Exhibit 99.1
PRESS RELEASE DATED APRIL 22, 2004
[PERKIM ELMER LOGO] PERKINELMER, INC.
45 William Street
Wellesley, MA 02481-4078 USA
Phone: 781-431-4306
Fax: 781-431-4255
www.perkinelmer.com
FOR IMMEDIATE RELEASE
22 April 2004
PERKINELMER ANNOUNCES Q1 2004 RESULTS
- - 10% REVENUE GROWTH
- - GAAP EPS OF $.10; THREEFOLD INCREASE OVER Q1 03
BOSTON - PerkinElmer, Inc. (NYSE: PKI), a global leader in health sciences and
other advanced technology markets, today announced GAAP earnings per share of
$.10 from continuing operations on revenue of $393.5 million for the first
quarter ended March 28, 2004. The first quarter 2004 results include intangibles
amortization of $7.1 million, or approximately $.04 per share. The Company
reported earnings per share from continuing operations excluding intangibles
amortization of $.14, which exceeded by $.01 the Thomson First Call(TM)
consensus earnings per share estimate for the first quarter of 2004, and was at
the high end of the Company's forecasted range for the quarter. Total GAAP net
income for the first quarter of 2004 was $13.3 million, compared to $2.4 million
for the first quarter of 2003.
Revenue in the first quarter of 2004 was $393.5 million, an increase of 10% from
the first quarter of 2003, driven by revenue growth in all segments. The
comparative increase in revenue by segment was comprised of growth of 7% in Life
and Analytical Sciences, 4% in Optoelectronics, and 34% in Fluid Sciences.
Foreign exchange rate fluctuations increased total reported revenue by
approximately 5% in the first quarter of 2004.
GAAP operating margin during the first quarter of 2004 increased to 7.0%, up 160
basis points from 5.4% for the first quarter of 2003. First quarter 2004
operating margin excluding intangibles amortization was 8.8% compared to 7.4%
for the first quarter of 2003, driven by higher revenue, cost productivity and
quality improvements. The first quarter 2004 operating profit included a $1.2
million pre-tax charge related to the impairment of a non-strategic product line
in Optoelectronics, that the Company will close later in 2004.
The Company generated operating cash flow of $26.6 million in the first quarter
of 2004. Free cash flow, defined as operating cash flow of $26.6 million less
capital expenditures of $3.3 million, was $23.3 million for the first quarter of
2004. During the first quarter of 2004, the Company reduced long-term debt by
$45.0 million. Total debt at the end of the first quarter of 2004 was $504.3
million, down by approximately $256.0 million compared to the first quarter of
2003. Total debt net of cash and cash equivalents of $165.5 million was $338.9
million at the end of the first quarter of 2004, representing a decrease of
$137.2 million from the end of the first quarter of 2003.
"We were pleased to deliver revenue growth across all three businesses,
significant operating margin expansion and excellent cash flow in our first
quarter of 2004," said Gregory L. Summe, Chairman and CEO of the Company. "With
our improved cost structure and strengthened balance sheet, we are increasing
our focus on driving revenue growth," added Summe.
Financial overview by reporting segment:
LIFE AND ANALYTICAL SCIENCES reported revenue of $249.2 million for the first
quarter of 2004, up 7% from $232.2 million in the first quarter of 2003. This
was generated by revenue growth in all businesses: BioPharma, Genetic Screening,
Environmental and Chemical, and the Company's OneSource (TM) service business.
By product category, instruments revenue was up 8%, reagents and consumables
revenue increased 5%, and service revenue increased 10% during the first quarter
of 2004 compared to the first quarter of 2003.
The segment's GAAP operating profit for the first quarter of 2004 was $16.0
million versus $11.6 million for the same period of 2003. As a percentage of
sales, operating profit for the first quarter of 2004 increased to 6.4% compared
to 5.0% for the first quarter of 2003. The operating profit for the first
quarters of 2004 and 2003 included intangibles amortization of $6.6 million and
$6.5 million, respectively.
OPTOELECTRONICS reported revenue of $86.7 million for the first quarter of 2004,
an increase of 4% from revenue of $83.3 million in the first quarter of 2003.
