UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 8, 2012
PERRIGO COMPANY
(Exact name of registrant as specified in its charter)
MICHIGAN | 0-19725 | 38-2799573 | ||
(State of other | (Commission | (IRS Employer | ||
Jurisdiction of | File Number) | Identification | ||
Incorporation) | No.) |
515 Eastern Avenue, Allegan, Michigan | 49010 | |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (269) 673-8451
Not Applicable
(Former name or address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. Results of Operations and Financial Condition
On May 8, 2012, Perrigo Company (the Company) released earnings for the third quarter and year-to-date fiscal year 2012. The press release related to the Company’s earnings is attached as Exhibit 99.1.
The earnings release contains certain non-GAAP measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts different than the most directly comparable measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP) in the statements of income, balance sheets or statements of cash flows of the company. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation for cost of sales, gross profit, operating expenses, operating income, income tax expense, income from continuing operations and earnings per share from continuing operations within its earnings release to the most directly comparable U.S. GAAP measures for these non-GAAP measures.
The Company excludes the items listed below in the applicable period when monitoring and evaluating the on-going financial results and trends of its business, and believes that presenting operating results excluding these items is also useful for investors, since it provides important insight into the Company's on-going core business operations on a normalized basis. Adjusted earnings is one of the primary indicators management uses for planning and forecasting in future periods, including trending and analyzing the core operating performance of the Company’s business from period to period without the effect of the non-core business items indicated. Management uses adjusted earnings to prepare operating budgets and forecasts and to measure the Company’s performance against those budgets and forecasts on a corporate and segment level.
Items excluded from reported results and guidance:
Third Quarter and Year-to-Date Fiscal 2011 Results
- | Amortization of acquired intangible assets related to business combinations and asset acquisitions |
- | Acquisition-related charges for pending business acquisition |
Third Quarter and Year-to-Date Fiscal 2012 Results
- | Amortization of acquired intangible assets related to business combinations and asset acquisitions |
- | A charge associated with the step-up in value of inventory acquired |
- | Acquisition-related and severance charges for completed business acquisition |
- | Restructuring charges for organizational improvements |
- | Earnings associated with sale of pipeline development projects |
Fiscal 2011 Results
- | Amortization of acquired intangible assets related to business combinations and asset acquisitions |
- | Acquisition-related charges for pending business acquisition |
- | Restructuring charges for organizational improvements |
Fiscal 2012 Guidance
- | Amortization of acquired intangible assets related to business combinations and asset acquisitions |
- | A charge associated with the step-up in value of inventory acquired |
- | Acquisition-related and severance charges for completed business acquisition |
- | Restructuring charges for organizational improvements |
- | Earnings associated with sale of pipeline development projects |
The information in this Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Report shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. Financial Statements and Exhibits
(d) | Exhibits |
99.1 | Press release issued by Perrigo Company on May 8, 2012, furnished solely pursuant to Item 2.02 of Form 8-K. |
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PERRIGO COMPANY
(Registrant) | ||
Dated: May 8, 2012 | By: | /s/ Judy L. Brown |
Judy L. Brown
Executive Vice President and Chief Financial Officer |
Exhibit Index
Exhibit 99.1 – Press Release issued by Perrigo Company on May 8, 2012, furnished solely pursuant to Item 2.02 of Form 8-K.
Perrigo Reports Record Third Quarter Revenue And Earnings And Raises Full Year EPS Guidance
-- Fiscal third quarter revenue from continuing operations increased $86 million, or 13%, to $778 million
-- Fiscal third quarter adjusted income from continuing operations increased 32% to $133 million, or $1.41 per diluted share
-- Fiscal third quarter GAAP income from continuing operations increased 26% to $116 million, or $1.23 per diluted share
-- With the inclusion of a third quarter tax benefit, management raises full-year fiscal 2012 adjusted diluted earnings from continuing operations guidance to be in a range of $4.90-$5.00 per diluted share from previously announced $4.70-$4.80 per diluted share
-- Management adjusts consolidated full-year fiscal 2012 revenue guidance to be in a range of 15% - 18% growth year over year from previously announced 17% - 20% attributable primarily to historically mild cough/cold and flu season
ALLEGAN, Mich., May 8, 2012 /PRNewswire/ -- Perrigo Company (Nasdaq: PRGO; TASE) today announced results for its third quarter ended March 31, 2012.
(Logo: http://photos.prnewswire.com/prnh/20120301/DE62255LOGO)
Perrigo's Chairman and CEO Joseph C. Papa commented, "We are very pleased with our record fiscal third quarter revenue and earnings performance. These strong results were made possible by the continued operational excellence of the team. Headlining this execution were the $64 million in new product launches, mostly in OTC, which keep us on track to exceed our $190 million new product sales goal for fiscal 2012. Global Consumer Healthcare sales grew 6% in the quarter, driven mainly by U.S. OTC sales growth of 8% despite a historically mild cough/cold and flu season. In Nutritionals, we were able to improve adjusted margins from last quarter as measures put in place partially offset the volatility in raw materials pricing. Our Rx segment continues to exceed our expectations in both our existing and newly acquired business. We are continuing to make quality healthcare more affordable to consumers around the globe."
Refer to Table I at the end of this press release for adjustments in the current year and prior year periods and additional non-GAAP disclosure information.
The Company's reported results are summarized in the attached Condensed Consolidated Statements of Income, Balance Sheets and Statements of Cash Flows.
