ALLEGAN, Mich., Aug. 16, 2011 /PRNewswire/ -- Perrigo Company (Nasdaq: PRGO; TASE) today announced results for its fourth quarter and full year ended June 25, 2011.
Perrigo's Chairman and CEO Joseph C. Papa commented, "For the fifth straight year, we delivered year-over-year record sales, earnings and cash flow from operations, while at the same time making meaningful investments in the facilities, production and people necessary to further enhance our own already high standards of excellent product quality. In addition, we announced the acquisition of Paddock Laboratories and the entry into blood glucose monitoring category that broaden our product offering. We are continuing along our strategic path in these challenging economic times to make quality healthcare more affordable to consumers around the globe."
Refer to Table I at the end of this press release for adjustments in the current year and prior year periods and additional non-GAAP disclosure information.
The Company's reported results are summarized in the attached Consolidated Statements of Income, Balance Sheets and Cash Flows.
|
Perrigo Company (from continuing operations, in thousands, except per share amounts) (see the attached Table I for reconciliation to GAAP numbers) |
|||||
|
Fourth Quarter |
Fiscal Year |
||||
|
2011 |
2010 |
2011 |
2010 |
||
|
Net Sales |
$704,629 |
$619,760 |
$2,755,029 |
$2,268,150 |
|
|
Reported Income |
$85,570 |
$49,001 |
$340,558 |
$224,434 |
|
|
Adjusted Income |
$95,418 |
$71,539 |
$375,361 |
$281,095 |
|
|
Reported Diluted EPS |
$0.91 |
$0.53 |
$3.64 |
$2.42 |
|
|
Adjusted Diluted EPS |
$1.02 |
$0.77 |
$4.01 |
$3.03 |
|
|
Diluted Shares |
93,853 |
92,948 |
93,529 |
92,845 |
|
Fourth Quarter Results
Net sales from continuing operations for the fourth quarter of fiscal 2011 were approximately $705 million, an increase of 14% compared to last year. Reported income from continuing operations was approximately $86 million, or $0.91 per share, a strong increase over $49 million, or $0.53 per share, a year ago. Excluding the charges outlined in Table I at the end of this release, fourth quarter fiscal 2011 adjusted income from continuing operations was $95 million, or $1.02 per share.
Fiscal Year Results
Net sales from continuing operations for fiscal 2011 were $2.76 billion, an increase of 21% over fiscal 2010. The increase was driven primarily by the acquisitions of PBM Holdings, Inc. (PBM) and Orion Laboratories Pty Ltd. (Orion), as well as $192 million in new product sales. Reported gross profit was $945 million, up by 27%, and reported gross margin was 34.3%, up from 32.9% last year. The gross margin improvement was driven primarily by new products and the acquisition of PBM. Reported operating margin increased 300 basis points to 17.8% and adjusted operating margin increased 160 basis points to 19.6%. Reported income from continuing operations was $341 million, an increase of 52%. Adjusted income from continuing operations was $375 million, or an increase of 34% from fiscal 2010.
Consumer Healthcare
Consumer Healthcare segment net sales in the fourth quarter were $434 million, compared with $399 million in the fourth quarter last year, an increase of $35 million or 9%. The increase resulted from $18 million of new product sales, $12 million of higher sales volumes of existing products and approximately $5 million due to the impact of favorable changes in foreign currency exchange rates. Reported gross profit was $133 million, compared to $131 million a year ago. Adjusted gross profit was $134 million compared to $133 million a year ago. Adjusted gross margin decreased 220 basis points to 31.0%, largely driven increased investments in quality systems and lower manufacturing efficiencies year over year due to production process redesigns. Reported operating income was $74 million, compared with $69 million a year ago, and adjusted operating income was approximately $77 million compared to approximately $71 million a year ago. Adjusted operating margin remained constant at 17.9% compared to last year.
For fiscal year 2011, Consumer Healthcare net sales increased $111 million or 7%, compared to fiscal 2010. The increase resulted from $51 million of higher sales volumes of existing products, primarily in the analgesics and cough/cold categories, $54 million of new product sales, and $22 million of sales attributable to the acquisition of Orion, as well as an approximate $7 million favorable impact from changes in foreign currency exchange rates. These increases were partially offset by a decline of $22 million in sales of existing products, primarily in the contract manufacturing and gastrointestinal categories. Reported gross profit was $531 million, compared to $523 million a year ago. Adjusted gross profit was $535 million, compared to $526 million a year ago. Adjusted gross margin decreased 180 basis points to 31.7%, driven by increased manufacturing and inventory costs related to quality improvement initiatives at our Michigan facilities. Reported operating income was $293 million, compared with $304 million a year ago, and adjusted operating income was approximately $303 million, compared to $310 million a year ago. Adjusted operating margin decreased 170 basis points to 18.0%.
On April 13, 2011, the Company announced that its partner, Teva Pharmaceutical Industries, Ltd. (Nasdaq: TEVA), received final over-the-counter (OTC) approval to sell and distribute fexofenadine HCl 60 mg and 180 mg tablets.
On May 2, 2011, the Company announced that it received final approval from the U.S. Food and Drug Administration (FDA) for its abbreviated new drug application (ANDA) for OTC Minoxidil Foam.
On May 16, 2011, the Company announced that it received final approval from the FDA for its ANDA for OTC Ranitidine 150 (regular and cool mint) and expects to launch early in its fiscal 2012.
Nutritionals
The Nutritionals segment fourth quarter net sales were $123 million, compared to $84 million last year, an increase of 47%. This increase was due to the inclusion of a full quarter of sales from the PBM acquisition. Reported gross profit was $37 million, compared to $15 million a year ago, while adjusted gross margin increased 190 basis points to 32.9%. This increase was also due to the PBM acquisition. Reported operating income was $12 million, up from a loss of $1 million a year ago. Adjusted operating income increased to approximately $18 million, up from $12 million a year ago, as the adjusted operating margin percentage remained flat at 14.3%.
