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 |
• | Investment impairment charges |
• | Restructuring charges related to organizational improvements |
• | Operating results attributable to held-for-sale businesses |
• | Equity method investment losses |
• | Acquisition and integration-related charges |
• | Goodwill and held-for-sale impairment charges |
• | Tax effect of non-GAAP adjustments, including quarterly effect on the annual effective tax rate calculation |
• | Amortization of acquired assets related to business combinations and asset acquisitions |
• | Operating results attributable to held-for-sale businesses |
• | Payment made in connection with a research and development arrangement |
• | Goodwill, intangible asset and investment impairment charges |
• | Restructuring charges related to completed business acquisition and organizational improvements |
• | Losses on derivatives associated primarily with hedging an acquisition's foreign currency-denominated purchase price |
• | Acquisition and integration-related charges |
• | Legal and consulting fees related to hostile takeover defense |
• | Equity method investment losses |
• | Loss on early debt extinguishment |
• | Non-GAAP adjustment to tax expense associated with debt restructuring for the acquisition of Omega |
• | Tax effect of non-GAAP adjustments, including quarterly effect on the annual effective tax rate calculation |
• | Amortization of acquired assets related to business combinations and asset acquisitions |
• | Goodwill, intangible asset, held-for-sale and investment impairment charges |
• | Integration and restructuring-related charges |
• | Operating results attributable to held-for-sale businesses |
• | Equity method investment losses |
• | Loss on early debt extinguishment |
• | Tax effect of non-GAAP adjustments |
• | Amortization of acquired assets related to business combinations and asset acquisitions |
• | Losses on derivatives associated with hedging an acquisition's foreign currency-denominated purchase price |
• | Goodwill, intangible asset, held-for-sale and investment impairment charges |
• | Legal and consulting fees related to hostile takeover defense |
• | Acquisition and integration-related charges |
• | Restructuring charges related to completed business acquisition and organizational improvements |
• | Financing fees |
• | Loss on early debt extinguishment |
• | Payment made in connection with a research and development arrangement |
• | Equity method investment losses |
• | Non-GAAP adjustment to tax expense associated with debt restructuring for the acquisition of Omega |
• | Tax effect of non-GAAP adjustments |
(d) | Exhibits |
99.1 | Press Release issued by Perrigo Company plc on August 10, 2016, furnished solely pursuant to Item 2.02 of Form 8-K. |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Judy L. Brown | |||
Dated: | August 10, 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 August 10, 2016, furnished solely pursuant to Item 2.02 of Form 8-K. |
• | Delivered second quarter reported (GAAP) net sales of $1.48 billion and adjusted (non-GAAP) net sales of $1.44 billion, excluding sales of $44 million from held-for-sale businesses* |
• | Delivered second quarter reported net income of $194 million and reported diluted earnings per share of $1.35; delivered second quarter reported gross margin of 38.3%, and second quarter reported operating margin of 16.1% |
• | Realized adjusted net income of $278 million and adjusted diluted earnings per share of $1.93; achieved second quarter adjusted gross margin of 48.0% with second quarter adjusted operating margin of 27.3% |
