-
Revenue from continuing operations of $454 million, adjusted
revenue of $464 million, reported growth of 8% and organic revenue
growth of 4%
-
Operating income of $34 million; Adjusted operating income from
continuing operations of $66 million, up 45 basis points
-
GAAP earnings per share from continuing operations of $0.24;
Adjusted earnings per share of $0.41, up 32%
WALTHAM, Mass.--(BUSINESS WIRE)--
PerkinElmer,
Inc. (NYSE: PKI), a global leader focused on improving the
health and safety of people and the environment, today reported
financial results for the third quarter ended October 2, 2011. The
Company reported GAAP earnings per share from continuing operations of
$0.24, as compared to $0.22 in the third quarter of 2010. On a non-GAAP
basis, which includes the adjustments noted in the attached
reconciliation, the Company announced adjusted earnings per share of
$0.41, exceeding the Company's prior guidance of $0.37-$0.39,
representing an increase of 32% as compared to the third quarter of 2010.
Revenue from continuing operations in the third quarter of 2011 was
$453.7 million, up 8% as compared to the same period a year ago. Organic
revenue, which includes the adjustments noted in the attached
reconciliation, increased 4% as compared to the third quarter of 2010.
Revenue from continuing operations in the Human and Environmental Health
segments increased by 7% and 10%, respectively, as compared to the same
period a year ago. Organic revenue, which includes the adjustments noted
in the attached reconciliation, increased 2% in the Human Health segment
and 6% in the Environmental Health segment compared to the third quarter
of 2010.
"We are pleased with our performance in the third quarter as we
delivered strong growth in revenue, adjusted earnings per share and cash
flow. We continued to see good progress against our multi-year goal of
expanding operating margins as our strong adjusted gross margins in the
period enabled us to absorb growth investments in R&D and in our
commercial capabilities while providing 45 basis points of adjusted
operating margin expansion," said Robert Friel, chairman and chief
executive officer of PerkinElmer. "We are also seeing significant
benefits from our recent acquisitions, as we successfully integrate key
technologies in imaging and sample preparation as well as our
enterprise-wide informatics offerings into our broad suite of Human and
Environmental Health solutions. Additionally, we look forward to
completing the acquisition of Caliper Life Sciences which will further
strengthen our position in the growing area of personalized medicine."
Operating income from continuing operations for the third quarter of
2011 was $34.2 million, as compared to $41.4 million for the same period
a year ago. Adjusted operating income, which includes the adjustments
noted in the attached reconciliation, increased by 45 basis points as a
percentage of adjusted revenue to $65.7 million, as compared to $57.5
million in the third quarter of 2010.
Financial Overview by Reporting Segment
Human Health:
-
Revenue from continuing operations of $207.4 million for the third
quarter of 2011, as compared to $194.5 million for the third quarter
of 2010.
-
Operating income of $26.7 million, as compared to $25.0 million for
the same period a year ago.
-
Adjusted operating profit margin was 19.5% as a percentage of adjusted
revenue, an increase of approximately 20 basis points as compared to
the third quarter of 2010.
Environmental Health
-
Revenue from continuing operations of $246.3 million for the third
quarter of 2011, as compared to $224.6 million for the third quarter
of 2010.
-
Operating income of $13.6 million, as compared to $26.1 million for
the same period a year ago.
-
Adjusted operating profit margin was 12.2% as a percentage of adjusted
revenue, a decrease of approximately 100 basis points as compared to
the third quarter of 2010.
Financial Guidance
For the full year 2011, the Company forecasts organic revenue to
increase in the mid single digit range relative to 2010. For the full
year 2011, the Company forecasts GAAP earnings per share from continuing
operations in the range of $0.94 to $0.96 and on a non-GAAP basis, which
is expected to include the adjustments noted in the attached
reconciliation, adjusted earnings per share in the range of $1.66 to
$1.68 as compared to the Company's previously communicated guidance
range of $1.64 to $1.68.
Conference Call Information
The Company will discuss its third quarter results and its outlook for
business trends in a conference call on November 3, 2011 at 5:00 p.m.
Eastern Time (ET). To access the call, please dial (857) 350-1598 prior
to the scheduled conference call time and provide the access code
11823069. A playback of this conference call will be available beginning
8:00 p.m. ET, Thursday, November 3, 2011. The playback phone number is
(617) 801-6888 and the code number is 72834168.
A live audio webcast of the call will be available on the Investor
section of the Company's Web site, www.perkinelmer.com.
Please go to the site at least 15 minutes prior to the call in order to
register, download, and install any necessary software. An archived
version of the webcast will be posted on the Company's Web site for a
two week period beginning approximately two hours after the call.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), this earnings announcement also
contains non-GAAP financial measures. The reasons that we use these
measures, a reconciliation of these measures to the most directly
comparable GAAP measures, and other information relating to these
measures are included below following our GAAP financial statements.
Factors Affecting Future Performance
This press release contains "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements relating to estimates and
projections of future earnings per share, cash flow and revenue growth
and other financial results, developments relating to our customers and
end-markets, and plans concerning business development opportunities and
divestitures. Words such as "believes," "intends," "anticipates,"
"plans," "expects," "projects," "forecasts," "will" and similar
expressions, and references to guidance, are intended to identify
forward-looking statements. Such statements are based on management's
current assumptions and expectations and no assurances can be given that
our assumptions or expectations will prove to be correct. A number of
important risk factors could cause actual results to differ materially
from the results described, implied or projected in any forward-looking
statements. These factors include, without limitation: (1) markets into
which we sell our products declining or not growing as anticipated; (2)
fluctuations in the global economic and political environments; (3) our
failure to introduce new products in a timely manner; (4) our ability to
execute the Caliper acquisition, or to successfully integrate Caliper
into our existing business or to make it profitable; (5) our ability to
execute acquisitions and license technologies, or to successfully
integrate acquired businesses and licensed technologies into our
existing business or to make them profitable, or successfully divest
businesses; (6) our failure to adequately protect our intellectual
property; (7) the loss of any of our licenses or licensed rights; (8)
our ability to compete effectively; (9) fluctuation in our quarterly
operating results and our ability to adjust our operations to address
unexpected changes; (10) significant disruption in third-party package
delivery and import/export services or significant increases in prices
for those services; (11) disruptions in the supply of raw materials and
supplies; (12) the manufacture and sale of products exposing us to
product liability claims; (13) our failure to maintain compliance with
applicable government regulations; (14) regulatory changes; (15) our
failure to comply with healthcare industry regulations; (16) economic,
political and other risks associated with foreign operations; (17) our
ability to retain key personnel; (18) significant disruption in our
information technology systems; (19) our ability to obtain future
financing; (20) restrictions in our credit agreements; (21) our ability
to realize the full value of our intangible assets; (22) significant
fluctuations in our stock price; (23) reduction or elimination of
dividends on our common stock; and (24) other factors which we describe
under the caption "Risk Factors" in our most recent quarterly report on
Form 10-Q and in our other filings with the Securities and Exchange
Commission. We disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring after
the date of this press release.
