ALLEGAN, Mich., Nov. 7, 2012 /PRNewswire/ -- Perrigo Company (Nasdaq: PRGO; TASE: PRGO) today announced results for its first quarter ended September 29, 2012.
(Logo: http://photos.prnewswire.com/prnh/20120301/DE62255LOGO )
Perrigo's Chairman and CEO Joseph C. Papa commented, "We have started fiscal 2013 well, delivering record first quarter revenue and adjusted earnings. We also delivered all-time record adjusted gross and operating margins. Store brand OTC market share continues to grow. Our Consumer Healthcare segment's revenue grew 9.4% from a record first quarter last year. Our Rx segment continued its excellent performance, which was driven by the acquisition of Paddock Labs, new product sales and strong organic Rx results, combined with our continued focus on quality and R&D. Clearly we are focused on the results from our Nutritionals segment and the team has an action plan in place for the rest of the year. We believe our value proposition continues to resonate well with consumers."
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 Condensed Consolidated Statements of Income, Balance Sheets and Cash Flows.
|
Perrigo Company | |||
|
Fiscal 2013 |
Fiscal 2012 |
||
|
First Quarter Ended |
First Quarter Ended |
YoY | |
|
9/29/2012 |
9/24/2011 |
% Change | |
|
Net Sales |
$769,810 |
$725,295 |
6.1% |
|
Reported Net Income |
$105,580 |
$70,458 |
49.8% |
|
Adjusted Net Income |
$119,467 |
$103,320 |
15.6% |
|
Reported Diluted EPS |
$1.12 |
$0.75 |
49.3% |
|
Adjusted Diluted EPS |
$1.27 |
$1.10 |
15.5% |
|
Diluted Shares |
94,335 |
93,953 |
0.4% |
First Quarter Results
Net sales in the quarter were $770 million, an increase of 6% over the first quarter of fiscal 2012, driven primarily by $28 million attributable to the Paddock Laboratories, Inc. ("Paddock") and CanAm Care, LLC ("CanAm") acquisitions and new product sales of $26 million, partially offset by decreases in sales of certain existing products in the Nutritionals and API segments and $5 million due to unfavorable changes in foreign currency exchange rates. Excluding charges as outlined in Table I at the end of this release, first quarter fiscal 2013 adjusted net income increased 16% to $119 million, or $1.27 per share. Reported net income increased 50% to $106 million, or $1.12 per diluted share, due primarily to $0.21 per diluted share in acquisition-related costs in the first quarter of fiscal 2012.
Consumer Healthcare
|
Consumer Healthcare Segment | |||
|
Fiscal 2013 |
Fiscal 2012 |
||
|
First Quarter Ended |
First Quarter Ended |
YoY | |
|
9/29/2012 |
9/24/2011 |
% Change | |
|
Net Sales |
$450,416 |
$411,681 |
9.4% |
|
Reported Gross Profit |
$145,835 |
$129,358 |
12.7% |
|
Adjusted Gross Profit |
$146,850 |
$130,380 |
12.6% |
|
Reported Operating Income |
$79,288 |
$69,189 |
14.6% |
|
Adjusted Operating Income |
$81,551 |
$71,433 |
14.2% |
|
Reported Gross Margin |
32.4% |
31.4% |
+100 bps |
|
Adjusted Gross Margin |
32.6% |
31.7% |
+90 bps |
|
Reported Operating Margin |
17.6% |
16.8% |
+80 bps |
|
Adjusted Operating Margin |
18.1% |
17.4% |
+70 bps |
Consumer Healthcare segment net sales increased 9% to $450 million due to an increase in sales of existing products of $36 million (contract, cough/cold and smoking cessation categories), new product sales of $13 million (gastrointestinal, cough/cold and dermatological categories) and $9 million in incremental sales attributable to the acquisition of CanAm. These combined increases were partially offset by a decline of $17 million in sales of existing products (analgesics and feminine hygiene categories) and a decline of $4 million due to discontinued products.
Adjusted gross and operating margins expanded 90 and 70 basis points, respectively, due to new products, product mix and cost controls in the Company's manufacturing plants.
Nutritionals
|
Nutritionals Segment | |||
|
Fiscal 2013 |
Fiscal 2012 |
||
|
First Quarter Ended |
First Quarter Ended |
YoY | |
|
9/29/2012 |
9/24/2011 |
% Change | |
|
Net Sales |
$103,423 |
$119,861 |
-13.7% |
|
Reported Gross Profit |
$25,835 |
$29,569 |
-12.6% |
|
Adjusted Gross Profit |
$28,885 |
$35,418 |
-18.4% |
|
Reported Operating Income |
$3,883 |
$7,241 |
-46.4% |
|
Adjusted Operating Income |
$11,183 |
$16,705 |
-33.1% |
|
Reported Gross Margin |
25.0% |
24.7% |
+30 bps |
|
Adjusted Gross Margin |
27.9% |
29.5% |
-160 bps |
|
Reported Operating Margin |
3.8% |
6.0% |
-220 bps |
|
Adjusted Operating Margin |
10.8% |
13.9% |
-310 bps |
The Nutritionals segment reported first quarter net sales of $103 million, compared with $120 million a year ago as existing product sales declined $20 million, partially offset by new product sales of $3 million (infant formula category). The decrease in sales was due primarily to a decline in existing product sales in the vitamin, minerals and dietary supplements ("VMS") category driven by increased competition and increased retail shipments of infant formula placed in the fourth quarter of fiscal 2012 in advance of the planned July 1st shutdown of the Company's Vermont Plant to perform an SAP conversion and prepare for the installation of a new packaging line. Reported and adjusted gross profit and margin were impacted by relatively lower volumes in infant formula and VMS, along with increased inventory costs.
