Exhibit 99.1
PerkinElmer Announces Q1 2006 Results
BOSTON--(BUSINESS WIRE)--April 27, 2006--PerkinElmer, Inc. (NYSE:
PKI):
-- Earnings Per Share from Continuing Operations up 42%
-- Operating Cash Flow, Net of Divestiture Taxes, up 47%
-- Completed Shift to Health Sciences and Photonics
PerkinElmer, Inc. (NYSE: PKI), a global leader in Health Sciences
and Photonics markets, today announced GAAP earnings per share from
continuing operations of $.17 on revenue of $355.5 million for the
first quarter ended April 2, 2006. The first quarter 2006 results
include intangibles amortization of $7.4 million, or approximately
$.04 per share, and stock option expense of $1.7 million, or $.01 per
share. The Company reported earnings per share from continuing
operations excluding intangibles amortization and stock option expense
of $.22, which represents an increase of 38% over the first quarter of
2005. The $.22 met the Thomson First Call(TM) consensus earnings per
share estimate of $.22 for the first quarter of 2006 and was also
within the Company's previously forecasted range.
Revenue for the first quarter 2006 was $355.5 million compared to
$358.2 million in the first quarter 2005. Excluding the net impact of
foreign exchange and acquisitions of 3%, first quarter 2006 revenue
grew 2% over the first quarter of 2005.
"We were pleased to deliver very strong earnings per share growth
in the quarter driven by continued operating margin expansion. We
expect this momentum will enable us to deliver 25% to 30% adjusted
earnings per share growth for the full year 2006," said Gregory L.
Summe, Chairman and CEO of the Company. "Also in the quarter, we
completed our strategic shift to the Health Sciences and Photonics
markets through completing our Fluid Sciences divestiture. Going
forward, we are well positioned to aggressively invest in our growth
platforms," added Summe.
GAAP operating profit during the first quarter of 2006 was $29.0
million. GAAP operating margin for the first quarter of 2006 was 8.2%.
First quarter 2006 operating profit excluding intangibles amortization
of $7.4 million and stock option expense of $1.7 million was $38.0
million, or 10.7% as a percentage of revenue, representing an increase
of 70 basis points compared to the same period of last year.
The Company had GAAP operating cash outflows of $34.7 million in
the first quarter of 2006. This includes a one-time tax payment of
$54.6 million related to the gain on the divestiture of the Fluid
Sciences businesses. Operating cash flow adjusted for this one-time
tax payment was $19.8 million, up 47% from the first quarter 2005.
Financial Overview by Reporting Segment:
Life and Analytical Sciences reported revenue of $261.9 million
for the first quarter of 2006 compared to $264.8 million in the first
quarter 2005. Revenue during the first quarter of 2006 excluding the
effects of foreign exchange and acquisitions grew 2%. The increase in
adjusted revenue was driven by strong revenue growth in the Company's
genetic screening and service businesses, partially offset by a
decrease in the biopharma business.
The segment's GAAP operating profit for the first quarter of 2006
was $23.8 million versus $22.0 million for the same period of 2005. As
a percentage of sales, operating profit for the first quarter of 2006
was up 80 basis points. Operating profit excluding intangibles
amortization and stock option expense for the first quarter of 2006
was $31.2 million, or 11.9% as a percentage of revenue, an increase of
110 basis points over the same period of 2005.
Optoelectronics reported revenue of $93.5 million for the first
quarter of 2006 compared to $93.4 million in the first quarter 2005.
Excluding the impact of foreign exchange and acquisitions, revenue in
the first quarter 2006 increased 1% compared to the same period in
2005, with growth from sensors partially offset by a decline in
specialty lighting revenues.
The segment's GAAP operating profit was $12.7 million for the
first quarter of 2006 versus $13.5 million for the comparable period
of 2005. As a percentage of sales, operating profit for the first
quarter of 2006 was 13.6%, a decline of 90 basis points. The segment's
operating profit excluding intangibles amortization and stock option
expense for the first quarter of 2006 was $13.6 million, or 14.6% as a
percentage of revenue, a decrease of 60 basis points over the same
period of 2005.
Financial Guidance
For the second quarter of 2006, the Company projects GAAP earnings
per share from continuing operations of between $.20 and $.22.
Excluding the impact of intangibles amortization and stock option
expense, the Company projects earnings per share from continuing
operations of between $.25 and $.27 for the second quarter of 2006, an
increase of approximately 25% to 35% over the second quarter 2005. For
the full year 2006, the Company expects GAAP earnings per share of
between $1.01 and $1.06, and earnings per share excluding intangibles
amortization and stock option expense of between $1.20 and $1.25 per
share, in line with previous guidance.
