SEGMENT INFORMATION TECHNE CORPORATION AND SUBISIDARIES (in thousands of $'s, except per share data)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 47,709 48,029 54,813 150,551 100% 6,790 5,782 6,878 19,450 Cost of sales 11,096 10,695 12,105 33,896 23% 2,209 1,754 2,967 6,930 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 36,613 37,334 42,708 116,655 77% 4,581 4,028 3,911 12,520 Gross margin percentage 76.7% 77.7% 77.9% 77.5% SG&A expense 6,454 7,980 6,901 21,335 14% 820 1,690 522 3,032 R&D expense 4,717 4,574 4,761 14,052 9% 29 (45) 130 114 Amortization expense 492 492 492 1,476 1% 187 186 187 560 Interest expense 223 238 245 706 0.5% (22) 60 52 90 Interest income (974) (1,130) (1,082) (3,186) (2%) 79 59 (144) (6) Other non-operating ex., net 211 281 229 721 0.5% (255) (135) (94) (484) ------- ------- ------- ------- -------- ------- ------- ------- ------- 11,123 12,435 11,546 35,104 23% 838 1,815 653 3,306 ------- ------- ------- ------- -------- ------- ------- ------- ------- Earnings before income taxes 25,490 24,899 31,162 81,551 54% 3,743 2,213 3,258 9,214 Income taxes 8,489 8,385 10,815 27,689 18% 934 633 1,350 2,917 ------- ------- ------- ------- -------- ------- ------- ------- ------- 17,001 16,514 20,347 53,862 36% 2,809 1,580 1,908 6,297 ======= ======= ======= ======= ======== ======= ======= ======= ======= Diluted earnings per share 0.43 0.42 0.52 1.36 Weighted average diluted shares outstanding 39,669 39,761 39,425 39,631
BIOTECHNOLOGY (1) (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 37,599 37,697 43,013 118,309 100% 6,908 7,625 6,675 21,208 Intersegment sales (5,299) (6,555) (6,396)(18,250) (495) (1,351) (798) (2,644) ------- ------- ------- ------- ------- ------- ------- ------- 32,300 31,142 36,617 100,059 6,413 6,274 5,877 18,564 Cost of sales 8,470 8,147 9,125 25,742 22% 2,359 2,077 2,757 7,193 Intersegment sales (5,323) (6,140) (6,478)(17,941) (567) (930) (999) (2,496) ------- ------- ------- ------- -------- ------- ------- ------- ------- 3,147 2,007 2,647 7,801 1,792 1,147 1,758 4,697 Gross margin 29,153 29,135 33,970 92,258 78% 4,621 5,127 4,119 13,867 Gross margin percentage 77.5% 78.4% 78.8% 78.2% SG&A expense 3,639 4,194 4,199 12,032 10% 666 779 487 1,932 R&D expense 4,532 4,404 4,593 13,529 11% 32 (26) 161 167 Amortization expense 492 492 492 1,476 1% 187 186 187 560 Interest, net (268) (373) (285) (926) -- 146 191 35 372 ------- ------- ------- ------- -------- ------- ------- ------- ------- 8,395 8,717 8,999 26,111 22% 1,031 1,130 870 3,031 ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 20,758 20,418 24,971 66,147 56% 3,590 3,997 3,249 10,836 ======= ======= ======= ======= ======== ======= ======= ======= =======
(1) Fiscal 2006 includes R&D Systems' Biotechnology Division, Fortron Bio Science, Inc., and BiosPacific, Inc. R&D SYSTEMS EUROPE (in thousands of British pounds)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 6,690 7,529 8,256 22,475 100% 610 721 1,125 2,456 Cost of sales 3,292 3,765 4,191 11,248 50% 361 632 966 1,959 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 3,398 3,764 4,065 11,227 50% 249 89 159 497 Gross margin percentage 50.8% 50.0% 49.2% 50.0% SG&A expense 1,004 1,185 1,070 3,259 14% 54 24 48 126 Interest income (326) (329) (342) (997) (4%) (72) (66) (62) (200) Exchange loss/(gain) 15 26 (49) (8) -- (11) 70 (65) (6) ------- ------- ------- ------- -------- ------- ------- ------- ------- 693 882 679 2,254 10% (29) 28 (79) (80) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 2,705 2,882 3,386 8,973 40% 278 61 238 577 ======= ======= ======= ======= ======== ======= ======= ======= =======
