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): August 1, 2022

 


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

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 August 1, 2022, PerkinElmer, Inc. announced its financial results for the second quarter ended July 3, 2022.  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: August 1, 2022
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 2022

Signs agreement with the intention to divest Applied, Food, and Enterprise Services businesses

  • Second quarter revenue of $1.23 billion; 0% reported growth, 8% non-COVID organic growth
  • Second quarter GAAP EPS from continuing operations of $1.42; adjusted EPS of $2.32
  • Initiates third quarter and raises full year guidance
  • Earnings call moved to today at 8:00 a.m. Eastern Time. Webcast information below

WALTHAM, Mass.--(BUSINESS WIRE)--August 1, 2022--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the second quarter ended July 3, 2022.

The Company reported GAAP earnings per share from continuing operations of $1.42, as compared to GAAP earnings per share from continuing operations of $2.19 in the same period a year ago. GAAP revenue for the quarter was $1.23 billion, as compared to $1.23 billion in the same period a year ago. GAAP operating income from continuing operations for the quarter was $251 million, as compared to $332 million for the same period a year ago. GAAP operating profit margin was 20.4% as a percentage of revenue, as compared to 27.1% in the same period a year ago.

Adjusted earnings per share from continuing operations for the quarter was $2.32, as compared to $2.83 in the same period a year ago. Adjusted revenue for the quarter was $1.23 billion, as compared to $1.23 billion in the same period a year ago. Adjusted operating income from continuing operations for the quarter was $402 million, as compared to $411 million for the same period a year ago. Adjusted operating profit margin was 32.7% as a percentage of adjusted revenue, as compared to 33.5% in the same period a year ago.

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

“Our strong performance in the quarter is a testament to our operational and commercial execution as well as our portfolio evolution over the last three years,” said Prahlad Singh, president and chief executive officer of PerkinElmer. “With today’s divestiture announcement, we position the company to transform into a pureplay, high growth, high margin life sciences and diagnostics company with even more focus to capitalize on attractive end markets. This transformation will in turn lead to significant financial strength, allowing us to continue to scale and accelerate our innovation investments, which help our customers bridge the chasm from research to clinic, and clinic to cure.”


Financial Overview by Reporting Segment for the Second Quarter

Discovery & Analytical Solutions

  • Second quarter 2022 revenue was $661 million, as compared to $513 million in the same period a year ago. Reported revenue increased 29% and organic revenue increased 13% as compared to the same period a year ago.
  • Second quarter 2022 operating income from continuing operations was $70 million, as compared to $64 million for the same period a year ago.
  • Second quarter 2022 adjusted operating income was $178 million, as compared to $101 million for the same period a year ago.

Diagnostics

  • Second quarter 2022 revenue was $569 million, as compared to $716 million for the same period a year ago. Reported revenue decreased 20% and organic revenue decreased 19% as compared to the same period a year ago.
  • Second quarter 2022 operating income from continuing operations was $201 million, as compared to $286 million for the same period a year ago.
  • Second quarter 2022 adjusted operating income was $245 million, as compared to $328 million for the same period a year ago.

Initiates Third Quarter and Raises Full Year 2022 Guidance

For the third quarter of 2022, the Company forecasts revenue of approximately $1.02-1.03 billion and adjusted earnings per share to be in a range $1.40-1.45.

For the full year 2022, the Company now forecasts revenue of $4.60-4.64 billion and adjusted earnings per share of $7.80-7.90.

Guidance for the third quarter and full year is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP.

Announces Agreement with the Intention to Divest Applied, Food, and Enterprise Services Businesses

The Company is also announcing today that it has entered into an agreement with the intention to divest its Applied, Food, and Enterprise Services businesses to New Mountain Capital for a total consideration of $2.45 billion. The transaction is expected to close in the first quarter of 2023, subject to regulatory approvals and other customary closing conditions. Management will provide additional detail regarding this transaction in a separate release and on today’s webcast. A presentation highlighting this transaction will be available on the Investors section of the Company’s website, www.perkinelmer.com.

Webcast Information

The Company will discuss its second quarter 2022 results, its outlook for business trends, and its intended divestiture of its Analytical, Food, and Enterprise Services businesses during a webcast on August 1, 2022, at 8:00 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, www.perkinelmer.com.


