Exhibit 99.1
Pall Corporation Reports Third Quarter Results
Port Washington, N.Y. (June 6, 2012) -- Pall Corporation (NYSE:PLL) today reported financial results for the third quarter of fiscal year 2012 which ended on April 30, 2012.
Third Quarter and Nine Months Sales and Earnings Overview
Third quarter sales were $715.2 million, an increase of about 1% (+2.6% in local currency (“LC”)) over last year. Diluted earnings per share (“EPS”) were $0.67 in the quarter, compared to $0.60 last year. Pro forma EPS were $0.70 (excluding restructuring and other charges and transaction costs, as well as items impacting provision for income taxes in the prior period, defined as “Discrete Items”). Foreign currency translation negatively impacted third quarter EPS by $0.01. This compares to $0.72 last year.
For the nine months, sales increased 8.1% over last year (+7.2% LC). Diluted EPS were $1.98 in the nine months, compared to $1.84 for the same period last year. Pro forma EPS, excluding Discrete Items, were $2.20, a 9.5% increase compared to $2.01 a year earlier, including a benefit of approximately $0.05 from translation.
Sales from continuing operations (1) in the quarter were $658.0 million, an increase of about 1% over last year (+2.5% LC). Diluted EPS from continuing operations were $0.60 in the quarter, compared to $0.52 last year. Pro forma EPS from continuing operations were $0.61 compared to $0.64 last year.
Sales from continuing operations for the nine months increased 8.4% (+7.5% LC) over last year. Diluted EPS from continuing operations were $1.74 in the nine months, compared to $1.60 for the same period last year. Pro forma EPS, excluding Discrete Items, were $1.94, a 9.6% increase compared to $1.77 a year earlier.
Larry Kingsley, President and CEO, said, “It was a difficult quarter, especially as the Eurozone struggled and our previously announced “global go-live” ERP transition disrupted our supply chain more than anticipated. As a result of this temporary disruption, certain shipments of high margin consumables were delayed and we incurred substantial additional costs to take care of our customers. The ERP transition issues are being resolved and we are making good progress in filling past due orders. We expect to have caught up with backorders by this August, which is the beginning of our FY ’13, and we are grateful for the continued patience and support of our customers.”
Noting that consumables orders increased over 3% in Life Sciences, with double digit growth in the Pharmaceutical market and low single digits in Food and Beverage, Kingsley said, “Unrelated to the temporary operational challenges in the quarter, we experienced relatively soft industrial orders in all geographies, with consumables down 8%. While the Americas order rate is strengthening in most end markets, Europe remains weak and we are taking appropriate cost actions to mitigate potential impact on FY ’13 profitability.”
Kingsley continued: “As we look ahead and given the macroeconomic environment, especially in Europe, we are now expecting full year FY ’12 EPS of approximately $3.10, or $2.72 on a continuing operations basis. Previewing FY ’13, we anticipate low-single digit organic sales growth, with increases in Asia and the Americas more than offsetting a decline in Europe.. We will update our expectations for our next fiscal year on our Q4 call.”
(1) As discussed in our news release dated April 29, 2012, the Company announced it had entered into an agreement to sell certain assets of its Blood product line to Haemonetics Corporation (NYSE:HAE). Accordingly, discussion of results from continuing operations exclude the Blood product line. Tables appended to this release are presented on a continuing operations basis (with reconciliation to include the discontinued Blood product line). Further, Life Sciences and Industrial operating profit have been restated to reflect a change in the allocation of certain shared expenses on a continuing operations basis.
Life Sciences – Third Quarter Highlights (1)
|
| | | | | | | | | | | | | | |
| (Dollar Amounts in Thousands and Discussion of Sales and Orders Changes are in Local Currency) |
| | | | | | | | | |
| Sales: | | APR. 30, 2012 | | APR. 30, 2011 | | % CHANGE | | % CHANGE IN LC |
| BioPharmaceuticals | | $ | 201,670 |
| | $ | 197,186 |
| | 2.3 |
| | 4.4 |
|
| Food & Beverage | | 66,568 |
| | 63,787 |
| | 4.4 |
| | 7.1 |
|
| Medical | | 49,731 |
| | 51,718 |
| | (3.8 | ) | | (1.5 | ) |
| Total Life Sciences segment | | $ | 317,969 |
| | $ | 312,691 |
| | 1.7 |
| | 4.0 |
|
| | | | | | | | | |
| | | | | | | | | |
| Gross profit | | $ | 180,187 |
| | $ | 175,047 |
| | | | |
| % of sales | | 56.7 |
| | 56.0 |
| | | | |
| Segment profit | | $ | 75,386 |
| | $ | 78,885 |
| | | | |
| % of sales | | 23.7 |
| | 25.2 |
| | | | |
Biopharmaceuticals: Pharmaceuticals sales increased 9%, with consumables and systems sales each up 9%. Continued strength in the biotech market, as well as ForteBio’s BLItzTM and Octet® instrumentation platforms, contributed significantly to this growth. Fulfillment challenges due to the ERP implementation in the Americas dampened organic sales growth in Pharmaceuticals as well as in Laboratory, where sales decreased about 23%.
Food and Beverage: Overall sales growth reflects an increase in systems sales of over 70%, largely driven by Asia. Excluding the impact of the divestiture of a non-strategic asset in Italy, consumables sales were down about 5%. This also reflects the fulfillment challenges mentioned above, impacting all regions. Weak economic conditions in parts of Europe also contributed. Growth in emerging markets partly mitigated this impact.
Medical: Medical OEM sales were flat in the quarter. Customer inventory reductions and supply challenges hampered growth. Hospital sales were down about 3% reflecting the impact of weak economic conditions in Europe and the resulting spending reduction by hospitals.
Industrial – Third Quarter Highlights (1)
|
| | | | | | | | | | | | | | |
| (Dollar Amounts in Thousands and Discussion of Sales and Orders Changes are in Local Currency) |
| | | | | | | | | |
| Sales: | | APR. 30, 2012 | | APR. 30, 2011 | | % CHANGE | | % CHANGE IN LC |
| Process Technologies | | $ | 213,804 |
| | $ | 208,238 |
| | 2.7 |
| | 4.7 |
|
| Aerospace | | 50,706 |
| | 50,959 |
| | (0.5 | ) | | 1.0 |
|
| Microelectronics | | 75,497 |
| | 81,904 |
| | (7.8 | ) | | (7.8 | ) |
| Total Industrial segment | | $ | 340,007 |
| | $ | 341,101 |
| | (0.3 | ) | | 1.2 |
|
| | | | | | | | | |
| | | | | | | | | |
| Gross profit | | $ | 154,239 |
| | $ | 157,219 |
| | | | |
| % of sales | | 45.4 |
| | 46.1 |
| | | | |
| Segment profit | | $ | 39,431 |
| | $ | 47,200 |
| | | | |
| % of sales | | 11.6 |
| | 13.8 |
| | | | |
Process Technologies: Sales in Fuels & Chemicals increased approximately 20%, as systems sales more than doubled. This reflects investment in oil and gas expansion in Brazil, Eastern Europe and the Middle East. Consumables sales decreased 7%.
Power Generation sales increased about 5%. Consumables sales grew about 3%, while systems sales were up 17%. Europe benefited from increased activity in the nuclear energy sector and recovery in the turbine OEM sector. Sales in Asia were strong, reflecting increased investment by customers in China.
Municipal Water sales decreased 14%. Sales in both the Americas and Europe were down, reflecting pressure on infrastructure investment due to fiscal challenges in the public sector. In Asia, a small but growing water market, sales more than doubled.
