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): January 27, 2020

 

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 January 27, 2020 PerkinElmer, Inc. announced its financial results for the fourth quarter and full year ended December 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

99.1*  Press Release entitled “PerkinElmer Announces Financial Results for the Fourth Quarter and Full Year 2019”, issued by PerkinElmer, Inc. on January 27, 2020.

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:  January 27, 2020
By: /s/ James M. Mock
James M. Mock
Senior Vice President and Chief Financial Officer
Exhibit 99.1


PerkinElmer Announces Financial Results for the Fourth Quarter and Full Year 2019

  • 4Q Revenue of $805.5 million; 6% reported growth; 5% organic growth
  • 4Q GAAP EPS from continuing operations of $0.58; Adjusted EPS of $1.35
  • 4Q GAAP operating income margin of 17.2%; Adjusted operating income margin from continuing operations of 23.9%
  • Initiates FY20 GAAP EPS guidance range of $2.89 to $2.99 from continuing operations; Adjusted EPS guidance of $4.50 to $4.60; FY20 Revenue of $3.05 billion to $3.09 billion; 6-7% reported growth; 5-6% organic growth
  • Initiates 1Q20 GAAP EPS guidance of $0.33 from continuing operations; Adjusted EPS guidance of $0.70; 1Q20 Revenue of $700 million; 8% reported growth; 6% organic growth

WALTHAM, Mass.--(BUSINESS WIRE)--January 27, 2020--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the fourth quarter and full year ended December 29, 2019.

Fourth Quarter 2019
The Company reported GAAP earnings per share from continuing operations of $0.58, as compared to GAAP earnings per share from continuing operations of $0.64 in the fourth quarter of 2018. GAAP revenue for the quarter was $805.5 million, as compared to $756.3 million in the fourth quarter of 2018. GAAP operating income from continuing operations for the quarter was $138.2 million, as compared to $115.7 million for the same period a year ago. GAAP operating profit margin was 17.2% as a percentage of revenue, as compared to 15.3% in the fourth quarter of 2018.

Adjusted earnings per share from continuing operations for the quarter was $1.35, as compared to $1.18 in the fourth quarter of 2018. Adjusted revenue for the quarter was $805.7 million, as compared to $756.5 million in the fourth quarter of 2018. Adjusted operating income from continuing operations for the quarter was $192.3 million, as compared to $164.3 million for the same period a year ago. Adjusted operating profit margin was 23.9% as a percentage of adjusted revenue, as compared to 21.7% in the fourth quarter of 2018.

Full Year 2019
The Company reported GAAP earnings per share from continuing operations of $2.04, as compared to GAAP earnings per share from continuing operations of $2.13 in 2018. GAAP revenue for the year was $2.88 billion, as compared to $2.78 billion in 2018. GAAP operating income from continuing operations for the year was $362.0 million, as compared to $323.9 million in 2018. GAAP operating profit margin was 12.6% as a percentage of revenue, as compared to 11.7% in 2018.


Adjusted earnings per share from continuing operations for the year was $4.10, as compared to $3.61 in 2018. Adjusted revenue for the year was $2.88 billion, as compared to $2.78 billion in 2018. Adjusted operating income from continuing operations for the year was $596.0 million, as compared to $527.1 million in 2018. Adjusted operating profit margin was 20.7% as a percentage of adjusted revenue, as compared to 19.0% in 2018.

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

“We are pleased with our strong finish to 2019. The rapid transformation we made as an organization over the past few years and in particular 2019 has put us in an excellent position to accelerate profitable growth and advance outcomes around the world in 2020 and beyond,” said Prahlad Singh, president and chief executive officer of PerkinElmer.

Financial Overview by Reporting Segment for the Fourth Quarter and Full Year 2019

Discovery & Analytical Solutions

  • Fourth quarter 2019 revenue was $496.5 million, as compared to $459.9 million for the fourth quarter of 2018. Reported revenue increased 8% and organic revenue increased 5% as compared to the fourth quarter of 2018. Full year 2019 revenue was $1.75 billion, as compared to $1.69 billion in 2018. Full year reported and organic revenue increased 3%.
  • Fourth quarter 2019 operating income from continuing operations was $91.4 million, as compared to $81.2 million for the comparable prior period. Full year 2019 operating income was $238.3 million, as compared to $230.5 million in 2018.
  • Fourth quarter 2019 adjusted operating income was $116.0 million, as compared to $92.7 million for the fourth quarter of 2018. Full year 2019 adjusted operating income was $338.0 million, as compared to $295.0 million in 2018.

