Business Wire | Oct 28, 2021 04:16PM EDT

Bio-Rad Reports Third-Quarter 2021 Financial Results

Oct. 28, 2021

HERCULES, Calif.--(BUSINESS WIRE)--Oct. 28, 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 third quarter ended September 30, 2021.

Third-quarter 2021 net sales were $747.0 million, an increase of 15.4 percent compared to $647.3 million reported for the third quarter of 2020. On a currency-neutral basis, quarterly sales increased 13.8 percent compared to the same period in 2020. Third-quarter gross margin was 58.6 percent compared to 56.7 percent during the third quarter in 2020.

Life Science segment net sales for the third quarter were $373.5 million, an increase of 15.3 percent compared to the same period in 2020. On a currency-neutral basis, Life Science segment sales increased by 13.9 percent compared to the same quarter in 2020. Currency-neutral sales growth was primarily attributed to sales of our Droplet Digital PCR(r) and Process Media product lines, as well as back royalties from a legal settlement. On a geographic basis, Life Science currency-neutral year-over-year sales grew across the Americas and Asia but declined in Europe. Excluding COVID-19-related sales, European region revenue posted a double-digit percent increase from the year ago period.

Clinical Diagnostics segment net sales for the third quarter were $372.2 million, an increase of 15.5 percent compared to the same period in 2020. On a currency-neutral basis, net sales increased 13.7 percent versus the same quarter last year. Currency-neutral sales were up for all product lines and across all regions, primarily driven by higher utilization in lab operations as businesses recover from the COVID-19 pandemic.

Income from operations during the third quarter of 2021 was $156.8 million versus $109.6 million during the same quarter last year.

Net income for the third quarter of 2021 was $3,928.0 million, or $129.96 per share on a diluted basis, versus $1,314.8 million, or $43.64 per share on a diluted basis, during the same period in 2020. Net income for the third 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 third quarter of 2021 was 21.8 percent, compared to 21.9 percent for the same period in 2020. The tax rates for both periods were driven by the large unrealized gain in equity securities.

"We are pleased with our performance in the third quarter, which reflected strength across many product lines," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "During the quarter, demand continued for products associated with COVID-19 testing and research, though at a more moderate level," he said.

GAAP Results

Q3 2021 Q3 2020

Revenue (millions) $747.0 $647.3

Gross margin 58.6% 56.7%

Operating margin 21.0% 16.9%

Net income (millions) $3,928.0 $1,314.8

Income per diluted share $129.96 $43.64



Non-GAAP Results

Q3 2021 Q3 2020

Revenue (millions) $715.2 $647.3

Gross margin 57.9% 57.5%

Operating margin 19.4% 18.8%

Net income (millions) $112.2 $90.3

Income per diluted share $3.71 $3.00

A reconciliation between GAAP operating results and non-GAAP operating resultsis provided following the financial statements that are part of this pressrelease. Non-GAAP adjustments include amortization of purchased intangibles;acquisition-related expenses and benefits; restructuring, impairment chargesand valuation changes in equity-owned securities; gains and losses onequity-method investments; significant litigation charges or benefits and legalcosts; and discrete income tax events and the income tax effect on thesenon-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 third quarter of 2021 was $112.2 million, or $3.71 per share on a diluted basis, compared to $90.3 million, or $3.00 per share on a diluted basis, during the same period in 2020.

The non-GAAP effective tax rate for the third quarter of 2021 was 18.0 percent, compared to 22.5 percent for the same period in 2020. The lower rate in 2021 was driven by the geographic mix of earnings. In addition, the effective tax rate was lower as a result of an increase in compensation related tax deductions.