Machinery & Equipment sales declined for the first time in two years, by 3%, impacted by the comparative to last year that included a large mine water system sale in the Americas. Consumables sales grew in all regions. This reflects growth in the mining, automotive in-plant and mobile OEM sectors.
Aerospace: Military Aerospace grew about 13% in the quarter, with all regions contributing. Sales in Europe were particularly strong due to a combination of projects mainly for marine and helicopter applications. Commercial Aerospace sales were down 10%, impacted by shipment delinquencies in the Americas.
Microelectronics: Sales reflect continued weakness in the marketplace in all regions.
Conference Call
On Thursday June 7, 2012, at 8:30 am ET, Pall Corporation will host a conference call to review these results. The call can be accessed at www.pall.com/investor. The webcast will be archived for 30 days.
About Pall Corporation
Pall Corporation (NYSE:PLL) is a filtration, separation and purification leader providing solutions to meet the critical fluid management needs of customers across the broad spectrum of life sciences and industry. Pall works with customers to advance health, safety and environmentally responsible technologies. The Company’s engineered products enable process and product innovation and minimize emissions and waste. Pall Corporation, with total revenues of $2.7 billion for fiscal year 2011, is an S&P 500 company with almost 11,000 employees serving customers worldwide. Pall has been named a “top green company” by Newsweek magazine. To see how Pall is helping enable a greener, safer, more sustainable future, follow us on Twitter @PallCorporation or visit www.pall.com/green.
Forward-Looking Statements
The matters discussed in this report contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Results for the third quarter are preliminary until the Company's Form 10-Q is filed with the Securities and Exchange Commission on or before June 11, 2012.
Forward-looking statements are those that address activities, events or developments that the Company or management intends, expects, projects, believes or anticipates will or may occur in the future. All statements
regarding future performance, earnings projections, earnings guidance, management’s expectations about its future cash needs, dilution from the disposition or future allocation of capital and effective tax rate, and other future events or developments are forward-looking statements. Forward-looking statements are those that use terms such as “may,” “will,” “expect,” “believe,” “intend,” “should,” “could,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” “predict,” “potential,” and similar expressions. Forward-looking statements contained in this and other written and oral reports are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors.
The Company’s forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those envisaged by the Company’s forward-looking statements. Such risks and uncertainties include, but are not limited to, those discussed in Part I–Item 1A.–Risk Factors in the 2011 Form 10-K, and other reports the Company files with the Securities and Exchange Commission, including: the impact of legislative, regulatory and political developments globally; the impact of the uncertain global economic environment; the extent to which adverse economic conditions may affect the Company's sales volume and results; changes in product mix, market mix and product pricing, particularly relating to the expansion of the systems business; the Company's ability to develop and commercialize new technologies, enforce patents and protect proprietary products and manufacturing techniques; demand for our products and business relationships with key customers and suppliers, which may be impacted by their cash flow and payment practices; delays or cancellations in shipments; the Company's ability to obtain regulatory approval or market acceptance of new technologies; the Company's ability to successfully complete the Company's business improvement initiatives, which include supply chain enhancements and integrating and upgrading the Company's information systems; the effect of a serious disruption in the Company's information systems; fluctuations in the Company's effective tax rate; volatility in foreign currency exchange rates, interest rates and energy costs and other macroeconomic challenges currently affecting the Company; increase in costs of manufacturing and operating costs; the Company's ability to achieve and sustain the savings anticipated from cost reduction and gross margin improvement initiatives; the Company's ability to attract and retain management talent; the impact of pricing and other actions by competitors; the effect of litigation and regulatory inquiries associated with the restatement of the Company's prior period financial statements; the effect of the restrictive covenants in the Company's debt facilities; and the Company's ability to successfully complete or integrate any acquisitions. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company makes these statements as of the date of this disclosure and undertakes no obligation to update them, whether as a result of new information, future developments or otherwise.
Management uses certain non-GAAP measurements to assess the Company’s current and future financial performance. The non-GAAP measurements do not replace the presentation of the Company’s GAAP financial results. These measurements provide supplemental information to assist management in analyzing the Company’s financial position and results of operations. The Company has chosen to provide this information to facilitate meaningful comparisons of past, present and future operating results and as a means to emphasize the results of ongoing operations.
|
| | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| (Amounts in Thousands) |
| | | | | |
| | | APR. 30, 2012 | | JUL. 31, 2011 |
| | | | | |
| Assets: | | | | |
| | | | | |
| Cash and cash equivalents | | $ | 535,891 |
| | $ | 557,766 |
|
| Accounts receivable | | 614,900 |
| | 646,769 |
|
| Inventories | | 402,292 |
| | 444,842 |
|
| Other current assets | | 207,572 |
| | 159,831 |
|
| Assets held for sale (1) | | 126,737 |
| | — |
|
| Total current assets | | 1,887,392 |
| | 1,809,208 |
|
| | | | | |
| Property, plant and equipment | | 772,293 |
| | 794,599 |
|
| Other assets | | 735,169 |
| | 628,609 |
|
| Total assets | | $ | 3,394,854 |
| | $ | 3,232,416 |
|
| | | | | |
| Liabilities and Stockholders' Equity: | | | | |
| | | | | |
| Short-term debt | | $ | 200,435 |
| | $ | 215,468 |
|
| Accounts payable, income taxes and other current liabilities | | 623,570 |
