Revenue increased to $950 million
CARLSBAD, Calif., July 31, 2012 /PRNewswire/ -- Life Technologies Corporation (NASDAQ: LIFE) today announced results for its second quarter ended June 30, 2012. Revenue for the second quarter was $950 million, an increase of 1 percent over the $945 million reported for the second quarter of 2011. Excluding the impact of currency, revenue growth for the quarter was 1 percent compared to the same period of the prior year.
(Logo: http://photos.prnewswire.com/prnh/20110216/MM49339LOGO)
"We finished the first half of 2012 in line with our expectations, as strength in our BioProduction and Ion Torrent businesses enabled us to grow revenue in the second quarter by 5 percent, excluding nearly $40 million in headwinds from expected declines in sales of our SOLiD™ 5500 product and qPCR royalties," said Gregory T. Lucier, chairman and chief executive officer of Life Technologies.
"During the quarter, we continued to deliver on our innovation pipeline, launching new Ion AmpliSeq™ clinical research products, selling a record number of our QuantStudio™ digital qPCR instruments and expanding our capabilities to commercialize novel stem cell technologies. In July, we made significant progress in building out our diagnostics franchise with the tuck-in acquisitions of Navigenics and Pinpoint Genomics, which in combination will allow us to offer a unique lung cancer clinical test to the pathology and oncology community."
"For the second half of 2012, we continue to expect solid growth in our Ion Torrent platform, as we begin shipping Ion Proton™ Sequencers in September, and in our emerging and applied markets. However, based primarily on increased headwinds from currency and an incrementally more conservative outlook for our European operations, we are revising our 2012 guidance. We are now expecting our organic revenue growth to be at the low end of our previously provided range of 2 to 4 percent and non-GAAP earnings per share in a range of $3.90 to $4.00."
Life Technologies reported current quarter results compared to the quarter ended June 30, 2011. Results are non-GAAP unless indicated otherwise. A full reconciliation of the non-GAAP measures to GAAP can be found in the tables of today's press release.
Analysis of Second Quarter 2012 Results
- Second quarter revenue increased 1 percent over the prior year. Revenue growth without the impact from currency was 1 percent.
- Gross margin in the second quarter was 65.4 percent, approximately 120 basis points higher than the same period of the prior year primarily driven by favorable product mix from an expected decline in SOLiD revenue and a benefit from the roll off of currency hedges which were in place last year, partially offset by lower royalty revenue.
- Operating margin was 28.6 percent in the second quarter, approximately 80 basis points higher than the same period of the prior year. Operating margin improvement was primarily due to improved gross margins, partially offset by the company's annual merit and promotion increases and continued investment in Greater China, Ion Torrent and Medical Sciences.
- Second quarter tax rate was 27.6 percent.
- Second quarter EPS increased 8 percent to $0.96 and included a $0.02 impact from weaker foreign exchange rates compared to the company's guidance at March month end rates.
- Diluted weighted shares outstanding were 181.3 million in the second quarter, a decrease of 3.5 million shares over the prior year. The decrease was a result of the continuation of the company's share repurchase program, partially offset by dilution from employee equity programs and issuance of shares associated with Ion Torrent milestone. The company repurchased $150 million or 3.6 million shares through July. Year to date, the company repurchased a total of $335 million or 7.6 million shares.
- Cash flow from operating activities for the second quarter was $256 million. Second quarter capital expenditures were $24 million, resulting in free cash flow of $232 million. The company ended the quarter with $303 million in cash and short-term investments.
Business Group Highlights:
- Research Consumables revenue was $403 million, an increase of 1 percent compared to the prior year. Excluding the impact from currency, revenue for the business group grew 1 percent, as a result of growth in cell culture products, benchtop instruments, and molecular biology consumables.
- Genetic Analysis revenue was $353 million in the second quarter, a decrease of 6 percent over the same period last year. Excluding the impact from currency, revenue decreased 6 percent as a result of an expected $30 million decline in SOLiD instrument sales and an $8 million decline in qPCR royalties, offset by increased sales in Ion Torrent. Excluding the impact of the SOLiD and qPCR royalties, Genetic Analysis increased 5 percent.
