-
Revenue growth of 3%; Organic and adjusted revenue growth of 2%
-
GAAP earnings per share from continuing operations of $0.36;
Adjusted earnings per share of $0.49
-
Updates FY2013 GAAP earnings per share guidance from continuing
operations to $1.42 to $1.45; Updates FY2013 adjusted earnings per
share guidance to $2.04 to $2.07
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 September 29, 2013.
The Company reported GAAP earnings per share from continuing operations
of $0.36, compared to $0.25 in the third quarter of 2012. Revenue in the
third quarter of 2013 was $524.3 million, as compared to $509.6 million
in the third quarter of 2012. GAAP operating income from continuing
operations for the third quarter of 2013 was $57.2 million, compared to
$43.2 million in the third quarter of 2012. GAAP operating profit margin
from continuing operations was 10.9% in the third quarter of 2013,
compared to 8.5% in the third quarter of 2012.
Adjusted earnings per share was $0.49, compared to $0.45 in the third
quarter of 2012. Adjusted revenue and organic revenue both increased 2%
for the quarter. Adjusted revenue was $525.1 million, compared to $514.8
million in the third quarter of 2012. Adjusted operating income for the
third quarter of 2013 was $81.6 million, compared to $78.3 million for
the same period a year ago. Adjusted operating profit margin was 15.5%
as a percentage of adjusted revenue, compared to 15.2% for the same
period a year ago. Adjustments for the Company's non-GAAP financial
measures have been noted in the attached reconciliations.
"I am pleased with our third quarter performance as we were able to grow
both revenue and adjusted earnings per share and expand operating
margins," said Robert Friel, chairman and chief executive officer of
PerkinElmer. "While I remain encouraged by the resiliency we are seeing
across much of the portfolio, the global economic environment remains
challenging. We believe, however, that the growth and productivity
investments deployed over the past year should help us in the successful
delivery of our full year commitments as we build a strong foundation
for the future."
Cash Flow
For the nine months ending September 29, 2013, operating cash flow from
continuing operations was $87.0 million as compared to $113.8 million
for the same period a year ago. Adjusted operating cash flow was $161.8
million as compared to $150.3 million for the same period a year ago.
Financial Overview by Reporting Segment for the Third Quarter 2013
Human Health
-
Revenue of $292.4 million, as compared to $287.3 million for the third
quarter of 2012.
-
Operating income of $43.9 million, as compared to $34.4 million for
the same period a year ago.
-
Adjusted revenue of $293.2 million, as compared to $292.5 million for
the third quarter of 2012.
-
Adjusted operating income of $65.6 million, as compared to $63.1
million for the same period a year ago.
-
Adjusted operating profit margin was 22.4% as a percentage of adjusted
revenue, an increase of approximately 80 basis points as compared to
the third quarter of 2012.
Environmental Health
-
Revenue of $231.9 million, as compared to $222.4 million for the third
quarter of 2012. Revenue and organic revenue increased 4%.
-
Operating income of $21.9 million, as compared to $18.5 million for
the same period a year ago.
-
Adjusted operating income of $24.5 million, as compared to $24.9
million for the same period a year ago.
-
Adjusted operating profit margin was 10.6% as a percentage of revenue,
a decrease of approximately 60 basis points as compared to the third
quarter of 2012.
Financial Guidance — Updated
For the full year 2013, the Company continues to forecast organic
revenue to increase in the low-single digit range relative to 2012. For
the full year 2013, the Company now forecasts GAAP earnings per share
from continuing operations in the range of $1.42 to $1.45 and on a
non-GAAP basis, which is expected to include the adjustments noted in
the attached reconciliation, updates adjusted earnings per share to a
range of $2.04 to $2.07 from a range of $2.03 to $2.10.
Conference Call Information
The Company will discuss its third quarter results and its outlook for
business trends in a conference call on October 30, 2013 at 5:00 p.m.
Eastern Time (ET). To access the call, please dial (857) 244-7318 prior
to the scheduled conference call time and provide the access code
41687195. A playback of this conference call will be available beginning
7:00 p.m. ET, Wednesday, October 30, 2013. The playback phone number is
(617) 801-6888 and the code number is 98229902.