The Company will discuss its first quarter results in a conference
call on April 27, 2006, at 5:45 p.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 at 7:45 p.m. ET, Thursday,
April 27, 2006. The playback phone number is 617-801-6888 and the code
number is 24958249.
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 revenue, operating
profit, operating margin and earnings per share, in each case
excluding, where appropriate, the impact of foreign exchange, the
effects of acquisitions, intangibles amortization, and stock option
expense. When we refer in this press release to "adjusted revenue," we
are excluding the effects of foreign exchange and acquisitions on GAAP
revenue. When we refer in this press release to "operating margin,"
other than on a GAAP basis, we are excluding the amortization of
intangibles and stock option expense from GAAP operating margin. When
we refer to "adjusted earnings per share" or "earnings per share from
continuing operations," other than on a GAAP basis, we are excluding
the amortization of intangibles and stock option expense from GAAP
earnings per share. 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, and can also help investors who wish to make comparisons
between us and other companies on both a GAAP and a non-GAAP basis,
particularly with respect to stock-based compensation expenses. Our
management uses these non-GAAP measures, in addition to GAAP financial
measures, as the basis for measuring our core operating performance
and comparing such performance to that of prior periods and to the
performance of our competitors. These measures are also used by
management in their financial and operating decision making.
This press release also contains the non-GAAP financial measure of
cash flow, net of divestiture taxes. We define cash flow, net of
divestiture taxes, as operating cash flow minus tax payments related
to the gain on divestitures. We use cash flow, net of divestiture
taxes to compare our period-over-period results and our results to
those of competitors, without the impact of a non-recurring tax
payment. 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. Although certain non-GAAP financial measures used in
this release exclude the accounting treatment of stock-based
compensation, these non-GAAP measures should not be relied upon
independently, as they ignore the contribution to our operating
results that is generated by the incentive and compensation effects of
the underlying stock-based compensation programs. 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,
including, but not limited to, statements relating to estimates and
projections of future earnings per share and revenue growth and other
financial results, developments relating to our customers and
end-markets, and plans concerning business development opportunities.
Words such as "believes," "intends," "anticipates," "plans,"
"expects," "projects," "forecasts," "will" and similar expressions,
and references to guidance, are intended to identify forward-looking
statements. Such statements are based on management's current
assumptions and expectations and no assurances can be given that our
assumptions or expectations will prove to be correct. A number of
important risk factors could cause actual results to differ materially
from the results described, implied or projected in any
forward-looking statements. These factors include, without limitation:
(1) our failure to introduce new products in a timely manner; (2) our
ability to execute acquisitions and license technologies, or to
successfully integrate acquired businesses and licensed technologies
into our existing business or to make them profitable; (3) our failure
to protect adequately our intellectual property; (4) the loss of any
of our licenses or licensed rights; (5) our ability to compete
effectively; (6) fluctuation in our quarterly operating results and
our ability to adjust our operations to address unexpected changes;
(7) our ability to produce an adequate quantity of products to meet
our customers' demands; (8) our failure to maintain compliance with
applicable government regulations; (9) regulatory changes; (10)
economic, political and other risks associated with foreign
operations; (11) our ability to retain key personnel; (12)
restrictions in our credit agreement; (13) our ability to realize the
full value of our intangible assets; and (14) other factors which we
describe under the caption "Risk Factors" in our most recent annual
report on Form 10-K and in our most recent quarterly report on Form
10-Q and in our other filings with the Securities and Exchange
Commission. We disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring after
the date of this press release.
Other Information
Health Sciences end markets include genetic screening,
environmental, service, biopharma, and medical imaging. Photonics
markets include sensors and specialty lighting.
PerkinElmer, Inc. is a global technology leader driving growth and
innovation in Health Sciences and Photonics markets to improve the
quality of life. The Company reported revenues of $1.5 billion in
2005, has 8,000 employees serving 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.