Perrigo Company (from continuing operations, in thousands, except per share amounts) (see the attached Table I for reconciliation to GAAP numbers) | |||||
Third Quarter | Nine Months | ||||
2012 | 2011 | 2012 | 2011 | ||
Net Sales | $778,017 | $691,563 | $2,341,482 | $2,050,400 | |
Reported Income | $115,727 | $91,531 | $285,924 | $254,988 | |
Adjusted Income | $132,679 | $100,212 | $348,430 | $279,944 | |
Reported Diluted EPS | $1.23 | $0.98 | $3.04 | $2.73 | |
Adjusted Diluted EPS | $1.41 | $1.07 | $3.71 | $3.00 | |
Diluted Shares | 94,124 | 93,549 | 94,028 | 93,371 | |
Third Quarter Results
Net sales for the third quarter of fiscal 2012 were $778 million, an increase of 13% over fiscal 2011. The increase was driven primarily by $70 million of net sales attributable to the Paddock Laboratories, Inc. (Paddock) and CanAm Care, LLC acquisitions and new product sales of $64 million, partially offset by decreases in sales of certain existing products, primarily in the Consumer Healthcare and Nutritionals segments. Reported income from continuing operations was approximately $116 million, or $1.23 per diluted share, an increase over $92 million, or $0.98 per diluted share, a year ago. Excluding charges as outlined in Table I at the end of this release, third quarter fiscal 2012 adjusted income from continuing operations was $133 million, or $1.41 per diluted share, up 32% over fiscal 2011. In the quarter, there was a $0.20 per diluted share tax benefit as a result of the closing of various tax audits and statutory expirations. Reported gross margin increased 130 basis points to 35.9%, while adjusted gross margin increased 190 basis points to 37.6%. Reported operating margin increased 100 basis points to 18.8%, while adjusted operating margin increased by 250 basis points to 22.1%.
Nine Months Results
Net sales for the first nine months of fiscal 2012 were $2,341 million, an increase of 14% over fiscal 2011. The increase was driven primarily by $177 million of net sales attributable to the Paddock and CanAm Care acquisitions and new product sales of $160 million, partially offset by decreases in sales of certain existing products, primarily in the Consumer Healthcare and Nutritionals segments. Reported gross profit was $802 million, an increase of 14% over fiscal 2011, and reported gross margin was 34.2%, as compared to 34.3% last year. Adjusted gross profit was approximately $871 million, an increase of 20% over fiscal 2011, and adjusted gross margin increased 180 basis points to 37.2%. Reported operating income was $408 million, an increase of 11% over fiscal 2011, and reported operating margin was 17.4%, as compared to 17.9% last year. Adjusted operating income was $505 million, an increase of 25% over fiscal 2011, and adjusted operating margin increased 190 basis points to 21.6%.
Consumer Healthcare
Consumer Healthcare segment net sales for the third quarter rose to $449 million from $425 million in the third quarter last year, an increase of 6%, due to new product sales of $34 million (primarily in the cough/cold and dermatological categories), an increase in sales of existing products of $5 million (primarily in the smoking cessation category), and net sales attributable to the acquisition of CanAm Care of approximately $8 million. These increases were partially offset by a decline of approximately $25 million in existing product sales due primarily to a historically mild cough/cold and flu season. Reported operating income increased by $2 million to approximately $75 million, while adjusted operating income increased by $3 million to $77 million, driven by profit contribution on new product sales. Gross and operating margins were impacted year-over-year by increased competition on a key product in the gastrointestinal category and under absorption of fixed production costs relative to lower volume output caused by a historically mild cough/cold and flu season.
Year-to-date net sales increased 6% or $81 million compared to fiscal 2011 driven by new product sales of $76 million (mainly in the cough/cold, diabetes and dermatological care categories), along with an increase in sales of existing products of approximately $29 million in the cough/cold and smoking cessation categories. These increases were partially offset by a decline of $32 million in sales of existing products within the gastrointestinal and analgesics product categories.
On January 6, 2012, the Company signed a definitive agreement to acquire substantially all of the assets of CanAm Care, a privately-held, Alpharetta, Georgia-based distributor of diabetes care products, for approximately $36 million in cash.
On January 12, 2012, the Company announced that the United States District Court for the Western District of Michigan granted summary judgment in its favor in patent litigation involving Guaifenesin Extended-Release Tablets, 600 mg, a generic version of Mucinex® tablets.
On February 14, 2012, the Company announced that it began shipping Loratadine-D 12 hour extended release tablets, the store brand equivalent to Schering-Plough's Claritin-D® 12 hour extended release tablets.
On March 1, 2012, the Company announced that it initiated market launch and made its first shipments of Minoxidil 5% Foam, comparable to Rogaine® 5% Foam Hair Regrowth Treatment, to its retail and wholesale customers.
Nutritionals
Nutritionals segment net sales for the third quarter decreased $6 million to $118 million compared to fiscal 2011 due to lower existing product sales of $27 million in the Vitamins, Minerals and Supplements (VMS) and infant formula categories. These decreases were largely offset by new product sales of $20 million, primarily in the infant formula category. The decrease in sales of existing infant formula products was primarily due to the transition to next generation formulas within the portfolio. Infant formula sales were also impacted by the absence of increased demand of approximately $8 million in net sales that the Company experienced last year as a result of a competitor's product recall, along with a decline in U.S. birth rates year-over-year, while the decrease in the VMS category was driven by increased competition. Reported operating margin decreased 1,140 basis points to 3.1%, impacted by restructuring at the Company's Florida facility disclosed last quarter. Adjusted operating margin decreased 430 basis points to 14.8% due to under absorption of fixed production costs relative to lower volume output year-over-year, increased costs of raw materials for infant formula and change in product mix.
For the first nine months of fiscal 2012, net sales decreased approximately $15 million or 4% to $366 million, compared to fiscal 2011, due to a decline in existing product sales of $72 million partially offset by new product sales of $57 million, primarily in the infant formula category.
