EXHIBIT 99.1
PerkinElmer Announces Q1 2007 Results
-- Revenue Growth of 13%; Health Sciences Revenue up 16%
-- Growth led by Genetic Screening, Medical Imaging and Service
-- Completed Euroscreen and Improvision Acquisitions
BOSTON--(BUSINESS WIRE)--April 26, 2007--PerkinElmer, Inc. (NYSE:
PKI), a global leader in Health Sciences and Photonics markets, today
reported GAAP earnings per share from continuing operations of $.12 on
revenue of $402.9 million for the first quarter ended April 1, 2007.
On a non-GAAP basis, which includes the adjustments noted in the
attached reconciliation, the Company announced adjusted earnings per
share for the first quarter 2007 of $.24, which met the First Call
consensus estimate and was in line with the Company's forecasted range
of $.23 to $.25.
First quarter 2007 revenue of $402.9 million increased over 13%
versus the first quarter of 2006. Revenue growth was 14% in Life and
Analytical Sciences and 11% in Optoelectronics compared to the same
period last year. From an end market perspective, first quarter 2007
revenue from Health Sciences, which represented 84% of total revenues
for the quarter, increased 16% over the same period of 2006. This
increase was driven primarily by strong growth in genetic screening,
medical imaging, and service as a result of new products, key customer
wins and market expansion. Foreign exchange and acquisitions
contributed 7% to first quarter 2007 revenue.
"We were pleased to deliver another quarter of double-digit
revenue growth as we continue to strengthen our growth platforms
through increased R&D, marketing, acquisitions and capital
investments," said Gregory L. Summe, Chairman and CEO of the Company.
"We expect our momentum to continue through the year, as our new
products and services continue to make a greater contribution to our
overall revenue."
GAAP operating profit during the first quarter of 2007 was $23.1
million. On a non-GAAP basis, which includes the adjustments noted in
the attached reconciliation, first quarter 2007 adjusted operating
profit was $43.1 million, or 10.7% as a percentage of GAAP revenue for
the quarter.
The Company generated cash flow from operations of $17.3 million
in the first quarter of 2007, while increasing capital expenditures by
23%. In addition, the Company repurchased 2.5 million shares for a
cost of approximately $60 million in the first quarter of 2007. This
leaves 7.5 million shares remaining on the Company's stock repurchase
authorization.
Financial Overview by Reporting Segment
Life and Analytical Sciences reported revenue of $299.5 million
for the first quarter of 2007, up 14% from revenue of $261.9 million
in the first quarter of 2006, driven primarily by growth in the
Company's genetic screening, service and environmental businesses, as
well as a positive impact from acquisitions and new product
introductions.
The segment's GAAP operating profit for the first quarter of 2007
was $14.9 million. On a non-GAAP basis, which includes the adjustments
noted in the attached reconciliation, adjusted operating profit for
the first quarter of 2007 was $32.7 million, or 10.9% as a percentage
of GAAP revenue.
Optoelectronics reported revenue of $103.4 million for the first
quarter of 2007, up 11% from revenue of $93.5 million in the first
quarter of 2006, driven primarily by revenue growth in medical
imaging.
The segment's GAAP operating profit was $16.3 million for the
first quarter of 2007. On a non-GAAP basis, which includes the
adjustments noted in the attached reconciliation, adjusted operating
profit for the first quarter of 2007 was $17.3 million, or 16.8% as a
percentage of GAAP revenue.
Financial Guidance
For the second quarter of 2007, the Company projects revenue to
increase by low double digits, GAAP earnings per share of between $.21
and $.23, and on a non-GAAP basis, adjusted earnings per share of
between $.28 and $.30.
The Company will discuss its first quarter results in a conference
call on April 26, 2007, at 5:00 p.m. Eastern Time (ET). To listen to
the call live, please tune into the webcast at the "Investors" section
of our Web site, www.perkinelmer.com. A playback of this conference
call will be available beginning at 7:00 p.m. ET, Thursday, April 26,
2007. The playback phone number is (617) 801-6888 and the code number
is 88395502.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
generally accepted accounting principles (GAAP), this earnings
announcement also contains non-GAAP financial measures of adjusted
earnings per share and adjusted operating profit. In each case, see
below for the items that have been excluded in the determination of
non-GAAP financial measures.