• | Consumer-facing businesses achieved reported net sales of $1.08 billion, or $1.04 billion excluding sales from held-for-sale businesses, comprising in excess of 70% of reported and adjusted net sales in the quarter |
• | Realized Consumer Healthcare (“CHC”) segment reported operating margin of 16.2% with adjusted operating margin of 20.7%; Branded Consumer Healthcare ("BCH") segment reported operating margin of 9.8% with adjusted operating margin of 14.9%. |
Second Quarter Ended | Second Quarter Ended | YoY | Constant Currency | ||||||
7/2/2016 | 6/27/2015 | % Change | % Change | ||||||
Reported Net Sales | $1,481 | $1,532 | (3)% | ||||||
Reported Net Income | $194 | $56 | 244% | ||||||
Reported Diluted Earnings per Share | $1.35 | $0.38 | 255% | ||||||
Adjusted Net Sales(1) | $1,437 | $1,492 | (4)% | (3 | )% | ||||
Adjusted Net Income | $278 | $320 | (13)% | ||||||
Adjusted Diluted Earnings per Share | $1.93 | $2.18 | (11)% | ||||||
Diluted Shares | 143.6 | 146.8 | (2)% |
(1) | Second quarter 2016 net sales exclude $44 million of net sales from held-for-sale businesses (primarily VMS). For comparative purposes, second quarter 2015 net sales have been adjusted in this presentation to exclude $40 million of sales attributable to businesses that are currently held-for-sale. This 2015 net sales adjustment does not impact any other prior year amounts or metrics. |
Second Quarter Ended | Second Quarter Ended | YoY | Constant Currency | ||||||||
7/2/2016 | 6/27/2015 | % Change | % Change | ||||||||
Reported Net Sales | $686 | $746 | (8 | )% | |||||||
Reported Gross Profit | $230 | $258 | (11 | )% | |||||||
Reported Gross Margin | 33.5 | % | 34.6 | % | (110) bps | ||||||
Reported Operating Income | $111 | $143 | (22 | )% | |||||||
Reported Operating Margin | 16.2 | % | 19.2 | % | (300) bps | ||||||
Adjusted Net Sales(1) | $644 | $707 | (9 | )% | (8 | )% | |||||
Adjusted Gross Profit | $236 | $269 | (12 | )% | |||||||
Adjusted Gross Margin(2) | 36.6 | % | 36.0 | % | 60 bps | ||||||
Adjusted Operating Income | $134 | $160 | (16 | )% | |||||||
Adjusted Operating Margin(2) | 20.7 | % | 21.4 | % | (70) bps |
(1) | Second quarter 2016 net sales exclude $42 million from the U.S. VMS business, which is currently held-for-sale. For comparative purposes, second quarter 2015 net sales have been adjusted in this presentation to exclude $40 million of sales attributable to VMS. This 2015 net sales adjustment does not impact any other prior year amounts or metrics. |
Second Quarter Ended | Second Quarter Ended | YoY | Constant Currency | ||||||||
7/2/2016 | 6/27/2015 | % Change | % Change | ||||||||
Reported Net Sales | $394 | $401 | (2)% | ||||||||
Reported Gross Profit | $173 | $190 | (9)% | ||||||||
Reported Gross Margin | 44.0 | % | 47.4 | % | (340) bps | ||||||
Reported Operating Income (Loss) | $38 | $27 | 44% | ||||||||
Reported Operating Margin | 9.8 | % | 6.6 | % | 320 | bps | |||||
Adjusted Net Sales(1) | $394 | $401 | (2)% | (2 | )% | ||||||
Adjusted Gross Profit | $187 | $213 | (12)% | ||||||||
Adjusted Gross Margin(2) | 47.4 | % | 53.0 | % | (560 | ) bps | |||||
Adjusted Operating Income | $59 | $77 | (24)% | ||||||||
Adjusted Operating Margin(2) | 14.9 | % | 19.2 | % | (430 | ) bps |
(1) | Second quarter 2016 net sales excludes Etixx, which is currently held-for-sale. For comparative purposes, second quarter 2015 net sales have also been adjusted to exclude Etixx. The sales attributable to Etixx are $0.1 million for both periods presented. |
Second Quarter Ended | Second Quarter Ended | YoY | Constant Currency | ||||||||
7/2/2016 | 6/27/2015 | % Change | % Change | ||||||||
Net Sales | $293 | $278 | 5% | 6 | % | ||||||
