DUBLIN, May 22, 2017 /PRNewswire/ --
- Comprehensive Form 10-K reflects accounting treatment of
historical Tysabri® royalty stream as a financial
asset
- No impact on net cash flows or previously closed sale of
Tysabri®
- Revised previously reported 2016 guidance to reflect the new
accounting treatment for Tysabri® at its statutory tax
rate of 12.5%:
1) reported (GAAP) net sales
range of $5.1 billion to $5.3
billion; adjusted (Non-GAAP) net sales range of $5.0 billion to $5.2 billion
2) reported diluted earnings
(loss) per share ("EPS") range of $(28.38)
to $(28.08); adjusted diluted EPS range of $4.70 to $5.00; and
3) operating cash flow of
>$550 million
- Exceeded or performed at the high end of final 2016 guidance
ranges above:
1) Realized calendar year 2016
GAAP net sales of $5.3 billion and
adjusted net sales of $5.2 billion,
an increase in adjusted net sales of 8% year-over-year on a
constant currency basis
2) Realized calendar year 2016
reported net loss per share of $(28.01), primarily due to $2.6 billion goodwill and intangible asset
impairment charges and a $2.6 billion
reduction in fair value of Tysabri®, with adjusted
diluted EPS of $5.07, exceeding final
adjusted guidance range; and
3) Full year 2016 cash flow
from operations of $655 million
exceeded final guidance, not including the $351 million Tysabri® cash royalty
payments that have been included in investing cash flow
- Realized fourth quarter reported net sales of $1.3 billion and diluted loss per share of
$(9.48), primarily due to impairment
charges and a reduction in fair value for Tysabri®;
delivered fourth quarter adjusted diluted EPS of $1.24
- Company expects 2017 net sales to be in the range of
$4.6 to $4.8 billion; expects
calendar year 2017 reported diluted EPS to be in the range of
$0.22 to $0.57 and adjusted diluted
EPS to be in the range of $4.15 to
$4.50, including contributions from the Israel Active
Pharmaceutical Ingredients (API) business
- Company to file first quarter 2017 Form 10-Q as soon as
practical
- 2017 Annual General Meeting of Shareholders to be held on
July 20, 2017
- Company to conduct conference call on May 23, 2017 at 8:30 am
EDT
Perrigo Company plc (NYSE; TASE: PRGO), a leading global
provider of Quality Affordable Healthcare
Products®, today announced results for the fourth
quarter and calendar year ended December 31, 2016.
Perrigo's CEO John T. Hendrickson
commented, "I am pleased the team was able to complete these
filings in an expedited manner. Calendar year 2016 adjusted net
sales were $5.2 billion, at the high
end of our final guidance range excluding
Tysabri®, with continued strong cash flow
generation. Strong performance in CHC Americas, steadying business
fundamentals in CHC International and improved second half RX
pricing visibility led to adjusted diluted earnings per share of
$5.07, greater than our final
guidance range of $4.70 to $5.00. Our
2017 priorities remain unchanged: focus on the fundamentals of our
business through 1) operational execution and efficiency, 2) growth
investments in R&D and 3) delivering on our 2017 plan. I am
pleased that our consolidated first quarter 2017 top line results
were consistent with our plan and continue to anticipate 2017 will
be a year of execution to reestablish our foundation, with a
projected return to consolidated growth in 2018. We are executing
well against our cost optimization plan and the addition of two new
directors to our Board further enhances our corporate governance.
The quality of this business model remains evident as we continue
to advance our strategic action plans and our commitment to
providing Quality Affordable Healthcare Products®
to customers and consumers around the world."
Primary Adjustments to Preliminary Unaudited Calendar Year 2016
Results
On February 27, 2017, Perrigo
issued preliminary unaudited results for calendar year 2016,
including preliminary unaudited GAAP EPS loss in a range of
$(28.85) to $(29.00), primarily
related to goodwill and intangible asset impairment charges of
$5.4 billion. The Company also
announced preliminary unaudited adjusted diluted EPS in a range of
$7.10 to $7.25.
The GAAP EPS range for 2016 provided on February 27, 2017 included $62 million of
Tysabri® GAAP operating income. This equates to
GAAP EPS of $0.38 at the statutory
tax rate of 12.5%. Excluding Tysabri®, the February 27, 2017 GAAP EPS range of $(28.85) to $(29.00) changes to a GAAP EPS range
of $(29.23) to $(29.38). This final
range compares to actual GAAP EPS of $(28.01) realized in calendar year 2016.
The adjusted EPS range for 2016 provided on February 27, 2017 included $352 million of Tysabri® adjusted
operating income. This equates to adjusted diluted EPS of
$2.14 at the statutory tax rate of
12.5%. Excluding Tysabri®, the February 27, 2017 adjusted diluted EPS range of
$7.10 to $7.25 changes to an adjusted
diluted EPS range of $4.96 to $5.11.
This range compares to actual adjusted diluted EPS of $5.07 achieved in calendar year 2016.
Calendar Year 2016 Results
Refer to Tables I - VII at the end of this press release for a
reconciliation of non-GAAP adjustments to the current year and
prior year periods and additional non-GAAP information. The
Company's reported results are included in the attached Condensed
Consolidated Statements of Operations and Balance Sheets.
Perrigo Company
plc
(in millions,
except earnings per share amounts)
(see the attached
Tables I & III for reconciliation to GAAP
numbers)
|
|
|
Calendar Year
Ended
|
|
Calendar Year
Ended
|
|
YoY
|
|
Constant
Currency
|
|
12/31/2016
|
|
12/31/2015
|
|
% Change
|
|
%
Change(2)
|
Reported Net
Sales
|
$5,281
|
|
$5,015
|
|
5%
|
|
|
Reported Operating
Income (Loss)
|
$(2,000)
|
|
$450
|
|
NM
|
|
|
Reported Net
Loss
|
$(4,013)
|
|
$(2)
|
|
NM
|
|
|
Reported Diluted Loss
per Share
|
$(28.01)
|
|
$(0.01)
|
|
NM
|
|
|
Reported Diluted
Shares
|
143.3
|
|
144.6
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Sales(1)
|
$5,168
|
|
$4,852
|
|
7%
|
|
8%
|
Adjusted Operating
Income
|
$1,084
|
|
$1,107
|
|
(2)%
|
|
|
Adjusted Net
Income
|
$728
|
|
$799
|
|
(9)%
|
|
|
Adjusted Diluted
Earnings per Share
|
$5.07
|
|
$5.57
|
|
(9)%
|
|
|
Adjusted Diluted
Shares
|
143.6
|
|
143.4
|
|
NM
|
|
|
|
|
(1)
|
Calendar year 2016
net sales exclude $113 million of net sales from held-for-sale
businesses and divestitures, primarily U.S. VMS and the European
sports brand. For comparative purposes, calendar year 2015 net
sales have been adjusted in this presentation to exclude
$163 million of sales attributable to held-for-sale
businesses, primarily U.S. VMS, the European sports brand and the
Indian API business. This 2015 net sales adjustment does not impact
any other prior year amounts or metrics.
|
(2)
|
See table III for a
reconciliation to GAAP.
|
NM = Not
meaningful
|
Reported net sales for calendar year 2016 were $5.3 billion, an increase of 5% over calendar
2015. Adjusted net sales for the year were $5.2 billion, an increase of 8% on a constant
currency basis over calendar year 2015. New product sales of
$311 million were partially offset by $74 million in discontinued products and
$58 million of unfavorable foreign currency movements compared
to 2015. Reported net sales were also lower due to the completed
sale of the U.S. VMS business in the third quarter of
2016.
Reported net loss for calendar year 2016 was
$(4.0) billion, or $(28.01) per
share versus a net loss of $(2) million, or $(0.01) per share, in the prior year. Excluding
charges as outlined in Table I at the end of this release, calendar
year 2016 adjusted net income was $728
million, or adjusted diluted EPS of $5.07, a year-over-year decrease of 9%.
