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 expense related primarily to acquired intangible assets |
• | Restructuring charges related to organizational improvements |
• | Impairment charges |
• | Operating results attributable to held-for-sale businesses |
• | Tysabri® royalty stream - change in fair value |
• | Acquisition and integration-related expense (income) |
• | Gain on divestitures |
• | Contributions from Entocort |
• | Impact of exited European distribution businesses |
• | Non-GAAP tax adjustments |
• | Impairment charges |
• | Amortization expense related primarily to acquired intangible assets |
• | Tysabri® royalty stream - change in fair value |
• | Restructuring charges related to organizational improvements |
• | Acquisition and integration-related expense (income) |
• | Equity method investment losses |
• | Contributions from Entocort |
• | Impact of exited European distribution businesses |
• | Operating results attributable to held-for-sale businesses |
• | Loss on debt extinguishment |
• | Non-GAAP tax adjustments |
• | Amortization expense related primarily to acquired intangible assets |
• | Restructuring charges related to organizational improvements |
• | Impairment charges |
• | Loss on debt extinguishment |
• | Acquisition and integration-related expense (income) |
• | Operating results attributable to held-for-sale businesses |
• | Tysabri® royalty stream |
• | Gain on divestitures |
• | Tax effect of pretax Non-GAAP adjustments |
(d) | Exhibits |
99.1 | Press Release issued by Perrigo Company plc on May 30, 2017, furnished solely pursuant to Item 2.02 of Form 8-K. |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Ronald L. Winowiecki | |||
Dated: | May 30, 2017 | Ronald L. Winowiecki | ||
Acting Chief Financial Officer | ||||
99.1 | Press Release issued by Perrigo Company plc on May 30, 2017, furnished solely pursuant to Item 2.02 of Form 8-K. |
• | Delivered first quarter 2017 GAAP ("reported") net sales of $1.2 billion, led by consumer-facing businesses net sales of $958 million |
• | Realized first quarter reported net income of $72 million and reported earnings per share ("EPS") of $0.50 |
• | Achieved adjusted net income of $150 million and adjusted diluted EPS of $1.05 |
• | First quarter cash flow from operations was $195 million; cash flow from operations of 272% as a percentage to net income and 130% as a percentage to adjusted net income |
• | CHCI profit improvement plan yielding positive results |
• | The Company expects calendar year 2017 reported diluted EPS to be in the range of $1.82 to $2.17 and reaffirms adjusted diluted EPS to be in the range of $4.15 to $4.50 |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | |||||||
4/1/2017 | 4/2/2016 | % change | % Change | |||||||
Reported Net Sales | $1,194 | $1,347 | (11 | )% | ||||||
Reported Net Income (Loss) | $72 | $(529) | (114 | )% | ||||||
Reported Diluted Earnings (Loss) per Share | $0.50 | $(3.70) | (114 | )% | ||||||
Reported Diluted Shares | 143.6 | 143.2 | NM | |||||||
Adjusted Net Sales(1) | N/A | $1,300 | (8 | )% | (6 | )% | ||||
Adjusted Net Income | $150 | $189 | (21 | )% | ||||||
Adjusted Diluted Earnings per Share | $1.05 | $1.32 | (20 | )% | ||||||
Adjusted Diluted Shares | N/A | 143.6 | NM |
(1) | First quarter 2016 net sales have been adjusted to exclude approximately $47 million of sales attributable to divested businesses, primarily the U.S. VMS business. |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
4/1/2017 | 4/2/2016 | % change | % Change | ||||||||
Reported Net Sales | $583 | $639 | (9 | )% | |||||||
