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Company Tech News as it Breaks
Life Technologies Announces Fourth Quarter and Fiscal 2012 Results
Submitted by admin on 2/4/2013 @ 1:01 PM
Companies mentioned in this article:
Life Technologies Corporation
CARLSBAD, Calif., Feb. 4, 2013 /PRNewswire/ -- Life Technologies Corporation (NASDAQ: LIFE) today announced results for its fourth quarter for the year ended Dec. 31, 2012. Non-GAAP revenue for the fourth quarter was $999 million, an increase of 3 percent over the $970 million reported for the fourth quarter of 2011. Excluding the impact of currency, revenue growth for the quarter was 4.5 percent compared to the same period of the prior year. Full year 2012 revenue was $3.8 billion, an increase of 2 percent over 2011. Excluding currency, revenue growth was also about 2.2 percent over the prior year.
(Logo: http://photos.prnewswire.com/prnh/20110216/MM49339LOGO)
"We started the year with a promise to our shareholders to grow our underlying business, invest in growth markets and regions, deliver on a balanced capital deployment strategy and introduce innovative new products to serve our customers even better. I am extremely pleased that our team remained focused and delivered against this promise, growing revenue and earnings for the thirteenth year in a row," said Gregory T. Lucier, chairman and chief executive officer of Life Technologies.
"We finished the year strong with fourth quarter revenue growth ahead of our expectations at 4.5 percent driven by strength in our Ion Torrent business, which recorded its highest revenue quarter ever. We also achieved a solid return to growth in our Research Consumables business and continued strong performance in our Bioproduction business. We expect the strength we saw across all regions and end markets as we exited 2012, including continued double digit growth in emerging markets, to provide momentum in 2013."
"With $662 million in free cash flow, we were able to return a significant amount of capital to shareholders. We ended the year having repurchased $635 million, or 13.8 million shares in total, well above our 50 percent target. Additionally, we have already repurchased $105 million, or 2 million shares, year-to-date in 2013."
"Looking ahead to 2013, we expect another significant increase in our Ion Torrent business sales for the third consecutive year and expansion in our applied and emerging markets to drive revenue growth of 3 to 5 percent over 2012 results of $3.8 billion. If sequestration is implemented, we estimate it would reduce our revenue by approximately 1 percent and we would expect to be at the low end of our guidance range, at 3 percent growth for 2013. We are guiding to non-GAAP EPS in a range of $4.30 to $4.45, which would result in 8 to 12 percent growth over 2012 results."
Life Technologies reported results compared to the quarter and fiscal year ended Dec. 31, 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 Fourth Quarter and Fiscal 2012 Results
-- Fourth quarter revenue increased 3 percent over the prior year, or 4.5
percent excluding the impact of currency. Full year 2012 revenue
increased 2 percent to $3.8 billion. Revenue growth for the quarter and
the full year were driven by strong sales from the Ion Torrent business
and growth in the company's Research Consumables and Bioproduction
businesses, partially offset by expected declines in SOLiD(®) sales and
qPCR royalty revenue.
-- Gross margin in the fourth quarter was 64.6 percent, a 20 basis point
increase compared to the same period of the prior year primarily driven
by manufacturing productivity, partially offset by a higher mix of
instrument sales and unfavorable currency rates. Full year gross margin
was 65.6 percent, an increase of 40 basis points, primarily due to
improved product mix and higher realized price, offset by the decrease
in qPCR royalties and unfavorable currency rates.
-- Operating margin was 29.9 percent in the fourth quarter, approximately
70 basis points lower than the same period of the prior year. Operating
margin was primarily impacted by unfavorable currency rates and expenses
related to our acquisitions in molecular diagnostics. Full year
operating margin increased 20 basis points to 29.2 percent. The increase
was driven primarily by an increase in gross margins and improvement in
currency, partially offset by higher expenses related to our
acquisitions in molecular diagnostics.
-- The tax rate was 27.2 percent for the fourth quarter and 27.6 percent
for the full year.
-- Fourth quarter EPS increased 6 percent to $1.11. Full year EPS increased
7 percent to $3.98. Fourth quarter and the full year were negatively
impacted by $(0.03) due to the timing of the 2012 federal R&D tax credit
benefit being moved from the fourth quarter of 2012 to 2013. The
company's fourth quarter and full year 2012 guidance had assumed the
reinstatement and benefit of the federal R&D tax credit by the end of
2012.
-- Diluted weighted shares outstanding were 175.8 million in the fourth
quarter, a decrease of 8.8 million shares over the prior year. The
decrease was a result of the continuation of the company's share
repurchase program, partially offset by shares issued for employee stock
plans. The company repurchased $100 million or 2.0 million shares in the
fourth quarter.
