Exhibit 99.1
FOR IMMEDIATE RELEASE
24 April 2003
PERKINELMER ANNOUNCES EARNINGS PER SHARE
IN LINE WITH PREVIOUS ESTIMATES
- REVENUE GROWTH OF 4%
- GAAP EPS FROM CONTINUING OPERATIONS OF $.03 PER SHARE,
UP FROM A LOSS OF ($.17) PER SHARE IN Q1 02
- $24M OPERATING CASH FLOW; $55M IMPROVEMENT FROM Q1 02
- LIFE AND ANALYTICAL SCIENCES INTEGRATION ON TRACK
BOSTON - PerkinElmer, Inc. (NYSE: PKI) today announced first quarter 2003 GAAP
earnings per share from continuing operations of $.03 on revenue of $358.4
million, compared to a GAAP loss per share from continuing operations of ($.17)
and revenue of $346.3 million in the first quarter of 2002. The first quarter
2003 results reflect intangibles amortization of $7.2 million, or approximately
$.04 per share. These earnings are consistent with the company's January 2003
estimate for the quarter of $.02 to $.05 per share on a GAAP basis.
"We were pleased to deliver earnings per share and cash flow that are
significantly improved from last year and within the range of our previous
guidance," said Gregory L. Summe, chairman and CEO of the Company. "The
integration of our Life and Analytical Sciences unit is progressing well and our
plans are on track to meet or exceed our targeted cost reductions," added Summe.
Revenue from continuing operations in the first quarter of 2003 was $358.4
million, up 4% from the same period of 2002. The comparative increase was driven
by 20% growth in Optoelectronics and 11% growth in Analytical Instruments,
offset by revenue declines in Life Sciences and Fluid Sciences.
-more-
The Company generated operating cash flow of $24.1 million in the first quarter
of 2003, compared to a use of cash of ($31.1) million in the same period of
2002. During the 2003 quarter, the Company reduced working capital by $24.0
million, which includes an $11.0 million increase in an accounts receivable
securitization program. During the first quarter of 2003, the Company paid down
$15.0 million of debt, and cash and equivalents were $129.8 million at the end
of the quarter.
Including the impact of discontinued operations, net earnings on a GAAP basis
for the first quarter of 2003 were $.02 per share compared to a loss per share
of ($1.18) for the same period of 2002. The net loss for the first quarter of
2002 included a ($.07) per share loss from discontinued operations and a ($.94)
loss per share resulting from the effect of an accounting change.
For the first quarter of 2002, the Company's GAAP results from continuing
operations were a loss of ($.17) per share on revenue of $346.3 million. The
first quarter of 2002 results included $26.0 million of net charges comprised of
restructuring charges, gain on sale, an inventory write-down and acquisition
related charges, as well as intangibles amortization of $7.1 million. The
aggregate effect of these items for the first quarter of 2002 was approximately
$.19 per share.
Financial overview by reporting segment:
LIFE SCIENCES reported revenue of $103.9 million for the first quarter of 2003,
down 11% compared to revenue of $116.8 million for the first quarter of 2002.
Strong revenue growth in genetic screening during the quarter and overall
segment growth in reagents, consumables and service were offset by lower
instruments sales compared to the 2002 quarter. Instruments sales during the
2003 quarter continued to be impacted by pressure on capital spending within
most end markets, particularly large pharmaceutical company markets. The
segment's GAAP operating loss for the first quarter of 2003 was $.4 million
versus a $1.0 million operating loss in the same period of 2002. The results for
the first quarter of 2003 include intangibles amortization of $5.3 million. The
operating loss for the first quarter of 2002 included $8.7 million of
restructuring and acquisition-related charges, as well as intangibles
amortization of $5.5 million.
ANALYTICAL INSTRUMENTS reported revenue of $128.3 million for the first quarter
of 2003, representing an 11% increase compared to revenue of $115.5 million for
the comparable quarter of 2002. The Company experienced good growth in each
of its major end markets, with particular strength in environmental
applications and pharmaceutical QA/QC. The segment's GAAP operating profit for
the first quarter of 2003 was $12.0 million, compared to operating profit of
$8.8 million for the same period of 2002. The results for the first quarter of
2003 include intangibles amortization of $1.1 million. The first quarter of 2002
results include $3.7 million of gains, net of restructuring, as well as
intangibles amortization of $1.1 million.
OPTOELECTRONICS reported revenue of $83.3 million for the first quarter of 2003,
an increase of 20% from revenue of $69.3 million for the first quarter of 2002.
