New Brunswick Scientific Co., Inc., Reports 2000 Fourth-Quarter and Year-End Results

Declares 10% Stock Dividend



Apr 02, 2001, 01:00 ET from New Brunswick Scientific Co., Inc.

    EDISON, N.J., April 2 /PRNewswire/ --
 New Brunswick Scientific Co., Inc. (NBS) (Nasdaq:   NBSC), a designer and
 manufacturer of a wide variety of research equipment and scientific
 instruments for the life sciences, today announced its financial results for
 the 2000 fourth quarter and full year ending December 31, 2000.
     For the 2000 fourth quarter, net sales were $14,545,000, compared with
 $15,960,000 in last year's final quarter. Net income for the quarter was
 $32,000, or $0.01 per diluted share, versus the net loss of $360,000, or
 $0.06 per diluted share, in the fourth quarter of 1999.
     For the full year, net sales were $49,864,000 versus $54,866,000 one year
 ago. A net loss of $3,927,000, or $0.65 per diluted share, was incurred in
 2000, compared with a net loss of $1,148,000, or $0.20 per diluted share, in
 1999. Total research and development expenditures, all of which were expensed
 by the Company, rose 12 percent in 2000, reaching $6,903,000 from 1999's
 $6,176,000. Gross profit margin continued to improve, reflecting the positive
 impact of the DJM Cryo-Research acquisition. Excluding DGI's operations, gross
 margin for 2000 advanced 220 basis points to 39.9 percent from 37.7 percent
 last year.
     Commenting on the results, co-founder and Chairman David Freedman said,
 "2000 was an eventful year for New Brunswick Scientific. We instituted a
 number of initiatives to refocus the Company on its core engineering and
 manufacturing operations through enhanced efficiencies and refined internal
 processes. One of the most significant events of the year was the Board's
 decision to seek outside investment for DGI BioTechnologies for the requisite
 working capital required to further develop its technology.
     "We are pleased to announce that we have received a preliminary commitment
 from an institutional investor to make a substantial infusion of capital into
 DGI in return for a significant stake in that company which will reduce NBS'
 ownership in DGI to under 50%. We are hopeful that after completion of due
 diligence, agreement on final terms and entrance into definitive documentation
 the investment will be completed by the end of April 2001 and that this
 institutional investment may lead to others.
     He continued, "This action accomplishes two objectives. If the transaction
 closes as presently contemplated it would unburden our future earnings
 potential, enabling us to concentrate on what we do best?engineer and
 manufacture the highest-quality equipment, instrumentation, and software for
 research and development in the life sciences. It would also enable us to
 retain a substantial ownership stake in DGI for our shareholders.  We view
 this as an optimal scenario, whereby our shareholders benefit from future
 upside potential while insulating NBS' future financial results from the
 negative cash flow impact of DGI. However, there can be no assurances that the
 transaction will be consummated."
     Based on its improved outlook for 2001, New Brunswick Scientific also
 announced today that its Board of Directors has declared a 10-percent stock
 dividend on the Company's outstanding common stock. The stock dividend is
 payable on May 15, 2001, to common shareholders of record as of the close of
 business on April 16, 2001. Fractional shares will be paid in cash.
 
     New Brunswick Scientific Co., Inc., designs and manufactures a wide
 variety of research equipment and scientific instruments for the life
 sciences.
 
     This press release includes statements that may constitute forward-looking
 statements made pursuant to the Safe Harbor provision of the Private
 Securities Litigation Reform Act of 1995.  This information may involve risks
 and uncertainties, including without limitation risks relating to the
 development by DGI of its technology, that could cause actual results to
 differ materially from the forward-looking statements.  Although the Company
 believes that the expectations reflected in such forward-looking statements
 are based on reasonable assumptions, such statements are subject to risks and
 uncertainties that could cause actual results to differ materially from those
 projected.
 
