Not Applicable | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
• | Amortization expense related primarily to acquired intangible assets |
• | Change in financial assets |
• | Loss on investment securities |
• | Loss on early debt extinguishment |
• | Acquisition and integration-related charges and contingent consideration adjustments |
• | Impairment charges |
• | Asset abandonment |
• | Restructuring charges and other termination benefits |
• | Separation and reorganization expense |
• | Unusual litigation |
• | (Gain) loss on divestitures |
• | Ranitidine market withdrawal* |
• | Operating results attributable to held-for-sale business |
• | Foreign currency translation movement |
• | Animal health net sales |
• | Infant foods net sales |
• | Ranir 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 |
• | Impairment charges |
• | Separation and reorganization expense |
• | (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 | ||
104 | Cover Page Interactive Data file (embedded within the Inline XBRL document). |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Raymond P. Silcock | |||
Dated: | November 6, 2019 | Raymond P. Silcock | ||
Chief Financial Officer | ||||
• | GAAP ("reported") consolidated net sales of $1.2 billion in the third quarter increased 5.1% versus the third quarter 2018. |
• | Worldwide Consumer reported net sales were $961 million for the third quarter, up 3.3% versus the third quarter 2018. Excluding exited businesses and currency from the prior year comparison, Worldwide Consumer adjusted net sales increased 9.5%. |
• | Third quarter 2019 reported diluted earnings per share ("EPS") was $0.67, as compared to a loss of $0.49 per diluted share in the third quarter 2018. |
• | Adjusted diluted EPS was $1.04 per diluted share versus $1.09 a year ago. Refer to Table I at the end of this press release for a complete description of non-GAAP adjustments to diluted EPS, which includes $0.11 per share for the voluntary global recall of ranitidine. |
• | The Company expects 2019 reported diluted EPS to be in the range of $2.01 - $2.21 per share. The Company is raising its 2019 adjusted diluted EPS range to $3.85 - $4.05 from $3.75 - $4.05. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 28, 2019 | September 29, 2018 | September 28, 2019 | September 29, 2018 | ||||||||||||
Net sales | $ | 1,191.1 | $ | 1,133.1 | $ | 3,514.6 | $ | 3,536.5 | |||||||
Cost of sales | 778.3 | 708.3 | 2,222.1 | 2,148.0 | |||||||||||
Gross profit | 412.8 | 424.8 | 1,292.5 | 1,388.5 | |||||||||||
Operating expenses | |||||||||||||||
Distribution | 23.4 | 22.5 | 70.5 | 71.0 | |||||||||||
Research and development | 44.0 | 43.7 | 128.0 | 174.0 | |||||||||||
Selling | 134.1 | 134.7 | 422.8 | 451.2 | |||||||||||
Administration | 131.9 | 105.6 | 384.2 | 310.0 | |||||||||||
Impairment charges | 10.9 | 221.8 | 42.9 | 223.5 | |||||||||||
Restructuring | 5.2 | 18.0 | 26.7 | 23.2 | |||||||||||
Other operating expense | 8.9 | 0.5 | 5.7 | 6.6 | |||||||||||
Total operating expenses | 358.4 | 546.8 | 1,080.8 | 1,259.5 | |||||||||||
Operating income (loss) | 54.4 | (122.0 | ) | 211.7 | 129.0 | ||||||||||
Change in financial assets | (2.6 | ) | (74.9 | ) | (18.5 | ) | (65.9 | ) | |||||||
Interest expense, net | 30.5 | 31.7 | 90.4 | 95.2 | |||||||||||
Other (income) expense, net | (71.0 | ) | 0.2 | (65.6 | ) | 12.3 | |||||||||
Loss on extinguishment of debt | 0.2 | — | 0.2 | 0.5 | |||||||||||
