-- Fiscal third quarter revenue from continuing operations increased $32
million, or 6%, to $538 million
-- Fiscal third quarter adjusted income from continuing operations
increased 49% to $70 million, or $0.76 per diluted share
-- Fiscal third quarter GAAP income from continuing operations increased
29% to $60 million, or $0.65 per diluted share
-- Strong third quarter cash flow from operations of $57 million
-- Management raises full-year fiscal 2010 adjusted diluted earnings from
continuing operations to $2.75-$2.80 per share from previously
announced $2.55-$2.65 per share
Perrigo Company (NASDAQ: PRGO)(TASE: PRGO) today announced results for its third quarter and nine months ended March 27, 2010.
Perrigo's Chairman and CEO Joseph C. Papa commented, "We are excited to announce another outstanding quarter. Consumers continue to realize the value of store brands; however, that is just one of numerous drivers that contributed to our strong performance. All of our segments executed above expectations. This quarter, both our adjusted consolidated gross and operating margins reached all-time highs of 34.6% and 18.2%, respectively. In addition to this strong day-to-day performance, our teams have been hard at work focusing on the future. During the quarter we announced two acquisitions, won a summary judgment in a patent litigation and launched two new products. Those achievements are just a few examples of the exciting opportunities we are working on in adjacent categories, product pipeline extensions and geographical expansions here at Perrigo."
The Company's reported results are summarized in the attached Condensed Consolidated Statements of Income, Balance Sheets and Cash Flows. As part of management's continued strategic review of the Company's portfolio of businesses, management committed to a plan to sell, and subsequently sold on February 26, 2010, the Company's Israel Consumer Products business. The results of this business are reflected in the condensed consolidated financial statements as discontinued operations for all periods presented.
Perrigo Company
(from continuing operations, in thousands, except per share amounts)
(see the attached Table II for reconciliation to GAAP numbers)
Third Quarter Nine Months
------------- -----------
2010 2009 2010 2009
---- ---- ---- ----
Net Sales $538,306 $505,902 $1,649,475 $1,498,653
Reported Income $60,138 $46,469 $174,399 $108,818
Adjusted Income $70,218 $46,999 $196,453 $127,710
Reported
Diluted EPS $0.65 $0.50 $1.88 $1.16
Adjusted
Diluted EPS $0.76 $0.50 $2.12 $1.36
Diluted Shares 92,589 93,153 92,819 93,747
Third Quarter Results
Net sales from continuing operations for the third quarter of fiscal 2010 were $538 million, an increase of 6%. Reported income from continuing operations was $60 million, or $0.65 per share, a strong increase over $46 million, or $0.50 per share, a year ago. Excluding the charges as outlined in Table II at the end of this release, third quarter fiscal 2010 adjusted income from continuing operations was $70 million, or $0.76 per share. Reported operating expenses included $7 million in restructuring charges, primarily related to the sale of the Company's German API facility, and $3 million in acquisition costs related to the pending acquisition of PBM Holdings, Inc. (PBM).
Nine Months Results
Net sales for the first nine months of fiscal 2010 were $1,649 million, an increase of 10% over fiscal 2009. The increase spanned all of the Company's segments and included consolidated new product sales of approximately $65 million. Reported gross profit was $547 million, up 27%, and the reported gross margin was 33.2%, up from 28.8% last year. Reported operating margin increased 290 basis points to 15.7% and adjusted operating margin increased 400 basis points to 17.2%. Reported income from continuing operations was $174 million, an increase of 60%. Adjusted income from continuing operations was $196 million or an increase of 54% from fiscal 2009.
Consumer Healthcare
Consumer Healthcare segment net sales in the third quarter were $436 million compared with $419 million in the third quarter last year, an increase of $17 million or 4%. The increase resulted from $18 million of new product sales and $11 million from higher sales volumes of existing products, primarily in the laxatives, analgesics, nutritional, and gastrointestinal categories, as well as from favorable changes in foreign currency exchange rates which increased sales by $3 million. These increases were partially offset by a decline of approximately $15 million in sales from existing products, primarily in smoking cessation and contract manufacturing categories. Reported operating income was $78 million, compared with $62 million a year ago, largely driven by favorable product mix and higher gross margins from the sale of new products. Reported operating margin increased 300 basis points to 17.9% due to improved operating expense leverage.
