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 |
• | Change in financial assets |
• | Losses on equity investments |
• | Restructuring charges and other termination benefits |
• | Gain on divestitures |
• | Acquisition charges and contingent consideration adjustments |
• | Foreign currency translation movement |
• | Non-GAAP tax adjustments |
• | Amortization expense primarily related to acquired intangible assets |
• | Change in financial assets |
• | Acquisition charges and contingent consideration adjustments |
• | Impairment charges |
• | Gain on divestitures |
• | Operating results attributable to held-for-sale businesses |
• | Restructuring charges and other termination benefits |
• | Belgium distribution net sales |
• | Russia business net sales |
• | API net sales |
• | Foreign currency translation movement |
• | Non-GAAP tax adjustments |
• | Amortization expense related primarily to acquired intangible assets |
• | Restructuring charges and other termination benefits |
• | Change in financial assets |
• | Losses on equity investments |
• | Acquisition charges and contingent consideration adjustments |
• | Gain on divestitures |
• | Tax effect of pretax Non-GAAP adjustments |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Ronald L. Winowiecki | |||
Dated: | May 8, 2018 | Ronald L. Winowiecki | ||
Chief Financial Officer | ||||
• | Realized first quarter 2018 GAAP ("reported") net sales of $1.2 billion, reported net income of $81 million compared to $72 million last year, an increase of 12.9%, and reported diluted earnings per share ("EPS") of $0.57 compared to $0.50 last year, an increase of 14.6% |
• | Delivered first quarter adjusted net income of $178 million compared to $150 million last year, an increase of 18.8%, and adjusted diluted EPS of $1.26 compared to $1.05 last year, an increase of 20.6% |
• | CHC Americas segment achieved first quarter net sales of $602 million, an increase of 3.2% versus last year, or growth of 3.0% on a constant currency basis |
• | CHC International segment delivered first quarter net sales of $401 million, an increase of 7.0% versus last year; net sales grew 1.4% versus last year on a constant currency basis, excluding $22 million in net sales from the exited Russian and unprofitable distribution businesses in 2017 |
• | RX segment realized first quarter net sales of $214 million and reported operating margin of 28.9%, while delivering an adjusted operating margin of 39.9% |
• | First quarter cash flow from operations was $172 million, representing nearly 100% conversion to adjusted net income |
• | Utilized balance sheet flexibility to repurchase approximately 1.3 million shares for approximately $108 million in the quarter |
• | Perrigo Board member Rolf A. Classon appointed Chairman of the Board of Directors; Laurie Brlas to continue to serve as Independent Director; see Corporate Governance section below for detail |
• | The Company expects calendar year 2018 reported diluted EPS to be in the range of $2.90 to $3.30; reconfirms calendar year 2018 adjusted diluted EPS range of $5.05 to $5.45; see Guidance section below for detail |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | |||||||
3/31/2018 | 4/1/2017 | % change | % Change | |||||||
Reported Net Sales | $1,217 | $1,194 | 1.9 | % | (2.3 | )% | ||||
