PerkinElmer Announces Financial Results for the Fourth Quarter and Full Year 2019

  • 4Q Revenue of $805.5 million; 6% reported growth; 5% organic growth
  • 4Q GAAP EPS from continuing operations of $0.58; Adjusted EPS of $1.35
  • 4Q GAAP operating income margin of 17.2%; Adjusted operating income margin from continuing operations of 23.9%
  • Initiates FY20 GAAP EPS guidance range of $2.89 to $2.99 from continuing operations; Adjusted EPS guidance of $4.50 to $4.60; FY20 Revenue of $3.05 billion to $3.09 billion; 6-7% reported growth; 5-6% organic growth
  • Initiates 1Q20 GAAP EPS guidance of $0.33 from continuing operations; Adjusted EPS guidance of $0.70; 1Q20 Revenue of $700 million; 8% reported growth; 6% organic growth

WALTHAM, Mass.–(BUSINESS WIRE)–PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the fourth quarter and full year ended December 29, 2019.

Fourth Quarter 2019

The Company reported GAAP earnings per share from continuing operations of $0.58, as compared to GAAP earnings per share from continuing operations of $0.64 in the fourth quarter of 2018. GAAP revenue for the quarter was $805.5 million, as compared to $756.3 million in the fourth quarter of 2018. GAAP operating income from continuing operations for the quarter was $138.2 million, as compared to $115.7 million for the same period a year ago. GAAP operating profit margin was 17.2% as a percentage of revenue, as compared to 15.3% in the fourth quarter of 2018.

Adjusted earnings per share from continuing operations for the quarter was $1.35, as compared to $1.18 in the fourth quarter of 2018. Adjusted revenue for the quarter was $805.7 million, as compared to $756.5 million in the fourth quarter of 2018. Adjusted operating income from continuing operations for the quarter was $192.3 million, as compared to $164.3 million for the same period a year ago. Adjusted operating profit margin was 23.9% as a percentage of adjusted revenue, as compared to 21.7% in the fourth quarter of 2018.

Full Year 2019

The Company reported GAAP earnings per share from continuing operations of $2.04, as compared to GAAP earnings per share from continuing operations of $2.13 in 2018. GAAP revenue for the year was $2.88 billion, as compared to $2.78 billion in 2018. GAAP operating income from continuing operations for the year was $362.0 million, as compared to $323.9 million in 2018. GAAP operating profit margin was 12.6% as a percentage of revenue, as compared to 11.7% in 2018.

Adjusted earnings per share from continuing operations for the year was $4.10, as compared to $3.61 in 2018. Adjusted revenue for the year was $2.88 billion, as compared to $2.78 billion in 2018. Adjusted operating income from continuing operations for the year was $596.0 million, as compared to $527.1 million in 2018. Adjusted operating profit margin was 20.7% as a percentage of adjusted revenue, as compared to 19.0% in 2018.

Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations.

“We are pleased with our strong finish to 2019. The rapid transformation we made as an organization over the past few years and in particular 2019 has put us in an excellent position to accelerate profitable growth and advance outcomes around the world in 2020 and beyond,” said Prahlad Singh, president and chief executive officer of PerkinElmer.

Financial Overview by Reporting Segment for the Fourth Quarter and Full Year 2019

Discovery & Analytical Solutions

  • Fourth quarter 2019 revenue was $496.5 million, as compared to $459.9 million for the fourth quarter of 2018. Reported revenue increased 8% and organic revenue increased 5% as compared to the fourth quarter of 2018. Full year 2019 revenue was $1.75 billion, as compared to $1.69 billion in 2018. Full year reported and organic revenue increased 3%.
  • Fourth quarter 2019 operating income from continuing operations was $91.4 million, as compared to $81.2 million for the comparable prior period. Full year 2019 operating income was $238.3 million, as compared to $230.5 million in 2018.
  • Fourth quarter 2019 adjusted operating income was $116.0 million, as compared to $92.7 million for the fourth quarter of 2018. Full year 2019 adjusted operating income was $338.0 million, as compared to $295.0 million in 2018.