Operating income and margin were impacted by higher combined research and development and distribution, selling, general and administration expenses as a percent to net sales, though they were lower on a dollar basis, year-over-year.
Rx Pharmaceuticals
|
Rx Pharmaceuticals Segment | |||
|
Fiscal 2013 |
Fiscal 2012 |
||
|
First Quarter Ended |
First Quarter Ended |
YoY | |
|
9/29/2012 |
9/24/2011 |
% Change | |
|
Net Sales |
$162,942 |
$127,627 |
27.7% |
|
Reported Gross Profit |
$86,684 |
$41,460 |
109.1% |
|
Adjusted Gross Profit |
$95,086 |
$75,992 |
25.1% |
|
Reported Operating Income |
$68,504 |
$24,485 |
179.8% |
|
Adjusted Operating Income |
$76,906 |
$58,673 |
31.1% |
|
Reported Gross Margin |
53.2% |
32.5% |
+2,070 bps |
|
Adjusted Gross Margin |
58.4% |
59.5% |
-110 bps |
|
Reported Operating Margin |
42.0% |
19.2% |
+2,280 bps |
|
Adjusted Operating Margin |
47.2% |
46.0% |
+120 bps |
The Rx Pharmaceuticals segment first quarter net sales increased 28% to $163 million due primarily to incremental net sales of $19 million from the July 26, 2011 Paddock acquisition, new product sales of $8 million and improved pricing on select products.
Year-over-year percent changes in reported gross profit and operating income were impacted by the absence of a one-time charge of $27 million to cost of sales as a result of the step-up of inventory value related to the Paddock acquisition in the first quarter of fiscal 2012.
API
|
API Segment | |||
|
Fiscal 2013 |
Fiscal 2012 |
||
|
First Quarter Ended |
First Quarter Ended |
YoY | |
|
9/29/2012 |
9/24/2011 |
% Change | |
|
Net Sales |
$36,419 |
$47,644 |
-23.6% |
|
Reported Gross Profit |
$21,360 |
$21,608 |
-1.1% |
|
Adjusted Gross Profit |
$21,823 |
$22,129 |
-1.4% |
|
Reported Operating Income |
$13,319 |
$14,215 |
-6.3% |
|
Adjusted Operating Income |
$13,782 |
$14,736 |
-6.5% |
|
Reported Gross Margin |
58.7% |
45.4% |
+1,330 bps |
|
Adjusted Gross Margin |
59.9% |
46.4% |
+1,350 bps |
|
Reported Operating Margin |
36.6% |
29.8% |
+680 bps |
|
Adjusted Operating Margin |
37.8% |
30.9% |
+690 bps |
The API segment's net sales declined by 24% to $36 million due primarily to a decrease in existing product sales of approximately $17 million as a result of increased competition and pricing pressures on select products, along with a negative impact of $2 million due to changes in foreign currency, partially offset by $7 million related to the launch of a customer's product with 180-day exclusivity status.
Gross and operating margins were positively impacted by the product launch referred to above.
Other
The Other category reported decreased first quarter net sales of approximately $17 million, compared with $18 million a year ago, due primarily to the impact of unfavorable changes in foreign currency exchange rates.
Adjusted operating income was approximately $1 million, representing an increase in adjusted operating margin of 100 basis points from last year due to product mix.
Guidance
Chairman, President and CEO Joseph C. Papa concluded, "The strength of our diversified business model was evident this quarter. Margin expansion remains a top priority for the Company and we continue to make ROIC positive investments in operations and products. As we look forward to the rest of fiscal 2013, we continue to expect strong new product launches and further conversion of consumers to store brand."
The Company expects fiscal 2013 reported earnings to be between $4.71 and $4.91 per diluted share as compared to $4.18 in fiscal 2012. Excluding the charges outlined in Table III at the end of this release, the Company expects fiscal 2013 adjusted earnings to be between $5.45 and $5.65 per diluted share as compared to $4.99 in fiscal 2012 reflecting the acquisition of Sergeant's Pet Care Products, Inc., the realization of tax benefits and continued execution of the core businesses. This new range implies a year-over-year growth rate in adjusted earnings of 9% to 13% over fiscal 2012's adjusted earnings from continuing operations per diluted share.
The conference call will be available live via webcast to interested parties on the Perrigo website http://perrigo.investorroom.com/events-webcasts or by phone at 877-248-9413, International 973-582-2737, and reference ID# 46994711. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Wednesday, November 7, 2012 until midnight Friday, November 23, 2012. To listen to the replay, dial 855-859-2056, International 404-537-3406, and use access code 46994711.
