Ireland | Not Applicable | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
The Sharp Building, Hogan Place, Dublin 2, Ireland | - | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Ordinary shares | PRGO | New York Stock Exchange |
• | Amortization expense related primarily to acquired intangible assets |
• | Change in financial assets |
• | Losses on investment securities |
• | Acquisition and integration-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 |
• | Infant foods net sales |
• | Non-GAAP tax adjustments |
• | Amortization expense related primarily to acquired intangible assets |
• | Change in financial assets |
• | Losses on investment securities |
• | Acquisition and integration-related charges and contingent consideration adjustments |
• | Restructuring charges and other termination benefits |
• | Gain/loss on divestitures |
• | Foreign currency translation movement |
• | Animal health net sales |
• | Infant foods net sales |
• | Non-GAAP tax adjustments |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Raymond P. Silcock | |||
Dated: | May 8, 2019 | Raymond P. Silcock | ||
Chief Financial Officer | ||||
• | GAAP ("reported") net sales were $1.2 billion, reflecting a 4% decline versus the prior year period, or down 1% excluding the unfavorable impact of currency. |
• | First quarter reported diluted earnings per share ("EPS") decreased 18% versus last year to $0.47. |
• | Non-GAAP ("adjusted") diluted EPS decreased 15% versus last year to $1.07. |
• | Perrigo Worldwide Consumer segments first quarter reported net sales of $933 million, down 5% year-over-year, or 1% lower excluding the unfavorable impact of currency. |
• | Perrigo Worldwide Consumer segments market shares remained stable in growing markets. |
• | Perrigo Prescription Pharmaceuticals ("RX") net sales of $242 million were 2% higher year-over-year, driven by a strong new product pipeline and continued moderation of pricing pressure. |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | |||||||
3/30/2019 | 3/31/2018 | % Change | % Change | |||||||
Reported Net Sales | $1,175 | $1,217 | (3.5 | )% | (0.6 | )% | ||||
Reported Net Income | $64 | $81 | (20.9 | )% | ||||||
Reported Diluted Earnings per Share | $0.47 | $0.57 | (17.9 | )% | ||||||
Reported Diluted Shares | 136.2 | 141.4 | (3.7 | )% | ||||||
Adjusted Net Income | $146 | $178 | (18.3 | )% | ||||||
Adjusted Diluted Earnings per Share | $1.07 | $1.26 | (15.2 | )% |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
3/30/2019 | 3/31/2018 | % Change | % Change | ||||||||
Reported Net Sales | $582 | $602 | (3.3 | )% | (3.2 | )% | |||||
Reported Gross Profit | $184 | $206 | (10.7 | )% | |||||||
Reported Gross Margin | 31.6 | % | 34.2 | % | (260) bps | ||||||
Reported Operating Income | $94 | $119 | (20.6 | )% | |||||||
Reported Operating Margin | 16.2 | % | 19.7 | % | (350) bps | ||||||
Adjusted Gross Profit | $189 | $216 | (12.5 | )% | |||||||
Adjusted Gross Margin | 32.5 | % | 36.0 | % | (350) bps | ||||||
Adjusted Operating Income | $106 | $134 | (20.9 | )% | |||||||
Adjusted Operating Margin | 18.3 | % | 22.3 | % | (400) bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
3/30/2019 | 3/31/2018 | % Change | % Change | ||||||||
Reported Net Sales | $351 | $378 | (7.1 | )% | 1.7 | % | |||||
Reported Gross Profit | $168 | $186 | (9.4 | )% | |||||||
Reported Gross Margin | 48.0 | % | 49.2 | % | (120) bps | ||||||
Reported Operating Income | $8 | $12 | (34.6 | )% | |||||||