-- Cash flow from operating activities for the fourth quarter was $221
million. Fourth quarter capital expenditures were $48 million, resulting
in free cash flow of $173 million. The company ended the quarter with
$276 million in cash and short-term investments.
Business Group Highlights
-- Research Consumables revenue was $409 million in the fourth quarter, an
increase of 2 percent compared to the prior year. Excluding the impact
from currency, revenue for the business group grew 4 percent. Full year
revenue increased 1 percent to $1.6 billion, or 2 percent excluding the
impact from currency. Growth for the quarter and full year was mainly
driven by strong performance in our cell culture, sample prep and
benchtop products.
-- Genetic Analysis revenue was $401 million in the fourth quarter, an
increase of 2 percent over the same period last year. Excluding the
impact from currency, revenue increased 4 percent. Full year revenue was
flat at approximately $1.5 billion, or up 1 percent excluding the impact
from currency. Growth for the quarter and the full year was primarily
driven by a substantial increase in our Ion Torrent business, including
sales of the Ion PGM((TM)) instruments and Ion Proton((TM)) System,
partially offset by an expected decline in SOLiD instrument sales and in
qPCR royalty revenue.
-- Applied Sciences revenue was $190 million in the fourth quarter, an
increase of 8 percent over the same period last year. Excluding the
impact from currency, revenue increased 10 percent. Full year revenue
increased 7 percent to $719 million, or 8 percent excluding the impact
from currency. Growth for the quarter was primarily driven by increased
sales in Bioproduction and Forensics products. Growth for the full year
was primarily driven by increased sales in Bioproduction.
-- Regional revenue growth rates excluding currency for the fourth quarter
compared to the same quarter of the prior year were as follows: the
Americas were flat, Europe grew 5 percent, Asia Pacific grew 18 percent
and Japan grew 6 percent. Full year growth rates excluding currency were
as follows: the Americas declined 1 percent, Europe grew 2 percent, Asia
Pacific grew 13 percent and Japan grew 3 percent.
Fiscal Year 2013 Outlook
Subject to the risk factors detailed in the Safe Harbor Statement section of this release, the company provided its expectations for fiscal year 2013 financial performance. The company expects revenue growth, excluding currency, of 3 to 5 percent over 2012 revenues of $3.8 billion. If sequestration is implemented, it would reduce revenue by approximately 1 percent and the company would expect be at the low end of the guidance range, at 3 percent growth for 2013. The company expects non-GAAP EPS to be in a range of $4.30 to $4.45. At December month end rates, currency negatively impacts revenue by $(2) million and non-GAAP EPS by about $(0.01). 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 a webcast at 4:30 p.m. ET today. This webcast will contain forward-looking information that includes 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 on 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 Monday, Feb. 25.
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(TM), Applied Biosystems®, Invitrogen(TM), Gibco®, Ambion®, Molecular Probes® and Novex®. 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: http://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; plans and prospects for the company; 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.
All products referenced are for Research Use Only and not intended for use in diagnostic procedures, unless otherwise noted.
Non-GAAP Measurements
This presentation and discussion includes certain financial information which constitute "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 at 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
ir@lifetech.com
LIFE TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months For the three months
(in thousands, except per share data) ended December 31, 2012 ended December 31, 2011
----------------------- -----------------------
(unaudited)
Revenues $998,904 $1,010,445
Cost of revenues 368,665 401,127
Purchased intangibles amortization 72,564 82,201
------ ------
Gross profit 557,675 527,117
------- -------
Gross margin 55.8% 52.2%
Operating expenses:
Selling, general and
administrative 264,604 249,535
Research and
development 83,667 90,201
Business consolidation
costs 38,467 18,856
---------------------
Total operating
expenses 386,738 358,592
------- -------
Operating income 170,937 168,525
Operating margin 17.1% 16.7%
Interest income 686 972
Interest expense (29,649) (38,162)
Other expense, net (800) (2,933)
------------------
Total other
expense, net (29,763) (40,123)