Diagnostics

  • Fourth quarter 2019 revenue was $309.0 million, as compared to $296.5 million for the fourth quarter of 2018. Reported revenue increased 4% and organic revenue increased 5% as compared to the fourth quarter of 2018. Full year 2019 revenue was $1.14 billion, as compared to $1.08 billion in 2018. Full year revenue increased 5% and organic revenue increased 7%.
  • Fourth quarter 2019 operating income from continuing operations was $61.1 million, as compared to $48.6 million for the comparable prior period. Full year 2019 operating income was $189.3 million, as compared to $153.2 million in 2018.
  • Fourth quarter 2019 adjusted operating income was $90.6 million, as compared to $85.8 million for the fourth quarter of 2018. Full year 2019 adjusted operating income was $316.0 million, as compared to $291.9 million in 2018.

Initiates Financial Guidance: Full-Year and First Quarter 2020

For the full year 2020, the Company forecasts GAAP revenue of $3.05 billion to $3.09 billion. GAAP earnings per share from continuing operations in a range of $2.89-$2.99 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $4.50-$4.60.

For the first quarter of 2020, the Company forecasts GAAP revenue of $700 million. GAAP earnings per share from continuing operations of $0.33 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $0.70.

Conference Call Information

The Company will discuss its fourth quarter and full year 2019 results and its outlook for business trends in a conference call on January 27, 2020 at 5:00 p.m. Eastern Time. To access the call, please dial (720) 405-2250 prior to the scheduled conference call time and provide the access code 6497348.

A live audio webcast of the call will be available on the Investors 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, acquisitions 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, or cybercrime; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) the United Kingdom’s pending withdrawal from the European Union; (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 $2.9 billion in 2019, has about 13,000 employees serving customers in more than 190 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) December 29,
2019
December 30,
2018
December 29,
2019
December 30,
2018
 
 
Revenue

$

805,496

 

$

756,349

 

$

2,883,673

 

$

2,777,996

 

 
Cost of revenue

 

407,315

 

 

380,099

 

 

1,487,618

 

 

1,437,057

 

Selling, general and administrative expenses

 

210,737

 

 

210,539

 

 

815,318

 

 

811,913

 

Research and development expenses

 

47,636

 

 

51,970

 

 

189,336

 

 

193,998

 

Restructuring and other, net

 

1,560

 

 

(1,942

)

 

29,428

 

 

11,144

 

 
Operating income from continuing operations

 

138,248

 

 

115,683

 

 

361,973

 

 

323,884

 

 
Interest income

 

(570

)

 

(387

)

 

(1,495

)

 

(1,141

)

Interest expense

 

14,421

 

 

16,231

 

 

63,627

 

 

66,976

 

Loss (gain) on disposition of businesses and assets, net

 

 

 

187

 

 

2,469

 

 

(12,844

)

Debt extinguishment costs

 

32,070

 

 

 

 

32,541

 

 

 

Other (income) expense, net

 

27,031

 

 

20,223

 

 

27,689

 

 

13,210

 

 
Income from continuing operations, before income taxes

 

65,296

 

 

79,429

 

 

237,142

 

 

257,683

 

 
Provision for income taxes

 

747

 

 

8,107

 

 

9,389

 

 

20,208

 

 
Income from continuing operations

 

64,549

 

 

71,322

 

 

227,753

 

 

237,475

 

 
Loss on disposition of discontinued operations, before income taxes

 

 

 

 

 

 

 

(859

)

Provision for (benefit from) income taxes on discontinued operations and dispositions

 

48

 

 

30

 

 

195

 

 

(1,311

)

 
(Loss) gain from discontinued operations and dispositions

 

(48

)

 

(30

)

 

(195

)

 

452

 

 
Net income

$

64,501

 

