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 investment securities |
• | Acquisition-related charges and contingent consideration adjustments |
• | Impairment charges |
• | Restructuring charges and other termination benefits |
• | Separation and reorganization expense |
• | Unusual litigation |
• | Gain/loss on divestitures |
• | Foreign currency translation movement |
• | Animal health net sales |
• | Non-GAAP tax adjustments |
• | Amortization expense primarily related to acquired intangible assets |
• | Change in financial assets |
• | Acquisition-related charges and contingent consideration adjustments |
• | Impairment charges |
• | Gain/loss on divestitures |
• | Restructuring charges and other termination benefits |
• | Operating results attributable to held-for-sale business |
• | Belgium distribution net sales |
• | Russia business net sales |
• | Foreign currency translation movement |
• | Non-GAAP tax adjustments |
• | Animal health net sales |
• | Amortization expense related primarily to acquired intangible assets |
• | Restructuring charges and other termination benefits |
• | Change in financial assets |
• | Acquisition-related charges and contingent consideration adjustments |
• | Gain/loss on divestitures |
• | Impairment charges |
• | Separation and reorganization expense |
• | Losses on investment securities |
• | Unusual litigation |
• | Tax effect of pretax Non-GAAP adjustments |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Ronald L. Winowiecki | |||
Dated: | November 8, 2018 | Ronald L. Winowiecki | ||
Chief Financial Officer | ||||
• | Realized third quarter 2018 GAAP ("reported") net sales of $1.1 billion, reported net loss of $68 million compared to a net income of $45 million last year and reported diluted loss per share of $0.49 compared to net earnings per share ("EPS") of $0.31 last year |
• | Adjusted third quarter net income of $150 million compared to $197 million last year and adjusted diluted EPS of $1.09 versus $1.39 last year |
• | Worldwide Consumer businesses net sales decreased approximately 1% on a reported basis year over year; net sales grew approximately 2% year over year on an organic constant currency basis, excluding the animal health business |
• | CHC Americas segment achieved third quarter net sales of $596 million, flat versus last year on a constant currency basis; CHC Americas grew approximately 3% excluding the animal health business |
• | CHC International segment realized third quarter net sales of $358 million, a decrease of 2% versus last year; net sales increased 1% versus last year on an organic constant currency basis |
• | CHC International segment reported third quarter operating margin of (0.6)%; delivered adjusted operating margin of 18.7% |
• | RX segment realized third quarter net sales of $179 million; Sharon Kochan, who led the Perrigo RX business from 2005-2012, appointed EVP and President of the RX business |
• | Third quarter cash flow from operations was $144 million, representing approximately 96% conversion to adjusted net income |
• | Repurchased approximately 1.8 million shares for approximately $135 million in the quarter; Board of Directors has approved a new share repurchase authorization of up to $1 billion |
• | The Company now expects calendar year 2018 reported diluted EPS to be in the range of $0.66 to $0.86; calendar year 2018 adjusted diluted EPS in the range of to $4.45 to $4.65 primarily due to revised expectations for the RX segment; see Guidance section below for details |
Third Quarter Ended | Third Quarter Ended | YoY | Constant Currency | |||||||