Diagnostics

  • Fourth quarter 2019 revenue was $309.0 million, as compared to $296.5 million for the fourth quarter of 2018. Reported revenue increased 4% and organic revenue increased 5% as compared to the fourth quarter of 2018. Full year 2019 revenue was $1.14 billion, as compared to $1.08 billion in 2018. Full year revenue increased 5% and organic revenue increased 7%.
  • Fourth quarter 2019 operating income from continuing operations was $61.1 million, as compared to $48.6 million for the comparable prior period. Full year 2019 operating income was $189.3 million, as compared to $153.2 million in 2018.
  • Fourth quarter 2019 adjusted operating income was $90.6 million, as compared to $85.8 million for the fourth quarter of 2018. Full year 2019 adjusted operating income was $316.0 million, as compared to $291.9 million in 2018.

Initiates Financial Guidance: Full-Year and First Quarter 2020

For the full year 2020, the Company forecasts GAAP revenue of $3.05 billion to $3.09 billion. GAAP earnings per share from continuing operations in a range of $2.89-$2.99 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $4.50-$4.60.

For the first quarter of 2020, the Company forecasts GAAP revenue of $700 million. GAAP earnings per share from continuing operations of $0.33 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $0.70.


Conference Call Information

The Company will discuss its fourth quarter and full year 2019 results and its outlook for business trends in a conference call on January 27, 2020 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 6497348.

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 pending withdrawal 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 $2.9 billion in 2019, has about 13,000 employees serving customers in more than 190 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



Twelve Months Ended

(In thousands, except per share data)

December 29,
2019


December 30,
2018


December 29,
2019



December 30,
2018













 













 
Revenue

$

805,496

 



$

756,349

 



$

2,883,673

 




$

2,777,996

 














 
Cost of revenue

 

407,315

 



 

380,099

 



 

1,487,618

 




 

1,437,057

 

Selling, general and administrative expenses

 

210,737

 



 

210,539

 



 

815,318

 




 

811,913

 

Research and development expenses

 

47,636

 



 

51,970

 



 

189,336

 




 

193,998

 

Restructuring and other, net

 

1,560

 



 

(1,942

)



 

29,428

 




 

11,144

 














 
Operating income from continuing operations

 

138,248

 



 

115,683

 



 

361,973

 




 

323,884

 














 
Interest income

 

(570

)



 

(387

)



 

(1,495

)




 

(1,141

)

Interest expense

 

14,421

 



 

16,231

 



 

63,627

 




 

66,976

 

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

 

-

 



 

187

 



 

2,469

 




 

(12,844

)

Debt extinguishment costs

 

32,070

 



 

-

 



 

32,541

 




 

-

 

Other (income) expense, net

 

27,031

 



 

20,223

 



 

27,689

 




 

13,210

 














 
Income from continuing operations, before income taxes

 

65,296

 



 

79,429

 



 

237,142

 




 

257,683

 














 
Provision for income taxes

 

747

 



 

8,107

 



 

9,389

 




 

20,208

 














 
Income from continuing operations

 

64,549

 



 

71,322

 



 

227,753

 




 

237,475

 














 
Loss on disposition of discontinued operations, before income taxes

 

-

 



 

-

 



 

-

 




 

(859

)

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

 

48

 



 

30

 



 

195

 




 

(1,311

)














 
(Loss) gain from discontinued operations and dispositions

 

(48

)



 

(30

)



 

(195

)




 

452

 














 
Net income

$

64,501

 



$

71,292

 



$

227,558

 




$

237,927

 














 













 
Diluted earnings per share:












Income from continuing operations

$

0.58

 



$

0.64

 



$

2.04

 




$

2.13

 














