Bio-Techne(TECH)2025-02-06 21:30Financial Performance - Consolidated net sales increased by 9% to 586.5 million for the six months ended December 31, 2024 compared to the same prior year periods [110]. - Organic revenue for the quarter ended December 31, 2024 increased by 9%, driven by strong performance in the Diagnostics and Spatial Biology portfolio and improving biopharma end market conditions [112]. - Consolidated net earnings for the quarter ended December 31, 2024 rose to 27.5 million in the prior year, while net earnings for the six months decreased to 78.5 million due to restructuring costs [111]. - Non-GAAP adjusted net earnings for the quarter ended December 31, 2024, were 63.7 million for the same quarter in 2023, representing a growth of 6.5% [127]. - The diluted earnings per share - adjusted for the quarter ended December 31, 2024, was 0.40 for the same quarter in 2023, reflecting a 5% increase [127]. Expenses and Margins - Gross margins for the quarter and six months ended December 31, 2024 were 65.3% and 64.3%, respectively, compared to 64.8% and 65.8% for the same prior year periods [113]. - Selling, general and administrative expenses increased by 5% to 240.6 million for the six months ended December 31, 2024, primarily due to restructuring charges [117]. - Research and development expenses rose by 9% to 48.9 million for the six months ended December 31, 2024, attributed to strategic growth investments [118]. Segment Performance - Protein Sciences segment net sales increased by 7% to 416.1 million for the six months ended December 31, 2024 [120]. - Diagnostics and Spatial Biology segment net sales grew by 12% to 167.3 million for the six months ended December 31, 2024 [122]. Taxation - The effective income tax rate was 18.6% for the quarter and 17.5% for the six months ended December 31, 2024, compared to 17.7% and 5.4% for the same prior year periods [124]. - The forecasted consolidated income tax rate for the remainder of fiscal 2025 is expected to range from 23% to 27% [125]. - The non-GAAP adjusted tax rate for the quarter ended December 31, 2024, was 21.5%, compared to 22.0% for the same quarter in 2023 [129]. Cash Flow and Investments - The company generated cash of 142.5 million in the same period of 2023, primarily due to favorable timing of payments [135]. - Capital expenditures for fixed assets for the six months ended December 31, 2024, were 28.5 million in the same period of 2023, with expectations of approximately 177.5 million as of December 31, 2024, up from 25.4 million during the six months ended December 31, 2024, slightly up from 15.0 million into Spear Bio during the six months ended December 31, 2024, with no comparable activity in fiscal 2024 [138]. - The company has 1 billion, is forecasted to occur between fiscal 2026 and fiscal 2028 [133]. Compliance and Controls - As of December 31, 2024, the Company's disclosure controls and procedures were deemed effective by the CEO and CFO [161]. - There were no changes in internal controls over financial reporting during Q2 of fiscal 2025 that materially affected the Company's reporting [162]. - The Company has not materially changed its exposure to market risk from interest rates and currency exchange rates since the last Annual Report [158]. Legal Matters - As of February 6, 2025, the Company is not involved in any legal proceedings that could materially impact its business or financial condition [164]. Non-GAAP Measures - The Company is reassessing non-GAAP adjustments to ensure they remain relevant and meaningful for performance evaluation [154]. - The Company encourages readers to review reconciliations of adjusted financial measures to GAAP measures in the consolidated financial statements [155].