Reported Operating Margin | 2.3 | % | 3.3 | % | (100) bps | ||||||
Adjusted Gross Profit | $189 | $208 | (9.2 | )% | |||||||
Adjusted Gross Margin | 53.9 | % | 55.2 | % | (130) bps | ||||||
Adjusted Operating Income | $54 | $65 | (17.2 | )% | |||||||
Adjusted Operating Margin | 15.4 | % | 17.3 | % | (190) bps |
First Quarter Ended | First Quarter Ended | YoY | Constant Currency | ||||||||
3/30/2019 | 3/31/2018 | % Change | % Change | ||||||||
Reported Net Sales | $242 | $238 | 1.8 | % | 2.4 | % | |||||
Reported Gross Profit | $96 | $101 | (4.4 | )% | |||||||
Reported Gross Margin | 39.9 | % | 42.5 | % | (260) bps | ||||||
Reported Operating Income | $61 | $61 | 0.9 | % | |||||||
Reported Operating Margin | 25.1 | % | 25.8 | % | (70) bps | ||||||
Adjusted Gross Profit | $118 | $122 | (3.4 | )% | |||||||
Adjusted Gross Margin | 48.6 | % | 51.2 | % | (260) bps | ||||||
Adjusted Operating Income | $82 | $85 | (3.7 | )% | |||||||
Adjusted Operating Margin | 33.9 | % | 35.8 | % | (190) bps |
Three Months Ended | |||||||
March 30, 2019 | March 31, 2018 | ||||||
Net sales | $ | 1,174.5 | $ | 1,217.0 | |||
Cost of sales | 725.7 | 724.3 | |||||
Gross profit | 448.8 | 492.7 | |||||
Operating expenses | |||||||
Distribution | 23.3 | 24.7 | |||||
Research and development | 40.2 | 38.4 | |||||
Selling | 148.6 | 161.3 | |||||
Administration | 125.1 | 107.6 | |||||
Impairment charges | 4.1 | — | |||||
Restructuring | 9.3 | 1.5 | |||||
Other operating expense (income) | (4.1 | ) | 2.9 | ||||
Total operating expenses | 346.5 | 336.4 | |||||
Operating income | 102.3 | 156.3 | |||||
Change in financial assets | (10.4 | ) | 9.6 | ||||
Interest expense, net | 28.6 | 31.4 | |||||
Other (income) expense, net | 3.2 | 4.3 | |||||
Loss on extinguishment of debt | — | 0.5 | |||||
Income before income taxes | 80.9 | 110.5 | |||||
Income tax expense | 17.0 | 29.7 | |||||
Net income | $ | 63.9 | $ | 80.8 | |||
Earnings per share | |||||||
Basic | $ | 0.47 | $ | 0.57 | |||
Diluted | $ | 0.47 | $ | 0.57 | |||
Weighted-average shares outstanding | |||||||
Basic | 135.9 | 140.8 | |||||
Diluted | 136.2 | 141.4 |
March 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 837.9 | $ | 551.1 | |||
Accounts receivable, net of allowance for doubtful accounts of $6.8 and $6.4, respectively | 1,118.7 | 1,073.1 | |||||
Inventories | 912.9 | 878.0 | |||||
Prepaid expenses and other current assets | 139.8 | 400.0 | |||||
Total current assets | 3,009.3 | 2,902.2 | |||||
Property, plant and equipment, net | 821.1 | 829.1 | |||||
Operating lease assets | 146.8 | — | |||||
Goodwill and indefinite-lived intangible assets | 3,999.0 | 4,029.1 | |||||
Definite-lived intangible assets, net | 2,757.9 | 2,858.9 | |||||
Deferred income taxes | 2.7 | 1.2 | |||||
Other non-current assets | 382.7 | 362.9 | |||||
Total non-current assets | 8,110.2 | 8,081.2 | |||||
Total assets | $ | 11,119.5 | $ | 10,983.4 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 549.2 | $ | 474.9 | |||
Payroll and related taxes | 117.3 | 132.1 | |||||
Accrued customer programs | 379.6 | 442.4 | |||||
Accrued liabilities | 232.0 | 201.3 | |||||
Accrued income taxes | 85.9 | 96.5 | |||||
Current indebtedness | 467.9 | 190.2 | |||||
Total current liabilities | 1,831.9 | 1,537.4 | |||||
Long-term debt, less current portion | 2,749.9 | 3,052.2 | |||||
Deferred income taxes | 282.4 | 282.3 | |||||
Other non-current liabilities | 554.5 | 443.4 | |||||
Total non-current liabilities | 3,586.8 | 3,777.9 | |||||
