Full Press Release Details
Announces Financial Results for the Third Quarter of 2016
Revenue of $548 million versus $563 million in the comparable prior
earnings per share from continuing operations of $0.52; Adjusted
earnings per share of $0.68
operating profit margin of 14.8%; Adjusted operating profit margin of
gross margin expands 240 basis points; Adjusted gross margin expands
WALTHAM, Mass.--(BUSINESS WIRE)--November 7, 2016--PerkinElmer, Inc.
(NYSE: PKI), a global leader committed to innovating for a healthier
world, today reported financial results for the third quarter ended
The Company reported GAAP earnings per share from continuing operations
of $0.52, as compared to $0.48 in the third quarter of 2015. GAAP
revenue in the third quarter of 2016 was $548.1 million, as compared to
$563.4 million in the comparable period of 2015. GAAP operating income
from continuing operations for the third quarter of 2016 was $81.2
million, as compared to $75.9 million in the third quarter of 2015.
Operating profit margin was 14.8% as a percentage of revenue, as
compared to 13.5% for the same period a year ago.
Adjusted earnings per share was $0.68, as compared to $0.60 in the third
quarter of 2015. Adjusted revenue for the quarter was $548.2 million, as
compared to $563.6 million in the third quarter of 2015. Adjusted
operating income for the third quarter of 2016 was $103.9 million, as
compared to $95.7 million for the same period a year ago. Adjusted
operating profit margin was 18.9% as a percentage of adjusted revenue,
as compared to 17.0% for the same period a year ago. Adjustments for the
Company's non-GAAP financial measures have been noted in the attached
"During the third quarter we continued to drive solid operational
improvements across the Company resulting in strong margin expansion and
EPS growth, however our top line performance was disappointing as our
capital intensive businesses experienced challenging market conditions,"
said Robert Friel, chairman and chief executive officer of PerkinElmer.
"We believe the strong profit performance this quarter and year-to-date
validates the steps we are taking to rebalance the portfolio and the
recent realignment of our operating segments into Diagnostics and
Discovery & Analytical Solutions will help us accelerate that
For the first nine months of 2016, GAAP operating cash flow from
continuing operations was $198.9 million, as compared to $161.9 million
in the comparable period of 2015.
Financial Overview by Reporting Segment for the Third Quarter of 2016
Revenue of $338.2 million, as compared to $343.6 million for the third
quarter of 2015 representing revenue decline of 2%. Organic revenue
growth was flat, impacted by the extra week in the comparable prior
Operating income of $64.6 million, as compared to operating income of
$63.1 million for the same period a year ago.
Environmental Health
Revenue of $209.8 million, as compared to $219.8 million for the third
quarter of 2015 representing revenue decline of 5%. Organic revenue
declined 5% due to softer capital equipment end markets.
Operating income of $27.7 million, as compared to operating income of
$22.8 million for the same period a year ago.
Updated Financial Guidance - Full Year 2016
For the full year 2016, the Company is narrowing its previous guidance
of GAAP earnings per share from continuing operations to a new range of
$2.24 to $2.26 and on a non-GAAP basis, which is expected to include the
adjustments noted in the attached reconciliation, adjusted earnings per
share of $2.75 to $2.77.
Conference Call Information
The Company will discuss its third quarter results and its outlook for
business trends in a conference call on November 7, 2016 at 5:00 p.m.
Eastern Time. To access the call, please dial (541) 797-2422 prior to
the scheduled conference call time and provide the access code 85694495.
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.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), this earnings announcement also
contains non-GAAP financial measures. The reasons that we use these
measures, a reconciliation of these measures to the most directly
comparable GAAP measures, and other information relating to these
measures are included below following our GAAP financial statements.
Factors Affecting Future Performance
This press release contains "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements relating to estimates and
projections of future earnings per share, cash flow and revenue growth
and other financial results, developments relating to our customers and
end-markets, and plans concerning business development opportunities and
divestitures. Words such as "believes," "intends," "anticipates,"
"plans," "expects," "projects," "forecasts," "will" and similar
expressions, and references to guidance, are intended to identify
forward-looking statements. Such statements are based on management's
current assumptions and expectations and no assurances can be given that
our assumptions or expectations will prove to be correct. A number of
important risk factors could cause actual results to differ materially
from the results described, implied or projected in any forward-looking
statements. These factors include, without limitation: (1) markets into
which we sell our products declining or not growing as anticipated; (2)
fluctuations in the global economic and political environments; (3) our
failure to introduce new products in a timely manner; (4) our ability to
execute acquisitions and license technologies, or to successfully
integrate acquired businesses and licensed technologies into our
existing business or to make them profitable, or successfully divest
businesses; (5) our failure to adequately protect our intellectual
property; (6) the loss of any of our licenses or licensed rights; (7)
our ability to compete effectively; (8) fluctuation in our quarterly
operating results and our ability to adjust our operations to address
unexpected changes; (9) significant disruption in third-party package