9/29/2018 | 9/30/2017 | % change | % Change | |||||||
Reported Net Sales | $1,133 | $1,231 | (8.0 | )% | ||||||
Reported Net Income (Loss) | $(68) | $45 | NM | |||||||
Reported Diluted Earnings (Loss) per Share | $(0.49) | $0.31 | NM | |||||||
Reported Diluted Shares | 137.4 | 141.7 | (3.0 | )% | ||||||
Adjusted Diluted Shares | 137.9 | NA | NA | |||||||
Adjusted Net Sales(1) | $1,133 | $1,215 | (6.7 | )% | (5.7 | )% | ||||
Adjusted Net Income | $150 | $197 | (24.0 | )% | ||||||
Adjusted Diluted Earnings per Share | $1.09 | $1.39 | (21.9 | )% |
Third Quarter Ended | Third Quarter Ended | YoY | Constant Currency | ||||||||
9/29/2018 | 9/30/2017 | % change | % Change | ||||||||
Reported Net Sales | $596 | $599 | (0.4 | )% | (0.1 | )% | |||||
Reported Gross Profit | $185 | $206 | (10.4 | )% | |||||||
Reported Gross Margin | 31.0 | % | 34.4 | % | (340) bps | ||||||
Reported Operating Income (Loss) | $(124) | $124 | NM | ||||||||
Reported Operating Margin | (20.8 | )% | 20.8 | % | NM | ||||||
Adjusted Gross Profit | $195 | $218 | (10.5 | )% | |||||||
Adjusted Gross Margin | 32.7 | % | 36.4 | % | (370) bps | ||||||
Adjusted Operating Income | $113 | $139 | (18.5 | )% | |||||||
Adjusted Operating Margin | 19.0 | % | 23.2 | % | (420) bps |
Third Quarter Ended | Third Quarter Ended | YoY | Constant Currency | ||||||||
9/29/2018 | 9/30/2017 | % change | % Change | ||||||||
Reported Net Sales | $358 | $365 | (2.1 | )% | 0.6 | % | |||||
Reported Gross Profit | $167 | $166 | 0.5 | % | |||||||
Reported Gross Margin | 46.6 | % | 45.4 | % | 120 bps | ||||||
Reported Operating Income (Loss) | $(2) | $5 | NM | ||||||||
Reported Operating Margin | (0.6 | )% | 1.2 | % | (180) bps | ||||||
Adjusted Gross Profit | $188 | $188 | (0.3 | )% | |||||||
Adjusted Gross Margin | 52.6 | % | 51.4 | % | 120 bps | ||||||
Adjusted Operating Income | $67 | $60 | 11.4 | % | |||||||
Adjusted Operating Margin | 18.7 | % | 16.4 | % | 230 bps |
Third Quarter Ended | Third Quarter Ended | YoY | Constant Currency | ||||||||
9/29/2018 | 9/30/2017 | % change | % Change | ||||||||
Reported Net Sales | $179 | $251 | (28.5 | )% | (28.5 | )% | |||||
Reported Gross Profit | $73 | $117 | (37.1 | )% | |||||||
Reported Gross Margin | 41.0 | % | 46.6 | % | (560) bps | ||||||
Reported Operating Income | $36 | $82 | (56.1 | )% | |||||||
Reported Operating Margin | 20.1 | % | 32.8 | % | (1270) bps | ||||||
Adjusted Gross Profit | $94 | $138 | (31.8 | )% | |||||||
Adjusted Gross Margin | 52.3 | % | 54.9 | % | (260) bps | ||||||
Adjusted Operating Income | $57 | $106 | (46.1 | )% | |||||||
Adjusted Operating Margin | 31.9 | % | 42.4 | % | (1050) bps |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | ||||||||||||
Net sales | $ | 1,133.1 | $ | 1,231.3 | $ | 3,536.5 | $ | 3,663.1 | |||||||
Cost of sales | 708.3 | 733.5 | 2,148.0 | 2,196.4 | |||||||||||
Gross profit | 424.8 | 497.8 | 1,388.5 | 1,466.7 | |||||||||||
Operating expenses | |||||||||||||||
Distribution | 22.5 | 21.5 | 71.0 | 64.2 | |||||||||||
Research and development | 43.7 | 38.4 | 174.0 | 120.8 | |||||||||||
Selling | 134.7 | 143.5 | 451.2 | 454.1 | |||||||||||
Administration | 105.6 | 123.3 | 310.0 | 326.9 | |||||||||||
Impairment charges | 221.8 | 7.8 | 223.5 | 47.4 | |||||||||||
Restructuring | 18.0 | 3.8 | 23.2 | 54.7 | |||||||||||
Other operating expense (income) | 0.5 | (2.9 | ) | 6.6 | (41.0 | ) | |||||||||
Total operating expenses | 546.8 | 335.4 | 1,259.5 | 1,027.1 | |||||||||||
Operating income (loss) | (122.0 | ) | 162.4 | 129.0 | 439.6 | ||||||||||
Change in financial assets | (74.9 | ) | 2.6 | (65.9 | ) | 24.2 | |||||||||
Interest expense, net | 31.7 | 34.7 | 95.2 | 133.1 | |||||||||||
Other (income) expense, net | 0.2 | (3.6 | ) | 12.3 | (1.1 | ) | |||||||||
Loss on extinguishment of debt | — | — | 0.5 | 135.2 | |||||||||||
Income (loss) before income taxes | (79.0 | ) | 128.7 | 86.9 | 148.2 | ||||||||||
Income tax expense (benefit) | (11.5 | ) | 84.2 | 37.3 | 101.8 | ||||||||||
Net income (loss) | $ | (67.5 | ) | $ | 44.5 | $ | 49.6 | $ | 46.4 | ||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (0.49 | ) | $ | 0.31 | $ | 0.36 | $ | 0.33 | ||||||
Diluted | $ | (0.49 | ) | $ | 0.31 | $ | 0.36 | $ | 0.32 | ||||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 137.4 | 141.3 | 138.5 | 142.5 | |||||||||||
Diluted | 137.4 | 141.7 | 139.0 | 142.8 | |||||||||||
Dividends declared per share | $ | 0.19 | $ | 0.16 | $ | 0.57 | $ | 0.48 |
September 29, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 444.2 | $ | 678.7 | |||
Accounts receivable, net of allowance for doubtful accounts of $6.9 and $6.2, respectively | 1,079.8 | 1,130.8 | |||||
Inventories | 885.3 | 806.9 | |||||
Prepaid expenses and other current assets | 359.5 | 203.2 | |||||
Total current assets | 2,768.8 | 2,819.6 | |||||
Property, plant and equipment, net | 820.2 | 833.1 | |||||
Goodwill and other indefinite-lived intangible assets | 4,042.0 | 4,265.7 | |||||
Other intangible assets, net | 2,959.3 | 3,290.5 | |||||
Non-current deferred income taxes | 0.8 | 10.4 | |||||
Other non-current assets | 351.8 | 409.5 | |||||
Total non-current assets | 8,174.1 | 8,809.2 | |||||
Total assets | $ | 10,942.9 | $ | 11,628.8 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 503.6 | $ | 450.2 | |||
Payroll and related taxes | 129.2 | 148.8 | |||||
Accrued customer programs | 416.4 | 419.7 | |||||
Accrued liabilities | 194.1 | 230.8 | |||||
Accrued income taxes | 56.0 | 116.1 | |||||
Current indebtedness | 194.2 | 70.4 | |||||
Total current liabilities | 1,493.5 | 1,436.0 | |||||
Long-term debt, less current portion | 3,071.0 | 3,270.8 | |||||
Non-current deferred income taxes | 294.7 | 321.9 | |||||
Other non-current liabilities | 423.7 | 429.5 | |||||
Total non-current liabilities | 3,789.4 | 4,022.2 | |||||
Total liabilities | 5,282.9 | 5,458.2 | |||||
Commitments and contingencies - Refer to Note 13 | |||||||
Shareholders’ equity | |||||||
Controlling interests: | |||||||
Preferred shares, $0.0001 par value per share, 10 shares authorized | — | — | |||||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized | 7,436.3 | 7,892.9 | |||||
Accumulated other comprehensive income | 143.2 | 253.1 | |||||
Retained earnings (accumulated deficit) | (1,919.7 | ) | (1,975.5 | ) | |||
Total controlling interest | 5,659.8 | 6,170.5 | |||||
Noncontrolling interest | 0.2 | 0.1 | |||||
Total shareholders’ equity | 5,660.0 | 6,170.6 | |||||
Total liabilities and shareholders' equity | $ | 10,942.9 | $ | 11,628.8 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Ordinary shares, issued and outstanding | 135.9 | 140.8 |
Nine Months Ended | |||||||
September 29, 2018 | September 30, 2017 | ||||||
Cash Flows From (For) Operating Activities | |||||||
Net income | $ | 49.6 | $ | 46.4 | |||
Adjustments to derive cash flows: | |||||||
Depreciation and amortization | 324.0 | 333.1 | |||||
Share-based compensation | 26.6 | 28.1 | |||||
Impairment charges | 223.5 | 47.4 | |||||
Change in financial assets | (65.9 | ) | 24.2 | ||||
Loss on extinguishment of debt | 0.5 | 135.2 | |||||
Restructuring charges | 23.2 | 54.7 | |||||
Deferred income taxes | (8.4 | ) | (16.3 | ) | |||
Amortization of debt premium | (6.2 | ) | (18.4 | ) | |||