From its beginnings as a packager of generic home remedies in 1887, Perrigo Company, based in Allegan, Michigan, has grown to become a leading global provider of quality, affordable healthcare products. The Company develops, manufactures and distributes over-the-counter ("OTC") and generic prescription ("Rx") pharmaceuticals, nutritional products and active pharmaceutical ingredients ("API") and is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. Perrigo's mission is to offer uncompromised "quality, affordable healthcare products", and it does so across a wide variety of product categories primarily in the United States, United Kingdom, Mexico, Israel and Australia, as well as certain other markets throughout the world, including Canada, China and Latin America. 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 30, 2012, 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) | |||
|
First Quarter | |||
|
2013 |
2012 | ||
|
Net sales |
$ 769,810 |
$ 725,295 | |
|
Cost of sales |
484,541 |
497,716 | |
|
Gross profit |
285,269 |
227,579 | |
|
Operating expenses |
|||
|
Distribution |
10,767 |
10,264 | |
|
Research and development |
27,395 |
19,638 | |
|
Selling and administration |
90,534 |
96,125 | |
|
Total operating expenses |
128,696 |
126,027 | |
|
Operating income |
156,573 |
101,552 | |
|
Interest, net |
15,853 |
12,570 | |
|
Other (income) expense, net |
(62) |
229 | |
|
Income before income taxes |
140,782 |
88,753 | |
|
Income tax expense |
35,202 |
18,295 | |
|
Net income |
$ 105,580 |
$ 70,458 | |
|
Earnings per share |
|||
|
Basic earnings per share |
$ 1.13 |
$ 0.76 | |
|
Diluted earnings per share |
$ 1.12 |
$ 0.75 | |
|
Weighted average shares outstanding |
|||
|
Basic |
93,607 |
92,900 | |
|
Diluted |
94,335 |
93,953 | |
|
Dividends declared per share |
$ 0.08 |
$ 0.07 | |
|
See accompanying notes to condensed consolidated financial statements. | |||
|
PERRIGO COMPANY | |||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
|
(in thousands) | |||
|
(unaudited) | |||
|
First Quarter | |||
|
2013 |
2012 | ||
|
Net Income |
$ 105,580 |
$ 70,458 | |
|
Other comprehensive income (loss): |
|||
|
Change in fair value of derivative financial instruments, net of tax |
1,462 |
(7,796) | |
|
Foreign currency translation adjustments |
5,424 |
(52,960) | |
|
Post-retirement liability adjustments, net of tax |
(41) |
(17) | |
|
Other comprehensive income (loss), net of tax |
6,845 |
(60,773) | |
|
Comprehensive income |
$ 112,425 |
$ 9,685 | |
|
See accompanying notes to condensed consolidated financial statements. | |||
|
PERRIGO COMPANY | |||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
|
(in thousands) | |||||
|
(unaudited) | |||||
|
September 29, |
June 30, |
September 24, | |||
|
2012 |
2012 |
2011 | |||
|
Assets |
|||||
|
Current assets |
|||||
|
Cash and cash equivalents |
$ 631,993 |
$ 602,489 |
$ 116,615 | ||
|
Accounts receivable, net |
584,008 |
572,582 |
521,263 | ||
|
Inventories |
598,825 |
547,455 |
563,257 | ||
|
Current deferred income taxes |
45,781 |
45,738 |
50,276 | ||
|
Income taxes refundable |
4,252 |
1,047 |
8,891 | ||
|
Prepaid expenses and other current assets |
35,872 |
26,610 |
38,789 | ||
|
Total current assets |
1,900,731 |
1,795,921 |
1,299,091 | ||
|
Property and equipment |
1,135,502 |
1,118,837 |
1,037,270 | ||
|
Less accumulated depreciation |
(555,241) |
(540,487) |
(504,389) | ||
|
580,261 |
578,350 |
532,881 | |||
|
Goodwill and other indefinite-lived intangible assets |
822,359 |
820,122 |
812,924 | ||
|
Other intangible assets, net |
711,104 |
729,253 |
771,677 | ||
|
Non-current deferred income taxes |
14,627 |
13,444 |
13,479 | ||
|
Other non-current assets |
88,348 |
86,957 |
84,035 | ||
|
$ 4,117,430 |
$ 4,024,047 |
$ 3,514,087 | |||
|
Liabilities and Shareholders' Equity |
|||||
|
Current liabilities |
|||||
|
Accounts payable |
$ 306,972 |
$ 317,341 |
$ 303,549 | ||
|
Short-term debt |
1,609 |
90 |
3,750 | ||
|
Payroll and related taxes |
57,864 |
89,934 |
72,106 | ||
|
Accrued customer programs |
122,495 |
