Perrigo Company plc · NYSE:PRGO
Perrigo — Q4 2010 Earnings Presentation
24 slides from Perrigo's earnings presentation, Aug 12, 2010
Slide 1: Perrigo 2010 Fourth Quarter Conference Call
Perrigo 2010 Fourth Quarter Conference Call August 12, 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: FY 2010 Adjusted Financials - From Continuing Operations
FY 2010 Adjusted Financials* - From Continuing Operations Perrigo Consolidated % Change Change as FY 2010 FY 2009 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 2,269 $ 2,007 13% Adjusted Cost of Sales 1,512 1,406 8% Adjusted Gross Profit 757 601 26% +350 bps Adjusted Operati
Slide 4: FY 2010 Performance Review
FY 2010 Performance Review* - From Continuing Operations Original Targets for FY 2010 Actual FY 2010 Consolidated Revenue Growth 4% to 6% from Fiscal 2009 13.1% Adj. Consolidated Operating Margin 13% to 14% of Net Sales 16.9% CHC Revenue Growth 6% to 8% from Fiscal 2009 11.9% Operating Cash Fl
Slide 5: All Category Update
All Category Update 52 Weeks Store Brand National Brand Category 13.2% Total OTC & Vitamins (*VMS) -0.5% 3.0% 13.7% Total OTC -3.4% 1.0% 18.2% Analgesics -8.2% -1.5% 11.3% Cough, Cold, Allergy, Sinus -3.0% 0.3% 15.7% Gastrointestinal 1.7% 5.3% 7.6% Smoking Cessation -9.3% -1.6% 11.5% Vitamins (*VMS)
Slide 6: GAAP Financials - From Continuing Operations
GAAP Financials - From Continuing Operations Perrigo Consolidated Q4 2010 Q4 2009 % Change ($ in millions, except per share amounts) Y/Y Net Sales $ 619 $ 508 22% Cost of Sales 420 344 22% Gross Profit 199 164 22% Distribution 7 6 21% SG&A 82 66 24% R&D 26 22 18% Write-off of IPR&D 5 - - Restructuri
Slide 7: Adjusted Financials - From Continuing Operations
Adjusted Financials* – From Continuing Operations % Change Q4 2010 Q4 2009 ($ in millions, except per share data) Y/Y Net Sales $ 619.4 $ 508.2 22% Reported Gross Profit $ 199.2 $ 163.9 22% Inventory step-ups 9.9 - Adjusted Gross Profit $ 209.1 $ 163.9 28% Reported Operating Income $ 77.6 $ 55.5 40%
Slide 8: Adjusted Financials - Perrigo Consolidated
Adjusted Financials* - From Continuing Operations Perrigo Consolidated % Change Change as Q4 2010 Q4 2009 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 619 $ 508 22% Adjusted Cost of Sales 410 344 19% Adjusted Gross Profit 209 164 28% +160 bps Adjusted Operating Expenses 109
Slide 9: Adjusted Segment Financials - Consumer Healthcare
Adjusted Segment Financials* - From Continuing Operations Consumer Healthcare % Change Change as Q4 2010 Q4 2009 ($ in millions) Y/Y a % to sales Net Sales $ 481 $ 407 18% Adjusted Cost of Sales 327 287 14% Adjusted Gross Profit 154 120 29% +270 bps Operating Expenses 78 64 22% Adjusted Operating In
Slide 10: Adjusted Segment Financials - Rx Pharmaceuticals
Adjusted Segment Financials* - From Continuing Operations Rx Pharmaceuticals % Change Change as Q4 2010 Q4 2009 ($ in millions) Y/Y a % to sales Net Sales $ 84 $ 49 72% Cost of Sales 51 28 83% Gross Profit 33 21 58% -360 bps Adjusted Operating Expenses 12 9 29% Adjusted Operating Income $ 22 $ 12 79
Slide 11: Adjusted Segment Financials - API
Adjusted Segment Financials* - From Continuing Operations API % Change Change as Q4 2010 Q4 2009 ($ in millions) Y/Y a % to sales Net Sales $ 38 $ 39 -2% Cost of Sales 22 22 2% Gross Profit 16 17 -8% -240 bps Adjusted Operating Expenses 7 8 -5% Adjusted Operating Income $ 8 $ 9 -10% -170 bps Margin
Slide 12: FY 2010 & 2011 New Adjusted Diluted EPS Bridge
FY 2010 & 2011 New Adjusted Diluted EPS Bridge* - From Continuing Operations FY 10 Actual FY 11 Guidance Y/Y Growth Reported Diluted EPS from Continuing Operations $ 2.41 $3.08 - $3.28 +28% to 36% Charges associated with inventory step-ups 0.07 - Charges associated with acquired research and develop
