-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HnO3+rEbOKfY6PnWor1xs+RgooYcTNFhVB49n6kLe550XqCRycZKZ3kZqsgYvIN2 0px3t3TpDq8cXZqlTgRUBA== 0001275287-05-001764.txt : 20050505 0001275287-05-001764.hdr.sgml : 20050505 20050505102729 ACCESSION NUMBER: 0001275287-05-001764 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050505 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050505 DATE AS OF CHANGE: 20050505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PERRIGO CO CENTRAL INDEX KEY: 0000820096 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 382799573 STATE OF INCORPORATION: MI FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19725 FILM NUMBER: 05801777 BUSINESS ADDRESS: STREET 1: 515 EASTERN AVENUE CITY: ALLEGAN STATE: MI ZIP: 49010 BUSINESS PHONE: 6166738451 MAIL ADDRESS: STREET 1: 515 EASTERN AVENUE CITY: ALLEGAN STATE: MI ZIP: 49010 8-K 1 pc2649.txt ================================================================================ 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 5, 2005 PERRIGO COMPANY ------------------------------------------------------ (Exact name of registrant as specified in its charter) MICHIGAN 0-19725 38-2799573 ---------------------------- ------------ ------------------- (State of other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification 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. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION On May 5, 2005, the Perrigo Company released earnings for the third quarter of fiscal year 2005. The earnings release contains non-GAAP measures which are defined as a financial measure of the Company's performance that excludes or includes amounts thereby differentiating it from the most directly comparable measure presented in the financial statements that are calculated and presented in accordance with Generally Accepted Accounting Principles (GAAP). Pursuant to the requirements of Regulation G, the Company has provided a reconciliation for operating income, net income and earnings per share within its earnings release to the most directly comparable GAAP measure for these non-GAAP measures. The Company excludes a write-off of in-process research and development, restructuring costs, acquisition-related expenses, a product recall and a one-time tax benefit when monitoring and evaluating the on-going financial results and trends of its business due to the non-recurring nature of these items. The Company believes this information is also useful for investors since excluding these non-recurring items provides important insight into the Company's on-going operations. The press release related to Perrigo's earnings is attached as Exhibit 99. The information in this Report is being furnished and shall not be deemed "filed" for the 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 (c) Exhibits 99 Press release issued by Perrigo Company on May 5, 2005, 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) By: /s/Douglas R. Schrank --------------------- Dated: May 5, 2005 Douglas R. Schrank Executive Vice President and Chief Financial Officer (Principal Accounting and Financial Officer) Exhibit Index Exhibit 99 - Press Release issued by Perrigo Company on May 5, 2005, furnished solely pursuant to Item 2.02 of Form 8-K. EX-99 2 pc2649ex99.txt Exhibit 99 PERRIGO COMPANY REPORTS FISCAL 2005 THIRD QUARTER AND NINE MONTHS LOSSES DUE TO WRITE OFF OF IN-PROCESS RESEARCH AND DEVELOPMENT ALLEGAN, Mich., May 5 /PRNewswire-FirstCall/ -- The Perrigo Company (Nasdaq: PRGO; TASE) today announced results for the third quarter and nine months of fiscal 2005 ended March 26, 2005. Perrigo Company (in thousands, except per share amounts) Third Quarter Year-To-Date ------------------------- ------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Sales $ 220,093 $ 232,863 $ 699,560 $ 692,079 (Net Loss)/Income $ (379,436) $ 17,739 $ (346,020) $ 72,482 Diluted Shares 73,660 72,598 71,970 72,035 Diluted EPS $ (5.15) $ 0.24 $ (4.81) $ 1.01 The acquisition of Agis Industries was completed on March 17, 2005. Agis is included in the consolidated balance sheet as of March 26, 2005. Agis operating results are not included in the third quarter, but will be included in the consolidated results beginning in the fourth quarter of fiscal 2005. Third Quarter Results Net sales for the third quarter of fiscal 2005 were $220.1 million, a decrease of five percent from $232.9 million last year due to a sales shortfall in the Consumer Healthcare segment. Perrigo reported a net loss of $379.4 million, or $5.15 per share, which includes charges associated with the acquisition of Agis. The acquisition-related charges include the following: the write-off of in-process research and development of $388.6 million, which