For fiscal year 2011, Nutritionals net sales increased 94% to $503 million compared to $259 million in fiscal 2010 due to the PBM acquisition, which added incremental revenues of $283 million, including approximately $9 million in new product sales. New product sales within VMS (Vitamins, Minerals and Supplements) were approximately $8 million. The increase was offset by a decline of $46 million due primarily to SKU rationalization within VMS. Reported gross profit was $159 million, compared to approximately $39 million a year ago, while adjusted gross profit was $171 million, compared to $50 million a year ago. Adjusted gross margin increased 1,480 basis points to 34.0%, due largely to the acquisition of PBM, along with operational improvements within VMS. Reported operating income was $68 million, compared with $2 million a year ago, and adjusted operating income was $91 million, compared to $17 million a year ago. Adjusted operating margin increased 1,140 basis points to 18.1%.
Rx Pharmaceuticals
The Rx Pharmaceuticals segment fourth quarter net sales were $92 million, compared with $83 million a year ago, an increase of 12%. This increase was due primarily to new product sales of $10 million. Reported gross profit was $50 million, compared to approximately $31 million a year ago. Gross margin increased 1,760 basis points to 54.4% as a result of the Company switching from selling the authorized generic of imiquimod cream to its own product. Reported operating income was $38 million, an increase of $25 million from last year, and adjusted operating income was $41 million, compared to $21 million a year ago. Adjusted operating margin increased 1,910 basis points from last year to 44.6%.
For fiscal year 2011, net sales for the Rx Pharmaceuticals segment increased 45% over fiscal 2010 to $344 million from $238 million. The increase was due primarily to new product sales of $81 million, due largely to sales of the generic version of Aldara®, along with favorable pricing on select products. Reported gross profit was $163 million, compared to $108 million a year ago. Adjusted gross profit was $174 million, compared to $119 million a year ago. Adjusted gross margin increased 60 basis points to 50.7% due to new product sales, favorable pricing on select products, and gross profit from higher sales volumes of existing products. Reported operating income was $120 million, compared with approximately $49 million a year ago, and adjusted operating income was $131 million, compared to $78 million a year ago. Adjusted operating margin increased 520 basis points to 38.2%.
On May 18, 2011 the Company and its partner Synthon Pharmaceuticals, Inc. received tentative approval from the FDA for its ANDA for Levocetirizine Solution, 2.5 mg/5ml.
On June 15, 2011 the Company and its partner Teva announced that they began shipping Triamcinolone Acetonide Nasal Spray.
API
The API segment reported fourth quarter net sales of $37 million, compared with $39 million a year ago. Reported operating income decreased approximately $1 million to $6 million, while adjusted operating income decreased $2 million compared to last year. Adjusted operating margin decreased 500 basis points to 19.3%.
For fiscal year 2011, net sales increased 11% or $16 million over fiscal 2010, to $156 million. Reported operating income increased approximately $23 million over last year, and adjusted operating income increased $14 million over last year to $40 million. The increases were due largely to new product sales of $32 million, driven primarily by temozolomide sales in Europe. Sales were offset by decreased sales volumes of existing products, a decrease in revenues related to the sale of dossier agreements and unfavorable changes in foreign currency exchange rates. Adjusted operating margin increased 730 basis points to 25.9%.
Other
Continuing operations for the Other category, consisting of the Israel Pharmaceutical and Diagnostic Products operating segment, reported fourth quarter net sales of $18 million compared with $15 million a year ago. The segment reported adjusted operating income of $0.6 million, compared to $1 million a year ago. Net sales for fiscal 2011 increased 17% to $67 million, up from approximately $58 million a year ago. Adjusted operating income for the segment was $3 million compared to approximately $5 million for fiscal 2010.
Guidance
Chairman and CEO Joseph C. Papa concluded, "We had strong performance and execution across our businesses during fiscal 2011 and in fiscal 2012 we look to build on that success. We expect fiscal 2012 reported diluted earnings from continuing operations to be between $3.79 and $3.94 per share as compared to $3.64 in fiscal 2011. Excluding the charges outlined in Table III at the end of this release, we expect fiscal 2012 adjusted diluted earnings from continuing operations to be between $4.50 and $4.65 per share as compared to $4.01 in fiscal 2011. This new range implies a year-over-year growth rate of adjusted earnings from continuing operations of 12% to 16% over fiscal 2011 adjusted diluted earnings per share."