116,055 |
112,592 | ||
|
Accrued liabilities |
79,756 |
76,406 |
83,374 | ||
|
Accrued income taxes |
21,228 |
12,905 |
6,677 | ||
|
Current portion of long-term debt |
40,000 |
40,000 |
40,000 | ||
|
Total current liabilities |
629,924 |
652,731 |
622,048 | ||
|
Non-current liabilities |
|||||
|
Long-term debt, less current portion |
1,329,827 |
1,329,235 |
1,155,787 | ||
|
Non-current deferred income taxes |
26,297 |
24,126 |
9,604 | ||
|
Other non-current liabilities |
166,064 |
165,310 |
182,207 | ||
|
Total non-current liabilities |
1,522,188 |
1,518,671 |
1,347,598 | ||
|
Shareholders' Equity |
|||||
|
Controlling interest: |
|||||
|
Preferred stock, without par value, 10,000 shares authorized |
- |
- |
- | ||
|
Common stock, without par value, 200,000 shares authorized |
512,658 |
504,708 |
478,035 | ||
|
Accumulated other comprehensive income |
46,249 |
39,404 |
66,277 | ||
|
Retained earnings |
1,404,977 |
1,306,925 |
998,256 | ||
|
1,963,884 |
1,851,037 |
1,542,568 | |||
|
Noncontrolling interest |
1,434 |
1,608 |
1,873 | ||
|
Total shareholders' equity |
1,965,318 |
1,852,645 |
1,544,441 | ||
|
$ 4,117,430 |
$ 4,024,047 |
$ 3,514,087 | |||
|
Supplemental Disclosures of Balance Sheet Information |
|||||
|
Allowance for doubtful accounts |
$ 2,224 |
$ 2,556 |
$ 9,617 | ||
|
Working capital |
$ 1,270,807 |
$ 1,143,190 |
$ 677,043 | ||
|
Preferred stock, shares issued and outstanding |
- |
- |
- | ||
|
Common stock, shares issued and outstanding |
93,840 |
93,484 |
93,189 | ||
|
See accompanying notes to condensed consolidated financial statements. | |||||
|
PERRIGO COMPANY | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
|
(in thousands) | ||||
|
(unaudited) | ||||
|
First Quarter | ||||
|
2013 |
2012 | |||
|
Cash Flows (For) From Operating Activities |
||||
|
Net income |
$ 105,580 |
$ 70,458 | ||
|
Adjustments to derive cash flows |
||||
|
Gain on sale of pipeline development projects |
- |
(3,500) | ||
|
Depreciation and amortization |
33,424 |
34,720 | ||
|
Share-based compensation |
4,772 |
3,935 | ||
|
Income tax benefit from exercise of stock options |
2,068 |
2,125 | ||
|
Excess tax benefit of stock transactions |
(13,342) |
(10,578) | ||
|
Deferred income taxes |
(3,483) |
(3,084) | ||
|
Subtotal |
129,019 |
94,076 | ||
|
Changes in operating assets and liabilities, net of business acquisition |
||||
|
Accounts receivable |
(6,682) |
8,581 | ||
|
Inventories |
(48,110) |
(7,156) | ||
|
Accounts payable |
(12,574) |
(47,249) | ||
|
Payroll and related taxes |
(32,298) |
(10,681) | ||
|
Accrued customer programs |
6,440 |
(5,708) | ||
|
Accrued liabilities |
2,713 |
17,678 | ||
|
Accrued income taxes |
15,674 |
(878) | ||
|
Other |
(9,327) |
5,484 | ||
|
Subtotal |
(84,164) |
(39,929) | ||
|
Net cash from operating activities |
44,855 |
54,147 | ||
|
Cash Flows (For) From Investing Activities |
||||
|
Acquisition of business, net of cash acquired |
- |
(547,052) | ||
|
Proceeds from sale of intangible assets and pipeline development projects |
- |
10,500 | ||
|
Additions to property and equipment |
(14,804) |
(18,953) | ||
|
Other |
- |
(250) | ||
|
Net cash for investing activities |
(14,804) |
(555,755) | ||
|
Cash Flows (For) From Financing Activities |
||||
|
Borrowings of short-term debt, net |
1,519 |
980 | ||
|
Net borrowings under accounts receivable securitization program |
- |
55,000 | ||
|
Borrowings of long-term debt |
592 |
250,787 | ||
|
Deferred financing fees |
- |
(2,468) | ||
|
Excess tax benefit of stock transactions |
13,342 |
10,578 | ||
|
Issuance of common stock |
4,063 |
5,884 | ||
|
Repurchase of common stock |
(12,159) |
(7,899) | ||
|
Cash dividends |
(7,528) |
(6,535) | ||
|
Net cash (for) from financing activities |
(171) |
306,327 | ||
|
Effect of exchange rate changes on cash |
(376) |
1,792 | ||
|
Net increase (decrease) in cash and cash equivalents |
29,504 |
(193,489) | ||
|
Cash and cash equivalents, beginning of period |
602,489 |
310,104 | ||
|
Cash and cash equivalents, end of period |
$ 631,993 |
$ 116,615 | ||
|