is not deductible for tax purposes; a charge for operational improvements and asset impairments in the Consumer Healthcare segment of $6.4 million pre-tax, or $4.1 million after-tax; and, acquisition-related legal, audit and integration expenses of $4.6 million pre-tax, or $3.0 million after-tax. Excluding the charges associated with the acquisition, net income was $16.2 million, or $0.22 per share. This is compared with net income of $17.7 million, or $0.24 per share, a year ago. A reconciliation of these non-GAAP measures is shown in Table II at the end of this press release. "Our operating results in the third quarter reflect lower sales and profits in the Consumer Healthcare segment where we experienced weak seasonal demand for cough/cold and pain relief products. There was a late pick-up at retail, but, with adequate inventories available following the season's slow start, retailers were able to meet consumer demand in the quarter from on-hand inventory," said David T. Gibbons, Perrigo Chairman, President and Chief Executive Officer. Agis Acquisition Commenting on the Agis acquisition, Mr. Gibbons stated, "The combination of Perrigo and Agis has created a global company with broader capabilities to grow in the generic pharmaceutical, active pharmaceutical ingredients and consumer healthcare markets. We have brought together talent and technology and we are combining Perrigo's leadership in store brand over-the-counter pharmaceutical and nutritional products with Agis' growing position in topical generics and active pharmaceutical ingredients. Together, we have excellent R&D and an experienced, global management team. The integration of our companies is off to a good start and we are enthusiastic about the opportunities we see to grow and enhance value for our shareholders." Nine Months Results Net sales for the nine months ended March 26, 2005 were $699.6 million, an increase of $7.5 million, or one percent, compared with $692.1 million last year. Perrigo reported a net loss of $346.0 million, or $4.81 per share, which includes charges associated with the acquisition of Agis and the expense of a product recall. The charges and expenses associated with the acquisition were the same as those recorded in the third quarter. The impact of the loratadine syrup product recall in the second quarter of fiscal 2005 reduced sales by $6.3 million and after-tax income by $5.3 million. In the prior year, the Company reported a one-time tax benefit of $13.1 million after-tax. Excluding the write-off of in-process research and development, acquisition-related expenses and the expense of the product recall, net income was $54.9 million, or $0.76 per share. Excluding the one-time tax benefit of $13.1 million, or $0.18 per share, in the prior year period, comparable net income was $59.4 million, or $0.83 per share. A reconciliation of these non- GAAP measures is shown in Table II at the end of this press release. Consumer Healthcare Consumer Healthcare segment sales decreased six percent to $194.0 million, compared with $206.1 million in the third quarter of fiscal 2004. The decline reflected lower sales of loratadine products compared with strong initial sales a year ago. Sales were also lower in the vitamin category following our strong first half. We received positive benefits from sales of new products for smoking cessation and feminine hygiene. Operating income was $18.7 million, reflecting lower sales and production levels, as well as a $6.4 million charge for asset impairment and acquisition-related restructuring expense. Excluding the $6.4 million charge, operating income was $25.1 million, compared with $28.8 million last year. For nine months of fiscal 2005, Consumer Healthcare sales were $612.4 million, two percent below the $623.9 million in the same period last year. Operating income was $69.7 million, reflecting lower sales and production levels, an asset impairment charge, acquisition-related expenses and the expense of a product recall. Excluding the charge of $6.4 million and the product recall expense of $8.3 million, operating income was $84.4 million, compared with $91.5 million a year ago. Pseudoephedrine Mr. Gibbons also noted, "A number of major retailers have recently announced plans to move certain over-the-counter products that contain the active ingredient pseudoephedrine to a position behind the pharmacy counter. This is in reaction to new legislation in certain states to slow the misuse of pseudoephedrine-based products to create methamphetamine for illegal drug use. We are developing phenylephrine-based alternatives for the most popular solid dose products and expect to phase-in the reformulated products as soon as possible throughout the 2005/2006 season. We anticipate