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," “estimates”, "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 divestitures, such as the divestiture of the Applied, Food and Enterprise Services businesses, 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 ability to compete effectively; (7) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (8) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (9) disruptions in the supply of raw materials and supplies; (10) our ability to retain key personnel; (11) significant disruption in our information technology systems, or cybercrime; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) regulatory changes; (18) our failure to comply with healthcare industry regulations; (19) economic, political and other risks associated with foreign operations; (20) the United Kingdom’s withdrawal from the European Union; (21) our ability to obtain future financing; (22) restrictions in our credit agreements; (23) discontinuation or replacement of LIBOR; (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 is a leading, global provider of end-to-end solutions that help scientists, researchers and clinicians better diagnose disease, discover new and more personalized drugs, monitor the safety and quality of our food, and drive environmental and applied analysis excellence. With an 85-year legacy of advancing science and a mission of innovating for a healthier world, our dedicated team of more than 16,000 collaborates closely with commercial, government, academic and healthcare customers to deliver reagents, assays, instruments, automation, informatics and strategic services that accelerate workflows, deliver actionable insights and support improved decision making. We are also deeply committed to good corporate citizenship through our dynamic ESG and sustainability programs. The Company reported revenues of approximately $5 billion in 2021, serves customers in 190 countries, and is a component of the S&P 500 index. Additional information is available at www.perkinelmer.com. Follow PerkinElmer on LinkedIn, Twitter, Facebook, Instagram, and YouTube.


PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED INCOME STATEMENTS









 









 


Three Months Ended

 

Six Months Ended


(In thousands, except per share data)

July 3, 2022

 

July 4, 2021

 

July 3, 2022

 

July 4, 2021











 









 
Revenue

$

1,229,569

 


$

1,228,471

 


$

2,489,011

 


$

2,536,160

 











 
Cost of revenue

 

563,406

 


 

543,277

 


 

1,143,617

 


 

1,065,820

 


Selling, general and administrative expenses

 

330,025

 


 

281,819

 


 

664,418

 


 

533,229

 


Research and development expenses

 

73,352

 


 

65,824

 


 

149,961

 


 

126,040

 


Restructuring and other, net

 

11,928

 


 

5,063

 


 

25,312

 


 

10,807

 











 
Operating income from continuing operations

 

250,858

 


 

332,488

 


 

505,703

 


 

800,264

 











 
Interest income

 

(762

)


 

(367

)


 

(1,357

)


 

(778

)


Interest expense

 

27,128

 


 

16,750

 


 

55,516

 


 

30,876

 


Change in fair value of financial securities

 

(2,910

)


 

(8,633

)


 

9,215

 


 

(27,931

)


Other (income) expense, net

 

2,930

 


 

(1,319

)


 

257

 


 

(8,442

)











 
Income from continuing operations, before income taxes

 

224,472

 


 

326,057

 


 

442,072

 


 

806,539

 











 
Provision for income taxes

 

45,220

 


 

80,089

 


 

85,817

 


 

181,228

 











 
Income from continuing operations

 

179,252

 


 

245,968

 


 

356,255

 


 

625,311

 











 
Loss on disposition of discontinued operations, before income taxes

 

-

 


 

-

 


 

-

 


 

-

 


Provision for income taxes on discontinued operations and dispositions

 

40

 


 

38

 


 

81

 


 

76

 











 
Loss from discontinued operations and dispositions

 

(40

)


 

(38

)


 

(81

)


 

(76

)











 
Net income

$

179,212

 


$

245,930

 


$

356,174

 


$

625,235

 











 









 
Diluted earnings per share:

























 
Income from continuing operations

$

1.42

 


$

2.19

 


$

2.81

 


$

5.56

 











 
Loss from discontinued operations and dispositions

 

(0.00

)


 

(0.00

)


 

(0.00

)


 

(0.00

)



















 
Net income

$

1.42

 


$

2.19

 


$

2.81

 


$

5.56

 











 









 
Weighted average diluted shares of common stock outstanding

 

126,509

 


 

112,417

 


 

126,581

 


 

112,456

 











 









 
ABOVE PREPARED IN ACCORDANCE WITH GAAP









 









 
Additional Supplemental Information (1):








(per share, continuing operations)

















 
GAAP EPS from continuing operations

$

1.42

 


$

2.19

 


$

2.81

 


$

5.56

 