Fourth Quarter Calendar Year 2016 Results
Perrigo Company
plc
(in millions,
except earnings per share amounts)
(see the attached
Tables I & III for reconciliation to GAAP
numbers)
|
|
|
Fourth Quarter
Ended
|
|
Fourth Quarter
Ended
|
|
YoY
|
|
Constant
Currency
|
|
12/31/2016
|
|
12/31/2015
|
|
% Change
|
|
%
Change(2)
|
Reported Net
Sales
|
$1,331
|
|
$1,359
|
|
(2)%
|
|
|
Reported Net
Loss
|
$(1,359)
|
|
$(218)
|
|
NM
|
|
|
Reported Diluted Loss
per Share
|
$(9.48)
|
|
$(1.51)
|
|
NM
|
|
|
Reported Diluted
Shares
|
143.4
|
|
144.9
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Sales(1)
|
N/A
|
|
$1,315
|
|
1%
|
|
4%
|
Adjusted Net
Income
|
$178
|
|
$202
|
|
(12)%
|
|
|
Adjusted Diluted
Earnings per Share
|
$1.24
|
|
$1.39
|
|
(11)%
|
|
|
Adjusted Diluted
Shares
|
143.6
|
|
145.4
|
|
(1)%
|
|
|
|
|
(1)
|
For comparative
purposes, fourth quarter 2015 net sales have been adjusted in this
presentation to exclude $45 million of sales attributable to
held-for-sale businesses. This 2015 net sales adjustment does not
impact any other prior year amounts or metrics.
|
(2)
|
See table III for a
reconciliation to GAAP.
|
NM = Not
meaningful
|
Reported net sales in the quarter were $1.3 billion, a decrease of 2% over the prior
year due to the sale of the U.S. VMS business in the third quarter
of 2016, which was included in 2015. Adjusted net sales in the
quarter were $1.3 billion, an
increase of 4%, on a constant currency basis over the fourth
quarter of 2015. All reportable segments showed year-over-year
growth on an adjusted constant currency basis, led by the CHC
Americas segment. New product sales of $69
million were offset partially by $8 million in
discontinued products.
Reported net loss for the fourth quarter of calendar year 2016
was $(1.4) billion, or $(9.48) per share versus a net loss of
$(218) million, or $(1.51) per share, in the prior year. Excluding
charges as outlined in Table I at the end of this release, fourth
quarter 2016 adjusted net income was $178
million, or adjusted diluted EPS of $1.24, a year-over-year decrease of 11%.
Segment Results
Consumer
Healthcare Americas ("CHCA") Segment
(in
millions)
(see the attached
Tables II & III for reconciliation to GAAP
numbers)
|
|
|
Fourth Quarter
Ended
|
|
Fourth Quarter
Ended
|
|
YoY
|
|
Constant
Currency
|
|
12/31/2016
|
|
12/31/2015
|
|
Change
|
|
%
Change(3)
|
Reported Net
Sales
|
$627
|
|
$643
|
|
(3)%
|
|
|
Reported Gross
Profit
|
$210
|
|
$206
|
|
2%
|
|
|
Reported Gross
Margin
|
33.5%
|
|
32.1%
|
|
140 bps
|
|
|
Reported Operating
Income
|
$83
|
|
$93
|
|
(10)%
|
|
|
Reported Operating
Margin
|
13.3%
|
|
14.4%
|
|
(110) bps
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Sales(1)
|
N/A
|
|
$599
|
|
5%
|
|
5%
|
Adjusted Gross
Profit
|
$223
|
|
$218
|
|
2%
|
|
|
Adjusted Gross
Margin(2)
|
35.5%
|
|
34.0%
|
|
150 bps
|
|
|
Adjusted Operating
Income
|
$139
|
|
$125
|
|
11%
|
|
|
Adjusted Operating
Margin(2)
|
22.2%
|
|
19.5%
|
|
270 bps
|
|
|
|
|
(1)
|
For comparative
purposes, fourth quarter 2015 net sales have been adjusted in this
presentation to exclude $44 million of sales attributable to
the U.S. VMS business, which was sold in the third quarter 2016.
This 2015 net sales adjustment does not impact any other prior year
amounts or metrics.
|
(2)
|
Q4 2016 and 2015
adjusted gross margin and operating margin use reported net sales
as the denominator.
|
(3)
|
See table III for a
reconciliation to GAAP.
|
Reported net sales in the CHC Americas segment were lower by 3%
due to the sale of the U.S. VMS business in the third quarter,
which was included in 2015. CHC Americas adjusted net sales,
excluding U.S. VMS net sales from the fourth quarter 2015, grew 5%
led by an increase in sales of existing products of
$41 million (primarily in the infant nutrition, smoking
cessation and antacids categories). New product sales in the
quarter were $27 million, which included the store brand
launches of Flonase® and specific products within the
Mucinex® family. These increases were offset partially
by a decrease in sales of existing products of $28 million
(primarily due to price erosion in certain OTC categories) and
discontinued products of $6 million.
The CHC Americas segment achieved fourth quarter 2016 reported
gross profit margin of 33.5%, an increase of 140 bps over the prior
year, and adjusted gross profit margin of 35.5%, an increase of 150
bps over the prior year driven by product mix and supply chain and
manufacturing efficiencies. This increase was offset partially by
price erosion in certain OTC categories as compared to the prior
year.
Reported operating margin decreased 110 bps to 13.3%, which was
impacted by a $27 million goodwill
impairment charge primarily related to the Animal Health business.
Adjusted operating margin increased 270 bps to 22.2% on higher
gross profit and lower selling and administrative
expenses.
Consumer
Healthcare International ("CHCI") Segment
(in
millions)
(see the attached
Tables II & III for reconciliation to GAAP
numbers)
|
|
|
Fourth Quarter
Ended
|
|
Fourth Quarter
Ended
|
|
YoY
|
|
Constant
Currency
|
|
12/31/2016
|
|
12/31/2015
|
|
Change
|
|
%
Change(2)
|
Reported Net
Sales
|
$420
|
|
$434
|
|
(3)%
|
|
3%
|
Reported Gross
Profit
|
$151
|
|
$196
|
|
(23)%
|
|
|
Reported Gross
Margin
|
36.1%
|
|
45.2%
|
|
(910) bps
|
|
|
Reported Operating
Loss
|
$(76)
|
|
$(156)
|
|
NM
|
|
|
Reported Operating
Margin
|
(18.1)%
|
|
(35.8)%
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross
Profit
|
$176
|
|
$208
|
|
(15)%
|
|
|
Adjusted Gross
Margin(1)
|
41.9%
|
|
47.8%
|
|
(590) bps
|
|
|
Adjusted Operating
Income
|
$36
|
|
$53
|
|
(31)%
|
|
|
Adjusted Operating
Margin(1)
|
8.7%
|
|
12.1%
|
|
(340) bps
|
|
|
|
|
(1)
|
Q4 2016 and 2015
adjusted gross margin and operating margin use reported net sales
as the denominator.
|
(2)
|
See table III for
a reconciliation to GAAP.
|
NM = Not
meaningful
|
Reported net sales decreased 3% over the fourth quarter of 2015
due to negative foreign currency movements. Net sales on a constant
currency basis grew 3% in the fourth quarter of 2016. The increase
in net sales on a constant currency basis was due to greater sales
in the Belgium distribution
business than in 2015 and new product sales of $26 million.
These increases were offset partially by a decrease in sales of
existing products of $14 million.
Fourth quarter reported gross margin was 36.1% while adjusted
gross margin was 41.9%. Gross margin was impacted by greater sales
in the lower margin Belgium
distribution business, while foreign currency in the quarter
reduced 2016 adjusted gross profit by approximately $11 million. The Company exited the Belgium distribution business at the end of
the fourth quarter 2016.
Reported operating loss of $76
million was primarily impacted by an impairment charge of
$34 million on Australian
definite-lived intangible assets and restructuring charges of
$10 million. Adjusted operating
income was $36 million due to
relatively lower gross profit dollar contribution and negative
foreign currency movements of more than $5
million compared to the prior year, offset partially by
lower advertising and promotion expenses.
Prescription
Pharmaceuticals ("RX") Segment
(in
millions)
(see the attached
Tables II & III for reconciliation to GAAP
numbers)
|
|
|
Fourth Quarter
Ended
|
|
Fourth Quarter
Ended
|
|
YoY
|
|
Constant
Currency
|
|
12/31/2016
|
|
12/31/2015
|
|
change
|
|
%
Change(2)
|
Reported Net
Sales
|
$266
|
|
$259
|
|
3%
|
|
3%
|
Reported Gross
Profit
|
$121
|
|
$131
|
|
(7)%
|
|
|
Reported Gross
Margin
|
45.5%
|
|
50.5%
|
|
(500) bps
|
|
|
Reported Operating
Income (Loss)
|
$(259)
|
|
$94
|
|
NM
|
|
|
Reported Operating
Margin
|
(97.3)%
|
|
36.4%
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross
Profit
|
$149
|
|
$145
|
|
3%
|
|
|
Adjusted Gross
Margin(1)
|
56.1%
|
|
56.0%
|
|
10 bps
|
|
|
Adjusted Operating
Income
|
$115
|
|
$109
|
|
5%
|
|
|
Adjusted Operating
Margin(1)
|
43.2%
|
|
42.1%
|
|
110 bps
|
|
|
|
|
(1)
|
Q4 2016 and 2015
adjusted gross margin and operating margin use reported net sales
as the denominator.
|
(2)
|
See table III for
a reconciliation to GAAP.
|
NM = Not
meaningful
|
Reported net sales in the fourth quarter of 2016 were
$266 million, an increase of 3%
driven by $29 million related to product acquisitions and new
product sales of $15 million, offset partially by a decrease
in sales of existing products of $37 million due primarily to
price erosion.