------- -------
Income from operations before provision for income taxes 141,174 128,402
Income tax provision (31,269) (35,334)
------- -------
Net income 109,905 93,068
Net loss attributable to non-
controlling interests 101 -
--- ---
Net income attributable to
controlling interest $110,006 $93,068
Effective tax rate 22.1% 27.5%
Add back interest expense for subordinated debt, net of tax - 584
--- ---
Numerator for diluted earnings per share $110,006 $93,652
======== =======
Earnings per common share:
Basic earnings per
share attributable to
controlling interest $0.64 $0.52
======================
Diluted earnings per
share attributable to
controlling interest $0.63 $0.51
=====================
Weighted average shares used in per share calculation:
Basic 172,238 178,304
Diluted 175,783 184,544
LIFE TECHNOLOGIES CORPORATION
ITEMIZED RECONCILIATION BETWEEN
GAAP AND NON-GAAP NET INCOME
For the three months For the three months
(in thousands, except per share data) ended December 31, 2012 ended December 31, 2011
----------------------- -----------------------
(unaudited)
GAAP net income $109,905 $93,068
Non-GAAP revenue
adjustments
Licensing
settlement - (38,800)
Purchase
accounting
related
adjustments 460 506
Charges on a
discontinued
product - (1,812)
Total Non-GAAP
revenue adjustments 460 (1) (40,106)
--- ---
Non-GAAP cost of
revenues and
purchased intangible
adjustments
Purchased
intangibles
amortization 72,564 82,201
Purchase
accounting
related
adjustments 2,914 (590)
Legal
adjustments
and
licensing
settlement 12,397 56,455
Total Non-GAAP cost
of revenues and
purchased intangible
adjustments 87,875 (2) 138,066
------ ---
Non-GAAP Operating
Expense Adjustments:
Purchase
accounting
related
adjustments 869 1,491
Business
consolidation
costs 38,467 18,856
Legal
adjustments
and
licensing
settlement - 9,960
Total Non-GAAP
Operating Expense
Adjustments 39,336 (3) 30,307
------ ---
Non-GAAP Other
Expense Adjustments:
Noncash
interest
expense
charges - 6,649
Total Non-GAAP Other
Expense Adjustments - 6,649
---
Non-GAAP Income Tax
Provision
Adjustments:
Income tax
adjustments (41,813) (34,880)
Total Non-GAAP
Income Tax Provision
Adjustments (41,813) (5) (34,880)
-------- ---
Non-GAAP Net Income $195,763 $193,104
Non-GAAP loss
attributable to non-
controlling interest 101 (6) -
--- ---
Non-GAAP Net Income Attributable to Controlling Interest $195,864 $193,104
Add back of interest expense for subordinated debt, net of tax - 33
Non-GAAP Numerator for diluted earnings per share $195,864 $193,137
======== ========
Non-GAAP Earnings per common share:
Basic earnings per
share attributable
to controlling
interest $1.14 $1.08
=====
Diluted earnings per
share attributable
to controlling
interest $1.11 $1.05
=====
Weighted average shares used in per share calculation:
Basic 172,238 178,304
Diluted 175,783 184,544
Summary of Reconciliation between GAAP and Non-GAAP Net
Income
For the three months ended
December 31, 2012, Non-GAAP
earnings resulted in total
revenue of $999.4 million,
gross profit of $646.0
million with gross margin of
64.6%, operating profit of
$298.6 million with
operating margin of 29.9%,
and an income tax provision
of $73.1 million with the
Non-GAAP effective tax rate
of 27.2% with the above
adjustments.
For the three months ended
December 31, 2011, Non-GAAP
earnings resulted in total
revenue of $970.3 million,
gross profit of $625.1
million with gross margin of
64.4%, operating profit of
$296.8 million with
operating margin of 30.6%,
and an income tax provision
of $70.2 million with the
Non-GAAP effective tax rate
of 26.7% with the above
adjustments.
Notes
(1) Add back purchased deferred
revenue of $0.5 million for
each of the three months
ended December 31, 2012 and
2011. Adjust for revenue
related to credit usage on
returns of a discontinued
product of $1.8 million for
the three months ended
December 31, 2011. Adjust
for $38.8 million of revenue
recognized upon a licensing
settlement for the three
months ended December 31,
2011.
(2) Add back amortization of
purchased intangibles of
$72.6 million and $82.2
million for the three months
ended December 31, 2012 and
2011, respectively. Add back
amortization of a fair value
inventory write-up of $1.5
million and charges for
contingent consideration
remeasurement of $1.4
million for the three months
ended December 31, 2012 and
adjust charges for
contingent consideration
remeasurement of $0.6
million for the three months
ended December 31, 2011.
Add back $12.4 million and
$52.0 million of legal
adjustments for the three
months ended December 31,
2012 and 2011, respectively,
and add back royalty fees
and compensation costs of
$4.5 million as a result of
a licensing settlement for
the three months ended
December 31, 2011.
