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): July 28, 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 July 28, 2020 PerkinElmer, Inc. announced its financial results for the second quarter ended July 5, 2020.  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
 
 
 
 
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)

* 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:  July 28, 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 Second Quarter of 2020

  • Revenue of $811.7 million; 12% reported growth; 13% organic growth
  • GAAP EPS from continuing operations of $1.23; Adjusted EPS of $1.57

WALTHAM, Mass.--(BUSINESS WIRE)--July 28, 2020--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the second quarter ended July 5, 2020.

The Company reported GAAP earnings per share from continuing operations of $1.23, as compared to GAAP earnings per share from continuing operations of $0.62 in the second quarter of 2019. GAAP revenue for the quarter was $811.7 million, as compared to $722.5 million in the second quarter of 2019. GAAP operating income from continuing operations for the quarter was $175.6 million, as compared to $91.7 million for the same period a year ago. GAAP operating profit margin was 21.6% as a percentage of revenue, as compared to 12.7% in the second quarter of 2019.

Adjusted earnings per share from continuing operations for the quarter was $1.57, as compared to $1.00 in the second quarter of 2019. Adjusted revenue for the quarter was $811.9 million, as compared to $722.7 million in the second quarter of 2019. Adjusted operating income from continuing operations for the quarter was $228.2 million, as compared to $146.0 million for the same period a year ago. Adjusted operating profit margin was 28.1% as a percentage of adjusted revenue, as compared to 20.2% in the second quarter of 2019.

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

“I could not be more proud of how we at PerkinElmer have met the obstacles that have faced us the past few months. We have proven to be a resilient, responsive, and agile organization,” said Prahlad Singh, president and chief executive officer of PerkinElmer. “Our strong second quarter results were truly a team effort and further reinforce the diversity of our business from a portfolio and geographic standpoint.”

Financial Overview by Reporting Segment for the Second Quarter

Discovery & Analytical Solutions

  • Second quarter 2020 revenue was $391.0 million, as compared to $434.0 million for the second quarter of 2019. Reported revenue decreased 10% and organic revenue decreased 10% as compared to the second quarter of 2019.
  • Second quarter 2020 operating income from continuing operations was $39.4 million, as compared to $57.7 million for the comparable prior period.
  • Second quarter 2020 adjusted operating income was $57.4 million, as compared to $81.5 million for the second quarter of 2019.

Diagnostics

  • Second quarter 2020 revenue was $420.7 million, as compared to $288.6 million for the second quarter of 2019. Reported revenue increased 46% and organic revenue increased 48% as compared to the second quarter of 2019.
  • Second quarter 2020 operating income from continuing operations was $160.3 million, as compared to $49.3 million for the comparable prior period.
  • Second quarter 2020 adjusted operating income was $189.6 million, as compared to $79.7 million for the second quarter of 2019.

Third Quarter 2020 Guidance

For the third quarter of 2020, the Company forecasts GAAP revenue in the range of $760 million to $860 million, GAAP earnings per share from continuing operations of $0.85 to $1.20 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $1.18 to $1.53.

Conference Call Information

The Company will discuss its second quarter 2020 results and its outlook for business trends in a conference call on July 28, 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 4468217.

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) the effect of the COVID-19 pandemic on our sales and operations; (3) fluctuations in the global economic and political environments; (4) our failure to introduce new products in a timely manner; (5) 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; (6) our failure to adequately protect our intellectual property; (7) the loss of any of our licenses or licensed rights; (8) our ability to compete effectively; (9) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (10) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (11) disruptions in the supply of raw materials and supplies; (12) the manufacture and sale of products exposing us to product liability claims; (13) our failure to maintain compliance with applicable government regulations; (14) regulatory changes; (15) our failure to comply with healthcare industry regulations; (16) economic, political and other risks associated with foreign operations; (17) our ability to retain key personnel; (18) significant disruption in our information technology systems, or cybercrime; (19) our ability to obtain future financing; (20) restrictions in our credit agreements; (21) discontinuation or replacement of LIBOR; (22) the United Kingdom’s withdrawal from the European Union; (23) our ability to realize the full value of our intangible assets; (24) significant fluctuations in our stock price; (25) reduction or elimination of dividends on our common stock; and (26) 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