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 nine months ended September 30, 2021 and 2020:

(in thousands, Three Months Ended Nine Months Ended except per share September 30, September 30, data)

2021 2020 2021 2020

$ 3,928,033 $ 1,314,824 $ 5,819,561 $ 2,967,165 GAAP net income

Legal settlements (28,083 ) - (28,619 ) -

Amortization of purchased 7,097 7,163 21,032 20,257 intangibles

Legal matters 2,325 5,977 15,501 10,395

Acquisition related costs - 165 (40 ) (837 ) (benefits)

Restructuring 15 (1,111 ) 67,799 (827 ) costs (benefits)

Valuation gain on equity-owned (4,868,659 ) (1,580,350 ) (7,078,753 ) (3,591,509 ) securities

Loss on equity-method 1,899 183 5,579 2,634 investments

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

Income tax effect on non-GAAP 1,069,577 343,401 1,554,100 800,631 adjustments

Non-GAAP net income $ 112,204 $ 90,252 $ 376,160 $ 196,229



$ 129.96 $ 43.64 $ 192.76 $ 98.46 GAAP diluted incomeper share

$ 3.71 $ 3.00 $ 12.46 $ 6.51 Non-GAAP dilutedincome per share

On a reported basis, net sales for the first three quarters of 2021 increased 24.7 percent to $2,189.8 million compared to $1,755.8 million for the same period in 2020. On a currency-neutral basis, net sales grew 21.2 percent.

Year-to-date net income for 2021 was $5,819.6 million, or $192.76 per share on a fully diluted basis, compared to $2,967.2 million, or $98.46 per share during the same period in 2020. The COVID-19 pandemic positively impacted overall results for the first three quarters of the year. On a non-GAAP basis net income for the first three quarters of 2021 was $376.2 million, or $12.46 per share, compared to $196.2 million, or $6.51 per share during the same period in 2020.

"Throughout the year we adapted well to challenges posed by the COVID-19 pandemic, supporting our customers and ensuring the safety of our employees while continuing to make progress on our core strategies," Mr. Schwartz said. "As we head into the end of 2021, we will continue to build on the progress we've made during the first three quarters and expect to generate improved operating profit over 2020," he added.

2021 Financial Outlook

For the full year 2021, the company has updated its guidance and now anticipates non-GAAP currency-neutral revenue growth between 12 to 13 percent and an estimated non-GAAP operating margin of approximately 19.5 percent. Management will discuss this outlook in greater detail on the third-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 third-quarter ended September 30, 2021 results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) October 28, 2021. To listen, call 844-200-6205 within the U.S. or 929-526-1599 outside the U.S., access code: 535686. 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 and pharmaceutical companies, 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 7,800 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 12 to 13 percent and an estimated non-GAAP operating margin of approximately 19.5 percent for the full year 2021; continuing to build on the progress we've made during the first three quarters as we head into the end of 2021; and expecting to generate improved operating profit over 2020. 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, supply chain issues, reductions in government funding or capital spending of our customers, international legal and regulatory risks, 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 September 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 Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Net sales $ 747,049 $ 647,263 $ 2,189,776 $ 1,755,787

Cost of goods 309,614 279,952 950,116 778,120 soldGross profit 437,435 367,311 1,239,660 977,667

Selling,general and 216,150 198,165 655,428 581,119 administrativeexpenseResearch and 64,481 59,546 201,784 160,833 developmentexpenseIncome from 156,804 109,600 382,448 235,715 operations Interest 426 5,728 1,187 17,158 expenseForeigncurrency 2,232 776 542 2,478 exchangelosses, netChange in fairmarket value (4,868,659 ) (1,580,350 ) (7,078,753 ) (3,591,509 )of equitysecuritiesOther expense 579 (1,015 ) (16,732 ) (21,517 )(income), netIncome before 5,022,226 1,684,461 7,476,204 3,829,105 income taxes Provision for (1,094,193 ) (369,637 ) (1,656,643 ) (861,940 )income taxesNet income $ 3,928,033 $ 1,314,824 $ 5,819,561 $ 2,967,165

Basic earningsper share:Net income per $ 131.75 $ 44.24 $ 195.29 $ 99.75 basic share Weighted 29,814 29,721 29,800 29,746 average commonshares - basic Dilutedearnings pershare:Net income per $ 129.96 $ 43.64 $ 192.76 $ 98.46 diluted share Weightedaverage common 30,224 30,128 30,190 30,137 shares -dilutedBio-Rad Laboratories, Inc.Condensed Consolidated Balance Sheets(In thousands)September 30,

