UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K
 
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 30, 2019

 

PerkinElmer, Inc.
(Exact Name of Registrant as Specified in its Charter)


 
 
Massachusetts
001-05075
04-2052042
(State or Other Jurisdiction
of Incorporation or Organization)
(Commission
File Number)
(IRS Employer
Identification No.)
 
940 Winter Street, Waltham, Massachusetts
02451
(Address of Principal Executive Offices)
(Zip Code)
 
Registrant’s telephone number, including area code: (781) 663-6900
 
Not applicable
(Former Name or Former Address, if Changed Since Last Report)

 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  Trading Symbol(s)
  Name of exchange on which registered
Common stock, $1 par value per share
  PKI
  The New York Stock Exchange
1.875% Notes due 2026   PKI 21A
  The New York Stock Exchange
0.600% Notes due 2021
  PKI 21B
  The New York Stock Exchange 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02.  Results of Operations and Financial Condition

On October 30, 2019, PerkinElmer, Inc. announced its financial results for the third quarter ended September 29, 2019.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
Item 9.01.  Financial Statements and Exhibits

(d)            Exhibits

EXHIBIT INDEX

     
Exhibit No.
 
Description
 
 
 
 
 
 
 
101.INS
 
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
 
 
 
101.SCH
 
Inline XBRL Taxonomy Extension Schema Document
 
 
 
101.CAL
 
Inline XBRL Taxonomy Extension Calculation Linkbase Document
 
 
 
101.DEF
 
Inline XBRL Taxonomy Extension Definition Linkbase Document
 
 
 
101.LAB
 
Inline XBRL Taxonomy Extension Labels Linkbase Document
 
 
 
101.PRE
 
Inline XBRL Taxonomy Extension Presentation Linkbase Document
 
 
 
104
 
Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101)

* This exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed.



SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
PERKINELMER, INC.
Date:  October 30, 2019
By: /s/ James M. Mock
James M. Mock
Senior Vice President and Chief Financial Officer
Exhibit 99.1

PerkinElmer Announces Financial Results for the Third Quarter of 2019

  • Revenue of $706.9 million; 5% Reported growth; Organic growth of 5%
  • GAAP EPS from continuing operations of $0.53; Adjusted EPS of $1.06
  • GAAP operating income margin from continuing operations of 11.1%; Adjusted operating income margin from continuing operations of 21.6%
  • Acquisition of Meizheng Group, a food safety testing provider; bolsters assay capabilities in China
  • Adjusting GAAP EPS guidance to $2.21; Raising adjusted EPS guidance to $4.07

WALTHAM, Mass.--(BUSINESS WIRE)--October 30, 2019--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the third quarter ended September 29, 2019.

The Company reported GAAP earnings per share from continuing operations of $0.53, as compared to GAAP earnings per share from continuing operations of $0.68 in the third quarter of 2018. GAAP revenue for the quarter was $706.9 million, as compared to $674.3 million in the third quarter of 2018. GAAP operating income from continuing operations for the quarter was $78.7 million, as compared to $80.2 million for the same period a year ago. GAAP operating profit margin was 11.1% as a percentage of revenue, as compared to 11.9% in the third quarter of 2018.

Adjusted earnings per share from continuing operations for the quarter was $1.06, as compared to $0.90 in the third quarter of 2018. Adjusted revenue for the quarter was $707.1 million, as compared to $674.5 million in the third quarter of 2018. Adjusted operating income from continuing operations for the quarter was $152.5 million, as compared to $128.6 million for the same period a year ago. Adjusted operating profit margin was 21.6% as a percentage of adjusted revenues, as compared to 19.1% in the third quarter of 2018.

Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

“Delivering mid-single organic revenue growth and high teens EPS growth in this environment reinforces our belief in the strength and resiliency of our businesses and our team’s operational execution,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “The strong operating leverage we experienced this quarter gave us the confidence to raise our full-year EPS guidance despite additional headwinds from foreign exchange.”