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
(In thousands, except per share data)
|
|
October 2, 2011
|
|
October 3, 2010
|
|
October 2, 2011
|
|
October 3, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
453,740
|
|
|
$
|
419,143
|
|
|
$
|
1,381,095
|
|
|
$
|
1,234,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
254,193
|
|
|
|
233,360
|
|
|
|
772,322
|
|
|
|
684,074
|
|
|
|
Research and development expenses
|
|
|
30,234
|
|
|
|
23,814
|
|
|
|
84,716
|
|
|
|
69,797
|
|
|
|
Selling, general and administrative expenses
|
|
|
135,105
|
|
|
|
120,552
|
|
|
|
409,677
|
|
|
|
365,392
|
|
|
|
Restructuring and lease charges, net
|
|
|
-
|
|
|
|
-
|
|
|
|
3,340
|
|
|
|
9,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
|
34,208
|
|
|
|
41,417
|
|
|
|
111,040
|
|
|
|
105,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
(549
|
)
|
|
|
(192
|
)
|
|
|
(1,354
|
)
|
|
|
(542
|
)
|
|
|
Interest expense
|
|
|
4,449
|
|
|
|
4,185
|
|
|
|
12,578
|
|
|
|
11,937
|
|
|
|
Gain on step acquisition
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(25,586
|
)
|
|
|
Other expense
|
|
|
16
|
|
|
|
2,687
|
|
|
|
2,719
|
|
|
|
2,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
30,292
|
|
|
|
34,737
|
|
|
|
97,097
|
|
|
|
117,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
3,591
|
|
|
|
8,192
|
|
|
|
16,603
|
|
|
|
23,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
|
26,701
|
|
|
|
26,545
|
|
|
|
80,494
|
|
|
|
93,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, before income taxes
|
|
|
-
|
|
|
|
4,217
|
|
|
|
-
|
|
|
|
21,676
|
|
|
|
Gain (loss) on disposition of discontinued operations, before income
taxes
|
|
|
3,813
|
|
|
|
(495
|
)
|
|
|
2,072
|
|
|
|
2,573
|
|
|
|
(Benefit from) provision for income taxes on discontinued operations
and dispositions
|
|
|
(4,805
|
)
|
|
|
16,876
|
|
|
|
(4,828
|
)
|
|
|
22,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations and dispositions, net
of income taxes
|
|
|
8,618
|
|
|
|
(13,154
|
)
|
|
|
6,900
|
|
|
|
2,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
35,319
|
|
|
$
|
13,391
|
|
|
$
|
87,394
|
|
|
$
|
95,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.24
|
|
|
$
|
0.22
|
|
|
$
|
0.71
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations and dispositions, net of
income taxes
|
|
|
0.08
|
|
|
|
(0.11
|
)
|
|
|
0.06
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.31
|
|
|
$
|
0.11
|
|
|
$
|
0.77
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares of common stock outstanding
|
|
|
113,425
|
|
|
|
118,207
|
|
|
|
114,063
|
|
|
|
118,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOVE PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|
(per share, continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing operations
|
|
$
|
0.24
|
|
|
$
|
0.22
|
|
|
$
|
0.71
|
|
|
$
|
0.79
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.12
|
|
|
|
0.09
|
|
|
|
0.32
|
|
|
|
0.25
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.05
|
|
|
|
0.00
|
|
|
|
0.10
|
|
|
|
(0.20
|
)
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
0.04
|
|
|
|
0.02
|
|
|
|
Gain on sale of building, net of income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.02
|
)
|
|
|
Restructuring and lease charges, net of income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.06
|
|
|
|
Adjusted EPS
|
|
$
|
0.41
|
|
|
$
|
0.31
|
|
|
$
|
1.18
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
REVENUE AND OPERATING INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
(In thousands)
|
|
|
October 2, 2011
|
|
|
October 3, 2010
|
|
|
October 2, 2011
|
|
|
October 3, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
Revenue
|
|
$
|
207,419
|
|
$
|
194,510
|
|
$
|
628,669
|
|
$
|
580,568
|
|
|
|
|
Purchase accounting adjustments
|
|
|
332
|
|
|
182
|
|
|
893
|
|
|
546
|
|
|
|
|
Adjusted Revenue
|
|
|
207,751
|
|
|
194,692
|
|
|
629,562
|
|
|
581,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
26,672
|
|
|
24,980
|
|
|
74,994
|
|
|
72,606
|
|
|
|
|
OP%
|
|
|
12.9%
|
|
|
12.8%
|
|
|
11.9%
|
|
|
12.5%
|
|
|
|
|
Amortization of intangible assets
|
|
|
12,349
|
|
|
12,117
|
|
|
37,280
|
|
|
34,474
|
|
|
|
|
Purchase accounting adjustments
|
|
|
597
|
|
|
175
|
|
|
2,278
|
|
|
623
|
|
|
|
|
Acquisition-related costs
|
|
|
958
|
|
|
312
|
|
|
3,953
|
|
|
954
|
|
|
|
|
Gain on sale of building
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,356)
|
|
|
|
|
Restructuring and lease charges, net
|
|
|
-
|
|
|
-
|
|
|
1,832
|
|
|
5,858
|
|
|
|
|
Adjusted operating income
|
|
|
40,576
|
|
|
37,584
|
|
|
120,337
|
|
|
111,159
|
|
|
|
|
Adjusted OP%
|
|
|
19.5%
|
|
|
19.3%
|
|
|
19.1%
|
|
|
19.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
Revenue
|
|
|
246,321
|
|
|
224,633
|
|
|
752,426
|
|
|
653,808
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9,587
|
|
|
-
|
|
|
15,404
|
|
|
-
|
|
|
|
|
Adjusted Revenue
|
|
|
255,908
|
|
|
224,633
|
|