December 31,

2021

2020

(Unaudited)Current assets:Cash and cash equivalents$

859,902

$

662,205

Short-term investments482,756

334,473

Accounts receivable, net417,714

419,424

Inventories, net588,911

622,253

Other current assets117,003

101,480

Total current assets2,466,286

2,139,835

Property, plant and equipment, net476,648

491,371

Operating lease right-of-use assets204,191

202,136

Goodwill, net291,916

291,916

Purchased intangibles, net177,073

199,497

Other investments16,230,635

9,561,140

Other assets106,631

86,723

Total assets$

19,953,380

$

12,972,618

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

380,344

$

362,326

Current maturities of long-term debt1,739

1,798

Income and other taxes payable54,050

57,335

Other current liabilities213,783

210,077

Total current liabilities649,916

631,536

Long-term debt, net of current maturities10,645

12,258

Other long-term liabilities3,960,441

2,448,884

Total liabilities4,621,002

3,092,678

Total stockholders' equity15,332,378

9,879,940

Total liabilities and stockholders' equity$

19,953,380

$

12,972,618

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

2021 2020

(Unaudited)Current assets:Cash and cash equivalents $ 859,902 $ 662,205

Short-term investments 482,756 334,473

Accounts receivable, net 417,714 419,424

Inventories, net 588,911 622,253

Other current assets 117,003 101,480

Total current assets 2,466,286 2,139,835

Property, plant and equipment, net 476,648 491,371

Operating lease right-of-use assets 204,191 202,136

Goodwill, net 291,916 291,916

Purchased intangibles, net 177,073 199,497

Other investments 16,230,635 9,561,140

Other assets 106,631 86,723

Total assets $ 19,953,380 $ 12,972,618

Current liabilities:Accounts payable, accrued payroll and employee $ 380,344 $ 362,326benefitsCurrent maturities of long-term debt 1,739 1,798

Income and other taxes payable 54,050 57,335

Other current liabilities 213,783 210,077

Total current liabilities 649,916 631,536

Long-term debt, net of current maturities 10,645 12,258

Other long-term liabilities 3,960,441 2,448,884

Total liabilities 4,621,002 3,092,678

Total stockholders' equity 15,332,378 9,879,940

Total liabilities and stockholders' equity $ 19,953,380 $ 12,972,618

Bio-Rad Laboratories, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)Nine Months Ended

September 30,

2021

2020

Cash flows from operating activities:Cash received from customers$

2,177,199

$

1,741,431

Cash paid to suppliers and employees(1,597,938

)

(1,406,427

)

Interest paid, net(1,848

)

(11,066

)

Income tax payments, net(103,902

)

(51,539

)

Other operating activities25,086

18,195

Net cash provided by operating activities498,597

290,594

Cash flows from investing activities:Payments for acquisitions-

(96,655

)

Other investing activities(229,954

)

86,514

Net cash used in investing activities(229,954

)

(10,141

)

Cash flows from financing activities:Payments on long-term borrowings(1,645

)

(1,780

)

Other financing activities(58,419

)

(99,377

)

Net cash used in financing activities(60,064

)

(101,157

)

Effect of foreign exchange rate changes on cash(11,174

)

3,154

Net increase in cash, cash equivalents, and restricted cash197,405

182,450

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

662,651

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

864,520

$

845,101

Reconciliation of net income to net cash provided by operating activities:Net income$

5,819,561

$

2,967,165

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization100,075

101,938

Reduction in the carrying amount of right-of-use assets29,311

27,694

Changes in working capital(14,538

)

(44,360

)

Other(5,435,812

)

(2,761,843

)

Net cash provided by operating activities$

498,597

$

290,594

Bio-Rad Laboratories, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)

Nine Months Ended

September 30,

2021 2020

Cash flows from operating activities:Cash received from customers $ 2,177,199 $ 1,741,431

Cash paid to suppliers and employees (1,597,938 ) (1,406,427 )