For the first nine months of fiscal year 2010, Consumer Healthcare net sales increased $120 million or 10%, compared to fiscal 2009. The increase resulted from approximately $51 million of new product sales and a $63 million increase in sales of existing products, primarily in the gastrointestinal, cough/cold and analgesics categories, as well as incremental sales of $43 million from the Company's acquisitions of J.B. Laboratories, Unico, and Diba. This growth was partially offset by approximately $27 million in decreased sales from existing products, primarily in the feminine hygiene, smoking cessation and contract manufacturing categories, as well as from exited products. Net sales were also reduced by approximately $9 million as a result of foreign currency exchange rates.
On February 12, 2010, the Company announced that a federal court had granted summary judgment in its favor in patent litigation involving Guaifenesin Extended-Release Tablets, 600mg, a generic version of Mucinex®.
On March 1, 2010, the Company announced that it had acquired Australia's leading OTC store brand supplier, Orion Laboratories, for $49 million in cash.
On March 15, 2010, the Company announced that it launched Ketotifen Fumarate ophthalmic solution, 0.025%, a generic version of Zaditor™.
On March 23, 2010, the Company announced that it had signed a definitive merger agreement to acquire the world's largest store brand infant formula manufacturer, PBM Holdings, for $808 million in cash.
Rx Pharmaceuticals
The Rx Pharmaceuticals segment third quarter net sales were approximately $51 million compared with $42 million a year ago, an increase of 22%. This increase was due primarily to an increase in non-product revenue, reduced downward pricing pressure and new product sales. Reported operating income was $17 million, an increase of $9 million from last year. The increase was due primarily to an increase in non-product revenue, greater operating expense leverage and improved operating efficiency. Operating margin increased 1400 basis points from last year to 33.1%.
For the first nine months of fiscal year 2010, net sales for the Rx Pharmaceuticals segment increased 33% over fiscal 2009. Net sales increased due to higher sales of existing products and over-the-counter Rx (ORx), less downward pricing pressure, new product sales and an increase in non-product revenue.
On February 18, 2010, the Company announced that it had received final approval from the U.S. Food and Drug Administration (FDA) to manufacture and market Ciclopirox Shampoo, 1%, a generic version of LOPROX® Shampoo.
On April 5, 2010, the Company announced, that together with its partner Cobrek Pharmaceuticals, Inc. (Cobrek), final approval had been received from the FDA to manufacture and market Clindamycin Phosphate Foam 1%, a generic version of Evoclin® Foam 1% produced by Stiefel Laboratories, a GSK Company. As the abbreviated new drug application (ANDA) was first to file with a Paragraph IV certification against Evoclin®, 180 days of generic exclusivity was granted by the FDA.
Also on April 5, 2010, the Company announced that, together with its partner Cobrek, it had agreed to settle all Hatch-Waxman litigation relating to Betamethasone Valerate Foam, a generic equivalent of Luxiq® Foam, brought by Stiefel, against Cobrek by taking a royalty bearing license under all relevant patents. Under the terms of the settlement, the Company can launch a generic version of Luxiq® Foam on January 15, 2013, or earlier under certain circumstances.
On April 13, 2010, the Company announced that it had settled all patent litigation with Graceway Pharmaceuticals related to the Company's ANDA filing for a generic version of Aldara®. The Company has been named Graceway's authorized generic distributor for Aldara® through February 24, 2011.
On April 15, 2010, the Company announced that it had been named as an authorized generic partner by Ferndale Laboratories and had launched an authorized generic of Analpram HC® Cream.
API
The API segment reported third quarter net sales of $34 million compared with $31 million a year ago. The increase was due primarily to new product sales, dossier sales and favorable changes in the foreign currency exchange rates. Reported operating income decreased approximately $6 million due primarily to charges related to the restructuring in Germany. Adjusted operating income increased $1 million. Adjusted operating margin increased 180 basis points to 15.8%.