Income (loss) before income taxes | 97.3 | (79.0 | ) | 205.2 | 86.9 | ||||||||||
Income tax expense (benefit) | 5.1 | (11.5 | ) | 40.1 | 37.3 | ||||||||||
Net income (loss) | $ | 92.2 | $ | (67.5 | ) | $ | 165.1 | $ | 49.6 | ||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | 0.68 | $ | (0.49 | ) | $ | 1.21 | $ | 0.36 | ||||||
Diluted | $ | 0.67 | $ | (0.49 | ) | $ | 1.21 | $ | 0.36 | ||||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 136.0 | 137.4 | 136.0 | 138.5 | |||||||||||
Diluted | 136.8 | 137.4 | 136.4 | 139.0 |
September 28, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 398.5 | $ | 551.1 | |||
Accounts receivable, net of allowance for doubtful accounts of $6.3 and $6.4, respectively | 1,102.2 | 1,073.1 | |||||
Inventories | 990.5 | 878.0 | |||||
Prepaid expenses and other current assets | 248.6 | 400.0 | |||||
Total current assets | 2,739.8 | 2,902.2 | |||||
Property, plant and equipment, net | 871.4 | 829.1 | |||||
Operating lease assets | 131.9 | — | |||||
Goodwill and indefinite-lived intangible assets | 4,269.7 | 4,029.1 | |||||
Definite-lived intangible assets, net | 2,899.3 | 2,858.9 | |||||
Deferred income taxes | 2.7 | 1.2 | |||||
Other non-current assets | 396.0 | 362.9 | |||||
Total non-current assets | 8,571.0 | 8,081.2 | |||||
Total assets | $ | 11,310.8 | $ | 10,983.4 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 524.9 | $ | 474.9 | |||
Payroll and related taxes | 147.3 | 132.1 | |||||
Accrued customer programs | 358.8 | 442.4 | |||||
Other accrued liabilities | 213.1 | 201.3 | |||||
Accrued income taxes | 77.5 | 96.5 | |||||
Current indebtedness | 3.1 | 190.2 | |||||
Total current liabilities | 1,324.7 | 1,537.4 | |||||
Long-term debt, less current portion | 3,361.5 | 3,052.2 | |||||
Deferred income taxes | 314.3 | 282.3 | |||||
Other non-current liabilities | 551.2 | 443.4 | |||||
Total non-current liabilities | 4,227.0 | 3,777.9 | |||||
Total liabilities | 5,551.7 | 5,315.3 | |||||
Commitments and contingencies - Refer to Note 14 | |||||||
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 | 7,378.8 | 7,421.7 | |||||
Accumulated other comprehensive income | 56.6 | 84.6 | |||||
Retained earnings (accumulated deficit) | (1,676.6 | ) | (1,838.3 | ) | |||
Total controlling interest | 5,758.8 | 5,668.0 | |||||
Noncontrolling interest | 0.3 | 0.1 | |||||
Total shareholders’ equity | 5,759.1 | 5,668.1 | |||||
Total liabilities and shareholders' equity | $ | 11,310.8 | $ | 10,983.4 | |||
Supplemental Disclosures of Balance Sheet Information | |||||||
Preferred shares, issued and outstanding | — | — | |||||
Ordinary shares, issued and outstanding | 136.1 | 135.9 |
Nine Months Ended | |||||||
September 28, 2019 | September 29, 2018 | ||||||
Cash Flows From (For) Operating Activities | |||||||
Net income | $ | 165.1 | $ | 49.6 | |||
Adjustments to derive cash flows: | |||||||
Depreciation and amortization | 293.5 | 324.0 | |||||
Gain on sale of business | (72.4 | ) | — | ||||
Share-based compensation | 40.9 | 26.6 | |||||
Impairment charges | 42.9 | 223.5 | |||||
Change in financial assets | (18.5 | ) | (65.9 | ) | |||
Restructuring charges | 26.7 | 23.2 | |||||
Deferred income taxes | 10.1 | (8.4 | ) | ||||
Amortization of debt premium | (3.8 | ) | (6.2 | ) | |||
Other non-cash adjustments, net | 38.5 | 6.4 | |||||
Subtotal | 523.0 | 572.8 | |||||
Increase (decrease) in cash due to: | |||||||