Supplemental Disclosures of Cash Flow Information |
||||
|
Cash paid/received during the period for: |
||||
|
Interest paid |
$ 2,096 |
$ 3,240 | ||
|
Interest received |
$ 1,276 |
$ 1,127 | ||
|
Income taxes paid |
$ 20,514 |
$ 9,151 | ||
|
Income taxes refunded |
$ 526 |
$ 768 | ||
|
See accompanying notes to condensed consolidated financial statements. | ||||
|
Table I | |||||||||||||||
|
PERRIGO COMPANY | |||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
|
(in thousands, except per share amounts) | |||||||||||||||
|
(unaudited) | |||||||||||||||
|
Three Months Ended |
|||||||||||||||
|
Consolidated |
September 29, 2012 |
September 24, 2011 |
% Change | ||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted | ||||||||
|
Net sales |
$ 769,810 |
$ - |
$ 769,810 |
$ 725,295 |
$ - |
$ 725,295 |
6 % |
6 % | |||||||
|
Cost of sales |
484,541 |
13,323 |
(a) |
471,218 |
497,716 |
42,362 |
(a,d) |
455,354 |
-3 % |
3 % | |||||
|
Gross profit |
285,269 |
13,323 |
298,592 |
227,579 |
42,362 |
269,941 |
25 % |
11 % | |||||||
|
Operating expenses |
|||||||||||||||
|
Distribution |
10,767 |
- |
10,767 |
10,264 |
- |
10,264 |
5 % |
5 % | |||||||
|
Research and development |
27,395 |
- |
27,395 |
19,638 |
(3,500) |
(e) |
23,138 |
39 % |
18 % | ||||||
|
Selling and administration |
90,534 |
7,375 |
(a,b) |
83,159 |
96,125 |
13,620 |
(a,f) |
82,505 |
-6 % |
1 % | |||||
|
Total operating expenses |
128,696 |
7,375 |
121,321 |
126,027 |
10,120 |
115,907 |
2 % |
5 % | |||||||
|
Operating income |
156,573 |
20,698 |
177,271 |
101,552 |
52,482 |
154,034 |
54 % |
15 % | |||||||
|
Interest, net |
15,853 |
- |
15,853 |
12,570 |
- |
12,570 |
26 % |
26 % | |||||||
|
Other (income) expense, net |
(62) |
- |
(62) |
229 |
- |
229 |
- |
- | |||||||
|
Income before income taxes |
140,782 |
20,698 |
161,480 |
88,753 |
52,482 |
141,235 |
59 % |
14 % | |||||||
|
Income tax expense |
35,202 |
6,811 |
(c) |
42,013 |
18,295 |
19,620 |
(c) |
37,915 |
92 % |
11 % | |||||
|
Net income |
$ 105,580 |
$ 13,887 |
$ 119,467 |
$ 70,458 |
$ 32,862 |
$ 103,320 |
50 % |
16 % | |||||||
|
Diluted earnings per share |
$ 1.12 |
$ 1.27 |
$ 0.75 |
$ 1.10 |
49 % |
15 % | |||||||||
|
Diluted weighted average shares outstanding |
94,335 |
94,335 |
93,953 |
93,953 |
|||||||||||
|
Selected ratios as a percentage of net sales |
|||||||||||||||
|
Gross profit |
37.1 % |
38.8 % |
31.4 % |
37.2 % |
|||||||||||
|
Operating expenses |
16.7 % |
15.8 % |
17.4 % |
16.0 % |
|||||||||||
|
Operating income |
20.3 % |
23.0 % |
14.0 % |
21.2 % |
|||||||||||
|
(a) Deal-related amortization |
|||||||||||||||
|
(b) Acquisition costs of $1,877 |
|||||||||||||||
|
(c) Total tax effect for non-GAAP pre-tax adjustments |
|||||||||||||||
|
(d) Inventory step-up of $27,179 |
|||||||||||||||
|
(e) Proceeds from sale of pipeline development projects |
|||||||||||||||
|
(f) Acquisition-related and severance costs of $8,782 |
|||||||||||||||
|
Table II | |||||||||||||||
|
PERRIGO COMPANY | |||||||||||||||
|
REPORTABLE SEGMENTS | |||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
|
(in thousands) | |||||||||||||||
|
(unaudited) | |||||||||||||||
|
Three Months Ended |
|||||||||||||||
|
Consumer Healthcare |
September 29, 2012 |
September 24, 2011 |
% Change | ||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted | ||||||||
|
Net sales |
$ 450,416 |
$ - |
$ 450,416 |
$ 411,681 |
$ - |
$ 411,681 |
9 % |
9 % | |||||||
|
Cost of sales |
304,581 |
1,015 |
(a) |
303,566 |
282,323 |
1,022 |
(a) |
281,301 |
8 % |
8 % | |||||
|
Gross profit |
145,835 |
1,015 |
146,850 |
129,358 |
1,022 |
130,380 |
13 % |
13 % | |||||||
|
Operating expenses |
66,547 |
1,248 |
(a) |
65,299 |
60,169 |
1,222 |
(a) |
58,947 |
11 % |
11 % | |||||
|
Operating income |
$ 79,288 |
$ 2,263 |
$ 81,551 |
$ 69,189 |
$ 2,244 |
$ 71,433 |
15 % |
14 % | |||||||
|
Selected ratios as a percentage of net sales |
|||||||||||||||
|
Gross profit |
32.4 % |
32.6 % |
31.4 % |
31.7 % |
|||||||||||
|
Operating expenses |
14.8 % |
14.5 % |
14.6 % |
14.3 % |
|||||||||||
|
Operating income |
17.6 % |
