Business Wire | Jul 26, 2021 06:32AM EDT

PerkinElmer Announces Financial Results for the Second Quarter of 2021

Jul. 26, 2021

WALTHAM, Mass.--(BUSINESS WIRE)--Jul. 26, 2021--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the second quarter ended July 4, 2021.

The Company reported GAAP earnings per share from continuing operations of $2.19, as compared to GAAP earnings per share from continuing operations of $1.23 in the second quarter of 2020. GAAP revenue for the quarter was $1.228 billion, as compared to $812 million in the second quarter of 2020. GAAP operating income from continuing operations for the quarter was $332 million, as compared to $176 million for the same period a year ago. GAAP operating profit margin was 27.1% as a percentage of revenue, as compared to 21.6% in the second quarter of 2020.

Adjusted earnings per share from continuing operations for the quarter was $2.83, as compared to $1.57 in the second quarter of 2020. Adjusted revenue for the quarter was $1.229 billion, as compared to $812 million in the second quarter of 2020. Adjusted operating income from continuing operations for the quarter was $411 million, as compared to $228 million for the same period a year ago. Adjusted operating profit margin was 33.5% as a percentage of adjusted revenue, as compared to 28.1% in the second quarter of 2020.

Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

"The organization continues to perform extremely well through the first half of 2021. Underpinned by the strategic pillars we highlighted at our recent Analyst Day and now the exciting addition of BioLegend, PerkinElmer is well positioned to execute on both our near- and long-term goals," said Prahlad Singh, president and chief executive officer of PerkinElmer. "The tremendous efforts by the more than 14,000 PerkinElmer employees across the globe have been instrumental in transforming the company into what it is today. I could not be more excited for what is to come in the years ahead."

Financial Overview by Reporting Segment for the Second Quarter

Discovery & Analytical Solutions

* Second quarter 2021 revenue was $513 million, as compared to $391 million for the second quarter of 2020. Reported revenue increased 31% and organic revenue increased 22% as compared to the second quarter of 2020.

* Second quarter 2021 operating income from continuing operations was $64 million, as compared to $39 million for the comparable prior period.

* Second quarter 2021 adjusted operating income was $101 million, as compared to $57 million for the second quarter of 2020.

Diagnostics

* Second quarter 2021 revenue was $716 million, as compared to $421 million for the second quarter of 2020. Reported revenue increased 70% and organic revenue increased 59% as compared to the second quarter of 2020.

* Second quarter 2021 operating income from continuing operations was $286 million, as compared to $160 million for the comparable prior period.

* Second quarter 2021 adjusted operating income was $328 million, as compared to $190 million for the second quarter of 2020.

Initiates Third Quarter Guidance and Raises Full Year 2021 Guidance

For the third quarter of 2021, the Company forecasts adjusted revenue of approximately $1.00 billion and adjusted earnings per share of $1.62.

For the full year of 2021, the Company now forecasts adjusted revenue of $4.57 billion and adjusted earnings per share of $9.88.

Guidance for the third quarter and full year is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company's results prepared in accordance with GAAP.

Announces Acquisition of BioLegend

The Company has also announced today that it has reached an agreement to acquire BioLegend, a leading manufacturer of innovative antibodies and research reagents for $5.25 billion. Please see today's separate release for additional details on this transaction.

Conference Call Information

The Company will discuss its second quarter 2021 results, its outlook for business trends, and its acquisition of BioLegend in a conference call on July 26, 2021 at 8:00 a.m. Eastern Time. To access the call, please dial 720-405-2250 prior to the scheduled conference call time and provide the access code 9275741.

A live audio webcast of the call will be available on the Investors section of the Company's website, www.perkinelmer.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Company's website for a two-week period beginning approximately two hours after the call.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

Factors Affecting Future Performance

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as "believes," "intends," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) the effect of the COVID-19 pandemic on our sales and operations; (3) fluctuations in the global economic and political environments; (4) our failure to introduce new products in a timely manner; (5) our ability to execute acquisitions, such as BioLegend, and license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (6) our ability to compete effectively; (7) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (8) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (9) disruptions in the supply of raw materials and supplies; (10) our ability to retain key personnel; (11) significant disruption in our information technology systems, or cybercrime; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) regulatory changes; (18) our failure to comply with healthcare industry regulations; (19) economic, political and other risks associated with foreign operations; (20) the United Kingdom's withdrawal from the European Union; (21) our ability to obtain future financing; (22) restrictions in our credit agreements; (23) discontinuation or replacement of LIBOR; (24) significant fluctuations in our stock price; (25) reduction or elimination of dividends on our common stock; and (26) other factors which we describe under the caption "Risk Factors" in our most recent quarterly report on Form 10-Q and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on innovating for a healthier world. The Company reported revenue of approximately $3.8 billion in 2020, has about 14,000 employees serving customers in more than 190 countries, and is a component of the S&P 500 Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.