Amortization of intangible assets

 

0.80

 


 

0.53

 


 

1.61

 


 

1.01

 


Debt extinguishment costs

 

0.00

 


 

-

 


 

0.00

 


 

-

 


Purchase accounting adjustments

 

0.14

 


 

0.03

 


 

0.28

 


 

0.07

 


Acquisition and divestiture-related costs

 

0.17

 


 

0.09

 


 

0.34

 


 

0.13

 


Change in fair value of financial securities

 

(0.02

)


 

(0.08

)


 

0.07

 


 

(0.25

)


Significant litigation matters and settlements

 

(0.01

)


 

-

 


 

(0.01

)


 

-

 


Restructuring and other, net

 

0.09

 


 

0.05

 


 

0.20

 


 

0.10

 


Tax on above items

 

(0.27

)


 

(0.11

)


 

(0.58

)


 

(0.21

)


Significant tax items

 

-

 


 

0.13

 


 

-

 


 

0.13

 


Adjusted EPS

$

2.32

 


$

2.83

 


$

4.73

 


$

6.55

 











 
(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 3, 2022

July 4, 2021

July 3, 2022

July 4, 2021















 















 
DAS

Reported revenue
$

660,541

 


$

512,829

 


$

1,262,907

 


$

967,438

 




Purchase accounting adjustments

-

 



822

 



-

 



1,849

 




Adjusted revenue

660,541

 



513,651

 



1,262,907

 



969,287

 
















 



Reported operating income from continued operations

70,112

 



64,155

 



84,627

 



107,102

 




OP%

10.6

%



12.5

%



6.7

%



11.1

%




Amortization of intangible assets

67,537

 



23,072

 



135,265

 



43,492

 




Purchase accounting adjustments

17,264

 



1,473

 



34,546

 



3,649

 




Acquisition and divestiture-related costs

15,023

 



8,597

 



28,288

 



14,505

 




Significant litigation matters and settlements

(1,686

)



-

 



(1,261

)



-

 




Restructuring and other, net

9,444

 



3,615

 



22,825

 



7,744

 




Adjusted operating income

177,694

 



100,912

 



304,290

 



176,492

 




Adjusted OP%

26.9

%



19.6

%



24.1

%



18.2

%
















 
Diagnostics

Reported revenue

569,028

 



715,642

 



1,226,104

 



1,568,722

 




Purchase accounting adjustments

203

 



199

 



406

 



398

 




Adjusted revenue

569,231

 



715,841

 



1,226,510

 



1,569,120

 
















 



Reported operating income from continued operations

201,232

 



286,280

 



459,244

 



727,747

 




OP%

35.4

%



40.0

%



37.5

%



46.4

%




Amortization of intangible assets

33,354

 



36,489

 



68,276

 



70,226

 




Purchase accounting adjustments

705

 



2,107

 



1,427

 



4,378

 




Acquisition and divestiture-related costs

6,880

 



2,051

 



14,119

 



5,810

 




Restructuring and other, net

2,484

 



1,448

 



2,487

 



3,063

 




Adjusted operating income

244,655

 



328,375

 



545,553

 



811,224

 




Adjusted OP%

43.0

%



45.9

%



44.5

%



51.7

%
















 
Corporate

Reported operating loss

(20,486

)



(17,947

)



(38,168

)



(34,585

)
















 
Continuing Operations

Reported revenue
$

1,229,569

 


$

1,228,471

 


$

2,489,011

 


$

2,536,160

 




Purchase accounting adjustments

203

 



1,021

 



406

 



2,247

 




Adjusted revenue

1,229,772

 



1,229,492

 



2,489,417

 



2,538,407

 
















 



Reported operating income from continued operations

250,858

 



332,488

 



505,703

 



800,264

 




OP%

20.4

%



27.1

%



20.3

%



31.6

%




Amortization of intangible assets

100,891

 



59,561

 



203,541

 



113,718

 




Purchase accounting adjustments

17,969

 



3,580

 



35,973

 



8,027

 




Acquisition and divestiture-related costs

21,903

 



10,648

 



42,407

 



20,315

 




Significant litigation matters and settlements

(1,686

)



-

 



(1,261

)



-

 




Restructuring and other, net

11,928

 



5,063

 



25,312

 



10,807

 




Adjusted operating income
$

401,863

 


$

411,340

 