Other non-cash adjustments, net | 5.9 | (27.2 | ) | ||||
Subtotal | 572.8 | 607.2 | |||||
Increase (decrease) in cash due to: | |||||||
Accounts receivable | 20.2 | 38.4 | |||||
Inventories | (101.3 | ) | (28.3 | ) | |||
Accounts payable | 44.5 | (6.0 | ) | ||||
Payroll and related taxes | (40.8 | ) | (36.7 | ) | |||
Accrued customer programs | (1.2 | ) | (15.8 | ) | |||
Accrued liabilities | (31.1 | ) | (18.8 | ) | |||
Accrued income taxes | (60.0 | ) | (61.5 | ) | |||
Other, net | (4.4 | ) | 3.5 | ||||
Subtotal | (174.1 | ) | (125.2 | ) | |||
Net cash from operating activities | 398.7 | 482.0 | |||||
Cash Flows From (For) Investing Activities | |||||||
Proceeds from royalty rights | 11.4 | 86.4 | |||||
Purchase of investment securities | (7.5 | ) | — | ||||
Asset acquisitions | (32.8 | ) | — | ||||
Additions to property, plant and equipment | (56.8 | ) | (55.2 | ) | |||
Net proceeds from sale of business and other assets | 5.0 | 46.7 | |||||
Proceeds from sale of the Tysabri® financial asset | — | 2,200.0 | |||||
Other investing, net | — | (5.8 | ) | ||||
Net cash from (for) investing activities | (80.7 | ) | 2,272.1 | ||||
Cash Flows From (For) Financing Activities | |||||||
Issuances of long-term debt | 431.0 | — | |||||
Payments on long-term debt | (470.0 | ) | (2,243.7 | ) | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | (8.7 | ) | — | ||||
Deferred financing fees | (2.4 | ) | (4.2 | ) | |||
Premium on early debt retirement | — | (116.1 | ) | ||||
Issuance of ordinary shares | 1.0 | 0.5 | |||||
Repurchase of ordinary shares | (400.0 | ) | (191.5 | ) | |||
Cash dividends | (78.7 | ) | (68.7 | ) | |||
Other financing, net | (9.8 | ) | 2.7 | ||||
Net cash (for) financing activities | (537.6 | ) | (2,621.0 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (14.9 | ) | 20.5 | ||||
Net increase (decrease) in cash and cash equivalents | (234.5 | ) | 153.6 | ||||
Cash and cash equivalents, beginning of period | 678.7 | 622.3 | |||||
Cash and cash equivalents, end of period | $ | 444.2 | $ | 775.9 |
TABLE I | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended September 29, 2018 | |||||||||
Consolidated | Net Sales | Net Income (Loss) | Diluted Earnings (Loss) per Share | ||||||
Reported | $ | 1,133.1 | $ | (67.5 | ) | $ | (0.49 | ) | |
Adjustments: | |||||||||
Impairment charges | $ | 221.8 | $ | 1.61 | |||||
Amortization expense related primarily to acquired intangible assets | 85.5 | 0.62 | |||||||
Restructuring charges and other termination benefits | 18.0 | 0.13 | |||||||
Separation and reorganization expense | 5.8 | 0.04 | |||||||
Acquisition-related charges and contingent consideration adjustments | 1.4 | 0.01 | |||||||
Unusual litigation | 1.4 | 0.01 | |||||||
Losses on investment securities | 1.0 | 0.01 | |||||||
Gain/loss on divestitures | (2.1 | ) | (0.02 | ) | |||||
Change in financial assets | (74.9 | ) | (0.54 | ) | |||||
Non-GAAP tax adjustments* | (40.5 | ) | (0.29 | ) | |||||
Adjusted | $ | 149.9 | $ | 1.09 | |||||
Diluted weighted average shares outstanding | |||||||||
Reported | 137.4 | ||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.5 | ||||||||
Adjusted | 137.9 | ||||||||
*The non-GAAP tax adjustments are due to tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax items. | |||||||||
**In the period of a net loss, diluted shares outstanding equal basic shares outstanding. |
TABLE I (CONTINUED) | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended September 30, 2017 | |||||||||
Consolidated | Net Sales | Net Income | Diluted Earnings per Share | ||||||
Reported | $ | 1,231.3 | $ | 44.5 | $ | 0.31 | |||