Perrigo will host a conference call to discuss fiscal 2011 fourth quarter and year end results at 10:00 a.m. (ET) on Tuesday, August 16. 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# 84462142. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Tuesday, August 16, 2011, until midnight Friday, September 2, 2011. To listen to the replay, call 800-642-1687, International 706-645-9291, access code 84462142.
Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API). The Company is the world's largest manufacturer of OTC pharmaceutical products and infant formulas, both for the store brand market. The Company's primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico, the United Kingdom and Australia. 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 25, 2011, 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 |
|||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||
|
(in thousands, except per share amounts) |
|||||||||
|
Fiscal Year |
|||||||||
|
2010 |
2009 |
||||||||
|
As Adjusted |
As Adjusted |
||||||||
|
2011 |
(Note 1) |
(Note 1) |
|||||||
|
Net sales |
$ |
2,755,029 |
$ |
2,268,150 |
$ |
2,005,590 |
|||
|
Cost of sales |
1,810,159 |
1,521,917 |
1,408,490 |
||||||
|
Gross profit |
944,870 |
746,233 |
597,100 |
||||||
|
Operating expenses |
|||||||||
|
Distribution |
34,684 |
28,322 |
24,090 |
||||||
|
Research and development |
89,250 |
83,515 |
76,783 |
||||||
|
Selling and administration |
329,698 |
269,974 |
231,813 |
||||||
|
Subtotal |
453,632 |
381,811 |
332,686 |
||||||
|
Write-off of in-process research and development |
- |
19,000 |
279 |
||||||
|
Restructuring |
1,033 |
9,523 |
14,647 |
||||||
|
Total |
454,665 |
410,334 |
347,612 |
||||||
|
Operating income |
490,205 |
335,899 |
249,488 |
||||||
|
Interest, net |
42,312 |
28,415 |
26,995 |
||||||
|
Other (income) expense, net |
(2,661) |
(1,165) |
1,108 |
||||||
|
Investment impairment |
- |
- |
15,104 |
||||||
|
Income from continuing operations before income taxes |
450,554 |
308,649 |
206,281 |
||||||
|
Income tax expense |
109,996 |
84,215 |
63,452 |
||||||
|
Income from continuing operations |
340,558 |
224,434 |
142,829 |
||||||
|
Income (loss) from discontinued operations, net of tax |
(1,361) |
(635) |
2,704 |
||||||
|
Net income |
$ |
339,197 |
$ |
223,799 |
$ |
145,533 |
|||
|
Earnings (loss) per share (1) |
|||||||||
|
Basic |
|||||||||
|
Continuing operations |
$ |
3.69 |
$ |
2.46 |
$ |
1.55 |
|||
|
Discontinued operations |
(0.01) |
(0.01) |
0.03 |
||||||
|
Basic earnings per share |
$ |
3.67 |
$ |
2.45 |
$ |
1.58 |
|||
|
Diluted |
|||||||||
|
Continuing operations |
$ |
3.64 |
$ |
2.42 |
$ |
1.53 |
|||
|
Discontinued operations |
(0.01) |
(0.01) |
0.03 |
||||||
|
Diluted earnings per share |
$ |
3.63 |
$ |
2.41 |
$ |
1.55 |
|||
|
Weighted average shares outstanding |
|||||||||
|
Basic |
92,313 |
91,399 |
92,183 |
||||||
|
Diluted |
93,529 |
92,845 |
93,629 |
||||||
|
Dividends declared per share |
$ |
0.2725 |
$ |
0.2425 |
$ |
0.2150 |
|||
|
(1) The sum of individual per share amounts may not equal due to rounding. |
|||||||||
|
See accompanying notes to consolidated financial statements. |
|||||||||
|
PERRIGO COMPANY |
||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||
|
(in thousands) |
||||||
|
June 26, 2010 |
||||||
|
As Adjusted |
||||||
|
Assets |
June 25, 2011 |
(Note 1) |
||||
|
Current assets |
||||||
|
Cash and cash equivalents |
$ |
310,104 |
$ |
109,765 |
||
|
Restricted cash |
- |
400,000 |
||||
|
Investment securities |
- |
559 |
||||
|
Accounts receivable, net |
477,851 |
359,809 |
||||
|
Inventories |
505,576 |
452,980 |
||||
|
Current deferred income taxes |
30,474 |
27,225 |
||||
|
Income taxes refundable |
370 |
14,439 |
||||
|
Prepaid expenses and other current assets |
50,350 |
30,549 |
||||
|
Current assets of discontinued operations |
2,568 |
7,375 |
||||
|
Total current assets |
1,377,293 |
1,402,701 |
||||
|
Property and equipment |
||||||
|
Land |
39,868 |
37,215 |
||||
|
Buildings |
324,773 |
306,995 |
||||
|
Machinery and equipment |
641,157 |
540,959 |
||||
|
1,005,798 |
885,169 |
|||||
|
Less accumulated depreciation |
(498,490) |
(436,586) |
||||
|
507,308 |
448,583 |
|||||
|
Goodwill and other indefinite-lived intangible assets |
644,902 |
618,042 |
||||
|
Other intangible assets, net |
567,573 |
587,000 |
||||
|
Non-current deferred income taxes |
10,531 |
- |
||||
|
Other non-current assets |
81,614 |
52,677 |
||||
|
$ |
3,189,221 |
$ |
3,109,003 |
|||
|
Liabilities and Shareholders' Equity |
||||||
|
Current liabilities |
||||||
|
Accounts payable |
$ |
343,278 |
$ |
267,311 |
||
|
Short-term debt |
2,770 |
9,000 |
||||
|
Payroll and related taxes |
81,455 |
79,219 |
||||
|
Accrued customer programs |
91,374 |
59,898 |
||||
|
Accrued liabilities |
57,514 |
90,046 |
||||
|
Accrued income taxes |
10,551 |
11,665 |
||||
|
Current portion of long-term debt |
15,000 |
400,000 |
||||
|
Current liabilities of discontinued operations |
4,093 |
5,370 |
||||
|
Total current liabilities |
606,035 |
922,509 |
||||
|
Non-current liabilities |
||||||
|
Long-term debt, less current portion |
875,000 |
935,000 |