Slide 13: FY 2011 Consolidated Adjusted Guidance
FY 2011 Consolidated Adjusted Guidance* - From Continuing Operations $ in millions, except per share amounts FY 2010 FY 2011 Consolidated FY11 Guidance Ranges Consolidated Consolidated Net Sales $ 2,269 +20% to +23% Reported Gross Margin 32.9% 33.0% - 34.0% Adjusted Gross Margin 33.4% N/A Amortizati
Slide 14: FY 2011 Segment Adjusted Guidance
FY 2011 Segment Adjusted Guidance* - From Continuing Operations $ in millions, except per share amounts CHC FY11 Guidance Ranges FY 2010 FY 2011 Net Sales $ 1,833.0 +21% to +23% Reported Gross Margin 30.6% 31.3% - 32.3% Adjusted Gross Margin 31.2% N/A Amortization Impact 0.3% 0.7% Adj. Gross Margin
Slide 15: FY 2011 Segment Adjusted Guidance
FY 2011 Segment Adjusted Guidance* - From Continuing Operations $ in millions, except per share amounts API FY11 Guidance Ranges FY 2010 FY 2011 Net Sales $ 139.3 +0% to +2% Reported Gross Margin 39.4% 37.1% - 39.1% Amortization Impact 1.4% 1.4% Adj. Gross Margin excl. Amortization 40.9% 38.5% - 40.
Slide 16: Perrigo FY11 Guidance
Perrigo FY11 Guidance* - From Continuing Operations Consolidated Revenue Growth 20% to 23% from Fiscal 2010 Consumer Healthcare Revenue Growth 21% to 23% from Fiscal 2010 Adj. Consolidated Operating Margin 17% to 19% of Net Sales Adj. EPS from Continuing Operations $3.40 to $3.60 (12% to 18% Y/Y Gro
Slide 17: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 18: Table I: Segment Information
Table I PERRIGO COMPANY SEGMENT INFORMATION (in thousands) (unaudited) Fourth Quarter* Fiscal Year* 2010 2009 2010 2009 Segment Net Sales Consumer Healthcare $ 481,001 $ 407,009 $ 1,833,023 $ 1,638,770 Rx Pharmaceuticals 84,148 48,840 237,648 164,163 API 37,993 38,940 139,287 136,002 Other 16,253 13
Slide 19: Table II: Reconciliation of Non-GAAP Measures
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) Table II (unaudited) Fourth Quarter* Fiscal Year* 2010 2009 % Chng 2010 2009 % Chng Net sales $ 619,395 $ 508,209 22% $ 2,268,870 $ 2,006,862 13% Reported gross profit $ 199,211 $ 163,853 22% $ 746,016 $ 595
Slide 20: Table II Continued
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table II Continued (in thousands, except per share amounts) (unaudited) Fourth Quarter* Fiscal Year* 2010 2009 % Chng 2010 2009 % Chng Reported income from continuing operations $ 49,698 $ 32,280 54% $ 224,097 $ 141,098 59% Inventory step-ups (1) 6
Slide 21: Table II Continued: Reportable Segments
REPORTABLE SEGMENTS (in thousands) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Table II Continued 2010 Fourth Quarter* 2009 % Chng 2010 Fiscal Year* 2009 % Chng Consumer Healthcare Net sales $ 481,001 $ 407,009 18% $ 1,833,023 $ 1,638,770 12% Reported gross profit $ 144,377 $ 119,784 21% $ 561,4
Slide 22: Table III
Table III PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Fourth Quarter* Adjustment - Adjustment - Fourth Quarter* Reported Cost of Sales Inventory Step-Ups Fixed Asset Impairment Adjusted Cost of Sales 2010 2009 2010 2009 2010 2009 2010 2009 % Change Segments Consume
Slide 23: Table IV
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table IV (dollars in thousands) (unaudited) Perrigo LTM PBM LTM 12/26/2009 12/31/2009 Total Net cash from operating activities $ 381,858 $ 59,493 $ 441,351 Changes in operating assets and liabilities, net of asset and business acquisitions (86,453)
Slide 24: Table V: FY 2011 Guidance and FY 2010 EPS
Table V FY 2011 GUIDANCE AND FY 2010 EPS RECONCILIATION OF NON-GAAP MEASURES (unaudited) Fiscal 2011* Guidance FY11 reported diluted EPS from continuing operations range $3.08 - $3.28 Deal-related amortization (1) 0.32 FY11 adjusted diluted EPS from continuing operations range $3.40 - $3.60 Fiscal 2