Millipore Reports Third Quarter 2009 Financial Results

http://www.businesswire.com/news/home/20091105006438/en

Company generates 7 percent organic revenue growth and $112 million of free cash
flow
BILLERICA, Mass.--(Business Wire)--
Millipore Corporation (NYSE:MIL), a leading provider of technologies, tools and
services for the global life science industry, today reported financial results
for its third quarter ended October 3, 2009.

Revenues for the third quarter grew 4 percent from the previous year, totaling
$412 million. Excluding a 3 percent unfavorable impact from changes in foreign
currency, Millipore generated organic revenue growth of 7 percent. On a
divisional basis, excluding changes in foreign currency, Millipore`s Bioprocess
Division generated organic revenue growth of 8 percent, while the Company`s
Bioscience Division generated organic revenue growth of 4 percent from the
previous year.

Millipore`s third quarter earnings per share were $0.71 per share, compared to
$0.68 per share in the third quarter of 2008. Non-GAAP earnings per share were
$0.95, compared to $0.93 per share in the third quarter of 2008. A
reconciliation of GAAP to non-GAAP financial measures is provided in the
Company`s financial tables accompanying this press release.

"Our performance in the third quarter continued the trend of healthy organic
revenue growth and exceptional cash flow that we have experienced throughout
2009," said Martin Madaus, Chairman & CEO of Millipore. "Our top-line growth is
being driven by our Bioprocess Division, which is benefitting from increased
spending from large biotechnology customers, strong demand for products used to
manufacture the H1N1 flu vaccine, and expanded sales in Asia. We continue to
drive above-market growth in our Bioscience Division due to the resiliency of
our consumable product portfolio and strength at academic customers. This growth
is being partially offset by weakness at large pharmaceutical accounts,
particularly for drug discovery services and laboratory instrumentation.

"The overall health of our business is enabling us to invest in innovation at a
time when many of our competitors are constrained by weakness in their
businesses. We significantly increased our R&D spending in the third quarter and
we are expanding our presence in fast-growing markets such as disposable
manufacturing, virus filtration and multiplex immunoassays. I am excited about
the potential of this investment to further expand our competitive position and
drive attractive growth in 2010 and beyond."

Through the first nine months of 2009, Millipore`s revenues grew 2 percent
totaling $1.2 billion. Excluding a 6 percent unfavorable impact from changes in
foreign currency and a 1 percent contribution from acquisitions, organic revenue
growth in the period was 7 percent. On a divisional basis, excluding changes in
foreign currency and acquisitions not in the base period, Millipore`s Bioscience
Division grew 3 percent, while the Company`s Bioprocess Division grew 9 percent
from the previous year. Net income attributable to Millipore was $133 million,
or $2.38 per share. Non-GAAP net income attributable to Millipore was $168
million, or $3.00 per share, resulting in approximately 13 percent earnings per
share growth over the first nine months of 2008.

"We generated $112 million of free cash flow in the third quarter, which puts us
on pace to surpass our cash flow expectations for the full year," said Charles
Wagner, Chief Financial Officer of Millipore. "This exceptional performance is
primarily the result of working capital initiatives we put in place over the
past 18 months to reduce our inventory, improve our cash collections, and more
effectively manage our capital spending. I am pleased with how quickly and
effectively the organization has executed these programs."

Q3 2009 Highlights

* Bioprocess Division generated 8 percent organic revenue growth. The division
grew in all geographies and saw strength for its chromatography media, virus
filtration, and Mobius disposable manufacturing products.
* Bioscience Division generated 4 percent organic revenue growth. The
performance was highlighted by solid performance for multiplex immunoassays and
increasing demand from customers conducting protein and neuroscience research.
* Completed the acquisition of BioAnaLab to extend the Company`s
biopharmaceutical services offering to the European market.
* Generated approximately $112 million of free cash flow, representing 74
percent growth over the third quarter of 2008.
* Paid down $57 million of borrowings under the Company`s $678 million primary
revolving credit facility, leaving approximately $14 million drawn against it at
the end of the quarter.
* Received Supplier Consistency Award from Amgen in recognition of Millipore`s
efforts to drive improvements in delivery, support and service.
* Millipore`s innovation strategy produced the following key product launches:
FlowCellect kits for benchtop flow cytometry, MilliTrace stem cell lines, which
express green fluorescent protein under the control of various embryonic and
neural stem cell markers, and LC-Pak™, which is an accessory for the Milli-Q lab
water instruments.
* Advanced the Company`s sustainability strategy with the completion of a solar
energy project, which is one of the largest solar photovoltaic projects ever
completed in Massachusetts and is the first renewable energy project the Company
has implemented in the United States.

Revenue Growth by Geography ($ millions):

Three Months Ended Nine Months Ended
October 3, September 27, % October 3, September 27, %
2009 2008 Growth 2009 2008 Growth
Americas $ 165.6 $ 159.9 4% $ 499.5 $ 459.5 9%
Europe 166.9 166.7 --- 493.2 527.3 (6%)
Asia/Pacific 79.4 68.4 16% 235.7 218.6 8%
Total $ 411.9 $ 395.0 4% $ 1,228.4 $ 1,205.4 2%

Revenue Growth by Division ($ millions):

Three Months Ended Nine Months Ended
October 3, September 27, % October 3, September 27, %
2009 2008 Growth 2009 2008 Growth
Bioprocess $ 233.9 $ 220.9 6% $ 693.8 $ 667.3 4%
Bioscience 178.0 174.1 2% 534.6 538.1 (1%)
Total $ 411.9 $ 395.0 4% $ 1,228.4 $ 1,205.4 2%

Quarterly Earnings Call

Millipore will host a conference call and webcast to discuss its financial
results, business outlook, and related corporate and financial matters at 4:45
p.m. Eastern Standard Time today. The call can be accessed through Millipore`s
website: http://www.millipore.com. A replay of the call will be archived on the
Investor Relations section of the website and will also be available via
telephone by dialing 800-642-1687 or 706-645-9291 and entering confirmation
code: 35709281. The telephonic replay will be available beginning at 6:45 p.m.
Eastern Standard Time on November 5, 2009 until 11:59 p.m. Eastern Standard Time
on November 9, 2009.

About Millipore

Millipore (NYSE: MIL) is a life science leader providing cutting-edge
technologies, tools, and services for bioscience research and biopharmaceutical
manufacturing. As a strategic partner, we collaborate with customers to confront
the world's challenging human health issues. From research to development to
production, our scientific expertise and innovative solutions help customers
tackle their most complex problems and achieve their goals. Millipore
Corporation is an S&P 500 company with more than 5,900 employees in 30 countries
worldwide.

Advancing Life Science Together®

Research. Development. Production.

Use of Non-GAAP Financial Measures

The non-GAAP financial measures used in this press release are non-GAAP gross
profit, gross profit margin, operating profit, operating margin, pre-tax income,
net income attributable to Millipore, diluted earnings per share, and free cash
flow. Non-GAAP gross profit, gross profit margin, operating profit, operating
margin, pre-tax income, net income attributable to Millipore and diluted
earnings per share exclude costs related to global supply chain initiatives,
acquisition and related integration expenses, amortization of acquired
intangible assets, inventory fair value adjustments related to business
acquisitions, curtailment gain related to modifications to our postretirement
benefit plan, gain on business acquisition, and non-cash interest expense on
convertible debt. We define free cash flow as net cash provided by operating
activities less additions to property, plant, and equipment. There are
limitations in using non-GAAP financial measures as they are not prepared in
accordance with generally accepted accounting principles and may be different
from non-GAAP financial measures used by other companies.

We believe that the non-GAAP financial measures provide useful and supplementary
information to investors regarding our quarterly performance. It is our belief
that these non-GAAP financial measures have been particularly useful to
investors over the last few years because of the significant changes that have
occurred outside of our day-to-day business in accordance with the execution of
our new strategy. This strategy includes strengthening our leadership position
with biopharmaceutical customers, becoming a strategic supplier in bioscience
research markets, leading our industry in product quality and manufacturing
effectiveness, and becoming a magnet for talent. The financial impact of certain
elements of these activities, particularly acquisitions, are often large
relative to our overall financial performance and most of the related charges
are recorded in one or two fiscal quarters but not in other fiscal quarters,
which can adversely affect the comparability of our results from period to
period. Our global supply chain initiatives will significantly reduce our cost
structure and improve operational efficiency primarily through the consolidation
of manufacturing locations. Non-cash interest expense on convertible debt is the
incremental interest expense as a result of a change in accounting
principles.This interest expense is non-cash and we can not control the amount
of this expense without modifying our capital structure. We believe free cash
flow is a useful measure to evaluate our business as it indicates the amount of
cash generated after additions to property, plant, and equipment that is
available for, among other things, strategic acquisitions, investments in our
business, and repayment of debt.

We regularly use non-GAAP financial measures internally to understand, manage,
and evaluate our business results and make operating decisions. We also measure
our employees and compensate them, in part, based on such non-GAAP measures. For
the same reasons, we also use this information for our forecasting activities.
The non-GAAP financial measures presented herein also facilitate comparisons to
our historical operating results, which have consistently been presented in this
manner.

Non-GAAP financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in accordance with GAAP.
They are limited in value because they exclude charges that have a material
effect on our reported results and, therefore, should not be relied upon as the
sole financial measures to evaluate our financial results. The non-GAAP
financial measures are meant to supplement, and to be viewed in conjunction
with, GAAP financial measures. Investors are encouraged to review the
reconciliation of the financial measures to their most directly comparable GAAP
financial measures as provided in the tables accompanying this press release.
Our earnings guidance, however, is only provided on a non-GAAP basis. It is not
feasible to provide GAAP diluted earnings per share guidance because the items
excluded, other than amortization expense and non-cash interest expense, are
difficult to predict and estimate and are primarily dependent on future events.

Forward Looking Statements:

The matters discussed herein, as well as in future oral and written statements
by management of Millipore Corporation that are forward-looking statements, are
based on current management expectations that involve substantial risks and
uncertainties which could cause actual results to differ materially from the
results expressed in, or implied by, these forward-looking statements.

Potential risks and uncertainties that could affect Millipore's future operating
results include, without limitation, failure to achieve design wins into our
pharmaceutical and biotechnology customers` manufacturing design phase for a
particular drug; delay, suspension or termination of a customer`s volume
production; lack of availability of raw materials or component products on a
timely basis; regulatory delay in the approval of customers` therapeutics;
limitations on cash flow available for operations and investment due to
increased debt service obligations; the inability to establish and maintain
necessary product and process quality levels; reduced demand for animal-derived
cell culture products; the inability to realize the expected benefits of
development, marketing, licensing and other alliances; competitive factors such
as new membrane or chromatography technology; the inability to achieve
anticipated cost benefits of our supply chain initiatives; risks relating to our
concentration of principal manufacturing operations; the inability to utilize
technology in current or planned products due to overriding rights by third
parties; potential environmental liabilities; conditions in the economy in
general and in the bioscience and bioprocess markets in particular; foreign
exchange fluctuations; reduced private and government research funding; exposure
to product liability claims; and difficulties inherent in transferring or
outsourcing of manufacturing operations.Please refer to our filings with the
SEC, including our most recent Annual Report on Form 10-K, for more information
on these and other risks that could cause actual results to differ.

Millipore Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended Nine Months Ended
October 3, September 27, October 3, September 27,
2009 2008 2009 2008
(As Adjusted) (a) (As Adjusted) (a)

Revenues $ 411,865 $ 395,005 $ 1,228,396 $ 1,205,385
Cost of revenues 188,223 185,835 552,537 557,915
Gross profit 223,642 209,170 675,859 647,470

Selling, general and administrative expenses 131,153 123,974 388,690 383,960
Research and development expenses 29,349 25,421 83,675 76,602
Operating profit 63,140 59,775 203,494 186,908

Gain on business acquisition - - 8,542 -
Interest income 171 213 589 594
Interest expense (14,549 ) (17,359 ) (43,635 ) (53,825 )
Income before provision for income taxes 48,762 42,629 168,990 133,677
Provision for income taxes 8,562 4,123 33,630 24,344

Net income 40,200 38,506 135,360 109,333
Less: Net income attributable to noncontrolling interest 538 706 2,279 2,836
Net income attributable to Millipore $ 39,662 $ 37,800 $ 133,081 $ 106,497

Diluted earnings per share $ 0.71 $ 0.68 $ 2.38 $ 1.91

Diluted weighted average shares outstanding 56,197 55,844 56,033 55,719

(a) On January 1, 2009, the Company adopted new accounting standards concerning
convertible debt and reporting and disclosure of noncontrolling interest in
consolidated subsidiaries. These new standards require adjustments to prior
period financial statements to conform with current accounting treatment.