Interest paid, net (1,848 ) (11,066 )

Income tax payments, net (103,902 ) (51,539 )

Other operating activities 25,086 18,195

Net cash provided by operating activities 498,597 290,594

Cash flows from investing activities:Payments for acquisitions - (96,655 )

Other investing activities (229,954 ) 86,514

Net cash used in investing activities (229,954 ) (10,141 )

Cash flows from financing activities:Payments on long-term borrowings (1,645 ) (1,780 )

Other financing activities (58,419 ) (99,377 )

Net cash used in financing activities (60,064 ) (101,157 )

Effect of foreign exchange rate changes on cash (11,174 ) 3,154

Net increase in cash, cash equivalents, and 197,405 182,450 restricted cashCash, cash equivalents, and restricted cash at 667,115 662,651 beginning of periodCash, cash equivalents, and restricted cash at $ 864,520 $ 845,101 end of period Reconciliation of net income to net cashprovided by operating activities:Net income $ 5,819,561 $ 2,967,165

Adjustments to reconcile net income to net cashprovided by operating activities:Depreciation and amortization 100,075 101,938

Reduction in the carrying amount of right-of-use 29,311 27,694 assetsChanges in working capital (14,538 ) (44,360 )

Other (5,435,812 ) (2,761,843 )

Net cash provided by operating activities $ 498,597 $ 290,594

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

Nine Months Ended

Nine Months Ended

September 30,

% of

September 30,

% of

September 30,

% of

September 30,

% of

2021

revenue

2020

revenue

2021

revenue

2020

revenue

GAAP net sales$

747,049

$

647,263

$

2,189,776

$

1,755,787

Legal settlements(31,843

)

-

(31,843

)

-

Non-GAAP net sales$

715,206

$

647,263

$

2,157,933

$

1,755,787

GAAP cost of goods sold$

309,614

$

279,952

$

950,116

$

778,120

Amortization of purchased intangibles(4,678

)

(4,841

)

(13,903

)

(13,700

)

Legal settlements(4,071

)

-

(3,535

)

-

Restructuring benefits (costs)(52

)

237

(25,241

)

1,705

Non-GAAP cost of goods sold$

300,813

$

275,348

$

907,437

$

766,125

GAAP gross profit$

437,435

58.6

%

$

367,311

56.7

%

$

1,239,660

56.6

%

$

977,667

55.7

%

Amortization of purchased intangibles4,678

4,841

13,903

13,700

Legal settlements(27,772

)

-

(28,308

)

-

Restructuring (benefits) costs52

(237

)

25,241

(1,705

)

Non-GAAP gross profit$

414,393

57.9

%

$

371,915

57.5

%

$

1,250,496

57.9

%

$

989,662

56.4

%

GAAP selling, general and administrative expense$

216,150

$

198,165

$

655,428

$

581,119

Amortization of purchased intangibles(2,419

)

(2,322

)

(7,129

)

(6,557

)

Legal matters(2,325

)

(5,977

)

(15,501

)

(10,395

)

Acquisition related benefits (costs) (1)-

(165

)

40

837

Restructuring benefits (costs)299

815

(27,507

)

(1,992

)

Non-GAAP selling, general and administrative expense$

211,705

$

190,516

$

605,331

$

563,012

GAAP research and development expense$

64,481

$

59,546

$

201,784

$

160,833

Restructuring benefits (costs)(262

)

59

(15,051

)

1,114

Non-GAAP research and development expense$

64,219

$

59,605

$

186,733

$

161,947

GAAP income from operations$

156,804

21.0

%

$

109,600

16.9

%

$

382,448

17.5

%

$

235,715

13.4

%

Legal settlements(27,772

)

-

(28,308

)

-

Amortization of purchased intangibles7,097

7,163

21,032

20,257

Legal matters2,325

5,977

15,501

10,395

Acquisition related (benefits) costs (1)-

165

(40

)

(837

)

Restructuring (benefits) costs15

(1,111

)

67,799

(827

)

