-- Fiscal third quarter revenue from continuing operations increased $25
million, or 5%, to $506 million as compared to $481 million this
quarter a year ago
-- Fiscal third quarter earnings from continuing operations were a record
$0.50 per share
-- Consumer Healthcare fiscal third quarter revenue increased by $46
million or 12%
-- Company revises adjusted full year fiscal 2009 income from continuing
operations guidance to be in a range of $1.80 to $1.90 per share from
previously announced $1.75 to $1.90
-- The Israel Consumer Products business has been classified as
discontinued operations and a sales process has commenced
Perrigo Company (NASDAQ: PRGO)(TASE: PRGO) today announced results for its fiscal year 2009 third quarter and nine months that ended March 28, 2009.
Perrigo Company
(from continuing operations, in thousands, except per share amounts)
Third Quarter Nine Months
2009 2008 2009 2008
---- ---- ---- ----
Net Sales $505,902 $480,640 $1,498,653 $1,255,639
Reported Income $46,469 $40,230 $108,818 $108,037
Adjusted Income $46,999 $44,527 $127,710 $112,334
Reported Diluted EPS $0.50 $0.42 $1.16 $1.14
Adjusted Diluted EPS $0.50 $0.47 $1.36 $1.18
Diluted Shares 93,153 94,955 93,747 95,115
Third Quarter Results
Net sales from continuing operations for the third quarter of fiscal 2009 were $505.9 million, an increase of 5%. Reported income from continuing operations was $46.5 million, or $0.50 per share, compared with $40.2 million, or $0.42 per share, a year ago, an increase of 16%. Excluding charges as outlined in Table II at the end of this release, third quarter fiscal 2009 adjusted income from continuing operations was $47.0 million, or $0.50 per share.
(Refer to Table II at the end of this press release for additional adjustments in the current year period and additional non-GAAP disclosure information.)
As part of management's strategic review of its portfolio of businesses, in March 2009, the Company committed to a plan to sell its Israel Consumer Products business. The results of this business are reflected in the condensed consolidated financial statements as discontinued operations for all periods presented. The Company has engaged the investment banking firms of William Blair and Poalim Capital Markets to assist in this sale process, which is expected to be completed within one year.
Perrigo's Chairman and CEO Joseph C. Papa stated, "I am very pleased with our record third quarter sales and earnings. In this quarter, the over-the-counter category fell 3% versus third quarter last year and the national brand category fell more than 7%, while Perrigo Consumer Healthcare grew 12%. We were able to achieve this growth rate despite the fact that we are comparing the results to the launches of Omeprazole and Cetirizine at this time last year. More consumers than ever are realizing the value that store brands have to offer."
Nine Months Results
Net sales from continuing operations for the first nine months of fiscal 2009 were $1,498.7 million, an increase of 19% over fiscal 2008. The increase was driven by the Consumer Healthcare segment and included $203.7 million of consolidated new product sales. Reported gross profit of $432.1 million was an increase of 13% over fiscal 2008, driven by the Consumer Healthcare segment. The year-to-date reported gross profit percentage in fiscal 2009 was 28.8%, down from 30.5% last year. Reported operating expenses were $240.4 million, an increase of 5% over fiscal 2008. However, as a percentage of net sales, operating expenses were 16.0%, down from 18.2% in fiscal 2008. Reported income from continuing operations was $108.8 million, relatively flat over fiscal 2008.
Consumer Healthcare
Consumer Healthcare segment net sales in the third quarter were $419.1 million compared with $373.0 million in the third quarter last year, an increase of $46.1 million or 12%. The increase resulted from approximately $39.2 million of sales from the acquisitions of JB Labs, Unico, Diba and Brunel, and $31.4 million from sales of new and existing products in the gastrointestinal, cough/cold, smoking cessation and nutrition categories. These increases were partially offset by the impact of unfavorable changes in foreign currency exchange rates of $12.4 million and the absence of the U.K.'s Vitamins, Minerals, and Supplements (VMS) business's sales of $9.8 million.
Reported operating income was $62.3 million, compared with $51.7 million a year ago, largely driven by a favorable mix of products sold both domestically and internationally, gross margins from sales by Unico and the absence of a $2.9 million charge to cost of sales related to the step-up in value of inventory acquired in the Galpharm acquisition that was recognized in fiscal 2008. Adjusted operating income was $63.0 million, an increase of 15% compared to a year ago.
