Bio-Techne(US:TECH)2020-05-11 10:35Financial Performance - Consolidated net sales increased by 5% to $194.7 million for the quarter and by 8% to $562.9 million for the nine months ended March 31, 2020, compared to the same prior year periods [86]. - Organic growth for the quarter and nine months ended March 31, 2020 was 6% and 8%, respectively, with foreign currency translation having an unfavorable impact of 1% in both periods [86]. - Consolidated net earnings decreased to $36.4 million for the quarter ended March 31, 2020, down from $44.7 million, while net earnings increased to $170.5 million for the nine months ended March 31, 2020, compared to $79.6 million in the same prior year period [87]. - The COVID-19 pandemic negatively impacted sales growth by approximately 3% during the third quarter due to customer site shutdowns [88]. - Non-GAAP adjusted net earnings for the quarter ended March 31, 2020, were $54.97 million, representing a growth of 16.8% compared to $47.06 million in the same quarter of 2019 [107]. Segment Performance - Protein Sciences segment net sales for the quarter and nine months ended March 31, 2020 were $145.5 million and $428.0 million, respectively, with reported growth of 6% and 7% compared to the same prior year periods [100]. - Diagnostics and Genomics segment net sales for the quarter and nine months ended March 31, 2020 were $49.4 million and $135.8 million, respectively, with organic growth of 5% and 10% [103]. Taxation - The effective income tax rate was 22.2% for the quarter and 20.7% for the nine months ended March 31, 2020, compared to 10.5% and 10.8% for the same prior year periods [105]. - The annual forecasted tax rate for the remainder of fiscal 2020 is expected to range from 24% to 28% [106]. - The reported GAAP tax rate for the quarter ended March 31, 2020, was 22.2%, up from 10.5% in the same quarter of 2019 [109]. - The non-GAAP adjusted tax rate for the quarter ended March 31, 2020, was 21.3%, compared to 19.9% in the same quarter of 2019 [109]. Cash Flow and Investments - The company generated cash of $160.4 million from operating activities in the nine months ended March 31, 2020, up from $125.7 million in the same period of 2019, primarily due to increased earnings [113]. - Cash and cash equivalents, along with available-for-sale investments, totaled $261.1 million as of March 31, 2020, compared to $166.0 million as of June 30, 2019 [110]. - Capital expenditures for fixed assets were $34.3 million for the nine months ended March 31, 2020, compared to $13.7 million in the same period of 2019 [116]. - The company did not make any cash payments for acquisitions in the nine months ended March 31, 2020, compared to $272.3 million paid in the same period of 2019 [115]. - The fair value of the company's investment in ChemoCentryx, Inc. (CCXI) was $70.2 million as of March 31, 2020, up from $38.2 million as of June 30, 2019 [110]. - During the nine months ended March 31, 2020, the company repurchased $50.1 million of outstanding common stock [117]. Foreign Currency Impact - As of March 31, 2020, approximately 44% of consolidated net sales were made in foreign currencies, including 17% in euros, 6% in British pound sterling, 7% in Chinese yuan, and 12% in other currencies [130]. - A hypothetical 10% appreciation in the U.S. dollar would result in a decrease in translation of earnings of foreign subsidiaries by $2,583, a decrease in translation of net assets by $43,648, and additional transaction losses of $870 [131]. - The average exchange rate for the British pound sterling was 1.28, for the Chinese yuan was 0.14, and for the Canadian dollar was 0.74 as of March 31, 2020 [131]. Internal Controls and Legal Proceedings - The Company’s disclosure controls and procedures were evaluated as effective as of March 31, 2020, by the Chief Executive Officer and Chief Financial Officer [133]. - There were no changes in the Company's internal control over financial reporting during the third quarter of fiscal year 2020 that materially affected its financial reporting [134]. - As of May 11, 2020, the Company was not involved in any legal proceedings expected to materially affect its business or financial condition [136].