that the recent acceleration of the move behind the counter will have some negative impact on our cough/cold/allergy/sinus category sales in the next year. However, it is too early to accurately measure the effect." Pharmaceuticals In the third quarter, the Pharmaceutical Segment recorded an operating loss of $1.9 million, compared with a loss of $1.6 million a year ago as the Company continued to invest in its start-up pharmaceutical business. For nine months of fiscal 2005, Pharmaceutical operating loss was $5.5 million, compared with a loss of $3.0 million last year. United Kingdom Third quarter net sales for the United Kingdom operations decreased $2.0 million, or nine percent, to $19.8 million due to declines in contract and nutritional product sales, partially offset by favorable foreign exchange rates. Operating income for the third quarter was $0.4 million compared with $0.2 million last year. Sales for nine months were $67.5 million, compared with $49.4 million in the year ago period, and operating income was $2.3 million, compared with $1.5 million a year ago. Mexico Sales for Perrigo's Mexico Operations increased $0.9 million, or 18 percent, to $5.9 million in the third quarter as a result of increased sales to the store brand and pharmaceutical distribution channels. Operating income for the quarter was $0.2 million, compared with an operating loss of $0.8 million last year. Sales for nine months were $19.1 million, compared with $18.7 million last year and operating income was $1.7 million, compared with $0.6 million for the comparable nine months a year ago. Opening Balance Sheet The attached condensed balance sheet includes the preliminary allocation of the purchase price for Agis into the components of fair value of the assets at acquisition, as well as adjustments related to the transaction financing. At closing, Perrigo also entered into a loan agreement with an Israeli bank for $400 million. Simultaneously, $400 million was deposited by Perrigo with the same Israeli bank. As required, these amounts are reported separately on the consolidated balance sheet as long-term debt and restricted cash. Perrigo will pay interest expense on the loan and receive interest income on the deposit in subsequent periods. The purpose of this transaction is to provide an appropriate and efficient mechanism for inter-company financing. Included in the fair value of the assets of Agis is a step-up in the value of inventory of $27.6 million. This amount will be charged to cost of sales over the next three to six months, but is not expected to have any impact beyond that period. Outlook The year-to-date reported net loss of $346.0 million included the write- off of in-process research and development of $388.6 million, the loratadine recall of $5.3 million and other acquisition-related costs of $7.0 million. Adjusted net income was $54.9 million, or $0.76 per share, through nine months of fiscal 2005. There will be an additional $2 million in integration costs incurred in the fourth quarter. Further, the write-off of the inventory step-up that was recorded as part of the purchase price adjustment will approximate $16 million. Commenting on the outlook for the fourth quarter and full year, Mr. Gibbons stated, "Operating results for Agis will be consolidated for the first time in our fiscal fourth quarter and the shares outstanding will change to reflect the 22 million shares issued as part of the purchase price. Consistent with the historical seasonal pattern, we anticipate lower sequential sales and profits in our Consumer Healthcare business. The continuing ramp-up in sales of new nicotine gum products should help offset difficult comparisons on our loratadine products. "We anticipate reported per share results for the full year to range from a loss of $4.45 to a loss of $4.55 per share. On an operating basis, we expect income per share in the range of $0.90 to $0.94." Perrigo will host a conference call to discuss third quarter fiscal 2005 results at 11 a.m. (ET) today. The call and replay will be available via webcast on the Company's Web site at http://www.perrigo.com/investor/ , or by phone, at 800-473-6123, International, 973-582-2745. A taped replay of the call will be available beginning at approximately 2:30 p.m. (ET) Thursday, May 5 until midnight Wednesday, May 11. To listen to the replay, call 877-519-4471, International 973-341-3080, access code 6009317. Perrigo Company is a leading global healthcare supplier and the world's largest manufacturer of over-the-counter (OTC) pharmaceutical and nutritional products for the store brand and contract manufacturing markets. Store brand products are sold by food, drug, mass merchandise, dollar store and club store retailers under their own labels. The Company also develops, manufactures and markets topical OTC pharmaceuticals, prescription generic drugs, active pharmaceutical ingredients and consumer products, and operates manufacturing and logistics facilities in the United States, Israel, United Kingdom, Mexico, and Germany. 