Non-GAAP income from operations$

138,469

19.4

%

$

121,794

18.8

%

$

458,432

21.2

%

$

264,703

15.1

%

GAAP change in fair market value of equity securities$

(4,868,659

)

$

(1,580,350

)

$

(7,078,753

)

$

(3,591,509

)

Valuation (loss) gain on equity-owned securities4,868,659

1,580,350

7,078,753

3,591,509

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

-

$

-

$

-

$

-

GAAP other (income) expense, net$

579

$

(1,015

)

$

(16,732

)

$

(21,517

)

(Loss) gain on equity-method investments(1,899

)

(183

)

(5,579

)

(2,634

)

Legal settlements311

-

311

-

Other non-recurring items (3)-

-

-

11,680

Non-GAAP other (income) expense, net$

(1,009

)

$

(1,198

)

$

(22,000

)

$

(12,471

)

GAAP income before income taxes$

5,022,226

$

1,684,461

$

7,476,204

$

3,829,105

Legal settlements(28,083

)

-

(28,619

)

-

Amortization of purchased intangibles7,097

7,163

21,032

20,257

Legal matters2,325

5,977

15,501

10,395

Acquisition related (benefits) costs (1)-

165

(40

)

(837

)

Restructuring (benefits) costs15

(1,111

)

67,799

(827

)

Valuation loss (gain) on equity-owned securities(4,868,659

)

(1,580,350

)

(7,078,753

)

(3,591,509

)

Loss (gain) on equity-method investments1,899

183

5,579

2,634

Other non-recurring items (3)-

-

-

(11,680

)

Non-GAAP income before income taxes$

136,820

$

116,488

$

478,703

$

257,538

GAAP provision for income taxes$

(1,094,193

)

$

(369,637

)

$

(1,656,643

)

$

(861,940

)

Income tax effect of non-GAAP adjustments (2)1,069,577

343,401

1,554,100

800,631

Non-GAAP provision for income taxes$

(24,616

)

$

(26,236

)

$

(102,543

)

$

(61,309

)

GAAP net income$

3,928,033

525.8

%

$

1,314,824

203.1

%

$

5,819,561

265.8

%

$

2,967,165

169.0

%

Legal settlements(28,083

)

-

(28,619

)

-

Amortization of purchased intangibles7,097

7,163

21,032

20,257

Legal matters2,325

5,977

15,501

10,395

Acquisition related (benefits) costs (1)-

165

(40

)

(837

)

Restructuring (benefits) costs15

(1,111

)

67,799

(827

)

Valuation loss (gain) on equity-owned securities(4,868,659

)

(1,580,350

)

(7,078,753

)

(3,591,509

)

Loss (gain) on equity-method investments1,899

183

5,579

2,634

Other non-recurring items (3)-

-

-

(11,680

)

Income tax effect of non-GAAP adjustments (2)1,069,577

343,401

1,554,100

800,631

Non-GAAP net income$

112,204

15.7

%

$

90,252

13.9

%

$

376,160

17.4

%

$

196,229

11.2

%

GAAP diluted income per share$

129.96

$

43.64

$

192.76

$

98.46

Legal settlements(0.93

)

-

(0.95

)

-

Amortization of purchased intangibles0.23

0.24

0.70

0.67

Legal matters0.08

0.20

0.51

0.34

Acquisition related (benefits) costs (1)-

0.01

-

(0.03

)

Restructuring (benefits) costs-

(0.04

)

2.25

(0.03

)

Valuation loss (gain) on equity-owned securities(161.09

)

(52.45

)

(234.47

)

(119.17

)

Loss (gain) on equity-method investments0.06

0.01

0.18

0.09

Other non-recurring items (3)-

-

-

(0.39

)

Income tax effect of non-GAAP adjustments (2)35.40

11.39

51.48

26.57

Non-GAAP diluted income per share$

3.71

$

3.00

$

12.46

$

6.51

GAAP diluted weighted average shares used in per share calculation30,224

30,128

30,190

30,137

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 calculation30,224

30,128

30,190

30,137

(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 OutlookForecasted non-GAAP operating margin excludes 96 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20211028006011/en/

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

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