For the first nine months of fiscal year 2010, net sales increased 4% or $4 million, compared to fiscal 2009. Adjusted operating margin increased 880 basis points to 14.8% from last year's 6%.
Other
Continuing operations for the Other category, consisting of the Israel Pharmaceutical and Diagnostic Products operating segment, reported third quarter net sales of $17 million compared with $14 million a year ago. The operating segment reported operating income of approximately $2 million, compared to operating income of approximately $3 million for fiscal 2009. Year-to-date net sales for fiscal 2010 decreased 22% compared to fiscal 2009. The decrease was due primarily to approximately $18 million related to the loss of a customer contract.
On March 1, 2010, the Company announced that on February 26, 2010 it had closed its previously announced sale of the Israel Consumer Products business to Emilia Group.
Guidance
Chairman and CEO Joseph C. Papa concluded, "Strong performance and execution across our businesses continued during the third quarter. As a result of these positive factors, we now expect reported fiscal 2010 diluted earnings from continuing operations to be between $2.42 and $2.47 per share. Excluding the charges outlined in Table II at the end of this release, we now expect fiscal 2010 adjusted diluted earnings from continuing operations to be between $2.75 and $2.80 per share, up from our previously announced $2.55 to $2.65 per share. This new range implies a year-over-year growth rate of adjusted earnings from continuing operations of 47% to 50% over fiscal 2009 adjusted diluted EPS."
Perrigo will host a conference call to discuss fiscal 2010 third quarter results at 10:00 a.m. (ET) on Thursday, April 29. The conference call will be available live via webcast to interested parties on the Perrigo website http://www.perrigo.com/ or by phone 877-248-9413, International 973-582-2737 and reference ID# 69498517. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Thursday, April 29, until midnight Thursday, May 13, 2010. To listen to the replay, call 800-642-1687, International 706-645-9291, access code 69498517.
Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription (Rx) pharmaceuticals, nutritional products, and active pharmaceutical ingredients (API), and pharmaceutical and medical diagnostic products. The Company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The Company's primary markets and locations of manufacturing and logistics operations are the United States, Australia, Israel, Mexico and the United Kingdom. Visit Perrigo on the Internet (http://www.perrigo.com/).
Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in the Company's Form 10-K for the year ended June 27, 2009, as well as the Company's subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Third Quarter Year-to-Date
------------- ------------
2010 2009 2010 2009
---- ---- ---- ----
Net sales $538,306 $505,902 $1,649,475 $1,498,653
Cost of sales 352,440 356,310 1,102,670 1,066,509
------- ------- --------- ---------
Gross profit 185,866 149,592 546,805 432,144
------- ------- ------- -------
Operating
expenses
Distribution 7,960 6,167 21,493 18,513
Research and
development 17,467 17,890 56,699 56,036
Selling and
administration 65,658 53,638 188,795 165,533
------ ------
Subtotal 91,085 77,695 266,987 240,082
------ ------ ------- -------
Write-off of in-
process
research and
development - - 14,000 279
Restructuring 7,474 - 7,474 -
----- --- ----- ---
Total 98,559 77,695 288,461 240,361
------ ------ ------- -------
Operating income 87,307 71,897 258,344 191,783
Interest, net 5,989 6,966 18,203 20,465
Other (income)
expense, net (1,327) 1,160 (1,557) 2,565
Investment
impairment - - - 15,104
--- --- --- ------
Income from
continuing
operations
before
income taxes 82,645 63,771 241,698 153,649
Income tax
expense 22,507 17,302 67,299 44,831
------ ------ ------ ------
Income from
continuing
operations 60,138 46,469 174,399 108,818
Income (loss)
from
discontinued
operations,
net of tax 768 (572) (1,301) 30
--- ---- ------ ---
Net income $60,906 $45,897 $173,098 $108,848
======= ======= ======== ========
Earnings (loss)
per share (1)
Basic
Continuing
operations $0.66 $0.51 $1.91 $1.18
Discontinued
operations 0.01 (0.01) (0.01) 0.00
---- ----- ----- ----
Basic earnings
per share $0.67 $0.50 $1.89 $1.18
Diluted
Continuing
operations $0.65 $0.50 $1.88 $1.16
Discontinued
operations 0.01 (0.01) (0.01) 0.00
---- ----- ----- ----
Diluted earnings
per share $0.66 $0.49 $1.86 $1.16
Weighted average
shares
outstanding
Basic 91,179 91,967 91,428 92,251
Diluted 92,589 93,153 92,819 93,747
Dividends
declared per
share $0.0625 $0.0550 $0.1800 $0.1600
(1) The sum of individual per share amounts may not equal due to
rounding.