PerkinElmer, Inc. and Subsidiaries
INCOME STATEMENTS
Three Months Ended
--------------------
(In thousands, except per share data) 2-Apr-06 3-Apr-05
- -------------------------------------------------- --------- ---------
Sales $355,454 $358,174
Cost of Sales 213,767 209,885
Research and Development Expenses 22,842 22,591
In-Process Research and Development Charge - 194
Selling, General and Administrative Expenses 89,853 96,826
-------- --------
Operating Income From Continuing Operations 28,992 28,678
Interest Income (3,372) (669)
Interest Expense 2,305 8,076
Gains on Dispositions of Investments, Net (266) -
Other Expense, Net 1,160 652
-------- --------
Income From Continuing Operations Before Income
Taxes 29,165 20,619
Provision for Income Taxes 7,145 5,017
-------- --------
Net Income From Continuing Operations 22,020 15,602
(Loss) Income From Discontinued Operations, Net of
Income Taxes (443) 4,150
Gain on Disposition of Discontinued Operations, Net
of Income Taxes 2,040 77
-------- --------
Net Income $ 23,617 $ 19,829
======== ========
Diluted Earnings (Loss) Per Share:
Continuing Operations $ 0.17 $ 0.12
(Loss) Income From Discontinued Operations, Net of
Income Taxes $ - $ 0.03
Gain on Disposition of Discontinued Operations, Net
of Income Taxes $ 0.02 $ -
-------- --------
Net Income $ 0.18 $ 0.15
======== ========
Weighted Average Diluted Shares of Common Stock
Outstanding 129,595 131,056
ABOVE PREPARED IN ACCORDANCE WITH GAAP
- ----------------------------------------------------------------------
Additional Supplemental Information:
(per share, continuing operations)
GAAP Diluted EPS from Continuing Operations $ 0.17 $ 0.12
Amortization of Intangible Assets, Net of Income
Taxes 0.04 0.04
Stock Options, Net of Tax (Note: $1.5M pre-tax
in SG&A, $0.2M pre-tax in R&D) 0.01 -
-------- --------
Continuing Operations EPS excluding Amortization
of Intangible Assets and Stock Option Expense $ 0.22 $ 0.16
======== ========
Thomson First Call(TM) EPS $ 0.22
========
PerkinElmer, Inc. and Subsidiaries
Sales and Operating Profit (Loss)
Three Months Ended
------------------
April 2, April 3,
(In thousands) 2006 2005
- -------------- --------- --------
Life and Analytical Sciences Sales $261,929 $264,773
OP$ reported 23,790 21,958
OP% reported 9.1% 8.3%
Amortization expense 6,763 6,575
Stock option expense 609 -
OP$ adjusted 31,162 28,533
OP% adjusted 11.9% 10.8%
Optoelectronics Sales 93,525 93,401
OP$ reported 12,747 13,502
OP% reported 13.6% 14.5%
Amortization
expense(a) 622 719
Stock option expense 275 -
OP$ adjusted 13,644 14,221
OP% adjusted 14.6% 15.2%
Other OP$ reported (7,545) (6,782)
Stock option expense 766 -
OP$ adjusted (6,779) (6,782)
Continuing Operations Sales $355,454 $358,174
OP$ reported 28,992 28,678
OP% reported 8.2% 8.0%
Amortization
expense(a) 7,385 7,294
Stock option expense 1,650 -
-------- --------
OP$ adjusted $ 38,027 $ 35,972
======== ========
OP% adjusted 10.7% 10.0%
(a) Includes In-Process Research and Development Charge in the amount
of $194 in Q1 2005.
SALES AND REPORTED OPERATING PROFIT PREPARED IN ACCORDANCE WITH GAAP
PERKINELMER, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 2, January 1, April 3,
2006 2006 2005
----------- ----------- -----------
(In thousands)
Current assets:
Cash and cash equivalents $ 321,841 $ 502,264 $ 184,213
Accounts receivable, net 235,269 250,844 254,898
Inventories 171,238 163,150 174,307
Other current assets 75,195 71,189 69,858
Current assets of discontinued
operations 273 11,442 59,955
---------- ---------- ----------
Total current assets 803,816 998,889 743,231
Property, plant and equipment:
At cost 496,379 484,453 494,871
Accumulated depreciation (317,528) (307,084) (302,842)
---------- ---------- ----------
Net property, plant and equipment 178,851 177,369 192,029
Marketable securities and
investments 9,432 9,222 10,302
Intangible assets, net 378,235 375,419 393,837
Goodwill 1,031,986 1,026,201 1,047,406
Other assets 90,887 90,156 102,221
Long-term assets of discontinued
operations 2,891 16,205 77,484
---------- ---------- ----------
Total assets $2,496,098 $2,693,461 $2,566,510
========== ========== ==========
Current liabilities:
Short-term debt $ 1,090 $ 1,131 $ 9,663
Accounts payable 135,834 146,971 124,083
Accrued restructuring and
integration costs 9,180 11,242 1,987
Accrued expenses 254,753 324,954 264,920
Current liabilities of
discontinued operations 1,476 10,241 33,079