Rx Pharmaceuticals
The Rx Pharmaceuticals segment third quarter net sales increased 84%, or $71 million, to approximately $156 million compared to fiscal 2011. This increase was due to net sales of $62 million from the Paddock acquisition as well as continued growth of $9 million in the base business. Reported operating margin increased 780 basis points to 44.7%, while adjusted operating margin increased 990 basis points to 50.2%. These increases were due to gross profit contribution from the Paddock acquisition and new product sales, along with favorable pricing on select products.
For the first nine months of fiscal 2012, net sales increased 83% or $209 million to $460 million, as compared to fiscal 2011. This increase was due to net sales of $169 million from the Paddock acquisition, new product sales of $18 million and favorable pricing on select products.
On January 23, 2012, the Company announced that it filed with the U.S. Food and Drug Administration (FDA) an Abbreviated New Drug Application (ANDA) for Azelastine Hydrochloride Nasal Spray (0.15%).
API
The API segment reported third quarter net sales of $37 million, a 10% decrease compared to fiscal 2011. The decrease was due to lower existing product sales of approximately $5 million driven by lower demand of certain products and pricing pressures on a key product. This decrease was partially offset by new product sales of $1 million. Reported operating margin increased 190 basis points to 29.4%, while adjusted operating margin increased 210 basis points to 30.8%.
For the first nine months of fiscal 2012, net sales increased 7% or $8 million to $127 million, compared to $119 million in fiscal 2011. This increase was due to new product sales of $6 million, increased sales of existing products of $1 million, and favorable changes in foreign currency exchange rates of $1 million.
On March 21, 2012, the Company announced that it received a final "Approval for Registration" letter from the Australian Therapeutic Goods Administration permitting the Company to sell generic temozolomide in Australia.
Other
Continuing operations for the Other category, consisting of the Israel Pharmaceutical and Diagnostic Products operating segment, reported third quarter net sales of $19 million, an increase of 12% compared to fiscal 2011. This increase was due to new product sales of $1 million, along with an increase in sales of existing products of $1 million. For the first nine months of fiscal year 2012, net sales were $56 million, an increase of 15% compared to fiscal 2011, driven by new product sales of $4 million and an increase in sales of existing products of approximately $4 million.
Guidance
Reported fiscal 2012 earnings from continuing operations are expected to be between $4.10 and $4.20 per diluted share. Excluding the charges outlined in Table III at the end of this release, expected fiscal 2012 adjusted earnings from continuing operations are expected to be between $4.90 and $5.00 per diluted share, up from previously announced guidance of $4.70 to $4.80 per diluted share, due to the inclusion of the $0.20 per diluted share tax benefit realized in the fiscal third quarter. This new range implies a year-over-year growth rate of adjusted earnings from continuing operations of 22% to 25% over fiscal 2011 adjusted earnings per share.
Chairman and CEO Joseph C. Papa concluded, "The strength of our diversified business model and the excellent execution by the team was clearly evident this quarter. With numerous exciting new product launches expected, we are looking forward to a strong end to the fiscal year."
Perrigo will host a conference call to discuss fiscal third quarter 2012 results at 10:00 a.m. (ET) on Tuesday, May 8, 2012. The conference call will be available live via webcast to interested parties on the Perrigo website http://www.perrigo.com or by phone 877-248-9413, International 973-582-2737, and reference ID# 69598952. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Tuesday, May 8, 2012, until midnight Friday, May 25, 2012. To listen to the replay, call 855-859-2056, International 404-537-3406, access code 69598952.
Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, and active pharmaceutical ingredients (API). The Company is the world's largest manufacturer of OTC pharmaceutical products and infant formulas for the store brand market. The Company's primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico, the United Kingdom and Australia. Visit Perrigo on the Internet (http://www.perrigo.com).
Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in the Company's Form 10-K for the year ended June 25, 2011, as well as the Company's subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PERRIGO COMPANY | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Third Quarter | Year-to-Date | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net sales | $ | 778,017 | $ | 691,563 | $ | 2,341,482 | $ | 2,050,400 | ||||||||