| | 574,539 |
|
| Total current liabilities | | 824,005 |
| | 790,007 |
|
| | | | | |
| Long-term debt, net of current portion | | 487,936 |
| | 491,954 |
|
| Deferred taxes and other non-current liabilities | | 419,119 |
| | 460,634 |
|
| Total liabilities | | 1,731,060 |
| | 1,742,595 |
|
| | | | | |
| Stockholders' equity | | 1,663,794 |
| | 1,489,821 |
|
| Total liabilities and stockholders' equity | | $ | 3,394,854 |
| | $ | 3,232,416 |
|
| | | | | |
| (1) Reflects assets to be disposed of related to the sale of the Blood product line. |
|
| | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| (Unaudited) |
| (Amounts in Thousands, Except Per Share Data) |
| | | | | | | | | |
| | | THIRD QUARTER ENDED | | NINE MONTHS ENDED |
| | | APR. 30, 2012 | | APR. 30, 2011 | | APR. 30, 2012 | | APR. 30, 2011 |
| | | | | | | | | |
| Net sales | | $ | 657,976 |
| | $ | 653,792 |
| | $ | 1,949,285 |
| | $ | 1,798,479 |
|
| Cost of sales | | 323,550 |
| | 321,526 |
| | 941,342 |
| | 867,087 |
|
| Gross profit | | 334,426 |
| | 332,266 |
| | 1,007,943 |
| | 931,392 |
|
| % of sales | | 50.8 | % | | 50.8 | % | | 51.7 | % | | 51.8 | % |
| Selling, general and administrative expenses | | 215,226 |
| | 203,327 |
| | 632,982 |
| | 572,026 |
|
| % of sales | | 32.7 | % | | 31.1 | % | | 32.5 | % | | 31.8 | % |
| Research and development | | 20,780 |
| | 19,308 |
| | 60,351 |
| | 57,198 |
|
| Operating profit | | 98,420 |
| | 109,631 |
| | 314,610 |
| | 302,168 |
|
| % of sales | | 15.0 | % | | 16.8 | % | | 16.1 | % | | 16.8 | % |
| ROTC (a) | | 2,861 |
| | 7,723 |
| | 31,001 |
| | 13,921 |
|
| Interest expense, net | | 6,351 |
| | 6,068 |
| | 17,682 |
| | 19,176 |
|
| Earnings from continuing operations before income taxes | | 89,208 |
| | 95,840 |
| | 265,927 |
| | 269,071 |
|
| Provision for income taxes (b) | | 18,270 |
| | 34,082 |
| | 60,691 |
| | 80,021 |
|
| Net earnings from continuing operations | | $ | 70,938 |
| | $ | 61,758 |
| | $ | 205,236 |
| | $ | 189,050 |
|
| Earnings from discontinued operations, net of income taxes (c) | | 7,980 |
| | 9,311 |
| | 27,866 |
| | 29,092 |
|
| Net Earnings | | $ | 78,918 |
| | $ | 71,069 |
| | $ | 233,102 |
| | $ | 218,142 |
|
| | | | | | | | | |
| Average shares outstanding: | | | | | | | | |
| Basic | | 116,567 |
| | 116,899 |
| | 116,190 |
| | 116,565 |
|
| Diluted | | 118,358 |
| | 118,723 |
| | 117,817 |
| | 118,296 |
|
| | | | | | | | | |
| Earnings per share from continuing operations: | | | | | | | | |
| Basic | | $ | 0.61 |
| | $ | 0.53 |
| | $ | 1.77 |
| | $ | 1.62 |
|
| Diluted | | $ | 0.60 |
| | $ | 0.52 |
| | $ | 1.74 |
| | $ | 1.60 |
|
| | | | | | | | | |
| Earnings per share from discontinued operations: | | | | | | | | |
| Basic | | $ | 0.07 |
| | $ | 0.08 |
| | $ | 0.24 |
| | $ | 0.25 |
|
| Diluted | | $ | 0.07 |
| | $ | 0.08 |
| | $ | 0.24 |
| | $ | 0.25 |
|
| | | | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic | | $ | 0.68 |
| | $ | 0.61 |
| | $ | 2.01 |
| | $ | 1.87 |
|
| Diluted | | $ | 0.67 |
| | $ | 0.60 |
| | $ | 1.98 |
| | $ | 1.84 |
|
| | | | | | | | | |
| Pro forma earnings reconciliation from Continuing Operations | | | | | | | | |
| Net earnings from continuing operations as reported | | $ | 70,938 |
| | $ | 61,758 |
| | $ | 205,236 |
| | $ | 189,050 |
|
| Discrete items: | | | | | | | | |
| Tax adjustments (b) | | — |
| | 8,409 |
| | — |
| | 8,409 |
|
| ROTC, after pro forma tax effect (a) | | 1,772 |
| | 5,621 |
| | 23,493 |
| | 11,413 |
|
| Total discrete items | | 1,772 |
| | 14,030 |
| | 23,493 |
| | 19,822 |
|
| Pro forma earnings from continuing operations | | 72,710 |
| | 75,788 |
| | 228,729 |
| | 208,872 |
|
| | | | | | | | | |
| Diluted earnings per share from continuing operations as reported | | $ | 0.60 |
| | $ | 0.52 |
| | $ | 1.74 |
| | $ | 1.60 |
|
| Discrete items: | | | | | | | | |
| Tax adjustments (b) | | — |
| | 0.07 |
| | — |
| | 0.07 |
|
| ROTC, after pro forma tax effect (a) | | 0.01 |
| | 0.05 |
| | 0.20 |
| | 0.10 |
|
| Total discrete items | | 0.01 |
| | 0.12 |
| | 0.20 |
| | 0.17 |
|
| Pro forma diluted earnings per share from continuing operations | | $ | 0.61 |
| | $ | 0.64 |
| | $ | 1.94 |
| | $ | 1.77 |
|
| | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Pro forma earnings reconciliation from Total Company | | | | | | | | |
| Net earnings as reported | | $ | 78,918 |
| | $ | 71,069 |
| | $ | 233,102 |
| | $ | 218,142 |
|
| Discrete items: | | | | | | | | |
| Tax adjustments (b) | | — |
| | 8,409 |
| | — |
| | 8,409 |
|
| Transaction costs, after pro forma tax effect (c) | | 2,702 |
| | — |
| | 3,123 |
| | — |
|
| ROTC, after pro forma tax effect (a) | | 1,772 |
| | 5,621 |
| | 23,493 |
| | 11,413 |
|
| Total discrete items | | 4,474 |
| | 14,030 |
| | 26,616 |
| | 19,822 |
|
| Pro forma earnings | | $ | 83,392 |
| | $ | 85,099 |
| | $ | 259,718 |
| | $ | 237,964 |
|
| | | | | | | | | |
| Diluted earnings per share as reported | | $ | 0.67 |
| | $ | 0.60 |
| | $ | 1.98 |
| | $ | 1.84 |
|
| Discrete items: | | | | | | | | |
| Tax adjustments (b) | | — |
| | 0.07 |
| | — |
| | 0.07 |
|
| Transaction costs, after pro forma tax effect (c) | | 0.02 |
| | — |
| | 0.02 |
| | — |
|
| ROTC, after pro forma tax effect (a) | | 0.01 |
| | 0.05 |
| | 0.20 |
| | 0.10 |
|
| Total discrete items | | 0.03 |
| | 0.12 |
| | 0.22 |
| | 0.17 |
|
| Pro forma diluted earnings per share | | $ | 0.70 |
| | $ | 0.72 |
| | $ | 2.20 |
| | $ | 2.01 |
|
| | | | | | | | | |
Pro forma earnings measures exclude the items below as they are deemed to be non-recurring in nature and/or not considered by management to be indicative of underlying operating performance. The pro forma tax effects disclosed were calculated using applicable entity-specific U.S. federal and/or foreign tax rates.
(a) ROTC in the quarter and nine months ended April 30, 2012 of $2,861 ($1,772 after pro forma tax effect of $1,089) and $31,001 ($23,493 after pro forma tax effect of $7,508), respectively, includes expenses related to the Company's cost reduction initiatives, primarily in the Industrial segment and certain employment contract obligations. ROTC in the nine months was partly offset by a gain on the sale of an investment.
ROTC in the quarter and nine months ended April 30, 2011 of $7,723 ($5,621 after pro forma tax effect of $2,102) and $13,921 ($11,413 after pro forma tax effect of $2,508), respectively, primarily includes costs related to the Company's cost reduction initiatives and certain employment contract obligations.
(b) Provision for income taxes in the quarter and nine months ended April 30, 2011 includes a charge of $8,409 related to tax costs associated with the establishment of the Company's Asian Headquarters in Singapore.
