Perrigo Reports Record Quarterly Revenue and Earnings and Raises Full Year Adjusted EPS Guidance
ALLEGAN, Mich., Feb. 2 /PRNewswire-FirstCall/ --
- Fiscal second quarter revenue from continuing operations increased $46 million, or 9%, to $583 million
- Fiscal second quarter adjusted income from continuing operations increased 56% to $65 million, or $0.70 per share
- Fiscal second quarter GAAP income from continuing operations increased 121% to $53 million, or $0.57 per share
- Record second quarter cash flow from operations of $122 million
- Management raises full-year fiscal 2010 adjusted earnings from continuing operations to $2.55-$2.65 per share from previously announced $2.35-$2.45 per share
Perrigo Company (Nasdaq: PRGO; TASE) today announced results for its second quarter and six months ended December 26, 2009.
Perrigo's Chairman and CEO Joseph C. Papa commented, "This was another exciting quarter for us. We delivered all-time record quarterly revenue and earnings, and record second quarter cash flow. Our Consumer Healthcare, Rx, and API segments all contributed to this strong performance. Through core business strength, new product sales, and operating execution, we were able to drive adjusted consolidated gross profit margin and operating margin up 590 and 490 basis points, respectively, from last year. While the H1N1 flu pandemic and the delayed entrance of a competitor to omeprazole provided incremental benefits this quarter, our core business continues to gain market share versus the national brands. Consumers are continuing to benefit from the value proposition of Perrigo's quality, affordable healthcare products."
The Company's reported results are summarized in the attached Condensed Consolidated Statements of Income, Balance Sheets and Cash Flows. As part of management's continued strategic review of the Company's portfolio of businesses, management committed to a plan to sell the Company's Israel Consumer Products business. The results of this business are reflected in the condensed consolidated financial statements as discontinued operations for all periods presented.
Perrigo Company
(from continuing operations, in thousands, except per share amounts)
(see the attached Table II for reconciliation to GAAP numbers)
Second Quarter Six Months
2010 2009 2010 2009
---- ---- ---- ----
Net Sales $583,168 $537,203 $1,111,169 $992,751
Reported Income $53,236 $24,042 $114,261 $62,349
Adjusted Income $65,051 $41,765 $126,235 $80,711
Reported Diluted EPS $0.57 $0.26 $1.23 $0.66
Adjusted Diluted EPS $0.70 $0.45 $1.36 $0.86
Diluted Shares 92,999 93,587 93,018 94,076
Second Quarter Results
Net sales from continuing operations for the second quarter of fiscal 2010 were $583 million, an increase of 9%. Reported income from continuing operations was $53 million, or $0.57 per share, a strong increase over $24 million, or $0.26 per share, a year ago. Excluding the charges as outlined in Table II at the end of this release, second quarter fiscal 2010 adjusted income from continuing operations was $65 million, or $0.70 per share. Reported operating expenses included a $14 million write-off of in-process research and development related to the acquisition of an Abbreviated New Drug Application (ANDA) from KV Pharmaceutical during the quarter.
Six Months Results
Net sales for the first half of fiscal 2010 were $1,111 million, an increase of 12% over fiscal 2009. The increase was driven by strong results in the Consumer Healthcare and Rx segments and included consolidated new product sales of approximately $37 million. Reported gross profit was $361 million, up 28% and the reported gross profit percentage was 32.5%, up from 28.5% last year. Reported operating income margin increased 330 basis points to 15.4% and adjusted operating income margin increased 410 basis points to 16.7%. Reported income from continuing operations was $114 million, an increase of 83%. Adjusted income from continuing operations was $126 million or an increase of 56% from fiscal 2009.
Consumer Healthcare
Consumer Healthcare segment net sales in the second quarter were $478 million compared with $446 million in the second quarter last year, an increase of $32 million or 7%. The increase resulted from approximately $24 million of new product sales and $8 million from higher sales volumes of existing products, primarily in the gastrointestinal, smoking cessation, analgesics, and cough/cold categories, and approximately $7 million of incremental sales from the acquisitions of Unico and Diba. These increases were partially offset by a decline of approximately $4 million in sales from exited products and unfavorable changes in foreign currency exchange rates of $2 million. Reported operating income was $88 million, compared with $56 million a year ago largely driven by favorable product mix and higher gross margins from the sale of new products. Reported operating margin increased 590 basis points to 18.5% due to improved operating expense leverage.