|
767,830
|
|
|
653,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
13,641
|
|
|
26,109
|
|
|
63,462
|
|
|
61,813
|
|
|
|
|
OP%
|
|
|
5.5%
|
|
|
11.6%
|
|
|
8.4%
|
|
|
9.5%
|
|
|
|
|
Amortization of intangible assets
|
|
|
7,927
|
|
|
3,575
|
|
|
18,680
|
|
|
10,412
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9,506
|
|
|
-
|
|
|
15,536
|
|
|
-
|
|
|
|
|
Acquisition-related costs
|
|
|
107
|
|
|
(88)
|
|
|
1,108
|
|
|
1,036
|
|
|
|
|
Restructuring and lease charges, net
|
|
|
-
|
|
|
-
|
|
|
1,508
|
|
|
3,975
|
|
|
|
|
Adjusted operating income
|
|
|
31,181
|
|
|
29,596
|
|
|
100,294
|
|
|
77,236
|
|
|
|
|
Adjusted OP%
|
|
|
12.2%
|
|
|
13.2%
|
|
|
13.1%
|
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
Adjusted operating income
|
|
|
(6,105)
|
|
|
(9,672)
|
|
|
(27,416)
|
|
|
(29,139)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
Revenue
|
|
$
|
453,740
|
|
$
|
419,143
|
|
$
|
1,381,095
|
|
$
|
1,234,376
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9,919
|
|
|
182
|
|
|
16,297
|
|
|
546
|
|
|
|
|
Adjusted Revenue
|
|
|
463,659
|
|
|
419,325
|
|
|
1,397,392
|
|
|
1,234,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
34,208
|
|
|
41,417
|
|
|
111,040
|
|
|
105,280
|
|
|
|
|
OP%
|
|
|
7.5%
|
|
|
9.9%
|
|
|
8.0%
|
|
|
8.5%
|
|
|
|
|
Amortization of intangible assets
|
|
|
20,276
|
|
|
15,692
|
|
|
55,960
|
|
|
44,886
|
|
|
|
|
Purchase accounting adjustments
|
|
|
10,103
|
|
|
175
|
|
|
17,814
|
|
|
623
|
|
|
|
|
Acquisition-related costs
|
|
|
1,065
|
|
|
224
|
|
|
5,061
|
|
|
1,990
|
|
|
|
|
Gain on sale of building
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,356)
|
|
|
|
|
Restructuring and lease charges, net
|
|
|
-
|
|
|
-
|
|
|
3,340
|
|
|
9,833
|
|
|
|
|
Adjusted operating income
|
|
$
|
65,652
|
|
$
|
57,508
|
|
$
|
193,215
|
|
$
|
159,256
|
|
|
|
|
Adjusted OP%
|
|
|
14.2%
|
|
|
13.7%
|
|
|
13.8%
|
|
|
12.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN
ACCORDANCE WITH GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
October 2, 2011
|
|
October 3, 2010
|
|
|
October 2, 2011
|
|
October 3, 2010
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
35,319
|
|
|
$
|
13,391
|
|
|
|
$
|
87,394
|
|
|
$
|
95,425
|
|
|
Add: (income) loss from discontinued operations and dispositions,
net of income taxes
|
|
|
(8,618
|
)
|
|
|
13,154
|
|
|
|
|
(6,900
|
)
|
|
|
(2,065
|
)
|
|
Net income from continuing operations
|
|
|
26,701
|
|
|
|
26,545
|
|
|
|
|
80,494
|
|
|
|
93,360
|
|
|
Adjustments to reconcile net income from continuing operations to
net cash provided by continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
1,467
|
|
|
|
2,753
|
|
|
|
|
9,427
|
|
|
|
10,352
|
|
|
Restructuring and lease charges, net
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,340
|
|
|
|
9,833
|
|
|
Amortization of deferred debt issuance costs
|
|
|
844
|
|
|
|
636
|
|
|
|
|
2,114
|
|
|
|
1,906
|
|
|
Depreciation and amortization
|
|
|
28,117
|
|
|
|
22,793
|
|
|
|
|
78,718
|
|
|
|
65,870
|
|
|
Gains on step acquisitions and dispositions, net
|
|
|
200
|
|
|
|
-
|
|
|
|
|
200
|
|
|
|
(28,942
|
)
|
|
Amortization of acquired inventory revaluation
|
|
|
54
|
|
|
|
-
|
|
|
|
|
432
|
|
|
|
-
|
|
|
Changes in assets and liabilities which provided (used) cash,
excluding effects from companies purchased and divested:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
13,469
|
|
|
|
5,902
|
|
|
|
|
17,373
|
|
|
|
(902
|
)
|
|
Inventories, net
|
|
|
(14,278
|
)
|
|
|
(8,555
|
)
|
|
|
|
(17,660
|
)
|
|
|
(23,171
|
)
|
|
Accounts payable
|
|
|
4,326
|
|
|
|
(6,805
|
)
|
|
|
|
(15,512
|
)
|
|
|
8,776
|
|
|
Accrued expenses and other
|
|
|
(11,625
|
)
|
|
|
(36,368
|
)
|
|
|
|
(7,469
|
)
|
|
|
(16,143
|
)
|
|
Net cash provided by operating activities of continuing operations
|
|
|
49,275
|
|
|
|
6,901
|
|
|
|
|
151,457
|
|
|
|
120,939
|
|
|
Net cash (used in) provided by operating activities of discontinued
operations
|
|
|
(1,477
|
)
|
|
|
8,371
|
|
|
|
|
(9,108
|
)
|
|
|
14,392
|
|
|
Net cash provided by operating activities
|
|
|
47,798
|
|
|
|
15,272
|
|
|
|
|
142,349
|
|
|
|
135,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(9,009
|
)
|
|
|
(9,050
|
)
|
|
|
|
(24,979
|
)
|
|
|
(22,882
|
)
|
|
Proceeds from dispositions of property, plant and equipment, net
|
|
|
456
|
|
|
|
-
|
|
|
|
|
456
|
|
|
|
11,014
|
|
|
Changes in restricted cash balances
|
|
|
703
|
|
|
|
-
|
|
|
|
|
1,123
|
|
|
|
(1,200
|
)
|
|
Payments for acquisitions and investments, net of cash and cash
equivalents acquired
|
|
|
(918
|
)
|
|
|
(22,260
|
)
|
|
|
|
(311,269
|
)
|
|
|
(148,988
|
)
|
|
Net cash used in investing activities of continuing operations
|
|
|
(8,768
|
)
|
|
|
(31,310
|
)
|
|
|
|
(334,669
|
)
|
|
|
(162,056
|
)
|
|
Net cash provided by (used in) investing activities of discontinued
operations
|
|
|
4,000
|
|
|
|
(2,407
|
)
|
|
|
|
32,252
|
|
|
|
4,567
|
|
|
Net cash used in investing activities
|
|
|
(4,768