$

71,292

 

$

227,558

 

$

237,927

 

 
 
Diluted earnings per share:
Income from continuing operations

$

0.58

 

$

0.64

 

$

2.04

 

$

2.13

 

 
(Loss) gain from discontinued operations and dispositions

 

(0.00

)

 

(0.00

)

 

(0.00

)

 

0.00

 

 
Net income

$

0.58

 

$

0.64

 

$

2.04

 

$

2.13

 

 
 
Weighted average diluted shares of common stock outstanding

 

111,625

 

 

111,609

 

 

111,501

 

 

111,534

 

 
 
ABOVE PREPARED IN ACCORDANCE WITH GAAP
 
 
Additional Supplemental Information (1):
(per share, continuing operations)
 
GAAP EPS from continuing operations

 

0.58

 

 

0.64

 

 

2.04

 

 

2.13

 

Amortization of intangible assets

 

0.39

 

 

0.32

 

 

1.47

 

 

1.22

 

Debt extinguishment costs

 

0.29

 

 

 

 

0.29

 

 

 

Purchase accounting adjustments

 

0.07

 

 

0.05

 

 

0.24

 

 

0.31

 

Acquisition and divestiture-related costs

 

0.01

 

 

0.09

 

 

0.06

 

 

0.14

 

Change in fair value of financial securities

 

(0.03

)

 

 

 

(0.03

)

 

 

Acceleration of executive compensation

 

 

 

 

 

0.07

 

 

 

Significant litigation matters

 

0.01

 

 

0.00

 

 

0.02

 

 

0.05

 

Disposition of businesses and assets, net

 

 

 

0.00

 

 

0.02

 

 

(0.12

)

Mark to market on postretirement benefits

 

0.28

 

 

0.19

 

 

0.28

 

 

0.19

 

Restructuring and other, net

 

0.01

 

 

(0.02

)

 

0.26

 

 

0.10

 

Tax on above items

 

(0.25

)

 

(0.12

)

 

(0.65

)

 

(0.40

)

Impact of tax act

 

 

 

0.03

 

 

0.02

 

 

(0.02

)

Adjusted EPS

 

1.35

 

 

1.18

 

 

4.10

 

 

3.61

 

 
(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) December 29,
2019
December 30,
2018
December 29,
2019
December 30,
2018
 
 
DAS Reported revenue

$

496,457

 

$

459,892

 

$

1,746,161

 

$

1,693,211

 

 
Reported operating income from continued operations

91,368

 

81,238

 

238,331

 

230,481

 

OP%

18.4

%

17.7

%

13.6

%

13.6

%

Amortization of intangible assets

15,793

 

11,553

 

52,898

 

46,120

 

Purchase accounting adjustments

8,377

 

308

 

20,857

 

409

 

Acquisition and divestiture-related costs

375

 

921

 

1,778

 

2,680

 

Significant litigation matters

569

 

297

 

2,189

 

5,347

 

Restructuring and other, net

(469

)

(1,606

)

21,958

 

9,960

 

Adjusted operating income

116,013

 

92,711

 

338,011

 

294,997

 

Adjusted OP%

23.4

%

20.2

%

19.4

%

17.4

%

 
Diagnostics Reported revenue

309,039

 

296,457

 

1,137,512

 

1,084,785

 

Purchase accounting adjustments

194

 

190

 

770

 

752

 

Adjusted Revenue

309,233

 

296,647

 

1,138,282

 

1,085,537

 

 
Reported operating income from continued operations

61,146

 

48,611

 

189,330

 

153,196

 

OP%

19.8

%

16.4

%

16.6

%

14.1

%

Amortization of intangible assets

27,335

 

23,703

 

111,429

 

89,815

 

Purchase accounting adjustments

(369

)

4,859

 

5,412

 

34,376

 

Acquisition and divestiture-related costs

332

 

8,955

 

2,210

 

13,131

 

Significant litigation matters

106

 

 