(3) Add back depreciation of
purchase accounting
property, plant, and
equipment revaluation of
$0.9 million and $1.5
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 $38.5
million and $18.9 million
for the three months ended
December 31, 2012 and 2011,
respectively. Add back
$10.0 million for the
compensation cost and asset
impairment partially offset
by recovery of expenses
related to the settlement of
a licensing settlement for
the three months ended
December 31, 2011.
(4) Add back charges related to
non-cash interest expense
for senior convertible debts
of $5.1 million and imputed
finance charge of $1.5
million associated with
contingent consideration on
business acquisitions for
the three months ended
December 31, 2011.
(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.
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 year For the year
(in thousands, except per share data) ended December 31, 2012 ended December 31, 2011
----------------------- -----------------------
(unaudited)
Revenues $3,798,510 $3,775,672
Cost of revenues 1,372,277 1,356,967
Purchased intangibles amortization 291,756 308,728
------- -------
Gross profit 2,134,477 2,109,977
--------- ---------
Gross margin 56.2% 55.9%
Operating expenses:
Selling, general and
administrative 1,054,616 1,008,973
Research and
development 341,892 377,924
Business consolidation
costs 72,732 75,324
---------------------
Total operating
expenses 1,469,240 1,462,221
--------- ---------
Operating income 665,237 647,756
Operating margin 17.5% 17.2%
Interest income 2,401 3,932
Interest expense (123,915) (162,073)
Other expense, net (11,898) (10,913)
------------------
Total other
expense, net (133,412) (169,054)
-------- --------
Income from operations before provision for income taxes 531,825 478,702
Income tax provision (101,376) (100,868)
-------- --------
Net income 430,449 377,834
Net loss attributable to non-
controlling interests 406 658
--- ---
Net income attributable to
controlling interest $430,855 $378,492
Effective tax rate 19.1% 21.1%
Add back interest expense for subordinated debt, net of tax 12 1,300
--- -----
Numerator for diluted earnings
per share $430,867 $379,792
======== ========
Earnings per common share:
Basic earnings per
share attributable to
controlling interest $2.45 $2.11
======================
Diluted earnings per
share attributable to
controlling interest $2.40 $2.05
=====================
Weighted average shares used in per share calculation:
Basic 175,831 179,390
Diluted 179,365 185,595
LIFE TECHNOLOGIES CORPORATION
ITEMIZED RECONCILIATION BETWEEN
GAAP AND NON-GAAP NET INCOME
For the year For the year
(in thousands, except per share data) ended December 31, 2012 ended December 31, 2011
----------------------- -----------------------
(unaudited)
GAAP net income $430,449 $377,834
Non-GAAP revenue
adjustments
Licensing
settlement - (38,800)
Purchase
accounting
related
adjustments 1,295 2,881
Charges on a
discontinued
product (457) 924
Total Non-GAAP
revenue adjustments 838 (1) (34,995)
--- ---
Non-GAAP cost of
revenues and
purchased intangible
adjustments
Purchased
intangibles
amortization 291,756 308,728
Purchase
accounting
related
adjustments 2,914 (2,145)
Charges on a
discontinued
product - 2,094
Legal
adjustments
and
licensing
settlement 60,728 56,455
Total Non-GAAP cost
of revenues and
purchased intangible
adjustments 355,398 (2) 365,132
------- ---
Non-GAAP Operating
Expense Adjustments:
Purchase
accounting
related
adjustments 3,738 22,377
Business
consolidation
costs 72,732 75,324
Legal
adjustments
and
licensing
settlement 10,467 9,960
Total Non-GAAP
Operating Expense
Adjustments 86,937 (3) 107,661
------ ---
Non-GAAP Other
Expense Adjustments:
Noncash
interest
expense
charges 5,382 30,779
Other expense 5,302 -
Total Non-GAAP Other
Expense Adjustments 10,684 (4) 30,779
------ ---
Non-GAAP Income Tax
Provision
Adjustments:
Income tax
adjustments (170,681) (157,490)
Total Non-GAAP
Income Tax Provision
Adjustments (170,681) (5) (157,490)
--------- ---
Non-GAAP Net Income $713,625 $688,921
Non-GAAP loss
attributable to non-
controlling interest 406 (6) 350
--- ---
Non-GAAP Net Income Attributable to Controlling Interest $714,031 $689,271
Add back interest expense for subordinated debt, net of tax 12 131
Non-GAAP Numerator for diluted earnings per share $714,043 $689,402
======== ========
Non-GAAP Earnings per common share:
Basic earnings per
share attributable
to controlling
interest $4.06 $3.84
=====
Diluted earnings per
share attributable
to controlling
interest $3.98 $3.71
=====
Weighted average shares used in per share calculation:
Basic 175,831 179,390
Diluted 179,365 185,595
Summary of Reconciliation between GAAP and Non-GAAP Net
Income
For the year ended December
31, 2012, Non-GAAP earnings
resulted in total revenue of
$3.8 billion, gross profit
of $2.5 billion with gross
margin of 65.6%, operating
profit of $1.1 billion with
operating margin of 29.2%,
and an income tax provision
of $272.1 million with the
Non-GAAP effective tax rate
of 27.6% with the above
adjustments.
