PerkinElmer, Inc.
May 4, 2017
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PerkinElmer Announces Financial Results for the First Quarter of 2017

WALTHAM, Mass.--(BUSINESS WIRE)-- PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the first quarter ended April 2, 2017.

The Company reported GAAP earnings per share from continuing operations of $0.33, as compared to $0.38 in the first quarter of 2016. GAAP revenue in the first quarter of 2017 was $514.1 million, as compared to $498.0 million in the first quarter of 2016. GAAP operating income from continuing operations for the first quarter of 2017 was $51.6 million, as compared to $60.6 million in the first quarter of 2016.

Adjusted earnings per share was $0.55, as compared to $0.50 in the first quarter of 2016. Adjusted revenue for the quarter was $514.3 million, as compared to $498.2 million in the first quarter of 2016. Adjusted operating income for the first quarter of 2017 was $84.1 million, as compared to $81.2 million for the same period a year ago. Adjusted operating profit margin was 16.3% as a percentage of adjusted revenue, flat as compared to the same period a year ago. Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

"We are encouraged by our first quarter performance as we continue to see the benefits from our investments in new product innovations and better operational execution," said Robert Friel, chairman and chief executive officer of PerkinElmer. "We believe these efforts coupled with our leading positions in attractive market segments will allow us to deliver on our commitments in 2017 and beyond."

Cash Flow

For the first quarter of 2017, GAAP operating cash flow from continuing operations was $41.2 million, as compared to $26.3 million in the comparable period of 2016.

Financial Overview by Reporting Segment for the First Quarter of 2017

Discovery & Analytical Solutions

Diagnostics

Raises Financial Guidance - Full Year 2017

For the full year 2017, the Company now forecasts GAAP earnings per share from continuing operations in the range of $2.16 to $2.26 and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $2.80 to $2.90.

Conference Call Information

The Company will discuss its first quarter results and its outlook for business trends in a conference call on May 4, 2017 at 5:00 p.m. Eastern Time. To access the call, please dial (541) 797-2422 prior to the scheduled conference call time and provide the access code 92626868.

A live audio webcast of the call will be available on the Investor section of the Company's Web site, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company's Web site for a two week period beginning approximately two hours after the call.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

Factors Affecting Future Performance

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities and divestitures. Words such as "believes," "intends," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (5) our failure to adequately protect our intellectual property; (6) the loss of any of our licenses or licensed rights; (7) our ability to compete effectively; (8) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (9) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (10) disruptions in the supply of raw materials and supplies; (11) the manufacture and sale of products exposing us to product liability claims; (12) our failure to maintain compliance with applicable government regulations; (13) regulatory changes; (14) our failure to comply with healthcare industry regulations; (15) economic, political and other risks associated with foreign operations; (16) our ability to retain key personnel; (17) significant disruption in our information technology systems; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) the approval of the Brexit Referendum in the United Kingdom; (21) our ability to realize the full value of our intangible assets; (22) significant fluctuations in our stock price; (23) reduction or elimination of dividends on our common stock; and (24) other factors which we describe under the caption "Risk Factors" in our most recent annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on innovating for a healthier world. The Company reported revenue of approximately $2.1 billion in 2016, has about 9,000 employees serving customers in more than 150 countries, and is a component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.

           
PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INCOME STATEMENTS (1)
 
 
Three Months Ended
(In thousands, except per share data) April 2, 2017 April 3, 2016
 
 
Revenue $ 514,115 $ 498,016
 
Cost of revenue 274,504 262,930
Selling, general and administrative expenses 145,093 144,538
Research and development expenses 33,288 29,971
Restructuring and contract termination charges, net   9,651     -  
 
Operating income from continuing operations 51,579 60,577
 
Interest income (220 ) (110 )
Interest expense 10,864 9,841
Other expense, net   952     1,355  
 