Accounts receivable | (12.1 | ) | 20.2 | ||||
Inventories | (78.3 | ) | (101.3 | ) | |||
Accounts payable | 33.7 | 44.5 | |||||
Payroll and related taxes | (10.6 | ) | (40.8 | ) | |||
Accrued customer programs | (82.7 | ) | (1.2 | ) | |||
Accrued liabilities | (24.8 | ) | (31.1 | ) | |||
Accrued income taxes | (65.8 | ) | (60.0 | ) | |||
Other, net | 15.9 | (4.4 | ) | ||||
Subtotal | (224.7 | ) | (174.1 | ) | |||
Net cash from (for) operating activities | 298.3 | 398.7 | |||||
Cash Flows From (For) Investing Activities | |||||||
Proceeds from royalty rights | 2.2 | 11.4 | |||||
Purchase of investment securities | — | (7.5 | ) | ||||
Acquisitions of businesses, net of cash acquired | (749.5 | ) | — | ||||
Proceeds from the Royalty Pharma contingent milestone | 250.0 | — | |||||
Asset acquisitions | (86.2 | ) | (32.8 | ) | |||
Additions to property, plant and equipment | (90.3 | ) | (56.8 | ) | |||
Net proceeds from sale of business | 183.4 | — | |||||
Other investing, net | 0.6 | 5.0 | |||||
Net cash from (for) investing activities | (489.8 | ) | (80.7 | ) | |||
Cash Flows From (For) Financing Activities | |||||||
Issuances of long-term debt | 600.0 | 431.0 | |||||
Payments on long-term debt | (476.0 | ) | (470.0 | ) | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | 0.8 | (8.7 | ) | ||||
Deferred financing fees | (1.0 | ) | (2.4 | ) | |||
Issuance of ordinary shares | 0.7 | 1.0 | |||||
Repurchase of ordinary shares | — | (400.0 | ) | ||||
Cash dividends | (83.6 | ) | (78.7 | ) | |||
Other financing, net | (7.6 | ) | (9.8 | ) | |||
Net cash from (for) financing activities | 33.3 | (537.6 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (14.9 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (152.6 | ) | (234.5 | ) | |||
Cash and cash equivalents, beginning of period | 551.1 | 678.7 | |||||
Cash and cash equivalents, end of period | $ | 398.5 | $ | 444.2 |
TABLE I | ||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||
Three Months Ended September 28, 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 | $ | 1,191.1 | $ | 412.8 | $ | 44.0 | $ | 289.4 | $ | 25.0 | $ | 54.4 | $ | (42.9 | ) | $ | 5.1 | $ | 92.2 | $ | 0.67 | |||||||||
As a % of reported net sales | 34.7 | % | 3.7 | % | 24.3 | % | 4.6 | % | (3.6 | )% | 0.4 | % | 7.7 | % | ||||||||||||||||
Effective tax rate | 5.2 | % | ||||||||||||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 49.6 | $ | (0.2 | ) | $ | (30.8 | ) | $ | — | $ | 80.6 | $ | — | $ | — | $ | 80.6 | $ | 0.59 | ||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | 5.6 | — | (11.4 | ) | (1.1 | ) | 18.1 | — | — | 18.1 | 0.13 | ||||||||||||||||||
Impairment charges | — | — | — | — | (10.9 | ) | 10.9 | — | — | 10.9 | 0.08 | |||||||||||||||||||
Asset abandonment | — | — | — | — | (7.1 | ) | 7.1 | — | — | 7.1 | 0.05 | |||||||||||||||||||
(Gain) loss on divestitures | — | — | — | — | (0.7 | ) | 0.7 | 72.4 | — | (71.7 | ) | (0.52 | ) | |||||||||||||||||
Unusual litigation | — | — | — | (9.3 | ) | — | 9.3 | — | — | 9.3 | 0.07 | |||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | (5.2 | ) | 5.2 | — | — | 5.2 | 0.04 | |||||||||||||||||||
Ranitidine market withdrawal* | 9.2 | 18.4 | — | — | — | 18.4 | — | — | 18.4 | 0.13 | ||||||||||||||||||||
Operating results attributable to held-for-sale business** | (1.8 | ) | (0.8 | ) | — | (2.0 | ) | — | 1.2 | — | — | 1.2 | 0.01 | |||||||||||||||||