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 $2.1 billion in 2012, has about 7,400 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
|
|
Nine Months Ended
|
|
(In thousands, except per share data)
|
|
September 29,
2013
|
|
September 30,
2012
|
|
September 29,
2013
|
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
524,277
|
|
|
$
|
509,604
|
|
|
$
|
1,572,952
|
|
|
$
|
1,542,284
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
290,765
|
|
|
|
278,864
|
|
|
|
872,256
|
|
|
|
840,736
|
|
|
Selling, general and administrative expenses
|
|
|
143,649
|
|
|
|
145,442
|
|
|
|
443,901
|
|
|
|
452,026
|
|
|
Research and development expenses
|
|
|
31,541
|
|
|
|
32,408
|
|
|
|
100,321
|
|
|
|
99,101
|
|
|
Restructuring and contract termination charges, net
|
|
|
1,126
|
|
|
|
9,672
|
|
|
|
23,713
|
|
|
|
21,034
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
|
57,196
|
|
|
|
43,218
|
|
|
|
132,761
|
|
|
|
129,387
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
(119
|
)
|
|
|
(74
|
)
|
|
|
(288
|
)
|
|
|
(434
|
)
|
|
Interest expense
|
|
|
11,704
|
|
|
|
11,360
|
|
|
|
35,310
|
|
|
|
34,136
|
|
|
Other expense, net
|
|
|
755
|
|
|
|
586
|
|
|
|
2,223
|
|
|
|
2,358
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
44,856
|
|
|
|
31,346
|
|
|
|
95,516
|
|
|
|
93,327
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes
|
|
|
4,557
|
|
|
|
2,357
|
|
|
|
(4,008
|
)
|
|
|
8,694
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
40,299
|
|
|
|
28,989
|
|
|
|
99,524
|
|
|
|
84,633
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on disposition of discontinued operations, before
income taxes
|
|
|
(64
|
)
|
|
|
898
|
|
|
|
457
|
|
|
|
1,915
|
|
|
Provision for (benefit from) income taxes on discontinued operations
and dispositions
|
|
|
37
|
|
|
|
293
|
|
|
|
(358
|
)
|
|
|
752
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations and dispositions
|
|
|
(101
|
)
|
|
|
605
|
|
|
|
815
|
|
|
|
1,163
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
40,198
|
|
|
$
|
29,594
|
|
|
$
|
100,339
|
|
|
$
|
85,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.36
|
|
|
$
|
0.25
|
|
|
$
|
0.88
|
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations and dispositions
|
|
|
(0.00
|
)
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.36
|
|
|
$
|
0.26
|
|
|
$
|
0.88
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares of common stock outstanding
|
|
|
113,115
|
|
|
|
114,998
|
|
|
|
113,516
|
|
|
|
114,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOVE PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Supplemental Information (1):
|
|
|
|
|
|
|
|
|
|
(per share, continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS from continuing operations
|
|
$
|
0.36
|
|
|
$
|
0.25
|
|
|
$
|
0.88
|
|
|
$
|
0.74
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.39
|
|
|
|
0.39
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
(0.00
|
)
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.14
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
(0.00
|
)
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.01
|
|
|
Mark to market on post-retirement benefits, net of income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.00
|
)
|
|
|
0.01
|
|
|
Significant tax credits
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.08
|
)
|
|
|
-
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
0.01
|
|
|
|
0.06
|
|
|
|
0.14
|
|
|
|
0.13
|
|
|
Adjusted EPS
|
|
$
|
0.49
|
|
|
$
|
0.45
|
|
|
$
|
1.35
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
REVENUE AND OPERATING INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
(In thousands, except percentages)
|
|
|
|
|
September 29,
2013
|
|
|
September 30,
2012
|
|
|
September 29,
2013
|
|
|
September 30,
2012
|
|
|
|
|
|
|
|
|
|
(as adjusted)
|
|
|
|
|
(as adjusted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
Reported revenue
|
|
$
|
292,384
|
|
|
$
|
287,253
|
|
|
$
|
873,656
|
|
|
$
|
855,784
|
|
|
|
|
Purchase accounting adjustments
|
|
|
842
|
|
|
|
5,237
|
|
|
|
6,573
|
|
|
|
22,173
|
|
|
|
|
Adjusted Revenue
|
|
|
293,226
|
|
|
|
292,490
|
|
|
|
880,229
|
|
|
|
877,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