Reported Gross Profit | $188 | $196 | (4 | )% | |||||||
Reported Gross Margin | 32.3 | % | 30.7 | % | 160 bps | ||||||
Reported Operating Income | $75 | $101 | (25 | )% | |||||||
Reported Operating Margin | 12.9 | % | 15.7 | % | (280) bps | ||||||
Adjusted Net Sales(1) | N/A | $592 | (2 | )% | (1 | )% | |||||
Adjusted Gross Profit | $201 | $205 | (2 | )% | |||||||
Adjusted Gross Margin(2) | 34.5 | % | 34.6 | % | (10) bps | ||||||
Adjusted Operating Income | $118 | $121 | (3 | )% | |||||||
Adjusted Operating Margin(2) | 20.2 | % | 20.4 | % | (20) bps |
(1) | First quarter 2016 net sales have been adjusted to exclude approximately $47 million of sales attributable to the U.S. VMS business, which was sold in the third quarter 2016. |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
4/1/2017 | 4/2/2016 | % change | % Change | ||||||||
Reported Net Sales | $375 | $439 | (15)% | (10 | )% | ||||||
Reported Gross Profit | $170 | $199 | (15)% | ||||||||
Reported Gross Margin | 45.2 | % | 45.4 | % | (20) bps | ||||||
Reported Operating Income (Loss) | $0 | $(396) | (100)% | ||||||||
Reported Operating Margin | 0.1 | % | (90.2 | )% | NM | ||||||
Adjusted Gross Profit | $190 | $212 | (10)% | ||||||||
Adjusted Gross Margin | 50.7 | % | 48.3 | % | 240 | bps | |||||
Adjusted Operating Income | $52 | $55 | (6)% | ||||||||
Adjusted Operating Margin | 13.8 | % | 12.5 | % | 130 | bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
4/1/2017 | 4/2/2016 | % change | % Change | ||||||||
Reported Net Sales | $217 | $248 | (12 | )% | (12 | )% | |||||
Reported Gross Profit | $96 | $128 | (25 | )% | |||||||
Reported Gross Margin | 44.3 | % | 51.5 | % | (720) bps | ||||||
Reported Operating Income | $88 | $91 | (4 | )% | |||||||
Reported Operating Margin | 40.5 | % | 36.8 | % | 370 bps | ||||||
Adjusted Gross Profit | $118 | $153 | (23 | )% | |||||||
Adjusted Gross Margin | 54.4 | % | 61.7 | % | (730) bps | ||||||
Adjusted Operating Income | $89 | $117 | (24 | )% | |||||||
Adjusted Operating Margin | 41.0 | % | 47.1 | % | (610) bps |
Three Months Ended | |||||||
April 1, 2017 | April 2, 2016 | ||||||
Net sales | $ | 1,194.0 | $ | 1,347.3 | |||
Cost of sales | 729.6 | 814.2 | |||||
Gross profit | 464.4 | 533.1 | |||||
Operating expenses | |||||||
Distribution | 21.1 | 21.8 | |||||
Research and development | 39.8 | 45.3 | |||||
Selling | 155.0 | 180.8 | |||||
Administration | 105.4 | 107.5 | |||||
Impairment charges | 12.2 | 403.9 | |||||
Restructuring | 38.7 | 5.4 | |||||
Other operating income | (36.3 | ) | — | ||||
Total operating expenses | 335.9 | 764.7 | |||||
Operating income (loss) | 128.5 | (231.6 | ) | ||||
Tysabri® royalty stream | (17.1 | ) | 204.4 | ||||
Interest expense, net | 53.3 | 51.2 | |||||
Other (income) expense, net | (3.5 | ) | 2.5 | ||||
Loss on extinguishment of debt | — | 0.4 | |||||
Income (loss) before income taxes | 95.8 | (490.1 | ) | ||||
Income tax expense | 24.2 | 39.1 | |||||
Net income (loss) | $ | 71.6 | $ | (529.2 | ) | ||
Earnings (loss) per share | |||||||
Basic | $ | 0.50 | $ | (3.70 | ) | ||
Diluted | $ | 0.50 | $ | (3.70 | ) | ||
Weighted-average shares outstanding | |||||||
Basic | 143.4 | 143.2 | |||||
Diluted | 143.6 | 143.2 | |||||
Dividends declared per share | $ | 0.160 | $ | 0.145 |
April 1, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 3,077.8 | $ | 622.3 | |||
Accounts receivable, net of allowance for doubtful accounts of $6.0 million and $6.3 million, respectively | 1,050.2 | 1,176.0 | |||||
Inventories | 800.2 | 795.0 | |||||
Prepaid expenses and other current assets | 185.2 | 212.0 | |||||
Total current assets | 5,113.4 | 2,805.3 | |||||
