-
Revenue growth of 4%; Organic revenue growth of 3%
-
GAAP earnings per share from continuing operations of $0.58;
Adjusted earnings per share of $0.73
-
Operating income from continuing operations was $85 million;
Adjusted operating profit margin increase of 90 basis points driving
adjusted earnings per share growth of 12%
-
Operating cash flow from continuing operations of $71 million, up
79%
-
Established full year 2014 guidance range for GAAP earnings per
share of $1.93 to $1.98; Adjusted earnings per share guidance range of
$2.40 to $2.45
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 fourth quarter ended December 29, 2013.
The Company reported GAAP earnings per share from continuing operations
of $0.58, compared to a loss of $0.14 in the fourth quarter of 2012.
Revenue in the fourth quarter of 2013 was $593.3 million, as compared to
$572.9 million in the fourth quarter of 2012. GAAP operating income from
continuing operations for the fourth quarter of 2013 was $84.7 million,
as compared to an operating loss of $30.8 million in the fourth quarter
of 2012, impacted by non-cash charges and other adjustments noted in the
Company's reconciliations of non-GAAP financial measures.
Adjusted earnings per share was $0.73, compared to $0.65 in the fourth
quarter of 2012. Adjusted revenue for the quarter grew 3% to $594.0
million, compared to $577.0 million in the fourth quarter of 2012.
Adjusted operating income for the fourth quarter of 2013 was $114.1
million, compared to $105.6 million for the same period a year ago.
Adjusted operating profit margin was 19.2% as a percentage of adjusted
revenue, compared to 18.3% for the same period a year ago. Adjustments
for the Company's non-GAAP financial measures have been noted in the
attached reconciliations.
"We are pleased with our strong finish to the year as we delivered solid
performances in adjusted earnings per share growth, adjusted operating
margin expansion and operating cash flow generation, " said Robert
Friel, chairman and chief executive officer of PerkinElmer. "By
leveraging our recent growth and productivity investments, we are well
positioned to deliver a year of profitable revenue growth while
continuing to address the critical health and environmental needs of our
customers throughout the world."
2013 Full Year Cash Flow
For the fourth quarter of 2013, operating cash flow from continuing
operations was $71.1 million as compared to $39.8 million in the
comparable period of 2012. Full year 2013 operating cash flow from
continuing operations was $158.1 million as compared to $153.6 million
in 2012. The full year 2013 results were impacted by incremental pension
contributions, royalty payments and increased working capital uses for
the completion of the Company's productivity initiatives.
Financial Overview by Reporting Segment for the Fourth Quarter of 2013
Human Health
-
Revenue of $336.1 million, as compared to $318.9 million for the
fourth quarter of 2012.
-
Adjusted revenue of $336.8 million. Adjusted and organic revenues
increased 4%.
-
Operating income of $47.1 million, as compared to an operating loss of
$23.8 million for the same period a year ago.
-
Adjusted operating income of $83.8 million. Adjusted operating profit
margin was 24.9% as a percentage of adjusted revenue, as compared to
23.9% in the fourth quarter of 2012.
Environmental Health
-
Revenue of $257.2 million, as compared to $254.1 million for the
fourth quarter of 2012. Revenue and organic revenue increased 1%.
-
Operating income of $35.1 million, as compared to operating income of
$33.9 million for the same period a year ago.
-
Adjusted operating income of $40.8 million. Adjusted operating profit
margin was 15.9% as a percentage of revenue, as compared to 15.3% in
the fourth quarter of 2012.
Financial Guidance - Full Year 2014
For the full year 2014, the Company forecasts GAAP earnings per share
from continuing operations in the range of $1.93 to $1.98 and on a
non-GAAP basis, which is expected to include the adjustments noted in
the attached reconciliation, adjusted earnings per share of $2.40 to
$2.45.
Conference Call Information
The Company will discuss its fourth quarter results and its outlook for
business trends in a conference call on January 30, 2014 at 5:00 p.m.
Eastern Time (ET). To access the call, please dial (617) 614-4072 prior
to the scheduled conference call time and provide the access code
83512237. A playback of this conference call will be available beginning
7:00 p.m. ET, Thursday, January 30, 2014. The playback phone number is
(617) 801-6888 and the code number is 82009740.
