Perrigo Company Plc · NYSE:PRGO
Perrigo — Q3 FY2012 Earnings Presentation
23 slides from Perrigo's earnings presentation, May 8, 2012
Slide 1: Perrigo Fiscal 2012 Third Quarter Conference Call
Perrigo Fiscal 2012 Third Quarter Conference Call May 8, 2012 Quality, Affordable Healthcare Products
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future
Slide 3: Perrigo Consolidated – Q3 FY 2012 GAAP Financials
Perrigo Consolidated – Q3 FY 2012 GAAP Financials From Continuing Operations % Change Q3 2012 Q3 2011 ($ in millions, except per share amounts) Y/Y Net Sales $ 778 $ 692 13% Cost of Sales 499 452 10% Gross Profit 279 239 17% Distribution 10 9 19% R&D 28 24 19% SG&A 88 84 5% Restructuring 7 - N/A Ope
Slide 4: Perrigo Consolidated – Q3 FY 2012 Adjusted Financials
Perrigo Consolidated – Q3 FY 2012 Adjusted Financials* From Continuing Operations % Change Change as a Q3 2012 Q3 2011 ($ in millions, except per share amounts) Y/Y % to sales Net Sales $ 778 $ 692 13% Adjusted Cost of Sales 485 445 9% Adjusted Gross Profit 293 247 19% 190 bps Distribution 10 9 19%
Slide 5: Net Sales Performance by Segment – Adjusted Financials
Net Sales Performance by Segment – Adjusted Financials* From Continuing Operations ($ in millions) Q3 2012 Q3 2011 % Change Y/Y Consolidated Perrigo $ 778 $ 692 13% Adjusted Operating Income 172 136 27% Consumer Healthcare 449 425 6% Adjusted Operating Income 77 74 4% Nutritionals 118 124 (5%) Adjus
Slide 6: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 4.6% Total OTC & VMS* -0.1% 1.3% 6.8% Total OTC -2.2% 0.6% -8.8% 4.0% Analgesics -3.9% 8.9% Cough, Cold, Allergy, Sinus -0.6% 2.1% 11.7% Gastrointestinal -4.4% 0.4% -0.4% Smoking Cessation 1.9% 0.7% -5.1% Vitamins (*VMS) 7.7% 4.3% -2
Slide 7: Consumer Healthcare Segment – Adjusted Financials
Consumer Healthcare Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q3 2012 Q3 2011 ($ in millions) Y/Y % to sales Net Sales $ 449 $ 425 6% Adjusted Cost of Sales 310 289 7% Adjusted Gross Profit 139 136 2% (110) bps Adjusted Operating Expenses 62 62 NM Adjusted Operat
Slide 8: Nutritionals Segment – Adjusted Financials
Nutritionals Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q3 2012 Q3 2011 ($ in millions) Y/Y % to sales Net Sales $ 118 $ 124 (5%) Adjusted Cost of Sales 83 83 NM Adjusted Gross Profit 34 41 (16%) (390) bps Adjusted Operating Expenses 17 17 (2%) Adjusted Operating
Slide 9: Rx Segment – Adjusted Financials
Rx Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q3 2012 Q3 2011 ($ in millions) Y/Y % to sales Net Sales $ 156 $ 84 84% Adjusted Cost of Sales 62 41 54% Adjusted Gross Profit 93 44 113% 790 bps Operating Expenses 15 10 52% Adjusted Operating Income $ 78 $ 34 130% 99
Slide 10: API Segment – Adjusted Financials
API Segment – Adjusted Financials* From Continuing Operations % Change Change as a Q3 2012 Q3 2011 ($ in millions) Y/Y % to sales Net Sales $ 37 $ 41 (10%) Adjusted Cost of Sales 18 22 (19%) Adjusted Gross Profit 19 20 (1%) 480 bps Operating Expenses 8 8 3% Adjusted Operating Income $ 11 $ 12 (4%) 2
Slide 11: Perrigo Increases FY12 EPS and Adjusts Revenue Guidance
Perrigo Increases FY12 EPS and Adjusts Revenue Guidance* From Continuing Operations Updated FY 2012 Updated FY 2012 Updated FY 2012 FY 2012 Guidance Guidance Guidance Guidance 8/16/11 Conference 10/27/11 Conference 2/7/12 Conference 5/8/12 Conference Call Call Call Call CONSOLIDATED PERRIGO Revenue
