Ireland | Not Applicable | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Treasury Building, Lower Grand Canal Street, Dublin 2, Ireland | - | |
(Address of principal executive offices) | (Zip Code) |
• | Amortization of acquired assets related to business combinations and asset acquisitions |
• | Operating results attributable to held-for-sale businesses |
• | Acquisition and integration-related charges |
• | Goodwill and intangible impairment charges |
• | Restructuring charges related to organizational improvements |
• | Extinguishment of debt incurred in connection with debt refinancing |
• | Equity method investment losses |
• | Amortization of acquired assets related to business combinations and asset acquisitions |
• | Acquisition and integration-related charges |
• | Restructuring charges related to completed business acquisition and for organizational improvements |
• | Increase in litigation accrual |
• | Financing charges and extinguishment of debt incurred in connection with financing a complete acquisition |
• | Losses on derivatives associated with hedging an acquisition's foreign currency-denominated purchase price |
• | The weighted average effect of shares issued to finance an acquisition |
• | Amortization of acquired assets related to business combinations and asset acquisitions and impact of acquisitions on deferred tax balances |
• | Integration and restructuring-related charges |
• | Operating results attributable to held-for-sale businesses |
• | Goodwill and intangible asset impairment charges |
• | Equity method investment losses |
(d) | Exhibits |
99.1 | Press release issued by Perrigo Company plc on May 12, 2016, furnished solely pursuant to Item 2.02 of Form 8-K. |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Judy L. Brown | |||
Dated: | May 12, 2016 | Judy L. Brown | ||
Executive Vice President, Business Operations | ||||
and Chief Financial Officer | ||||
(Principal Accounting and Financial Officer) |
99.1 | Press release issued by Perrigo Company plc on May 12, 2016, furnished solely pursuant to Item 2.02 of Form 8-K. |
• | Delivered record first quarter adjusted net sales of $1.34 billion excluding VMS sales of $47 million, an increase of 32% compared to the prior year |
• | Achieved adjusted net income of $251 million and adjusted earnings per diluted share of $1.75; achieved record first quarter adjusted gross margin of 47.9% with first quarter adjusted operating margin of 25.1% |
• | Realized Consumer Healthcare first quarter net sales of $653 million, with record first quarter adjusted operating income of $122 million excluding VMS |
• | Reported first quarter GAAP net loss of $(133) million and GAAP diluted loss per share of $(0.93), which includes non-cash intangible and goodwill impairment charges; GAAP gross margin of 37.8% and GAAP operating margin of (22.0)% |
• | The Company continues to expect calendar year 2016 adjusted earnings per diluted share in the range of $8.20 to $8.60, which reflects an increase of 8% to 13% over calendar year 2015 adjusted earnings per share of $7.59 |
First Quarter Ended | First Quarter Ended | YoY | ||||||
4/2/2016 | 3/28/2015 | % Change | ||||||
Reported Net Sales | $1,383 | $1,049 | 32 | % | ||||
Adjusted Net Income | $251 | $249 | 1 | % | ||||
Adjusted Diluted EPS | $1.75 | $1.85 | (5 | )% | ||||
Adjusted Diluted Shares | 143.6 | 134.5 | 7 | % | ||||
Reported Net Loss | $(133) | $(95) | (40 | )% | ||||
Reported Diluted EPS | $(0.93) | $(0.67) | 39 | % | ||||
