HERCULES, Calif., March 13, 2017 /PRNewswire/ -- Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global provider of life science research and clinical diagnostic products, today announced several significant strategic priorities, including initiating long term financial guidance, commitment to defining new capital allocation targets, and hosting an annual Investor Day later this year.
Bio-Rad expects to achieve the following financial results for revenue and EBITDA margins:
- Long-term currency-neutral revenue growth of approximately 3% to 5%
- Currency-neutral EBITDA margin of greater than 20% by 2020
Bio-Rad will provide further details on its long term revenue growth and profitability goals based on this EBITDA margin target.
Bio-Rad also plans to define a prudent capital allocation policy focused on maximizing value over the long-term. The Company commits to evaluate leverage levels that will enable Bio-Rad to maintain its strong balance sheet and investment grade credit ratings, while providing flexibility to opportunistically pursue organic growth initiatives and attractive bolt-on acquisitions. Should Bio-Rad identify compelling strategic opportunities that take the Company above this target, management is committed to de-levering back to the target range over time. Given its excess cash position, Bio-Rad intends to move to its target leverage ratio through share repurchases and/or value-creating M&A.
Bio-Rad plans to hold an Investor Day later this year, during which management will discuss the Company's operating performance, organic and inorganic growth priorities and capital allocation strategy.
Norman Schwartz, Bio-Rad Chairman and Chief Executive Officer, commented: "Today marks an important step forward for Bio-Rad. As we cycle through investments designed to enhance our growth and improve our operating efficiency, we are striving to achieve EBITDA margins that will create significant stockholder value over the long-term. We are committed to improving communication with the investor and analyst community as well as actively pursuing additional sell-side coverage."
Reiterates 2017 Financial Outlook
Bio-Rad also reiterated its 2017 financial outlook and continues to anticipate currency neutral revenue growth of approximately 4 percent, and improved profitability with a currency neutral GAAP operating margin of 7 percent for the full year 2017. As previously discussed, guidance includes elevated operating costs due to the implementation of Bio-Rad's ERP system. Revenue and operating margin guidance does not include the impacts of the recent acquisition of RainDance.
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) develops, manufactures, and markets a broad range of innovative products and solutions for the life science research and clinical diagnostic markets. The company is renowned for its commitment to quality and customer service among university and research institutions, hospitals, public health and commercial laboratories, as well as the biotechnology, pharmaceutical, and food safety industries. Founded in 1952, Bio-Rad is based in Hercules, California, and serves more than 100,000 research and healthcare industry customers through its global network of operations. The Company employs more than 8,250 people worldwide and had revenues exceeding $2 billion in 2016. For more information, please visit www.bio-rad.com.
This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "intends," "believes," "expects," "anticipates," "may," "will," "estimate," "continue," or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Bio-Rad's public reports filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Bio-Rad cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. We disclaim any obligation to update these forward-looking statements.
Christine Tsingos, Executive Vice President and Chief Financial Officer
Bio-Rad Laboratories, Inc.
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SOURCE Bio-Rad Laboratories, Inc.