[February 02, 2017] |
|
PerkinElmer Announces Financial Results for Fourth Quarter and Full Year 2016
PerkinElmer,
Inc. (NYSE: PKI), a global leader focused on innovating for a
healthier world, today reported financial results for the fourth quarter
and full year ended January 1, 2017.
The Company announced the divestiture of its Medical Imaging business in
the fourth quarter of 2016. With the announcement, the Company has moved
the operating results of that business into discontinued operations
thereby impacting comparability to previously issued financial guidance.
Fourth Quarter 2016
The Company reported GAAP earnings per share from continuing operations
of $0.57 versus $0.56 in the comparable prior period of 2015. Revenue
was $566.8 million versus $569.9 million in the comparable prior period
of 2015 resulting in a decline of 1%. GAAP operating income from
continuing operations was $80.4 million versus $77.2 million in the
comparable prior period of 2015.
Adjusted earnings per share from continuing operations of $0.83, as
compared to $0.81 in the comparable prior period in 2015. Adjusted
revenue was $567.0 million versus $570.1 million in the comparable prior
period of 2015 resulting in organic revenue growth of 1%. Adjusted
operating income was $120.6 million versus $118.1 million in the
comparable prior period of 2015.
Full Year 2016
The Company reported GAAP earnings per share from continuing operations
of $1.96, compared to $1.67 in 2015 representing 17% earnings per share
growth. GAAP revenue was $2.12 billion versus $2.10 billion in the
comparable prior period representing 1% growth. GAAP operating income
from continuing operations was $283.1 million as compared to $250.9
million in 2015, representing 13% operating income growth.
Adjusted earnings per share from continuing operations of $2.60,
compared to $2.33 in 2015 representing 12% adjusted earnings per share
growth. Adjusted revenue was $2.12 billion, as compared to $2.11 billion
in 2015 resulting in organic revenue growth of 2%. Adjusted operating
income was $393.6 million, compared to $363.2 million in 2015
representing 8% adjusted operating income growth.
Adjustments for the Company's non-GAAP financial measures have been
noted in the attached reconciliations.
"As we exit 2016, I am pleased with our performance in delivering strong
margin expansion and cash flow growth while making significant progress
against our strategic priorities," said Robert Friel, chairman and chief
executive officer of PerkinElmer. "We have undertaken substantial steps
to strengthen our organization, accelerate our operational capabilities
and increase our focus on innovation, that better position us to improve
revenue growth and increase profitability."
Cash Flow
For the full year, operating cash flow from continuing operations was
$323.8 million as compared to $263.8 million in 2015.
Historical Financial Data
The Company's Annual Report on Form 10-K for the fiscal year ended
January 1, 2017 will be the Company's first periodic report to reflect
the Company's new segment structure and the exclusion of the Company's
Medical Imaging business from continuing operations. Financial
information relating to prior years will be retrospectively adjusted to
reflect these changes.
The Company has made available on the Investor Relations section of its
website (ir.perkinelmer.com) unaudited historical financial data that
retrospectively reflect the Company's new segment structure and the
exclusion of the Company's Medical Imaging business from continuing
operations as well as schedules reconciling the Company's 2016 financial
results and guidance.
Financial Overview by Reporting Segment for the Fourth Quarter and
Full Year 2016
Discovery & Analytical Solutions
-
Fourth quarter 2016 revenue of $409.9 million, as compared to $418.2
million for the fourth quarter of 2015. Fourth quarter 2016 reported
revenue declined 2% and organic revenue declined 1%. Full year 2016
revenue of $1,513.0 million, as compared to $1,528.4 million in 2015.
Full year 2016 reported revenue declined 1% and organic revenue was
unchanged.
-
Fourth quarter 2016 operating income of $72.0 million, as compared to
operating income of $64.4 million for the fourth quarter of 2015. Full
year 2016 operating income of $207.5 million, as compared to operating
income of $173.7 million for 2015.
-
Fourth quarter 2016 adjusted operating income of $85.2 million, as
compared to $86.6 million in the fourth quarter of 2015. Fourth
quarter 2016 adjusted operating profit margin was 20.8% as a
percentage of revenue, as compared to 20.7% in the fourth quarter of
2015. Full year 2016 adjusted operating income of $266.5 million, as
compared to adjusted operating income of $248.2 million for 2015. Full
year 2016 adjusted operating profit margin was 17.6% as a percentage
of revenue, as compared to 16.2% in 2015.
Diagnostics
-
Fourth quarter 2016 revenue of $156.8 million, as compared to $151.7
million for the fourth quarter of 2015. Fourth quarter 2016 reported
revenue increased 3% and organic revenue increased 7%. Full year 2016
revenue of $602.5 million, as compared to $576.4 million in 2015. Full
year 2016 reported revenue increased 5% and organic revenue increased
8%.
-
Fourth quarter 2016 operating income of $34.0 million, as compared to
$37.0 million for the fourth quarter of 2015. Full year 2016 operating
income of $138.9 million, as compared to operating income of $135.6
million for 2015.
-
Fourth quarter 2016 adjusted operating income of $45.7 million, as
compared to $44.2 million in the fourth quarter of 2015. Fourth
quarter 2016 adjusted operating profit margin was 29.1% as a
percentage of adjusted revenue, flat as compared to the fourth quarter
of 2015. Full year 2016 adjusted operating income of $175.1 million,
as compared to adjusted operating income of $160.9 million for 2015.
Full year 2016 adjusted operating profit margin was 29.0% as a
percentage of adjusted revenue, as compared to 27.9% in 2015.
Financial Guidance - Full Year 2017
For the full year 2017, the Company forecasts GAAP earnings per share
from continuing operations in the range of $2.06 to $2.16 and on a
non-GAAP basis, which is expected to include the adjustments noted in
the attached reconciliation, adjusted earnings per share of $2.75 to
$2.85.
Conference Call Information
The Company will discuss its fourth quarter and full year 2016 results
and its outlook for business trends in a conference call on February 2,
2017 at 5:00 p.m. Eastern Time. To access the call, please dial (541)
797-2422 prior to the scheduled conference call time and provide the
access code 40914697.
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) the approval
of the Brexit Referendum in the United Kingdom; (21) our ability to
realize the full value of our intangible assets; (22) significant
fluctuations in our stock price; (23) reduction or elimination of
dividends on our common stock; and (24) other factors which we describe
under the caption "Risk Factors" in our most recent quarterly report on
Form 10-Q and in our other filings with the Securities and Exchange
Commission. We disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring after
the date of this press release.