              NEW BRUNSWICK SCIENTIFIC CO., INC,. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per-share amounts)
 
                                Three Months                 Year Ended
                                  December 31,                December 31,
                               2000          1999         2000          1999
 
     Net sales              $14,545       $15,960      $49,864       $54,866
 
     Operating costs and
      expenses:
       Cost of sales          8,726         9,313       29,710        33,089
       Selling, general and
        administrative
        expenses              3,908         4,209       15,607        15,506
       Research, development
        and engineering
        expenses              1,656         1,688        6,903         6,176
       Non-recurring
        severance costs          --           663           --           663
 
     Total operating costs
      and expenses           14,290        15,873       52,220        55,434
 
     Income (loss) from
      operations                255            87      (2,356)         (568)
 
     Other income (expense):
      Interest income            20            10           56            45
      Interest expense        (170)          (89)        (638)         (127)
      Other income (expense),
       net                     (16)          (43)         (87)          (53)
      Write-off of Investment
       in Organica, Inc.         --            --        (950)            --
                              (166)         (122)      (1,619)         (135)
 
     Income (loss) before
      income taxes               89          (35)      (3,975)         (703)
     Income tax expense
      (benefit)                  57           325         (48)           445
     Net income (loss)          $32        $(360)     $(3,927)      $(1,148)
 
     Basic earnings (loss)
      per share                $.01        $(.06)       $(.65)        $(.20)
 
     Diluted earnings (loss)
      per share                $.01        $(.06)       $(.65)        $(.20)
 
     Basic weighted average
      number of
      shares outstanding      6,094         5,867        6,036         5,837
 
     Diluted weighted average
      number of
      shares outstanding      6,210         5,867        6,036         5,837
 
 
                          Selected Balance Sheet Items
                             (Dollars in thousands)
 
                                                 December 31,   December 31,
                                                         2000           1999
 
     Cash and cash equivalents                         $2,473         $2,111
     Inventories                                       16,721         14,997
     Property, plant and equipment, net                 5,936          7,023
     Total assets                                      43,006         46,026
     Accounts payable and accrued expenses              8,200          8,293
     Long-term debt, net of current installments          694          7,347
     Shareholders' equity                              25,942         29,770
     Working capital                                   15,068         23,180
     Current ratio                                   2.0 to 1       3.7 to 1
 
 

SOURCE New Brunswick Scientific Co., Inc.
    EDISON, N.J., April 2 /PRNewswire/ --
 New Brunswick Scientific Co., Inc. (NBS) (Nasdaq:   NBSC), a designer and
 manufacturer of a wide variety of research equipment and scientific
 instruments for the life sciences, today announced its financial results for
 the 2000 fourth quarter and full year ending December 31, 2000.
     For the 2000 fourth quarter, net sales were $14,545,000, compared with
 $15,960,000 in last year's final quarter. Net income for the quarter was
 $32,000, or $0.01 per diluted share, versus the net loss of $360,000, or
 $0.06 per diluted share, in the fourth quarter of 1999.
     For the full year, net sales were $49,864,000 versus $54,866,000 one year
 ago. A net loss of $3,927,000, or $0.65 per diluted share, was incurred in
 2000, compared with a net loss of $1,148,000, or $0.20 per diluted share, in
 1999. Total research and development expenditures, all of which were expensed
 by the Company, rose 12 percent in 2000, reaching $6,903,000 from 1999's
 $6,176,000. Gross profit margin continued to improve, reflecting the positive
 impact of the DJM Cryo-Research acquisition. Excluding DGI's operations, gross
 margin for 2000 advanced 220 basis points to 39.9 percent from 37.7 percent
 last year.
     Commenting on the results, co-founder and Chairman David Freedman said,
 "2000 was an eventful year for New Brunswick Scientific. We instituted a
 number of initiatives to refocus the Company on its core engineering and
 manufacturing operations through enhanced efficiencies and refined internal
 processes. One of the most significant events of the year was the Board's
 decision to seek outside investment for DGI BioTechnologies for the requisite
 working capital required to further develop its technology.
     "We are pleased to announce that we have received a preliminary commitment
 from an institutional investor to make a substantial infusion of capital into
 DGI in return for a significant stake in that company which will reduce NBS'
 ownership in DGI to under 50%. We are hopeful that after completion of due
 diligence, agreement on final terms and entrance into definitive documentation
 the investment will be completed by the end of April 2001 and that this
 institutional investment may lead to others.
     He continued, "This action accomplishes two objectives. If the transaction
 closes as presently contemplated it would unburden our future earnings
 potential, enabling us to concentrate on what we do best?engineer and
 manufacture the highest-quality equipment, instrumentation, and software for
 research and development in the life sciences. It would also enable us to
 retain a substantial ownership stake in DGI for our shareholders.  We view
 this as an optimal scenario, whereby our shareholders benefit from future
 upside potential while insulating NBS' future financial results from the
 negative cash flow impact of DGI. However, there can be no assurances that the
 transaction will be consummated."
     Based on its improved outlook for 2001, New Brunswick Scientific also
 announced today that its Board of Directors has declared a 10-percent stock
 dividend on the Company's outstanding common stock. The stock dividend is
 payable on May 15, 2001, to common shareholders of record as of the close of
 business on April 16, 2001. Fractional shares will be paid in cash.
 