Total liabilities | 5,418.7 | 5,315.3 | |||||
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 | 7,409.4 | 7,421.7 | |||||
Accumulated other comprehensive income | 69.0 | 84.6 | |||||
Retained earnings (accumulated deficit) | (1,777.8 | ) | (1,838.3 | ) | |||
Total controlling interest | 5,700.6 | 5,668.0 | |||||
Noncontrolling interest | 0.2 | 0.1 | |||||
Total shareholders’ equity | 5,700.8 | 5,668.1 | |||||
Total liabilities and shareholders' equity | $ | 11,119.5 | $ | 10,983.4 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Ordinary shares, issued and outstanding | 136.0 | 135.9 |
Three Months Ended | |||||||
March 30, 2019 | March 31, 2018 | ||||||
Cash Flows From (For) Operating Activities | |||||||
Net income | $ | 63.9 | $ | 80.8 | |||
Adjustments to derive cash flows: | |||||||
Depreciation and amortization | 96.6 | 109.5 | |||||
Share-based compensation | 12.4 | 12.7 | |||||
Impairment charges | 4.1 | — | |||||
Change in financial assets | (10.4 | ) | 9.6 | ||||
Loss on extinguishment of debt | — | 0.5 | |||||
Restructuring charges | 9.3 | 1.5 | |||||
Deferred income taxes | 3.9 | (7.2 | ) | ||||
Amortization of debt premium | (1.9 | ) | (2.1 | ) | |||
Other non-cash adjustments, net | 13.4 | 12.1 | |||||
Subtotal | 191.3 | 217.4 | |||||
Increase (decrease) in cash due to: | |||||||
Accounts receivable | (48.5 | ) | 2.6 | ||||
Inventories | (37.5 | ) | (43.7 | ) | |||
Accounts payable | 75.4 | 57.5 | |||||
Payroll and related taxes | (19.9 | ) | (38.9 | ) | |||
Accrued customer programs | (61.7 | ) | 17.3 | ||||
Accrued liabilities | (3.8 | ) | (24.0 | ) | |||
Accrued income taxes | (10.0 | ) | 6.4 | ||||
Other, net | 9.2 | (22.2 | ) | ||||
Subtotal | (96.8 | ) | (45.0 | ) | |||
Net cash from (for) operating activities | 94.5 | 172.4 | |||||
Cash Flows From (For) Investing Activities | |||||||
Proceeds from royalty rights | 1.2 | 10.0 | |||||
Royalty Pharma contingent milestone payment | 250.0 | — | |||||
Additions to property, plant and equipment | (21.1 | ) | (13.4 | ) | |||
Net proceeds from sale of business and other assets | — | 1.3 | |||||
Net cash from (for) investing activities | 230.1 | (2.1 | ) | ||||
Cash Flows From (For) Financing Activities | |||||||
Issuances of long-term debt | — | 431.0 | |||||
Payments on long-term debt | (12.3 | ) | (444.5 | ) | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | (0.3 | ) | (6.2 | ) | |||
Deferred financing fees | — | (2.4 | ) | ||||
Repurchase of ordinary shares | — | (108.1 | ) | ||||
Cash dividends | (25.9 | ) | (26.7 | ) | |||
Other financing, net | (3.1 | ) | (5.7 | ) | |||
Net cash from (for) financing activities | (41.6 | ) | (162.6 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 3.8 | 0.9 | |||||
Net increase (decrease) in cash and cash equivalents | 286.8 | 8.6 | |||||
Cash and cash equivalents, beginning of period | 551.1 | 678.7 | |||||
Cash and cash equivalents, end of period | $ | 837.9 | $ | 687.3 |
TABLE I | ||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended March 30, 2019 | ||||||||||||||||||||||||||||||
Consolidated | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest, Other, and Change in Financial Assets | Income Tax Expense | Net Income | Diluted Earnings per Share | ||||||||||||||||||||
Reported | $ | 1,174.5 | $ | 448.8 | $ | 40.2 | $ | 297.0 | $ | 9.3 | $ | 102.3 | $ | 21.4 | $ | 17.0 | $ | 63.9 | $ | 0.47 | ||||||||||
As a % of reported net sales | 38.2 | % | 3.4 | % | 25.3 | % | 8.7 | % | 1.8 | % | 1.5 | % | 5.4 | % | ||||||||||||||||