Income from continuing operations, before income taxes 39,983 49,491
 
Provision for income taxes   3,921     7,747  
 
Income from continuing operations 36,062 41,744
 
Income from discontinued operations, before income taxes 3,759 8,190
Loss on disposition of discontinued operations, before income taxes - (3 )
Provision for income taxes on discontinued operations and dispositions   1,218     2,465  
 
Income from discontinued operations and dispositions   2,541     5,722  
 
Net income $ 38,603   $ 47,466  
 
 
Diluted earnings per share:
Income from continuing operations $ 0.33 $ 0.38
 
Income from discontinued operations and dispositions   0.02     0.05  
 
Net income $ 0.35   $ 0.43  
 
 
Weighted average diluted shares of common stock outstanding 110,204 111,195
 
 
ABOVE PREPARED IN ACCORDANCE WITH GAAP
 
                 
Additional Supplemental Information (1):
(per share, continuing operations)
 
GAAP EPS from continuing operations $ 0.33 $ 0.38
Amortization of intangible assets 0.15 0.17
Purchase accounting adjustments 0.03 0.01
Acquisition and divesiture-related expenses 0.03 0.00
Mark to market on postretirement benefits - (0.00 )
Restructuring and contract termination charges 0.09 -
Tax on above items   (0.08 )   (0.06 )
Adjusted EPS $ 0.55   $ 0.50  
 
(1) amounts may not sum due to rounding                
 

             
PerkinElmer, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)
       
 
Three Months Ended
(In thousands, except percentages) April 2, 2017 April 3, 2016
 
 
DAS Reported revenue

 

$

361,760

 

$

356,447

 
Reported operating income from continued operations 30,579 39,469
OP% 8.5 % 11.1 %
Amortization of intangible assets 12,250 14,070
Purchase accounting adjustments 16 146
Acquisition and divestiture-related expenses 238 218
Restructuring and contract termination charges, net   7,987     -  
Adjusted operating income   51,070     53,903  
Adjusted OP% 14.1 % 15.1 %
 
Diagnostics Reported revenue 152,355 141,569
Purchase accounting adjustments   185     175  
Adjusted revenue   152,540     141,744  
 
Reported operating income from continued operations 33,410 33,774
OP% 21.9 % 23.9 %
Amortization of intangible assets 4,796 4,502
Purchase accounting adjustments 3,187 1,513
Acquisition and divestiture-related expenses 2,358 148
Restructuring and contract termination charges, net   1,664     -  
Adjusted operating income   45,415     39,937  
Adjusted OP% 29.8 % 28.2 %
 
Corporate Reported operating loss (12,410 ) (12,666 )
Mark to market on postretirement benefits   -     (3 )
Adjusted operating loss   (12,410 )   (12,669 )
 
 
Continuing Operations Reported revenue

 

$

514,115

 

$

498,016

Purchase accounting adjustments   185     175  
Adjusted revenue   514,300     498,191  
 
Reported operating income from continued operations 51,579 60,577
OP% 10.0 % 12.2 %
Amortization of intangible assets 17,046 18,572
Purchase accounting adjustments 3,203 1,659
Acquisition and divestiture-related expenses 2,596 366
Mark to market on postretirement benefits - (3 )
Restructuring and contract termination charges, net   9,651     -  
Adjusted operating income

 

$

84,075

 

 

$

81,171

 
Adjusted OP% 16.3 % 16.3 %
 
 

REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP

 

           
PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
(In thousands) April 2, 2017 January 1, 2017
 
Current assets:
Cash and cash equivalents $ 288,329 $ 359,265
Accounts receivable, net 411,084 425,588
Inventories 264,633 246,847
Other current assets 96,796 99,246
Current assets of discontinued operations   55,737     58,985  
Total current assets   1,116,579     1,189,931  
 
