PerkinElmer Announces Financial Results for the Fourth Quarter and Full Year of 2020
- 4Q Revenue of $1.355 billion; 68% reported growth; 65% organic growth
- 4Q GAAP EPS from continuing operations of $3.38; Adjusted EPS of $3.96
- Initiates First Quarter and Full Year 2021 Guidance
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 January 3, 2021.
Fourth Quarter 2020
The Company reported GAAP earnings per share from continuing operations of $3.38, as compared to GAAP earnings per share from continuing operations of $0.58 in the fourth quarter of 2019. GAAP revenue for the quarter was $1.355 billion, as compared to $805 million in the fourth quarter of 2019. GAAP operating income from continuing operations for the quarter was $510 million, as compared to $138 million for the same period a year ago. GAAP operating profit margin was 37.7% as a percentage of revenue, as compared to 17.2% in the fourth quarter of 2019.
Adjusted earnings per share from continuing operations for the quarter was $3.96, as compared to $1.35 in the fourth quarter of 2019. Adjusted revenue for the quarter was $1.355 billion, as compared to $806 million in the fourth quarter of 2019. Adjusted operating income from continuing operations for the quarter was $571 million, as compared to $192 million for the same period a year ago. Adjusted operating profit margin was 42.2% as a percentage of adjusted revenue, as compared to 23.9% in the fourth quarter of 2019.
Full Year 2020
The Company reported GAAP earnings per share from continuing operations of $6.50, as compared to GAAP earnings per share from continuing operations of $2.04 in 2019. GAAP revenue for the year was $3.783 billion, as compared to $2.884 billion in 2019. GAAP operating income from continuing operations for the year was $979 million, as compared to $362 million in 2019. GAAP operating profit margin was 25.9% as a percentage of revenue, as compared to 12.6% in 2019.
Adjusted earnings per share from continuing operations for the year was $8.30, as compared to $4.10 in 2019. Adjusted revenue for the year was $3.784 billion, as compared to $2.884 billion in 2019. Adjusted operating income from continuing operations for the year was $1.203 billion, as compared to $596 million in 2019. Adjusted operating profit margin was 31.8% as a percentage of adjusted revenue, as compared to 20.7% in 2019.
Adjustments for the Company’s non-GAAP financial measures have been noted in the attached reconciliations.
“While the fourth quarter and full year financial results are certainly impressive, we have many accomplishments beyond the headline financial numbers to be proud of,” said Prahlad Singh, president and chief executive officer of PerkinElmer. “The team’s response to the pandemic, and their resolute focus throughout 2020 to be a part of the solution, was humbling and inspiring to watch. As we look ahead, I could not be more excited about the future for PerkinElmer.”
Financial Overview by Reporting Segment for the Fourth Quarter and Full Year 2020
Discovery & Analytical Solutions
- Fourth quarter 2020 revenue was $503 million, as compared to $496 million for the fourth quarter of 2019. Reported revenue increased 1% and organic revenue decreased 2% as compared to the fourth quarter of 2019. Full year 2020 revenue was $1.716 billion, as compared to $1.746 billion in 2019. Full year reported revenue decreased 2% and organic revenue decreased 4%.
- Fourth quarter 2020 operating income from continuing operations was $73 million, as compared to $91 million for the comparable prior period. Full year 2020 operating income was $183 million, as compared to $238 million in 2019.
- Fourth quarter 2020 adjusted operating income was $92 million, as compared to $116 million for the fourth quarter of 2019. Full year 2020 adjusted operating income was $267 million, as compared to $338 million in 2019.
Diagnostics
- Fourth quarter 2020 revenue was $852 million, as compared to $309 million for the fourth quarter of 2019. Reported revenue increased 176% and organic revenue increased 172% as compared to the fourth quarter of 2019. Full year 2020 revenue was $2.067 billion, as compared to $1.138 billion in 2019. Full year reported revenue increased 82% and organic revenue increased 81%.
- Fourth quarter 2020 operating income from continuing operations was $460 million, as compared to $61 million for the comparable prior period. Full year 2020 operating income was $874 million, as compared to $189 million in 2019.
- Fourth quarter 2020 adjusted operating income was $502 million, as compared to $91 million for the fourth quarter of 2019. Full year 2020 adjusted operating income was $1.010 billion, as compared to $316 million in 2019.
Initiates Financial Guidance: First Quarter and Full Year 2021 Guidance
For the first quarter of 2021, the Company forecasts GAAP revenue of approximately $1.19 billion. GAAP earnings per share from continuing operations of at least $2.52 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of at least $3.00.