Cost of sales | 498,744 | 452,429 | 1,539,755 | 1,347,808 | ||||||||||||
Gross profit | 279,273 | 239,134 | 801,727 | 702,592 | ||||||||||||
Operating expenses | ||||||||||||||||
Distribution | 10,181 | 8,525 | 29,540 | 25,722 | ||||||||||||
Research and development | 27,950 | 23,511 | 78,736 | 65,842 | ||||||||||||
Selling and administration | 87,991 | 84,185 | 278,080 | 244,109 | ||||||||||||
Restructuring | 7,081 | - | 7,081 | - | ||||||||||||
Total operating expenses | 133,203 | 116,221 | 393,437 | 335,673 | ||||||||||||
Operating income | 146,070 | 122,913 | 408,290 | 366,919 | ||||||||||||
Interest, net | 16,651 | 10,915 | 44,862 | 31,718 | ||||||||||||
Other income, net | (5,202) | (753) | (4,221) | (1,945) | ||||||||||||
Income from continuing operations before | ||||||||||||||||
income taxes | 134,621 | 112,751 | 367,649 | 337,146 | ||||||||||||
Income tax expense | 18,894 | 21,220 | 81,725 | 82,158 | ||||||||||||
Income from continuing operations | 115,727 | 91,531 | 285,924 | 254,988 | ||||||||||||
Loss from discontinued operations, | ||||||||||||||||
net of tax | - | (2,446) | - | (1,361) | ||||||||||||
Net income | $ | 115,727 | $ | 89,085 | $ | 285,924 | $ | 253,627 | ||||||||
Earnings (loss) per share (1) | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 1.24 | $ | 0.99 | $ | 3.07 | $ | 2.77 | ||||||||
Discontinued operations | - | (0.03) | - | (0.01) | ||||||||||||
Basic earnings per share | $ | 1.24 | $ | 0.96 | $ | 3.07 | $ | 2.75 | ||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 1.23 | $ | 0.98 | $ | 3.04 | $ | 2.73 | ||||||||
Discontinued operations | - | (0.03) | - | (0.01) | ||||||||||||
Diluted earnings per share | $ | 1.23 | $ | 0.95 | $ | 3.04 | $ | 2.72 | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 93,330 | 92,459 | 93,152 | 92,175 | ||||||||||||
Diluted | 94,124 | 93,549 | 94,028 | 93,371 | ||||||||||||
Dividends declared per share | $ | 0.0800 | $ | 0.0700 | $ | 0.2300 | $ | 0.2025 | ||||||||
(1) The sum of individual per share amounts may not equal due to rounding. | ||||||||||||||||
See accompanying notes to condensed consolidated financial statements. | ||||||||||||||||
PERRIGO COMPANY | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(in thousands) | ||||||||||
(unaudited) | ||||||||||
March 31, 2012 | June 25, 2011 | March 26, 2011 | ||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 554,280 | $ | 310,104 | $ | 223,237 | ||||
Accounts receivable, net | 560,740 | 477,851 | 464,190 | |||||||
Inventories | 589,947 | 505,576 | 494,278 | |||||||
Current deferred income taxes | 51,269 | 30,474 | 22,930 | |||||||
Income taxes refundable | 766 | 370 | 2,103 | |||||||
Prepaid expenses and other current assets | 33,886 | 50,350 | 50,112 | |||||||
Current assets of discontinued operations | - | 2,568 | 2,797 | |||||||
Total current assets | 1,790,888 | 1,377,293 | 1,259,647 | |||||||
Property and equipment | 1,096,749 | 1,005,798 | 950,478 | |||||||
Less accumulated depreciation | (532,335) | (498,490) | (484,575) | |||||||
564,414 | 507,308 | 465,903 | ||||||||
Goodwill and other indefinite-lived intangible assets | 830,689 | 644,902 | 640,107 | |||||||
Other intangible assets, net | 752,600 | 567,573 | 576,436 | |||||||
Non-current deferred income taxes | 12,390 | 10,531 | 13,786 | |||||||
Other non-current assets | 89,073 | 81,614 | 81,612 | |||||||
$ | 4,040,054 | $ | 3,189,221 | $ | 3,037,491 | |||||
Liabilities and Shareholders' Equity | ||||||||||
Current liabilities | ||||||||||
Accounts payable | $ | 307,017 | $ | 343,278 | $ | 286,795 | ||||
Short-term debt | - | 2,770 | 1,180 | |||||||
Payroll and related taxes | 74,450 | 81,455 | 71,521 | |||||||
Accrued customer programs | 103,868 | 91,374 | 91,704 | |||||||
Accrued liabilities | 83,886 | 57,514 | 79,485 | |||||||
Accrued income taxes | 20,530 | 10,551 | 17,351 | |||||||
Current portion of long-term debt | 40,000 | 15,000 | 15,000 | |||||||
Current liabilities of discontinued operations | - | 4,093 | 3,570 | |||||||
Total current liabilities | 629,751 | 606,035 | 566,606 | |||||||
Non-current liabilities | ||||||||||
Long-term debt, less current portion | 1,454,620 | 875,000 | 875,442 | |||||||
Non-current deferred income taxes | 19,543 | 10,601 | 11,900 | |||||||
Other non-current liabilities | 163,466 | 166,598 | 158,444 | |||||||
Total non-current liabilities | 1,637,629 | 1,052,199 | 1,045,786 | |||||||
Shareholders' equity | ||||||||||
Controlling interest shareholders' equity: | ||||||||||
Preferred stock, without par value, 10,000 shares authorized | - | - | - | |||||||