PerkinElmer, Inc. and SubsidiariesCONDENSED CONSOLIDATED INCOME STATEMENTS Three Months Ended Six Months Ended

(In thousands, except July 4, 2021 July 5, July 4, 2021 July 5, 2020per share data) 2020 Revenue $1,228,471 $811,718 $2,536,160 $1,464,114

Cost of revenue 543,277 364,374 1,065,820 708,747

Selling, general and 281,819 221,026 533,229 429,595 administrative expensesResearch and development 65,824 49,521 126,040 98,435 expensesRestructuring and other, 5,063 1,158 10,807 7,016 net Operating income from 332,488 175,639 800,264 220,321 continuing operations Interest income (367 ) (192 ) (778 ) (457 )

Interest expense 16,750 11,586 30,876 25,251

Change in fair value of (8,633 ) - (27,931 ) - financial securitiesOther income, net (1,319 ) (582 ) (8,442 ) (3,989 )

Income from continuing 326,057 164,827 806,539 199,516 operations, beforeincome taxes Provision for income 80,089 27,614 181,228 28,588 taxes Income from continuing 245,968 137,213 625,311 170,928 operations Loss on disposition of - - - - discontinued operations,before income taxesProvision for incometaxes on discontinued 38 51 76 101 operations anddispositions Loss from discontinued (38 ) (51 ) (76 ) (101 )operations anddispositions Net income $245,930 $137,162 $625,235 $170,827

Diluted earnings pershare:Income from continuing $2.19 $1.23 $5.56 $1.53 operations Loss from discontinued (0.00 ) (0.00 ) (0.00 ) (0.00 )operations anddispositions Net income $2.19 $1.23 $5.56 $1.53

Weighted average diluted 112,417 111,869 112,456 111,756 shares of common stockoutstandingABOVE PREPARED IN ACCORDANCE WITH GAAPAdditional Supplemental Information (1):(per share, continuing operations)GAAP EPS from continuing operations$2.19

$1.23

$5.56

$1.53

Amortization of intangible assets0.53

0.42

1.01

0.84

Purchase accounting adjustments0.03

0.01

0.07

(0.09

)

Acquisition and divestiture-related costs0.09

(0.05

)

0.13

0.06

Change in fair value of financial securities(0.08

)

-

(0.25

)

-

Significant litigation matters and settlements-

0.03

-

0.03

Significant environmental matters-

0.05

-

0.05

Restructuring and other, net0.05

0.01

0.10

0.06

Tax on above items(0.11

)

(0.13

)

(0.21

)

(0.25

)

Significant tax items0.13

-

0.13

-

Adjusted EPS$2.83

$1.57

$6.55

$2.24

(1) amounts may not sum due to rounding ABOVE PREPARED IN ACCORDANCE WITH GAAP Additional Supplemental Information ^(1): (per share, continuing operations) GAAP EPS from continuing operations $2.19 $1.23 $5.56 $1.53

Amortization of intangible assets 0.53 0.42 1.01 0.84

Purchase accounting adjustments 0.03 0.01 0.07 (0.09 )

Acquisition and divestiture-related costs 0.09 (0.05 ) 0.13 0.06

Change in fair value of financial (0.08 ) - (0.25 ) - securities Significant litigation matters and - 0.03 - 0.03 settlements Significant environmental matters - 0.05 - 0.05

Restructuring and other, net 0.05 0.01 0.10 0.06

Tax on above items (0.11 ) (0.13 ) (0.21 ) (0.25 )

Significant tax items 0.13 - 0.13 -

Adjusted EPS $2.83 $1.57 $6.55 $2.24

(1) amounts may not sum due to rounding PerkinElmer, Inc. and SubsidiariesREVENUE AND OPERATING INCOME (LOSS)Three Months EndedSix Months Ended(In thousands, except percentages)July 4, 2021July 5, 2020July 4, 2021July 5, 2020DASReported revenue$512,829

$391,002

$967,438

$789,397

Purchase accounting adjustments822

-

1,849

-

Adjusted revenue513,651

391,002

969,287

789,397

Reported operating income from continued operations64,155

39,430

107,102

67,943

OP%12.5

%

10.1

%

11.1

%

8.6

%

Amortization of intangible assets23,072

20,506

43,492

41,216

Purchase accounting adjustments1,473

136

3,649

(11,334

)

Acquisition and divestiture-related costs8,597

(5,486

)