For the full year of 2021, the Company forecasts GAAP revenue of at least $4.08 billion. GAAP earnings per share from continuing operations of at least $6.73 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of at least $8.50.
Conference Call Information
The Company will discuss its fourth quarter and full year 2020 results and its outlook for business trends in a conference call on February 2, 2021 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 2779705.
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) the effect of the COVID-19 pandemic on our sales and operations; (3) fluctuations in the global economic and political environments; (4) our failure to introduce new products in a timely manner; (5) 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; (6) our failure to adequately protect our intellectual property; (7) the loss of any of our licenses or licensed rights; (8) our ability to compete effectively; (9) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (10) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (11) disruptions in the supply of raw materials and supplies; (12) the manufacture and sale of products exposing us to product liability claims; (13) our failure to maintain compliance with applicable government regulations; (14) regulatory changes; (15) our failure to comply with healthcare industry regulations; (16) economic, political and other risks associated with foreign operations; (17) our ability to retain key personnel; (18) significant disruption in our information technology systems, or cybercrime; (19) our ability to obtain future financing; (20) restrictions in our credit agreements; (21) discontinuation or replacement of LIBOR; (22) the United Kingdom’s withdrawal from the European Union; (23) our ability to realize the full value of our intangible assets; (24) significant fluctuations in our stock price; (25) reduction or elimination of dividends on our common stock; and (26) 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 $3.8 billion in 2020, has about 14,000 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) |
January 3, 2021 |
December 29, 2019 |
January 3, 2021 |
December 29, 2019 |
||||||||||||||
| Revenue |
$ |
1,354,606 |
|
$ |
805,496 |
|
$ |
3,782,745 |
|
$ |
2,883,673 |
|
||||||
| Cost of revenue |
|
527,541 |
|
|
407,315 |
|
|
1,672,868 |
|
|
1,487,618 |
|
||||||
| Selling, general and administrative expenses |
|
263,050 |
|
|
210,737 |
|
|
917,894 |
|
|
815,318 |
|
||||||
| Research and development expenses |
|
56,823 |
|
|
47,636 |
|
|
205,389 |
|
|
189,336 |
|
||||||
| Restructuring and other, net |
|
(3,062 |
) |
|
1,560 |
|
|
8,013 |
|
|
29,428 |
|
||||||
| Operating income from continuing operations |
|
510,254 |
|
|
138,248 |
|
|
978,581 |
|
|
361,973 |
|
||||||
| Interest income |
|
(348 |
) |
|
(570 |
) |
|
(1,010 |
) |
|
(1,495 |
) |
||||||
| Interest expense |
|
12,404 |
|
|
14,421 |
|
|
49,712 |
|
|
63,627 |
|
||||||
| Loss on disposition of businesses and assets, net |
|
– |
|
|
– |
|
|
– |
|
|
2,469 |
|
||||||
| Debt extinguishment costs |
|
– |
|
|
32,070 |
|
|
– |
|
|
32,541 |
|
||||||
| Other expense (income), net |
|
25,107 |
|
|
27,031 |
|
|
23,515 |
|
|
27,689 |
|
||||||
| Income from continuing operations, before income taxes |
|
473,091 |
|
|
65,296 |
|
|
906,364 |
|
|
237,142 |
