Three Months Ended | Nine Months Ended | |||||||
October 2, 2021 |
September 26, 2020 |
October 2, 2021 |
September 26, 2020 | |||||
Net sales | $ | 1,042.7 | $ | 1,003.0 | $ | 3,033.8 | $ | 3,035.0 |
Cost of sales | 706.3 | 633.3 | 1,980.0 | 1,924.5 | ||||
Gross profit | 336.4 | 369.7 | 1,053.8 | 1,110.5 | ||||
Operating expenses | ||||||||
Distribution | 23.3 | 22.5 | 69.0 | 62.4 | ||||
Research and development | 27.6 | 30.4 | 91.7 | 88.7 | ||||
Selling | 129.7 | 130.1 | 405.0 | 389.0 | ||||
Administration | 130.6 | 111.3 | 368.1 | 345.2 | ||||
Impairment charges | 3.5 | - | 162.1 | - | ||||
Restructuring | 1.0 | 0.8 | 11.8 | 1.5 | ||||
Other operating expense (income) | (417.6) | (3.9) | (417.6) | (3.9) | ||||
Total operating expenses | (101.9) | 291.2 | 690.1 | 882.9 | ||||
Operating income | 438.3 | 78.5 | 363.7 | 227.6 | ||||
Change in financial assets | - | (22.2) | - | (25.9) | ||||
Interest expense, net | 30.9 | 33.3 | 94.5 | 94.3 | ||||
Other (income) expense, net | 18.5 | (1.0) | 20.4 | 17.9 | ||||
Loss on extinguishment of debt | - | 20.0 | - | 20.0 | ||||
Income (loss) from continuing operations before income taxes | 388.9 | 48.4 | 248.8 | 121.3 | ||||
Income tax expense (benefit) | 442.8 | 22.0 | 411.8 | 24.9 | ||||
Income (loss) from continuing operations | (53.9) | 26.4 | (163.0) | 96.4 | ||||
Income (loss) from discontinued operations, net of tax | (5.0) | (181.0) | 84.5 | (84.0) | ||||
Net income (loss) | $ | (58.9) | $ | (154.6) | $ | (78.5) | $ | 12.4 |
Earnings (loss) per share
| ||||||||
Basic | ||||||||
Continuing operations | $ | (0.40) | $ | 0.19 | $ | (1.22) | $ | 0.71 |
Discontinued operations | (0.04) | (1.32) | 0.63 | (0.62) | ||||
Basic earnings per share | $ | (0.44) | $ | (1.13) | $ | (0.59) | $ | 0.09 |
Diluted | ||||||||
Continuing operations | $ | (0.40) | $ | 0.19 | $ | (1.22) | $ | 0.70 |
Discontinued operations | (0.04) | (1.31) | 0.63 | (0.61) | ||||
Diluted earnings per share | $ | (0.44) | $ | (1.12) | $ | (0.59) | $ | 0.09 |
Weighted-average shares outstanding | ||||||||
Basic | 133.8 | 136.5 | 133.5 | 136.3 | ||||
Diluted | 133.8 | 137.6 | 133.5 | 137.5 |
October 2, 2021 |
December 31, 2020 | |||
Assets | ||||
Cash and cash equivalents | $ | 2,078.1 | $ | 631.5 |
Accounts receivable, net of allowance for credit losses of $7.6 and $6.5, respectively
| 686.2 | 593.5 | ||
Inventories | 1,092.5 | 1,059.4 | ||
Prepaid expenses and other current assets | 355.7 | 182.2 | ||
Current assets held for sale | 13.4 | 666.9 | ||
Total current assets | 4,225.9 | 3,133.5 | ||
Property, plant and equipment, net | 842.8 | 864.6 | ||
Operating lease assets | 170.6 | 154.7 | ||
Goodwill and indefinite-lived intangible assets | 3,036.9 | 3,102.7 | ||
Definite-lived intangible assets, net | 2,226.2 | 2,481.5 | ||
Deferred income taxes | 40.2 | 40.6 | ||
Non-current assets held for sale | - | 1,364.0 | ||
Other non-current assets | 373.3 | 346.8 | ||
Total non-current assets | 6,690.0 | 8,354.9 | ||
Total assets | $ | 10,915.9 | $ | 11,488.4 |
Liabilities and Shareholders' Equity | ||||
Accounts payable | $ | 405.6 | $ | 451.6 |
Payroll and related taxes | 106.6 | 152.9 | ||
Accrued customer programs | 140.1 | 128.5 | ||
Other accrued liabilities | 339.9 | 183.1 | ||