For the first nine months of fiscal year 2009, Consumer Healthcare net sales increased 28% or $270.3 million compared to fiscal 2008. The increase resulted primarily from sales of new and existing products of approximately $212.7 million, primarily in the gastrointestinal, cough/cold, nutrition, smoking cessation and analgesic categories. The increase was also driven by $109.8 million of sales from JB Labs, Unico, Galpharm, Brunel and Diba. These combined increases were partially offset by the absence of the U.K.'s VMS business's sales of $25.7 million and the impact of unfavorable changes in foreign currency exchange rates of $22.4 million.
On February 20, 2009, the Company announced that it began shipping over-the-counter (OTC) Ibuprofen and Diphenhydramine Citrate Tablets, 200/38 mg (Ibuprofen PM). The product is being marketed under store brand labels and is comparable to Wyeth Consumer Healthcare's Advil® PM tablets, 200/38 mg, indicated as a pain reliever (NSAID)/nighttime sleep-aid. Estimated brand sales for the product for the 12 months ended December 21, 2008 were $71 million.
Rx Pharmaceuticals
The Rx Pharmaceutical segment third quarter net sales were $41.7 million compared with $49.2 million a year ago. The decrease was due primarily to the absence of the fiscal 2008 receipt of a one-time cash payment of $8.5 million from a customer in lieu of expected future minimum royalty payments, as agreed upon in a license termination agreement. Net sales were also negatively impacted by a $2.2 million reduction in non-product revenue, as well as continued pricing pressures on certain existing products in the portfolio. These decreases were partially offset by $5.1 million of increased sales volumes on other products in the portfolio.
For the first nine months of fiscal year 2009, net sales for the Rx Pharmaceutical segment decreased 6% compared to fiscal 2008. The decrease was due primarily to the aforementioned one-time cash payment of $8.5 million. The decrease in net sales was also due to an $8.2 million reduction in non-product revenue, as well as pricing pressures due to continued competition in the marketplace for generic drugs. These decreases were partially offset by new product sales of approximately $11.0 million, along with an increase in sales volumes on the Company's existing portfolio of products of approximately $7.0 million.
On March 17, 2009, the Company announced that its partner Cobrek Pharmaceuticals, Inc. (Cobrek) had filed an Abbreviated New Drug Application (ANDA) for Clindamycin Phosphate Foam 1%, a generic version of Evoclin® Foam 1%. The Company believes that Cobrek is the first to file an ANDA with a Paragraph IV certification against Evoclin®. Evoclin® (clindamycin phosphate) Foam 1% is a topical antibiotic indicated for topical application in the treatment of acne vulgaris, and had sales of approximately $44 million for the 12 months ended January 2009, as measured by Wolters Kluwer Health.
API
The API segment reported third quarter net sales of $31.0 million compared with $37.8 million a year ago. The decrease was due primarily to the absence of a one-time $4.9 million accrual reversal related to a long standing customer contract negotiation recognized in fiscal 2008, along with approximately $2.0 million resulting from unfavorable changes in foreign currency exchange rates. Operating income was $4.3 million, compared with $6.0 million last year, reflecting the aforementioned accrual reversal, as well as unfavorable foreign currency exchange rate changes, partially offset by favorable contributions from new products, pricing improvements and lower operating expenses.
For the first nine months of fiscal year 2009, net sales decreased 13% compared to fiscal 2008. This decrease was due primarily to a decline of approximately $16.7 million in sales of three key products, the absence of the one-time $4.9 million accrual reversal mentioned above and approximately $1.0 million resulting from unfavorable changes in foreign currency exchange rates. These decreases were partially offset by a $5.3 million increase in the sales mix of existing products, along with new product sales of approximately $3.2 million.
Other
Continuing operations for the Other category, consisting of the Israel Pharmaceutical and Diagnostic Products operating segment, reported third quarter net sales of $14.1 million, compared with $20.6 million a year ago. Operating income was $2.7 million, up from $1.4 million last year. The increase in operating income was due primarily to operating expenses for fiscal 2009 decreasing by 30% compared to fiscal 2008. The decrease was due primarily to lower employee-related expenses and slightly favorable changes in the foreign exchange rate.