Reported Net Income | $81 | $72 | 12.9 | % | ||||||
Reported Diluted Earnings per Share | $0.57 | $0.50 | 14.6 | % | ||||||
Reported Diluted Shares | 141.4 | 143.6 | (1.5 | )% | ||||||
Adjusted Net Income | $178 | $150 | 18.8 | % | ||||||
Adjusted Diluted Earnings per Share | $1.26 | $1.05 | 20.6 | % |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
3/31/2018 | 4/1/2017 | % change | % Change | ||||||||
Reported Net Sales | $602 | $583 | 3.2 | % | 3.0 | % | |||||
Reported Gross Profit | $200 | $188 | 6.4 | % | |||||||
Reported Gross Margin | 33.3 | % | 32.3 | % | 100 bps | ||||||
Reported Operating Income | $113 | $75 | 50.7 | % | |||||||
Reported Operating Margin | 18.8 | % | 12.9 | % | 590 bps | ||||||
Adjusted Gross Profit | $211 | $201 | 5.0 | % | |||||||
Adjusted Gross Margin | 35.1 | % | 34.5 | % | 60 bps | ||||||
Adjusted Operating Income | $129 | $118 | 9.6 | % | |||||||
Adjusted Operating Margin | 21.4 | % | 20.2 | % | 120 bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | |||||||
3/31/2018 | 4/1/2017 | % change | % Change | |||||||
Reported Net Sales | $401 | $375 | 7.0% | (4.5 | )% | |||||
Reported Gross Profit | $195 | $170 | 14.8% | |||||||
Reported Gross Margin | 48.5 | % | 45.2 | % | 330 bps | |||||
Reported Operating Income | $15 | $0 | NM | |||||||
Reported Operating Margin | 3.7 | % | 0.1 | % | 360 bps | |||||
Adjusted Gross Profit | $217 | $190 | 14.3% | |||||||
Adjusted Gross Margin | 54.2 | % | 50.7 | % | 350 bps | |||||
Adjusted Operating Income | $68 | $52 | 32.2% | |||||||
Adjusted Operating Margin | 17.0 | % | 13.8 | % | 320 bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
3/31/2018 | 4/1/2017 | % change | % Change | ||||||||
Reported Net Sales | $214 | $217 | (1.5 | )% | (1.6 | )% | |||||
Reported Gross Profit | $98 | $96 | 1.6 | % | |||||||
Reported Gross Margin | 45.7 | % | 44.3 | % | 140 bps | ||||||
Reported Operating Income | $62 | $88 | (29.8 | )% | |||||||
Reported Operating Margin | 28.9 | % | 40.5 | % | (1160) bps | ||||||
Adjusted Gross Profit | $118 | $118 | 0.1 | % | |||||||
Adjusted Gross Margin | 55.3 | % | 54.4 | % | 90 bps | ||||||
Adjusted Operating Income | $86 | $89 | (4.1 | )% | |||||||
Adjusted Operating Margin | 39.9 | % | 41.0 | % | (110) bps |
Three Months Ended | |||||||
March 31, 2018 | April 1, 2017 | ||||||
Net sales | $ | 1,217.0 | $ | 1,194.0 | |||
Cost of sales | 724.3 | 729.6 | |||||
Gross profit | 492.7 | 464.4 | |||||
Operating expenses | |||||||
Distribution | 24.7 | 21.1 | |||||
Research and development | 38.4 | 39.8 | |||||
Selling | 161.3 | 155.0 | |||||
Administration | 107.6 | 105.4 | |||||
Impairment charges | — | 12.2 | |||||
Restructuring | 1.5 | 38.7 | |||||
Other operating loss (income) | 2.9 | (36.3 | ) | ||||
Total operating expenses | 336.4 | 335.9 | |||||
Operating income | 156.3 | 128.5 | |||||
Change in financial assets | 9.6 | (17.1 | ) | ||||
Interest expense, net | 31.4 | 53.3 | |||||
Other expense (income), net | 4.3 | (3.5 | ) | ||||
Loss on extinguishment of debt | 0.5 | — | |||||
Income before income taxes | 110.5 | 95.8 | |||||
Income tax expense | 29.7 | 24.2 | |||||
Net income | $ | 80.8 | $ | 71.6 | |||
Earnings per share | |||||||
Basic | $ | 0.57 | $ | 0.50 | |||
Diluted | $ | 0.57 | $ | 0.50 | |||
Weighted-average shares outstanding | |||||||
Basic | 140.8 | 143.4 | |||||
Diluted | 141.4 | 143.6 | |||||