$

811,675

 


$

953,131

 




Adjusted OP%

32.7

%



33.5

%



32.6

%



37.5

%
















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

PerkinElmer, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS

 

 



 
(In thousands) July 3, 2022
January 2, 2022



 
Current assets:


Cash and cash equivalents

$

360,860


$

618,319

Accounts receivable, net

 

932,131


 

1,023,792

Inventories, net

 

624,297


 

624,714

Other current assets

 

190,484


 

173,955

Total current assets

 

2,107,772


 

2,440,780




 
Property, plant and equipment, net

 

533,645


 

545,605

Operating lease right-of-use assets

 

209,332


 

207,775

Intangible assets, net

 

3,771,221


 

4,063,104

Goodwill

 

7,243,492


 

7,416,584

Other assets, net

 

324,245


 

326,706

Total assets

$

14,189,707


$

15,000,554




 
Current liabilities:


Current portion of long-term debt

$

4,180


$

4,240

Accounts payable

 

333,711


 

355,458

Accrued expenses and other current liabilities

 

705,922


 

854,046

Total current liabilities

 

1,043,813


 

1,213,744




 
Long-term debt

 

4,484,314


 

4,979,737

Long-term liabilities

 

1,311,435


 

1,480,469

Operating lease liabilities

 

182,990


 

185,359

Total liabilities

 

7,022,552


 

7,859,309




 
Total stockholders' equity

 

7,167,155


 

7,141,245

Total liabilities and stockholders' equity

$

14,189,707


$

15,000,554




 
PREPARED IN ACCORDANCE WITH GAAP

PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS




 








 


Three Months Ended
Six Months Ended


July 3, 2022
July 4, 2021
July 3, 2022
July 4, 2021


(In thousands)
(In thousands)








 
Operating activities:







Net income

$

179,212

 


$

245,930

 


$

356,174

 


$

625,235

 

Loss from discontinued operations and dispositions, net of income taxes

 

40

 


 

38

 


 

81

 


 

76

 

Income from continuing operations

 

179,252

 


 

245,968

 


 

356,255

 


 

625,311

 

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







Stock-based compensation

 

16,029

 


 

7,204

 


 

31,292

 


 

12,361

 

Restructuring and other, net

 

11,928

 


 

5,063

 


 

25,312

 


 

10,807

 

Depreciation and amortization

 

119,406

 


 

75,636

 


 

239,457

 


 

145,822

 

Change in fair value of contingent consideration

 

670

 


 

237

 


 

1,363

 


 

477

 

Amortization of deferred debt financing costs and accretion of discounts

 

2,071

 


 

828

 


 

3,852

 


 

1,724

 

Change in fair value of financial securities

 

(2,910

)


 

(8,633

)


 

9,215

 


 

(27,931

)

Debt extinguishment costs

 

369

 


 

-

 


 

488

 


 

-

 

Amortization of acquired inventory revaluation

 

16,856

 


 

2,322

 


 

33,724

 


 

5,303

 

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







Accounts receivable, net

 

(21,579

)


 

(9,920

)


 

47,485

 


 

155,270

 

Inventories

 

(23,329

)


 

22,246

 


 

(70,297

)


 

7,239

 

Accounts payable

 

(33,733

)


 

(21,747

)


 

(7,382

)


 

(26,795

)

Accrued expenses and other

 

(167,545

)


 

(31,342

)


 

(290,064

)


 

(148,226

)

Net cash provided by operating activities of continuing operations

 

97,485

 


 

287,862

 


 

380,700

 


 

761,362

 









 
Investing activities:







Capital expenditures

 

(23,154

)


 

(20,364

)


 

(52,585

)


 

(34,675

)

Purchases of investments

 

(4,250

)


 

(10,507

)


 

(27,245

)


 

(14,507

)

Proceeds from disposition of businesses and assets

 

1,054

 


 

-

 


 

1,054

 


 

-

 

Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired

 

(2,005

)


 

(259,154

)


 

(5,885

)


 

(702,697

)

Net cash used in investing activities of continuing operations

 

(28,355

)


 

(290,025

)


 

(84,661

)


 

(751,879

)









 
Financing Activities:







Payments on borrowings

 

-

 


 

(20,000

)


 

(220,000

)


 

(763,545

)

Proceeds from borrowings

 

-

 


 

145,000

 


 

220,000

 


 

729,000

 

Payments of term loan

 

(350,000

)


 

-

 


 

(450,000

)


 

-

 

Payments of senior debt

 

-

 


 

(339,605

)


 

-

 


 

(339,605

)

Proceeds from sale of senior debt

 

-

 


 

-

 


 

-

 


 

799,856

 

Payments of debt financing costs

 

-

 


 

(360

)


 

-

 


 

(8,242

)

Settlement of cash flow hedges

 

-

 


 

(11,940

)


 

(762

)


 

(5,935

)

Net payments on other credit facilities

 

239

 


 

(2,027

)


 

(825

)


 

(11,826

)

Payments for acquisition-related contingent consideration

 

(5

)


 

-

 


 

(5

)


 

-

 

Proceeds from issuance of common stock under stock plans

 

4,444

 


 

9,198

 


 

5,841

 


 

14,185

 

Purchases of common stock

 

(456

)


 

(30,145

)


 

(56,048

)


 

(72,924

)

Dividends paid

 

(8,830

)


 

(7,845

)


 

(17,667

)


 

(15,697

)

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

 

(354,608

)


 

(257,724

)


 

(519,466

)


 

325,267

 









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

 

(23,341

)


 

(3,810

)


 

(33,977

)


 

(10,659

)









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

 

(308,819

)


 

(263,697

)


 

(257,404

)


 

324,091

 

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

 

670,752

 


 

990,401

 


 

619,337

 


 

402,613

 

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

$

361,933

 


$

726,704

 


$

361,933

 


$

726,704

 









 








 
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

$

360,860

 


$

572,810

 


$

360,860

 


$

572,810

 

Restricted cash included in other current assets

 

1,073

 


 

1,750

 


 

1,073

 


 

1,750

 

Restricted cash included in other assets

 

-

 


 

152,144

 


 

-

 


 

152,144

 

Total cash, cash equivalents and restricted cash

$

361,933

 


$

726,704

 


$

361,933

 


$

726,704

 









 
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 3, 2022
July 4, 2021

Adjusted revenue:





Revenue

$

1,229.6

 


$

1,228.5

 



Purchase accounting adjustments

 

0.2

 


 

1.0

 



Adjusted revenue

$

1,229.8

 


$

1,229.5

 









 
Adjusted gross margin:





Gross margin

$

666.2

 

54.2

%

$

685.2

 

55.8

%


Amortization of intangible assets

 

39.2

 

3.2

%

 

22.7

 

1.8

%


Purchase accounting adjustments

 

17.2

 

1.4

%

 

3.3

 

0.3

%


Acquisition and divestiture-related costs

 

1.5

 

0.1

%

 

-

 

0.0

%


Adjusted gross margin

$

724.1

 

58.9

%

$

711.2

 

57.8

%






 
Adjusted SG&A:





SG&A

$

330.0

 

26.8

%

$

281.8

 

22.9

%


Amortization of intangible assets

 

(61.7

)

-5.0

%

 

(36.9

)

-3.0

%


Purchase accounting adjustments

 

(0.7

)

-0.1

%

 

(0.2

)

0.0

%


Acquisition and divestiture-related costs

 

(19.0

)

-1.5

%

 

(10.6

)

-0.9

%


Significant litigation matters and settlements

 

1.7

 

0.1

%

 

-

 

0.0

%


Adjusted SG&A

$

250.3

 

20.3

%

$

234.0

 

19.0

%








 
Adjusted R&D:





R&D

$

73.4

 

6.0

%

$

65.8

 

5.4

%


Purchase accounting adjustments

 

(0.1

)

0.0

%

 

-

 

0.0

%


Acquisition and divestiture-related costs

 

(1.3

)

-0.1

%

 

-

 

0.0

%


Adjusted R&D

$

72.0

 

5.9

%

$

65.8

 

5.4

%








 
Adjusted operating income:





Operating income

$

250.9

 

20.4

%

$

332.5

 

27.1

%


Amortization of intangible assets

 

100.9

 

8.2

%

 

59.6

 

4.8

%


Purchase accounting adjustments

 

18.0

 

1.5

%

 

3.6

 

0.3

%


Acquisition and divestiture-related costs

 

21.9

 

1.8

%

 

10.6

 

0.9

%


Significant litigation matters and settlements

 

