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Perkinelmer Announces Financial Results for the Second Quarter of 2013

Revenue growth of 4%; Adjusted and organic revenue growth of 3% GAAP earnings per share from continuing operations of $0.24; Adjusted earnings per share of $0.51 Updates GAAP earnings per share guidance to $1.40 to $1.47; Updates adjusted earnings per share guidance to $2.03 to $2.10

WALTHAM, Mass.—(BUSINESS WIRE )— PerkinElmer, Inc. ( NYSE: PKI ). a global leader focused on improving the health and safety of people and the environment, today reported financial results for the second quarter ended June 30, 2013.

The Company reported GAAP earnings per share from continuing operations of $0.24, compared to $0.29 in the second quarter of 2012. Revenue in the second quarter of 2013 was $543.3 million, as compared to $521.8 million in the second quarter of 2012. GAAP operating income from continuing operations for the second quarter of 2013 was $39.7 million, compared to $49.8 million in the second quarter of 2012. GAAP operating profit margin from continuing operations was 7.3% in the second quarter of 2013, compared to 9.5% in the second quarter of 2012.

Adjusted earnings per share was $0.51, compared to $0.53 in the second quarter of 2012. Adjusted revenue and organic revenue both increased 3% for the quarter. Adjusted revenue was $547.1 million, compared to $532.3 million in the second quarter of 2012. Adjusted operating income for the second quarter of 2013 was $85.2 million, compared to $89.7 million for the same period a year ago. Adjusted operating profit margin was 15.6% as a percentage of adjusted revenue, compared to 16.9% for the same period a year ago. For the Company’s non-GAAP financial measures, adjustments have been noted in the attached reconciliations.

“I am encouraged by our performance in the second quarter as we exceeded our adjusted revenue and adjusted operating profit forecasts despite a challenging global environment. We were able to deliver sequential revenue improvements in the areas that were under pressure in the first quarter while the remaining portfolio continued to perform well,” said Robert Friel, chairman and chief executive officer of PerkinElmer. “Our second quarter performance gives us confidence in our ability to deliver organic growth and improved profitability in the back half of the year.”

Cash Flow

For the six months ending June 30, 2013, operating cash flow from continuing operations was $38.7 million as compared to $92.7 million for the same period a year ago. Adjusted operating cash flow from continuing operations was $98.6 million as compared to $114.6 million for the same period a year ago.

Financial Overview by Reporting Segment for the Second Quarter 2013

Human Health

Revenue of $300.0 million, as compared to $287.8 million for the second quarter of 2012. Operating income of $30.1 million, as compared to $30.4 million for the same period a year ago. Adjusted revenue of $303.7 million, as compared to $298.2 million for the second quarter of 2012. Adjusted revenue and organic revenue both increased 2%. Adjusted operating income of $64.4 million, as compared to $66.6 million for the same period a year ago. Adjusted operating profit margin was 21.2% as a percentage of adjusted revenue, a decrease of approximately 110 basis points as compared to the second quarter of 2012.

Environmental Health

Revenue of $243.4 million, as compared to $234.0 million for the second quarter of 2012. Revenue increased 4% and organic revenue increased 3%. Operating income of $19.3 million, as compared to $29.3 million for the same period a year ago. Adjusted operating income of $30.5 million, as compared to $33.0 million for the same period a year ago. Adjusted operating profit margin was 12.5% as a percentage of revenue, a decrease of approximately 160 basis points as compared to the second quarter of 2012.

Financial Guidance – Full Year 2013 — Updated

For the full year 2013, the Company forecasts organic revenue to increase in the low-single digit range relative to 2012. For the full year 2013, the Company now forecasts GAAP earnings per share from continuing operations in the range of $1.40 to $1.47 and on a non-GAAP basis, which is expected to include the adjustments noted in the attached reconciliation, and updates adjusted earnings per share to a range of $2.03 to $2.10 from a range of $2.00 to $2.10.

Conference Call Information

The Company will discuss its second quarter results and its outlook for business trends in a conference call on August 1, 2013 at 5:00 p.m. Eastern Time (ET). To access the call, please dial (617) 399-5131 prior to the scheduled conference call time and provide the access code 50839653. A playback of this conference call will be available beginning 7:00 p.m. ET, Thursday, August 1, 2013. The playback phone number is (617) 801-6888 and the code number is 27752648.

A live audio webcast of the call will be available on the Investor section of the Company’s Web site, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company’s Web site for a two week period beginning approximately two hours after the call.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

Factors Affecting Future Performance

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities and divestitures. Words such as believes, intends, anticipates, plans, expects, projects, forecasts, will and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management’s current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) fluctuations in the global economic and political environments; (3) our failure to introduce new products in a timely manner; (4) our ability to execute acquisitions and license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (5) our failure to adequately protect our intellectual property; (6) the loss of any of our licenses or licensed rights; (7) our ability to compete effectively; (8) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (9) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (10) disruptions in the supply of raw materials and supplies; (11) the manufacture and sale of products exposing us to product liability claims; (12) our failure to maintain compliance with applicable government regulations; (13) regulatory changes; (14) our failure to comply with healthcare industry regulations; (15) economic, political and other risks associated with foreign operations; (16) our ability to retain key personnel; (17) significant disruption in our information technology systems; (18) our ability to obtain future financing; (19) restrictions in our credit agreements; (20) our ability to realize the full value of our intangible assets; (21) significant fluctuations in our stock price; (22) reduction or elimination of dividends on our common stock; and (23) other factors which we describe under the caption Risk Factors in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on improving the health and safety of people and the environment. The company reported revenue of approximately $2.1 billion in 2012, has about 7,400 employees serving customers in more than 150 countries, and is a component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.