Property, plant and equipment:
At cost 449,306 427,903
Accumulated depreciation   (295,369 )   (282,409 )
Property, plant and equipment, net 153,937 145,494
Intangible assets, net 455,128 420,224
Goodwill 2,332,533 2,247,966
Other assets, net 215,996 204,679
Long-term assets of discontinued operations   66,328     68,389  
Total assets $ 4,340,501   $ 4,276,683  
 
Current liabilities:
Current portion of long-term debt $ 2,187 $ 1,172
Accounts payable 158,118 168,033
Short-term accrued restructuring and contract termination charges 11,530 7,479
Accrued expenses and other current liabilities 397,814 399,700
Current liabilities of discontinued operations   30,959     26,971  
Total current liabilities   600,608     603,355  
 
Long-term debt 1,052,677 1,045,254
Long-term liabilities 462,965 459,544
Long-term liabilities of discontinued operations   15,264     14,960  
Total liabilities   2,131,514     2,123,113  
 
Total stockholders' equity   2,208,987     2,153,570  
Total liabilities and stockholders' equity $ 4,340,501   $ 4,276,683  
 
 

PREPARED IN ACCORDANCE WITH GAAP

 

 
PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
           
 
Three Months Ended
April 2, 2017 April 3, 2016
(In thousands)
 
Operating activities:
Net income $ 38,603 $ 47,466
Income from discontinued operations and dispositions, net of income taxes   (2,541 )   (5,722 )
Income from continuing operations   36,062     41,744  
Adjustments to reconcile income from continuing operations
to net cash provided by continuing operations:
Stock-based compensation 4,926 3,846
Restructuring and contract termination charges, net 9,651 -
Depreciation and amortization 24,747 25,395
Change in fair value of contingent consideration 811 1,322
Amortization of deferred debt financing costs and accretion of discounts 585 356
Amortization of acquired inventory revaluation 2,176 131
Changes in assets and liabilities which provided (used) cash, excluding
effects from companies acquired:
Accounts receivable, net 25,093 16,747
Inventories (6,837 ) (16,959 )
Accounts payable (13,883 ) 1,613
Accrued expenses and other   (42,129 )   (47,908 )
Net cash provided by operating activities of continuing operations 41,202 26,287
Net cash provided by operating activities of discontinued operations   12,534     5,753  
Net cash provided by operating activities   53,736     32,040  
 
Investing activities:
Capital expenditures (5,981 ) (7,659 )
Changes in restricted cash balances 15,153 -
Proceeds from disposition of businesses - 1,000
Activity related to acquisitions, net of cash and cash equivalents acquired   (123,578 )   (10,484 )
Net cash used in investing activities of continuing operations (114,406 ) (17,143 )
Net cash used in investing activities of discontinued operations   (280 )   (149 )
Net cash used in investing activities   (114,686 )   (17,292 )
 
Financing Activities:
Payments on borrowings (145,950 ) (75,000 )
Proceeds from borrowings 146,952 183,000
Settlement of cash flow hedges (1,569 ) 2,630
Net proceeds (payments) on other credit facilities (287 ) (275 )
Payments for acquisition-related contingent consideration (8,940 ) (93 )
Proceeds from issuance of common stock under stock plans 4,627 1,238
Purchases of common stock (3,127 ) (151,159 )
Dividends paid   (7,673 )   (7,843 )
Net cash used in financing activities of continuing operations (15,967 ) (47,502 )
Net cash used in financing activities of discontinued operations   (214 )   (193 )
Net cash used in financing activities (16,181 ) (47,695 )
 
Effect of exchange rate changes on cash and cash equivalents   6,195     5,746  
 
Net decrease in cash and cash equivalents (70,936 ) (27,201 )
Cash and cash equivalents at beginning of period   359,265     237,932  
Cash and cash equivalents at end of period $ 288,329   $ 210,731  
 
 
PREPARED IN ACCORDANCE WITH GAAP
 

                         
PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
                         
(In millions, except per share data and percentages) PKI
Three Months Ended

April 2, 2017

April 3, 2016

 
Adjusted revenue:
Revenue $ 514.1 $ 498.0
Purchase accounting adjustments   0.2                   0.2          
Adjusted revenue $ 514.3                 $ 498.2          
 