Dividends declared per share | $ | 0.19 | $ | 0.16 |
March 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 687.3 | $ | 678.7 | |||
Accounts receivable, net of allowance for doubtful accounts of $6.5 million and $6.2 million, respectively | 1,123.4 | 1,130.8 | |||||
Inventories | 843.8 | 806.9 | |||||
Prepaid expenses and other current assets | 246.2 | 203.2 | |||||
Total current assets | 2,900.7 | 2,819.6 | |||||
Property, plant and equipment, net | 829.3 | 833.1 | |||||
Goodwill and other indefinite-lived intangible assets | 4,300.8 | 4,265.7 | |||||
Other intangible assets, net | 3,259.1 | 3,290.5 | |||||
Non-current deferred income taxes | 19.6 | 10.4 | |||||
Other non-current assets | 330.1 | 409.5 | |||||
Total non-current assets | 8,738.9 | 8,809.2 | |||||
Total assets | $ | 11,639.6 | $ | 11,628.8 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 512.2 | $ | 450.2 | |||
Payroll and related taxes | 113.0 | 148.8 | |||||
Accrued customer programs | 438.3 | 419.7 | |||||
Accrued liabilities | 205.3 | 230.8 | |||||
Accrued income taxes | 65.7 | 116.1 | |||||
Current indebtedness | 58.0 | 70.4 | |||||
Total current liabilities | 1,392.5 | 1,436.0 | |||||
Long-term debt, less current portion | 3,280.6 | 3,270.8 | |||||
Non-current deferred income taxes | 332.0 | 321.9 | |||||
Other non-current liabilities | 428.9 | 429.5 | |||||
Total non-current liabilities | 4,041.5 | 4,022.2 | |||||
Total liabilities | 5,434.0 | 5,458.2 | |||||
Commitments and contingencies - Note 14 | |||||||
Shareholders’ equity | |||||||
Controlling interest: | |||||||
Preferred shares, $0.0001 par value per share, 10 shares authorized | — | — | |||||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized | 7,769.5 | 7,892.9 | |||||
Accumulated other comprehensive income | 324.3 | 253.1 | |||||
Retained earnings (accumulated deficit) | (1,888.4 | ) | (1,975.5 | ) | |||
Total controlling interest | 6,205.4 | 6,170.5 | |||||
Noncontrolling interest | 0.2 | 0.1 | |||||
Total shareholders’ equity | 6,205.6 | 6,170.6 | |||||
Total liabilities and shareholders' equity | $ | 11,639.6 | $ | 11,628.8 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Ordinary shares, issued and outstanding | 139.7 | 140.8 |
Three Months Ended | |||||||
March 31, 2018 | April 1, 2017 | ||||||
Cash Flows From (For) Operating Activities | |||||||
Net income | $ | 80.8 | $ | 71.6 | |||
Adjustments to derive cash flows | |||||||
Depreciation and amortization | 109.5 | 109.4 | |||||
Share-based compensation | 12.7 | 6.1 | |||||
Impairment charges | — | 12.2 | |||||
Change in financial assets | 9.6 | (17.1 | ) | ||||
Loss on extinguishment of debt | 0.5 | — | |||||
Restructuring charges | 1.5 | 38.7 | |||||
Deferred income taxes | (7.2 | ) | (46.0 | ) | |||
Amortization of debt premium | (2.1 | ) | (6.4 | ) | |||
Other non-cash adjustments, net | 12.1 | (1.1 | ) | ||||
Subtotal | 217.4 | 167.4 | |||||
Increase (decrease) in cash due to: | |||||||
Accounts receivable | 2.6 | 50.1 | |||||
Inventories | (43.7 | ) | 0.5 | ||||
Accounts payable | 57.5 | 2.5 | |||||
Payroll and related taxes | (38.9 | ) | (10.1 | ) | |||
Accrued customer programs | 17.3 | (32.7 | ) | ||||
Accrued liabilities | (24.0 | ) | 2.3 | ||||
Accrued income taxes | 6.4 | 41.4 | |||||
Other, net | (22.2 | ) | (26.9 | ) | |||
Subtotal | (45.0 | ) | 27.1 | ||||