43,901
|
|
|
|
34,398
|
|
|
|
98,997
|
|
|
|
82,962
|
|
|
|
|
OP%
|
|
|
15.0
|
%
|
|
|
12.0
|
%
|
|
|
11.3
|
%
|
|
|
9.7
|
%
|
|
|
|
Amortization of intangible assets
|
|
|
20,566
|
|
|
|
19,702
|
|
|
|
60,388
|
|
|
|
60,870
|
|
|
|
|
Purchase accounting adjustments
|
|
|
161
|
|
|
|
3,108
|
|
|
|
6,046
|
|
|
|
25,962
|
|
|
|
|
Acquisition-related costs
|
|
|
(50
|
)
|
|
|
204
|
|
|
|
(21
|
)
|
|
|
543
|
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
1,042
|
|
|
|
5,660
|
|
|
|
14,860
|
|
|
|
15,043
|
|
|
|
|
Adjusted operating income
|
|
|
65,620
|
|
|
|
63,072
|
|
|
|
180,270
|
|
|
|
185,380
|
|
|
|
|
Adjusted OP%
|
|
|
22.4
|
%
|
|
|
21.6
|
%
|
|
|
20.5
|
%
|
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
Reported revenue
|
|
|
231,893
|
|
|
|
222,351
|
|
|
|
699,296
|
|
|
|
686,500
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9
|
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
|
Adjusted Revenue
|
|
|
231,902
|
|
|
|
222,351
|
|
|
|
699,305
|
|
|
|
686,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
21,896
|
|
|
|
18,475
|
|
|
|
61,922
|
|
|
|
77,948
|
|
|
|
|
OP%
|
|
|
9.4
|
%
|
|
|
8.3
|
%
|
|
|
8.9
|
%
|
|
|
11.4
|
%
|
|
|
|
Amortization of intangible assets
|
|
|
2,531
|
|
|
|
2,282
|
|
|
|
7,467
|
|
|
|
7,854
|
|
|
|
|
Purchase accounting adjustments
|
|
|
9
|
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
|
Acquisition-related costs
|
|
|
17
|
|
|
|
87
|
|
|
|
125
|
|
|
|
94
|
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
84
|
|
|
|
4,012
|
|
|
|
8,853
|
|
|
|
5,991
|
|
|
|
|
Adjusted operating income
|
|
|
24,537
|
|
|
|
24,856
|
|
|
|
78,376
|
|
|
|
91,887
|
|
|
|
|
Adjusted OP%
|
|
|
10.6
|
%
|
|
|
11.2
|
%
|
|
|
11.2
|
%
|
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
Reported operating loss
|
|
|
(8,601
|
)
|
|
|
(9,655
|
)
|
|
|
(28,158
|
)
|
|
|
(31,523
|
)
|
|
|
|
Mark to market on post-retirement benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
(47
|
)
|
|
|
1,219
|
|
|
|
|
Adjusted operating loss
|
|
|
(8,601
|
)
|
|
|
(9,655
|
)
|
|
|
(28,205
|
)
|
|
|
(30,304
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
Reported revenue
|
|
$
|
524,277
|
|
|
$
|
509,604
|
|
|
$
|
1,572,952
|
|
|
$
|
1,542,284
|
|
|
|
|
Purchase accounting adjustments
|
|
|
851
|
|
|
|
5,237
|
|
|
|
6,582
|
|
|
|
22,173
|
|
|
|
|
Adjusted Revenue
|
|
|
525,128
|
|
|
|
514,841
|
|
|
|
1,579,534
|
|
|
|
1,564,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
57,196
|
|
|
|
43,218
|
|
|
|
132,761
|
|
|
|
129,387
|
|
|
|
|
OP%
|
|
|
10.9
|
%
|
|
|
8.5
|
%
|
|
|
8.4
|
%
|
|
|
8.4
|
%
|
|
|
|
Amortization of intangible assets
|
|
|
23,097
|
|
|
|
21,984
|
|
|
|
67,855
|
|
|
|
68,724
|
|
|
|
|
Purchase accounting adjustments
|
|
|
170
|
|
|
|
3,108
|
|
|
|
6,055
|
|
|
|
25,962
|
|
|
|
|
Acquisition-related costs
|
|
|
(33
|
)
|
|
|
291
|
|
|
|
104
|
|
|
|
637
|
|
|
|
|
Mark to market on post-retirement benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
(47
|
)
|
|
|
1,219
|
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
1,126
|
|
|
|
9,672
|
|
|
|
23,713
|
|
|
|
21,034
|
|
|
|
|
Adjusted operating income
|
|
$
|
81,556
|
|
|
$
|
78,273
|
|
|
$
|
230,441
|
|
|
$
|
246,963
|
|
|
|
|
Adjusted OP%
|
|
|
15.5
|
%
|
|
|
15.2
|
%
|
|
|
14.6
|
%
|
|
|
15.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
September 29,
2013
|
|
September 30,
2012
|
|
|
September 29,
2013
|
|
September 30,
2012
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
40,198
|
|
|
$
|
29,594
|
|
|
|
$
|
100,339
|
|
|
$
|
85,796
|
|
|
Less: loss (income) from discontinued operations and dispositions,
net of income taxes
|
|
|
101
|
|
|
|
(605
|
)
|
|
|
|
(815
|
)
|
|
|
(1,163
|
)
|
|
Income from continuing operations
|
|
|
40,299
|
|
|
|
28,989
|
|
|
|
|
99,524
|
|
|
|
84,633
|
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
3,781
|
|
|
|
5,100
|
|
|
|
|
11,423
|
|
|
|
15,352
|
|
|
Restructuring and contract termination charges, net
|
|
|
1,126
|
|
|
|
9,672
|
|
|
|
|
23,713
|
|
|
|
21,034
|
|
|
Amortization of deferred debt issuance costs, interest rate hedges
and accretion of discounts
|
|
|
918
|
|
|
|
910
|
|
|
|
|
2,598
|
|
|
|
2,655
|
|
|
Depreciation and amortization
|
|
|
33,643
|
|
|
|
30,628
|
|
|
|
|
96,453
|
|
|
|
94,791
|
|
|
Gains on disposition
|
|
|
(1,566
|
)
|
|
|
-
|
|
|
|
|
(1,566
|
)
|
|
|
-
|
|
|
Amortization of acquired inventory revaluation
|
|
|
-
|
|
|
|
-
|
|
|
|
|
203
|
|
|
|
4,774
|
|
|
Changes in operating assets and liabilities which provided
(used) cash, excluding effects from companies purchased and
divested:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
12,209
|
|
|
|
1,615
|
|
|
|
|
26,839
|
|
|
|
15,088
|
|
|
Inventories, net
|
|
|
(14,232
|
)
|
|
|
(11,795
|
)
|
|
|
|
(31,782
|
)
|
|
|
(24,447
|
)
|
|
Accounts payable
|
|
|
(9,513
|
)
|
|
|
(20,256
|
)
|
|
|
|
(6,035
|
)
|
|
|
(18,611
|
)
|
|
Accrued expenses and other
|
|
|
(18,413
|
)
|
|
|
(23,759
|
)
|
|
|
|
(134,391
|
)
|
|
|
(81,492
|
)
|
|
Net cash provided by operating activities of continuing operations
|
|
|
48,252
|
|
|
|
21,104
|
|
|
|
|
86,979
|
|
|
|
113,777
|
|
|
Net cash used in operating activities of discontinued operations
|
|
|
(157
|
)
|
|
|
(387
|
)
|
|
|
|
(91
|
)
|
|
|
(1,131
|
)
|
|
Net cash provided by operating activities
|
|
|
48,095
|
|
|
|
20,717
|
|
|
|
|
86,888
|
|
|
|
112,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(8,712
|
)
|
|
|
(12,901
|
)
|
|
|
|
(31,564
|
)
|
|
|
(24,350
|
)
|
|
Proceeds from dispositions of property, plant and equipment, net
|
|
|
52,202
|
|
|
|
-
|
|
|
|
|
52,202
|
|
|
|
-
|
|
|
Proceeds from surrender of life insurance policies
|
|
|
563
|
|
|
|
-
|
|
|
|
|
783
|
|
|
|
-
|
|
|
Changes in restricted cash balances
|
|
|
-
|
|
|
|
470
|
|
|
|
|
-
|
|
|
|
670
|
|
|
Activity related to acquisitions and investments, net of cash and
cash equivalents acquired
|
|
|
(7,000
|
)
|
|
|
(6,750
|
)
|
|
|
|
(7,049
|
)
|
|
|
(6,750
|
)
|
|
Net cash provided by (used in) investing activities of continuing
operations
|
|
|
37,053
|
|
|
|
(19,181
|
)
|
|
|
|
14,372
|
|
|
|
(30,430
|
)
|
|
Net cash provided by investing activities of discontinued operations
|
|
|
-
|
|
|
|
988
|
|
|
|
|
494
|
|
|
|
1,976
|
|
|
Net cash provided by (used in) investing activities
|
|
|
37,053
|
|
|
|
(18,193
|
)
|
|
|
|
14,866
|
|
|
|
(28,454
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Payments on revolving credit facility
|
|
|
(147,000
|
)
|
|
|
(89,000
|
)
|
|
|
|
(429,000
|
)
|
|
|
(333,000
|
)
|
|
Proceeds from revolving credit facility
|
|
|
79,000
|
|
|
|
81,000
|
|
|
|
|
419,000
|
|
|
|
291,000
|
|
|
Payments of debt issuance costs
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(416
|
)
|
|
Settlement of cash flow hedges
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,363
|
|
|
|
-
|
|
|
Net proceeds from (payments on) other credit facilities
|
|
|
266
|
|
|
|
(143
|
)
|
|
|
|
5,530
|
|
|
|
(143
|
)
|
|
Payments for acquisition-related contingent consideration
|
|
|
-
|
|
|
|
(3,116
|
)
|
|
|
|
-
|
|
|
|
(12,459
|
)
|
|
Excess tax benefit from exercise of common stock options
|
|
|
-
|
|
|
|
628
|
|
|
|
|
-
|
|
|
|
1,767
|
|
|
Proceeds from issuance of common stock under stock plans
|
|
|
8,003
|
|
|
|
11,198
|
|
|
|
|
15,292
|
|
|
|
22,944
|
|
|
Purchases of common stock
|
|
|
(193
|
)
|
|
|
(29
|
)
|
|
|
|
(127,186
|
)
|
|
|
(2,092
|
)
|
|
Dividends paid
|
|
|
(7,841
|
)
|
|
|
(7,984
|
)
|
|
|
|
(23,733
|
)
|
|
|
(23,875
|
)
|
|
Net cash used in financing activities
|
|
|
(67,765
|
)
|
|
|
(7,446
|
)
|
|
|
|
(138,734
|
)
|
|
|
(56,274
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
2,450
|
|
|
|
4,347
|
|
|
|
|
(2,161
|
)
|
|
|
568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
19,833
|
|
|
|
(575
|
)
|
|
|
|
(39,141
|
)
|
|
|
28,486
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
112,470
|
|
|
|
171,403
|
|
|
|
|
171,444
|
|
|
|
142,342
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
132,303
|
|
|
$
|
170,828
|
|
|
|
$
|
132,303
|
|
|
$
|
170,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
September 29, 2013
|
|
December 30, 2012
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
132,303
|
|
|
$
|
171,444
|
|
|
Accounts receivable, net
|
|
|
428,531
|
|
|
|
457,011
|
|
|
Inventories, net
|
|
|
278,351
|
|
|
|
247,688
|
|
|
Other current assets
|
|
|
109,239