---------- ---------- ----------
Total current liabilities 402,333 494,539 433,732
Long-term debt 206,624 243,282 364,761
Long-term liabilities 310,886 303,687 295,199
Long-term liabilities of
discontinued operations - 1,440 12,128
---------- ---------- ----------
Total liabilities 919,843 1,042,948 1,105,820
Commitments and contingencies
Total stockholders' equity 1,576,255 1,650,513 1,460,690
---------- ---------- ----------
Total liabilities and
stockholders' equity $2,496,098 $2,693,461 $2,566,510
========== ========== ==========
PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Three Months Ended
--------------------
April 2, April 3,
2006 2005
--------------------
(In thousands)
Operating Activities:
Net income $ 23,617 $ 19,829
Loss (income) from discontinued operations, net
of income taxes 443 (4,150)
Gain on disposition of discontinued operations,
net of income taxes (2,040) (77)
--------- --------
Net income from continuing operations 22,020 15,602
--------- --------
Adjustments to reconcile net income from
continuing operations to net cash provided by
continuing operations:
Stock based compensation 2,841 921
Amortization of debt discount and issuance
costs 70 818
Depreciation 9,093 10,212
Amortization 7,385 7,100
In-process research and development - 194
Gains on dispositions and sales of
investments, net (266) -
Changes in operating assets and liabilities:
Accounts receivable 18,224 (2,231)
Inventories (7,373) (6,302)
Accounts payable (12,211) (2,429)
Accrued restructuring and integration
costs (2,097) (1,058)
Taxes paid on divestitures (54,550) -
Accrued expenses and other (17,295) (15,388)
--------- --------
Net Cash (Used in) Provided by Continuing
Operations (34,159) 7,439
--------- --------
Net Cash (Used in) Provided by Discontinued
Operations (580) 6,056
--------- --------
Net Cash (Used in) Provided by Operating
Activities (34,739) 13,495
--------- --------
Investing Activities:
Capital expenditures (9,238) (3,664)
Proceeds received from disposition or settlement
of businesses or investments, net 21,201 250
Proceeds from disposition of property, plant
and equipment, net - 322
Cash used related to acquisitions, net of cash
acquired (8,696) (13,138)
--------- --------
Net Cash Provided by (Used in) Continuing
Operations 3,267 (16,230)
--------- --------
Net Cash Used in Discontinued Operations - (866)
--------- --------
Net Cash Provided by (Used in) Investing
Activities 3,267 (17,096)
--------- --------
Financing Activities:
Prepayment of term loan debt - (175)
Principal payments on debt (39,734) -
Payment of debt issuance and tender costs (741) -
Tax benefit from exercise of common stock
options 3,785 -
Decrease in other credit facilities (104) (243)
Proceeds from issuance of common stock for
employee benefit plans 14,829 2,643
Purchase of stock (116,393) -
Cash dividends (9,116) (9,037)
--------- --------
Net Cash Used in Financing Activities (147,474) (6,812)
--------- --------
Effect of Exchange Rate Changes on Cash and Cash
Equivalents (1,477) (2,887)
--------- --------
Net Decrease in Cash and Cash Equivalents (180,423) (13,300)
Cash and Cash Equivalents at Beginning of Period 502,264 197,513
--------- --------
Cash and Cash Equivalents at End of Period $ 321,841 $184,213
========= ========
PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc.
Reconciliation of GAAP to non-GAAP financial measures.
PKI LAS Opto
Adjusted OP Margin: Q106 Q105 Q106 Q105 Q106 Q105
GAAP OP Margin 8.2% 8.0% 9.1% 8.3% 13.6% 14.5%
Intangibles Amortization 2.1% 2.0% 2.6% 2.5% 0.7% 0.7%
Stock Option Expense 0.4% 0.0% 0.2% 0.0% 0.3% 0.0%
------ ------ ----- ----- ----- -----
Adjusted OP Margin 10.7% 10.0% 11.9% 10.8% 14.6% 15.2%
====== ====== ===== ===== ===== =====
PKI
Adjusted EPS: Q106 Q105
GAAP EPS 0.18 0.15
Discontinued Ops (0.01) (0.03)
Intangibles Amortization 0.04 0.04
Stock Option Expense 0.01 -
------ ------
Adjusted EPS 0.22 0.16
====== ======
PKI
Adjusted Cash from Operations
($M): Q106 Q105
GAAP Net Cash from Operations (35) 14
Cash Taxes on Divestitures 55 -
------ ------
Adjusted Net Cash from
Operations 20 14
====== ======
Q1 2006
Adjusted Revenue Growth: LAS Opto PKI
Reported Revenue Growth -1% 0%-1%
Foreign Exchange 3% 2% 3%
Acquisitions 0% -1% 0%
------ ---------
Adjusted Revenue Growth 2% 1% 2%
====== =========
CONTACT: PerkinElmer, Inc.
Investor Relations:
Steven Delahunt, 781-431-4258
or
Media Contact:
Kevin Lorenc, 781-431-4231