For the first nine months of fiscal 2009, net sales decreased $5.6 million or 9%, compared to fiscal 2008. The decrease was driven primarily by a $7.6 million impact related to a change in a customer contract. In addition, sales in the diagnostic product line decreased by approximately $2.4 million. These decreases were partially offset by changes in foreign currency exchange rates, along with increased sales due to changes in the sales mix of existing products in the remaining portfolio.
Guidance
Chairman and CEO Joseph C. Papa concluded, "We are now expecting adjusted fiscal 2009 earnings from continuing operations to be between $1.80 and $1.90 per share, which implies a year over year growth rate of adjusted earnings from continuing operations of 15% to 22% over fiscal 2008. This is revised from our previous guidance of $1.75 to $1.90 per share, excluding charges outlined in Table III at the end of this release. Looking ahead, we believe Perrigo is well positioned to continue to add value to its customers and shareholders."
Perrigo will host a conference call to discuss fiscal 2009 third quarter results at 10:00 a.m. (ET) on Thursday, May 7. The conference call and presentation slides will be available live via webcast to interested parties on the Perrigo website http://www.perrigo.com/ or by phone 877-248-9413, International 973-582-2737 and reference ID# 95095054. A taped replay of the call will be available beginning at approximately 2:00 p.m. (ET) Thursday, May 7, until midnight Friday, May 15, 2009. To listen to the replay, call 800-642-1687, International 706-645-9291, access code 95095054.
Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes OTC and generic prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and pharmaceutical and medical diagnostic products. The Company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The Company's primary markets and locations of manufacturing and logistics operations are the United States, Israel, Mexico and the United Kingdom. Visit Perrigo on the Internet (http://www.perrigo.com/).
Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors, including those discussed under "Risk Factors" in the Company's Form 10-K for the year ended June 28, 2008, as well as the Company's subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Third Quarter Year-to-Date
------------- ------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $505,902 $480,640 $1,498,653 $1,255,639
Cost of sales 356,310 330,337 1,066,509 873,004
------- ------- --------- -------
Gross profit 149,592 150,303 432,144 382,635
------- ------- ------- -------
Operating expenses
Distribution 6,167 6,525 18,513 18,450
Research and
development 17,890 19,160 56,036 51,623
Selling and
administration 53,638 61,470 165,533 154,949
------ ------ ------- -------
Subtotal 77,695 87,155 240,082 225,022
------ ------ ------- -------
Write-off of
in-process
research and
development - 2,786 279 2,786
Restructuring - 348 - 348
--- --- --- ---
Total 77,695 90,289 240,361 228,156
------ ------ ------- -------
Operating income 71,897 60,014 191,783 154,479
Interest, net 6,966 3,686 20,465 12,009
Other (income)
expense, net 1,160 353 2,565 (905)
Investment impairment - - 15,104 -
------ ------ ------ ------
Income from continuing
operations before
income taxes 63,771 55,975 153,649 143,375
Income tax expense 17,302 15,745 44,831 35,338
------ ------ ------ ------
Income from
continuing
operations 46,469 40,230 108,818 108,037
Income (loss) from
discontinued
operations, net
of tax (572) (263) 30 238
---- ---- -- ---
Net income $45,897 $39,967 $108,848 $108,275
======= ======= ======== ========
Earnings (loss) per
share
Basic
Continuing
operations $0.51 $0.43 $1.18 $1.16
Discontinued
operations (0.01) 0.00 0.00 0.00
----- ---- ---- ----
Basic
earnings per
share $0.50 $0.43 $1.18 $1.16
Diluted
Continuing
operations $0.50 $0.42 $1.16 $1.14
Discontinued
operations (0.01) 0.00 0.00 0.00
----- ---- ---- ----
Diluted
earnings per
share $0.49 $0.42 $1.16 $1.14
Weighted average
shares outstanding
Basic 91,967 92,854 92,251 93,127
Diluted 93,153 94,955 93,747 95,115
Dividends
declared per
share $0.055 $0.050 $0.160 $0.145
PERRIGO COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 28, June 28, March 29,