Change in financial assets | — | — | — | — | — | — | 2.6 | — | (2.6 | ) | (0.02 | ) | ||||||||||||||||||
Loss on investment securities | — | — | — | — | — | — | (0.9 | ) | — | 0.9 | 0.01 | |||||||||||||||||||
Loss on early debt extinguishment | — | — | — | — | — | — | (0.2 | ) | — | 0.2 | — | |||||||||||||||||||
Separation and reorganization expense | — | — | — | (2.5 | ) | — | 2.5 | — | — | 2.5 | 0.02 | |||||||||||||||||||
Non-GAAP tax adjustments*** | — | — | — | — | — | — | — | 30.6 | (30.6 | ) | (0.22 | ) | ||||||||||||||||||
Adjusted | $ | 1,198.5 | $ | 485.6 | $ | 43.8 | $ | 233.4 | $ | — | $ | 208.4 | $ | 31.0 | $ | 35.7 | $ | 141.7 | $ | 1.04 | ||||||||||
As a % of adjusted net sales | 40.5 | % | 3.7 | % | 19.5 | % | 17.4 | % | 2.6 | % | 3.0 | % | 11.8 | % | ||||||||||||||||
Effective tax rate | 20.1 | % | ||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||||||
Reported | 136.8 | |||||||||||||||||||||||||||||
*Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. | ||||||||||||||||||||||||||||||
**Held-for-sale business includes our now divested animal health business. | ||||||||||||||||||||||||||||||
***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, $0.02 of which is attributable to the Ranitidine market withdrawal. | ||||||||||||||||||||||||||||||
****Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. |
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 29, 2018 | |||||||||
Consolidated | Net Sales | Net Income (Loss)*** | Diluted Earnings (Loss) per Share*** | ||||||
Reported | $ | 1,133.1 | $ | (67.5 | ) | $ | (0.49 | ) | |
Pre-tax adjustments: | |||||||||
Impairment charges | $ | 221.8 | $ | 1.61 | |||||
Amortization expense primarily related 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 and integration-related charges and contingent consideration adjustments | 1.4 | 0.01 | |||||||
Unusual litigation | 1.4 | 0.01 | |||||||
Loss 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 primarily 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 reported net loss, diluted shares outstanding equal basic shares outstanding. | |||||||||
***Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. |
TABLE II | |||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
September 28, 2019 | September 29, 2018 | ||||||||||||||||||||||||||||||
Worldwide Consumer* | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income (Loss) | |||||||||||||||||||||
Reported | $ | 960.8 | $ | 341.4 | $ | 28.7 | $ | 265.7 | $ | 34.7 | $ | 930.4 | $ | 348.0 | $ | 24.2 | $ | 242.1 | $ | (158.1 | ) | ||||||||||
As a % of reported net sales | 35.5 | % | 3.0 | % | 27.7 | % | 3.6 | % | 37.4 | % | 2.6 | % | 26.0 | % | (17.0 | )% | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 26.9 | $ | (0.2 | ) | $ | (30.7 | ) | $ | 57.8 | $ | 31.9 | $ | (0.3 | ) | $ | (32.6 | ) | $ | 64.7 | |||||||||
Unusual litigation | — | — | — | (9.3 | ) | 9.3 | — | — | (1.4 | ) | 1.4 | ||||||||||||||||||||
Impairment charges | — | — | — | — | 0.1 | — | — | — | 221.8 | ||||||||||||||||||||||
Asset abandonment | — | — | — | — | 7.1 | — | — | — | — | ||||||||||||||||||||||
Separation and reorganization expense | — | — | — | (2.5 | ) | 2.5 | — | — | (5.8 | ) | 5.8 | ||||||||||||||||||||
Operating results attributable to held-for-sale business** | (1.8 | ) | (0.8 | ) | — | (2.0 | ) | 1.2 | — | — | — | — | |||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 5.0 | — | — | — | 18.0 | ||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | — | — | — | — | 3.6 | (3.6 | ) | |||||||||||||||||||||