14,505

6,833

Significant litigation matters and settlements-

2,001

-

2,399

Restructuring and other, net3,615

845

7,744

4,754

Adjusted operating income100,912

57,432

176,492

111,811

Adjusted OP%19.6

%

14.7

%

18.2

%

14.2

%

DiagnosticsReported revenue715,642

420,716

1,568,722

674,717

Purchase accounting adjustments199

196

398

392

Adjusted revenue715,841

420,912

1,569,120

675,109

Reported operating income from continued operations286,280

160,300

727,747

189,891

OP%40.0

%

38.1

%

46.4

%

28.1

%

Amortization of intangible assets36,489

26,211

70,226

52,751

Purchase accounting adjustments2,107

1,336

4,378

1,765

Acquisition and divestiture-related costs2,051

263

5,810

305

Significant litigation matters and settlements-

1,200

-

1,245

Restructuring and other, net1,448

313

3,063

2,262

Adjusted operating income328,375

189,623

811,224

248,219

Adjusted OP%45.9

%

45.1

%

51.7

%

36.8

%

CorporateReported operating loss(17,947

)

(24,091

)

(34,585

)

(37,513

)

Significant environmental matters-

5,242

-

5,242

Adjusted operating loss(17,947

)

(18,849

)

(34,585

)

(32,271

)

Continuing OperationsReported revenue$1,228,471

$811,718

$2,536,160

$1,464,114

Purchase accounting adjustments1,021

196

2,247

392

Adjusted revenue1,229,492

811,914

2,538,407

1,464,506

Reported operating income from continued operations332,488

175,639

800,264

220,321

OP%27.1

%

21.6

%

31.6

%

15.0

%

Amortization of intangible assets59,561

46,717

113,718

93,967

Purchase accounting adjustments3,580

1,472

8,027

(9,569

)

Acquisition and divestiture-related costs10,648

(5,223

)

20,315

7,138

Significant litigation matters and settlements-

3,201

-

3,644

Significant environmental matters-

5,242

-

5,242

Restructuring and other, net5,063

1,158

10,807

7,016

Adjusted operating income$411,340

$228,206

$953,131

$327,759

Adjusted OP%33.5

%

28.1

%

37.5

%

22.4

%

REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesREVENUE AND OPERATING INCOME (LOSS) Three Months Ended Six Months Ended(In thousands, except July 4, 2021 July 5, July 4, 2021 July 5, 2020percentages) 2020 DAS Reported revenue $512,829 $391,002 $967,438 $789,397

Purchase accounting 822 - 1,849 - adjustments Adjusted revenue 513,651 391,002 969,287 789,397

Reported operating income from 64,155 39,430 107,102 67,943 continued operations OP% 12.5 % 10.1 % 11.1 % 8.6 %

Amortization of 23,072 20,506 43,492 41,216 intangible assets Purchase accounting 1,473 136 3,649 (11,334 ) adjustments Acquisition and 8,597 (5,486 ) 14,505 6,833 divestiture-related costs Significant - 2,001 - 2,399 litigation matters and settlements Restructuring and 3,615 845 7,744 4,754 other, net Adjusted operating 100,912 57,432 176,492 111,811 income Adjusted OP% 19.6 % 14.7 % 18.2 % 14.2 %

Diagnostics Reported revenue 715,642 420,716 1,568,722 674,717

Purchase accounting 199 196 398 392 adjustments Adjusted revenue 715,841 420,912 1,569,120 675,109

Reported operating income from 286,280 160,300 727,747 189,891 continued operations OP% 40.0 % 38.1 % 46.4 % 28.1 %

Amortization of 36,489 26,211 70,226 52,751 intangible assets Purchase accounting 2,107 1,336 4,378 1,765 adjustments Acquisition and 2,051 263 5,810 305 divestiture-related costs Significant - 1,200 - 1,245 litigation matters and settlements Restructuring and 1,448 313 3,063 2,262 other, net Adjusted operating 328,375 189,623 811,224 248,219 income Adjusted OP% 45.9 % 45.1 % 51.7 % 36.8 %

Corporate Reported operating (17,947 ) (24,091 ) (34,585 ) (37,513 ) loss Significant - 5,242 - 5,242 environmental matters Adjusted operating (17,947 ) (18,849 ) (34,585 ) (32,271 ) loss Continuing Reported revenue $1,228,471 $811,718 $2,536,160 $1,464,114 Operations Purchase accounting 1,021 196 2,247 392 adjustments Adjusted revenue 1,229,492 811,914 2,538,407 1,464,506

Reported operating income from 332,488 175,639 800,264 220,321 continued operations OP% 27.1 % 21.6 % 31.6 % 15.0 %