(c) Discontinued operations include transaction costs of $3,336 ($2,702 after pro forma tax effect of $634) and $3,994 ($3,123 after pro forma tax effect of $871) for the three and nine months, respectively, related to the sale of the Blood product line.
|
| | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited) |
| (Amounts in Thousands) |
| | | | | |
| | | | | |
| | | NINE MONTHS ENDED |
| | | APR. 30, 2012 | | APR. 30, 2011 |
| | | | | |
| Net cash provided by operating activities | | $ | 326,417 |
| | $ | 280,956 |
|
| | | | | |
| Investing activities: | | | | |
| | | | | |
| Acquisition of business | | (167,638 | ) | | — |
|
| Capital expenditures | | (126,923 | ) | | (103,142 | ) |
| Proceeds from sale of assets | | 25,604 |
| | 530 |
|
| Other | | (10,049 | ) | | (16,231 | ) |
| Net cash used by investing activities | | (279,006 | ) | | (118,843 | ) |
| | | | | |
| Financing activities: | | | | |
| | | | | |
| Dividends paid | | (64,554 | ) | | (57,287 | ) |
| Repayments of notes payable and long-term borrowings | | (15,290 | ) | | (153,578 | ) |
| Purchase of treasury stock | | — |
| | (64,524 | ) |
| Other | | 39,022 |
| | 65,286 |
|
| Net cash used by financing activities | | (40,822 | ) | | (210,103 | ) |
| | | | | |
| Cash flow for period (1) | | 6,589 |
| | (47,990 | ) |
| Cash and cash equivalents at beginning of year | | 557,766 |
| | 498,563 |
|
| Effect of exchange rate changes on cash | | (28,464 | ) | | 40,923 |
|
| Cash and cash equivalents at end of period | | $ | 535,891 |
| | $ | 491,496 |
|
| | | | | |
| | | | | |
| Free cash flow: | | | | |
| Net cash provided by operating activities | | $ | 326,417 |
| | $ | 280,956 |
|
| Less capital expenditures | | 126,923 |
| | 103,142 |
|
| Free cash flow | | $ | 199,494 |
| | $ | 177,814 |
|
| | | | | |
| (1) Cash flows are inclusive of discontinued operations. | | | | |
|
| | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| SUMMARY SEGMENT PROFIT BY SEGMENT FROM CONTINUING OPERATIONS |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | |
| | | | | | | | | |
| | | THIRD QUARTER ENDED | | NINE MONTHS ENDED |
| | | APR. 30, 2012 | | APR. 30, 2011 | | APR. 30, 2012 | | APR. 30, 2011 |
| | | | | | | | | |
| Life Sciences | | | | | | | | |
| Sales | | $ | 317,969 |
| | $ | 312,691 |
| | $ | 918,954 |
| | $ | 852,463 |
|
| Cost of sales | | 137,782 |
| | 137,644 |
| | 382,871 |
| | 364,596 |
|
| Gross profit | | 180,187 |
| | 175,047 |
| | 536,083 |
| | 487,867 |
|
| % of sales | | 56.7 | % | | 56.0 | % | | 58.3 | % | | 57.2 | % |
| | | | | | | | | |
| Selling, general and administrative expenses | | 91,289 |
| | 83,999 |
| | 265,696 |
| | 238,944 |
|
| % of sales | | 28.7 | % | | 26.9 | % | | 28.9 | % | | 28.0 | % |
| Research and development | | 13,512 |
| | 12,163 |
| | 37,196 |
| | 35,256 |
|
| Segment profit | | $ | 75,386 |
| | $ | 78,885 |
| | $ | 233,191 |
| | $ | 213,667 |
|
| % of sales | | 23.7 | % | | 25.2 | % | | 25.4 | % | | 25.1 | % |
| | | | | | | | | |
| Industrial | | | | | | | | |
| Sales | | $ | 340,007 |
| | $ | 341,101 |
| | $ | 1,030,331 |
| | $ | 946,016 |
|
| Cost of sales | | 185,768 |
| | 183,882 |
| | 558,471 |
| | 502,491 |
|
| Gross profit | | 154,239 |
| | 157,219 |
| | 471,860 |
| | 443,525 |
|
| % of sales | | 45.4 | % | | 46.1 | % | | 45.8 | % | | 46.9 | % |
| | | | | | | | | |
| Selling, general and administrative expenses | | 107,540 |
| | 102,874 |
| | 317,510 |
| | 287,327 |
|
| % of sales | | 31.6 | % | | 30.2 | % | | 30.8 | % | | 30.4 | % |
| Research and development | | 7,268 |
| | 7,145 |
| | 23,155 |
| | 21,942 |
|
| Segment profit | | $ | 39,431 |
| | $ | 47,200 |
| | $ | 131,195 |
| | $ | 134,256 |
|
| % of sales | | 11.6 | % | | 13.8 | % | | 12.7 | % | | 14.2 | % |
| | | | | | | | | |
| Consolidated: | | | | | | | | |
| Segment profit | | $ | 114,817 |
| | $ | 126,085 |
| | $ | 364,386 |
| | $ | 347,923 |
|
| Corporate services group | | 16,397 |
| | 16,454 |
| | 49,776 |
| | 45,755 |
|
| Operating profit | | 98,420 |
| | 109,631 |
| | 314,610 |
| | 302,168 |
|
| ROTC | | 2,861 |
| | 7,723 |
| | 31,001 |
| | 13,921 |
|
| Interest expense, net | | 6,351 |
| | 6,068 |
| | 17,682 |
| | 19,176 |
|
| Earnings from continuing operations before income taxes | | $ | 89,208 |
| | $ | 95,840 |
| | $ | 265,927 |
| | $ | 269,071 |
|
| | | | | | | | | |
| Note: | | | | | | | | |
| Life Sciences results exclude the results of the Blood product line, which has been reported as discontinued operations. |
| The Life Sciences and Industrial results have been restated to reflect the change in the allocation of certain shared expenses on a continuing operations basis. |
|
| | | | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND REGION |
| FROM CONTINUING OPERATIONS |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | | | |
| | | | | | | | | EXCHANGE | | % CHANGE |
| THIRD QUARTER | | | | | | % | | RATE | | IN LOCAL |
| ENDED | | APR. 30, 2012 | | APR. 30, 2011 | | CHANGE | | IMPACT | | CURRENCY |
| | | | | | | | | | | |
| Life Sciences (1) | | | | | | |------------ Increase/(Decrease) -------------| |
| By Market: | | | | | | | | | | |
| BioPharmaceuticals | | $ | 201,670 |
| | $ | 197,186 |
| | 2.3 |
| | $ | (4,277 | ) | | 4.4 |
|
| Food & Beverage | | 66,568 |
| | 63,787 |
| | 4.4 |
| | (1,770 | ) | | 7.1 |
|
| Medical | | 49,731 |
| | 51,718 |
| | (3.8 | ) | | (1,211 | ) | | (1.5 | ) |
| Total Life Sciences | | $ | 317,969 |
| | $ | 312,691 |
| | 1.7 |
| | $ | (7,258 | ) | | 4.0 |
|
| | | | | | | | | | | |