Adjustments: | |||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 90.1 | $ | 0.63 | |||
Impairment charges | — | 7.8 | 0.06 | ||||||
Restructuring charges and other termination benefits | — | 3.8 | 0.03 | ||||||
Change in financial assets | — | 2.6 | 0.02 | ||||||
Gain/loss on divestitures | — | (1.9 | ) | (0.01 | ) | ||||
Acquisition-related charges and contingent consideration adjustments | — | (2.9 | ) | (0.02 | ) | ||||
Operating results attributable to held-for-sale business* | (16.5 | ) | (4.1 | ) | (0.03 | ) | |||
Non-GAAP tax adjustments** | — | 57.3 | 0.40 | ||||||
Adjusted | $ | 1,214.8 | $ | 197.2 | $ | 1.39 | |||
Diluted weighted average shares outstanding | |||||||||
Reported | 141.7 | ||||||||
*Held-for-sale business includes the Israel API business. | |||||||||
**The non-GAAP tax adjustments include the following: (1) $(23.2) 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 $36.2 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; (3) $10.0 million net impact related to valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures; (4) $(5.4) million of tax adjustments related to the divestiture of the Tysabri® financial asset; (5) $12.8 million related to an IRS audit settlement; and (6) $26.9 million of tax related to the sale of our Israel API business. |
TABLE II | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
September 29, 2018 | September 30, 2017 | ||||||||||||||||||
Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income (Loss) | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 596.2 | $ | 184.7 | $ | (123.9 | ) | $ | 598.8 | $ | 206.1 | $ | 124.3 | ||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 10.6 | $ | 15.3 | $ | 12.1 | $ | 16.9 | |||||||||||
Impairment charges | — | 221.8 | — | 0.5 | |||||||||||||||
Restructuring charges and other termination benefits | — | — | — | (0.8 | ) | ||||||||||||||
Acquisition-related charges and contingent consideration adjustments | — | — | — | (2.0 | ) | ||||||||||||||
Adjusted | $ | 195.3 | $ | 113.2 | $ | 218.2 | $ | 138.9 | |||||||||||
As a % of reported net sales | 32.7 | % | 19.0 | % | 36.4 | % | 23.2 | % | |||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
September 29, 2018 | September 30, 2017 | ||||||||||||||||||
Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 357.6 | $ | 166.7 | $ | (2.0 | ) | $ | 365.4 | $ | 165.9 | $ | 4.6 | ||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 21.5 | $ | 49.7 | $ | 21.9 | $ | 51.8 | |||||||||||
Unusual litigation | — | 1.4 | — | — | |||||||||||||||
Restructuring charges and other termination benefits | — | 18.0 | — | 3.6 | |||||||||||||||
Acquisition-related charges and contingent consideration adjustments | — | (0.3 | ) | — | — | ||||||||||||||
Adjusted | $ | 188.2 | $ | 66.8 | $ | 187.8 | $ | 60.0 | |||||||||||
As a % of reported net sales | 52.6 | % | 18.7 | % | 51.4 | % | 16.4 | % | |||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
September 29, 2018 | September 30, 2017 | ||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 179.3 | $ | 73.4 | $ | 36.0 | $ | 250.6 | $ | 116.7 | $ | 82.1 | |||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 20.4 | $ | 20.5 | $ | 20.9 | $ | 21.0 | |||||||||||
Restructuring charges and other termination benefits | — | — | — | 0.1 | |||||||||||||||
Impairment charges | — | — | — | 4.0 | |||||||||||||||
Acquisition-related charges and contingent consideration adjustments | — | 0.8 | — | (0.9 | ) | ||||||||||||||
Adjusted | $ | 93.8 | $ | 57.3 | $ | 137.6 | $ | 106.3 | |||||||||||
As a % of reported net sales | 52.3 | % | 31.9 | % | 54.9 | % | 42.4 | % |