     New Brunswick Scientific Co., Inc., designs and manufactures a wide
 variety of research equipment and scientific instruments for the life
 sciences.
 
     This press release includes statements that may constitute forward-looking
 statements made pursuant to the Safe Harbor provision of the Private
 Securities Litigation Reform Act of 1995.  This information may involve risks
 and uncertainties, including without limitation risks relating to the
 development by DGI of its technology, that could cause actual results to
 differ materially from the forward-looking statements.  Although the Company
 believes that the expectations reflected in such forward-looking statements
 are based on reasonable assumptions, such statements are subject to risks and
 uncertainties that could cause actual results to differ materially from those
 projected.
 
              NEW BRUNSWICK SCIENTIFIC CO., INC,. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per-share amounts)
 
                                Three Months                 Year Ended
                                  December 31,                December 31,
                               2000          1999         2000          1999
 
     Net sales              $14,545       $15,960      $49,864       $54,866
 
     Operating costs and
      expenses:
       Cost of sales          8,726         9,313       29,710        33,089
       Selling, general and
        administrative
        expenses              3,908         4,209       15,607        15,506
       Research, development
        and engineering
        expenses              1,656         1,688        6,903         6,176
       Non-recurring
        severance costs          --           663           --           663
 
     Total operating costs
      and expenses           14,290        15,873       52,220        55,434
 
     Income (loss) from
      operations                255            87      (2,356)         (568)
 
     Other income (expense):
      Interest income            20            10           56            45
      Interest expense        (170)          (89)        (638)         (127)
      Other income (expense),
       net                     (16)          (43)         (87)          (53)
      Write-off of Investment
       in Organica, Inc.         --            --        (950)            --
                              (166)         (122)      (1,619)         (135)
 
     Income (loss) before
      income taxes               89          (35)      (3,975)         (703)
     Income tax expense
      (benefit)                  57           325         (48)           445
     Net income (loss)          $32        $(360)     $(3,927)      $(1,148)
 
     Basic earnings (loss)
      per share                $.01        $(.06)       $(.65)        $(.20)
 
     Diluted earnings (loss)
      per share                $.01        $(.06)       $(.65)        $(.20)
 
     Basic weighted average
      number of
      shares outstanding      6,094         5,867        6,036         5,837
 
     Diluted weighted average
      number of
      shares outstanding      6,210         5,867        6,036         5,837
 
 
                          Selected Balance Sheet Items
                             (Dollars in thousands)
 
                                                 December 31,   December 31,
                                                         2000           1999
 
     Cash and cash equivalents                         $2,473         $2,111
     Inventories                                       16,721         14,997
     Property, plant and equipment, net                 5,936          7,023
     Total assets                                      43,006         46,026
     Accounts payable and accrued expenses              8,200          8,293
     Long-term debt, net of current installments          694          7,347
     Shareholders' equity                              25,942         29,770
     Working capital                                   15,068         23,180
     Current ratio                                   2.0 to 1       3.7 to 1
 
 SOURCE  New Brunswick Scientific Co., Inc.