 
(Loss) gain from discontinued operations and dispositions

 

(0.00

)



 

(0.00

)



 

(0.00

)




 

0.00

 














 
Net income

$

0.58

 



$

0.64

 



$

2.04

 




$

2.13

 














 













 
Weighted average diluted shares of common stock outstanding

 

111,625

 



 

111,609

 



 

111,501

 




 

111,534

 














 













 
ABOVE PREPARED IN ACCORDANCE WITH GAAP













 













 
Additional Supplemental Information (1):












(per share, continuing operations)

























 
GAAP EPS from continuing operations

 

0.58

 



 

0.64

 



 

2.04

 




 

2.13

 

Amortization of intangible assets

 

0.39

 



 

0.32

 



 

1.47

 




 

1.22

 

Debt extinguishment costs

 

0.29

 



 

-

 



 

0.29

 




 

-

 

Purchase accounting adjustments

 

0.07

 



 

0.05

 



 

0.24

 




 

0.31

 

Acquisition and divestiture-related costs

 

0.01

 



 

0.09

 



 

0.06

 




 

0.14

 

Change in fair value of financial securities

 

(0.03

)



 

-

 



 

(0.03

)




 

-

 

Acceleration of executive compensation

 

-

 



 

-

 



 

0.07

 




 

-

 

Significant litigation matters

 

0.01

 



 

0.00

 



 

0.02

 




 

0.05

 

Disposition of businesses and assets, net

 

-

 



 

0.00

 



 

0.02

 




 

(0.12

)

Mark to market on postretirement benefits

 

0.28

 



 

0.19

 



 

0.28

 




 

0.19

 

Restructuring and other, net

 

0.01

 



 

(0.02

)



 

0.26

 




 

0.10

 

Tax on above items

 

(0.25

)



 

(0.12

)



 

(0.65

)




 

(0.40

)

Impact of tax act

 

-

 



 

0.03

 



 

0.02

 




 

(0.02

)

Adjusted EPS

 

1.35

 



 

1.18

 



 

4.10

 




 

3.61

 














 
(1) amounts may not sum due to rounding

























 













 

PerkinElmer, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)








 
















 
















 






Three Months Ended


Twelve Months Ended
(In thousands, except percentages)



December 29,
2019



December 30,
2018



December 29,
2019



December 30,
2018


















 


















 
DAS
Reported revenue

$

496,457

 



$

459,892

 



$

1,746,161

 



$

1,693,211

 



















 


Reported operating income from continued operations


91,368

 




81,238

 




238,331

 




230,481

 



OP%


18.4

%




17.7

%




13.6

%




13.6

%



Amortization of intangible assets


15,793

 




11,553

 




52,898

 




46,120

 



Purchase accounting adjustments


8,377

 




308

 




20,857

 




409

 



Acquisition and divestiture-related costs


375

 




921

 




1,778

 




2,680

 



Significant litigation matters


569

 




297

 




2,189

 




5,347

 



Restructuring and other, net


(469

)




(1,606

)




21,958

 




9,960

 



Adjusted operating income


116,013

 




92,711

 




338,011

 




294,997

 



Adjusted OP%


23.4

%




20.2

%




19.4

%




17.4

%



















 
Diagnostics
Reported revenue


309,039

 




296,457

 




1,137,512

 




1,084,785

 



Purchase accounting adjustments


194

 




190

 




770

 




752

 



Adjusted Revenue


309,233

 




296,647

 




1,138,282

 




1,085,537

 



















 


Reported operating income from continued operations


61,146

 




48,611

 




189,330

 




153,196

 



OP%


19.8

%




16.4

%




16.6

%




14.1

%



Amortization of intangible assets


27,335

 




23,703

 




111,429

 




89,815

 



Purchase accounting adjustments


(369

)




4,859

 




5,412

 




34,376

 



Acquisition and divestiture-related costs


332

 




8,955

 




2,210

 




13,131

 



Significant litigation matters


106

 




-

 




106

 




193

 



Restructuring and other, net


2,029

 




(336

)




7,470

 




1,184

 



Adjusted operating income


90,579

 




85,792

 




315,957

 




291,895

 



