Bio-Techne(TECH)2025-02-06 21:30Financial Performance - Consolidated net sales increased by 9% to $297.0 million for the quarter ended December 31, 2024, and by 7% 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 $34.9 million, up from $27.5 million in the prior year, while net earnings for the six months decreased to $68.5 million from $78.5 million due to restructuring costs [111]. - Non-GAAP adjusted net earnings for the quarter ended December 31, 2024, were $68.1 million, compared to $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 $0.42, compared to $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 $121.5 million for the quarter and by 9% 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 $25.0 million for the quarter and by 4% 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 $211.6 million for the quarter and by 3% to $416.1 million for the six months ended December 31, 2024 [120]. - Diagnostics and Spatial Biology segment net sales grew by 12% to $84.1 million for the quarter and by 13% 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 $148.2 million from operating activities in the six months ended December 31, 2024, an increase from $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 $16.0 million, down from $28.5 million in the same period of 2023, with expectations of approximately $20 million for the remainder of fiscal 2025 [137]. - The company had cash and cash equivalents of $177.5 million as of December 31, 2024, up from $152.9 million as of June 30, 2024 [131]. - The company paid cash dividends of $25.4 million during the six months ended December 31, 2024, slightly up from $25.2 million in the same period of 2023 [143]. - The company invested $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 $700 million available on its line-of-credit as of December 31, 2024, under a Credit Agreement maturing on August 31, 2027 [132]. - The second part of the forward contract for acquiring Wilson Wolf, estimated at approximately $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].