Effective tax rate | 21.1 | % | ||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 47.4 | $ | (0.1 | ) | $ | (29.0 | ) | $ | — | $ | 76.5 | $ | — | $ | — | $ | 76.5 | $ | 0.57 | ||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | — | — | 2.8 | (2.8 | ) | — | — | (2.8 | ) | (0.02 | ) | ||||||||||||||||||
Impairment charges | — | — | — | (4.1 | ) | 4.1 | — | — | 4.1 | 0.03 | ||||||||||||||||||||
Gain/loss on divestitures | — | — | — | 1.3 | (1.3 | ) | — | — | (1.3 | ) | (0.01 | ) | ||||||||||||||||||
Unusual litigation | — | — | (9.1 | ) | — | 9.1 | — | — | 9.1 | 0.07 | ||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | (9.3 | ) | 9.3 | — | — | 9.3 | 0.07 | ||||||||||||||||||||
Change in financial assets | — | — | — | — | — | 10.4 | — | (10.4 | ) | (0.08 | ) | |||||||||||||||||||
Loss on investment securities | — | — | — | — | — | (6.1 | ) | — | 6.1 | 0.04 | ||||||||||||||||||||
Separation and reorganization expense | — | — | (5.8 | ) | — | 5.8 | — | — | 5.8 | 0.04 | ||||||||||||||||||||
Non-GAAP tax adjustments* | — | — | — | — | — | — | 14.7 | (14.7 | ) | (0.11 | ) | |||||||||||||||||||
Adjusted | $ | 496.2 | $ | 40.1 | $ | 253.1 | $ | — | $ | 203.0 | $ | 25.7 | $ | 31.7 | $ | 145.6 | $ | 1.07 | ||||||||||||
As a % of reported net sales | 42.3 | % | 3.4 | % | 21.6 | % | 17.3 | % | 2.2 | % | 2.7 | % | 12.4 | % | ||||||||||||||||
Effective tax rate | 17.9 | % | ||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||||||
Reported | 136.2 | |||||||||||||||||||||||||||||
*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. |
TABLE I (CONTINUED) | ||||||||||||||||||||||||||||||
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 | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest, Other, and Change in Financial Assets | Income Tax Expense | Net Income | Diluted Earnings per Share | ||||||||||||||||||||
Reported | $ | 1,217.0 | $ | 492.7 | $ | 38.4 | $ | 293.6 | $ | 4.4 | $ | 156.3 | $ | 45.8 | $ | 29.7 | $ | 80.8 | $ | 0.57 | ||||||||||
As a % of reported net sales | 40.5 | % | 3.2 | % | 24.1 | % | 12.8 | % | 3.8 | % | 2.4 | % | 6.6 | % | ||||||||||||||||
Effective tax rate | 26.9 | % | ||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | 53.9 | $ | (0.3 | ) | $ | (34.3 | ) | $ | — | $ | 88.5 | $ | — | $ | — | $ | 88.5 | $ | 0.62 | ||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | — | — | (4.2 | ) | 4.2 | — | — | 4.2 | 0.03 | ||||||||||||||||||||
Change in financial assets | — | — | — | — | — | (9.6 | ) | — | 9.6 | 0.07 | ||||||||||||||||||||
Gain/loss on divestitures | — | — | — | 1.3 | (1.3 | ) | — | — | (1.3 | ) | (0.01 | ) | ||||||||||||||||||
Loss on investment securities | — | — | — | — | — | (4.4 | ) | — | 4.4 | 0.03 | ||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | (4.0 | ) | (1.5 | ) | 5.5 | — | — | 5.5 | 0.04 | |||||||||||||||||||
Non-GAAP tax adjustments* | — | — | — | — | — | — | 13.4 | (13.4 | ) | (0.09 | ) | |||||||||||||||||||
Adjusted | $ | 546.6 | $ | 38.1 | $ | 255.3 | $ | — | $ | 253.2 | $ | 31.8 | $ | 43.1 | $ | 178.3 | $ | 1.26 | ||||||||||||
As a % of reported net sales | 44.9 | % | 3.1 | % | 21.0 | % | 20.8 | % | 2.6 | % | 3.5 | % | 14.6 | % | ||||||||||||||||
Effective tax rate | 19.5 | % | ||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||||||
Reported | 141.4 | |||||||||||||||||||||||||||||
*The non-GAAP tax adjustments include (1) $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 II | |||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