About PerkinElmer
PerkinElmer, Inc. is a global leader focused on innovating for a
healthier world. The Company reported revenue of approximately $2.1
billion in 2016, has about 9,000 employees serving customers in more
than 150 countries, and is a component of the S&P 500 Index. Additional
information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.
|
PerkinElmer, Inc. and Subsidiaries CONDENSED
CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
(In thousands, except per share data)
|
|
January 1, 2017
|
|
January 3, 2016
|
|
January 1, 2017
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
566,770
|
|
|
$
|
569,903
|
|
|
$
|
2,115,517
|
|
|
$
|
2,104,823
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
290,607
|
|
|
|
302,172
|
|
|
|
1,102,164
|
|
|
|
1,140,592
|
|
Selling, general and administrative expenses
|
|
|
162,795
|
|
|
|
155,324
|
|
|
|
600,885
|
|
|
|
587,219
|
|
Research and development expenses
|
|
|
32,926
|
|
|
|
26,432
|
|
|
|
124,278
|
|
|
|
112,539
|
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
|
8,752
|
|
|
|
5,124
|
|
|
|
13,547
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
|
80,442
|
|
|
|
77,223
|
|
|
|
283,066
|
|
|
|
250,926
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
(341
|
)
|
|
|
(185
|
)
|
|
|
(702
|
)
|
|
|
(673
|
)
|
Interest expense
|
|
|
10,750
|
|
|
|
9,433
|
|
|
|
41,528
|
|
|
|
37,997
|
|
Gain on disposition of businesses and assets, net
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,562
|
)
|
|
|
-
|
|
Other expense, net
|
|
|
847
|
|
|
|
663
|
|
|
|
3,734
|
|
|
|
4,795
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before income taxes
|
|
|
69,186
|
|
|
|
67,312
|
|
|
|
244,068
|
|
|
|
208,807
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
6,897
|
|
|
|
3,920
|
|
|
|
28,362
|
|
|
|
20,022
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
62,289
|
|
|
|
63,392
|
|
|
|
215,706
|
|
|
|
188,785
|
|
|
|
|
|
|
|
|
|
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Income from discontinued operations, before income taxes
|
|
|
3,665
|
|
|
|
7,492
|
|
|
|
22,229
|
|
|
|
35,205
|
|
(Loss) gain on disposition of discontinued operations, before income
taxes
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
619
|
|
|
|
(28
|
)
|
Provision for income taxes on discontinued operations and
dispositions
|
|
|
1,105
|
|
|
|
2,628
|
|
|
|
4,255
|
|
|
|
11,537
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations and dispositions
|
|
|
2,560
|
|
|
|
4,862
|
|
|
|
18,593
|
|
|
|
23,640
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
64,849
|
|
|
$
|
68,254
|
|
|
$
|
234,299
|
|
|
$
|
212,425
|
|
|
|
|
|
|
|
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|
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|
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Diluted earnings per share:
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.57
|
|
|
$
|
0.56
|
|
|
$
|
1.96
|
|
|
$
|
1.67
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations and dispositions
|
|
|
0.02
|
|
|
|
0.04
|
|
|
|
0.17
|
|
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
0.59
|
|
|
$
|
0.61
|
|
|
$
|
2.12
|
|
|
$
|
1.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares of common stock outstanding
|
|
|
110,137
|
|
|
|
112,263
|
|
|
|
110,313
|
|
|
|
113,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
ABOVE PREPARED IN ACCORDANCE WITH GAAP
|
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|
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Additional Supplemental Information (1):
|
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|
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|
|
|
|
(per share, continuing operations)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS from continuing operations
|
|
$
|
0.57
|
|
|
$
|
0.56
|
|
|
$
|
1.96
|
|
|
$
|
1.67
|
|
Amortization of intangible assets
|
|
|
0.16
|
|
|
|
0.17
|
|
|
|
0.65
|
|
|
|
0.68
|
|
Purchase accounting adjustments
|
|
|
0.06
|
|
|
|
0.00
|
|
|
|
0.16
|
|
|
|
0.07
|
|
Significant litigation matter
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
Acquisition and divesiture-related expenses
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
0.01
|
|
|
|
0.01
|
|
Disposition of businesses
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.05
|
)
|
|
|
-
|
|
Mark to market on postretirement benefits
|
|
|
0.14
|
|
|
|
0.10
|
|
|
|
0.14
|
|
|
|
0.11
|
|
Restructuring and contract termination charges
|
|
|
-
|
|
|
|
0.08
|
|
|
|
0.05
|
|
|
|
0.12
|
|
Tax on above items
|
|
|
(0.10
|
)
|
|
|
(0.12
|
)
|
|
|
(0.31
|
)
|
|
|
(0.33
|
)
|
Adjusted EPS
|
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.60
|
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
|
(1) amounts may not sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PerkinElmer, Inc. and Subsidiaries REVENUE AND
OPERATING INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
(In thousands, except percentages)
|
|
January 1, 2017
|
|
January 3, 2016
|
|
January 1, 2017
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAS
|
