Perrigo Company plc · NYSE:PRGO
Perrigo — Q1 FY2011 Earnings Presentation
23 slides from Perrigo's earnings presentation, Nov 2, 2010
Slide 1: Perrigo Fiscal 2011 First Quarter Conference Call
Perrigo Fiscal 2011 First Quarter Conference Call November 2, 2010 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: All Category Update
All Category Update 52 Weeks Store Brand National Brand Category 14.1% Total OTC & Vitamins (*VMS) -1.3% 2.7% 15.0% Total OTC -3.9% 1.0% 25.0% Analgesics-11.5% -2.1% 11.1% Cough, Cold, Allergy, Sinus -3.4% 0.1% 13.6% Gastrointestinal 3.9% 6.4% 10.2% Smoking Cessation -11.0% -1.2% 11.1% Vitamins (*VM
Slide 4: GAAP Financials - From Continuing Operations
GAAP Financials - From Continuing Operations Perrigo Consolidated Q1 2011 Q1 2010 % Change Y/Y ($ in millions, except per share amounts) Net Sales $ 641 $ 528 21% Cost of Sales 427 365 17% Gross Profit 214 163 31% Distribution 8 6 29% SG&A 76 52 47% R&D 18 19 -5% Write-off of IPR&D - 14 - Operating
Slide 5: Adjusted Financials - From Continuing Operations
Adjusted Financials* – From Continuing Operations % Change Q1 2011 Q1 2010 (in millions, except per share data) Y/Y Net Sales $ 641.3 $ 528.3 21% Reported Gross Profit $ 214.0 $ 163.2 31% Deal-related amortization (1) 7.2 4.2 Inventory step-up - 0.3 Adjusted Gross Profit $ 221.1 $ 167.7 32% Reported
Slide 6: Adjusted Financials - Perrigo Consolidated
Adjusted Financials* - From Continuing Operations Perrigo Consolidated % Change Change as Q1 2011 Q1 2010 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 641 $ 528 21% Adjusted Cost of Sales 420 361 17% Adjusted Gross Profit 221 168 32% 280 bps Adjusted Operating Expenses 98 7
Slide 7: Adjusted Segment Financials - Consumer Healthcare
Adjusted Segment Financials* - From Continuing Operations Consumer Healthcare Change as a Q1 2011 Q1 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 396 $ 381 4% Adjusted Cost of Sales 270 257 5% Adjusted Gross Profit 126 124 2% -50 bps Adjusted Operating Expenses 53 48 11% Adjusted Operati
Slide 8: Adjusted Segment Financials - Nutritionals
Adjusted Segment Financials* - From Continuing Operations Nutritionals Change as a Q1 2011 Q1 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 123 $ 56 120% Adjusted Cost of Sales 81 53 54% Adjusted Gross Profit 41 3 1208% 2800 bps Adjusted Operating Expenses 18 5 230% Adjusted Operating Inc
Slide 9: Adjusted Segment Financials - Rx Pharmaceuticals
Adjusted Segment Financials* - From Continuing Operations Rx Pharmaceuticals Change as a Q1 2011 Q1 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 69 $ 47 47% Adjusted Cost of Sales 39 22 78% Adjusted Gross Profit 30 25 20% -990 bps Adjusted Operating Expenses 10 8 20% Adjusted Operating I
Slide 10: Adjusted Segment Financials - API
Adjusted Segment Financials* - From Continuing Operations API Change as a Q1 2011 Q1 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 37 $ 33 13% Adjusted Cost of Sales 20 22 -7% Adjusted Gross Profit 17 11 54% 1200 bps Adjusted Operating Expenses 6 7 -5% Adjusted Operating Income $ 11 $ 4 1
Slide 11: FY 2010 & 2011 Adj. Diluted EPS Reconciliation
FY 2010 & 2011 Adj. Diluted EPS Reconciliation* - From Continuing Operations FY 10 Actual FY 11 Guidance Y/Y Growth Reported Diluted EPS from Continuing Operations $ 2.42 $3.28 - $3.43 +36% to +42% Charges associated with inventory step-ups 0.075 - Charges associated with acquired research and devel
Slide 12: Perrigo FY11 Revised Guidance