Adjusted OP%


29.3

%




28.9

%




27.8

%




26.9

%



















 
Corporate
Reported operating loss


(14,266

)




(14,166

)




(65,688

)




(59,793

)



Acceleration of executive compensation


-

 




-

 




7,721

 




-

 



Adjusted operating loss


(14,266

)




(14,166

)




(57,967

)




(59,793

)



















 
Continuing Operations Reported revenue

$

805,496

 



$

756,349

 



$

2,883,673

 



$

2,777,996

 



Purchase accounting adjustments


194

 




190

 




770

 




752

 



Adjusted Revenue


805,690

 




756,539

 




2,884,443

 




2,778,748

 



















 


Reported operating income from continued operations


138,248

 




115,683

 




361,973

 




323,884

 



OP%


17.2

%




15.3

%




12.6

%




11.7

%



Amortization of intangible assets


43,128

 




35,256

 




164,327

 




135,935

 



Purchase accounting adjustments


8,008

 




5,167

 




26,269

 




34,785

 



Acquisition and divestiture-related costs


707

 




9,876

 




3,988

 




15,811

 



Acceleration of executive compensation


-

 




-

 




7,721

 




-

 



Significant litigation matters


675

 




297

 




2,295

 




5,540

 



Restructuring and other, net


1,560

 




(1,942

)




29,428

 




11,144

 



Adjusted operating income

$

192,326

 



$

164,337

 



$

596,001

 



$

527,099

 



Adjusted OP%


23.9

%




21.7

%




20.7

%




19.0

%



















 


















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


















 

PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS

 

 






 
(In thousands)

December 29, 2019

December 30, 2018






 
Current assets:





Cash and cash equivalents

$

191,877

 



$

163,111

 

Accounts receivable, net

 

725,184

 



 

632,669

 

Inventories, net

 

356,937

 



 

338,347

 

Other current assets

 

100,523

 



 

100,507

 

Total current assets

 

1,374,521

 



 

1,234,634

 







 
Property, plant and equipment:





At cost

 

701,580

 



 

680,183

 

Accumulated depreciation

 

(383,357

)



 

(361,593

)

Property, plant and equipment, net

 

318,223

 



 

318,590

 







 
Operating lease right-of-use assets

 

167,276

 



 

-

 

Intangible assets, net

 

1,283,286

 



 

1,199,667

 

Goodwill

 

3,111,227

 



 

2,952,608

 

Other assets, net

 

290,032

 



 

270,023

 

Total assets

$

6,544,565

 



$

5,975,522

 







 
Current liabilities:





Current portion of long-term debt

$

9,974

 



$

14,856

 

Accounts payable

 

235,855

 



 

220,949

 

Short-term accrued restructuring and other

 

11,559

 



 

4,834

 

Accrued expenses and other current liabilities

 

509,333

 



 

528,827

 

Current liabilities of discontinued operations

 

2,112

 



 

2,165

 

Total current liabilities

 

768,833

 



 

771,631

 







 
Long-term debt

 

2,064,041

 



 

1,876,624

 

Long-term liabilities

 

751,468

 



 

742,312

 

Operating lease liabilities

 

146,399

 



 

-

 

Total liabilities

 

3,730,741

 



 

3,390,567

 







 
Total stockholders' equity

 

2,813,824

 



 

2,584,955

 

Total liabilities and stockholders' equity

$

6,544,565

 



$

5,975,522

 







 






 
PREPARED IN ACCORDANCE WITH GAAP






 

PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS






 












 



Three Months Ended

Twelve Months Ended



December 29,
2019


December 30,
2018


December 29,
2019


December 30,
2018



(In thousands)

(In thousands)












 
Operating activities:











Net income

$

64,501

 



$

71,292

 



$

227,558

 



$

237,927

 

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

 

48

 



 

30

 



 

195

 



 

(452

)

Income from continuing operations

 

64,549

 



 

71,322

 



 

227,753

 



 

237,475

 

Adjustments to reconcile income from continuing operations











to net cash provided by continuing operations:











Stock-based compensation

 

6,409

 



 

5,492

 



 

31,514

 



 

28,767

 