Ranitidine market withdrawal*** | 9.2 | 18.4 | — | — | 18.4 | — | — | — | — | ||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | 5.6 | — | (11.4 | ) | 17.0 | — | — | (0.9 | ) | 0.9 | ||||||||||||||||||||
Adjusted | $ | 968.2 | $ | 391.5 | $ | 28.5 | $ | 209.8 | $ | 153.1 | $ | 379.9 | $ | 23.9 | $ | 205.0 | $ | 150.9 | |||||||||||||
As a % of adjusted net sales (2019) / As a % of reported net sales (2018) | 40.4 | % | 3.0 | % | 21.7 | % | 15.8 | % | 40.8 | % | 2.6 | % | 22.0 | % | 16.2% | ||||||||||||||||
*Worldwide Consumer includes the CSCA and CSCI segments in addition to Corporate. | |||||||||||||||||||||||||||||||
**Held-for-sale business includes our now divested animal health business. | |||||||||||||||||||||||||||||||
***Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. | |||||||||||||||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
September 28, 2019 | September 29, 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 (Loss) | |||||||||||||||||||||
Reported | $ | 613.3 | $ | 185.1 | $ | 19.0 | $ | 76.9 | $ | 81.3 | $ | 596.2 | $ | 189.5 | $ | 13.8 | $ | 73.0 | $ | (119.0 | ) | ||||||||||
As a % of reported net sales | 30.2 | % | 3.1 | % | 12.5 | % | 13.3 | % | 31.8 | % | 2.3 | % | 12.2 | % | (20.0 | )% | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 7.0 | $ | (6.7 | ) | $ | 13.5 | $ | 10.6 | $ | (4.7 | ) | $ | 15.3 | |||||||||||||||
Unusual litigation | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Impairment charges | — | — | — | — | — | — | 221.7 | ||||||||||||||||||||||||
Asset abandonment | — | — | — | 7.1 | — | — | — | ||||||||||||||||||||||||
Separation and reorganization expense | — | — | (0.7 | ) | 0.7 | — | — | — | |||||||||||||||||||||||
Ranitidine market withdrawal* | 7.4 | 15.5 | — | 15.5 | — | — | — | ||||||||||||||||||||||||
Operating results attributable to held-for-sale business** | (1.8 | ) | (0.8 | ) | (2.0 | ) | 1.3 | — | — | — | |||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | 0.9 | — | — | — | ||||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | 3.5 | 1.1 | 2.4 | — | — | — | ||||||||||||||||||||||||
Adjusted | $ | 618.9 | $ | 210.3 | $ | 68.6 | $ | 122.7 | $ | 200.1 | $ | 68.3 | $ | 118.0 | |||||||||||||||||
As a % of adjusted net sales (2019) / As a % of reported net sales (2018) | 34.0 | % | 11.1 | % | 19.8 | % | 33.6 | % | 11.4 | % | 19.8% | ||||||||||||||||||||
*Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. | |||||||||||||||||||||||||||||||
**Held-for-sale business includes our now divested animal health business. |
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
September 28, 2019 | September 29, 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 (Loss) | |||||||||||||||||||||
Reported | $ | 347.5 | $ | 156.3 | $ | 9.7 | $ | 132.1 | $ | 13.2 | $ | 334.2 | $ | 158.6 | $ | 10.3 | $ | 134.9 | $ | (4.7 | ) | ||||||||||
As a % of reported net sales | 45.0 | % | 2.8 | % | 38.0 | % | 3.8 | % | 47.5 | % | 3.1 | % | 40.3 | % | (1.4 | )% | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 20.0 | $ | (0.1 | ) | $ | (24.1 | ) | $ | 44.2 | $ | 21.2 | $ | (0.2 | ) | $ | (27.9 | ) | $ | 49.4 | |||||||||
Impairment charges | — | — | — | — | 0.1 | — | — | — | 0.1 | ||||||||||||||||||||||
