PerkinElmer Announces Financial Results for the Second Quarter of 2018
Aug. 01, 2018
WALTHAM, Mass.--(BUSINESS WIRE)--Aug 1, 2018--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the second quarter ended July 1, 2018.
The Company reported GAAP earnings per share from continuing operations of $0.58, as compared to GAAP earnings per share from continuing operations of $0.57 in the second quarter of 2017. GAAP revenue for the quarter was $703.4 million, as compared to $547.0 million in the second quarter of 2017. GAAP operating income from continuing operations for the quarter was $88.1 million, as compared to $74.2 million in the second quarter of 2017. GAAP operating profit margin was 12.5% as a percentage of revenue.
Adjusted earnings per share from continuing operations for the quarter was $0.91, as compared to $0.67 in the second quarter of 2017. Adjusted revenue for the quarter was $703.6 million, as compared to $547.1 million in the second quarter of 2017. Adjusted operating income from continuing operations for the quarter was $138.3 million, as compared to $97.8 million for the same period a year ago. Adjusted operating profit margin was 19.7% as a percentage of adjusted revenue.
Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.
“We saw continued momentum in the business as both segments experienced double-digit organic revenue growth in the second quarter,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “Our focus on bringing innovative new product offerings to market, while targeting attractive end markets where our capabilities are well differentiated, continues to drive solid revenue and adjusted earnings growth. As a result, we are once again raising our full year organic revenue outlook and adjusted earnings per share guidance.”
Financial Overview by Reporting Segment for the Second Quarter of 2018
Discovery & Analytical SolutionsRevenue was $430.6 million, as compared to $383.1 million for the second quarter of 2017. Reported revenue increased 12% and organic revenue increased 10%. Operating income from continuing operations was $64.7 million, as compared to $51.1 million for the comparable prior period. Adjusted operating income was $76.4 million, as compared to $63.6 million in the second quarter of 2017.
DiagnosticsRevenue was $272.7 million, as compared to $163.8 million for the second quarter of 2017. Reported revenue increased 66% and organic revenue increased 10%. Operating income from continuing operations was $38.8 million, as compared to $36.9 million for the comparable prior period. Adjusted operating income was $77.2 million, as compared to $48.1 million in the second quarter of 2017.
Raises Financial Guidance – Full Year 2018
For the full year 2018, the Company previously forecast GAAP earnings per share from continuing operations of $2.25 and, on a non-GAAP basis, adjusted earnings per share of $3.60. The Company now forecasts GAAP earnings per share from continuing operations of $2.39, and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, adjusted earnings per share of $3.65.
Conference Call Information
The Company will discuss its second quarter results and its outlook for business trends in a conference call on August 1, 2018 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 6379206.
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, 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 such as EUROIMMUN 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; (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 $2.3 billion in 2017, has about 11,000 employees serving customers in more than 150 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.
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