PerkinElmer Earnings 2020-10-04

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

pki-20201004

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________

FORM 10-Q

_______________________________________

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 4, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 001-5075

_______________________________________

PerkinElmer, Inc.

(Exact name of Registrant as specified in its Charter)

_______________________________________

Massachusetts

04-2052042

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

940 Winter Street,

Waltham,

Massachusetts

02451

(Address of principal executive offices)

(Zip Code)

(781) 663-6900

(Registrant’s telephone number, including area code)

______________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common stock, $1 par value per share	PKI	The New York Stock Exchange
1.875% Notes due 2026	PKI 21A	The New York Stock Exchange
0.60% Notes due 2021	PKI 21B	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark whether the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of November 5, 2020, there were outstanding 111,974,485 shares of common stock, $1 par value per share.

Table of Contents

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements	4
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Balance Sheets	6
	Condensed Consolidated Statements of Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
	Overview	36
	Critical Accounting Policies and Estimates	37
	Consolidated Results of Continuing Operations	37
	Reporting Segment Results of Continuing Operations	42
	Liquidity and Capital Resources	44
	Dividends	48
	Contractual Obligations	48
	Effects of Recently Adopted and Issued Accounting Pronouncements	48

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	51

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	52

Item 1A.	Risk Factors	52

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60

Item 6.	Exhibits	61

Signatures		62

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.Unaudited Financial Statements

PERKINELMER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended				Nine Months Ended
	October 4, 2020		September 29, 2019		October 4, 2020		September 29, 2019
	(In thousands, except per share data)
Product revenue	$	736,846	$	493,320	$	1,763,881	$	1,434,156
Service revenue	227,179		213,603		664,258		644,021
Total revenue	964,025		706,923		2,428,139		2,078,177
Cost of product revenue	299,785		236,618		746,469		681,349
Cost of service revenue	136,795		128,030		398,858		398,954
Total cost of revenue	436,580		364,648		1,145,327		1,080,303
Selling, general and administrative expenses	225,249		204,171		654,844		604,581
Research and development expenses	50,131		45,376		148,566		141,700
Restructuring and other costs, net	4,059		14,068		11,075		27,868
Operating income from continuing operations	248,006		78,660		468,327		223,725
Interest and other expense, net	14,249		15,406		35,054		51,879
Income from continuing operations before income taxes	233,757		63,254		433,273		171,846
Provision for income taxes	57,021		4,644		85,609		8,642
Income from continuing operations	176,736		58,610		347,664		163,204

Loss on disposition of discontinued operations before income taxes	—		—		—		—
Provision for income taxes on discontinued operations and dispositions	37		52		138		147
Loss from discontinued operations and dispositions	(37)		(52)		(138)		(147)
Net income	$	176,699	$	58,558	$	347,526	$	163,057
Basic earnings per share:
Income from continuing operations	$	1.58	$	0.53	$	3.12	$	1.47
Loss from discontinued operations and dispositions	(0.00)		(0.00)		(0.00)		(0.00)
Net income	$	1.58	$	0.53	$	3.12	$	1.47
Diluted earnings per share:
Income from continuing operations	$	1.57	$	0.53	$	3.11	$	1.46
Loss from discontinued operations and dispositions	(0.00)		(0.00)		(0.00)		(0.00)
Net income	$	1.57	$	0.52	$	3.10	$	1.46
Weighted average shares of common stock outstanding:
Basic	111,684		110,946		111,378		110,778
Diluted	112,292		111,559		111,935		111,460
Cash dividends declared per common share	$	0.07	$	0.07	$	0.21	$	0.21

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PERKINELMER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended				Nine Months Ended
	October 4, 2020		September 29, 2019		October 4, 2020		September 29, 2019
	(In thousands)
Net income	$	176,699	$	58,558	$	347,526	$	163,057
Other comprehensive income (loss):
Foreign currency translation adjustments	72,862		(62,700)		55,837		(66,954)