Property, plant and equipment, net | 875.3 | 870.1 | |||||
Tysabri® royalty stream | — | 2,350.0 | |||||
Goodwill and other indefinite-lived intangible assets | 4,178.0 | 4,163.9 | |||||
Other intangible assets, net | 3,341.4 | 3,396.8 | |||||
Non-current deferred income taxes | 76.4 | 72.1 | |||||
Other non-current assets | 394.9 | 211.9 | |||||
Total non-current assets | 8,866.0 | 11,064.8 | |||||
Total assets | $ | 13,979.4 | $ | 13,870.1 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 476.3 | $ | 471.7 | |||
Payroll and related taxes | 146.0 | 115.8 | |||||
Accrued customer programs | 348.2 | 380.3 | |||||
Accrued liabilities | 281.6 | 263.3 | |||||
Accrued income taxes | 57.7 | 32.4 | |||||
Current indebtedness | 1,175.4 | 572.8 | |||||
Total current liabilities | 2,485.2 | 1,836.3 | |||||
Long-term debt, less current portion | 4,618.9 | 5,224.5 | |||||
Non-current deferred income taxes | 349.4 | 389.9 | |||||
Other non-current liabilities | 458.6 | 461.8 | |||||
Total non-current liabilities | 5,426.9 | 6,076.2 | |||||
Total liabilities | 7,912.1 | 7,912.5 | |||||
Shareholders’ equity | |||||||
Controlling interest: | |||||||
Preferred shares, $0.0001 par value, 10 million shares authorized | — | — | |||||
Ordinary shares, €0.001 par value, 10 billion shares authorized | 8,118.1 | 8,135.0 | |||||
Accumulated other comprehensive (loss) | (26.3 | ) | (81.8 | ) | |||
Retained earnings (accumulated deficit) | (2,024.0 | ) | (2,095.1 | ) | |||
Total controlling interest | 6,067.8 | 5,958.1 | |||||
Noncontrolling interest | (0.5 | ) | (0.5 | ) | |||
Total shareholders’ equity | 6,067.3 | 5,957.6 | |||||
Total liabilities and shareholders' equity | $ | 13,979.4 | $ | 13,870.1 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Ordinary shares, issued and outstanding | 143.4 | 143.4 |
Three Months Ended | |||||||
April 1, 2017 | April 2, 2016 | ||||||
Cash Flows From (For) Operating Activities | |||||||
Net income (loss) | $ | 71.6 | $ | (529.2 | ) | ||
Adjustments to derive cash flows | |||||||
Depreciation and amortization | 109.4 | 109.7 | |||||
Share-based compensation | 6.1 | 15.8 | |||||
Impairment charges | 12.2 | 403.9 | |||||
Tysabri® royalty stream | (17.1 | ) | 204.4 | ||||
Loss on extinguishment of debt | — | 0.4 | |||||
Restructuring charges | 38.7 | 5.4 | |||||
Deferred income taxes | (46.0 | ) | (178.3 | ) | |||
Amortization of debt discount (premium) | (6.4 | ) | (6.7 | ) | |||
Other non-cash adjustments | (1.1 | ) | 1.6 | ||||
Subtotal | 167.4 | 27.0 | |||||
Increase (decrease) in cash due to: | |||||||
Accounts receivable | 50.1 | 17.3 | |||||
Inventories | 0.5 | 4.4 | |||||
Accounts payable | 2.5 | (3.2 | ) | ||||
Payroll and related taxes | (10.1 | ) | (37.4 | ) | |||
Accrued customer programs | (32.7 | ) | (81.7 | ) | |||
Accrued liabilities | 2.3 | (12.8 | ) | ||||
Accrued income taxes | 41.4 | 185.7 | |||||
Other | (26.9 | ) | (0.8 | ) | |||
Subtotal | 27.1 | 71.5 | |||||
Net cash from (for) operating activities | 194.5 | 98.5 | |||||
Cash Flows From (For) Investing Activities | |||||||
Proceeds from royalty rights - at fair value | 85.3 | 83.4 | |||||
Acquisitions of businesses, net of cash acquired | — | (416.4 | ) | ||||
Additions to property and equipment | (22.0 | ) | (34.7 | ) | |||
Proceeds from sale of business and other assets | 25.3 | — | |||||
Proceeds from sale of the Tysabri® royalty stream | 2,200.0 | — | |||||
Other investing | (0.8 | ) | (1.0 | ) | |||
Net cash from (for) investing activities | 2,287.8 | (368.7 | ) | ||||
Cash Flows From (For) Financing Activities | |||||||