106

 

193

 

Restructuring and other, net

2,029

 

(336

)

7,470

 

1,184

 

Adjusted operating income

90,579

 

85,792

 

315,957

 

291,895

 

Adjusted OP%

29.3

%

28.9

%

27.8

%

26.9

%

 
Corporate Reported operating loss

(14,266

)

(14,166

)

(65,688

)

(59,793

)

Acceleration of executive compensation

 

 

7,721

 

 

Adjusted operating loss

(14,266

)

(14,166

)

(57,967

)

(59,793

)

 
Continuing Operations Reported revenue

$

805,496

 

$

756,349

 

$

2,883,673

 

$

2,777,996

 

Purchase accounting adjustments

194

 

190

 

770

 

752

 

Adjusted Revenue

805,690

 

756,539

 

2,884,443

 

2,778,748

 

 
Reported operating income from continued operations

138,248

 

115,683

 

361,973

 

323,884

 

OP%

17.2

%

15.3

%

12.6

%

11.7

%

Amortization of intangible assets

43,128

 

35,256

 

164,327

 

135,935

 

Purchase accounting adjustments

8,008

 

5,167

 

26,269

 

34,785

 

Acquisition and divestiture-related costs

707

 

9,876

 

3,988

 

15,811

 

Acceleration of executive compensation

 

 

7,721

 

 

Significant litigation matters

675

 

297

 

2,295

 

5,540

 

Restructuring and other, net

1,560

 

(1,942

)

29,428

 

11,144

 

Adjusted operating income

$

192,326

 

$

164,337

 

$

596,001

 

$

527,099

 

Adjusted OP%

23.9

%

21.7

%

20.7

%

19.0

%

 
 
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP
 
PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
(In thousands) December 29, 2019 December 30, 2018
 
Current assets:
Cash and cash equivalents

$

191,877

 

$

163,111

 

Accounts receivable, net

 

725,184

 

 

632,669

 

Inventories, net

 

356,937

 

 

338,347

 

Other current assets

 

100,523

 

 

100,507

 

Total current assets

 

1,374,521

 

 

1,234,634

 

 
Property, plant and equipment:
At cost

 

701,580

 

 

680,183

 

Accumulated depreciation

 

(383,357

)

 

(361,593

)

Property, plant and equipment, net

 

318,223

 

 

318,590

 

 
Operating lease right-of-use assets

 

167,276

 

 

 

Intangible assets, net

 

1,283,286

 

 

1,199,667

 

Goodwill

 

3,111,227

 

 

2,952,608

 

Other assets, net

 

290,032

 

 

270,023

 

Total assets

$

6,544,565

 

$

5,975,522

 

 
Current liabilities:
Current portion of long-term debt

$

9,974

 

$

14,856

 

Accounts payable

 

235,855

 

 

220,949

 

Short-term accrued restructuring and other

 

11,559

 

 

4,834

 

Accrued expenses and other current liabilities

 

509,333

 

 

528,827

 

Current liabilities of discontinued operations

 

2,112

 

 

2,165

 

Total current liabilities

 

768,833

 

 

771,631

 

 
Long-term debt

 

2,064,041

 

 

1,876,624

 

Long-term liabilities

 

751,468

 

 

742,312

 

Operating lease liabilities

 

146,399

 

 

 

Total liabilities

 

3,730,741

 

 

3,390,567

 

 
Total stockholders’ equity

 

2,813,824

 

 

2,584,955

 

Total liabilities and stockholders’ equity

$

6,544,565

 

$

5,975,522

 

 
 
PREPARED IN ACCORDANCE WITH GAAP
 
PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
Three Months Ended Twelve Months Ended
December 29,
2019
December 30,
2018
December 29,
2019
December 30,
2018
(In thousands) (In thousands)
 
Operating activities:
Net income

$

64,501

 

$

71,292

 

$

227,558

 

$

237,927

 

Loss (gain) from discontinued operations and dispositions, net of income taxes

 

