-
Revenue growth of 9%; Organic revenue growth of 5%
-
GAAP earnings per share from continuing operations of $0.29;
Adjusted earnings per share of $0.53, up 23%
-
Operating profit margin from continuing operations of 10%; Adjusted
operating profit margin of 17%, an increase of 240 basis points
-
FY 2012 GAAP earnings per share guidance of $1.21 to $1.26;
Adjusted earnings per share guidance reaffirmed at $2.00 to $2.05
-
Accelerates growth investments in the second half
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 second quarter ended July 1, 2012.
The Company reported GAAP earnings per share from continuing operations
of $0.29, as compared to $0.26 in the second quarter of 2011. Revenue in
the second quarter of 2012 was $521.8 million, as compared to $479.1
million in the second quarter of 2011. GAAP operating income from
continuing operations for the second quarter of 2012 increased 26% to
$49.8 million, compared to $39.4 million in the second quarter of 2011.
GAAP operating profit margin from continuing operations was 10% in the
second quarter of 2012, compared to 8% in the second quarter of 2011.
Adjusted earnings per share grew 23% to $0.53, compared to $0.43 in the
second quarter of 2011. Adjusted revenue for the quarter grew 10% to
$532.3 million, compared to $485.3 million in the second quarter of
2011. Organic revenue growth was 5% after adjusting for acquisitions
which added 8%, partially offset by a decrease due to foreign currency
translation of 4%. Adjusted operating income for the second quarter of
2012 increased 28% to $89.7 million, compared to $70.3 million for the
same period a year ago. Adjusted operating profit margin was 17%, a 240
basis points improvement compared to the same period a year ago. For the
Company's non-GAAP financial measures, adjustments have been noted in
the attached reconciliations.
"I am pleased with our organization's strong performance in the second
quarter. Our newly expanded range of innovative and higher value
offerings helped us generate healthy organic revenue growth and strong
adjusted earnings per share in the quarter," said Robert Friel, chairman
and chief executive officer of PerkinElmer. "We've had an excellent
first half in 2012 despite the macroeconomic environment and foreign
currency headwinds. While we don't expect economic conditions to improve
over the balance of the year, our strong performance in the first half
enables us to accelerate investments in our long term growth initiatives
in the second half."
Cash Flow:
For the second quarter of 2012, operating cash flow from continuing
operations was $77.4 million as compared to $54.9 million in the same
period of 2011.
Financial Overview by Reporting Segment
Human Health:
-
Revenue of $258.4 million for the second quarter of 2012, as compared
to $218.8 million for the second quarter of 2011.
-
Operating income of $31.5 million, as compared to $28.4 million for
the same period a year ago.
-
Adjusted revenue of $260.5 million for the second quarter of 2012, as
compared to $219.2 million for the second quarter of 2011. Adjusted
revenue increased 19%, organic revenue growth was 4%.
-
Adjusted operating income of $56.4 million, as compared to $44.4
million for the same period a year ago.
-
Adjusted operating profit margin was 22% as a percentage of adjusted
revenue, an increase of 130 basis points as compared to the second
quarter of 2011.
Environmental Health
-
Revenue of $263.4 million for the second quarter of 2012, as compared
to $260.2 million for the second quarter of 2011.
-
Operating income of $28.2 million, as compared to $21.7 million for
the same period a year ago.
-
Adjusted revenue of $271.8 million for the second quarter of 2012, as
compared to $266.1 million for the second quarter of 2011. Adjusted
revenue increased 2%, organic revenue growth was 5%.
-
Adjusted operating income of $43.3 million, as compared to $36.7
million for the same period a year ago.
-
Adjusted operating profit margin was 16% as a percentage of adjusted
revenue, an increase of 210 basis points as compared to the second
quarter of 2011.
Financial Guidance — Full Year 2012
For the full year 2012, the Company reiterates its forecast for organic
revenue to increase in the mid-single digit range relative to 2011. For
the full year 2012, the Company now forecasts GAAP earnings per share
from continuing operations in the range of $1.21 to $1.26 and reaffirms
its previously communicated guidance for adjusted earnings per share,
which is expected to include the adjustments noted in the attached
reconciliation, of $2.00 to $2.05.
Conference Call Information
The Company will discuss its second quarter results and its outlook for
business trends in a conference call on August 2, 2012 at 5:00 p.m.
Eastern Time (ET). To access the call, please dial (617) 213 - 8837
prior to the scheduled conference call time and provide the access code
28473641. A playback of this conference call will be available beginning
7:00 p.m. ET, Thursday, August 2, 2012. The playback phone number is
(617) 801-6888 and the code number is 34863262.
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 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; (5) our failure to adequately protect our intellectual
property; (6) the loss of any of our licenses or licensed rights; (7)
our ability to compete effectively; (8) fluctuation in our quarterly
operating results and our ability to adjust our operations to address
unexpected changes; (9) significant disruption in third-party package
delivery and import/export services or significant increases in prices
for those services; (10) disruptions in the supply of raw materials and
supplies; (11) the manufacture and sale of products exposing us to
product liability claims; (12) our failure to maintain compliance with
applicable government regulations; (13) regulatory changes; (14) our
failure to comply with healthcare industry regulations; (15) economic,
political and other risks associated with foreign operations; (16) our
ability to retain key personnel; (17) significant disruption in our
information technology systems; (18) our ability to obtain future
financing; (19) restrictions in our credit agreements; (20) our ability
to realize the full value of our intangible assets; (21) significant
fluctuations in our stock price; (22) reduction or elimination of
dividends on our common stock; and (23) 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.
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 $1.9 billion in 2011, has about 7,000 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. and Subsidiaries
|
|
CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
(In thousands, except share and per share data)
|
|
July 1, 2012
|
|
July 3, 2011
|
|
July 1, 2012
|
|
July 3, 2011
|
|
|
|
|
|
(As adjusted)
|
|
|
|
(As adjusted)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
521,790
|
|
|
$
|
479,065
|
|
|
$
|
1,032,680
|
|
|
$
|
926,243
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
282,996
|
|
|
|
269,871
|
|
|
|
561,872
|
|
|
|
516,738
|
|
|
Research and development expenses
|
|
|
34,069
|
|
|
|
28,032
|
|
|
|
66,693
|
|
|
|
54,217
|
|
|
Selling, general and administrative expenses
|
|
|
149,735
|
|
|
|
138,403
|
|
|
|
306,584
|
|
|
|
271,098
|
|
|
Restructuring and contract termination charges, net
|
|
|
5,203
|
|
|
|
3,340
|
|
|
|
11,362
|
|
|
|
3,340
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
|
49,787
|
|
|
|
39,419
|
|
|
|
86,169
|
|
|
|
80,850
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
(150
|
)
|
|
|
(483
|
)
|
|
|
(360
|
)
|
|
|
(805
|
)
|
|
Interest expense
|
|
|
11,339
|
|
|
|
4,213
|
|
|
|
22,776
|
|
|
|
8,129
|
|
|
Other expense
|
|
|
169
|
|
|
|
541
|
|
|
|
1,772
|
|
|
|
2,703
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
38,429
|
|
|
|
35,148
|
|
|
|
61,981
|
|
|
|
70,823
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
4,861
|
|
|
|
6,047
|
|
|
|
6,337
|
|
|
|
14,431
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
|
33,568
|
|
|
|
29,101
|
|
|
|
55,644
|
|
|
|
56,392
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on disposition of discontinued operations, before income
taxes
|
|
|
482
|
|
|
|
(157
|
)
|
|
|
1,017
|
|
|
|
(1,741
|
)
|
|
Provision for (benefit from) income taxes on discontinued operations
and dispositions
|
|
|
417
|
|
|
|
(817
|
)
|
|
|
459
|
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from discontinued operations and dispositions
|
|
|
65
|
|
|
|
660
|
|
|
|
558
|
|
|
|
(1,718
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
33,633
|
|
|
$
|
29,761
|
|
|
$
|
56,202
|
|
|
$
|
54,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations
|
|
$
|
0.29
|
|
|
$
|
0.26
|
|
|
$
|
0.49
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from discontinued operations and dispositions
|
|
|
0.00
|
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.29
|
|
|
$
|
0.26
|
|
|
$
|
0.49
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares of common stock outstanding
|
|
|
114,578
|
|
|
|
113,623
|
|
|
|
114,348
|
|
|
|
114,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOVE PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Supplemental Information:
|
|
|
|
|
|
|
|
|
|
(per share, continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS from continuing operations
|
|
$
|
0.29
|
|
|
$
|
0.26
|
|
|
$
|
0.49
|
|
|
$
|
0.49
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.13
