PerkinElmer, Inc.
Feb 3, 2011
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PerkinElmer Announces Financial Results for Fourth Quarter 2010

WALTHAM, Mass. -- PerkinElmer, Inc. (NYSE: PKI), a global leader focused on improving the health and safety of people and the environment, today reported financial results for the fourth quarter ended January 2, 2011.  The Company reported GAAP earnings per share from continuing operations of $0.36, as compared to $0.28 in the fourth quarter of 2009. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the Company announced adjusted earnings per share of $0.44, exceeding the Company’s prior guidance of $0.40-$0.42, representing an increase of 19% as compared to the fourth quarter of 2009.

The Company completed the divestiture of its Illumination and Detection Solutions business in the fourth quarter of 2010.  This transaction resulted in a pre-tax gain of $315.3 million in the fourth quarter of 2010 which is accounted for in the results from discontinued operations.

Revenue from continuing operations in the fourth quarter of 2010 was $470.0 million, up 10% as compared to the same period a year ago.  Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 9% as compared to the fourth quarter of 2009.  Revenue from continuing operations in the Human and Environmental Health segments increased by 12% and 8%, respectively, as compared to the same period a year ago.  Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 10% in the Human Health segment and 9% in the Environmental Health segment compared to the fourth quarter of 2009.

“Our fourth quarter results complete an excellent year for PerkinElmer as we generated strong growth in revenue, adjusted earnings per share and cash flow in 2010,” said Robert Friel, chairman and chief executive officer of PerkinElmer.  “Looking ahead to 2011, we will continue to remain focused on increasing the growth profile of the Company and employing a dedicated approach to improving our operating margins while investing in new technologies, software and services that advance human and environmental health.”

Operating profit from continuing operations for the fourth quarter of 2010 was $48.3 million, as compared to $49.6 million for the same period a year ago.  Adjusted operating profit, which includes the adjustments noted in the attached reconciliation, increased by 60 basis points as a percentage of revenue to $74.2 million, as compared to $65.2 million in the fourth quarter of 2009. 

Financial Overview by Reporting Segment

Human Health:

Environmental Health:

For the full year 2010, revenue from continuing operations was $1.7 billion, up 10% as compared to the full year 2009.  Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 8% as compared to the full year 2009.  Operating profit for the full year 2010 was $153.6 million, an increase of 26% as compared to the full year 2009.  Adjusted operating profit margin, which includes the adjustments noted in the attached reconciliation, was 13.7%, an increase of approximately 100 basis points as compared to the full year 2009.  The Company reported GAAP earnings per share from continuing operations of $1.15, as compared to $0.64 for the full year 2009. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the Company announced adjusted earnings per share of $1.33, representing an increase of 24% as compared to the full year 2009.

Financial Guidance

For the full year 2011, the Company forecasts organic revenue to increase in the mid single digit range relative to 2010. The Company forecasts GAAP earnings per share from continuing operations in the range of $1.19 to $1.27 and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, the Company forecasts adjusted earnings per share in the range of $1.56 to $1.64.

Conference Call Information

The Company will discuss its fourth quarter results and its outlook for business trends in a conference call on February 3, 2011 at 5:00 p.m. Eastern Time (ET).  To access the call, please dial (857) 350-1602 prior to the scheduled conference call time and provide the access code 57048300.  A playback of this conference call will be available beginning 8:00 p.m. ET, Thursday, February 3, 2011.  The playback phone number is (617) 801-6888 and the code number is 44062054.

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 decline or do not grow 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 to 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 may expose 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) restrictions in our credit agreements; (19) our ability to realize the full value of our intangible assets; (20) significant fluctuations in our stock price; (21) reduction or elimination of dividends on our common stock; and (22) other factors which we describe under the caption "Risk Factors" in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About PerkinElmer
PerkinElmer, Inc. is a global leader focused on improving the health and safety of people and the environment. The Company reported revenue of approximately $1.7 billion in 2010, has about 6,200 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.

For a full report with financials, download the full report PDF file.

For further information regarding PerkinElmer, please contact:

Investor Relations:
David C. Francisco
PerkinElmer, Inc.
(781) 663-5677
dave.francisco@perkinelmer.com

Media Contact:
Stephanie R. Wasco
PerkinElmer, Inc
(781) 663-5701
stephanie.wasco@perkinelmer.com