-- When we refer to "adjusted earnings per share," we have
excluded the amortization of intangibles, stock option
expense, revaluation of acquired inventory, in-process
research and development charges and restructuring charges
from GAAP earnings per share from continued operations.
-- When we refer to "adjusted operating profit," we have excluded
the amortization of intangibles, stock option expense,
revaluation of acquired inventory, in-process research and
development charges and restructuring charges from GAAP
operating margin.
We use both GAAP and non-GAAP measures in our financial and
operating decision-making. We believe certain items should be excluded
from our non-GAAP financial measures because they are either outside
of our ongoing core operations or vary significantly from period to
period, which adversely affects the comparability of our results with
our competitors and our own prior periods, and, in certain cases, are
difficult to forecast accurately for future periods. We believe that
our GAAP and non-GAAP financial measures provide investors with
meaningful information about and insight into our ongoing core
operating results and future prospects. This is consistent with how we
internally understand, manage, evaluate and forecast our performance
and compare that performance to prior periods, forecasts and our
competitors' performance. We also use such GAAP and non-GAAP measures
to assess and compensate our employees.
Examples of items that are excluded from our non-GAAP financial
measures include the following:
-- We exclude costs and tax effects associated with
restructurings, such as the first quarter restructuring plan.
We do not engage in restructuring activities in the ordinary
course of business, and each restructuring plan has been
discrete in terms of its business impact and scope. We believe
that the costs related to restructuring activities vary
significantly, which adversely affects comparability of our
operating results, makes it difficult to forecast in future
periods and is not indicative of our ongoing core operations.
-- We exclude certain acquisition-related costs, including
charges for the sale of inventories revalued at the date of
acquisition and in-process research and development acquired.
We exclude these costs because they vary significantly, which
adversely affect comparability of our operating results, makes
it difficult to forecast in future periods and is not
indicative of our ongoing core operations.
-- We exclude the cost and tax effects associated with the
amortization of acquisition-related intangible assets because
a significant portion of the purchase price for acquisitions
may be allocated to intangible assets that have varying useful
lives. In addition, exclusion of the amortization expense
allows for more comparative operating results that are
consistent over time for both our newly acquired and long-held
businesses and with those of competitors who have made
acquisitions as well as those who have not.
-- We exclude the cost and tax effects associated with the effect
of stock option expense. Exclusion of stock option expense
allows for better comparisons with prior periods and operating
results of competitor companies. Stock-based compensation
plans and assumptions used to calculate the fair-value of the
expense vary dramatically between companies.
The non-GAAP financial measures included in this earnings
announcement 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
earnings announcement 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
earnings announcement and in our related investor conference call to
the most directly comparable GAAP financial measures are set forth in
the accompanying exhibits to this earnings announcement.