Accrued income taxes | 353.0 | 9.0 | ||
Current indebtedness | 629.4 | 37.3 | ||
Current liabilities held for sale | 29.2 | 419.6 | ||
Total current liabilities | 2,003.8 | 1,382.0 | ||
Long-term debt, less current portion | 2,920.9 | 3,527.6 | ||
Deferred income taxes | 243.0 | 276.2 | ||
Non-current liabilities held for sale | - | 108.3 | ||
Other non-current liabilities | 565.8 | 539.2 | ||
Total non-current liabilities | 3,729.7 | 4,451.3 | ||
Total liabilities | 5,733.5 | 5,833.3 | ||
Commitments and contingencies - Refer to Note 16 | ||||
Shareholders' equity | ||||
Controlling interests: | ||||
Preferred shares, $0.0001 par value per share, 10 shares authorized
| - | - | ||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized
| 7,064.8 | 7,118.2 | ||
Accumulated other comprehensive income | 54.2 | 395.0 | ||
Retained earnings (accumulated deficit) | (1,936.6) | (1,858.1) | ||
Total shareholders' equity | 5,182.4 | 5,655.1 | ||
Total liabilities and shareholders' equity | $ | 10,915.9 | $ | 11,488.4 |
Supplemental Disclosures of Balance Sheet Information | ||||
Preferred shares, issued and outstanding
| - | - | ||
Ordinary shares, issued and outstanding
| 133.7 | 133.1 |
Nine Months Ended | ||||
October 2, 2021 |
September 26, 2020 | |||
Cash Flows From (For) Operating Activities | ||||
Net income (loss) | $ | (78.5) | $ | 12.4 |
Adjustments to derive cash flows: | ||||
Depreciation and amortization | 238.8 | 284.7 | ||
Loss (Gain) on sale of business | (63.9) | 18.6 | ||
Share-based compensation | 50.2 | 43.9 | ||
Impairment charges | 162.1 | 202.4 | ||
Change in financial assets | - | (25.9) | ||
Loss on extinguishment of debt | - | 20.0 | ||
Restructuring charges | 11.8 | 1.9 | ||
Deferred income taxes | (24.0) | 25.7 | ||
Amortization of debt premium | (2.7) | (1.7) | ||
Other non-cash adjustments, net | 9.2 | (12.0) | ||
Subtotal | 303.0 | 570.0 | ||
Increase (decrease) in cash due to: | ||||
Accounts receivable | (182.3) | 106.4 | ||
Inventories | (70.2) | (93.2) | ||
Prepaid expenses | (1.8) | (23.8) | ||
Accounts payable | (10.4) | 15.2 | ||
Payroll and related taxes | (60.6) | (2.2) | ||
Accrued customer programs | 13.4 | (35.5) | ||
Accrued liabilities | (5.8) | (16.0) | ||
Accrued income taxes | 313.2 | (9.0) | ||
Other, net | (36.8) | 13.9 | ||
Subtotal | (41.3) | (44.2) | ||
Net cash from (for) operating activities | 261.7 | 525.8 | ||
Cash Flows From (For) Investing Activities | ||||
Proceeds from royalty rights | 2.8 | 3.2 | ||
Purchase of equity method investment | - | (15.0) | ||
Acquisitions of businesses, net of cash acquired | - | (106.0) | ||
Asset acquisitions | (70.6) | (34.1) | ||
Additions to property, plant and equipment | (110.4) | (104.3) | ||
Net proceeds from sale of business | 1,493.1 | 187.8 | ||
Other investing, net | 2.8 | 8.1 | ||
Net cash from (for) investing activities | 1,317.7 | (60.3) | ||
Cash Flows From (For) Financing Activities | ||||
Issuances of long-term debt | - | 743.8 | ||
Payments on long-term debt | - | (590.0) | ||
Borrowings (repayments) of revolving credit agreements and other financing, net | (5.8) | 0.1 | ||
Deferred financing fees | - | (6.7) | ||
Premiums on early debt retirement | - | (19.0) | ||