Six Months Ended


(In thousands, except per share data)



July 5, 2020



June 30, 2019



July 5, 2020



June 30, 2019

















 















 
Revenue



$

811,718

 



$

722,517

 



$

1,464,114

 



$

1,371,254

 

















 
Cost of revenue



 

364,374

 



 

374,724

 



 

708,747

 



 

715,655

 


Selling, general and administrative expenses



 

221,026

 



 

201,553

 



 

429,595

 



 

400,410

 


Research and development expenses



 

49,521

 



 

48,344

 



 

98,435

 



 

96,324

 


Restructuring and other, net



 

1,158

 



 

6,161

 



 

7,016

 



 

13,800

 

















 
Operating income from continuing operations



 

175,639

 



 

91,735

 



 

220,321

 



 

145,065

 

















 
Interest income



 

(192

)



 

(350

)



 

(457

)



 

(633

)


Interest expense



 

11,586

 



 

17,207

 



 

25,251

 



 

33,057

 


Loss on disposition of businesses and assets, net



 

-

 



 

336

 



 

-

 



 

2,469

 


Other (income) expense, net



 

(582

)



 

2,715

 



 

(3,989

)



 

1,580

 

















 
Income from continuing operations, before income taxes



 

164,827

 



 

71,827

 



 

199,516

 



 

108,592

 

















 
Provision for income taxes



 

27,614

 



 

2,686

 



 

28,588

 



 

3,998

 

















 
Income from continuing operations



 

137,213

 



 

69,141

 



 

170,928

 



 

104,594

 

















 
Loss on disposition of discontinued operations, before income taxes



 

-

 



 

-

 



 

-

 



 

-

 


Provision for income taxes on discontinued operations and dispositions



 

51

 



 

54

 



 

101

 



 

95

 

















 
Loss from discontinued operations and dispositions



 

(51

)



 

(54

)



 

(101

)



 

(95

)

















 
Net income



$

137,162

 



$

69,087

 



$

170,827

 



$

104,499

 

















 















 
Diluted earnings per share:














Income from continuing operations



$

1.23

 



$

0.62

 



$

1.53

 



$

0.94

 

















 
Loss from discontinued operations and dispositions



 

(0.00

)



 

(0.00

)



 

(0.00

)



 

(0.00

)

















 
Net income



$

1.23

 



$

0.62

 



$

1.53

 



$

0.94

 

















 















 
Weighted average diluted shares of common stock outstanding



 

111,869

 



 

111,528

 



 

111,756

 



 

111,411

 

















 
ABOVE PREPARED IN ACCORDANCE WITH GAAP















 
Additional Supplemental Information (1):














(per share, continuing operations)





























 
GAAP EPS from continuing operations



$

1.23

 



$

0.62

 



$

1.53

 



$

0.94

 


Amortization of intangible assets



 

0.42

 



 

0.37

 



 

0.84

 



 

0.72

 


Purchase accounting adjustments



 

0.01

 



 

0.05

 



 

(0.09

)



 

0.08

 


Acquisition and divestiture-related costs



 

(0.05

)



 

0.03

 



 

0.06

 



 

0.05

 


Significant litigation matters and settlements



 

0.03

 



 

0.00

 



 

0.03

 



 

0.01

 


Significant environmental matters



 

0.05

 



 

-

 



 

0.05

 



 

-

 


Disposition of businesses and assets, net



 

-

 



 

0.00

 



 

-

 



 

0.02

 


Restructuring and other, net



 

0.01

 



 

0.06

 



 

0.06

 



 

0.12

 


Tax on above items



 

(0.13

)



 

(0.13

)



 

(0.25

)



 

(0.25

)


Adjusted EPS



$

1.57

 



$

1.00

 



$

2.24

 



$

1.69

 

















 
(1) amounts may not sum due to rounding















PerkinElmer, Inc. and Subsidiaries

REVENUE AND OPERATING INCOME (LOSS)















 








Three Months Ended



Six Months Ended

(In thousands, except percentages)






July 5, 2020



June 30, 2019



July 5, 2020



June 30, 2019


















 

















 
DAS

Reported revenue


$

391,002

 


$

433,967

 


$

789,397

 


$

822,800

 


