2009 2008 2008
---- ---- ----
Assets
Current assets
Cash and cash equivalents $197,817 $318,599 $64,113
Investment securities 5 560 725
Accounts receivable, net 331,307 317,875 347,058
Inventories 383,010 374,782 335,905
Current deferred income taxes 40,447 42,241 36,631
Income taxes refundable 12,191 12,841 6,412
Prepaid expenses and
other current assets 26,904 36,951 18,634
Current assets of
discontinued operations 45,796 58,968 48,100
------ ------ ------
Total current assets 1,037,477 1,162,817 857,578
Property and equipment 724,242 719,593 685,323
Less accumulated depreciation (385,780) (381,053) (366,048)
-------- -------- --------
338,462 338,540 319,275
Restricted cash 400,000 400,000 400,000
Goodwill and other indefinite-
lived intangible assets 249,960 287,112 269,608
Other intangible assets 208,093 220,724 222,346
Non-current deferred income taxes 70,610 73,726 50,128
Other non-current assets 45,101 63,914 49,937
Non-current assets of
discontinued operations 22,181 34,202 30,241
------ ------ ------
$2,371,884 $2,581,035 $2,199,113
========== ========== ==========
Liabilities and
Shareholders' Equity
Current liabilities
Accounts payable $232,875 $235,922 $216,030
Notes payable - - 10,169
Payroll and related taxes 51,949 70,977 49,910
Accrued customer programs 52,789 53,419 45,537
Accrued liabilities 49,435 55,055 38,162
Current deferred income taxes 16,120 24,493 18,864
Current portion of
long-term debt 15,869 20,095 17,598
Current liabilities of
discontinued operations 18,975 31,659 21,493
------ ------ ------
Total current
liabilities 438,012 491,620 417,763
Non-current liabilities
Long-term debt, less
current portion 875,000 895,095 697,598
Non-current
deferred income
taxes 133,955 138,158 111,483
Other non-current liabilities 74,770 112,396 102,472
Non-current liabilities of
discontinued operations 9,391 10,051 9,233
----- ------ -----
Total non-
current
liabilities 1,093,116 1,155,700 920,786
Shareholders' equity
Preferred stock, without par
value, 10,000 shares authorized - - -
Common stock, without par value,
200,000 shares authorized 448,589 488,537 498,002
Accumulated other
comprehensive income 8,111 155,184 95,398
Retained earnings 384,056 289,994 267,164
------- ------- -------
Total
shareholders'
equity 840,756 933,715 860,564
------- ------- -------
$2,371,884 $2,581,035 $2,199,113
========== ========== ==========
Supplemental Disclosures of
Balance Sheet Information
Allowance for doubtful accounts $9,750 $7,511 $7,419
Working capital from
continuing operations $572,644 $643,888 $413,208
Preferred stock, shares issued - - -
Common stock, shares issued 92,171 93,311 93,380
PERRIGO COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year-To-Date
------------
2009 2008
---- ----
Cash Flows From (For)
Operating Activities
Net income $108,848 $108,275
Adjustments to derive cash flows
Write-off of in-process
research and development 279 2,786
Depreciation and amortization 50,906 50,822
Asset impairments 16,704 -
Share-based compensation 7,322 6,457
Income tax benefit from
exercise of stock options (2,673) 3,245
Excess tax benefit of
stock transactions (2,970) (8,253)
Deferred income taxes 811 1,846
--- -----
Sub-total 179,227 165,178
------- -------
Changes in operating assets
and liabilities, net of
asset and business
acquisitions and
restructuring
Accounts receivable (6,053) (71,497)
Inventories (9,007) (37,314)
Income taxes refundable (10,617) (4,684)
Accounts payable (4,219) 52,513
Payroll and related taxes (21,258) 6,958
Accrued customer programs (580) (2,445)
Accrued liabilities (16,907) (14,771)
Accrued income taxes 19,726 20,342
Other (28,729) 17,969
------- ------
Sub-total (77,644) (32,929)
------- -------
Net cash from
operating
activities 101,583 132,249
------- -------
Cash Flows (For) From
Investing Activities
Purchase of securities - (170,552)
Proceeds from sales of securities - 201,436
Cash acquired in asset exchange 2,115 -
Acquisitions of
businesses, net of cash
acquired (88,248) (87,130)
Acquisition of intangible assets (1,000) (12,401)
Additions to
property and
equipment (32,020) (26,022)
------- -------
Net cash for
investing
activities (119,153) (94,669)
-------- -------
Cash Flows (For) From
Financing Activities
Repayments of short-term debt, net (13,736) (1,607)