48

 

 

30

 

 

195

 

 

(452

)

Income from continuing operations

 

64,549

 

 

71,322

 

 

227,753

 

 

237,475

 

Adjustments to reconcile income from continuing operations
to net cash provided by continuing operations:
Stock-based compensation

 

6,409

 

 

5,492

 

 

31,514

 

 

28,767

 

Restructuring and other, net

 

1,560

 

 

(1,942

)

 

29,428

 

 

11,144

 

Depreciation and amortization

 

56,908

 

 

47,202

 

 

214,025

 

 

180,588

 

Pension and other postretirement expenses

 

26,107

 

 

11,915

 

 

26,107

 

 

11,915

 

Change in fair value of contingent consideration

 

(518

)

 

3,835

 

 

3,881

 

 

14,639

 

Amortization of deferred debt financing costs and accretion of discounts

 

1,068

 

 

887

 

 

3,846

 

 

3,341

 

Loss (gain) on disposition of businesses and assets, net

 

 

 

187

 

 

2,469

 

 

(12,844

)

Gain on sale of investments, net

 

 

 

 

 

 

 

(557

)

Change in fair value of financial securities

 

(3,249

)

 

 

 

(3,249

)

 

 

Debt extinguishment costs

 

32,070

 

 

 

 

32,541

 

 

 

Amortization of acquired inventory revaluation

 

8,332

 

 

1,112

 

 

21,590

 

 

19,272

 

Deferred taxes

 

(52,678

)

 

(51,103

)

 

(52,678

)

 

(51,103

)

Contingencies and non-cash tax matters

 

(424

)

 

(671

)

 

(424

)

 

(671

)

Changes in assets and liabilities which provided (used) cash, excluding
effects from companies acquired:
Accounts receivable, net

 

(78,498

)

 

(81,842

)

 

(100,630

)

 

(94,512

)

Inventories

 

38,761

 

 

11,129

 

 

(9,607

)

 

(30,183

)

Accounts payable

 

41,394

 

 

45,487

 

 

7,351

 

 

8,900

 

Accrued expenses and other

 

73,419

 

 

96,409

 

 

(70,448

)

 

(14,933

)

Net cash provided by operating activities of continuing operations

 

215,210

 

 

159,419

 

 

363,469

 

 

311,238

 

Net cash used in operating activities of discontinued operations

 

 

 

 

 

 

 

(200

)

Net cash provided by operating activities

 

215,210

 

 

159,419

 

 

363,469

 

 

311,038

 

 
Investing activities:
Capital expenditures

 

(23,249

)

 

(32,810

)

 

(76,331

)

 

(93,253

)

Purchases of investments

 

(1,000

)

 

(1,519

)

 

(6,387

)

 

(7,019

)

Purchases of licenses

 

 

 

 

 

(5,000

)

 

 

Proceeds from surrender of life insurance policies

 

 

 

 

 

 

 

72

 

Proceeds from disposition of businesses and assets

 

 

 

 

 

550

 

 

38,027

 

Payment of acquisitions, net of cash and cash equivalents acquired

 

(147,785

)

 

(53,629

)

 

(400,405

)

 

(97,686

)

Net cash used in investing activities of continuing operations

 

(172,034

)

 

(87,958

)

 

(487,573

)

 

(159,859

)

Net cash provided by investing activities of discontinued operations

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(172,034

)

 

(87,958

)

 

(487,573

)

 

(159,859

)

 
Financing Activities:
Payments on borrowings

 

(273,000

)

 

(245,000

)

 

(1,692,489

)

 

(1,264,000

)

Proceeds from borrowings

 

565,000

 

 

252,000

 

 

1,599,416

 

 

857,000

 

Payments of senior debt

 

(530,276

)

 

 

 

(530,276

)

 

 

Proceeds from sale of senior debt

 

 

 

 

 

847,195

 

 

369,340

 