Adjusted gross margin:
Gross margin $ 239.6 46.6 % $ 235.1 47.2 %
Amortization of intangible assets 7.0 1.4 % 8.2 1.6 %
Purchase accounting adjustments 2.4 0.5 % 0.3 0.1 %
Mark to market on postretirement benefits   -         0.0 %         (0.0 )       0.0 %
Adjusted gross margin $ 249.0         48.4 %       $ 243.6         48.9 %
 
Adjusted SG&A:
SG&A $ 145.1 28.2 % $ 144.5 29.0 %
Amortization of intangible assets (10.0 ) -2.0 % (10.2 ) -2.0 %
Purchase accounting adjustments (0.8 ) -0.2 % (1.3 ) -0.3 %
Acquisition and divestiture-related expenses   (2.6 )       -0.5 %         (0.4 )       -0.1 %
Adjusted SG&A $ 131.6         25.6 %       $ 132.7         26.6 %
 
Adjusted R&D:
R&D $ 33.3 6.5 % $ 30.0 6.0 %
Amortization of intangible assets   (0.0 )       0.0 %         (0.2 )       0.0 %
Adjusted R&D $ 33.3         6.5 %       $ 29.8         6.0 %
 
Adjusted operating income:
Operating income $ 51.6 10.0 % $ 60.6 12.2 %
Amortization of intangible assets 17.0 3.3 % 18.6 3.7 %
Purchase accounting adjustments 3.2 0.6 % 1.7 0.3 %
Acquisition and divestiture-related expenses 2.6 0.5 % 0.4 0.1 %
Mark to market on postretirement benefits - 0.0 % (0.0 ) 0.0 %
Restructuring and contract termination charges, net   9.7         1.9 %         -         0.0 %
Adjusted operating income $ 84.1         16.3 %       $ 81.2         16.3 %
 
 
                         
PKI
Three Months Ended

April 2, 2017

April 3, 2016

 
Adjusted EPS:
GAAP EPS $ 0.35 $ 0.43
Discontinued operations, net of income taxes   0.02                   0.05          
GAAP EPS from continuing operations 0.33 0.38
Amortization of intangible assets 0.15 0.17
Purchase accounting adjustments 0.03 0.01
Acquisition and divestiture-related expenses 0.03 0.00
Mark to market on postretirement benefits - (0.00 )
Restructuring and contract termination charges 0.09 -
Tax on above items   (0.08 )                 (0.06 )        
Adjusted EPS $ 0.55                 $ 0.50          
 
 
                         
PKI
Twelve Months Ended
December 31, 2017
Adjusted EPS: Projected
GAAP EPS from continuing operations $ 2.16 - $2.26
Amortization of intangible assets 0.62
Purchase accounting adjustments 0.08
Acquisition and divestiture-related expenses 0.10
Restructuring and contract termination charges 0.09
Tax on above items                   (0.25 )        
Adjusted EPS                 $ 2.80 - $2.90          
 
 
                         
DAS
Three Months Ended

April 2, 2017

April 3, 2016

 
Revenue:
Revenue $ 361.8 $ 356.4
 
Adjusted operating income:
Operating income $ 30.6 8.5 % $ 39.5 11.1 %
Amortization of intangible assets 12.3 3.4 % 14.1 3.9 %
Purchase accounting adjustments 0.0 0.0 % 0.1 0.0 %
Acquisition and divestiture-related expenses 0.2 0.1 % 0.2 0.1 %
Restructuring and contract termination charges, net   8.0         2.2 %         -         0.0 %
Adjusted operating income $ 51.1         14.1 %       $ 53.9         15.1 %
 
 
                         