Strong double-digit growth in revenues of digital imaging and lighting products
drove the increase during the quarter. The segment's GAAP operating profit was
$8.7 million during the first quarter of 2003 versus an operating loss of $22.6
million for the comparable period of 2002. The operating profit for the first
quarter of 2003 included intangibles amortization of $.3 million. The operating
loss for the first quarter of 2002 included $21.0 million of aggregate charges
from restructuring and an inventory write-down, and intangibles amortization of
$.3 million.
-more-
FLUID SCIENCES reported revenue of $42.9 million for the first quarter of 2003,
representing a decline of 4% compared to revenue of $44.6 million for the first
quarter in 2002. Both the aerospace and semiconductor end markets were depressed
during the quarter. The segment's GAAP operating profit for the first quarter of
2003 was $2.4 million versus $3.4 million in the first quarter of 2002. Included
in the results for the first quarter of 2003 was intangibles amortization of $.4
million. The first quarter of 2002 results included intangibles amortization of
$.2 million.
"We anticipate that global markets, particularly in capital spending, will
remain challenging throughout the year. Consequently, we are staying focused
on our strategy of reducing costs, accelerating new products, and driving cash
flow," added Summe.
The Company will discuss its first quarter results in a conference call on
Thursday, April 24, 2003 at 10:00 a.m. Eastern Time (ET). To listen to the call
live, please tune into the webcast at the Investor Relations section of our
website, www.perkinelmer.com. A playback of this conference call will be
available beginning at 1:00 p.m. ET, Thursday, April 24, 2003. The playback will
be available at the Investor Relations section of our website,
www.perkinelmer.com, or by telephone at (719) 457-0820, code number 442887.
FACTORS AFFECTING FUTURE PERFORMANCE
This press release contains "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Any statements contained
in this press release that relate to prospective events or developments are
deemed to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "projects," "forecasts," "will" and similar
expressions are intended to identify forward-looking statements. There are a
number of important factors that could cause actual results or events to differ
materially from those indicated by these forward-looking statements, including
risks related to our debt levels, our ability to comply with the financial
covenants contained in our credit agreements, a further downturn in our
customers' markets, our failure to introduce new products in a timely manner,
regulatory changes, risks related to our international operations, our inability
to integrate acquired businesses into our existing business and to successfully
combine our Life and Analytical Sciences businesses and competition, as well as
other factors which we describe under the caption "Forward-Looking Information
and Factors Affecting Future Performance" in our most recently filed annual
report on Form 10-K. 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.
-more-
PerkinElmer, Inc. is a global technology leader focused in the following
businesses - Life and Analytical Sciences, Optoelectronics and Fluid Sciences.
Combining operational excellence and technology expertise with an intimate
understanding of our customers' needs, PerkinElmer provides products and
services in health sciences and other advanced technology markets that require
innovation, precision and reliability. The Company serves customers in more than
125 countries, and is a component of the S&P 500 Index. Additional information
is available through www.perkinelmer.com or 1-877-PKI-NYSE.
# # #
For further information:
Investor Contact: Media Contact:
Dan Sutherby Jim Monahan
PerkinElmer, Inc. PerkinElmer, Inc.
(781) 431-4306 (781) 431-4111
PERKINELMER, INC. AND SUBSIDIARIES
GAAP INCOME STATEMENTS
THREE MONTHS ENDED
-------------------------
(In thousands except per share data) 31-Mar-02 30-Mar-03
----------------------------------- --------- ---------
SALES $ 358,449 $ 346,293
Cost of Sales 219,280 220,563
Research and Development Expenses 20,852 21,807
Selling, General and Administrative Expenses 92,434 107,720
Restructuring Charges, net -- 9,224
Gains on Dispositions, net (580) (5,216)
Amortization of Intangible Assets 7,195 7,092
--------- ---------
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS 19,268 (14,897)
Other Expense, Net 14,347 13,628
--------- ---------
Income (Loss) From Continuing Operations Before Income Taxes 4,921 (28,525)
Provision (Benefit) for Income Taxes 1,599 (7,866)
--------- ---------
NET INCOME (LOSS) FROM CONTINUING OPERATIONS 3,322 (20,659)
Loss From Discontinued Operations, Net of Income Tax (960) (8,901)
--------- ---------
NET INCOME (LOSS) BEFORE EFFECT OF ACCOUNTING CHANGE 2,362 (29,560)