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 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 $1.55 billion in
2006, has 8,500 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) April 1, April 2,
2007 2006
------------------------------------------ --------- ---------
Sales $402,900 $355,454
Cost of Sales 242,833 213,767
Revaluation of Acquired Inventory 1,377 -
Research and Development Expenses 27,841 22,842
In-Process Research and Development
Charges 1,502 -
Selling, General and Administrative
Expenses 101,765 89,853
Restructuring Charges, Net 4,438 -
--------- ---------
Operating Income From Continuing
Operations 23,144 28,992
Interest Income (1,211) (3,372)
Interest Expense 2,255 2,305
Gains on Dispositions of Investments, Net (401) (266)
Other Expense, Net 2,123 1,160
--------- ---------
Income From Continuing Operations Before
Income Taxes 20,378 29,165
Provision for Income Taxes 5,559 7,145
--------- ---------
Net Income From Continuing Operations 14,819 22,020
Loss From Discontinued Operations, Net of
Income Taxes - (443)
(Loss) Gain on Disposition of
Discontinued Operations, Net of Income
Taxes (127) 2,040
--------- ---------
Net Income $14,692 $23,617
========= =========
Diluted Earnings (Loss) Per Share:
Continuing Operations $0.12 $0.17
Loss From Discontinued Operations, Net of
Income Taxes - -
(Loss) Gain on Disposition of
Discontinued Operations, Net of Income
Taxes - 0.02
--------- ---------
Net Income $0.12 $0.18
========= =========
Weighted Average Diluted Shares of Common
Stock Outstanding 123,263 129,715
ABOVE PREPARED IN ACCORDANCE WITH GAAP
- ----------------------------------------------------------------------
Additional Supplemental Information:
(per share, continuing operations)
GAAP Diluted EPS from Continuing
Operations $0.12 $0.17
Amortization of Intangible Assets, Net of
Income Taxes 0.06 0.04
Stock Options, Net of Income Taxes 0.01 0.01
Revaluation of Acquired Inventory, Net of
Income Taxes 0.01 -
In-Process Research and Development
Charges, Net of Income Taxes 0.01 -
Restructuring Charges, Net of Income Taxes 0.03 -
--------- ---------
Adjusted EPS $0.24 $0.22
========= =========
PerkinElmer, Inc. and Subsidiaries
SALES AND OPERATING PROFIT (LOSS)
Three Months Ended
------------------
(In thousands) April 1, April 2,
2007 2006
- ------------------------------------ -------- --------
Life and Analytical Sciences Sales $299,538 $261,929
OP$ reported 14,852 23,790
OP% reported 5.0% 9.1%
Amortization
expense 9,783 6,763
Stock option
expense 748 609
Revaluation
of Acquired
Inventory 1,377 -
In-Process
Research &
Development
charges 1,502 -
Restructuring
charges 4,438 -
OP$ adjusted 32,700 31,162
OP% adjusted 10.9% 11.9%
Optoelectronics Sales 103,362 93,525
OP$ reported 16,269 12,747
OP% reported 15.7% 13.6%
Amortization
expense 653 622
Stock option
expense 410 275
OP$ adjusted 17,332 13,644
OP% adjusted 16.8% 14.6%
Other OP$ reported (7,977) (7,545)
Stock option
expense 1,032 766
OP$ adjusted (6,945) (6,779)
Continuing Operations Sales $402,900 $355,454
OP$ reported 23,144 28,992
OP% reported 5.7% 8.2%
Amortization
expense 10,436 7,385
Stock option
expense 2,190 1,650
Revaluation
of Acquired
Inventory 1,377 -
In-Process
Research &
Development
charges 1,502 -
Restructuring
charges 4,438 -
-------- --------
OP$ adjusted $ 43,087 $ 38,027
======== ========
OP% adjusted 10.7% 10.7%
SALES AND REPORTED OPERATING PROFIT PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc. And Subsidiaries
CONSOLIDATED BALANCE SHEETS
April 1, December April 2,
2007 31, 2006 2006
----------- ----------- -----------
(In
thousands)
Current assets:
Cash and cash equivalents $119,562 $191,059 $321,841
Accounts receivable, net 267,628 268,459 235,269
