Business Wire | Jul 29, 2021 04:15PM EDT

Bio-Rad Reports Second-Quarter 2021 Financial Results

Jul. 29, 2021

HERCULES, Calif.--(BUSINESS WIRE)--Jul. 29, 2021--Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb), a global leader of life science research and clinical diagnostic products, today announced financial results for the second quarter ended June 30, 2021.

Second-quarter 2021 net sales were $715.9 million, an increase of 33.4 percent compared to $536.9 million reported for the second quarter of 2020. On a currency-neutral basis, quarterly sales increased 27.5 percent compared to the same period in 2020. Second-quarter gross margin was 56.1 percent compared to 54.6 percent during the second quarter in 2020.

Life Science segment net sales for the second quarter of 2021 were $334.2 million, an increase of 32.6 percent compared to the same quarter last year. On a currency-neutral basis, sales increased 27.1 percent compared to the same period in 2020. Currency-neutral sales increased across nearly all life science research products but were primarily driven by growth in our Western Blotting, Droplet Digital PCR(r), qPCR, and Process Media product lines. All regions experienced strong currency-neutral sales growth compared to the second quarter of 2020.

Clinical Diagnostics segment sales for the second quarter of 2021 were $380.2 million, an increase of 34.3 percent compared to the same period last year. On a currency-neutral basis, sales increased 28.0 percent compared to the second quarter in 2020. The currency-neutral sales increase was primarily driven by the ongoing recovery across product lines in all regions.

Income from operations during the second quarter of 2021 was $124.8 million versus $51.7 million during the same quarter last year.

Net income for the second quarter of 2021 was $914.1 million, or $30.32 per share, on a diluted basis, versus $966.4 million, or $32.15 per share, on a diluted basis, during the same period in 2020. Net income for the second quarter of 2021 and 2020 was impacted by the recognition of changes in the fair market value of equity securities, primarily related to the holdings of our investment in Sartorius AG. The effective tax rate for the second quarter of 2021 was 21.0 percent, compared to 22.4 percent for the same period in 2020. The tax rates for both periods were driven by the large unrealized gain in equity securities. In addition, the effective income tax rate for the second quarter of 2021 was lower also due to the release of certain tax reserves resulting from the lapse of certain statute of limitations.

"Performance in the second quarter for both our Life Science and Clinical Diagnostics segments was strong and ahead of expectations," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "We are pleased to see the gradual recovery in our end markets across the business and in all regions after the significant downturn last year with the onset of COVID-19. Although the pandemic is still somewhat unpredictable, we have adapted well to the constraints of COVID-19 and continue to make progress on our core strategies, while supporting our customers and ensuring the safety of our employees," he said.

GAAP Results

Q2 2021 Q2 2020

Revenue (millions) $715.9 $536.9

Gross margin 56.1% 54.6%

Operating margin 17.4% 9.6%

Net income (millions) $914.1 $966.4

Income per diluted share $30.32 $32.15



Non-GAAP Results

Q2 2021 Q2 2020

Gross margin 56.9% 55.5%

Operating margin 18.5% 11.8%

Net income (millions) $106.6 $48.3

Income per diluted share $3.54 $1.61

A reconciliation between GAAP operating results and non-GAAP operatingresults is provided following the financial statements that are part of thispress release. Non-GAAP adjustments include amortization of purchasedintangibles; acquisition-related expenses and benefits; restructuring,impairment charges and valuation changes in equity-owned securities; gainsand losses on equity-method investments; significant litigation charges orbenefits and legal costs; and discrete income tax events and the income taxeffect on these non-GAAP adjustments.

Non-GAAP net income and non-GAAP diluted income per share (non-GAAP EPS) are non-GAAP measures that exclude certain items detailed later in this press release under the heading "Non-GAAP Reporting."

Non-GAAP net income for the second quarter of 2021 was $106.6 million, or $3.54 per share, on a diluted basis, compared to $48.3 million, or $1.61 per share, on a diluted basis, during the same period in 2020.

The non-GAAP effective income tax rate for the second quarter of 2021 was 21.5 percent, compared to 23.8 percent for the same period in 2020. The lower rate in 2021 was driven by geographic mix of earnings.

