Perrigo Company plc Reports Record Fourth Quarter And Fiscal Year Revenue, Adjusted Operating Income And Adjusted Margins. Conference call scheduled for 10 a.m. ET today.

DUBLIN, Aug. 14, 2014 /PRNewswire/ --

Fiscal fourth quarter net sales increased 18% year-over-year to a record $1.14 billion.

Fiscal fourth quarter adjusted net income increased 58% to $234 million, or $1.74 per diluted share; GAAP net income of $132 million, or $0.98 per diluted share, includes amortization expense and other charges.

Record quarterly adjusted gross margin of 44.5%, with GAAP gross margin of 36.3% and record quarterly adjusted operating margin of 28.4%, with GAAP operating margin of 17.3%.

Fiscal 2014 net sales increased 15% year-over-year to a record $4.06 billion, with organic growth of 7%.

Fiscal 2014 adjusted net income increased 40% to $740 million or $6.39 per diluted share; GAAP net income of $205 million, or $1.77 per diluted share, includes amortization expense and other charges.

Management expects full-year fiscal 2015 adjusted earnings range of $7.20 to $7.50 per diluted share, an increase of 13% to 17% over fiscal 2014 adjusted earnings per share, and reported earnings of between $4.05 and $4.35 per diluted share.

Perrigo Company plc (NYSE: PRGO; TASE) today announced results for its fourth quarter and fiscal year ended June 28, 2014.

Perrigo's Chairman, President and CEO Joseph C. Papa commented, "I am pleased to report that Perrigo has delivered year-over-year record sales and adjusted earnings for the ninth straight fiscal year. While the year was not without its challenges, including an historically weak cough/cold season among other headwinds, this team was able to deliver record results. I am proud of our top line organic growth of 7%, driven by $231 million in new product sales and great execution in our business segments. We transformed Perrigo into a truly global organization with the acquisition of Elan and are uniquely positioned to continue our growth, while making quality healthcare products more affordable for the world."

Refer to Tables I, II, III, and IV at the end of this press release for a reconciliation of non-GAAP adjustments to the current year and prior year periods and additional non-GAAP information. The Company's reported results are summarized in the attached Consolidated Statements of Income, Balance Sheets and Cash Flows.

Fourth Quarter Results

Net sales in the quarter were $1.14 billion, an increase of 18% over the fourth quarter of fiscal 2013, driven primarily by new product sales of $65 million, $112 million in sales attributable the acquisition of Elan Corporation plc ("Elan"), and product acquisitions from Fera Pharmaceuticals, LLC ("Fera") and Aspen Global Inc. ("Aspen"). Excluding charges as outlined in Table I at the end of this release, fourth quarter fiscal 2014 adjusted net income increased 58% to $234 million or $1.74 per diluted share. Reported net income was $132 million, or $0.98 per diluted share. The difference between the reported net income and adjusted net income was attributable primarily to amortization expense and other items not related to the ongoing operations the Company's business.

Net sales in the year were $4.06 billion, an increase of 15% over fiscal 2013, driven primarily by $290 million in sales attributable to the Elan, Rosemont Pharmaceuticals, Ltd., Sergeant's Pet Care Products, Inc., Fera, Velcera Inc. and Aspen acquisitions and new product sales of $231 million. Excluding charges as outlined in Table I at the end of this release, fiscal 2014 adjusted net income increased 40% to $740 million or $6.39 per diluted share. Reported net income was $205 million, or $1.77 per diluted share. The difference between the reported net income and adjusted net income was attributable primarily to amortization expense and other items not related to the ongoing operations the Company's business

Consumer Healthcare segment net sales were $607 million, reflecting an increase in sales of existing products of $52 million (primarily in the antacids and smoking cessation categories), new product sales of $15 million and $6 million attributable to the recent acquisition of OTC products from Aspen. These combined increases were offset by a decline of $29 million in sales of existing products (primarily in the contract manufacturing and animal health categories) due primarily to relatively lower sales in third party contract manufacturing and a delayed start to the flea and tick season in the U.S. due to weather.