Restructuring and other, net

 

1,560

 



 

(1,942

)



 

29,428

 



 

11,144

 

Depreciation and amortization

 

56,908

 



 

47,202

 



 

214,025

 



 

180,588

 

Pension and other postretirement expenses

 

26,107

 



 

11,915

 



 

26,107

 



 

11,915

 

Change in fair value of contingent consideration

 

(518

)



 

3,835

 



 

3,881

 



 

14,639

 

Amortization of deferred debt financing costs and accretion of discounts

 

1,068

 



 

887

 



 

3,846

 



 

3,341

 

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

 

-

 



 

187

 



 

2,469

 



 

(12,844

)

Gain on sale of investments, net

 

-

 



 

-

 



 

-

 



 

(557

)

Change in fair value of financial securities

 

(3,249

)



 

-

 



 

(3,249

)



 

-

 

Debt extinguishment costs

 

32,070

 



 

-

 



 

32,541

 



 

-

 

Amortization of acquired inventory revaluation

 

8,332

 



 

1,112

 



 

21,590

 



 

19,272

 

Deferred taxes

 

(52,678

)



 

(51,103

)



 

(52,678

)



 

(51,103

)

Contingencies and non-cash tax matters

 

(424

)



 

(671

)



 

(424

)



 

(671

)

Changes in assets and liabilities which provided (used) cash, excluding











effects from companies acquired:











Accounts receivable, net

 

(78,498

)



 

(81,842

)



 

(100,630

)



 

(94,512

)

Inventories

 

38,761

 



 

11,129

 



 

(9,607

)



 

(30,183

)

Accounts payable

 

41,394

 



 

45,487

 



 

7,351

 



 

8,900

 

Accrued expenses and other

 

73,419

 



 

96,409

 



 

(70,448

)



 

(14,933

)

Net cash provided by operating activities of continuing operations

 

215,210

 



 

159,419

 



 

363,469

 



 

311,238

 

Net cash used in operating activities of discontinued operations

 

-

 



 

-

 



 

-

 



 

(200

)

Net cash provided by operating activities

 

215,210

 



 

159,419

 



 

363,469

 



 

311,038

 













 
Investing activities:











Capital expenditures

 

(23,249

)



 

(32,810

)



 

(76,331

)



 

(93,253

)

Purchases of investments

 

(1,000

)



 

(1,519

)



 

(6,387

)



 

(7,019

)

Purchases of licenses

 

-

 



 

-

 



 

(5,000

)



 

-

 

Proceeds from surrender of life insurance policies

 

-

 



 

-

 



 

-

 



 

72

 

Proceeds from disposition of businesses and assets

 

-

 



 

-

 



 

550

 



 

38,027

 

Payment of acquisitions, net of cash and cash equivalents acquired

 

(147,785

)



 

(53,629

)



 

(400,405

)



 

(97,686

)

Net cash used in investing activities of continuing operations

 

(172,034

)



 

(87,958

)



 

(487,573

)



 

(159,859

)

Net cash provided by investing activities of discontinued operations

 

-

 



 

-

 



 

-

 



 

-

 

Net cash used in investing activities

 

(172,034

)



 

(87,958

)



 

(487,573

)



 

(159,859

)













 
Financing Activities:











Payments on borrowings

 

(273,000

)



 

(245,000

)



 

(1,692,489

)



 

(1,264,000

)

Proceeds from borrowings

 

565,000

 



 

252,000

 



 

1,599,416

 



 

857,000

 

Payments of senior debt

 

(530,276

)



 

-

 



 

(530,276

)



 

-

 

Proceeds from sale of senior debt

 

-

 



 

-

 



 

847,195

 



 

369,340

 

Payments of debt financing costs

 

(1,854

)



 

-

 



 

(9,879

)



 

(2,634

)

Settlement of cash flow hedges

 

307

 



 

(3,847

)



 

(1,280

)



 

(34,132

)

Net payments on other credit facilities

 

(3,911

)



 

(5,512

)



 

(14,975

)



 

(28,383

)

Payments for acquisition-related contingent consideration

 

(1,742

)



 

-

 



 