|
Reported revenue
|
|
$
|
409,944
|
|
|
$
|
418,182
|
|
|
$
|
1,512,984
|
|
|
$
|
1,528,419
|
|
|
|
Purchase accounting adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
27
|
|
|
|
Adjusted Revenue
|
|
|
409,944
|
|
|
|
418,182
|
|
|
|
1,512,984
|
|
|
|
1,528,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
71,994
|
|
|
|
64,382
|
|
|
|
207,487
|
|
|
|
173,668
|
|
|
|
OP%
|
|
|
17.6
|
%
|
|
|
15.4
|
%
|
|
|
13.7
|
%
|
|
|
11.4
|
%
|
|
|
Amortization of intangible assets
|
|
|
13,018
|
|
|
|
14,064
|
|
|
|
53,342
|
|
|
|
54,612
|
|
|
|
Purchase accounting adjustments
|
|
|
16
|
|
|
|
11
|
|
|
|
457
|
|
|
|
7,352
|
|
|
|
Acquisition and divestiture-related expenses
|
|
|
160
|
|
|
|
65
|
|
|
|
513
|
|
|
|
346
|
|
|
|
Significant litigation matter
|
|
|
-
|
|
|
|
812
|
|
|
|
-
|
|
|
|
812
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
|
7,265
|
|
|
|
4,740
|
|
|
|
11,416
|
|
|
|
Adjusted operating income
|
|
|
85,188
|
|
|
|
86,599
|
|
|
|
266,539
|
|
|
|
248,206
|
|
|
|
Adjusted OP%
|
|
|
20.8
|
%
|
|
|
20.7
|
%
|
|
|
17.6
|
%
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics
|
|
Reported revenue
|
|
|
156,826
|
|
|
|
151,721
|
|
|
|
602,533
|
|
|
|
576,404
|
|
|
|
Purchase accounting adjustments
|
|
|
184
|
|
|
|
169
|
|
|
|
711
|
|
|
|
770
|
|
|
|
Adjusted Revenue
|
|
|
157,010
|
|
|
|
151,890
|
|
|
|
603,244
|
|
|
|
577,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
34,033
|
|
|
|
36,977
|
|
|
|
138,909
|
|
|
|
135,572
|
|
|
|
OP%
|
|
|
21.7
|
%
|
|
|
24.4
|
%
|
|
|
23.1
|
%
|
|
|
23.5
|
%
|
|
|
Amortization of intangible assets
|
|
|
4,572
|
|
|
|
5,460
|
|
|
|
18,120
|
|
|
|
22,007
|
|
|
|
Purchase accounting adjustments
|
|
|
6,703
|
|
|
|
188
|
|
|
|
16,955
|
|
|
|
842
|
|
|
|
Acquisition and divestiture-related expenses
|
|
|
441
|
|
|
|
127
|
|
|
|
725
|
|
|
|
306
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
|
1,487
|
|
|
|
384
|
|
|
|
2,131
|
|
|
|
Adjusted operating income
|
|
|
45,749
|
|
|
|
44,239
|
|
|
|
175,093
|
|
|
|
160,858
|
|
|
|
Adjusted OP%
|
|
|
29.1
|
%
|
|
|
29.1
|
%
|
|
|
29.0
|
%
|
|
|
27.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
Reported operating loss
|
|
|
(25,585
|
)
|
|
|
(24,136
|
)
|
|
|
(63,330
|
)
|
|
|
(58,314
|
)
|
|
|
Mark to market on postretirement benefits
|
|
|
15,290
|
|
|
|
11,381
|
|
|
|
15,287
|
|
|
|
12,447
|
|
|
|
Adjusted operating loss
|
|
|
(10,295
|
)
|
|
|
(12,755
|
)
|
|
|
(48,043
|
)
|
|
|
(45,867
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
|
Reported revenue
|
|
$
|
566,770
|
|
|
$
|
569,903
|
|
|
$
|
2,115,517
|
|
|
$
|
2,104,823
|
|
|
|
Purchase accounting adjustments
|
|
|
184
|
|
|
|
169
|
|
|
|
711
|
|
|
|
797
|
|
|
|
Adjusted Revenue
|
|
|
566,954
|
|
|
|
570,072
|
|
|
|
2,116,228
|
|
|
|
2,105,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income from continued operations
|
|
|
80,442
|
|
|
|
77,223
|
|
|
|
283,066
|
|
|
|
250,926
|
|
|
|
OP%
|
|
|
14.2
|
%
|
|
|
13.6
|
%
|
|
|
13.4
|
%
|
|
|
11.9
|
%
|
|
|
Amortization of intangible assets
|
|
|
17,590
|
|
|
|
19,524
|
|
|
|
71,462
|
|
|
|
76,619
|
|
|
|
Purchase accounting adjustments
|
|
|
6,719
|
|
|
|
199
|
|
|
|
17,412
|
|
|
|
8,194
|
|
|
|
Acquisition and divestiture-related expenses
|
|
|
601
|
|
|
|
192
|
|
|
|
1,238
|
|
|
|
652
|
|
|
|
Significant litigation matter
|
|
|
-
|
|
|
|
812
|
|
|
|
-
|
|
|
|
812
|
|
|
|
Mark to market on postretirement benefits
|
|
|
15,290
|
|
|
|
11,381
|
|
|
|
15,287
|
|
|
|
12,447
|
|
|
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
|
8,752
|
|
|
|
5,124
|
|
|
|
13,547
|
|
|
|
Adjusted operating income
|
|
$
|
120,642
|
|
|
$
|
118,083
|
|
|
$
|
393,589
|
|
|
$
|
363,197
|
|
|
|
Adjusted OP%
|
|
|
21.3
|
%
|
|
|
20.7
|
%
|
|
|
18.6
|
%
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN
ACCORDANCE WITH GAAP
|
|
|
PerkinElmer, Inc. and Subsidiaries CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
January 1, 2017
|
|
January 3, 2016
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
359,265
|
|
|
$
|
237,932
|
|
Accounts receivable, net
|
|
|
425,588
|
|
|
|
415,064
|
|
Inventories
|
|
|
246,847
|
|
|
|
259,486
|
|
Other current assets
|
|
|
99,246
|
|
|
|
64,347
|
|
Current assets of discontinued operations
|
|
|
58,985
|
|
|
|
56,332
|
|
Total current assets
|
|
|
1,189,931
|
|
|
|
1,033,161
|
|
|
|
|
|
|
Property, plant and equipment:
|
|
|
|
|
At cost
|
|
|
427,903
|
|
|
|
401,740
|
|
Accumulated depreciation
|
|
|
(282,409
|
)
|
|
|
(264,176
|
)
|
Property, plant and equipment, net
|
|
|
145,494
|
|
|
|
137,564
|
|
Marketable securities and investments
|
|
|
1,678
|
|
|
|
1,586
|
|
Intangible assets, net
|
|
|
420,224
|
|
|
|
485,637
|
|
Goodwill
|
|
|
2,247,966
|
|
|
|
2,236,863
|
|
Other assets, net
|
|
|
203,001
|
|
|
|
196,455
|
|
Long-term assets of discontinued operations
|
|
|
68,389
|
|
|
|
75,029
|
|
Total assets
|
|
$
|
4,276,683
|
|
|
$
|
4,166,295
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
1,172
|
|
|
$
|
1,123
|
|
Accounts payable
|
|
|
168,033
|
|
|
|
140,980
|
|
Short-term accrued restructuring and contract termination charges
