Biotech Values

[DewDiligence]

PKI Reports 2Q11 Results

[PKI is up 6% today as I’m typing, although it was down earlier in the day, so it’s hard to know how much of today’s movement to attribute to the quarterly results announced after the close yesterday. Objectively, PKI is firing on all cylinders and is a first-rate company that’s worth considering as a core healthcare/technology holding that benefits strongly from The Global Demographic Tailwind [#board-15427]. PKI is a pseudo-conglomerate, however, so it may be too “boring,” for some of the posters on this board.

Based on PKI’s 2011 non-GAAP EPS guidance of $1.64-1.68, the P/E ratio at the current share price is about 13x, which is quite attractive, IMO, for this well-run growth company.]

http://finance.yahoo.com/news/PerkinElmer-Announces-bw-1211699874.html?x=0&.v=1

›Thursday August 4, 2011, 4:05 pm

• Revenue from continuing operations of $479 million, revenue growth of 14% and organic revenue growth of 6% [“organic” growth excludes acquisitions and currency swings]

• Operating income from continuing operations of $37 million; Adjusted operating income of $68 million, up 80 basis points

• GAAP earnings per share from continuing operations of $0.25; Adjusted earnings per share of $0.42, up 27%

• Raises full year adjusted EPS guidance [to $1.64-1.68 from old range of 1.62-1.67]

WALTHAM, Mass.--(BUSINESS WIRE)-- PerkinElmer, Inc. (NYSE:PKI), a global leader focused on improving the health and safety of people and the environment, today reported financial results for the second quarter ended July 3, 2011. The Company reported GAAP earnings per share from continuing operations of $0.25, as compared to $0.40 in the second quarter of 2010. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the Company announced adjusted earnings per share of $0.42, exceeding the Company’s prior guidance of $0.38-$0.40, representing an increase of 27% as compared to the second quarter of 2010.

Revenue from continuing operations in the second quarter of 2011 was $479.5 million, up 14% as compared to the same period a year ago. Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 6% as compared to the second quarter of 2010. Revenue from continuing operations in the Human and Environmental Health segments increased by 11% and 16%, respectively, as compared to the same period a year ago. Organic revenue, which includes the adjustments noted in the attached reconciliation, increased 2% in the Human Health segment and 9% in the Environmental Health segment compared to the second quarter of 2010.

“We are pleased with our performance in the second quarter of 2011, generating strong growth in revenue and adjusted earnings per share, particularly considering the comparison against our strong financial performance in the second quarter of 2010,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “In the first half of 2011, we have made significant progress toward our strategic initiative of increasing the growth profile of the Company including the addition of several strategic acquisitions as well as continued progress against our multi-year productivity initiatives.”

Operating income from continuing operations for the second quarter of 2011 was $37.5 million, as compared to $33.2 million for the same period a year ago. Adjusted operating income, which includes the adjustments noted in the attached reconciliation, increased by 80 basis points to $68.4 million, as compared to $55.9 million in the second quarter of 2010.

Financial Overview by Reporting Segment

Human Health:

• Revenue from continuing operations of $219.2 million [46% of total revenue] for the second quarter of 2011, as compared to $197.5 million for the second quarter of 2010.
• Operating income from continuing operations of $27.6 million, as compared to $25.8 million for the same period a year ago.
• Adjusted operating profit margin was 19.8%, a decrease of approximately 70 basis points as compared to the second quarter of 2010.

Environmental Health:

• Revenue from continuing operations of $260.2 million [54% of total revenue] for the second quarter of 2011, as compared to $224.1 million for the second quarter of 2010.
• Operating income from continuing operations of $20.7 million, as compared to $16.7 million for the same period a year ago.
• Adjusted operating profit margin was 13.4%, an increase of approximately 240 basis points as compared to the second quarter of 2010.

Financial Guidance

For the full year 2011, the Company forecasts organic revenue to increase in the mid-single digit range relative to 2010. The Company forecasts GAAP earnings per share from continuing operations in the range of $0.98 to $1.02 and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share in the range of $1.64 to $1.68 as compared to the Company’s previously communicated guidance range of $1.62 to $1.67.

Conference Call Information

The Company will discuss its second quarter results and its outlook for business trends in a conference call on August 4, 2011 at 5:00 p.m. Eastern Time (ET). To access the call, please dial [phone] prior to the scheduled conference call time and provide the access code 33633094. A playback of this conference call will be available beginning 8:00 p.m. ET, Thursday, August 4, 2011. The playback phone number is [phone] and the code number is 16188594.

A live audio webcast of the call will be available on the Investor section of the Company’s Web site, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company’s Web site for a two week period beginning approximately two hours after the call.‹