The following table represents a reconciliation of Bio-Rad's reported net income and diluted income per share to non-GAAP net income and non-GAAP diluted income per share for the three and six months ended June 30, 2021 and 2020:

(in thousands, Three Months Ended Six Months Ended except per share data) June 30, June 30,



2021 2020 2021 2020

GAAP net income $ 914,114 $ 966,429 $ 1,891,528 $ 1,652,341

Amortization of purchased 6,995 7,239 13,935 13,094 intangibles

Legal matters 8,761 2,585 12,640 4,418

Acquisition related (40 ) (955 ) (40 ) (1,002 ) benefits

Restructuring (benefits) (7,781 ) 2,652 67,784 284 costs

Valuation gain on (1,030,691 ) (1,183,488 ) (2,210,094 ) (2,011,159 ) equity-owned securities

Loss on equity-method 1,840 1,138 3,680 2,451 investments

Other non-recurring - (11,680 ) - (11,680 ) items

Income tax effect on 213,387 264,428 484,523 457,230 non-GAAP adjustments

Non-GAAP net $ 106,585 $ 48,348 $ 263,956 $ 105,977 income



GAAP dilutedincome per $ 30.32 $ 32.15 $ 62.70 $ 54.84 share

Non-GAAPdiluted income $ 3.54 $ 1.61 $ 8.75 $ 3.52 per share

On a reported basis, net sales for the first half of 2021 increased 30.1 percent to $1,442.7 million compared to $1,108.5 million for the same period in 2020. On a currency-neutral basis, net sales increased 25.4 percent.

Year-to-date net income for 2021 was $1,891.5 million, or $62.70 per share on a fully diluted basis, compared to $1,652.3 million, or $54.84 per share, respectively, during the same period in 2020. On a non-GAAP basis net income for the first two quarters of 2021 was $264.0 million, or $8.75 per share, compared to $106.0 million, or $3.52 per share, during the same period in 2020.

2021 Financial Outlook

For the full year 2021, the company has updated its guidance and now anticipates non-GAAP currency-neutral revenue growth between 10.0 to 10.5 percent and an estimated non-GAAP operating margin of approximately 19.0 percent. Management will discuss this outlook in greater detail on the second-quarter 2021 financial results conference call.

Use of Non-GAAP Reporting and Currency-Neutral

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including non-GAAP net income and non-GAAP EPS, which exclude amortization of acquisition-related intangible assets, certain acquisition-related expenses and benefits, restructuring charges, asset impairment charges, valuation changes of equity-owned securities, gains and losses on equity-method investments, and significant legal-related charges or benefits and associated legal costs. Non-GAAP net income and non-GAAP EPS also exclude certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability, income tax provisions/benefits related to the previous items, and significant discrete tax events. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operation of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. We also believe that disclosing non-GAAP financial measures provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. More specifically, management adjusts for the excluded items for the following reasons:

Amortization of purchased intangible assets: we do not acquire businesses and assets on a predictable cycle. The amount of purchase price allocated to purchased intangible assets and the term of amortization can vary significantly and are unique to each acquisition or purchase. We believe that excluding amortization of purchased intangible assets allows the users of our financial statements to better review and understand the historic and current results of our operations, and also facilitates comparisons to peer companies.

Acquisition-related expenses and benefits: we incur expenses or benefits with respect to certain items associated with our acquisitions, such as transaction costs, professional fees for assistance with the transaction; valuation or integration costs; changes in the fair value of contingent consideration, gain or loss on settlement of pre-existing relationships with the acquired entity; or adjustments to purchase price. We exclude such expenses or benefits as they are related to acquisitions and have no direct correlation to the operation of our on-going business.

Restructuring, impairment charges and valuation changes in equity-owned securities and gains and losses on equity-method investments: we incur restructuring and impairment charges on individual or groups of employed assets and charges and benefits arising from valuation changes in equity-owned securities and gains and losses on equity-method investments, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our on-going business. Although these events are reflected in our GAAP financials, these unique transactions may limit the comparability of our on-going operations with prior and future periods.

Significant litigation charges or benefits and legal costs: we may incur charges or benefits as well as legal costs in connection with litigation and other contingencies unrelated to our core operations. We exclude these charges or benefits, when significant, as well as legal costs associated with significant legal matters, because we do not believe they are reflective of on-going business and operating results.

Income tax expense:we estimate the tax effect of the excluded items identified above to determine a non-GAAP annual effective income tax rate applied to the pretax amount in order to calculate the non-GAAP provision for income taxes. We also adjust for items for which the nature and/or tax jurisdiction requires the application of a specific tax rate or treatment.