- Applied Sciences revenue was $194 million in the second quarter, an increase of 15 percent over the same period last year. Excluding the impact from currency, revenue grew 15 percent, primarily due to increases in BioProduction and Forensics.
- Regional revenue growth rates excluding currency for the quarter compared to the same quarter of the prior year were as follows: the Americas declined 2 percent, Europe grew 1 percent, Asia Pacific grew 17 percent and Japan declined 6 percent. Excluding the decline in SOLiD and qPCR royalty revenues, the Americas grew 2 percent, Europe grew 4 percent, Asia Pacific grew 19 percent and Japan grew 2 percent.
Board of Directors Authorized $750 million Share Repurchase
The company announced that its Board of Directors has approved a share repurchase program, authorizing the company to purchase up to $750 million of its common stock. This is in addition to the approximately $62 million remaining as of July 31, 2012 from existing share repurchase authorizations.
"We remain committed to a balanced capital allocation program that includes returning a significant portion of our free cash flow annually to investors and using the remaining cash flow to support strategic opportunities in key franchises and expansion into new markets," said Gregory T. Lucier, chairman and chief executive officer of Life Technologies. "In 2012, we have already spent $335 million to repurchase shares and are committed to executing on this new authorization beginning in the second half of 2012."
Fiscal Year 2012 Outlook
Subject to the risk factors detailed in the Safe Harbor Statement section of this release, the company is updating its guidance to reflect increased headwinds from foreign exchange rates at June month end rates and an incrementally more conservative outlook to its operations in Europe. The company's updated 2012 guidance is for organic revenue growth at the low end of its previously provided range of 2 to 4 percent over 2011 revenues of $3.7 billion. Additionally, the company is lowering the top end of its range by $0.05 and is now expecting non-GAAP earnings per share in a range of $3.90 to $4.00. The revision to non-GAAP EPS range is based on weaker foreign exchange rates at June month end and the dilution from the recently announced acquisitions of Navigenics, Inc. and Pinpoint Genomics, Inc. The company will provide further detail on its business outlook during the webcast today.
Webcast Details
The company will discuss its financial and business results as well as its business outlook on its webcast at 4:30 PM ET today. This webcast will contain forward-looking information. The webcast will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. For actual results, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the company's financial results determined in accordance with GAAP, as well as other material financial and statistical information to be discussed on the webcast will be posted at the company's investor relations website at https://ir.lifetechnologies.com. The webcast can be accessed through the investor relations page of the company's website at https://ir.lifetechnologies.com/events.cfm. A replay of the webcast will be available on the company's website through Tuesday, August 21, 2012.
About Life Technologies
Life Technologies Corporation (NASDAQ: LIFE) is a global biotechnology company with customers in more than 160 countries using its innovative solutions to solve some of today's most difficult scientific challenges. Quality and innovation are accessible to every lab with its reliable and easy-to-use solutions spanning the biological spectrum with more than 50,000 products for agricultural biotechnology, translational research, molecular medicine and diagnostics, stem cell-based therapies, forensics, food safety and animal health. Its systems, reagents and consumables represent some of the most cited brands in scientific research including: Ion Torrent™, Applied Biosystems®, Invitrogen™, GIBCO®, Ambion®, Molecular Probes®, Novex®, and TaqMan®. Life Technologies employs approximately 10,400 people and upholds its ongoing commitment to innovation with more than 4,000 patents and exclusive licenses. LIFE had sales of $3.7 billion in 2011. Visit us at our website: www.lifetechnologies.com.
Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and Life Technologies intends that such forward-looking statements be subject to the safe harbor created thereby. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of the company. Such forward-looking statements include, but are not limited to, statements relating to financial projections, including revenue and pro forma EPS projections; success of acquired businesses, including cost and revenue synergies; development and increased flow of new products; leveraging technology and personnel; advanced opportunities and efficiencies; opportunities for growth; expectations of prospective new standards, new delivery platforms, and new selling specialization and effectiveness; and corporate strategy and performance. A number of the matters discussed in this press release and presentation that are not historical or current facts deal with potential future circumstances and developments, including future research and development plans. The discussion of such matters is qualified by the inherent risks and uncertainties surrounding future expectations generally and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: volatility of the financial markets; and the risks that are described from time to time in Life Technologies' reports filed with the SEC. This press release and presentation speaks only as of its date, and the company disclaims any duty to update the information herein.