Common stock, without par value, 200,000 shares authorized | 496,320 | 467,661 | 458,811 | |||||||
Accumulated other comprehensive income | 75,800 | 127,050 | 109,080 | |||||||
Retained earnings | 1,198,740 | 934,333 | 855,287 | |||||||
1,770,860 | 1,529,044 | 1,423,178 | ||||||||
Noncontrolling interest | 1,814 | 1,943 | 1,921 | |||||||
Total shareholders' equity | 1,772,674 | 1,530,987 | 1,425,099 | |||||||
$ | 4,040,054 | $ | 3,189,221 | $ | 3,037,491 | |||||
Supplemental Disclosures of Balance Sheet Information | ||||||||||
Related to Continuing Operations | ||||||||||
Allowance for doubtful accounts | $ | 2,483 | $ | 7,837 | $ | 7,618 | ||||
Working capital | $ | 1,161,137 | $ | 772,783 | $ | 693,814 | ||||
Preferred stock, shares issued and outstanding | - | - | - | |||||||
Common stock, shares issued and outstanding | 93,405 | 92,778 | 92,682 | |||||||
See accompanying notes to condensed consolidated financial statements. | ||||||||||
PERRIGO COMPANY | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Year-to-Date | |||||||
2012 | 2011 | ||||||
Cash Flows (For) From Operating Activities | |||||||
Net income | $ | 285,924 | $ | 253,627 | |||
Adjustments to derive cash flows | |||||||
Gain on sale of pipeline development projects | (3,500) | - | |||||
Restructuring | 7,081 | - | |||||
Depreciation and amortization | 101,712 | 76,257 | |||||
Share-based compensation | 13,924 | 11,526 | |||||
Loss on sale of business | - | 2,151 | |||||
Income tax benefit from exercise of stock options | (447) | 1,621 | |||||
Excess tax benefit of stock transactions | (12,202) | (16,256) | |||||
Deferred income taxes (credit) | 12,021 | (60,845) | |||||
Subtotal | 404,513 | 268,081 | |||||
Changes in operating assets and liabilities, net of business acquisitions | |||||||
Accounts receivable | (28,723) | (104,197) | |||||
Inventories | (27,523) | (31,304) | |||||
Accounts payable | (43,867) | 15,521 | |||||
Payroll and related taxes | (9,707) | (9,072) | |||||
Accrued customer programs | (13,755) | 31,770 | |||||
Accrued liabilities | 17,584 | (10,739) | |||||
Accrued income taxes | 19,077 | 59,546 | |||||
Other | (5,979) | 9,428 | |||||
Subtotal | (92,893) | (39,047) | |||||
Net cash from operating activities | 311,620 | 229,034 | |||||
Cash Flows (For) From Investing Activities | |||||||
Proceeds from sales of securities | - | 560 | |||||
Return of proceeds from sale of business | - | (3,558) | |||||
Acquisitions of businesses, net of cash acquired | (582,329) | 2,624 | |||||
Proceeds from sale of intangible assets and pipeline development projects | 10,500 | - | |||||
Acquisitions of assets | (750) | (10,000) | |||||
Additions to property and equipment | (85,715) | (46,542) | |||||
Net cash for investing activities | (658,294) | (56,916) | |||||
Cash Flows (For) From Financing Activities | |||||||
Repayments of short-term debt, net | (2,770) | (7,820) | |||||
Borrowings of long-term debt | 1,089,620 | 150,442 | |||||
Repayments of long-term debt | (485,000) | (195,000) | |||||
Deferred financing fees | (5,108) | (5,158) | |||||
Excess tax benefit of stock transactions | 12,202 | 16,256 | |||||
Issuance of common stock | 10,040 | 12,476 | |||||
Repurchase of common stock | (7,954) | (8,285) | |||||
Cash dividends | (21,516) | (18,779) | |||||
Net cash from (for) financing activities | 589,514 | (55,868) | |||||
Effect of exchange rate changes on cash | 1,336 | (2,778) | |||||
Net increase in cash and cash equivalents | 244,176 | 113,472 | |||||
Cash and cash equivalents, beginning of period | 310,104 | 109,765 | |||||
Cash and cash equivalents, end of period | $ 554,280 | $ 223,237 | |||||
Supplemental Disclosures of Cash Flow Information | |||||||
Cash paid/received during the period for: | |||||||
Interest paid | $ | 29,234 | $ | 27,759 | |||
Interest received | $ | 2,222 | $ | 2,594 | |||
Income taxes paid | $ | 53,216 | $ | 83,494 | |||
Income taxes refunded | $ | 830 | $ | 1,303 | |||
See accompanying notes to condensed consolidated financial statements. | |||||||
Table I | ||||||||||||||||
PERRIGO COMPANY | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Consolidated | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 778,017 | $ - | $ 778,017 | $ 691,563 | $ - | $ 691,563 | 13 % | 13 % | ||||||||
Cost of sales | 498,744 | 13,505 | (a) | 485,239 | 452,429 | 7,703 | (a) | 444,726 | 10 % | 9 % | ||||||
Gross profit | 279,273 | 13,505 | 292,778 | 239,134 | 7,703 | 246,837 | 17 % | 19 % | ||||||||
Operating expenses | ||||||||||||||||
Distribution | 10,181 | - | 10,181 | 8,525 | - | 8,525 | 19 % | 19 % | ||||||||
Research and development | 27,950 | - | 27,950 | 23,511 | - | 23,511 | 19 % | 19 % | ||||||||