From time to time in the future, there may be other items excluded if we believe that doing so is consistent with the goal of providing useful information to investors and management.

Percentage sales growth in currency-neutral amounts are calculated by translating prior period sales in each local currency using the current period's monthly average foreign exchange rates for that currency and comparing that to current period sales.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Conference Call and Webcast

Management will discuss second-quarter ended June 30, 2021 results in a conference call at 3 PM Pacific Time (6 PM Eastern Time) July 29, 2021. To listen, call 855-779-9068 within the U.S. or 631-485-4862 outside the U.S., passcode: 5382265. You may also listen to the conference call live via a webcast that is available on the "Investor Relations" section of our website under "Quarterly Results" at bio-rad.com. The webcast will be available for up to a year.

BIO-RAD and DROPLET DIGITAL PCR are trademarks of Bio-Rad Laboratories, Inc. in certain jurisdictions.

About Bio-Rad

Bio-Rad Laboratories, Inc. (NYSE: BIO and BIOb) is a global leader in developing, manufacturing, and marketing a broad range of innovative products for the life science research and clinical diagnostic markets. With a focus on quality and customer service for over 65 years, our products advance the discovery process and improve healthcare. Our customers are university and research institutions, hospitals, public health and commercial laboratories, biotechnology, pharmaceutical, as well as applied laboratories that include food safety and environmental quality. Founded in 1952, Bio-Rad is based in Hercules, California, and has a global network of operations with approximately 7,700 employees worldwide. Bio-Rad had revenues exceeding $2.5 billion in 2020. Please visit bio-rad.com for further information.

This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements we make regarding estimated future financial performance or results; anticipating non-GAAP currency-neutral revenue growth of between 10.0 to 10.5 percent and an estimated non-GAAP operating margin of approximately 19.0 percent for the full year 2021;and continuing to make progress on our core strategies, while supporting our customers and ensuring the safety of our employees. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "anticipate," "estimate," "expect," "continue," "believe," "will," "project," "assume," "may," "intend," 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. These risks and uncertainties include the duration, severity and impact of the COVID-19 pandemic, global economic conditions, our ability to develop and market new or improved products, our ability to compete effectively, foreign currency exchange fluctuations, reductions in government funding or capital spending of our customers, international legal and regulatory risks, supply chain issues, product quality and liability issues, our ability to integrate acquired companies, products or technologies into our company successfully, changes in the healthcare industry, and natural disasters and other catastrophic events beyond our control. 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 Operations" in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2021 to be filed with the SEC. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc. disclaims any obligation to update these forward-looking statements.

Bio-Rad Laboratories, Inc.Condensed Consolidated Statements of Income (In thousands, except per share data)(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020

Net sales $ 715,931 $ 536,880 $ 1,442,727 $ 1,108,524

Cost of goods 314,333 243,892 640,502 498,168 soldGross profit 401,598 292,988 802,225 610,356

Selling, general and 213,425 189,262 439,278 382,954 administrative expense Research and 63,391 51,984 137,303 101,287 development expenseIncome from 124,782 51,742 225,644 126,115 operations Interest 363 5,740 761 11,430 expense Foreign currency (1,761 ) 774 (1,690 ) 1,702 exchange (gains) losses, net Change in fair market value (1,030,691 ) (1,183,488 ) (2,210,094 ) (2,011,159 ) of equity securities Other expense 96 (17,229 ) (17,311 ) (20,502 ) (income), netIncome before 1,156,775 1,245,945 2,453,978 2,144,644 income taxes Provision for (242,661 ) (279,516 ) (562,450 ) (492,303 ) income taxesNet income $ 914,114 $ 966,429 $ 1,891,528 $ 1,652,341

Basic earningsper share: Net income per $ 30.71 $ 32.59 $ 63.49 $ 55.52 basic share Weighted 29,764 29,652 29,793 29,759 average common shares - basic Dilutedearnings pershare: Net income per $ 30.32 $ 32.15 $ 62.70 $ 54.84 diluted share Weighted average common 30,148 30,058 30,167 30,131 shares - diluted Bio-Rad Laboratories, Inc.Condensed Consolidated Balance Sheets(In thousands)June 30,December 31,2021