Net cash from operating activities | 172.4 | 194.5 | |||||
Cash Flows From (For) Investing Activities | |||||||
Proceeds from royalty rights | 10.0 | 85.3 | |||||
Additions to property, plant and equipment | (13.4 | ) | (22.0 | ) | |||
Net proceeds from sale of business and other assets | 1.3 | 25.3 | |||||
Proceeds from sale of the Tysabri® financial asset | — | 2,200.0 | |||||
Other investing, net | — | (0.8 | ) | ||||
Net cash from (for) investing activities | (2.1 | ) | 2,287.8 | ||||
Cash Flows From (For) Financing Activities | |||||||
Issuances of long-term debt | 431.0 | — | |||||
Payments on long-term debt | (444.5 | ) | (13.6 | ) | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | (6.2 | ) | 0.3 | ||||
Deferred financing fees | (2.4 | ) | (0.4 | ) | |||
Repurchase of ordinary shares | (108.1 | ) | — | ||||
Cash dividends | (26.7 | ) | (23.0 | ) | |||
Other financing, net | (5.7 | ) | (0.5 | ) | |||
Net cash (for) financing activities | (162.6 | ) | (37.2 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 0.9 | 10.4 | |||||
Net increase (decrease) in cash and cash equivalents | 8.6 | 2,455.5 | |||||
Cash and cash equivalents, beginning of period | 678.7 | 622.3 | |||||
Cash and cash equivalents, end of period | $ | 687.3 | $ | 3,077.8 |
TABLE I | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended March 31, 2018 | |||||||||
Consolidated | Net Sales | Net Income | Diluted Earnings per Share | ||||||
Reported | $ | 1,217.0 | $ | 80.8 | $ | 0.57 | |||
Adjustments: | |||||||||
Amortization expense related primarily to acquired intangible assets | $ | 88.5 | $ | 0.62 | |||||
Change in financial assets | 9.6 | 0.07 | |||||||
Restructuring charges and other termination benefits | 5.5 | 0.04 | |||||||
Losses on equity investments | 4.4 | 0.03 | |||||||
Acquisition charges and contingent consideration adjustments | 4.2 | 0.03 | |||||||
Gain on divestitures | (1.3 | ) | (0.01 | ) | |||||
Non-GAAP tax adjustments* | (13.4 | ) | (0.09 | ) | |||||
Adjusted | $ | 178.3 | $ | 1.26 | |||||
Diluted weighted average shares outstanding | |||||||||
Reported | 141.4 | ||||||||
*The non-GAAP tax adjustments includes $(21.1) 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) $7.7 million net impact related to valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures. |
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 1, 2017 | |||||||||
Consolidated | Net Sales | Net Income | Diluted Earnings per Share | ||||||
Reported | $ | 1,194.0 | $ | 71.6 | $ | 0.50 | |||
Adjustments: | |||||||||
Amortization expense primarily related 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 businesses* | 1.7 | 0.01 | |||||||
Acquisition charges and contingent consideration adjustments | (14.3 | ) | (0.10 | ) | |||||
Change in financial assets | (17.1 | ) | (0.12 | ) | |||||
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 businesses includes the India API business and European sports brand. | |||||||||
** 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 II | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
March 31, 2018 | April 1, 2017 | ||||||||||||||||||
Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 601.6 | $ | 200.4 | $ | 113.1 | $ | 582.8 | $ | 188.4 | $ | 75.0 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 10.5 | $ | 15.2 | $ | 12.4 | $ | 17.1 | |||||||||||