Reported Diluted Shares | 143.2 | 140.8 | 2 | % |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||
4/2/2016 | 3/28/2015 | % Change | % Change | ||||||
Adjusted Net Sales Excluding VMS* | $1,336 | $1,012 | 32 | % | 33 | % |
First Quarter Ended | First Quarter Ended | YoY | |||||||
4/2/2016 | 3/28/2015 | % Change | |||||||
Reported Net Sales | $700 | $685 | 2 | % | |||||
Adjusted Gross Profit | $221 | $222 | (1 | )% | |||||
Adjusted Gross Margin | 33.8 | % | 32.4 | % | 140 bps | ||||
Adjusted Operating Income | $122 | $122 | 1 | % | |||||
Adjusted Operating Margin | 18.7 | % | 17.8 | % | 90 bps | ||||
Reported Gross Profit | $214 | $212 | 1 | % | |||||
Reported Gross Margin | 30.5 | % | 30.9 | % | (40) bps | ||||
Reported Operating Income | $103 | $104 | (2 | )% | |||||
Reported Operating Margin | 14.6 | % | 15.2 | % | (60) bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||
4/2/2016 | 3/28/2015 | % Change | % Change | ||||||
Adjusted Net Sales Excluding VMS* | $653 | $647 | 1 | % | 2 | % |
First Quarter Ended | |||
4/2/2016 | |||
Net Sales | $318 | ||
Adjusted Gross Profit | $165 | ||
Adjusted Gross Margin | 51.9 | % | |
Adjusted Operating Income | $25 | ||
Adjusted Operating Margin | 7.8 | % | |
Reported Gross Profit | $157 | ||
Reported Gross Margin | 49.3 | % | |
Reported Operating Loss | $(483) | ||
Reported Operating Margin | (152.0 | )% |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
4/2/2016 | 3/28/2015 | % Change | % Change | ||||||||
Net Sales | $257 | $252 | 2 | % | 2 | % | |||||
Adjusted Gross Profit | $157 | $160 | (2 | )% | |||||||
Adjusted Gross Margin | 61.0 | % | 63.5 | % | (250) bps | ||||||
Adjusted Operating Income | $117 | $120 | (3 | )% | |||||||
Adjusted Operating Margin | 45.6 | % | 47.8 | % | (220) bps | ||||||
Reported Gross Profit | $127 | $142 | (10 | )% | |||||||
Reported Gross Margin | 49.6 | % | 56.3 | % | (670) bps | ||||||
Reported Operating Income | $87 | $100 | (13 | )% | |||||||
Reported Operating Margin | 34.0 | % | 39.7 | % | (570) bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
4/2/2016 | 3/28/2015 | % Change | % Change | ||||||||
Net Sales | $88 | $82 | 7 | % | 9 | % | |||||
Adjusted Gross Profit | $88 | $82 | 7 | % | |||||||
Adjusted Gross Margin | 100.0 | % | 100.0 | % | — | ||||||
Adjusted Operating Income | $86 | $79 | 9 | % | |||||||
Adjusted Operating Margin | 97.4 | % | 95.8 | % | 160 | bps | |||||
Reported Gross Profit | $15 | $9 | 63 | % | |||||||
Reported Gross Margin | 17.3 | % | 11.4 | % | 590 | bps | |||||
Reported Operating Income | $13 | $6 | 137 | % | |||||||
Reported Operating Margin | 14.7 | % | 6.7 | % | 800 | bps |
Three Months Ended | |||||||
April 2, 2016 | March 28, 2015 | ||||||
Net sales | $ | 1,383.2 | $ | 1,049.1 | |||
Cost of sales | 860.3 | 670.3 | |||||
Gross profit | 522.9 | 378.8 | |||||
Operating expenses | |||||||
Distribution | 21.8 | 14.7 | |||||
Research and development | 45.3 | 35.4 | |||||
Selling | 180.8 | 48.8 | |||||
Administration | 106.4 | 79.6 | |||||
Impairment charges | 467.0 | — | |||||
Restructuring | 5.4 | 1.1 | |||||
Total operating expenses | 826.7 | 179.6 | |||||
Operating income (loss) | (303.8 | ) | 199.2 | ||||
Interest expense, net | 51.2 | 43.3 | |||||
Other expense, net | 3.8 | 258.6 | |||||
Loss on extinguishment of debt | 0.4 | — | |||||
Loss before income taxes | (359.2 | ) | (102.7 | ) | |||
Income tax benefit | (226.1 | ) | (7.8 | ) | |||
Net loss | $ | (133.1 | ) | $ | (94.9 | ) | |
Loss per share | |||||||
Basic loss per share | $ | (0.93 | ) | $ | (0.67 | ) | |