|
|
|
|
0.11
|
|
|
|
0.26
|
|
|
|
0.20
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.06
|
|
|
|
0.04
|
|
|
|
0.13
|
|
|
|
0.04
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
0.00
|
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
0.03
|
|
|
Mark to market and curtailments on post-retirement benefits, net of
income taxes
|
|
|
0.00
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
(0.00
|
)
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
0.04
|
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
0.02
|
|
|
Adjusted EPS
|
|
$
|
0.53
|
|
|
$
|
0.43
|
|
|
$
|
0.96
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
REVENUE AND OPERATING INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except percentages)
|
|
|
|
|
July 1, 2012
|
|
|
July 3, 2011
|
|
|
July 1, 2012
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
|
|
(As adjusted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
Revenue
|
|
$
|
258,422
|
|
$
|
218,817
|
|
$
|
512,383
|
|
$
|
420,138
|
|
|
|
Purchase accounting adjustments
|
|
|
2,050
|
|
|
370
|
|
|
4,461
|
|
|
561
|
|
|
|
Adjusted Revenue
|
|
|
260,472
|
|
|
219,187
|
|
|
516,844
|
|
|
420,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
31,538
|
|
|
28,446
|
|
|
53,483
|
|
|
49,983
|
|
|
|
OP%
|
|
|
12.2%
|
|
|
13.0%
|
|
|
10.4%
|
|
|
11.9%
|
|
|
|
Amortization of intangible assets
|
|
|
17,201
|
|
|
12,281
|
|
|
34,867
|
|
|
24,931
|
|
|
|
Purchase accounting adjustments
|
|
|
3,033
|
|
|
1,089
|
|
|
10,503
|
|
|
1,681
|
|
|
|
Acquisition-related costs
|
|
|
153
|
|
|
751
|
|
|
344
|
|
|
2,995
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
4,442
|
|
|
1,832
|
|
|
9,383
|
|
|
1,832
|
|
|
|
Adjusted operating income
|
|
|
56,367
|
|
|
44,399
|
|
|
108,580
|
|
|
81,422
|
|
|
|
Adjusted OP%
|
|
|
21.6%
|
|
|
20.3%
|
|
|
21.0%
|
|
|
19.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
Revenue
|
|
|
263,368
|
|
|
260,248
|
|
|
520,297
|
|
|
506,105
|
|
|
|
Purchase accounting adjustments
|
|
|
8,413
|
|
|
5,817
|
|
|
12,475
|
|
|
5,817
|
|
|
|
Adjusted Revenue
|
|
|
271,781
|
|
|
266,065
|
|
|
532,772
|
|
|
511,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
28,159
|
|
|
21,748
|
|
|
54,554
|
|
|
51,990
|
|
|
|
OP%
|
|
|
10.7%
|
|
|
8.4%
|
|
|
10.5%
|
|
|
10.3%
|
|
|
|
Amortization of intangible assets
|
|
|
6,140
|
|
|
7,018
|
|
|
11,873
|
|
|
10,753
|
|
|
|
Purchase accounting adjustments
|
|
|
8,274
|
|
|
6,030
|
|
|
12,351
|
|
|
6,030
|
|
|
|
Acquisition-related costs
|
|
|
(58)
|
|
|
375
|
|
|
2
|
|
|
1,001
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
761
|
|
|
1,508
|
|
|
1,979
|
|
|
1,508
|
|
|
|
Adjusted operating income
|
|
|
43,276
|
|
|
36,679
|
|
|
80,759
|
|
|
71,282
|
|
|
|
Adjusted OP%
|
|
|
15.9%
|
|
|
13.8%
|
|
|
15.2%
|
|
|
13.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
Operating loss
|
|
|
(9,910)
|
|
|
(10,775)
|
|
|
(21,868)
|
|
|
(21,123)
|
|
|
|
Mark to market and curtailments on post-retirement benefits
|
|
|
-
|
|
|
-
|
|
|
1,219
|
|
|
(163)
|
|
|
|
Adjusted operating loss
|
|
|
(9,910)
|
|
|
(10,775)
|
|
|
(20,649)
|
|
|
(21,286)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
Revenue
|
|
$
|
521,790
|
|
$
|
479,065
|
|
$
|
1,032,680
|
|
$
|
926,243
|
|
|
|
Purchase accounting adjustments
|
|
|
10,463
|
|
|
6,187
|
|
|
16,936
|
|
|
6,378
|
|
|
|
Adjusted Revenue
|
|
|
532,253
|
|
|
485,252
|
|
|
1,049,616
|
|
|
932,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
49,787
|
|
|
39,419
|
|
|
86,169
|
|
|
80,850
|
|
|
|
OP%
|
|
|
9.5%
|
|
|
8.2%
|
|
|
8.3%
|
|
|
8.7%
|
|
|
|
Amortization of intangible assets
|
|
|
23,341
|
|
|
19,299
|
|
|
46,740
|
|
|
35,684
|
|
|
|
Purchase accounting adjustments
|
|
|
11,307
|
|
|
7,119
|
|
|
22,854
|
|
|
7,711
|
|
|
|
Acquisition-related costs
|
|
|
95
|
|
|
1,126
|
|
|
346
|
|
|
3,996
|
|
|
|
Mark to market and curtailments on post-retirement benefits
|
|
|
-
|
|
|
-
|
|
|
1,219
|
|
|
(163)
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
5,203
|
|
|
3,340
|
|
|
11,362
|
|
|
3,340
|
|
|
|
Adjusted operating income
|
|
$
|
89,733
|
|
$
|
70,303
|
|
$
|
168,690
|
|
$
|
131,418
|
|
|
|
Adjusted OP%
|
|
|
16.9%
|
|
|
14.5%
|
|
|
16.1%
|
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN
ACCORDANCE WITH GAAP
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
July 1, 2012
|
|
July 3, 2011
|
|