18.1 % |
16.8 % |
17.4 % |
|||||||||||
|
Three Months Ended |
|||||||||||||||
|
Nutritionals |
September 29, 2012 |
September 24, 2011 |
% Change | ||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted | ||||||||
|
Net sales |
$ 103,423 |
$ - |
$ 103,423 |
$ 119,861 |
$ - |
$ 119,861 |
-14 % |
-14 % | |||||||
|
Cost of sales |
77,588 |
3,050 |
(a) |
74,538 |
90,292 |
5,849 |
(a) |
84,443 |
-14 % |
-12 % | |||||
|
Gross profit |
25,835 |
3,050 |
28,885 |
29,569 |
5,849 |
35,418 |
-13 % |
-18 % | |||||||
|
Operating expenses |
21,952 |
4,250 |
(a) |
17,702 |
22,328 |
3,615 |
(a) |
18,713 |
-2 % |
-5 % | |||||
|
Operating income |
$ 3,883 |
$ 7,300 |
$ 11,183 |
$ 7,241 |
$ 9,464 |
$ 16,705 |
-46 % |
-33 % | |||||||
|
Selected ratios as a percentage of net sales |
|||||||||||||||
|
Gross profit |
25.0 % |
27.9 % |
24.7 % |
29.5 % |
|||||||||||
|
Operating expenses |
21.2 % |
17.1 % |
18.6 % |
15.6 % |
|||||||||||
|
Operating income |
3.8 % |
10.8 % |
6.0 % |
13.9 % |
|||||||||||
|
Three Months Ended |
|||||||||||||||
|
Rx Pharmaceuticals |
September 29, 2012 |
September 24, 2011 |
% Change | ||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted | ||||||||
|
Net sales |
$ 162,942 |
$ - |
$ 162,942 |
$ 127,627 |
$ - |
$ 127,627 |
28 % |
28 % | |||||||
|
Cost of sales |
76,258 |
8,402 |
(a) |
67,856 |
86,167 |
34,532 |
(a,b) |
51,635 |
-11 % |
31 % | |||||
|
Gross profit |
86,684 |
8,402 |
95,086 |
41,460 |
34,532 |
75,992 |
109 % |
25 % | |||||||
|
Operating expenses |
18,180 |
- |
18,180 |
16,975 |
(344) |
(c,d) |
17,319 |
7 % |
5 % | ||||||
|
Operating income |
$ 68,504 |
$ 8,402 |
$ 76,906 |
$ 24,485 |
$ 34,188 |
$ 58,673 |
180 % |
31 % | |||||||
|
Selected ratios as a percentage of net sales |
|||||||||||||||
|
Gross profit |
53.2 % |
58.4 % |
32.5 % |
59.5 % |
|||||||||||
|
Operating expenses |
11.2 % |
11.2 % |
13.3 % |
13.6 % |
|||||||||||
|
Operating income |
42.0 % |
47.2 % |
19.2 % |
46.0 % |
|||||||||||
|
(a) Deal-related amortization |
|||||||||||||||
|
(b) Inventory step-up of $27,179 |
|||||||||||||||
|
(c) Proceeds of $3,500 from sale of pipeline development projects |
|||||||||||||||
|
(d) Severance costs of $3,156 |
|||||||||||||||
|
Table II (Continued) | |||||||||||||||
|
PERRIGO COMPANY | |||||||||||||||
|
REPORTABLE SEGMENTS | |||||||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
|
(in thousands) | |||||||||||||||
|
(unaudited) | |||||||||||||||
|
Three Months Ended |
|||||||||||||||
|
API |
September 29, 2012 |
September 24, 2011 |
% Change | ||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted | ||||||||
|
Net sales |
$ 36,419 |
$ - |
$ 36,419 |
$ 47,644 |
$ - |
$ 47,644 |
-24 % |
-24 % | |||||||
|
Cost of sales |
15,059 |
463 |
(a) |
14,596 |
26,036 |
521 |
(a) |
25,515 |
-42 % |
-43 % | |||||
|
Gross profit |
21,360 |
463 |
21,823 |
21,608 |
521 |
22,129 |
-1 % |
-1 % | |||||||
|
Operating expenses |
8,041 |
- |
8,041 |
7,393 |
- |
7,393 |
9 % |
9 % | |||||||
|
Operating income |
$ 13,319 |
$ 463 |
$ 13,782 |
$ 14,215 |
$ 521 |
$ 14,736 |
-6 % |
-6 % | |||||||
|
Selected ratios as a percentage of net sales |
|||||||||||||||
|
Gross profit |
58.7 % |
59.9 % |
45.4 % |
46.4 % |
|||||||||||
|
Operating expenses |
22.1 % |
22.1 % |
15.5 % |
15.5 % |
|||||||||||
|
Operating income |
36.6 % |
37.8 % |
29.8 % |
30.9 % |
|||||||||||
|
Three Months Ended |
|||||||||||||||
|
Other |
September 29, 2012 |
September 24, 2011 |
% Change | ||||||||||||
|
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
Non-GAAP Adjustments |
As Adjusted |
GAAP |
As Adjusted | ||||||||
|
Net sales |
$ 16,610 |
$ - |
$ 16,610 |
$ 18,482 |
$ - |
$ 18,482 |
-10 % |
-10 % | |||||||
|
Cost of sales |
11,055 |
393 |
(a) |
10,662 |
12,898 |
437 |
(a) |
12,461 |
-14 % |
-14 % | |||||
|
Gross profit |
5,555 |
393 |
5,948 |
5,584 |
437 |
6,021 |
-1 % |
-1 % | |||||||
|
Operating expenses |
5,130 |
- |
5,130 |
5,299 |
- |
5,299 |
-3 % |
-3 % | |||||||
|
Operating income |
$ 425 |
$ 393 |
$ 818 |
$ 285 |
$ 437 |
$ 722 |
49 % |
13 % | |||||||
|
Selected ratios as a percentage of net sales |