Reported Gross Profit | $139 | $161 | (14 | )% | |||||||
Reported Gross Margin | 47.5 | % | 58.0 | % | (1,050) bps | ||||||
Reported Operating Income | $97 | $100 | (3 | )% | |||||||
Reported Operating Margin | 33.0 | % | 35.7 | % | (270) bps | ||||||
Adjusted Gross Profit | $169 | $180 | (6 | )% | |||||||
Adjusted Gross Margin | 57.6 | % | 64.8 | % | (720) bps | ||||||
Adjusted Operating Income | $127 | $138 | (8 | )% | |||||||
Adjusted Operating Margin | 43.2 | % | 49.5 | % | (630) bps |
Second Quarter Ended | Second Quarter Ended | YoY | Constant Currency | ||||||||
7/2/2016 | 6/27/2015 | % Change | % Change | ||||||||
Net Sales | $90 | $84 | 7% | 7 | % | ||||||
Reported Gross Profit | $17 | $11 | 54% | ||||||||
Reported Gross Margin | 19.0 | % | 13.3 | % | 570 | bps | |||||
Reported Operating Income | $13 | $6 | 107% | ||||||||
Reported Operating Margin | 14.8 | % | 7.7 | % | 710 | bps | |||||
Adjusted Gross Profit | $90 | $84 | 7% | ||||||||
Adjusted Gross Margin | 100.0 | % | 100.0 | % | — | ||||||
Adjusted Operating Income | $86 | $79 | 9% | ||||||||
Adjusted Operating Margin | 95.8 | % | 94.8 | % | 100 | bps |
Three Months Ended | Six Months Ended | ||||||||||||||
July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | ||||||||||||
Net sales | $ | 1,481.0 | $ | 1,531.6 | $ | 2,864.2 | $ | 2,580.8 | |||||||
Cost of sales | 913.8 | 903.5 | 1,774.1 | 1,573.8 | |||||||||||
Gross profit | 567.2 | 628.1 | 1,090.1 | 1,007.0 | |||||||||||
Operating expenses | |||||||||||||||
Distribution | 22.5 | 23.7 | 44.3 | 38.4 | |||||||||||
Research and development | 47.0 | 62.6 | 92.2 | 98.0 | |||||||||||
Selling | 171.6 | 174.9 | 352.4 | 223.7 | |||||||||||
Administration | 101.8 | 140.1 | 208.2 | 219.7 | |||||||||||
Impairment charges (credits) | (19.8 | ) | — | 447.2 | — | ||||||||||
Restructuring | 5.8 | (0.1 | ) | 11.3 | 1.0 | ||||||||||
Total operating expenses | 328.9 | 401.2 | 1,155.6 | 580.8 | |||||||||||
Operating income (loss) | 238.3 | 226.9 | (65.5 | ) | 426.2 | ||||||||||
Interest expense, net | 57.4 | 45.9 | 108.6 | 89.2 | |||||||||||
Other expense, net | 29.3 | 22.7 | 33.1 | 281.3 | |||||||||||
Loss on extinguishment of debt | — | 0.9 | 0.4 | 0.9 | |||||||||||
Income (loss) before income taxes | 151.6 | 157.4 | (207.6 | ) | 54.8 | ||||||||||
Income tax expense (benefit) | (42.7 | ) | 101.0 | (67.3 | ) | 93.2 | |||||||||
Net income (loss) | $ | 194.3 | $ | 56.4 | $ | (140.3 | ) | $ | (38.4 | ) | |||||
Income (loss) per share | |||||||||||||||
Basic | $ | 1.36 | $ | 0.39 | $ | (0.98 | ) | $ | (0.27 | ) | |||||
Diluted | $ | 1.35 | $ | 0.38 | $ | (0.98 | ) | $ | (0.27 | ) | |||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 143.2 | 146.3 | 143.2 | 143.5 | |||||||||||
Diluted | 143.6 | 146.8 | 143.2 | 143.5 | |||||||||||
Dividends declared per share | $ | 0.145 | $ | 0.125 | $ | 0.29 | $ | 0.25 |
(Unaudited) | |||||||
July 2, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 641.8 | $ | 417.8 | |||
Accounts receivable, net of allowance for doubtful accounts of $4.0 million, and $3.0 million, respectively | 1,199.1 | 1,193.1 | |||||
Inventories | 894.6 | 844.4 | |||||
Prepaid expenses and other current assets | 297.3 | 289.1 | |||||
Total current assets | 3,032.8 | 2,744.4 | |||||
Property and equipment, net | 888.6 | 886.2 | |||||
Goodwill and other indefinite-lived intangible assets | 6,627.1 | 7,281.2 | |||||
Other intangible assets, net | 8,679.3 | 8,190.5 | |||||
Non-current deferred income taxes | 100.6 | 54.6 | |||||
Other non-current assets | 205.2 | 237.0 | |||||
Total non-current assets | 16,500.8 | 16,649.5 | |||||
Total assets | $ | 19,533.6 | $ | 19,393.9 | |||
