DUBLIN, April 7, 2020 /PRNewswire/ -- Perrigo
Company plc (NYSE; TASE: PRGO) announced today preliminary
unaudited first quarter 2020 net sales and provided GAAP and
non-GAAP operating income for the first quarter.
Perrigo CEO and President, Murray S.
Kessler commented, "While our first priority is the health
and wellbeing of our employees and their families, all of us at
Perrigo recognize the importance of access to our self-care and
health-care products during this global health crisis. For
perspective, Perrigo's Consumer Self-Care Americas business
supplies more than half of the acetaminophen (Tylenol®
equivalent) volume in the United
States in addition to many other essential products. During
the first quarter, Perrigo continued to experience strong growth
across all business segments, while also benefiting from a dramatic
surge in demand in March related to the COVID-19 pandemic. Through
a herculean effort by our employees, especially our production
employees around the world, we were able to supply most of the
demand. As a result of these efforts and other factors, Perrigo
first quarter net sales increased 14% versus prior year, with
organic net sales(1)(2) higher by 11%. First quarter
non-GAAP operating income is estimated to be $220 million to $225
million versus $203 million in
the prior year quarter. This includes new supplemental bonuses to
demonstrate our appreciation to front-line production employees for
their dedication and hard work in delivering our essential products
to consumers and patients during these unprecedented times."
Preliminary Unaudited First Quarter 2020 Net Sales &
Operating Income Range
Consolidated first quarter
net sales were approximately $1.3
billion, an increase of 14% compared to the prior year
quarter. Excluding exited businesses(2) and the impact
of currency, net sales increased 18%. Organic net sales were up
11%.
Worldwide Consumer first quarter net sales were approximately
$1.1 billion, an increase of 16%
compared to the prior year quarter. Excluding exited businesses and
the impact of currency, net sales increased 21%. Organic net sales
were up 12%. As a reminder, Worldwide Consumer is comprised of the
Consumer Self-Care Americas segment, Consumer Self-Care
International segment and corporate.
Consumer Self-Care Americas segment first quarter net sales were
approximately $700 million, an
increase of 20% compared to the prior year quarter. Excluding
exited businesses and the impact of currency, net sales increased
25%. Organic net sales were up 15%.
Consumer Self-Care International segment first quarter net sales
were approximately $380 million, an
increase of 9% compared to the prior year quarter. Excluding exited
businesses and the impact of currency, net sales increased 14%.
Organic net sales were up 8%.
Rx segment first quarter net sales were approximately
$260 million, an increase of 6%
compared to the prior year quarter, which benefitted from the U.S.
Food and Drug Administration approval and launch of generic
albuterol sulfate inhalation aerosol. This more than offset the
negative net sales impact of price erosion on testosterone gel
1.62%, which launched in the prior year with 180-day market
exclusivity.
The Company estimates first quarter GAAP operating income of
$140 million to $145 million, versus $102
million in the prior year quarter. The Company estimates
non-GAAP operating income for the quarter of $220 million to $225
million versus $203 million in
the prior year quarter. Both the reported and non-GAAP estimates
include $4 million in supplemental
production employee bonuses.
The Company currently intends to release complete first quarter
2020 financial results during the last week of April 2020. Given the volatility and uncertainty
of the current operating environment, the Company does not expect
to modify full-year guidance at that time.
See attached Appendix for reconciliation of adjusted
(non-GAAP) to reported (GAAP) financial measures.
(1) Organic net sales growth excludes the 2019
acquisition of Ranir, exited businesses and the impact of
currency.
(2) Exited businesses refers to the divested
animal health business in the prior year period, which was
previously included in the Consumer Self-Care Americas segment, and
the divested Canoderm prescription product in the Nordic region in
the prior year period, which was previously included in the
Consumer Self-Care International business. In 2019, net sales of
Canoderm were $13 million with
adjusted operating income of $8
million.
About Perrigo Company plc
Perrigo Company plc (NYSE;
TASE: PRGO) is dedicated to making lives better by bringing
"Quality, Affordable Self-care Products™" that
consumers trust everywhere they are sold. The Company is a
leading provider of over-the-counter health and wellness solutions
that enhance individual well-being by empowering consumers to
proactively prevent or treat conditions that can be
self-managed. 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," "forecast," "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 effect of the novel coronavirus
(COVID-19) pandemic and the associated economic downturn and supply
chain impacts on the Company's business; general economic, credit,
and market conditions; 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 the Company
does; pricing pressures from customers and consumers; resolution of
uncertain tax positions, including the Company's appeal of the
Notice of Assessment (the "NoA") issued by the Irish tax authority
and the draft and final Notices of Proposed Assessment ("NOPAs")
issued by the U.S. Internal Revenue Service and the impact that an
adverse result in any such proceedings would have on operating
results, cash flows, and liquidity; pending and potential
third-party claims and litigation, including litigation relating to
the Company's restatement of previously-filed financial information
and litigation relating to uncertain tax positions, including the
NoA and the NOPAs; potential impacts of ongoing or future
government investigations and regulatory initiatives; potential
costs and reputational impact of product recalls or sales halts;
the impact of tax reform legislation and healthcare policy; the
timing, amount and cost of any share repurchases; fluctuations in
currency exchange rates and interest rates; the consummation of
announced acquisitions or dispositions and the success of such
transactions, and the Company's ability to realize the desired
benefits thereof; and the Company's ability to execute and achieve
the desired benefits of announced cost-reduction efforts and
strategic and other initiatives. An adverse result with
respect to our appeal of any material outstanding tax assessments
or pending litigation, including securities or drug pricing
matters, could ultimately require the use of corporate assets to
pay such assessments, damages from third-party claims, and related
interest and/or penalties, and any such use of corporate assets
would limit the assets available for other corporate purposes.