Borrowings of long-term debt - 140,000
Repayments of long-term debt (31,380) (95,801)
Excess tax benefit of
stock transactions 2,970 8,253
Issuance of common stock 9,434 26,097
Repurchase of common stock (62,347) (58,979)
Cash dividends (14,786) (13,551)
------- -------
Net cash (for) from
financing activities (109,845) 4,412
-------- -----
Effect of exchange
rate changes on cash 6,632 (7,895)
----- ------
Net increase (decrease) in
cash and cash equivalents (120,783) 34,097
Cash and cash equivalents of continuing
operations, beginning of period 318,599 30,301
Cash balance of discontinued
operations, beginning of period 5 4
----- ------
Cash and cash
equivalents, end of
period 197,821 64,402
Less cash balance of
discontinued operations, end of
period (4) (289)
-- ----
Cash and cash equivalents of
continuing operations, end of period $197,817 $64,113
======== =======
Supplemental Disclosures of
Cash Flow Information
Cash paid/received
during the period for:
Interest paid $33,829 $29,102
Interest received $18,872 $15,590
Income taxes paid $60,105 $25,715
Income taxes refunded $3,627 $6,560
Table I
PERRIGO COMPANY
SEGMENT INFORMATION
(in thousands)
(unaudited)
Third Quarter Year-to-Date
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Segment Net Sales
Consumer Healthcare $419,148 $373,031 $1,231,761 $961,495
Rx Pharmaceuticals 41,747 49,231 115,323 122,846
API 30,953 37,818 97,062 111,240
Other 14,054 20,560 54,507 60,058
------ ------ ------ ------
Total $505,902 $480,640 $1,498,653 $1,255,639
======== ======== ========== ==========
Segment Operating Income (Loss)
Consumer Healthcare $62,278 $51,693 $177,697 $120,549
Rx Pharmaceuticals 7,982 11,349 16,938 27,160
API 4,344 6,024 5,842 16,723
Other 2,726 1,368 5,327 6,221
Unallocated expenses (5,433) (10,420) (14,021) (16,174)
------ ------- ------- -------
Total $71,897 $60,014 $191,783 $154,479
======= ======= ======== ========
*All information based on continuing operations.
Table II
PERRIGO COMPANY
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share amounts)
(unaudited)
Third Quarter Year-to-Date
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $505,902 $480,640 $1,498,653 $1,255,639
Reported gross
profit $149,592 $150,303 $432,144 $382,635
Inventory
step-up -
Unico - - 1,062 -
Inventory
step-up -
Diba 736 - 1,503 -
Inventory
step-up - JB
Labs - - 358 -
Impairment of
fixed assets - - 1,600 -
Inventory
step-up -
Galpharm - 2,878 - 2,878
----- ----- ----- -----
Adjusted gross
profit $150,328 $153,181 $436,667 $385,513
======== ======== ======== ========
Adjusted gross
profit % 29.7% 31.9% 29.1% 30.7%
Reported
operating
income $71,897 $60,014 $191,783 $154,479
Inventory
step-up -
Unico - - 1,062 -
Inventory
step-up -
Diba 736 - 1,503 -
Inventory
step-up - JB
Labs - - 358 -
Impairment of
fixed assets - - 1,600 -
Write-off of
in-process
R&D - Diba
acquisition - - 279 -
Loss on asset
exchange - - 639 -
Inventory
step-up -
Galpharm - 2,878 - 2,878
Restructuring - 348 - 348
Write-off of
in-process
R&D -
Galpharm
acquisition - 2,786 - 2,786
------ ----- ------ -----
Adjusted
operating
income $72,633 $66,026 $197,224 $160,491
======= ======= ======== ========
Adjusted
operating
income % 14.4% 13.7% 13.2% 12.8%
Reported income
from continuing
operations $46,469 $40,230 $108,818 $108,037
Inventory
step-up -
Unico (5) - - 645 -
Inventory
step-up -
Diba (1) 530 - 1,082 -
Inventory
step-up - JB
Labs (2) - - 229 -
Impairment of
fixed assets (4) - - 992 -
Write-off of
in-process
R&D - Diba
acquisition (1) - - 201 -
Investment
impairment (6) - - 15,104 -
Loss on asset
exchange (6) - - 639 -
Inventory
step-up -
Galpharm (1) - 2,072 - 2,072
Restructuring (3) - 219 - 219
Write-off of
in-process
R&D -
Galpharm
acquisition (1) - 2,006 - 2,006
----- ----- ----- -----
Adjusted income
from continuing
operations $46,999 $44,527 $127,710 $112,334
======= ======= ======== ========
Diluted earnings
per share from
continuing
operations
Reported $0.50 $0.42 $1.16 $1.14
Adjusted $0.50 $0.47 $1.36 $1.18
Diluted
weighted
average shares
outstanding 93,153 94,955 93,747 95,115
(1) Net of taxes at 28%
(2) Net of taxes at 36%
(3) Net of taxes at 37%
(4) Net of taxes at 38%
(5) Net of taxes at 39.3%
(6) No tax impact
*All information based on continuing operations.