Issuances of long-term debt | — | 1,190.3 | |||||
Payments on long-term debt | (13.6 | ) | (14.3 | ) | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | 0.3 | (715.9 | ) | ||||
Deferred financing fees | (0.4 | ) | (1.5 | ) | |||
Issuance of ordinary shares | — | 3.1 | |||||
Cash dividends | (23.0 | ) | (20.8 | ) | |||
Other financing | (0.5 | ) | (3.5 | ) | |||
Net cash from (for) financing activities | (37.2 | ) | 437.4 | ||||
Effect of exchange rate changes on cash and cash equivalents | 10.4 | 3.9 | |||||
Net increase in cash and cash equivalents | 2,455.5 | 171.1 | |||||
Cash and cash equivalents, beginning of period | 622.3 | 417.8 | |||||
Cash and cash equivalents, end of period | $ | 3,077.8 | $ | 588.9 |
TABLE I | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended April 1, 2017 | |||||||||
Consolidated | Net Sales | Net Income | Diluted Earnings per Share | ||||||
Reported | $ | 1,194.0 | $ | 71.6 | $ | 0.50 | |||
Adjustments: | |||||||||
Amortization expense related primarily to acquired intangible assets | 86.6 | 0.61 | |||||||
Restructuring charges | 38.7 | 0.27 | |||||||
Impairment charges | 12.2 | 0.08 | |||||||
Operating results attributable to held-for-sale business* | 1.7 | 0.01 | |||||||
Tysabri® royalty stream | (17.1 | ) | (0.12 | ) | |||||
Acquisition and integration-related expense (income) | (14.3 | ) | (0.10 | ) | |||||
Gain on divestitures | (21.8 | ) | (0.15 | ) | |||||
Non-GAAP tax adjustments*** | (7.5 | ) | (0.05 | ) | |||||
Adjusted | $ | 150.1 | $ | 1.05 | |||||
Diluted weighted average shares outstanding | |||||||||
Reported | 143.6 | ||||||||
*Held-for-sale business includes the India API business. | |||||||||
*** The non-GAAP tax adjustment includes the following: (1) $(27.2) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $(8.1) million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; (3) $35.5 net impact related to valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures; and (4) $(7.7) million of tax adjustments related to the divestiture of Tysabri®. |
TABLE I (CONTINUED) | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended April 2, 2016 | |||||||||
Consolidated | Net Sales | Net Income (Loss) | Diluted Earnings (Loss) per Share | ||||||
Reported | $ | 1,347.3 | $ | (529.2 | ) | $ | (3.70 | ) | |
Adjustments: | |||||||||
Impairment charges | $ | — | $ | 403.9 | $ | 2.82 | |||
Tysabri® royalty stream | — | 204.4 | 1.43 | ||||||
Amortization expense primarily related to acquired intangible assets | — | 86.9 | 0.62 | ||||||
Acquisition and integration-related expense (income) | — | 12.0 | 0.08 | ||||||
Restructuring charges | — | 5.4 | 0.04 | ||||||
Losses from equity method investments | — | 2.4 | 0.02 | ||||||
Operating results attributable to held-for-sale businesses* | (47.4 | ) | (2.2 | ) | (0.02 | ) | |||
Loss on debt extinguishment | — | 0.4 | — | ||||||
Non-GAAP tax adjustments*** | — | 4.9 | 0.03 | ||||||
Adjusted | $ | 1,299.9 | $ | 188.9 | $ | 1.32 | |||
Diluted weighted average shares outstanding | |||||||||
Reported | 143.2 | ||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.4 | ||||||||
Adjusted | 143.6 | ||||||||
*Held-for-sale businesses include the U.S. VMS business and India API business. | |||||||||
**In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |||||||||
*** The non-GAAP tax adjustment includes the following: (1) $(177.4) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) $182.3 million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
TABLE II | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
April 1, 2017 | April 2, 2016 | ||||||||||||||||||
Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 582.8 | $ | 188.4 | $ | 75.0 | $ | 639.1 | $ | 196.0 | $ | 100.6 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | 12.4 | 17.1 | — | 12.8 | 18.1 | ||||||||||||||
Impairment charges | — | — | — | — | — | ||||||||||||||
Operating results attributable to held-for-sale business* | — | — | (47.1 | ) | (7.0 | ) | (2.5 | ) | |||||||||||
Restructuring charges | — | 23.7 | — | — | 1.5 | ||||||||||||||
Acquisition and integration-related charges | — | 1.7 | — | 2.8 | 3.0 | ||||||||||||||
Adjusted | $ | 200.8 | $ | 117.5 | $ | 592.0 | $ | 204.6 | $ | 120.7 | |||||||||
As a % of reported net sales (2017) / As a % of adjusted net sales (2016) | 34.5 | % | 20.2 | % | 34.6 | % | 20.4 | % | |||||||||||
*Held-for-sale business was the U.S. VMS business, which was sold in Q3 2016. | |||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
April 1, 2017 | April 2, 2016 | ||||||||||||||||||
Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 374.9 | $ | 169.5 | $ | 0.2 | $ | 439.4 | $ | 199.3 | $ | (396.4 | ) | ||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | 20.1 | 46.9 | 13.1 | 42.9 | |||||||||||||||
Impairment charges | — | 1.1 | — | 403.9 | |||||||||||||||
Operating results attributable to held-for-sale business* | 0.5 | 0.5 | — | — | |||||||||||||||
Restructuring charges | — | 2.9 | — | 3.1 | |||||||||||||||
Acquisition and integration-related charges | — | — | — | 1.3 | |||||||||||||||
Adjusted | $ | 190.1 | $ | 51.6 | $ | 212.4 | $ | 54.8 | |||||||||||
As a % of reported net sales | 50.7 | % | 13.8 | % | 48.3 | % | 12.5 | % | |||||||||||
*Held-for-sale business is the European sports brand, which was sold in Q4 2016. | |||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
April 1, 2017 | April 2, 2016 | ||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 217.4 | $ | 96.3 | $ | 88.2 | $ | 248.2 | $ | 127.9 | $ | 91.4 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related to acquired intangible assets | 22.0 | 22.1 | 25.2 | 25.5 | |||||||||||||||
Gain on divestitures | — | (21.8 | ) | — | — | ||||||||||||||
Restructuring charges | — | 5.6 | — | — | |||||||||||||||
Impairment charges | — | 11.1 | — | — | |||||||||||||||
Acquisition and integration-related charges | — | (16.1 | ) | — | — | ||||||||||||||
Adjusted | $ | 118.3 | $ | 89.1 | $ | 153.1 | $ | 116.9 | |||||||||||
As a % of reported net sales | 54.4 | % | 41.0 | % | 61.7 | % | 47.1 | % | |||||||||||
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
CONSTANT CURRENCY | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
April 1, 2017 | April 2, 2016 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated* | $ | 1,194.0 | $ | 1,299.9 | (8)% | 2% | (6)% | ||||||
CHCA* | 582.8 | 592.0 | (2)% | 1% | (1)% | ||||||||
CHCI | 374.9 | 439.4 | (15)% | 5% | (10)% | ||||||||
RX | 217.4 | 248.2 | (12)% | —% | (12)% | ||||||||
*2016 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 | |||
2017 GUIDANCE | |||
(unaudited) | |||
Full Year | |||
2017 EPS Guidance | |||
Reported | $1.82 - $2.17 | ||
Amortization expense related primarily to acquired intangible assets | 2.45 | ||
Restructuring charges | 0.32 | ||
Loss on early debt extinguishment | 0.12 | ||
Impairments | 0.08 | ||
Operating results attributable to held-for-sale business* | 0.01 | ||
Acquisition and integration-related expense (income) | (0.09) | ||
Tysabri® royalty stream | (0.12) | ||
Gain on divestitures | (0.15) | ||
Tax effect of non-GAAP adjustments (1) | (0.29) | ||
Adjusted | $4.15 - $4.50 | ||