||||
|
Non-current deferred income taxes |
10,601 |
49,346 |
||||
|
Other non-current liabilities |
166,598 |
108,208 |
||||
|
Total non-current liabilities |
1,052,199 |
1,092,554 |
||||
|
Shareholders' Equity |
||||||
|
Controlling interest shareholders' equity: |
||||||
|
Preferred stock, without par value, 10,000 shares authorized |
- |
- |
||||
|
Common stock, without par value, 200,000 shares authorized |
467,661 |
428,457 |
||||
|
Accumulated other comprehensive income |
127,050 |
43,200 |
||||
|
Retained earnings |
934,333 |
620,439 |
||||
|
1,529,044 |
1,092,096 |
|||||
|
Noncontrolling interest |
1,943 |
1,844 |
||||
|
Total shareholders' equity |
1,530,987 |
1,093,940 |
||||
|
$ |
3,189,221 |
$ |
3,109,003 |
|||
|
Supplemental Disclosures of Balance Sheet Information |
||||||
|
Related to Continuing Operations |
||||||
|
Allowance for doubtful accounts |
$ |
7,837 |
$ |
8,015 |
||
|
Working capital |
$ |
772,783 |
$ |
478,187 |
||
|
Preferred stock, shares issued and outstanding |
- |
- |
||||
|
Common stock, shares issued and outstanding |
92,778 |
91,694 |
||||
|
See accompanying notes to consolidated financial statements. |
||||||
|
PERRIGO COMPANY |
||||||||||||||
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME |
||||||||||||||
|
(in thousands, except per share amounts) |
||||||||||||||
|
Accumulated |
||||||||||||||
|
Common Stock |
Other |
|||||||||||||
|
Issued |
Comprehensive |
Comprehensive |
Retained |
|||||||||||
|
Shares |
Amount |
Income (loss) |
Income (loss) |
Earnings |
||||||||||
|
Balance at June 28, 2008 |
93,311 |
$ |
488,537 |
$ |
137,435 |
$ |
236,638 |
$ |
288,393 |
|||||
|
Net income |
- |
- |
- |
145,533 |
145,533 |
|||||||||
|
Accumulated other comprehensive income (loss): |
||||||||||||||
|
Change in fair value of derivative financial |
||||||||||||||
|
instruments, net of $162 tax |
- |
- |
300 |
300 |
- |
|||||||||
|
Foreign currency translation adjustments |
- |
- |
(91,399) |
(91,399) |
- |
|||||||||
|
Change in fair value of investment securities |
- |
- |
3,956 |
3,956 |
- |
|||||||||
|
Adjustment to adopt ASC 320-10-65 |
- |
- |
(5,000) |
(5,000) |
5,000 |
|||||||||
|
Post-retirement liability adjustments, net of $214 tax |
- |
- |
(398) |
(398) |
- |
|||||||||
|
Issuance of common stock under: |
||||||||||||||
|
Stock options |
720 |
10,062 |
- |
- |
- |
|||||||||
|
Restricted stock plan |
14 |
- |
- |
- |
- |
|||||||||
|
Compensation for stock options |
- |
3,313 |
- |
- |
- |
|||||||||
|
Compensation for restricted stock |
- |
7,040 |
- |
- |
- |
|||||||||
|
Cash dividends, $0.215 per share |
- |
- |
- |
- |
(19,957) |
|||||||||
|
Tax effect from stock transactions |
- |
5,780 |
- |
- |
- |
|||||||||
|
Repurchases of common stock |
(1,836) |
(62,489) |
- |
- |
- |
|||||||||
|
Balance at June 27, 2009 |
92,209 |
452,243 |
44,894 |
52,992 |
418,969 |
|||||||||
|
Net income |
- |
- |
- |
223,799 |
223,799 |
|||||||||
|
Accumulated other comprehensive income (loss): |
||||||||||||||
|
Change in fair value of derivative financial |
||||||||||||||
|
instruments, net of $898 tax |
- |
- |
1,668 |
1,668 |
- |
|||||||||
|
Foreign currency translation adjustments |
- |
- |
(2,362) |
(2,362) |
- |
|||||||||
|
Change in fair value of investment securities |
- |
- |
(568) |
(568) |
- |
|||||||||
|
Post-retirement liability adjustments, net of $233 tax |
- |
- |
(432) |
(432) |
- |
|||||||||
|
Issuance of common stock under: |
||||||||||||||
|
Stock options |
1,347 |
21,444 |
- |
- |
- |
|||||||||
|
Restricted stock plan |
200 |
- |
- |
- |
- |
|||||||||
|
Compensation for stock options |
- |
3,854 |
- |
- |
- |
|||||||||
|
Compensation for restricted stock |
- |
10,842 |
- |
- |
- |
|||||||||
|
Cash dividends, $0.2425 per share |
- |
- |
- |
- |
(22,329) |
|||||||||
|
Tax effect from stock transactions |
- |
11,162 |
- |
- |
- |
|||||||||
|
Repurchases of common stock |
(2,062) |
(71,088) |
- |
- |
- |
|||||||||
|
Balance at June 26, 2010 |
91,694 |
428,457 |
43,200 |
222,105 |
620,439 |
|||||||||
|
Net income |
- |
- |
- |
339,197 |
339,197 |
|||||||||
|
Accumulated other comprehensive income (loss): |
||||||||||||||
|
Change in fair value of derivative financial |
||||||||||||||
|
instruments, net of $425 tax |
- |
- |
(790) |
(790) |
- |
|||||||||
|
Foreign currency translation adjustments |
- |
- |
81,691 |
81,691 |
- |
|||||||||
|
Change in fair value of investment securities |
- |
- |
3,110 |
3,110 |
- |
|||||||||
|
Post-retirement liability adjustments, net of $87 tax |
- |
- |
(161) |
(161) |
- |
|||||||||
|
Issuance of common stock under: |
||||||||||||||
|
Stock options |
781 |
14,341 |
- |
- |
- |
|||||||||
|
Restricted stock plan |
445 |
- |
- |
- |
- |
|||||||||
|
Compensation for stock options |
- |
3,794 |
- |
- |
- |
|||||||||
|
Compensation for restricted stock |
- |
11,561 |
- |
- |
- |
|||||||||
|
Cash dividends, $0.2725 per share |
- |
- |
- |
- |
(25,303) |
|||||||||
|
Tax effect from stock transactions |
- |
17,816 |
- |
- |
- |
|||||||||
|
Repurchases of common stock |
(142) |
(8,308) |
- |
- |
- |
|||||||||
|
Balance at June 25, 2011 |
92,778 |
$ |
467,661 |