Revenue growth in our medical and biotech imaging business, and growth in
specialty lighting revenue was partially offset by softness in certain sensors
end markets during the quarter compared to the first quarter of 2003.
The segment's GAAP operating profit was $9.4 million for the first quarter of
2004 versus an operating profit of $8.7 million for the comparable period of
2003. As a percentage of sales, operating profit for the first quarter of 2004
and 2003 was 10.9% and 10.4%, respectively. The operating profit for each of the
first quarters of 2004 and 2003 included intangibles amortization of $.3
million.
FLUID SCIENCES reported revenue of $57.5 million for the first quarter of 2004,
up 34% from revenue of $42.9 million in the first quarter of 2003. Strong growth
in semiconductor and aerospace revenue drove the increase during the quarter
compared to the same period of 2003.
The segment's GAAP operating profit for the first quarter of 2004 was $8.3
million, versus $2.4 million in the first quarter of 2003. As a percentage of
sales, operating profit for the first quarter of 2004 and 2003 was 14.5% and
5.5%, respectively. The operating profit for the first quarter of 2004 and 2003
included intangibles amortization of $.2 million and $.4 million, respectively.
"During the quarter we saw continued gradual strengthening in our end markets,"
continued Summe. "We remain focused on our customer excellence initiatives and
acceleration of new product introductions to drive revenue growth, while
delivering our financial commitments," added Summe.
For the second quarter of 2004, the Company projects EPS from continuing
operations between $.14 and $.17 on a GAAP basis, including the negative impact
of intangibles amortization of $.04 per share. Excluding the impact of
intangibles amortization, the Company projects EPS from continuing operations
between $.18 and $.21 for the second quarter of 2004.
The Company will discuss its first quarter results in a conference call on
Friday, April 23, 2004 at 10:00 a.m. Eastern Time (ET). To listen to the call
live, please tune into the webcast at the "Investor Corner" section of our
website, www.perkinelmer.com. A playback of this conference call will be
available beginning 1:00 p.m. ET, Friday, April 23, 2004. The playback phone
number is (719) 457-0820 and the code number is 342913.
USE OF NON-GAAP FINANCIAL MEASURES
In addition to financial measures prepared in accordance with generally accepted
accounting principles (GAAP), this press release also contains non-GAAP
financial measures of earnings per share and operating margin, in each case
excluding amortization of acquisition-related intangible assets. We exclude the
amortization of acquisition-related intangibles in calculating these non-GAAP
measures because such amortization is outside of our normal operations. We
believe that the inclusion of these non-GAAP financial measures in this press
release helps investors to gain a meaningful understanding of our core operating
results and future prospects, consistent with how management measures and
forecasts the company's performance, especially when comparing such results to
previous periods or forecasts. PerkinElmer's management uses these non-GAAP
measures, in addition to GAAP financial measures, as the basis for measuring the
company's core operating performance and comparing such performance to that of
prior periods and to the performance of our competitors. Such measures are also
used by management in their financial and operating decision-making.
This press release also contains a non-GAAP measure of free cash flow. We define
free cash flow as our net cash provided by operating activities minus our
capital expenditures. We use free cash flow, and ratios based on this measure,
to conduct and evaluate our business and, specifically, to determine incentive
compensation, to allocate resources to debt repayment and for cash investing and
financing activities. Therefore, we believe that these measures may be similarly
useful and informative to investors.
The non-GAAP financial measures included in this press release are not meant to
be considered superior to or a substitute for results of operations prepared in
accordance with GAAP. In addition, the non-GAAP financial measures included in
this press release may be different from, and therefore may not be comparable
to, similar measures used by other companies. Reconciliations of the non-GAAP
financial measures used in this press release to the most directly comparable
GAAP financial measures are set forth in the text of, and the accompanying
exhibits, to this press release.
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 risk factors that could cause actual results or events to
differ materially from those indicated by these forward-looking statements,
including risks related to cyclical downturns affecting several of the
industries into which we sell our products, our failure to introduce new
products in a timely manner, the impact of our debt on our cash flow and
investment opportunities, our ability to comply with financial covenants
contained in our credit agreements and debt instruments, risks related to our
international operations, our ability to adjust our operations to address
unexpected changes, our ability to execute acquisitions and license technologies
and successfully integrate acquired businesses and licensed technologies into
our existing business, the loss of any of our licenses that may require us to
stop selling products or lose competitive advantage, competition, regulatory
changes, our failure to obtain and enforce intellectual property protection, our
defense of third party claims of patent infringement and our ability to realize
the full value of our intangible assets, 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.