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. Please see the "Cautionary Note Regarding Forward-Looking Statements" on pages 27 - 33 of the Company's Form 10-K for the year ended June 26, 2004 for a discussion of certain important factors that relate to forward-looking statements contained in this press release. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. 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 ------------------------- ------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Net sales $ 220,093 $ 232,863 $ 699,560 $ 692,079 Cost of sales 157,132 164,108 504,830 487,125 Gross profit 62,961 68,755 194,730 204,954 Operating expenses Distribution 4,032 4,117 12,130 11,472 Research and development 7,224 6,685 22,864 18,584 Selling and administration 32,552 31,441 89,808 84,271 Subtotal 43,808 42,243 124,802 114,327 Write-off of in-process research and development 388,600 - 388,600 - Restructuring 6,382 - 6,382 - Total 438,790 42,243 519,784 114,327 Operating (loss) income (375,829) 26,512 (325,054) 90,627 Interest and other, net (1,545) (1,206) (2,989) (2,159) (Loss) income before income taxes (374,284) 27,718 (322,065) 92,786 Income tax expense 5,152 9,979 23,955 20,304 Net (loss) income $ (379,436) $ 17,739 $ (346,020) $ 72,482 (Loss) Earnings per share Basic $ (5.15) $ 0.25 $ (4.81) $ 1.03 Diluted $ (5.15) $ 0.24 $ (4.81) $ 1.01 Weighted average shares outstanding Basic 73,660 70,296 71,970 70,103 Diluted 73,660 72,598 71,970 72,035 Dividends declared per share $ 0.04 $ 0.035 $ 0.115 $ 0.095
PERRIGO COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
March 26, June 26, March 27, 2005 2004 2004 ------------ ------------ ------------ (unaudited) (unaudited) Assets Current assets Cash and cash equivalents $ 40,735 $ 8,392 $ 30,692 Investment securities 33,200 163,308 125,725 Accounts receivable 203,849 86,040 102,299 Inventories 301,270 174,253 154,847 Current deferred income taxes 47,380 29,877 30,041 Prepaid expenses and other current assets 28,690 11,359 19,846 Total current assets 655,124 473,229 463,450 Property and equipment 576,049 462,185 468,056 Less accumulated depreciation 253,316 234,544 241,724 322,733 227,641 226,332 Restricted cash 400,000 - - Goodwill 150,226 35,919 35,919 Other intangible assets 142,050 94 110 Non-current deferred income taxes 13,922 8,137 8,062 Other non-current assets 47,126 14,074 12,774 $ 1,731,181 $ 759,094 $ 746,647 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 141,621 $ 88,858 $ 89,289 Notes payable 22,334 9,528 9,746 Current maturities of long-term liabilities 20,000 - - Payroll and related taxes 48,160 41,387 35,530 Accrued customer programs 31,302 13,212 13,187 Accrued liabilities 74,496 30,477 36,121 Accrued income taxes 15,201 - - Current deferred income taxes 9,010 4,024 4,095 Total current liabilities 362,124 187,486 187,968 Long-term liabilities Long-term debt, less current maturities 666,706 - - Non-current deferred income taxes 59,740 29,606 26,315 Other non-current liabilities 33,637 5,770 5,490 Total long-term liabilities 760,083 35,376 31,805 Shareholders' equity Preferred stock, without par value, 10,000 shares authorized - - - Common stock, without par value, 200,000 shares authorized 532,108 104,160 99,622 Unearned compensation (4,888) (514) (631) Accumulated other comprehensive income 6,275 2,892 3,801 Retained earnings 75,479 429,694 424,082 Total shareholders' equity 608,974 536,232 526,874 $ 1,731,181 $ 759,094 $ 746,647 Supplemental Disclosures of Balance Sheet Information Allowance for doubtful accounts $ 8,280 $ 8,296 $ 7,606 Allowance for inventory $ 27,841 $ 22,888 $ 22,493 Working capital $ 293,000 $ 285,743 $ 275,482 Preferred stock, shares issued - - - Common stock, shares issued 93,802 70,882 70,595