Unusual litigation | — | — | — | — | — | — | — | (1.4 | ) | 1.4 | |||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 1.1 | — | — | — | 18.0 | ||||||||||||||||||||||
Ranitidine market withdrawal* | 1.8 | 2.9 | — | — | 2.9 | — | — | — | — | ||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | 2.1 | — | — | 2.1 | — | — | — | — | ||||||||||||||||||||||
Adjusted | $ | 349.3 | $ | 181.3 | $ | 9.6 | $ | 108.0 | $ | 63.6 | $ | 179.8 | $ | 10.1 | $ | 105.6 | $ | 64.2 | |||||||||||||
As a % of adjusted net sales (2019) / As a % of reported net sales (2018) | 51.9 | % | 2.8 | % | 30.9 | % | 18.2 | % | 53.8 | % | 3.0 | % | 31.6 | % | 19.2 | % | |||||||||||||||
*Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. |
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
September 28, 2019 | September 29, 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 | $ | 230.3 | $ | 71.4 | $ | 15.3 | $ | 23.7 | $ | 19.7 | $ | 202.7 | $ | 76.8 | $ | 19.5 | $ | 20.7 | $ | 36.1 | |||||||||||
As a % of reported net sales | 31.0 | % | 6.6 | % | 10.3 | % | 8.5 | % | 37.9 | % | 9.6 | % | 10.2 | % | 17.8 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 22.7 | $ | (0.1 | ) | $ | 22.8 | $ | 20.6 | $ | (0.1 | ) | $ | 20.8 | |||||||||||||||||
(Gain) loss on divestitures | — | — | 0.7 | — | — | — | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | 0.2 | — | — | — | |||||||||||||||||||||||||
Impairment charges | — | — | 10.8 | — | — | — | |||||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | — | 1.1 | — | — | 0.5 | |||||||||||||||||||||||||
Adjusted | $ | 94.1 | $ | 23.6 | $ | 55.3 | $ | 97.4 | $ | 20.6 | $ | 57.4 | |||||||||||||||||||
As a % of reported net sales | 40.9 | % | 10.2 | % | 24.0 | % | 48.1 | % | 10.1 | % | 28.3 | % |
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
September 28, 2019 | September 29, 2018 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated | $ | 1,191.1 | $ | 1,133.1 | 5.1% | 2.3% | 7.4% | ||||||
CSCA | $ | 613.3 | $ | 596.2 | 2.9% | 1.0% | 3.9% | ||||||
CSCI | $ | 347.5 | $ | 334.2 | 4.0% | 6.1% | 10.1% | ||||||
RX | $ | 230.3 | $ | 202.7 | 13.6% | (0.4)% | 13.2% | ||||||
Consolidated | $ | 1,191.1 | $ | 1,133.1 | |||||||||
Plus: Ranitidine market withdrawal* | 9.2 | — | |||||||||||
Less: animal health | (1.8 | ) | (20.4 | ) | |||||||||
Less: infant foods | — | (8.1 | ) | ||||||||||
Consolidated net sales as so adjusted | $ | 1,198.5 | $ | 1,104.6 | 8.5% | 1.7% | 10.2% | ||||||
Worldwide Consumer | |||||||||||||
CSCA | $ | 613.3 | $ | 596.2 | |||||||||
CSCI | 347.5 | 334.2 | |||||||||||
Total Worldwide Consumer | $ | 960.8 | $ | 930.4 | 3.3% | 2.8% | 6.1% | ||||||
Plus: Ranitidine market withdrawal* | 9.2 | — | |||||||||||
Less: animal health | (1.8 | ) | (20.4 | ) | |||||||||
Less: infant foods | — | (8.1 | ) | ||||||||||
Worldwide Consumer net sales as so adjusted | $ | 968.2 | $ | 901.9 | 7.4% | 2.1% | 9.5% | ||||||
CSCA | $ | 613.3 | $ | 596.2 | |||||||||
Plus: Ranitidine market withdrawal* | 7.4 | — | |||||||||||
Less: animal health | (1.8 | ) | (20.4 | ) | |||||||||
Less: infant foods | — | (8.1 | ) | ||||||||||
CSCA net sales as so adjusted | $ | 618.9 | $ | 567.7 | 9.0% | 0.1% | 9.1% | ||||||
CSCI | $ | 347.5 | $ | 334.2 | |||||||||
Plus: Ranitidine market withdrawal* | 1.8 | — | |||||||||||
Less: Ranir | (22.8 | ) | — | ||||||||||
CSCI net sales as so adjusted | $ | 326.5 | $ | 334.2 | (2.3)% | 5.6% | 3.3% | ||||||
*Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. |