Perrigo FY11 Revised Guidance* - From Continuing Operations Consolidated Revenue Growth 20% to 23% from Fiscal 2010 Adj. Consolidated Gross Margin 34% to 35% from Fiscal 2010 Adj. Consolidated Operating Margin 18% to 19% of Net Sales Adjusted Diluted EPS $3.60 to $3.75 (19% to 24% Y/Y Growth**) Cash
Slide 13: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 14: Table I: Segment Information
Table I Table I PERRIGO COMPANY SEGMENT INFORMATION (in thousands) (unaudited) First Quarter* 2011 2010 Segment Net Sales Consumer Healthcare $ 396,104 $ 380,821 Nutritionals 122,684 55,792 Rx Pharmaceuticals 69,333 47,131 API 37,361 32,920 Other 15,840 11,669 Total $ 641,322 $ 528,333 Segment Opera
Slide 15: Table II
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) Table II (unaudited) First Quarter* 2011 2010 % Change Net sales $ 641,322 $ 528,333 21% Reported gross profit $ 213,954 $ 163,212 31% Deal-related amortization (1) 7,174 4,157 Inventory step-up - 320 Adjust
Slide 16: Table II Continued
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table II Continued (in thousands, except per share amounts) (unaudited) First Quarter* 2011 2010 % Change Consumer Healthcare Net sales $ 396,104 $ 380,821 4% Reported gross profit $ 125,592 $ 122,937 2% Deal-related amortization (1) 802 617 Adjust
Slide 17: Table II Continued
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) Table II Continued (unaudited) First Quarter* 2011 2010 % Change Rx Pharmaceuticals Net sales $ 69,333 $ 47,131 47% Reported gross profit $ 27,772 $ 22,399 24% Deal-related amortization (1) 2,459 2,795 Adjus
Slide 18: Table II Continued
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table II Continued (in thousands, except per share amounts) (unaudited) First Quarter* 2011 2010 % Change Other Net sales $ 15,840 $ 11,669 36% Reported gross profit $ 5,419 $ 3,953 37% Deal-related amortization (1) 421 256 Inventory step-up - 320
Slide 19: Table III
Table III Table III PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) First Quarter* Adjustment - Adjustment - First Quarter* Reported Cost of Sales Deal-Related Amortization(1) Inventory Step-Up Adjusted Cost of Sales 2011 2010 2011 2010 2011 2010 2011 2010 % Change Seg
Slide 20: Table IV: FY 2011 Guidance and FY 2010 EPS
Table IV FY 2011 GUIDANCE AND FY 2010 EPS Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* FY11 reported diluted EPS from continuing operations range $3.28 - $3.43 Deal-related amortization (1) 0.32 FY11 adjusted diluted EPS from continuing operations range $3
Slide 21: Table V: FY 2011 Guidance
Table V FY 2011 GUIDANCE Table V RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Consolidated Reported consolidated gross margin range 33% - 34% Deal-related amortization (1) 1.0% Adjusted consolidated gross margin range 34.0% - 35.0% Reported consolidated operating m
Slide 22: Table V Continued: FY 2011 Guidance
Table V (Continued) FY 2011 GUIDANCE Table V Continued RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Rx Pharmaceuticals Reported gross margin range 40.9% - 42.9% Deal-related amortization (1) 3.1% Adjusted gross margin range 44.0% - 46.0% Reported operating margin r
Slide 23: Table VI
Table VI Table VI PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) 9/25/2010 Total debt $ 904,524 Less: Cash, cash equivalents and current investment securities (56,658) Total net debt 847,866 Total shareholders' equity 1,204,791 Total capital $ 2,052,657 Net debt to to