Bio-Techne(TECH) - 2025 Q3 - Quarterly Results

Revenue Performance - Third quarter organic revenue increased by 6% to $316.2 million, with a reported revenue increase of 4%[6] - The Protein Sciences segment reported net sales of $227.7 million, a 6% increase from $214.6 million in the prior year, with 7% organic growth[11] - The Diagnostics and Spatial Biology segment's net sales were $89.2 million, a 2% increase from $87.5 million, with organic revenue growth of 2%[12] - Total consolidated net sales for the quarter ended March 31, 2025, were $316,181,000, an increase of 4.6% from $303,428,000 in the same quarter of 2024[29] - Protein Sciences segment revenue for the quarter was $227,687,000, an increase from $214,589,000 in the same quarter of 2024[40] - Diagnostics and Spatial Biology segment revenue for the quarter was $89,231,000, slightly up from $87,511,000 in the same quarter of 2024[40] Earnings and Profitability - GAAP earnings per share (EPS) was $0.14, down from $0.31 in the same quarter last year, while adjusted EPS rose to $0.56 from $0.48[6] - Adjusted operating margin improved to 34.9%, an increase of 190 basis points compared to the prior year period[4] - GAAP operating income decreased by 42% to $38.7 million, with an operating margin of 12.2% compared to 22.1% in the prior year[8] - Adjusted operating income increased by 11% to $110.3 million, compared to $99.6 million in the same quarter last year[9] - Adjusted operating margin percentage for the quarter was 34.9%, up from 33.0% in the same quarter of 2024, indicating stronger profitability[32] - Non-GAAP adjusted net earnings for the quarter were $88,318,000, compared to $76,425,000 in the same quarter of 2024, representing a 15.5% increase[35] - Net earnings for the nine months ended March 31, 2025, were $91,078, down from $127,517 in the prior year, a decrease of 28.5%[43] - Adjusted EBITDA for the nine months was $314,054, up from $299,916, indicating a growth of 4.7%[43] Cash Flow and Investments - Net cash provided by operating activities for the nine months was $189,355, compared to $223,485 in the previous year, a decline of 15.2%[45] - Cash and cash equivalents at the end of the period were $140,670, slightly up from $139,915 a year ago[45] - The company reported a net cash used in investing activities of $(35,589), compared to $(194,222) in the previous year, showing a significant reduction in cash outflow[45] - The company made an investment of $15,000 in Spear Bio during the nine months[45] Balance Sheet and Equity - Total assets as of March 31, 2025, were $2,644,259,000, a decrease from $2,703,867,000 as of June 30, 2024[28] - Stockholders' equity decreased to $2,018,025,000 from $2,068,850,000, reflecting changes in retained earnings and other comprehensive income[28] - Long-term debt obligations increased to $330,000,000 from $319,000,000, indicating a slight rise in leverage[28] Future Outlook - The company remains well positioned geographically and by end market, supported by an experienced leadership team[4] - Future outlook includes navigating a dynamic macroenvironment and focusing on profitability initiatives[4] Other Financial Metrics - Gross margin percentage under GAAP for the quarter was 67.9%, compared to 67.4% in the prior year, reflecting improved operational efficiency[29] - The company recognized certain litigation charges amounting to $38,927 in the current quarter[42] - Stock-based compensation expense increased to $36,283 for the nine months, compared to $30,979 in the prior year, a rise of 17.4%[45] - Protein Sciences segment operating income increased to $103,910, up from $94,829 in the same quarter last year, representing a growth of 11.5%[42] - Adjusted operating income for the quarter was $110,320, compared to $99,587 in Q3 2024, reflecting a year-over-year increase of 10.4%[42]