Financial Overview by Reporting Segment for the Third Quarter of 2019

Discovery & Analytical Solutions

  • Revenue was $426.9 million, as compared to $406.2 million for the third quarter of 2018. Reported revenue increased 5% and organic revenue increased 4%.
  • Operating income from continuing operations was $52.3 million, as compared to $48.4 million for the comparable prior period.
  • Adjusted operating income was $86.2 million, as compared to $68.0 million in the third quarter of 2018.

Diagnostics

  • Revenue was $280.0 million, as compared to $268.1 million for the third quarter of 2018. Reported revenue increased 4% and organic revenue increased 6%.
  • Operating income from continuing operations was $47.4 million, as compared to $47.4 million for the comparable prior period.
  • Adjusted operating income was $79.7 million, as compared to $76.2 million in the third quarter of 2018.

Full Year 2019 Guidance

For the full year 2019, the Company now forecasts GAAP earnings per share from continuing operations of $2.21 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $4.07.

Acquisition

We are excited to announce the recent acquisition of Meizheng Group, a leading food safety testing company in China. The addition of Meizheng expands PerkinElmer’s food safety capabilities into attractive markets, including pathogen, toxin, and drug residue testing.

Founded in 2009, and headquartered in Beijing, China, Meizheng offers a comprehensive product portfolio covering immunoassay, microbiology, and molecular testing across prioritized end-markets, including grain and milling, dairy, and meat and seafood. The food safety market in China is growing rapidly due to stricter quality standards and regulations developed in response to increased consumer demand for a safer food supply. Meizheng’s dedicated channel, culture of innovation, loyal customer base, and local regulatory experience create a strong foundation and natural synergies for PerkinElmer’s existing food quality and food safety testing business in China. Combined, PerkinElmer and Meizheng will have a broad set of capabilities across the food value chain, covering both quality and food safety testing at the crop through downstream third-party lab and food processor testing.


Conference Call Information

The Company will discuss its third quarter 2019 results and its outlook for business trends in a conference call on October 30, 2019 at 5:00 p.m. Eastern Time. To access the call, please dial (720) 405-2250 prior to the scheduled conference call time and provide the access code 7094106.

A live audio webcast of the call will be available on the Investors 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, acquisitions 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, or cybercrime; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) the United Kingdom’s intention to withdraw from the European Union; (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 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 innovating for a healthier world. The Company reported revenue of approximately $2.8 billion in 2018, has about 13,000 employees serving customers in more than 180 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












 










 



Three Months Ended

 

Nine Months Ended



(In thousands, except per share data)


September 29,
2019

 

September 30,
2018

 

September 29,
2019

 

September 30,
2018



 











 











Revenue


$

706,923

 


$

674,313

 


$

2,078,177

 


$

2,021,647

 



 











Cost of revenue


 

364,648

 


 

341,986

 


 

1,080,303

 


 

1,056,958

 



Selling, general and administrative expenses


 

204,171

 


 

196,769

 


 

604,581

 


 

601,374

 



Research and development expenses


 

45,376

 


 

48,848

 


 

141,700

 


 

142,028

 



Restructuring and contract termination charges, net


 

14,068

 


 

6,508

 


 

27,868

 


 

13,086

 



 











Operating income from continuing operations


 

78,660

 


 

80,202

 


 

223,725

 


 

208,201

 



 











Interest income


 

(292

)


 

(316

)


 

(925

)


 

(754

)



Interest expense


 

16,149

 


 

16,684

 


 

49,206

 


 

50,745

 



(Gain) loss on disposition of businesses and assets, net


 

-

 


 

(13,031

)


 

2,469

 


 

(13,031

)



Debt extinguishment costs


 

471

 


 

-

 


 

471

 


 

-

 



Other (income) expense, net


 

(922

)


 

(1,176

)


 

658

 


 

(7,013

)



 











Income from continuing operations, before income taxes


 

63,254

 


 

78,041

 


 

171,846

 


 

178,254

 



 











Provision for income taxes


 

