Perrigo Company Plc · NYSE:PRGO
Perrigo — Q4 2011 Earnings Presentation
26 slides from Perrigo's earnings presentation, Aug 16, 2011
Slide 1: Perrigo Fiscal 2011 Fourth Quarter Conference Call
Perrigo Fiscal 2011 Fourth Quarter Conference Call August 16, 2011 1 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 2011 Adjusted Financials
FY 2011 Adjusted Financials* From Continuing Operations Perrigo Consolidated % Change Change as FY 2011 FY 2010 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 2,755 $ 2,268 21.5% Adjusted Cost of Sales 1,779 1,492 19.2% Adjusted Gross Profit 976 776 25.7% 120 bps Adjusted Ope
Slide 4: FY 2011 Performance Review
FY 2011 Performance Review* From Continuing Operations Perrigo Consolidated Original Targets for FY 2011 Actual FY 2011 Consolidated Revenue Growth 20% to 23% from Fiscal 2010 21.5% Adj. Consolidated Operating Margin 17% to 19% of Net Sales 19.6% Rx Revenue Growth 23% to 27% from Fiscal 2010 44.
Slide 5: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 11.1% Total OTC & VMS* -0.9% 2.5% 12.9% Total OTC -2.5% 1.8% 20.6% Analgesics -10.1% -0.7% 14.7% Cough, Cold, Allergy, Sinus -2.2% 2.1% 11.8% Gastrointestinal -0.6% 2.9% 7.8% Smoking Cessation -4.9% 1.4% 3.4% Vitamins (*VMS) 5.4% 4.9
Slide 6: Net Sales Performance
Net Sales Performance From Continuing Operations Q4 2011 Q4 2010 % Change Y/Y ($ in millions) Consolidated Perrigo $ 705 $ 620 13.7% Consumer Healthcare $ 434 $ 399 8.8% Nutritionals $ 123 $ 84 47.0% Rx Pharmaceuticals $ 92 $ 83 11.6% API $ 37 $ 39 -5.6% 6 Quality, Affordable Healthcare Products
Slide 7: GAAP Financials
GAAP Financials From Continuing Operations Perrigo Consolidated Q4 2011 Q4 2010 % Change Y/Y ($ in millions, except per share amounts) Net Sales $ 705 $ 620 14% Cost of Sales 462 422 10% Gross Profit 242 198 22% Distribution 9 7 31% R&D 23 26 -11% SG&A 86 81 6% Write-off of In-Process R&D - 5 -100%
Slide 8: Adjusted Financials
Adjusted Financials From Continuing Operations Three Months Ended % Change Consolidated June 25, 2011 June 26, 2010 % Change (in thousands) Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 704,629 $ - $ 704,629 $ 619,760 $ - $ 619,760 14% 14% Cost
Slide 9: Adjusted Financials
Adjusted Financials* From Continuing Operations Perrigo Consolidated % Change Change as Q4 2011 Q4 2010 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 705 $ 620 14% Adjusted Cost of Sales 454 406 12% Adjusted Gross Profit 251 214 17% 110 bps Distribution 9 7 31% R&D 23 26 -11
Slide 10: Adjusted Segment Financials: Consumer Healthcare
Adjusted Segment Financials* From Continuing Operations Consumer Healthcare Change as a Q4 2011 Q4 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 434 $ 399 9% Adjusted Cost of Sales 299 266 12% Adjusted Gross Profit 134 133 1% -220 bps Adjusted Operating Expenses 57 61 -7% Adjusted Operati
Slide 11: Adjusted Segment Financials: Nutritionals
Adjusted Segment Financials* From Continuing Operations Nutritionals Change as a Q4 2011 Q4 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 123 $ 84 47% Adjusted Cost of Sales 83 58 43% Adjusted Gross Profit 40 26 56% 190 bps Adjusted Operating Expenses 23 14 63% Adjusted Operating Income $
Slide 12: Adjusted Segment Financials: Rx Pharmaceuticals
Adjusted Segment Financials* From Continuing Operations Rx Pharmaceuticals Change as a Q4 2011 Q4 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 92 $ 83 12% Adjusted Cost of Sales 39 50 -21% Adjusted Gross Profit 53 33 61% 1780 bps Adjusted Operating Expenses 12 12 2% Adjusted Operating In
Slide 13: Adjusted Segment Financials: API
Adjusted Segment Financials* From Continuing Operations API Change as a Q4 2011 Q4 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 37 $ 39 -6% Adjusted Cost of Sales 2091% 2262% -8% Adjusted Gross Profit 16 16 -3% 120 bps Adjusted Operating Expenses 9 7 27% Adjusted Operating Income $ 7 $ 9