PERRIGO COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March March
27, June 27, 28,
2010 2009 2009
---- ---- ----
Assets
Current assets
Cash and cash
equivalents $314,924 $316,133 $197,817
Investment securities 562 3 5
Accounts receivable, net 322,329 325,810 331,307
Inventories 417,580 384,794 383,010
Current deferred income
taxes 40,689 41,941 40,447
Income taxes refundable - 8,926 12,191
Prepaid expenses and
other current assets 33,218 23,658 26,904
Current assets of
discontinued operations 9,507 51,699 45,796
----- ------ ------
Total current assets 1,138,809 1,152,964 1,037,477
Property and equipment 821,564 763,951 724,242
Less accumulated
depreciation (441,283) (409,634) (385,780)
-------- -------- --------
380,281 354,317 338,462
Restricted cash 400,000 400,000 400,000
Goodwill and other
indefinite-lived
intangible assets 292,030 268,819 249,960
Other intangible assets,
net 219,288 214,207 208,093
Non-current deferred
income taxes 60,440 74,438 70,610
Other non-current assets 52,633 49,756 45,101
Non-current assets of
discontinued operations - 21,854 22,181
--- ------ ------
$2,543,481 $2,536,355 $2,371,884
========== ========== ==========
Liabilities and
Shareholders' Equity
Current liabilities
Accounts payable $235,085 $271,537 $232,875
Payroll and related
taxes 70,588 54,196 51,949
Accrued customer
programs 53,788 54,461 52,789
Accrued liabilities 54,520 61,704 49,435
Accrued income taxes 6,958 3,334 -
Current deferred income
taxes 15,431 18,528 16,120
Current portion of long-
term debt - 17,181 15,869
Current liabilities of
discontinued operations 17,363 19,620 18,975
------ ------ ------
Total current
liabilities 453,733 500,561 438,012
Non-current liabilities
Long-term debt, less
current portion 825,000 875,000 875,000
Non-current deferred
income taxes 108,748 139,916 133,955
Other non-current
liabilities 104,118 86,476 74,222
Non-current liabilities
of discontinued
operations - 11,933 9,391
--- ------ -----
Total non-current
liabilities 1,037,866 1,113,325 1,092,568
Shareholders' equity
Controlling interest
shareholders' equity:
Preferred stock, without
par value, 10,000
shares authorized - - -
Common stock, without
par value, 200,000
shares authorized 413,683 452,243 448,589
Accumulated other
comprehensive income 60,717 50,592 8,111
Retained earnings 575,619 419,086 384,056
------- ------- -------
1,050,019 921,921 840,756
Noncontrolling interest 1,863 548 548
----- --- ---
Total shareholders'
equity 1,051,882 922,469 841,304
--------- ------- -------
$2,543,481 $2,536,355 $2,371,884
========== ========== ==========
Supplemental Disclosures
of Balance Sheet
Information
Related to Continuing
Operations
Allowance for doubtful
accounts $10,818 $11,394 $9,750
Working capital $692,932 $620,324 $572,644
Preferred stock, shares
issued and outstanding - - -
Common stock, shares
issued and outstanding 91,356 92,209 92,171
PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year-to-Date
------------
2010 2009
---- ----
Cash Flows From (For) Operating
Activities
Net income $173,098 $108,848
Adjustments to derive cash flows
Write-off of in-process research and
development 14,000 279
Depreciation and amortization 53,673 50,906