Selling and administration | 87,991 | 5,027 | (a) | 82,964 | 84,185 | 5,095 | (a,d) | 79,090 | 5 % | 5 % | ||||||
Restructuring | 7,081 | 7,081 | (b) | - | - | - | - | - | - | |||||||
Total operating expenses | 133,203 | 12,108 | 121,095 | 116,221 | 5,095 | 111,126 | 15 % | 9 % | ||||||||
Operating income | 146,070 | 25,613 | 171,683 | 122,913 | 12,798 | 135,711 | 19 % | 27 % | ||||||||
Interest, net | 16,651 | - | 16,651 | 10,915 | - | 10,915 | 53 % | 53 % | ||||||||
Other income, net | (5,202) | - | (5,202) | (753) | - | (753) | 591 % | 591 % | ||||||||
Income from continuing operations before income taxes | 134,621 | 25,613 | 160,234 | 112,751 | 12,798 | 125,549 | 19 % | 28 % | ||||||||
Income tax expense | 18,894 | 8,661 | (c) | 27,555 | 21,220 | 4,117 | (c) | 25,337 | (11)% | 9 % | ||||||
Income from continuing operations | $ 115,727 | $ 16,952 | $ 132,679 | $ 91,531 | $ 8,681 | $ 100,212 | 26 % | 32 % | ||||||||
Diluted earnings per share from continuing operations | $ 1.23 | $ 1.41 | $ 0.98 | $ 1.07 | 26 % | 32 % | ||||||||||
Diluted weighted average shares outstanding | 94,124 | 94,124 | 93,549 | 93,549 | ||||||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 35.9 % | 37.6 % | 34.6 % | 35.7 % | ||||||||||||
Operating expenses | 17.1 % | 15.6 % | 16.8 % | 16.1 % | ||||||||||||
Operating income | 18.8 % | 22.1 % | 17.8 % | 19.6 % | ||||||||||||
Nine Months Ended | ||||||||||||||||
Consolidated | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 2,341,482 | $ - | $ 2,341,482 | $ 2,050,400 | $ - | $ 2,050,400 | 14 % | 14 % | ||||||||
Cost of sales | 1,539,755 | 68,797 | (a,e) | 1,470,958 | 1,347,808 | 22,271 | (a) | 1,325,537 | 14 % | 11 % | ||||||
Gross profit | 801,727 | 68,797 | 870,524 | 702,592 | 22,271 | 724,863 | 14 % | 20 % | ||||||||
Operating expenses | ||||||||||||||||
Distribution | 29,540 | - | 29,540 | 25,722 | - | 25,722 | 15 % | 15 % | ||||||||
Research and development | 78,736 | (3,500) | (f) | 82,236 | 65,842 | - | 65,842 | 20 % | 25 % | |||||||
Selling and administration | 278,080 | 24,076 | (a,g) | 254,004 | 244,109 | 14,504 | (a,h) | 229,605 | 14 % | 11 % | ||||||
Restructuring | 7,081 | 7,081 | (b) | - | - | - | - | - | - | |||||||
Total operating expenses | 393,437 | 27,657 | 365,780 | 335,673 | 14,504 | 321,169 | 17 % | 14 % | ||||||||
Operating income | 408,290 | 96,454 | 504,744 | 366,919 | 36,775 | 403,694 | 11 % | 25 % | ||||||||
Interest, net | 44,862 | - | 44,862 | 31,718 | - | 31,718 | 41 % | 41 % | ||||||||
Other income, net | (4,221) | - | (4,221) | (1,945) | - | (1,945) | 117 % | 117 % | ||||||||
Income from continuing operations before income taxes | 367,649 | 96,454 | 464,103 | 337,146 | 36,775 | 373,921 | 9 % | 24 % | ||||||||
Income tax expense | 81,725 | 33,948 | (c) | 115,673 | 82,158 | 11,819 | (c) | 93,977 | (1)% | 23 % | ||||||
Income from continuing operations | $ 285,924 | $ 62,506 | $ 348,430 | $ 254,988 | $ 24,956 | $ 279,944 | 12 % | 24 % | ||||||||
Diluted earnings per share from continuing operations | $ 3.04 | $ 3.71 | $ 2.73 | $ 3.00 | 11 % | 24 % | ||||||||||
Diluted weighted average shares outstanding | 94,028 | 94,028 | 93,371 | 93,371 | ||||||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 34.2 % | 37.2 % | 34.3 % | 35.4 % | ||||||||||||
Operating expenses | 16.8 % | 15.6 % | 16.4 % | 15.7 % | ||||||||||||
Operating income | 17.4 % | 21.6 % | 17.9 % | 19.7 % | ||||||||||||
(a) Deal-related amortization | ||||||||||||||||
(b) Restructuring charges related to Florida | ||||||||||||||||
(c) Total tax effect for non-GAAP pre-tax adjustments | ||||||||||||||||
(d) Acquisition-related costs of $1,095 | ||||||||||||||||
(e) Inventory step-up of $27,179 | ||||||||||||||||
(f) Proceeds from sale of pipeline development projects | ||||||||||||||||
(g) Acquisition-related and severance costs of $9,381 | ||||||||||||||||
(h) Acquisition-related costs of $2,410 | ||||||||||||||||
Table II | ||||||||||||||||
PERRIGO COMPANY | ||||||||||||||||
REPORTABLE SEGMENTS | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Consumer Healthcare | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 448,848 | $ - | $ 448,848 | $ 425,025 | $ - | $ 425,025 | 6 % | 6 % | ||||||||
Cost of sales | 311,121 | 1,010 | (a) | 310,111 | 289,825 | 918 | (a) | 288,907 | 7 % | 7 % | ||||||
Gross profit | 137,727 | 1,010 | 138,737 | 135,200 | 918 | 136,118 | 2 % | 2 % | ||||||||
Operating expenses | 63,105 | 1,411 | (a) | 61,694 | 62,996 | 1,210 | (a) | 61,786 | 0 % | (0)% | ||||||
Operating income | $ 74,622 | $ 2,421 | $ 77,043 | $ 72,204 | $ 2,128 | $ 74,332 | 3 % | 4 % | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 30.7 % | 30.9 % | 31.8 % | 32.0 % | ||||||||||||
Operating expenses | 14.1 % | 13.7 % | 14.8 % | 14.5 % | ||||||||||||
Operating income | 16.6 % | 17.2 % | 17.0 % | 17.5 % | ||||||||||||