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
CONSTANT CURRENCY | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 29, 2018 | September 30, 2017 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated* | $ | 1,133.1 | $ | 1,214.8 | (6.7)% | 1.0% | (5.7)% | ||||||
CHCA | $ | 596.2 | $ | 598.8 | (0.4)% | 0.3% | (0.1)% | ||||||
CHCI | $ | 357.6 | $ | 365.4 | (2.1)% | 2.7% | 0.6% | ||||||
RX | $ | 179.3 | $ | 250.6 | (28.5)% | —% | (28.5)% | ||||||
CHCA | $ | 596.2 | $ | 598.8 | |||||||||
Less: Animal health net sales | (20.4 | ) | (39.2 | ) | |||||||||
$ | 575.8 | $ | 559.6 | 2.9% | 0.3% | 3.2% | |||||||
CHCI | $ | 357.6 | $ | 365.4 | |||||||||
Less: Belgium distribution and Russian business net sales | — | (1.8 | ) | ||||||||||
$ | 357.6 | $ | 363.6 | (1.7)% | 2.8% | 1.1% | |||||||
CHCA | $ | 596.2 | $ | 598.8 | |||||||||
CHCI | 357.6 | 365.4 | |||||||||||
$ | 953.8 | $ | 964.2 | (1.1)% | 1.2% | 0.1% | |||||||
Less: Belgium distribution and Russian business net sales | — | (1.8 | ) | ||||||||||
Less: Animal health net sales | (20.4 | ) | (39.2 | ) | |||||||||
$ | 933.4 | $ | 923.2 | 1.1% | 1.3% | 2.4% | |||||||
*2017 net sales are adjusted to exclude sales attributable to divested businesses. See Table I for non-GAAP reconciliations. |
TABLE IV | |||||
PERRIGO COMPANY PLC | |||||
RECONCILIATION OF NON-GAAP MEASURES | |||||
2018 CONSOLIDATED GUIDANCE(1) | |||||
(unaudited) | |||||
Full Year | |||||
2018 EPS Guidance Provided on 11/8/2018 | |||||
Reported(2) | $0.66 - $0.86 | ||||
Amortization expense related primarily to acquired intangible assets | 2.44 | ||||
Impairment charges | 1.61 | ||||
Acquisition-related charges and contingent consideration adjustments | 0.42 | ||||
Restructuring charges and other termination benefits | 0.20 | ||||
Separation and reorganization expense | 0.13 | ||||
Losses on investment securities | 0.08 | ||||
Unusual litigation | 0.01 | ||||
Gain/loss on divestitures | (0.02) | ||||
Change in financial assets | (0.47) | ||||
Tax effect of non-GAAP adjustments | (0.61) | ||||
Adjusted | $4.45 - $4.65 | ||||
(1) Guidance tables include Q1-Q3 actual results for all reconciling line items, plus estimated amortization expense, separation and reorganization expense and the corresponding tax effect for Q4. | |||||
(2) Guidance excludes any impact related to the Royalty Pharma contingent milestone payments. |
TABLE V | |||
PERRIGO COMPANY PLC | |||
RECONCILIATION OF NON-GAAP MEASURES | |||
(in millions) | |||
(unaudited) | |||
Three Months Ended | |||
September 29, 2018 | |||
Operating cash flow | $ | 144.0 | |
Adjusted net income | $ | 149.9 | |
Cash conversion ratio | 96.1 | % | |
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 | ||||||||||
September 29, 2018 | September 30, 2017 | Total Change | ||||||||
Consolidated adjusted net income | $ | 149.9 | $ | 197.2 | (24.0)% | |||||
Consolidated adjusted EPS | 1.09 | 1.39 | (21.9)% | |||||||
Adjusted operating income | ||||||||||
CHCA | $ | 113.2 | $ | 138.9 | (18.5)% | |||||
CHCI | 66.8 | 60.0 | 11.4% | |||||||
RX | 57.3 | 106.3 | (46.1)% | |||||||
Adjusted operating margin | ||||||||||
CHCA | 19.0 | % | 23.2 | % | (420) bps | |||||
CHCI | 18.7 | % | 16.4 | % | 230 bps | |||||
RX | 31.9 | % | 42.4 | % | (1050) bps | |||||
Adjusted gross profit | ||||||||||
CHCA | $ | 195.3 | $ | 218.2 | (10.5)% | |||||
CHCI | 188.2 | 187.8 | (0.3)% | |||||||
RX | 93.8 | 137.6 | (31.8)% | |||||||
Adjusted gross margin | ||||||||||
CHCA | 32.7 | % | 36.4 | % | (370) bps | |||||
CHCI | 52.6 | % | 51.4 | % | 120 bps | |||||
RX | 52.3 | % | 54.9 | % | (260) bps | |||||