For the year ended December
31, 2011, Non-GAAP earnings
resulted in total revenue of
$3.7 billion, gross profit
of $2.4 billion with gross
margin of 65.2%, operating
profit of $1.1 billion with
operating margin of 29.0%,
and an income tax provision
of $258.4 million with the
Non-GAAP effective tax rate
of 27.3% with the above
adjustments.
Notes
(1) Add back purchased deferred
revenue of $1.3 million and
adjust for revenue related
to a discontinued product of
$0.5 million for the year
ended December 31, 2012.
Add back purchased deferred
revenue of $2.9 million and
revenue related to returns
of a discontinued product of
$0.9 million, offset by
$38.8 million of revenue
recognized upon a licensing
settlement for the year
ended December 31, 2011.
(2) Add back amortization of
purchased intangibles of
$291.8 million, amortization
of a fair value inventory
write-up of $1.5 million,
and charges for contingent
consideration remeasurement
of $1.4 million for the year
ended December 31, 2012.
Add back amortization of
purchased intangibles of
$308.7 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
remeasurement of $2.7
million for the year ended
December 31, 2011. Add back
$60.9 million and $52.0
million of legal
adjustments, and royalty
fees and compensation costs
of ($0.2) million and $4.5
million as a result of a
licensing settlement for the
year ended December 31, 2012
and 2011, respectively.
(3) Add back depreciation of
purchase accounting
property, plant, and
equipment revaluation of
$3.7 million for the year
ended December 31, 2012.
Add back depreciation of
purchase accounting
property, plant, and
equipment revaluation of
$7.1 million, charges for
contingent consideration
remeasurement of $13.7
million, accelerated
compensation expense related
to business acquisitions of
$1.5 million for year ended
December 31, 2011. Add back
$11.4 million of legal
adjustments offset by
compensation costs of $0.9
million as a result of
licensing settlement for the
year ended December 31,
2012. Add back compensation
costs, impairment charges,
offset with expense recovery
of $10.0 million as a
result of a licensing
settlement for the year
ended December 31, 2011.
Add back 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 $72.7
million and $75.3 million
for the year ended December
31, 2012 and 2011,
respectively.
(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 year ended
December 31, 2012. Add back
charges related to non-cash
interest expense for senior
convertible debts of $24.6
million and imputed finances
charge of $6.2 million
associated with contingent
consideration on business
acquisitions for the year
ended December 31, 2011.
(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.
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
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year
ended December 31,
------------------
(in
thousands)(unaudited) 2012 2011
---- ----
Net income $430,449 $377,834
Add back amortization and
share-based compensation 390,164 394,326
Add back depreciation 126,005 123,578
Balance sheet changes 3,366 (26,959)
Other noncash adjustments (171,992) (59,644)
---------
Net cash
provided by
operating
activities 777,992 809,135
Capital expenditures (116,408) (99,293)
---------
Free cash
flow 661,584 709,842
Net cash
used in
investing
activities (163,065) (52,591)
Net cash
used in
financing
activities (1,082,414) (627,268)
Effect of
exchange
rate
changes on
cash 680 (4,790)
--- ------
Net
(decrease)
increase in
cash and
cash
equivalents $(583,215) $25,193
========= =======
LIFE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
(in thousands) 2012 2011
---- ----
ASSETS (unaudited)
Current assets:
Cash and short-term investments $276,369 $881,994
Trade accounts receivable, net of allowance for doubtful accounts 697,228 636,998
Inventories 403,488 377,866
Prepaid expenses and other current assets 248,154 196,759
-------
Total current assets 1,625,239 2,093,617
Long-term assets 7,012,826 7,094,346
--------- ---------
Total assets $8,638,065 $9,187,963
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $253,214 $450,839
Short-term borrowings 100,000 -
Accounts payable, accrued expenses and other current liabilities 839,137 1,045,467
-------
Total current liabilities 1,192,351 1,496,306
Long-term debt 2,060,855 2,297,653
Other long-term liabilities 731,396 794,778
Stockholders' equity 4,653,463 4,599,226
--------- ---------
Total liabilities and stockholders' $8,638,065 $9,187,963
equity
===
SOURCE Life Technologies Corporation