Cash dividends | (97.8) | (93.0) | ||
Other financing, net | (17.1) | (14.9) | ||
Net cash from (for) financing activities | (120.7) | 20.3 | ||
Effect of exchange rate changes on cash and cash equivalents | (12.0) | 9.3 | ||
Net increase (decrease) in cash and cash equivalents | 1,446.7 | 495.1 | ||
Cash and cash equivalents of continuing operations, beginning of period | 631.5 | 344.5 | ||
Cash and cash equivalents held for sale, beginning of period | 10.0 | 9.8 | ||
Less cash and cash equivalents held for sale, end of period | (10.1) | (9.2) | ||
Cash and cash equivalents of continuing operations, end of period | $ | 2,078.1 | $ | 840.2 |
TABLE I | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended October 2, 2021 | ||||||||||||||||||||
Consolidated Continuing Operations |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest and Other | Income Tax Expense (Benefit) | Income (loss) from continuing operations* | Diluted Earnings (Loss) per Share* | ||||||||||
Reported | $ | 1,042.7 | $ | 336.4 | $ | 27.6 | $ | 283.6 | $ | (413.1) | $ | 438.3 | $ | 49.4 | $ | 442.8 | (53.9) | (0.40) | ||
As a % of reported net sales | 32.3 | % | 2.6 | % | 27.2 | % | (39.6) | % | 42.0 | % | 4.7 | % | 42.5 | % | (5.2) | % | ||||
Effective tax rate | 113.9 | % | ||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | - | $ | 22.3 | $ | (1.4) | $ | (28.7) | $ | - | $ | 52.4 | $ | (0.6) | $ | - | $ | 53.0 | $ | 0.37 |
Acquisition and integration-related charges and contingent consideration adjustments | - | - | - | (2.7) | - | 2.7 | (13.1) | - | 15.8 | 0.12 | ||||||||||
Impairment charges | - | - | - | - | (3.5) | 3.5 | - | - | 3.5 | 0.03 | ||||||||||
Net SPA arbitration settlement award | - | - | - | (22.4) | 417.6 | (395.2) | - | - | (395.2) | (2.92) | ||||||||||
(Gain) loss on divestitures | - | - | - | - | - | - | (2.1) | - | 2.1 | 0.02 | ||||||||||
Unusual litigation | - | - | - | (8.9) | - | 8.9 | - | - | 8.9 | 0.07 | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | (1.0) | 1.0 | - | - | 1.0 | 0.01 | ||||||||||
Non-GAAP tax adjustments** | - | - | - | - | - | - | - | (426.2) | 426.2 | 3.15 | ||||||||||
Adjusted | 1,042.7 | $ | 358.7 | $ | 26.2 | $ | 220.9 | $ | - | $ | 111.6 | $ | 33.6 | $ | 16.6 | $ | 61.4 | $ | 0.45 | |
As a % of reported net sales | 34.4 | % | 2.5 | % | 21.2 | % | 10.7 | % | 3.2 | % | 1.6 | % | 5.9 | % | ||||||
Adjusted effective tax rate | 21.3 | % | ||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||
Reported | 133.8 | |||||||||||||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income*** | 1.7 | |||||||||||||||||||
Adjusted | 135.5 | |||||||||||||||||||
*Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | ||||||||||||||||||||
**The non-GAAP tax adjustments are primarily due to: (1) removal of $308.6 million tax expense related to the settlement of the Irish Notice of Amended Assessment, (2) removal of $108.0 million tax expense related to non-recurring intra-entity transfers of intellectual property, (3) $4.9 million tax benefit related to pre-tax non-GAAP adjustments calculated based upon their applicable jurisdictional income tax rates and (4) removal of $3.6 million tax expense related to Base Erosion and Anti-Abuse Tax (BEAT).