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 $2.2 billion in 2013, has about 7,600 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
|
|
|
Twelve Months Ended
|
|
(In thousands, except per share data)
|
|
|
|
December 29, 2013
|
|
|
December 30, 2012
|
|
|
December 29, 2013
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
593,280
|
|
|
|
$
|
572,921
|
|
|
|
$
|
2,166,232
|
|
|
|
$
|
2,115,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
|
317,002
|
|
|
|
|
311,263
|
|
|
|
|
1,189,258
|
|
|
|
|
1,151,999
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
141,949
|
|
|
|
|
180,708
|
|
|
|
|
585,850
|
|
|
|
|
632,734
|
|
|
Research and development expenses
|
|
|
|
|
32,702
|
|
|
|
|
33,538
|
|
|
|
|
133,023
|
|
|
|
|
132,639
|
|
|
Asset Impairments
|
|
|
|
|
6,731
|
|
|
|
|
74,153
|
|
|
|
|
6,731
|
|
|
|
|
74,153
|
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
10,215
|
|
|
|
|
4,103
|
|
|
|
|
33,928
|
|
|
|
|
25,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) from continuing operations
|
|
|
|
|
84,681
|
|
|
|
|
(30,844
|
)
|
|
|
|
217,442
|
|
|
|
|
98,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
(362
|
)
|
|
|
|
(313
|
)
|
|
|
|
(650
|
)
|
|
|
|
(747
|
)
|
|
Interest expense
|
|
|
|
|
14,614
|
|
|
|
|
11,651
|
|
|
|
|
49,924
|
|
|
|
|
45,787
|
|
|
Other expense, net
|
|
|
|
|
12,613
|
|
|
|
|
558
|
|
|
|
|
14,836
|
|
|
|
|
2,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
|
57,816
|
|
|
|
|
(42,740
|
)
|
|
|
|
153,332
|
|
|
|
|
50,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes
|
|
|
|
|
(8,184
|
)
|
|
|
|
(26,548
|
)
|
|
|
|
(12,192
|
)
|
|
|
|
(17,854
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
|
66,000
|
|
|
|
|
(16,192
|
)
|
|
|
|
165,524
|
|
|
|
|
68,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on disposition of discontinued operations, before income
taxes
|
|
|
|
|
(2,267
|
)
|
|
|
|
490
|
|
|
|
|
(1,810
|
)
|
|
|
|
2,405
|
|
|
(Benefit from) provision for income taxes on discontinued
operations and dispositions
|
|
|
|
|
(740
|
)
|
|
|
|
154
|
|
|
|
|
(1,098
|
)
|
|
|
|
906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations and dispositions
|
|
|
|
|
(1,527
|
)
|
|
|
|
336
|
|
|
|
|
(712
|
)
|
|
|
|
1,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
64,473
|
|
|
|
$
|
(15,856
|
)
|
|
|
$
|
164,812
|
|
|
|
$
|
69,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
0.58
|
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
1.46
|
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations and dispositions
|
|
|
|
|
(0.01
|
)
|
|
|
|
0.00
|
|
|
|
|
(0.01
|
)
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
0.57
|
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
1.45
|
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding
|
|
|
|
|
113,463
|
|
|
|
|
114,440
|
|
|
|
|
113,503
|
|
|
|
|
114,860
|
|
|
|
|
|
|
Diluted
|
|
|
Basic
|
|
|
Diluted
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABOVE PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Supplemental Information (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share, continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS from continuing operations
|
|
|
|
$
|
0.58
|
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
1.46
|
|
|
|
$
|
0.60
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
0.12
|
|
|
|
|
0.13
|
|
|
|
|
0.51
|
|
|
|
|
0.52
|
|
|
Asset impairments, net of income taxes
|
|
|
|
|
0.04
|
|
|
|
|
0.42
|
|
|
|
|
0.04
|
|
|
|
|
0.42
|
|
|
Debt extinguishment costs, net of income taxes
|
|
|
|
|
0.08
|
|
|
|
|
-
|
|
|
|
|
0.08
|
|
|
|
|
-
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
0.02
|
|
|
|
|
0.03
|
|
|
|
|
0.05
|
|
|
|
|
0.16
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
|
|
0.00
|
|
|
|
|
0.00
|
|
|
|
|
0.00
|
|
|
|
|
0.01
|
|
|
Significant environmental charges, net of income taxes
|
|
|
|
|
0.02
|
|
|
|
|
-
|
|
|
|
|
0.02
|
|
|
|
|
-
|
|
|
Mark to market on postretirement benefits, net of income taxes
|
|
|
|
|
(0.13
|
)
|
|
|
|
0.19
|
|
|
|
|
(0.13
|
)
|
|
|
|
0.20
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
|
|
0.05
|
|
|
|
|
0.03
|
|
|
|
|
0.19
|
|
|
|
|
0.16
|
|
|
Significant tax credits
|
|
|
|
|
(0.06
|
)
|
|
|
|
-
|
|
|
|
|
(0.14
|
)
|
|
|
|
-
|
|
|
Adjusted EPS
|
|
|
|
$
|
0.73
|
|
|
|
$
|
0.65
|
|
|
|
$
|
2.08
|
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
REVENUE AND OPERATING INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
(In thousands, except percentages)
|
|
|
|
|
December 29, 2013
|
|
|
December 30, 2012
|
|
|
December 29, 2013
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
(as adjusted)
|
|
|
|
|
|
(as adjusted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
Reported revenue
|
|
|
|
$
|
336,100
|
|
|
|
$
|
318,858
|
|
|
|
$
|
1,209,756
|
|
|
|
$
|
1,174,642
