Exhibit 99.1
FOR IMMEDIATE RELEASE
- ----------------------
23 July 2003
PERKINELMER ANNOUNCES Q2 2003 RESULTS
- GAAP EPS FROM CONTINUING OPERATIONS OF $.08 PER SHARE
- OPERATING MARGIN EXPANSION OF 350 BASIS POINTS
- $37M OPERATING CASH FLOW IN Q2 03; $61M YEAR-TO-DATE
BOSTON - PerkinElmer, Inc. (NYSE: PKI) today announced second quarter 2003 GAAP
earnings per share from continuing operations of $.08 on revenue of $377.1
million, compared to GAAP earnings per share from continuing operations of $.05
and revenue of $383.1 million in the second quarter of 2002. The second quarter
of 2003 results reflect intangibles amortization of $7.0 million, or
approximately $.04 per share. Second quarter 2003 results also include a benefit
of $.01 per share from restructuring credits. Second quarter 2003 earnings are
at the upper end of the Company's previous estimate for the quarter of $.05 to
$.08 per share on a GAAP basis.
Revenue from continuing operations in the second quarter of 2003 was $377.1
million, down 2% from the same period of 2002. Growth of 8% in Optoelectronics
revenue during the second quarter of 2003 was offset by a revenue decline of 3%
in Life and Analytical Sciences and a decline in Fluid Sciences revenue of 12%
from the 2002 quarter.
GAAP operating margins during the second quarter of 2003 expanded 350 basis
points to 8% from 4.5% for the same period of 2002. Selling, general and
administrative expenses for the second quarter of 2003 were reduced by $15.4
million from the 2002 quarter, reflecting the benefits from the Life and
Analytical Sciences integration and other productivity actions.
The Company generated operating cash flow of $36.8 million in the second quarter
of 2003, an improvement of $25.2 million over the same period in 2002. For the
first six months of 2003, operating cash flow was $60.9 million. During the
second quarter of 2003, the Company reduced working capital by $34.3 million
through improved accounts receivable collections and inventory management. Total
cash and equivalents were $299.5 million at the end of the second quarter and
included $154.9 million held in escrow to retire the Company's remaining zero
coupon convertible debentures, which the Company has called for redemption on
August 7, 2003. At the end of the second quarter of 2003, the Company's debt,
net of cash and equivalents, was reduced by $29.5 million.
"We were pleased with our progress in driving cash flow and profitability
growth. The integration of our Life and Analytical Sciences unit is ahead of
schedule and will result in a stronger business, better positioned to serve our
global customers. Also, we continue to make progress on new product
introductions and building our service business," said Gregory L. Summe,
Chairman and CEO of the Company.
During the second quarter of 2003, the Company divested its entertainment
lighting business which had been previously reported as discontinued operations.
This transaction resulted in a loss on sale of ($1.7) million, or ($.01) per
share net of tax, which was reported as a loss from the disposition of
discontinued operations for the second quarter of 2003. Net earnings on a GAAP
basis for the second quarter of 2003 were $.07 per share comprised of $.08
earnings per share from continuing operations and a loss of ($.01) per share
from the disposition of discontinued operations. The Company reported a net loss
for the second quarter of 2002 of ($.07) per share which was comprised of $.05
earnings per share from continuing operations, a ($.03) per share loss from
discontinued operations and a ($.09) loss per share from the disposition of
discontinued operations.
Financial overview by reporting segment:
Beginning this quarter, the Company has presented financial information related
to its Life Sciences and Analytical Instruments segments on a combined basis as
Life and Analytical Sciences. This is pursuant to the Company's plans, announced
in the fourth quarter of 2002, to integrate the two businesses, and reflects the
current structure of the Company.
LIFE AND ANALYTICAL SCIENCES reported revenue of $246.0 million for the second
quarter of 2003, down 3% compared to revenue of $252.9 million for the second
quarter of 2002. During the second quarter of 2003, the Company reported revenue
growth in reagents, consumables and service which was more than offset by lower
instruments sales compared to the second quarter of 2002. By market segment, the
Company experienced growth in revenue during the second quarter of 2003 in its
genetic screening and environmental and chemical businesses, while sales into
the biopharma markets were down year over year. The segment's GAAP operating
profit for the second quarter of 2003 was $20.7 million versus $12.9 million in
the same period of 2002. As a percentage of sales, operating profit for the
second quarter of 2003 and 2002 was 8.4% and 5.1%, respectively. The results for
each of the second quarters of 2003 and 2002 include intangibles amortization of
$6.5 million.
