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 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 October 28, 2020, PerkinElmer, Inc. announced its financial results for the third quarter ended October 4, 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)

* 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 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 Third Quarter of 2020

  • Revenue of $964.0 million; 36% reported growth; 34% organic growth
  • GAAP EPS from continuing operations of $1.57; Adjusted EPS of $2.09

WALTHAM, Mass.--(BUSINESS WIRE)--October 28, 2020--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the third quarter ended October 4, 2020.

The Company reported GAAP earnings per share from continuing operations of $1.57, as compared to GAAP earnings per share from continuing operations of $0.53 in the third quarter of 2019. GAAP revenue for the quarter was $964.0 million, as compared to $706.9 million in the third quarter of 2019. GAAP operating income from continuing operations for the quarter was $248.0 million, as compared to $78.7 million for the same period a year ago. GAAP operating profit margin was 25.7% as a percentage of revenue, as compared to 11.1% in the third quarter of 2019.

Adjusted earnings per share from continuing operations for the quarter was $2.09, as compared to $1.06 in the third quarter of 2019. Adjusted revenue for the quarter was $964.2 million, as compared to $707.1 million in the third quarter of 2019. Adjusted operating income from continuing operations for the quarter was $304.3 million, as compared to $152.5 million for the same period a year ago. Adjusted operating profit margin was 31.6% as a percentage of adjusted revenue, as compared to 21.6% in the third quarter of 2019.

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

“I remain humbled by and immensely proud of how everyone within PerkinElmer has rallied together to tackle this year’s challenges,” said Prahlad Singh, president and chief executive officer of PerkinElmer. “As we look to 2021 and beyond, the environment will undoubtedly be different from the future we imagined a year ago. However, I could not be more confident that we as an organization are headed in the right direction and better positioned to tackle the challenges of tomorrow.”

Financial Overview by Reporting Segment for the Third Quarter

Discovery & Analytical Solutions

  • Third quarter 2020 revenue was $423.6 million, as compared to $426.9 million for the third quarter of 2019. Reported revenue decreased 1% and organic revenue decreased 3% as compared to the third quarter of 2019.
  • Third quarter 2020 operating income from continuing operations was $42.7 million, as compared to $52.3 million for the comparable prior period.
  • Third quarter 2020 adjusted operating income was $62.5 million, as compared to $86.2 million for the third quarter of 2019.

Diagnostics

  • Third quarter 2020 revenue was $540.4 million, as compared to $280.0 million for the third quarter of 2019. Reported revenue increased 93% and organic revenue increased 92% as compared to the third quarter of 2019.
  • Third quarter 2020 operating income from continuing operations was $223.8 million, as compared to $47.4 million for the comparable prior period.
  • Third quarter 2020 adjusted operating income was $260.3 million, as compared to $79.7 million for the third quarter of 2019.

Fourth Quarter 2020 Guidance

For the fourth quarter of 2020, the Company forecasts GAAP revenue in the range of $1.12 billion to $1.23 billion, GAAP earnings per share from continuing operations of $2.27 to $2.67 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $2.60 to $3.00.

Conference Call Information

The Company will discuss its third quarter 2020 results and its outlook for business trends in a conference call on October 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 6884834.

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


Nine Months Ended



(In thousands, except per share data)
October 4, 2020
September 29, 2019
October 4, 2020
September 29, 2019










 










 

Revenue

$

964,025

 


$

706,923

 


$

2,428,139

 


$

2,078,177

 












 

Cost of revenue

 

436,580

 


 

364,648

 


 

1,145,327

 


 

1,080,303

 



Selling, general and administrative expenses

 

225,249

 


 

204,171

 


 

654,844

 


 

604,581

 



Research and development expenses

 

50,131

 


 

45,376

 


 

148,566

 


 

141,700

 



Restructuring and other, net

 

4,059

 


 

14,068

 


 

11,075

 


 

27,868

 












 

Operating income from continuing operations

 

248,006

 


 

78,660

 


 

468,327

 


 