|
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
739
|
|
|
|
|
4,076
|
|
|
|
|
7,312
|
|
|
|
|
26,249
|
|
|
|
|
|
|
Adjusted Revenue
|
|
|
|
|
336,839
|
|
|
|
|
322,934
|
|
|
|
|
1,217,068
|
|
|
|
|
1,200,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income (loss) from continued operations
|
|
|
|
|
47,103
|
|
|
|
|
(23,766
|
)
|
|
|
|
146,100
|
|
|
|
|
59,196
|
|
|
|
|
|
|
OP%
|
|
|
|
|
14.0
|
%
|
|
|
|
-7.5
|
%
|
|
|
|
12.1
|
%
|
|
|
|
5.0
|
%
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
19,829
|
|
|
|
|
19,945
|
|
|
|
|
80,217
|
|
|
|
|
80,815
|
|
|
|
|
|
|
Asset impairments
|
|
|
|
|
6,731
|
|
|
|
|
73,410
|
|
|
|
|
6,731
|
|
|
|
|
73,410
|
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
2,873
|
|
|
|
|
4,589
|
|
|
|
|
8,919
|
|
|
|
|
30,551
|
|
|
|
|
|
|
Acquisition-related costs
|
|
|
|
|
-
|
|
|
|
|
441
|
|
|
|
|
(21
|
)
|
|
|
|
984
|
|
|
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
7,312
|
|
|
|
|
2,544
|
|
|
|
|
22,172
|
|
|
|
|
17,587
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
|
83,848
|
|
|
|
|
77,163
|
|
|
|
|
264,118
|
|
|
|
|
262,543
|
|
|
|
|
|
|
Adjusted OP%
|
|
|
|
|
24.9
|
%
|
|
|
|
23.9
|
%
|
|
|
|
21.7
|
%
|
|
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
Reported revenue
|
|
|
|
|
257,180
|
|
|
|
|
254,063
|
|
|
|
|
956,476
|
|
|
|
|
940,563
|
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
9
|
|
|
|
|
-
|
|
|
|
|
|
|
Adjusted Revenue
|
|
|
|
|
257,180
|
|
|
|
|
254,063
|
|
|
|
|
956,485
|
|
|
|
|
940,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
|
|
35,130
|
|
|
|
|
33,896
|
|
|
|
|
97,052
|
|
|
|
|
111,844
|
|
|
|
|
|
|
OP%
|
|
|
|
|
13.7
|
%
|
|
|
|
13.3
|
%
|
|
|
|
10.1
|
%
|
|
|
|
11.9
|
%
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
2,670
|
|
|
|
|
2,549
|
|
|
|
|
10,137
|
|
|
|
|
10,403
|
|
|
|
|
|
|
Asset impairments
|
|
|
|
|
-
|
|
|
|
|
743
|
|
|
|
|
-
|
|
|
|
|
743
|
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
50
|
|
|
|
|
-
|
|
|
|
|
59
|
|
|
|
|
-
|
|
|
|
|
|
|
Acquisition-related costs
|
|
|
|
|
16
|
|
|
|
|
110
|
|
|
|
|
141
|
|
|
|
|
204
|
|
|
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
2,903
|
|
|
|
|
1,559
|
|
|
|
|
11,756
|
|
|
|
|
7,550
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
|
40,769
|
|
|
|
|
38,857
|
|
|
|
|
119,145
|
|
|
|
|
130,744
|
|
|
|
|
|
|
Adjusted OP%
|
|
|
|
|
15.9
|
%
|
|
|
|
15.3
|
%
|
|
|
|
12.5
|
%
|
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
Reported operating income (loss)
|
|
|
|
|
2,448
|
|
|
|
|
(40,974
|
)
|
|
|
|
(25,710
|
)
|
|
|
|
(72,497
|
)
|
|
|
|
|
|
Significant environmental charges
|
|
|
|
|
4,625
|
|
|
|
|
-
|
|
|
|
|
4,625
|
|
|
|
|
-
|
|
|
|
|
|
|
Mark to market on postretirement benefits
|
|
|
|
|
(17,570
|
)
|
|
|
|
30,542
|
|
|
|
|
(17,617
|
)
|
|
|
|
31,761
|
|
|
|
|
|
|
Adjusted operating loss
|
|
|
|
|
(10,497
|
)
|
|
|
|
(10,432
|
)
|
|
|
|
(38,702
|
)
|
|
|
|
(40,736
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
|
|
Reported revenue
|
|
|
|
$
|
593,280
|
|
|
|
$
|
572,921
|
|
|
|
$
|
2,166,232
|
|
|
|
$
|
2,115,205
|
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
739
|
|
|
|
|
4,076
|
|
|
|
|
7,321
|
|
|
|
|
26,249
|
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
|
594,019
|
|
|
|
|
576,997
|
|
|
|
|
2,173,553
|
|
|
|
|
2,141,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income (loss) from continued operations
|
|
|
|
|
84,681
|
|
|
|
|
(30,844
|
)
|
|
|
|
217,442
|
|
|
|
|
98,543
|
|
|
|
|
|
|
OP%
|
|
|
|
|
14.3
|
%
|
|
|
|
-5.4
|
%
|
|
|
|
10.0
|
%
|
|
|
|
4.7
|
%
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
22,499
|
|
|
|
|
22,494
|
|
|
|
|
90,354
|
|
|
|
|
91,218
|
|
|
|
|
|
|
Asset impairments
|
|
|
|
|
6,731
|
|
|
|
|
74,153
|
|
|
|
|
6,731
|
|
|
|
|
74,153
|
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
2,923
|
|
|
|
|
4,589
|
|
|
|
|
8,978
|
|
|
|
|
30,551
|
|
|
|
|
|
|
Acquisition-related costs
|
|
|
|
|
16
|
|
|
|
|
551
|
|
|
|
|
120
|
|
|
|
|
1,188
|
|
|
|
|
|
|
Significant environmental charges
|
|
|
|
|
4,625
|
|
|
|
|
-
|
|
|
|
|
4,625
|
|
|
|
|
-
|
|
|
|
|
|
|
Mark to market on postretirement benefits
|
|
|
|
|
(17,570
|
)
|
|
|
|
30,542
|
|
|
|
|
(17,617
|
)
|
|
|
|
31,761
|
|
|
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
10,215
|
|
|
|
|
4,103
|
|
|
|
|
33,928
|
|
|
|
|
25,137
|
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
$
|
114,120
|
|
|
|
$
|
105,588
|
|
|
|
$
|
344,561
|
|
|
|
$
|
352,551
|
|
|
|
|
|
|
Adjusted OP%
|
|
|
|
|
19.2
|
%
|
|
|
|
18.3
|
%
|
|
|
|
15.9
|
%
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN
ACCORDANCE WITH GAAP
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
December 30, 2012
|
|
|
December 29, 2013
|
|
December 30, 2012
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
64,473
|
|
|
$
|
(15,856
|
)
|