Diluted loss per share | $ | (0.93 | ) | $ | (0.67 | ) | |
Weighted-average shares outstanding | |||||||
Basic | 143.2 | 140.8 | |||||
Diluted | 143.2 | 140.8 | |||||
Dividends declared per share | $ | 0.145 | $ | 0.125 |
April 2, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 588.9 | $ | 417.8 | |||
Accounts receivable, net of allowance for doubtful accounts of $3.4 million, and $3.0 million, respectively | 1,184.2 | 1,193.1 | |||||
Inventories | 868.8 | 844.4 | |||||
Prepaid expenses and other current assets | 354.7 | 289.1 | |||||
Total current assets | 2,996.6 | 2,744.4 | |||||
Property and equipment, net | 896.3 | 886.2 | |||||
Goodwill and other indefinite-lived intangible assets | 7,033.0 | 7,281.2 | |||||
Other intangible assets, net | 8,519.1 | 8,190.5 | |||||
Non-current deferred income taxes | 78.0 | 54.6 | |||||
Other non-current assets | 225.3 | 237.0 | |||||
Total non-current assets | 16,751.7 | 16,649.5 | |||||
Total assets | $ | 19,748.3 | $ | 19,393.9 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 559.9 | $ | 554.9 | |||
Payroll and related taxes | 92.2 | 125.3 | |||||
Accrued customer programs | 331.0 | 398.0 | |||||
Accrued liabilities | 307.5 | 308.4 | |||||
Accrued income taxes | — | 85.2 | |||||
Current indebtedness | 619.2 | 1,018.3 | |||||
Total current liabilities | 1,909.8 | 2,490.1 | |||||
Long-term debt, less current portion | 5,902.7 | 4,971.6 | |||||
Non-current deferred income taxes | 1,487.0 | 1,563.7 | |||||
Other non-current liabilities | 400.6 | 332.4 | |||||
Total non-current liabilities | 7,790.3 | 6,867.7 | |||||
Total liabilities | 9,700.1 | 9,357.8 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity | |||||||
Preferred shares, $0.0001 par value, 10 million shares authorized | — | — | |||||
Ordinary shares, €0.001 par value, 10 billion shares authorized | 8,160.8 | 8,144.6 | |||||
Accumulated other comprehensive income | 136.7 | (15.5 | ) | ||||
Retained earnings | 1,751.3 | 1,907.6 | |||||
Total controlling interest | 10,048.8 | 10,036.7 | |||||
Noncontrolling interest | (0.6 | ) | (0.6 | ) | |||
Total shareholders’ equity | 10,048.2 | 10,036.1 | |||||
Total liabilities and shareholders' equity | $ | 19,748.3 | $ | 19,393.9 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Preferred shares, issued and outstanding | — | — | |||||
Ordinary shares, issued and outstanding | 143.2 | 143.1 |
Three Months Ended | |||||||
April 2, 2016 | March 28, 2015 | ||||||
Cash Flows From (For) Operating Activities | |||||||
Net loss | $ | (133.1 | ) | $ | (94.9 | ) | |
Adjustments to derive cash flows | |||||||
Depreciation and amortization | 182.5 | 127.7 | |||||
Loss on acquisition-related foreign currency derivatives | — | 298.1 | |||||
Share-based compensation | 13.8 | 7.5 | |||||
Impairment charges | 467.0 | — | |||||
Loss on extinguishment of debt | 0.4 | — | |||||
Non-cash restructuring charges | 5.4 | 1.1 | |||||
Deferred income taxes | (138.0 | ) | (46.3 | ) | |||
Other non-cash adjustments | 1.6 | (0.2 | ) | ||||
Subtotal | 399.6 | 293.0 | |||||
Increase (decrease) in cash due to: | |||||||
Accounts receivable | 23.0 | 39.4 | |||||
Inventories | (14.8 | ) | 2.1 | ||||
Accounts payable | 0.3 | 18.0 | |||||
Payroll and related taxes | (37.4 | ) | (1.0 | ) | |||
Accrued customer programs | (69.7 | ) | (27.8 | ) | |||
Accrued liabilities | (3.4 | ) | (2.5 | ) | |||
Accrued income taxes | (102.0 | ) | (51.2 | ) | |||
Other | (25.3 | ) | (2.0 | ) | |||
Subtotal | (229.3 | ) | (25.0 | ) | |||