 



Reported operating income from continued operations



39,430

 



57,689

 



67,943

 



94,616

 




OP%



10.1

%



13.3

%



8.6

%



11.5

%




Amortization of intangible assets



20,506

 



13,113

 



41,216

 



23,382

 




Purchase accounting adjustments



136

 



5,014

 



(11,334

)



5,051

 




Acquisition and divestiture-related costs



(5,486

)



416

 



6,833

 



959

 




Significant litigation matters and settlements



2,001

 



439

 



2,399

 



815

 




Restructuring and other, net



845

 



4,820

 



4,754

 



11,000

 




Adjusted operating income



57,432

 



81,491

 



111,811

 



135,823

 




Adjusted OP%



14.7

%



18.8

%



14.2

%



16.5

%


















 
Diagnostics

Reported revenue



420,716

 



288,550

 



674,717

 



548,454

 




Purchase accounting adjustments



196

 



192

 



392

 



384

 




Adjusted Revenue



420,912

 



288,742

 



675,109

 



548,838

 


















 



Reported operating income from continued operations



160,300

 



49,255

 



189,891

 



80,741

 




OP%



38.1

%



17.1

%



28.1

%



14.7

%




Amortization of intangible assets



26,211

 



28,089

 



52,751

 



56,547

 




Purchase accounting adjustments



1,336

 



516

 



1,765

 



4,087

 




Acquisition and divestiture-related costs



263

 



478

 



305

 



1,485

 




Significant litigation matters and settlements



1,200

 



-

 



1,245

 



-

 




Restructuring and other, net



313

 



1,341

 



2,262

 



2,800

 




Adjusted operating income



189,623

 



79,679

 



248,219

 



145,660

 




Adjusted OP%



45.1

%



27.6

%



36.8

%



26.5

%


















 
Corporate

Reported operating loss



(24,091

)



(15,209

)



(37,513

)



(30,292

)




Significant environmental matters



5,242

 



-

 



5,242

 



-

 




Adjusted operating loss



(18,849

)



(15,209

)



(32,271

)



(30,292

)


















 
Continuing Operations

Reported revenue


$

811,718

 


$

722,517

 


$

1,464,114

 


$

1,371,254

 




Purchase accounting adjustments



196

 



192

 



392

 



384

 




Adjusted Revenue



811,914

 



722,709

 



1,464,506

 



1,371,638

 


















 



Reported operating income from continued operations



175,639

 



91,735

 



220,321

 



145,065

 




OP%



21.6

%



12.7

%



15.0

%



10.6

%




Amortization of intangible assets



46,717

 



41,202

 



93,967

 



79,929

 




Purchase accounting adjustments



1,472

 



5,530

 



(9,569

)



9,138

 




Acquisition and divestiture-related costs



(5,223

)



894

 



7,138

 



2,444

 




Significant litigation matters and settlements



3,201

 



439

 



3,644

 



815

 




Significant environmental matters



5,242

 



-

 



5,242

 



-

 




Restructuring and other, net



1,158

 



6,161

 



7,016

 



13,800

 




Adjusted operating income


$

228,206

 


$

145,961

 


$

327,759

 


$

251,191

 




Adjusted OP%



28.1

%



20.2

%



22.4

%



18.3

%


















 

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


PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS

 








 
(In thousands)



July 5, 2020

December 29, 2019








 
Current assets:







Cash and cash equivalents



$

218,536

 



$

191,877

 

Accounts receivable, net



 

708,799

 



 

725,184

 

Inventories



 

477,707

 



 

356,937

 

Other current assets



 

122,541

 



 

100,381

 

Total current assets



 

1,527,583

 



 

1,374,379

 









 
Property, plant and equipment:







At cost



 

729,596

 



 

701,580

 

Accumulated depreciation



 

(406,807

)



 

(383,357

)

Property, plant and equipment, net



 

322,789

 



 

318,223

 









 
Operating lease right-of-use assets



 

195,222

 



 

167,276

 

Intangible assets, net



 

1,188,464

 



 

1,283,286

 

Goodwill



 

3,107,373

 



 

3,111,227

 

Other assets, net



 

291,555

 



 

284,173

 

Total assets



$

6,632,986

 