|
|
$
|
164,812
|
|
|
$
|
69,940
|
|
|
Less: loss (income) from discontinued operations and dispositions,
net of income taxes
|
|
|
|
|
1,527
|
|
|
|
(336
|
)
|
|
|
|
712
|
|
|
|
(1,499
|
)
|
|
Income (loss) from continuing operations
|
|
|
|
|
66,000
|
|
|
|
(16,192
|
)
|
|
|
|
165,524
|
|
|
|
68,441
|
|
|
Adjustments to reconcile income (loss) from continuing operations
to net cash provided by continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
2,630
|
|
|
|
5,679
|
|
|
|
|
14,053
|
|
|
|
21,031
|
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
10,215
|
|
|
|
4,103
|
|
|
|
|
33,928
|
|
|
|
25,137
|
|
|
Amortization of deferred debt issuance costs, interest rate hedges
and accretion of discounts
|
|
|
|
|
3,904
|
|
|
|
862
|
|
|
|
|
6,502
|
|
|
|
3,517
|
|
|
Depreciation and amortization
|
|
|
|
|
32,018
|
|
|
|
32,074
|
|
|
|
|
128,471
|
|
|
|
126,865
|
|
|
Gains on disposition
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(1,566
|
)
|
|
|
-
|
|
|
Amortization of acquired inventory revaluation
|
|
|
|
|
-
|
|
|
|
440
|
|
|
|
|
203
|
|
|
|
5,214
|
|
|
Pension and other postretirement expenses
|
|
|
|
|
(18,176
|
)
|
|
|
35,336
|
|
|
|
|
(18,176
|
)
|
|
|
35,336
|
|
|
Asset impairments
|
|
|
|
|
6,731
|
|
|
|
74,153
|
|
|
|
|
6,731
|
|
|
|
74,153
|
|
|
Changes in operating assets and liabilities which (used)
provided cash, excluding effects from companies purchased and
divested:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
(41,279
|
)
|
|
|
(59,714
|
)
|
|
|
|
(14,440
|
)
|
|
|
(44,626
|
)
|
|
Inventories, net
|
|
|
|
|
17,931
|
|
|
|
16,234
|
|
|
|
|
(13,851
|
)
|
|
|
(8,213
|
)
|
|
Accounts payable
|
|
|
|
|
4,235
|
|
|
|
10,735
|
|
|
|
|
(1,800
|
)
|
|
|
(7,876
|
)
|
|
Accrued expenses and other
|
|
|
|
|
(13,135
|
)
|
|
|
(63,912
|
)
|
|
|
|
(147,526
|
)
|
|
|
(145,404
|
)
|
|
Net cash provided by operating activities of continuing
operations
|
|
|
|
|
71,074
|
|
|
|
39,798
|
|
|
|
|
158,053
|
|
|
|
153,575
|
|
|
Net cash provided by (used in) operating activities of
discontinued operations
|
|
|
|
|
629
|
|
|
|
(274
|
)
|
|
|
|
538
|
|
|
|
(1,405
|
)
|
|
Net cash provided by operating activities
|
|
|
|
|
71,703
|
|
|
|
39,524
|
|
|
|
|
158,591
|
|
|
|
152,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(7,427
|
)
|
|
|
(18,058
|
)
|
|
|
|
(38,991
|
)
|
|
|
(42,408
|
)
|
|
Proceeds from dispositions of property, plant and equipment, net
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
52,202
|
|
|
|
-
|
|
|
Proceeds from surrender of life insurance policies
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
783
|
|
|
|
-
|
|
|
Changes in restricted cash balances
|
|
|
|
|
-
|
|
|
|
(183
|
)
|
|
|
|
-
|
|
|
|
487
|
|
|
Activity related to acquisitions and investments, net of cash and
cash equivalents acquired
|
|
|
|
|
(8,650
|
)
|
|
|
(34,108
|
)
|
|
|
|
(15,699
|
)
|
|
|
(40,858
|
)
|
|
Net cash used in investing activities of continuing operations
|
|
|
|
|
(16,077
|
)
|
|
|
(52,349
|
)
|
|
|
|
(1,705
|
)
|
|
|
(82,779
|
)
|
|
Net cash provided by investing activities of discontinued
operations
|
|
|
|
|
-
|
|
|
|
494
|
|
|
|
|
494
|
|
|
|
2,470
|
|
|
Net cash used in investing activities
|
|
|
|
|
(16,077
|
)
|
|
|
(51,855
|
)
|
|
|
|
(1,211
|
)
|
|
|
(80,309
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments on long-term debt
|
|
|
|
|
(259,000
|
)
|
|
|
(102,850
|
)
|
|
|
|
(688,000
|
)
|
|
|
(435,850
|
)
|
|
Proceeds from long-term debt
|
|
|
|
|
258,000
|
|
|
|
104,000
|
|
|
|
|
677,000
|
|
|
|
395,000
|
|
|
Premium on prepayment of debt
|
|
|
|
|
(11,119
|
)
|
|
|
-
|
|
|
|
|
(11,119
|
)
|
|
|
-
|
|
|
Payments of debt issuance costs
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(416
|
)
|
|
Settlement of cash flow hedges
|
|
|
|
|
-
|
|
|
|
4,050
|
|
|
|
|
1,363
|
|
|
|
4,050
|
|
|
Net (payments on) proceeds from other credit facilities
|
|
|
|
|
(249
|
)
|
|
|
5,417
|
|
|
|
|
5,281
|
|
|
|
5,274
|
|
|
Payments for acquisition-related contingent consideration
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(12,459
|
)
|
|
Excess tax benefit from exercise of common stock options
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
1,767
|
|
|
Proceeds from issuance of common stock under stock plans
|
|
|
|
|
5,021
|
|
|
|
9,534
|
|
|
|
|
20,313
|
|
|
|
32,478
|
|
|
Purchases of common stock
|
|
|
|
|
(212
|
)
|
|
|
(12
|
)
|
|
|
|
(127,398
|
)
|
|
|
(2,104
|
)
|
|
Dividends paid
|
|
|
|
|
(7,867
|
)
|
|
|
(8,028
|
)
|
|
|
|
(31,600
|
)
|
|
|
(31,903
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
|
|
(15,426
|
)
|
|
|
12,111
|
|
|
|
|
(154,160
|
)
|
|
|
(44,163
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
739
|
|
|
|
836
|
|
|
|
|
(1,422
|
)
|
|
|
1,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
40,939
|
|
|
|
616
|
|
|
|
|
1,798
|
|
|
|
