QIAGEN Reports Fourth Quarter and Full-Year 2013 Results
News Jan 30, 2014
QIAGEN announce results of operations for the fourth quarter and full-year 2013, delivering sales growth in all regions and customer classes along with improved profitability.
“We are pleased with our performance in 2013. We achieved our targets for improved sales and adjusted earnings through growth in all customer classes and regions and made significant progress on strategic initiatives to accelerate innovation and growth for the future,” said Peer M. Schatz, Chief Executive Officer of QIAGEN N.V.
“We have created a strong focus on five growth drivers that have the potential to transform QIAGEN. Adoption of our QIAsymphony automation platform continues to set new standards, and we recently completed important U.S. regulatory submissions for the full QIAsymphony workflow and are expanding the test menu. We continue to drive global expansion of the QuantiFERON-TB latent tuberculosis test, which is set to exceed $100 million of sales in 2014. We are also seeing strong momentum in our industry-leading Personalized Healthcare portfolio with a significant number of new partnership agreements signed in 2013. In bioinformatics and next-generation sequencing, two emerging growth drivers for QIAGEN, we are moving ahead with initiatives to expand our portfolio of universal products and services – particularly our leadership in bioinformatics analysis and interpretation – as well as developing the sample-to-insight GeneReader NGS benchtop workflow. We are well-positioned to achieve our goals for 2014 and deliver on our mission of making improvements in life possible."
Full-year 2013 results
Adjusted net sales rose 5% at constant exchange rates (CER) in 2013 on growth in all regions and customer classes, particularly Molecular Diagnostics (+7% CER) and Applied Testing (+6% CER), as higher sales of consumables and other revenues (+6% CER) more than offset lower instrument sales (-4% CER). Total CER sales growth was split about evenly between the existing product portfolio and the acquisitions of Ingenuity (acquired April 29, 2013), CLC bio (acquired August 22, 2013) and AmniSure International LLC (acquired May 3, 2012). Currency movements had a negative impact of approximately 1 percentage point on reported sales growth.
Operating income in 2013 amounted to $63.3 million compared to $169.8 million in 2012, due mainly to restructuring charges of $119.4 million related to a major efficiency project completed in 2013. Adjusted operating income, which excludes items such as restructuring and acquisition-related costs, share-based compensation and amortization of intangible assets, was largely unchanged at $355.8 million in 2013 compared to $356.4 million in 2012. The adjusted operating income margin declined to 27% of sales in 2013 from 28% in 2012, mainly due to approximately 100 basis points of dilution as a result of investments following the acquisitions of Ingenuity and CLC bio.
Net income attributable to owners of QIAGEN N.V. in 2013 amounted to $69.1 million, or $0.29 per diluted share (based on 242.2 million shares), compared to $129.5 million, or $0.54 per share (based on 240.7 million shares) in 2012. Adjusted net income rose 6% to $275.1 million, or $1.14 per share on an adjusted diluted EPS basis, from $260.7 million, or $1.08 per share in 2012.
At December 31, 2013, cash and cash equivalents declined to $330.3 million from $394.0 million at December 31, 2012. Net cash provided by operating activities rose to $259.0 million in 2013 compared to $245.0 million in 2012, with free cash flow improving to $174.5 million from $142.9 million in the year-ago period. Net cash used in investing activities was $251.7 million in 2013, lower than the $300.9 million of net cash used in 2012. Net cash used in financing activities was $68.8 million in 2013, mainly for the share repurchase programs, compared to cash provided by financing activities of $226.6 million in 2012.
“We are using our healthy financial position to support the next growth wave of innovative Sample & Assay Technologies amid growing demand in healthcare and many areas of life science to transform biological samples into valuable molecular insights,” said Roland Sackers, Chief Financial Officer of QIAGEN N.V. “We completed our major efficiency program in 2013 to strengthen QIAGEN and better deploy resources to our five growth drivers. We are determined to build on the progress of 2013 and deliver improved results in 2014. We have set ambitious mid-term targets to accelerate sales growth, generate higher operating cash flow and create greater value for our shareholders.”
Fourth quarter 2013 results
Adjusted net sales grew 5% at constant exchange rates (CER) in the fourth quarter of 2013 on growth in all regions and was led by Applied Testing and Pharma. Approximately two percentage points of total CER sales growth came from the ongoing product portfolio and three percentage points of contributions came from the acquisitions of Ingenuity Systems, Inc. and CLC bio in 2013. Currency movements did not have a significant impact on reported sales growth in the quarter.
Operating income declined 30% to $34.0 million in the fourth quarter of 2013 from $48.9 million in the same quarter of 2012, with approximately $18.7 million of restructuring charges taken in the 2013 period as part of the final group of projects in a major efficiency project completed in 2013. Adjusted operating income, which excludes items such as restructuring and acquisition-related costs, share-based compensation and amortization of intangible assets, was largely unchanged at $106.3 million compared to $106.0 million in the year-ago quarter. The adjusted operating income margin was 29% of sales in the fourth quarter of 2013 compared to 31% in the 2012 period, mainly due to significantly higher R&D costs as well as adverse foreign currency movements in particular from the Turkish lira, Brazilian real and Japanese yen against the U.S. dollar.
Net income attributable to owners of QIAGEN N.V. rose 57% to $60.2 million, or $0.25 per diluted share (based on 244.4 million shares), from $38.4 million, or $0.16 per diluted share (based on 241.8 million shares) in the year-ago period. Adjusted net income attributable to owners of QIAGEN N.V. rose 6% to $87.8 million from $82.8 million in the year-ago period. Adjusted diluted EPS rose to $0.36 per share compared to $0.34 per share in the 2012 quarter.