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
------------------------
(In thousands, except share and per share data) 28-Mar-04 30-Mar-03
- ------------------------------------------------- --------- ---------
SALES $ 393,451 $ 358,449
Cost of Sales 241,513 219,280
Research and Development Expenses 20,628 20,852
Selling, General and Administrative Expenses 95,870 92,879
Restructuring Reversals, net -- (445)
Gains on Dispositions, net (363) (580)
Impairment 1,160 --
Amortization of Intangible Assets 7,106 7,195
--------- ---------
OPERATING INCOME FROM CONTINUING OPERATIONS 27,537 19,268
Extinguishment of Debt 1,166 --
Interest Income (485) (1,017)
Interest Expense 9,775 14,265
Other (Income) Expense, Net (915) 1,099
--------- ---------
Income From Continuing Operations Before Income Taxes 17,996 4,921
Provision for Income Taxes 5,219 1,599
--------- ---------
NET INCOME FROM CONTINUING OPERATIONS 12,777 3,322
Loss From Discontinued Operations, Net of Income Tax -- (980)
Gain on Disposition of Discontinued Operations, Net of Income Tax 494 20
--------- ---------
NET INCOME $ 13,271 $ 2,362
========= =========
Diluted Earnings (Loss) Per Share:
CONTINUING OPERATIONS $ 0.10 $ 0.03
Loss From Discontinued Operations, Net of Income Tax -- (0.01)
Gain on Disposition of Discontinued Operations, Net of Income Tax -- --
--------- ---------
NET INCOME $ 0.10 $ 0.02
========= =========
Weighted Average Diluted Shares of Common Stock Outstanding 128,933 126,375
PREPARED IN ACCORDANCE WITH GAAP
ADDITIONAL SUPPLEMENTAL INFORMATION AND RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(per share, continuing operations)
GAAP Diluted EPS from Continuing Operations $ 0.10 $ 0.03
Amortization of Intangible Assets, Net of Income Tax 0.04 0.04
--------- ---------
EPS excluding Amortization of Intangible Assets $ 0.14 $ 0.06
========= =========
Thomson First Call(TM) EPS $ 0.13
=========
PERKINELMER, INC. AND SUBSIDIARIES
SALES AND OPERATING PROFIT (LOSS)
THREE MONTHS ENDED
--------------------------------
(In thousands) MARCH 28, 2004 MARCH 30, 2003
- -------------- -------------- --------------
LIFE AND ANALYTICAL SCIENCES Sales $ 249,247 $ 232,200
OP$ reported 15,983 11,622
OP% reported 6.4% 5.0%
Amortization expense 6,574 6,463
OP$ excl. amortization 22,557 18,085
OP% excl. amortization 9.1% 7.8%
OPTOELECTRONICS Sales 86,717 83,302
OP$ reported 9,446 8,704
OP% reported 10.9% 10.4%
Amortization expense 312 312
OP$ excl. amortization 9,758 9,016
OP% excl. amortization 11.3% 10.8%
FLUID SCIENCES Sales 57,487 42,947
OP$ reported 8,309 2,380
OP% reported 14.5% 5.5%
Amortization expense 220 420
OP$ excl. amortization 8,529 2,800
OP% excl. amortization 14.8% 6.5%
OTHER OP$ reported (6,201)* (3,438)
CONTINUING OPERATIONS Sales $ 393,451 $ 358,449
========= =========
OP$ reported $ 27,537 $ 19,268
========= =========
OP% reported 7.0% 5.4%
Amortization expense $ 7,106 $ 7,195
========= =========
OP$ excl. amortization $ 34,643 $ 26,463
========= =========
OP% excl. amortization 8.8% 7.4%
(*) Includes impairment loss of $1.16M.