Non-GAAP Measurements
This press release includes certain financial information which constitutes "non-GAAP financial measures" as defined by the SEC. The GAAP measures which are most directly comparable to these measures, as well as a reconciliation of these measures with the most directly comparable GAAP measures, can be found on the investor relations portion of the company's website at www.lifetechnologies.com.
Investor and Financial Contact:
Carol Cox
Investor Relations
(760) 603-7208
[email protected]
|
LIFE TECHNOLOGIES CORPORATION |
||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
|
For the three months |
For the three months |
|||||
|
(in thousands, except per share data) |
ended June 30, 2012 |
ended June 30, 2011 |
||||
|
(unaudited) |
||||||
|
Revenues |
$ 949,309 |
$ 941,135 |
||||
|
Cost of revenues |
328,359 |
340,075 |
||||
|
Purchased intangibles amortization |
75,961 |
76,476 |
||||
|
Gross profit |
544,989 |
524,584 |
||||
|
Gross margin |
57.4% |
55.7% |
||||
|
Operating expenses: |
||||||
|
Selling, general and administrative |
266,049 |
254,764 |
||||
|
Research and development |
84,816 |
91,085 |
||||
|
Business consolidation costs |
9,429 |
18,666 |
||||
|
Total operating expenses |
360,294 |
364,515 |
||||
|
Operating income |
184,695 |
160,069 |
||||
|
Operating margin |
19.5% |
17.0% |
||||
|
Interest income |
515 |
1,153 |
||||
|
Interest expense |
(29,237) |
(42,774) |
||||
|
Other expense, net |
(2,600) |
(3,589) |
||||
|
Total other expense, net |
(31,322) |
(45,210) |
||||
|
Income from operations before provision for |
||||||
|
income taxes |
153,373 |
114,859 |
||||
|
Income tax provision |
(31,070) |
(19,646) |
||||
|
Net income |
122,303 |
95,213 |
||||
|
Net loss attributable to non-controlling interests |
51 |
253 |
||||
|
Net income attributable to controlling interest |
$ 122,354 |
$ 95,466 |
||||
|
Effective tax rate |
20.3% |
17.1% |
||||
|
Add back interest expense for subordinated |
||||||
|
debt, net of tax |
- |
33 |
||||
|
Numerator for diluted earnings |
||||||
|
per share |
$ 122,354 |
$ 95,499 |
||||
|
Earnings per common share: |
||||||
|
Basic earnings per share attributable to controlling interest |
$ 0.69 |
$ 0.53 |
||||
|
Diluted earnings per share attributable to controlling interest |
$ 0.67 |
$ 0.52 |
||||
|
Weighted average shares used in per share calculation: |
||||||
|
Basic |
178,168 |
179,031 |
||||
|
Diluted |
181,307 |
184,761 |
||||
|
LIFE TECHNOLOGIES CORPORATION |
||||||||
|
ITEMIZED RECONCILIAITON BETWEEN |
||||||||
|
GAAP AND NON-GAAP NET INCOME |
||||||||
|
For the three months |
For the three months |
|||||||
|
(in thousands, except per share data) |
ended June 30, 2012 |
ended June 30, 2011 |
||||||
|
(unaudited) |
||||||||
|
GAAP net income |
$ 122,303 |
$ 95,213 |
||||||
|
Non-GAAP revenue adjustments |
||||||||
|
Purchase accounting related adjustments |
278 |
801 |
||||||
|
Charges on a discontinued product |
- |
2,837 |
||||||
|
Total Non-GAAP revenue adjustments |
278 |
(1) |
3,638 |
(1) |
||||
|
Non-GAAP cost of revenues and purchased intangible adjustments |
||||||||
|
Purchased intangibles amortization |
75,961 |
76,476 |
||||||
|
Charges on a discontinued product |
- |
2,094 |
||||||
|
Total Non-GAAP cost of revenues and purchased intangible adjustments |
75,961 |
(2) |
78,570 |
(2) |
||||
|
Non-GAAP Operating Expense Adjustments: |
||||||||
|
Purchase accounting related adjustments |
923 |
1,921 |
||||||
|
Business consolidation costs |
9,429 |
18,666 |
||||||
|
Total Non-GAAP Operating Expense Adjustments |
10,352 |
(3) |
20,587 |
(3) |
||||
|
Non-GAAP Other Expense Adjustments: |
||||||||
|
Noncash interest expense charges |
- |
8,833 |
||||||
|
Other expense |
5 |
- |
||||||
|
Total Non-GAAP Other Expense Adjustments |
5 |
(4) |
8,833 |
(4) |
||||
|
Non-GAAP Income Tax Provision Adjustments: |
||||||||
|
Income tax adjustments |
(35,053) |
(5) |
(43,434) |
(5) |
||||
|
Total Non-GAAP Income Tax Provision Adjustments |
(35,053) |
(43,434) |
||||||
|
Non-GAAP Net Income |
$ 173,846 |
$ 163,407 |
||||||
|