|
July 1, 2012
|
|
July 3, 2011
|
|
(In thousands)
|
|
|
|
(As adjusted)
|
|
|
|
|
(As adjusted)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
33,633
|
|
|
$
|
29,761
|
|
|
|
$
|
56,202
|
|
|
$
|
54,674
|
|
|
Add: net (income) loss from discontinued operations and
dispositions, net of income taxes
|
|
|
(65
|
)
|
|
|
(660
|
)
|
|
|
|
(558
|
)
|
|
|
1,718
|
|
|
Net income from continuing operations
|
|
|
33,568
|
|
|
|
29,101
|
|
|
|
|
55,644
|
|
|
|
56,392
|
|
|
Adjustments to reconcile net income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
to net cash provided by continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
4,776
|
|
|
|
4,906
|
|
|
|
|
10,252
|
|
|
|
7,960
|
|
|
Restructuring and contract termination charges, net
|
|
|
5,203
|
|
|
|
3,340
|
|
|
|
|
11,362
|
|
|
|
3,340
|
|
|
Amortization of deferred debt issuance costs
|
|
|
878
|
|
|
|
635
|
|
|
|
|
1,745
|
|
|
|
1,270
|
|
|
Depreciation and amortization
|
|
|
32,156
|
|
|
|
26,648
|
|
|
|
|
64,163
|
|
|
|
50,601
|
|
|
Amortization of acquired inventory revaluation
|
|
|
279
|
|
|
|
268
|
|
|
|
|
4,774
|
|
|
|
378
|
|
|
Changes in assets and liabilities which provided (used) cash,
excluding effects from
|
|
|
|
|
|
|
|
|
|
|
companies purchased and divested:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
7,623
|
|
|
|
(20,705
|
)
|
|
|
|
13,473
|
|
|
|
3,904
|
|
|
Inventories, net
|
|
|
318
|
|
|
|
6,177
|
|
|
|
|
(12,652
|
)
|
|
|
(3,566
|
)
|
|
Accounts payable
|
|
|
13,364
|
|
|
|
(3,508
|
)
|
|
|
|
1,645
|
|
|
|
(19,838
|
)
|
|
Accrued expenses and other
|
|
|
(20,752
|
)
|
|
|
8,040
|
|
|
|
|
(57,733
|
)
|
|
|
1,741
|
|
|
Net cash provided by operating activities of continuing operations
|
|
|
77,413
|
|
|
|
54,902
|
|
|
|
|
92,673
|
|
|
|
102,182
|
|
|
Net cash used in operating activities of discontinued operations
|
|
|
(1,023
|
)
|
|
|
(3,002
|
)
|
|
|
|
(744
|
)
|
|
|
(7,631
|
)
|
|
Net cash provided by operating activities
|
|
|
76,390
|
|
|
|
51,900
|
|
|
|
|
91,929
|
|
|
|
94,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(6,221
|
)
|
|
|
(8,289
|
)
|
|
|
|
(11,449
|
)
|
|
|
(15,970
|
)
|
|
Changes in restricted cash balances
|
|
|
200
|
|
|
|
420
|
|
|
|
|
200
|
|
|
|
420
|
|
|
Payments for acquisitions and investments, net of cash and cash
equivalents acquired
|
|
|
-
|
|
|
|
(253,749
|
)
|
|
|
|
-
|
|
|
|
(310,351
|
)
|
|
Net cash used in investing activities of continuing operations
|
|
|
(6,021
|
)
|
|
|
(261,618
|
)
|
|
|
|
(11,249
|
)
|
|
|
(325,901
|
)
|
|
Net cash provided by investing activities of discontinued operations
|
|
|
988
|
|
|
|
28,252
|
|
|
|
|
988
|
|
|
|
28,252
|
|
|
Net cash used in investing activities
|
|
|
(5,033
|
)
|
|
|
(233,366
|
)
|
|
|
|
(10,261
|
)
|
|
|
(297,649
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Payments on debt
|
|
|
(122,000
|
)
|
|
|
(128,800
|
)
|
|
|
|
(244,000
|
)
|
|
|
(247,000
|
)
|
|
Proceeds from borrowings
|
|
|
99,000
|
|
|
|
286,000
|
|
|
|
|
210,000
|
|
|
|
494,000
|
|
|
Payments of debt issuance costs
|
|
|
(137
|
)
|
|
|
-
|
|
|
|
|
(416
|
)
|
|
|
-
|
|
|
Payments on other credit facilities
|
|
|
-
|
|
|
|
(2,265
|
)
|
|
|
|
-
|
|
|
|
(2,303
|
)
|
|
Payments for acquisition related contingent consideration
|
|
|
(9,343
|
)
|
|
|
-
|
|
|
|
|
(9,343
|
)
|
|
|
(137
|
)
|
|
Excess tax benefit from exercise of equity grants
|
|
|
-
|
|
|
|
819
|
|
|
|
|
1,139
|
|
|
|
8,591
|
|
|
Proceeds from stock option exercises
|
|
|
2,247
|
|
|
|
5,522
|
|
|
|
|
11,746
|
|
|
|
23,552
|
|
|
Purchases of common stock
|
|
|
(431
|
)
|
|
|
(773
|
)
|
|
|
|
(2,063
|
)
|
|
|
(109,997
|
)
|
|
Dividends paid
|
|
|
(7,969
|
)
|
|
|
(7,891
|
)
|
|
|
|
(15,891
|
)
|
|
|
(15,997
|
)
|
|
Net cash (used in) provided by financing activities of continuing
operations
|
|
|
(38,633
|
)
|
|
|
152,612
|
|
|
|
|
(48,828
|
)
|
|
|
150,709
|
|
|
Net cash used in financing activities of discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(1,908
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
(38,633
|
)
|
|
|
152,612
|
|
|
|
|
(48,828
|
)
|
|
|
148,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(6,078
|
)
|
|
|
8,214
|
|
|
|
|
(3,779
|
)
|
|
|
29,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
26,646
|
|
|
|
(20,640
|
)
|
|
|
|
29,061
|
|
|
|
(24,878
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
144,757
|
|