4,644

 


 

2,596

 


 

8,642

 


 

12,101

 



 











Income from continuing operations


 

58,610

 


 

75,445

 


 

163,204

 


 

166,153

 



 











Loss on disposition of discontinued operations, before income taxes


 

-

 


 

(308

)


 

-

 


 

(859

)



Provision for (benefit from) income taxes on discontinued operations and dispositions


 

52

 


 

(1,411

)


 

147

 


 

(1,341

)



 











(Loss) gain from discontinued operations and dispositions


 

(52

)


 

1,103

 


 

(147

)


 

482

 



 











Net income


$

58,558

 


$

76,548

 


$

163,057

 


$

166,635

 



 











 











Diluted earnings per share:











Income from continuing operations


$

0.53

 


$

0.68

 


$

1.46

 


$

1.49

 



 











(Loss) gain from discontinued operations and dispositions


 

(0.00

)


 

0.01

 


 

(0.00

)


 

0.00

 



 











Net income


$

0.52

 


$

0.69

 


$

1.46

 


$

1.49

 



 











 











Weighted average diluted shares of common stock outstanding


 

111,559

 


 

111,747

 


 

111,460

 


 

111,510

 



 











 











ABOVE PREPARED IN ACCORDANCE WITH GAAP



 











 











Additional Supplemental Information (1):











(per share, continuing operations)











 











GAAP EPS from continuing operations


 

0.53

 


 

0.68

 


 

1.46

 


 

1.49

 



Amortization of intangible assets


 

0.37

 


 

0.32

 


 

1.09

 


 

0.90

 



Debt extinguishment costs


 

0.00

 


 

-

 


 

0.00

 


 

-

 



Purchase accounting adjustments


 

0.08

 


 

0.04

 


 

0.16

 


 

0.27

 



Acquisition and divestiture-related costs


 

0.01

 


 

0.02

 


 

0.05

 


 

0.05

 



Acceleration of executive compensation


 

0.07

 


 

-

 


 

0.07

 


 

-

 



Significant litigation matter


 

0.01

 


 

0.01

 


 

0.01

 


 

0.05

 



Disposition of businesses and assets, net


 

-

 


 

(0.12

)


 

0.02

 


 

(0.12

)



Restructuring and contract termination charges, net


 

0.13

 


 

0.06

 


 

0.25

 


 

0.12

 



Tax on above items


 

(0.16

)


 

(0.03

)


 

(0.40

)


 

(0.27

)



Impact of tax act


 

0.02

 


 

(0.06

)


 

0.02

 


 

(0.05

)



Adjusted EPS


 

1.06

 


 

0.90

 


 

2.75

 


 

2.43

 



 











(1) amounts may not sum due to rounding




















 










 

PerkinElmer, Inc. and Subsidiaries

REVENUE AND OPERATING INCOME (LOSS)








 













 













 





Three Months Ended

 

 

Nine Months Ended

(In thousands, except percentages)

September 29,
2019

 

 

September 30,
2018

 

 

September 29,
2019

 

 

September 30,
2018















 














 
DAS
Reported revenue

$

 

426,904

 


$

 

406,166

 


$

 

1,249,704

 


$

 

1,233,319

 















 


Reported operating income from continued operations

52,347

 



48,381

 



146,963

 



149,243

 



OP%

12.3

%



11.9

%



11.8

%



12.1

%



Amortization of intangible assets

13,723

 



11,384

 



37,105

 



34,567

 



Purchase accounting adjustments

7,429

 



71

 



12,480

 



101

 



Acquisition and divestiture-related costs

444

 



1,688

 



1,403

 



1,759

 



Significant litigation matter

805

 



633

 



1,620

 



5,050

 



Restructuring and contract termination charges, net

11,427

 



5,890

 



22,427

 



11,566

 



Adjusted operating income

86,175

 



68,047

 



221,998

 



202,286

 



Adjusted OP%

20.2

%



16.8

%



17.8

%



16.4

%















 
Diagnostics
Reported revenue

280,019

 