$ |
127,050 |
$ |
423,047 |
$ |
934,333 |
|||||
|
See accompanying notes to consolidated financial statements. |
||||||||||||||
|
PERRIGO COMPANY |
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(in thousands) |
||||||||
|
Fiscal Year |
||||||||
|
2010 |
2009 |
|||||||
|
As Adjusted |
As Adjusted |
|||||||
|
2011 |
(Note 1) |
(Note 1) |
||||||
|
Cash Flows From (For) Operating Activities |
||||||||
|
Net income |
339,197 |
$ |
223,799 |
$ |
145,533 |
|||
|
Adjustments to derive cash flows |
||||||||
|
Write-off of in-process research and development |
- |
19,000 |
279 |
|||||
|
Depreciation and amortization |
102,941 |
74,104 |
71,297 |
|||||
|
Restructuring and asset impairment |
1,033 |
9,523 |
31,351 |
|||||
|
Loss (gain) on sale of business |
2,151 |
(750) |
- |
|||||
|
Share-based compensation |
15,355 |
14,696 |
10,353 |
|||||
|
Income tax benefit from exercise of stock options |
(623) |
(1,302) |
(3,490) |
|||||
|
Excess tax benefit of stock transactions |
(17,193) |
(9,860) |
(2,290) |
|||||
|
Deferred income taxes |
(57,904) |
(12,585) |
(1,185) |
|||||
|
Subtotal |
384,957 |
316,625 |
251,848 |
|||||
|
Changes in operating assets and liabilities, net of asset and |
||||||||
|
business acquisitions and disposition |
||||||||
|
Accounts receivable |
(107,235) |
(21,766) |
5,747 |
|||||
|
Inventories |
(30,416) |
(32,217) |
6,776 |
|||||
|
Accounts payable |
57,804 |
(1,558) |
4,444 |
|||||
|
Payroll and related taxes |
616 |
30,917 |
(20,351) |
|||||
|
Accrued customer programs |
31,440 |
5,142 |
1,124 |
|||||
|
Accrued liabilities |
(32,335) |
7,451 |
(12,371) |
|||||
|
Accrued income taxes |
56,216 |
26,310 |
7,553 |
|||||
|
Other |
12,914 |
1,459 |
(5,013) |
|||||
|
Subtotal |
(10,996) |
15,738 |
(12,091) |
|||||
|
Net cash from operating activities |
373,961 |
332,363 |
239,757 |
|||||
|
Cash Flows (For) From Investing Activities |
||||||||
|
Proceeds from sales of securities |
560 |
- |
- |
|||||
|
Acquired research and development |
- |
(19,000) |
- |
|||||
|
Additions to property and equipment |
(99,443) |
(57,816) |
(57,431) |
|||||
|
(Return of) proceeds from sale of business |
(3,558) |
35,980 |
- |
|||||
|
Acquisitions of assets |
(10,750) |
(10,262) |
(1,000) |
|||||
|
Acquisitions of businesses, net of cash acquired |
2,624 |
(868,802) |
(88,248) |
|||||
|
Net cash for investing activities |
(110,567) |
(919,900) |
(146,679) |
|||||
|
Cash Flows (For) From Financing Activities |
||||||||
|
Repayments of short-term debt, net |
(6,230) |
(8,771) |
(13,736) |
|||||
|
Borrowings of long-term debt |
150,000 |
625,000 |
- |
|||||
|
Repayments of long-term debt |
(195,000) |
(165,000) |
(31,380) |
|||||
|
Deferred financing fees |
(5,483) |
(5,813) |
- |
|||||
|
Excess tax benefit of stock transactions |
17,193 |
9,860 |
2,290 |
|||||
|
Issuance of common stock |
14,341 |
21,444 |
10,062 |
|||||
|
Repurchase of common stock |
(8,308) |
(71,088) |
(62,489) |
|||||
|
Cash dividends |
(25,303) |
(22,329) |
(19,957) |
|||||
|
Net cash (for) from financing activities |
(58,790) |
383,303 |
(115,210) |
|||||
|
Effect of exchange rate changes on cash |
(4,265) |
(3,643) |
2,361 |
|||||
|
Net increase (decrease) in cash and cash equivalents |
200,339 |
(207,877) |
(19,771) |
|||||
|
Cash and cash equivalents of continuing operations, beginning of period |
109,765 |
317,638 |
337,405 |
|||||
|
Cash balance of discontinued operations, beginning of period |
- |
4 |
8 |
|||||
|
Cash and cash equivalents, end of period |
310,104 |
109,765 |
317,642 |
|||||
|
Less cash balance of discontinued operations, end of period |
- |
- |
(4) |
|||||
|
Cash and cash equivalents of continuing operations, end of period |
310,104 |
$ |
109,765 |
$ |
317,638 |
|||
|
Supplemental Disclosures of Cash Flow Information |
||||||||
|
Cash paid/received during the year for: |
||||||||
|
Interest paid |
47,455 |
$ |
53,557 |
$ |
48,202 |
|||
|
Interest received |
3,726 |
$ |
21,392 |
$ |
24,258 |
|||
|
Income taxes paid |
115,627 |
$ |
77,420 |
$ |
73,276 |
|||
|
Income taxes refunded |
1,440 |
$ |
1,433 |
$ |
11,283 |
|||
|
See accompanying notes to consolidated financial statements. |
||||||||
|
Table I |
||||||||||||||||
|
PERRIGO COMPANY |
||||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
|
(in thousands, except per share amounts) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Consolidated |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 704,629 |
$ - |
$ 704,629 |
$ 619,760 |
$ - |
$ 619,760 |
14 % |
14 % |
||||||||
|
Cost of sales |
462,295 |
8,392 |
(a) |
453,903 |
421,759 |
15,719 |
(a,e) |
406,040 |
10 % |
12 % |
||||||
|
Gross profit |
242,334 |
8,392 |
250,726 |
198,001 |
15,719 |
213,720 |
22 % |
17 % |
||||||||
|
Operating expenses |
||||||||||||||||
|
Distribution |
8,962 |
- |
8,962 |
6,848 |
- |
6,848 |
31 % |
31 % |
||||||||
|
Research and development |
23,408 |
- |
23,408 |
26,362 |
- |
26,362 |
(11)% |
(11)% |
||||||||
|
Selling and administration |
85,645 |
4,854 |
(a,b) |
80,791 |
81,157 |
7,985 |
(a,f) |
73,172 |
6 % |
10 % |
||||||
|
Write-off of in-process research and development |
- |
- |
- |
5,000 |