Table II (Continued)
REPORTABLE SEGMENTS
RECONCILIATION OF NON-GAAP MEASURES
(in thousands)
(unaudited)
Third Quarter Year-to-Date
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Consumer Healthcare
Net sales $419,148 $373,031 $1,231,761 $961,495
Reported gross
profit $116,068 $107,819 $340,351 $266,728
Inventory step-
up - Unico - - 1,062 -
Inventory step-
up - Diba 736 - 1,503 -
Inventory step-
up - JB Labs - - 358 -
Impairment of
fixed assets - - 1,600 -
Inventory step-
up - Galpharm - 2,878 - 2,878
----- ----- ----- -----
Adjusted gross
profit $116,804 $110,697 $344,874 $269,606
======== ======== ======== ========
Adjusted gross
profit % 27.9% 29.7% 28.0% 28.0%
Reported operating
expenses $53,790 $56,126 $162,654 $146,179
Loss on asset
exchange - - (639) -
Restructuring - (348) - (348)
---- ---- ---- ----
Adjusted operating
expenses $53,790 $55,778 $162,015 $145,831
======= ======= ======== ========
Adjusted operating
expenses % 12.8% 15.0% 13.2% 15.2%
Reported operating
income $62,278 $51,693 $177,697 $120,549
Inventory step-
up - Unico - - 1,062 -
Inventory step-
up - Diba 736 - 1,503 -
Inventory step-
up - JB Labs - - 358 -
Impairment of
fixed assets - - 1,600 -
Loss on asset
exchange - - 639 -
Inventory step-
up - Galpharm - 2,878 - 2,878
Restructuring - 348 - 348
--- --- --- ---
Adjusted operating
income $63,014 $54,919 $182,859 $123,775
======= ======= ======== ========
Adjusted operating
income % 15.0% 14.7% 14.8% 12.9%
Unallocated
Reported operating
loss $(5,433) $(10,420) $(14,021) $(16,174)
Write-off of in-
process R&D -
Diba acquisition
- - 279 -
Write-off of in-
process R&D -
Galpharm
acquisition - 2,786 - 2,786
----- ----- ----- -----
Adjusted operating
loss $(5,433) $(7,634) $(13,742) $(13,388)
======= ======= ======== ========
*All information based on continuing operations.
Table III
2009 GUIDANCE
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)
Full Year
Fiscal 2009 Guidance
--------------------
Reported earnings
per share from
continuing
operations range $1.60 - $1.70
Loss on asset
exchange $0.007
Charges
associated with
inventory step-
ups $0.021
Fixed asset
impairment $0.011
Write-off of in-
process R&D $0.002
Investment
impairment $0.161
------
Adjusted earnings
per share from
continuing
operations range $1.80 - $1.90
===============
First Call Analyst:
FCMN Contact: pblain@perrigo.com
SOURCE: Perrigo Company
CONTACT: Arthur J. Shannon, Vice President, Investor Relations and
Communication, +1-269-686-1709, ajshannon@perrigo.com, or Daniel B. Willard,
Manager, Investor Relations and Communication, +1-269-686-1597,
dbwillard@perrigo.com, both of Perrigo
Web Site: http://www.perrigo.com/