|
)
|
|
|
(33,717
|
)
|
|
|
|
(302,417
|
)
|
|
|
(157,489
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Payments on debt
|
|
|
(249,000
|
)
|
|
|
(46,346
|
)
|
|
|
|
(496,000
|
)
|
|
|
(157,846
|
)
|
|
Proceeds from borrowings
|
|
|
86,000
|
|
|
|
90,000
|
|
|
|
|
580,000
|
|
|
|
261,000
|
|
|
Payments of debt issuance costs
|
|
|
(1,000
|
)
|
|
|
-
|
|
|
|
|
(1,000
|
)
|
|
|
(72
|
)
|
|
Payments on other credit facilities
|
|
|
-
|
|
|
|
(37
|
)
|
|
|
|
(2,303
|
)
|
|
|
(111
|
)
|
|
Payments for acquisition related contingent consideration
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(137
|
)
|
|
|
(136
|
)
|
|
Tax benefit from exercise of common stock options
|
|
|
712
|
|
|
|
58
|
|
|
|
|
9,303
|
|
|
|
82
|
|
|
Proceeds from issuance of common stock under stock plans
|
|
|
118
|
|
|
|
2,124
|
|
|
|
|
23,670
|
|
|
|
15,171
|
|
|
Purchases of common stock
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
|
(110,004
|
)
|
|
|
(995
|
)
|
|
Dividends paid
|
|
|
(7,916
|
)
|
|
|
(8,255
|
)
|
|
|
|
(23,913
|
)
|
|
|
(24,729
|
)
|
|
Net cash (used in) provided by financing activities of continuing
operations
|
|
|
(171,093
|
)
|
|
|
37,544
|
|
|
|
|
(20,384
|
)
|
|
|
92,364
|
|
|
Net cash used in financing activities of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(1,908
|
)
|
|
|
(2,844
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
(171,093
|
)
|
|
|
37,544
|
|
|
|
|
(22,292
|
)
|
|
|
89,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(19,043
|
)
|
|
|
16,225
|
|
|
|
|
10,376
|
|
|
|
3,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(147,106
|
)
|
|
|
35,324
|
|
|
|
|
(171,984
|
)
|
|
|
71,281
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
395,208
|
|
|
|
215,664
|
|
|
|
|
420,086
|
|
|
|
179,707
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
248,102
|
|
|
$
|
250,988
|
|
|
|
$
|
248,102
|
|
|
$
|
250,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
October 2, 2011
|
|
January 2, 2011
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
248,102
|
|
|
$
|
420,086
|
|
|
Accounts receivable, net
|
|
|
359,672
|
|
|
|
356,763
|
|
|
Inventories, net
|
|
|
228,549
|
|
|
|
207,278
|
|
|
Other current assets
|
|
|
93,296
|
|
|
|
100,685
|
|
|
Current assets of discontinued operations
|
|
|
206
|
|
|
|
227
|
|
|
Total current assets
|
|
|
929,825
|
|
|
|
1,085,039
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net:
|
|
|
|
|
|
At cost
|
|
|
441,726
|
|
|
|
416,835
|
|
|
Accumulated depreciation
|
|
|
(275,868
|
)
|
|
|
(255,015
|
)
|
|
Property, plant and equipment, net
|
|
|
165,858
|
|
|
|
161,820
|
|
|
Marketable securities and investments
|
|
|
1,023
|
|
|
|
1,350
|
|
|
Intangible assets, net
|
|
|
512,277
|
|
|
|
424,248
|
|
|
Goodwill
|
|
|
1,758,405
|
|
|
|
1,504,815
|
|
|
Other assets, net
|
|
|
34,550
|
|
|
|
32,101
|
|
|
Total assets
|
|
$
|
3,401,938
|
|
|
$
|
3,209,373
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt
|
|
$
|
358,000
|
|
|
$
|
2,255
|
|
|
Accounts payable
|
|
|
150,813
|
|
|
|
161,042
|
|
|
Accrued restructuring and integration costs
|
|
|
13,079
|
|
|
|
22,611
|
|
|
Accrued expenses
|
|
|
352,518
|
|
|
|
323,038
|
|
|
Current liabilities of discontinued operations
|
|
|
1,547
|
|
|
|
6,256
|
|
|
Total current liabilities
|
|
|
875,957
|
|
|
|
515,202
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
150,000
|
|
|
|
424,000
|
|
|
Long-term liabilities
|
|
|
430,841
|
|
|
|
344,353
|
|
|
Total liabilities
|
|
|
1,456,798
|
|
|
|
1,283,555
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
1,945,140
|
|
|
|
1,925,818
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,401,938
|
|
|
$
|
3,209,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
(In millions, except per share data)
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
453.7
|
|
|
|
|
$
|
419.1
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9.9
|
|
|
|
|
|
0.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
463.7
|
|
|
|
|
$
|
419.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
199.5
|
|
|
43.0
|
%
|
|
$
|
185.8
|
|
|
44.3
|
%
|
|
Amortization of intangible assets
|
|
|
13.9
|
|
|
3.0
|
%
|
|
|
11.1
|
|
|
2.6
|
%
|
|
Purchase accounting adjustments
|
|
|
10.0
|
|
|
2.2
|
%
|
|
|
0.2
|
|
|
0.0
|
%
|
|
Adjusted gross margin
|
|
$
|
223.4
|
|
|
48.2
|
%
|
|
$
|
197.0
|
|
|
47.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
135.1
|
|
|
29.1
|
%
|
|
$
|
120.6
|
|
|
28.7
|
%
|
|
Amortization of intangible assets
|
|
|
(6.3
|
)
|
|
-1.3
|
%
|
|
|
(4.2
|
)
|
|
-1.0
|
%
|
|
Purchase accounting adjustments
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
0.0
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
(1.1
|
)
|
|
-0.2
|
%
|
|
|
(0.2
|
)
|
|
-0.1
|
%
|
|
Adjusted SG&A
|
|
$
|
127.7
|
|
|
27.5
|
%
|
|
$
|
116.1
|
|
|
27.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
30.2
|
|
|
6.5
|
%
|
|
$
|
23.8
|
|
|
5.7
|
%
|
|
Amortization of intangible assets