Payments of debt financing costs

 

(1,854

)

 

 

 

(9,879

)

 

(2,634

)

Settlement of cash flow hedges

 

307

 

 

(3,847

)

 

(1,280

)

 

(34,132

)

Net payments on other credit facilities

 

(3,911

)

 

(5,512

)

 

(14,975

)

 

(28,383

)

Payments for acquisition-related contingent consideration

 

(1,742

)

 

 

 

(29,942

)

 

(12,800

)

Proceeds from issuance of common stock under stock plans

 

2,169

 

 

5,348

 

 

19,732

 

 

24,833

 

Purchases of common stock

 

(112

)

 

(52,471

)

 

(6,313

)

 

(57,445

)

Dividends paid

 

(7,777

)

 

(7,787

)

 

(31,059

)

 

(31,009

)

Net cash (used in) provided by financing activities of continuing operations

 

(251,196

)

 

(57,269

)

 

150,130

 

 

(179,230

)

Net cash used in financing activities of discontinued operations

 

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

(251,196

)

 

(57,269

)

 

150,130

 

 

(179,230

)

 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

3,937

 

 

(594

)

 

(447

)

 

(8,004

)

 
Net (decrease) increase in cash, cash equivalents, and restricted cash

 

(204,083

)

 

13,598

 

 

25,579

 

 

(36,055

)

Cash, cash equivalents, and restricted cash at beginning of period

 

395,977

 

 

152,717

 

 

166,315

 

 

202,370

 

Cash, cash equivalents, and restricted cash at end of period

$

191,894

 

$

166,315

 

$

191,894

 

$

166,315

 

 
 
Supplemental disclosure of cash flow information:
Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:
Cash and cash equivalents

$

191,877

 

$

163,111

 

 

191,877

 

$

163,111

 

Restricted cash included in other current assets

 

17

 

 

3,204

 

 

17

 

 

3,204

 

Total cash, cash equivalents and restricted cash

$

191,894

 

$

166,315

 

$

191,894

 

$

166,315

 

 
PREPARED IN ACCORDANCE WITH GAAP
 
PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
 
(In millions, except per share data and percentages) PKI

Three Months Ended

December 29, 2019 December 30, 2018
 
Adjusted revenue:
Revenue

$

805.5

 

$

756.3

 

Purchase accounting adjustments

 

0.2

 

 

0.2

 

Adjusted revenue

$

805.7

 

$

756.5

 

 
Adjusted gross margin:
Gross margin

$

398.2

 

49.4

%

$

376.3

 

49.7

%

Amortization of intangible assets

 

15.8

 

2.0

%

 

11.4

 

1.5

%

Purchase accounting adjustments

 

8.5

 

1.1

%

 

1.3

 

0.2

%

Adjusted gross margin

$

422.5

 

52.4

%

$

389.0

 

51.4

%

 
Adjusted SG&A:
SG&A

$

210.7

 

26.2

%

$

210.5

 

27.8

%

Amortization of intangible assets

 

(27.4

)

-3.4

%

 

(19.8

)

-2.6

%

Purchase accounting adjustments

 

0.5

 

0.1

%

 

(3.9

)

-0.5

%

Acquisition and divestiture-related expenses

 

(0.7

)

-0.1

%

 

(9.9

)

-1.3

%

Significant litigation matters

 

(0.7

)

-0.1

%

 

(0.3

)

0.0

%

Adjusted SG&A

$

182.5

 

22.7

%

$

176.7

 

23.4

%

 
Adjusted R&D:
R&D

$

47.6

 

5.9

%

$

52.0

 

6.9

%

Amortization of intangible assets

 

 

0.0

%

 

(4.1

)

-0.5

%

Adjusted R&D

$

47.6

 

5.9

%

$

47.9

 

6.3

%

 
Adjusted operating income:
Operating income

$

138.2

 

17.2

%

$

115.7

 

15.3

%

Amortization of intangible assets

 

