PerkinElmer, Inc. (NYSE: PKI), a global leader committed to
innovating for a healthier world, today announced that it
anticipates reported and organic revenue growth of approximately
66% and 63%, respectively, GAAP earnings per share from continuing
operations of at least $2.88, and adjusted earnings per share from
continuing operations of at least $3.60 for the fourth quarter
ended January 3, 2021.
The ongoing strong performance was driven by
better-than-expected demand for PerkinElmer’s full-suite of
COVID-19 and non-COVID-19 solutions. In total, COVID-19 related
offerings contributed approximately $535 million of revenue and the
non-COVID-19 portfolio declined approximately 3% organically during
the fourth quarter.
PerkinElmer will release its fourth quarter and full year 2020
financial results after market close on Tuesday, February 2, 2021.
The Company will also host a conference call the same day at 5:00
p.m. ET to discuss these results. Prahlad Singh, president and
chief executive officer, and Jamey Mock, senior vice president and
chief financial officer, will host the conference call.
To access the call, please dial (720) 405-2250 prior to the
scheduled conference call time and provide the access code 2779705.
A live audio webcast of the call will also be available on the
Investors section of the Company's Web site at
www.perkinelmer.com.
A replay of the webcast will be available beginning at 7:00 p.m.
ET, Tuesday, February 2, 2021 through the Investors section of the
Company’s website at www.perkinelmer.com.
Factors Affecting Future Performance
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements relating to
estimates and projections of future earnings per share, cash flow
and revenue growth and other financial results, developments
relating to our customers and end-markets, and plans concerning
business development opportunities, acquisitions and divestitures.
Words such as "believes," "intends," "anticipates," "plans,"
"expects," "projects," "forecasts," "will" and similar expressions,
and references to guidance, are intended to identify
forward-looking statements. Such statements are based on
management's current assumptions and expectations and no assurances
can be given that our assumptions or expectations will prove to be
correct. A number of important risk factors could cause actual
results to differ materially from the results described, implied or
projected in any forward-looking statements. These factors include,
without limitation: (1) markets into which we sell our products
declining or not growing as anticipated; (2) effect of the COVID-19
pandemic on our sales and operations; (3) fluctuations in the
global economic and political environments; (4) our failure to
introduce new products in a timely manner; (5) our ability to
execute acquisitions and license technologies, or to successfully
integrate acquired businesses and licensed technologies into our
existing business or to make them profitable, or successfully
divest businesses; (6) our failure to adequately protect our
intellectual property; (7) the loss of any of our licenses or
licensed rights; (8) our ability to compete effectively; (9)
fluctuation in our quarterly operating results and our ability to
adjust our operations to address unexpected changes; (10)
significant disruption in third-party package delivery and
import/export services or significant increases in prices for those
services; (11) disruptions in the supply of raw materials and
supplies; (12) the manufacture and sale of products exposing us to
product liability claims; (13) our failure to maintain compliance
with applicable government regulations; (14) regulatory changes;
(15) our failure to comply with healthcare industry regulations;
(16) economic, political and other risks associated with foreign
operations; (17) our ability to retain key personnel; (18)
significant disruption in our information technology systems, or
cybercrime; (19) our ability to obtain future financing; (20)
restrictions in our credit agreements; (21) discontinuation or
replacement of LIBOR; (22) the United Kingdom’s withdrawal from the
European Union; (23) our ability to realize the full value of our
intangible assets; (24) significant fluctuations in our stock
price; (25) reduction or elimination of dividends on our common
stock; and (26) other factors which we describe under the caption
"Risk Factors" in our most recent quarterly report on Form 10-Q and
in our other filings with the Securities and Exchange Commission.
We disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring
after the date of this press release.
About PerkinElmer
PerkinElmer, Inc. is a global leader focused on innovating for a
healthier world. The Company reported revenue of approximately $2.9
billion in 2019, has about 14,000 employees serving customers in
190 countries, and is a component of the S&P 500 Index.
Additional information is available through 1-877-PKI-NYSE, or at
www.perkinelmer.com.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
generally accepted accounting principles (GAAP), this announcement
also contains non-GAAP financial measures. The reasons we use these
measures, a reconciliation of these measures to the most directly
comparable GAAP measures, and other information relating to these
measures are included below.