Millipore Corporation
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

October 3, December 31,
2009 2008
(As Adjusted) (a)
ASSETS
Current assets:
Cash and cash equivalents $ 189,775 $ 115,462
Accounts receivable, net 300,629 274,529
Inventories 268,059 259,360
Deferred income taxes and other current assets 92,741 103,092
Total current assets 851,204 752,443
Property, plant and equipment, net 599,901 577,410
Deferred income taxes 18,615 10,926
Intangible assets, net 351,269 369,473
Goodwill 1,018,968 1,004,694
Other assets 17,209 18,155
Total assets $ 2,857,166 $ 2,733,101

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 58,571 $ 4,391
Accounts payable 84,106 70,037
Income taxes payable 8,424 9,966
Accrued expenses and other current liabilities 204,266 162,969
Total current liabilities 355,367 247,363
Deferred income taxes 8,122 7,263
Long-term debt 906,711 1,082,058
Other liabilities 94,440 84,122
Equity 1,492,526 1,312,295
Total liabilities and equity $ 2,857,166 $ 2,733,101

(a) On January 1, 2009, the Company adopted new accounting standards concerning
convertible debt and reporting and disclosure of noncontrolling interest in
consolidated subsidiaries. These new standards require adjustments to prior
period financial statements to conform with current accounting treatment.

Millipore Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Nine Months Ended
October 3, September 27,
2009 2008
(As Adjusted) (a)
Cash flows from operating activities:
Net income $ 135,360 $ 109,333
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 93,722 98,725
Stock-based compensation 19,881 16,916
Amortization of deferred financing costs 2,544 2,597
Amortization of debt discount 11,285 10,559
Deferred income tax provision 6,420 5,764
Gain on business acquisition (8,542 ) -
Business acquisition inventory fair value adjustment 1,057 -
Other 8,392 (3,974 )
Changes in operating assets and liabilities, net of effects of business acquisitions:
Accounts receivable (15,208 ) (12,137 )
Inventories 2,150 (7,419 )
Other assets 7,356 934
Accounts payable 10,370 (18,958 )
Accrued expenses and other current liabilities 13,224 (3,390 )
Other liabilities (1,126 ) (10,107 )
Net cash provided by operating activities 286,885 188,843
Cash flows from investing activities:
Additions to property, plant and equipment (53,314 ) (52,691 )
Acquisition of businesses, net of cash acquired (29,940 ) -
Settlement of derivative transactions - (32,332 )
Other (3,291 ) (4,638 )
Net cash (used for) investing activities (86,545 ) (89,661 )
Cash flows from financing activities:
Proceeds from issuance of common stock under stock plans 9,557 16,364
Net repayments under the revolving credit facility (194,174 ) (127,722 )
Net borrowings of short-term debt 49,119 540
Dividends paid to noncontrolling interest (2,104 ) (1,738 )
Net cash (used for) financing activities (137,602 ) (112,556 )
Effect of foreign exchange rates on cash and cash equivalents 11,575 320
Net increase (decrease) in cash and cash equivalents 74,313 (13,054 )
Cash and cash equivalents at beginning of year 115,462 36,177
Cash and cash equivalents at end of period $ 189,775 $ 23,123

(a) On January 1, 2009, the Company adopted new accounting standards concerning
convertible debt and reporting and disclosure of noncontrolling interest in
consolidated subsidiaries. These new standards require adjustments to prior
period financial statements to conform with current accounting treatment.

Millipore Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures *
Three Months Ended October 3, 2009
(dollars in thousands, except EPS data)

Gross Gross Operating Operating Pre-tax Net income Diluted EPS
Profit Profit Profit Margin Income attributable to
Margin Millipore
GAAP results, three months ended October 3, 2009 $ 223,642 54.3 % $ 63,140 15.3 % $ 48,762 $ 39,662 $ 0.71
Non-GAAP adjustments:
Costs related to global supply chain initiatives 2,199 0.5 % 2,311 0.6 % 2,311 1,502 0.03
Acquisition and related integration expenses 10 - 237 0.1 % 237 154 -
Purchased intangibles amortization 2,092 0.5 % 14,455 3.5 % 14,455 9,391 0.17
Non-cash interest expense on convertible debt - - - - 3,711 2,411 0.04

Total non-GAAP adjustments 4,301 1.0 % 17,003 4.2 % 20,714 13,458 0.24
Non-GAAP results, three months ended October 3, 2009 $ 227,943 55.3 % $ 80,143 19.5 % $ 69,476 $ 53,120 $ 0.95

* Please refer to our press release for a full explanation for the use of
non-GAAP measures.

