Perrigo Company plc · NYSE:PRGO
Perrigo — Q3 FY2011 Earnings Presentation
23 slides from Perrigo's earnings presentation, May 3, 2011
Slide 1: Perrigo Fiscal 2011 Third Quarter Conference Call
Perrigo Fiscal 2011 Third Quarter Conference Call May 3, 2011 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: Net Sales Performance
Net Sales Performance From Continuing Operations Q3 2011 Q3 2010 % Change Y/Y ($ in millions) Consolidated Perrigo $ 691.6 $ 537.6 28.6% Consumer Healthcare $ 425.0 $ 377.1 12.7% Nutritionals $ 124.1 $ 58.7 111.3% Rx Pharmaceuticals $ 84.4 $ 50.8 66.1% API $ 41.2 $ 32.8 25.6% 3 Quality, Affordable H
Slide 4: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 13.3% Total OTC & Vitamins (*VMS) -1.7% 2.4% 14.8% Total OTC -3.6% 1.4% 31.5% Analgesics -15.3% -2.2% 13.6% Cough, Cold, Allergy, Sinus -3.5% 0.8% 11.1% Gastrointestinal 1.8% 4.4% 9.8% Smoking Cessation -7.1% 1.2% 7.1% Vitamins (*VMS
Slide 5: GAAP Financials Perrigo Consolidated
GAAP Financials From Continuing Operations Perrigo Consolidated Q3 2011 Q3 2010 % Change Y/Y ($ in millions, except per share amounts) Net Sales $ 692 $ 538 29% Cost of Sales 452 350 29% Gross Profit 239 187 28% Distribution 9 8 8% R&D 24 18 33% SG&A 84 65 29% Restructuring - 7 - Operating Income 12
Slide 6: Adjusted Financials
Adjusted Financials From Continuing Operations Three Months Ended % Change March 26, 2011 March 27, 2010 Year/Year Non-GAAP Non-GAAP As (in millions, except per share amounts) GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 692 $ - $ 692 $ 538 $ - $ 538 29% 29% Cost o
Slide 7: Adjusted Financials Perrigo Consolidated
Adjusted Financials* From Continuing Operations Perrigo Consolidated % Change Change as Q3 2011 Q3 2010 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 692 $ 538 29% Adjusted Cost of Sales 445 346 29% Adjusted Gross Profit 247 192 29% 0 bps Distribution 9 8 8% R&D 24 18 33% Ad
Slide 8: Adjusted Segment Financials Consumer Healthcare
Adjusted Segment Financials* From Continuing Operations Consumer Healthcare Change as a Q3 2011 Q3 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 425 $ 377 13% Adjusted Cost of Sales 289 250 16% Adjusted Gross Profit 136 128 7% -180 bps Adjusted Operating Expenses 62 51 22% Adjusted Operat
Slide 9: Adjusted Segment Financials Nutritionals
Adjusted Segment Financials* From Continuing Operations Nutritionals Change as a Q3 2011 Q3 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 124 $ 59 111% Adjusted Cost of Sales 83 47 75% Adjusted Gross Profit 41 11 263% 1380 bps Adjusted Operating Expenses 17 7 155% Adjusted Operating Incom
Slide 10: Adjusted Segment Financials Rx Pharmaceuticals
Adjusted Segment Financials* From Continuing Operations Rx Pharmaceuticals Change as a Q3 2011 Q3 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 84 $ 51 66% Adjusted Cost of Sales 41 21 93% Adjusted Gross Profit 44 30 47% -670 bps Operating Expenses 10 11 -7% Adjusted Operating Income $ 34
Slide 11: Adjusted Segment Financials API
Adjusted Segment Financials* From Continuing Operations API Change as a Q3 2011 Q3 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 41 $ 33 26% Adjusted Cost of Sales 22 18 22% Adjusted Gross Profit 20 15 30% 160 bps Adjusted Operating Expenses 8 8 -7% Adjusted Operating Income $ 12 $ 7 76%
Slide 12: FY2010 & FY2011 Adjusted Diluted EPS Reconciliation
FY2010 & FY2011 Adjusted Diluted EPS Reconciliation* From Continuing Operations FY 11 Guidance Y/Y Growth Reported Diluted EPS from Continuing Operations Range $3.43 - $3.53 +42% to +46% Deal-related intangible amortization (1,2) 0.352 Charges associated with acquisition costs (2) 0.064 Charge assoc
Slide 13: Perrigo FY11 Revised Guidance
Perrigo FY11 Revised Guidance* From Continuing Operations Consolidated Revenue Growth 20% to 23% from Fiscal 2010 Adj. Consolidated Gross Margin 35% to 36% of Net Sales Adj. Consolidated Operating Margin 19% to 20% of Net Sales Adjusted Diluted EPS $3.90 to $4.00 (29% to 32% Y/Y Growth**) Cash Flow
Slide 14: Fexofenadine Launch Program
Fexofenadine Launch Program At-Launch Web Banners At-Shelf Direct-to- Messaging Consumer Marketing Off-Shelf In-Season Displays Programs Pharmacy Marketing 14 Quality, Affordable Healthcare Products
Slide 15: Paddock Labs Transaction Rationale
Paddock Labs Transaction Rationale Strategic Fit Attractive portfolio of non-commodity Rx products Adds scale to Rx segment – revenues grow >80% – platform for future growth Large pipeline, adds more than 25 ANDAs pending FDA approval including a number of promising products Financially attr
Slide 16: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 17: Table I
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table I (in thousands, except per share amounts) (unaudited) Three Months Ended Consolidated March 26, 2011 March 27, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 691,563 $ - $ 6
Slide 18: Table II
PERRIGO COMPANY REPORTABLE SEGMENTS Table II RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Consumer Healthcare March 26, 2011 March 27, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 425,025 $ - $
Slide 19: Table II (Continued)
REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES Table II (Continued) (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals March 26, 2011 March 27, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 84,383 $ - $ 84,38
Slide 20: Table III
FY 2011 GUIDANCE AND FY 2010 EPS Table III RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* FY11 reported diluted EPS from continuing operations range $3.43 - $3.53 Deal-related amortization (1,2) 0.352 Charges associated with acquisition costs (2) 0.064 Charge associa
Slide 21: Table IV
FY 2011 GUIDANCE Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Consolidated Reported consolidated gross margin range 33.5% - 34.5% Deal-related amortization (1,2) 1.2% Inventory step-up (2) 0.3% Adjusted consolidated gross margin range 35.0% - 36.0% Reporte
Slide 22: Table IV (Continued)
FY 2011 GUIDANCE Table IV (Continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Nutritionals Reported gross margin range 30.6% - 32.6% Deal-related amortization (1) 2.4% Adjusted gross margin range 33.0% - 35.0% Reported operating margin range 13.4% - 14.4% Deal
Slide 23: Table V
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table V (in thousands) (unaudited) 3/26/2011 Total debt $ 891,622 Less: Cash and cash equivalents (223,237) Total net debt 668,385 Total shareholders' equity 1,425,099 Total capital $ 2,093,484 Net debt to total capital ratio 31.9% 23 Quality, Affo