Liabilities and Shareholders’ Equity | |||||||
Liabilities | |||||||
Accounts payable | $ | 514.1 | $ | 554.9 | |||
Payroll and related taxes | 98.4 | 125.3 | |||||
Accrued customer programs | 354.2 | 398.0 | |||||
Accrued liabilities | 295.7 | 308.4 | |||||
Accrued income taxes | 72.5 | 85.2 | |||||
Current indebtedness | 758.1 | 1,018.3 | |||||
Total current liabilities | 2,093.0 | 2,490.1 | |||||
Long-term debt, less current portion | 5,652.5 | 4,971.6 | |||||
Non-current deferred income taxes | 1,473.7 | 1,563.7 | |||||
Other non-current liabilities | 414.7 | 332.4 | |||||
Total non-current liabilities | 7,540.9 | 6,867.7 | |||||
Total liabilities | 9,633.9 | 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 | 8,144.0 | 8,144.6 | |||||
Accumulated other comprehensive income | 31.3 | (15.5 | ) | ||||
Retained earnings | 1,725.0 | 1,907.6 | |||||
Total controlling interest | 9,900.3 | 10,036.7 | |||||
Noncontrolling interest | (0.6 | ) | (0.6 | ) | |||
Total shareholders’ equity | 9,899.7 | 10,036.1 | |||||
Total liabilities and shareholders' equity | $ | 19,533.6 | $ | 19,393.9 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Preferred shares, issued and outstanding | — | — | |||||
Ordinary shares, issued and outstanding | 143.2 | 143.1 |
TABLE I | |||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||||||||
(in millions, except per share amounts) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended July 2, 2016 | |||||||||||||||
Consolidated | Net Sales | Gross Profit | Operating Income (Loss) | Net Income (Loss) | Diluted Earnings (Loss) per Share | ||||||||||
Reported | $ | 1,481.0 | $ | 567.2 | $ | 238.3 | $ | 194.3 | $ | 1.35 | |||||
Adjustments: | |||||||||||||||
Amortization expense related primarily to acquired intangible assets | — | 128.9 | 163.5 | 163.5 | 1.15 | ||||||||||
Investment impairments | — | — | — | 24.1 | 0.17 | ||||||||||
Restructuring charges | — | — | 5.8 | 5.8 | 0.04 | ||||||||||
Operating results attributable to held-for-sale businesses* | (43.6 | ) | (6.0 | ) | 2.5 | 2.1 | 0.01 | ||||||||
Losses from equity method investments | — | — | — | 1.8 | 0.01 | ||||||||||
Acquisition and integration-related charges | — | — | 2.4 | 2.0 | 0.01 | ||||||||||
Goodwill and held-for-sale impairment charges | — | — | (19.8 | ) | (19.8 | ) | (0.14 | ) | |||||||
Tax effect of non-GAAP adjustments, including quarterly effect on the annual effective tax rate calculation | — | — | — | (96.3 | ) | (0.67 | ) | ||||||||
Adjusted | $ | 1,437.4 | $ | 690.1 | $ | 392.7 | $ | 277.5 | $ | 1.93 | |||||
As a % of adjusted net sales | 48.0 | % | 27.3 | % | |||||||||||
Diluted weighted average shares outstanding | 143.6 | ||||||||||||||
*Held-for-sale businesses include the U.S. VMS business, Etixx brand, and India API business |
TABLE I (CONTINUED) | ||||||
PERRIGO COMPANY PLC | ||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||
SELECTED CONSOLIDATED INFORMATION | ||||||
(in millions, except per share amounts) | ||||||
(unaudited) | ||||||
Three Months Ended June 27, 2015 | ||||||
Consolidated | Net Income | Diluted Earnings per Share | ||||
Reported | $ | 56.4 | $ | 0.38 | ||
Adjustments: | ||||||
Amortization expense related primarily to acquired intangible assets | 142.6 | 0.98 | ||||
Amortization of inventory fair value adjustments related to acquisitions | 15.6 | 0.11 | ||||
Initial payment made in connection with an R&D arrangement | 18.0 | 0.12 | ||||
Goodwill, intangible asset and investment impairment charges | 9.0 | 0.06 | ||||
Restructuring charges | 0.3 | — | ||||
Derivative losses | 5.5 | 0.04 | ||||
Acquisition and integration-related charges | 19.7 | 0.13 | ||||
