NBSC New Brunswick Scient (MM)

Nine-Month Earnings More Than Double on 13% Higher Sales EDISON, N.J., Nov. 8 /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (NBS) (NASDAQ:NBSC), today announced record 2006 third-quarter and nine-month net sales and higher net income versus the corresponding periods of 2005. For the three months ended September 30, 2006, net sales were up 11.4% to $18.0 million from $16.1 million reported for the 2005 comparable period. Third-quarter net income rose 32.1%, to $1.1 million. This compares with $833,000 for the same period one year ago. Earnings per diluted share increased to $0.12 from last year's $0.09. For the nine months ended September 30, 2006, net sales advanced 12.9% to $53.5 million from the $47.4 million reported for the 2005 nine-month period. The revenue improvement reflected international and domestic sales increases of 16.0% and 8.4%, respectively, from the prior-year period. Net income more than doubled to $2.7 million, or $0.29 per diluted share, from $1.2 million, or $0.14 per diluted share, for the 2005 nine-month period. The increase in net sales for the nine months was due principally to higher shipments of fermentation equipment, ultra-low temperature freezers and cell culture equipment, partially offset by a $339,000 foreign currency translation effect on international sales due to the stronger dollar versus the year-ago period. Gross margin for the third quarter was 42.5% versus 42.0% in the same period a year ago, and for the nine months, increased to 41.5% from 2005's 40.1%. Selling, general and administrative expenses as a percentage of sales amounted to 27.1% for the third quarter and 26.9% for the nine-month period of 2006, versus 26.5% and 28.3%, respectively, for last year's corresponding periods. Research, development and engineering expenses for the 2006 quarter were $167,000 lower than in 2005, and declined to $3.4 million from 2005's $3.5 million for the first nine months of 2006. Income from operations for the third quarter and nine month peroids improved significantly to $1.8 million and $4.4 million, respectively, compared with $1.3 million and $2.1 million for the corresponding year-ago periods. These increases represent operating income growth of 32.1% for the quarter and 112.4% for the nine months. During the 2006 third quarter, new orders increased 9.4% from third- quarter 2005. New orders also rose for the first nine months of the year, up 8.0% from the same period a year ago. Co-founder and Chairman David Freedman said: "Our product-development investments continue to augment the effects of the healthy demand in our markets, validating our strategy. For the third consecutive quarter, net sales set new quarterly records." To be added to New Brunswick Scientific's e-mail distribution list, please click on the link below: http://www.clearperspectivegroup.com/clearsite/nbsc/emailoptin.html About New Brunswick Scientific New Brunswick Scientific Co., Inc., is a leading global innovator providing a comprehensive line of equipment and instrumentation for the life science industry. The Company's products are used in the creation, maintenance and control of physical and biochemical environments required for the growth, detection and storage of microorganisms for medical, biological and chemical applications, environmental research and commercial products. Established in 1946, the Company is headquartered in Edison, New Jersey, with sales and distribution facilities located in the United States, Europe and Asia. For more information, please visit http://www.nbsc.com/ . This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of the Company. The forward-looking statements include a number of risks and uncertainties, which are detailed in Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2005, and other risk factors identified herein or from time to time in our periodic filings with the Securities and Exchange Commission. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. The Company undertakes no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise. -Financial Tables Follow- NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per-share amounts) (Unaudited) Three Months Ended Nine Months Ended Sept. 30, Oct. 1, Sept. 30, Oct. 1, 2006 2005 2006 2005 Net sales $17,971 $16,137 $53,524 $47,425 Operating costs and expenses: Cost of sales 10,333 9,352 31,315 28,425 Selling, general and administrative expenses 4,870 4,279 14,414 13,402 Research, development and engineering expenses 1,003 1,170 3,436 3,546 Total operating costs and 16,206 14,801 49,165 45,373 expenses Income from operations 1,765 1,336 4,359 2,052 Other income (expense): Interest income 93 69 267 180 Interest expense (88) (86) (255) (267) Other, net 18 34 (47) 55 23 17 (35) (32) Income before income tax expense 1,788 1,353 4,324 2,020 Income tax expense 688 520 1,624 776 Net income $ 1,100 $ 833 $ 2,700 $ 1,244 Basic income per share $ 0.12 $ 0.09 $ 0.30 $ 0.14 Diluted income per share $ 0.12 $ 0.09 $ 0.29 $ 0.14 Basic weighted average number of shares outstanding 9,204 8,996 9,140 8,945 Diluted weighted average number of shares outstanding 9,250 9,048 9,196 9,003 SELECTED CONSOLIDATED BALANCE SHEET ITEMS (Dollars in thousands) (Unaudited) September 30, December 31, 2006 2005 Cash and cash equivalents $10,814 $11,351 Accounts receivable, net 11,582 11,989 Inventories 15,847 13,155 Property, plant and equipment, net 8,569 6,595 Total assets 59,330 54,966 Accounts payable and accrued expenses 10,152 10,782 Long-term debt, net of current installments 1,072 1,389 Shareholders' equity 42,533 36,718 Working capital 25,340 22,870 Current ratio 2.7 to 1 2.5 to 1 DATASOURCE: New Brunswick Scientific Co., Inc. CONTACT: Thomas Bocchino, Vice President, Finance and Treasurer, New Brunswick Scientific Co., Inc., +1-732-650-2500, ; Matthew J. Dennis, CFA, NBS Investor Relations, Clear Perspective Group, LLC, +1-732-226-3030, Web site: http://www.nbsc.com/

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