29,102
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
132,303
|
|
|
|
170,828
|
|
|
|
|
171,444
|
|
|
|
142,342
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
173,242
|
|
|
$
|
171,444
|
|
|
|
$
|
173,242
|
|
|
$
|
171,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
December 29, 2013
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
173,242
|
|
|
|
$
|
171,444
|
|
|
Accounts receivable, net
|
|
|
|
|
470,028
|
|
|
|
|
457,011
|
|
|
Inventories, net
|
|
|
|
|
261,036
|
|
|
|
|
247,688
|
|
|
Other current assets
|
|
|
|
|
140,532
|
|
|
|
|
95,611
|
|
|
Total current assets
|
|
|
|
|
1,044,838
|
|
|
|
|
971,754
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net:
|
|
|
|
|
|
|
|
|
At cost
|
|
|
|
|
504,184
|
|
|
|
|
513,479
|
|
|
Accumulated depreciation
|
|
|
|
|
(318,811
|
)
|
|
|
|
(302,963
|
)
|
|
Property, plant and equipment, net
|
|
|
|
|
185,373
|
|
|
|
|
210,516
|
|
|
Marketable securities and investments
|
|
|
|
|
1,319
|
|
|
|
|
1,149
|
|
|
Intangible assets, net
|
|
|
|
|
460,430
|
|
|
|
|
529,901
|
|
|
Goodwill
|
|
|
|
|
2,143,120
|
|
|
|
|
2,122,788
|
|
|
Other assets, net
|
|
|
|
|
111,632
|
|
|
|
|
65,654
|
|
|
Total assets
|
|
|
|
$
|
3,946,712
|
|
|
|
$
|
3,901,762
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
|
|
$
|
2,624
|
|
|
|
$
|
1,772
|
|
|
Accounts payable
|
|
|
|
|
167,196
|
|
|
|
|
168,943
|
|
|
Short-term accrued restructuring
|
|
|
|
|
26,374
|
|
|
|
|
21,364
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
|
404,064
|
|
|
|
|
388,026
|
|
|
Current liabilities of discontinued operations
|
|
|
|
|
2,538
|
|
|
|
|
995
|
|
|
Total current liabilities
|
|
|
|
|
602,796
|
|
|
|
|
581,100
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
932,104
|
|
|
|
|
938,824
|
|
|
Long-term accrued restructuring
|
|
|
|
|
9,161
|
|
|
|
|
6,387
|
|
|
Long-term liabilities
|
|
|
|
|
410,565
|
|
|
|
|
435,639
|
|
|
Total liabilities
|
|
|
|
|
1,954,626
|
|
|
|
|
1,961,950
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
|
1,992,086
|
|
|
|
|
1,939,812
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
3,946,712
|
|
|
|
$
|
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
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
593.3
|
|
|
|
|
|
|
$
|
572.9
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
0.7
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
$
|
594.0
|
|
|
|
|
|
|
$
|
577.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
$
|
276.3
|
|
|
|
46.6
|
%
|
|
|
$
|
261.7
|
|
|
|
45.7
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
13.3
|
|
|
|
2.2
|
%
|
|
|
|
13.1
|
|
|
|
2.3
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
0.8
|
|
|
|
0.1
|
%
|
|
|
|
4.5
|
|
|
|
0.8
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
0.8
|
|
|
|
0.1
|
%
|
|
|
|
2.5
|
|
|
|
0.4
|
%
|
|
Adjusted gross margin
|
|
|
|
$
|
291.2
|
|
|
|
49.0
|
%
|
|
|
$
|
281.8
|
|
|
|
48.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
$
|
141.9
|
|
|
|
23.9
|
%
|
|
|
$
|
180.7
|
|
|
|
31.5
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
(9.1
|
)
|
|
|
-1.5
|
%
|
|
|
|
(9.3
|
)
|
|
|
-1.6
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
(2.1
|
)
|
|
|
-0.4
|
%
|
|
|
|
(0.1
|
)
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
|
|
(0.0
|
)
|
|
|
0.0
|
%
|
|
|
|
(0.6
|
)
|
|
|
-0.1
|
%
|
|
Significant environmental charges
|
|
|
|
|
(4.6
|
)
|
|
|
-0.8
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
18.1
|
|
|
|
3.0
|
%
|
|
|
|
(27.9
|
)
|
|
|
-4.9
|
%
|
|
Adjusted SG&A
|
|
|
|
$
|
144.2
|
|
|
|
24.3
|
%
|
|
|
$
|
142.9
|
|
|
|
24.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D
|
|
|
|
$
|
32.7
|
|
|
|
5.5
|
%
|
|
|
$
|
33.5
|
|
|
|
5.9
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
(0.1
|
)
|
|
|
0.0
|
%
|
|
|
|
(0.1
|
)
|
|
|
0.0
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
(0.0
|
)
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Mark to market on post retirement benefits
|
|
|
|
|
0.3
|
|
|
|
0.0
|
%
|
|
|
|
(0.2
|
)
|
|
|
0.0
|
%
|
|
Adjusted R&D
|
|
|
|
$
|
32.9
|
|
|
|
5.5
|
%
|
|
|
$
|
33.3
|
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
$
|
84.7
|
|
|
|
14.3
|
%
|
|
|
$
|
(30.8
|
)
|
|
|
-5.4
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
22.5
|
|
|
|
3.8
|
%
|
|
|
|
22.5
|
|
|
|
3.9
|
%
|
|
Asset impairments
|
|
|
|
|
6.7
|
|
|
|
1.1
|
%
|
|
|
|
74.2
|
|
|
|
12.9
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
2.9
|
|
|
|
0.5
|
%
|
|
|
|
4.6
|
|
|
|
0.8
|
%
|
|
Acquisition-related costs
|
|
|
|
|
0.0
|
|
|
|
0.0
|
%
|
|
|
|
0.6
|
|
|
|
0.1
|
%
|
|
Significant environmental charges
|
|
|
|
|
4.6
|
|
|
|
0.8
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
(17.6
|
)
|
|
|
-3.0
|
%
|
|
|
|
30.5
|
|
|
|
5.3
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
10.2
|
|
|
|
1.7
|
%
|
|
|
|
4.1