Fourth quarter reported gross margin was 45.5%. Reported
operating loss of $259 million was
primarily impacted by a $342 million
impairment charge specifically related to the Entocort®
product. Adjusted gross profit was $149
million, while adjusted gross margin was relatively flat as
the favorable effect of product acquisitions was offset by price
erosion. Adjusted operating margin of 43.2% increased 110 bps
compared to the prior year primarily due to timing of R&D
investments.
Primary Impacts of the Restatement
As outlined in Footnote 1 on the 2016 Form 10-K, there are three
primary impacts due to the restatement.
1) As restated, the Company has accounted for the
Tysabri® royalty stream as a financial asset (rather
than an intangible asset) and has elected to use the fair value
option model. The Company made the election to account for the
Tysabri® financial asset using the fair value option as
it believes this method is most appropriate for an asset that does
not have a par value, a stated interest stream, or a termination
date. This accounting requires the Company to adjust its financial
statements for the restated periods listed in its 2016 Form 10-K to
(1) remove the Tysabri® royalty stream from net
sales in its Consolidated Statements of Operations, (2) remove
the amortization expense (reflected in cost of goods sold)
associated with recording the Tysabri® royalty stream as
an intangible asset, and (3) include the quarterly changes in
fair value of the Tysabri® royalty stream as a component
of other non-operating income/expense. The cash payments the
Company received from the royalty stream are included in its
Statements of Cash Flows for the restated periods and reflect the
cash received from the Tysabri® royalty stream as cash
from investing activities, rather than as cash from operating
activities.
2) In connection with the financial closing for the year ended
December 31, 2016, the Company
identified certain tax basis intangible assets that existed at the
time of the acquisition of Omega on March 30, 2015, which
reduced the deferred tax liabilities in acquired intangible assets
and increased our valuation allowance resulting in a net change to
our deferred taxes of approximately $236 million. The
resulting balance sheet reclassification required a reduction of
goodwill, offset by a corresponding reduction to net deferred tax
liabilities at the date of the Omega acquisition. Further, the
Company has evaluated the accounting effect subsequent to the
acquisition date related to the remeasured deferred tax liability,
including the impairments of Omega goodwill recorded in 2016 and
certain adjustments to valuation allowances, which have been
reflected in the restated financial statements.
3) The Company corrected previously identified adjustments,
which primarily related to certain contracts related to a specific
Belgium distributor that were
consignment in nature due to an option for the distributor to
return the product if it was not sold timely. The
characterization of the contracts as consignment impacted the
timing of revenue recognition in the Consolidated Statement of
Operations and, due to the impact on factoring arrangements,
required a reclassification between accounts receivable and current
liabilities for the amounts factored for these contracts. The total
effect of previously identified adjustments, inclusive of the
Belgium distributor adjustment,
reduced 2016 net sales by approximately $3
million.
Fourth Quarter Change in Tysabri® Royalty Stream Fair
Value and Asset Impairments
Tysabri® Royalty Stream - Change In Fair
Value
The Company is now accounting for the Tysabri®
royalty stream as a financial asset and has elected to use the fair
value option model with changes in fair value presented in Net
income (loss) under the caption Tysabri® royalty stream
- change in fair value. In November
2016, we announced we were evaluating strategic alternatives
for the Tysabri® asset. On March
27, 2017 the Company divested its rights to the
Tysabri® royalty stream to Royalty Pharma for
$2.2 billion in cash and
additional milestone payments of up to $250 million and
$400 million in royalties earned if global net sales of
Tysabri® meet specific thresholds in 2018 and 2020,
respectively. The effects of the announced strategic review
and the sale completed on March 27,
2017 were taken into consideration in recording a
$1.1 billion decrease in the
fair value of the asset during the fourth quarter.
Goodwill Impairment Charges
During the fourth quarter of 2016, the Company identified
indicators of goodwill impairment in the Specialty Sciences
reporting unit related to its decision to review strategic
alternatives for the rights to the Tysabri® royalty
stream. As a result of the impairment indicators, the Company
prepared a goodwill impairment test as of December 31, 2016.
Step one of the goodwill impairment test indicated that the fair
value of the Specialty Sciences reporting unit was below its net
book value. As a result, the Company initiated the second step of
the goodwill impairment test to measure the amount of impairment.
The Company concluded that the goodwill was fully impaired and
recorded an impairment of $200 million in Impairment charges
on the Consolidated Statement of Operations within the Specialty
Sciences segment.
During the fourth quarter of 2016, the Company identified
indicators of goodwill impairment in the Animal Health reporting
unit related to changes in the market and performance of certain
brands. The Company prepared a goodwill impairment test as of
October 2, 2016 as part of its annual
goodwill impairment testing process. Step one of the goodwill
impairment test indicated that the fair value of the Animal Health
reporting unit was below its net book value. As a result, the
Company performed the second step of the goodwill impairment test
to measure the amount of impairment. The Company concluded that
Animal Health goodwill was impaired by $25 million, which was
recorded in Impairment charges on the Consolidated Statement of
Operations within the CHC Americas segment.
Intangible Asset Impairment Charges
During the fourth quarter of 2016, the Company identified
impairment indicators in its Entocort® product assets
which related to the entrance of new market competition and
resulting negative impacts on sales volume and pricing. Utilizing a
multi-period excess earnings method, the Company determined that
the Entocort® product assets were impaired by
$342 million. The impairment was
recorded in Impairment charges on the Consolidated Statement of
Operations within the RX segment.
The Company also identified impairment indicators in certain
definite-lived intangible assets in the CHC International reporting
segment, including trademarks and trade names related to the Herron
products originally acquired through the Aspen acquisition. After determining the
assets were impaired, the Company utilized the relief from royalty
method to quantify the impairment, resulting in a $31 million
impairment. The Company recorded these impairments in Impairment
charges on the Consolidated Statement of Operations within the CHC
International segment.
Guidance
The Company expects 2017 net sales to be in the range
of $4.6 billion to $4.8 billion,
which assumes the cancellation of approximately $210 million of unprofitable distribution
agreements in the CHC International business. The Company expects
calendar year 2017 GAAP diluted EPS to be in the range of
$0.22 to $0.57 (inclusive of income from the sale of
the Tysabri® royalty stream) and adjusted diluted EPS to
be in the range of $4.15 to $4.50, including contributions from API and
excluding the charges outlined in Table IV at the end of this
release.
Annual General Meeting
The Company plans to hold its 2017 annual general meeting of
shareholders on July 20, 2017.
Shareholders of record on May 26,
2017, the record date for the meeting, will be entitled to
vote at the meeting. Qualified stockholder proposals (including
proposals made pursuant to Rule 14a-18 under the Securities
Exchange Act of 1934) to be presented at the Annual Meeting and (if
required pursuant to Rule 14a-8 under such Act) included in the
Company's proxy statement and form of proxy relating to that
meeting must be received by the Company's Secretary at Perrigo
Company plc, Treasury Building, Lower Grand Canal Street,
Dublin 2, Ireland, not later than the close of business
on June 2, 2017. Any proposal must
comply with all applicable requirements, including applicable Irish
law, the rules and regulations promulgated by the United States
Securities and Exchange Commission, and the procedures set forth in
the Company's Memorandum and Articles of Association.
Conference Call
The Company will host a conference call at 8:30 a.m.
ET (5:30 a.m. PT), May 23,
2017. The conference call will be available live via webcast to
interested parties in the investor relations section of the Perrigo
website
at http://perrigo.investorroom.com/events-webcasts or by
phone at 877-248-9413, International 973-582-2737, and reference ID
#23027414. A taped replay of the call will be available beginning
at approximately 11:30 a.m. (ET) Tuesday, May 23, until midnight Tuesday,
June 06, 2017. To listen to the replay, dial 800-585-8367,
International 404-537-3406, and use access code 23027414.
Quiet Period
Perrigo remains in a quiet period until the Company files its
first quarter 2017 Form 10-Q.
About Perrigo
Perrigo Company plc, a leading global healthcare company,
delivers value to its customers and consumers by providing
Quality, Affordable Healthcare Products®. Founded
in 1887 as a packager of home remedies, Perrigo has built a unique
business model that is best described as the convergence of a
fast-moving consumer goods company, a high-quality pharmaceutical
manufacturing organization and a world-class supply chain network.
Perrigo is the world's largest manufacturer of over-the-counter
("OTC") healthcare products and supplier of infant formulas for the
store brand market. The Company also is a leading provider of
branded OTC products throughout Europe and the U.S., as well as a leading
producer of "extended topical" prescription drugs. Perrigo,
headquartered in Ireland, sells
its products primarily in North
America and Europe, as well
as in other markets, including Australia, Israel and China. Visit Perrigo online at
(http://www.perrigo.com).