Restructuring charges | — | 0.4 | — | 23.7 | |||||||||||||||
Acquisition charges and contingent consideration adjustments | — | 0.1 | — | 1.7 | |||||||||||||||
Adjusted | $ | 210.9 | $ | 128.8 | $ | 200.8 | $ | 117.5 | |||||||||||
As a % of reported net sales | 35.1 | % | 21.4 | % | 34.5 | % | 20.2 | % | |||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
March 31, 2018 | April 1, 2017 | ||||||||||||||||||
Consumer Healthcare International | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 401.4 | $ | 194.6 | $ | 14.9 | $ | 374.9 | $ | 169.5 | $ | 0.2 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 22.8 | $ | 52.8 | $ | 20.1 | $ | 46.9 | |||||||||||
Impairment charges | — | — | — | 1.1 | |||||||||||||||
Operating results attributable to held-for-sale business* | — | — | 0.5 | 0.5 | |||||||||||||||
Restructuring charges | — | 0.6 | — | 2.9 | |||||||||||||||
Adjusted | $ | 217.4 | $ | 68.3 | $ | 190.1 | $ | 51.6 | |||||||||||
As a % of reported net sales | 54.2 | % | 17.0 | % | 50.7 | % | 13.8 | % | |||||||||||
*Held-for-sale business includes the European sports brand. |
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
March 31, 2018 | April 1, 2017 | ||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 214.0 | $ | 97.8 | $ | 61.9 | $ | 217.4 | $ | 96.3 | $ | 88.2 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 20.6 | $ | 20.6 | $ | 22.1 | $ | 22.2 | |||||||||||
Gain on divestitures | — | (1.3 | ) | — | (21.8 | ) | |||||||||||||
Restructuring charges | — | 0.2 | — | 5.6 | |||||||||||||||
Impairment charges | — | — | — | 11.1 | |||||||||||||||
Acquisition charges and contingent consideration adjustments | — | 4.1 | (0.1 | ) | (16.2 | ) | |||||||||||||
Adjusted | $ | 118.4 | $ | 85.5 | $ | 118.3 | $ | 89.1 | |||||||||||
As a % of reported net sales | 55.3 | % | 39.9 | % | 54.4 | % | 41.0 | % |
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
CONSTANT CURRENCY | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 31, 2018 | April 1, 2017 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated | $ | 1,217.0 | $ | 1,194.0 | 1.9% | (4.2)% | (2.3)% | ||||||
CHCA | 601.6 | 582.8 | 3.2% | (0.2)% | 3.0% | ||||||||
CHCI | 401.4 | 374.9 | 7.0% | (11.5)% | (4.5)% | ||||||||
RX | 214.0 | 217.4 | (1.5)% | (0.1)% | (1.6)% | ||||||||
CHCI | $ | 401.4 | $ | 374.9 | |||||||||
Less: Belgium distribution business and Russian business net sales | — | (21.7 | ) | ||||||||||
$ | 401.4 | $ | 353.2 | 13.6% | (12.3)% | 1.4% | |||||||
TABLE IV | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
2018 CONSOLIDATED GUIDANCE(1) | |||||||||
(unaudited) | |||||||||
Full Year | |||||||||
2018 EPS Guidance(2) | |||||||||
Reported | $2.90 - $3.30 | ||||||||
Amortization expense related primarily to acquired intangible assets | 2.50 | ||||||||
Change in financial assets | 0.07 | ||||||||
Restructuring charges and other termination benefits | 0.04 | ||||||||
Losses on equity investments | 0.03 | ||||||||
Acquisition charges and contingent consideration adjustments | 0.03 | ||||||||
Gain on divestitures | (0.01) | ||||||||
Tax effect of non-GAAP adjustments | (0.51) | ||||||||
Adjusted | $5.05 - $5.45 | ||||||||
(2) Guidance excludes any impact related to the Royalty Pharma contingent milestone payments. | |||||||||
Consolidated Operating Income | |||||||||
Reported | Approx. $669 - $729 million | ||||||||