2020

(Unaudited)Current assets:Cash and cash equivalents$

732,836

$

662,205

Short-term investments434,122

334,473

Accounts receivable, net399,307

419,424

Inventories, net598,989

622,253

Other current assets123,839

101,480

Total current assets2,289,093

2,139,835

Property, plant and equipment, net482,001

491,371

Operating lease right-of-use assets190,233

202,136

Goodwill, net291,916

291,916

Purchased intangibles, net184,852

199,497

Other investments11,580,390

9,561,140

Other assets99,071

86,723

Total assets$

15,117,556

$

12,972,618

Current liabilities:Accounts payable, accrued payroll and employee benefits$

342,345

$

362,326

Current maturities of long-term debt1,736

1,798

Income and other taxes payable52,421

57,335

Other current liabilities190,550

210,077

Total current liabilities587,052

631,536

Long-term debt, net of current maturities10,779

12,258

Other long-term liabilities2,924,845

2,448,884

Total liabilities3,522,676

3,092,678

Total stockholders' equity11,594,880

9,879,940

Total liabilities and stockholders' equity$

15,117,556

$

12,972,618

Bio-Rad Laboratories, Inc.Condensed Consolidated Balance Sheets(In thousands) June 30, December 31, 2021 2020

(Unaudited)Current assets: Cash and cash equivalents $ 732,836 $ 662,205

Short-term investments 434,122 334,473

Accounts receivable, net 399,307 419,424

Inventories, net 598,989 622,253

Other current assets 123,839 101,480

Total current assets 2,289,093 2,139,835

Property, plant and equipment, net 482,001 491,371

Operating lease right-of-use assets 190,233 202,136

Goodwill, net 291,916 291,916

Purchased intangibles, net 184,852 199,497

Other investments 11,580,390 9,561,140

Other assets 99,071 86,723

Total assets $ 15,117,556 $ 12,972,618

Current liabilities: Accounts payable, accrued payroll and employee $ 342,345 $ 362,326 benefits Current maturities of long-term debt 1,736 1,798

Income and other taxes payable 52,421 57,335

Other current liabilities 190,550 210,077

Total current liabilities 587,052 631,536

Long-term debt, net of current maturities 10,779 12,258

Other long-term liabilities 2,924,845 2,448,884

Total liabilities 3,522,676 3,092,678

Total stockholders' equity 11,594,880 9,879,940

Total liabilities and stockholders' equity $ 15,117,556 $ 12,972,618

Bio-Rad Laboratories, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)Six Months EndedJune 30,2021

2020

Cash flows from operating activities:Cash received from customers$

1,456,601

$

1,127,141

Cash paid to suppliers and employees(1,131,533

)

(959,300

)

Interest paid, net(1,536

)

(10,847

)

Income tax payments, net(77,573

)

(10,005

)

Other operating activities22,275

7,941

Net cash provided by operating activities268,234

154,930

Cash flows from investing activities:Payments for acquisitions-

(96,889

)

Other investing activities(148,604

)

(4,106

)

Net cash used in investing activities(148,604

)

(100,995

)

Cash flows from financing activities:Payments on long-term borrowings(1,523

)

(1,597

)

Other financing activities(42,959

)

(99,999

)

Net cash used in financing activities(44,482

)

(101,596

)

Effect of foreign exchange rate changes on cash(5,102

)

(2,858

)

Net increase (decrease) in cash, cash equivalents, and restricted cash70,046

(50,519

)

Cash, cash equivalents, and restricted cash at beginning of period667,115

662,651

Cash, cash equivalents, and restricted cash at end of period$

737,161

$

612,132

Reconciliation of net income to net cashprovided by operating activities:Net income$

1,891,528

$

1,652,341

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization66,388

68,256

Reduction in the carrying amount of right-of-use assets19,556

18,674

Changes in working capital(61,418

)

(34,539

)

Other(1,647,820

)

(1,549,802

)

Net cash provided by operating activities$

268,234

$

154,930

Bio-Rad Laboratories, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Six Months Ended June 30, 2021 2020

Cash flows from operating activities: Cash received from customers $ 1,456,601 $ 1,127,141

Cash paid to suppliers and employees (1,131,533 ) (959,300 )

Interest paid, net (1,536 ) (10,847 )

Income tax payments, net (77,573 ) (10,005 )

Other operating activities 22,275 7,941

Net cash provided by operating activities 268,234 154,930

Cash flows from investing activities: Payments for acquisitions - (96,889 )