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
(0.4
|
)
|
|
-0.1
|
%
|
|
Adjusted R&D
|
|
$
|
30.1
|
|
|
6.5
|
%
|
|
$
|
23.4
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
34.2
|
|
|
7.4
|
%
|
|
$
|
41.4
|
|
|
9.9
|
%
|
|
Amortization of intangible assets
|
|
|
20.3
|
|
|
4.4
|
%
|
|
|
15.7
|
|
|
3.7
|
%
|
|
Purchase accounting adjustments
|
|
|
10.1
|
|
|
2.2
|
%
|
|
|
0.2
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
1.1
|
|
|
0.2
|
%
|
|
|
0.2
|
|
|
0.1
|
%
|
|
Adjusted operating income
|
|
$
|
65.7
|
|
|
14.2
|
%
|
|
$
|
57.5
|
|
|
13.7
|
%
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
$
|
0.31
|
|
|
|
|
$
|
0.11
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
0.08
|
|
|
|
|
|
(0.11
|
)
|
|
|
|
EPS from continuing operations
|
|
|
0.24
|
|
|
|
|
|
0.22
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.12
|
|
|
|
|
|
0.09
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.05
|
|
|
|
|
|
0.00
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
0.01
|
|
|
|
|
|
0.00
|
|
|
|
|
Adjusted EPS
|
|
$
|
0.41
|
|
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Three Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
207.4
|
|
|
|
|
$
|
194.5
|
|
|
|
|
Purchase accounting adjustments
|
|
|
0.3
|
|
|
|
|
|
0.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
207.8
|
|
|
|
|
$
|
194.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
26.7
|
|
|
12.8
|
%
|
|
$
|
25.0
|
|
|
12.8
|
%
|
|
Amortization of intangible assets
|
|
|
12.3
|
|
|
5.9
|
%
|
|
|
12.1
|
|
|
6.2
|
%
|
|
Purchase accounting adjustments
|
|
|
0.6
|
|
|
0.3
|
%
|
|
|
0.2
|
|
|
0.1
|
%
|
|
Acquisition-related costs
|
|
|
1.0
|
|
|
0.5
|
%
|
|
|
0.3
|
|
|
0.2
|
%
|
|
Adjusted operating income
|
|
$
|
40.6
|
|
|
19.5
|
%
|
|
$
|
37.6
|
|
|
19.3
|
%
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Three Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
246.3
|
|
|
|
|
$
|
224.6
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9.6
|
|
|
|
|
|
-
|
|
|
|
|
Adjusted revenue
|
|
$
|
255.9
|
|
|
|
|
$
|
224.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
13.6
|
|
|
5.3
|
%
|
|
$
|
26.1
|
|
|
11.6
|
%
|
|
Amortization of intangible assets
|
|
|
7.9
|
|
|
3.1
|
%
|
|
|
3.6
|
|
|
1.6
|
%
|
|
Purchase accounting adjustments
|
|
|
9.5
|
|
|
3.7
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
0.1
|
|
|
0.0
|
%
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
Adjusted operating income
|
|
$
|
31.2
|
|
|
12.2
|
%
|
|
$
|
29.6
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
(In millions, except per share data)
|
|
PKI
|
|
|
|
Nine Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,381.1
|
|
|
|
|
$
|
1,234.4
|
|
|
|
|
Purchase accounting adjustments
|
|
|
16.3
|
|
|
|
|
|
0.5
|
|
|
|
|
Adjusted revenue
|
|
$
|
1,397.4
|
|
|
|
|
$
|
1,234.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
608.8
|
|
|
43.6
|
%
|
|
$
|
550.3
|
|
|
44.6
|
%
|
|
Amortization of intangible assets
|
|
|
38.7
|
|
|
2.8
|
%
|
|
|
31.3
|
|
|
2.5
|
%
|
|
Purchase accounting adjustments
|
|
|
16.7
|
|
|
1.2
|
%
|
|
|
0.5
|
|
|
0.0
|
%
|
|
Adjusted gross margin
|
|
$
|
664.2
|
|
|
47.5
|
%
|
|
$
|
582.2
|
|
|
47.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
409.7
|
|
|
29.3
|
%
|
|
$
|
365.4
|
|
|
29.6
|
%
|
|
Amortization of intangible assets
|
|
|
(16.6
|
)
|
|
-1.2
|
%
|
|
|
(12.4
|
)
|
|
-1.0
|
%
|
|
Purchase accounting adjustments
|
|
|
(1.1
|
)
|
|
-0.1
|
%
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
(5.1
|
)
|
|
-0.4
|
%
|
|
|
(2.0
|
)
|
|
-0.2
|
%
|
|
Gain on sale of building
|
|
|
-
|
|
|
0.0
|
%
|
|
|
3.4
|
|
|
0.3
|
%
|
|
Adjusted SG&A
|
|
$
|
386.9
|
|
|
27.7
|
%
|
|
$
|
354.3
|
|
|
28.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
84.7
|
|
|
6.1
|
%
|
|
$
|
69.8
|
|
|
5.7
|
%
|
|
Amortization of intangible assets
|
|
|
(0.6
|
)
|
|
0.0
|
%
|
|
|
(1.2
|
)
|
|
-0.1
|
%
|
|
Adjusted R&D
|
|
$
|
84.1
|
|
|
6.0
|
%
|
|
$
|
68.6
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
111.0
|
|
|
7.9
|
%
|
|
$
|
105.3
|
|
|
8.5
|
%
|
|
Amortization of intangible assets
|
|
|
56.0
|
|
|
4.0
|
%
|
|
|
44.9
|
|
|
3.6
|
%
|
|
Purchase accounting adjustments
|
|
|
17.8
|
|
|
1.3
|
%
|
|
|
0.6
|
|
|
0.1
|
%
|
|
Acquisition-related costs
|
|
|
5.1
|
|
|
0.4
|
%
|
|
|
2.0
|
|
|
0.2
|
%
|
|
Gain on sale of building
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(3.4
|
)
|
|
-0.3
|
%
|
|
Restructuring and lease charges, net
|
|
|
3.3
|
|
|
0.2
|
%
|
|
|
9.8
|
|
|
0.8
|
%
|
|
Adjusted operating income
|
|
$
|
193.2
|
|
|
13.8
|
%
|
|
$
|
159.3
|
|
|
12.9
|
%
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Nine Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
EPS
|
|
$
|
0.77
|
|
|
|
|
$
|
0.81
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
0.06
|
|
|
|
|
|
0.02
|
|
|
|
|
EPS from continuing operations
|
|
|
0.71
|
|
|
|
|
|
0.79
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.32
|
|
|
|
|
|
0.25