5,000 |
(g) |
- |
(100)% |
- |
|||||||
|
Restructuring |
1,033 |
1,033 |
(c) |
- |
2,049 |
2,049 |
(h) |
- |
(50)% |
- |
||||||
|
Total |
119,048 |
5,887 |
113,161 |
121,416 |
15,034 |
106,382 |
||||||||||
|
Operating income |
123,286 |
14,279 |
137,565 |
76,585 |
30,753 |
107,338 |
61 % |
28 % |
||||||||
|
Interest, net |
10,594 |
- |
10,594 |
10,546 |
2,800 |
(i) |
7,746 |
0 % |
37 % |
|||||||
|
Other (income) expense, net |
(716) |
- |
(716) |
521 |
- |
521 |
- |
- |
||||||||
|
Income from continuing operations before income taxes |
113,408 |
14,279 |
127,687 |
65,518 |
33,553 |
99,071 |
73 % |
29 % |
||||||||
|
Income tax expense |
27,838 |
4,431 |
(d) |
32,269 |
16,517 |
11,015 |
(d) |
27,532 |
69 % |
17 % |
||||||
|
Income from continuing operations |
$ 85,570 |
$ 9,848 |
$ 95,418 |
$ 49,001 |
$ 22,538 |
$ 71,539 |
75 % |
33 % |
||||||||
|
Diluted earnings per share from continuing operations |
$ 0.91 |
$ 1.02 |
$ 0.53 |
$ 0.77 |
72 % |
32 % |
||||||||||
|
Diluted weighted average shares outstanding |
93,853 |
93,853 |
92,948 |
92,948 |
||||||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
34.4 % |
35.6 % |
31.9 % |
34.5 % |
||||||||||||
|
Operating expenses |
16.9 % |
16.1 % |
19.6 % |
17.2 % |
||||||||||||
|
Operating income |
17.5 % |
19.5 % |
12.4 % |
17.3 % |
||||||||||||
|
Fiscal Year Ended |
||||||||||||||||
|
Consolidated |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 2,755,029 |
$ - |
$ 2,755,029 |
$ 2,268,150 |
$ - |
$ 2,268,150 |
21 % |
21 % |
||||||||
|
Cost of sales |
1,810,159 |
30,663 |
(a) |
1,779,496 |
1,521,917 |
29,640 |
(a,k) |
1,492,277 |
19 % |
19 % |
||||||
|
Gross profit |
944,870 |
30,663 |
975,533 |
746,233 |
29,640 |
775,873 |
27 % |
26 % |
||||||||
|
Operating expenses |
||||||||||||||||
|
Distribution |
34,684 |
- |
34,684 |
28,322 |
- |
28,322 |
22 % |
22 % |
||||||||
|
Research and development |
89,250 |
- |
89,250 |
83,515 |
- |
83,515 |
7 % |
7 % |
||||||||
|
Selling and administration |
329,698 |
19,358 |
(a,j) |
310,340 |
269,974 |
14,580 |
(a,l) |
255,394 |
22 % |
22 % |
||||||
|
Write-off of in-process research and development |
- |
- |
- |
19,000 |
19,000 |
(g) |
- |
(100)% |
- |
|||||||
|
Restructuring |
1,033 |
1,033 |
(c) |
- |
9,523 |
9,523 |
(m) |
- |
(89)% |
- |
||||||
|
Total |
454,665 |
20,391 |
434,274 |
410,334 |
43,103 |
367,231 |
||||||||||
|
Operating income |
490,205 |
51,054 |
541,259 |
335,899 |
72,743 |
408,642 |
46 % |
32 % |
||||||||
|
Interest, net |
42,312 |
- |
42,312 |
28,415 |
3,500 |
(i) |
24,915 |
49 % |
70 % |
|||||||
|
Other income, net |
(2,661) |
- |
(2,661) |
(1,165) |
- |
(1,165) |
128 % |
128 % |
||||||||
|
Income from continuing operations before income taxes |
450,554 |
51,054 |
501,608 |
308,649 |
76,243 |
384,892 |
46 % |
30 % |
||||||||
|
Income tax expense |
109,996 |
16,251 |
(d) |
126,247 |
84,215 |
19,582 |
(d) |
103,797 |
31 % |
22 % |
||||||
|
Income from continuing operations |
$ 340,558 |
$ 34,803 |
$ 375,361 |
$ 224,434 |
$ 56,661 |
$ 281,095 |
52 % |
34 % |
||||||||
|
Diluted earnings per share from continuing operations |
$ 3.64 |
$ 4.01 |
$ 2.42 |
$ 3.03 |
50 % |
32 % |
||||||||||
|
Diluted weighted average shares outstanding |
93,529 |
93,529 |
92,845 |
92,845 |
||||||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
34.3 % |
35.4 % |
32.9 % |
34.2 % |
||||||||||||
|
Operating expenses |
16.5 % |
15.8 % |
18.1 % |
16.2 % |
||||||||||||
|
Operating income |
17.8 % |
19.6 % |
14.8 % |
18.0 % |
||||||||||||
|
(a) Deal-related amortization |
||||||||||||||||
|
(b) Acquisition costs of $832 |
||||||||||||||||
|
(c) Restructuring charges related to Florida |
||||||||||||||||
|
(d) Total tax effect for non-GAAP pre-tax adjustments |
||||||||||||||||
|
(e) Inventory step-ups of $9,873 |
||||||||||||||||
|
(f) Acquisition costs of $5,137 |
||||||||||||||||
|
(g) Write-off of in-process R&D related to acquired ANDAs |
||||||||||||||||
|
(h) Restructuring charges related to Germany |
||||||||||||||||
|
(i) Acquisition costs |
||||||||||||||||
|
(j) Acquisition costs of $3,243 |
||||||||||||||||
|
(k) Inventory step-ups of $10,904 |
||||||||||||||||
|
(l) Acquisition costs of $8,189 |
||||||||||||||||
|
(m) Restructuring charges related to Germany and Florida |
||||||||||||||||
|
Table II |
||||||||||||||||
|
PERRIGO COMPANY |
||||||||||||||||
|
REPORTABLE SEGMENTS |
||||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
|
(in thousands) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Consumer Healthcare |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 433,813 |
$ - |
$ 433,813 |
$ 398,863 |
$ - |
$ 398,863 |
9 % |
9 % |
||||||||
|
Cost of sales |
300,429 |
1,031 |
(a) |
299,398 |
267,381 |
1,051 |
(a,c) |
266,330 |
12 % |
12 % |
||||||
|
Gross profit |
133,384 |
1,031 |
134,415 |
131,482 |
1,051 |
132,533 |
1 % |
1 % |
||||||||
|
Operating expenses |
59,204 |
2,265 |
(a,b) |
56,939 |
62,137 |
1,082 |
(a) |
61,055 |
(5)% |
(7)% |
||||||
|
Operating income |
$ 74,180 |
$ 3,296 |
$ 77,476 |
$ 69,345 |
$ 2,133 |
$ 71,478 |
7 % |
8 % |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
30.7 % |
31.0 % |
33.0 % |