|
|
|
7,479
|
|
|
|
17,042
|
|
Accrued expenses and other current liabilities
|
|
|
399,700
|
|
|
|
382,334
|
|
Current liabilities of discontinued operations
|
|
|
26,971
|
|
|
|
20,006
|
|
Total current liabilities
|
|
|
603,355
|
|
|
|
561,485
|
|
|
|
|
|
|
Long-term debt
|
|
|
1,045,254
|
|
|
|
1,011,762
|
|
Long-term liabilities
|
|
|
459,544
|
|
|
|
465,490
|
|
Long-term liabilities of discontinued operations
|
|
|
14,960
|
|
|
|
17,117
|
|
Total liabilities
|
|
|
2,123,113
|
|
|
|
2,055,854
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
2,153,570
|
|
|
|
2,110,441
|
|
Total liabilities and stockholders' equity
|
|
$
|
4,276,683
|
|
|
$
|
4,166,295
|
|
|
|
|
|
|
|
|
|
|
|
PREPARED IN ACCORDANCE WITH GAAP
|
|
|
PerkinElmer, Inc. and Subsidiaries CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
January 1, 2017
|
|
January 3, 2016
|
|
January 1, 2017
|
|
January 3, 2016
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
64,849
|
|
|
$
|
68,254
|
|
|
$
|
234,299
|
|
|
$
|
212,425
|
|
Income from discontinued operations and dispositions, net of income
taxes
|
|
|
(2,560
|
)
|
|
|
(4,862
|
)
|
|
|
(18,593
|
)
|
|
|
(23,640
|
)
|
Income from continuing operations
|
|
|
62,289
|
|
|
|
63,392
|
|
|
|
215,706
|
|
|
|
188,785
|
|
Adjustments to reconcile income from continuing operations
|
|
|
|
|
|
|
|
|
to net cash provided by continuing operations:
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
3,709
|
|
|
|
5,128
|
|
|
|
17,158
|
|
|
|
17,278
|
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
|
8,753
|
|
|
|
5,124
|
|
|
|
13,548
|
|
Depreciation and amortization
|
|
|
25,465
|
|
|
|
26,644
|
|
|
|
99,972
|
|
|
|
105,364
|
|
Pension and other postretirement expenses
|
|
|
14,511
|
|
|
|
9,381
|
|
|
|
14,511
|
|
|
|
9,381
|
|
Change in fair value of contingent consideration
|
|
|
6,505
|
|
|
|
-
|
|
|
|
16,183
|
|
|
|
-
|
|
Amortization of deferred debt financing costs and accretion of
discounts
|
|
|
630
|
|
|
|
384
|
|
|
|
2,137
|
|
|
|
1,496
|
|
Gain on disposition of businesses and assets, net
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,562
|
)
|
|
|
-
|
|
Amortization of acquired inventory revaluation
|
|
|
-
|
|
|
|
-
|
|
|
|
396
|
|
|
|
7,275
|
|
Deferred taxes
|
|
|
(6,526
|
)
|
|
|
(6,571
|
)
|
|
|
(6,526
|
)
|
|
|
(6,571
|
)
|
Contingencies and non-cash tax matters
|
|
|
(291
|
)
|
|
|
(5,342
|
)
|
|
|
(291
|
)
|
|
|
(5,342
|
)
|
Excess tax benefit from exercise of common stock options
|
|
|
-
|
|
|
|
(2,435
|
)
|
|
|
-
|
|
|
|
(2,435
|
)
|
Changes in assets and liabilities which provided (used) cash,
excluding effects from companies purchased and divested:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(24,040
|
)
|
|
|
(32,263
|
)
|
|
|
(18,960
|
)
|
|
|
4,061
|
|
Inventories
|
|
|
20,775
|
|
|
|
18,479
|
|
|
|
6,752
|
|
|
|
(27,931
|
)
|
Accounts payable
|
|
|
24,852
|
|
|
|
6,350
|
|
|
|
30,716
|
|
|
|
(10,897
|
)
|
Accrued expenses and other
|
|
|
14,707
|
|
|
|
24,923
|
|
|
|
(53,540
|
)
|
|
|
(30,178
|
)
|
Net cash provided by operating activities of continuing operations
|
|
|
142,586
|
|
|
|
116,823
|
|
|
|
323,776
|
|
|
|
263,834
|
|
Net cash provided by operating activities of discontinued operations
|
|
|
6,136
|
|
|
|
8,416
|
|
|
|
26,839
|
|
|
|
23,264
|
|
Net cash provided by operating activities
|
|
|
148,722
|
|
|
|
125,239
|
|
|
|
350,615
|
|
|
|
287,098
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(7,291
|
)
|
|
|
(11,577
|
)
|
|
|
(31,702
|
)
|
|
|
(28,218
|
)
|
Proceeds from surrender of life insurance policies
|
|
|
-
|
|
|
|
-
|
|
|
|
44
|
|
|
|
757
|
|
Changes in restricted cash balances
|
|
|
(14,959
|
)
|
|
|
-
|
|
|
|
(16,959
|
)
|
|
|
59
|
|
Proceeds from disposition of businesses
|
|
|
-
|
|
|
|
-
|
|
|
|
21,000
|
|
|
|
-
|
|
Activity related to acquisitions and investments, net of cash and
cash equivalents acquired
|
|
|
-
|
|
|
|
(53,305
|
)
|
|
|
(71,924
|
)
|
|
|
(72,040
|
)
|
Net cash used in investing activities of continuing operations
|
|
|
(22,250
|
)
|
|
|
(64,882
|
)
|
|
|
(99,541
|
)
|
|
|
(99,442
|
)
|
Net cash used in investing activities of discontinued operations
|
|
|
(402
|
)
|
|
|
(241
|
)
|
|
|
(1,302
|
)
|
|
|
(1,414
|
)
|
Net cash used in investing activities
|
|
|
(22,652
|
)
|
|
|
(65,123
|
)
|
|
|
(100,843
|
)
|
|
|
(100,856
|
)
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
Payments on revolving credit facility
|
|
|
(98,000
|
)
|
|
|
(114,000
|
)
|
|
|
(902,507
|
)
|
|
|
(485,000
|
)
|
Proceeds from revolving credit facility
|
|
|
45,000
|
|
|
|
104,000
|
|
|
|
420,507
|
|
|
|
451,000
|
|
Proceeds from sale of senior debt
|
|
|
-
|
|
|
|
-
|
|
|
|
546,190
|
|
|
|
-
|
|
Payments of debt issuance costs
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,868
|
)
|
|
|
-
|
|
Settlement of cash flow hedges
|
|
|
(3,574
|
)
|
|
|
(504
|
)
|
|
|
(1,900
|
)
|
|
|
18,706
|
|
Net payments on other credit facilities
|
|
|
(261
|
)
|
|
|
(272
|
)
|
|
|
(1,096
|
)
|
|
|
(1,072
|
)
|
Payments for acquisition-related contingent consideration
|
|
|
(42
|
)
|
|
|
(77
|
)
|
|