|
||||||
| Provision for income taxes |
|
92,657 |
|
|
747 |
|
|
178,266 |
|
|
9,389 |
|
||||||
| Income from continuing operations |
|
380,434 |
|
|
64,549 |
|
|
728,098 |
|
|
227,753 |
|
||||||
| Loss on disposition of discontinued operations, before income taxes |
|
(76 |
) |
|
– |
|
|
(76 |
) |
|
– |
|
||||||
| Provision for income taxes on discontinued operations and dispositions |
|
(3 |
) |
|
48 |
|
|
135 |
|
|
195 |
|
||||||
| Loss from discontinued operations and dispositions |
|
(73 |
) |
|
(48 |
) |
|
(211 |
) |
|
(195 |
) |
||||||
| Net income |
$ |
380,361 |
|
$ |
64,501 |
|
$ |
727,887 |
|
$ |
227,558 |
|
||||||
| Diluted earnings per share: | ||||||||||||||||||
| Income from continuing operations |
$ |
3.38 |
|
$ |
0.58 |
|
$ |
6.50 |
|
$ |
2.04 |
|
||||||
| Loss from discontinued operations and dispositions |
|
(0.00 |
) |
|
(0.00 |
) |
|
(0.00 |
) |
|
(0.00 |
) |
||||||
| Net income |
$ |
3.38 |
|
$ |
0.58 |
|
$ |
6.49 |
|
$ |
2.04 |
|
||||||
| Weighted average diluted shares of common stock outstanding |
|
112,537 |
|
|
111,625 |
|
|
112,085 |
|
|
111,501 |
|
||||||
| ABOVE PREPARED IN ACCORDANCE WITH GAAP | ||||||||||||||||||
| Additional Supplemental Information (1): | ||||||||||||||||||
| (per share, continuing operations) | ||||||||||||||||||
| GAAP EPS from continuing operations |
$ |
3.38 |
|
$ |
0.58 |
|
$ |
6.50 |
|
$ |
2.04 |
|
||||||
| Amortization of intangible assets |
|
0.44 |
|
|
0.39 |
|
|
1.72 |
|
|
1.47 |
|
||||||
| Debt extinguishment costs |
|
– |
|
|
0.29 |
|
|
– |
|
|
0.29 |
|
||||||
| Purchase accounting adjustments |
|
0.01 |
|
|
0.07 |
|
|
(0.04 |
) |
|
0.24 |
|
||||||
| Acquisition and divestiture-related costs |
|
0.02 |
|
|
0.01 |
|
|
0.08 |
|
|
0.06 |
|
||||||
| Change in fair value of financial securities |
|
– |
|
|
(0.03 |
) |
|
(0.00 |
) |
|
(0.03 |
) |
||||||
| Acceleration of executive compensation |
|
– |
|
|
– |
|
|
– |
|
|
0.07 |
|
||||||
| Significant litigation matters and settlements |
|
0.03 |
|
|
0.01 |
|
|
0.06 |
|
|
0.02 |
|
||||||
| Significant environmental matters |
|
– |
|
|
– |
|
|
0.05 |
|
|
– |
|
||||||
| Disposition of businesses and assets, net |
|
– |
|
|
– |
|
|
– |
|
|
0.02 |
|
||||||
| Mark to market on postretirement benefits |
|
0.23 |
|
|
0.28 |
|
|
0.23 |
|
|
0.28 |
|
||||||
| Restructuring and other, net |
|
(0.03 |
) |
|
0.01 |
|
|
0.07 |
|
|
0.26 |
|
||||||
| Asset impairment |
|
0.07 |
|
|
– |
|
|
0.07 |
|
|
– |
|
||||||
| Tax on above items |
|
(0.19 |
) |
|
(0.25 |
) |
|
(0.57 |
) |
|
(0.65 |
) |
||||||
| Impact of tax act |
|
– |
|
|
– |
|
|
– |
|
|
0.02 |
|
||||||
| Significant tax items |
|
– |
|
|
– |
|
|
0.14 |
|
|
– |
|
||||||
| Adjusted EPS |
$ |
3.96 |
|
$ |
1.35 |
|
$ |
8.30 |
|
$ |
4.10 |
|
||||||
| (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 3, 2021 |
December 29, 2019 |
January 3, 2021 |
December 29, 2019 |
||||||||||||||
| DAS | Reported revenue | $ |
502,783 |
|
$ |
496,457 |
|
$ |
1,715,803 |
|
$ |
1,746,161 |
|
|||||
| Purchase accounting adjustments |
297 |
|
– |
|
297 |
|
– |
|
||||||||||
| Adjusted Revenue |
503,080 |
|
496,457 |
|
1,716,100 |
|
1,746,161 |
|
||||||||||
| Reported operating income from continued operations |
72,839 |
|
91,368 |
|
183,471 |
|
238,331 |
|
||||||||||
| OP% |
14.5 |
% |
18.4 |
% |
10.7 |
% |
13.6 |
% |
||||||||||