| ||||||||||||||||||||
***In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding. |
TABLE I (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended September 26, 2020 | ||||||||||||||||||||
Consolidated Continuing Operations |
Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest, Other, and Change in Financial Assets | Income Tax Expense | Income from continuing operations* | Diluted Earnings per Share* | ||||||||||
Reported | $ | 1,003.0 | $ | 369.7 | $ | 30.4 | $ | 263.9 | $ | (3.1) | $ | 78.5 | $ | 30.1 | $ | 22.0 | $ | 26.4 | $ | 0.19 |
As a % of reported net sales | 36.9 | % | 3.0 | % | 26.3 | % | (0.3) | % | 7.8 | % | 3.0 | % | 2.2 | % | 2.6 | % | ||||
Effective tax rate | 45.5 | % | ||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | - | $ | 22.3 | $ | (0.8) | $ | (30.7) | $ | - | $ | 53.8 | $ | - | $ | - | $ | 53.8 | $ | 0.38 |
Restructuring charges and other termination benefits | - | - | - | - | (0.8) | 0.8 | - | - | 0.8 | 0.01 | ||||||||||
Separation and reorganization expense | - | - | - | (0.2) | - | 0.2 | - | - | 0.2 | - | ||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | - | 0.4 | - | (1.1) | - | 1.5 | - | - | 1.5 | 0.01 | ||||||||||
Initial payment made in connection with an R&D arrangement | - | - | - | - | - | - | - | - | - | - | ||||||||||
Milestone income related to royalty rights | - | - | - | - | - | - | - | - | - | - | ||||||||||
Unusual litigation | - | - | - | (3.6) | 3.9 | (0.3) | - | - | (0.3) | - | ||||||||||
(Gain) Loss on investment securities | - | - | - | - | - | - | (0.9) | - | 0.9 | 0.01 | ||||||||||
(Gain) loss on divestitures | - | - | - | - | - | - | (1.2) | - | 1.2 | 0.01 | ||||||||||
Change in financial assets | - | - | - | - | - | - | 22.2 | - | (22.2) | (0.16) | ||||||||||
Loss on early debt extinguishment | - | - | - | - | - | - | (20.0) | - | 20.0 | 0.15 | ||||||||||
Indirect RX business support costs** | - | 0.8 | (0.3) | (5.0) | - | 6.1 | - | - | 6.1 | 0.04 | ||||||||||
Non-GAAP tax adjustments*** | - | - | - | - | - | - | - | 5.2 | (5.2) | (0.04) | ||||||||||
Adjusted | $ | 1,003.0 | $ | 393.2 | $ | 29.3 | $ | 223.3 | $ | - | $ | 140.6 | $ | 30.2 | $ | 27.2 | $ | 83.2 | $ | 0.60 |
As a % of reported net sales | 39.2 | % | 2.9 | % | 22.3 | % | 14.0 | % | 3.0 | % | 2.7 | % | 8.3 | % | ||||||
Adjusted effective tax rate | 24.6 | % | ||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||
Reported | 137.6 | |||||||||||||||||||
*Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | ||||||||||||||||||||
**Includes certain costs, which are reported in GAAP continuing operations but were previously allocated to the RX business. On a go-forward basis, such costs will either be covered by the transition services agreement or eliminated following closing. Accordingly, we do not believe such operational costs are representative of the future expenses of our continuing operations. | ||||||||||||||||||||
***The non-GAAP tax adjustments are primarily due to (1) $10.0 million tax expense related to pre-tax non-GAAP adjustments calculated based upon their applicable jurisdictional income tax rates and (2) removal of $1.6 million tax benefits from the U.S. CARES Act related to retroactive adjustments to the 2018 and 2019 tax years recorded in 2020, offset by (3) removal of $6.4 million tax expense related to Base Erosion and Anti-Abuse Tax (BEAT).