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements." 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 the negative of those terms 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, including: the timing, amount and cost of any
share repurchases; future impairment charges; customer acceptance
of new products; competition from other industry participants, some
of whom have greater marketing resources or larger market shares in
certain product categories than we do; pricing pressures from
customers and consumers; potential third-party claims and
litigation, including litigation relating to our restatement of
previously-filed financial information; potential impacts of
ongoing or future government investigations and regulatory
initiatives; general economic conditions; fluctuations in currency
exchange rates and interest rates; the consummation of announced
acquisitions or dispositions, and our ability to realize the
desired benefits thereof; our ability to achieve our guidance, and
our ability to execute and achieve the desired benefits of
announced cost-reduction efforts and other initiatives. In
addition, the Company may identify and be unable to remediate one
or more material weaknesses in its internal control over financial
reporting, may encounter unanticipated material issues or
additional adjustments that could delay the filing of required
periodic reports with the United States Securities and Exchange
Commission, or may be unable to regain compliance with the NYSE
continued listing rules. Furthermore, the Company and/or its
subsidiaries may incur additional tax liabilities in respect of
2016 and prior years as a result of any restatement or may be found
to have breached certain provisions of Irish company legislation in
respect of prior financial statements and if so may incur
additional expenses and penalties. These and other important
factors, including those discussed under "Risk Factors" in the
Company's Form 10-K for the year ended December 31, 2016, as well as the Company's
subsequent filings with the United States 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.
Non-GAAP
Measures
This press release contains certain non-GAAP measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
different from the most directly comparable measure calculated and
presented in accordance with U.S. Generally Accepted Accounting
Principles (GAAP) in the statements of operation, balance sheets or
statements of cash flows of the company. Pursuant to the
requirements the U.S. Securities and Exchange Commission, the
Company has provided reconciliations for net sales on a constant
currency basis, net sales excluding sales attributable to
held-for-sale businesses, adjusted gross profit, adjusted operating
income, adjusted net income, adjusted diluted earnings per share,
adjusted gross margin, and adjusted operating margin within this
press release to the most directly comparable U.S. GAAP measures
for these non-GAAP measures. These non-GAAP financial measures
should be considered as supplements to the GAAP reported measures,
should not be considered replacements for, or superior to the GAAP
measures and may not be comparable to similarly named measures used
by other companies.
The Company provides non-GAAP financial measures as additional
information that it believes is useful to investors and analysts in
evaluating the performance of the Company's ongoing operating
trends, facilitating comparability between periods and companies in
similar industries and assessing the Company's prospects for future
performance. These non-GAAP financial measures exclude items, such
as impairment charges, restructuring charges, and acquisition and
integration-related charges, that by their nature affect
comparability of operational performance or that we believe may
obscure underlying business operational trends. The non-GAAP
measures the Company provides are consistent with how management
analyzes and assesses the operating performance of the Company, and
disclosing them provides investor insight into management's view of
the business. Management uses these adjusted financial measures for
planning and forecasting in future periods, and evaluating segment
and overall operating performance. In addition, management uses
certain of the profit measures as factors in determining
compensation.
Non-GAAP measures related to profit measurements, which include
adjusted gross profit, adjusted operating income, adjusted net
income, adjusted diluted earnings per share, adjusted gross margin,
adjusted operating margin and adjusted diluted shares outstanding
are useful to investors as they provide them with supplemental
information to enhance their understanding of the Company's
underlying business performance and trends, and enhance the ability
of investors and analysts to compare the Company's period-to-period
financial results. Management believes that adjusted gross margin
and adjusted operating margin are useful to investors, in addition
to the reasons discussed above, by allowing them to more easily
compare and analyze trends in the Company's peer business group and
assisting them in comparing the Company's overall performance to
that of its competitors. The Company discloses adjusted net sales,
which excludes operating results attributable to held-for-sale
businesses, in order to provide information about sales of the
Company's continuing business. In addition, the Company discloses
net sales growth and adjusted net sales growth on a constant
currency basis to provide information about sales of the Company's
continuing business excluding the exogenous impact of foreign
exchange. The Company believes these supplemental financial
measures provide investors with consistency in financial reporting,
enabling meaningful comparisons of past, present and future
underlying operating results, and also facilitate comparison of the
Company's operating performance to the operating performance of its
competitors.
A copy of this press release, including the reconciliations, is
available on the Company's website at www.perrigo.com.
PERRIGO COMPANY
PLC
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions, except
per share amounts)
|
|
|
Year
Ended
|
|
Six Months
Ended
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
June 27,
2015
|
|
June 28,
2014
|
|
|
Restated
|
|
Restated
|
|
Restated
|
Net sales
|
$
|
5,280.6
|
|
|
$
|
2,632.2
|
|
|
$
|
4,227.1
|
|
|
$
|
3,914.1
|
|
Cost of
sales
|
3,228.8
|
|
|
1,553.3
|
|
|
2,582.9
|
|
|
2,462.0
|
|
Gross
profit
|
2,051.8
|
|
|
1,078.9
|
|
|
1,644.2
|
|
|
1,452.1
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Distribution
|
88.3
|
|
|
47.9
|
|
|
67.7
|
|
|
55.3
|
|
Research and
development
|
184.0
|
|
|
88.2
|
|
|
187.8
|
|
|
152.5
|
|
Selling
|
665.0
|
|
|
325.9
|
|
|
319.0
|
|
|
208.6
|
|
Administration
|
452.2
|
|
|
306.8
|
|
|
385.3
|
|
|
411.3
|
|
Impairment
charges
|
2,631.0
|
|
|
215.6
|
|
|
6.8
|
|
|
6.0
|
|
Restructuring
|
31.0
|
|
|
26.9
|
|
|
5.1
|
|
|
47.0
|
|
Total operating
expenses
|
4,051.5
|
|
|
1,011.3
|
|
|
971.7
|
|
|
880.7
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(1,999.7)
|
|
|
67.6
|
|
|
672.5
|
|
|
571.4
|
|
|
|
|
|
|
|
|
|
Tysabri®
royalty stream - change in fair value
|
2,608.2
|
|
|
(57.3)
|
|
|
(78.5)
|
|
|
(26.6)
|
|
Interest expense,
net
|
216.6
|
|
|
89.9
|
|
|
146.0
|
|
|
103.5
|
|
Other expense,
net
|
22.7
|
|
|
25.2
|
|
|
334.2
|
|
|
25.1
|
|
Loss on
extinguishment of debt