OPTOELECTRONICS reported revenue of $89.4 million for the second quarter of
2003, an increase of 8% from revenue of $82.8 million for the second quarter of
2002. Growth across most major product lines drove the increase in revenues
during the quarter, due to new product introductions and continued end market
growth. The segment's GAAP operating profit was $11.1 million for the second
quarter of 2003 versus an operating profit of $4.8 million for the comparable
period in 2002. As a percentage of sales, operating profit for the second
quarter of 2003 and 2002 was 12.4% and 5.8%, respectively.
FLUID SCIENCES reported revenue of $41.7 million for the second quarter of 2003,
representing a decline of 12% compared to revenue of $47.4 million for the
second quarter of 2002. The decline in revenue was largely attributable to
continued softness in
the aerospace and semiconductor end markets. The segment's GAAP operating profit
for the second quarter of 2003 was $3.1 million versus $3.9 million in the
second quarter of 2002.
-more-
"We are seeing good market acceptance for our new products, and are beginning to
see positive trends in certain end markets," added Summe. "With good progress in
cost productivity, we believe we should be able to deliver full year 2003 GAAP
earnings per share of $.37 to $.43, which includes $.15 of intangibles
amortization," concluded Summe.
The Company will discuss its second quarter results in a conference call on
Wednesday July 23, 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 1:00 p.m. ET, Wednesday, July 23, 2003. The playback phone
number is (719) 457-0820 and the code number is 621243.
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,
including, without limitation, statements regarding our estimate for 2003
results of operations, 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 and in our
most recently filed quarterly report on Form 10-Q. 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:
Dan Sutherby
PerkinElmer, Inc.
(781) 431-4306
PERKINELMER, INC. AND SUBSIDIARIES
INCOME STATEMENTS
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
(In thousands except per share data) 29-Jun-03 30-Jun-02 29-Jun-03 30-Jun-02
- -------------------------------------- --------- --------- --------- ---------
SALES $ 377,124 $ 383,096 $ 735,573 $ 729,389
Cost of Sales 224,540 223,198 443,820 443,761
Research and Development Expenses 21,877 22,603 42,729 44,410
Selling, General and Administrative Expenses 97,477 112,829 190,356 220,549
Restructuring (Reversals) Charges, net (2,728) -- (3,173) 9,224
Gains on Dispositions, net (1,108) -- (1,688) (5,216)
Amortization of Intangible Assets 7,043 7,057 14,238 14,149
--------- --------- --------- ---------
OPERATING INCOME FROM CONTINUING OPERATIONS 30,023 17,409 49,291 2,512
Interest and Other Expense, Net 14,160 8,422 28,507 22,050
--------- --------- --------- ---------
Income (Loss) From Continuing Operations Before Income Taxes 15,863 8,987 20,784 (19,538)
Provision (Benefit) for Income Taxes 5,155 2,912 6,754 (4,954)
--------- --------- --------- ---------
NET INCOME (LOSS) FROM CONTINUING OPERATIONS 10,708 6,075 14,030 (14,584)
Loss From Discontinued Operations, Net of Income Tax (617) (4,205) (1,597) (13,106)
Loss on Disposition of Discontinued Operations, Net of Income Tax (1,693) (10,966) (1,673) (10,966)
--------- --------- --------- ---------
NET INCOME (LOSS) BEFORE EFFECT OF ACCOUNTING CHANGE 8,398 (9,096) 10,760 (38,656)
Effect of Accounting Change, Net of Income Tax -- -- -- (117,800)
--------- --------- --------- ---------
NET INCOME (LOSS) $ 8,398 $ (9,096) $ 10,760 $(156,456)
========= ========= ========= =========
Diluted Earnings (Loss) Per Share:
CONTINUING OPERATIONS $ 0.08 $ 0.05 $ 0.11 $ (0.12)