223,725

 












 

Interest income

 

(205

)


 

(292

)


 

(662

)


 

(925

)



Interest expense

 

12,057

 


 

16,149

 


 

37,308

 


 

49,206

 



Loss on disposition of businesses and assets, net

 

-

 


 

-

 


 

-

 


 

2,469

 



Debt extinguishment costs

 

-

 


 

471

 


 

-

 


 

471

 



Other expense (income), net

 

2,397

 


 

(922

)


 

(1,592

)


 

658

 












 

Income from continuing operations, before income taxes

 

233,757

 


 

63,254

 


 

433,273

 


 

171,846

 












 

Provision for income taxes

 

57,021

 


 

4,644

 


 

85,609

 


 

8,642

 












 

Income from continuing operations

 

176,736

 


 

58,610

 


 

347,664

 


 

163,204

 












 

Loss on disposition of discontinued operations, before income taxes

 

-

 


 

-

 


 

-

 


 

-

 



Provision for income taxes on discontinued operations and dispositions

 

37

 


 

52

 


 

138

 


 

147

 












 

Loss from discontinued operations and dispositions

 

(37

)


 

(52

)


 

(138

)


 

(147

)












 

Net income

$

176,699

 


$

58,558

 


$

347,526

 


$

163,057

 












 










 

Diluted earnings per share:









Income from continuing operations

$

1.57

 


$

0.53

 


$

3.11

 


$

1.46

 












 

Loss from discontinued operations and dispositions

 

(0.00

)


 

(0.00

)


 

(0.00

)


 

(0.00

)












 

Net income

$

1.57

 


$

0.52

 


$

3.10

 


$

1.46

 












 










 

Weighted average diluted shares of common stock outstanding

 

112,292

 


 

111,559

 


 

111,935

 


 

111,460

 












 










 

ABOVE PREPARED IN ACCORDANCE WITH GAAP










 










 

Additional Supplemental Information (1):









(per share, continuing operations)


















 

GAAP EPS from continuing operations

$

1.57

 


$

0.53

 


$

3.11

 


$

1.46

 



Amortization of intangible assets

 

0.44

 


 

0.37

 


 

1.28

 


 

1.09

 



Debt extinguishment costs

 

-

 


 

0.00

 


 

-

 


 

0.00

 



Purchase accounting adjustments

 

0.03

 


 

0.08

 


 

(0.06

)


 

0.16

 



Acquisition and divestiture-related costs

 

0.00

 


 

0.01

 


 

0.07

 


 

0.05

 



Change in fair value of financial securities

 

(0.00

)


 

-

 


 

(0.00

)


 

-

 



Acceleration of executive compensation

 

-

 


 

0.07

 


 

-

 


 

0.07

 



Significant litigation matters and settlements

 

-

 


 

0.01

 


 

0.03

 


 

0.01

 



Significant environmental matters

 

-

 


 

-

 


 

0.05

 


 

-

 



Disposition of businesses and assets, net

 

-

 


 

-

 


 

-

 


 

0.02

 



Restructuring and other, net

 

0.04

 


 

0.13

 


 

0.10

 


 

0.25

 



Tax on above items

 

(0.12

)


 

(0.16

)


 

(0.37

)


 

(0.40

)



Impact of tax act

 

-

 


 

0.02

 


 

-

 


 

0.02

 



Significant tax items

 

0.14

 


 

-

 


 

0.14

 


 

-

 



Adjusted EPS

$

2.09

 


$

1.06

 


$

4.33

 


$

2.75

 












 

(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)
October 4, 2020

September 29, 2019

October 4, 2020

September 29, 2019













 













 
DAS
Reported revenue $

423,623

 


$

426,904

 


$

1,213,020

 


$

1,249,704

 














 


Reported operating income from continued operations

42,689

 



52,347

 



110,632

 



146,963

 



OP%

10.1

%



12.3

%



9.1

%



11.8

%



Amortization of intangible assets

17,607

 



13,723

 



58,823

 



37,105

 