|
1.1
|
|
|
0.9
|
|
|
10.5
|
|
|
165.8
|
|
Income (loss) before
income taxes
|
(4,848.3)
|
|
|
8.9
|
|
|
260.3
|
|
|
303.6
|
|
Income tax expense
(benefit)
|
(835.5)
|
|
|
(33.6)
|
|
|
124.2
|
|
|
70.8
|
|
Net income
(loss)
|
$
|
(4,012.8)
|
|
|
$
|
42.5
|
|
|
$
|
136.1
|
|
|
$
|
232.8
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
(28.01)
|
|
|
$
|
0.29
|
|
|
$
|
0.97
|
|
|
$
|
2.02
|
|
Diluted
|
$
|
(28.01)
|
|
|
$
|
0.29
|
|
|
$
|
0.97
|
|
|
$
|
2.01
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
143.3
|
|
|
145.6
|
|
|
139.3
|
|
|
115.1
|
|
Diluted
|
143.3
|
|
|
146.1
|
|
|
139.8
|
|
|
115.6
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.58
|
|
|
$
|
0.25
|
|
|
$
|
0.46
|
|
|
$
|
0.39
|
|
PERRIGO COMPANY
PLC
CONSOLIDATED
BALANCE SHEETS
(in
millions)
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
June 27,
2015
|
|
|
Restated
|
|
Restated
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
622.3
|
|
|
$
|
417.8
|
|
|
$
|
785.6
|
|
Accounts receivable,
net of allowance for doubtful accounts of $6.3
million, $4.5 million, and $2.6 million, respectively
|
1,176.0
|
|
|
1,189.0
|
|
|
1,209.4
|
|
Inventories
|
795.0
|
|
|
898.7
|
|
|
935.7
|
|
Current deferred
income taxes
|
—
|
|
|
—
|
|
|
148.2
|
|
Prepaid expenses and
other current assets
|
212.0
|
|
|
286.1
|
|
|
150.1
|
|
Total current
assets
|
2,805.3
|
|
|
2,791.6
|
|
|
3,229.0
|
|
Property, plant and
equipment, net
|
870.1
|
|
|
886.2
|
|
|
932.4
|
|
Tysabri®
royalty stream - at fair value
|
2,350.0
|
|
|
5,310.0
|
|
|
5,420.0
|
|
Goodwill and other
indefinite-lived intangible assets
|
4,163.9
|
|
|
7,069.0
|
|
|
6,984.3
|
|
Other intangible
assets, net
|
3,396.8
|
|
|
2,973.1
|
|
|
2,742.8
|
|
Non-current deferred
income taxes
|
72.1
|
|
|
71.4
|
|
|
50.1
|
|
Other non-current
assets
|
211.9
|
|
|
248.3
|
|
|
233.3
|
|
Total non-current
assets
|
11,064.8
|
|
|
16,558.0
|
|
|
16,362.9
|
|
Total
assets
|
$
|
13,870.1
|
|
|
$
|
19,349.6
|
|
|
$
|
19,591.9
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
471.7
|
|
|
$
|
555.8
|
|
|
$
|
709.3
|
|
Payroll and related
taxes
|
115.8
|
|
|
125.3
|
|
|
133.9
|
|
Accrued customer
programs
|
380.3
|
|
|
396.0
|
|
|
358.5
|
|
Accrued
liabilities
|
263.3
|
|
|
351.9
|
|
|
257.5
|
|
Accrued income
taxes
|
32.4
|
|
|
62.7
|
|
|
56.3
|
|
Current deferred
income taxes
|
—
|
|
|
—
|
|
|
79.7
|
|
Current
indebtedness
|
572.8
|
|
|
1,060.5
|
|
|
153.3
|
|
Total current
liabilities
|
1,836.3
|
|
|
2,552.2
|
|
|
1,748.5
|
|
Long-term debt, less
current portion
|
5,224.5
|
|
|
4,971.6
|
|
|
5,246.9
|
|
Non-current deferred
income taxes
|
389.9
|
|
|
1,372.7
|
|
|
1,514.3
|
|
Other non-current
liabilities
|
461.8
|
|
|
346.3
|
|
|
382.7
|
|
Total non-current
liabilities
|
6,076.2
|
|
|
6,690.6
|
|
|
7,143.9
|
|
Total
liabilities
|
7,912.5
|
|
|
9,242.8
|
|
|
8,892.4
|
|
Shareholders'
equity
|
|
|
|
|
|
Controlling
interest:
|
|
|
|
|
|
Preferred shares,
$0.0001 par value, 10 million shares authorized
|
—
|
|
|
—
|
|
|
—
|
|
Ordinary shares,
€0.001 par value, 10 billion shares authorized
|
8,135.0
|
|
|
8,142.6
|
|
|
8,621.9
|
|
Accumulated other
comprehensive income (loss)
|
(81.8)
|
|
|
(15.3)
|
|
|
103.5
|
|
Retained earnings
(accumulated deficit)
|
(2,095.1)
|
|
|
1,980.1
|
|
|
1,973.9
|
|
Total controlling
interest
|
5,958.1
|
|
|
10,107.4
|
|
|
10,699.3
|
|
Noncontrolling
interest
|
(0.5)
|
|
|
(0.6)
|
|
|
0.2
|
|
Total shareholders'
equity
|
5,957.6
|
|
|
10,106.8
|
|
|
10,699.5
|
|
Total liabilities and
shareholders' equity
|
$
|
13,870.1
|
|
|
$
|
19,349.6
|
|
|
$
|
19,591.9
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Balance Sheet Information
|
|
|
|
|
|
Preferred shares,
issued and outstanding
|
—
|
|
|
—
|
|
|
—
|
|
Ordinary shares,
issued and outstanding
|
143.4
|
|
|
143.1
|
|
|
146.3
|
|
PERRIGO COMPANY
PLC
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
millions)
|
|
|
Year
Ended
|
|
Six Months
Ended
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
June 27,
2015
|
|
June 28,
2014
|
|
|
Restated
|
|
Restated
|
|
Restated
|
Cash Flows From
(For) Operating Activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(4,012.8)
|
|
|
$
|
42.5
|
|
|
$
|
136.1
|
|
|
$
|
232.8
|
|
Adjustments to derive
cash flows
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
457.0
|
|
|
182.4
|
|
|
258.7
|
|
|
206.1
|
|
Loss on
acquisition-related foreign currency derivatives
|
—
|
|
|
—
|
|
|
326.4
|
|
|
—
|
|
Share-based
compensation
|
23.0
|
|
|
22.8
|
|
|
31.6
|
|
|
24.6
|
|
Impairment
charges
|
2,631.0
|
|
|
215.6
|
|
|
6.8
|
|
|
6.0
|
|
Tysabri®
royalty stream - change in fair value
|
2,608.2
|
|
|
(57.3)
|
|
|
(78.5)
|
|
|
(26.6)
|
|
Loss on
extinguishment of debt
|
1.1
|
|
|
0.9
|
|
|
10.5
|
|
|
165.8
|
|
Restructuring
charges
|
31.0
|
|
|
26.9
|
|
|
5.1
|
|
|
47.0
|
|
Deferred income
taxes
|
(990.9)
|
|
|
(120.0)
|
|
|
(16.3)
|
|
|
(49.7)
|
|
Amortization of
financing fees and debt discount (premium)
|
(24.7)
|
|
|
(10.2)
|
|
|
0.2
|
|
|
2.0
|
|
Other non-cash
adjustments
|
33.5
|
|
|
18.1
|
|
|
10.2
|
|
|
4.5
|
|
Subtotal
|
756.4
|
|
|
321.7
|
|
|
690.8
|
|
|
612.5
|
|
Increase (decrease)
in cash due to:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(0.6)
|
|
|
52.5
|
|
|
(51.1)
|
|
|
(140.5)
|
|
Inventories
|
100.7
|
|
|
(29.6)
|
|
|
(11.4)
|
|
|
84.7
|
|
Accounts
payable
|
(75.7)
|
|
|
(194.1)
|
|
|
120.5
|
|
|
(24.9)
|
|
Payroll and related
taxes
|
(41.1)
|
|
|
(38.2)
|
|
|
(30.2)
|
|
|
(55.5)
|
|
Accrued customer
programs
|
(13.9)
|
|
|
34.4
|
|
|
71.3
|
|
|
113.1
|
|
Accrued
liabilities
|
(79.5)
|
|
|
108.1
|
|
|
42.8
|
|
|
23.0
|
|
Accrued income
taxes
|
20.9
|
|
|
(56.8)
|
|
|
21.9
|
|
|
(11.3)
|
|
Other
|
(12.3)
|
|
|
3.0
|
|
|
0.6
|
|
|
31.9
|
|
Subtotal
|
(101.5)
|
|
|
(120.7)
|
|
|
164.4
|
|
|
20.5
|
|
Net cash from (for)
operating activities
|
654.9
|
|
|
201.0
|
|
|
855.2
|
|
|
633.0
|
|
Cash Flows From
(For) Investing Activities
|
|
|
|
|
|
|
|
Proceeds from royalty
rights
|
353.7
|
|
|
166.3
|
|
|
344.6
|
|
|
60.5
|
|
Acquisitions of
businesses, net of cash acquired
|
(427.4)
|
|
|
(791.6)
|
|
|
(2,177.8)
|
|
|
(1,605.8)
|
|
Asset
acquisitions
|
(65.1)
|
|
|
—
|
|
|
(4.0)
|
|
|
—
|
|
Settlement of
acquisition-related foreign currency derivatives
|
—
|
|
|
(1.3)
|
|
|
(329.9)
|
|
|
—
|
|
Proceeds from sale of
securities
|
4.5
|
|
|
—
|
|
|
—
|
|
|
81.4
|
|
Additions to
property, plant and equipment
|
(106.2)
|
|
|
(77.8)
|
|
|
(137.0)
|
|
|
(171.6)
|
|
Proceeds from sale of
business
|
69.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
investing
|
(3.6)
|
|
|
(3.7)
|
|
|
1.8
|
|
|
(8.8)
|
|
Net cash from (for)
investing activities
|
(175.0)
|
|
|
(708.1)
|
|
|
(2,302.3)
|
|
|
(1,644.3)
|
|
Cash Flows From
(For) Financing Activities
|
|
|
|
|
|
|
|
Borrowings
(repayments) of revolving credit agreements and
other financing, net
|
(802.5)
|
|
|
718.0
|
|
|
(54.0)
|
|
|
(3.0)
|
|
Issuances of
long-term debt
|
1,190.3
|
|
|
—
|
|
|
2,504.3
|
|
|
3,293.6
|
|
Payments on long-term
debt
|
(559.2)
|
|
|
(28.3)
|
|
|
(1,823.5)
|
|
|
(2,035.0)
|
|
Premium on early debt
retirement
|
(0.6)
|
|
|
—
|
|
|
—
|
|
|
(133.5)
|
|
Deferred financing
fees
|
(2.8)
|
|
|
(0.3)
|
|
|
(28.1)
|
|
|
(48.8)
|
|
Issuance of ordinary
shares
|
8.3
|
|
|
4.9
|
|
|
1,043.5
|
|
|
9.8
|
|
Equity issuance
costs
|
(10.3)
|
|
|
—
|
|
|
(35.7)
|
|
|
—
|
|
Repurchase of
ordinary shares
|
—
|
|
|
(500.0)
|
|
|
—
|
|
|
—
|
|
Cash
dividends
|
(83.2)
|
|
|
(36.3)
|
|
|
(64.8)
|
|
|
(46.1)
|
|
Other
financing