For the first six months of fiscal year 2010, Consumer Healthcare net sales increased $103 million or 13%, compared to fiscal 2009. The increase resulted from approximately $33 million of new product sales and a $48 million increase in sales of existing products, as well as incremental sales of $43 million from the Company's acquisitions of J.B. Laboratories, Unico and Diba. This growth was partially offset by approximately $8 million in decreased sales from exited products, and a negative impact of approximately $12 million from foreign currency exchange rates.
On October 13, 2009, the Company announced that it had filed an ANDA for over-the-counter (OTC) Minoxidil topical aerosol foam, 5%, a generic form of Men's Rogaine® Foam.
On December 7, 2009, the Company announced that it will implement a labeling program to help consumers more clearly identify more than 200 of the Company's OTC store brand pharmaceuticals that are gluten-free.
Rx Pharmaceuticals
The Rx Pharmaceuticals segment second quarter net sales were approximately $56 million compared with $40 million a year ago, an increase of 38%. This increase was due primarily to increased sales volumes in the Company's existing products, increased sales in over-the-counter Rx, and new product sales. Reported operating income was $2 million, a decrease of $5 million from last year due to a $14 million charge related to the ANDA acquired from KV Pharmaceutical for clindamycin phosphate (1%) and benzoyl peroxide (5%) gel. Excluding this charge, adjusted operating income for the second quarter was $16 million, a $9 million increase from last year. The increase was due primarily to greater operating expense leverage, less pricing pressure, and improved product mix. Adjusted operating margin increased 1170 basis points from last year to 29.5%.
For the first six months of fiscal year 2010, net sales for the Rx Pharmaceuticals segment increased 40% from fiscal 2009. Sales increased due to higher sales of existing products, less pricing pressure, new product sales, and an increase in non-product revenue.
API
The API segment reported second quarter net sales of $37 million compared with $32 million a year ago. The increase was due primarily to increased sales volumes of the Company's existing products, new product sales, and favorable changes in the foreign currency exchange rates. Reported operating income increased nearly $5 million due to increased sales volume, improved sales mix, and improved operational efficiencies. Reported operating margin increased 1240 basis points to 15.7%.
For the first six months of fiscal year 2010, net sales increased 1% or $900 thousand, compared to fiscal 2009. Reported operating income margin increased 1200 basis points to 14.3% from last year's 2.3%.
Other
Continuing operations for the Other category, consisting of the Israel Pharmaceutical and Diagnostic Products operating segment, reported second quarter net sales of $12 million compared with approximately $19 million a year ago. The segment reported an operating loss of $1 million, compared to operating income of $1 million for fiscal 2009. Year-to-date net sales for fiscal 2010 decreased 36% compared to fiscal 2009. The decrease was due primarily to approximately $15 million related to the loss of a customer contract.
On November 2, 2009, the Company announced that it had signed a definitive agreement to sell its Israel Consumer Products business along with the related production assets in Israel to Emilia Group, a subsidiary of O. Feller Holdings Ltd., for 205 million New Israeli Shekels (approximately $55 million), subject to post-closing working capital adjustments as defined in the agreement. The transaction is expected to close in the first calendar quarter of 2010.
Guidance
Chairman and CEO Joseph C. Papa concluded, "The strength across our businesses continued this quarter, driving record results. As we look forward to the last half of fiscal 2010 we expect this strength to continue. Our teams are executing on their plans, which are the foundation for sustaining our growth. Reported fiscal 2010 earnings from continuing operations are now expected to be between $2.42 and $2.52 per share. Excluding the charges outlined in Table II at the end of this release, we now expect fiscal 2010 adjusted earnings from continuing operations to be between $2.55 and $2.65 per share, up from our previously announced $2.35-$2.45 per share. This new range implies a year-over-year growth rate of adjusted earnings from continuing operations of 36% to 42% over fiscal 2009 adjusted EPS. This revised guidance does not include any incremental contribution from the profit split associated with the anticipated U.S. launch of Temozolomide, the generic version of Temodar®."