(1.7

)

-0.1

%

 

-

 

0.0

%


Restructuring and other, net

 

11.9

 

1.0

%

 

5.1

 

0.4

%


Adjusted operating income

$

401.9

 

32.7

%

$

411.3

 

33.5

%








 


PKI


Three Months Ended




July 3, 2022
July 4, 2021

Adjusted EPS:





GAAP EPS

$

1.42

 


$

2.19

 



Discontinued operations, net of income taxes

 

(0.00

)


 

(0.00

)



GAAP EPS from continuing operations

 

1.42

 


 

2.19

 



Amortization of intangible assets

 

0.80

 


 

0.53

 



Debt extinguishment costs

 

0.00

 


 

-

 



Purchase accounting adjustments

 

0.14

 


 

0.03

 



Acquisition and divestiture-related costs

 

0.17

 


 

0.09

 



Change in fair value of financial securities

 

(0.02

)


 

(0.08

)



Significant litigation matters and settlements

 

(0.01

)


 

-

 



Restructuring and other, net

 

0.09

 


 

0.05

 



Tax on above items

 

(0.27

)


 

(0.11

)



Significant tax items

 

-

 


 

0.13

 



Adjusted EPS

$

2.32

 


$

2.83

 









 


DAS


Three Months Ended




July 3, 2022
July 4, 2021

Adjusted revenue:





Revenue

$

660.5

 


$

512.8

 



Purchase accounting adjustments

 

-

 


 

0.8

 



Adjusted revenue

$

660.5

 


$

513.7

 









 
Adjusted operating income:





Operating income

$

70.1

 

10.6

%

$

64.2

 

12.5

%


Amortization of intangible assets

 

67.5

 

10.2

%

 

23.1

 

4.5

%


Purchase accounting adjustments

 

17.3

 

2.6

%

 

1.5

 

0.3

%


Acquisition and divestiture-related costs

 

15.0

 

2.3

%

 

8.6

 

1.7

%


Significant litigation matters and settlements

 

(1.7

)

-0.3

%

 

-

 

0.0

%


Restructuring and other, net

 

9.4

 

1.4

%

 

3.6

 

0.7

%


Adjusted operating income

$

177.7

 

26.9

%

$

100.9

 

19.6

%








 


Diagnostics


Three Months Ended




July 3, 2022
July 4, 2021

Adjusted revenue:





Revenue

$

569.0

 


$

715.6

 



Purchase accounting adjustments

 

0.2

 


 

0.2

 



Adjusted revenue

$

569.2

 


$

715.8

 









 
Adjusted operating income:





Operating income

$

201.2

 

35.4

%

$

286.3

 

40.0

%


Amortization of intangible assets

 

33.4

 

5.9

%

 

36.5

 

5.1

%


Purchase accounting adjustments

 

0.7

 

0.1

%

 

2.1

 

0.3

%


Acquisition and divestiture-related costs

 

6.9

 

1.2

%

 

2.1

 

0.3

%


Restructuring and other, net

 

2.5

 

0.4

%

 

1.4

 

0.2

%


Adjusted operating income

$

244.7

 

43.0

%

$

328.4

 

45.9

%








 
(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


Six Months Ended




July 3, 2022
July 4, 2021

Adjusted revenue:





Revenue

$

2,489.0

 


$

2,536.2

 



Purchase accounting adjustments

 

0.4

 


 

2.2

 



Adjusted revenue

$

2,489.4

 


$

2,538.4

 









 
Adjusted gross margin:





Gross margin

$

1,345.4

 

54.1

%

$

1,470.3

 

58.0

%


Amortization of intangible assets

 

79.3

 

3.2

%

 

43.0

 

1.7

%


Purchase accounting adjustments

 

34.4

 

1.4

%

 

7.6

 

0.3

%


Acquisition and divestiture-related costs

 

3.2

 

0.1

%

 

-

 

0.0

%


Adjusted gross margin

$

1,462.3

 

58.7

%

$

1,520.9

 

59.9

%






 
Adjusted SG&A:





SG&A

$

664.4

 

26.7

%

$

533.2

 

21.0

%


Amortization of intangible assets

 

(124.3

)

-5.0

%

 

(70.7

)

-2.8

%


Purchase accounting adjustments

 

(1.4

)

-0.1

%

 

(0.5

)