Diagnostics
Three Months Ended

April 2, 2017

April 3, 2016

 
Adjusted revenue:
Revenue $ 152.4 $ 141.6
Purchase accounting adjustments   0.2                   0.2          
Adjusted revenue $ 152.5                 $ 141.7          
 
Adjusted operating income:
Operating income $ 33.4 21.9 % $ 33.8 23.9 %
Amortization of intangible assets 4.8 3.1 % 4.5 3.2 %
Purchase accounting adjustments 3.2 2.1 % 1.5 1.1 %
Acquisition and divestiture-related expenses 2.4 1.5 % 0.1 0.1 %
Restructuring and contract termination charges, net   1.7         1.1 %         -         0.0 %
Adjusted operating income $ 45.4         29.8 %       $ 39.9         28.2 %
 

(1) amounts may not sum due to rounding

   
PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
 
 

 

PKI

Three Months Ended

April 2, 2017

Organic revenue growth:
Reported revenue growth 3%
Less: effect of foreign exchange rates -1%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses

 

0%
Organic revenue growth 4%
 
 
 

 

DAS

Three Months Ended

April 2, 2017

Organic revenue growth:
Reported revenue growth 1%
Less: effect of foreign exchange rates -1%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 0%
Organic revenue growth 2%
 
 

 

Diagnostics

Three Months Ended

April 2, 2017

Organic revenue growth:
Reported revenue growth 8%
Less: effect of foreign exchange rates -1%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses 0%
Organic revenue growth 8%
 

(1) amounts may not sum due to rounding

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with U. S. generally accepted accounting principles ("GAAP"). However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term "adjusted revenue" to refer to GAAP revenue, including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term "adjusted revenue growth" to refer to the measure of comparing current period adjusted revenue with the corresponding period of the prior year.

We use the term "organic revenue" to refer to GAAP revenue, excluding the effect of foreign currency changes and acquisitions, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We also exclude the impact of sales from divested businesses by deducting the effects of divested business revenue from the current and prior periods. We use the related term "organic revenue growth" to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.

We use the term "adjusted gross margin" to refer to GAAP gross margin, excluding amortization of intangible assets, inventory fair value adjustments related to business acquisitions, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to business combination accounting rules. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate our non-GAAP measure. We use the related term "adjusted gross margin percentage" to refer to adjusted gross margin as a percentage of adjusted revenue.

We use the term "adjusted SG&A expense" to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and significant environmental charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate our non-GAAP measure. We use the related term "adjusted SG&A percentage" to refer to adjusted SG&A expense as a percentage of adjusted revenue.

We use the term "adjusted R&D expense" to refer to GAAP R&D expense, excluding amortization of intangible assets. We use the related term "adjusted R&D percentage" to refer to adjusted R&D expense as a percentage of adjusted revenue.

We use the term "adjusted operating income," to refer to GAAP operating income, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters, significant environmental charges, and restructuring and contract termination charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate our non-GAAP measure. We use the related terms "adjusted operating profit percentage," "adjusted operating profit margin," or "adjusted operating margin" to refer to adjusted operating income as a percentage of adjusted revenue.

We use the term "adjusted earnings per share," or "adjusted EPS," to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding discontinued operations, amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters, significant environmental charges, gain on disposition of businesses and assets, net, and restructuring and contract termination charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate our non-GAAP measure. We also adjust for any tax impact related to the above items.

Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:

The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board's Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, other costs related to business acquisitions and divestitures, significant litigation matters, significant environmental charges, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, restructuring and contract termination charges, and the revenue from contracts acquired with various acquisitions is calculated based on operational results and applicable jurisdictional law, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on the average rate currently in effect to determine our tax provision.

The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies.

Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.

PerkinElmer, Inc.
Investor Relations:
Tommy J. Thomas, CPA 781-663-5889
tommy.thomas@perkinelmer.com
or
Media Contact:
Fara Goldberg, 781-663-5699
fara.goldberg@perkinelmer.com

Source: PerkinElmer, Inc.

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