Perrigo will host a conference call to discuss fiscal 2010 second quarter results at 10:00 a.m. (ET) on Tuesday, February 2. 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# 50570220. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Tuesday, February 2, until midnight Tuesday, February 9, 2010. To listen to the replay, call 800-642-1687, International 706-645-9291, access code 50570220.
Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription (Rx) pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and pharmaceutical and medical diagnostic products. The Company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The Company's primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico and the United Kingdom. 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 27, 2009, 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)
Second Quarter Year-to-Date
-------------- ------------
2010 2009 2010 2009
---- ---- ---- ----
Net sales $583,168 $537,203 $1,111,169 $992,751
Cost of sales 386,223 390,638 750,230 710,199
------- ------- ------- -------
Gross profit 196,945 146,565 360,939 282,552
------- ------- ------- -------
Operating expenses
Distribution 7,012 6,078 13,533 12,346
Research and development 20,735 19,923 39,232 38,147
Selling and administration 70,730 59,486 123,137 111,894
------ ------ ------- -------
Subtotal 98,477 85,487 175,902 162,387
------ ------ ------- -------
Write-off of in-process
research and development 14,000 279 14,000 279
------ --- ------ ---
Total 112,477 85,766 189,902 162,666
------- ------ ------- -------
Operating income 84,468 60,799 171,037 119,886
Interest, net 5,551 7,513 12,214 13,499
Other (income) expense, net (1,247) 1,098 (230) 1,405
Investment impairment - 15,104 - 15,104
--- ------ --- ------
Income from continuing operations
before income taxes 80,164 37,084 159,053 89,878
Income tax expense 26,928 13,042 44,792 27,529
------ ------ ------ ------
Income from continuing operations 53,236 24,042 114,261 62,349
Income (loss) from discontinued
operations, net of tax (2,342) 951 (2,069) 602
------ --- ------ ---
Net income $50,894 $24,993 $112,192 $62,951
======= ======= ======== =======
Earnings (loss) per share (1)
Basic
Continuing operations $0.58 $0.26 $1.25 $0.67
Discontinued operations (0.03) 0.01 (0.02) 0.01
----- ---- ----- ----
Basic earnings per share $0.56 $0.27 $1.22 $0.68
Diluted
Continuing operations $0.57 $0.26 $1.23 $0.66
Discontinued operations (0.03) 0.01 (0.02) 0.01
----- ---- ----- ----
Diluted earnings per share $0.55 $0.27 $1.21 $0.67
Weighted average shares outstanding
Basic 91,634 92,044 91,646 92,415
Diluted 92,999 93,587 93,018 94,076
Dividends declared per share $0.0625 $0.0550 $0.1175 $0.1050
(1) The sum of individual per share amounts may not equal due to rounding.
PERRIGO COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 26, June 27, December 27,
2009 2009 2008
---- ---- ----
Assets
Current assets
Cash and cash equivalents $303,482 $316,133 $162,160
Investment securities 562 3 9
Accounts receivable, net 345,941 325,810 333,906
Inventories 416,475 384,794 406,839
Current deferred income taxes 41,247 41,941 47,890
Income taxes refundable 6,388 8,926 24,235
Prepaid expenses and other
current assets 23,529 23,658 25,827
Current assets of discontinued
operations 70,992 51,699 51,071
------ ------ ------
Total current assets 1,208,616 1,152,964 1,051,937
Property and equipment 798,819 763,951 725,398
Less accumulated depreciation (435,911) (409,634) (378,603)
-------- -------- --------
362,908 354,317 346,795
Restricted cash 400,000 400,000 400,000
Goodwill and other indefinite-
lived intangible assets 276,283 268,819 272,594
Other intangible assets, net 210,889 214,207 222,564
Non-current deferred income taxes 56,774 74,438 63,069
Other non-current assets 54,568 49,756 45,932
Non-current assets of
discontinued operations - 21,854 25,036
--- ------ ------
$2,570,038 $2,536,355 $2,427,927
========== ========== ==========
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $263,316 $271,537 $251,191
Payroll and related taxes 79,856 54,196 47,622
Accrued customer programs 63,927 54,461 52,561
Accrued liabilities 55,430 61,704 48,156
Accrued income taxes 10,434 3,334 2,250
Current deferred income taxes 17,217 18,528 18,354
Current portion of long-term
debt 18,053 17,181 17,050
Current liabilities of
discontinued operations 24,890 19,620 19,913
------ ------ ------
Total current liabilities 533,123 500,561 457,097
Non-current liabilities
Long-term debt, less current
portion 825,000 875,000 892,050
Non-current deferred income