|
|
|
|
0.7
|
%
|
|
Adjusted operating income
|
|
|
|
$
|
114.1
|
|
|
|
19.2
|
%
|
|
|
$
|
105.6
|
|
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
|
|
$
|
0.57
|
|
|
|
|
|
|
$
|
(0.14
|
)
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
0.00
|
|
|
|
|
|
GAAP EPS from continuing operations
|
|
|
|
|
0.58
|
|
|
|
|
|
|
|
(0.14
|
)
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
0.12
|
|
|
|
|
|
|
|
0.13
|
|
|
|
|
|
Asset impairments, net of income taxes
|
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.42
|
|
|
|
|
|
Debt extinguishment costs, net of income taxes
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
|
|
0.00
|
|
|
|
|
|
|
|
0.00
|
|
|
|
|
|
Significant environmental charges, net of income taxes
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Mark to market on postretirement benefits, net of income taxes
|
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
0.19
|
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
Significant tax credits
|
|
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Adjusted EPS
|
|
|
|
$
|
0.73
|
|
|
|
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
336.1
|
|
|
|
|
|
|
$
|
318.9
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
0.7
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
$
|
336.8
|
|
|
|
|
|
|
$
|
322.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
47.1
|
|
|
|
14.0
|
%
|
|
|
$
|
(23.8
|
)
|
|
|
-7.5
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
19.8
|
|
|
|
5.9
|
%
|
|
|
|
19.9
|
|
|
|
6.3
|
%
|
|
Asset impairments
|
|
|
|
|
6.7
|
|
|
|
2.0
|
%
|
|
|
|
73.4
|
|
|
|
23.0
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
2.9
|
|
|
|
0.9
|
%
|
|
|
|
4.6
|
|
|
|
1.4
|
%
|
|
Acquisition-related costs
|
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
|
|
0.4
|
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
7.3
|
|
|
|
2.2
|
%
|
|
|
|
2.5
|
|
|
|
0.8
|
%
|
|
Adjusted operating income
|
|
|
|
$
|
83.8
|
|
|
|
24.9
|
%
|
|
|
$
|
77.2
|
|
|
|
23.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
257.2
|
|
|
|
|
|
|
$
|
254.1
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
$
|
257.2
|
|
|
|
|
|
|
$
|
254.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
35.1
|
|
|
|
13.7
|
%
|
|
|
$
|
33.9
|
|
|
|
13.3
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
2.7
|
|
|
|
1.0
|
%
|
|
|
|
2.5
|
|
|
|
1.0
|
%
|
|
Asset impairments
|
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
|
|
0.7
|
|
|
|
0.3
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
0.1
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
|
|
0.0
|
|
|
|
0.0
|
%
|
|
|
|
0.1
|
|
|
|
0.0
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
2.9
|
|
|
|
1.1
|
%
|
|
|
|
1.6
|
|
|
|
0.6
|
%
|
|
Adjusted operating income
|
|
|
|
$
|
40.8
|
|
|
|
15.9
|
%
|
|
|
$
|
38.9
|
|
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share data and percentages)
|
|
|
|
PKI
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
2,166.2
|
|
|
|
|
|
|
$
|
2,115.2
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
7.3
|
|
|
|
|
|
|
|
26.2
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
$
|
2,173.6
|
|
|
|
|
|
|
$
|
2,141.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
$
|
977.0
|
|
|
|
45.1
|
%
|
|
|
$
|
963.2
|
|
|
|
45.5
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
53.1
|
|
|
|
2.5
|
%
|
|
|
|
51.8
|
|
|
|
2.4
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
7.8
|
|
|
|
0.4
|
%
|
|
|
|
31.5
|
|
|
|
1.5
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
0.8
|
|
|
|
0.0
|
%
|
|
|
|
3.7
|
|
|
|
0.2
|
%
|
|
Adjusted gross margin
|
|
|
|
$
|
1,038.6
|
|
|
|
47.8
|
%
|
|
|
$
|
1,050.2
|
|
|
|
49.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
$
|
585.9
|
|
|
|
27.0
|
%
|
|
|
$
|
632.7
|
|
|
|
29.9
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
(36.9
|
)
|
|
|
-1.7
|
%
|
|
|
|
(38.9
|
)
|
|
|
-1.8
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
(1.0
|
)
|
|
|
0.0
|
%
|
|
|
|
0.9
|
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
|
|
(0.1
|
)
|
|
|
0.0
|
%
|
|
|
|
(1.2
|
)
|
|
|
-0.1
|
%
|
|
Significant environmental charges
|
|
|
|
|
(4.6
|
)
|
|
|
-0.2
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
18.1
|
|
|
|
0.8
|
%
|
|
|
|
(27.9
|
)
|
|
|
-1.3
|
%
|
|
Adjusted SG&A
|
|
|
|
$
|
561.2
|
|
|
|
25.8
|
%
|
|
|
$
|
565.6
|
|
|
|
26.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D
|
|
|
|
$
|
133.0
|
|
|
|
6.1
|
%
|
|
|
$
|
132.6
|
|
|
|
6.3
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
(0.3
|
)
|
|
|
0.0
|
%
|
|
|
|
(0.5
|
)
|
|
|
0.0
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
(0.2
|
)
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
0.3
|
|
|
|
0.0
|
%
|
|
|
|
(0.2
|
)
|
|
|
0.0
|
%
|
|
Adjusted R&D
|
|
|
|
$
|
132.8
|
|
|
|
6.1
|
%
|
|
|
$
|
132.0
|
