Full Press Release Details
Announces Financial Results
Fourth Quarter and Full Year 2016
Company's Medical Imaging business has been moved into discontinued
operations due to the pending sale
new reporting segments of Discovery & Analytical Solutions (DAS) and
WALTHAM, Mass.--(BUSINESS WIRE)--February 2, 2017--PerkinElmer, Inc.
(NYSE: PKI), a global leader focused on innovating for a healthier
world, today reported financial results for the fourth quarter and full
year ended January 1, 2017.
The Company announced the divestiture of its Medical Imaging business in
the fourth quarter of 2016. With the announcement, the Company has moved
the operating results of that business into discontinued operations
thereby impacting comparability to previously issued financial guidance.
The Company reported GAAP earnings per share from continuing operations
of $0.57 versus $0.56 in the comparable prior period of 2015. Revenue
was $566.8 million versus $569.9 million in the comparable prior period
of 2015 resulting in a decline of 1%. GAAP operating income from
continuing operations was $80.4 million versus $77.2 million in the
comparable prior period of 2015.
Adjusted earnings per share from continuing operations of $0.83, as
compared to $0.81 in the comparable prior period in 2015. Adjusted
revenue was $567.0 million versus $570.1 million in the comparable prior
period of 2015 resulting in organic revenue growth of 1%. Adjusted
operating income was $120.6 million versus $118.1 million in the
comparable prior period of 2015.
The Company reported GAAP earnings per share from continuing operations
of $1.96, compared to $1.67 in 2015 representing 17% earnings per share
growth. GAAP revenue was $2.12 billion versus $2.10 billion in the
comparable prior period representing 1% growth. GAAP operating income
from continuing operations was $283.1 million as compared to $250.9
million in 2015, representing 13% operating income growth.
Adjusted earnings per share from continuing operations of $2.60,
compared to $2.33 in 2015 representing 12% adjusted earnings per share
growth. Adjusted revenue was $2.12 billion, as compared to $2.11 billion
in 2015 resulting in organic revenue growth of 2%. Adjusted operating
income was $393.6 million, compared to $363.2 million in 2015
representing 8% adjusted operating income growth.
Adjustments for the Company's non-GAAP financial measures have been
noted in the attached reconciliations.
"As we exit 2016, I am pleased with our performance in delivering strong
margin expansion and cash flow growth while making significant progress
against our strategic priorities," said Robert Friel, chairman and chief
executive officer of PerkinElmer. "We have undertaken substantial steps
to strengthen our organization, accelerate our operational capabilities
and increase our focus on innovation, that better position us to improve
revenue growth and increase profitability."
For the full year, operating cash flow from continuing operations was
$323.8 million as compared to $263.8 million in 2015.
Historical Financial Data
The Company's Annual Report on Form 10-K for the fiscal year ended
January 1, 2017 will be the Company's first periodic report to reflect
the Company's new segment structure and the exclusion of the Company's
Medical Imaging business from continuing operations. Financial
information relating to prior years will be retrospectively adjusted to
reflect these changes.
The Company has made available on the Investor Relations section of its
website (ir.perkinelmer.com) unaudited historical financial data that
retrospectively reflect the Company's new segment structure and the
exclusion of the Company's Medical Imaging business from continuing
operations as well as schedules reconciling the Company's 2016 financial
results and guidance.
Financial Overview by Reporting Segment for the Fourth Quarter and
Discovery & Analytical Solutions
Fourth quarter 2016 revenue of $409.9 million, as compared to $418.2
million for the fourth quarter of 2015. Fourth quarter 2016 reported
revenue declined 2% and organic revenue declined 1%. Full year 2016
revenue of $1,513.0 million, as compared to $1,528.4 million in 2015.
Full year 2016 reported revenue declined 1% and organic revenue was
Fourth quarter 2016 operating income of $72.0 million, as compared to
operating income of $64.4 million for the fourth quarter of 2015. Full
year 2016 operating income of $207.5 million, as compared to operating
income of $173.7 million for 2015.
Fourth quarter 2016 adjusted operating income of $85.2 million, as
compared to $86.6 million in the fourth quarter of 2015. Fourth
quarter 2016 adjusted operating profit margin was 20.8% as a
percentage of revenue, as compared to 20.7% in the fourth quarter of
2015. Full year 2016 adjusted operating income of $266.5 million, as
compared to adjusted operating income of $248.2 million for 2015. Full
year 2016 adjusted operating profit margin was 17.6% as a percentage
of revenue, as compared to 16.2% in 2015.
Fourth quarter 2016 revenue of $156.8 million, as compared to $151.7
million for the fourth quarter of 2015. Fourth quarter 2016 reported
revenue increased 3% and organic revenue increased 7%. Full year 2016
revenue of $602.5 million, as compared to $576.4 million in 2015. Full
year 2016 reported revenue increased 5% and organic revenue increased
Fourth quarter 2016 operating income of $34.0 million, as compared to
$37.0 million for the fourth quarter of 2015. Full year 2016 operating
income of $138.9 million, as compared to operating income of $135.6
Fourth quarter 2016 adjusted operating income of $45.7 million, as
compared to $44.2 million in the fourth quarter of 2015. Fourth
quarter 2016 adjusted operating profit margin was 29.1% as a
percentage of adjusted revenue, flat as compared to the fourth quarter
of 2015. Full year 2016 adjusted operating income of $175.1 million,
as compared to adjusted operating income of $160.9 million for 2015.
Full year 2016 adjusted operating profit margin was 29.0% as a
percentage of adjusted revenue, as compared to 27.9% in 2015.
Financial Guidance - Full Year 2017
For the full year 2017, the Company forecasts GAAP earnings per share
from continuing operations in the range of $2.06 to $2.16 and on a
non-GAAP basis, which is expected to include the adjustments noted in