Sales and Revenue - In 2022, approximately 41% of consolidated net sales were derived from the United States, while 59% came from international locations, with Europe being the largest international region [370]. - Net sales for 2022 were reported at 100% compared to 2021, with a gross profit margin of 55.9% in 2022, slightly down from 56.1% in 2021 [403]. - Consolidated net sales for the year ended December 31, 2022 were $2.80 billion, a decrease of 4.1% from $2.92 billion in 2021, with COVID-related sales dropping from approximately $265.7 million in 2021 to $109.2 million in 2022 [406]. - Life Science segment sales for the year ended December 31, 2022 were $1.35 billion, a decrease of 3.8% compared to 2021, but a currency neutral sales increase of 0.3% was noted [404]. - Clinical Diagnostics segment sales for the year ended December 31, 2022 were $1.45 billion, a decrease of 4.3% compared to 2021, with a currency neutral sales increase of 0.4% [404]. Expenses and Profitability - The cost of goods sold increased to 44.1% in 2022 from 43.9% in 2021, indicating a rise in production costs [403]. - Research and development expenses rose to 9.2% of net sales in 2022, compared to 8.9% in 2021, reflecting increased investment in innovation [403]. - The net loss for 2022 was reported at $(129.5) million, a significant decline from a net income of $145.6 million in 2021 [403]. - Selling, general and administrative expenses (SG&A) decreased to $827.8 million or 29.5% of sales for the year ended December 31, 2022, down from $877.1 million or 30.0% of sales in 2021 [409]. - Research and development (R&D) expenses for the year ended December 31, 2022 were $256.9 million or 9.2% of sales, a slight decrease from $260.6 million or 8.9% of sales in 2021 [410]. Acquisitions and Strategic Initiatives - The company acquired Curiosity Diagnostics for a total consideration of $137.1 million, which includes contingent consideration of up to $70.0 million based on certain milestones [377]. - The strategic acquisition of Curiosity Diagnostics is expected to enhance the company's Clinical Diagnostics product offerings and facilitate entry into the molecular disease testing market [378]. Cash Flow and Financing - The issuance of Senior Notes in March 2022 raised $1.2 billion, with net cash proceeds of $395.7 million for the 2027 Notes and $790.5 million for the 2032 Notes [380]. - Net cash provided by operations was $194.4 million for the year ended December 31, 2022, a decrease of $475.1 million from $669.5 million in 2021 [446]. - Net cash used in investing activities was $1,207.6 million for the year ended December 31, 2022, compared to $797.4 million in 2021, an increase of $410.2 million [450]. - Net cash provided by financing activities was $973.6 million for the year ended December 31, 2022, compared to cash used of $55.4 million in 2021 [452]. Supply Chain and Operational Challenges - The company experienced delays and shortages in the supply of certain components and raw materials due to COVID-19, leading to a backlog of sales orders [376]. - The company anticipates normalizing the backlog of sales orders during 2023 as supply chain issues improve [376]. Market and Currency Impact - Foreign currency exchange net gains were $0.2 million for the year ended December 31, 2022, compared to net losses of $2.8 million in 2021 [413]. - A hypothetical 10% depreciation/appreciation of foreign currencies relative to the U.S. dollar would result in an unrealized gain/loss of $43.5 million on the company's derivative position as of December 31, 2022 [478]. - A 10% change in the market value of the company's investment in Sartorius would result in an approximate loss/gain of $0.85 billion reported in the financial statements for the year ended December 31, 2022 [480]. - The company manages foreign currency exposures through operational means and foreign currency forward contracts [477]. Debt and Interest - Interest expense increased significantly to $38.1 million for the year ended December 31, 2022, compared to $1.6 million in 2021, primarily due to the issuance of $1.2 billion Senior Notes in March 2022 [412]. - The company's total long-term debt, including current portion, was $1,210.6 million, with $400.9 million due in 3-5 years and $808.2 million due in more than 5 years [470]. - Interest payments totaled $335.2 million, with $43.6 million due in less than one year [470]. - The company has no significant interest rate risk associated with its debt instruments, as most are fixed-rate [479].
Bio-Rad(BIO_B) - 2022 Q4 - Annual Report