(29,942

)



 

(12,800

)

Proceeds from issuance of common stock under stock plans

 

2,169

 



 

5,348

 



 

19,732

 



 

24,833

 

Purchases of common stock

 

(112

)



 

(52,471

)



 

(6,313

)



 

(57,445

)

Dividends paid

 

(7,777

)



 

(7,787

)



 

(31,059

)



 

(31,009

)

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

 

(251,196

)



 

(57,269

)



 

150,130

 



 

(179,230

)

Net cash used in financing activities of discontinued operations

 

-

 



 

-

 



 

-

 



 

-

 

Net cash (used in) provided by financing activities

 

(251,196

)



 

(57,269

)



 

150,130

 



 

(179,230

)













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

 

3,937

 



 

(594

)



 

(447

)



 

(8,004

)













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

 

(204,083

)



 

13,598

 



 

25,579

 



 

(36,055

)

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

 

395,977

 



 

152,717

 



 

166,315

 



 

202,370

 

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

$

191,894

 



$

166,315

 



$

191,894

 



$

166,315

 













 












 
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

$

191,877

 



$

163,111

 



 

191,877

 



$

163,111

 

Restricted cash included in other current assets

 

17

 



 

3,204

 



 

17

 



 

3,204

 

Total cash, cash equivalents and restricted cash

$

191,894

 



$

166,315

 



$

191,894

 



$

166,315

 













 
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




December 29, 2019




December 30, 2018














 
Adjusted revenue:











Revenue

$

805.5

 






$

756.3

 




Purchase accounting adjustments

 

0.2

 






 

0.2

 




Adjusted revenue

$

805.7

 






$

756.5

 
















 
Adjusted gross margin:











Gross margin

$

398.2

 



49.4

%



$

376.3

 



49.7

%

Amortization of intangible assets

 

15.8

 



2.0

%



 

11.4

 



1.5

%

Purchase accounting adjustments

 

8.5

 



1.1

%



 

1.3

 



0.2

%

Adjusted gross margin

$

422.5

 



52.4

%



$

389.0

 



51.4

%







 
Adjusted SG&A:











SG&A

$

210.7

 



26.2

%



$

210.5

 



27.8

%

Amortization of intangible assets

 

(27.4

)



-3.4

%



 

(19.8

)



-2.6

%

Purchase accounting adjustments

 

0.5

 



0.1

%



 

(3.9

)



-0.5

%

Acquisition and divestiture-related expenses

 

(0.7

)



-0.1

%



 

(9.9

)



-1.3

%

Significant litigation matters

 

(0.7

)



-0.1

%



 

(0.3

)



0.0

%

Adjusted SG&A

$

182.5

 



22.7

%



$

176.7

 



23.4

%













 
Adjusted R&D:











R&D

$

47.6

 



5.9

%



$

52.0

 



6.9

%

Amortization of intangible assets

 

-

 



0.0

%



 

(4.1

)



-0.5

%

Adjusted R&D

$

47.6

 



5.9

%



$

47.9

 



6.3

%













 
Adjusted operating income:











Operating income

$

138.2

 



17.2

%



$

115.7

 



15.3

%

Amortization of intangible assets

 

43.1

 



5.4

%



 

35.3

 



4.7

%

Purchase accounting adjustments

 

8.0

 



1.0

%



 

5.2

 



0.7

%

Acquisition and divestiture-related expenses

 

0.7

 



0.1

%



 

9.9

 



1.3

%

Significant litigation matters

 

0.7

 



0.1

%



 

0.3

 



0.0

%

Restructuring and other, net

 

1.6

 



0.2

%



 

(1.9

)



-0.3

%

Adjusted operating income

$

192.3

 



23.9

%



$

164.3

 



21.7

%













 



PKI



Three Months Ended




December 29, 2019




December 30, 2018














 
Adjusted EPS:











GAAP EPS

$

0.58

 






$

0.64

 




Discontinued operations, net of income taxes

 

(0.00

)






 

(0.00

)




GAAP EPS from continuing operations

 

0.58

 






 

0.64

 




Amortization of intangible assets

 

0.39

 






 

0.32

 