|
TABLE I (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Nine Months Ended October 2, 2021 | ||||||||||||||||||||
Consolidated Continuing Operations |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest and Other | Income Tax Expense (Benefit) | Income (loss) from continuing operations* | Diluted Earnings (Loss) per Share* | ||||||||||
Reported | $ | 3,033.8 | $ | 1,053.8 | $ | 91.7 | $ | 842.1 | $ | (243.7) | $ | 363.7 | $ | 114.9 | $ | 411.8 | $ | (163.0) | $ | (1.22) |
As a % of reported net sales | 34.7 | % | 3.0 | % | 27.8 | % | (8.0) | % | 12.0 | % | 3.8 | % | 13.6 | % | (5.4) | % | ||||
Effective tax rate | 165.5 | % | ||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | - | $ | 69.0 | $ | (2.5) | $ | (90.0) | $ | - | $ | 161.5 | $ | (2.3) | $ | - | $ | 163.8 | $ | 1.24 |
Acquisition and integration-related charges and contingent consideration adjustments | - | 1.5 | (0.4) | (3.9) | - | 5.8 | (13.1) | - | 18.9 | 0.14 | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | (11.8) | 11.8 | - | - | 11.8 | 0.09 | ||||||||||
(Gain) loss on divestitures | - | - | - | - | - | - | (2.5) | - | 2.5 | - | ||||||||||
Net SPA arbitration settlement award | - | - | - | (22.4) | 417.6 | (395.2) | - | - | (395.2) | (2.93) | ||||||||||
Unusual litigation | - | - | - | (25.2) | - | 25.2 | - | - | 25.2 | 0.19 | ||||||||||
Separation and reorganization expense | - | - | - | (0.4) | - | 0.4 | - | - | 0.4 | - | ||||||||||
Impairment charges | - | - | - | - | (162.1) | 162.1 | - | - | 162.1 | 1.20 | ||||||||||
(Gain) Loss on investment securities | - | - | - | - | - | - | (0.9) | - | 0.9 | 0.01 | ||||||||||
Indirect RX business support costs** | - | 2.9 | 0.3 | (9.6) | - | 12.2 | - | - | 12.2 | 0.09 | ||||||||||
Non-GAAP tax adjustments*** | - | - | - | - | - | - | - | (356.1) | 356.1 | 2.64 | ||||||||||
Adjusted | $ | 3,033.8 | $ | 1,127.2 | $ | 89.1 | $ | 690.6 | $ | - | $ | 347.5 | $ | 96.1 | $ | 55.7 | $ | 195.7 | $ | 1.45 |
As a % of reported net sales | 37.2 | % | 2.9 | % | 22.8 | % | 11.5 | % | 3.2 | % | 1.8 | % | 6.5 | % | ||||||
Adjusted effective tax rate | 22.2 | % | ||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||
Reported | 133.5 | |||||||||||||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income**** | 1.5 | |||||||||||||||||||
Adjusted | 135.0 | |||||||||||||||||||
*Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | ||||||||||||||||||||
**Includes certain costs, which are reported in GAAP continuing operations but were previously allocated to the RX business. On a go-forward basis, such costs will either be covered by the transition services agreement or eliminated following closing. Accordingly, we do not believe such operational costs are representative of the future expenses of our continuing operations. | ||||||||||||||||||||
***The non-GAAP tax adjustments are primarily due to: (1) removal of $308.6 million tax expense related to the settlement of the Irish Notice of Amended Assessment, (2) removal of $48.0 million tax expense related to non-recurring intra-entity transfers of intellectual property, (3) removal of $8.9 million tax expense related to Base Erosion and Anti-Abuse Tax (BEAT) and (4) removal of $3.3 million tax expense impact on deferred taxes of the UK rate change, offset by (5) $22.1 million tax expense related to pre-tax non-GAAP adjustments calculated based upon their applicable jurisdictional income tax rates.
| ||||||||||||||||||||
****In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding. |
TABLE I (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Nine Months Ended September 26, 2020 | ||||||||||||||||||||
Consolidated Continuing Operations |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest, Other, and Change in Financial Assets | Income Tax Expense | Income from continuing operations* | Diluted Earnings per Share* | ||||||||||