Non-GAAP loss attributable to controlling interest |
51 |
(6) |
148 |
(6) |
||||
|
Non-GAAP Net Income Attributable to Controlling Interest |
$ 173,897 |
$ 163,555 |
||||||
|
Add back of interest expense for subordinated debt, net of tax |
- |
33 |
||||||
|
Non-GAAP Numerator for diluted earnings per share |
$ 173,897 |
$ 163,588 |
||||||
|
Non-GAAP Earnings per common share: |
||||||||
|
Basic earnings per share attributable to controlling interest |
$ 0.98 |
$ 0.91 |
||||||
|
Diluted earnings per share attributable to controlling interest |
$ 0.96 |
$ 0.89 |
||||||
|
Weighted average shares used in per share calculation: |
||||||||
|
Basic |
178,168 |
179,031 |
||||||
|
Diluted |
181,307 |
184,761 |
||||||
|
Summary of Reconciliation between GAAP and Non-GAAP Net Income |
||||||||
|
For the three months ended June 30, 2012, Non-GAAP earnings resulted in total revenue of $949.6 million, gross profit of $621.2 million with gross margin of 65.4%, operating profit of $271.3 million with operating margin of 28.6%, and an income tax provision of $66.1 million with the Non-GAAP effective tax rate of 27.6% with the above adjustments. |
||||||||
|
For the three months ended June 30, 2011, Non-GAAP earnings resulted in total revenue of $944.8 million, gross profit of $606.8 million with gross margin of 64.2%, operating profit of $262.9 million with operating margin of 27.8%, and an income tax provision of $63.1 million with the Non-GAAP effective tax rate of 27.9% with the above adjustments. |
||||||||
|
Notes |
||||||||
|
(1) |
Add back purchased deferred revenue of $0.3 million and $0.8 million for the three months ended June 30, 2012 and 2011, respectively, and add back revenue related to returns of a discontinued product of $2.8 million for the three months ended June 30, 2011. |
|||||||
|
(2) |
Add back amortization of purchased intangibles of $76.0 million and $76.5 million for the three months ended June 30, 2012 and 2011, respectively, and add back charges for inventory reserves related to a discontinued product of $2.1 million for the three months ended June 30, 2011. |
|||||||
|
(3) |
Add back depreciation of purchase accounting property, plant, and equipment revaluation of $0.9 million and $1.9 million, and business consolidation costs including restructuring and integrating acquired entities, aligning acquired and existing operations through business transformation activities and costs associated with divesting entities of $9.4 million and $18.7 million for the three months ended June 30, 2012 and 2011, respectively. |
|||||||
|
(4) |
Add back charges related to non-cash interest expense for senior convertible debts of $7.3 million and imputed finance charge of $1.5 million associated with contingent consideration on business acquisitions for the three months ended June 30, 2011, and other non-recurring charges for the three months ended June 30, 2012. |
|||||||
|
(5) |
Non-GAAP tax adjustment due to the exclusion of the aforementioned business combination related charges, non cash charges, and one-time costs which are not indicative of the profitability or cash flows of the Company's ongoing or future operations. These deductions produce a GAAP only tax benefit which is added back for Non-GAAP presentation. |
|||||||
|
(6) |
Non-GAAP net loss attributable to non-controlling interest, net of tax benefit, adjusted for noncash charges for purchase accounting property, plant, and equipment revaluation, net of tax benefit. |
|||||||
|
The Company reports Non-GAAP results which excludes costs that are not indicative of the profitability or cash flows of the Company's ongoing or future operations. Such costs are restructuring cost, business transformation expenses, amortization and depreciation of deferred revenue, intangibles assets, and fixed assets, and revaluation charges for inventories, contingent consideration liabilities, asset impairments, and in process research and development expenses, incurred as a result of business combinations as well as the impact from the divestiture and discontinuance of product lines. The Company also excludes noncash interest expense associated with convertible debt bifurcation and noncash charges associated with non-controlling interests. In addition, the Company excludes one-time costs including the early repayment of debt and the associated impacts, and the impact of certain settlements in order to provide a supplemental comparison of the results of operations. |
