ALLEGAN, Mich., Aug. 18 /PRNewswire-FirstCall/ -- Perrigo Company today announced results for its fourth quarter and full year ended June 28, 2008.
Perrigo’s Chairman and CEO Joseph C. Papa commented, “For the third quarter in a row, we delivered year over year record sales and earnings. We also generated $248 million in cash from operations for the year. Our team is executing well -- growing market share, managing our supply chain and delivering strong returns. And by bringing innovative new products to market, we continue to make quality healthcare more affordable at a time when consumers need to save money more than ever. We continue to invest in research and development, building our pipeline for future innovation as well.”
The Company’s reported results are summarized in the attached Condensed Consolidated Statements of Income, Balance Sheets and Statements of Cash Flows and include the impact of the January 9, 2008 acquisition of Galpharm Healthcare, Ltd., a leading supplier of over-the-counter store brand pharmaceuticals in the United Kingdom. Refer to Table II at the end of this press release for adjustments in the current year and prior year periods and additional non-GAAP disclosure information.
Fourth Quarter Results
Net sales for the fourth quarter of fiscal 2008 were a record $500.2 million, an increase of $125.9 million, or 34 percent, compared with $374.3 million last year. Reported net income was $27.5 million, or $0.29 per share, compared with net income of $18.8 million, or $0.20 per share a year ago. In the fourth quarters of fiscal 2008 and fiscal 2007, the Company recorded several net of tax charges, summarized as follows (in millions):
Excluding the impact of the charges noted above, adjusted net income for the fourth quarter of fiscal 2008 was $37.5 million, or $0.39 per share. For the fourth quarter of fiscal year 2007, adjusted net income was $22.7 million, or $0.24 per share.
(Refer to Table II at the end of this press release for additional non-GAAP disclosure information.)
Full Year Results
Net sales for the full year ended June 28, 2008 were $1,822.1 million, compared with $1,447.4 million last year, an increase of $375 million, or 26 percent. Reported net income for the full year was $135.8 million, or $1.43 per share, compared with $73.8 million, or $0.79 per share last year. In the full years of fiscal 2008 and fiscal 2007, the Company recorded several net of tax charges, summarized as follows (in millions):
Excluding the impact of the charges noted above, adjusted net income for the full year of fiscal 2008 was $150.1 million, or $1.58 per share. For the full year of fiscal 2007, adjusted net income was $83.1 million, or $0.89 per share.
(Refer to Table II at the end of this press release for additional non-GAAP disclosure information.)
Consumer Healthcare
Consumer Healthcare segment net sales for the quarter were a record $375 million, up $117 million, or 46 percent, compared with $257 million last year. The sales increase included $75 million in new product revenue, led by Omeprazole and Cetirizine, as well as strong sales in the cough/cold, analgesic and smoking cessation product categories. Reported operating income was $52.1 million, compared with $13.8 million last year. Adjusted operating income was $56.9 million, compared with adjusted operating income of $15.7 million a year ago.
For the full year of fiscal 2008, Consumer Healthcare net sales were $1,336.1 million, up $298.8 million, or 29 percent, compared with $1,037.3 million last year. The sales gain was driven by new product sales of $191 million, largely Omeprazole, Cetirizine and smoking cessation products. Reported operating income was $172.7 million, compared with $70.5 million a year ago. Adjusted operating income was $180.7 million, compared with adjusted operating income of $73.4 million last year.
Rx Pharmaceuticals
The Rx Pharmaceutical segment reported fourth quarter net sales of $38.4 million, including $1.4 million of service and royalty revenue. This represents a decrease of $5.7 million, or 13 percent, compared with $44.1 million last year, of which $5.0 million was service and royalty revenue. There was a reported operating loss of $5.8 million as a result of a $10.3 million product-related intangible write-off.
For the full year of fiscal 2008, net sales were $161.3 million, including $24.3 million of service and royalty revenue and an $8.5 million payment for termination of a license agreement, an increase of $23.5 million, or 17 percent, compared with $137.8 million last year, of which $23.5 million was service and royalty revenue. Operating income was $21.4 million, slightly below last year’s $24.0 million.
API
API segment fourth quarter net sales were $38.3 million, compared with $33.6 million last year, an increase of 14 percent. Operating income was $3.8 million, compared with $4.2 million last year. For the full year of fiscal 2008, net sales were $149.6 million, up $27.5 million, or 22 percent, from $122.1 million last year. Operating income was $20.5 million, compared with $19.1 million a year ago.
Other
The Other category, consisting of Israel Consumer Products and Israel Pharmaceutical and Diagnostic Products segments, reported fourth quarter net sales of $48.8 million, compared with $39.3 million a year ago, an increase of 24 percent. Operating income was $2.1 million, compared with $1.1 million last year. For the full year of fiscal 2008, net sales were $175.2 million, up $25 million, or 17 percent, compared with $150.2 million last year. Operating income was $9.0 million, compared with $8.0 million last year.
Outlook
The Company’s expected range of EPS for the full fiscal year 2009 is $1.90 to $1.98 per share. This outlook reflects certain key assumptions, some of which are listed below:
-- Capital expenditures of $55 to $70 million for building manufacturing capacity, training and development facilities and other investments to fuel growth
Perrigo’s Chairman and CEO Joseph C. Papa concluded, “We are very pleased with the results the Company achieved this year. The team’s efforts resulted in the best sales and earnings in our 120 year history. The bar has been raised as we enter 2009, and we look forward to another successful year, growing the business while maintaining our focus on quality.”
Perrigo Company is a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and prescription pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and consumer products. The Company is the world’s largest manufacturer of OTC pharmaceutical products for the store brand market. The Company’s primary markets and locations of manufacturing facilities are the United States, Israel, Mexico and the United Kingdom. Visit Perrigo on the Internet (http://www.perrigo.com).
Note: Certain statements in this press release 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 financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors, including those discussed under “Risk Factors” in the Company’s Form 10-K for the year ended June 28, 2008, as well as the Company’s subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Arthur J. Shannon, Vice President, Investor Relations and
Communication, Perrigo Company, +1-269-686-1709, ajshannon@perrigo.com
Web site: http://www.perrigo.com/