taxes 114,399 139,916 134,477
Other non-current liabilities 106,261 86,476 111,358
Non-current liabilities of
discontinued operations - 11,933 6,679
--- ------ -----
Total non-current
liabilities 1,045,660 1,113,325 1,144,564
Shareholders' equity
Controlling interest shareholders'
equity:
Preferred stock, without par
value, 10,000 shares
authorized - - -
Common stock, without par value,
200,000 shares
authorized 404,879 452,243 442,774
Accumulated other comprehensive
income 64,088 50,592 39,716
Retained earnings 520,440 419,086 343,235
------- ------- -------
989,407 921,921 825,725
Noncontrolling interest 1,848 548 541
----- --- ---
Total shareholders' equity 991,255 922,469 826,266
------- ------- -------
$2,570,038 $2,536,355 $2,427,927
========== ========== ==========
Supplemental Disclosures of Balance
Sheet Information
Related to Continuing Operations
Allowance for doubtful
accounts $9,307 $11,394 $9,377
Working capital $629,391 $620,324 $563,682
Preferred stock, shares
issued and outstanding - - -
Common stock, shares
issued and outstanding 91,087 92,209 92,129
PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year-To-Date
------------
2010 2009
---- ----
Cash Flows From (For) Operating Activities
Net income $112,192 $62,951
Adjustments to derive cash flows
Write-off of in-process research and
development 14,000 279
Depreciation and amortization 35,907 34,362
Asset impairments - 16,704
Share-based compensation 7,695 4,923
Income tax benefit from exercise of stock
options (145) 646
Excess tax benefit of stock transactions (4,351) (3,365)
Deferred income taxes (10,400) (8,035)
------- ------
Sub-total 154,898 108,465
------- -------
Changes in operating assets and liabilities,
net of asset and business acquisitions
Accounts receivable (13,363) (13,849)
Inventories (29,408) (28,714)
Income taxes refundable (1,958) (22,965)
Accounts payable (7,130) 13,674
Payroll and related taxes 24,820 (26,496)
Accrued customer programs 9,354 (813)
Accrued liabilities (5,467) (10,289)
Accrued income taxes 23,885 14,607
Other 3,863 2,361
----- -----
Sub-total 4,596 (72,484)
----- -------
Net cash from operating activities 159,494 35,981
------- ------
Cash Flows (For) From Investing Activities
Cash acquired in asset exchange - 2,115
Acquisitions of businesses, net of cash acquired (10,059) (88,224)
Acquired research and development (14,000) -
Acquisitions of assets (9,762) -
Acquisition of intangible assets (500) (1,000)
Additions to property and equipment (20,886) (20,929)
------- -------
Net cash for investing activities (55,207) (108,038)
------- --------
Cash Flows (For) From Financing Activities
Repayments of short-term debt, net - (13,736)
Repayments of long-term debt (50,000) (14,287)
Excess tax benefit of stock transactions 4,351 3,365
Issuance of common stock 11,249 8,892
Repurchase of common stock (70,804) (62,297)
Cash dividends (10,838) (9,710)
------- ------
Net cash for financing activities (116,042) (87,773)
-------- -------
Effect of exchange rate changes on cash (895) 3,390
---- -----
Net decrease in cash and cash equivalents (12,650) (156,440)
Cash and cash equivalents of continuing operations,
beginning of period 316,133 318,599
Cash balance of discontinued operations, beginning
of period 4 5
--- ---
Cash and cash equivalents, end of period 303,487 162,164
Less cash balance of discontinued operations,
end period (5) (4)
--- ---
Cash and cash equivalents of continuing operations,
end of period $303,482 $162,160
======== ========
Supplemental Disclosures of Cash Flow Information
Cash paid/received during the period for:
Interest paid $22,273 $24,206
Interest received $10,647 $13,448
Income taxes paid $28,504 $44,322
Income taxes refunded $940 $1,084
Table I
PERRIGO COMPANY
SEGMENT INFORMATION
(in thousands)
(unaudited)
Second Quarter* Year-to-Date*
--------------- -------------
2010 2009 2010 2009
---- ---- ---- ----
Segment Net Sales
Consumer Healthcare $478,442 $446,410 $915,763 $812,612
Rx Pharmaceuticals 55,585 40,401 102,662 73,576
API 36,987 31,866 67,043 66,109
Other 12,154 18,526 25,701 40,454
------ ------ ------ ------
Total $583,168 $537,203 $1,111,169 $992,751
======== ======== ========== ========
Segment Operating Income (Loss)
Consumer Healthcare $88,391 $56,305 $159,751 $115,420
Rx Pharmaceuticals 2,422 7,172 16,682 8,956
API 5,825 1,062 9,575 1,497
Other (758) 785 436 2,601
Unallocated expenses (11,412) (4,525) (15,407) (8,588)
------- ------ ------- ------
Total $84,468 $60,799 $171,037 $119,886
======= ======= ======== ========
*All information based on continuing operations.