|
|
|
|
95,611
|
|
|
Total current assets
|
|
|
948,424
|
|
|
|
971,754
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net:
|
|
|
|
|
|
At cost
|
|
|
508,411
|
|
|
|
513,479
|
|
|
Accumulated depreciation
|
|
|
(313,716
|
)
|
|
|
(302,963
|
)
|
|
Property, plant and equipment, net
|
|
|
194,695
|
|
|
|
210,516
|
|
|
Marketable securities and investments
|
|
|
1,220
|
|
|
|
1,149
|
|
|
Intangible assets, net
|
|
|
481,417
|
|
|
|
529,901
|
|
|
Goodwill
|
|
|
2,131,051
|
|
|
|
2,122,788
|
|
|
Other assets, net
|
|
|
94,719
|
|
|
|
65,654
|
|
|
Total assets
|
|
$
|
3,851,526
|
|
|
$
|
3,901,762
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt
|
|
$
|
2,622
|
|
|
$
|
1,772
|
|
|
Accounts payable
|
|
|
162,523
|
|
|
|
168,943
|
|
|
Short-term accrued restructuring
|
|
|
27,739
|
|
|
|
21,364
|
|
|
Accrued expenses and other current liabilities
|
|
|
396,126
|
|
|
|
388,026
|
|
|
Current liabilities of discontinued operations
|
|
|
381
|
|
|
|
995
|
|
|
Total current liabilities
|
|
|
589,391
|
|
|
|
581,100
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
933,292
|
|
|
|
938,824
|
|
|
Long-term accrued restructuring
|
|
|
4,816
|
|
|
|
6,387
|
|
|
Long-term liabilities
|
|
|
404,456
|
|
|
|
435,639
|
|
|
Total liabilities
|
|
|
1,931,955
|
|
|
|
1,961,950
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
1,919,571
|
|
|
|
1,939,812
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,851,526
|
|
|
$
|
3,901,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
524.3
|
|
|
|
|
$
|
509.6
|
|
|
|
|
Purchase accounting adjustments
|
|
|
0.9
|
|
|
|
|
|
5.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
525.1
|
|
|
|
|
$
|
514.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
233.5
|
|
|
44.5
|
%
|
|
$
|
230.7
|
|
|
45.3
|
%
|
|
Amortization of intangible assets
|
|
|
14.2
|
|
|
2.7
|
%
|
|
|
12.7
|
|
|
2.5
|
%
|
|
Purchase accounting adjustments
|
|
|
1.0
|
|
|
0.2
|
%
|
|
|
5.2
|
|
|
1.0
|
%
|
|
Adjusted gross margin
|
|
$
|
248.8
|
|
|
47.4
|
%
|
|
$
|
248.7
|
|
|
48.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
143.6
|
|
|
27.4
|
%
|
|
$
|
145.4
|
|
|
28.5
|
%
|
|
Amortization of intangible assets
|
|
|
(8.8
|
)
|
|
-1.7
|
%
|
|
|
(9.2
|
)
|
|
-1.8
|
%
|
|
Purchase accounting adjustments
|
|
|
1.1
|
|
|
0.2
|
%
|
|
|
2.1
|
|
|
0.4
|
%
|
|
Acquisition-related costs
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
(0.3
|
)
|
|
-0.1
|
%
|
|
Adjusted SG&A
|
|
$
|
135.9
|
|
|
25.9
|
%
|
|
$
|
138.1
|
|
|
26.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
31.5
|
|
|
6.0
|
%
|
|
$
|
32.4
|
|
|
6.4
|
%
|
|
Amortization of intangible assets
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
Purchase accounting adjustments
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
Adjusted R&D
|
|
$
|
31.3
|
|
|
6.0
|
%
|
|
$
|
32.3
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
57.2
|
|
|
10.9
|
%
|
|
$
|
43.2
|
|
|
8.5
|
%
|
|
Amortization of intangible assets
|
|
|
23.1
|
|
|
4.4
|
%
|
|
|
22.0
|
|
|
4.3
|
%
|
|
Purchase accounting adjustments
|
|
|
0.2
|
|
|
0.0
|
%
|
|
|
3.1
|
|
|
0.6
|
%
|
|
Acquisition-related costs
|
|
|
(0.0
|
)
|
|
0.0
|
%
|
|
|
0.3
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
1.1
|
|
|
0.2
|
%
|
|
|
9.7
|
|
|
1.9
|
%
|
|
Adjusted operating income
|
|
$
|
81.6
|
|
|
15.5
|
%
|
|
$
|
78.3
|
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
$
|
0.36
|
|
|
|
|
$
|
0.26
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
(0.00
|
)
|
|
|
|
|
0.01
|
|
|
|
|
GAAP EPS from continuing operations
|
|
|
0.36
|
|
|
|
|
|
0.25
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.13
|
|
|
|
|
|
0.13
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
(0.00
|
)
|
|
|
|
|
0.01
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
(0.00
|
)
|
|
|
|
|
0.00
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
0.01
|
|
|
|
|
|
0.06
|
|
|
|
|
Adjusted EPS
|
|
$
|
0.49
|
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Three Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
292.4
|
|
|
|
|
$
|
287.3
|
|
|
|
|
Purchase accounting adjustments
|
|
|
0.8
|
|
|
|
|
|
5.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
293.2
|
|
|
|
|
$
|