Debt extinguishment costs

 

0.29

 






 

-

 




Purchase accounting adjustments

 

0.07

 






 

0.05

 




Acquisition and divestiture-related expenses

 

0.01

 






 

0.09

 




Change in fair value of financial securities

 

(0.03

)






 

-

 




Significant litigation matters

 

0.01

 






 

0.00

 




Disposition of businesses and assets, net

 

-

 






 

0.00

 




Mark to market on postretirement benefits

 

0.28

 






 

0.19

 




Restructuring and other, net

 

0.01

 






 

(0.02

)




Tax on above items

 

(0.25

)






 

(0.12

)




Impact of tax act

 

-

 






 

0.03

 




Adjusted EPS

$

1.35

 






$

1.18

 
















 



DAS



Three Months Ended




December 29, 2019




December 30, 2018














 
Revenue

$

496.5

 






$

459.9

 
















 
Adjusted operating income:











Operating income

$

91.4

 



18.4

%



$

81.2

 



17.7

%

Amortization of intangible assets

 

15.8

 



3.2

%



 

11.6

 



2.5

%

Purchase accounting adjustments

 

8.4

 



1.7

%



 

0.3

 



0.1

%

Acquisition and divestiture-related expenses

 

0.4

 



0.1

%



 

0.9

 



0.2

%

Significant litigation matters

 

0.6

 



0.1

%



 

0.3

 



0.1

%

Restructuring and other, net

 

(0.5

)



-0.1

%



 

(1.6

)



-0.3

%

Adjusted operating income

$

116.0

 



23.4

%



$

92.7

 



20.2

%













 



Diagnostics



Three Months Ended




December 29, 2019




December 30, 2018














 
Adjusted revenue:











Revenue

$

309.0

 






$

296.5

 




Purchase accounting adjustments

 

0.2

 






 

0.2

 




Adjusted revenue

$

309.2

 






$

296.6

 
















 
Adjusted operating income:











Operating income

$

61.1

 



19.8

%



$

48.6

 



16.4

%

Amortization of intangible assets

 

27.3

 



8.8

%



 

23.7

 



8.0

%

Purchase accounting adjustments

 

(0.4

)



-0.1

%



 

4.9

 



1.6

%

Acquisition and divestiture-related expenses

 

0.3

 



0.1

%



 

9.0

 



3.0

%

Significant litigation matters

 

0.1

 



0.0

%



 

-

 



0.0

%

Restructuring and other, net

 

2.0

 



0.7

%



 

(0.3

)



-0.1

%

Adjusted operating income

$

90.6

 



29.3

%



$

85.8

 



28.9

%













 












 
(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



Twelve Months Ended




December 29, 2019






December 30, 2018

















 
Adjusted revenue:












Revenue

$

2,883.7

 






$

2,778.0

 




Purchase accounting adjustments

 

0.8

 






 

0.8

 




Adjusted revenue

$

2,884.4

 






$

2,778.7

 

















 
Adjusted gross margin:












Gross margin

$

1,396.1

 



48.4

%



$

1,340.9

 



48.3

%

Amortization of intangible assets

 

61.4

 



2.1

%



 

46.2

 



1.7

%

Purchase accounting adjustments

 

22.4

 



0.8

%



 

20.1

 



0.7

%

Adjusted gross margin

$

1,479.8

 



51.3

%



$

1,407.2

 



50.6

%








 
Adjusted SG&A:












SG&A

$

815.3

 



28.3

%



$

811.9

 



29.2

%

Amortization of intangible assets

 

(103.0

)



-3.6

%



 

(81.8

)



-2.9

%

Purchase accounting adjustments

 

(3.9

)



-0.1

%



 

(14.7

)



-0.5

%

Acquisition and divestiture-related expenses

 

(4.0

)



-0.1

%



 

(15.8

)



-0.6

%

Acceleration of executive compensation

 

(7.7

)



-0.3

%



 

-

 



0.0

%

Significant litigation matters

 

(2.3

)



-0.1

%



 

(5.5

)



-0.2

%

Adjusted SG&A

$

694.5

 



24.1

%



$

694.1

 



25.0