Biotech Values

[DewDiligence]

PKI Reports 1Q12 Results

[From last Thursday—for archival purposes. The quarter was solid and relatively uneventful. PKI raised non-GAAP EPS guidance for 2012 to $2.00-2.05 (from the old range of $1.98-2.04); the difference between GAAP and non-GAAP EPS is mainly from (non-cash) amortization of intangibles arising from the CALP acquisition, which will continue for some time. (See the link below for a full reconciliation of non-GAAP to GAAP EPS.) The Human Health segment, which grew strongly thanks to the CALP acquisition in late 2011, now comprises 50% of PKI’s total sales.

The annotations in the prologue of #msg-71691218 (with the 4Q11 results announced in Feb 2012) on why PKI is a beneficiary of The Global Demographic Tailwind continue unchanged, so I won’t bother repeating them here.]

http://ih.advfn.com/p.php?pid=nmona&article=52172391&symbol=PKI

›Thursday 26 April 2012 4:05pm ET

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 first quarter ended April 1, 2012. The Company reported GAAP earnings per share from continuing operations of $0.19, as compared to $0.24 in the first quarter of 2011. GAAP earnings per share were unfavorably impacted by non-cash charges primarily related to acquisitions completed in 2011. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, the Company announced adjusted earnings per share of $0.43, representing an increase of 23% as compared to the first quarter of 2011.

“We are pleased to have started 2012 with better-than-expected growth in both revenue and adjusted earnings per share. This performance was particularly encouraging considering our strong financial performance in the first quarter of 2011,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “We continue to make progress against our strategic initiatives through our focus on innovation, our multi-year productivity initiatives and our successful acquisition integration efforts.”

Revenue in the first quarter of 2012 was $510.9 million, up 14% as compared to the same period a year ago. Adjusted revenue in the first quarter of 2012 was $517.4 million, which includes the adjustments noted in the attached reconciliation, up 16% as compared to the first quarter of 2011. Adjusted revenue in the Human and Environmental Health segments increased by 27% and 6%, respectively, as compared to the same period a year ago. Organic revenue [i.e. excluding acquisitions and currency], which includes the adjustments noted in the attached reconciliation, increased 9% in the Human Health segment and 3% in the Environmental Health segment compared to the first quarter of 2011.

Operating income from continuing operations for the first quarter of 2012 was $36.4 million, as compared to $41.4 million for the same period a year ago. Adjusted operating income, which includes the adjustments noted in the attached reconciliation, increased by 160 basis points as a percentage of adjusted revenue to $79.0 million, as compared to $61.1 million in the first quarter of 2011.

For the first quarter of 2012, operating cash flow from continuing operations was $15.3 million as compared to $47.3 million in the first quarter of 2011. The Company made a contribution to its defined benefit pension plan in the United States of $17.0 million in the first quarter of 2012 and received a tax refund of approximately $8.9 million in the first quarter of 2011.

Financial Overview by Reporting Segment

Human Health

• Revenue of $254.0 million [50% of total revenue] for the first quarter of 2012, as compared to $201.3 million for the first quarter of 2011.
• Operating income of $21.9 million, as compared to $21.5 million for the same period a year ago.
• Adjusted operating profit margin was 20.4% as a percentage of adjusted revenue, an increase of approximately 200 basis points as compared to the first quarter of 2011.

Environmental Health

• Revenue of $256.9 million [50% of total revenue] for the first quarter of 2012, as compared to $245.9 million for the first quarter of 2011.
• Operating income of $26.4 million, as compared to $30.2 million for the same period a year ago.
• Adjusted operating profit margin was 14.4% as a percentage of adjusted revenue, an increase of approximately 30 basis points as compared to the first quarter of 2011.

Financial Guidance

For the full year 2012, the Company reconfirmed its forecast for organic revenue to increase in the mid-single digit range relative to 2011. For the full year 2012, the Company forecasts GAAP earnings per share from continuing operations in the range of $1.27 to $1.32 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 $2.00 to $2.05 as compared to the Company’s previously communicated guidance range of $1.98 to $2.04.

Conference Call Information

The Company will discuss its first quarter results and its outlook for business trends in a conference call on April 26, 2012 at 5:00 p.m. Eastern Time (ET). To access the call, please dial (617) 213 - 8856 prior to the scheduled conference call time and provide the access code 90431696. A playback of this conference call will be available beginning 7:00 p.m. ET, Thursday, April 26, 2012. The playback phone number is [phone] and the code number is 76741664.

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.‹