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.10
|
|
|
|
|
|
(0.20
|
)
|
|
|
|
Acquisition-related costs
|
|
|
0.04
|
|
|
|
|
|
0.02
|
|
|
|
|
Gain on sale of building, net of income taxes
|
|
|
-
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
Restructuring and lease charges, net of income taxes
|
|
|
0.02
|
|
|
|
|
|
0.06
|
|
|
|
|
Adjusted EPS
|
|
$
|
1.18
|
|
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
|
|
FY2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
Projected
|
|
|
|
EPS from continuing operations
|
|
|
|
|
|
$
|
0.94 - $0.96 |
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
|
|
0.44
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
|
|
0.17
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
|
|
|
|
0.09
|
|
|
|
|
Restructuring and lease charges, net of income taxes
|
|
|
|
|
|
|
0.02
|
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
$
|
1.66 - $1.68 |
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Nine Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
628.7
|
|
|
|
|
$
|
580.6
|
|
|
|
|
Purchase accounting adjustments
|
|
|
0.9
|
|
|
|
|
|
0.5
|
|
|
|
|
Adjusted revenue
|
|
$
|
629.6
|
|
|
|
|
$
|
581.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
75.0
|
|
|
11.9
|
%
|
|
$
|
72.6
|
|
|
12.5
|
%
|
|
Amortization of intangible assets
|
|
|
37.3
|
|
|
5.9
|
%
|
|
|
34.5
|
|
|
5.9
|
%
|
|
Purchase accounting adjustments
|
|
|
2.3
|
|
|
0.4
|
%
|
|
|
0.6
|
|
|
0.1
|
%
|
|
Acquisition-related costs
|
|
|
4.0
|
|
|
0.6
|
%
|
|
|
1.0
|
|
|
0.2
|
%
|
|
Gain on sale of building
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(3.4
|
)
|
|
-0.6
|
%
|
|
Restructuring and lease charges, net
|
|
|
1.8
|
|
|
0.3
|
%
|
|
|
5.9
|
|
|
1.0
|
%
|
|
Adjusted operating income
|
|
$
|
120.3
|
|
|
19.1
|
%
|
|
$
|
111.2
|
|
|
19.1
|
%
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Nine Months Ended
|
|
|
|
October 2, 2011
|
|
|
|
October 3, 2010
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
752.4
|
|
|
|
|
$
|
653.8
|
|
|
|
|
Purchase accounting adjustments
|
|
|
15.4
|
|
|
|
|
|
-
|
|
|
|
|
Adjusted revenue
|
|
$
|
767.8
|
|
|
|
|
$
|
653.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
63.5
|
|
|
8.3
|
%
|
|
$
|
61.8
|
|
|
9.5
|
%
|
|
Amortization of intangible assets
|
|
|
18.7
|
|
|
2.4
|
%
|
|
|
10.4
|
|
|
1.6
|
%
|
|
Purchase accounting adjustments
|
|
|
15.5
|
|
|
2.0
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
1.1
|
|
|
0.1
|
%
|
|
|
1.0
|
|
|
0.2
|
%
|
|
Restructuring and lease charges, net
|
|
|
1.5
|
|
|
0.2
|
%
|
|
|
4.0
|
|
|
0.6
|
%
|
|
Adjusted operating income
|
|
$
|
100.3
|
|
|
13.1
|
%
|
|
$
|
77.2
|
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Q3 2011
|
|
Organic revenue growth:
|
|
|
|
|
Reported revenue growth
|
|
8%
|
|
Less: effect of foreign exchange rates
|
|
3%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
2%
|
|
Organic revenue growth
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Q3 2011
|
|
Organic revenue growth:
|
|
|
|
|
Reported revenue growth
|
|
7%
|
|
Less: effect of foreign exchange rates
|
|
3%
|
|
Less: effect of acquisitions and purchase accounting adjustments
|
|
2%
|
|
Organic revenue growth
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Q3 2011
|
|
Organic revenue growth:
|
|
|
|
|
Reported revenue growth
|
|
10%
|
|
Less: effect of foreign exchange rates
|
|
3%
|
|
Less: effect of acquisitions and purchase accounting adjustments
|
|
1%
|
|
Organic revenue growth
|
|
6%
|
|
|
|
|
|
Adjusted Revenue and Adjusted Revenue Growth
We use the term "adjusted revenue" to refer to GAAP revenue, including
estimated revenue from contracts acquired in various acquisitions that
will not be fully recognized due to business combination accounting
rules. We use the related term "adjusted revenue growth" to refer to the
measure of comparing current period adjusted revenue with the
corresponding period of the prior year. We believe that these non-GAAP
measures, when taken together with our GAAP financial measures, allow us
and our investors to better measure the performance of our investments
in technology, to evaluate long-term performance trends and to assess
our ability to invest in our business. Adjusted revenue growth also
provides for easier comparisons of our performance with prior and future
periods and relative comparisons to our peers. Our GAAP revenue for the
periods subsequent to our acquisitions does not reflect the full amount
of revenue on such contracts that would have otherwise been recorded by
the acquired businesses. The non-GAAP adjustment is intended to reflect
the full amount of such revenue. We believe our investors will use this
adjustment as a measure of the ongoing performance of the acquired
businesses because customers have historically entered into such
contracts for renewed and/or developmental support, although there can
be no assurance that customers will do so in the future.