Inventories, net 204,597 183,260 171,238
Other current assets 82,378 101,511 75,195
Current assets of discontinued
operations 477 477 273
----------- ----------- -----------
Total current assets 674,642 744,766 803,816
Property, plant and equipment:
At cost 532,510 525,134 496,379
Accumulated depreciation (344,154) (342,938) (317,528)
----------- ----------- -----------
Net property, plant and equipment 188,356 182,196 178,851
Marketable securities and
investments 4,589 7,508 9,432
Intangible assets, net 421,228 404,021 378,235
Goodwill 1,156,469 1,117,724 1,031,986
Other assets 51,129 52,502 90,887
Long-term assets of discontinued
operations 1,557 1,605 2,891
----------- ----------- -----------
Total assets $2,497,970 $2,510,322 $2,496,098
=========== =========== ===========
Current liabilities:
Short-term debt $1,627 $1,153 $1,090
Accounts payable 147,708 152,836 135,834
Accrued restructuring and
integration costs 5,883 2,731 9,180
Accrued expenses 266,054 318,987 254,753
Current liabilities of discontinued
operations - 826 1,476
----------- ----------- -----------
Total current liabilities 421,272 476,533 402,333
Long-term debt 178,119 151,781 206,624
Long-term liabilities 356,755 304,278 310,886
----------- ----------- -----------
Total liabilities 956,146 932,592 919,843
Commitments and contingencies
Total stockholders' equity 1,541,824 1,577,730 1,576,255
----------- ----------- -----------
Total liabilities and stockholders'
equity $2,497,970 $2,510,322 $2,496,098
=========== =========== ===========
PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
-------------------
April 1, April 2,
2007 2006
--------- ---------
(In thousands)
Operating activities:
Net income $14,692 $ 23,617
Add: loss from discontinued operations, net of
income taxes - 443
Add: loss (gain) on disposition of discontinued
operations, net of income taxes 127 (2,040)
--------- ---------
Net income from continuing operations 14,819 22,020
--------- ---------
Adjustments to reconcile net income from continuing
operations
to net cash provided by (used in) continuing
operations:
Stock-based compensation 2,888 2,841
Restructuring charges, net 4,438 -
Amortization of debt discount and issuance
costs 74 70
Depreciation and amortization 19,085 16,478
In-process research and development charges 1,502 -
Revaluation of acquired inventory 1,377 -
Gains on dispositions, net (401) (266)
Changes in operating assets and liabilities:
Accounts receivable, net 12,459 18,224
Inventories, net (8,901) (7,373)
Accounts payable (10,155) (12,211)
Taxes paid on divestitures - (54,550)
Accrued expenses and other (19,802) (19,392)
--------- ---------
Net cash provided by (used in) continuing
operations 17,383 (34,159)
--------- ---------
Net cash used in discontinued operations (131) (580)
--------- ---------
Net cash provided by (used in) operating activities 17,252 (34,739)
--------- ---------
Investing activities:
Capital expenditures (11,393) (9,238)
(Payments for) proceeds from disposition of
businesses and investments, net (473) 21,201
Payments for acquisitions and investments, net of
cash acquired (39,995) (8,696)
--------- ---------
Net cash (used in) provided by investing activities (51,861) 3,267
--------- ---------
Financing Activities:
Payments on debt - (39,734)
Proceeds from borrowings 25,450 -
Payments for debt issuance costs - (741)
Decrease in other credit facilities (13) (104)
Tax benefit from exercise of common stock options 703 3,785
Proceeds from issuance of common stock options 6,170 14,829
Purchases of common stock (60,028) (116,393)
Dividends paid (8,630) (9,116)
--------- ---------
Net cash used in financing activities (36,348) (147,474)
--------- ---------
Effect of exchange rate changes on cash and cash