292.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
43.9
|
|
|
15.0
|
%
|
|
$
|
34.4
|
|
|
12.0
|
%
|
|
Amortization of intangible assets
|
|
|
20.6
|
|
|
7.0
|
%
|
|
|
19.7
|
|
|
6.9
|
%
|
|
Purchase accounting adjustments
|
|
|
0.2
|
|
|
0.1
|
%
|
|
|
3.1
|
|
|
1.1
|
%
|
|
Acquisition-related costs
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
0.2
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
1.0
|
|
|
0.4
|
%
|
|
|
5.7
|
|
|
2.0
|
%
|
|
Adjusted operating income
|
|
$
|
65.6
|
|
|
22.4
|
%
|
|
$
|
63.1
|
|
|
21.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Three Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
231.9
|
|
|
|
|
$
|
222.4
|
|
|
|
|
Purchase accounting adjustments
|
|
|
0.0
|
|
|
|
|
|
-
|
|
|
|
|
Adjusted revenue
|
|
$
|
231.9
|
|
|
|
|
$
|
222.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
21.9
|
|
|
9.4
|
%
|
|
$
|
18.5
|
|
|
8.3
|
%
|
|
Amortization of intangible assets
|
|
|
2.5
|
|
|
1.1
|
%
|
|
|
2.3
|
|
|
1.0
|
%
|
|
Purchase accounting adjustments
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
0.1
|
|
|
0.0
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
0.1
|
|
|
0.0
|
%
|
|
|
4.0
|
|
|
1.8
|
%
|
|
Adjusted operating income
|
|
$
|
24.5
|
|
|
10.6
|
%
|
|
$
|
24.9
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share data and percentages)
|
|
PKI
|
|
|
|
Nine Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,573.0
|
|
|
|
|
$
|
1,542.3
|
|
|
|
|
Purchase accounting adjustments
|
|
|
6.6
|
|
|
|
|
|
22.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
1,579.5
|
|
|
|
|
$
|
1,564.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
700.7
|
|
|
44.5
|
%
|
|
$
|
701.5
|
|
|
45.5
|
%
|
|
Amortization of intangible assets
|
|
|
39.8
|
|
|
2.5
|
%
|
|
|
38.7
|
|
|
2.5
|
%
|
|
Purchase accounting adjustments
|
|
|
7.0
|
|
|
0.4
|
%
|
|
|
26.9
|
|
|
1.7
|
%
|
|
Mark to market on post-retirement benefits
|
|
|
(0.0
|
)
|
|
0.0
|
%
|
|
|
1.2
|
|
|
0.1
|
%
|
|
Adjusted gross margin
|
|
$
|
747.5
|
|
|
47.3
|
%
|
|
$
|
768.4
|
|
|
49.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
443.9
|
|
|
28.2
|
%
|
|
$
|
452.0
|
|
|
29.3
|
%
|
|
Amortization of intangible assets
|
|
|
(27.8
|
)
|
|
-1.8
|
%
|
|
|
(29.6
|
)
|
|
-1.9
|
%
|
|
Purchase accounting adjustments
|
|
|
1.1
|
|
|
0.1
|
%
|
|
|
1.0
|
|
|
0.1
|
%
|
|
Acquisition-related costs
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
|
|
(0.6
|
)
|
|
0.0
|
%
|
|
Adjusted SG&A
|
|
$
|
417.1
|
|
|
26.4
|
%
|
|
$
|
422.8
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
100.3
|
|
|
6.4
|
%
|
|
$
|
99.1
|
|
|
6.4
|
%
|
|
Amortization of intangible assets
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
|
|
(0.4
|
)
|
|
0.0
|
%
|
|
Purchase accounting adjustments
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
Adjusted R&D
|
|
$
|
99.9
|
|
|
6.3
|
%
|
|
$
|
98.7
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
132.8
|
|
|
8.4
|
%
|
|
$
|
129.4
|
|
|
8.4
|
%
|
|
Amortization of intangible assets
|
|
|
67.9
|
|
|
4.3
|
%
|
|
|
68.7
|
|
|
4.5
|
%
|
|
Purchase accounting adjustments
|
|
|
6.1
|
|
|
0.4
|
%
|
|
|
26.0
|
|
|
1.7
|
%
|
|
Acquisition-related costs
|
|
|
0.1
|
|
|
0.0
|
%
|
|
|
0.6
|
|
|
0.0
|
%
|
|
Mark to market on post-retirement benefits
|
|
|
(0.0
|
)
|
|
0.0
|
%
|
|
|
1.2
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
23.7
|
|
|
1.5
|
%
|
|
|
21.0
|
|
|
1.4
|
%
|
|
Adjusted operating income
|
|
$
|
230.4
|
|
|
14.6
|
%
|
|
$
|
247.0
|
|
|
15.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Nine Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
$
|
0.88
|
|
|
|
|
$
|
0.75
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
0.01
|
|
|
|
|
|
0.01
|
|
|
|
|
GAAP EPS from continuing operations
|
|
|
0.88
|
|
|
|
|
|
0.74
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
0.39
|
|
|
|
|
|
0.39
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
0.03
|
|
|
|
|
|
0.14
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
0.00
|
|
|
|
|
|
0.01
|
|
|
|
|
Mark to market on post-retirement benefits, net of income taxes
|
|
|
(0.00
|
)
|
|
|
|
|
0.01
|
|
|
|
|
Significant tax credits
|
|
|
(0.08
|
)
|
|
|
|
|
-