33.2 % |
||||||||||||
|
Operating expenses |
13.6 % |
13.1 % |
15.6 % |
15.3 % |
||||||||||||
|
Operating income |
17.1 % |
17.9 % |
17.4 % |
17.9 % |
||||||||||||
|
Fiscal Year Ended |
||||||||||||||||
|
Consumer Healthcare |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 1,684,938 |
$ - |
$ 1,684,938 |
$ 1,573,749 |
$ - |
$ 1,573,749 |
7 % |
7 % |
||||||||
|
Cost of sales |
1,153,548 |
3,445 |
(a) |
1,150,103 |
1,050,340 |
3,079 |
(a,c) |
1,047,261 |
10 % |
10 % |
||||||
|
Gross profit |
531,390 |
3,445 |
534,835 |
523,409 |
3,079 |
526,488 |
2 % |
2 % |
||||||||
|
Operating expenses |
238,293 |
5,975 |
(a,b) |
232,318 |
219,732 |
3,290 |
(a) |
216,442 |
8 % |
7 % |
||||||
|
Operating income |
$ 293,097 |
$ 9,420 |
$ 302,517 |
$ 303,677 |
$ 6,369 |
$ 310,046 |
(3)% |
(2)% |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
31.5 % |
31.7 % |
33.3 % |
33.5 % |
||||||||||||
|
Operating expenses |
14.1 % |
13.8 % |
14.0 % |
13.8 % |
||||||||||||
|
Operating income |
17.4 % |
18.0 % |
19.3 % |
19.7 % |
||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Nutritionals |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 123,130 |
$ - |
$ 123,130 |
$ 83,751 |
$ - |
$ 83,751 |
47 % |
47 % |
||||||||
|
Cost of sales |
85,668 |
3,000 |
(a) |
82,668 |
69,102 |
11,296 |
(a,d) |
57,806 |
24 % |
43 % |
||||||
|
Gross profit |
37,462 |
3,000 |
40,462 |
14,649 |
11,296 |
25,945 |
156 % |
56 % |
||||||||
|
Operating expenses |
25,596 |
2,789 |
(a) |
22,807 |
15,751 |
1,766 |
(a) |
13,985 |
63 % |
63 % |
||||||
|
Operating income (loss) |
$ 11,866 |
$ 5,789 |
$ 17,655 |
$ (1,102) |
$ 13,062 |
$ 11,960 |
- |
48 % |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
30.4 % |
32.9 % |
17.5 % |
31.0 % |
||||||||||||
|
Operating expenses |
20.8 % |
18.5 % |
18.8 % |
16.7 % |
||||||||||||
|
Operating income (loss) |
9.6 % |
14.3 % |
(1.3)% |
14.3 % |
||||||||||||
|
Fiscal Year Ended |
||||||||||||||||
|
Nutritionals |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 503,349 |
$ - |
$ 503,349 |
$ 259,275 |
$ - |
$ 259,275 |
94 % |
94 % |
||||||||
|
Cost of sales |
343,997 |
11,999 |
(a) |
331,998 |
220,671 |
11,296 |
(a,d) |
209,375 |
56 % |
59 % |
||||||
|
Gross profit |
159,352 |
11,999 |
171,351 |
38,604 |
11,296 |
49,900 |
313 % |
243 % |
||||||||
|
Operating expenses |
91,312 |
11,173 |
(a) |
80,139 |
36,347 |
3,814 |
(a,e) |
32,533 |
151 % |
146 % |
||||||
|
Operating income |
$ 68,040 |
$ 23,172 |
$ 91,212 |
$ 2,257 |
$ 15,110 |
$ 17,367 |
2,915 % |
425 % |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
31.7 % |
34.0 % |
14.9 % |
19.2 % |
||||||||||||
|
Operating expenses |
18.1 % |
15.9 % |
14.0 % |
12.5 % |
||||||||||||
|
Operating income |
13.5 % |
18.1 % |
0.9 % |
6.7 % |
||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Rx Pharmaceuticals |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 92,467 |
$ - |
$ 92,467 |
$ 82,875 |
$ - |
$ 82,875 |
12 % |
12 % |
||||||||
|
Cost of sales |
42,155 |
2,923 |
(a) |
39,232 |
52,374 |
2,463 |
(a) |
49,911 |
(20)% |
(21)% |
||||||
|
Gross profit |
50,312 |
2,923 |
53,235 |
30,501 |
2,463 |
32,964 |
65 % |
61 % |
||||||||
|
Operating expenses |
12,039 |
- |
12,039 |
16,843 |
5,000 |
(a,f) |
11,843 |
(29)% |
2 % |
|||||||
|
Operating income |
$ 38,273 |
$ 2,923 |
$ 41,196 |
$ 13,658 |
$ 7,463 |
$ 21,121 |
180 % |
95 % |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
54.4 % |
57.6 % |
36.8 % |
39.8 % |
||||||||||||
|
Operating expenses |
13.0 % |
13.0 % |
20.3 % |
14.3 % |
||||||||||||
|
Operating income |
41.4 % |
44.6 % |
16.5 % |
25.5 % |
||||||||||||
|
(a) Deal-related amortization |
||||||||||||||||
|
(b) Restructuring charges of $1,033 related to Florida |
||||||||||||||||
|
(c) Inventory step-up of $471 |
||||||||||||||||
|
(d) Inventory step-up of $9,402 |
||||||||||||||||
|
(e) Restructuring charges of $699 related to Florida |
||||||||||||||||
|
(f) Write-off of in-process R&D related to acquired ANDAs |
||||||||||||||||
|
(g) Restructuring charges related to Germany |
||||||||||||||||
|
(h) Inventory step-ups of $1,031 |
||||||||||||||||
|
Table II (Continued) |
||||||||||||||||
|
PERRIGO COMPANY |
||||||||||||||||
|
REPORTABLE SEGMENTS |
||||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
|
(in thousands) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
Fiscal Year Ended |
||||||||||||||||
|
Rx Pharmaceuticals |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 343,717 |
$ - |
$ 343,717 |
$ 237,569 |
$ - |
$ 237,569 |
45 % |
45 % |
||||||||
|
Cost of sales |
180,345 |
10,958 |
(a) |
169,387 |
129,441 |
10,800 |
(a) |
118,641 |
39 % |
43 % |
||||||
|
Gross profit |
163,372 |
10,958 |
174,330 |
108,128 |
10,800 |
118,928 |
51 % |
47 % |
||||||||
|
Operating expenses |
43,008 |
- |
43,008 |
59,625 |
19,000 |
(f) |
40,625 |
(28)% |
6 % |
|||||||
|
Operating income |
$ 120,364 |
$ 10,958 |
$ 131,322 |
$ 48,503 |
$ 29,800 |
$ 78,303 |
148 % |
68 % |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
47.5 % |
50.7 % |
45.5 % |
50.1 % |
||||||||||||
|
Operating expenses |
12.5 % |
12.5 % |
25.1 % |
17.1 % |
||||||||||||
|
Operating income |
35.0 % |