Loss From Discontinued Operations, Net of Income Tax -- (0.03) (0.01) (0.10)
Loss on Disposition of Discontinued Operations, Net of Income Tax (0.01) (0.09) (0.01) (0.09)
--------- --------- --------- ---------
NET INCOME (LOSS) BEFORE EFFECT OF ACCOUNTING CHANGE 0.07 (0.07) 0.08 (0.31)
Effect of Accounting Change, Net of Income Tax -- -- -- (0.94)
--------- --------- --------- ---------
NET INCOME (LOSS) $ 0.07 $ (0.07) $ 0.08 $ (1.25)
========= ========= ========= =========
Weighted Average Diluted Shares of Common Stock Outstanding 126,898 125,556 126,636 124,883
PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
JUNE 29, 2003 JUNE 30, 2002 JUNE 29, 2003 JUNE 30, 2002
------------- ------------- ------------- -------------
(IN THOUSANDS) (IN THOUSANDS)
OPERATING ACTIVITIES:
Net income (loss) 8,398 $ (9,096) $ 10,760 $(156,456)
Add loss from discontinued operations, net 2,310 15,171 3,270 24,072
Less effect of accounting change, net of income taxes -- -- -- 117,800
--------- --------- --------- ---------
Net income (loss) from continuing operations 10,708 6,075 14,030 (14,584)
--------- --------- --------- ---------
Adjustments to reconcile net income (loss) from continuing
operations to net cash provided by (used in)
continuing operations:
Restructuring credits, net of expense (2,728) -- (3,173) --
Stock based Compensation 700 (716) 1,400 487
Amortization of debt discount and issuance costs 3,825 5,239 6,179 10,455
Depreciation and amortization 19,743 18,677 38,544 37,869
Gains on dispositions and sales of investments, net (1,108) (107) (1,688) (5,216)
Changes in operating assets and liabilities:
Accounts receivable 14,232 9,320 51,574 26,847
Inventories 14,556 11,593 15,962 26,357
Accounts payable 5,514 (1,479) (9,196) (292)
Accrued restructuring costs (7,071) (4,005) (11,183) (27,052)
Accrued expenses and other (21,869) (26,908) (43,042) (71,309)
--------- --------- --------- ---------
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS 36,502 17,689 59,407 (16,438)
--------- --------- --------- ---------
Net Cash Provided by (Used in) Discontinued Operations 340 (6,084) 1,504 (3,045)
--------- --------- --------- ---------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 36,842 11,605 60,911 (19,483)
--------- --------- --------- ---------
INVESTING ACTIVITIES:
Cash held in escrow -- -- 32,509 --
Capital Expenditures (4,818) (9,737) (8,279) (26,262)
Proceeds from Disposition of businesses, PP&E, net 3,295 8,603 3,295 28,058
Settlement of the disposition of business, net (291) 93,291 (866) 90,894
Proceeds (cost) related to acquisitions, net of
cash acquired (1,592) (18,828) 534 (36,308)
Proceeds from sale of investments, net -- 675 -- 2,384
--------- --------- --------- ---------
NET CASH (USED IN) PROVIDED BY CONTINUING OPERATIONS (3,406) 74,004 27,193 58,766
--------- --------- --------- ---------
Net Cash Provided by (Used in) Discontinued Operations 250 (1,624) 250 (5,194)
--------- --------- --------- ---------
NET CASH (USED IN) PROVIDED IN INVESTING ACTIVITIES (3,156) 72,380 27,443 53,572
--------- --------- --------- ---------
FINANCING ACTIVITIES:
Payment of debt issuance costs (369) -- (1,725) --
Prepayment of short-term debt -- -- -- (123,683)
Prepayment of Zero Coupon Convertible Notes -- -- (32,509) --
Prepayment of term loan debt (15,000) -- (30,000) --
Decrease in commercial paper borrowings -- (219,000) -- --
(Decrease) increase in other credit facilities (1,237) 97,198 (1,026) 92,202
Purchases of common stock -- (121) -- (5,925)
Proceeds from issuance of common stock for employee
benefit plans 617 6,341 617 13,015
Cash Dividends (8,827) (8,801) (17,660) (17,594)
--------- --------- --------- ---------
NET CASH USED IN FINANCING ACTIVITIES (24,816) (124,383) (82,303) (41,985)
--------- --------- --------- ---------