PerkinElmer, Inc. and Subsidiaries RECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) PKI
Three Months Ended January 3,
2021 Projected Adjusted EPS: GAAP EPS from
continuing operations
at least $2.88
Amortization of intangible assets
0.46
Purchase accounting adjustments
0.01
Acquisition and divestiture-related costs
0.04
Significant litigation matters
0.03
Mark to market on postretirement benefits
0.31
Restructuring and other, net
0.01
Asset impairment
0.07
Tax on above items
-0.21
Adjusted EPS
at least $3.60
PKI Three Months Ended January 3, 2021 Organic revenue growth:
Projected Reported revenue growth
66%
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses and foreign exchange
rates
3%
Organic revenue growth
63%
Non-COVID-19 Three Months Ended
January 3, 2021 Organic
revenue growth: Projected Reported revenue growth
0%
Less: effect of acquisitions including purchase accounting
adjustments and impact of divested businesses and foreign exchange
rates
3%
Organic revenue growth
-3%
Explanation of Non-GAAP Financial Measures
We report our financial results in accordance with GAAP.
However, management believe that, in order to more fully understand
our short-term and long-term financial and operating trends,
investors may wish to consider the impact of certain non-cash,
non-recurring or other items, which result from facts and
circumstances that vary in frequency and impact on continuing
operations. Accordingly, we present non-GAAP financial measures as
a supplement to the financial measures we present in accordance
with GAAP. These non-GAAP financial measures provide management
with additional means to understand and evaluate the operating
results and trends in our ongoing business by adjusting for certain
non-cash expenses and other items that management believes might
otherwise make comparisons of our ongoing business with prior
periods more difficult, obscure trends in ongoing operations, or
reduce management's ability to make useful forecasts. Management
believes these non-GAAP financial measures provide additional means
of evaluating period-over-period operating performance. In
addition, management understands that some investors and financial
analysts find this information helpful in analyzing our financial
and operational performance and comparing this performance to our
peers and competitors.
We use the term “organic revenue” to refer to GAAP revenue,
excluding the effect of foreign currency changes and including
acquisitions growth from the comparable prior period, and including
purchase accounting adjustments for revenue from contracts acquired
in acquisitions that will not be fully recognized due to accounting
rules. We also exclude the impact of sales from divested businesses
by deducting the effects of divested business revenue from the
current and prior periods. We use the related term “organic revenue
growth” to refer to the measure of comparing current period organic
revenue with the corresponding period of the prior year.
We use the term “adjusted earnings per share”, or “adjusted
EPS”, to refer to GAAP earnings per share, including revenue from
contracts acquired in acquisitions that will not be fully
recognized due to accounting rules, and excluding discontinued
operations, amortization of intangible assets, debt extinguishment
costs, other purchase accounting adjustments, acquisition and
divestiture-related expenses, acceleration of executive
compensation, significant litigation matters and settlements,
significant environmental charges, changes in the value of
financial securities, disposition of businesses and assets, net,
asset impairments and restructuring and other charges. We also
exclude adjustments for mark-to-market accounting on
post-retirement benefits, therefore only our projected costs have
been used to calculate this non-GAAP measure. We also adjust for
any tax impact related to the above items and exclude the impact of
significant tax events.
Management includes or excludes the effect of each of the items
identified below in the applicable non-GAAP financial measure
referenced above for the reasons set forth below with respect to
that item:
- Amortization of intangible assets—
purchased intangible assets are amortized over their estimated
useful lives and generally cannot be changed or influenced by
management after the acquisition. Accordingly, this item is not
considered by management in making operating decisions. Management
does not believe such charges accurately reflect the performance of
our ongoing operations for the period in which such charges are
incurred.
- Debt extinguishment costs—we incur
costs and income related to the extinguishment of debt; including
make-whole payments to debt holders, accelerated amortization of
debt fees and discounts, and expense or income from hedges to lock
in make whole payments. We exclude the impact of these items from
our non-GAAP measures because we believe they do not reflect the
performance of our ongoing operations.
- Revenue from contracts acquired in
acquisitions that will not be fully recognized due to accounting
rules—accounting rules require us to account for the fair
value of revenue from contracts assumed in connection with our
acquisitions. As a result, our GAAP results reflect the fair value
of those revenues, which is not the same as the revenue that
otherwise would have been recorded by the acquired entity. We
include such revenue in our non-GAAP measures because we believe
the fair value of such revenue does notaccurately reflect the
performance of our ongoing operations for the period in which such
revenue is recorded.
- Other purchase accounting
adjustments—accounting rules require us to adjust various
balance sheet accounts, including inventory and deferred rent
balances to fair value at the time of the acquisition. As a result,
the expenses for these items in our GAAP results are not the same
as what would have been recorded by the acquired entity. Accounting
rules also require us to estimate the fair value of contingent
consideration at the time of the acquisition, and any subsequent
changes to the estimate or payment of the contingent consideration
and purchase accounting adjustments are charged to expense or
income. We exclude the impact of any changes to contingent
consideration from our non-GAAP measures because we believe these
expenses or benefits do notaccurately reflect the performance of
our ongoing operations for the period in which such expenses or
benefits are recorded.