| Amortization of intangible assets |
17,479 |
|
15,793 |
|
76,302 |
|
52,898 |
|
||||||||||
| Purchase accounting adjustments |
581 |
|
8,377 |
|
(10,753 |
) |
20,857 |
|
||||||||||
| Acquisition and divestiture-related costs |
1,017 |
|
375 |
|
8,062 |
|
1,778 |
|
||||||||||
| Significant litigation matters and settlements |
3,492 |
|
569 |
|
5,891 |
|
2,189 |
|
||||||||||
| Restructuring and other, net |
(2,970 |
) |
(469 |
) |
3,763 |
|
21,958 |
|
||||||||||
| Adjusted operating income |
92,438 |
|
116,013 |
|
266,736 |
|
338,011 |
|
||||||||||
| Adjusted OP% |
18.4 |
% |
23.4 |
% |
15.5 |
% |
19.4 |
% |
||||||||||
| Diagnostics | Reported revenue |
851,823 |
|
309,039 |
|
2,066,942 |
|
1,137,512 |
|
|||||||||
| Purchase accounting adjustments |
198 |
|
194 |
|
786 |
|
770 |
|
||||||||||
| Adjusted Revenue |
852,021 |
|
309,233 |
|
2,067,728 |
|
1,138,282 |
|
||||||||||
| Reported operating income from continued operations |
460,496 |
|
61,146 |
|
874,206 |
|
189,330 |
|
||||||||||
| OP% |
54.1 |
% |
19.8 |
% |
42.3 |
% |
16.6 |
% |
||||||||||
| Amortization of intangible assets |
32,207 |
|
27,335 |
|
116,250 |
|
111,429 |
|
||||||||||
| Purchase accounting adjustments |
930 |
|
(369 |
) |
5,802 |
|
5,412 |
|
||||||||||
| Acquisition and divestiture-related costs |
348 |
|
332 |
|
671 |
|
2,210 |
|
||||||||||
| Significant litigation matters and settlements |
– |
|
106 |
|
1,245 |
|
106 |
|
||||||||||
| Asset impairment |
7,937 |
|
– |
|
7,937 |
|
– |
|
||||||||||
| Restructuring and other, net |
(92 |
) |
2,029 |
|
4,250 |
|
7,470 |
|
||||||||||
| Adjusted operating income |
501,826 |
|
90,579 |
|
1,010,361 |
|
315,957 |
|
||||||||||
| Adjusted OP% |
58.9 |
% |
29.3 |
% |
48.9 |
% |
27.8 |
% |
||||||||||
| Corporate | Reported operating loss |
(23,081 |
) |
(14,266 |
) |
(79,096 |
) |
(65,688 |
) |
|||||||||
| Significant environmental matters |
– |
|
– |
|
5,242 |
|
– |
|
||||||||||
| Acceleration of executive compensation |
– |
|
– |
|
– |
|
7,721 |
|
||||||||||
| Adjusted operating loss |
(23,081 |
) |
(14,266 |
) |
(73,854 |
) |
(57,967 |
) |
||||||||||
| Continuing Operations | Reported revenue | $ |
1,354,606 |
|
$ |
805,496 |
|
$ |
3,782,745 |
|
$ |
2,883,673 |
|
|||||
| Purchase accounting adjustments |
495 |
|
194 |
|
1,083 |
|
770 |
|
||||||||||
| Adjusted Revenue |
1,355,101 |
|
805,690 |
|
3,783,828 |
|
2,884,443 |
|
||||||||||
| Reported operating income from continued operations |
510,254 |
|
138,248 |
|
978,581 |
|
361,973 |
|
||||||||||
| OP% |
37.7 |
% |
17.2 |
% |
25.9 |
% |
12.6 |
% |
||||||||||
| Amortization of intangible assets |
49,686 |
|
43,128 |
|
192,552 |
|
164,327 |
|
||||||||||
| Purchase accounting adjustments |
1,511 |
|
8,008 |
|
(4,951 |
) |
26,269 |
|
||||||||||
| Acquisition and divestiture-related costs |
1,365 |
|
707 |
|
8,733 |
|
3,988 |
|
||||||||||
| Acceleration of executive compensation |
– |
|
– |
|
– |
|
7,721 |
|
||||||||||
| Significant litigation matters and settlements |
3,492 |
|
675 |
|
7,136 |
|
2,295 |
|
||||||||||
| Significant environmental matters |
– |
|
– |
|
5,242 |
|
– |
|
||||||||||
| Asset impairment |
7,937 |
|
– |
|
7,937 |
|
– |
|
||||||||||
| Restructuring and other, net |
(3,062 |
) |
1,560 |
|
8,013 |
|
29,428 |
|
||||||||||
| Adjusted operating income | $ |
571,183 |
|
$ |
192,326 |
|
$ |
1,203,243 |