|||||||||||||||
|
Gross profit |
33.4 % |
35.8 % |
30.2 % |
32.6 % |
|||||||||||
|
Operating expenses |
30.9 % |
30.9 % |
28.7 % |
28.7 % |
|||||||||||
|
Operating income |
2.6 % |
4.9 % |
1.5 % |
3.9 % |
|||||||||||
|
(a) Deal-related amortization |
|||||||||||||||
|
(b) Inventory step-up of $27,179 |
|||||||||||||||
|
(c) Proceeds of $3,500 from sale of pipeline development projects |
|||||||||||||||
|
(d) Severance costs of $3,156 |
|||||||||||||||
|
Table III | ||||
|
PERRIGO COMPANY | ||||
|
FY 2013 GUIDANCE AND FY 2012 EPS | ||||
|
RECONCILIATION OF NON-GAAP MEASURES | ||||
|
(unaudited) | ||||
|
Full Year | ||||
|
Fiscal 2013 Guidance | ||||
|
FY13 reported diluted EPS range |
$4.71 - $4.91 | |||
|
Deal-related amortization (1) |
0.62 | |||
|
Charge associated with inventory step-up |
0.11 | |||
|
Charges associated with acquisition costs |
0.01 | |||
|
FY13 adjusted diluted EPS range |
$5.45 - $5.65 | |||
|
Fiscal 2012* | ||||
|
FY12 reported diluted EPS from continuing operations |
$4.18 | |||
|
Deal-related amortization (1) |
0.523 | |||
|
Charge associated with inventory step-up |
0.181 | |||
|
Charges associated with acquisition-related and severance costs |
0.062 | |||
|
Charges associated with restructuring |
0.061 | |||
|
Net charge associated with acquired R&D and proceeds from sale of IPR&D projects |
0.012 | |||
|
Earnings associated with sale of pipeline development projects |
(0.026) | |||
|
FY12 adjusted diluted EPS from continuing operations |
$4.99 | |||
|
(1) Amortization of acquired intangible assets related to business combinations and asset acquisitions | ||||
|
*All information based on continuing operations. |
||||
|
Table IV | ||||||||||
|
PERRIGO COMPANY | ||||||||||
|
REPORTABLE SEGMENTS | ||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
|
(in thousands) | ||||||||||
|
(unaudited) | ||||||||||
|
Q1 FY12* |
Q2 FY12* |
Q3 FY12* |
Q4 FY12* |
FY 2012* | ||||||
|
Consumer Healthcare |
||||||||||
|
Net sales |
$ 411,681 |
$ 471,277 |
$ 448,848 |
$ 483,982 |
$ 1,815,788 | |||||
|
Reported gross profit |
$ 129,358 |
$ 148,813 |
$ 140,417 |
$ 153,169 |
$ 571,757 | |||||
|
Deal-related amortization(1) |
1,022 |
1,006 |
1,010 |
1,008 |
4,046 | |||||
|
Adjusted gross profit |
$ 130,380 |
$ 149,819 |
$ 141,427 |
$ 154,177 |
$ 575,803 | |||||
|
Adjusted gross profit % |
31.7% |
31.8% |
31.5% |
31.9% |
31.7% | |||||
|
Reported operating expenses |
$ 60,169 |
$ 66,563 |
$ 61,034 |
$ 68,689 |
$ 256,455 | |||||
|
Deal-related amortization(1) |
(1,222) |
(1,214) |
(1,411) |
(1,419) |
(5,266) | |||||
|
Adjusted operating expenses |
$ 58,947 |
$ 65,349 |
$ 59,623 |
$ 67,270 |
$ 251,189 | |||||
|
Adjusted operating expenses % |
14.3% |
13.9% |
13.3% |
13.9% |
13.8% | |||||
|
Reported operating income |
$ 69,189 |
$ 82,250 |
$ 79,383 |
$ 84,480 |
$ 315,302 | |||||
|
Deal-related amortization(1) |
2,244 |
2,220 |
2,421 |
2,427 |
9,312 | |||||
|
Adjusted operating income |
$ 71,433 |
$ 84,470 |
$ 81,804 |
$ 86,907 |
$ 324,614 | |||||
|
Adjusted operating income % |
17.4% |
17.9% |
18.2% |
18.0% |
17.9% | |||||
|
Nutritionals |
||||||||||
|
Net sales |
$ 119,861 |
$ 128,147 |
$ 117,683 |
$ 135,335 |
$ 501,026 | |||||
|
Reported gross profit |
$ 29,569 |
$ 28,230 |
$ 30,350 |
$ 37,196 |
$ 125,345 | |||||
|
Deal-related amortization(1) |
5,849 |
3,022 |
3,021 |
3,021 |
14,913 | |||||
|
Adjusted gross profit |
$ 35,418 |
$ 31,252 |
$ 33,371 |
$ 40,217 |
$ 140,258 | |||||
|
Adjusted gross profit % |
29.5% |
24.4% |
28.4% |
29.7% |
28.0% | |||||
|
Reported operating expenses |
$ 22,328 |
$ 23,677 |
$ 28,505 |
$ 25,387 |
$ 99,897 | |||||
|
Deal-related amortization(1) |
(3,615) |
(3,615) |
(3,616) |
(3,615) |
(14,461) | |||||
|
Restructuring charges |
- |
- |
(7,081) |
(1,674) |
(8,755) | |||||
|
Adjusted operating expenses |
$ 18,713 |
$ 20,062 |
$ 17,808 |
$ 20,098 |
$ 76,681 | |||||
|
Adjusted operating expenses % |
15.6% |
15.7% |
15.1% |
14.9% |
15.3% | |||||
|
Reported operating income |
$ 7,241 |
$ 4,553 |
$ 1,845 |
$ 11,809 |
$ 25,448 | |||||
|