Net cash from (for) operating activities | 170.3 | 268.0 | |||||
Cash Flows From (For) Investing Activities | |||||||
Acquisitions of businesses, net of cash acquired | (416.4 | ) | (4.0 | ) | |||
Additions to property and equipment | (34.7 | ) | (31.9 | ) | |||
Settlement of acquisition-related foreign currency derivatives | — | (298.1 | ) | ||||
Other investing | (1.0 | ) | — | ||||
Net cash from (for) investing activities | (452.1 | ) | (334.0 | ) | |||
Cash Flows From (For) Financing Activities | |||||||
Issuances of long-term debt | 1,190.3 | — | |||||
Payments on long-term debt | (14.3 | ) | (13.6 | ) | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | (704.3 | ) | 3.4 | ||||
Deferred financing fees | (1.5 | ) | (3.3 | ) | |||
Issuance of ordinary shares | 3.1 | 1.2 | |||||
Repurchase of ordinary shares | — | (0.1 | ) | ||||
Cash dividends | (20.8 | ) | (17.6 | ) | |||
Other financing | (3.5 | ) | (1.6 | ) | |||
Net cash from (for) financing activities | 449.0 | (31.6 | ) | ||||
Effect of exchange rate changes on cash | 3.9 | (68.1 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 171.1 | (165.7 | ) | ||||
Cash and cash equivalents, beginning of period | 417.8 | 3,596.1 | |||||
Cash and cash equivalents, end of period | $ | 588.9 | $ | 3,430.4 | |||
Supplemental Disclosures of Cash Flow Information | |||||||
Cash paid/received during the year for: | |||||||
Interest paid | $ | 11.9 | $ | 5.2 | |||
Interest received | $ | 0.4 | $ | 0.2 | |||
Income taxes paid | $ | 34.5 | $ | 92.2 | |||
Income taxes refunded | $ | 0.2 | $ | 1.6 |
Table I | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Consolidated | April 2, 2016 | March 28, 2015 | % Change | ||||||||||||||||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | ||||||||||||||||||||||
Net sales | $ | 1,383.2 | $ | (47.4 | ) | (b) | $ | 1,335.8 | $ | 1,049.1 | $ | — | $ | 1,049.1 | 32 | % | 27 | % | |||||||||||
Cost of sales | 860.3 | 164.9 | (a,b) | 695.4 | 670.3 | 101.0 | (a) | 569.3 | 28 | % | 22 | % | |||||||||||||||||
Gross profit | 522.9 | 117.5 | 640.4 | 378.8 | 101.0 | 479.8 | 38 | % | 33 | % | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Distribution | 21.8 | 0.6 | (b) | 21.2 | 14.7 | — | 14.7 | 48 | % | 44 | % | ||||||||||||||||||
Research and development | 45.3 | 0.8 | (b) | 44.5 | 35.4 | — | 35.4 | 28 | % | 26 | % | ||||||||||||||||||
Selling | 180.8 | 35.5 | (a,b) | 145.3 | 48.8 | 5.6 | (a) | 43.2 | 270 | % | 236 | % | |||||||||||||||||
Administration | 106.4 | 12.0 | (a,b,c,d) | 94.4 | 79.6 | 5.6 | (a,c,j) | 74.0 | 34 | % | 28 | % | |||||||||||||||||
Impairment charges | 467.0 | 467.0 | (e) | — | — | — | — | — | % | — | % | ||||||||||||||||||
Restructuring | 5.4 | 5.4 | (d) | — | 1.1 | 1.1 | (d) | — | NM | — | % | ||||||||||||||||||
Total operating expenses | 826.7 | 521.3 | 305.4 | 179.6 | 12.3 | 167.3 | 360 | % | 83 | % | |||||||||||||||||||
Operating income (loss) | (303.8 | ) | 638.8 | 335.0 | 199.2 | 113.3 | 312.5 | -253 | % | 7 | % | ||||||||||||||||||
Interest expense, net | 51.2 | — | 51.2 | 43.3 | 18.7 | (k) | 24.6 | 18 | % | 108 | % | ||||||||||||||||||
Other expense, net | 3.8 | 2.4 | (f) | 1.4 | 258.6 | 258.5 | (k,l) | 0.1 | -99 | % | NM | ||||||||||||||||||
Loss on extinguishment of debt | 0.4 | 0.4 | (g) | — | — | — | — | — | % | — | % | ||||||||||||||||||
Income (loss) before income taxes | (359.2 | ) | 641.6 | 282.4 | (102.7 | ) | 390.5 | 287.8 | 250 | % | -2 | % | |||||||||||||||||