|
|
415,848
|
|
|
|
|
142,342
|
|
|
|
420,086
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
171,403
|
|
|
$
|
395,208
|
|
|
|
$
|
171,403
|
|
|
$
|
395,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
July 1, 2012
|
|
January 1, 2012
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
171,403
|
|
|
$
|
142,342
|
|
|
Accounts receivable, net
|
|
|
389,466
|
|
|
|
409,888
|
|
|
Inventories, net
|
|
|
244,436
|
|
|
|
240,763
|
|
|
Other current assets
|
|
|
92,293
|
|
|
|
69,023
|
|
|
Current assets of discontinued operations
|
|
|
202
|
|
|
|
202
|
|
|
Total current assets
|
|
|
897,800
|
|
|
|
862,218
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net:
|
|
|
|
|
|
At cost
|
|
|
456,830
|
|
|
|
451,953
|
|
|
Accumulated depreciation
|
|
|
(289,653
|
)
|
|
|
(277,386
|
)
|
|
Property, plant and equipment, net
|
|
|
167,177
|
|
|
|
174,567
|
|
|
Marketable securities and investments
|
|
|
1,102
|
|
|
|
1,105
|
|
|
Intangible assets, net
|
|
|
613,009
|
|
|
|
661,607
|
|
|
Goodwill
|
|
|
2,080,031
|
|
|
|
2,093,626
|
|
|
Other assets, net
|
|
|
41,818
|
|
|
|
41,075
|
|
|
Total assets
|
|
$
|
3,800,937
|
|
|
$
|
3,834,198
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
174,028
|
|
|
$
|
173,153
|
|
|
Accrued restructuring costs
|
|
|
15,189
|
|
|
|
13,958
|
|
|
Accrued expenses
|
|
|
397,353
|
|
|
|
411,526
|
|
|
Current liabilities of discontinued operations
|
|
|
1,115
|
|
|
|
1,429
|
|
|
Total current liabilities
|
|
|
587,685
|
|
|
|
600,066
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
911,043
|
|
|
|
944,908
|
|
|
Accrued restructuring costs
|
|
|
7,975
|
|
|
|
8,928
|
|
|
Long-term liabilities
|
|
|
408,904
|
|
|
|
438,080
|
|
|
Total liabilities
|
|
|
1,915,607
|
|
|
|
1,991,982
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
1,885,330
|
|
|
|
1,842,216
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,800,937
|
|
|
$
|
3,834,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share data and percentages)
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
521.8
|
|
|
|
|
$
|
479.1
|
|
|
|
|
Purchase accounting adjustments
|
|
|
10.5
|
|
|
|
|
|
6.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
532.3
|
|
|
|
|
$
|
485.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
238.8
|
|
|
45.8
|
%
|
|
$
|
209.2
|
|
|
43.7
|
%
|
|
Amortization of intangible assets
|
|
|
13.0
|
|
|
2.5
|
%
|
|
|
13.4
|
|
|
2.8
|
%
|
|
Purchase accounting adjustments
|
|
|
10.7
|
|
|
2.1
|
%
|
|
|
6.5
|
|
|
1.3
|
%
|
|
Adjusted gross margin
|
|
$
|
262.5
|
|
|
49.3
|
%
|
|
$
|
229.0
|
|
|
47.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
149.7
|
|
|
28.7
|
%
|
|
$
|
138.4
|
|
|
28.9
|
%
|
|
Amortization of intangible assets
|
|
|
(10.1
|
)
|
|
-1.9
|
%
|
|
|
(5.7
|
)
|
|
-1.2
|
%
|
|
Purchase accounting adjustments
|
|
|
(0.6
|
)
|
|
-0.1
|
%
|
|
|
(0.7
|
)
|
|
-0.1
|
%
|
|
Acquisition-related costs
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
(1.1
|
)
|
|
-0.2
|
%
|
|
Adjusted SG&A
|
|
$
|
138.9
|
|
|
26.1
|
%
|
|
$
|
130.9
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
34.1
|
|
|
6.5
|
%
|
|
$
|
28.0
|
|
|
5.9
|
%
|
|
Amortization of intangible assets
|
|
|
(0.3
|
)
|
|
0.0
|
%
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
|
Adjusted R&D
|
|
$
|
33.8
|
|
|
6.4
|
%
|
|
$
|
27.8
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
49.8
|
|
|
9.5
|
%
|
|
$
|
39.4
|
|
|
8.2
|
%
|
|
Amortization of intangible assets
|
|
|
23.3
|
|
|
4.5
|
%
|
|
|
19.3
|
|
|
4.0
|
%
|
|
Purchase accounting adjustments
|
|
|
11.3
|
|
|
2.2
|
%
|
|
|
7.1
|
|
|
1.5
|
%
|
|
Acquisition-related costs
|
|
|
0.1
|
|
|
0.0
|
%
|
|
|
1.1
|
|
|
0.2
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
5.2
|
|
|
1.0
|
%
|
|
|
3.3
|
|
|
0.7
|
%
|
|
Adjusted operating income
|
|
$
|
89.7
|
|
|
16.9
|
%
|
|
$
|
70.3
|
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
EPS
|
|
$
|
0.29
|
|
|
|
|
$
|
0.26
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
0.00
|
|
|
|
|
|
0.01
|
|
|
|
|
EPS from continuing operations
|
|
|
0.29
|
|
|
|
|
|
0.26
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.13
|
|
|
|
|
|
0.11
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.06
|
|
|
|
|
|
0.04
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
0.00
|
|
|
|
|
|
0.01
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
0.04
|
|
|
|
|
|
0.02
|
|
|