Deal-related amortization(1) |
9,464 |
6,637 |
6,637 |
6,636 |
29,374 | |||||
|
Restructuring charges |
- |
- |
7,081 |
1,674 |
8,755 | |||||
|
Adjusted operating income |
$ 16,705 |
$ 11,190 |
$ 15,563 |
$ 20,119 |
$ 63,577 | |||||
|
Adjusted operating income % |
13.9% |
8.7% |
13.2% |
14.9% |
12.7% | |||||
|
Rx Pharmaceuticals |
||||||||||
|
Net sales |
$ 127,627 |
$ 177,196 |
$ 155,591 |
$ 156,975 |
$ 617,389 | |||||
|
Reported gross profit |
$ 41,460 |
$ 91,380 |
$ 83,331 |
$ 72,450 |
$ 288,621 | |||||
|
Deal-related amortization(1) |
7,353 |
7,969 |
8,574 |
8,532 |
32,428 | |||||
|
Inventory step-up |
27,179 |
- |
- |
- |
27,179 | |||||
|
Adjusted gross profit |
$ 75,992 |
$ 99,349 |
$ 91,905 |
$ 80,982 |
$ 348,228 | |||||
|
Adjusted gross profit % |
59.5% |
56.1% |
59.1% |
51.6% |
56.4% | |||||
|
Reported operating expenses |
$ 16,975 |
$ 21,404 |
$ 16,076 |
$ 20,671 |
$ 75,126 | |||||
|
Acquisition-related costs |
(3,156) |
(599) |
- |
- |
(3,755) | |||||
|
Earnings associated with sale of IPR&D projects |
3,500 |
- |
- |
- |
3,500 | |||||
|
Write-off of in-process R&D |
- |
- |
- |
(750) |
(750) | |||||
|
Adjusted operating expenses |
$ 17,319 |
$ 20,805 |
$ 16,076 |
$ 19,921 |
$ 74,121 | |||||
|
Adjusted operating expenses % |
13.6% |
11.7% |
10.3% |
12.7% |
12.0% | |||||
|
Reported operating income |
$ 24,485 |
$ 69,976 |
$ 67,255 |
$ 51,779 |
$ 213,495 | |||||
|
Deal-related amortization(1) |
7,353 |
7,969 |
8,574 |
8,532 |
32,428 | |||||
|
Inventory step-up |
27,179 |
- |
- |
- |
27,179 | |||||
|
Acquisition-related costs |
3,156 |
599 |
- |
- |
3,755 | |||||
|
Earnings associated with sale of IPR&D projects |
(3,500) |
- |
- |
- |
(3,500) | |||||
|
Write-off of in-process R&D |
- |
- |
- |
750 |
750 | |||||
|
Adjusted operating income |
$ 58,673 |
$ 78,544 |
$ 75,829 |
$ 61,061 |
$ 274,107 | |||||
|
Adjusted operating income % |
46.0% |
44.3% |
48.7% |
38.9% |
44.4% | |||||
|
(1) Amortization of acquired intangible assets related to business combinations and asset acquisitions | ||||||||||
|
*All information based on continuing operations. | ||||||||||
|
Table IV (Continued) | ||||||||||
|
PERRIGO COMPANY | ||||||||||
|
REPORTABLE SEGMENTS | ||||||||||
|
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
|
(in thousands) | ||||||||||
|
(unaudited) | ||||||||||
|
Q1 FY12* |
Q2 FY12* |
Q3 FY12* |
Q4 FY12* |
FY 2012* | ||||||
|
API |
||||||||||
|
Net sales |
$ 47,644 |
$ 42,751 |
$ 36,952 |
$ 38,434 |
$ 165,781 | |||||
|
Reported gross profit |
$ 21,608 |
$ 20,150 |
$ 18,676 |
$ 25,674 |
$ 86,108 | |||||
|
Deal-related amortization (1) |
521 |
496 |
490 |
482 |
1,989 | |||||
|
Adjusted gross profit |
$ 22,129 |
$ 20,646 |
$ 19,166 |
$ 26,156 |
$ 88,097 | |||||
|
Adjusted gross profit % |
46.4% |
48.3% |
51.9% |
68.1% |
53.1% | |||||
|
Reported operating income |
$ 14,215 |
$ 11,692 |
$ 10,462 |
$ 17,512 |
$ 53,881 | |||||
|
Deal-related amortization (1) |
521 |
496 |
490 |
482 |
1,989 | |||||
|
Adjusted operating income |
$ 14,736 |
$ 12,188 |
$ 10,952 |
$ 17,994 |
$ 55,870 | |||||
|
Adjusted operating income % |
30.9% |
28.5% |
29.6% |
46.8% |
33.7% | |||||
|
Other |
||||||||||
|
Net sales |
$ 18,482 |
$ 18,798 |
$ 18,943 |
$ 17,041 |
$ 73,264 | |||||
|
Reported gross profit |
$ 5,584 |
$ 6,303 |
$ 6,498 |
$ 5,382 |
$ 23,767 | |||||
|
Deal-related amortization (1) |
437 |
438 |
410 |
403 |
1,688 | |||||
|
Adjusted gross profit |
$ 6,021 |
$ 6,741 |
$ 6,908 |
$ 5,785 |
$ 25,455 | |||||
|
Adjusted gross profit % |
32.6% |
35.9% |
36.5% |
33.9% |
34.7% | |||||
|
Reported operating income (loss) |
$ 285 |
$ 924 |
$ 846 |
$ (37) |
$ 2,018 | |||||
|
Deal-related amortization (1) |
437 |
438 |
410 |
403 |
1,688 | |||||
|
Adjusted operating income |
$ 722 |
$ 1,362 |
$ 1,256 |
$ 366 |
$ 3,706 | |||||
|
Adjusted operating income % |
3.9% |
7.2% |
6.6% |
2.1% |
5.1% | |||||
|
(1) Amortization of acquired intangible assets related to business combinations and asset acquisitions | ||||||||||
|
*All information based on continuing operations. | ||||||||||
SOURCE Perrigo Company