Income tax expense (benefit) | (226.1 | ) | 257.6 | (h) | 31.5 | (7.8 | ) | 47.1 | (h) | 39.3 | NM | -20 | % | ||||||||||||||||
Net income (loss) | $ | (133.1 | ) | $ | 384.0 | $ | 250.9 | $ | (94.9 | ) | $ | 343.4 | $ | 248.5 | -40 | % | 1 | % | |||||||||||
Diluted earnings (loss) per share | $ | (0.93 | ) | $ | 1.75 | $ | (0.67 | ) | $ | 1.85 | 39 | % | -5 | % | |||||||||||||||
Diluted weighted average shares outstanding | 143.2 | 143.6 | 140.8 | 6.3 | (i) | 134.5 | 2 | % | 7 | % | |||||||||||||||||||
Selected ratios as a percentage of net sales (1) | |||||||||||||||||||||||||||||
Gross profit | 37.8 | % | 47.9 | % | 36.1 | % | 45.7 | % | |||||||||||||||||||||
Operating expenses | 59.8 | % | 22.9 | % | 17.1 | % | 15.9 | % | |||||||||||||||||||||
Operating income (loss) | (22.0 | )% | 25.1 | % | 19.0 | % | 29.8 | % |
Tickmark Legend - Quarter-to-Date Consolidated | ||
Tickmark | Description | |
(1) | Ratios calculated using exact numbers | |
NM | Calculations are not meaningful | |
(a) | Acquisition-related amortization expense | |
(b) | Operating results attributable to held-for-sale U.S. VMS and India API businesses | |
(c) | Acquisition and integration-related expenses | |
(d) | Restructuring and related fees | |
(e) | Intangible asset and goodwill impairment charges related to our BCH segment | |
(f) | Losses on equity method investments | |
(g) | Loss on early extinguishment of debt | |
(h) | Tax effect of non-GAAP adjustments, non-operational changes in deferred tax items and the effect of the use of tax attributes | |
(i) | Weighted average effect of 6.8 million shares issued on November 26, 2014 to finance the Omega acquisition | |
(j) | Increase in litigation accrual | |
(k) | Omega financing fees | |
(l) | Loss on derivatives associated with the Omega acquisition |
Table II | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Consumer Healthcare | April 2, 2016 | March 28, 2015 | % Change | ||||||||||||||||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | ||||||||||||||||||||||
Net sales | $ | 700.3 | $ | (47.1 | ) | (b) | $ | 653.2 | $ | 684.9 | $ | — | $ | 684.9 | 2 | % | -5 | % | |||||||||||
Cost of sales | 486.4 | 53.7 | (a,b) | 432.7 | 473.0 | 9.9 | (a) | 463.1 | 3 | % | -7 | % | |||||||||||||||||
Gross profit | 213.9 | 6.6 | 220.5 | 211.9 | 9.9 | 221.8 | 1 | % | -1 | % | |||||||||||||||||||
Operating expenses | 111.4 | 13.3 | (a,b,c) | 98.1 | 107.6 | 7.4 | (a,c) | 100.2 | 4 | % | -2 | % | |||||||||||||||||
Operating income | $ | 102.5 | $ | 19.9 | $ | 122.4 | $ | 104.3 | $ | 17.3 | $ | 121.6 | -2 | % | 1 | % | |||||||||||||
Selected ratios as a percentage of net sales (1) | |||||||||||||||||||||||||||||
Gross profit | 30.5 | % | 33.8 | % | 30.9 | % | 32.4 | % | |||||||||||||||||||||
Operating expenses | 15.9 | % | 15.0 | % | 15.7 | % | 14.6 | % | |||||||||||||||||||||
Operating income | 14.6 | % | 18.7 | % | 15.2 | % | 17.8 | % | |||||||||||||||||||||
(1) Ratios calculated using exact numbers | |||||||||||||||||||||||||||||
(a) Acquisition-related amortization expense | |||||||||||||||||||||||||||||
(b) Operating results attributable to the held-for-sale VMS business | |||||||||||||||||||||||||||||
(c) Restructuring and other integration-related charges |
Table II continued | |||||||||||
PERRIGO COMPANY PLC | |||||||||||
REPORTABLE SEGMENTS | |||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
(in millions) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
Branded Consumer Healthcare | April 2, 2016 | ||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | |||||||||