SALES AND REPORTING OPERATING PROFIT PREPARED IN ACCORDANCE WITH GAAP
PERKINELMER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 28, 2004 DECEMBER 28, 2003 MARCH 30, 2003
-------------- ----------------- --------------
(In thousands)
Current assets:
Cash and cash equivalents $ 165,471 $ 191,499 $ 129,777
Cash held in escrow -- -- 154,463
Accounts receivable 282,695 288,556 272,070
Inventories 197,997 190,946 205,543
Other current assets 98,357 95,297 154,432
Current assets of discontinued operations -- -- 12,030
----------- ----------- -----------
Total current assets 744,520 766,298 928,315
Property, plant and equipment:
At cost 622,764 623,164 606,406
Accumulated depreciation (366,899) (355,008) (308,100)
----------- ----------- -----------
Net property, plant and equipment 255,865 268,156 298,306
Marketable securities and investments 10,590 10,874 12,999
Intangible assets 418,024 424,811 445,300
Goodwill, net 1,032,073 1,034,911 993,010
Other assets 100,099 102,669 74,125
Long-term assets of discontinued operations -- -- 3,523
----------- ----------- -----------
Total assets $ 2,561,171 $ 2,607,719 $ 2,755,578
=========== =========== ===========
Current liabilities:
Short-term debt $ 4,979 $ 5,167 $ 161,066
Accounts payable 143,057 154,661 132,683
Accrued restructuring and integration costs 6,016 8,055 36,057
Accrued expenses 291,407 284,132 296,522
Current liabilities of discontinued operations -- -- 1,165
----------- ----------- -----------
Total current liabilities 445,459 452,015 627,493
Long-term debt 499,369 544,307 599,272
Long-term liabilities 261,667 262,347 268,186
Long-term liabilities of discontinued operations -- -- 2,068
----------- ----------- -----------
Total liabilities 1,206,495 1,258,669 1,497,019
Commitments and contingencies
Total stockholders' equity 1,354,676 1,349,050 1,258,559
----------- ----------- -----------
Total liabilities and stockholders' equity $ 2,561,171 $ 2,607,719 $ 2,755,578
=========== =========== ===========
PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
THREE MONTHS ENDED
-------------------------------
MARCH 28, 2004 MARCH 30, 2003
-------------- --------------
(IN THOUSANDS)
OPERATING ACTIVITIES:
Net income $ 13,271 $ 2,362
Add loss from discontinued operations, net of income taxes -- 980
Add net gain on disposition of discontinued operations (494) (20)
--------- ---------
Net income from continuing operations 12,777 3,322
--------- ---------
Adjustments to reconcile net income from continuing operations
to net cash provided by continuing operations:
Stock based compensation 806 700
Amortization of debt discount and issuance costs 2,211 2,866
Depreciation and amortization 19,483 18,801
Impairment 1,160 --
Gains on dispositions (363) (580)
Changes in operating assets and liabilities:
Accounts receivable 5,334 37,342
Inventories (7,030) 1,406
Accounts payable (11,967) (14,710)
Accrued restructuring and integration costs (2,039) (4,557)
Accrued expenses and other 5,427 (21,685)
--------- ---------
NET CASH PROVIDED BY CONTINUING OPERATIONS 25,799 22,905
--------- ---------
Net Cash Provided by Discontinued Operations 757 1,164
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 26,556 24,069
--------- ---------
INVESTING ACTIVITIES:
Cash withdrawn from escrow to repay deb -- 32,509
Capital expenditures (3,297) (3,461)
Proceeds from disposition of businesses, PP&E, net 2,056 --
Settlement of the disposition of business, net -- (575)
Proceeds related to acquisitions, net of cash acquired -- 2,126
--------- ---------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (1,241) 30,599
--------- ---------
FINANCING ACTIVITIES:
Payment of debt issuance costs -- (1,356)
Prepayment of zero coupon convertible notes -- (32,509)
Prepayment of term loan debt (45,000) (15,000)
(Decrease) increase in other credit facilities (464) 211
Proceeds from issuance of common stock for employee benefit plans 3,658 --
Cash dividends (8,904) (8,833)
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (50,710) (57,487)
--------- ---------
Effect of Exchange Rate Changes on Cash and Cash Equivalents (633) 1,981
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (26,028) (838)
Cash and Cash Equivalents at Beginning of Period 191,499 130,615
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 165,471 $ 129,777
========= =========
PREPARED IN ACCORDANCE WITH GAAP