268,147

 



828,473

 



788,328

 



Purchase accounting adjustments

192

 



187

 



576

 



562

 



Adjusted Revenue

280,211

 



268,334

 



829,049

 



788,890

 















 


Reported operating income from continued operations

47,443

 



47,411

 



128,184

 



104,585

 



OP%

16.9

%



17.7

%



15.5

%



13.3

%



Amortization of intangible assets

27,547

 



23,878

 



84,094

 



66,112

 



Purchase accounting adjustments

1,694

 



3,886

 



5,781

 



29,517

 



Acquisition and divestiture-related costs

393

 



25

 



1,878

 



4,176

 



Significant litigation matter

-

 



365

 



-

 



193

 



Restructuring and contract termination charges, net

2,641

 



618

 



5,441

 



1,520

 



Adjusted operating income

79,718

 



76,183

 



225,378

 



206,103

 



Adjusted OP%

28.4

%



28.4

%



27.2

%



26.1

%















 
Corporate
Reported operating loss

(21,130

)



(15,590

)



(51,422

)



(45,627

)



Acceleration of executive compensation

7,721

 



-

 



7,721

 



-

 



Adjusted operating loss

(13,409

)



(15,590

)



(43,701

)



(45,627

)















 
Continuing Operations
Reported revenue

$

 

706,923

 


$

 

674,313

 


$

 

2,078,177

 


$

 

2,021,647

 



Purchase accounting adjustments

192

 



187

 



576

 



562

 



Adjusted Revenue

707,115

 



674,500

 



2,078,753

 



2,022,209

 















 


Reported operating income from continued operations

78,660

 



80,202

 



223,725

 



208,201

 



OP%

11.1

%



11.9

%



10.8

%



10.3

%



Amortization of intangible assets

41,270

 



35,262

 



121,199

 



100,679

 



Purchase accounting adjustments

9,123

 



3,957

 



18,261

 



29,618

 



Acquisition and divestiture-related costs

837

 



1,713

 



3,281

 



5,935

 



Acceleration of executive compensation

7,721

 



-

 



7,721

 



-

 



Significant litigation matter

805

 



998

 



1,620

 



5,243

 



Restructuring and contract termination charges, net

14,068

 



6,508

 



27,868

 



13,086

 



Adjusted operating income

$

 

152,484

 


$

 

128,640

 


$

 

403,675

 


$

 

362,762

 



Adjusted OP%

21.6

%



19.1

%



19.4

%



17.9

%















 

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


PerkinElmer, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS


 




 
(In thousands)

September 29, 2019


December 30, 2018





 
Current assets:



Cash and cash equivalents

$

392,969

 


$

163,111

 

Accounts receivable, net

 

646,286

 


 

632,669

 

Inventories, net

 

391,820

 


 

338,347

 

Other current assets

 

117,330

 


 

100,507

 

Total current assets

 

1,548,405

 


 

1,234,634

 





 
Property, plant and equipment:



At cost

 

668,835

 


 

680,183

 

Accumulated depreciation

 

(370,595

)


 

(361,593

)

Property, plant and equipment, net

 

298,240

 


 

318,590

 





 
Operating lease right-of-use assets

 

174,689

 


 

-

 

Intangible assets, net

 

1,199,461

 


 

1,199,667

 

Goodwill

 

2,987,541

 


 

2,952,608

 

Other assets, net

 

280,745

 


 

270,023

 

Total assets

$

6,489,081

 


$

5,975,522

 





 
Current liabilities:



Current portion of long-term debt

$

506,650

 


$

14,856

 

Accounts payable

 

190,261

 


 

220,949

 

Short-term accrued restructuring and contract termination charges

 

16,923

 


 

4,834

 

Accrued expenses and other current liabilities

 

472,156

 


 

528,827

 

Current liabilities of discontinued operations

 

2,112

 


 

2,165

 

Total current liabilities

 

1,188,102

 


 