|
(155
|
)
|
|
|
(103
|
)
|
Excess tax benefit from exercise of common stock options
|
|
|
-
|
|
|
|
2,435
|
|
|
|
-
|
|
|
|
2,435
|
|
Proceeds from issuance of common stock under stock plans
|
|
|
2,337
|
|
|
|
1,824
|
|
|
|
14,418
|
|
|
|
14,905
|
|
Purchases of common stock
|
|
|
(161
|
)
|
|
|
(281
|
)
|
|
|
(151,801
|
)
|
|
|
(76,439
|
)
|
Dividends paid
|
|
|
(7,667
|
)
|
|
|
(7,834
|
)
|
|
|
(30,799
|
)
|
|
|
(31,571
|
)
|
Net cash used in financing activities
|
|
|
(62,368
|
)
|
|
|
(14,709
|
)
|
|
|
(115,011
|
)
|
|
|
(107,139
|
)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(16,100
|
)
|
|
|
(2,541
|
)
|
|
|
(13,428
|
)
|
|
|
(15,992
|
)
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
47,602
|
|
|
|
42,866
|
|
|
|
121,333
|
|
|
|
63,111
|
|
Cash and cash equivalents at beginning of period
|
|
|
311,663
|
|
|
|
195,066
|
|
|
|
237,932
|
|
|
|
174,821
|
|
Cash and cash equivalents at end of period
|
|
$
|
359,265
|
|
|
$
|
237,932
|
|
|
$
|
359,265
|
|
|
$
|
237,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
566.8
|
|
|
|
|
$
|
569.9
|
|
|
|
Purchase accounting adjustments
|
|
|
0.2
|
|
|
|
|
|
0.2
|
|
|
|
Adjusted revenue
|
|
$
|
567.0
|
|
|
|
|
$
|
570.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
276.2
|
|
|
48.7
|
%
|
|
$
|
267.7
|
|
|
47.0
|
%
|
Amortization of intangible assets
|
|
|
7.0
|
|
|
1.2
|
%
|
|
|
11.0
|
|
|
1.9
|
%
|
Purchase accounting adjustments
|
|
|
0.2
|
|
|
0.0
|
%
|
|
|
0.2
|
|
|
0.0
|
%
|
Mark to market on postretirement benefits
|
|
|
0.4
|
|
|
0.1
|
%
|
|
|
1.0
|
|
|
0.2
|
%
|
Adjusted gross margin
|
|
$
|
283.8
|
|
|
50.0
|
%
|
|
$
|
279.9
|
|
|
49.1
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
162.8
|
|
|
28.7
|
%
|
|
$
|
155.3
|
|
|
27.3
|
%
|
Amortization of intangible assets
|
|
|
(10.6
|
)
|
|
-1.9
|
%
|
|
|
(8.4
|
)
|
|
-1.5
|
%
|
Purchase accounting adjustments
|
|
|
(6.5
|
)
|
|
-1.2
|
%
|
|
|
(0.0
|
)
|
|
0.0
|
%
|
Acquisition and divestiture related expenses
|
|
|
(0.6
|
)
|
|
-0.1
|
%
|
|
|
(0.2
|
)
|
|
0.0
|
%
|
Significant litigation matter
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(0.8
|
)
|
|
-0.1
|
%
|
Mark to market on postretirement benefits
|
|
|
(14.9
|
)
|
|
-2.6
|
%
|
|
|
(10.2
|
)
|
|
-1.8
|
%
|
Adjusted SG&A
|
|
$
|
130.2
|
|
|
23.0
|
%
|
|
$
|
135.6
|
|
|
23.8
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
32.9
|
|
|
5.8
|
%
|
|
$
|
26.4
|
|
|
4.6
|
%
|
Amortization of intangible assets
|
|
|
(0.0
|
)
|
|
0.0
|
%
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
Adjusted R&D
|
|
$
|
32.9
|
|
|
5.8
|
%
|
|
$
|
26.2
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
80.4
|
|
|
14.2
|
%
|
|
$
|
77.2
|
|
|
13.6
|
%
|
Amortization of intangible assets
|
|
|
17.6
|
|
|
3.1
|
%
|
|
|
19.5
|
|
|
3.4
|
%
|
Purchase accounting adjustments
|
|
|
6.7
|
|
|
1.2
|
%
|
|
|
0.2
|
|
|
0.0
|
%
|
Acquisition and divestiture-related expenses
|
|
|
0.6
|
|
|
0.1
|
%
|
|
|
0.2
|
|
|
0.0
|
%
|
Significant litigation matter
|
|
|
-
|
|
|
0.0
|
%
|
|
|
0.8
|
|
|
0.1
|
%
|
Mark to market on postretirement benefits
|
|
|
15.3
|
|
|
2.7
|
%
|
|
|
11.4
|
|
|
2.0
|
%
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
0.0
|
%
|
|
|
8.8
|
|
|
1.5
|
%
|
Adjusted operating income
|
|
$
|
120.6
|
|
|
21.3
|
%
|
|
$
|
118.1
|
|
|
20.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
Three Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
$
|
0.59
|
|
|
|
|
$
|
0.61
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
0.02
|
|
|
|
|
|
0.04
|
|
|
|
GAAP EPS from continuing operations
|
|
|
0.57
|
|
|
|
|
|
0.56
|
|
|
|
Amortization of intangible assets
|
|
|
0.16
|
|
|
|
|
|
0.17
|
|
|
|
Purchase accounting adjustments
|
|
|
0.06
|
|
|
|
|
|
0.00
|
|
|
|
Significant litigation matter
|
|
|
-
|
|
|
|
|
|
0.01
|
|
|
|
Acquisition and divestiture-related expenses
|
|
|
0.01
|
|
|
|
|
|
0.00
|
|
|
|
Mark to market on postretirement benefits
|
|
|
0.14
|
|
|
|
|
|
0.10
|
|
|
|
Restructuring and contract termination charges
|
|
|
-
|
|
|
|
|
|
0.08
|
|
|
|
Tax on above items
|
|
|
(0.10
|
)
|
|
|
|
|
(0.12
|
)
|
|
|
Adjusted EPS
|
|
$
|
0.83
|
|
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAS
|
|
|
Three Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
409.9
|
|
|
|
|
$
|
418.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
72.0
|
|
|
17.6
|
%
|
|
$
|
64.4
|
|
|
15.4
|
%
|
Amortization of intangible assets
|
|
|
13.0
|
|
|
3.2
|
%
|
|
|
14.1
|
|
|
3.4
|
%
|
Purchase accounting adjustments
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
0.0
|
|
|
0.0
|
%
|
Acquisition and divestiture-related expenses
|
|
|
0.2
|
|
|
0.0
|
%
|
|
|
0.1
|
|
|
0.0
|
%
|
Significant litigation matter
|
|
|
-
|
|
|
0.0
|
%
|
|
|
0.8
|
|
|
0.2
|
%
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
0.0
|
%
|
|
|
7.3
|
|
|
1.7
|
%
|
Adjusted operating income
|
|
$
|
85.2
|
|
|
20.8
|
%
|
|
$
|
86.6
|
|
|
20.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics
|
|
|
Three Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
156.8
|
|
|
|
|
$
|
151.7
|
|
|
|
Purchase accounting adjustments
|
|
|