|
$ |
596,001 |
|
||||||
| Adjusted OP% |
42.2 |
% |
23.9 |
% |
31.8 |
% |
20.7 |
% |
||||||||||
| REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP | ||||||||||||||||||
| PerkinElmer, Inc. and Subsidiaries | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) |
January 3, 2021 |
December 29, 2019 |
||||||
| Current assets: | ||||||||
| Cash and cash equivalents |
$ |
402,036 |
|
$ |
191,877 |
|
||
| Accounts receivable, net |
|
1,205,080 |
|
|
725,184 |
|
||
| Inventories, net |
|
514,567 |
|
|
356,937 |
|
||
| Other current assets |
|
167,208 |
|
|
100,381 |
|
||
| Total current assets |
|
2,288,891 |
|
|
1,374,379 |
|
||
| Property, plant and equipment: | ||||||||
| At cost |
|
818,197 |
|
|
701,580 |
|
||
| Accumulated depreciation |
|
(449,893 |
) |
|
(383,357 |
) |
||
| Property, plant and equipment, net |
|
368,304 |
|
|
318,223 |
|
||
| Operating lease right-of-use assets |
|
207,236 |
|
|
167,276 |
|
||
| Intangible assets, net |
|
1,365,693 |
|
|
1,283,286 |
|
||
| Goodwill |
|
3,447,114 |
|
|
3,111,227 |
|
||
| Other assets, net |
|
333,048 |
|
|
284,173 |
|
||
| Total assets |
$ |
8,010,286 |
|
$ |
6,538,564 |
|
||
| Current liabilities: | ||||||||
| Current portion of long-term debt |
$ |
380,948 |
|
$ |
9,974 |
|
||
| Accounts payable |
|
327,325 |
|
|
235,855 |
|
||
| Short-term accrued restructuring and other |
|
4,716 |
|
|
11,559 |
|
||
| Accrued expenses and other current liabilities |
|
986,998 |
|
|
503,332 |
|
||
| Current liabilities of discontinued operations |
|
2,173 |
|
|
2,112 |
|
||
| Total current liabilities |
|
1,702,160 |
|
|
762,832 |
|
||
| Long-term debt |
|
1,609,701 |
|
|
2,064,041 |
|
||
| Long-term liabilities |
|
774,531 |
|
|
751,468 |
|
||
| Operating lease liabilities |
|
188,402 |
|
|
146,399 |
|
||
| Total liabilities |
|
4,274,794 |
|
|
3,724,740 |
|
||
| Total stockholders’ equity |
|
3,735,492 |
|
|
2,813,824 |
|
||
| Total liabilities and stockholders’ equity |
$ |
8,010,286 |
|
$ |
6,538,564 |
|
||
| PREPARED IN ACCORDANCE WITH GAAP | ||||||||
| PerkinElmer, Inc. and Subsidiaries | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
|
January 3, 2021 |
December 29, 2019 |
January 3, 2021 |
December 29, 2019 |
|||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||
| Operating activities: | ||||||||||||||||
| Net income |
$ |
380,361 |
|
$ |
64,501 |
|
$ |
727,887 |
|
$ |
227,558 |
|
||||
| Loss from discontinued operations and dispositions, net of income taxes |
|
73 |
|
|
48 |
|
|
211 |
|
|
195 |
|
||||
| Income from continuing operations |
|
380,434 |
|
|
64,549 |
|
|
728,098 |
|
|
227,753 |
|
||||
| Adjustments to reconcile income from continuing operations to net cash provided by continuing operations: | ||||||||||||||||
| Stock-based compensation |
|
9,355 |
|
|
6,409 |
|
|
29,126 |
|
|
31,514 |
|
||||
| Restructuring and other, net |
|
(3,062 |
) |
|
1,560 |
|
|
8,013 |
|
|
29,428 |
|
||||
| Depreciation and amortization |
|
63,986 |
|
|
56,908 |
|
|
246,507 |
|
|
214,025 |
|
||||
| Pension and other postretirement expenses |
|
18,012 |
|
|
26,107 |
|
|
18,012 |
|
|
26,107 |
|
||||
| Change in fair value of contingent consideration |
|
(20 |
) |
|
(518 |
) |
|
(8,827 |
) |
|
3,881 |
|
||||
| Amortization of deferred debt financing costs and accretion of discounts |
|
833 |
|
|
1,068 |
|
|
3,391 |
|