$

6,538,564

 









 
Current liabilities:







Current portion of long-term debt



$

9,762

 



$

9,974

 

Accounts payable



 

255,137

 



 

235,855

 

Short-term accrued restructuring and other



 

9,613

 



 

11,559

 

Accrued expenses and other current liabilities



 

550,067

 



 

503,332

 

Current liabilities of discontinued operations



 

2,097

 



 

2,112

 

Total current liabilities



 

826,676

 



 

762,832

 









 
Long-term debt



 

1,961,576

 



 

2,064,041

 

Long-term liabilities



 

703,208

 



 

751,468

 

Operating lease liabilities



 

177,893

 



 

146,399

 

Total liabilities



 

3,669,353

 



 

3,724,740

 









 
Total stockholders' equity



 

2,963,633

 



 

2,813,824

 

Total liabilities and stockholders' equity



$

6,632,986

 



$

6,538,564

 









 
PREPARED IN ACCORDANCE WITH GAAP

PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS






 












 



Three Months Ended

Six Months Ended



July 5, 2020

June 30, 2019

July 5, 2020

June 30, 2019



(In thousands)

(In thousands)












 
Operating activities:











Net income

$

137,162

 



$

69,087

 



$

170,827

 



$

104,499

 

Loss from discontinued operations and dispositions, net of income taxes

 

51

 



 

54

 



 

101

 



 

95

 

Income from continuing operations

 

137,213

 



 

69,141

 



 

170,928

 



 

104,594

 

Adjustments to reconcile income from continuing operations to net cash provided by (used in) continuing operations:











Stock-based compensation

 

9,604

 



 

6,703

 



 

12,654

 



 

12,801

 

Restructuring and other, net

 

1,158

 



 

6,161

 



 

7,016

 



 

13,800

 

Depreciation and amortization

 

59,289

 



 

53,324

 



 

120,047

 



 

103,793

 

Change in fair value of contingent consideration

 

879

 



 

59

 



 

(11,446

)



 

3,161

 

Amortization of deferred debt financing costs and accretion of discounts

 

935

 



 

929

 



 

1,642

 



 

1,790

 

Loss on disposition of businesses and assets, net

 

485

 



 

336

 



 

485

 



 

2,469

 

Amortization of acquired inventory revaluation

 

397

 



 

5,282

 



 

1,485

 



 

5,565

 

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







 

-

 




Accounts receivable, net

 

(76,288

)



 

(17,468

)



 

4,312

 



 

(9,604

)

Inventories

 

(71,949

)



 

(12,009

)



 

(126,707

)



 

(50,450

)

Accounts payable

 

17,744

 



 

(38,500

)



 

20,907

 



 

(39,951

)

Accrued expenses and other

 

59,130

 



 

(27,100

)



 

(2,677

)



 

(106,425

)

Net cash provided by operating activities of continuing operations

 

138,597

 



 

46,858

 



 

198,646

 



 

41,543

 

Net cash used in operating activities of discontinued operations

 

-

 



 

-

 



 

-

 



 

-

 

Net cash provided by operating activities

 

138,597

 



 

46,858

 



 

198,646

 



 

41,543

 













 
Investing activities:











Capital expenditures

 

(16,650

)



 

(16,586

)



 

(37,138

)



 

(36,461

)

Purchases of investments

 

(5,755

)



 

-

 



 

(7,393

)



 

(868

)

Purchases of licenses

 

-

 



 

(348

)



 

-

 



 

(5,000

)

Proceeds from surrender of life insurance policies

 

79

 



 

-

 



 

131

 



 

-

 

Proceeds from disposition of businesses and assets

 

1,755

 



 

-

 



 

1,815

 



 

550

 

Payment of acquisitions, net of cash and cash equivalents acquired

 

(2,990

)



 

(240,354

)



 

(2,990

)



 

(244,738

)

Net cash used in investing activities of continuing operations

 

(23,561

)



 

(257,288

)



 

(45,575

)



 

(286,517

)

Net cash provided by investing activities of discontinued operations

 

-

 



 

-

 



 

-

 



 

-

 

Net cash used in investing activities

 

(23,561

)



 

(257,288

)



 

(45,575

)



 

(286,517

)













 
Financing Activities:











Payments on borrowings

 

(149,000

)



 

(426,000

)



 

(290,000

)



 

(578,000

)

Proceeds from borrowings

 

63,000

 



 

670,550

 



 

188,000

 



 

849,550

 

Payments of debt financing costs

 

-

 



 

(93

)



 

-

 



 

(181

)

Settlement of cash flow hedges

 

(3,671

)



 

16

 



 

5,037

 



 

(1,659

)

Net payments on other credit facilities

 

(1,753

)



 

(6,330

)



 

(6,036

)



 

(9,806

)

Payments for acquisition-related contingent consideration

 

(5,200

)



 

(11,600

)



 

(5,200

)



 

(23,700

)

Proceeds from issuance of common stock under stock plans

 

8,968

 



 

7,944

 



 

10,074

 



 

16,554

 

Purchases of common stock

 

(327

)



 

(764

)



 

(6,669

)



 

(6,057

)

Dividends paid

 

(7,791

)



 

(7,764

)



 

(15,572

)



 

(15,507

)

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

 

(95,774

)



 

225,959

 



 

(120,366

)



 

231,194

 

Net cash used in financing activities of discontinued operations

 

-

 



 

-

 



 

-

 



 

-

 

Net cash (used in) provided by financing activities

 

(95,774

)



 

225,959

 



 

(120,366

)



 

231,194

 













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

 

5,510

 



 

235

 



 

(4,658

)



 

685

 













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

 

24,772

 



 

15,764

 



 

28,047

 



 

(13,095

)

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

 

195,169

 



 

137,456

 



 

191,894

 



 

166,315

 

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

$

219,941

 



$

153,220

 



$

219,941

 



$

153,220

 













 












 
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

$

218,536

 



$

150,016

 



$

218,536

 



$

150,016

 

Restricted cash included in other current assets

 

1,405

 



 

3,204

 



 

1,405

 



 

3,204

 

Total cash, cash equivalents and restricted cash

$

219,941

 



$

153,220

 



$

219,941

 



$

153,220

 













 
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






July 5, 2020






June 30, 2019




















 
Adjusted revenue:














Revenue



$

811.7

 






$

722.5

 





Purchase accounting adjustments



 

0.2

 






 

0.2

 





Adjusted revenue



$

811.9

 






$

722.7

 




















 
Adjusted gross margin:














Gross margin



$

447.3

 



55.1

%



$

347.8

 



48.1

%


Amortization of intangible assets



 

16.0

 



2.0

%



 

15.6

 



2.2

%


Purchase accounting adjustments



 

0.6

 



0.1

%



 

5.5

 



0.8

%


Adjusted gross margin



$

463.9

 



57.1

%



$

368.9

 



51.0

%











 
Adjusted SG&A:














SG&A



$

221.0

 



27.2

%



$

201.6

 



27.9

%


Amortization of intangible assets



 

(30.7

)



-3.8

%



 

(25.6

)



-3.5

%


Purchase accounting adjustments



 

(0.9

)



-0.1

%



 

(0.1

)



0.0

%


Acquisition and divestiture-related expenses



 

5.2

 



0.6

%



 

(0.9

)



-0.1

%


Significant litigation matters and settlements



 

(3.2

)



-0.4

%



 

(0.4

)



-0.1

%


Significant environmental matters



 

(5.2

)



-0.6

%



 

-

 



0.0

%


Adjusted SG&A



$

186.2

 



22.9

%



$

174.6

 



24.2

%

















 
R&D



$

49.5

 



6.1

%



$

48.3

 



6.7

%

















 
Adjusted operating income:














Operating income



$

175.6

 



21.6

%



$

91.7

 



12.7

%


Amortization of intangible assets



 

46.7

 



5.8

%



 

41.2

 



5.7

%


Purchase accounting adjustments



 

1.5

 



0.2

%



 

5.5

 



0.8

%


Acquisition and divestiture-related expenses



 

(5.2

)



-0.6

%



 

0.9

 



0.1

%


Significant litigation matters and settlements



 

3.2

 



0.4

%



 

0.4

 



0.1

%


Significant environmental matters



 

5.2

 



0.6

%



 

-

 



0.0

%


Restructuring and other, net



 

1.2

 



