Perrigo Company (PRGO, Financial) filed Quarterly Report for the period ended 2009-03-28.
Perrigo Company is the nations largest manufacturer of store brand over-the-counter (non-prescription) pharmaceutical products and also manufactures store brand nutritional products. Store brand products are sold by national and regional supermarket drugstore and mass merchandise chains under their own labels and compete with nationally advertised brands. The Company's products include analgesics cough and cold remedies antacids laxatives feminine hygiene and smoking cessation products and vitamins nutritional supplements and nutritional drinks. Perrigo Company has a market cap of $2.48 billion; its shares were traded at around $26.88 with a P/E ratio of 15.8 and P/S ratio of 1.4. The dividend yield of Perrigo Company stocks is 0.7%. Perrigo Company had an annual average earning growth of 13.3% over the past 10 years.
Third quarter net sales for fiscal 2009 increased 12% or $46,117 compared to fiscal 2008. The increase was comprised of $57,357 of domestic sales, partially offset by a decline of $11,240 in international sales. The domestic increase resulted in part from approximately $39,800 of new product sales, primarily in the gastrointestinal and cough/cold categories, along with a $14,900 increase from higher unit sales of existing products in the smoking cessation and nutrition categories. The domestic increase also resulted from $34,200 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $29,200 in sales of existing products in the gastrointestinal and cough/cold categories. The decrease in international sales was driven primarily by the impact of unfavorable changes in foreign currency exchange rates of $12,400, as well as the absence of the U.K.s VMS businesss sales of $9,800. These decreases were partially offset by sales of $5,000 from acquired businesses (Brunel and Diba) and by sales of $5,900 from new and existing products.
$67,600 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $34,300 in sales of existing products, primarily in the gastrointestinal and cough/cold categories. The increase in international sales was driven primarily by sales from Galpharm, Brunel and Diba of $42,200, as well as by sales from new and existing products of $7,300. These increases in international sales were substantially offset by the absence of the U.K.s VMS businesss sales of $25,700 and the impact of unfavorable changes in foreign currency exchange rates of $22,400.
Third quarter operating expenses for fiscal 2009 decreased 22% or $2,284 compared to fiscal 2008, due primarily to a $2,000 decrease in research and development costs related to litigation expenses along with a $300 reduction in administrative expenses. Year-to-date operating expenses for fiscal 2009 decreased 6% or $1,640 compared to fiscal 2008, due primarily to a $1,600 decrease in research and development costs related to clinical trials and a $400 decrease in selling costs. These decreases were partially offset by $400 in higher distribution costs.
Year-to-date gross profit for fiscal 2009 decreased 27% or $11,325 compared to fiscal 2008. This decrease was due primarily to approximately $11,300 in lower margin associated with the sales decline in the three key products as discussed above, the absence of the one-time $4,900 accrual reversal mentioned above, approximately $4,100 of fixed overhead cost spread over lower production volumes and approximately $2,700 resulting from unfavorable changes in foreign currency exchange rates. These margin decreases were partially offset by approximately $11,700 of favorable changes in the remaining portfolio of existing products, along with higher gross margins on new product sales.
Interest expense for the third quarter was $12,434 for fiscal 2009 and $8,759 for fiscal 2008. Year-to-date interest expense was $39,284 for fiscal 2009 and $27,599 for fiscal 2008. The increase in interest expense for both the third quarter and year-to-date was due primarily to a higher debt balance following the increase in borrowings during the fourth quarter of fiscal 2008. Interest income for the third quarter was $5,468 for fiscal 2009 and $5,073 for fiscal 2008. Year-to-date interest income was $18,819 for fiscal 2009 and $15,590 for fiscal 2008. The increase in interest income for the third quarter and year-to-date was due primarily to the increase in cash and cash equivalents as a result of the increase in borrowings during the fourth quarter of fiscal 2008.
Read the The complete ReportPRGO is in the portfolios of Edward Owens of Vanguard Health Care Fund, Edward Owens of Vanguard Health Care Fund, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Perrigo Company is the nations largest manufacturer of store brand over-the-counter (non-prescription) pharmaceutical products and also manufactures store brand nutritional products. Store brand products are sold by national and regional supermarket drugstore and mass merchandise chains under their own labels and compete with nationally advertised brands. The Company's products include analgesics cough and cold remedies antacids laxatives feminine hygiene and smoking cessation products and vitamins nutritional supplements and nutritional drinks. Perrigo Company has a market cap of $2.48 billion; its shares were traded at around $26.88 with a P/E ratio of 15.8 and P/S ratio of 1.4. The dividend yield of Perrigo Company stocks is 0.7%. Perrigo Company had an annual average earning growth of 13.3% over the past 10 years.