|
(8.7)
|
|
|
(8.4)
|
|
|
(19.3)
|
|
|
(9.0)
|
|
Net cash from (for)
financing activities
|
(268.7)
|
|
|
149.6
|
|
|
1,522.4
|
|
|
1,028.0
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(6.7)
|
|
|
(10.2)
|
|
|
(89.2)
|
|
|
2.9
|
|
Net increase
(decrease) in cash and cash equivalents
|
204.5
|
|
|
(367.7)
|
|
|
(13.9)
|
|
|
19.6
|
|
Cash and cash
equivalents, beginning of period
|
417.8
|
|
|
785.6
|
|
|
799.5
|
|
|
779.9
|
|
Cash and cash
equivalents, end of period
|
$
|
622.3
|
|
|
$
|
417.9
|
|
|
$
|
785.6
|
|
|
$
|
799.5
|
|
|
Year
Ended
|
|
Six Months
Ended
|
|
Year
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
June 27,
2015
|
|
June 28,
2014
|
Supplemental
Disclosures of Cash Flow Information
|
|
|
|
|
|
|
|
Cash paid/received
during the year for:
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
205.1
|
|
|
$
|
84.2
|
|
|
$
|
143.2
|
|
|
$
|
98.4
|
|
Interest
received
|
$
|
1.2
|
|
|
$
|
0.7
|
|
|
$
|
1.1
|
|
|
$
|
2.4
|
|
Income taxes
paid
|
$
|
139.5
|
|
|
$
|
87.8
|
|
|
$
|
131.0
|
|
|
$
|
93.2
|
|
Income taxes
refunded
|
$
|
9.3
|
|
|
$
|
1.7
|
|
|
$
|
9.6
|
|
|
$
|
4.3
|
|
TABLE
I
|
|
|
PERRIGO COMPANY
PLC
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
(in millions, except
per share amounts)
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
2016
|
Consolidated
|
Net Income
(Loss)
|
Diluted
Earnings
(Loss) per Share
|
Reported
|
$
|
(1,359.1)
|
|
$
|
(9.48)
|
|
Adjustments:
|
|
|
Tysabri®
royalty stream - change in fair value
|
$
|
1,115.6
|
|
$
|
7.78
|
|
Impairment
charges
|
600.5
|
|
4.18
|
|
Amortization expense
related primarily to acquired intangible assets
|
94.9
|
|
0.67
|
|
Unusual
litigation
|
18.4
|
|
0.13
|
|
Restructuring
charges
|
13.1
|
|
0.09
|
|
Operating results
attributable to held-for-sale businesses*
|
11.5
|
|
0.08
|
|
Acquisition and
integration-related charges
|
3.3
|
|
0.02
|
|
Gain on
divestitures
|
(7.8)
|
|
(0.05)
|
|
Non-GAAP tax
adjustments***
|
(312.9)
|
|
(2.18)
|
|
Adjusted
|
$
|
177.5
|
|
$
|
1.24
|
|
As a % of adjusted
net sales
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
Reported
|
|
143.4
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income**
|
|
0.2
|
|
Adjusted
|
|
143.6
|
|
|
|
|
*Held-for-sale
businesses include the European sports brand and the India API
business.
|
**In the period of a
net loss, diluted shares outstanding equal basic shares
outstanding.
|
*** The non-GAAP tax
adjustment includes the following: (1) $(187.1) million of tax
effects of pretax non-GAAP
adjustments that are calculated based upon the specific rate of the
applicable jurisdiction of the pretax item; (2) a
$20.6 million effect on non-GAAP income taxes related to the
interim tax accounting requirements within ASC 740,
Income Taxes; and (3) Discrete income tax adjustments of $(26.9)
million related to jurisdictional tax rate changes in
France & Italy, $102.6 million net impact of valuation
allowances on deferred tax assets commensurate with non-
GAAP pre-tax measures and $(222.1) million valuation allowance
release due to the sales of Tysabri. The GAAP tax
benefit recorded in the current quarter related to these items has
been excluded from non-GAAP net income.
|
TABLE I
(CONTINUED)
|
|
|
PERRIGO COMPANY
PLC
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
(in millions, except
per share amounts)
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
2015
|
Consolidated
|
Net Income
(Loss)
|
Diluted
Earnings
(Loss) per Share
|
Reported
|
$
|
(218.4)
|
|
$
|
(1.51)
|
|
Adjustments:
|
|
|
Impairment
charges
|
$
|
226.3
|
|
$
|
1.56
|
|
Tysabri®
royalty stream - change in fair value
|
116.6
|
|
0.80
|
|
Legal and consulting
fees related to Mylan defense
|
71.3
|
|
0.49
|
|
Amortization expense
related primarily to acquired intangible assets
|
54.9
|
|
0.38
|
|
Restructuring
charges
|
24.7
|
|
0.17
|
|
Acquisition and
integration-related charges
|
9.3
|
|
0.06
|
|
Losses on equity
method investments
|
2.7
|
|
0.02
|
|
Loss on early debt
extinguishment
|
0.9
|
|
0.01
|
|
Unusual
litigation
|
(1.7)
|
|
(0.01)
|
|
Non-GAAP tax
adjustments***
|
(84.2)
|
|
(0.58)
|
|
Adjusted
|
$
|
202.4
|
|
$
|
1.39
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
Reported
|
|
144.9
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income**.
|
|
0.5
|
|
Adjusted
|
|
145.4
|
|
|
|
|
2015 QTD Net Sales
excluding the U.S. VMS business and the European sports
brand
|
Net
Sales
|
|
Reported
|
$
|
1,359.1
|
|
|
Operating results
attributable to held-for-sale businesses*
|
(44.5)
|
|
|
Adjusted
|
$
|
1,314.6
|
|
|
|
|
|
*Held-for-sale
businesses include the the U.S. VMS business and European sports
brand.
|
|
|
**In the period of a
net loss, diluted shares outstanding equal basic shares
outstanding.
|
*** The non-GAAP tax
adjustment includes the following: (1) $(91.4) million of tax
effects of pretax non-GAAP
adjustments that are calculated based upon the specific rate of the
applicable jurisdiction of the pretax item; (2) a
$0.4 million effect on non-GAAP income taxes related to the interim
tax accounting requirements within ASC 740,
Income Taxes; and (3) $6.8 million discrete income tax adjustments
related to debt restructuring for the acquisition
of Omega. The GAAP tax benefit recorded in the current quarter
related to these items has been excluded from
non-GAAP net income.
|
TABLE I
(CONTINUED)
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
|
|
(in millions, except
per share amounts)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2016
|
Consolidated
|
Net
Sales
|
Operating
Income (Loss)
|
Net Income
(Loss)
|
Diluted
Earnings
(Loss) per Share
|
Reported
|
$
|
5,280.6
|
|
$
|
(1,999.7)
|
|
$
|
(4,012.8)
|
|
$
|
(28.01)
|
|
Adjustments:
|
|
|
|
|
Impairment
charges
|
$
|
—
|
|
$
|
2,631.0
|
|
$
|
2,653.4
|
|
$
|
18.48
|
|
Tysabri®
royalty stream - change in fair value
|
—
|
|
—
|
|
2,608.2
|
|
18.16
|
|
Amortization expense
related primarily to acquired intangible assets
|
—
|
|
363.9
|
|
363.9
|
|
2.59
|
|
Restructuring
charges
|
—
|
|
31.0
|
|
31.0
|
|
0.22
|
|
Acquisition and
integration-related charges
|
—
|
|
24.3
|
|
25.4
|
|
0.18
|
|
Unusual
litigation
|
—
|
|
18.4
|
|
18.4
|
|
0.13
|
|
Operating results
attributable to held-for-sale businesses*
|
(112.8)
|
|
15.3
|
|
15.3
|
|
0.11
|
|
Losses on equity
method investments
|
—
|
|
—
|
|
4.2
|
|
0.03
|
|
Gain on
divestitures
|
—
|
|
—
|
|
(7.7)
|
|
(0.05)
|
|
Non-GAAP tax
adjustments***
|
—
|
|
—
|
|
(971.3)
|
|
(6.77)
|
|
Adjusted
|
$
|
5,167.8
|
|
$
|
1,084.2
|
|
$
|
728.0
|
|
$
|
5.07
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
|
Reported
|
|
|
|
143.3
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income**
|
|
|
|
0.3
|
|
Adjusted
|
|
|
|
143.6
|
|
|
|
|
|
|
*Held-for-sale
businesses include the U.S. VMS business, European sports brand,
and India API business
|
|
|
**In the period of a
net loss, diluted shares outstanding equal basic shares
outstanding.
|
***The non-GAAP tax
adjustment includes the following: (1) $(802.5) million of tax
effects of pretax non-GAAP adjustments that are
calculated based upon the specific rate of the applicable
jurisdiction of the pretax item; and (2) Discrete income tax
adjustments of: $(49.3)
million related to jurisdictional tax rate changes in Italy, UK,
Germany & France, $102.6 million net impact of valuation
allowances on deferred
tax assets commensurate with non-GAAP pre-tax measures, and
$(222.1) million valuation allowance release due to the sale of
Tysabri.