Restructuring 7,474 -
Asset impairments - 16,704
Share-based compensation 11,184 7,322
Gain on sale of business (750) -
Income tax benefit from exercise of
stock options (905) (2,673)
Excess tax benefit of stock
transactions (5,730) (2,970)
Deferred income taxes (credit) (18,108) 811
Sub-total 233,936 179,227
------- -------
Changes in operating assets and
liabilities, net of asset and
business
acquisitions and disposition
Accounts receivable 10,172 (6,053)
Inventories (33,660) (9,007)
Accounts payable (32,124) (4,219)
Payroll and related taxes 18,760 (21,258)
Accrued customer programs (1,005) (580)
Accrued liabilities (8,246) (16,907)
Accrued income taxes 32,476 9,109
Other (4,108) (28,729)
------ -------
Sub-total (17,735) (77,644)
------- -------
Net cash from operating activities 216,201 101,583
------- -------
Cash Flows (For) From Investing
Activities
Cash acquired in asset exchange - 2,115
Proceeds from sale of business 35,980 -
Acquisitions of businesses, net of
cash acquired (58,885) (88,248)
Acquired research and development (14,000) -
Acquisitions of assets (10,262) (1,000)
Additions to property and equipment (32,233) (32,020)
Net cash for investing activities (79,400) (119,153)
------- --------
Cash Flows (For) From Financing
Activities
Repayments of short-term debt, net - (13,736)
Repayments of long-term debt (67,771) (31,380)
Bridge loan financing costs (3,500) -
Excess tax benefit of stock
transactions 5,730 2,970
Issuance of common stock 14,593 9,434
Repurchase of common stock (70,972) (62,347)
Cash dividends (16,566) (14,786)
------- -------
Net cash for financing activities (138,486) (109,845)
-------- --------
Effect of exchange rate changes on
cash 472 6,632
--- -----
Net decrease in cash and cash
equivalents (1,213) (120,783)
Cash and cash equivalents of
continuing operations, beginning of
period 316,133 318,599
Cash balance of discontinued
operations, beginning of period 4 5
--- ---
Cash and cash equivalents, end of
period 314,924 197,821
Less cash balance of discontinued
operations, end of period - (4)
--- ---
Cash and cash equivalents of
continuing operations, end of period $314,924 $197,817
======== ========
Supplemental Disclosures of Cash Flow
Information
Cash paid/received during the period
for:
Interest paid $31,928 $33,829
Interest received $15,851 $18,872
Income taxes paid $50,185 $60,105
Income taxes refunded $1,159 $3,627
Table I
PERRIGO COMPANY
SEGMENT INFORMATION
(in thousands)
(unaudited)
Third Quarter* Year-to-Date*
-------------- -------------
2010 2009 2010 2009
---- ---- ---- ----
Segment Net Sales
Consumer
Healthcare $436,259 $419,148 $1,352,022 $1,231,761
Rx
Pharmaceuticals 50,838 41,747 153,500 115,323
API 34,251 30,953 101,294 97,062
Other 16,958 14,054 42,659 54,507
------ ------ ------ ------
Total $538,306 $505,902 $1,649,475 $1,498,653
=====
Segment Operating
Income (Loss)
Consumer
Healthcare $78,081 $62,278 $237,832 $177,697
Rx
Pharmaceuticals 16,815 7,982 33,497 16,938
API (1,350) 4,344 8,225 5,842
Other 1,556 2,726 1,992 5,327
Unallocated
expenses (7,795) (5,433) (23,202) (14,021)
------ ------ ------- -------
Total $87,307 $71,897 $258,344 $191,783
=====
*All information based on continuing operations.