Reported | $ | 3,035.0 | $ | 1,110.5 | $ | 88.7 | $ | 796.6 | $ | (2.4) | $ | 227.6 | $ | 106.3 | $ | 24.9 | $ | 96.4 | $ | 0.70 |
As a % of reported net sales | 36.6 | % | 2.9 | % | 26.2 | % | (0.1) | % | 7.5 | % | 3.5 | % | 0.8 | % | 3.2 | % | ||||
Effective tax rate | 20.5 | % | ||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | - | $ | 66.6 | $ | (1.2) | $ | (89.0) | $ | - | $ | 156.8 | $ | - | $ | - | $ | 156.8 | $ | 1.15 |
Acquisition and integration-related charges and contingent consideration adjustments | - | 2.0 | - | (6.4) | - | 8.4 | - | - | 8.4 | 0.06 | ||||||||||
Separation and reorganization expense | - | - | - | (0.9) | - | 0.9 | - | - | 0.9 | 0.01 | ||||||||||
Unusual litigation | - | - | - | (12.5) | 3.9 | 8.6 | - | - | 8.6 | 0.06 | ||||||||||
(Gain) Loss on investment securities | - | - | - | - | - | - | (3.4) | - | 3.4 | 0.02 | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | (1.5) | 1.5 | - | - | 1.5 | 0.01 | ||||||||||
(Gain) loss on divestitures | - | - | - | (0.3) | - | 0.3 | (18.5) | - | 18.8 | 0.14 | ||||||||||
Change in financial assets | - | - | - | - | - | - | 25.9 | - | (25.9) | (0.19) | ||||||||||
Loss on early debt extinguishment | - | - | - | - | - | - | (20.0) | - | 20.0 | 0.15 | ||||||||||
Indirect RX business support costs** | - | 2.9 | (0.5) | (16.0) | - | 19.4 | - | - | 19.4 | 0.14 | ||||||||||
Non-GAAP tax adjustments*** | - | - | - | - | - | - | - | 51.9 | (51.9) | (0.38) | ||||||||||
Adjusted | $ | 3,035.0 | $ | 1,182.0 | $ | 87.0 | $ | 671.5 | $ | - | $ | 423.5 | $ | 90.3 | $ | 76.8 | $ | 256.4 | $ | 1.87 |
As a % of reported net sales | 38.9 | % | 2.9 | % | 22.1 | % | 14.0 | % | 3.0 | % | 2.5 | % | 8.4 | % | ||||||
Adjusted effective tax rate | 23.0 | % | ||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||
Reported | 137.5 | |||||||||||||||||||
*Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | ||||||||||||||||||||
**Includes certain costs, which are reported in GAAP continuing operations but were previously allocated to the RX business. On a go-forward basis, such costs will either be covered by the transition services agreement or eliminated following closing. Accordingly, we do not believe such operational costs are representative of the future expenses of our continuing operations. | ||||||||||||||||||||
***The non-GAAP tax adjustments are primarily due to: (1) $40.7 million tax expense related to pre-tax non-GAAP adjustments calculated based upon their applicable jurisdictional income tax rates and (2) removal of $17.6 million tax benefits from the U.S. CARES Act related to retroactive adjustments to the 2018 and 2019 tax years recorded in 2020, offset by (3) removal of $6.4 million tax expense related to Base Erosion and Anti-Abuse Tax (BEAT).
|
TABLE II | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||
Consumer Self-Care Americas |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense |
Operating Income |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense |
Operating Income | ||||||||||
Reported | $ | 694.2 | $ | 187.6 | $ | 17.9 | $ | 76.7 | $ | 90.4 | $ | 664.0 | $ | 215.6 | $ | 18.8 | $ | 78.9 | $ | 121.7 |
As a % of reported net sales | 27.0 | % | 2.6 | % | 11.0 | % | 13.0 | % | 32.5 | % | 2.8 | % | 11.9 | % | 18.3 | % | ||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | - | $ | 5.4 | $ | (1.0) | $ | (6.4) | $ | 12.7 | $ | - | $ | 5.6 | $ | - | $ | (7.3) | $ | 12.8 |
Unusual litigation | - | - | - | - | - | - | - | - | - | (3.8) | ||||||||||
Impairment charges | - | - | - | - | 2.6 | - | - | - | - | - | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | 0.1 | - | - | - | - | 0.1 | ||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | - | - | - | - | - | - | 0.4 | - | (1.1) | 1.6 | ||||||||||
Indirect RX business support costs* | - | - | - | - | - | - | 0.8 | (0.3) | (0.2) | 1.2 | ||||||||||