771,631

 





 
Long-term debt

 

1,750,925

 


 

1,876,624

 

Long-term liabilities

 

690,041

 


 

742,312

 

Operating lease liabilities

 

153,216

 


 

-

 

Total liabilities

 

3,782,284

 


 

3,390,567

 





 
Total stockholders' equity

 

2,706,797

 


 

2,584,955

 

Total liabilities and stockholders' equity

$

6,489,081

 


$

5,975,522

 





 
PREPARED IN ACCORDANCE WITH GAAP

PerkinElmer, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS





 








 


Three Months Ended

 

Nine Months Ended



September 29,
2019

 

September 30,
2018

 

September 29,
2019

 

September 30,
2018



(In thousands)

 

(In thousands)









 
Operating activities:







Net income

$

58,558

 


$

76,548

 


$

163,057

 


$

166,635

 

Loss (gain) from discontinued operations and dispositions, net of income taxes

 

52

 


 

(1,103

)


 

147

 


 

(482

)

Income from continuing operations

 

58,610

 


 

75,445

 


 

163,204

 


 

166,153

 

Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:







Stock-based compensation

 

12,304

 


 

11,127

 


 

25,105

 


 

23,275

 

Restructuring and contract termination charges, net

 

14,068

 


 

6,508

 


 

27,868

 


 

13,086

 

Depreciation and amortization

 

53,324

 


 

45,161

 


 

157,117

 


 

133,386

 

Change in fair value of contingent consideration

 

1,238

 


 

3,739

 


 

4,399

 


 

10,804

 

Amortization of deferred debt financing costs and accretion of discounts

 

988

 


 

935

 


 

2,778

 


 

2,454

 

Loss (gain) on disposition of businesses and assets, net

 

-

 


 

(13,031

)


 

2,469

 


 

(13,031

)

Gain on sale of investments, net

 

-

 


 

(557

)


 

-

 


 

(557

)

Debt extinguishment costs

 

471

 


 

-

 


 

471

 


 

-

 

Amortization of acquired inventory revaluation

 

7,693

 


 

-

 


 

13,258

 


 

18,160

 

Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired:







Accounts receivable, net

 

(12,528

)


 

6,098

 


 

(22,132

)


 

(12,670

)

Inventories

 

2,082

 


 

1,680

 


 

(48,367

)


 

(41,313

)

Accounts payable

 

5,908

 


 

(12,203

)


 

(34,043

)


 

(36,587

)

Accrued expenses and other

 

(37,443

)


 

(31,510

)


 

(143,869

)


 

(111,341

)

Net cash provided by operating activities of continuing operations

 

106,715

 


 

93,392

 


 

148,258

 


 

151,819

 

Net cash used in operating activities of discontinued operations

 

-

 


 

(200

)


 

-

 


 

(200

)

Net cash provided by operating activities

 

106,715

 


 

93,192

 


 

148,258

 


 

151,619

 









 
Investing activities:







Capital expenditures

 

(16,621

)


 

(20,835

)


 

(53,082

)


 

(60,443

)

Purchases of investments

 

(4,519

)


 

-

 


 

(5,387

)


 

(5,500

)

Purchases of licenses

 

-

 


 

-

 


 

(5,000

)


 

-

 

Proceeds from surrender of life insurance policies

 

-

 


 

-

 


 

-

 


 

72

 

Proceeds from disposition of businesses and assets

 

-

 


 

37,854

 


 

550

 


 

38,027

 

Payment of acquisitions, net of cash and cash equivalents acquired

 

(7,882

)


 

(9,000

)


 

(252,620

)


 

(44,057

)

Net cash (used in) provided by investing activities of continuing operations

 

(29,022

)


 

8,019

 


 

(315,539

)


 

(71,901

)

Net cash provided by investing activities of discontinued operations

 

-

 


 

-

 


 

-

 


 

-

 

Net cash (used in) provided by investing activities

 

(29,022

)


 

8,019

 


 

(315,539

)


 

(71,901

)