0.2
|
|
|
|
|
|
0.2
|
|
|
|
Adjusted revenue
|
|
$
|
157.0
|
|
|
|
|
$
|
151.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
34.0
|
|
|
21.7
|
%
|
|
$
|
37.0
|
|
|
24.4
|
%
|
Amortization of intangible assets
|
|
|
4.6
|
|
|
2.9
|
%
|
|
|
5.5
|
|
|
3.6
|
%
|
Purchase accounting adjustments
|
|
|
6.7
|
|
|
4.3
|
%
|
|
|
0.2
|
|
|
0.1
|
%
|
Acquisition and divestiture-related expenses
|
|
|
0.4
|
|
|
0.3
|
%
|
|
|
0.1
|
|
|
0.1
|
%
|
Restructuring and contract termination charges, net
|
|
|
-
|
|
|
0.0
|
%
|
|
|
1.5
|
|
|
1.0
|
%
|
Adjusted operating income
|
|
$
|
45.7
|
|
|
29.1
|
%
|
|
$
|
44.2
|
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
(1) amounts may not sum due to rounding
|
PerkinElmer, Inc. and Subsidiaries RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
(In millions, except per share data and percentages)
|
|
PKI
|
|
|
Twelve Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
2,115.5
|
|
|
|
|
$
|
2,104.8
|
|
|
|
Purchase accounting adjustments
|
|
|
0.7
|
|
|
|
|
|
0.8
|
|
|
|
Adjusted revenue
|
|
$
|
2,116.2
|
|
|
|
|
$
|
2,105.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin:
|
|
|
|
|
|
|
|
|
Gross margin
|
|
$
|
1,013.4
|
|
|
47.9
|
%
|
|
$
|
964.2
|
|
|
45.8
|
%
|
Amortization of intangible assets
|
|
|
30.3
|
|
|
1.4
|
%
|
|
|
42.4
|
|
|
2.0
|
%
|
Purchase accounting adjustments
|
|
|
1.2
|
|
|
0.1
|
%
|
|
|
8.1
|
|
|
0.4
|
%
|
Mark to market on postretirement benefits
|
|
|
0.4
|
|
|
0.0
|
%
|
|
|
1.2
|
|
|
0.1
|
%
|
Adjusted gross margin
|
|
$
|
1,045.2
|
|
|
49.4
|
%
|
|
$
|
1,016.0
|
|
|
48.3
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted SG&A:
|
|
|
|
|
|
|
|
|
SG&A
|
|
$
|
600.9
|
|
|
28.4
|
%
|
|
$
|
587.2
|
|
|
27.9
|
%
|
Amortization of intangible assets
|
|
|
(40.7
|
)
|
|
-1.9
|
%
|
|
|
(33.8
|
)
|
|
-1.6
|
%
|
Purchase accounting adjustments
|
|
|
(16.2
|
)
|
|
-0.8
|
%
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
Acquisition and divestiture-related expenses
|
|
|
(1.2
|
)
|
|
-0.1
|
%
|
|
|
(0.7
|
)
|
|
0.0
|
%
|
Significant litigation matter
|
|
|
-
|
|
|
0.0
|
%
|
|
|
(0.8
|
)
|
|
0.0
|
%
|
Mark to market on postretirement benefits
|
|
|
(14.9
|
)
|
|
-0.7
|
%
|
|
|
(11.1
|
)
|
|
-0.5
|
%
|
Adjusted SG&A
|
|
$
|
527.8
|
|
|
24.9
|
%
|
|
$
|
540.8
|
|
|
25.7
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted R&D:
|
|
|
|
|
|
|
|
|
R&D
|
|
$
|
124.3
|
|
|
5.9
|
%
|
|
$
|
112.5
|
|
|
5.3
|
%
|
Amortization of intangible assets
|
|
|
(0.5
|
)
|
|
0.0
|
%
|
|
|
(0.5
|
)
|
|
0.0
|
%
|
Mark to market on postretirement benefits
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
(0.1
|
)
|
|
0.0
|
%
|
Adjusted R&D
|
|
$
|
123.8
|
|
|
5.8
|
%
|
|
$
|
111.9
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
283.1
|
|
|
13.4
|
%
|
|
$
|
250.9
|
|
|
11.9
|
%
|
Amortization of intangible assets
|
|
|
71.5
|
|
|
3.4
|
%
|
|
|
76.6
|
|
|
3.6
|
%
|
Purchase accounting adjustments
|
|
|
17.4
|
|
|
0.8
|
%
|
|
|
8.2
|
|
|
0.4
|
%
|
Acquisition and divestiture-related expenses
|
|
|
1.2
|
|
|
0.1
|
%
|
|
|
0.7
|
|
|
0.0
|
%
|
Significant litigation matter
|
|
|
-
|
|
|
0.0
|
%
|
|
|
0.8
|
|
|
0.0
|
%
|
Mark to market on postretirement benefits
|
|
|
15.3
|
|
|
0.7
|
%
|
|
|
12.4
|
|
|
0.6
|
%
|
Restructuring and contract termination charges, net
|
|
|
5.1
|
|
|
0.2
|
%
|
|
|
13.5
|
|
|
0.6
|
%
|
Adjusted operating income
|
|
$
|
393.6
|
|
|
18.6
|
%
|
|
$
|
363.2
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
Twelve Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS:
|
|
|
|
|
|
|
|
|
GAAP EPS
|
|
$
|
2.12
|
|
|
|
|
$
|
1.87
|
|
|
|
Discontinued operations
|
|
|
0.17
|
|
|
|
|
|
0.21
|
|
|
|
GAAP EPS from continuing operations
|
|
|
1.96
|
|
|
|
|
|
1.67
|
|
|
|
Amortization of intangible assets
|
|
|
0.65
|
|
|
|
|
|
0.68
|
|
|
|
Purchase accounting adjustments
|
|
|
0.16
|
|
|
|
|
|
0.07
|
|
|
|
Significant litigation matter
|
|
|
-
|
|
|
|
|
|
0.01
|
|
|
|
Acquisition and divestiture-related expenses
|
|
|
0.01
|
|
|
|
|
|
0.01
|
|
|
|
Gain on disposition of businesses and assets, net
|
|
|
(0.05
|
)
|
|
|
|
|
-
|
|
|
|
Mark to market on postretirement benefits
|
|
|
0.14
|
|
|
|
|
|
0.11
|
|
|
|
Restructuring and contract termination charges
|
|
|
0.05
|
|
|
|
|
|
0.12
|
|
|
|
Tax on above items
|
|
|
(0.31
|
)
|
|
|
|
|
(0.33
|
)
|
|
|
Adjusted EPS
|
|
$
|
2.60
|
|
|
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PKI
|
|
|
|
|
|
|
Twelve Months Ended December
31, 2017
|
|
|
Adjusted EPS:
|
|
|
|
|
|
Projected
|
|
|
GAAP EPS from continuing operations
|
|
|
|
|
|
$2.06 - $2.16
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
|
0.63
|
|
|
|
Purchase accounting adjustments
|
|
|
|
|
|
0.11
|
|
|
|
Acquisition and divestiture-related expenses
|
|
|
|
|
|
0.17
|
|
|
|
Tax on above items
|
|
|
|
|
|
(0.22
|
)
|
|
|
Adjusted EPS
|
|
|
|
|
|
$2.75 - $2.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAS
|
|
|
Twelve Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,513.0
|
|
|
|
|
$
|
1,528.4
|
|
|
|
Purchase accounting adjustments
|
|
|
-
|
|
|
|
|
|
0.0
|
|
|
|
Adjusted revenue
|
|
$
|
