PerkinElmer Announces Financial Results for the Third Quarter of 2019 Revenue of $706.9 million; 5% Reported growth; Organic growth of 5% GAAP EPS from continuing operations of $0.53; Adjusted EPS of $1.06 GAAP operating

Revenue of $706.9 million; 5% Reported growth; Organic growth of 5%

GAAP EPS from continuing operations of $0.53; Adjusted EPS of $1.06

GAAP operating income margin from continuing operations of 11.1%; Adjusted operating income margin from continuing operations of 21.6%

Acquisition of Meizheng Group, a food safety testing provider; bolsters assay capabilities in China

Adjusting GAAP EPS guidance to $2.21; Raising adjusted EPS guidance to $4.07

WALTHAM, Mass.--(BUSINESS WIRE)--October 30, 2019--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the third quarter ended September 29, 2019.

The Company reported GAAP earnings per share from continuing operations of $0.53, as compared to GAAP earnings per share from continuing operations of $0.68 in the third quarter of 2018. GAAP revenue for the quarter was $706.9 million, as

compared to $674.3 million in the third quarter of 2018. GAAP operating income from continuing operations for the quarter was $78.7 million, as compared to $80.2 million for the same period a year ago. GAAP operating profit margin was 11.1%

as a percentage of revenue, as compared to 11.9% in the third quarter of 2018.

Adjusted earnings per share from continuing operations for the quarter was $1.06, as compared to $0.90 in the third quarter of 2018. Adjusted revenue for the quarter was $707.1 million, as compared to $674.5 million in the third quarter of

2018. Adjusted operating income from continuing operations for the quarter was $152.5 million, as compared to $128.6 million for the same period a year ago. Adjusted operating profit margin was 21.6% as a percentage of adjusted revenues, as

compared to 19.1% in the third quarter of 2018.

Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

"Delivering mid-single organic revenue growth and high teens EPS growth in this environment reinforces our belief in the strength and resiliency of our businesses and our team's operational execution," said Robert Friel, chairman and chief

executive officer of PerkinElmer. "The strong operating leverage we experienced this quarter gave us the confidence to raise our full-year EPS guidance despite additional headwinds from foreign exchange."

Financial Overview by Reporting Segment for the Third Quarter of 2019

Discovery & Analytical Solutions

Revenue was $426.9 million, as compared to $406.2 million for the third quarter of 2018. Reported revenue increased 5% and organic revenue increased 4%.

Operating income from continuing operations was $52.3 million, as compared to $48.4 million for the comparable prior period.

Adjusted operating income was $86.2 million, as compared to $68.0 million in the third quarter of 2018.

Revenue was $280.0 million, as compared to $268.1 million for the third quarter of 2018. Reported revenue increased 4% and organic revenue increased 6%.

Operating income from continuing operations was $47.4 million, as compared to $47.4 million for the comparable prior period.

Adjusted operating income was $79.7 million, as compared to $76.2 million in the third quarter of 2018.

Full Year 2019 Guidance

For the full year 2019, the Company now forecasts GAAP earnings per share from continuing operations of $2.21 and, on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per

We are excited to announce the recent acquisition of Meizheng Group, a leading food safety testing company in China. The addition of Meizheng expands PerkinElmer's food safety capabilities into attractive markets, including pathogen, toxin,

and drug residue testing.

Founded in 2009, and headquartered in Beijing, China, Meizheng offers a comprehensive product portfolio covering immunoassay, microbiology, and molecular testing across prioritized end-markets, including grain and milling, dairy, and meat

and seafood. The food safety market in China is growing rapidly due to stricter quality standards and regulations developed in response to increased consumer demand for a safer food supply. Meizheng's dedicated channel, culture of innovation,

loyal customer base, and local regulatory experience create a strong foundation and natural synergies for PerkinElmer's existing food quality and food safety testing business in China. Combined, PerkinElmer and Meizheng will have a broad set

of capabilities across the food value chain, covering both quality and food safety testing at the crop through downstream third-party lab and food processor testing.