 
Financing Activities:







Payments on borrowings

 

(841,489

)


 

(352,000

)


 

(1,419,489

)


 

(1,019,000

)

Proceeds from borrowings

 

184,866

 


 

263,000

 


 

1,034,416

 


 

605,000

 

Proceeds from sale of senior debt

 

847,195

 


 

-

 


 

847,195

 


 

369,340

 

Payments of debt financing costs

 

(7,741

)


 

-

 


 

(7,922

)


 

(2,634

)

Settlement of cash flow hedges

 

72

 


 

2,426

 


 

(1,587

)


 

(30,285

)

Net payments on other credit facilities

 

(1,360

)


 

(12,717

)


 

(11,166

)


 

(22,871

)

Payments for acquisition-related contingent consideration

 

(4,500

)


 

(12,800

)


 

(28,200

)


 

(12,800

)

Proceeds from issuance of common stock under stock plans

 

1,009

 


 

11,136

 


 

17,563

 


 

19,484

 

Purchases of common stock

 

(144

)


 

(325

)


 

(6,201

)


 

(4,974

)

Dividends paid

 

(7,775

)


 

(7,751

)


 

(23,282

)


 

(23,222

)

Net cash provided by (used in) financing activities of continuing operations

 

170,133

 


 

(109,031

)


 

401,327

 


 

(121,962

)

Net cash used in financing activities of discontinued operations

 

-

 


 

-

 


 

-

 


 

-

 

Net cash provided by (used in) financing activities

 

170,133

 


 

(109,031

)


 

401,327

 


 

(121,962

)









 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(5,069

)


 

(3,059

)


 

(4,384

)


 

(7,410

)









 
Net increase (decrease) in cash, cash equivalents, and restricted cash

 

242,757

 


 

(10,879

)


 

229,662

 


 

(49,654

)

Cash, cash equivalents, and restricted cash at beginning of period

 

153,220

 


 

163,596

 


 

166,315

 


 

202,371

 

Cash, cash equivalents, and restricted cash at end of period

$

395,977

 


$

152,717

 


$

395,977

 


$

152,717

 









 








 
Supplemental disclosure of cash flow information:







Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:







Cash and cash equivalents

$

392,969

 


$

149,513

 


$

392,969

 


$

149,513

 

Restricted cash included in other current assets

 

3,008

 


 

3,204

 


 

3,008

 


 

3,204

 

Total cash, cash equivalents and restricted cash

$

395,977

 


$

152,717

 


$

395,977

 


$

152,717

 









 
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




September 29, 2019

 

 

 

September 30, 2018

 

 











 
Adjusted revenue:








Revenue

$

706.9

 




$

674.3

 




Purchase accounting adjustments

 

0.2

 




 

0.2

 




Adjusted revenue

$

707.1

 




$

674.5

 













 
Adjusted gross margin:








Gross margin

$

342.3

 


48.4

%


$

332.3

 


49.3

%


Amortization of intangible assets

 

15.2

 


2.1

%


 

11.6

 


1.7

%


Purchase accounting adjustments

 

7.9

 


1.1

%


 

0.2

 


0.0

%


Adjusted gross margin

$

365.3

 


51.7

%


$

344.1

 


51.0

%







 
Adjusted SG&A:








SG&A

$

204.2

 


28.9

%


$

196.8

 


29.2

%


Amortization of intangible assets

 

(26.1

)


-3.7

%


 

(20.0

)


-3.0

%


Purchase accounting adjustments

 

(1.2

)


-0.2

%


 

(3.8

)


-0.6

%


Acquisition and divestiture-related expenses

 

(0.8

)


-0.1

%


 

(1.7

)


-0.3

%


Acceleration of executive compensation

 

(7.7

)


-1.1

%


 

-

 


0.0

%


Significant litigation matter

 

(0.8

)


-0.1

%


 

(1.0

)


-0.1

%


Adjusted SG&A

$

167.5

 


23.7

%


$

170.3

 