Highlight of Business Operations:
Current Year Results Net sales from continuing operations for the third quarter of fiscal 2009 were $505,902, an increase of 5% over fiscal 2008, and included $47,400 of consolidated new product sales. Gross profit was $149,592, down slightly compared to fiscal 2008. The gross profit percentage in the third quarter of fiscal 2009 was 29.6%, down from 31.3% last year. Operating expenses in the third quarter of fiscal 2009 were $77,695, a decrease of 14% over fiscal 2008. Operating expenses as a percent of net sales were 15.4%, down from 18.8% in the third quarter of fiscal 2008. Income from continuing operations in the third quarter of fiscal 2009 was $46,469, an increase of 16% over fiscal 2008. Net income was $45,897, an increase of 15% over fiscal 2008.Third quarter net sales for fiscal 2009 increased 12% or $46,117 compared to fiscal 2008. The increase was comprised of $57,357 of domestic sales, partially offset by a decline of $11,240 in international sales. The domestic increase resulted in part from approximately $39,800 of new product sales, primarily in the gastrointestinal and cough/cold categories, along with a $14,900 increase from higher unit sales of existing products in the smoking cessation and nutrition categories. The domestic increase also resulted from $34,200 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $29,200 in sales of existing products in the gastrointestinal and cough/cold categories. The decrease in international sales was driven primarily by the impact of unfavorable changes in foreign currency exchange rates of $12,400, as well as the absence of the U.K.s VMS businesss sales of $9,800. These decreases were partially offset by sales of $5,000 from acquired businesses (Brunel and Diba) and by sales of $5,900 from new and existing products.
$67,600 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $34,300 in sales of existing products, primarily in the gastrointestinal and cough/cold categories. The increase in international sales was driven primarily by sales from Galpharm, Brunel and Diba of $42,200, as well as by sales from new and existing products of $7,300. These increases in international sales were substantially offset by the absence of the U.K.s VMS businesss sales of $25,700 and the impact of unfavorable changes in foreign currency exchange rates of $22,400.
Third quarter operating expenses for fiscal 2009 decreased 22% or $2,284 compared to fiscal 2008, due primarily to a $2,000 decrease in research and development costs related to litigation expenses along with a $300 reduction in administrative expenses. Year-to-date operating expenses for fiscal 2009 decreased 6% or $1,640 compared to fiscal 2008, due primarily to a $1,600 decrease in research and development costs related to clinical trials and a $400 decrease in selling costs. These decreases were partially offset by $400 in higher distribution costs.
Year-to-date gross profit for fiscal 2009 decreased 27% or $11,325 compared to fiscal 2008. This decrease was due primarily to approximately $11,300 in lower margin associated with the sales decline in the three key products as discussed above, the absence of the one-time $4,900 accrual reversal mentioned above, approximately $4,100 of fixed overhead cost spread over lower production volumes and approximately $2,700 resulting from unfavorable changes in foreign currency exchange rates. These margin decreases were partially offset by approximately $11,700 of favorable changes in the remaining portfolio of existing products, along with higher gross margins on new product sales.
Interest expense for the third quarter was $12,434 for fiscal 2009 and $8,759 for fiscal 2008. Year-to-date interest expense was $39,284 for fiscal 2009 and $27,599 for fiscal 2008. The increase in interest expense for both the third quarter and year-to-date was due primarily to a higher debt balance following the increase in borrowings during the fourth quarter of fiscal 2008. Interest income for the third quarter was $5,468 for fiscal 2009 and $5,073 for fiscal 2008. Year-to-date interest income was $18,819 for fiscal 2009 and $15,590 for fiscal 2008. The increase in interest income for the third quarter and year-to-date was due primarily to the increase in cash and cash equivalents as a result of the increase in borrowings during the fourth quarter of fiscal 2008.
Read the The complete ReportPRGO is in the portfolios of Edward Owens of Vanguard Health Care Fund, Edward Owens of Vanguard Health Care Fund, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