| By Region: | | | | | | | | | | |
| Americas | | $ | 95,505 |
| | $ | 88,164 |
| | 8.3 |
| | $ | (710 | ) | | 9.1 |
|
| Europe | | 154,527 |
| | 164,715 |
| | (6.2 | ) | | (7,133 | ) | | (1.9 | ) |
| Asia | | 67,937 |
| | 59,812 |
| | 13.6 |
| | 585 |
| | 12.6 |
|
| Total Life Sciences | | $ | 317,969 |
| | $ | 312,691 |
| | 1.7 |
| | $ | (7,258 | ) | | 4.0 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Industrial | | | | | | | | | | |
| By Market: | | | | | | | | | | |
| Process Technologies | | $ | 213,804 |
| | $ | 208,238 |
| | 2.7 |
| | $ | (4,300 | ) | | 4.7 |
|
| Aerospace | | 50,706 |
| | 50,959 |
| | (0.5 | ) | | (752 | ) | | 1.0 |
|
| Microelectronics | | 75,497 |
| | 81,904 |
| | (7.8 | ) | | 1 |
| | (7.8 | ) |
| Total Industrial | | $ | 340,007 |
| | $ | 341,101 |
| | (0.3 | ) | | $ | (5,051 | ) | | 1.2 |
|
| | | | | | | | | | | |
| By Region: | | | | | | | | | | |
| Americas | | $ | 100,210 |
| | $ | 112,401 |
| | (10.8 | ) | | $ | (708 | ) | | (10.2 | ) |
| Europe | | 103,637 |
| | 103,094 |
| | 0.5 |
| | (5,417 | ) | | 5.8 |
|
| Asia | | 136,160 |
| | 125,606 |
| | 8.4 |
| | 1,074 |
| | 7.5 |
|
| Total Industrial | | $ | 340,007 |
| | $ | 341,101 |
| | (0.3 | ) | | $ | (5,051 | ) | | 1.2 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total Sales: | | | | | | | | | | |
| Continuing operations | | $ | 657,976 |
| | $ | 653,792 |
| | 0.6 |
| | $ | (12,309 | ) | | 2.5 |
|
| Discontinued operations | | 57,180 |
| | 56,016 |
| | 2.1 |
| | $ | (673 | ) | | 3.3 |
|
| Total Sales | | $ | 715,156 |
| | $ | 709,808 |
| | 0.8 |
| | $ | (12,982 | ) | | 2.6 |
|
| | | | | | | | | | | |
| (1) Excludes the results of the Blood product line, which has been reported as discontinued operations. |
|
| | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL SEGMENT SALES INFORMATION BY MARKET AND REGION |
| FROM CONTINUING OPERATIONS |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | | | |
| | | | | | | | | EXCHANGE | | % CHANGE |
| NINE MONTHS | | | | | | % | | RATE | | IN LOCAL |
| ENDED | | APR. 30, 2012 | | APR. 30, 2011 | | CHANGE | | IMPACT | | CURRENCY |
| | | | | | | | | | | |
| Life Sciences (1) | | | | | | |-------------- Increase/(Decrease) -------------| |
| By Market: | | | | | | | | | | |
| BioPharmaceuticals | | $ | 599,329 |
| | $ | 538,145 |
| | 11.4 |
| | $ | 4,703 |
| | 10.5 |
|
| Food & Beverage | | 175,953 |
| | 167,775 |
| | 4.9 |
| | 353 |
| | 4.7 |
|
| Medical | | 143,672 |
| | 146,543 |
| | (2 | ) | | 755 |
| | (2.5 | ) |
| Total Life Sciences | | $ | 918,954 |
| | $ | 852,463 |
| | 7.8 |
| | $ | 5,811 |
| | 7.1 |
|
| | | | | | | | | | | |
| By Region: | | | | | | | | | | |
| Americas | | $ | 270,243 |
| | $ | 250,503 |
| | 7.9 |
| | $ | (998 | ) | | 8.3 |
|
| Europe | | 460,432 |
| | 436,627 |
| | 5.5 |
| | 768 |
| | 5.3 |
|
| Asia | | 188,279 |
| | 165,333 |
| | 13.9 |
| | 6,041 |
| | 10.2 |
|
| Total Life Sciences | | $ | 918,954 |
| | $ | 852,463 |
| | 7.8 |
| | $ | 5,811 |
| | 7.1 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Industrial | | | | | | | | | | |
| By Market: | | | | | | | | | | |
| Process Technologies | | $ | 639,743 |
| | $ | 563,245 |
| | 13.6 |
| | $ | 3,298 |
| | 13.0 |
|
| Aerospace | | 162,298 |
| | 149,119 |
| | 8.8 |
| | 12 |
| | 8.8 |
|
| Microelectronics | | 228,290 |
| | 233,652 |
| | (2.3 | ) | | 6,598 |
| | (5.1 | ) |
| Total Industrial | | $ | 1,030,331 |
| | $ | 946,016 |
| | 8.9 |
| | $ | 9,908 |
| | 7.9 |
|
| | | | | | | | | | | |
| By Region: | | | | | | | | | | |
| Americas | | $ | 314,001 |
| | $ | 317,948 |
| | (1.2 | ) | | $ | (965 | ) | | (0.9 | ) |
| Europe | | 309,124 |
| | 271,432 |
| | 13.9 |
| | (3,263 | ) | | 15.1 |
|
| Asia | | 407,206 |
| | 356,636 |
| | 14.2 |
| | 14,136 |
| | 10.2 |
|
| Total Industrial | | $ | 1,030,331 |
| | $ | 946,016 |
| | 8.9 |
| | $ | 9,908 |
| | 7.9 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total Sales: | | | | | | | | | | |
| Continuing operations | | $ | 1,949,285 |
| | $ | 1,798,479 |
| | 8.4 |
| | $ | 15,719 |
| | 7.5 |
|
| Discontinued operations | | 169,493 |
| | 162,038 |
| | 4.6 |
| | $ | 448 |
| | 4.3 |
|
| Total Sales | | $ | 2,118,778 |
| | $ | 1,960,517 |
| | 8.1 |
| | $ | 16,167 |
| | 7.2 |
|
| | | | | | | | | | | |
| (1) Excludes the results of the Blood product line, which has been reported as discontinued operations. |
|
| | | | | | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| LIFE SCIENCES SEGMENT SALES FROM CONTINUING OPERATIONS |
| FISCAL YEAR 2012 AND 2011 BY QUARTER |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | Q1 | | Q2 | | 6 MONTHS | | | | |
| Fiscal Year 2012 | | OCT. 31, 2011 | | JAN. 31, 2012 | | JAN. 31, 2012 | | | | |
| | | | | | | | | | | |
| Life Sciences (1) | | | | | | | | | | |
| By Market: | | | | | | | | | | |
| BioPharmaceuticals | | $ | 196,012 |
| | $ | 201,647 |
| | $ | 397,659 |
| | | | |
| Food & Beverage | | 56,019 |
| | 53,366 |
| | 109,385 |
| | | | |
| Medical | | 49,723 |
| | 44,218 |
| | 93,941 |
| | | | |
| Total Life Sciences | | $ | 301,754 |
| | $ | 299,231 |
| | $ | 600,985 |
| | | | |
| | | | | | | | | | | |
| By Geography: | | | | | | | | | | |
| Americas | | $ | 90,724 |
| | $ | 84,014 |
| | $ | 174,738 |
| | | | |
| Europe | | 153,878 |
| | 152,027 |
| | 305,905 |
| | | | |
| Asia | | 57,152 |
| | 63,190 |
| | 120,342 |
| | | | |
| Total Life Sciences | | $ | 301,754 |
| | $ | 299,231 |
| | $ | 600,985 |
| | | | |
| | | | | | | | | | | |
| | | Q1 | | Q2 | | Q3 | | Q4 | | |
