Harvard Bioscience, Inc. · NASDAQ:HBIO
Harvard Bioscience — Investor Presentation (May 2007)
26 slides from Harvard Bioscience's investor presentation, May 2007
Slide 1: Tools to Advance Life Science Research
Tools to Advance Life Science Research NASDAQ HBIO May 2007 Copyright © Harvard Bioscience 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “guidance,” “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not
Slide 3: Use of Non-GAAP Information
Use of Non-GAAP Information In this presentation, we have included non-GAAP financial information including adjusted operating income, adjusted income from continuing operations, adjusted earnings per diluted share from continuing operations. We believe that this non-GAAP financial information provi
Slide 4: Investment Highlights
Investment Highlights • Tools to Advance Life Science Research • Strong Track Record of Growth and Profitability • Currently Divesting Volatile Capital Equipment Business • Experienced Management Team • Commitment to Stockholder Value Creation Copyright © Harvard Bioscience 2007 Tools to Advance Lif
Slide 5: Overview
Overview • Financial Performance Overview • Business Strategy • Growth Model • Management Team • Commitment to Stockholder Value Copyright © Harvard Bioscience 2007 Tools to Advance Life Science Research
Slide 6: Financial Overview – Strong Revenue Growth
Financial Overview – Strong Revenue Growth $90.0 CAGR 23% * Est. $81.5 $80.0 Revenue From Continuing $76.2 $70.0 $67.4 Operations $64.7 $60.0 $52.0 (in millions) $50.0 $47.0 $38.1 $40.0 IPO $30.6 $30.0 $26.2 $20.0 $11.5 $12.1 $10.0 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 * The 2007
Slide 7: Financial Overview – Strong Profitability
Financial Overview – Strong Profitability $14.0 CAGR Non-GAAP Adjusted Operating 22% $12.4 $12.0 Income from Continuing Operations $10.3 $9.9 $10.0 $8.9 $7.8 $8.0 (in millions) $6.9 $6.0 $4.8 $4.8 $4.0 $2.4 $2.1 $2.0 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Note: See reconciliation of US
Slide 8: Financial Overview – Strong Diluted EPS Growth
Financial Overview – Strong Diluted EPS Growth Non-GAAP Adjusted Diluted EPS From $0.35 Continuing Operations * Est. CAGR $0.30 16% $0.30 $0.26 $0.25 $0.19 $0.19 $0.19 $0.19 $0.20 $0.17 $0.17 $0.15 $0.15 $0.10 $0.10 $0.07 $0.05 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Note: See reco
Slide 9: Financial Overview – Continuing Operations
Financial Overview – Continuing Operations Revenue Org. Rev. Growth Adj. Dil. EPS Q1 2005 $16.1m 0%* $0.04 Q2 $16.3m 4% $0.04 Q3 $17.2m 5% $0.05 Q4 $17.8m 7% $0.06 Q1 2006 $17.4m 12% $0.06 Q2 $18.2m 11% $0.07 Q3 $18.9m 4% $0.06 Q4 $21.7m 8% $0.08 Q1 2007 $19.1m (3)% $0.07 * Investments made in late
Slide 10: Financial Overview – 2007 Guidance
Financial Overview – 2007 Guidance Continuing Operations Revenue Adj. Dil. EPS Q2 (Guidance) $19.5m - $20.5m $0.07 - $0.08 2007 (Guidance) $80.0m - $83.0m $0.29 - $0.31 This excludes the amortization of intangible assets, the impact of potential additional acquisitions in 2007, the impact of stock c
Slide 11: HBIO Continuing Operations
HBIO Continuing Operations Established in 1901 at 100 years, 1000 pages, Harvard Medical School 11,000 items & a web site The name Harvard is used under a license agreement between Harvard Bioscience and Harvard University Copyright © Harvard Bioscience 2007 Tools to Advance Life Science Research
Slide 12: Physiology Products
Physiology Products Syringe Pumps – Animal Ventilators – Cell & Tissue Incubators – clear market leader clear market leader market leader Sample Prep – great technology Organ Systems – clear with big ideas Electroporation – market leader strong #2 with new technology Market shares are management est
Slide 13: Molecular Biology Products
Molecular Biology Products Plate Readers – small share with big plans Spectrophotometers – #2 in life science Hoefer 1D Electrophoresis Tanks - #1 or #2 Amino Acid Analyzer – clear market leader Market shares are management estimates and Copyright © Harvard Bioscience 2007 have not been independentl