|
3,846 |
|
||||
| Loss on disposition of businesses and assets, net |
|
– |
|
|
– |
|
|
886 |
|
|
2,469 |
|
||||
| Change in fair value of financial securities |
|
(35 |
) |
|
(3,249 |
) |
|
(35 |
) |
|
(3,249 |
) |
||||
| Debt extinguishment costs |
|
– |
|
|
32,070 |
|
|
– |
|
|
32,541 |
|
||||
| Amortization of acquired inventory revaluation |
|
1,036 |
|
|
8,332 |
|
|
2,793 |
|
|
21,590 |
|
||||
| Asset impairment |
|
7,937 |
|
|
– |
|
|
7,937 |
|
|
– |
|
||||
| Deferred taxes |
|
(32,437 |
) |
|
(61,353 |
) |
|
(32,437 |
) |
|
(61,353 |
) |
||||
| Contingencies and non-cash tax matters |
|
4,516 |
|
|
(424 |
) |
|
4,516 |
|
|
(424 |
) |
||||
| Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired: | ||||||||||||||||
| Accounts receivable, net |
|
(356,171 |
) |
|
(78,498 |
) |
|
(423,866 |
) |
|
(100,630 |
) |
||||
| Inventories |
|
(1,579 |
) |
|
38,761 |
|
|
(122,513 |
) |
|
(9,607 |
) |
||||
| Accounts payable |
|
46,363 |
|
|
41,394 |
|
|
62,753 |
|
|
7,351 |
|
||||
| Accrued expenses and other |
|
342,931 |
|
|
82,094 |
|
|
367,823 |
|
|
(61,773 |
) |
||||
| Net cash provided by operating activities of continuing operations |
|
482,099 |
|
|
215,210 |
|
|
892,177 |
|
|
363,469 |
|
||||
| Net cash used in operating activities of discontinued operations |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Net cash provided by operating activities |
|
482,099 |
|
|
215,210 |
|
|
892,177 |
|
|
363,469 |
|
||||
| Investing activities: | ||||||||||||||||
| Capital expenditures |
|
(20,115 |
) |
|
(23,249 |
) |
|
(77,506 |
) |
|
(76,331 |
) |
||||
| Purchases of investments |
|
(10,500 |
) |
|
(1,000 |
) |
|
(20,059 |
) |
|
(6,387 |
) |
||||
| Purchases of licenses |
|
– |
|
|
– |
|
|
– |
|
|
(5,000 |
) |
||||
| Proceeds from surrender of life insurance policies |
|
151 |
|
|
– |
|
|
282 |
|
|
– |
|
||||
| Proceeds from disposition of businesses and assets |
|
1,857 |
|
|
– |
|
|
4,280 |
|
|
550 |
|
||||
| Payment of acquisitions, net of cash, cash equivalents and restricted cash acquired |
|
(407,794 |
) |
|
(147,785 |
) |
|
(411,495 |
) |
|
(400,405 |
) |
||||
| Net cash used in investing activities of continuing operations |
|
(436,401 |
) |
|
(172,034 |
) |
|
(504,498 |
) |
|
(487,573 |
) |
||||
| Net cash provided by investing activities of discontinued operations |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Net cash used in investing activities |
|
(436,401 |
) |
|
(172,034 |
) |
|
(504,498 |
) |
|
(487,573 |
) |
||||
| Financing Activities: | ||||||||||||||||
| Payments on borrowings |
|
(382,464 |
) |
|
(273,000 |
) |
|
(897,674 |
) |
|
(1,692,489 |
) |
||||
| Proceeds from borrowings |
|
457,698 |
|
|
565,000 |
|
|
714,698 |
|
|
1,599,416 |
|
||||
| Payments of senior debt |
|
– |
|
|
(530,276 |
) |
|
– |
|
|
(530,276 |
) |
||||
| Proceeds from sale of senior debt |
|
– |
|
|
– |
|
|
– |
|
|
847,195 |
|
||||
| Payments of debt financing costs |
|
– |
|
|
(1,854 |
) |
|
– |
|
|
(9,879 |
) |
||||
| Settlement of cash flow hedges |
|
(2,465 |
) |
|
307 |
|
|
(4,554 |
) |
|
(1,280 |
) |
||||
| Net payments on other credit facilities |
|
3,630 |
|
|
(3,911 |
) |
|
(4,494 |
) |
|
(14,975 |
) |
||||
| Payments for acquisition-related contingent consideration |
|
(5,163 |
) |
|
(1,742 |
) |
|
(10,363 |
) |
|
(29,942 |
) |
||||
| Proceeds from issuance of common stock under stock plans |
|
10,143 |
|
|
2,169 |
|
|
37,671 |
|
|
19,732 |
|
||||
| Purchases of common stock |
|
(116 |
) |
|
(112 |
) |
|
(6,944 |
) |
|
(6,313 |
) |
||||
| Dividends paid |
|
(7,831 |
) |
|
(7,777 |
) |
|
(31,212 |
) |
|
(31,059 |
) |
||||
| Net cash provided by (used in) financing activities of continuing operations |
|
73,432 |
|
|
(251,196 |
) |
|
(202,872 |
) |
|
150,130 |
|
||||
| Net cash used in financing activities of discontinued operations |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Net cash provided by (used in) financing activities |
|
73,432 |
|
|
(251,196 |
) |
|
(202,872 |
) |
|
150,130 |
|
||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
25,081 |
|
|
3,937 |
|
|
25,913 |
|
|
(447 |
) |
||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
144,211 |
|
|
(204,083 |
) |
|
210,720 |
|
|
25,579 |
|
||||
| Cash, cash equivalents, and restricted cash at beginning of period |
|
258,403 |
|
|
395,977 |
|
|
191,894 |
|
|
166,315 |
|
||||
| Cash, cash equivalents, and restricted cash at end of period |
$ |
402,614 |
|
$ |
191,894 |
|
$ |
402,614 |
|
$ |
191,894 |
|
||||
| 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 |
$ |
402,036 |
|
$ |
191,877 |
|
$ |
402,036 |
|
$ |
191,877 |
|
||||
| Restricted cash included in other current assets |
|
578 |
|
|
17 |
|
|
578 |
|
|
17 |
|
||||
| Total cash, cash equivalents and restricted cash |
$ |
402,614 |
|
$ |
191,894 |
|
$ |
402,614 |
|
$ |
191,894 |
|
||||
| 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 |
||||||||||||
|
January 3, 2021 |
December 29, 2019 |
|||||||||||
| Adjusted revenue: | ||||||||||||
| Revenue |
$ |
1,354.6 |
|
$ |
805.5 |
|
||||||
| Purchase accounting adjustments |
|
0.5 |
|
|
0.2 |
|
||||||
| Adjusted revenue |
$ |
1,355.1 |
|
$ |
805.7 |
|
||||||
| Adjusted gross margin: | ||||||||||||
| Gross margin |
$ |
827.1 |
|
61.1 |
% |
$ |
398.2 |
|
49.4 |
% |
||
| Amortization of intangible assets |
|
16.5 |
|
1.2 |
% |
|
15.8 |
|
2.0 |
% |
||
| Purchase accounting adjustments |
|
1.5 |
|
0.1 |
% |
|
8.5 |
|
1.1 |
% |
||
| Asset impairment |
|
7.9 |
|
0.6 |
% |
|
– |
|
0.0 |
% |
||
| Adjusted gross margin |
$ |
853.0 |
|
62.9 |
% |
$ |
422.5 |
|
52.4 |
% |
||
| Adjusted SG&A: | ||||||||||||
| SG&A |
$ |
263.1 |
|
19.4 |
% |
$ |
210.7 |
|
26.2 |
% |
||
| Amortization of intangible assets |
|
(33.2 |
) |
-2.4 |
% |
|
(27.4 |
) |
-3.4 |
% |
||
| Purchase accounting adjustments |
|
0.0 |
|
0.0 |
% |
|
0.5 |
|
0.1 |
% |
||
| Acquisition and divestiture-related costs |
|
(1.4 |
) |
-0.1 |
% |
|
(0.7 |
) |
-0.1 |
% |
||
| Significant litigation matters and settlements |
|
(3.5 |
) |
-0.3 |
% |
|
(0.7 |
) |
-0.1 |
% |
||
| Adjusted SG&A |
$ |
225.0 |
|
16.6 |
% |
$ |
182.5 |
|
22.7 |
% |
||
| Adjusted R&D: | ||||||||||||
| R&D |
$ |
56.8 |
|
4.2 |
% |
$ |
47.6 |
|
5.9 |
% |
||
| Adjusted R&D |
$ |
56.8 |
|
4.2 |
% |
$ |
47.6 |
|
5.9 |
% |
||
| Adjusted operating income: | ||||||||||||
| Operating income |
$ |
510.3 |
|
37.7 |
% |
$ |
138.2 |
|
17.2 |
% |
||
| Amortization of intangible assets |
|
49.7 |
|
3.7 |
% |
|
43.1 |
|
5.4 |
% |
||
| Purchase accounting adjustments |
|
1.5 |
|
0.1 |
% |
|
8.0 |
|
1.0 |
% |
||
| Acquisition and divestiture-related costs |
|
1.4 |
|
0.1 |
% |
|
0.7 |
|
0.1 |
% |
||
| Significant litigation matters and settlements |