25.2

%











 
Adjusted R&D:








R&D

$

45.4

 


6.4

%


$

48.8

 


7.2

%


Amortization of intangible assets

 

-

 


0.0

%


 

(3.7

)


-0.5

%


Adjusted R&D

$

45.4

 


6.4

%


$

45.2

 


6.7

%











 
Adjusted operating income:








Operating income

$

78.7

 


11.1

%


$

80.2

 


11.9

%


Amortization of intangible assets

 

41.3

 


5.8

%


 

35.3

 


5.2

%


Purchase accounting adjustments

 

9.1

 


1.3

%


 

4.0

 


0.6

%


Acquisition and divestiture-related expenses

 

0.8

 


0.1

%


 

1.7

 


0.3

%


Acceleration of executive compensation

 

7.7

 


1.1

%


 

-

 


0.0

%


Significant litigation matter

 

0.8

 


0.1

%


 

1.0

 


0.1

%


Restructuring and contract termination charges, net

 

14.1

 


2.0

%


 

6.5

 


1.0

%


Adjusted operating income

$

152.5

 


21.6

%


$

128.6

 


19.1

%











 


PKI




Three Months Ended




September 29, 2019

 

 

 

September 30, 2018

 

 











 
Adjusted EPS:








GAAP EPS

$

0.52

 




$

0.69

 




Discontinued operations, net of income taxes

 

(0.00

)




 

0.01

 




GAAP EPS from continuing operations

 

0.53

 




 

0.68

 




Amortization of intangible assets

 

0.37

 




 

0.32

 




Debt extinguishment costs

 

0.00

 




 

-

 




Purchase accounting adjustments

 

0.08

 




 

0.04

 




Acquisition and divestiture-related expenses

 

0.01

 




 

0.02

 




Acceleration of executive compensation

 

0.07

 




 

-

 




Significant litigation matter

 

0.01

 




 

0.01

 




Disposition of businesses and assets, net

 

-

 




 

(0.12

)




Restructuring and contract termination charges, net

 

0.13

 




 

0.06

 




Tax on above items

 

(0.16

)




 

(0.03

)




Impact of tax act

 

0.02

 




 

(0.06

)




Adjusted EPS

$

1.06

 




$

0.90

 













 


DAS




Three Months Ended




September 29, 2019

 

 

 

September 30, 2018

 

 











 
Revenue

$

426.9

 




$

406.2

 













 
Adjusted operating income:








Operating income

$

52.3

 


12.3

%


$

48.4

 


11.9

%


Amortization of intangible assets

 

13.7

 


3.2

%


 

11.4

 


2.8

%


Purchase accounting adjustments

 

7.4

 


1.7

%


 

0.1

 


0.0

%


Acquisition and divestiture-related expenses

 

0.4

 


0.1

%


 

1.7

 


0.4

%


Significant litigation matter

 

0.8

 


0.2

%


 

0.6

 


0.2

%


Restructuring and contract termination charges, net

 

11.4

 


2.7

%


 

5.9

 


1.5

%


Adjusted operating income

$

86.2

 


20.2

%


$

68.0

 


16.8

%











 


Diagnostics




Three Months Ended




September 29, 2019

 

 

 

September 30, 2018

 

 











 
Adjusted revenue:








Revenue

$

280.0

 




$

268.1

 




Purchase accounting adjustments

 

0.2

 




 

0.2

 




Adjusted revenue

$

280.2

 




$

268.3

 













 
Adjusted operating income:








Operating income

$

47.4

 


16.9

%


$

47.4

 


17.7

%


Amortization of intangible assets

 

27.5

 


9.8

%


 

23.9

 


8.9

%


Purchase accounting adjustments

 

1.7

 


0.6

%


 

3.9

 


1.4

%


Acquisition and divestiture-related expenses

 

0.4

 


0.1

%


 

0.0

 


0.0

%


Significant litigation matter

 

-

 


0.0

%


 

0.4

 


0.1

%


Restructuring and contract termination charges, net

 

