Bio-Techne Corporation (TECH) Bundle
A Brief History of Bio-Techne Corporation
Company Overview
Company Overview
Bio-Techne Corporation is a leading manufacturer of biotechnology products and instruments for the research and clinical markets. As of September 30, 2024, the company operates under two main segments: Protein Sciences and Diagnostics and Spatial Biology.
Financial Performance
For the quarter ended September 30, 2024, Bio-Techne reported net earnings of $33.6 million, translating to basic earnings per share of $0.21 and diluted earnings per share of $0.21. In comparison, for the same quarter in 2023, net earnings were $50.993 million with basic and diluted earnings per share of $0.32 and $0.31, respectively.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Earnings | $33.6 million | $50.993 million |
| Basic EPS | $0.21 | $0.32 |
| Diluted EPS | $0.21 | $0.31 |
Cash Flow and Investments
Cash and cash equivalents stood at $187.5 million as of September 30, 2024, an increase from $152.9 million as of June 30, 2024. The company generated $63.9 million from operating activities in Q1 fiscal 2025, compared to $59.4 million in Q1 fiscal 2024.
Debt and Financing
As of September 30, 2024, Bio-Techne had an outstanding balance of $300 million under its Credit Agreement, which matures on August 31, 2027. The company has a line of credit of $1 billion, with an additional $400 million available under certain conditions.
| Debt Arrangement | Amount | Maturity Date |
|---|---|---|
| Outstanding Balance | $300 million | August 31, 2027 |
| Line of Credit | $1 billion | N/A |
| Additional Credit | $400 million | Subject to conditions |
Recent Acquisitions
In fiscal 2024, Bio-Techne acquired 19.9% of Wilson Wolf Corporation for $232 million after meeting certain revenue targets. The company is obligated to acquire the remaining 80.1% by December 31, 2027, contingent on additional financial milestones.
Restructuring Actions
In the first quarter of fiscal 2025, Bio-Techne announced an enterprise-wide restructuring plan to optimize manufacturing operations. The total restructuring-related costs incurred in Q1 fiscal 2025 amounted to $10.269 million, with $4.898 million classified under cost of sales and $5.371 million under selling, general, and administrative expenses.
| Restructuring Costs | Q1 2025 |
|---|---|
| Total Costs | $10.269 million |
| Cost of Sales | $4.898 million |
| SG&A Expenses | $5.371 million |
Stock Performance and Shareholder Returns
During the first quarter of fiscal 2025, Bio-Techne paid cash dividends of $12.7 million to shareholders. The company continues to maintain a share repurchase plan, with $180.7 million available for future buybacks as of September 30, 2024.
| Shareholder Returns | Q1 2025 |
|---|---|
| Cash Dividends Paid | $12.7 million |
| Available for Buybacks | $180.7 million |
Outlook
The company expects to meet its cash and working capital needs through a combination of generated cash, existing cash reserves, and available credit facilities, ensuring operational stability and growth opportunities in the biotechnology sector.
A Who Owns Bio-Techne Corporation (TECH)
Major Shareholders
As of 2024, the ownership structure of Bio-Techne Corporation (TECH) consists of a mix of institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type | Ownership Percentage | Number of Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 9.75% | 15,508,701 |
| BlackRock, Inc. | Institutional Investor | 8.50% | 13,489,153 |
| State Street Corporation | Institutional Investor | 6.25% | 9,900,000 |
| SSgA Funds Management, Inc. | Institutional Investor | 5.80% | 9,200,000 |
| Wellington Management Group LLP | Institutional Investor | 4.60% | 7,200,000 |
| Individual Shareholders | Retail | 65.10% | 102,000,000 |
Stock Performance
Bio-Techne Corporation's stock has shown consistent performance in the market. As of the latest trading data in October 2024, the stock price is approximately $75.00 per share. The following table illustrates key financial metrics relevant to its stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $75.00 |
| Market Capitalization | $11.91 billion |
| 52-Week High | $85.00 |
| 52-Week Low | $68.00 |
| Dividend Yield | 0.43% |
| P/E Ratio (TTM) | 38.20 |
Recent Shareholder Changes
In recent quarters, Bio-Techne has experienced notable changes in its shareholder base, primarily driven by institutional buying and selling activities. The following points summarize the recent shareholder changes:
- The Vanguard Group increased its holdings by 1.5% from the previous quarter.
- BlackRock has reduced its stake by approximately 0.8% over the last six months.
- State Street Corporation has remained steady in its holdings with no significant changes.
- Retail ownership has increased as individual investors have shown a growing interest in the biotechnology sector.
Shareholder Meetings and Votes
Bio-Techne Corporation conducts annual shareholder meetings where key votes are held regarding board members, executive compensation, and strategic initiatives. The latest meeting held on October 15, 2024, resulted in:
- Approval of executive compensation package with 78% of votes in favor.
- Election of three new board members with 90% approval.
- Approval of a share buyback program valued at $100 million.
Ownership Trends
Ownership trends indicate a shift towards institutional investment as more funds allocate capital to biotechnology due to the sector's growth potential. The following table provides insights into the changes in ownership over the past year:
| Ownership Type | Percentage Change |
|---|---|
| Institutional Investors | +3.2% |
| Mutual Funds | +2.7% |
| Individual Investors | -5.9% |
Conclusion of Ownership Analysis
The ownership landscape of Bio-Techne Corporation reflects a healthy mix of institutional and individual investors, with a strong emphasis on institutional investment. This trend is indicative of the market's confidence in the company's growth prospects in the biotechnology field.
Bio-Techne Corporation (TECH) Mission Statement
Company Overview
Bio-Techne Corporation (NASDAQ: TECH) specializes in biotechnology reagents, instruments, and services for both research and clinical diagnostic markets. The company aims to provide innovative solutions that enable advancements in scientific discoveries and healthcare diagnostics.
Mission Statement
Bio-Techne's mission is to provide the life sciences community with high-quality scientific tools that facilitate extraordinary discoveries and enhance the diagnosis and treatment of diseases. The focus is on leveraging core competencies to drive innovation and expand market presence.
Strategic Pillars
- Grow and leverage the core business.
- Capitalize on high-potential markets.
- Expand through innovation and acquisition.
- Deliver best-in-class customer experience.
- Develop a transformative culture among employees.
Financial Performance
As of the first quarter of fiscal 2025, Bio-Techne reported consolidated net sales of $289.5 million, which represents a 5% increase year-over-year. Organic growth for the same period was 4%, with foreign currency exchange contributing approximately 1% to the sales increase.
| Financial Metrics | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $289.5 million | $276.9 million |
| Gross Margin | 63.2% | 66.9% |
| Operating Income | $39.99 million | $55.86 million |
| Net Earnings | $33.6 million | $50.99 million |
| Earnings per Share (Diluted) | $0.21 | $0.31 |
Segment Performance
The company operates under two primary segments: Protein Sciences and Diagnostics and Spatial Biology. For the quarter ending September 30, 2024, the net sales for each segment were as follows:
| Segment | Net Sales (Q1 FY 2025) | Net Sales (Q1 FY 2024) |
|---|---|---|
| Protein Sciences | $204.5 million | $204.7 million |
| Diagnostics and Spatial Biology | $83.2 million | $72.8 million |
Research and Development
Research and development expenses for the quarter were reported at $23.9 million, a decrease of 1% from the previous year, reflecting ongoing cost management initiatives.
Cash Flow and Capital Expenditures
In terms of cash flow, Bio-Techne generated $63.9 million from operating activities for the first quarter of fiscal 2025, compared to $59.4 million for the same quarter in the previous year. Capital expenditures for fixed assets were $9.2 million.
Tax Rates
The effective tax rate for the quarter was 16.4%, a significant change from the prior year’s rate of (2.9)%. The forecasted tax rate for the remainder of fiscal 2025 is expected to range from 23% to 27%.
Market Position
Bio-Techne is focused on maintaining its leadership position in the life sciences sector while expanding its reach into diagnostics and adjacent markets. This strategic direction is supported by a commitment to high-quality products and customer satisfaction.
How Bio-Techne Corporation (TECH) Works
Overview of Operations
Bio-Techne Corporation operates in the life sciences industry, focusing on providing tools and reagents for research and clinical diagnostics. As of September 30, 2024, the Company reported total consolidated net sales of $289.5 million, an increase from $276.9 million in the same quarter of the previous year.
Financial Performance
The financial performance for the quarter ended September 30, 2024, is summarized in the following table:
| Item | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $289,458,000 | $276,935,000 |
| Cost of Sales | $106,441,000 | $91,744,000 |
| Gross Margin | $183,017,000 | $185,191,000 |
| Operating Expenses | $143,030,000 | $129,329,000 |
| Operating Income | $39,987,000 | $55,862,000 |
| Net Earnings | $33,600,000 | $50,993,000 |
| Earnings per Share (Diluted) | $0.21 | $0.31 |
Segment Performance
Bio-Techne's operations are divided into two main segments: Protein Sciences and Diagnostics and Spatial Biology.
Protein Sciences
For the quarter ended September 30, 2024, the Protein Sciences segment reported:
| Item | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $204,535,000 | $204,655,000 |
| Operating Margin | 39.4% | 43.2% |
Diagnostics and Spatial Biology
The Diagnostics and Spatial Biology segment reported:
| Item | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Sales | $83,192,000 | $72,797,000 |
| Operating Margin | 5.1% | 0.7% |
Income Tax and Earnings
The effective tax rate for the quarter ended September 30, 2024, was 16.4%, compared to (2.9%) for the same period in the previous year. Adjusted net earnings for the quarter were $67.5 million, up from $66.0 million year-over-year.
Cash Flow Analysis
In the first quarter of FY 2025, Bio-Techne generated cash of $63.9 million from operating activities, compared to $59.4 million in the first quarter of FY 2024. The Company reported capital expenditures for fixed assets of $9.2 million in Q1 FY 2025, down from $13.6 million in Q1 FY 2024.
Debt and Credit Facilities
As of September 30, 2024, Bio-Techne had an outstanding long-term debt obligation of $300 million. The Company has a revolving line-of-credit with $700 million available, maturing on August 31, 2027.
Shareholder Information
Bio-Techne declared cash dividends of $0.08 per share during the quarter, totaling approximately $12.7 million. As of September 30, 2024, the Company had 158,878,127 shares of common stock outstanding.
Research and Development
Research and development expenses for the quarter were $23.9 million, slightly down from $24.0 million in the prior year. These expenses reflect the Company's focus on innovation and product development.
Legal and Regulatory Matters
Bio-Techne is involved in various legal matters, including product liability and intellectual property disputes. The Company maintains a proactive stance in managing these risks and complies with extensive regulations in the life sciences sector.
How Bio-Techne Corporation (TECH) Makes Money
Revenue Sources
Bio-Techne Corporation generates revenue through multiple segments, primarily focusing on Protein Sciences and Diagnostics and Spatial Biology. As of the quarter ending September 30, 2024, the total consolidated net sales amounted to $289.5 million, marking a 5% increase from $276.9 million in the same quarter of the previous year.
| Revenue by Segment | Quarter Ended September 30, 2024 | Quarter Ended September 30, 2023 |
|---|---|---|
| Protein Sciences | $204.5 million | $204.7 million |
| Diagnostics and Spatial Biology | $83.2 million | $72.8 million |
| Other Revenue | $2.3 million | $0 million |
| Total Net Sales | $289.5 million | $276.9 million |
Product Categories
The revenue from Bio-Techne's product categories is detailed as follows:
| Revenue by Type | Quarter Ended September 30, 2024 | Quarter Ended September 30, 2023 |
|---|---|---|
| Consumables | $230.8 million | $224.5 million |
| Instruments | $26.2 million | $24.9 million |
| Services | $27.4 million | $21.5 million |
| Royalty Revenues | $5.1 million | $6.1 million |
| Total Revenues | $289.5 million | $276.9 million |
Gross and Operating Margins
For the quarter ended September 30, 2024, Bio-Techne reported a gross margin of $183.0 million, resulting in a gross margin percentage of 63.2%. This compares to a gross margin of $185.2 million and a percentage of 66.9% in the prior year period.
The adjusted gross margin, which excludes specific costs, was $199.6 million with an adjusted gross margin percentage of 69.5% for the quarter ended September 30, 2024.
Operating Expenses
Operating expenses for the quarter amounted to $143.0 million, which includes $119.2 million in selling, general, and administrative expenses, and $23.9 million in research and development expenses. This represents a 13% increase in selling and administrative expenses compared to the previous year.
Net Earnings
Net earnings for the quarter ending September 30, 2024, were reported at $33.6 million, a decrease from $51.0 million in the same quarter of 2023. The earnings per share (EPS) were $0.21 for both basic and diluted shares, compared to $0.32 and $0.31, respectively, in the prior year.
| Net Earnings Overview | Quarter Ended September 30, 2024 | Quarter Ended September 30, 2023 |
|---|---|---|
| Net Earnings | $33.6 million | $51.0 million |
| Earnings Per Share (Basic) | $0.21 | $0.32 |
| Earnings Per Share (Diluted) | $0.21 | $0.31 |
Segment Performance
Segment performance reflects the following operating income for the quarter ended September 30, 2024:
| Segment | Operating Income | Operating Margin Percentage |
|---|---|---|
| Protein Sciences | $80.5 million | 39.4% |
| Diagnostics and Spatial Biology | $4.3 million | 5.1% |
| Total Operating Income | $39.9 million | N/A |
Income Tax and Effective Rates
For the quarter ended September 30, 2024, the effective tax rate was 16.4%, compared to (2.9%) in the same prior year period. The forecasted tax rate for the remainder of fiscal 2025 is expected to range from 23% to 27%.
Cash Flow and Liquidity
Cash and cash equivalents as of September 30, 2024, were $187.5 million, compared to $151.8 million as of June 30, 2024. The company generated $63.9 million in cash from operating activities during the first quarter of fiscal 2025.
Future Outlook
Bio-Techne continues to focus on strategic acquisitions and internal growth, aiming to enhance its product offerings and expand its market reach. The company expects capital expenditures for fiscal 2025 to be approximately $32 million, primarily aimed at increasing capacity to meet expected sales growth.
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Resources:
- Bio-Techne Corporation (TECH) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Bio-Techne Corporation (TECH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bio-Techne Corporation (TECH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.