Other investing activities (148,604 ) (4,106 )

Net cash used in investing activities (148,604 ) (100,995 )

Cash flows from financing activities: Payments on long-term borrowings (1,523 ) (1,597 )

Other financing activities (42,959 ) (99,999 )

Net cash used in financing activities (44,482 ) (101,596 )

Effect of foreign exchange rate changes on (5,102 ) (2,858 )cash Net increase (decrease) in cash, cash 70,046 (50,519 )equivalents, and restricted cashCash, cash equivalents, and restricted cash at 667,115 662,651 beginning of periodCash, cash equivalents, and restricted cash at $ 737,161 $ 612,132 end of period Reconciliation of net income to net cash provided by operating activities: Net income $ 1,891,528 $ 1,652,341

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 66,388 68,256

Reduction in the carrying amount of 19,556 18,674 right-of-use assets Changes in working capital (61,418 ) (34,539 )

Other (1,647,820 ) (1,549,802 )

Net cash provided by operating activities $ 268,234 $ 154,930

Bio-Rad Laboratories, Inc.Reconciliation of GAAP financial measures to non-GAAP financial measures(In thousands, except per share data)(Unaudited)In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including non-GAAP net income and non-GAAP diluted income per share (non-GAAP EPS), which exclude amortization of acquisition-related intangible assets; certain acquisition-related expenses and benefits; restructuring charges; asset impairment charges; valuation changes of equity-owned securities; gains and losses on equity-method investments; and significant legal-related charges or benefits and associated legal costs. Non-GAAP net income and non-GAAP EPS also exclude certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability, tax provisions/benefits related to the previous items, and significant discrete tax events. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures to be helpful in assessing the performance of the ongoing operation of our business. We believe that disclosing non-GAAP financial measures provides useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. We also believe that disclosing non-GAAP financial measures provides useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.Three Months

Ended

Three Months

Ended

Six Months

Ended

Six Months

Ended

June 30,

% of

June 30,

% of

June 30,

% of

June 30,

% of

2021

revenue

2020

revenue

2021

revenue

2020

revenue

GAAP cost of goods sold$

314,333

$

243,892

$

640,502

$

498,168

Amortization of purchased intangibles(4,640

)

(4,962

)

(9,225

)

(8,859

)

Legal matters-

-

536

-

Restructuring benefits (costs)(1,209

)

12

(25,189

)

1,468

Non-GAAP cost of goods sold$

308,484

$

238,942

$

606,624

$

490,777

GAAP gross profit$

401,598

56.1

%

$

292,988

54.6

%

$

802,225

55.6

%

$

610,356

55.1

%

Amortization of purchased intangibles4,640

4,962

9,225

8,859

Legal matters-

-

(536

)

-

Restructuring (benefits) costs1,209

(12

)

25,189

(1,468

)

Non-GAAP gross profit$

407,447

56.9

%

$

297,938

55.5

%

$

836,103

58.0

%

$

617,747

55.7

%

GAAP selling, general and administrative expense$

213,425

$

189,262

$

439,278

$

382,954

Amortization of purchased intangibles(2,355

)

(2,277

)

(4,710

)

(4,235

)

Legal matters(8,761

)

(2,585

)

(13,176

)

(4,418

)

Acquisition related benefits (costs) (1)40

955

40

1,002

Restructuring benefits (costs)6,929

(3,320

)

(27,806

)

(2,807

)

Non-GAAP selling, general and administrative expense$

209,278

$

182,035

$

393,626

$

372,496

GAAP research and development expense$

63,391

$

51,984

$

137,303

$

101,287

Restructuring benefits (costs)2,061

656

(14,789

)

1,055

Non-GAAP research and development expense$

65,452

$

52,640

$

122,514

$

102,342

GAAP income from operations$

124,782

17.4

%

$

51,742

9.6

%

$

225,644

15.6

%

$

126,115

11.4

%

Amortization of purchased intangibles6,995

7,239

13,935

13,094

Legal matters8,761

2,585

12,640

4,418

Acquisition related (benefits) costs (1)(40

)

(955

)

(40

)

(1,002

)

Restructuring (benefits) costs(7,781

)

2,652

67,784

284

Non-GAAP income from operations$

132,717

18.5

%

$

63,263

11.8

%

$

319,963

22.2

%

$

142,909

12.9

%

GAAP change in fair market value of equity securities$

(1,030,691

)