Net sales | $ | 317.6 | $ | — | $ | 317.6 | |||||
Cost of sales | 161.0 | 8.3 | (a) | 152.7 | |||||||
Gross profit | 156.6 | 8.3 | 164.9 | ||||||||
Operating expenses | 639.3 | 499.3 | (a,b,c) | 140.0 | |||||||
Operating income (loss) | $ | (482.7 | ) | $ | 507.6 | $ | 24.9 | ||||
Selected ratios as a percentage of net sales (1) | |||||||||||
Gross profit | 49.3 | % | 51.9 | % | |||||||
Operating expenses | 201.3 | % | 44.1 | % | |||||||
Operating income (loss) | (152.0 | )% | 7.8 | % | |||||||
(1) Ratios calculated using exact numbers | |||||||||||
(a) Acquisition-related amortization expense | |||||||||||
(b) Restructuring and integration-related expenses | |||||||||||
(c) Intangible asset and goodwill impairment charges totaling $467.0 million |
Table II continued | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Rx Pharmaceuticals | April 2, 2016 | March 28, 2015 | % Change | ||||||||||||||||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | ||||||||||||||||||||||
Net sales | $ | 256.7 | $ | — | $ | 256.7 | $ | 251.6 | $ | — | $ | 251.6 | 2 | % | 2 | % | |||||||||||||
Cost of sales | 129.3 | 29.2 | (a) | 100.1 | 109.9 | 18.2 | (a) | 91.7 | 18 | % | 9 | % | |||||||||||||||||
Gross profit | 127.4 | 29.2 | 156.6 | 141.7 | 18.2 | 159.9 | -10 | % | -2 | % | |||||||||||||||||||
Operating expenses | 40.0 | 0.4 | (a) | 39.6 | 41.7 | 2.2 | (a,b) | 39.5 | -4 | % | — | % | |||||||||||||||||
Operating income | $ | 87.4 | $ | 29.6 | $ | 117.0 | $ | 100.0 | $ | 20.4 | $ | 120.4 | -13 | % | -3 | % | |||||||||||||
Selected ratios as a percentage of net sales (1) | |||||||||||||||||||||||||||||
Gross profit | 49.6 | % | 61.0 | % | 56.3 | % | 63.5 | % | |||||||||||||||||||||
Operating expenses | 15.6 | % | 15.4 | % | 16.6 | % | 15.7 | % | |||||||||||||||||||||
Operating income | 34.0 | % | 45.6 | % | 39.7 | % | 47.8 | % | |||||||||||||||||||||
(1) Ratios calculated using exact numbers | |||||||||||||||||||||||||||||
(a) Acquisition-related amortization expense | |||||||||||||||||||||||||||||
(b) Increase in a litigation accrual |
Table II continued | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Specialty Sciences | April 2, 2016 | March 28, 2015 | % Change | ||||||||||||||||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | ||||||||||||||||||||||
Net sales | $ | 88.0 | $ | — | $ | 88.0 | $ | 81.9 | $ | — | $ | 81.9 | 7 | % | 7 | % | |||||||||||||
Cost of sales | 72.8 | 72.8 | (a) | — | 72.5 | 72.5 | (a) | — | — | % | — | % | |||||||||||||||||
Gross profit | 15.2 | 72.8 | 88.0 | 9.3 | 72.5 | 81.9 | 63 | % | 7 | % | |||||||||||||||||||
Operating expenses | 2.3 | — | (a) | 2.3 | 3.9 | 0.5 | (a,b) | 3.4 | -41 | % | -34 | % | |||||||||||||||||
Operating income | $ | 12.9 | $ | 72.8 | $ | 85.7 | $ | 5.5 | $ | 73.0 | $ | 78.5 | 137 | % | 9 | % | |||||||||||||
Selected ratios as a percentage of net sales (1) | |||||||||||||||||||||||||||||
Gross profit | 17.3% | 100.0% | 11.4% | 100.0% | |||||||||||||||||||||||||
Operating expenses | 2.6% | 2.6% | 4.7% | 4.2% | |||||||||||||||||||||||||
Operating income | 14.7% | 97.4% | 6.7% | 95.8% | |||||||||||||||||||||||||
(1) Ratios calculated using exact numbers | |||||||||||||||||||||||||||||
(a) Acquisition-related amortization expense | |||||||||||||||||||||||||||||
(b) Restructuring and other integration-related charges | |||||||||||||||||||||||||||||
Table II continued | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
REPORTABLE SEGMENTS | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