Adjusted gross margin contracted 210 basis points due to an under absorption of fixed production costs and lower sales of higher margin animal health products versus last year. Adjusted operating margin included increased R&D investments as more products move from prescription to over-the-counter status.

The Nutritionals segment reported fourth quarter net sales of $145 million as new product sales of $6 million were more than offset by $4 million in discontinued products and lower year-over-year sales in the infant/toddler food and VMS categories.

Fourth quarter gross margin was impacted by the timing of maintenance at the manufacturing facilities, while operating margin was impacted by increased promotional investments to support the launch of the branded probiotic insync®.

The Rx Pharmaceuticals segment fourth quarter net sales increased 30% to $253 million due primarily to new product sales of $35 million and $20 million in sales related to the Fera acquisition.

Gross and operating margin expanded due primarily to higher margin product sales related to the Fera acquisition and favorable product mix despite higher clinical costs and continued investments to grow the specialty sales force.

The API segment's fourth quarter net sales declined to $33 million due primarily to a decrease in sales of existing products of $17 million as a result of increased competition on certain products, partially offset by $8 million in new product sales.

Margins expanded due primarily to product mix.

During the fourth quarter, the Company recognized $86 million of royalty revenue related to global sales of Multiple Sclerosis drug Tysabri®.

Reported gross and operating losses were impacted by $68 million of amortization expense and $6 million of restructuring charges, respectively. Operating expenses included administrative costs.

Excluding the charges outlined in Table III at the end of this release, the Company expects fiscal 2015 adjusted earnings to be between $7.20 and $7.50 per diluted share as compared to $6.39 in fiscal 2014. This range implies a year-over-year growth rate in adjusted earnings of 13% to 17% over fiscal 2014's adjusted earnings per diluted share. The Company also expects fiscal 2015 reported earnings to be between $4.05 and $4.35 per diluted share as compared to $1.77 in fiscal 2014. A reconciliation to GAAP measures are attached in Table III.

Chairman, President and CEO Joseph C. Papa concluded, "We enter fiscal 2015 excited about the prospects for our durable business model and plan to grow adjusted net income between 31% and 37% year-over-year. We expect to launch greater than $235 million in new products, including multiple products that have recently switched from prescription to OTC status, and are enthusiastic about the number of categories currently being considered to switch. We have the deepest Rx pipeline in our history and are excited about the global prospects for Tysabri®. For these reasons, we remain confident in our ability to make quality healthcare more affordable for consumers around the globe."

The conference call will be available live via webcast at 10 a.m. ET to interested parties in the investor relations section of the Perrigo website at http://perrigo.investorroom.com/events-webcasts or by phone at 877-248-9413, International 973-582-2737, and reference ID#68427536. A taped replay of the call will be available beginning at approximately 1:00 p.m. (ET) Thursday, August 14, until midnight Friday, August 29, 2014. To listen to the replay, dial 855-859-2056, International 404-537-3406, and use access code 68427536.

From its beginnings as a packager of generic home remedies in 1887, Perrigo Company plc, headquartered in Ireland, has grown to become a leading global healthcare supplier. Perrigo develops, manufactures and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, nutritional products and active pharmaceutical ingredients (API), and has a specialty sciences business comprised of assets focused on the treatment of Multiple Sclerosis. The Company is the world's largest manufacturer of OTC healthcare products for the store brand market and an industry leader in pharmaceutical technologies. Perrigo's mission is to offer uncompromised "Quality Affordable Healthcare Products®," and it does so across a wide variety of product categories primarily in the United States, United Kingdom, Mexico, Israel and Australia, as well as more than 40 other key markets worldwide, including Canada, China and Latin America. 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 particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are 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 the negative of those terms or other comparable terminology.

Please see the Company's documents filed with the Securities and Exchange Commission, including the Company's annual reports filed on Form 10-K and quarterly reports on Form 10-Q, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this report. 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 may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements 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.

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