0.1

%



 

6.2

 



0.9

%


Adjusted operating income



$

228.2

 



28.1

%



$

146.0

 



20.2

%






 




PKI





Three Months Ended






July 5, 2020






June 30, 2019




















 
Adjusted EPS:














GAAP EPS



$

1.23

 






$

0.62

 





Discontinued operations, net of income taxes



 

(0.00

)






 

(0.00

)





GAAP EPS from continuing operations



 

1.23

 






 

0.62

 





Amortization of intangible assets



 

0.42

 






 

0.37

 





Purchase accounting adjustments



 

0.01

 






 

0.05

 





Acquisition and divestiture-related expenses



 

(0.05

)






 

0.03

 





Significant litigation matters and settlements



 

0.03

 






 

0.00

 





Significant environmental matters



 

0.05

 






 

-

 





Disposition of businesses and assets, net



 

-

 






 

0.00

 





Restructuring and other, net



 

0.01

 






 

0.06

 





Tax on above items



 

(0.13

)






 

(0.13

)





Adjusted EPS



$

1.57

 






$

1.00

 









 




DAS





Three Months Ended






July 5, 2020






June 30, 2019




















 
Revenue



$

391.0

 






$

434.0

 




















 
Adjusted operating income:














Operating income



$

39.4

 



10.1

%



$

57.7

 



13.3

%


Amortization of intangible assets



 

20.5

 



5.2

%



 

13.1

 



3.0

%


Purchase accounting adjustments



 

0.1

 



0.0

%



 

5.0

 



1.2

%


Acquisition and divestiture-related expenses



 

(5.5

)



-1.4

%



 

0.4

 



0.1

%


Significant litigation matters and settlements



 

2.0

 



0.5

%



 

0.4

 



0.1

%


Restructuring and other, net



 

0.8

 



0.2

%



 

4.8

 



1.1

%


Adjusted operating income



$

57.4

 



14.7

%



$

81.5

 



18.8

%






 




Diagnostics





Three Months Ended






July 5, 2020






June 30, 2019




















 
Adjusted revenue:














Revenue



$

420.7

 






$

288.6

 





Purchase accounting adjustments



 

0.2

 






 

0.2

 





Adjusted revenue



$

420.9

 






$

288.7

 




















 
Adjusted operating income:














Operating income



$

160.3

 



38.1

%



$

49.3

 



17.1

%


Amortization of intangible assets



 

26.2

 



6.2

%



 

28.1

 



9.7

%


Purchase accounting adjustments



 

1.3

 



0.3

%



 

0.5

 



0.2

%


Acquisition and divestiture-related expenses



 

0.3

 



0.1

%



 

0.5

 



0.2

%


Significant litigation matters and settlements



 

1.2

 



0.3

%



 

-

 



0.0

%


Restructuring and other, net



 

0.3

 



0.1

%



 

1.3

 



0.5

%


Adjusted operating income



$

189.6

 



45.1

%



$

79.7

 



27.6

%

















 
(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





Six Months Ended






July 5, 2020






June 30, 2019




















 
Adjusted revenue:














Revenue



$

1,464.1

 






$

1,371.3

 





Purchase accounting adjustments



 

0.4

 






 

0.4

 





Adjusted revenue



$

1,464.5

 






$

1,371.6

 




















 
Adjusted gross margin:














Gross margin



$

755.4

 



51.6

%



$

655.6

 



47.8

%


Amortization of intangible assets



 

32.1

 



2.2

%



 

30.4

 



2.2

%


Purchase accounting adjustments



 

1.9

 



0.1

%



 

6.0

 



0.4

%


Adjusted gross margin



$

789.3

 



53.9

%



$

692.0

 



50.5

%











 
Adjusted SG&A:














SG&A



$

429.6

 



29.3

%



$

400.4

 



29.2

%


Amortization of intangible assets



 

(61.9

)



-4.2

%



 

(49.5

)



-3.6

%


Purchase accounting adjustments



 

11.4

 



0.8

%



 

(3.2

)



-0.2

%


Acquisition and divestiture-related expenses



 

(7.1

)



-0.5

%



 

(2.4

)



-0.2

%


Acceleration of executive compensation



 

-

 



0.0

%



 

-