Unrealized gain (loss) on securities, net of tax	43		(5)		42		(22)
Other comprehensive income (loss)	72,905		(62,705)		55,879		(66,976)
Comprehensive income (loss)	$	249,604	$	(4,147)	$	403,405	$	96,081

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PERKINELMER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	October 4, 2020		December 29, 2019
	(In thousands, except share and per share data)
Current assets:
Cash and cash equivalents	$	258,293	$	191,877
Accounts receivable, net	797,911		725,184

Inventories	486,555		356,937
Other current assets	133,062		100,381

Total current assets	1,675,821		1,374,379
Property, plant and equipment:
At cost	762,661		701,580
Accumulated depreciation	(426,219)		(383,357)
Property, plant and equipment, net	336,442		318,223
Operating lease right-of-use assets	193,897		167,276
Intangible assets, net	1,181,754		1,283,286
Goodwill	3,161,998		3,111,227
Other assets, net	315,653		284,173

Total assets	$	6,865,565	$	6,538,564
Current liabilities:
Current portion of long-term debt	$	360,217	$	9,974
Accounts payable	258,038		235,855
Short-term accrued restructuring and other costs	10,344		11,559
Accrued expenses and other current liabilities	614,101		503,332
Current liabilities of discontinued operations	2,097		2,112
Total current liabilities	1,244,797		762,832
Long-term debt	1,492,633		2,064,041
Long-term liabilities	720,800		751,468
Operating lease liabilities	175,654		146,399

Total liabilities	3,633,884		3,724,740
Commitments and contingencies (see Note 18)
Stockholders’ equity:
Preferred stock—$1 par value per share, authorized 1,000,000 shares; none issued or outstanding	—		—
Common stock—$1 par value per share, authorized 300,000,000 shares; issued and outstanding 111,878,000 shares and 111,140,000 shares at October 4, 2020 and December 29, 2019, respectively	111,878		111,140
Capital in excess of par value	128,820		90,357
Retained earnings	3,134,750		2,811,973
Accumulated other comprehensive loss	(143,767)		(199,646)
Total stockholders’ equity	3,231,681		2,813,824
Total liabilities and stockholders’ equity	$	6,865,565	$	6,538,564

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PERKINELMER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


	For the Nine-Month Period Ended October 4, 2020
	Common Stock Amount		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	(In thousands)
Balance, December 29, 2019	$	111,140	$	90,357	$	2,811,973	$	(199,646)	$	2,813,824
Impact of adopting ASU 2016-13 (see Note 1)	—		—		(1,328)		—		(1,328)
Net income	—		—		33,665		—		33,665
Other comprehensive loss	—		—		—		(78,681)		(78,681)
Dividends	—		—		(7,779)		—		(7,779)
Exercise of employee stock options and related income tax benefits	21		1,085		—		—		1,106
Issuance of common stock for employee stock purchase plans	14		1,242		—		—		1,256
Purchases of common stock	(66)		(6,276)		—		—		(6,342)
Issuance of common stock for long-term incentive program	197		2,831		—		—		3,028
Stock compensation	—		997		—		—		997
Balance, April 5, 2020	$	111,306	$	90,236	$	2,836,531	$	(278,327)	$	2,759,746
Net income	—		—		137,162		—		137,162
Other comprehensive income	—		—		—		61,655		61,655
Dividends	—		—		(7,803)		—		(7,803)
Exercise of employee stock options and related income tax benefits	175		8,792		—		—		8,967
Issuance of common stock for employee stock purchase plans	14		1,291		—		—		1,305
Purchases of common stock	(4)		(323)		—		—		(327)
Issuance of common stock for long-term incentive program	2		5,123		—		—		5,125
Stock compensation	8		1,625		—		—		1,633
Balance, July 5, 2020	$	111,501	$	106,744	$	2,965,890	$	(216,672)	$	2,967,463
Net income	—		—		176,699		—		176,699
Other comprehensive income	—		—		—		72,905		72,905
Dividends	—		—		(7,839)		—		(7,839)
Exercise of employee stock options and related income tax benefits	369		17,085		—		—		17,454
Issuance of common stock for employee stock purchase plans	—		26		—		—		26
Purchases of common stock	(1)		(158)		—		—		(159)
Issuance of common stock for long-term incentive program	9		4,176		—		—		4,185
Stock compensation	—		947		—		—		947
Balance, October 4, 2020	$	111,878	$	128,820	$	3,134,750	$	(143,767)	$	3,231,681