Effect of Accounting Change, Net of Income Tax -- (117,800)
--------- ---------
NET INCOME (LOSS) $ 2,362 $(147,360)
========= =========
Diluted Earnings (Loss) Per Share:
CONTINUING OPERATIONS $ 0.03 $ (0.17)
Loss From Discontinued Operations, Net of Income Tax (0.01) (0.07)
--------- ---------
NET INCOME (LOSS) BEFORE EFFECT OF ACCOUNTING CHANGE 0.02 (0.24)
Effect of Accounting Change, Net of Income Tax -- (0.94)
--------- ---------
NET INCOME (LOSS) $ 0.02 $ (1.18)
========= =========
Weighted Average Diluted Shares of Common Stock Outstanding 126,375 124,864
PERKINELMER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED
-------------------------------
MARCH 30, 2003 MARCH 31, 2002
-------------- --------------
(IN THOUSANDS)
Operating Activities:
Net income (loss) $ 2,362 $(147,360)
Add net loss from discontinued operations, net 960 8,901
Add effect of accounting change, net of income taxes -- 117,800
--------- ---------
Net income (loss) from continuing operations 3,322 (20,659)
Adjustments to reconcile net income (loss) from continuing operations
to net cash provided by (used in) continuing operations:
Stock-based compensation 700 1,203
Amortization of debt discount and issuance costs 2,354 5,216
Depreciation and amortization 18,801 19,192
Gains on dispositions and sales of investments, net (580) (5,109)
Changes in operating assets and liabilities:
Accounts receivable 37,342 17,527
Inventories 1,406 14,764
Accounts payable (14,710) 1,187
Restructuring (4,557) (23,047)
Accrued expenses and other (21,173) (44,401)
--------- ---------
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS 22,905 (34,127)
Net Cash Provided by Discontinued Operations 1,164 3,039
--------- ---------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 24,069 (31,088)
--------- ---------
INVESTING ACTIVITIES:
Cash withdrawn from escrow to repay debt 32,509 --
Capital expenditures (3,461) (16,525)
Proceeds from dispositions of property, plant and equipment -- 19,455
Settlement of disposition of businesses, net (575) (2,397)
Proceeds (costs) associated with acquisitions, net 2,126 (17,480)
Proceeds from sale of investments, net -- 1,709
--------- ---------
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS 30,599 (15,238)
Net Cash Used in Discontinued Operations -- (3,570)
--------- ---------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 30,599 (18,808)
--------- ---------
FINANCING ACTIVITIES:
Payment of debt issuance costs (1,356) --
Prepayment of zero coupon convertible notes (32,509) --
Payment of term loan debt (15,000) --
Prepayment of short-term debt -- (123,683)
Increase in commercial paper borrowings -- 219,000
Increase (decrease) in other credit facilities 211 (4,996)
Proceeds from issuance of common stock -- 6,674
Purchases of common stock -- (5,804)
Cash dividends (8,833) (8,793)
--------- ---------
NET CASH (USED IN) PROVIDED BY CONTINUING OPERATIONS (57,487) 82,398
Net Cash Provided by (Used in) Discontinued Operations -- --
--------- ---------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (57,487) 82,398
--------- ---------
Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,981 (311)
Net (Decrease) Increase in Cash and Cash Equivalents (838) 32,191
Cash and Cash Equivalents at Beginning of Period 130,615 138,250
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 129,777 $ 170,441
========= =========
PERKINELMER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 30, 2003 DECEMBER 29, 2002
-------------- -----------------
(In thousands)
Current assets:
Cash and cash equivalents $ 129,777 $ 130,615
Restricted cash 154,463 186,483
Accounts receivable 272,070 304,647
Inventories 205,543 205,455
Other current assets 154,432 152,137
Current assets of discontinued operations 12,030 12,006
----------- -----------
Total Current Assets 928,315 991,343
Property, plant and equipment:
At cost 606,406 598,048
Accumulated depreciation (308,100) (294,026)
----------- -----------
Net property, plant and equipment 298,306 304,022
Investments 12,999 14,298
Intangible assets 1,435,466 1,439,774
Other assets 74,125 83,835
Long-term assets of discontinued operations 3,523 2,967
----------- -----------
Total assets $ 2,752,734 $ 2,836,239
=========== ===========
Current liabilities:
Short-term debt $ 161,066 $ 191,491
Accounts payable 132,683 146,290
Accrued restructuring costs 36,057 40,748
Accrued expenses 296,522 316,427
Current liabilities of discontinued operations 1,165 2,718
----------- -----------
Total current liabilities 627,493 697,674
Long-term debt 599,272 614,053
Long-term liabilities 265,342 270,031
Long-term liabilities of discontinued operations 2,068 2,137
----------- -----------
Total liabilities 1,494,175 1,583,895
Commitment and contingencies
Total stockholders' equity 1,258,559 1,252,344
----------- -----------
Total liabilities and stockholders' equity $ 2,752,734 $ 2,836,239
=========== ===========