Statements regarding the separation of the Rx business, including
the expected benefits, anticipated timing, form of any such
separation and whether the separation ultimately occurs, are all
subject to various risks and uncertainties, including future
financial and operating results, our ability to separate the
business, the effect of existing interdependencies with our
manufacturing and shared service operations, and the tax
consequences of the planned separation to the Company or its
shareholders. These and other important factors, including those
discussed under "Risk Factors" in the Company's Form 10-K for the
year ended December 31, 2019, 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 operations, balance sheets or statements of cash flows of the
Company. Pursuant to the requirements of the U.S. Securities and
Exchange Commission, the Company has provided reconciliations for
guidance for adjusted diluted earnings per share 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.
TABLE
I
|
|
PERRIGO COMPANY
PLC
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
(unaudited)
|
|
|
|
(in
millions)
|
Three Months
Ended
March 28, 2020
|
Consolidated
|
Operating
Income
|
Reported
Range
|
$140.0 -
$145.0
|
Estimated Pre-tax
adjustments:
|
|
Amortization expense
related primarily to acquired intangible assets
|
$
|
71.0
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
3.0
|
Unusual
litigation
|
5.0
|
Separation and
reorganization expense
|
1.0
|
Adjusted
Range
|
$220.0 -
$225.0
|
(in
millions)
|
Three Months
Ended
March 30, 2019
|
Consolidated
|
Operating
Income
|
Reported
|
$
|
102.3
|
Adjustments:
|
|
Amortization expense
related primarily to acquired intangible assets
|
$
|
76.5
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
(2.8)
|
Impairment
charges
|
4.1
|
Gain/loss on
divestitures
|
(1.3)
|
Unusual
litigation
|
9.1
|
Restructuring charges
and other termination benefits
|
9.3
|
Separation and
reorganization expense
|
5.8
|
Adjusted
|
$
|
203.0
|
TABLE
II
|
|
|
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
PRELIMINARY
UNAUDITED ADJUSTED NET SALES GROWTH - SELECTED
SEGMENTS
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
(in
millions)
|
March 28,
2020
|
|
March 30,
2019
|
|
Total
Change*
|
|
FX
Change*
|
|
Constant
Currency
Change*
|
Net
sales
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
1,341.0
|
|
|
$
|
1,174.5
|
|
|
14%
|
|
1%
|
|
15%
|
CSCA
|
$
|
700.6
|
|
|
$
|
581.8
|
|
|
20%
|
|
—%
|
|
21%
|
CSCI
|
$
|
382.7
|
|
|
$
|
350.8
|
|
|
9%
|
|
4%
|
|
13%
|
RX
|
$
|
257.7
|
|
|
$
|
241.9
|
|
|
6%
|
|
—%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
1,341.0
|
|
|
$
|
1,174.5
|
|
|
|
|
|
|
|
Less: animal
health
|
—
|
|
|
(19.6)
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(3.7)
|
|
|
|
|
|
|
|
Consolidated net
sales as so adjusted
|
$
|
1,341.0
|
|
|
$
|
1,151.2
|
|
|
16%
|
|
1%
|
|
18%
|
Less:
Ranir
|
(76.3)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Consolidated
net sales as so adjusted
|
$
|
1,264.7
|
|
|
$
|
1,151.2
|
|
|
10%
|
|
1%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
Worldwide
Consumer
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
700.6
|
|
|
$
|
581.8
|
|
|
|
|
|
|
|
CSCI
|
382.7
|
|
|
350.8
|
|
|
|
|
|
|
|
Total Worldwide
Consumer
|
$
|
1,083.3
|
|
|
$
|
932.6
|
|
|
16%
|
|
2%
|
|
18%
|
Less: animal
health
|
—
|
|
|
(19.6)
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(3.7)
|
|
|
|
|
|
|
|
Worldwide Consumer
net sales as so adjusted
|
$
|
1,083.3
|
|
|
$
|
909.3
|
|
|
19%
|
|
2%
|
|
21%
|
Less:
Ranir
|
(76.3)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Worldwide
Consumer net sales as so adjusted
|
$
|
1,007.0
|
|
|
$
|
909.3
|
|
|
11%
|
|
2%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
700.6
|
|
|
$
|
581.8
|
|
|
|
|
|
|
|
Less: animal
health
|
—
|
|
|
(19.6)
|
|
|
|
|
|
|
|
CSCA net sales as so
adjusted
|
$
|
700.6
|
|
|
$
|
562.2
|
|
|
25%
|
|
—%
|
|
25%
|
Less:
Ranir
|
(55.3)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCA net
sales as so adjusted
|
$
|
645.3
|
|
|
$
|
562.2
|
|
|
15%
|
|
—%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
$
|
382.7
|
|
|
$
|
350.8
|
|
|
9%
|
|
4%
|
|
13%
|
Less: Canoderm
prescription product
|
—
|
|
|
(3.7)
|
|
|
|
|
|
|
|
CSCI net sales as so
adjusted
|
382.7
|
|
|
347.1
|
|
|
10%
|
|
4%
|
|
14%
|
Less:
Ranir
|
(21.0)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCI net
sales as so adjusted
|
$
|
361.7
|
|
|
$
|
347.1
|
|
|
4%
|
|
4%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
*May not foot due to
rounding.
|
|
|
|
|
|
|
|
|
|
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SOURCE Perrigo Company plc