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10qk
Articles 

Perrigo Company Reports Operating Results (10-Q)

February 07, 2012 | About:

Perrigo Company (NYSE:PRGO) filed Quarterly Report for the period ended 2011-12-31.

Perrigo Company has a market cap of $8.76 billion; its shares were traded at around $94.01 with a P/E ratio of 22.2 and P/S ratio of 3.2. The dividend yield of Perrigo Company stocks is 0.3%. Perrigo Company had an annual average earning growth of 19.3% over the past 10 years. GuruFocus rated Perrigo Company the business predictability rank of 2.5-star.

Highlight of Business Operations:

Current Year Results – Net sales for the second quarter of fiscal 2012 were $838,170, an increase of 17% over fiscal 2011. The increase was driven primarily by $68,600 of net sales attributable to the Paddock acquisition and new product sales of $54,600. Gross profit was $294,875, an increase of 18% over fiscal 2011. The gross profit percentage in the second quarter of fiscal 2012 was 35.2%, as compared to 34.8% last year. Operating expenses in the second quarter of fiscal 2012 were $134,207, an increase of 14% over fiscal 2011. As a percentage of net sales, operating expenses were 16.0%, down from 16.3% in the second quarter of fiscal 2011. Income from continuing operations was $99,739, an increase of 11% over fiscal 2011. Net income was $99,739, an increase of 11% over fiscal 2011.

Net sales for the first half of fiscal 2012 were $1,563,465, an increase of 15% over fiscal 2011. The increase was driven primarily by $107,500 of net sales attributable to the Paddock acquisition and included consolidated new product sales of $95,500. Gross profit was $522,454, an increase of 13% over fiscal 2011. The gross profit percentage in the first half of fiscal 2012 was 33.4%, as compared to 34.1% last year. Operating expenses were $260,234, an increase of 19% over fiscal 2011. As a percentage of net sales, operating expenses were 16.6%, up from 16.1% in fiscal 2011. Income from continuing operations was $170,197, an increase of 4% over fiscal 2011. Net income was $170,197, an increase of 3% over fiscal 2011. During the first half of fiscal 2012, the Company recorded certain one-time charges related to the Paddock acquisition, including a $27,179 charge to cost of sales as a result of the step-up in value of inventory acquired and sold during the first quarter, as well as $9,400 of acquisition-related and severance charges.

Second quarter net sales for fiscal 2012 increased 10% or $41,281 compared to fiscal 2011. The increase was due primarily to new product sales of $26,200, primarily in the cough/cold and diabetes care categories, along with an increase in sales of existing products of $20,400, primarily in the cough/cold category. These combined increases were partially offset by a decline of $4,000 in sales of existing products within the analgesics product category that are a result of fiscal 2011's high sales rate of analgesic products due to a key competitor being absent from the market during that time. Net sales were also negatively impacted by $1,600 of unfavorable changes in foreign currency exchange rates.

Year-to-date operating expenses for fiscal 2012 increased 13% or $14,596 compared to fiscal 2011. The increase was related primarily to increases in selling expenses of $6,900, administrative expenses of $3,700 and research and development expenses of $3,100. Selling expenses increased due primarily to higher spending on sales and marketing promotions in anticipation of future product launches, while administrative expenses increased due primarily to higher compensation-related expenses. The increase in research and development expenses was due primarily to higher Paragraph IV litigation expenses, along with increased spending on developmental materials.

Year-to-date net sales for fiscal 2012 increased 83% or $137,956 compared to fiscal 2011. This increase was due primarily to net sales of $107,500 from the Paddock acquisition, which included $600 in sales of new products launched by this business subsequent to the acquisition date. In addition, legacy new product sales added $10,500, along with market share gains and favorable pricing dynamics on select products as compared to the prior year.

Read the The complete Report

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10qk
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