Purchase accounting adjustments

-

 



7,429

 



(11,334

)



12,480

 



Acquisition and divestiture-related costs

212

 



444

 



7,045

 



1,403

 



Significant litigation matters and settlements

-

 



805

 



2,399

 



1,620

 



Restructuring and other, net

1,979

 



11,427

 



6,733

 



22,427

 



Adjusted operating income

62,487

 



86,175

 



174,298

 



221,998

 



Adjusted OP%

14.8

%



20.2

%



14.4

%



17.8

%














 
Diagnostics
Reported revenue

540,402

 



280,019

 



1,215,119

 



828,473

 



Purchase accounting adjustments

196

 



192

 



588

 



576

 



Adjusted Revenue

540,598

 



280,211

 



1,215,707

 



829,049

 














 


Reported operating income from continued operations

223,819

 



47,443

 



413,710

 



128,184

 



OP%

41.4

%



16.9

%



34.0

%



15.5

%



Amortization of intangible assets

31,292

 



27,547

 



84,043

 



84,094

 



Purchase accounting adjustments

3,107

 



1,694

 



4,872

 



5,781

 



Acquisition and divestiture-related costs

18

 



393

 



323

 



1,878

 



Significant litigation matters and settlements

-

 



-

 



1,245

 



-

 



Restructuring and other, net

2,080

 



2,641

 



4,342

 



5,441

 



Adjusted operating income

260,316

 



79,718

 



508,535

 



225,378

 



Adjusted OP%

48.2

%



28.4

%



41.8

%



27.2

%














 
Corporate
Reported operating loss

(18,502

)



(21,130

)



(56,015

)



(51,422

)



Significant environmental matters

-

 



-

 



5,242

 



-

 



Acceleration of executive compensation

-

 



7,721

 



-

 



7,721

 



Adjusted operating loss

(18,502

)



(13,409

)



(50,773

)



(43,701

)














 
Continuing Operations Reported revenue $

964,025

 


$

706,923

 


$

2,428,139

 


$

2,078,177

 



Purchase accounting adjustments

196

 



192

 



588

 



576

 



Adjusted Revenue

964,221

 



707,115

 



2,428,727

 



2,078,753

 














 


Reported operating income from continued operations

248,006

 



78,660

 



468,327

 



223,725

 



OP%

25.7

%



11.1

%



19.3

%



10.8

%



Amortization of intangible assets

48,899

 



41,270

 



142,866

 



121,199

 



Purchase accounting adjustments

3,107

 



9,123

 



(6,462

)



18,261

 



Acquisition and divestiture-related costs

230

 



837

 



7,368

 



3,281

 



Acceleration of executive compensation

-

 



7,721

 



-

 



7,721

 



Significant litigation matters and settlements

-

 



805

 



3,644

 



1,620

 



Significant environmental matters

-

 



-

 



5,242

 



-

 



Restructuring and other, net

4,059

 



14,068

 



11,075

 



27,868

 



Adjusted operating income $

304,301

 


$

152,484

 


$

632,060

 


$

403,675

 



Adjusted OP%

31.6

%



21.6

%



26.0

%



19.4

%














 













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

PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS

 

 



 
(In thousands) October 4, 2020
December 29, 2019



 
Current assets:


Cash and cash equivalents

$

258,293

 


$

191,877

 

Accounts receivable, net

 

797,911

 


 

725,184

 

Inventories, net

 

486,555

 


 

356,937

 

Other current assets

 

133,062

 


 

100,381

 

Total current assets

 

1,675,821

 


 

1,374,379

 




 
Property, plant and equipment:


At cost

 

762,661

 


 

701,580

 

Accumulated depreciation

 

(426,219

)


 

(383,357

)

Property, plant and equipment, net

 

336,442

 


 

318,223

 




 
Operating lease right-of-use assets

 

193,897

 


 

167,276

 

Intangible assets, net

 

1,181,754

 


 

1,283,286

 

Goodwill

 

3,161,998

 


 

3,111,227

 