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	For the Nine-Month Period Ended September 29, 2019
	Common Stock Amount		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	(In thousands)
Balance, December 30, 2018	$	110,597	$	48,772	$	2,602,067	$	(176,481)	$	2,584,955
Impact of adopting ASU 2016-02	—		—		13,289		—		13,289
Net income	—		—		35,412		—		35,412
Other comprehensive income	—		—		—		2,946		2,946
Dividends	—		—		(7,742)		—		(7,742)
Exercise of employee stock options and related income tax benefits	186		8,424		—		—		8,610
Issuance of common stock for employee stock purchase plans	19		1,367		—		—		1,386
Purchases of common stock	(57)		(5,236)		—		—		(5,293)
Issuance of common stock for long-term incentive program	146		3,392		—		—		3,538
Stock compensation	—		1,371		—		—		1,371
Balance, March 31, 2019	$	110,891	$	58,090	$	2,643,026	$	(173,535)	$	2,638,472
Net income	—		—		69,087		—		69,087
Other comprehensive loss	—		—		—		(7,217)		(7,217)
Dividends	—		—		(7,746)		—		(7,746)
Exercise of employee stock options and related income tax benefits	167		7,777		—		—		7,944
Issuance of common stock for employee stock purchase plans	15		1,387		—		—		1,402
Purchases of common stock	(7)		(757)		—		—		(764)
Issuance of common stock for long-term incentive program	5		4,384		—		—		4,389
Stock compensation	—		1,300		—		—		1,300
Balance, June 30, 2019	$	111,071	$	72,181	$	2,704,367	$	(180,752)	$	2,706,867
Net income	—		—		58,558		—		58,558
Other comprehensive loss	—		—		—		(62,705)		(62,705)
Dividends	—		—		(7,760)		—		(7,760)
Exercise of employee stock options and related income tax benefits	19		990		—		—		1,009
Issuance of common stock for employee stock purchase plans	(1)		(11)		—		—		(12)
Purchases of common stock	(2)		(142)		—		—		(144)
Issuance of common stock for long-term incentive program	6		7,890		—		—		7,896
Stock compensation	—		3,088		—		—		3,088
Balance, September 29, 2019	$	111,093	$	83,996	$	2,755,165	$	(243,457)	$	2,706,797

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

PERKINELMER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended
	October 4, 2020		September 29, 2019
	(In thousands)
Operating activities:
Net income	$	347,526	$	163,057
Loss from discontinued operations and dispositions, net of income taxes	138		147
Income from continuing operations	347,664		163,204
Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:
Stock-based compensation	19,770		25,105
Restructuring and other costs, net	11,075		27,868
Depreciation and amortization	182,521		157,117
Loss on disposition of businesses and assets, net	886		2,469

Change in fair value of contingent consideration	(8,807)		4,399
Debt extinguishment costs	—		471
Amortization of deferred debt financing costs and accretion of discounts	2,559		2,778
Amortization of acquired inventory revaluation	1,757		13,258
Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired:
Accounts receivable, net	(67,695)		(22,132)

Inventories	(120,934)		(48,367)
Accounts payable	16,391		(34,043)

Accrued expenses and other	24,893		(143,869)
Net cash provided by operating activities of continuing operations	410,080		148,258
Net cash used in operating activities of discontinued operations	—		—
Net cash provided by operating activities