Adjusted | $ | 694.2 | $ | 193.0 | $ | 16.9 | $ | 70.3 | $ | 105.8 | $ | 664.0 | $ | 222.4 | $ | 18.5 | $ | 70.3 | $ | 133.6 |
As a % of reported net sales | 27.8 | % | 2.4 | % | 10.1 | % | 15.2 | % | 33.5 | % | 2.8 | % | 10.6 | % | 20.1% | |||||
*Includes certain costs, which are reported in GAAP continuing operations but were previously allocated to the RX business. On a go-forward basis, such costs will either be covered by the transition services agreement or eliminated following closing. Accordingly, we do not believe such operational costs are representative of the future expenses of our continuing operations. |
TABLE II (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||
Consumer Self-Care International |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Operating Income |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Operating Income | ||||||||||
Reported | $ | 348.5 | $ | 148.8 | $ | 9.7 | $ | 133.2 | $ | 4.3 | $ | 339.0 | $ | 154.1 | $ | 11.6 | $ | 132.3 | $ | 10.1 |
As a % of reported net sales | 42.7 | % | 2.8 | % | 38.2 | % | 1.2 | % | 45.5 | % | 3.4 | % | 39.0 | % | 3.0 | % | ||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | - | $ | 16.9 | $ | (0.4) | $ | (22.3) | $ | 39.7 | $ | - | $ | 16.7 | $ | (0.8) | $ | (23.4) | $ | 41.0 |
Impairment charges | - | - | - | - | 0.9 | - | - | - | - | - | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | 0.6 | - | - | - | - | - | ||||||||||
Adjusted | $ | 348.5 | $ | 165.7 | $ | 9.3 | $ | 110.9 | $ | 45.5 | $ | 339.0 | $ | 170.8 | $ | 10.8 | $ | 108.9 | $ | 51.1 |
As a % of reported net sales | 47.5 | % | 2.7 | % | 31.8 | % | 13.1 | % | 50.4 | % | 3.2 | % | 32.1 | % | 15.1 | % | ||||
TABLE II (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||
Consumer Self-Care Americas |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Operating Income |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Operating Income | ||||||||||
Reported | $ | 1,957.0 | $ | 569.5 | $ | 57.3 | $ | 233.2 | $ | 113.9 | $ | 1,992.2 | $ | 627.3 | $ | 53.4 | $ | 229.0 | $ | 348.4 |
As a % of reported net sales | 29.1 | % | 2.9 | % | 11.9 | % | 5.8 | % | 31.5 | % | 2.7 | % | 11.5 | % | 17.5 | % | ||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | - | $ | 17.7 | $ | (1.1) | $ | (19.6) | $ | 38.3 | $ | - | $ | 16.5 | $ | - | $ | (21.2) | $ | 37.7 |
Unusual litigation | - | - | - | - | - | - | - | - | - | (3.9) | ||||||||||
Impairment charges | - | - | - | - | 161.2 | - | - | - | - | - | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | 3.9 | - | - | - | - | 0.4 | ||||||||||
Indirect RX business support costs* | - | 2.9 | 0.3 | - | 2.8 | - | 2.9 | (0.5) | (0.7) | 4.1 | ||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | - | 1.5 | (0.4) | (1.2) | 3.1 | - | 2.0 | - | (6.3) | 8.4 | ||||||||||
Adjusted | $ | 1,957.0 | $ | 591.6 | $ | 56.1 | $ | 212.4 | $ | 323.2 | $ | 1,992.2 | $ | 648.7 | $ | 52.9 | $ | 200.8 | $ | 395.1 |
As a % of reported net sales | 30.2 | % | 2.9 | % | 10.9 | % | 16.5 | % | 32.6 | % | 2.7 | % | 10.1 | % | 19.8 | % | ||||
*Includes certain costs, which are reported in GAAP continuing operations but were previously allocated to the RX business. On a go-forward basis, such costs will either be covered by the transition services agreement or eliminated following closing. Accordingly, we do not believe such operational costs are representative of the future expenses of our continuing operations. |
TABLE II (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||||||
Consumer Self-Care International |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Operating Income |
Net Sales |
Gross Profit | R&D Expense | DSG&A Expense | Operating Income | ||||||||||
Reported | $ | 1,076.8 | $ | 484.3 | $ | 34.4 | $ | 420.8 | $ | 23.1 | $ | 1,042.8 | $ | 483.2 | $ | 35.4 | $ | 401.8 | $ | 45.7 |