(1) | Includes tax effect of pretax non-GAAP adjustments calculated based upon the specific rate of the applicable jurisdiction of the pretax item and certain adjustments for discrete tax items in the first nine months of the year. | ||
*Held-for-sale business includes the India API business. | |||
TABLE V | ||||||
PERRIGO COMPANY PLC | ||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||
EXCLUDING BELGIAN DISTRIBUTION SALES | ||||||
(in millions) | ||||||
(unaudited) | ||||||
Consolidated | ||||||
Q1 2017 consolidated reported net sales | $ | 1,194.0 | ||||
Less Belgium Distribution net sales | (10.6 | ) | ||||
Less Entocort net sales | (4.4 | ) | ||||
Q1 2017 CHCI net sales excluding Belgium Distribution business | 1,179.0 | |||||
Q1 2016 consolidated adjusted net sales | $ | 1,299.9 | ||||
Less Belgium Distribution net sales | (48.8 | ) | ||||
Less Entocort net sales | (29.7 | ) | ||||
Q1 2016 consolidated adjusted net sales excluding Belgium Distribution business | 1,221.4 | |||||
Total change | (3 | )% | ||||
Less FX change | 1 | % | ||||
Change excluding impact of FX | (2 | )% | ||||
CHCI | ||||||
Q1 2017 CHCI reported net sales | $ | 374.9 | ||||
Less Belgium Distribution net sales | (10.6 | ) | ||||
Q1 2017 CHCI net sales excluding Belgium Distribution business | 364.3 | |||||
Q1 2016 CHCI reported net sales | $ | 439.4 | ||||
Less Belgium Distribution net sales | (48.8 | ) | ||||
Q1 2016 CHCI net sales excluding Belgium Distribution business | 390.6 | |||||
Total change | (7 | )% | ||||
Less FX change | 5 | % | ||||
Change excluding impact of FX | (2 | )% |
TABLE VI | ||||||||||
PERRIGO COMPANY PLC | ||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
(in millions) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
April 1, 2017 | April 2, 2016 | |||||||||
Rx reported net sales | $ | 217.4 | $ | 248.2 | ||||||
Less Entocort | (4.4 | ) | (29.7 | ) | ||||||
Rx net sales excluding Entocort | $ | 213.0 | $ | 218.5 | ||||||
Rx adjusted operating income | $ | 89.1 | $ | 116.9 | ||||||
Entocort: | ||||||||||
Reported Entocort operating income | $ | 3.3 | $ | 1.8 | ||||||
Add back: amortization expense | 0.5 | 26.2 | ||||||||
Adjusted operating income attributable to Entocort | 3.8 | 28.0 | ||||||||
Rx adjusted operating income less contribution from Entocort | $ | 85.3 | $ | 88.9 | ||||||
Rx operating margin excluding Entocort | 40.1 | % | 40.7 | % | ||||||
Consumer-facing businesses | ||||||||||
CHCA reported net sales | $ | 582.8 | ||||||||
CHCI reported net sales | 374.9 | |||||||||
Total consumer-facing businesses | $ | 957.7 | ||||||||
Three Months Ended | ||||||||||
April 1, 2017 | ||||||||||
Consolidated | ||||||||||
Operating cash flow | $ | 194.5 | ||||||||
Adjusted net income | $ | 150.1 | ||||||||
Cash conversion ratio | 130 | % | ||||||||
TABLE VII | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
April 1, 2017 | April 2, 2016 | Total Change | |||||||
Consolidated adjusted EPS | $ | 1.05 | $ | 1.32 | (20)% | ||||
Consolidated adjusted net income | $ | 150.1 | $ | 188.9 | (21)% | ||||
Adjusted operating income | |||||||||
CHCA | $ | 117.5 | $ | 120.7 | (3)% | ||||
CHCI | 51.6 | 54.8 | (6)% | ||||||
RX | 89.1 | 116.9 | (24)% | ||||||
Adjusted operating margin | |||||||||
CHCA | 20.2 | % | 20.4 | % | (20) bps | ||||
CHCI | 13.8 | % | 12.5 | % | 130 bps | ||||
RX | 41.0 | % | 47.1 | % | (610) bps | ||||
Adjusted gross profit | |||||||||
CHCA | $ | 200.8 | $ | 204.6 | (2)% | ||||
CHCI | 190.1 | 212.4 | (10)% | ||||||
RX | 118.3 | 153.1 | (23)% | ||||||
Adjusted gross margin | |||||||||
CHCA | 34.5 | % | 34.6 | % | (10) bps | ||||
CHCI | 50.7 | % | 48.3 | % | 240 bps | ||||
RX | 54.4 | % | 61.7 | % | (730) bps |