Slide 12: Perrigo Updates FY12 Segment Guidance
Perrigo Updates FY12 Segment Guidance* From Continuing Operations Updated FY 2012 Updated FY 2012 Updated FY 2012 FY 2012 Guidance Guidance Guidance Guidance 8/16/11 10/27/11 2/7/12 5/8/12 Conference Call Conference Call Conference Call Conference Call CONSUMER HEALTHCARE Revenue Growth Y/Y 12% - 14
Slide 13: Growth FY12 and Beyond – Consumer Healthcare
Growth FY12 and Beyond – Consumer Healthcare Publicly disclosed products Across all segments, we expect to launch >45 new products, resulting in >$190M of revenue in FY 2012 Potential Rx to OTC switches • $10B in branded sales potential over the next 5 years Product Updates Branded Sales ($M) Launch
Slide 14: Growth FY12 and Beyond – Rx
Growth FY12 and Beyond – Rx Publicly disclosed products 37 ANDAs Pending FDA approval • ANDAs represent $4B in branded sales • 8 confirmed first-to-file ANDAs 5 Paragraph IV litigations 5 projects in clinical studies Branded Sales Rx Pipeline Highlights Status ($M) Generic version of Duac® Gel $141
Slide 15: Questions / Appendix
Questions Appendix 15 Quality, Affordable Healthcare Products
Slide 16: Table I
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table I (in thousands, except per share amounts) (unaudited) Three Months Ended Consolidated March 31, 2012 March 26, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 778,017 $ - $ 7
Slide 17: Table II
PERRIGO COMPANY REPORTABLE SEGMENTS Table II RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Consumer Healthcare March 31, 2012 March 26, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 448,848 $ - $
Slide 18: Table II (Continued)
PERRIGO COMPANY REPORTABLE SEGMENTS Table II (Continued) RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals March 31, 2012 March 26, 2011 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 15
Slide 19: Table III
PERRIGO COMPANY FY 2012 GUIDANCE AND FY 2011 EPS Table III RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance* FY12 reported diluted EPS from continuing operations range $4.10 - $4.20 Deal-related amortization (1) 0.53 Charge associated with inventory step-up 0.18 Charges
Slide 20: Table IV
PERRIGO COMPANY FY 2012 GUIDANCE Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance Consolidated Reported consolidated gross margin range 32.5% - 35.5% Deal-related amortization (1) 1.7% Inventory step-up 0.8% Adjusted consolidated gross margin range 35% - 38% Re
Slide 21: Table IV (continued)
PERRIGO COMPANY FY 2012 GUIDANCE Table IV (continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance Nutritionals Reported gross margin range 25% - 27% Deal-related amortization (1) 3.0% Adjusted gross margin range 28% - 30% Reported operating margin range 5.4% - 7.4%
Slide 22: Table V
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table V (in thousands) (unaudited) Nutritionals Q2 FY12 3/31/2012 Net sales $ 128,147 Total debt $ 1,494,620 Reported gross profit $ 29,368 Less: Cash and cash equivalents (554,280) Deal-related amortization (1) 3,022 Total net debt 940,340 Adjuste
Slide 23: Table VI
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table VI (in thousands) (unaudited) Three Months Ended Change Consolidated March 31, 2012 March 26, 2011 $ % Net sales, as reported $ 778,017 $ 691,563 $ 86,454 13% Less: Paddock acquisition (61,946) - (61,946) - Net sales, organic $ 716,071 $ 691,