Other assets, net

 

315,653

 


 

284,173

 

Total assets

$

6,865,565

 


$

6,538,564

 




 
Current liabilities:


Current portion of long-term debt

$

360,217

 


$

9,974

 

Accounts payable

 

258,038

 


 

235,855

 

Short-term accrued restructuring and other

 

10,344

 


 

11,559

 

Accrued expenses and other current liabilities

 

614,101

 


 

503,332

 

Current liabilities of discontinued operations

 

2,097

 


 

2,112

 

Total current liabilities

 

1,244,797

 


 

762,832

 




 
Long-term debt

 

1,492,633

 


 

2,064,041

 

Long-term liabilities

 

720,800

 


 

751,468

 

Operating lease liabilities

 

175,654

 


 

146,399

 

Total liabilities

 

3,633,884

 


 

3,724,740

 




 
Total stockholders' equity

 

3,231,681

 


 

2,813,824

 

Total liabilities and stockholders' equity

$

6,865,565

 


$

6,538,564

 




 



 
PREPARED IN ACCORDANCE WITH GAAP

PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS




 







 

Three Months Ended
Nine Months Ended

October 4, 2020
September 29, 2019
October 4, 2020
September 29, 2019

(In thousands)
(In thousands)







 
Operating activities:






Net income

$

176,699

 


$

58,558

 


$

347,526

 


$

163,057

 

Loss from discontinued operations and dispositions, net of income taxes

 

37

 


 

52

 


 

138

 


 

147

 

Income from continuing operations

 

176,736

 


 

58,610

 


 

347,664

 


 

163,204

 

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






Stock-based compensation

 

7,117

 


 

12,304

 


 

19,770

 


 

25,105

 

Restructuring and other, net

 

4,059

 


 

14,068

 


 

11,075

 


 

27,868

 

Depreciation and amortization

 

62,474

 


 

53,324

 


 

182,521

 


 

157,117

 

Change in fair value of contingent consideration

 

2,639

 


 

1,238

 


 

(8,807

)


 

4,399

 

Amortization of deferred debt financing costs and accretion of discounts

 

917

 


 

988

 


 

2,559

 


 

2,778

 

Loss on disposition of businesses and assets, net

 

401

 


 

-

 


 

886

 


 

2,469

 

Debt extinguishment costs

 

-

 


 

471

 


 

-

 


 

471

 

Amortization of acquired inventory revaluation

 

272

 


 

7,693

 


 

1,757

 


 

13,258

 

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






Accounts receivable, net

 

(72,007

)


 

(12,528

)


 

(67,695

)


 

(22,132

)

Inventories

 

5,773

 


 

2,082

 


 

(120,934

)


 

(48,367

)

Accounts payable

 

(4,517

)


 

5,908

 


 

16,391

 


 

(34,043

)

Accrued expenses and other

 

27,569

 


 

(37,443

)


 

24,893

 


 

(143,869

)

Net cash provided by operating activities of continuing operations

 

211,433

 


 

106,715

 


 

410,080

 


 

148,258

 

Net cash used in operating activities of discontinued operations

 

-

 


 

-

 


 

-

 


 

-

 

Net cash provided by operating activities

 

211,433

 


 

106,715

 


 

410,080

 


 

148,258

 








 
Investing activities:






Capital expenditures

 

(20,253

)


 

(16,621

)


 

(57,391

)


 

(53,082

)

Purchases of investments

 

(2,166

)


 

(4,519

)


 

(9,559

)


 

(5,387

)

Purchases of licenses

 

-

 


 

-

 


 

-

 


 

(5,000

)

Proceeds from surrender of life insurance policies

 

-

 


 

-

 


 

131

 


 

-

 

Proceeds from disposition of businesses and assets

 

608

 


 

-

 


 

2,423

 


 

550

 

Payment of acquisitions, net of cash and cash equivalents acquired

 

(712

)


 

(7,882

)


 

(3,702

)


 

(252,620

)

Net cash used in investing activities of continuing operations

 