Table II
PERRIGO COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share amounts)
(unaudited)
Second Quarter* Year-to-Date*
------------------------ ----------------------
% %
2010 2009 Change 2010 2009 Change
---- ---- -------- ---- ---- ------
Net sales $583,168 $537,203 9% $1,111,169 $992,751 12%
Reported gross
profit $196,945 $146,565 34% $360,939 $282,552 28%
Inventory
step-ups -
Asset
acquisitions 497 - 709 -
Inventory
step-up -
Unico - 1,062 - 1,062
Inventory
step-up -
Diba - 767 - 767
Inventory
step-up - JB
Labs - 358 - 358
Impairment
of fixed
assets - 1,600 - 1,600
--- ----- --- -----
Adjusted gross
profit $197,442 $150,352 31% $361,648 $286,339 26%
======== ======== ======== ========
Adjusted gross
profit % 33.9% 28.0% 32.5% 28.8%
Reported
operating
income $84,468 $60,799 39% $171,037 $119,886 43%
Inventory
step-ups -
Asset
acquisitions 497 - 709 -
Inventory
step-up -
Unico - 1,062 - 1,062
Inventory
step-up -
Diba - 767 - 767
Inventory
step-up - JB
Labs - 358 - 358
Impairment
of fixed
assets - 1,600 - 1,600
Write-off of
in-process
R&D - Diba
acquisition - 279 - 279
Write-off of
in-process
R&D - ANDA 14,000 - 14,000 -
Loss on
asset
exchange - - - 639
--- --- --- ---
Adjusted
operating
income $98,965 $64,865 53% $185,746 $124,591 49%
======= ======= ======== ========
Adjusted
operating
income % 17.0% 12.1% 16.7% 12.6%
Reported
income from
continuing
operations $53,236 $24,042 121% $114,261 $62,349 83%
Inventory
step-ups -
Asset
acquisitions (2) 373 - 532 -
Inventory
step-up -
Unico (6) - 645 - 645
Inventory
step-up -
Diba (3) - 552 - 552
Inventory
step-up - JB
Labs (4) - 229 - 229
Impairment
of fixed
assets (5) - 992 - 992
Write-off of
in-process
R&D - Diba
acquisition (3) - 201 - 201
Write-off of
in-process
R&D - ANDA (1) 11,442 - 11,442 -
Investment
impairment (7) - 15,104 - 15,104
Loss on asset
exchange (7) - - - 639
--- --- --- ---
Adjusted
income from
continuing
operations $65,051 $41,765 56% $126,235 $80,711 56%
======= ======= ======== =======
Diluted earnings
per share from
continuing
operations
Reported $0.57 $0.26 119% $1.23 $0.66 86%
Adjusted $0.70 $0.45 56% $1.36 $0.86 58%
Diluted
weighted
average shares
outstanding 92,999 93,587 93,018 94,076
(1) Net of taxes at 18.3%
(2) Net of taxes at 25%
(3) Net of taxes at 28%
(4) Net of taxes at 36%
(5) Net of taxes at 38%
(6) Net of taxes at 39.3%
(7) Not tax affected
*All information based on continuing operations.