Effect of Exchange Rate Changes on Cash and Cash Equivalents 5,976 13,300 7,957 12,989
--------- --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 14,846 (27,098) 14,008 5,093
Cash and Cash Equivalents at Beginning of Period 129,777 170,441 130,615 138,250
--------- --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 144,623 $ 143,343 $ 144,623 $ 143,343
========= ========= ========= =========
PREPARED IN ACCORDANCE WITH GAAP
PERKINELMER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 29, 2003 MARCH 30, 2003 DECEMBER 29, 2002
------------- -------------- -----------------
(In thousands)
Current assets:
Cash and cash equivalents $ 144,623 $ 129,777 $ 130,615
Restricted cash (note 1) 154,865 154,463 186,483
Accounts receivable 269,820 272,070 304,647
Inventories 197,186 205,543 205,455
Other current assets 157,802 154,432 152,137
Current assets of discontinued operations 11,790 12,030 12,006
----------- ----------- -----------
Total Current Assets 936,086 928,315 991,343
Property, plant and equipment:
At cost 618,935 606,406 598,048
Accumulated depreciation (327,216) (308,100) (294,026)
----------- ----------- -----------
Net property, plant and equipment 291,719 298,306 304,022
Investments 11,927 12,999 14,298
Intangible assets 1,452,801 1,435,466 1,439,774
Other assets 80,452 74,125 83,835
Long-term assets of discontinued operations 2,158 3,523 2,967
----------- ----------- -----------
Total assets $ 2,775,143 $ 2,752,734 $ 2,836,239
=========== =========== ===========
Current liabilities:
Short-term debt $ 4,791 $ 5,628 $ 5,008
Convertible debt (note 1) 156,813 155,438 186,483
Accounts payable 131,018 132,683 146,290
Accrued restructuring costs 25,046 36,057 40,748
Accrued expenses 303,069 296,522 316,427
Current liabilities of discontinued operations 539 1,165 2,718
----------- ----------- -----------
Total current liabilities 621,276 627,493 697,674
Long-term debt 584,483 599,272 614,053
Long-term liabilities 273,739 265,342 270,031
Long-term liabilities of discontinued operations 2,166 2,068 2,137
----------- ----------- -----------
Total liabilities 1,481,664 1,494,175 1,583,895
Commitment and contingencies
Total stockholders' equity 1,293,479 1,258,559 1,252,344
----------- ----------- -----------
Total liabilities and stockholders' equity $ 2,775,143 $ 2,752,734 $ 2,836,239
=========== =========== ===========
Note 1: Convertible debt has been called and will be repaid with restricted cash
on August 7, 2003
PREPARED IN ACCORDANCE WITH GAAP
PERKINELMER, INC. AND SUBSIDIARIES
SALES AND OPERATING PROFIT (LOSS)
THREE MONTHS SIX MONTHS
------------ ----------
(In thousands) JUNE 29, 2003 JUNE 30, 2002 JUNE 29, 2003 JUNE 30, 2002
- -------------- ------------- ------------- ------------- -------------
LIFE AND ANALYTICAL SCIENCES Sales $ 246,032 $ 252,897 $ 478,232 $ 485,207
OP$ reported 20,677 12,928 32,299 20,709
OP% reported 8.4% 5.1% 6.8% 4.3%
OPTOELECTRONICS Sales 89,391 82,774 172,693 $ 152,123
OP$ reported 11,088 4,782 19,792 (17,818)
OP% reported 12.4% 5.8% 11.5% -11.7%
FLUID SCIENCES Sales 41,701 47,425 84,648 $ 92,059
OP$ reported 3,133 3,858 5,513 7,269
OP% reported 7.5% 8.1% 6.5% 7.9%
OTHER OP$ reported (4,875) (4,159) (8,313) $ (7,648)
CONTINUING OPERATIONS Sales $ 377,124 $ 383,096 $ 735,573 $ 729,389
========= ========= ========= =========
OP$ reported 30,023 17,409 49,291 $ 2,512
========= ========= ========= =========
OP% reported 8.0% 4.5% 6.7% 0.3%
SUPPLEMENTAL INFORMATION: Amortization included in above results
LIFE AND ANALYTICAL SCIENCES $ 6,511 $ 6,477 $ 12,974 $ 13,031
OPTOELECTRONICS 312 380 624 718
FLUID SCIENCES 220 200 640 400
--------- --------- --------- ---------
CONTINUING OPERATIONS $ 7,043 $ 7,057 $ 14,238 $ 14,149
========= ========= ========= =========
PREPARED IN ACCORDANCE WITH GAAP