with particular strength within cell biology and food safety.