The GAAP tax benefit recorded in the current quarter related to
these items has been excluded from non-GAAP net income.
|
TABLE I
(CONTINUED)
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
|
(in millions, except
per share amounts)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2015
|
Consolidated
|
Operating
Income
|
Net Income
(Loss)
|
Diluted
Earnings
(Loss) per Share
|
Reported
|
$
|
450.4
|
|
$
|
(1.9)
|
|
$
|
(0.01)
|
|
Adjustments:
|
|
|
|
Losses on
acquisition-related foreign currency hedges
|
$
|
—
|
|
$
|
268.5
|
|
$
|
1.87
|
|
Amortization expense
related primarily to acquired intangible assets
|
251.7
|
|
251.7
|
|
1.76
|
|
Impairment
charges
|
222.8
|
|
235.3
|
|
1.64
|
|
Legal and consulting
fees related to Mylan defense
|
100.3
|
|
100.3
|
|
0.70
|
|
Acquisition and
integration-related charges
|
35.2
|
|
35.7
|
|
0.25
|
|
Restructuring
charges
|
28.2
|
|
28.2
|
|
0.20
|
|
Loss on debt
extinguishment
|
—
|
|
20.5
|
|
0.14
|
|
Initial payment made
in connection with an R&D arrangement
|
18.0
|
|
18.0
|
|
0.13
|
|
Losses on equity
method investments
|
—
|
|
10.7
|
|
0.07
|
|
Unusual
litigation
|
0.3
|
|
0.3
|
|
—
|
|
Tysabri®
royalty stream - change in fair value
|
|
(88.8)
|
|
(0.62)
|
|
Non-GAAP tax
adjustments***
|
—
|
|
(79.6)
|
|
(0.56)
|
|
Adjusted
|
$
|
1,106.9
|
|
$
|
798.9
|
|
$
|
5.57
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
Reported
|
|
|
144.6
|
|
Weighted average
effect of 6.8 million shares issued on November 26, 2014 to finance
the Omega acquisition, which closed on March 30, 2015.
In addition, effect of dilution as reported amount was a loss,
while adjusted amount was income**.
|
(1.2)
|
|
Adjusted
|
|
|
143.4
|
|
|
|
|
|
2015 YTD Net Sales
excluding the U.S. VMS business and the European sports
brand
|
|
Net
Sales
|
|
Reported
|
|
$
|
5,014.7
|
|
|
Operating results
attributable to held-for-sale businesses*
|
|
(162.6)
|
|
|
Adjusted
|
|
$
|
4,852.1
|
|
|
|
|
|
*Held-for-sale
businesses include the U.S. VMS business and the European sports
brand.
|
**In the period of a
net loss, diluted shares outstanding equal basic shares
outstanding.
|
|
|
|
*** The non-GAAP tax
adjustment includes the following: (1) $(135.5) million of tax
effects of pretax non-GAAP adjustments that are calculated
based upon the specific rate of the applicable jurisdiction of the
pretax item; (2) a $2.5 million effect on non-GAAP income taxes
related to the
interim tax accounting requirements within ASC 740, Income Taxes;
and (3) $53.4 million of discrete income tax adjustments related to
debt restructuring
for the acquisition of Omega. The GAAP tax benefit recorded in the
current quarter related to these items has been excluded from
non-GAAP net income.
|
TABLE
II
|
|
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
SELECTED SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
Consumer
Healthcare Americas
|
Net
Sales
|
Gross
Profit
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
Operating
Income
|
|
Reported
|
$
|
626.8
|
|
$
|
210.0
|
|
$
|
83.3
|
|
|
$
|
643.2
|
|
$
|
206.2
|
|
$
|
92.8
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
12.6
|
|
17.7
|
|
|
|
12.2
|
|
17.9
|
|
|
Unusual
litigation
|
|
—
|
|
10.2
|
|
|
|
—
|
|
0.3
|
|
|
Impairment
charges
|
|
—
|
|
27.1
|
|
|
|
—
|
|
1.5
|
|
|
Restructuring
charges
|
|
—
|
|
(0.1)
|
|
|
|
—
|
|
12.8
|
|
|
Acquisition and
integration-related charges
|
|
—
|
|
1.2
|
|
|
|
—
|
|
—
|
|
|
Adjusted
|
|
$
|
222.6
|
|
$
|
139.4
|
|
|
|
$
|
218.4
|
|
$
|
125.3
|
|
|
As a % of reported
net sales
|
|
35.5
|
%
|
22.2
|
%
|
|
|
34.0
|
%
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
For Comparative
Purposes*
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
|
$
|
643.2
|
|
|
|
|
Operating results
attributable to held-for-sale businesses*
|
|
|
|
|
(44.3)
|
|
|
|
|
Adjusted
|
|
|
|
|
$
|
598.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Q4 2015 net sales
adjustment made for comparison purposes only and does not change
any other prior year financial information or metrics since the
U.S. VMS business was not held-for-sale
in 2015. Q4 2015 gross margin and operating margin use reported net
sales as the denominator.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE II
(CONTINUED)
|
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
SELECTED SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Consumer
Healthcare International
|
Net
Sales
|
Gross
Profit
|
Operating
Income (Loss)
|
|
Net
Sales
|
Gross
Profit
|
Operating
Income
|
Reported
|
$
|
419.5
|
|
$
|
151.3
|
|
$
|
(76.1)
|
|
|
$
|
434.3
|
|
$
|
196.3
|
|
$
|
(155.5)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
20.8
|
|
48.4
|
|
|
|
11.4
|
|
23.0
|
|
Impairment
charges
|
|
—
|
|
34.1
|
|
|
|
—
|
|
185.1
|
|
Unusual
litigation
|
|
—
|
|
8.2
|
|
|
|
—
|
|
—
|
|
Operating results
attributable to held-for-sale business*
|
|
3.6
|
|
10.3
|
|
|
|
—
|
|
—
|
|
Restructuring
charges
|
|
—
|
|
10.5
|
|
|
|
—
|
|
0.2
|
|
Acquisition and
integration-related charges
|
|
—
|
|
1.0
|
|
|
|
—
|
|
(0.2)
|
|
Adjusted
|
|
$
|
175.7
|
|
$
|
36.4
|
|
|
|
$
|
207.7
|
|
$
|
52.6
|
|
As a % of reported
net sales
|
|
41.9
|
%
|
8.7
|
%
|
|
|
47.8
|
%
|
12.1
|
%
|
|
|
|
|
|
|
|
|
*Held-for-sale
businesses include the European sports brand.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Prescription
Pharmaceuticals
|
Net
Sales
|
Gross
Profit
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
Operating
Income
|
Reported
|
$
|
265.9
|
|
$
|
121.0
|
|
$
|
(258.5)
|
|
|
$
|
259.1
|
|
$
|
130.8
|
|
$
|
94.3
|
|
Adjustments:
|
|
|
|
|
|
|
|
Amortization expense
related to acquired intangible assets
|
|
28.0
|
|
28.1
|
|
|
|
14.2
|
|
14.3
|
|
Unusual
litigation
|
|
—
|
|
—
|
|
|
|
—
|
|
(2.0)
|
|
Restructuring
charges
|
|
—
|
|
2.1
|
|
|
|
—
|
|
2.6
|
|
Impairment
charges
|
|
—
|
|
342.4
|
|
|
|
—
|
|
—
|
|
Acquisition and
integration-related charges
|
|
—
|
|
0.9
|
|
|
|
—
|
|
—
|
|
Adjusted
|
|
$
|
149.0
|
|
$
|
115.0
|
|
|
|
$
|
145.0
|
|
$
|
109.2
|
|
As a % of reported
net sales
|
|
56.1
|
%
|
43.2
|
%
|
|
|
56.0
|
%
|
42.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE
III
|
|
|
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
|
CONSTANT
CURRENCY
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
Net
sales
|
December 31,
2016
|
|
December 31,
2015
|
|
Total
Change
|
|
FX
Change
|
|
Constant
Currency
Change
|
Consolidated*
|
$
|
1,331.2
|
|
|
$
|
1,314.6
|
|
|
1%
|
|
(3)%
|
|
4%
|
CHCA*
|
626.8
|
|
|
598.9
|
|
|
5%
|
|
—%
|
|
5%
|
CHCI
|
419.5
|
|
|
434.1
|
|
|
(3)%
|
|
(6)%
|
|
3%
|
RX
|
265.9
|
|
|
259.1
|
|
|
3%
|
|
—%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
Net
sales
|
December 31,
2016
|
|
December 31,
2015
|
|
Total
Change
|
|
FX
Change
|
|
Constant
Currency
Change
|
Consolidated*
|
$
|
5,167.8
|
|
|
$
|
4,852.1
|
|
|
7%
|
|
(1)%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
*Q4 2015, full year
2015, and full year 2016 net sales are adjusted to exclude sales
attributable to held-for-sale businesses. See Tables I and II
for
non-GAAP reconciliations.