Slide 14: Established Distribution Channels
Established Distribution Channels Catalog and Website - Harvard Apparatus Catalog - Over 100 years, 1,000 pages, 10,000 items - Hoefer Catalog (electrophoresis) - New catalog Q1 2006 Major Distributors - GE Healthcare (formerly Amersham Bioscience) - Over 20 year relationship - ThermoFisher Scientif
Slide 15: Established Customer Base
Established Customer Base • 35/35 Top Pharmaceutical Companies • 50/50 Top Research Universities • 50,000 Qualified End-Users in Our Database Copyright © Harvard Bioscience 2007 Tools to Advance Life Science Research
Slide 16: Business Strategy
Business Strategy Our strategy is to have a broad range of highly specialized but relatively inexpensive products that have strong positions in niche markets in life science research: - We believe that having a broad product offering reduces the risk of being dependent on a single technology; - We b
Slide 17: Growth Strategy
Growth Strategy • Organic growth in mature markets driven by expanding distribution channels and product offerings, plus • Tuck-under acquisitions of related product lines. • We have made 18 acquisitions in the Apparatus business since March 1996. Copyright © Harvard Bioscience 2007 Tools to Advance
Slide 18: Growth Model
Growth Model Revenue Growth Projected Organic 4-6% Tuck-under acquisitions* 10-15% Total revenue growth 14-21% Operating Income Growth 15-20% Actual 1997 to 2006 revenue growth was 23% annually and operating income growth was 22% annually * Note: We believe we can finance this level of tuck-under ac
Slide 19: Experienced Management Team
Experienced Management Team • 60+ years of Relevant Experience • Many Licensing Deals and New Product Launches • 21 Acquisitions at HBIO Title Background Chane Graziano CEO Waters, ATI Orion David Green President Monitor, Unilever Sue Luscinski COO Harvard Bioscience Bryce Chicoyne CFO Apogent, E&Y
Slide 20: Commitment to Stockholder Value
Commitment to Stockholder Value • Management team collectively holds approximately 17% of shares • Management owns an additional approximately 10% in options • We believe tuck-under growth strategy can be financed with current cash available, cash flow from operations and proceeds from our existing
Slide 21: Investment Highlights
Investment Highlights • Tools to Advance Life Science Research • Strong Track Record of Growth and Profitability • Currently Divesting Volatile Capital Equipment Business • Experienced Management Team • Commitment to Stockholder Value Creation Copyright © Harvard Bioscience 2007 Tools to Advance Lif
Slide 22: Tools to Advance Life Science Research
Tools to Advance Life Science Research NASDAQ HBIO Copyright © Harvard Bioscience 2007
Slide 23: Appendix A
Appendix A For the years ended December 31, 1997 1998 1999 2000 (IPO) 2001 2002 2003 2004 2005 2006 Revenues $11,464 $12,154 $26,178 $ 30,575 $38,088 $ 47,009 $52,024 $64,745 $67,431 $76,181 For the years ended December 31, Reconciliation of US GAAP to Non-GAAP Adjusted: 1997 1998 1999 2000 2001 200
Slide 24: Appendix B
Appendix B HARVARD BIOSCIENCE, INC. Reconciliation of Changes In Total Revenue Compared to the Same Period of the Prior Year (Continuing Operations) (unaudited) For the Three For the Year For the Year Months For the Three Months Ended Ended For the Three Months Ended Ended Ended March 31, June 30, S
Slide 25: Appendix C
Appendix C For the quarters ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2005 2005 2005 2005 2006 2006 2006 2006 2007 Revenues $ 16,135 $ 16,277 $ 17,179 $ 17,840 $ 17,370 $ 18,187 $ 18,941 $ 21,683 $ 19,115 For the quarters ended Reconc
Slide 26: Appendix D
Appendix D Reconciliation of Guidance for US GAAP Earnings per Diluted Share From Continuing Operations to Adjusted Non-GAAP Earnings per Diluted Share From Continuing Operations (unaudited) Three Months Ended Year Ended June 30, 2007 December 31, 2007 Low Estimate High Estimate Low Estimate High Es
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