| Fiscal Year 2011 | | OCT. 31, 2010 | | JAN. 31, 2011 | | APR. 30, 2011 | | JUL. 31, 2011 | | TOTAL YEAR |
| | | | | | | | | | | |
| Life Sciences | | | | | | | | | | |
| By Market: | | | | | | | | | | |
| BioPharmaceuticals | | $ | 161,409 |
| | $ | 179,550 |
| | $ | 197,186 |
| | $ | 199,865 |
| | $ | 738,010 |
|
| Food & Beverage | | 51,629 |
| | 52,359 |
| | 63,787 |
| | 77,810 |
| | 245,585 |
|
| Medical | | 46,856 |
| | 47,969 |
| | 51,718 |
| | 54,004 |
| | 200,547 |
|
| Total Life Sciences | | $ | 259,894 |
| | $ | 279,878 |
| | $ | 312,691 |
| | $ | 331,679 |
| | $ | 1,184,142 |
|
| | | | | | | | | | | |
| By Geography: | | | | | | | | | | |
| Americas | | $ | 78,125 |
| | $ | 84,214 |
| | $ | 88,164 |
| | $ | 94,770 |
| | $ | 345,273 |
|
| Europe | | 131,665 |
| | 140,247 |
| | 164,715 |
| | 168,912 |
| | 605,539 |
|
| Asia | | 50,104 |
| | 55,417 |
| | 59,812 |
| | 67,997 |
| | 233,330 |
|
| Total Life Sciences | | $ | 259,894 |
| | $ | 279,878 |
| | $ | 312,691 |
| | $ | 331,679 |
| | $ | 1,184,142 |
|
| | | | | | | | | | | |
| (1) Excludes the results of the Blood product line, which has been reported as discontinued operations. |
|
| | | | | | | | | | | | |
| PALL CORPORATION |
| SUMMARY SEGMENT PROFIT FROM CONTINUING OPERATIONS |
| FISCAL YEAR 2012 BY QUARTER |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | |
| | | Q1 | | Q2 | | 6 MONTHS |
| Fiscal Year 2012 | | OCT. 31, 2011 | | JAN. 31, 2012 | | JAN. 31, 2012 |
| | | | | | | |
| Life Sciences | | | | | | |
| Sales | | $ | 301,754 |
| | $ | 299,231 |
| | $ | 600,985 |
|
| Cost of sales | | 123,541 |
| | 121,548 |
| | 245,089 |
|
| Gross profit | | 178,213 |
| | 177,683 |
| | 355,896 |
|
| % of sales | | 59.1 | % | | 59.4 | % | | 59.2 | % |
| | | | | | | |
| Selling, general and administrative expenses | | 87,066 |
| | 87,341 |
| | 174,407 |
|
| % of sales | | 28.9 | % | | 29.2 | % | | 29.0 | % |
| Research and development | | 11,430 |
| | 12,254 |
| | 23,684 |
|
| Segment profit | | $ | 79,717 |
| | $ | 78,088 |
| | $ | 157,805 |
|
| % of sales | | 26.4 | % | | 26.1 | % | | 26.3 | % |
| | | | | | | |
| Industrial | | | | | | |
| Sales | | $ | 349,508 |
| | $ | 340,816 |
| | $ | 690,324 |
|
| Cost of sales | | 192,369 |
| | 180,334 |
| | 372,703 |
|
| Gross profit | | 157,139 |
| | 160,482 |
| | 317,621 |
|
| % of sales | | 45.0 | % | | 47.1 | % | | 46.0 | % |
| | | | | | | |
| Selling, general and administrative expenses | | 105,413 |
| | 104,557 |
| | 209,970 |
|
| % of sales | | 30.2 | % | | 30.7 | % | | 30.4 | % |
| Research and development | | 8,091 |
| | 7,796 |
| | 15,887 |
|
| Segment profit | | $ | 43,635 |
| | $ | 48,129 |
| | $ | 91,764 |
|
| % of sales | | 12.5 | % | | 14.1 | % | | 13.3 | % |
| | | | | | | |
| Consolidated: | | | | | | |
| Segment profit | | $ | 123,352 |
| | $ | 126,217 |
| | $ | 249,569 |
|
| Corporate services group | | 15,701 |
| | 17,678 |
| | 33,379 |
|
| Operating profit | | 107,651 |
| | 108,539 |
| | 216,190 |
|
| ROTC | | 22,984 |
| | 5,156 |
| | 28,140 |
|
| Interest expense, net | | 5,945 |
| | 5,386 |
| | 11,331 |
|
| Earnings from continuing operations before income taxes | | $ | 78,722 |
| | $ | 97,997 |
| | $ | 176,719 |
|
| | | | | | | |
| Note: | | | | | | |
| Life Sciences results exclude the results of the Blood product line, which has been reported as discontinued operations. |
| The Life Sciences and Industrial results have been restated to reflect the change in the allocation of certain shared expenses on a continuing operations basis. |
|
| | | | | | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| SUMMARY SEGMENT PROFIT FROM CONTINUING OPERATIONS |
| FISCAL YEAR 2011 BY QUARTER |
| (Unaudited) |
| (Dollar Amounts in Thousands) |
| | | | | | | | | | | |
| | | Q1 | | Q2 | | Q3 | | Q4 | | |
| Fiscal Year 2011 | | OCT. 31, 2010 | | JAN. 31, 2011 | | APR. 30, 2011 | | JUL. 31, 2011 | | TOTAL YEAR |
| | | | | | | | | | | |
| Life Sciences | | | | | | | | | | |
| Sales | | $ | 259,894 |
| | $ | 279,878 |
| | $ | 312,691 |
| | $ | 331,679 |
| | $ | 1,184,142 |
|
| Cost of sales | | 110,539 |
| | 116,413 |
| | 137,644 |
| | 145,354 |
| | 509,950 |
|
| Gross profit | | 149,355 |
| | 163,465 |
| | 175,047 |
| | 186,325 |
| | 674,192 |
|
| % of sales | | 57.5 | % | | 58.4 | % | | 56.0 | % | | 56.2 | % | | 56.9 | % |
| | | | | | | | | | | |
| Selling, general and administrative expenses | | 75,289 |
| | 79,656 |
| | 83,999 |
| | 93,691 |
| | 332,635 |
|
| % of sales | | 29.0 | % | | 28.5 | % | | 26.9 | % | | 28.2 | % | | 28.1 | % |
| Research and development | | 11,674 |
| | 11,419 |
| | 12,163 |
| | 13,798 |
| | 49,054 |
|
| Segment profit | | $ | 62,392 |
| | $ | 72,390 |
| | $ | 78,885 |
| | $ | 78,836 |
| | $ | 292,503 |
|
| % of sales | | 24.0 | % | | 25.9 | % | | 25.2 | % | | 23.8 | % | | 24.7 | % |
| | | | | | | | | | | |
| Industrial | | | | | | | | | | |
| Sales | | $ | 293,897 |
| | $ | 311,018 |
| | $ | 341,101 |
| | $ | 387,037 |
| | $ | 1,333,053 |
|
| Cost of sales | | 155,246 |
| | 163,363 |
| | 183,882 |
| | 219,842 |
| | 722,333 |
|
| Gross profit | | 138,651 |
| | 147,655 |
| | 157,219 |
| | 167,195 |
| | 610,720 |
|
| % of sales | | 47.2 | % | | 47.5 | % | | 46.1 | % | | 43.2 | % | | 45.8 | % |
| | | | | | | | | | | |
| Selling, general and administrative expenses | | 89,365 |
| | 95,088 |
| | 102,874 |
| | 109,192 |
| | 396,519 |
|
| % of sales | | 30.4 | % | | 30.6 | % | | 30.2 | % | | 28.2 | % | | 29.7 | % |
| Research and development | | 6,912 |
| | 7,885 |
| | 7,145 |
| | 9,510 |
| | 31,452 |
|
| Segment profit | | $ | 42,374 |