Slide 14: New Product Innovation
New Product Innovation Publicly disclosed products Potential Rx to OTC switches FY2012 OTC Pipeline FY2012 Rx Pipeline Generic version of Xyzal® Solution $5 billion in branded sales Generic version of Mucinex® Generic version of Duac® Gel potential in the next 3 years Generic version of Prevacid®
Slide 15: FY2011 & FY2012 Adjusted Diluted EPS Reconciliation
FY2011 & FY2012 Adjusted Diluted EPS Reconciliation From Continuing Operations FY 12 Guidance Y/Y Growth Reported Diluted EPS from Continuing Operations Range $3.79 - $3.94 +4% to +8% Deal-related intangible amortization (1) 0.54 Charge associated with inventory step-up 0.11 Charges associated with
Slide 16: Perrigo FY12 Guidance by Segment
Perrigo FY12 Guidance by Segment FY 2012 Consolidated Perrigo Guidance* Revenue growth from fiscal 2011 15% - 18% Adjusted consolidated gross margin range 35% - 38% Adjusted consolidated operating margin range 20% - 22% Consumer Healthcare Revenue growth from fiscal 2011 12% - 14% Adjusted gross mar
Slide 17: Perrigo FY12 Guidance
Perrigo FY12 Guidance* From Continuing Operations Consolidated Revenue Growth 15% to 18% from Fiscal 2011 Adj. Consolidated Gross Margin 35% to 38% of Net Sales Adj. Consolidated Operating Margin 20% to 22% of Net Sales Estimated Effective Worldwide Tax Rate Approximately 29% to 31% Adjusted Diluted
Slide 18: Appendix
Appendix 18 Quality, Affordable Healthcare Products
Slide 19: Table I
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table I (in thousands, except per share amounts) (unaudited) Three Months Ended Consolidated June 25, 2011 June 26, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 704,629 $ - $ 704
Slide 20: Table I (continued)
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table I (continued) (in thousands, except per share amounts) (unaudited) Fiscal Year Ended Consolidated June 25, 2011 June 26, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 2,755,
Slide 21: Table II
PERRIGO COMPANY REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES Table II (in thousands) (unaudited) Three Months Ended Consumer Healthcare June 25, 2011 June 26, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 433,813 $ - $ 4
Slide 22: Table II (Continued)
PERRIGO COMPANY REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES Table II (Continued) (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals June 25, 2011 June 26, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 92,4
Slide 23: Table III
PERRIGO COMPANY FY 2012 GUIDANCE AND FY 2011 EPS Table III RECONCILIATION OF NON-GAAP MEASURES (unaudited) Fiscal 2012 Guidance* FY12 reported diluted EPS from continuing operations range $3.79 - $3.94 Deal-related amortization (1) 0.54 Charge associated with inventory step-up 0.11 Charges associate
Slide 24: Table IV
PERRIGO COMPANY FY 2012 GUIDANCE Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) FY 2012 Consolidated FY12 Guidance Ranges Guidance* Reported consolidated gross margin range 32.7% - 35.7% Deal-related amortization (1) 1.8% Inventory step-up 0.5% Adjusted consolidated gross margin range 35%
Slide 25: Table IV (continued)
PERRIGO COMPANY FY 2012 GUIDANCE Table IV (continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) FY 2012 Nutritionals Guidance* Reported gross margin range 30.7% - 32.7% Deal-related amortization (1) 2.3% Adjusted gross margin range 33% - 35% Reported operating margin range 12.0% - 14.0% Deal-r
Slide 26: Table V
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table V (in thousands) (unaudited) 6/25/2011 Total debt $ 892,770 Less: Cash and cash equivalents (310,104) Total net debt 582,666 Total shareholders' equity 1,530,987 Total capital $ 2,113,653 Net debt to total capital ratio 27.6% 6/26/2010 Total