0.0

%


Acquisition and divestiture-related costs

 

(36.4

)

-1.5

%

 

(20.3

)

-0.8

%


Significant litigation matters and settlements

 

1.3

 

0.1

%

 

-

 

0.0

%


Adjusted SG&A

$

503.5

 

20.2

%

$

441.7

 

17.4

%








 
Adjusted R&D:





R&D

$

150.0

 

6.0

%

$

126.0

 

5.0

%


Purchase accounting adjustments

 

(0.1

)

0.0

%

 

-

 

0.0

%


Acquisition and divestiture-related costs

 

(2.8

)

-0.1

%

 

-

 

0.0

%


Adjusted R&D

$

147.1

 

5.9

%

$

126.0

 

5.0

%








 
Adjusted operating income:





Operating income

$

505.7

 

20.3

%

$

800.3

 

31.6

%


Amortization of intangible assets

 

203.5

 

8.2

%

 

113.7

 

4.5

%


Purchase accounting adjustments

 

36.0

 

1.4

%

 

8.0

 

0.3

%


Acquisition and divestiture-related costs

 

42.4

 

1.7

%

 

20.3

 

0.8

%


Significant litigation matters and settlements

 

(1.3

)

-0.1

%

 

-

 

0.0

%


Restructuring and other, net

 

25.3

 

1.0

%

 

10.8

 

0.4

%


Adjusted operating income

$

811.7

 

32.6

%

$

953.1

 

37.5

%








 


PKI


Six Months Ended




July 3, 2022
July 4, 2021

Adjusted EPS:





GAAP EPS

$

2.81

 


$

5.56

 



Discontinued operations, net of income taxes

 

(0.00

)


 

(0.00

)



GAAP EPS from continuing operations

 

2.81

 


 

5.56

 



Amortization of intangible assets

 

1.61

 


 

1.01

 



Debt extinguishment costs

 

0.00

 


 

-

 



Purchase accounting adjustments

 

0.28

 


 

0.07

 



Acquisition and divestiture-related costs

 

0.34

 


 

0.13

 



Change in fair value of financial securities

 

0.07

 


 

(0.25

)



Significant litigation matters and settlements

 

(0.01

)


 

-

 



Restructuring and other, net

 

0.20

 


 

0.10

 



Tax on above items

 

(0.58

)


 

(0.21

)



Significant tax items

 

-

 


 

0.13

 



Adjusted EPS

$

4.73

 


$

6.55

 









 


DAS


Six Months Ended




July 3, 2022
July 4, 2021

Adjusted revenue:





Revenue

$

1,262.9

 


$

967.4

 



Purchase accounting adjustments

 

-

 


 

1.8

 



Adjusted revenue

$

1,262.9

 


$

969.3

 









 
Adjusted operating income:





Operating income

$

84.6

 

6.7

%

$

107.1

 

11.1

%


Amortization of intangible assets

 

135.3

 

10.7

%

 

43.5

 

4.5

%


Purchase accounting adjustments

 

34.5

 

2.7

%

 

3.6

 

0.4

%


Acquisition and divestiture-related costs

 

28.3

 

2.2

%

 

14.5

 

1.5

%


Significant litigation matters and settlements

 

(1.3

)

-0.1

%

 

-

 

0.0

%


Restructuring and other, net

 

22.8

 

1.8

%

 

7.7

 

0.8

%


Adjusted operating income

$

304.3

 

24.1

%

$

176.5

 

18.2

%








 


Diagnostics


Six Months Ended




July 3, 2022
July 4, 2021

Adjusted revenue:





Revenue

$

1,226.1

 


$

1,568.7

 



Purchase accounting adjustments

 

0.4

 


 

0.4

 



Adjusted revenue

$

1,226.5

 


$

1,569.1

 









 
Adjusted operating income:





Operating income

$

459.2

 

37.5

%

$

727.7

 

46.4

%


Amortization of intangible assets

 

68.3

 

5.6

%

 

70.2

 

4.5

%


Purchase accounting adjustments

 

1.4

 

0.1

%

 

4.4

 

0.3

%


Acquisition and divestiture-related costs

 

14.1

 

1.2

%

 

5.8

 

0.4

%


Restructuring and other, net

 

2.5

 

0.2

%

 

3.1

 

0.2

%


Adjusted operating income

$

545.6