- Acquisition and divestiture-related
expenses—we incur legal, due diligence, stay bonuses,
incentive awards, interest expense, foreign exchange gains and
losses, significant acquisition integration expenses and other
costs related to acquisitions and divestitures. We exclude these
expenses from our non-GAAP measures because we believe they do not
reflect the performance of our ongoing operations.
- Asset impairments— we incur
expense related to asset impairments. Management does not believe
such charges accurately reflect the performance of our ongoing
operations for the periods in which such charges were
incurred.
- Acceleration of executive
compensation—the announced retirement of a senior executive
resulted in an acceleration of compensation expense. We exclude
these expenses from our non-GAAP measures because we believe they
do not reflect the performance of our ongoing operations.
- Restructuring and other
charges—restructuring and other charges consist of employee
severance, other exit costs as well as the cost of terminating
certain lease agreements or contracts as well as costs associated
with relocating facilities. Management does not believe such costs
accurately reflect the performance of our ongoing operations for
the period in which such costs are reported.
- Adjustments for mark-to-market accounting
on post-retirement benefits—we exclude adjustments for
mark-to-market accounting on post-retirement benefits, and
therefore only our projected costs are used to calculate our
non-GAAP measures. We exclude these adjustments because they do not
represent what we believe our investors consider to be costs of
producing our products, investments in technology and production,
and costs to support our internal operating structure.
- Significant litigation matters and
settlements—we incur expenses related to significant
litigation matters, including the costs to settle or resolve
various claims and legal proceedings. Management does not believe
such charges accurately reflect the performance of our ongoing
operations for the periods in which such charges were
incurred.
- Significant environmental
charges—we incur expenses related to significant
environmental charges. Management does not believe such charges
accurately reflect the performance of our ongoing operations for
the periods in which such charges were incurred.
- Disposition of businesses and assets,
net—we exclude the impact of gains or losses from the
disposition of businesses and assets from our adjusted earnings per
share. Management does not believe such gains or losses accurately
reflect the performance of our ongoing operations for the period in
which such gains or losses are reported.
- Impact of foreign currency changes on the
current period—we exclude the impact of foreign currency
from these measures by using the prior period’s foreign currency
exchange rates for the current period because foreign currency
exchange rates are subject to volatility and can obscure underlying
trends.
- Impact of significant tax events –
we exclude the impact of significant tax events, such as the Tax
Cuts and Jobs Act of 2017. Management does not believe the impact
of significant tax events accurately reflects the performance of
our ongoing operations for the periods in which the impact of such
events were recorded.
- Changes in value of financial
securities—we exclude the impact of changes in the value of
financial securities. Management does not believe such gains or
losses accurately reflect the performance of our ongoing operations
for the period in which such gains or losses are reported.
The tax effect for discontinued operations is calculated based
on the authoritative guidance in the Financial Accounting Standards
Board’s Accounting Standards Codification 740, Income Taxes. The
tax effect for amortization of intangible assets, inventory fair
value adjustments related to business acquisitions, changes to the
fair values assigned to contingent consideration, debt
extinguishment costs, other costs related to business acquisitions
and divestitures, acceleration of executive compensation,
significant litigation matters and settlements, significant
environmental charges, changes in the fair value of financial
securities, adjustments for mark-to-market accounting on
post-retirement benefits, disposition of businesses and assets,
net, restructuring and other charges, and the revenue from
contracts acquired with various acquisitions is calculated based on
operational results and applicable jurisdictional law, which
contemplates tax rates currently in effect to determine our tax
provision. The tax effect for the impact from foreign currency
exchange rates on the current period is calculated based on the
average rate currently in effect to determine our tax
provision.
The non-GAAP financial measures described above are not meant to
be considered superior to, or a substitute for, our financial
statements prepared in accordance with GAAP. There are material
limitations associated with non-GAAP financial measures because
they exclude charges that have an effect on our reported results
and, therefore, should not be relied upon as the sole financial
measures by which to evaluate our financial results. Management
compensates and believes that investors should compensate for these
limitations by viewing the non-GAAP financial measures in
conjunction with the GAAP financial measures. In addition, the
non-GAAP financial measures included in this earnings announcement
may be different from, and therefore may not be comparable to,
similar measures used by other companies.
Each of the non-GAAP financial measures listed above is also
used by our management to evaluate our operating performance,
communicate our financial results to our Board of Directors,
benchmark our results against our historical performance and the
performance of our peers, evaluate investment opportunities
including acquisitions and discontinued operations, and determine
the bonus payments for senior management and employees.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210111005309/en/
Investor Relations: Bryan Kipp (781) 663-5583
bryan.kipp@perkinelmer.com
Media Relations: Chet Murray (781) 663-5719
chet.murray@perkinelmer.com
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