1,513.0
|
|
|
|
|
$
|
1,528.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
207.5
|
|
|
13.7
|
%
|
|
$
|
173.7
|
|
|
11.4
|
%
|
Amortization of intangible assets
|
|
|
53.3
|
|
|
3.5
|
%
|
|
|
54.6
|
|
|
3.6
|
%
|
Purchase accounting adjustments
|
|
|
0.5
|
|
|
0.0
|
%
|
|
|
7.4
|
|
|
0.5
|
%
|
Acquisition and divestiture-related expenses
|
|
|
0.5
|
|
|
0.0
|
%
|
|
|
0.3
|
|
|
0.0
|
%
|
Significant litigation matter
|
|
|
-
|
|
|
0.0
|
%
|
|
|
0.8
|
|
|
0.1
|
%
|
Restructuring and contract termination charges, net
|
|
|
4.7
|
|
|
0.3
|
%
|
|
|
11.4
|
|
|
0.7
|
%
|
Adjusted operating income
|
|
$
|
266.5
|
|
|
17.6
|
%
|
|
$
|
248.2
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics
|
|
|
Twelve Months Ended
|
|
|
January 1, 2017
|
|
|
|
January 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted revenue:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
602.5
|
|
|
|
|
$
|
576.4
|
|
|
|
Purchase accounting adjustments
|
|
|
0.7
|
|
|
|
|
|
0.8
|
|
|
|
Adjusted revenue
|
|
$
|
603.2
|
|
|
|
|
$
|
577.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income:
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
138.9
|
|
|
23.1
|
%
|
|
$
|
135.6
|
|
|
23.5
|
%
|
Amortization of intangible assets
|
|
|
18.1
|
|
|
3.0
|
%
|
|
|
22.0
|
|
|
3.8
|
%
|
Purchase accounting adjustments
|
|
|
17.0
|
|
|
2.8
|
%
|
|
|
0.8
|
|
|
0.1
|
%
|
Acquisition and divestiture-related expenses
|
|
|
0.7
|
|
|
0.1
|
%
|
|
|
0.3
|
|
|
0.1
|
%
|
Restructuring and contract termination charges, net
|
|
|
0.4
|
|
|
0.1
|
%
|
|
|
2.1
|
|
|
0.4
|
%
|
Adjusted operating income
|
|
$
|
175.1
|
|
|
29.0
|
%
|
|
$
|
160.9
|
|
|
27.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) amounts may not sum due to rounding
|
PerkinElmer, Inc. and Subsidiaries RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (1)
|
|
|
|
|
|
|
|
|
PKI
|
|
|
Three Months Ended January 1,
2017
|
Organic revenue growth:
|
|
|
Reported revenue growth
|
|
-1%
|
Less: effect of foreign exchange rates
|
|
-1%
|
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses
|
|
0%
|
Organic revenue growth
|
|
1%
|
|
|
|
|
|
|
|
|
DAS
|
|
|
Three Months Ended January 1,
2017
|
Organic revenue growth:
|
|
|
Reported revenue growth
|
|
-2%
|
Less: effect of foreign exchange rates
|
|
-1%
|
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses
|
|
1%
|
Organic revenue growth
|
|
-1%
|
|
|
|
|
|
|
|
|
Diagnostics
|
|
|
Three Months Ended January 1,
2017
|
Organic revenue growth:
|
|
|
Reported revenue growth
|
|
3%
|
Less: effect of foreign exchange rates
|
|
-1%
|
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses
|
|
-3%
|
Organic revenue growth
|
|
7%
|
|
|
|
(1) amounts may not sum due to rounding
|
PerkinElmer, Inc. and Subsidiaries RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (1)
|
|
|
|
|
|
|
|
|
PKI
|
|
|
Twelve Months Ended January
1, 2017
|
Organic revenue growth:
|
|
|
Reported revenue growth
|
|
1%
|
Less: effect of foreign exchange rates
|
|
-1%
|
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses
|
|
0%
|
Organic revenue growth
|
|
2%
|
|
|
|
|
|
|
|
|
DAS
|
|
|
Twelve Months Ended January
1, 2017
|
Organic revenue growth:
|
|
|
Reported revenue growth
|
|
-1%
|
Less: effect of foreign exchange rates
|
|
-1%
|
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses
|
|
0%
|
Organic revenue growth
|
|
0%
|
|
|
|
|
|
|
|
|
Diagnostics
|
|
|
Twelve Months Ended January
1, 2017
|
Organic revenue growth:
|
|
|
Reported revenue growth
|
|
5%
|
Less: effect of foreign exchange rates
|
|
-1%
|
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses
|
|
-2%
|
Organic revenue growth
|
|
8%
|
|
|
|
(1) amounts may not sum due to rounding
Explanation of Non-GAAP Financial Measures
We report our financial results in accordance with U. S. generally
accepted accounting principles ("GAAP"). However, management believes
that, in order to more fully understand our short-term and long-term
financial and operational trends, investors may wish to consider the
impact of certain non-cash, non-recurring or other items, which result
from facts and circumstances that vary in frequency and impact on
continuing operations. Accordingly, we present non-GAAP financial
measures as a supplement to the financial measures we present in
accordance with GAAP. These non-GAAP financial measures provide
management with additional means to understand and evaluate the
operating results and trends in our ongoing business by adjusting for
certain non-cash expenses and other items that management believes might
otherwise make comparisons of our ongoing business with prior periods
more difficult, obscure trends in ongoing operations, or reduce
management's ability to make useful forecasts. Management believes these
non-GAAP financial measures provide additional means of evaluating
period-over-period operating performance. In addition, management
understands that some investors and financial analysts find this
information helpful in analyzing our financial and operational
performance and comparing this performance to our peers and competitors.