Organic Revenue and Organic Revenue Growth
We use the term "organic revenue" to refer to GAAP revenue, excluding
the effect of foreign currency translation and acquisitions, and
including estimated revenue from contracts acquired in various
acquisitions that will not be fully recognized due to business
combination accounting rules. We use the related term "organic revenue
growth" to refer to the measure of comparing current period organic
revenue with the corresponding period of the prior year. We believe that
these non-GAAP measures, when taken together with our GAAP financial
measures, allow us and our investors to better measure the performance
of our investments in technology, to evaluate long-term performance
trends and to assess our ability to invest in our business. Organic
revenue growth also provides for easier comparisons of our performance
with prior and future periods and relative comparisons to our peers. We
exclude the effect of foreign currency translation from these measures
because foreign currency translation is subject to volatility and can
obscure underlying trends. We exclude the effect of acquisitions because
acquisition activity can vary dramatically between reporting periods and
between us and our peers, which we believe makes comparisons of
long-term performance trends difficult for management and investors, and
could result in overstating or understating to our investors the
performance of our operations. We include estimated revenue from
contracts acquired with various acquisitions that will not be fully
recognized due to business combination rules. Our GAAP revenue for the
periods subsequent to our acquisitions does not reflect the full amount
of revenue on such contracts that would have otherwise been recorded by
the acquired businesses. The non-GAAP adjustment is intended to reflect
the full amount of such revenue. We believe our investors will use this
adjustment as a measure of the ongoing performance of the acquired
businesses because customers have historically entered into such
contracts for renewed and/or developmental support, although there can
be no assurance that customers will do so in the future.
Adjusted Gross Margin and Adjusted Gross Margin
Percentage
We use the term "adjusted gross margin" to refer to GAAP gross margin,
excluding amortization of intangible assets, and inventory fair value
adjustments related to business acquisitions, and including estimated
revenue from contracts acquired in various acquisitions that will not be
fully recognized due to business combination accounting rules. We use
the related term "adjusted gross margin percentage" to refer to adjusted
gross margin as a percentage of adjusted revenue. We believe that these
non-GAAP measures, when taken together with our GAAP financial measures,
allow us and our investors to better measure the performance of our
investments in technology, to evaluate the long-term profitability
trends and to assess our ability to invest in our business. We exclude
amortization of intangible assets from these measures because
intangibles amortization charges do not represent what our management
and what we believe our investors consider to be costs of producing our
products and could distort the additional value generated over the cost
of producing those products. In addition, inventory fair value
adjustments related to business acquisitions charges also do not
represent what our management and what we believe our investors consider
to be costs used in producing our products. We include estimated revenue
from contracts acquired with various acquisitions that will not be fully
recognized due to business combination rules. Our GAAP revenue for the
periods subsequent to our acquisitions does not reflect the full amount
of revenue on such contracts that would have otherwise been recorded by
the acquired businesses. The non-GAAP adjustment is intended to reflect
the full amount of such revenue. We believe our investors will use this
adjustment as a measure of the ongoing performance of the acquired
businesses because customers have historically entered into such
contracts for renewed and/or developmental support, although there can
be no assurance that customers will do so in the future.
Adjusted Selling, General and Administrative
(SG&A) Expense and Adjusted SG&A Percentage
We use the term "adjusted SG&A expense" to refer to GAAP SG&A expense,
excluding amortization of intangible assets, acquisition related
integration costs, changes to the fair values assigned to contingent
consideration, other costs related to business acquisitions, and the
gain on sale of building. We use the related term "adjusted SG&A
percentage" to refer to adjusted SG&A expense as a percentage of
adjusted revenue. We believe that these non-GAAP measures, when taken
together with our GAAP financial measures, allow us and our investors to
better measure the cost of the internal operating structure, our ability
to leverage that structure and the level of investment required to grow
our business. We exclude amortization of intangible assets and the gain
on sale of building from these measures because intangibles amortization
charges and the gain on sale of building do not represent what our
management and what we believe our investors consider to be costs that
support our internal operating structure and could distort the
efficiencies of that structure. We exclude acquisition related
integration costs, changes to the fair values assigned to contingent
consideration, other costs related to business acquisitions, because
they only occur due to an acquisition and the potential subsequent
repositioning of the business that could distort the performance
measures of costs to support our internal operating structure.
Adjusted Research and Development (R&D) Expense
and Adjusted R&D Percentage
We use the term "adjusted R&D expense" to refer to GAAP R&D expense,
excluding amortization of intangible assets. We use the related term
"adjusted R&D percentage" to refer to adjusted R&D expense as a
percentage of adjusted revenue. We believe that these non-GAAP measures,
when taken together with our GAAP financial measures, allow us and our
investors to better understand and evaluate our internal technology
investments. We exclude amortization of intangible assets from these
measures because intangibles amortization charges do not represent what
our management and what we believe our investors consider to be internal
investments in R&D activities and could distort our R&D investment level.
Adjusted Operating Income, Adjusted Operating
Profit Percentage and Adjusted Operating Profit Margin
We use the term "adjusted operating income," to refer to GAAP operating
income, excluding amortization of intangible assets, inventory fair
value adjustments related to business acquisitions, acquisition related
integration costs, changes to the fair values assigned to contingent
consideration, other costs related to business acquisitions, the gain on
sale of building, and restructuring and lease charges, and including
estimated revenue from contracts acquired in various acquisitions that
will not be fully recognized due to business combination accounting
rules. Adjusted operating income is calculated by subtracting adjusted
R&D expense, adjusted SG&A expense, and restructuring and lease charges
from adjusted gross margin. We use the related term "adjusted operating
profit percentage," or "adjusted operating profit margin," to refer to
adjusted operating income as a percentage of adjusted revenue. We
believe that these non-GAAP measures, when taken together with our GAAP
financial measures, allow us and our investors to analyze the costs of
the different components of producing and selling our products, to
better measure the performance of our internal investments in technology
and to evaluate the long-term profitability trends of our core
operations. Adjusted operating income also provides for easier
comparisons of our performance and profitability with prior and future
periods and relative comparisons to our peers. We believe our investors
do not consider the items that we exclude from adjusted operating income
to be costs of producing our products, investments in technology and
production or costs to support our internal operating structure, and so
we present this non-GAAP measure to avoid overstating or understating to
our investors the performance of our operations. We exclude
restructuring and lease charges because they tend to occur due to an
acquisition, divestiture, repositioning of the business or other unusual
event that could distort the performance measures of our internal
investments and costs to support our internal operating structure. We
include estimated revenue from contracts acquired with various
acquisitions that will not be fully recognized due to business
combination rules. Our GAAP revenue for the periods subsequent to our
acquisitions does not reflect the full amount of revenue on such
contracts that would have otherwise been recorded by the acquired
businesses. The non-GAAP adjustment is intended to reflect the full
amount of such revenue. We believe our investors will use this
adjustment as a measure of the ongoing performance of the acquired
businesses because customers have historically entered into such
contracts for renewed and/or developmental support, although there can
be no assurance that customers will do so in the future.