Other | April 2, 2016 | March 28, 2015 | % Change | ||||||||||||||||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | ||||||||||||||||||||||
Net sales | $ | 20.6 | $ | (0.3 | ) | $ | 20.3 | $ | 30.7 | $ | — | $ | 30.7 | -33 | % | -34 | % | ||||||||||||
Cost of sales | 10.8 | 1.0 | (a) | 9.8 | 14.9 | 0.5 | (a) | 14.4 | -28 | % | -32 | % | |||||||||||||||||
Gross profit | 9.8 | 0.7 | 10.5 | 15.8 | 0.5 | 16.3 | -37 | % | -36 | % | |||||||||||||||||||
Operating expenses | 4.4 | 0.3 | (b) | 4.1 | 5.3 | — | 5.3 | -16 | % | -22 | % | ||||||||||||||||||
Operating income (loss) | $ | 5.4 | $ | 1.0 | $ | 6.4 | $ | 10.5 | $ | 0.5 | $ | 11.0 | -48 | % | -42 | % | |||||||||||||
Selected ratios as a percentage of net sales (1) | |||||||||||||||||||||||||||||
Gross profit | 47.9 | % | 51.6 | % | 51.5 | % | 53.0 | % | |||||||||||||||||||||
Operating expenses | 21.5 | % | 20.5 | % | 17.3 | % | 17.3 | % | |||||||||||||||||||||
Operating income | 26.3 | % | 31.1 | % | 34.1 | % | 35.6 | % | |||||||||||||||||||||
(1) Ratios calculated using exact numbers | |||||||||||||||||||||||||||||
(a) Acquisition-related amortization expense | |||||||||||||||||||||||||||||
(b) Restructuring and integration-related charges |
Table III | ||||
PERRIGO COMPANY PLC | ||||
2016 GUIDANCE | ||||
RECONCILIATION OF NON-GAAP MEASURES | ||||
(unaudited) | ||||
Full Year | ||||
2016 Guidance | ||||
2016 reported diluted EPS range | $2.44 - $2.84 | |||
Acquisition-related amortization and impact of acquisitions on deferred tax balances (1) | 3.82 | |||
Impairment charges | 1.74 | |||
Integration and restructuring-related charges | 0.17 | |||
Other (2) | 0.03 | |||
2016 full year adjusted diluted EPS range | $8.20 - $8.60 | |||
2015 full year adjusted diluted EPS | $7.59 | |||
% change | 8% - 13% | |||
(1) Amortization of acquired intangible assets related to business combinations and asset acquisitions. | ||||
(2) Equity method investment losses and operating results related to held-for-sale businesses |
Table IV | |||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||
REPORTABLE SEGMENTS | |||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
April 2, 2016 | March 28, 2015 | YoY % Change | Fx Impact | Constant Currency % Change | |||||||||||||
Adjusted net sales | |||||||||||||||||
Consumer Healthcare* | $ | 653.2 | $ | 684.9 | -5 | % | 1 | % | -4 | % | |||||||
Branded Consumer Healthcare | 317.6 | — | — | % | — | % | — | % | |||||||||
Prescription Pharmaceuticals | 256.7 | 251.6 | 2 | % | — | % | 2 | % | |||||||||
Specialty Sciences | 88.0 | 81.9 | 7 | % | 2 | % | 9 | % | |||||||||
Other* | 20.3 | 30.7 | -34 | % | -1 | % | -35 | % | |||||||||
Consolidated adjusted net sales | $ | 1,335.8 | $ | 1,049.1 | 27 | % | — | % | 29 | % | |||||||
*Excludes sales attributable to held for sale businesses for the three months ended April 2, 2016 of $47.1 million | |||||||||||||||||
Three Months Ended | |||||||||||||||||
April 2, 2016 | March 28, 2015 | YoY % Change | Fx Impact | Constant Currency % Change | |||||||||||||
Reported Consumer Healthcare net sales | $ | 700.3 | $ | 684.9 | |||||||||||||
Less: sales attributable to held for sale business | (47.1 | ) | (37.5 | ) | |||||||||||||
Consumer Healthcare adjusted net sales | $653.2 | $647.4 | 1 | % | 1 | % | 2 | % | |||||||||
Reported consolidated net sales | $ | 1,383.2 | $ | 1,049.1 | |||||||||||||
Less: sales attributable to held for sale businesses | (47.4 | ) | (37.5 | ) | |||||||||||||
Consolidated adjusted net sales | $1,335.8 | $1,011.6 | 33 | % | 1 | % | 34 | % | |||||||||