|
3.5 |
|
0.3 |
% |
|
0.7 |
|
0.1 |
% |
||
| Asset impairment |
|
7.9 |
|
0.6 |
% |
|
– |
|
0.0 |
% |
||
| Restructuring and other, net |
|
(3.1 |
) |
-0.2 |
% |
|
1.6 |
|
0.2 |
% |
||
| Adjusted operating income |
$ |
571.2 |
|
42.2 |
% |
$ |
192.3 |
|
23.9 |
% |
||
| PKI | ||||||||||||
|
Three Months Ended |
||||||||||||
|
January 3, 2021 |
December 29, 2019 |
|||||||||||
| Adjusted EPS: | ||||||||||||
| GAAP EPS |
$ |
3.38 |
|
$ |
0.58 |
|
||||||
| Discontinued operations, net of income taxes |
|
(0.00 |
) |
|
(0.00 |
) |
||||||
| GAAP EPS from continuing operations |
|
3.38 |
|
|
0.58 |
|
||||||
| Amortization of intangible assets |
|
0.44 |
|
|
0.39 |
|
||||||
| Debt extinguishment costs |
|
– |
|
|
0.29 |
|
||||||
| Purchase accounting adjustments |
|
0.01 |
|
|
0.07 |
|
||||||
| Acquisition and divestiture-related costs |
|
0.02 |
|
|
0.01 |
|
||||||
| Change in fair value of financial securities |
|
– |
|
|
(0.03 |
) |
||||||
| Significant litigation matters and settlements |
|
0.03 |
|
|
0.01 |
|
||||||
| Mark to market on postretirement benefits |
|
0.23 |
|
|
0.28 |
|
||||||
| Asset impairment |
|
0.07 |
|
|
– |
|
||||||
| Restructuring and other, net |
|
(0.03 |
) |
|
0.01 |
|
||||||
| Tax on above items |
|
(0.19 |
) |
|
(0.25 |
) |
||||||
| Adjusted EPS |
$ |
3.96 |
|
$ |
1.35 |
|
||||||
| DAS | ||||||||||||
|
Three Months Ended |
||||||||||||
|
January 3, 2021 |
December 29, 2019 |
|||||||||||
| Adjusted revenue: | ||||||||||||
| Revenue |
$ |
502.8 |
|
$ |
496.5 |
|
||||||
| Purchase accounting adjustments |
|
0.3 |
|
|
– |
|
||||||
| Adjusted revenue |
$ |
503.1 |
|
$ |
496.5 |
|
||||||
| Adjusted operating income: | ||||||||||||
| Operating income |
$ |
72.8 |
|
14.5 |
% |
$ |
91.4 |
|
18.4 |
% |
||
| Amortization of intangible assets |
|
17.5 |
|
3.5 |
% |
|
15.8 |
|
3.2 |
% |
||
| Purchase accounting adjustments |
|
0.6 |
|
0.1 |
% |
|
8.4 |
|
1.7 |
% |
||
| Acquisition and divestiture-related costs |
|
1.0 |
|
0.2 |
% |
|
0.4 |
|
0.1 |
% |
||
| Significant litigation matters and settlements |
|
3.5 |
|
0.7 |
% |
|
0.6 |
|
0.1 |
% |
||
| Restructuring and other, net |
|
(3.0 |
) |
-0.6 |
% |
|
(0.5 |
) |
-0.1 |
% |
||
| Adjusted operating income |
$ |
92.4 |
|
18.4 |
% |
$ |
116.0 |
|
23.4 |
% |
||
| Diagnostics | ||||||||||||
|
Three Months Ended |
||||||||||||
|
January 3, 2021 |
December 29, 2019 |
|||||||||||
| Adjusted revenue: | ||||||||||||
| Revenue |
$ |
851.8 |
|
$ |
309.0 |
|
||||||
| Purchase accounting adjustments |
|
0.2 |
|
|
0.2 |
|
||||||
| Adjusted revenue |
$ |
852.0 |
|
$ |
309.2 |
|
||||||
| Adjusted operating income: | ||||||||||||
| Operating income |
$ |
460.5 |
|
54.1 |
% |
$ |
61.1 |
|
19.8 |
% |
||
| Amortization of intangible assets |
|
32.2 |
|
3.8 |
% |
|
27.3 |
|
8.8 |
% |
||
| Purchase accounting adjustments |
|
0.9 |
|
0.1 |
% |
|
(0.4 |
) |
-0.1 |
% |
||
| Acquisition and divestiture-related costs |
|
0.3 |
|
0.0 |
% |
|
0.3 |
|
0.1 |
% |
||
| Significant litigation matters and settlements |
|
– |
|
0.0 |
% |
|
0.1 |
|
0.0 |
% |
||
| Asset impairment |
|
7.9 |
|
0.9 |
% |
|
– |
|
0.0 |
% |
||
| Restructuring and other, net |
|
(0.1 |
) |
0.0 |
% |
|
2.0 |
|
0.7 |
% |
||
| Adjusted operating income |
$ |
501.8 |
|
58.9 |
% |
$ |
90.6 |
|
29.3 |
% |
||
| (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