TABLE IV | |
PERRIGO COMPANY PLC | |
RECONCILIATION OF NON-GAAP MEASURES | |
2019 CONSOLIDATED GUIDANCE* | |
(in millions) | |
(unaudited) | |
Full Year | |
2019 EPS Guidance | |
Reported** | $2.01 - $2.21 |
Amortization expense related primarily to acquired intangible assets | 2.26 |
Impairment charges | 0.31 |
Unusual litigation | 0.23 |
Restructuring charges and other termination benefits | 0.20 |
Acquisition-related charges and contingent consideration adjustments | 0.13 |
Ranitidine market withdrawal*** | 0.13 |
Separation and reorganization expense | 0.12 |
Losses on investment securities | 0.06 |
Asset abandonment | 0.05 |
Operating results attributable to held-for-sale business**** | (0.02) |
Change in financial assets | (0.14) |
(Gain) loss on divestitures | (0.53) |
Tax effect of non-GAAP adjustments | (0.96) |
Adjusted | $3.85 - $4.05 |
*Guidance table includes Q1 - Q3 actual results for all reconciling line items, plus estimated amortization expense, unusual litigation, and the corresponding tax effect for Q4. | |
**Guidance excludes Q4 impact related to the Royalty Pharma contingent milestone. | |
***Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. | |
****Held-for-sale business includes our now divested animal health business. |
TABLE V | ||||||||||
PERRIGO COMPANY PLC | ||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||
(in millions, except per share amounts) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
September 28, 2019 | September 29, 2018 | Total Change | ||||||||
Consolidated adjusted net income | $ | 141.7 | $ | 149.9 | (5.5)% | |||||
Consolidated adjusted EPS | $ | 1.04 | $ | 1.09 | (4.7)% | |||||
Adjusted gross profit | ||||||||||
Worldwide Consumer | $ | 391.5 | $ | 379.9 | 3.1% | |||||
CSCA | $ | 210.3 | $ | 200.1 | 5.1% | |||||
CSCI | $ | 181.3 | $ | 179.8 | 0.8% | |||||
RX | $ | 94.1 | $ | 97.4 | (3.4)% | |||||
Adjusted gross margin | ||||||||||
Worldwide Consumer | 40.4 | % | 40.8 | % | (40) bps | |||||
CSCA | 34.0 | % | 33.6 | % | 40 bps | |||||
CSCI | 51.9 | % | 53.8 | % | (190) bps | |||||
RX | 40.9 | % | 48.1 | % | (720) bps | |||||
Adjusted operating income | ||||||||||
Worldwide Consumer | $ | 153.1 | $ | 150.9 | 1.5% | |||||
CSCA | $ | 122.7 | $ | 118.0 | 4.0% | |||||
CSCI | $ | 63.6 | $ | 64.2 | (0.9)% | |||||
RX | $ | 55.3 | $ | 57.4 | (3.6)% | |||||
Adjusted operating margin | ||||||||||
Worldwide Consumer | 15.8 | % | 16.2 | % | (40) bps | |||||
CSCA | 19.8 | % | 19.8 | % | 0 bps | |||||
CSCI | 18.2 | % | 19.2 | % | (100) bps | |||||
RX | 24.0 | % | 28.3 | % | (430) bps | |||||
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Cover Page |
Nov. 06, 2019 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Nov. 06, 2019 |
Entity Registrant Name | Perrigo Company plc |
Entity File Number | 001-36353 |
Entity Incorporation, State or Country Code | L2 |
Entity Address, Address Line One | The Sharp Building, |
Entity Address, Address Line Two | Hogan Place, |
Entity Address, City or Town | Dublin 2, |
Entity Address, Country | IE |
Entity Address, Postal Zip Code | D02 TY74 |
Country Region | 353 |
City Area Code | 1 |
Local Phone Number | 7094000 |
Title of 12(b) Security | Ordinary shares |
Trading Symbol | PRGO |
Security Exchange Name | NYSE |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001585364 |
Amendment Flag | false |
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