equivalents (540) (1,477)
--------- ---------
Net decrease in cash and cash equivalents (71,497) (180,423)
Cash and cash equivalents at beginning of period 191,059 502,264
--------- ---------
Cash and cash equivalents at end of period $119,562 $321,841
========= =========
PREPARED IN ACCORDANCE WITH GAAP
PerkinElmer, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
-----------------------------
PKI
Q107 Q106
--------- -------
Adjusted Gross Margin:
GAAP Gross Margin 158.7 39.4% 141.7 39.9%
Intangibles Amortization 8.5 2.1% 7.0 2.0%
Stock Option Expense 0.2 0.1% - 0.0%
Revaluation of Acquired Inventory 1.4 0.3% - 0.0%
--------- ----- ------- -----
Adjusted Gross Margin: $168.8 41.9% $148.7 41.8%
========= ===== ======= =====
Adjusted SG&A:
GAAP SG&A 101.8 25.3% 89.9 25.3%
Intangibles Amortization (1.6) -0.4% (0.2) -0.1%
Stock Option Expense (1.8) -0.4% (1.5) -0.4%
--------- ----- ------- -----
Adjusted SG&A: $98.4 24.4% $88.1 24.8%
========= ===== ======= =====
Adjusted R&D:
GAAP R&D 29.3 7.3% 22.8 6.4%
Intangibles Amortization (0.4) -0.1% (0.2) 0.0%
Stock Option Expense (0.2) 0.0% (0.2) -0.1%
In-Process Research & Development
Charges (1.5) -0.4% - 0.0%
--------- ----- ------- -----
Adjusted R&D: $27.3 6.8% $22.5 6.3%
========= ===== ======= =====
Adjusted Operating Profit:
GAAP Operating Profit 23.1 5.7% 29.0 8.2%
Intangibles Amortization 10.4 2.6% 7.4 2.1%
Stock Option Expense 2.2 0.5% 1.6 0.5%
Revaluation of Acquired Inventory 1.4 0.3% - 0.0%
In-Process Research & Development
Charges 1.5 0.4% - 0.0%
Restructuring Charges 4.4 1.1% - 0.0%
--------- ----- ------- -----
Adjusted Operating Profit $43.1 10.7% $38.0 10.7%
========= ===== ======= =====
-----------------------------
LAS
Q107 Q106
--------- -------
Adjusted Operating Profit:
GAAP Operating Profit 14.9 5.0% 23.8 9.1%
Intangibles Amortization 9.8 3.3% 6.8 2.6%
Stock Option Expense 0.7 0.2% 0.6 0.2%
Revaluation of Acquired Inventory 1.4 0.5% - 0.0%
In-Process Research & Development
Charges 1.5 0.5% - 0.0%
Restructuring Charges 4.4 1.5% - 0.0%
--------- ----- ------- -----
Adjusted Operating Profit $32.7 10.9% $31.2 11.9%
========= ===== ======= =====
-----------------------------
Opto
Q107 Q106
--------- -------
Adjusted Operating Profit:
GAAP Operating Profit 16.3 15.7% 12.7 13.6%
Intangibles Amortization 0.7 0.6% 0.6 0.7%
Stock Option Expense 0.4 0.4% 0.3 0.3%
Revaluation of Acquired Inventory - 0.0% - 0.0%
In-Process Research & Development
Charges - 0.0% - 0.0%
Restructuring Charges - 0.0% - 0.0%
--------- ----- ------- -----
Adjusted Operating Profit $17.3 16.8% $13.6 14.6%
========= ===== ======= =====
-----------------------------
PKI
Q107 Q106
--------- -------
Adjusted EPS:
GAAP EPS $0.12 $0.18
Discontinued Operations - (0.01)
--------- ----- ------- -----
GAAP EPS from Continuing Operations 0.12 0.17
Intangibles Amortization 0.06 0.04
Stock Option Expense 0.01 0.01
Revaluation of Acquired Inventory 0.01 -
In-Process Research & Development
Charges 0.01 -
Restructuring Charges 0.03 -
--------- ----- ------- -----
Adjusted EPS $0.24 $0.22
========= ===== ======= =====
-----------------------------
PKI
Q207 Q206
--------- -------
Adjusted EPS: Projected
GAAP EPS $0.21 - 0.23 $0.19
Discontinued Operations - 0.02
--------- ----- ------- -----
GAAP EPS from Continuing Operations $0.21 - 0.23 0.21
Intangibles Amortization 0.06 0.04
Stock Option Expense 0.01 0.01
Revaluation of Acquired Inventory - -
In-Process Research & Development
Charges - -
Restructuring Charges - -
--------- ----- ------- -----
Adjusted EPS $0.28 - 0.30 $0.26
=============== ======= =====
CONTACT: Investor Relations:
PerkinElmer, Inc.
Steven Delahunt, 781-663-5677
or
Media Contact:
PerkinElmer, Inc.
Kevin Lorenc, 781-663-5701