$

(1,183,488

)

$

(2,210,094

)

$

(2,011,159

)

Valuation (loss) gain on equity-owned securities1,030,691

1,183,488

2,210,094

2,011,159

Non-GAAP change in fair market value of equity securities$

-

$

-

$

-

$

-

GAAP other (income) expense, net$

96

$

(17,229

)

$

(17,311

)

$

(20,502

)

(Loss) gain on equity-method investments(1,840

)

(1,138

)

(3,680

)

(2,451

)

Other non-recurring items (3)-

11,680

-

11,680

Non-GAAP other (income) expense, net$

(1,744

)

$

(6,687

)

$

(20,991

)

$

(11,273

)

GAAP income before income taxes$

1,156,775

$

1,245,945

$

2,453,978

$

2,144,644

Amortization of purchased intangibles6,995

7,239

13,935

13,094

Legal matters8,761

2,585

12,640

4,418

Acquisition related (benefits) costs (1)(40

)

(955

)

(40

)

(1,002

)

Restructuring (benefits) costs(7,781

)

2,652

67,784

284

Valuation loss (gain) on equity-owned securities(1,030,691

)

(1,183,488

)

(2,210,094

)

(2,011,159

)

Loss (gain) on equity-method investments1,840

1,138

3,680

2,451

Other non-recurring items (3)-

(11,680

)

-

(11,680

)

Non-GAAP income before income taxes$

135,859

$

63,436

$

341,883

$

141,050

GAAP provision for income taxes$

(242,661

)

$

(279,516

)

$

(562,450

)

$

(492,303

)

Income tax effect of non-GAAP adjustments (2)213,387

264,428

484,523

457,230

Non-GAAP provision for income taxes$

(29,274

)

$

(15,088

)

$

(77,927

)

$

(35,073

)

GAAP net income$

914,114

127.7

%

$

966,429

180.0

%

$

1,891,528

131.1

%

$

1,652,341

149.1

%

Amortization of purchased intangibles6,995

7,239

13,935

13,094

Legal matters8,761

2,585

12,640

4,418

Acquisition related (benefits) costs (1)(40

)

(955

)

(40

)

(1,002

)

Restructuring (benefits) costs(7,781

)

2,652

67,784

284

Valuation loss (gain) on equity-owned securities(1,030,691

)

(1,183,488

)

(2,210,094

)

(2,011,159

)

Loss (gain) on equity-method investments1,840

1,138

3,680

2,451

Other non-recurring items (3)-

(11,680

)

-

(11,680

)

Income tax effect of non-GAAP adjustments (2)213,387

264,428

484,523

457,230

Non-GAAP net income$

106,585

14.9

%

$

48,348

9.0

%

$

263,956

18.3

%

$

105,977

9.6

%

GAAP diluted income per share$

30.32

$

32.15

$

62.70

$

54.84

Amortization of purchased intangibles0.23

0.24

0.46

0.43

Legal matters0.29

0.09

0.42

0.15

Acquisition related (benefits) costs (1)-

(0.03

)

-

(0.03

)

Restructuring (benefits) costs(0.26

)

0.09

2.25

0.01

Valuation loss (gain) on equity-owned securities(34.19

)

(39.37

)

(73.26

)

(66.75

)

Loss (gain) on equity-method investments0.06

0.04

0.12

0.08

Other non-recurring items (3)-

(0.39

)

-

(0.39

)