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
0.14
|
|
|
|
|
|
0.13
|
|
|
|
|
Adjusted EPS
|
|
$
|
1.35
|
|
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
December 29, 2013
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
Projected
|
|
|
|
GAAP EPS from continuing operations
|
|
|
|
|
|
$
|
1.42 - 1.45
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
|
|
0.52
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
|
|
0.04
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
|
|
|
|
-
|
|
|
|
|
Mark to market on post-retirement benefits, net of income taxes
|
|
|
|
|
|
|
-
|
|
|
|
|
Significant tax credits
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
|
|
|
|
0.14
|
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
$
|
2.04 - 2.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Nine Months Ended
|
|
Adjusted Operating Cash Flow:
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
Net cash provided by operating activities of continuing operations
|
|
$
|
87.0
|
|
|
|
|
$
|
113.8
|
|
|
|
|
Significant contributions to post-retirement plans
|
|
|
47.0
|
|
|
|
|
|
17.0
|
|
|
|
|
Significant prepaid royalty payments
|
|
|
27.8
|
|
|
|
|
|
13.1
|
|
|
|
|
Acquisition adjustments
|
|
|
-
|
|
|
|
|
|
4.7
|
|
|
|
|
Excess tax benefit from exercise of common stock options
|
|
|
-
|
|
|
|
|
|
1.8
|
|
|
|
|
Adjusted operating cash flow
|
|
$
|
161.8
|
|
|
|
|
$
|
150.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Nine Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
873.7
|
|
|
|
|
$
|
855.8
|
|
|
|
|
Purchase accounting adjustments
|
|
|
6.6
|
|
|
|
|
|
22.2
|
|
|
|
|
Adjusted revenue
|
|
$
|
880.2
|
|
|
|
|
$
|
878.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
99.0
|
|
|
11.3
|
%
|
|
$
|
83.0
|
|
|
9.7
|
%
|
|
Amortization of intangible assets
|
|
|
60.4
|
|
|
6.9
|
%
|
|
|
60.9
|
|
|
7.1
|
%
|
|
Purchase accounting adjustments
|
|
|
6.0
|
|
|
0.7
|
%
|
|
|
26.0
|
|
|
3.0
|
%
|
|
Acquisition-related costs
|
|
|
(0.0
|
)
|
|
0.0
|
%
|
|
|
0.5
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
14.9
|
|
|
1.7
|
%
|
|
|
15.0
|
|
|
1.8
|
%
|
|
Adjusted operating income
|
|
$
|
180.3
|
|
|
20.5
|
%
|
|
$
|
185.4
|
|
|
21.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Nine Months Ended
|
|
|
|
September 29, 2013
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
699.3
|
|
|
|
|
$
|
686.5
|
|
|
|
|
Purchase accounting adjustments
|
|
|
0.0
|
|
|
|
|
|
-
|
|
|
|
|
Adjusted revenue
|
|
$
|
699.3
|
|
|
|
|
$
|
686.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
61.9
|
|
|
8.9
|
%
|
|
$
|
77.9
|
|
|
11.4
|
%
|
|
Amortization of intangible assets
|
|
|
7.5
|
|
|
1.1
|
%
|
|
|
7.9
|
|
|
1.1
|
%
|
|
Purchase accounting adjustments
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
-
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
0.1
|
|
|
0.0
|
%
|
|
|
0.1
|
|
|
0.0
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
8.9
|
|
|
1.3
|
%
|
|
|
6.0
|
|
|
0.9
|
%
|
|
Adjusted operating income
|
|
$
|
78.4
|
|
|
11.2
|
%
|
|
$
|
91.9
|
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
Three Months Ended
|
|
|
|
September 29, 2013
|
|
Organic revenue growth:
|
|
|
|
Reported revenue growth
|
|
3
|
%
|
|
Less: effect of foreign exchange rates
|
|
0
|
%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
1
|
%
|
|
Organic revenue growth
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Three Months Ended
|
|
|
|
September 29, 2013
|
|
Organic revenue growth:
|
|
|
|
Reported revenue growth
|
|
2
|
%
|
|
Less: effect of foreign exchange rates
|
|
0
|
%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
2
|
%
|
|
Organic revenue growth
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Three Months Ended
|
|
|
|
September 29, 2013
|
|
Organic revenue growth:
|
|
|
|
Reported revenue growth
|
|
4
|
%
|
|
Less: effect of foreign exchange rates
|
|
-1
|
%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
1
|
%
|
|
Organic revenue growth
|
|
4
|
%
|
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, other costs 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 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, other costs related to business