Amortization expense related primarily to acquired intangible assets | 352 | ||||||||
Restructuring charges and other termination benefits, acquisition-related charges and contingent consideration adjustments | 10 | ||||||||
Gain on divestitures | (1) | ||||||||
Adjusted | Approx. $1,030 - $1,090 million | ||||||||
Effective Tax Rate | Tax expense | Pre-tax income | Effective Tax Rate | ||||||
Reported | $ | 121 | $ | 568 | Approx. 21.3% | ||||
Non-GAAP adjustments | 72 | 374 | |||||||
Adjusted | $ | 193 | $ | 942 | Approx. 20.5% | ||||
(1) Guidance tables include Q1 actual results for all reconciling line items, plus estimated amortization expense and the corresponding tax effect for Q2 - Q4. |
TABLE IV (continued) | |
PERRIGO COMPANY PLC | |
RECONCILIATION OF NON-GAAP MEASURES | |
2018 SEGMENT GUIDANCE(1) | |
(unaudited) | |
Full Year 2018 Guidance | |
Operating margin | |
CHCI(2) | |
Reported | Approx. 2.4% |
Amortization expense related primarily to acquired intangible assets | 13.1% |
Adjusted | Approx. 15.5% |
RX(3) | |
Reported | Approx. 31.7% |
Amortization expense related to acquired intangible assets | 8.0% |
Restructuring charges and acquisition-related items | 0.4% |
Gain on divestitures | (0.1)% |
Adjusted | Approx. 40.0% |
(1) Guidance tables include Q1 actual results for all reconciling line items, plus estimated amortization expense and the corresponding tax effect for Q2 - Q4. | |
(2) Expected to be within +/- 100 basis points. | |
(3) Expected to be within +/- 200 basis points. |
TABLE V | |||
PERRIGO COMPANY PLC | |||
RECONCILIATION OF NON-GAAP MEASURES | |||
(in millions) | |||
(unaudited) | |||
QTD Consolidated net sales excluding Belgium distribution, Russian business, and API net sales, and Fx | |||
Q1 2018 consolidated net sales | $ | 1,217.0 | |
Q1 2017 consolidated net sales | $ | 1,194.0 | |
Less: Fx | 44.5 | ||
Less: Belgium distribution and Russian business net sales | (21.7 | ) | |
Less: API net sales | (19.0 | ) | |
QTD Consolidated net sales excluding Belgium distribution, Russian business, and API net sales and Fx | $ | 1,197.8 | |
Total organic change on a constant currency basis | 1.6 | % |
Three Months Ended | |||
March 31, 2018 | |||
Operating cash flow | $ | 172.4 | |
Adjusted net income | $ | 178.3 | |
Cash conversion ratio | 97 | % |
TABLE VI | ||||||||||
PERRIGO COMPANY PLC | ||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||
(in millions, except per share amounts) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
March 31, 2018 | April 1, 2017 | Total Change | ||||||||
Consolidated adjusted net income | $ | 178.3 | $ | 150.1 | 18.8% | |||||
Consolidated adjusted EPS | 1.26 | 1.05 | 20.6% | |||||||
Adjusted operating income | ||||||||||
CHCA | $ | 128.8 | $ | 117.5 | 9.6% | |||||
CHCI | 68.3 | 51.6 | 32.2% | |||||||
RX | 85.5 | 89.1 | (4.1)% | |||||||
Adjusted operating margin | ||||||||||
CHCA | 21.4 | % | 20.2 | % | 120 bps | |||||
CHCI | 17.0 | % | 13.8 | % | 320 bps | |||||
RX | 39.9 | % | 41.0 | % | (110) bps | |||||
Adjusted gross profit | ||||||||||
CHCA | $ | 210.9 | $ | 200.8 | 5.0% | |||||
CHCI | 217.4 | 190.1 | 14.3% | |||||||
RX | 118.4 | 118.3 | 0.1% | |||||||
Adjusted gross margin | ||||||||||
CHCA | 35.1 | % | 34.5 | % | 60 bps | |||||
CHCI | 54.2 | % | 50.7 | % | 350 bps | |||||
RX | 55.3 | % | 54.4 | % | 90 bps | |||||