|
|
Adjusted EPS
|
|
$
|
0.53
|
|
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
258.4
|
|
|
|
|
$
|
218.8
|
|
|
|
|
Purchase accounting adjustments
|
|
|
2.1
|
|
|
|
|
|
0.4
|
|
|
|
|
Adjusted revenue
|
|
$
|
260.5
|
|
|
|
|
$
|
219.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
31.5
|
|
|
12.2
|
%
|
|
$
|
28.4
|
|
|
13.0
|
%
|
|
Amortization of intangible assets
|
|
|
17.2
|
|
|
6.7
|
%
|
|
|
12.3
|
|
|
5.6
|
%
|
|
Purchase accounting adjustments
|
|
|
3.0
|
|
|
1.2
|
%
|
|
|
1.1
|
|
|
0.5
|
%
|
|
Acquisition-related costs
|
|
|
0.2
|
|
|
0.1
|
%
|
|
|
0.8
|
|
|
0.3
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
4.4
|
|
|
1.7
|
%
|
|
|
1.8
|
|
|
0.8
|
%
|
|
Adjusted operating income
|
|
$
|
56.4
|
|
|
21.6
|
%
|
|
$
|
44.4
|
|
|
20.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
263.4
|
|
|
|
|
$
|
260.2
|
|
|
|
|
Purchase accounting adjustments
|
|
|
8.4
|
|
|
|
|
|
5.8
|
|
|
|
|
Adjusted revenue
|
|
$
|
271.8
|
|
|
|
|
$
|
266.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
28.2
|
|
|
10.7
|
%
|
|
$
|
21.7
|
|
|
8.4
|
%
|
|
Amortization of intangible assets
|
|
|
6.1
|
|
|
2.3
|
%
|
|
|
7.0
|
|
|
2.7
|
%
|
|
Purchase accounting adjustments
|
|
|
8.3
|
|
|
3.1
|
%
|
|
|
6.0
|
|
|
2.3
|
%
|
|
Acquisition-related costs
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
0.4
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
0.8
|
|
|
0.3
|
%
|
|
|
1.5
|
|
|
0.6
|
%
|
|
Adjusted operating income
|
|
$
|
43.3
|
|
|
15.9
|
%
|
|
$
|
36.7
|
|
|
13.8
|
%
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share data and percentages)
|
|
PKI
|
|
|
|
Six Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,032.7
|
|
|
|
|
$
|
926.2
|
|
|
|
|
Purchase accounting adjustments
|
|
|
16.9
|
|
|
|
|
|
6.4
|
|
|
|
|
Adjusted revenue
|
|
$
|
1,049.6
|
|
|
|
|
$
|
932.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
470.8
|
|
|
45.6
|
%
|
|
$
|
409.5
|
|
|
44.2
|
%
|
|
Amortization of intangible assets
|
|
|
25.9
|
|
|
2.5
|
%
|
|
|
24.8
|
|
|
2.7
|
%
|
|
Purchase accounting adjustments
|
|
|
21.7
|
|
|
2.1
|
%
|
|
|
6.8
|
|
|
0.7
|
%
|
|
Mark to market and curtailments on post-retirement benefits
|
|
|
1.2
|
|
|
0.1
|
%
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
|
Adjusted gross margin
|
|
$
|
519.7
|
|
|
49.5
|
%
|
|
$
|
440.9
|
|
|
47.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
306.6
|
|
|
29.7
|
%
|
|
$
|
271.1
|
|
|
29.3
|
%
|
|
Amortization of intangible assets
|
|
|
(20.4
|
)
|
|
-2.0
|
%
|
|
|
(10.3
|
)
|
|
-1.1
|
%
|
|
Purchase accounting adjustments
|
|
|
(1.1
|
)
|
|
-0.1
|
%
|
|
|
(1.0
|
)
|
|
-0.1
|
%
|
|
Acquisition-related costs
|
|
|
(0.3
|
)
|
|
0.0
|
%
|
|
|
(4.0
|
)
|
|
-0.4
|
%
|
|
Adjusted SG&A
|
|
$
|
284.6
|
|
|
27.1
|
%
|
|
$
|
255.8
|
|
|
27.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
66.7
|
|
|
6.5
|
%
|
|
$
|
54.2
|
|
|
5.9
|
%
|
|
Amortization of intangible assets
|
|
|
(0.4
|
)
|
|
0.0
|
%
|
|
|
(0.5
|
)
|
|
-0.1
|
%
|
|
Adjusted R&D
|
|
$
|
66.3
|
|
|
6.3
|
%
|
|
$
|
53.7
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
86.2
|
|
|
8.3
|
%
|
|
$
|
80.9
|
|
|
8.7
|
%
|
|
Amortization of intangible assets
|
|
|
46.7
|
|
|
4.5
|
%
|
|
|
35.7
|
|
|
3.9
|
%
|
|
Purchase accounting adjustments
|
|
|
22.9
|
|
|
2.2
|
%
|
|
|
7.7
|
|
|
0.8
|
%
|
|
Acquisition-related costs
|
|
|
0.3
|
|
|
0.0
|
%
|
|
|
4.0
|
|
|
0.4
|
%
|
|
Mark to market and curtailments on post-retirement benefits
|
|
|
1.2
|
|
|
0.1
|
%
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
11.4
|
|
|
1.1
|
%
|
|
|
3.3
|
|
|
0.4
|
%
|
|
Adjusted operating income
|
|
$
|
168.7
|
|
|
16.1
|
%
|
|
$
|
131.4
|
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Six Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
EPS
|
|
$
|
0.49
|
|
|
|
|
$
|
0.48
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
0.00
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
EPS from continuing operations
|
|
|
0.49
|
|
|
|
|
|
0.49
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.26
|
|
|
|
|
|
0.20
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.13
|
|
|
|
|
|
0.04
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
0.00
|
|
|
|
|
|
0.03
|
|
|
|
|
Mark to market and curtailments on post-retirement benefits, net of
income taxes
|
|
|
0.01
|
|
|
|
|
|
(0.00
|
)
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
0.07
|
|