(22,523

)


 

(29,022

)


 

(68,098

)


 

(315,539

)

Net cash provided by investing activities of discontinued operations

 

-

 


 

-

 


 

-

 


 

-

 

Net cash used in investing activities

 

(22,523

)


 

(29,022

)


 

(68,098

)


 

(315,539

)








 
Financing Activities:






Payments on borrowings

 

(225,210

)


 

(841,489

)


 

(515,210

)


 

(1,419,489

)

Proceeds from borrowings

 

69,000

 


 

184,866

 


 

257,000

 


 

1,034,416

 

Proceeds from sale of senior debt

 

-

 


 

847,195

 


 

-

 


 

847,195

 

Payments of debt financing costs

 

-

 


 

(7,741

)


 

-

 


 

(7,922

)

Settlement of cash flow hedges

 

(7,126

)


 

72

 


 

(2,089

)


 

(1,587

)

Net payments on other credit facilities

 

(2,088

)


 

(1,360

)


 

(8,124

)


 

(11,166

)

Payments for acquisition-related contingent consideration

 

-

 


 

(4,500

)


 

(5,200

)


 

(28,200

)

Proceeds from issuance of common stock under stock plans

 

17,454

 


 

1,009

 


 

27,528

 


 

17,563

 

Purchases of common stock

 

(159

)


 

(144

)


 

(6,829

)


 

(6,201

)

Dividends paid

 

(7,809

)


 

(7,775

)


 

(23,381

)


 

(23,282

)

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

 

(155,938

)


 

170,133

 


 

(276,305

)


 

401,327

 

Net cash used in financing activities of discontinued operations

 

-

 


 

-

 


 

-

 


 

-

 

Net cash (used in) provided by financing activities

 

(155,938

)


 

170,133

 


 

(276,305

)


 

401,327

 








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

 

5,490

 


 

(5,069

)


 

832

 


 

(4,384

)








 
Net increase in cash, cash equivalents, and restricted cash

 

38,462

 


 

242,757

 


 

66,509

 


 

229,662

 

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

 

219,941

 


 

153,220

 


 

191,894

 


 

166,315

 

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

$

258,403

 


$

395,977

 


$

258,403

 


$

395,977

 








 







 
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

$

258,293

 


$

392,969

 


$

258,293

 


$

392,969

 

Restricted cash included in other current assets

 

110

 


 

3,008

 


 

110

 


 

3,008

 

Total cash, cash equivalents and restricted cash

$

258,403

 


$

395,977

 


$

258,403

 


$

395,977

 








 
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




October 4, 2020
September 29, 2019







 
Adjusted revenue:





Revenue

$

964.0

 


$

706.9

 



Purchase accounting adjustments

 

0.2

 


 

0.2

 



Adjusted revenue

$

964.2

 


$

707.1

 









 
Adjusted gross margin:





Gross margin

$

527.4

 

54.7

%

$

342.3

 

48.4

%


Amortization of intangible assets

 

16.7

 

1.7

%

 

15.2

 

2.1

%


Purchase accounting adjustments

 

0.5

 

0.0

%

 

7.9

 

1.1

%


Adjusted gross margin

$

544.6

 

56.5

%

$

365.3

 

51.7

%






 
Adjusted SG&A:





SG&A

$

225.2

 

23.4

%

$

204.2

 

28.9

%


Amortization of intangible assets

 

(32.2

)

-3.3

%

 

(26.1

)

-3.7

%


Purchase accounting adjustments

 

(2.6

)

-0.3

%

 

(1.2

)

-0.2

%


Acquisition and divestiture-related expenses

 

(0.2

)

0.0

%

 

(0.8

)

-0.1

%


Acceleration of executive compensation

 

-

 

0.0

%

 

(7.7

)

-1.1

%


Significant litigation matters and settlements

 

-

 

0.0

%

 

(0.8

)

-0.1

%


Significant environmental matters

 

-

 

0.0

%

 

-

 

0.0

%


Adjusted SG&A

$

190.2

 