PERRIGO COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Year-To-Date ------------------------- 2005 2004 ----------- ----------- Cash Flows From Operating Activities Net income (loss) $ (346,020) $ 72,482 Adjustments to derive cash flows Write-off of in-process research and development 388,600 - Depreciation and amortization 23,561 21,270 Share-based compensation 4,828 4,142 Deferred income taxes (5,860) 35 Changes in operating assets and liabilities, net of acquisitions of businesses and assets Accounts receivable (11,320) (11,150) Inventories 10,202 13,551 Accounts payable (7,108) 13,074 Payroll and related taxes (14,369) (5,001) Accrued income taxes 3,805 2,458 Accrued customer programs (2,398) 7,421 Accrued liabilities 4,090 (5,572) Other 6,381 (8,502) Net cash from operating activities 54,392 104,208 Cash Flows For Investing Activities Purchase of securities (81,070) (122,325) Proceeds from sales of securities 243,975 80,035 Additions to property and equipment (15,576) (18,638) Acquisition of business, net of cash acquired (381,569) (12,061) Acquisition of assets (5,562) - Increase in restricted cash (400,000) - Issuance of note receivable - (10,000) Investment in equity subsidiaries - (2,000) Net cash for investing activities (639,802) (84,989) Cash Flows From Financing Activities Borrowings of short-term debt, net 3,622 789 Borrowings of long-term debt 615,000 - Increase in deferred bond issue costs (1,017) - Tax benefit of stock transactions 1,087 813 Issuance of common stock 6,137 7,911 Repurchase of common stock (122) (1,940) Cash dividends (8,195) (6,664) Net cash from financing activities 616,512 909 Net Increase in Cash and Cash Equivalents 31,102 20,128 Cash and cash equivalents, at beginning of period 8,392 10,392 Effect of exchange rate changes on cash 1,241 172 Cash and cash equivalents, at end of period $ 40,735 $ 30,692 Supplemental Disclosures of Cash Flow Information Cash paid during the year for Interest $ 231 $ 467 Income taxes $ 18,341 $ 25,188 Table I PERRIGO COMPANY SEGMENT INFORMATION (in thousands) (unaudited)
Third Quarter Year-To-Date ------------------------- ------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Segment Sales Consumer Healthcare $ 194,009 $ 206,087 $ 612,390 $ 623,917 Pharmaceuticals 403 - 567 - UK Operations 19,809 21,789 67,526 49,417 Mexico Operations 5,872 4,987 19,077 18,745 Total $ 220,093 $ 232,863 $ 699,560 $ 692,079 Segment Operating Income (loss) Consumer Healthcare $ 18,683 $ 28,771 $ 69,675 $ 91,538 Pharmaceuticals (1,887) (1,647) (5,537) (3,004) UK Operations 424 159 2,286 1,493 Mexico Operations 176 (771) 1,747 600 Write-off of in-process research and development (388,600) - (388,600) - Acquisition and integration costs (4,625) - (4,625) Total $ (375,829) $ 26,512 $ (325,054) $ 90,627
Table II PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited)
Third Quarter Year-To-Date ------------------------- ------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Reported net sales $ 220,093 $ 232,863 $ 699,560 $ 692,079 Loratadine recall - - 6,300 - Adjusted net sales $ 220,093 $ 232,863 $ 705,860 $ 692,079 Reported gross profit $ 62,961 $ 68,755 $ 194,730 $ 204,954 Loratadine recall - - 8,300 - Adjusted gross profit $ 62,961 $ 68,755 $ 203,030 $ 204,954 Reported operating income (loss) $ (375,829) $ 26,512 $ (325,054) $ 90,627 Loratadine recall - - 8,300 - Perrigo operational improvements 3,150 - 3,150 - Perrigo asset impairments 3,232 - 3,232 - Purchase accounting adjustment: Write off in-process R&D 388,600 - 388,600 - Acquisition costs 4,625 - 4,625 - Adjusted operating income $ 23,778 $ 26,512 $ 82,853 $ 90,627 Reported net income (loss) $ (379,436) $ 17,739 $ (346,020) $ 72,482 Loratadine recall (1) 5,300 One time tax benefit (13,100) Perrigo operational improvements (1) 2,016 2,016 Perrigo asset impairments (1) 2,068 2,068 Purchase accounting adjustment: Write off in-process R&D (2) 388,600 388,600 Acquisition costs (1) 2,960 2,960 Adjusted net income $ 16,208 $ 17,739 $ 54,924 $ 59,382 Reported diluted earnings (loss) per share $ (5.15) $ 0.24 $ (4.81) $ 1.01 Adjusted diluted earnings per share $ 0.22 $ 0.24 $ 0.76 $ 0.83 Weighted average diluted shares outstanding 73,660 72,598 71,970 72,035
(1) Net of taxes at 36% (2) Write-off of in-process research and development is a permanent difference for tax purposes and thus is not tax effected Table II (Continued) CONSUMER HEALTHCARE RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited)
Third Quarter Year-To-Date ------------------------- ------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Consumer Healthcare Reported net sales $ 194,009 $ 206,087 $ 612,390 $ 623,917 Loratadine recall - - 6,300 - Adjusted net sales $ 194,009 $ 206,087 $ 618,690 $ 623,917 Consumer Healthcare Reported gross profit $ 58,296 $ 64,997 $ 178,346 $ 192,735 Loratadine recall - - 8,300 - Adjusted gross profit $ 58,296 $ 64,997 $ 186,646 $ 192,735 Consumer Healthcare Reported operating income (loss) $ 18,683 $ 28,771 $ 69,765 $ 91,538 Loratadine recall - - 8,300 - Perrigo operational improvements 3,150 - 3,150 - Perrigo asset impairments 3,232 - 3,232 - Adjusted operating income $ 25,065 $ 28,771 $ 84,447 $ 91,538
SOURCE Perrigo Company -0- 05/05/2005 /CONTACT: Ernest J. Schenk, Manager, Investor Relations and Communication of Perrigo Company, +1-269-673-9212, E-mail: Investor@perrigo.com / /Web site: http://www.perrigo.com -----END PRIVACY-ENHANCED MESSAGE-----