43.1

 

5.4

%

 

35.3

 

4.7

%

Purchase accounting adjustments

 

8.0

 

1.0

%

 

5.2

 

0.7

%

Acquisition and divestiture-related expenses

 

0.7

 

0.1

%

 

9.9

 

1.3

%

Significant litigation matters

 

0.7

 

0.1

%

 

0.3

 

0.0

%

Restructuring and other, net

 

1.6

 

0.2

%

 

(1.9

)

-0.3

%

Adjusted operating income

$

192.3

 

23.9

%

$

164.3

 

21.7

%

 
PKI

Three Months Ended

December 29, 2019 December 30, 2018
 
Adjusted EPS:
GAAP EPS

$

0.58

 

$

0.64

 

Discontinued operations, net of income taxes

 

(0.00

)

 

(0.00

)

GAAP EPS from continuing operations

 

0.58

 

 

0.64

 

Amortization of intangible assets

 

0.39

 

 

0.32

 

Debt extinguishment costs

 

0.29

 

 

 

Purchase accounting adjustments

 

0.07

 

 

0.05

 

Acquisition and divestiture-related expenses

 

0.01

 

 

0.09

 

Change in fair value of financial securities

 

(0.03

)

 

 

Significant litigation matters

 

0.01

 

 

0.00

 

Disposition of businesses and assets, net

 

 

 

0.00

 

Mark to market on postretirement benefits

 

0.28

 

 

0.19

 

Restructuring and other, net

 

0.01

 

 

(0.02

)

Tax on above items

 

(0.25

)

 

(0.12

)

Impact of tax act

 

 

 

0.03

 

Adjusted EPS

$

1.35

 

$

1.18

 

 
DAS

Three Months Ended

December 29, 2019 December 30, 2018
 
Revenue

$

496.5

 

$

459.9

 

 
Adjusted operating income:
Operating income

$

91.4

 

18.4

%

$

81.2

 

17.7

%

Amortization of intangible assets

 

15.8

 

3.2

%

 

11.6

 

2.5

%

Purchase accounting adjustments

 

8.4

 

1.7

%

 

0.3

 

0.1

%

Acquisition and divestiture-related expenses

 

0.4

 

0.1

%

 

0.9

 

0.2

%

Significant litigation matters

 

0.6

 

0.1

%

 

0.3

 

0.1

%

Restructuring and other, net

 

(0.5

)

-0.1

%

 

(1.6

)

-0.3

%

Adjusted operating income

$

116.0

 

23.4

%

$

92.7

 

20.2

%

 
Diagnostics

Three Months Ended

December 29, 2019 December 30, 2018
 
Adjusted revenue:
Revenue

$

309.0

 

$

296.5

 

Purchase accounting adjustments

 

0.2

 

 

0.2

 

Adjusted revenue

$

309.2

 

$

296.6

 

 
Adjusted operating income:
Operating income

$

61.1

 

19.8

%

$

48.6

 

16.4

%

Amortization of intangible assets

 

27.3

 

8.8

%

 

23.7

 

8.0

%

Purchase accounting adjustments

 

(0.4

)

-0.1

%

 

4.9

 

1.6

%

Acquisition and divestiture-related expenses

 

0.3

 

0.1

%

 

9.0

 

3.0

%

Significant litigation matters

 

0.1

 

0.0

%

 

 

0.0

%

Restructuring and other, net

 

2.0

 

0.7

%

 

(0.3

)

-0.1

%

Adjusted operating income

$

90.6

 

29.3

%

$

85.8

 

28.9

%

 
 
(1) amounts may not sum due to rounding
 

Contacts

Investor Relations:

PerkinElmer, Inc.

Bryan Kipp (781) 663-5583

bryan.kipp@perkinelmer.com

Media Contact:

PerkinElmer, Inc.

Fara Goldberg (781) 663-5699

fara.goldberg@perkinelmer.com

Read full story here

error: Content is protected !!