|
|
|
|
0.02
|
|
|
|
|
Adjusted EPS
|
|
$
|
0.96
|
|
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
December 30, 2012
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
Projected
|
|
|
|
EPS from continuing operations
|
|
|
|
|
|
$
|
1.21 - $1.26 |
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
|
|
0.51
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
|
|
0.17
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
|
|
|
|
0.00
|
|
|
|
|
Mark to market and curtailments on post-retirement benefits,
|
|
|
|
|
|
|
|
|
|
net of income taxes
|
|
|
|
|
|
|
0.01
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
|
|
|
|
0.10
|
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
$
|
2.00 - $2.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Six Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
512.4
|
|
|
|
|
$
|
420.1
|
|
|
|
|
Purchase accounting adjustments
|
|
|
4.5
|
|
|
|
|
|
0.6
|
|
|
|
|
Adjusted revenue
|
|
$
|
516.8
|
|
|
|
|
$
|
420.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
53.5
|
|
|
10.4
|
%
|
|
$
|
50.0
|
|
|
11.9
|
%
|
|
Amortization of intangible assets
|
|
|
34.9
|
|
|
6.8
|
%
|
|
|
24.9
|
|
|
5.9
|
%
|
|
Purchase accounting adjustments
|
|
|
10.5
|
|
|
2.0
|
%
|
|
|
1.7
|
|
|
0.4
|
%
|
|
Acquisition-related costs
|
|
|
0.3
|
|
|
0.1
|
%
|
|
|
3.0
|
|
|
0.7
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
9.4
|
|
|
1.8
|
%
|
|
|
1.8
|
|
|
0.4
|
%
|
|
Adjusted operating income
|
|
$
|
108.6
|
|
|
21.0
|
%
|
|
$
|
81.4
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Six Months Ended
|
|
|
|
July 1, 2012
|
|
|
|
July 3, 2011
|
|
|
|
|
|
|
|
|
|
(As adjusted)
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
520.3
|
|
|
|
|
$
|
506.1
|
|
|
|
|
Purchase accounting adjustments
|
|
|
12.5
|
|
|
|
|
|
5.8
|
|
|
|
|
Adjusted revenue
|
|
$
|
532.8
|
|
|
|
|
$
|
511.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
54.6
|
|
|
10.5
|
%
|
|
$
|
52.0
|
|
|
10.3
|
%
|
|
Amortization of intangible assets
|
|
|
11.9
|
|
|
2.3
|
%
|
|
|
10.8
|
|
|
2.1
|
%
|
|
Purchase accounting adjustments
|
|
|
12.4
|
|
|
2.4
|
%
|
|
|
6.0
|
|
|
1.2
|
%
|
|
Acquisition-related costs
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
1.0
|
|
|
0.2
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
2.0
|
|
|
0.4
|
%
|
|
|
1.5
|
|
|
0.3
|
%
|
|
Adjusted operating income
|
|
$
|
80.8
|
|
|
15.2
|
%
|
|
$
|
71.3
|
|
|
13.9
|
%
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
Organic revenue growth:
|
|
|
|
Reported revenue growth
|
|
9
|
%
|
|
Less: effect of foreign exchange rates
|
|
-4
|
%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
8
|
%
|
|
Organic revenue growth
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
Organic revenue growth:
|
|
|
|
Reported revenue growth
|
|
18
|
%
|
|
Less: effect of foreign exchange rates
|
|
-4
|
%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
17
|
%
|
|
Organic revenue growth
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Three Months Ended
|
|
|
|
July 1, 2012
|
|
Organic revenue growth:
|
|
|
|
Reported revenue growth
|
|
1
|
%
|
|
Less: effect of foreign exchange rates
|
|
-4
|
%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
0
|
%
|
|
Organic revenue growth
|
|
5
|
%
|
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, 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 also
exclude adjustments for mark-to-market accounting and curtailments on
post-retirement benefits, therefore only our projected costs have been
used to calculate our non-GAAP measure. 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 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 and
adjustments for mark-to-market accounting and curtailments on
post-retirement benefits do not represent 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, changes to the fair values
assigned to contingent consideration, and other costs related to
business acquisitions. 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 from these
measures because intangibles amortization charges do not represent 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 changes to the fair values assigned to contingent
consideration and 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
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, Adjusted Operating Profit Margin and Adjusted