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
217.4
|
|
|
|
10.0
|
%
|
|
|
$
|
98.5
|
|
|
|
4.7
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
90.4
|
|
|
|
4.2
|
%
|
|
|
|
91.2
|
|
|
|
4.3
|
%
|
|
Asset impairments
|
|
|
|
|
6.7
|
|
|
|
0.3
|
%
|
|
|
|
74.2
|
|
|
|
3.5
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
9.0
|
|
|
|
0.4
|
%
|
|
|
|
30.6
|
|
|
|
1.4
|
%
|
|
Acquisition-related costs
|
|
|
|
|
0.1
|
|
|
|
0.0
|
%
|
|
|
|
1.2
|
|
|
|
0.1
|
%
|
|
Significant environmental charges
|
|
|
|
|
4.6
|
|
|
|
0.2
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Mark to market on postretirement benefits
|
|
|
|
|
(17.6
|
)
|
|
|
-0.8
|
%
|
|
|
|
31.8
|
|
|
|
1.5
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
33.9
|
|
|
|
1.6
|
%
|
|
|
|
25.1
|
|
|
|
1.2
|
%
|
|
Adjusted operating income
|
|
|
|
$
|
344.6
|
|
|
|
15.9
|
%
|
|
|
$
|
352.6
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
|
|
$
|
1.45
|
|
|
|
|
|
|
$
|
0.61
|
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
GAAP EPS from continuing operations
|
|
|
|
|
1.46
|
|
|
|
|
|
|
|
0.60
|
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
0.51
|
|
|
|
|
|
|
|
0.52
|
|
|
|
|
|
Asset impairments, net of income taxes
|
|
|
|
|
0.04
|
|
|
|
|
|
|
|
0.42
|
|
|
|
|
|
Debt extinguishment costs, net of income taxes
|
|
|
|
|
0.08
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
0.16
|
|
|
|
|
|
Acquisition-related costs, net of income taxes
|
|
|
|
|
0.00
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
Significant environmental charges, net of income taxes
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Mark to market on postretirement benefits, net of income taxes
|
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
0.20
|
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
|
|
0.19
|
|
|
|
|
|
|
|
0.16
|
|
|
|
|
|
Significant tax credits
|
|
|
|
|
(0.14
|
)
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Adjusted EPS
|
|
|
|
$
|
2.08
|
|
|
|
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 28, 2014
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
|
Projected
|
|
|
|
|
GAAP EPS from continuing operations
|
|
|
|
|
|
|
|
|
|
$
|
1.93 - $1.98
|
|
|
|
|
|
Amortization of intangible assets, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
0.46
|
|
|
|
|
|
Purchase accounting adjustments, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
Restructuring and contract termination charges, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
0.00
|
|
|
|
|
|
Adjusted EPS
|
|
|
|
|
|
|
|
|
|
$
|
2.40 - $2.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
1,209.8
|
|
|
|
|
|
|
$
|
1,174.6
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
7.3
|
|
|
|
|
|
|
|
26.2
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
$
|
1,217.1
|
|
|
|
|
|
|
$
|
1,200.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
146.1
|
|
|
|
12.1
|
%
|
|
|
$
|
59.2
|
|
|
|
5.0
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
80.2
|
|
|
|
6.6
|
%
|
|
|
|
80.8
|
|
|
|
6.9
|
%
|
|
Asset impairments
|
|
|
|
|
6.7
|
|
|
|
0.6
|
%
|
|
|
|
73.4
|
|
|
|
6.2
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
8.9
|
|
|
|
0.7
|
%
|
|
|
|
30.6
|
|
|
|
2.6
|
%
|
|
Acquisition-related costs
|
|
|
|
|
(0.0
|
)
|
|
|
0.0
|
%
|
|
|
|
1.0
|
|
|
|
0.1
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
22.2
|
|
|
|
1.8
|
%
|
|
|
|
17.6
|
|
|
|
1.5
|
%
|
|
Adjusted operating income
|
|
|
|
$
|
264.1
|
|
|
|
21.7
|
%
|
|
|
$
|
262.5
|
|
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
|
|
|
|
December 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$
|
956.5
|
|
|
|
|
|
|
$
|
940.6
|
|
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
0.0
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
Adjusted revenue
|
|
|
|
$
|
956.5
|
|
|
|
|
|
|
$
|
940.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$
|
97.1
|
|
|
|
10.1
|
%
|
|
|
$
|
111.8
|
|
|
|
11.9
|
%
|
|
Amortization of intangible assets
|
|
|
|
|
10.1
|
|
|
|
1.1
|
%
|
|
|
|
10.4
|
|
|
|
1.1
|
%
|
|
Purchase accounting adjustments
|
|
|
|
|
0.1
|
|
|
|
0.0
|
%
|
|
|
|
-
|
|
|
|
0.0
|
%
|
|
Acquisition-related costs
|
|
|
|
|
0.1
|
|
|
|
0.0
|
%
|
|
|
|
0.2
|
|
|
|
0.0
|
%
|
|
Restructuring and contract termination charges, net
|
|
|
|
|
11.8
|
|
|
|
1.2
|
%
|
|
|
|
7.6
|
|
|
|
0.8
|
%
|
|
Adjusted operating income
|
|
|
|
$
|
119.1
|
|
|
|
12.5
|
%
|
|
|
$
|
130.7
|
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
Organic revenue growth:
|
|
|
|
|
|
Reported revenue growth
|
|
|
|
4%
|
|
Less: effect of foreign exchange rates
|
|
|
|
0%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
|
|
1%
|
|
Organic revenue growth
|
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human Health
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
Organic revenue growth:
|
|
|
|
|