Income tax effect of non-GAAP adjustments (2)7.09

8.79

16.06

15.18

Non-GAAP diluted income per share$

3.54

$

1.61

$

8.75

$

3.52

GAAP diluted weighted average shares used in per share calculation30,148

30,058

30,167

30,131

Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive-

-

-

-

Non-GAAP diluted weighted average shares used in per share calculation30,148

30,058

30,167

30,131

Bio-Rad Laboratories, Inc.Reconciliation of GAAP financial measures to non-GAAP financial measures(In thousands, except per share data)(Unaudited) In addition to the financial measures prepared in accordance with generallyaccepted accounting principles (GAAP), we use certain non-GAAP financialmeasures, including non-GAAP net income and non-GAAP diluted income per share(non-GAAP EPS), which exclude amortization of acquisition-related intangibleassets; certain acquisition-related expenses and benefits; restructuringcharges; asset impairment charges; valuation changes of equity-ownedsecurities; gains and losses on equity-method investments; and significantlegal-related charges or benefits and associated legal costs. Non-GAAP netincome and non-GAAP EPS also exclude certain other gains and losses that areeither isolated or cannot be expected to occur again with any predictability,tax provisions/benefits related to the previous items, and significant discretetax events. We exclude the above items because they are outside of our normaloperations and/or, in certain cases, are difficult to forecast accurately forfuture periods. We utilize a number of different financial measures, both GAAP and non-GAAP, inanalyzing and assessing the overall performance of our business, in makingoperating decisions, forecasting and planning for future periods, anddetermining payments under compensation programs. We consider the use of thenon-GAAP measures to be helpful in assessing the performance of the ongoingoperation of our business. We believe that disclosing non-GAAP financialmeasures provides useful supplemental data that, while not a substitute forfinancial measures prepared in accordance with GAAP, allows for greatertransparency in the review of our financial and operational performance. Wealso believe that disclosing non-GAAP financial measures provides usefulinformation to investors and others in understanding and evaluating ouroperating results and future prospects in the same manner as management and incomparing financial results across accounting periods and to those of peercompanies. Three Months Three Months Six Months Six Months Ended Ended Ended Ended

June 30, % of June 30, % of June 30, % of June 30, % of

2021 revenue 2020 revenue 2021 revenue 2020 revenue

GAAP cost of $ 314,333 $ 243,892 $ 640,502 $ 498,168 goods sold Amortization (4,640 ) (4,962 ) (9,225 ) (8,859 ) of purchased intangibles Legal matters - - 536 -

Restructuring (1,209 ) 12 (25,189 ) 1,468 benefits (costs)Non-GAAP cost $ 308,484 $ 238,942 $ 606,624 $ 490,777 of goods sold GAAP gross $ 401,598 56.1 % $ 292,988 54.6 % $ 802,225 55.6 % $ 610,356 55.1 %profit Amortization 4,640 4,962 9,225 8,859 of purchased intangibles Legal matters - - (536 ) -

Restructuring 1,209 (12 ) 25,189 (1,468 ) (benefits) costsNon-GAAP gross $ 407,447 56.9 % $ 297,938 55.5 % $ 836,103 58.0 % $ 617,747 55.7 %profit GAAP selling,general and $ 213,425 $ 189,262 $ 439,278 $ 382,954 administrativeexpense Amortization (2,355 ) (2,277 ) (4,710 ) (4,235 ) of purchased intangibles Legal matters (8,761 ) (2,585 ) (13,176 ) (4,418 )

Acquisition related 40 955 40 1,002 benefits (costs) (1) Restructuring 6,929 (3,320 ) (27,806 ) (2,807 ) benefits (costs)Non-GAAPselling, $ 209,278 $ 182,035 $ 393,626 $ 372,496 general andadministrativeexpense GAAP researchand $ 63,391 $ 51,984 $ 137,303 $ 101,287 developmentexpense Restructuring 2,061 656 (14,789 ) 1,055 benefits (costs)Non-GAAPresearch and $ 65,452 $ 52,640 $ 122,514 $ 102,342 developmentexpense GAAP income $ 124,782 17.4 % $ 51,742 9.6 % $ 225,644 15.6 % $ 126,115 11.4 %fromoperations Amortization 6,995 7,239 13,935 13,094 of purchased intangibles Legal matters 8,761 2,585 12,640 4,418

Acquisition related (40 ) (955 ) (40 ) (1,002 ) (benefits) costs (1) Restructuring (7,781 ) 2,652 67,784 284 (benefits) costsNon-GAAP $ 132,717 18.5 % $ 63,263 11.8 % $ 319,963 22.2 % $ 142,909 12.9 %income fromoperations GAAP change infair market $ (1,030,691 ) $ (1,183,488 ) $ (2,210,094 ) $ (2,011,159 )value ofequitysecurities Valuation (loss) gain 1,030,691 1,183,488 2,210,094 2,011,159 on equity-owned securitiesNon-GAAPchange in fair $ - $ - $ - $ - market valueof equitysecurities GAAP other $ 96 $ (17,229 ) $ (17,311 ) $ (20,502 )(income)expense, net (Loss) gain on (1,840 ) (1,138 ) (3,680 ) (2,451 ) equity-method investments Other - 11,680 - 11,680 non-recurring items (3)Non-GAAP other $ (1,744 ) $ (6,687 ) $ (20,991 ) $ (11,273 )(income)expense, net GAAP income $ 1,156,775 $ 1,245,945 $ 2,453,978 $ 2,144,644 before incometaxes Amortization 6,995 7,239 13,935 13,094 of purchased intangibles Legal matters 8,761 2,585 12,640 4,418