Nine Months Ended | ||||||||||||||||
Consumer Healthcare | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 1,331,806 | $ - | $ 1,331,806 | $ 1,251,125 | $ - | $ 1,251,125 | 6 % | 6 % | ||||||||
Cost of sales | 921,670 | 3,038 | (a) | 918,632 | 853,119 | 2,414 | (a) | 850,705 | 8 % | 8 % | ||||||
Gross profit | 410,136 | 3,038 | 413,174 | 398,006 | 2,414 | 400,420 | 3 % | 3 % | ||||||||
Operating expenses | 193,794 | 3,848 | (a) | 189,946 | 179,089 | 3,710 | (a) | 175,379 | 8 % | 8 % | ||||||
Operating income | 216,342 | 6,886 | 223,228 | 218,917 | 6,124 | 225,041 | (1)% | (1)% | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 30.8 % | 31.0 % | 31.8 % | 32.0 % | ||||||||||||
Operating expenses | 14.6 % | 14.3 % | 14.3 % | 14.0 % | ||||||||||||
Operating income | 16.2 % | 16.8 % | 17.5 % | 18.0 % | ||||||||||||
Three Months Ended | ||||||||||||||||
Nutritionals | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 117,683 | $ - | $ 117,683 | $ 124,077 | $ - | $ 124,077 | (5)% | (5)% | ||||||||
Cost of sales | 86,312 | 3,021 | (a) | 83,291 | 86,047 | 3,000 | (a) | 83,047 | 0 % | 0 % | ||||||
Gross profit | 31,371 | 3,021 | 34,392 | 38,030 | 3,000 | 41,030 | (18)% | (16)% | ||||||||
Operating expenses | 27,697 | 10,697 | (a,b) | 17,000 | 20,098 | 2,790 | (a) | 17,308 | 38 % | (2)% | ||||||
Operating income | $ 3,674 | $ 13,718 | $ 17,392 | $ 17,932 | $ 5,790 | $ 23,722 | (80)% | (27)% | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 26.7 % | 29.2 % | 30.7 % | 33.1 % | ||||||||||||
Operating expenses | 23.5 % | 14.4 % | 16.2 % | 13.9 % | ||||||||||||
Operating income | 3.1 % | 14.8 % | 14.5 % | 19.1 % | ||||||||||||
Nine Months Ended | ||||||||||||||||
Nutritionals | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 365,691 | $ - | $ 365,691 | $ 380,219 | $ - | $ 380,219 | (4)% | (4)% | ||||||||
Cost of sales | 274,329 | 11,892 | (a) | 262,437 | 258,273 | 8,999 | (a) | 249,274 | 6 % | 5 % | ||||||
Gross profit | 91,362 | 11,892 | 103,254 | 121,946 | 8,999 | 130,945 | (25)% | (21)% | ||||||||
Operating expenses | 72,128 | 17,928 | (a,b) | 54,200 | 65,772 | 8,384 | (a) | 57,388 | 10 % | (6)% | ||||||
Operating income | $ 19,234 | $ 29,820 | $ 49,054 | $ 56,174 | $ 17,383 | $ 73,557 | (66)% | (33)% | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 25.0 % | 28.2 % | 32.1 % | 34.4 % | ||||||||||||
Operating expenses | 19.7 % | 14.8 % | 17.3 % | 15.1 % | ||||||||||||
Operating income | 5.3 % | 13.4 % | 14.8 % | 19.3 % | ||||||||||||
Three Months Ended | ||||||||||||||||
Rx Pharmaceuticals | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 155,591 | $ - | $ 155,591 | $ 84,383 | $ - | $ 84,383 | 84 % | 84 % | ||||||||
Cost of sales | 70,946 | 8,574 | (a) | 62,372 | 43,351 | 2,827 | (a) | 40,524 | 64 % | 54 % | ||||||
Gross profit | 84,645 | 8,574 | 93,219 | 41,032 | 2,827 | 43,859 | 106 % | 113 % | ||||||||
Operating expenses | 15,051 | - | 15,051 | 9,891 | - | 9,891 | 52 % | 52 % | ||||||||
Operating income | $ 69,594 | $ 8,574 | $ 78,168 | $ 31,141 | $ 2,827 | $ 33,968 | 123 % | 130 % | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 54.4 % | 59.9 % | 48.6 % | 52.0 % | ||||||||||||
Operating expenses | 9.7 % | 9.7 % | 11.7 % | 11.7 % | ||||||||||||
Operating income | 44.7 % | 50.2 % | 36.9 % | 40.3 % | ||||||||||||
Nine Months Ended | ||||||||||||||||
Rx Pharmaceuticals | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 460,414 | $ - | $ 460,414 | $ 251,250 | $ - | $ 251,250 | 83 % | 83 % | ||||||||
Cost of sales | 240,096 | 51,075 | (a,c) | 189,021 | 138,190 | 8,035 | (a) | 130,155 | 74 % | 45 % | ||||||
Gross profit | 220,318 | 51,075 | 271,393 | 113,060 | 8,035 | 121,095 | 95 % | 124 % | ||||||||
Operating expenses | 51,426 | 255 | (d,e) | 51,171 | 30,969 | - | 30,969 | 66 % | 65 % | |||||||
Operating income | $ 168,892 | $ 51,330 | $ 220,222 | $ 82,091 | $ 8,035 | $ 90,126 | 106 % | 144 % | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 47.9 % | 58.9 % | 45.0 % | 48.2 % | ||||||||||||
Operating expenses | 11.2 % | 11.1 % | 12.3 % | 12.3 % | ||||||||||||
Operating income | 36.7 % | 47.8 % | 32.7 % | 35.9 % | ||||||||||||
(a) Deal-related amortization | ||||||||||||||||
(b) Restructuring charges of $7,081 related to Florida | ||||||||||||||||
(c) Inventory step-up of $27,179 | ||||||||||||||||
(d) Proceeds of $3,500 from sale of pipeline development projects | ||||||||||||||||
(e) Severance costs of $3,755 | ||||||||||||||||
Table II (Continued) | ||||||||||||||||
PERRIGO COMPANY | ||||||||||||||||
REPORTABLE SEGMENTS | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
API | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 36,951 | $ - | $ 36,951 | $ 41,206 | $ - | $ 41,206 | (10)% | (10)% | ||||||||