Price	85.16	EPS	2
Shares	112	P/E	41
MCap	9,500	P/FCF	64
Net Debt	1,862	EBIT	292
TEV	11,362	TEV/EBIT	39
TTM 2019-09-29, in MM, except price, ratios

10-Q	2020-10-04	Filed 2020-11-10
10-Q	2020-07-05	Filed 2020-08-11
10-Q	2020-04-05	Filed 2020-05-12
10-K	2019-12-29	Filed 2020-02-25
10-Q	2019-09-29	Filed 2019-11-05
10-Q	2019-06-30	Filed 2019-08-06
10-Q	2019-03-31	Filed 2019-05-07
10-K	2018-12-30	Filed 2019-02-26
10-Q	2018-09-30	Filed 2018-11-06
10-Q	2018-07-01	Filed 2018-08-07
10-Q	2018-04-01	Filed 2018-05-08
10-K	2017-12-31	Filed 2018-02-27
10-Q	2017-10-01	Filed 2017-11-07
10-Q	2017-07-02	Filed 2017-08-08
10-Q	2017-04-02	Filed 2017-05-09
10-K	2017-01-01	Filed 2017-02-28
10-Q	2016-10-02	Filed 2016-11-08
10-Q	2016-07-03	Filed 2016-08-09
10-Q	2016-04-03	Filed 2016-05-10
10-K	2016-01-03	Filed 2016-03-01
10-Q	2015-10-04	Filed 2015-11-10
10-Q	2015-06-28	Filed 2015-08-04
10-Q	2015-03-29	Filed 2015-05-05
10-K	2014-12-28	Filed 2015-02-24
10-Q	2014-09-28	Filed 2014-11-04
10-Q	2014-06-29	Filed 2014-08-05
10-Q	2014-03-30	Filed 2014-05-06
10-K	2013-12-29	Filed 2014-02-25
10-Q	2013-09-29	Filed 2013-11-05
10-Q	2013-06-30	Filed 2013-08-06
10-Q	2013-03-31	Filed 2013-05-06
10-K	2012-12-30	Filed 2013-02-26
10-Q	2012-09-30	Filed 2012-11-06
10-Q	2012-07-01	Filed 2012-08-07
10-Q	2012-04-01	Filed 2012-05-08
10-K	2012-01-01	Filed 2012-02-28
10-Q	2011-10-02	Filed 2011-11-04
10-Q	2011-07-03	Filed 2011-08-10
10-Q	2011-04-03	Filed 2011-05-10
10-K	2011-01-02	Filed 2011-03-01
10-Q	2010-10-03	Filed 2010-11-10
10-Q	2010-07-04	Filed 2010-08-10
10-Q	2010-04-04	Filed 2010-05-13
10-K	2010-01-03	Filed 2010-03-01

8-K	2020-10-28
8-K	2020-10-12
8-K	2020-07-28
8-K	2020-07-13
8-K	2020-05-05
8-K	2020-04-28
8-K	2020-03-26
8-K	2020-03-25
8-K	2020-03-09
8-K	2020-03-01
8-K	2020-01-27
8-K	2019-10-30
8-K	2019-09-17
8-K	2019-09-12
8-K	2019-08-21
8-K	2019-07-29
8-K	2019-04-25
8-K	2019-04-23
8-K	2019-04-08
8-K	2019-01-31
8-K	2018-12-07
8-K	2018-10-31
8-K	2018-08-01
8-K	2018-04-30
8-K	2018-04-24
8-K	2018-04-11
8-K	2018-04-10
8-K	2018-01-25

EX-31.1	pki-10042020xex311.htm
EX-31.2	pki-10042020xex312.htm
EX-32.1	pki-10042020xex321.htm

PKI 10Q Quarterly Report

PerkinElmer Earnings 2020-10-04