19.7

%

$

167.5

 

23.7

%








 
Adjusted R&D:





R&D

$

50.1

 

5.2

%

$

45.4

 

6.4

%


Adjusted R&D

$

50.1

 

5.2

%

$

45.4

 

6.4

%








 
Adjusted operating income:





Operating income

$

248.0

 

25.7

%

$

78.7

 

11.1

%


Amortization of intangible assets

 

48.9

 

5.1

%

 

41.3

 

5.8

%


Purchase accounting adjustments

 

3.1

 

0.3

%

 

9.1

 

1.3

%


Acquisition and divestiture-related expenses

 

0.2

 

0.0

%

 

0.8

 

0.1

%


Acceleration of executive compensation

 

-

 

0.0

%

 

7.7

 

1.1

%


Significant litigation matters and settlements

 

-

 

0.0

%

 

0.8

 

0.1

%


Significant environmental matters

 

-

 

0.0

%

 

-

 

0.0

%


Restructuring and other, net

 

4.1

 

0.4

%

 

14.1

 

2.0

%


Adjusted operating income

$

304.3

 

31.6

%

$

152.5

 

21.6

%








 


PKI


Three Months Ended




October 4, 2020
September 29, 2019







 
Adjusted EPS:





GAAP EPS

$

1.57

 


$

0.52

 



Discontinued operations, net of income taxes

 

(0.00

)


 

(0.00

)



GAAP EPS from continuing operations

 

1.57

 


 

0.53

 



Amortization of intangible assets

 

0.44

 


 

0.37

 



Debt extinguishment costs

 

-

 


 

0.00

 



Purchase accounting adjustments

 

0.03

 


 

0.08

 



Acquisition and divestiture-related expenses

 

0.00

 


 

0.01

 



Change in fair value of financial securities

 

(0.00

)


 

-

 



Acceleration of executive compensation

 

-

 


 

0.07

 



Significant litigation matters and settlements

 

-

 


 

0.01

 



Restructuring and other, net

 

0.04

 


 

0.13

 



Tax on above items

 

(0.12

)


 

(0.16

)



Impact of tax act

 

-

 


 

0.02

 



Significant tax items

 

0.14

 


 

-

 



Adjusted EPS

$

2.09

 


$

1.06

 









 


DAS


Three Months Ended




October 4, 2020
September 29, 2019







 
Revenue

$

423.6

 


$

426.9

 









 
Adjusted operating income:





Operating income

$

42.7

 

10.1

%

$

52.3

 

12.3

%


Amortization of intangible assets

 

17.6

 

4.2

%

 

13.7

 

3.2

%


Purchase accounting adjustments

 

-

 

0.0

%

 

7.4

 

1.7

%


Acquisition and divestiture-related expenses

 

0.2

 

0.1

%

 

0.4

 

0.1

%


Significant litigation matters and settlements

 

-

 

0.0

%

 

0.8

 

0.2

%


Restructuring and other, net

 

2.0

 

0.5

%

 

11.4

 

2.7

%


Adjusted operating income

$

62.5

 

14.8

%

$

86.2

 

20.2

%








 


Diagnostics


Three Months Ended




October 4, 2020
September 29, 2019







 
Adjusted revenue:





Revenue

$

540.4

 


$

280.0

 



Purchase accounting adjustments

 

0.2

 


 

0.2

 



Adjusted revenue

$

540.6

 


$

280.2

 









 
Adjusted operating income:





Operating income

$

223.8

 

41.4

%

$

47.4

 

16.9

%


Amortization of intangible assets

 

31.3

 

5.8

%

 

27.5

 

9.8

%


Purchase accounting adjustments

 

3.1

 

0.6

%

 

1.7

 

0.6

%


Acquisition and divestiture-related expenses

 

0.0

 

0.0

%

 

0.4

 

0.1

%


Significant litigation matters and settlements

 

-

 

0.0

%

 

-

 

0.0

%


Restructuring and other, net

 

2.1

 

0.4

%

 

2.6

 