Operating 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, changes to the fair
values assigned to contingent consideration, other costs related to
business acquisitions, and restructuring and contract termination
charges, and including estimated revenue from contracts acquired in
various acquisitions that will not be fully recognized due to business
combination accounting rules. We also exclude adjustments for
mark-to-market accounting and curtailments on post-retirement benefits,
therefore only our projected costs have been used to calculate our
non-GAAP measure. Adjusted operating income is calculated by subtracting
adjusted R&D expense and adjusted SG&A expense from adjusted gross
margin. We use the related term "adjusted operating profit percentage,"
"adjusted operating profit margin," or "adjusted operating 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 contract termination 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, changes to the fair values assigned to
contingent consideration, other costs related to business acquisitions,
and restructuring and contract termination charges, and including
estimated revenue from contracts acquired in various acquisitions that
will not be fully recognized due to business combination accounting
rules. We also exclude adjustments for mark-to-market accounting and
curtailments on post-retirement benefits, therefore only our projected
costs have been used to calculate our non-GAAP measure. Adjusted
earnings per share is calculated by subtracting the items above included
in adjusted gross margin, adjusted R&D expense, adjusted SG&A expense,
and restructuring and contract termination charges, 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, changes to the fair values assigned to contingent
consideration, other costs related to business acquisitions, adjustments
for mark-to-market accounting and curtailments on post-retirement
benefits, and restructuring and contract termination charges, as these
items do not represent 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 second quarter tax effect on adjusted EPS for (i) discontinued
operations was an expense of $0.00 in 2012 and a benefit of $0.01 in
2011, (ii) amortization of intangible assets was an expense of $0.07 in
2012 and an expense of $0.06 in 2011, (iii) restructuring and contract
termination charges was an expense of $0.01 for both 2012 and 2011, and
(iv) 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 2012 and an
expense of $0.02 in 2011. The second quarter tax effect on adjusted EPS
for each of the remaining items (inventory fair value adjustments
related to business acquisitions, changes to the fair values assigned to
contingent consideration, other costs related to business acquisitions,
and adjustments for mark-to-market accounting and curtailments on
post-retirement benefits) was $0.00 for both 2012 and 2011. The full
year tax effect on adjusted EPS for (i) discontinued operations was an
expense of $0.00 in 2012 and a benefit of $0.00 in 2011, (ii)
amortization of intangible assets was an expense of $0.14 in 2012 and an
expense of $0.11 in 2011, (iii) inventory fair value adjustments related
to business acquisitions was an expense of $0.02 in 2012 and an expense
of $0.00 in 2011, (iv) other costs related to business acquisitions was
an expense of $0.00 in 2012 and an expense of $0.01 in 2011, (v)
restructuring and contract termination charges was an expense of $0.03
in 2012 and an expense of $0.01 in 2011, and (vi) 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 2012 and an expense of $0.02 in 2011. The full year tax
effect on adjusted EPS for each of the remaining items (changes to the
fair values assigned to contingent consideration and adjustments for
mark-to-market accounting and curtailments on post-retirement benefits)
was $0.00 for both 2012 and 2011. 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, adjustments for mark-to-market
accounting and curtailments on post-retirement benefits, restructuring
and contract termination charges, 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.
Investor Relations:
PerkinElmer, Inc.
Tommy J. Thomas, CPA,
781-663-5889
tommy.thomas@perkinelmer.com
or
Media
Contact:
PerkinElmer, Inc.
Stephanie R. Wasco, 781-663-5701
stephanie.wasco@perkinelmer.com
Source: PerkinElmer, Inc.
News Provided by Acquire Media