| | $ | 44,682 |
| | $ | 47,200 |
| | $ | 48,493 |
| | $ | 182,749 |
|
| % of sales | | 14.4 | % | | 14.4 | % | | 13.8 | % | | 12.5 | % | | 13.7 | % |
| | | | | | | | | | | |
| Consolidated: | | | | | | | | | | |
| Segment profit | | $ | 104,766 |
| | $ | 117,072 |
| | $ | 126,085 |
| | $ | 127,329 |
| | $ | 475,252 |
|
| Corporate services group | | 12,321 |
| | 16,980 |
| | 16,454 |
| | 15,370 |
| | 61,125 |
|
| Operating profit | | 92,445 |
| | 100,092 |
| | 109,631 |
| | 111,959 |
| | 414,127 |
|
| ROTC | | 1,409 |
| | 4,789 |
| | 7,723 |
| | 12,584 |
| | 26,505 |
|
| Interest expense, net | | 7,294 |
| | 5,814 |
| | 6,068 |
| | (273 | ) | | 18,903 |
|
| Earnings from continuing operations before income taxes | | $ | 83,742 |
| | $ | 89,489 |
| | $ | 95,840 |
| | $ | 99,648 |
| | $ | 368,719 |
|
| | | | | | | | | | | |
| Note: | | | | | | | | | | |
| Life Sciences results exclude the results of the Blood product line, which has been reported as discontinued operations. |
| The Life Sciences and Industrial results have been restated to reflect the change in the allocation of certain shared expenses on a continuing operations basis. |
|
| | | | | | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| FISCAL YEAR 2012 BY QUARTER |
| (Unaudited) |
| (Amounts in Thousands, Except Per Share Data) |
| | | | | | | |
| | | Q1 | | Q2 | | SIX MONTHS |
| | | OCT. 31, 2011 | | JAN. 31, 2012 | | JAN. 31, 2012 |
| | | | | | | |
| Net sales | | $ | 651,262 |
| | $ | 640,047 |
| | $ | 1,291,309 |
|
| Cost of sales | | 315,910 |
| | 301,882 |
| | 617,792 |
|
| Gross profit | | 335,352 |
| | 338,165 |
| | 673,517 |
|
| % of sales | | 51.5 | % | | 52.8 | % | | 52.2 | % |
| Selling, general and administrative expenses | | 208,180 |
| | 209,576 |
| | 417,756 |
|
| % of sales | | 32.0 | % | | 32.7 | % | | 32.4 | % |
| Research and development | | 19,521 |
| | 20,050 |
| | 39,571 |
|
| Operating profit | | 107,651 |
| | 108,539 |
| | 216,190 |
|
| % of sales | | 16.5 | % | | 17.0 | % | | 16.7 | % |
| ROTC | | 22,984 |
| | 5,156 |
| | 28,140 |
|
| Interest expense, net | | 5,945 |
| | 5,386 |
| | 11,331 |
|
| Earnings from continuing operations before income taxes | | 78,722 |
| | 97,997 |
| | 176,719 |
|
| Provision for income taxes | | 19,070 |
| | 23,351 |
| | 42,421 |
|
| Net earnings from continuing operations | | $ | 59,652 |
| | $ | 74,646 |
| | $ | 134,298 |
|
| Earnings from discontinued operations, net of income taxes | | 9,803 |
| | 10,083 |
| | 19,886 |
|
| Net Earnings | | $ | 69,455 |
| | $ | 84,729 |
| | $ | 154,184 |
|
| | | | | | | |
| Average shares outstanding: | | | | | | |
| Basic | | 115,824 |
| | 116,196 |
| | 115,997 |
|
| Diluted | | 117,224 |
| | 117,914 |
| | 117,555 |
|
| | | | | | | |
| Earnings per share from continuing operations: | | | | | | |
| Basic | | $ | 0.52 |
| | $ | 0.64 |
| | $ | 1.16 |
|
| Diluted | | $ | 0.51 |
| | $ | 0.63 |
| | $ | 1.14 |
|
| | | | | | | |
| Earnings per share from discontinued operations: | | | | | | |
| Basic | | $ | 0.08 |
| | $ | 0.09 |
| | $ | 0.17 |
|
| Diluted | | $ | 0.08 |
| | $ | 0.09 |
| | $ | 0.17 |
|
| | | | | | | |
| Earnings per share: | | | | | | |
| Basic | | $ | 0.60 |
| | $ | 0.73 |
| | $ | 1.33 |
|
| Diluted | | $ | 0.59 |
| | $ | 0.72 |
| | $ | 1.31 |
|
| | | | | | | |
| |
| Pro forma earnings reconciliation from Continuing Operations | | | | | | |
| Net earnings from continuing operations as reported | | $ | 59,652 |
| | $ | 74,646 |
| | $ | 134,298 |
|
| Discrete items: | | | | | | |
| ROTC, after pro forma tax effect | | 17,756 |
| | 3,965 |
| | 21,721 |
|
| Pro forma earnings from continuing operations | | 77,408 |
| | 78,611 |
| | 156,019 |
|
| | | | | | | |
| Diluted earnings per share from continuing operations as reported | | $ | 0.51 |
| | $ | 0.63 |
| | $ | 1.14 |
|
| Discrete items: | | | | | | |
| ROTC, after pro forma tax effect | | 0.15 |
| | 0.04 |
| | 0.19 |
|
| Pro forma diluted earnings per share from continuing operations | | $ | 0.66 |
| | $ | 0.67 |
| | $ | 1.33 |
|
| |
|
| | | | | | | | | | | | |
| | | | | | | |
| Pro forma earnings reconciliation from Total Company | | | | | | |
| Net earnings as reported | | $ | 69,455 |
| | $ | 84,729 |
| | $ | 154,184 |
|
| Discrete items: | | | | | | |
| Transaction costs, after pro forma tax effect | | — |
| | 421 |
| | 421 |
|
| ROTC, after pro forma tax effect | | 17,756 |
| | 3,965 |
| | 21,721 |
|
| Total discrete items | | 17,756 |
| | 4,386 |
| | 22,142 |
|
| Pro forma earnings | | 87,211 |
| | 89,115 |
| | 176,326 |
|
| | | | | | | |
| Diluted earnings per share as reported | | $ | 0.59 |
| | $ | 0.72 |
| | $ | 1.31 |
|
| Discrete items: | | | | | | |
| Transaction costs, after pro forma tax effect | | — |
| | 0.00 |
| | 0.00 |
|
| ROTC, after pro forma tax effect | | 0.15 |
| | 0.04 |
| | 0.19 |
|
| Total discrete items | | 0.15 |
| | 0.04 |
| | 0.19 |
|
| Pro forma diluted earnings per share | | $ | 0.74 |
| | $ | 0.76 |
| | $ | 1.50 |
|
| | | | | | | |
| | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | |
| PALL CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| FISCAL YEAR 2011 BY QUARTER |
| (Unaudited) |
| (Amounts in Thousands, Except Per Share Data) |
| | | | | | | | | | | |
| | | Q1 | | Q2 | | Q3 | | Q4 | | TOTAL YEAR |
| | | OCT. 31, 2010 | | JAN. 31, 2011 | | APR. 30, 2011 | | JUL. 31, 2011 | | JUL. 31, 2011 |
| | | | | | | | | | | |
| Net sales | | $ | 553,791 |
| | $ | 590,896 |
| | $ | 653,792 |
| | $ | 718,716 |
| | $ | 2,517,195 |
|
| Cost of sales | | 265,785 |