2.6

 


0.9

%


 

0.6

 


0.2

%


Adjusted operating income

$

79.7

 


28.4

%


$

76.2

 


28.4

%











 









 
(1) amounts may not sum due to rounding









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









 
(In millions, except per share data and percentages)

PKI




Nine Months Ended




September 29, 2019

 

 

 

September 30, 2018

 

 











 
Adjusted revenue:








Revenue

$ 2,078.2




$ 2,021.6




Purchase accounting adjustments

0.6




0.6




Adjusted revenue

$ 2,078.8




$ 2,022.2













 
Adjusted gross margin:








Gross margin

$ 997.9


48.0%


$ 964.7


47.7%


Amortization of intangible assets

45.6


2.2%


34.8


1.7%


Purchase accounting adjustments

13.8


0.7%


18.8


0.9%


Adjusted gross margin

$ 1,057.3


50.9%


$ 1,018.3


50.4%







 
Adjusted SG&A:








SG&A

$ 604.6


29.1%


$ 601.4


29.7%


Amortization of intangible assets

(75.6)


-3.6%


(62.0)


-3.1%


Purchase accounting adjustments

(4.4)


-0.2%


(10.9)


-0.5%


Acquisition and divestiture-related expenses

(3.3)


-0.2%


(5.9)


-0.3%


Acceleration of executive compensation

(7.7)


-0.4%


-


0.0%


Significant litigation matter

(1.6)


-0.1%


(5.2)


-0.3%


Adjusted SG&A

$ 512.0


24.6%


$ 517.3


25.6%











 
Adjusted R&D:








R&D

$ 141.7


6.8%


$ 142.0


7.0%


Amortization of intangible assets

-


0.0%


(3.8)


-0.2%


Adjusted R&D

$ 141.7


6.8%


$ 138.2


6.8%











 
Adjusted operating income:








Operating income

$ 223.7


10.8%


$ 208.2


10.3%


Amortization of intangible assets

121.2


5.8%


100.7


5.0%


Purchase accounting adjustments

18.3


0.9%


29.6


1.5%


Acquisition and divestiture-related expenses

3.3


0.2%


5.9


0.3%


Acceleration of executive compensation

7.7


0.4%


-


0.0%


Significant litigation matter

1.6


0.1%


5.2


0.3%


Restructuring and contract termination charges, net

27.9


1.3%


13.1


0.6%


Adjusted operating income

$ 403.7


19.4%


$ 362.8


17.9%











 


PKI




Nine Months Ended




September 29, 2019

 

 

 

September 30, 2018

 

 











 
Adjusted EPS:








GAAP EPS

$ 1.46




$ 1.49




Discontinued operations

(0.00)




0.00




GAAP EPS from continuing operations

1.46




1.49




Amortization of intangible assets

1.09




0.90




Debt extinguishment costs

0.00




-




Purchase accounting adjustments

0.16




0.27




Significant litigation matter

0.01




0.05




Acquisition and divestiture-related expenses

0.05




0.05




Acceleration of executive compensation

0.07




-




Loss (Gain) on disposition of businesses and assets, net

0.02




(0.12)




Restructuring and contract termination charges, net

0.25




0.12




Tax on above items

(0.40)




(0.27)




Impact of tax act

0.02




(0.05)




Adjusted EPS

$ 2.75




$ 2.43













 


PKI




 

 

 

 

Twelve Months Ended

 

 




 

 

 

 

December 29, 2019

 

 


Adjusted EPS:

 

 

 

 

Projected

 

 


GAAP EPS from continuing operations




$ 2.21




Amortization of intangible assets




1.46




Debt extinguishment costs




0.29




Purchase accounting adjustments




0.24




Significant litigation matter




0.01




Acquisition and divestiture-related expenses




0.06




Acceleration of executive compensation




0.07




Disposition of businesses and assets, net




0.02




Restructuring and contract termination charges, net




0.25




Tax on above items




(0.56)




Impact of tax act