R&D SYSTEMS EUROPE (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 11,875 13,106 14,496 39,477 100% 856 242 953 2,051 Cost of sales 5,844 6,554 7,358 19,756 50% 532 636 1,232 2,400 ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 6,031 6,552 7,138 19,721 50% 324 (394) (279) (349) Gross margin percentage 50.8% 50.0% 49.2% 50.0% SG&A expense 1,782 2,059 1,879 5,720 14% 60 (135) (60) (135) Interest income (579) (572) (600) (1,751) (4%) (119) (75) (69) (263) Exchange loss (gain) 28 46 (87) (13) -- (19) 128 (116) (7) ------- ------- ------- ------- -------- ------- ------- ------- ------- 1,231 1,533 1,192 3,956 10% (78) (82) (245) (405) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 4,800 5,019 5,946 15,765 40% 402 (312) (34) 56 ======= ======= ======= ======= ======== ======= ======= ======= =======
HEMATOLOGY (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ---------------------------------------- ------------------------------- First Second Third Percent First Second Third Quarter Quarter Quarter YTD of Sales Quarter Quarter Quarter YTD ------- ------- ------- ------- -------- ------- ------- ------- ------- Sales 3,534 3,781 3,700 11,015 100% (479) (734) 48 (1,165) Cost of sales 2,105 2,134 2,100 6,339 58% (115) (29) (23) (167) ------- ------- ------- ------- -------- ------- ------- ------- ------- Gross margin 1,429 1,647 1,600 4,676 42% (364) (705) 71 (998) Gross margin percentage 40.4% 43.6% 43.2% 42.5% SG&A expense 384 424 441 1,249 11% (25) (12) (64) (101) R&D expense 185 170 168 523 5% (3) (19) (31) (53) Interest, net (37) (50) (40) (127) (2%) 19 27 4 50 ------- ------- ------- ------- -------- ------- ------- ------- ------- 532 544 569 1,645 14% (9) (4) (91) (104) ------- ------- ------- ------- -------- ------- ------- ------- ------- Pretax result 897 1,103 1,031 3,031 28% (355) (701) 162 (894) ======= ======= ======= ======= ======== ======= ======= ======= =======
CORPORATE AND OTHER (2) (in thousands of $'s)
Increase (Decrease) Fiscal 2006 From Fiscal 2005 ------------------------------- ------------------------------- First Second Third First Second Third Quarter Quarter Quarter YTD Quarter Quarter Quarter YTD ------- ------- ------- ------- ------- ------- ------- ------- Interest income 90 135 157 382 48 84 114 246 Rental income 342 337 287 966 323 284 (31) 576 ------- ------- ------- ------- ------- ------- ------- ------- 432 472 444 1,348 371 368 83 822 SG&A expense 649 1,303 382 2,334 119 1,058 159 1,336 Interest expense 223 238 245 706 59 60 52 171 Other-Hemerus losses 82 82 83 247 8 9 (2) 15 Other-Building expenses 443 490 520 1,453 79 12 (7) 84 ------- ------- ------- ------- ------- ------- ------- ------- 1,397 2,113 1,230 4,740 265 1,139 202 1,606 ------- ------- ------- ------- ------- ------- ------- ------- Pretax result (965) (1,641) (786) (3,392) 106 (771) (119) (784) ======= ======= ======= ======= ======= ======= ======= =======
(2) Unallocated corporate expenses and Techne's share of losses by Hemerus Medical, LLC.