||||||||
|
LIFE TECHNOLOGIES CORPORATION |
||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
|
For the six months |
For the six months |
|||||
|
(in thousands, except per share data) |
ended June 30, 2012 |
ended June 30, 2011 |
||||
|
(unaudited) |
||||||
|
Revenues |
$ 1,888,423 |
$ 1,837,029 |
||||
|
Cost of revenues |
642,041 |
640,778 |
||||
|
Purchased intangibles amortization |
148,066 |
152,627 |
||||
|
Gross profit |
1,098,316 |
1,043,624 |
||||
|
Gross margin |
58.2% |
56.8% |
||||
|
Operating expenses: |
||||||
|
Selling, general and administrative |
519,447 |
507,606 |
||||
|
Research and development |
173,413 |
183,859 |
||||
|
Business consolidation costs |
23,696 |
33,349 |
||||
|
Total operating expenses |
716,556 |
724,814 |
||||
|
Operating income |
381,760 |
318,810 |
||||
|
Operating margin |
20.2% |
17.4% |
||||
|
Interest income |
1,279 |
2,040 |
||||
|
Interest expense |
(64,975) |
(85,919) |
||||
|
Other expense, net |
(8,316) |
(4,941) |
||||
|
Total other expense, net |
(72,012) |
(88,820) |
||||
|
Income from operations before provision for |
||||||
|
income taxes |
309,748 |
229,990 |
||||
|
Income tax provision |
(54,806) |
(41,198) |
||||
|
Net income |
254,942 |
188,792 |
||||
|
Net loss attributable to non-controlling interests |
51 |
361 |
||||
|
Net income attributable to controlling interest |
$ 254,993 |
$ 189,153 |
||||
|
Effective tax rate |
17.7% |
17.9% |
||||
|
Add back interest expense for subordinated |
||||||
|
debt, net of tax |
12 |
66 |
||||
|
Numerator for diluted earnings |
||||||
|
per share |
$ 255,005 |
$ 189,219 |
||||
|
Earnings per common share: |
||||||
|
Basic earnings per share attributable to controlling interest |
$ 1.43 |
$ 1.05 |
||||
|
Diluted earnings per share attributable to controlling interest |
$ 1.40 |
$ 1.02 |
||||
|
Weighted average shares used in per share calculation: |
||||||
|
Basic |
178,521 |
179,698 |
||||
|
Diluted |
182,210 |
185,513 |
||||
|
LIFE TECHNOLOGIES CORPORATION |
||||||||
|
ITEMIZED RECONCILIAITON BETWEEN |
||||||||
|
GAAP AND NON-GAAP NET INCOME |
||||||||
|
For the six months |
For the six months |
|||||||
|
(in thousands, except per share data) |
ended June 30, 2012 |
ended June 30, 2011 |
||||||
|
(unaudited) |
||||||||
|
GAAP net income |
$ 254,942 |
$ 188,792 |
||||||
|
Non-GAAP revenue adjustments |
||||||||
|
Purchase accounting related adjustments |
642 |
1,731 |
||||||
|
Charges on a discontinued product |
(457) |
2,836 |
||||||
|
Total Non-GAAP revenue adjustments |
185 |
(1) |
4,567 |
(1) |
||||
|
Non-GAAP cost of revenues and purchased intangible adjustments |
||||||||
|
Purchased intangibles amortization |
148,066 |
152,627 |
||||||
|
Purchase accounting related adjustments |
- |
(1,372) |
||||||
|
Charges on a discontinued product |
- |
2,094 |
||||||
|
Settlement of historical portion of licensing dispute |
(169) |
- |
||||||
|
Total Non-GAAP cost of revenues and purchased intangible adjustments |
147,897 |
(2) |
153,349 |
(2) |
||||
|
Non-GAAP Operating Expense Adjustments: |
||||||||
|
Purchase accounting related adjustments |
1,849 |
5,519 |
||||||
|
Business consolidation costs |
23,696 |
33,349 |
||||||
|
Settlement of historical portion of licensing dispute |
(934) |
- |
||||||
|
Total Non-GAAP Operating Expense Adjustments |
24,611 |
(3) |
38,868 |
(3) |
||||
|
Non-GAAP Other Expense Adjustments: |
||||||||
|
Noncash interest expense charges |
5,382 |
17,558 |
||||||
|
Other expense |
5,302 |
- |
||||||
|
Total Non-GAAP Other Expense Adjustments |
10,684 |
(4) |
17,558 |
(4) |
||||
|
Non-GAAP Income Tax Provision Adjustments: |
||||||||
|
Income tax adjustments |
(83,128) |
(5) |
(81,999) |
(5) |