|
Reported revenue growth
|
|
|
|
5%
|
|
Less: effect of foreign exchange rates
|
|
|
|
0%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
|
|
1%
|
|
Organic revenue growth
|
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Health
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
December 29, 2013
|
|
Organic revenue growth:
|
|
|
|
|
|
Reported revenue growth
|
|
|
|
1%
|
|
Less: effect of foreign exchange rates
|
|
|
|
-1%
|
|
Less: effect of acquisitions including purchase accounting
adjustments
|
|
|
|
1%
|
|
Organic revenue growth
|
|
|
|
1%
|
|
|
|
|
|
|
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 and adjustments
for mark-to-market accounting on post-retirement benefits from these
measures because these 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 other costs related to business acquisitions
are excluded because they only occur due to an acquisition and the
potential subsequent repositioning of the business that could distort
the performance measures of 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, other costs related to business
acquisitions, and significant environmental charges. 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 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, significant environmental
charges, and adjustments for mark-to-market accounting on
post-retirement benefits from these measures because these 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 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 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 and
adjustments for mark-to-market accounting on post-retirement benefits
from these measures because these 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, significant environmental charges, asset
impairments, 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 asset
impairments and 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,
significant environmental charges, asset impairments, restructuring and
contract termination charges, significant debt extinguishment 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, significant
environmental charges, asset impairments, restructuring and contract
termination charges, significant debt extinguishment 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 fourth quarter tax effect on adjusted EPS for (i) discontinued
operations was a benefit of $0.01 in 2013 and an expense of $0.00 in
2012, (ii) amortization of intangible assets was an expense of $0.08 in
2013 and an expense of $0.07 in 2012, (iii) significant environmental
charges was an expense of $0.02 in 2013, (iv) asset impairments was an
expense of $0.02 in 2013 and an expense of $0.23 in 2012, (v)
restructuring and contract termination charges was an expense of $0.04
in 2013 and an expense of $0.01 in 2012, (vi) significant debt
extinguishment charges was an expense of $0.05 in 2013, (vii)
significant tax credits was a benefit of $0.06 in 2013, (viii) 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 $0.01 in 2012,
(ix) adjustments for mark-to-market accounting on post-retirement
benefits was a benefit of $0.03 in 2013 and an expense of $0.08 in 2012.
The fourth 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, and other costs related to business acquisitions) was
$0.00 in both 2013 and 2012.
The full year tax effect on adjusted EPS through the fourth quarter for
(i) discontinued operations was a benefit of $0.01 in 2013 and an
expense of $0.01 in 2012, (ii) amortization of intangible assets was an
expense of $0.28 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 $0.02 in 2012, (iv) significant environmental
charges was an expense of $0.02 in 2013, (v) asset impairments was an
expense of $0.02 in 2013 and an expense of $0.23 in 2012, (vi)
restructuring and contract termination charges was an expense of $0.10
in 2013 and an expense of $0.06 in 2012, (vii) significant debt
extinguishment charges was an expense of $0.05 in 2013, (viii)
significant tax credits was a benefit of $0.14 in 2013, (ix) 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 $0.09 in 2012,
(x) adjustments for mark-to-market accounting on post-retirement
benefits was a benefit of $0.03 in 2013 and an expense of $0.08 in 2012.
The full year tax effect on adjusted EPS through the fourth quarter for
each of the remaining items (changes to the fair values assigned to
contingent consideration and other costs related to business
acquisitions) 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,
significant environmental charges, asset impairments, adjustments for
mark-to-market accounting on post-retirement benefits, restructuring and
contract termination charges, significant debt extinguishment 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.
* * *
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