As a % of reported net sales | 45.0 | % | 3.2 | % | 39.1 | % | 2.1 | % | 46.3 | % | 3.4 | % | 38.5 | % | 4.4 | % | ||||
Pre-tax adjustments: | ||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | - | $ | 51.3 | $ | (1.3) | $ | (70.7) | $ | 123.2 | $ | - | $ | 50.1 | $ | (1.2) | $ | (67.8) | $ | 118.9 |
Impairment charges | - | - | - | - | 0.9 | - | - | - | - | - | ||||||||||
Restructuring charges and other termination benefits | - | - | - | - | 5.2 | - | - | - | - | 0.4 | ||||||||||
(Gain) loss on divestitures | - | - | - | - | - | - | - | - | (0.3) | 0.3 | ||||||||||
Adjusted | $ | 1,076.8 | $ | 535.6 | $ | 33.1 | $ | 350.1 | $ | 152.4 | $ | 1,042.8 | $ | 533.3 | $ | 34.2 | $ | 333.7 | $ | 165.3 |
As a % of reported net sales | 49.7 | % | 3.1 | % | 32.5 | % | 14.2 | % | 51.1 | % | 3.3 | % | 32.0 | % | 15.9 | % |
TABLE III | |||||||
PERRIGO COMPANY PLC | |||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||
(in millions) | |||||||
(unaudited) | |||||||
Three Months Ended | |||||||
October 2, 2021 |
September 26, 2020 |
Total Change |
FX Change | Constant Currency Change | |||
Reported Net sales | |||||||
Consolidated Continuing Operations | $ | 1,042.7 | $ | 1,003.0 | 4.0% | (0.9)% | 3.1% |
CSCA | $ | 694.2 | $ | 664.0 | 4.6% | (0.4)% | 4.2% |
CSCI | $ | 348.5 | $ | 339.0 | 2.8% | (1.9)% | 0.9% |
Consolidated Continuing Operations | $ | 1,042.7 | $ | 1,003.0 | |||
Less: Eastern European Brands Acquisition | (5.0) | - | |||||
Organic Consolidated Continuing Operations net sales as so adjusted | $ | 1,037.7 | $ | 1,003.0 | 3.5% | (0.9)% | 2.6% |
CSCI | $ | 348.5 | $ | 339.0 | |||
Less: Eastern European Brands Acquisition | (5.0) | - | |||||
Organic CSCI net sales as so adjusted | $ | 343.5 | $ | 339.0 | 1.3% | (1.9)% | (0.6)% |
TABLE III (CONTINUED) | |||||||
PERRIGO COMPANY PLC | |||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||
(in millions) | |||||||
(unaudited) | |||||||
Nine Months Ended | |||||||
October 2, 2021 |
September 26, 2020 |
Total Change |
FX Change | Constant Currency Change | |||
Reported Net sales | |||||||
Consolidated Continuing Operations | $ | 3,033.8 | $ | 3,035.0 | -% | (2.3)% | (2.3)% |
CSCA | $ | 1,957.0 | $ | 1,992.2 | (1.8)% | (0.2)% | (2.0)% |
CSCI | $ | 1,076.8 | $ | 1,042.8 | 3.3% | (6.2)% | (2.9)% |
CSCA | $ | 1,957.0 | $ | 1,992.2 | (1.8)% | (0.2)% | (2.0)% |
Less: Dr. Fresh* | (23.8) | - | |||||
Organic CSCA net sales as so adjusted | $ | 1,933.2 | $ | 1,992.2 | (3.0)% | (0.2)% | (3.2)% |
CSCI | $ | 1,076.8 | $ | 1,042.8 | 3.3% | (6.2)% | (2.9)% |
Less: Rosemont Pharmaceuticals business | - | (28.7) | |||||
CSCI net sales as so adjusted excluding divested businesses | $ | 1,076.8 | $ | 1,014.1 | 6.2% | (6.4)% | (0.2)% |
Less: Dr. Fresh* | (1.3) | - | |||||
Less: Eastern European Brands Acquisition | (19.1) | - | |||||
Organic CSCI net sales as so adjusted | $ | 1,056.4 | $ | 1,014.1 | 4.2% | (6.4)% | (2.2)% |
*Dr. Fresh acquisition comprises all oral self-care assets purchased from High Ridge Brands, including the brands Dr. Fresh®, REACH® and Firefly®.
| |||||||
TABLE IV | |||||
PERRIGO COMPANY PLC | |||||
RECONCILIATION OF NON-GAAP MEASURES | |||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | |||||
(in millions) | |||||
(unaudited) | |||||
Three Months Ended | |||||
October 2, 2021 |
September 26, 2020 |
Total Change | |||
Consolidated Continuing Operations adjusted EPS | $ | 0.45 | $ | 0.60 | (25.0)% |
Adjusted operating income | |||||
Consolidated Continuing Operations | $ | 111.6 | $ | 140.6 | (20.6)% |
Nine Months Ended | |||||
October 2, 2021 |
September 26, 2020 |
Total Change | |||
Consolidated Continuing Operations adjusted EPS | $ | 1.45 | $ | 1.87 | (22.5)% |
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Perrigo Company plc published this content on 10 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 11:46:07 UTC.