||||
|
Total Non-GAAP Income Tax Provision Adjustments |
(83,128) |
(81,999) |
||||||
|
Non-GAAP Net Income |
$ 355,191 |
$ 321,135 |
||||||
|
Non-GAAP loss attributable to controlling interest |
51 |
(6) |
158 |
(6) |
||||
|
Non-GAAP Net Income Attributable to Controlling Interest |
$ 355,242 |
$ 321,293 |
||||||
|
Add back interest expense for subordinated debt, net of tax |
12 |
66 |
||||||
|
Non-GAAP Numerator for diluted earnings per share |
$ 355,254 |
$ 321,359 |
||||||
|
Non-GAAP Earnings per common share: |
||||||||
|
Basic earnings per share attributable to controlling interest |
$ 1.99 |
$ 1.79 |
||||||
|
Diluted earnings per share attributable to controlling interest |
$ 1.95 |
$ 1.73 |
||||||
|
Weighted average shares used in per share calculation: |
||||||||
|
Basic |
178,521 |
179,698 |
||||||
|
Diluted |
182,210 |
185,513 |
||||||
|
Summary of Reconciliation between GAAP and Non-GAAP Net Income |
||||||||
|
For the six months ended June 30, 2012, Non-GAAP earnings resulted in total revenue of $1.9 billion, gross profit of $1.2 billion with gross margin of 66.0%, operating profit of $554.5 million with operating margin of 29.4%, and an income tax provision of $137.9 million with the Non-GAAP effective tax rate of 28.0% with the above adjustments. |
||||||||
|
For the six months ended June 30, 2011, Non-GAAP earnings resulted in total revenue of $1.8 billion, gross profit of $1.2 billion with gross margin of 65.2%, operating profit of $515.6 million with operating margin of 28.0%, and an income tax provision of $123.2 million with the Non-GAAP effective tax rate of 27.7% with the above adjustments. |
||||||||
|
Notes |
||||||||
|
(1) |
Add back purchased deferred revenue of $0.6 million and adjust for revenue related to a discontinued product of $0.5 million for the six months ended June 30, 2012. Add back purchased deferred revenue of $1.7 million and revenue related to returns of a discontinued product of $2.8 million for the six months ended June 30, 2011. |
|||||||
|
(2) |
Add back amortization of purchased intangibles of $148.1 million and adjust for $0.2 million related to the historical portion of the settlement of a licensing dispute for the six months ended June 30, 2012. Add back amortization of purchased intangibles of $152.6 million, charges for inventory reserves related to a discontinued product of $2.1 million, and purchase accounting related cost of revenue revaluation of $0.5 million which was offset by contingent consideration revaluation of $1.9 million for the six months ended June 30, 2011. |
|||||||
|
(3) |
Add back depreciation of purchase accounting property, plant, and equipment revaluation of $1.8 million and $5.5 million, and business consolidation costs including restructuring and integrating acquired entities, aligning acquired and existing operations through business transformation activities and costs associated with divesting entities of $23.7 million and $33.3 million for the six months ended June 30, 2012 and 2011, respectively. Adjust for compensation cost of $0.9 million related to the historical portion of the settlement of a licensing dispute for the six months ended June 30, 2012. |
|||||||
|
(4) |
Add back charges associated with a divestiture activity of $5.3 million, charges related to non-cash interest expense for senior convertible debts of $1.7 million and the extinguishment of a line of credit facility of $3.7 million for the six months ended June 30, 2012. Add back charges related to non-cash interest expense for senior convertible debts of $14.5 million and charges for imputed finance charge of $3.1 million associated with contingent consideration on business acquisitions for the six months ended June 30, 2011. |
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|
(5) |
Non-GAAP tax adjustment due to the exclusion of the aforementioned business combination related charges, non cash charges, and one-time costs which are not indicative of the profitability or cash flows of the Company's ongoing or future operations. These deductions produce a GAAP only tax benefit which is added back for Non-GAAP presentation. |
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|
(6) |
Non-GAAP net loss attributable to non-controlling interest, net of tax benefit, adjusted for noncash charges for purchase accounting property, plant, and equipment revaluation, net of tax benefit. |
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|
The Company reports Non-GAAP results which excludes costs that are not indicative of the profitability or cash flows of the Company's ongoing or future operations. Such costs are restructuring cost, business transformation expenses, amortization and depreciation of deferred revenue, intangibles assets, and fixed assets, and revaluation charges for inventories, contingent consideration liabilities, asset impairments, and in process research and development expenses, incurred as a result of business combinations as well as the impact from the divestiture and discontinuance of product lines. The Company also excludes noncash interest expense associated with convertible debt bifurcation and noncash charges associated with non-controlling interests. In addition, the Company excludes one-time costs including the early repayment of debt and the associated impacts, and the impact of certain settlements in order to provide a supplemental comparison of the results of operations. |
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|
LIFE TECHNOLOGIES CORPORATION |
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|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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|
For the six months |
||||
|
ended June 30, |
||||
|
(in thousands)(unaudited) |
2012 |
2011 |
||
|
Net income |
$ 254,942 |
$ 188,792 |
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|
Add back amortization and |
||||
|
share-based compensation |
197,206 |
200,391 |
||
|
Add back depreciation |
62,005 |
60,366 |
||
|
Balance sheet changes |
(46,413) |
(103,168) |
||
|
Other noncash adjustments |
(107,773) |
(26,842) |
||
|
Net cash provided by operating activities |
359,967 |
319,539 |
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|
Capital expenditures |
(48,747) |
(33,799) |
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|
Free cash flow |
311,220 |
285,740 |
||
|
Net cash used in investing activities |
(61,101) |
(50,101) |
||
|
Net cash used in financing activities |
(822,918) |
(543,721) |
||
|
Effect of exchange rate changes on cash |
(5,995) |
14,641 |
||
|
Net decrease in cash and cash equivalents |
$ (578,794) |
$ (293,441) |
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|
LIFE TECHNOLOGIES CORPORATION |
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|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
|
June 30, |
December 31, |
|||
|
(in thousands) |
2012 |
2011 |
||
|
ASSETS |
(unaudited) |
|||
|
Current assets: |
||||
|
Cash and short-term investments |
$ 303,450 |
$ 881,994 |
||
|
Trade accounts receivable, net of allowance for doubtful accounts |
630,436 |
636,998 |
||
|
Inventories |
395,808 |
377,866 |
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|
Prepaid expenses and other current assets |
209,113 |
196,759 |
||
|
Total current assets |
1,538,807 |
2,093,617 |
||
|
Long-term assets |
6,943,203 |
7,094,346 |
||
|
Total assets |
$ 8,482,010 |
$ 9,187,963 |
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
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|
Current liabilities: |
||||
|
Current portion of long-term debt |
$ 252,677 |
$ 450,839 |
||
|
Short-term borrowings |
100,000 |
- |
||
|
Accounts payable, accrued expenses and other current liabilities |
662,298 |
1,045,467 |
||
|
Total current liabilities |
1,014,975 |
1,496,306 |
||
|
Long-term debt |
2,047,280 |
2,297,653 |
||
|
Other long-term liabilities |
727,909 |
794,778 |
||
|
Stockholders' equity |
4,691,846 |
4,599,226 |
||
|
Total liabilities and stockholders' equity |
$ 8,482,010 |
$ 9,187,963 |
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SOURCE Life Technologies Corporation