Table II
PERRIGO COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share amounts)
(unaudited)
Third Quarter*
--------------
2010 2009 % Change
---- ---- --------
Net sales $538,306 $505,902 6%
Reported gross profit $185,866 $149,592 24%
Inventory step-ups 322 736
Impairment of fixed
assets - -
--- ---
Adjusted gross profit $186,188 $150,328 24%
======== ========
Adjusted gross profit % 34.6% 29.7%
Reported operating income $87,307 $71,897 21%
Inventory step-ups 322 736
Write-offs of in-
process R&D - -
Impairment of fixed
assets - -
Restructuring charges 7,474 -
Acquisition costs 3,052 -
Loss on asset exchange - -
Adjusted operating income $98,155 $72,633 35%
======= =======
Adjusted operating income
% 18.2% 14.4%
Reported income from
continuing operations $60,138 $46,469 29%
Inventory step-ups (1) 241 530
Restructuring charges -
Florida (1) 431 -
Restructuring charges -
Germany (2) 6,775 -
Acquisition costs -Orion
(2) 600 -
Acquisition costs -PBM
(1) 2,033 -
Write-offs of in-
process R&D (1) - -
Impairment of fixed
assets (1) - -
Investment impairment (1) - -
Loss on asset exchange
(1) - -
Adjusted income from
continuing operations $70,218 $46,999 49%
======= =======
Diluted earnings per
share from continuing
operations
Reported $0.65 $0.50 30%
Adjusted $0.76 $0.50 52%
Diluted weighted average
shares outstanding 92,589 93,153
Year-to-Date*
-------------
2010 2009 % Change
---- ---- --------
Net sales $1,649,475 $1,498,653 10%
Reported gross profit $546,805 $432,144 27%
Inventory step-ups 1,031 2,923
Impairment of fixed
assets - 1,600
-----
Adjusted gross profit $547,836 $436,667 25%
======== ========
Adjusted gross profit % 33.2% 29.1%
Reported operating income $258,344 $191,783 35%
Inventory step-ups 1,031 2,923
Write-offs of in-
process R&D 14,000 279
Impairment of fixed
assets - 1,600
Restructuring charges 7,474 -
Acquisition costs 3,052 -
Loss on asset exchange - 639
Adjusted operating income $283,901 $197,224 44%
======== ========
Adjusted operating income
% 17.2% 13.2%
Reported income from
continuing operations $174,399 $108,818 60%
Inventory step-ups (1) 773 1,956
Restructuring charges -
Florida (1) 431 -
Restructuring charges -
Germany (2) 6,775 -
Acquisition costs -Orion
(2) 600 -
Acquisition costs -PBM
(1) 2,033 -
Write-offs of in-
process R&D (1) 11,442 201
Impairment of fixed
assets (1) - 992
Investment impairment (1) - 15,104
Loss on asset exchange
(1) - 639
Adjusted income from
continuing operations $196,453 $127,710 54%
======== ========
Diluted earnings per
share from continuing
operations
Reported $1.88 $1.16 62%
Adjusted $2.12 $1.36 56%
Diluted weighted average
shares outstanding 92,819 93,747
(1) Net of taxes
(2) Not tax affected
*All information based on continuing operations.
Table II (Continued)
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
Third Quarter*
--------------
2010 2009 % Change
---- ---- --------
Consumer Healthcare
Net sales $436,259 $419,148 4%
Reported gross profit $138,196 $116,068 19%
Inventory step-ups - 736
Impairment of fixed
assets - -
--- ---
Adjusted gross profit $138,196 $116,804 18%
======== ========
Adjusted gross profit % 31.7% 27.9%
Reported operating income $78,081 $62,278 25%
Restructuring charges -
Florida 699 -
Inventory step-ups - 736
Impairment of fixed
assets - -
Loss on asset exchange - -
Adjusted operating income $78,780 $63,014 25%
======= =======
Adjusted operating income
% 18.1% 15.0%
Rx Pharmaceuticals
Net sales $50,838 $41,747 22%
Reported operating income $16,815 $7,982 111%
Write-off of in-process
R&D - ANDA - -
---
Adjusted operating income $16,815 $7,982 111%
======= ======
Adjusted operating income
% 33.1% 19.1%
API
Net sales $34,251 $30,953 11%
Reported operating income
(loss) $(1,350) $4,344 -131%
Restructuring charges -
Germany 6,775 -
---
Adjusted operating income $5,425 $4,344 25%