| | 279,776 |
| | 321,526 |
| | 365,196 |
| | 1,232,283 |
|
| Gross profit | | 288,006 |
| | 311,120 |
| | 332,266 |
| | 353,520 |
| | 1,284,912 |
|
| % of sales | | 52.0 | % | | 52.7 | % | | 50.8 | % | | 49.2 | % | | 51.0 | % |
| Selling, general and administrative expenses | | 176,975 |
| | 191,724 |
| | 203,327 |
| | 218,253 |
| | 790,279 |
|
| % of sales | | 32.0 | % | | 32.4 | % | | 31.1 | % | | 30.4 | % | | 31.4 | % |
| Research and development | | 18,586 |
| | 19,304 |
| | 19,308 |
| | 23,308 |
| | 80,506 |
|
| Operating profit | | 92,445 |
| | 100,092 |
| | 109,631 |
| | 111,959 |
| | 414,127 |
|
| % of sales | | 16.7 | % | | 16.9 | % | | 16.8 | % | | 15.6 | % | | 16.5 | % |
| ROTC | | 1,409 |
| | 4,789 |
| | 7,723 |
| | 12,584 |
| | 26,505 |
|
| Interest expense, net | | 7,294 |
| | 5,814 |
| | 6,068 |
| | (273 | ) | | 18,903 |
|
| Earnings from continuing operations before income taxes | | 83,742 |
| | 89,489 |
| | 95,840 |
| | 99,648 |
| | 368,719 |
|
| Provision for income taxes | | 21,903 |
| | 24,036 |
| | 34,082 |
| | 9,501 |
| | 89,522 |
|
| Net earnings from continuing operations | | $ | 61,839 |
| | $ | 65,453 |
| | $ | 61,758 |
| | $ | 90,147 |
| | $ | 279,197 |
|
| Earnings from discontinued operations, net of income taxes | | 9,570 |
| | 10,211 |
| | 9,311 |
| | 7,207 |
| | 36,299 |
|
| Net Earnings | | $ | 71,409 |
| | $ | 75,664 |
| | $ | 71,069 |
| | $ | 97,354 |
| | $ | 315,496 |
|
| | | | | | | | | | | |
| Average shares outstanding: | | | | | | | | | | |
| Basic | | 116,292 |
| | 116,476 |
| | 116,899 |
| | 116,544 |
| | 116,521 |
|
| Diluted | | 117,821 |
| | 118,266 |
| | 118,723 |
| | 118,249 |
| | 118,266 |
|
| | | | | | | | | | | |
| Earnings per share from continuing operations: | | | | | | | | | | |
| Basic | | $ | 0.53 |
| | $ | 0.56 |
| | $ | 0.53 |
| | $ | 0.77 |
| | $ | 2.40 |
|
| Diluted | | $ | 0.52 |
| | $ | 0.55 |
| | $ | 0.52 |
| | $ | 0.76 |
| | $ | 2.36 |
|
| | | | | | | | | | | |
| Earnings per share from discontinued operations: | | | | | | | | | | |
| Basic | | $ | 0.08 |
| | $ | 0.09 |
| | $ | 0.08 |
| | $ | 0.06 |
| | $ | 0.31 |
|
| Diluted | | $ | 0.08 |
| | $ | 0.09 |
| | $ | 0.08 |
| | $ | 0.06 |
| | $ | 0.31 |
|
| | | | | | | | | | | |
| Earnings per share: | | | | | | | | | | |
| Basic | | $ | 0.61 |
| | $ | 0.65 |
| | $ | 0.61 |
| | $ | 0.84 |
| | $ | 2.71 |
|
| Diluted | | $ | 0.61 |
| | $ | 0.64 |
| | $ | 0.60 |
| | $ | 0.82 |
| | $ | 2.67 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| Pro forma earnings reconciliation from Continuing Operations |
| Net earnings from continuing operations as reported | | $ | 61,839 |
| | $ | 65,453 |
| | $ | 61,758 |
| | $ | 90,147 |
| | $ | 279,197 |
|
| Discrete items: | | | | | | | | | | |
| Tax adjustments | | — |
| | — |
| | 8,409 |
| | (18,990 | ) | | (10,581 | ) |
| Interest adjustments, after pro forma tax effect | | — |
| | — |
| | — |
| | (3,413 | ) | | (3,413 | ) |
| ROTC, after pro forma tax effect | | 1,054 |
| | 4,738 |
| | 5,621 |
| | 9,420 |
| | 20,833 |
|
| Total discrete items | | 1,054 |
| | 4,738 |
| | 14,030 |
| | (12,983 | ) | | 6,839 |
|
| Pro forma earnings from continuing operations | | 62,893 |
| | 70,191 |
| | 75,788 |
| | 77,164 |
| | 286,036 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Diluted earnings per share from continuing operations as reported | | $ | 0.52 |
| | $ | 0.55 |
| | $ | 0.52 |
| | $ | 0.76 |
| | $ | 2.36 |
|
| Discrete items: | | | | | | | | | | |
| Tax adjustments | | — |
| | — |
| | 0.07 |
| | (0.16 | ) | | (0.09 | ) |
| Interest adjustments, after pro forma tax effect | | — |
| | — |
| | — |
| | (0.03 | ) | | (0.03 | ) |
| ROTC, after pro forma tax effect | | 0.01 |
| | 0.04 |
| | 0.05 |
| | 0.08 |
| | 0.18 |
|
| Total discrete items | | 0.01 |
| | 0.04 |
| | 0.12 |
| | (0.11 | ) | | 0.06 |
|
| Pro forma diluted earnings per share from continuing operations | | $ | 0.53 |
| | $ | 0.59 |
| | $ | 0.64 |
| | $ | 0.65 |
| | $ | 2.42 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| Pro forma earnings reconciliation from Total Company | | | | | | | | | | |
| Net earnings as reported | | $ | 71,409 |
| | $ | 75,664 |
| | $ | 71,069 |
| | $ | 97,354 |
| | $ | 315,496 |
|
| Discrete items: | | | | | | | | | | |
| Tax adjustments | | — |
| | — |
| | 8,409 |
| | (18,990 | ) | | (10,581 | ) |
| Interest adjustments, after pro forma tax effect | | — |
| | — |
| | — |
| | (3,413 | ) | | (3,413 | ) |
| ROTC, after pro forma tax effect | | 1,054 |
| | 4,738 |
| | 5,621 |
| | 14,739 |
| | 26,152 |
|
| Total discrete items | | 1,054 |
| | 4,738 |
| | 14,030 |
| | (7,664 | ) | | 12,158 |
|
| Pro forma earnings | | 72,463 |
| | 80,402 |
| | 85,099 |
| | 89,690 |
| | 327,654 |
|
| | | | | | | | | | | |
| Diluted earnings per share as reported | | $ | 0.61 |
| | $ | 0.64 |
| | $ | 0.60 |
| | $ | 0.82 |
| | $ | 2.67 |
|
| Discrete items: | | | | | | | | | | |
| Tax adjustments | | — |
| | — |
| | 0.07 |
| | (0.16 | ) | | (0.09 | ) |
| Interest adjustments, after pro forma tax effect | | — |
| | — |
| | — |
| | (0.03 | ) | | (0.03 | ) |
| ROTC, after pro forma tax effect | | 0.01 |
| | 0.04 |
| | 0.05 |
| | 0.13 |
| | 0.22 |
|
| Total discrete items | | 0.01 |
| | 0.04 |
| | 0.12 |
| | (0.06 | ) | | 0.10 |
|
| Pro forma diluted earnings per share | | $ | 0.62 |
| | $ | 0.68 |
| | $ | 0.72 |
| | $ | 0.76 |
| | $ | 2.77 |
|
| | | | | | | | | | | |
Contact:
Pall Corporation
Brent Jones
Vice President – Finance
Telephone: 516-801-9848
Email: investor_relations@pall.com