Acquisition related (40 ) (955 ) (40 ) (1,002 ) (benefits) costs (1) Restructuring (7,781 ) 2,652 67,784 284 (benefits) costs Valuation loss (gain) (1,030,691 ) (1,183,488 ) (2,210,094 ) (2,011,159 ) on equity-owned securities Loss (gain) on 1,840 1,138 3,680 2,451 equity-method investments Other - (11,680 ) - (11,680 ) non-recurring items (3)Non-GAAP $ 135,859 $ 63,436 $ 341,883 $ 141,050 income beforeincome taxes GAAP provision $ (242,661 ) $ (279,516 ) $ (562,450 ) $ (492,303 )for incometaxes Income tax effect of 213,387 264,428 484,523 457,230 non-GAAP adjustments (2)Non-GAAP $ (29,274 ) $ (15,088 ) $ (77,927 ) $ (35,073 )provision forincome taxes GAAP net $ 914,114 127.7 % $ 966,429 180.0 % $ 1,891,528 131.1 % $ 1,652,341 149.1 %income Amortization 6,995 7,239 13,935 13,094 of purchased intangibles Legal matters 8,761 2,585 12,640 4,418

Acquisition related (40 ) (955 ) (40 ) (1,002 ) (benefits) costs (1) Restructuring (7,781 ) 2,652 67,784 284 (benefits) costs Valuation loss (gain) (1,030,691 ) (1,183,488 ) (2,210,094 ) (2,011,159 ) on equity-owned securities Loss (gain) on 1,840 1,138 3,680 2,451 equity-method investments Other - (11,680 ) - (11,680 ) non-recurring items (3) Income tax effect of 213,387 264,428 484,523 457,230 non-GAAP adjustments (2)Non-GAAP net $ 106,585 14.9 % $ 48,348 9.0 % $ 263,956 18.3 % $ 105,977 9.6 %income GAAP diluted $ 30.32 $ 32.15 $ 62.70 $ 54.84 income pershare Amortization 0.23 0.24 0.46 0.43 of purchased intangibles Legal matters 0.29 0.09 0.42 0.15

Acquisition related - (0.03 ) - (0.03 ) (benefits) costs (1) Restructuring (0.26 ) 0.09 2.25 0.01 (benefits) costs Valuation loss (gain) (34.19 ) (39.37 ) (73.26 ) (66.75 ) on equity-owned securities Loss (gain) on 0.06 0.04 0.12 0.08 equity-method investments Other - (0.39 ) - (0.39 ) non-recurring items (3) Income tax effect of 7.09 8.79 16.06 15.18 non-GAAP adjustments (2)Non-GAAP $ 3.54 $ 1.61 $ 8.75 $ 3.52 diluted incomeper share GAAP dilutedweightedaverage shares 30,148 30,058 30,167 30,131 used in persharecalculation Shares included in non-GAAP net income per share, but - - - - excluded from GAAP net loss per share as they would have been anti-dilutiveNon-GAAPdilutedweighted 30,148 30,058 30,167 30,131 average sharesused in persharecalculation(1)

Release of contingent consideration and other acquisition-related (benefits) expenses.(2)

Excluded items identified in the reconciliation schedule are tax effected by application of a non-GAAP effective tax rate. The non-GAAP tax provision is adjusted for items, the nature of which and/or tax jurisdiction requires the application of a specific tax rate or treatment.(3)

Gain on the sale of a division (2020). 2021 Financial Outlook

Forecasted non-GAAP operating margin excludes 102 basis points related to amortization of purchased intangibles. Forecasted non-GAAP operating margin does not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance, such as foreign currency fluctuations, future gains or losses associated with certain legal matters, acquisitions and restructuring activities.

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CONTACT: Investor Contact: Bio-Rad Laboratories, Inc. Edward Chung, Vice President, Investor Relations 510-741-6577 ir@bio-rad.com

CONTACT: Media Contact: Bio-Rad Laboratories, Inc. Tina Cuccia, Manager, Corporate Communications 510-741-6063 tina_cuccia@bio-rad.com