We use the term "adjusted revenue" to refer to GAAP revenue, including
purchase accounting adjustments for revenue from contracts acquired in
acquisitions that will not be fully recognized due to 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 use the term "organic revenue" to refer to GAAP revenue, excluding
the effect of foreign currency changes and acquisitions, and including
purchase accounting adjustments for revenue from contracts acquired in
acquisitions that will not be fully recognized due to accounting rules.
We also exclude the impact of sales from divested businesses by
deducting the effects of divested business revenue from the current and
prior periods. 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 use the term "adjusted gross margin" to refer to GAAP gross margin,
excluding amortization of intangible assets, inventory fair value
adjustments related to business acquisitions, and including purchase
accounting adjustments for revenue from contracts acquired in
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 use the term "adjusted SG&A expense" to refer to GAAP SG&A expense,
excluding amortization of intangible assets, purchase accounting
adjustments, acquisition and divestiture-related expenses, significant
litigation matters 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 use the term "adjusted R&D expense" to refer to GAAP R&D expense,
excluding amortization of intangible assets. We use the related term
"adjusted R&D percentage" to refer to adjusted R&D expense as a
percentage of adjusted revenue.
We use the term "adjusted operating income," to refer to GAAP operating
income, including revenue from contracts acquired in acquisitions that
will not be fully recognized due to accounting rules, and excluding
amortization of intangible assets, other purchase accounting
adjustments, acquisition and divestiture-related expenses, significant
litigation matters, significant environmental charges, and restructuring
and contract termination 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 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 use the term "adjusted earnings per share," or "adjusted EPS," to
refer to GAAP earnings per share, including revenue from contracts
acquired in acquisitions that will not be fully recognized due to
accounting rules, and excluding discontinued operations, amortization of
intangible assets, other purchase accounting adjustments, acquisition
and divestiture-related expenses, significant litigation matters,
significant environmental charges, gain on disposition of businesses and
assets, net, and restructuring and contract termination 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 also adjust for any tax impact related to the
above items.
Management includes or excludes the effect of each of the items
identified below in the applicable non-GAAP financial measure referenced
above for the reasons set forth below with respect to that item:
-
Amortization of intangible assets-
purchased intangible assets are amortized over their estimated useful
lives and generally cannot be changed or influenced by management
after the acquisition. Accordingly, this item is not considered by
management in making operating decisions. Management does not believe
such charges accurately reflect the performance of our ongoing
operations for the period in which such charges are incurred.
-
Revenue from contracts acquired in
acquisitions that will not be fully recognized due to accounting rules-accounting
rules require us to account for the fair value of revenue from
contracts assumed in connection with our acquisitions. As a result,
our GAAP results reflect the fair value of those revenues, which is
not the same as the revenue that otherwise would have been recorded by
the acquired entity. We include such revenue in our non-GAAP measures
because we believe the fair value of such revenue does not accurately
reflect the performance of our ongoing operations for the period in
which such revenue is recorded.
-
Other purchase accounting adjustments-accounting
rules require us to adjust various balance sheet accounts, including
inventory and deferred rent balances to fair value at the time of the
acquisition. As a result, the expenses for these items in our GAAP
results are not the same as what would have been recorded by the
acquired entity. Accounting rules also require us to estimate the fair
value of contingent consideration at the time of the acquisition, and
any subsequent changes to the estimate or payment of the contingent
consideration and purchase accounting adjustments are charged to
expense or income. We exclude the impact of any changes to contingent
consideration from our non-GAAP measures because we believe these
expenses or benefits do not accurately reflect the performance of our
ongoing operations for the period in which such expenses or benefits
are recorded.
-
Acquisition and divestiture-related expenses-we
incur legal, due diligence, stay bonuses and other costs related to
acquisitions and divestitures. We exclude these expenses from our
non-GAAP measures because we believe they do not reflect the
performance of our ongoing operations.
-
Restructuring and contract termination charges-restructuring
and contract termination expenses consist of employee severance and
other exit costs as well as the cost of terminating certain lease
agreements or contracts. Management does not believe such costs
accurately reflect the performance of our ongoing operations for the
period in which such costs are reported.
-
Adjustments for mark-to-market accounting on
post-retirement benefits-we exclude adjustments for
mark-to-market accounting on post-retirement benefits, therefore only
our projected costs have been used to calculate our non-GAAP measures.
We exclude these adjustments because they 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.
-
Significant litigation matters-we
incurred expenses related to significant litigation matters.
Management does not believe such charges accurately reflect the
performance of our ongoing operations for the periods in which such
charges were incurred.
-
Significant environmental charges-we
incurred expenses related to significant environmental charges.
Management does not believe such charges accurately reflect the
performance of our ongoing operations for the periods in which such
charges were incurred.
-
Gain on disposition of businesses and assets,
net-we exclude the impact of gains or losses from the
disposition of businesses and assets from our adjusted earnings per
share. Management does not believe such gains or losses accurately
reflect the performance of our ongoing operations for the period in
which such gains or losses are reported.
-
Impact of foreign currency changes on the
current period-we exclude the impact of foreign currency
from these measures by using the prior period's foreign currency
exchange rates for the current period because foreign currency
exchange rates are subject to volatility and can obscure underlying
trends.
# # #
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
and divestitures, significant litigation matters, significant
environmental charges, adjustments for mark-to-market accounting on
post-retirement benefits, gain on disposition of businesses and assets,
restructuring and contract termination charges, and the 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 tax effect for the impact from foreign currency exchange
rates on the current period is calculated based on the average rate
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 by which 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 is 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170202006322/en/
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