Millipore Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures *
Nine Months Ended October 3, 2009
(dollars in thousands, except EPS data)

Gross Gross Operating Operating Pre-tax Net income Diluted EPS
Profit Profit Profit Margin Income attributable to
Margin Millipore
GAAP results, nine months ended October 3, 2009 $ 675,859 55.0 % $ 203,494 16.6 % $ 168,990 $ 133,081 $ 2.38
Non-GAAP adjustments:
Costs related to global supply chain initiatives 10,492 0.9 % 11,134 0.9 % 11,134 7,181 0.13
Business acquisition inventory fair value adjustment 1,057 0.1 % 1,057 0.1 % 1,057 679 0.01
Acquisition and related integration expenses 19 - 1,718 0.1 % 1,718 1,107 0.02
Purchased intangibles amortization 6,051 0.5 % 42,676 3.5 % 42,676 27,549 0.48
Gain on business acquisition - - - - (8,542 ) (8,542 ) (0.15 )
Non-cash interest expense on convertible debt - - - - 10,921 7,050 0.13

Total non-GAAP adjustments 17,619 1.5 % 56,585 4.6 % 58,964 35,024 0.62
Non-GAAP results, nine months ended October 3, 2009 $ 693,478 56.5 % $ 260,079 21.2 % $ 227,954 $ 168,105 $ 3.00

* Please refer to our press release for a full explanation for the use of
non-GAAP measures.

Millipore Corporation
(40,831 )
Accumulated other comprehensive loss (1,609 ) (6,204 )
Total stockholders` equity 406,704 320,028
Non-controlling interest - 31,060
Total equity 406,704 351,088
TOTAL LIABILITIES AND EQUITY $ 1,189,740 $ 1,066,714

Coinstar, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Nine Month Periods
Ended September 30,
2009 2008

OPERATING ACTIVITIES:
Net income $ 53,911 $ 20,681
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and other 66,864 41,997
Amortization of intangible assets and deferred financing fees 6,907 6,608
Write-off of acquisition costs 1,262 1,004
Non-cash stock-based compensation for employees 6,232 6,288
Share-based payments for DVD agreement 1,091 -
Excess tax benefit on share-based awards - (615 )
Deferred income taxes 3,582 9,231
Income from equity investments - 3,449
(Income) loss from discontinued operations, net of tax (28,007 ) 2,892
Loss on early retirement of debt 1,082 -
Other 632 835
Cash (used) provided by changes in operating assets and liabilities, net of effects of business acquisitions (70,480 ) 14,996
Net cash provided by operating activities from continuing operations 43,076 107,366
INVESTING ACTIVITIES:
Purchase of property and equipment (105,141 ) (115,740 )
Acquisitions, net of cash acquired of $43,621 in 2008 (1,229 ) (24,829 )
Proceeds from sale of fixed assets 214 290
Net cash used by investing activities from continuing operations (106,156 ) (140,279 )
FINANCING ACTIVITIES:
Principal payments on capital lease obligations and other (18,642 ) (12,119 )
Proceeds from capital lease financing 22,020 -
Net (payments) borrowings on credit facility (35,000 ) 34,000
Convertible debt borrowings, net of underwriting discount and commissions of $6,000 194,000 -
Financing costs associated with revolving line of credit and convertible debt (3,984 ) -
Cash used to purchase remaining non-controlling interests in Redbox (113,867 ) -
Excess tax benefit on share-based awards - 615
Proceeds from exercise of stock options 10,889 8,547
Net cash provided by financing activities from continuing operations 55,416 31,043

Effect of exchange rate changes on cash 2,996 (2,462 )

NET DECREASE IN CASH AND CASH EQUIVALENTS, CASH IN MACHINE OR IN TRANSIT, AND CASH BEING PROCESSED FROM CONTINUING OPERATIONS (4,668 ) (4,332 )

CASH FLOWS FROM DISCONTINUED OPERATIONS:
Operating cash flows 14,872 2,761
Investing cash flows (16,397 ) (8,130 )
Financing cash flows (2,462 ) (4,140 )
(3,987 ) (9,509 )

NET DECREASE IN CASH AND CASH EQUIVALENTS, CASH IN MACHINE OR IN TRANSIT, AND CASH BEING PROCESSED (8,655 ) (13,841 )

CASH AND CASH EQUIVALENTS, CASH IN MACHINE OR IN TRANSIT, AND CASH BEING PROCESSED:
Beginning of period 192,035 196,592
End of period $ 183,380 $ 182,751

Millipore Corporation
Joshua Young, 978-715-1527 or 800-225-3384
Director, Investor Relations
joshua_young@millipore.com
or
Millipore Corporation
Karen Hall, 978-715-1567
Director, Corporate Communications
karen_hall@millipore.com

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