Legal and consulting fees related to Mylan defense | 13.4 | 0.09 | ||||
Losses from equity method investments | 3.5 | 0.02 | ||||
Loss on early debt extinguishment | 0.9 | 0.01 | ||||
Non-GAAP adjustment to tax expense associated with debt restructuring for the acquisition of Omega | 46.6 | 0.32 | ||||
Tax effect of non-GAAP adjustments, including quarterly effect on the annual effective tax rate calculation | (11.2 | ) | (0.08 | ) | ||
Adjusted | $ | 320.3 | $ | 2.18 | ||
Diluted weighted average shares outstanding | 146.8 | |||||
For Comparative Purposes* | Net Sales | |||||
Reported | $ | 1,531.6 | ||||
Operating results attributable to held-for-sale businesses | (39.7 | ) | ||||
Adjusted | $ | 1,491.9 | ||||
*2015 net sales adjustment made for 2016 adjusted net sales comparison purposes only and does not change any other prior year financial information or metrics as businesses were not held-for-sale in 2015. |
TABLE II | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
July 2, 2016 | June 27, 2015 | |||||||||||||||||||
Consumer Healthcare (CHC) | Net Sales | Gross Profit | Operating Income (Loss) | Net Sales | Gross Profit | Operating Income | ||||||||||||||
Reported | $ | 686.3 | $ | 230.3 | $ | 111.2 | $ | 746.4 | $ | 258.3 | $ | 143.3 | ||||||||
Adjustments: | ||||||||||||||||||||
Amortization expense related to acquired intangible assets | — | 13.0 | 19.0 | 10.2 | 16.3 | |||||||||||||||
Impairment charges | — | — | 6.2 | — | 0.4 | |||||||||||||||
Operating results attributable to held-for-sale business | (42.1 | ) | (7.2 | ) | (3.1 | ) | — | — | ||||||||||||
Restructuring charges | — | — | 0.3 | — | (0.4 | ) | ||||||||||||||
Acquisition and integration-related charges | — | (0.1 | ) | (0.1 | ) | — | — | |||||||||||||
Adjusted | $ | 644.2 | $ | 236.0 | $ | 133.5 | $ | 268.5 | $ | 159.6 | ||||||||||
As a % of adjusted net sales (2016) / As a % of reported net sales (2015) | 36.6 | % | 20.7 | % | 36.0 | % | 21.4 | % | ||||||||||||
For Comparative Purposes* | ||||||||||||||||||||
Reported | $ | 746.4 | ||||||||||||||||||
Operating results attributable to held-for-sale businesses* | (39.6 | ) | ||||||||||||||||||
Adjusted | $ | 706.8 | ||||||||||||||||||
*Q2 2015 net sales adjustment made for Q2 2016 adjusted net sales comparison purposes only and does not change any other prior year financial information or metrics since the VMS business was not held-for-sale in 2015. Q2 2015 gross margin and operating margin use reported net sales as the denominator. | ||||||||||||||||||||
TABLE II (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
July 2, 2016 | June 27, 2015 | |||||||||||||||||||
Branded Consumer Healthcare (BCH) | Net Sales | Gross Profit | Operating Income (Loss) | Net Sales | Gross Profit | Operating Income | ||||||||||||||
Reported | $ | 393.7 | $ | 173.1 | $ | 38.4 | $ | 401.2 | $ | 190.1 | $ | 26.6 | ||||||||
Adjustments: | ||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | — | 12.8 | 41.3 | 7.0 | 34.1 | |||||||||||||||
Impairment charges | — | — | (30.3 | ) | — | — | ||||||||||||||
Amortization of inventory fair value adjustments related to acquisitions | — | — | — | 15.6 | 15.6 | |||||||||||||||
Operating results attributable to held-for-sale business | (0.1 | ) | 0.6 | 4.7 | — | — | ||||||||||||||
Restructuring charges | — | — | 4.8 | — | — | |||||||||||||||
Acquisition and integration-related charges | — | — | (0.2 | ) | — | 0.7 | ||||||||||||||
Adjusted | $ | 393.6 | $ | 186.5 | $ | 58.7 | $ | 212.7 | $ | 77.0 | ||||||||||
As a % of adjusted net sales (2016) / As a % of reported net sales (2015) | 47.4 | % | 14.9 | % | 53.0 | % | 19.2 | % | ||||||||||||
For Comparative Purposes* | ||||||||||||||||||||