March 30, 2019 | March 31, 2018 | ||||||||||||||||||||||||||||||
Consumer Self-Care Americas | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||
Reported | $ | 581.8 | $ | 184.0 | $ | 15.6 | $ | 73.3 | $ | 94.2 | $ | 601.6 | $ | 205.9 | $ | 15.2 | $ | 71.5 | $ | 118.6 | |||||||||||
As a % of reported net sales | 31.6 | % | 2.7 | % | 12.6 | % | 16.2 | % | 34.2 | % | 2.5 | % | 11.9 | % | 19.7 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 5.4 | $ | (4.7 | ) | $ | 10.1 | $ | 10.5 | $ | (4.7 | ) | $ | 15.2 | |||||||||||||||||
Unusual litigation | — | (1.2 | ) | 1.2 | — | — | — | ||||||||||||||||||||||||
Impairment charges | — | — | 4.1 | — | — | — | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | 0.8 | — | — | 0.4 | |||||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | — | (4.1 | ) | — | — | 0.1 | ||||||||||||||||||||||||
Adjusted | $ | 189.4 | $ | 67.4 | $ | 106.3 | $ | 216.4 | $ | 66.8 | $ | 134.3 | |||||||||||||||||||
As a % of reported net sales | 32.5 | % | 11.6 | % | 18.3 | % | 36.0 | % | 11.1 | % | 22.3 | % | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
March 30, 2019 | March 31, 2018 | ||||||||||||||||||||||||||||||
Consumer Self-Care International | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||
Reported | $ | 350.8 | $ | 168.4 | $ | 10.3 | $ | 149.4 | $ | 8.1 | $ | 377.8 | $ | 185.9 | $ | 10.6 | $ | 162.4 | $ | 12.3 | |||||||||||
As a % of reported net sales | 48.0 | % | 2.9 | % | 42.6 | % | 2.3 | % | 49.2 | % | 2.8 | % | 43.0 | % | 3.3 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 20.8 | $ | (0.1 | ) | $ | (24.2 | ) | $ | 45.1 | $ | 22.5 | $ | (0.3 | ) | $ | (29.7 | ) | $ | 52.5 | |||||||||||
Unusual litigation | — | — | (0.3 | ) | 0.3 | — | — | — | — | ||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | 0.6 | — | — | — | 0.6 | |||||||||||||||||||||||
Adjusted | $ | 189.2 | $ | 10.2 | $ | 124.9 | $ | 54.1 | $ | 208.4 | $ | 10.3 | $ | 132.7 | $ | 65.4 | |||||||||||||||
As a % of reported net sales | 53.9 | % | 2.9 | % | 35.6 | % | 15.4 | % | 55.2 | % | 2.7 | % | 35.1 | % | 17.3 | % | |||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
March 30, 2019 | March 31, 2018 | ||||||||||||||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||
Reported | $ | 241.9 | $ | 96.4 | $ | 14.3 | $ | 21.6 | $ | 60.6 | $ | 237.6 | $ | 100.9 | $ | 12.6 | $ | 24.1 | $ | 61.2 | |||||||||||
As a % of reported net sales | 39.9 | % | 5.9 | % | 8.9 | % | 25.1 | % | 42.5 | % | 5.3 | % | 10.1 | % | 25.8 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 21.2 | $ | (0.1 | ) | $ | 21.3 | $ | 20.9 | $ | 20.9 | ||||||||||||||||||||
Gain/loss on divestitures | — | — | (1.3 | ) | — | (1.2 | ) | ||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 0.2 | ||||||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | — | 1.3 | — | 4.0 | ||||||||||||||||||||||||||
Adjusted | $ | 117.6 | $ | 21.5 | $ | 81.9 | $ | 121.8 | $ | 85.1 | |||||||||||||||||||||
As a % of reported net sales | 48.6 | % | 8.9 | % | 33.9 | % | 51.2 | % | 35.8 | % |
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
CONSTANT CURRENCY | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
March 30, 2019 | March 31, 2018 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated | $ | 1,174.5 | $ | 1,217.0 | (3.5)% | 2.9% | (0.6)% | ||||||
CSCA | $ | 581.8 | $ | 601.6 | (3.3)% | 0.1% | (3.2)% | ||||||
CSCI | $ | 350.8 | $ | 377.8 | (7.1)% | 8.8% | 1.7% | ||||||