acquisitions and adjustments for mark-to-market accounting 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 and other costs related to
business acquisitions. 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. We exclude 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 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 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 terms "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,
restructuring and contract termination charges, and significant tax
credits, 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 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, restructuring and contract termination charges, the provision
for taxes related to these items, and significant tax credits 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 on
post-retirement benefits, restructuring and contract termination
charges, and significant tax credits, 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 third quarter tax effect on adjusted EPS for (i) discontinued
operations was an expense of $0.00 in 2013 and an expense of $0.00 in
2012, (ii) amortization of intangible assets was an expense of $0.07 in
2013 and an expense of $0.06 in 2012, (iii) restructuring and contract
termination charges was an expense of $0.00 in 2013 and an expense of
$0.02 in 2012, (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 $0.00 in 2013 and an
expense of $0.02 in 2012. The third 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 on post-retirement
benefits) was $0.00 in both 2013 and 2012.
The full year tax effect on adjusted EPS through the third quarter of
2013 for (i) discontinued operations was a benefit of $0.00 in 2013 and
an expense of $0.01 in 2012, (ii) amortization of intangible assets was
an expense of $0.21 in both 2013 and 2012, (iii) inventory fair value
adjustments related to business acquisitions was an expense of $0.00 in
2013 and an expense of $0.01 in 2012, (iv) restructuring and contract
termination charges was an expense of $0.07 in 2013 and an expense of
$0.05 in 2012, (v) significant tax credits was a benefit of $0.08 in
2013, (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 $0.02 in 2013 and an
expense of $0.07 in 2012. The full year tax effect on adjusted EPS
through the third quarter of 2013 for each of the remaining items
(changes to the fair values assigned to contingent consideration, other
costs related to business acquisitions, and adjustments for
mark-to-market accounting on post-retirement benefits) was $0.00 in both
2013 and 2012.
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 on post-retirement benefits,
restructuring and contract termination charges, significant tax credits,
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.
Adjusted Operating Cash Flow
We use the term "adjusted operating cash flow" to refer to GAAP
operating cash flow from continuing operations, excluding the effect of
the excess tax benefit from the exercise of equity grants, significant
contributions to our post-retirement benefit plans, significant payments
for prepaid royaltyies, and payments for changes to the fair values
assigned to contingent consideration. We believe that this non-GAAP
measure, when taken together with our GAAP financial measure, allows us
and our investors to better evaluate the long-term performance trends
and to assess our ability to invest in the business. Adjusted operating
cash flow also provides for easier comparisons of our performance with
prior and future periods and relative comparisons to our peers. We
exclude the effect of the excess tax benefit from the exercise of equity
grants, significant contributions to our post-retirement benefit plans,
significant payments for prepaid royalties, and payments for changes to
the fair values assigned to contingent consideration from this measure
because these items can vary dramatically by quarter and between us and
our peers and can obscure underlying trends, 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.
# # #
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.
Fara Goldberg, 781-663-5699
fara.goldberg@perkinelmer.com
Source: PerkinElmer, Inc.
News Provided by Acquire Media