Cost of sales | 18,029 | 490 | (a) | 17,539 | 22,070 | 519 | (a) | 21,551 | (18)% | (19)% | ||||||
Gross profit | 18,922 | 490 | 19,412 | 19,136 | 519 | 19,655 | (1)% | (1)% | ||||||||
Operating expenses | 8,048 | - | 8,048 | 7,818 | - | 7,818 | 3 % | 3 % | ||||||||
Operating income | $ 10,874 | $ 490 | $ 11,364 | $ 11,318 | $ 519 | $ 11,837 | (4)% | (4)% | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 51.2 % | 52.5 % | 46.4 % | 47.7 % | ||||||||||||
Operating expenses | 21.8 % | 21.8 % | 19.0 % | 19.0 % | ||||||||||||
Operating income | 29.4 % | 30.8 % | 27.5 % | 28.7 % | ||||||||||||
Nine Months Ended | ||||||||||||||||
API | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 127,347 | $ - | $ 127,347 | $ 118,900 | $ - | $ 118,900 | 7 % | 7 % | ||||||||
Cost of sales | 66,156 | 1,507 | (a) | 64,649 | 65,430 | 1,527 | (a) | 63,903 | 1 % | 1 % | ||||||
Gross profit | 61,191 | 1,507 | 62,698 | 53,470 | 1,527 | 54,997 | 14 % | 14 % | ||||||||
Operating expenses | 23,637 | - | 23,637 | 21,797 | - | 21,797 | 8 % | 8 % | ||||||||
Operating income | $ 37,554 | $ 1,507 | $ 39,061 | $ 31,673 | $ 1,527 | $ 33,200 | 19 % | 18 % | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 48.1 % | 49.2 % | 45.0 % | 46.3 % | ||||||||||||
Operating expenses | 18.6 % | 18.6 % | 18.3 % | 18.3 % | ||||||||||||
Operating income | 29.5 % | 30.7 % | 26.6 % | 27.9 % | ||||||||||||
Three Months Ended | ||||||||||||||||
Other | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 18,944 | $ - | $ 18,944 | $ 16,872 | $ - | $ 16,872 | 12 % | 12 % | ||||||||
Cost of sales | 12,336 | 410 | (a) | 11,926 | 11,136 | 439 | (a) | 10,697 | 11 % | 11 % | ||||||
Gross profit | 6,608 | 410 | 7,018 | 5,736 | 439 | 6,175 | 15 % | 14 % | ||||||||
Operating expenses | 5,579 | - | 5,579 | 5,435 | - | 5,435 | 3 % | 3 % | ||||||||
Operating income | $ 1,029 | $ 410 | $ 1,439 | $ 301 | $ 439 | $ 740 | 242 % | 94 % | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 34.9 % | 37.0 % | 34.0 % | 36.6 % | ||||||||||||
Operating expenses | 29.4 % | 29.4 % | 32.2 % | 32.2 % | ||||||||||||
Operating income | 5.4 % | 7.6 % | 1.8 % | 4.4 % | ||||||||||||
Nine Months Ended | ||||||||||||||||
Other | March 31, 2012 | March 26, 2011 | % Change | |||||||||||||
GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | Non-GAAP Adjustments | As Adjusted | GAAP | As Adjusted | |||||||||
Net sales | $ 56,224 | $ - | $ 56,224 | $ 48,906 | $ - | $ 48,906 | 15 % | 15 % | ||||||||
Cost of sales | 37,504 | 1,285 | (a) | 36,219 | 32,796 | 1,296 | (a) | 31,500 | 14 % | 15 % | ||||||
Gross profit | 18,720 | 1,285 | 20,005 | 16,110 | 1,296 | 17,406 | 16 % | 15 % | ||||||||
Operating expenses | 16,141 | - | 16,141 | 15,012 | - | 15,012 | 8 % | 8 % | ||||||||
Operating income | $ 2,579 | $ 1,285 | $ 3,864 | $ 1,098 | $ 1,296 | $ 2,394 | 135 % | 61 % | ||||||||
Selected ratios as a percentage of net sales | ||||||||||||||||
Gross profit | 33.3 % | 35.6 % | 32.9 % | 35.6 % | ||||||||||||
Operating expenses | 28.7 % | 28.7 % | 30.7 % | 30.7 % | ||||||||||||
Operating income | 4.6 % | 6.9 % | 2.2 % | 4.9 % | ||||||||||||
(a) Deal-related amortization | ||||||||||||||||
(b) Restructuring charges of $7,081 related to Florida | ||||||||||||||||
(c) Inventory step-up of $27,179 | ||||||||||||||||
(d) Proceeds of $3,500 from sale of pipeline development projects | ||||||||||||||||
(e) Severance costs of $3,755 | ||||||||||||||||
Table III | ||||
PERRIGO COMPANY | ||||
FY 2012 GUIDANCE AND FY 2011 EPS | ||||
RECONCILIATION OF NON-GAAP MEASURES | ||||
(unaudited) | ||||
Full Year | ||||
Fiscal 2012 Guidance* | ||||
FY12 reported diluted EPS from continuing operations range | $4.10 - $4.20 | |||
Deal-related amortization (1) | 0.53 | |||
Charge associated with inventory step-up | 0.18 | |||
Charges associated with acquisition-related and severance costs | 0.06 | |||
Charges associated with restructuring | 0.06 | |||
Earnings associated with sale of pipeline development projects | (0.03) | |||
FY12 adjusted diluted EPS from continuing operations range | $4.90 - $5.00 | |||
Fiscal 2011* | ||||
FY11 reported diluted EPS from continuing operations | $3.64 | |||
Deal-related amortization (1) | 0.34 | |||
Charges associated with acquisition-related costs | 0.02 | |||
Charges associated with restructuring | 0.01 | |||
FY11 adjusted diluted EPS from continuing operations | $4.01 | |||
(1) Amortization of acquired intangible assets related to business combinations and asset acquisitions | ||||
*All information based on continuing operations. | ||||
CONTACT: Arthur J. Shannon, Vice President, Investor Relations and Communication, +1-269-686-1709, ajshannon@perrigo.com; Bradley Joseph, Senior Manager, Investor Relations and Communication, +1-269-686-3373, bradley.joseph@perrigo.com