====== ======
Adjusted operating income
% 15.8% 14.0%
Other
Net sales $16,958 $14,054 21%
Reported gross profit $6,814 $5,999 14%
Inventory step-ups -
Asset acquisitions 322 -
--- ---
Adjusted gross profit $7,136 $5,999 19%
====== ======
Adjusted gross profit % 42.1% 42.7%
Reported operating income $1,556 $2,726 -43%
Inventory step-ups -
Asset acquisitions 322 -
--- ---
Adjusted operating income $1,878 $2,726 -31%
====== ======
Adjusted operating income
% 11.1% 19.4%
Unallocated
Reported operating loss $(7,795) $(5,433) 43%
Acquisition costs 3,052 -
Write-off of in-process
R&D - Diba acquisition - -
--- ---
Adjusted operating loss $(4,743) $(5,433) -13%
======= =======
Year-to-Date*
-------------
2010 2009 % Change
---- ---- --------
Consumer Healthcare
Net sales $1,352,022 $1,231,761 10%
Reported gross profit $417,105 $340,351 23%
Inventory step-ups - 2,923
Impairment of fixed
assets - 1,600
--- -----
Adjusted gross profit $417,105 $344,874 21%
======== ========
Adjusted gross profit % 30.9% 28.0%
Reported operating income $237,832 $177,697 34%
Restructuring charges -
Florida 699 -
Inventory step-ups - 2,923
Impairment of fixed
assets - 1,600
Loss on asset exchange - 639
Adjusted operating income $238,531 $182,859 30%
======== ========
Adjusted operating income
% 17.6% 14.8%
Rx Pharmaceuticals
Net sales $153,500 $115,323 33%
Reported operating income $33,497 $16,938 98%
Write-off of in-process
R&D - ANDA 14,000 -
---
Adjusted operating income $47,497 $16,938 180%
======= =======
Adjusted operating income
% 30.9% 14.7%
API
Net sales $101,294 $97,062 4%
Reported operating income
(loss) $8,225 $5,842 41%
Restructuring charges -
Germany 6,775 -
---
Adjusted operating income $15,000 $5,842 157%
======= ======
Adjusted operating income
% 14.8% 6.0%
Other
Net sales $42,659 $54,507 -22%
Reported gross profit $15,137 $18,565 -18%
Inventory step-ups -
Asset acquisitions 1,031 -
----- ---
Adjusted gross profit $16,168 $18,565 -13%
======= =======
Adjusted gross profit % 37.9% 34.1%
Reported operating income $1,992 $5,327 -63%
Inventory step-ups -
Asset acquisitions 1,031 -
----- ---
Adjusted operating income $3,023 $5,327 -43%
====== ======
Adjusted operating income
% 7.1% 9.8%
Unallocated
Reported operating loss $(23,202) $(14,021) 65%
Acquisition costs 3,052 -
Write-off of in-process
R&D - Diba acquisition - 279
--- ---
Adjusted operating loss $(20,150) $(13,742) 47%
======== ========
*All information based on continuing operations.
Table III
FY 2010 GUIDANCE AND FY 2009 EPS
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)
Full Year*
Fiscal 2010
Guidance
-----------
FY10 reported diluted earnings per share from
continuing operations range $2.42 - $2.47
Charges associated with inventory step-ups 0.050
Charge associated with acquired research and
development 0.123
Charges associated with acquisition costs 0.081
Charges associated with restructuring 0.078
FY10 adjusted diluted earnings per share from
continuing operations range $2.75 - $2.80
============================================= =============
Fiscal 2009*
------------
FY09 reported diluted earnings per share from
continuing operations $1.67
Loss on asset exchange 0.007
Charges associated with inventory step-ups 0.021
Fixed asset impairment 0.011
Write-off of in-process R&D 0.002
Investment impairment 0.161
-----
FY09 adjusted diluted earnings per share from
continuing operations $1.87
=====
*All information based on continuing operations.
First Call Analyst:
FCMN Contact: penny.blain@perrigo.com
SOURCE: Perrigo Company
CONTACT: Arthur J. Shannon, Vice President, Investor Relations and
Communication, +1-269-686-1709, ajshannon@perrigo.com, or Daniel B. Willard,
Manager, Investor Relations and Communication, +1-269-686-1597,
dbwillard@perrigo.com, both of Perrigo Company
Web Site: http://www.perrigo.com/