RX | $ | 241.9 | $ | 237.6 | 1.8% | 0.6% | 2.4% | ||||||
CSCA | $ | 581.8 | $ | 601.6 | |||||||||
Less: animal health | (19.6 | ) | (26.3 | ) | |||||||||
Less: infant foods | (5.3 | ) | (9.0 | ) | |||||||||
$ | 556.9 | $ | 566.3 | (1.7)% | 0.2% | (1.5)% | |||||||
Worldwide Consumer segments | |||||||||||||
CSCA | $ | 581.8 | $ | 601.6 | |||||||||
CSCI | 350.8 | 377.8 | |||||||||||
$ | 932.6 | $ | 979.4 | (4.8)% | 3.5% | (1.3)% | |||||||
Adjusted R&D and A&P expense | |||||||||||||
Consolidated | $ | 102.4 | $ | 100.0 | 2.4% | 5.8% | 8.2% | ||||||
Worldwide Consumer segments | |||||||||||||
CSCA | $ | 26.1 | $ | 24.2 | |||||||||
CSCI | 61.5 | 62.9 | |||||||||||
$ | 87.6 | $ | 87.1 | 0.6% | 6.5% | 7.1% | |||||||
Adjusted DSG&A less A&P | |||||||||||||
Consolidated | $ | 253.1 | $ | 255.3 | |||||||||
Less: A&P | (62.3 | ) | (61.8 | ) | |||||||||
Total | $ | 190.8 | $ | 193.5 | (1.3)% | 4.0% | 2.7% |
TABLE IV | ||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||||||
(in millions) | ||||||||||||||
(unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 30, 2019 | March 31, 2018 | $ Change | Change | |||||||||||
Worldwide Consumer segments adjusted gross profit | ||||||||||||||
CSCA | $ | 189.4 | $ | 216.4 | ||||||||||
CSCI | 189.2 | 208.4 | ||||||||||||
Total | $ | 378.6 | $ | 424.8 | $ | (46.2 | ) | (10.9)% | ||||||
As a percent of Worldwide Consumer segments net sales | 40.6 | % | 43.4 | % | (280) bps | |||||||||
Worldwide Consumer segments adjusted R&D and A&P | ||||||||||||||
CSCA | $ | 26.1 | $ | 24.2 | ||||||||||
CSCI | 61.5 | 62.9 | ||||||||||||
Total | $ | 87.6 | $ | 87.1 | $ | 0.5 | 0.6% | |||||||
As a percent of Worldwide Consumer segments net sales | 9.4 | % | 8.9 | % | 50 bps | |||||||||
Worldwide Consumer segments adjusted operating income | ||||||||||||||
CSCA | $ | 106.3 | $ | 134.3 | ||||||||||
CSCI | 54.1 | 65.4 | ||||||||||||
Total | $ | 160.4 | $ | 199.7 | $ | (39.3 | ) | (19.7)% | ||||||
As a percent of Worldwide Consumer segments net sales | 17.2 | % | 20.4 | % | (320) bps | |||||||||
Three months ended | Three Months Ended | ||||||||||||||||||
March 31, 2018 | June 30, 2018 | September 29, 2018 | December 31, 2018 | March 30, 2019 | |||||||||||||||
Infant foods product line net sales | $ | 9.0 | $ | 10.0 | $ | 8.1 | $ | 7.0 | $ | 5.3 |
TABLE IV (continued) | ||||||||||
PERRIGO COMPANY PLC | ||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||
(in millions, except per share amounts) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
March 30, 2019 | March 31, 2018 | Total Change | ||||||||
Consolidated adjusted operating income | $ | 203.0 | $ | 253.2 | (19.8)% | |||||
Consolidated adjusted net income | $ | 145.6 | $ | 178.3 | (18.3)% | |||||
Consolidated adjusted EPS | $ | 1.07 | $ | 1.26 | (15.2)% | |||||
Adjusted gross profit | ||||||||||
CSCA | $ | 189.4 | $ | 216.4 | (12.5)% | |||||
CSCI | $ | 189.2 | $ | 208.4 | (9.2)% | |||||
RX | $ | 117.6 | $ | 121.8 | (3.4)% | |||||
Adjusted gross margin | ||||||||||
CSCA | 32.5 | % | 36.0 | % | (350) bps | |||||
CSCI | 53.9 | % | 55.2 | % | (130) bps | |||||
RX | 48.6 | % | 51.2 | % | (260) bps | |||||
Adjusted operating income | ||||||||||
CSCA | $ | 106.3 | $ | 134.3 | (20.9)% | |||||
CSCI | $ | 54.1 | $ | 65.4 | (17.2)% | |||||
RX | $ | 81.9 | $ | 85.1 | (3.7)% | |||||
Adjusted operating margin | ||||||||||
CSCA | 18.3 | % | 22.3 | % | (400) bps | |||||
CSCI | 15.4 | % | 17.3 | % | (190) bps | |||||
RX | 33.9 | % | 35.8 | % | (190) bps | |||||