|
TABLE
IV
|
PERRIGO COMPANY
PLC
|
RECONCILIATION OF
NON-GAAP MEASURES
|
2017
GUIDANCE
|
(in millions, except
per share amounts)
|
(unaudited)
|
|
|
|
Full
Year
|
|
|
|
|
2017 EPS
Guidance
|
|
|
|
Reported
|
$0.22 -
$0.57
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
2.40
|
|
|
|
Sale of
Tysabri® royalty stream
|
(0.03) (2)
|
|
|
|
Restructuring
charges
|
0.28
|
|
|
|
Loss on early debt
extinguishment
|
0.12
|
|
|
|
Tax effect of
non-GAAP adjustments (1)
|
1.16
|
|
|
|
Adjusted
|
$4.15 -
$4.50
|
|
|
|
|
|
|
|
(1)
|
Includes tax effect
of pretax non-GAAP adjustments calculated based upon the specific
rate of the
applicable jurisdiction of the pretax item and certain adjustments
for discrete tax items.
|
|
|
|
(2)
|
Subject to the
finalization of the gain/loss on the sale of Tysabri®
|
|
|
TABLE
V
|
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
|
Total
Change
|
|
December 31,
2016
|
|
December 31,
2015
|
|
Total
Change
|
Adjusted net
income
|
$
|
177.5
|
|
|
$
|
202.4
|
|
|
(12)
|
%
|
|
$
|
728.0
|
|
|
$
|
798.9
|
|
|
(9)
|
%
|
Adjusted earnings
per share
|
$1.24
|
|
|
$1.39
|
|
|
(11)
|
%
|
|
$5.07
|
|
|
$5.57
|
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
CHCA
|
$
|
222.6
|
|
|
$
|
218.4
|
|
|
2
|
%
|
|
|
|
|
|
|
CHCI
|
$
|
175.7
|
|
|
$
|
207.7
|
|
|
(15)
|
%
|
|
|
|
|
|
|
RX
|
$
|
149.0
|
|
|
$
|
145.0
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
|
|
|
|
|
|
|
|
|
|
CHCA
|
$
|
139.4
|
|
|
$
|
125.3
|
|
|
11
|
%
|
|
|
|
|
|
|
CHCI
|
$
|
36.4
|
|
|
$
|
52.6
|
|
|
(31)
|
%
|
|
|
|
|
|
|
RX
|
$
|
115.0
|
|
|
$
|
109.2
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE
VI
|
|
|
PERRIGO COMPANY
PLC
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
REVISED 2016 EPS
GUIDANCE
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Full
Year
|
|
|
|
Revised 2016
EPS
Guidance
|
|
|
Reported
|
$(28.38) -
$(28.08)
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
2.59
|
|
|
Operating results
attributable to held-for-sale businesses (1)
|
0.11
|
|
|
Impairment
charges
|
18.48
|
|
|
Restructuring
charges
|
0.22
|
|
|
Tysabri®
royalty stream - change in fair value
|
18.16
|
|
|
Gain on
divestitures
|
(0.05)
|
|
|
Acquisition and
integration-related charges
|
0.18
|
|
|
Unusual
litigation
|
0.13
|
|
|
Losses on equity
method investments
|
0.03
|
|
|
Tax effect of
non-GAAP adjustments (2)
|
(6.77)
|
|
|
Adjusted
|
$4.70 -
$5.00
|
|
|
|
|
|
|
|
Full
Year
|
|
|
(in
billions)
|
Revised 2016
Net
Sales Guidance
|
|
|
Consolidated Net
Sales
|
|
|
|
Reported
|
$5.1 -
$5.3
|
|
|
Operating results
attributable to held-for-sale businesses (1)
|
(0.1)
|
|
|
Adjusted
|
$5.0 -
$5.2
|
|
|
|
|
|
(1)
|
Held-for-sale
businesses include the U.S. VMS business, European sports brand,
and the India API business.
|
|
(2)
|
Includes tax effect
of pretax non-GAAP adjustments calculated based upon the specific
rate of the applicable
jurisdiction of the pretax item and certain adjustments for
discrete tax items.
|
|
|
|
|
TABLE
VII
|
|
|
PERRIGO COMPANY
PLC
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
PREVIOUS
PRELIMINARY RESULTS REPORTED FEBRUARY 27, 2017
|
|
|
(in millions, except
per share amounts)
|
|
|
(unaudited)
|
|
|
|
AS OF FEBRUARY
27,
2017
|
|
|
Year
Ended
|
|
Diluted Earnings
(Loss) per Share
|
December 31,
2016
|
|
Reported
|
$(28.85) -
$(29.00)
|
|
Adjustments:
|
|
|
Impairment
charges
|
$37.54
|
|
Amortization expense
related primarily to acquired intangible assets
|
4.52
|
|
Restructuring
charges
|
0.22
|
|
Acquisition and
integration-related charges
|
0.15
|
|
Operating results
attributable to held-for-sale businesses (1)
|
0.11
|
|
Unusual
litigation
|
0.07
|
|
Losses on equity
method investments
|
0.03
|
|
Legal and consulting
fees related to Mylan defense
|
0.01
|
|
Gain on
divestitures
|
(0.05)
|
|
Tax effect of
non-GAAP adjustments (2)
|
(6.50)
|
|
Adjusted
|
$7.10 -
$7.25
|
|
|
|
|
(1) Held-for-sale
businesses include the U.S. VMS business, European sports brand,
and the India API business.
|
|
|
(2) Includes tax
effect of pretax non-GAAP adjustments calculated based upon the
specific rate of the
applicable jurisdiction of the pretax item and certain adjustments
for discrete tax items.
|
|
|
|
AS OF FEBRUARY
27,
2017
|
|
|
Year
Ended
|
|
|
December 31,
2016
|
|
Consolidated Net
Sales
|
|
|
Reported
|
$
|
5,634.8
|
|
|
Operating results
attributable to held-for-sale businesses
|
(113.8)
|
|
|
Adjusted
|
$
|
5,521.0
|
|
|
TABLE VII
(continued)
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
PREVIOUS
PRELIMINARY RESULTS REPORTED FEBRUARY 27, 2017
|
|
|
|
|
(in millions, except
per share amounts)
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
AS OF FEBRUARY 27,
2017
|
|
|
Year
Ended
|
|
|
December 31,
2016
|
|
|
Reported
|
|
Adjusted
|
|
Full year 2016 EPS
range as of February 27, 2017
|
$(28.85) -
$(29.00)
|
|
$7.10 -
$7.25
|
|
|
|
|
|
|
Impact of previous
accounting for Tysabri on previously reported
results
|
Reported
|
Amortization
expense
|
Adjusted
|
|
|
|
|
|
|
Net sales
|
$
|
351.6
|
|
$
|
—
|
|
$
|
351.6
|
|
|
Cost of
sales
|
(290.0)
|
|
290.0
|
|
—
|
|
|
Operating
income
|
$
|
61.6
|
|
$
|
290.0
|
|
$
|
351.6
|
|
|
|
|
|
|
|
Tax at 12.5%
statutory rate
|
$
|
(7.7)
|
|
|
$
|
(44.0)
|
|
|
|
|
|
|
|
Net income
|
$
|
53.9
|
|
|
$
|
307.6
|
|
|
Diluted
shares
|
143.3
|
|
|
143.6
|
|
|
Earnings per share
impact
|
$
|
0.38
|
|
|
$
|
2.14
|
|
|
|
|
|
|
|
2016 full year EPS
range excluding impact of Tysabri as of February 27,
2017
|
$(29.23) -
$(29.38)
|
|
$4.96 -
$5.11
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/perrigo-files-2016-form-10-k-with-restated-financial-statements-reports-fourth-quarter-and-calendar-year-2016-financial-results-announces-2017-annual-meeting-date-300461804.html
SOURCE Perrigo Company plc