0.9

%


Adjusted operating income

$

260.3

 

48.2

%

$

79.7

 

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




October 4, 2020


September 29, 2019









 
Adjusted revenue:





Revenue

$

2,428.1

 


$

2,078.2

 



Purchase accounting adjustments

 

0.6

 


 

0.6

 



Adjusted revenue

$

2,428.7

 


$

2,078.8

 









 
Adjusted gross margin:





Gross margin

$

1,282.8

 

52.8

%

$

997.9

 

48.0

%


Amortization of intangible assets

 

48.8

 

2.0

%

 

45.6

 

2.2

%


Purchase accounting adjustments

 

2.3

 

0.1

%

 

13.8

 

0.7

%


Adjusted gross margin

$

1,333.9

 

54.9

%

$

1,057.3

 

50.9

%






 
Adjusted SG&A:





SG&A

$

654.8

 

27.0

%

$

604.6

 

29.1

%


Amortization of intangible assets

 

(94.1

)

-3.9

%

 

(75.6

)

-3.6

%


Purchase accounting adjustments

 

8.8

 

0.4

%

 

(4.4

)

-0.2

%


Acquisition and divestiture-related expenses

 

(7.4

)

-0.3

%

 

(3.3

)

-0.2

%


Acceleration of executive compensation

 

-

 

0.0

%

 

(7.7

)

-0.4

%


Significant litigation matters and settlements

 

(3.6

)

-0.2

%

 

(1.6

)

-0.1

%


Significant environmental matters

 

(5.2

)

-0.2

%

 

-

 

0.0

%


Adjusted SG&A

$

553.3

 

22.8

%

$

512.0

 

24.6

%








 
Adjusted R&D:





R&D

$

148.6

 

6.1

%

$

141.7

 

6.8

%


Adjusted R&D

$

148.6

 

6.1

%

$

141.7

 

6.8

%








 
Adjusted operating income:





Operating income

$

468.3

 

19.3

%

$

223.7

 

10.8

%


Amortization of intangible assets

 

142.9

 

5.9

%

 

121.2

 

5.8

%


Purchase accounting adjustments

 

(6.5

)

-0.3

%

 

18.3

 

0.9

%


Acquisition and divestiture-related expenses

 

7.4

 

0.3

%

 

3.3

 

0.2

%


Acceleration of executive compensation

 

-

 

0.0

%

 

7.7

 

0.4

%


Significant litigation matters and settlements

 

3.6

 

0.2

%

 

1.6

 

0.1

%


Significant environmental matters

 

5.2

 

0.2

%

 

-

 

0.0

%


Restructuring and other, net

 

11.1

 

0.5

%

 

27.9

 

1.3

%


Adjusted operating income

$

632.1

 

26.0

%

$

403.7

 

19.4

%








 


PKI


Nine Months Ended




October 4, 2020
September 29, 2019







 
Adjusted EPS:





GAAP EPS

$

3.10

 


$

1.46

 



Discontinued operations

 

(0.00

)


 

(0.00

)



GAAP EPS from continuing operations

 

3.11

 


 

1.46

 



Amortization of intangible assets

 

1.28

 


 

1.09

 



Debt extinguishment costs

 

-

 


 

0.00

 



Purchase accounting adjustments

 

(0.06

)


 

0.16

 



Significant litigation matters and settlements

 

0.03

 


 

0.01

 



Significant environmental matters

 

0.05

 


 

-

 



Acquisition and divestiture-related expenses

 

0.07

 


 

0.05

 



Change in fair value of financial securities

 

(0.00

)


 

-

 



Acceleration of executive compensation

 

-

 


 

0.07

 



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

 

-

 


 

0.02

 



Restructuring and other, net

 

0.10

 


 

0.25

 



Tax on above items

 

(0.37

)


 

(0.40

)



Impact of tax act

 

-

 


 

0.02

 



Significant tax items

 

0.14

 


 

-

 



Adjusted EPS

$

4.33

 


$

2.75

 









 


PKI