38.2 % |
20.4 % |
33.0 % |
||||||||||||
|
Three Months Ended |
||||||||||||||||
|
API |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 36,817 |
$ - |
$ 36,817 |
$ 38,986 |
$ - |
$ 38,986 |
(6)% |
(6)% |
||||||||
|
Cost of sales |
21,887 |
976 |
(a) |
20,911 |
23,115 |
494 |
(a) |
22,621 |
(5)% |
(8)% |
||||||
|
Gross profit |
14,930 |
976 |
15,906 |
15,871 |
494 |
16,365 |
(6)% |
(3)% |
||||||||
|
Operating expenses |
8,784 |
- |
8,784 |
8,940 |
2,049 |
(g) |
6,891 |
(2)% |
27 % |
|||||||
|
Operating income |
$ 6,146 |
$ 976 |
$ 7,122 |
$ 6,931 |
$ 2,543 |
$ 9,474 |
(11)% |
(25)% |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
40.6 % |
43.2 % |
40.7 % |
42.0 % |
||||||||||||
|
Operating expenses |
23.9 % |
23.9 % |
22.9 % |
17.7 % |
||||||||||||
|
Operating income |
16.7 % |
19.3 % |
17.8 % |
24.3 % |
||||||||||||
|
Fiscal Year Ended |
||||||||||||||||
|
API |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 155,717 |
$ - |
$ 155,717 |
$ 139,980 |
$ - |
$ 139,980 |
11 % |
11 % |
||||||||
|
Cost of sales |
87,317 |
2,503 |
(a) |
84,814 |
84,499 |
1,980 |
(a) |
82,519 |
3 % |
3 % |
||||||
|
Gross profit |
68,400 |
2,503 |
70,903 |
55,481 |
1,980 |
57,461 |
23 % |
23 % |
||||||||
|
Operating expenses |
30,581 |
- |
30,581 |
40,169 |
8,810 |
(a,g) |
31,359 |
(24)% |
(2)% |
|||||||
|
Operating income |
$ 37,819 |
$ 2,503 |
$ 40,322 |
$ 15,312 |
$ 10,790 |
$ 26,102 |
147 % |
54 % |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
43.9 % |
45.5 % |
39.6 % |
41.0 % |
||||||||||||
|
Operating expenses |
19.6 % |
19.6 % |
28.7 % |
22.4 % |
||||||||||||
|
Operating income |
24.3 % |
25.9 % |
10.9 % |
18.6 % |
||||||||||||
|
Three Months Ended |
||||||||||||||||
|
Other |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 18,402 |
$ - |
$ 18,402 |
$ 15,285 |
$ - |
$ 15,285 |
20 % |
20 % |
||||||||
|
Cost of sales |
12,156 |
462 |
(a) |
11,694 |
9,787 |
414 |
(a) |
9,373 |
24 % |
25 % |
||||||
|
Gross profit |
6,246 |
462 |
6,708 |
5,498 |
414 |
5,912 |
14 % |
13 % |
||||||||
|
Operating expenses |
6,078 |
- |
6,078 |
4,896 |
- |
4,896 |
24 % |
24 % |
||||||||
|
Operating income |
$ 168 |
$ 462 |
$ 630 |
$ 602 |
$ 414 |
$ 1,016 |
(72)% |
(38)% |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
33.9 % |
36.5 % |
36.0 % |
38.7 % |
||||||||||||
|
Operating expenses |
33.0 % |
33.0 % |
32.0 % |
32.0 % |
||||||||||||
|
Operating income |
0.9 % |
3.4 % |
3.9 % |
6.6 % |
||||||||||||
|
Fiscal Year Ended |
||||||||||||||||
|
Other |
June 25, 2011 |
June 26, 2010 |
% Change |
|||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted |
|||||||||
|
Net sales |
$ 67,308 |
$ - |
$ 67,308 |
$ 57,577 |
$ - |
$ 57,577 |
17 % |
17 % |
||||||||
|
Cost of sales |
44,952 |
1,758 |
(a) |
43,194 |
36,966 |
2,485 |
(a,h) |
34,481 |
22 % |
25 % |
||||||
|
Gross profit |
22,356 |
1,758 |
24,114 |
20,611 |
2,485 |
23,096 |
8 % |
4 % |
||||||||
|
Operating expenses |
21,090 |
- |
21,090 |
18,410 |
- |
18,410 |
15 % |
15 % |
||||||||
|
Operating income |
$ 1,266 |
$ 1,758 |
$ 3,024 |
$ 2,201 |
$ 2,485 |
$ 4,686 |
(42)% |
(35)% |
||||||||
|
Selected ratios as a percentage of net sales |
||||||||||||||||
|
Gross profit |
33.2 % |
35.8 % |
35.8 % |
40.1 % |
||||||||||||
|
Operating expenses |
31.3 % |
31.3 % |
32.0 % |
32.0 % |
||||||||||||
|
Operating income |
1.9 % |
4.5 % |
3.8 % |
8.1 % |
||||||||||||
|
(a) Deal-related amortization |
||||||||||||||||
|
(b) Restructuring charges of $1,033 related to Florida |
||||||||||||||||
|
(c) Inventory step-up of $471 |
||||||||||||||||
|
(d) Inventory step-up of $9,402 |
||||||||||||||||
|
(e) Restructuring charges of $699 related to Florida |
||||||||||||||||
|
(f) Write-off of in-process R&D related to acquired ANDAs |
||||||||||||||||
|
(g) Restructuring charges related to Germany |
||||||||||||||||
|
(h) Inventory step-ups of $1,031 |
||||||||||||||||
|
Table III |
||
|
PERRIGO COMPANY |
||
|
FY 2012 GUIDANCE AND FY 2011 EPS |
||
|
RECONCILIATION OF NON-GAAP MEASURES |
||
|
(unaudited) |
||
|
Fiscal 2012 Guidance* |
||
|
FY12 reported diluted EPS from continuing operations range |
$3.79 - $3.94 |
|
|
Deal-related amortization (1) |
0.54 |
|
|
Charge associated with inventory step-up |
0.11 |
|
|
Charges associated with acquisition-related costs |
0.06 |
|
|
FY12 adjusted diluted EPS from continuing operations range |
$4.50 - $4.65 |
|
|
Fiscal 2011* |
||
|
FY11 reported diluted EPS from continuing operations |
$3.64 |
|
|
Deal-related amortization (1) |
0.34 |
|
|
Charges associated with acquisition-related costs |
0.02 |
|
|
Charges associated with restructuring |
0.01 |
|
|
FY11 adjusted diluted EPS from continuing operations |
$4.01 |
|
|
(1) Amortization of acquired intangible assets related to business combinations and asset acquisitions |
||
|
*All information based on continuing operations. |
||
SOURCE Perrigo Company
CONTACT: Arthur J. Shannon, Vice President, Investor Relations and Communication, +1-269-686-1709, ajshannon@perrigo.com, or Bradley Joseph, Senior Manager, Investor Relations and Communication, +1-269-686-3373, bradley.joseph@perrigo.com
Web Site: http://www.perrigo.com