Conference Call Information

The Company will discuss its third quarter 2019 results and its outlook for business trends in a conference call on October 30, 2019 at 5:00 p.m. Eastern Time. To access the call, please dial (720) 405-2250 prior to the scheduled conference

call time and provide the access code 7094106.

A live audio webcast of the call will be available on the Investors 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, acquisitions 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 delivery and import/export services or significant increases in prices

for those services; (10) disruptions in the supply of raw materials and supplies; (11) the manufacture and sale of products exposing us to product liability claims; (12) our failure to maintain compliance with applicable government

regulations; (13) regulatory changes; (14) our failure to comply with healthcare industry regulations; (15) economic, political and other risks associated with foreign operations; (16) our ability to retain key personnel; (17) significant

disruption in our information technology systems, or cybercrime; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) the United Kingdom's intention to withdraw from the European Union; (21) our

ability to realize the full value of our intangible assets; (22) significant fluctuations in our stock price; (23) reduction or elimination of dividends on our common stock; and (24) other factors which we describe under the caption "Risk

Factors" in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments

occurring after the date of this press release.

PerkinElmer, Inc. is a global leader focused on innovating for a healthier world. The Company reported revenue of approximately $2.8 billion in 2018, has about 13,000 employees serving customers in more than 180 countries, and is a

component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of

certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial

measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash

expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts.

Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information

helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term "adjusted revenue" to refer to GAAP revenue, including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term

"adjusted revenue growth" to refer to the measure of comparing current period adjusted revenue with the corresponding period of the prior year.

We use the term "organic revenue" to refer to GAAP revenue, excluding the effect of foreign currency changes and including acquisitions growth from the comparable prior period, and including purchase accounting adjustments for revenue from

contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We also exclude the impact of sales from divested businesses by deducting the effects of divested business revenue from the current and prior

periods. We use the related term "organic revenue growth" to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.

We use the term "adjusted gross margin" to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions, and including purchase accounting adjustments for

revenue from contracts acquired in acquisitions that will not be fully recognized due to business combination accounting rules. We use the related term "adjusted gross margin percentage" to refer to adjusted gross margin as a percentage of

We use the term "adjusted SG&A expense" to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive

compensation, significant litigation matters and significant environmental charges. We use the related term "adjusted SG&A percentage" to refer to adjusted SG&A expense as a percentage of adjusted revenue.

We use the term "adjusted R&D expense" to refer to GAAP R&D expense, excluding amortization of intangible assets. We use the related term "adjusted R&D percentage" to refer to adjusted R&D expense as a percentage of adjusted

We use the term "adjusted operating income," to refer to GAAP operating income, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding amortization of intangible

assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive compensation, significant litigation matters, significant environmental charges, and restructuring and contract termination

charges. We use the related terms "adjusted operating profit percentage," "adjusted operating profit margin," or "adjusted operating margin" to refer to adjusted operating income as a percentage of adjusted revenue.

We use the term "adjusted earnings per share," or "adjusted EPS," to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding

discontinued operations, amortization of intangible assets, debt extinguishment costs, other purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive compensation, significant litigation

matters, significant environmental charges, disposition of businesses and assets, net, and restructuring and contract termination charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only

our projected costs have been used to calculate our non-GAAP measure. We also adjust for any tax impact related to the above items, and exclude the impact of significant tax events.

Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:

Amortization of intangible assets- purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition.

Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Debt extinguishment costs-we incur costs and income related to the extinguishment of debt, including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and

expense or income arising from hedges utilized to lock in make-whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.

Revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules-accounting rules require us to account for the fair value of revenue from contracts assumed in

connection with our acquisitions. As a result, our GAAP results reflect the fair value of those revenues, which is not the same as the revenue that otherwise would have been recorded by the acquired entity. We include such revenue in our

non-GAAP measures because we believe the fair value of such revenue does not accurately reflect the performance of our ongoing operations for the period in which such revenue is recorded.

Other purchase accounting adjustments-accounting rules require us to adjust various balance sheet accounts, including inventory and deferred rent balances to fair value at the time of the acquisition.

As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of

the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration

from our non-GAAP measures because we believe these expenses or benefits do not accurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded.