Meridian Bioscience Provides Net Revenues and Earnings Guidance for Fiscal 2015 and Reaffirms Fiscal 2014 Guidance
CINCINNATI--(BUSINESS WIRE)--Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today provided the financial community with guidance regarding the Company’s fiscal 2015 sales and earnings estimates. Based on the Company’s business planning and budgeting activities for the fiscal year ending September 30, 2015, management expects net revenues to be in the range of $193 to $200 million, or 2% to 5% growth, and per share diluted earnings to be between $0.85 and $0.91. The per share estimates assume an increase in average diluted shares outstanding from approximately 42.2 million at fiscal 2014 year end to 42.4 million at fiscal 2015 year end. The revenues and earnings guidance provided in this press release is from expected internal growth and does not include the impact of any acquisitions the Company might complete during fiscal 2015.
Management reaffirms fiscal 2014 guidance of per share diluted earnings of between $0.85 - $0.90 on net sales of $190 million to $195 million, with current revenue and earnings expectations being near the low end of the range.
John A. Kraeutler, Chief Executive Officer, stated, “Our revenue guidance range of $193 to $200 million for fiscal 2015 is based upon expectations that the markets we target will continue to be highly competitive as established and new diagnostics competitors attempt to advance their new molecular platforms. For our Life Science units, double-digit growth should continue for our Bioline molecular components business, somewhat offset by lower growth rates in our core immunoassay components business.
“With regard to Diagnostics, we expect that continued growth from our illumigene® molecular platform will be driven by illumigene Group A Strep, illumigene Group B Strep and our recently-cleared illumigene Pertussis test. Also, revenue increases are expected in our H. pylori product portfolio, with somewhat more conservative expectations for our foodborne category. A number of new product launches are anticipated, including illumigene Chlamydia/Gonorrhea and illumigene Herpes Simplex Virus I & II; however, we have not included any revenue contributions from these products in our guidance estimates. Research and development has begun on two new assays in the illumigene platform, a test for Malaria and a test for Campylobacter. Also, recently we announced a license agreement with the University of Tennessee Research Foundation for an electrokinetic sensor technology that has great potential as a highly sensitive, more rapid and simpler point-of-care platform. Global expansion and new industrial customer successes will continue to be the primary factors in the growth of our Life Science business. In addition, we have been encouraged by opportunities coming from two new market segments, agribio and epigenetics researchers, that should continue to propel this business unit forward. Our expansion into China and other Asian markets is going well and contributions from these markets are meaningful.
“Finally, investment continues in research and development to maintain a consistent flow of innovative products. At the same time, we are expanding our global reach with a local presence in China and building strength in our sales and marketing teams. As our markets become more competitive, lowering costs of manufacturing becomes more critical. Active investments are occurring in each of our operating locations to reduce costs and increase efficiency.”
William J. Motto, Executive Chairman, commented, “The outlook for fiscal 2015 is for modest revenue and profit growth. In the upcoming year we intend to accelerate our search for new growth opportunities. Of course, we will continue to drive efficient operations, introduce new products, and maintain our strong balance sheet. Management will be recommending to the Board of Directors that the current indicated annual dividend rate of $0.80 be maintained.”
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which may be identified by words such as “estimates”, “anticipates”, “projects”, “plans”, “seeks”, “may”, “will”, “expects”, “intends”, “believes”, “should” and similar expressions or the negative versions thereof and which also may be identified by their context. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. The Company assumes no obligation to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following: Meridian’s continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian’s competition, and its ability to effectively sell such products. While Meridian has introduced a number of internally developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Meridian relies on proprietary, patented and licensed technologies, and the Company’s ability to protect its intellectual property rights, as well as the potential for intellectual property litigation, would impact its results. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Recessionary pressures on the economy and the markets in which our customers operate, as well as adverse trends in buying patterns from customers can change expected results. Costs and difficulties in complying with laws and regulations, including those administered by the United States Food and Drug Administration, can result in unanticipated expenses and delays and interruptions to the sale of new and existing products. The international scope of Meridian’s operations, including changes in the relative strength or weakness of the U.S. dollar and general economic conditions in foreign countries, can impact results and make them difficult to predict. One of Meridian’s growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses will be successfully integrated into Meridian’s operations. There may be risks that acquisitions may disrupt operations and may pose potential difficulties in employee retention and there may be additional risks with respect to Meridian’s ability to recognize the benefits of acquisitions, including potential synergies and cost savings or the failure of acquisitions to achieve their plans and objectives. The Company cannot predict the possible impact of U.S. healthcare legislation enacted in 2010 – the Patient Protection and Affordable Care Act, as amended by the Healthcare and Education Reconciliation Act – and any modification or repeal of any of the provisions thereof, and any similar initiatives in other countries on its results of operations. In addition to the factors described in this paragraph, Part I, Item 1A Risk Factors of our Form 10-K contains a list and description of uncertainties, risks and other matters that may affect the Company.
Meridian is a fully integrated life science company that develops, manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products and diagnostic tests provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral and respiratory infections. Meridian’s diagnostic products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections, serology, parasitology and fungal disease diagnosis. In addition, Meridian is a supplier of rare reagents, specialty biologicals and related technologies used by biopharmaceutical companies engaged in research for new drugs and vaccines. The Company markets its products and technologies to hospitals, reference laboratories, research centers, diagnostics manufacturers and biotech companies in more than 60 countries around the world. The Company’s shares are traded on the NASDAQ Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.