Reported | $ | 401.2 | ||||||||||||||||||
Operating results attributable to held-for-sale business | (0.1 | ) | ||||||||||||||||||
Adjusted | $ | 401.1 | ||||||||||||||||||
CHC and BCH Net Sales | Consolidated Net Sales | Consumer-Facing as a % of Net Sales | ||||||||||||||||||
Reported | $ | 1,080.0 | $ | 1,481.0 | 73 | % | ||||||||||||||
Operating results attributable to held-for-sale businesses** | $ | (42.2 | ) | (43.6 | ) | |||||||||||||||
Adjusted | $ | 1,037.8 | $ | 1,437.4 | 72 | % | ||||||||||||||
*Q2 2015 net sales adjustment made for Q2 2016 adjusted net sales comparison purposes only and does not change any other prior year financial information or metrics since the Etixx business was not held-for-sale in 2015. Q2 2015 gross margin and operating margin use reported net sales as the denominator. | ||||||||||||||||||||
** Held-for-sale businesses include the U.S. VMS business and Etixx brand. | ||||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
July 2, 2016 | June 27, 2015 | ||||||||||||||||||
Prescription Pharmaceuticals (Rx) | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 293.3 | $ | 139.3 | $ | 96.8 | $ | 278.3 | $ | 161.4 | $ | 99.5 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related to acquired intangible assets | 29.8 | 29.9 | 18.8 | 18.8 | |||||||||||||||
Initial payment made in connection with an R&D arrangement | — | — | — | 18.0 | |||||||||||||||
Restructuring charges | — | — | — | 0.3 | |||||||||||||||
Acquisition and integration-related charges | — | — | — | 1.1 | |||||||||||||||
Adjusted | $ | 169.1 | $ | 126.7 | $ | 180.2 | $ | 137.7 | |||||||||||
As a % of reported net sales | 57.6 | % | 43.2 | % | 64.8 | % | 49.5 | % | |||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
July 2, 2016 | June 27, 2015 | ||||||||||||||||||
Specialty Sciences | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 89.9 | $ | 17.0 | $ | 13.3 | $ | 83.6 | $ | 11.1 | $ | 6.4 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related to acquired intangible assets | 72.8 | 72.8 | 72.5 | 72.8 | |||||||||||||||
Adjusted | $ | 89.8 | $ | 86.1 | $ | 83.6 | $ | 79.2 | |||||||||||
As a % of reported net sales | 100.0 | % | 95.8 | % | 100.0 | % | 94.8 | % | |||||||||||
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
CONSTANT CURRENCY | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
July 2, 2016 | June 27, 2015 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated* | $ | 1,437.4 | $ | 1,491.9 | (4)% | 1% | (3)% | ||||||
CHC* | 644.2 | 706.8 | (9)% | 1% | (8)% | ||||||||
BCH* | 393.6 | 401.1 | (2)% | —% | (2)% | ||||||||
Rx | 293.3 | 278.3 | 5% | 1% | 6% | ||||||||
Specialty Sciences | 89.9 | 83.6 | 7% | —% | 7% | ||||||||
*2016 and 2015 net sales are adjusted to exclude sales attributable to held-for-sale businesses. See Tables I and II for non-GAAP reconciliations. |
TABLE IV | ||||
PERRIGO COMPANY PLC | ||||
RECONCILIATION OF NON-GAAP MEASURES | ||||
CURRENT 2016 GUIDANCE | ||||
(in millions, except per share amounts) | ||||
(unaudited) | ||||
Full Year | ||||
2016 EPS Guidance | ||||
Reported 2016 Guidance Diluted EPS Range | $0.26 - $0.56 | |||
Amortization expense related primarily to acquired intangible assets | 4.50 | |||
Goodwill, intangible asset, investment and held-for-sale impairment charges | 3.29 | |||
Integration and restructuring-related charges | 0.27 | |||
Other (1) | 0.09 | |||
Tax effect of non-GAAP adjustments | (1.56) | |||
Adjusted 2016 Guidance Diluted EPS Range | $6.85 - $7.15 | |||
(1) | Equity method investment losses, results of operations from held-for-sale businesses, and loss on early debt extinguishment | |||