Adjusted Earnings Per Share
We use the term "adjusted earnings per share," or "adjusted EPS," to
refer to GAAP earnings per share, excluding discontinued operations,
amortization of intangible assets, inventory fair value adjustments
related to business acquisitions, acquisition related integration costs,
changes to the fair values assigned to contingent consideration, other
costs related to business acquisitions, the gain on sale of building,
restructuring and lease charges, acquisition financing costs, and the
gain on the step acquisition, and including estimated revenue from
contracts acquired in various acquisitions that will not be fully
recognized due to business combination accounting rules. Adjusted
earnings per share is calculated by subtracting the items above included
in adjusted gross margin, adjusted R&D expense, adjusted SG&A expense,
restructuring and lease charges, acquisition related financing costs and
the gain on the step acquisition, and provision for taxes related to
these items, from GAAP earnings per share. We believe that this non-GAAP
measure, when taken together with our GAAP financial measures, allows us
and our investors to analyze the costs of producing and selling our
products and the performance of our internal investments in technology
and our internal operating structure, to evaluate the long-term
profitability trends of our core operations and to calculate the
underlying value of the core business on a dilutive share basis, which
is a key measure of the value of the Company used by our management and
we believe used by investors as well. Adjusted earnings per share also
facilitates the overall analysis of the value of the Company and the
core measure of the success of our operating business model as compared
to prior and future periods and relative comparisons to our peers. We
exclude discontinued operations, amortization of intangible assets,
inventory fair value adjustments related to business acquisitions,
acquisition related integration costs, changes to the fair values
assigned to contingent consideration, other costs related to business
acquisitions, the gain on sale of building, restructuring and lease
charges, acquisition related financing costs, and the gain on the step
acquisition as these items do not represent what our management and what
we believe our investors consider to be costs of producing our products,
investments in technology and production, and costs to support our
internal operating structure, which could result in overstating or
understating to our investors the performance of our operations. We
include estimated revenue from contracts acquired with various
acquisitions that will not be fully recognized due to business
combination rules. Our GAAP revenue for the periods subsequent to our
acquisitions does not reflect the full amount of revenue on such
contracts that would have otherwise been recorded by the acquired
businesses. The non-GAAP adjustment is intended to reflect the full
amount of such revenue. We believe our investors will use this
adjustment as a measure of the ongoing performance of the acquired
businesses because customers have historically entered into such
contracts for renewed and/or developmental support, although there can
be no assurance that customers will do so in the future.
The third quarter tax effect on adjusted EPS for discontinued operations
was an expense of $0.04 in 2011 and a benefit of $0.14 in 2010,
amortization of intangible assets was an expense of $0.06 in 2011 and an
expense of $0.05 in 2010 and the estimated revenue from contracts
acquired with various acquisitions that will not be fully recognized due
to business combination accounting rules was an expense of $0.03 in 2011
and an expense of $0.00 in 2010. The third quarter tax effect on
adjusted EPS for each of the remaining items (inventory fair value
adjustments related to business acquisitions, acquisition related
integration costs, changes to the fair values assigned to contingent
consideration, other costs related to business acquisitions, and
acquisition related financing costs) was $0.00 for both 2011 and 2010.
The full year tax effect on adjusted EPS for discontinued operations was
an expense of $0.04 in 2011 and a benefit of $0.19 in 2010, amortization
of intangible assets was an expense of $0.17 in 2011 and an expense of
$0.13 in 2010, other costs related to business acquisitions was an
expense of $0.01 in 2011 and an expense of $0.00 in 2010, the gain on
sale of building was a benefit of $0.01 in 2010, restructuring and lease
charges was an expense of $0.01 in 2011 and an expense of $0.02 in 2010,
the gain on the step acquisition was a benefit of $0.01 in 2010, and the
estimated revenue from contracts acquired with various acquisitions that
will not be fully recognized due to business combination accounting
rules was an expense of $0.06 in 2011 and an expense of $0.00 in 2010.
The full year tax effect on adjusted EPS for each of the remaining items
(inventory fair value adjustments related to business acquisitions,
acquisition related integration costs, changes to the fair values
assigned to contingent consideration, and acquisition related financing
costs) was $0.00 for both 2011 and 2010. The tax effect for discontinued
operations is calculated based on the authoritative guidance in the
Financial Accounting Standards Board's Accounting Standards Codification
740, Income Taxes. The tax effect for amortization of intangible assets,
inventory fair value adjustments related to business acquisitions,
changes to the fair values assigned to contingent consideration, other
costs related to business acquisitions, the gain on sale of building,
restructuring and lease charges, the gain on the step acquisition, and
the estimated revenue from contracts acquired with various acquisitions
is calculated based on operational results and applicable jurisdictional
law, which contemplates tax rates currently in effect to determine our
tax provision.
* * * *
The non-GAAP financial measures described above are not meant to be
considered superior to, or a substitute for, our financial statements
prepared in accordance with GAAP. There are material limitations
associated with non-GAAP financial measures because they exclude charges
that have an effect on our reported results and, therefore, should not
be relied upon as the sole financial measures to evaluate our financial
results. Management compensates and believes that investors should
compensate for these limitations by viewing the non-GAAP financial
measures in conjunction with the GAAP financial measures. In addition,
the non-GAAP financial measures included in this earnings announcement
may be different from, and therefore may not be comparable to, similar
measures used by other companies.
Each of the non-GAAP financial measures listed above are also used by
our management to evaluate our operating performance, communicate our
financial results to our Board of Directors, benchmark our results
against our historical performance and the performance of our peers,
evaluate investment opportunities including acquisitions and
discontinued operations, and determine the bonus payments for senior
management and employees.
About PerkinElmer
PerkinElmer, Inc. is a global leader focused on improving the health and
safety of people and the environment. The company reported revenue of
approximately $1.7 billion in 2010, has about 6,200 employees serving
customers in more than 150 countries, and is a component of the S&P 500
Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.
PerkinElmer, Inc.
Investor Relations:
David C. Francisco,
781-663-5677
dave.francisco@perkinelmer.com
or
Media
Contact:
Stephanie R. Wasco, 781-663-5701
stephanie.wasco@perkinelmer.com
Source: PerkinElmer, Inc.
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