Table II (Continued)
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
Second Quarter* Year-to-Date*
----------------------- -----------------------
% %
2010 2009 Change 2010 2009 Change
---- ---- ------- ---- ---- -------
Consumer Healthcare
Net sales $478,442 $446,410 7% $915,763 $812,612 13%
Reported gross
profit $152,520 $114,977 33% $278,909 $224,284 24%
Inventory
step-up -
Unico - 1,062 - 1,062
Inventory
step-up -
Diba - 767 - 767
Inventory
step-up - JB
Labs - 358 - 358
Impairment of
fixed assets - 1,600 - 1,600
--- ----- --- -----
Adjusted gross
profit $152,520 $118,764 28% $278,909 $228,071 22%
======== ======== ======== ========
Adjusted gross
profit % 31.9% 26.6% 30.5% 28.1%
Reported
operating
expenses $64,129 $58,672 9% $119,158 $108,864 9%
Loss on asset
exchange - - - (639)
--- --- --- ----
Adjusted
operating
expenses $64,129 $58,672 9% $119,158 $108,225 10%
======= ======= ======== ========
Adjusted
operating
expenses % 13.4% 13.1% 13.0% 13.3%
Reported
operating
income $88,391 $56,305 57% $159,751 $115,420 38%
Inventory
step-up -
Unico - 1,062 - 1,062
Inventory
step-up -
Diba - 767 - 767
Inventory
step-up - JB
Labs - 358 - 358
Impairment of
fixed assets - 1,600 - 1,600
Loss on asset
exchange - - - 639
--- --- --- ---
Adjusted
operating
income $88,391 $60,092 47% $159,751 $119,846 33%
======= ======= ======== ========
Adjusted
operating
income % 18.5% 13.5% 17.4% 14.7%
Rx Pharmaceuticals
Net sales 55,585 40,401 38% 102,662 73,576 40%
Reported
operating
income $2,422 $7,172 -66% $16,682 $8,956 86%
Write-off of
in-process
R&D - ANDA 14,000 - 14,000 -
------ - ------ -
Adjusted
operating
income $16,422 $7,172 129% $30,682 $8,956 243%
======= ====== ======= ======
Adjusted
operating
income % 29.5% 17.8% 29.9% 12.2%
Other
Net sales $12,154 $18,526 -34% $25,701 $40,454 -36%
Reported gross
profit $3,670 $6,011 -39% $8,323 $12,566 -34%
Inventory
step-ups -
Asset
acquisitions 497 - $709 -
--- - ---- -
Adjusted gross
profit $4,167 $6,011 -31% $9,032 $12,566 -28%
====== ====== ====== =======
Adjusted gross
profit % 34.3% 32.4% 35.1% 31.1%
Reported
operating
income (loss) $(758) $785 -197% $436 $2,601 -83%
Inventory
step-ups -
Asset
acquisitions 497 - 709 -
--- --- --- ---
Adjusted
operating
income (loss) $(261) $785 -133% $1,145 $2,601 -56%
===== ==== ====== ======
Adjusted
operating
income (loss) % -2.1% 4.2% 4.5% 6.4%
Unallocated
Reported
operating loss $(11,412) $(4,525) 152% $(15,407) $(8,588) 79%
Write-off of
in-process
R&D - Diba
acquisition - 279 - 279
--- --- --- ---
Adjusted
operating loss $(11,412) $(4,246) 169% $(15,407) $(8,309) 85%
======== ======= ======== =======
*All information based on continuing operations.
Table III
FY 2010 GUIDANCE AND FY 2009 EPS
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)
Full Year*
Fiscal 2010 Guidance
--------------------
FY10 reported earnings per share from
continuing operations range $2.42 - $2.52
Charges associated with inventory step-ups 0.008
Charge associated with acquired research and
development 0.123
-----
FY10 adjusted earnings per share from
continuing operations range $2.55 - $2.65
===============
Fiscal 2009*
------------
FY09 reported earnings per share from
continuing operations $1.67
Loss on asset exchange 0.007
Charges associated with inventory step-ups 0.021
Fixed asset impairment 0.011
Write-off of in-process R&D 0.002
Investment impairment 0.161
-----
FY09 adjusted earnings per share from
continuing operations $1.87
=====
*All information based on continuing operations.
SOURCE Perrigo Company
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