Amortization of 59,561 46,717 113,718 93,967 intangible assets Purchase accounting 3,580 1,472 8,027 (9,569 ) adjustments Acquisition and 10,648 (5,223 ) 20,315 7,138 divestiture-related costs Significant - 3,201 - 3,644 litigation matters and settlements Significant - 5,242 - 5,242 environmental matters Restructuring and 5,063 1,158 10,807 7,016 other, net Adjusted operating $411,340 $228,206 $953,131 $327,759 income Adjusted OP% 33.5 % 28.1 % 37.5 % 22.4 %

REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCEWITH GAAPPerkinElmer, Inc. and SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)July 4, 2021January 3, 2021Current assets:Cash and cash equivalents$572,810

$402,036

Accounts receivable, net992,602

1,155,109

Inventories, net513,429

514,567

Other current assets181,151

167,208

Total current assets2,259,992

2,238,920

Property, plant and equipment, net379,065

368,304

Operating lease right-of-use assets208,494

207,236

Intangible assets, net1,561,534

1,365,693

Goodwill3,844,070

3,447,114

Other assets, net486,306

333,048

Total assets$8,739,461

$7,960,315

Current liabilities:Current portion of long-term debt$4,669

$380,948

Accounts payable324,711

327,325

Accrued expenses and other current liabilities793,443

943,916

Total current liabilities1,122,823

1,652,189

Long-term debt2,348,523

1,609,701

Long-term liabilities838,974

774,531

Operating lease liabilities189,334

188,402

Total liabilities4,499,654

4,224,823

Total stockholders' equity4,239,807

3,735,492

Total liabilities and stockholders' equity$8,739,461

$7,960,315

PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 4, 2021 January 3, 2021 Current assets: Cash and cash equivalents $572,810 $402,036

Accounts receivable, net 992,602 1,155,109

Inventories, net 513,429 514,567

Other current assets 181,151 167,208

Total current assets 2,259,992 2,238,920

Property, plant and equipment, net 379,065 368,304

Operating lease right-of-use assets 208,494 207,236

Intangible assets, net 1,561,534 1,365,693

Goodwill 3,844,070 3,447,114

Other assets, net 486,306 333,048

Total assets $8,739,461 $7,960,315

Current liabilities: Current portion of long-term debt $4,669 $380,948

Accounts payable 324,711 327,325

Accrued expenses and other current liabilities 793,443 943,916

Total current liabilities 1,122,823 1,652,189

Long-term debt 2,348,523 1,609,701

Long-term liabilities 838,974 774,531

Operating lease liabilities 189,334 188,402

Total liabilities 4,499,654 4,224,823

Total stockholders' equity 4,239,807 3,735,492

Total liabilities and stockholders' equity $8,739,461 $7,960,315

PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWSThree Months EndedSix Months EndedJuly 4, 2021July 5, 2020July 4, 2021July 5, 2020(In thousands)(In thousands)Operating activities:Net income$245,930

$137,162

$625,235

$170,827

Loss from discontinued operations and dispositions, net of income taxes38

51

76

101

Income from continuing operations245,968

137,213

625,311

170,928

Adjustments to reconcile income from continuing operationsto net cash provided by continuing operations:Stock-based compensation7,204

9,604

12,361

12,654

Restructuring and other, net5,063

1,158

10,807

7,016

Depreciation and amortization75,636

59,289

145,822

120,047

Change in fair value of contingent consideration237

879

477

(11,446

)

Amortization of deferred debt financing costs and accretion of discounts828

935

1,724

1,642

Change in fair value of financial securities(8,633

)

-

(27,931

)

-

Amortization of acquired inventory revaluation2,322

397

5,303

1,485

Loss on disposition of businesses and assets, net-

485

-

485

Changes in assets and liabilities which provided (used) cash, excludingeffects from companies acquired:Accounts receivable, net(9,920

)

(76,288

)

155,270

4,312

Inventories22,246

(71,949

)

7,239

(126,707

)

Accounts payable(21,747

)

17,744

(26,795

)

20,907

Accrued expenses and other(31,342

)

59,130

(148,226

)

(2,677

)

Net cash provided by operating activities of continuing operations287,862

138,597

761,362

198,646

Investing activities:Capital expenditures(20,364

)

(16,650

)

(34,675

)

(37,138

)

Purchases of investments(10,507

)

(5,755

)

(14,507

)

(7,393

)

Proceeds from surrender of life insurance policies-

79

-

131

Proceeds from disposition of businesses and assets-

1,755

-

1,815

Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired(259,154

)

(2,990

)

(702,697

)

(2,990

)

Net cash used in investing activities of continuing operations(290,025

)

(23,561

)

(751,879

)

(45,575

)

Financing Activities:Payments on borrowings(20,000

)

(149,000

)

(763,545

)

(290,000

)

Proceeds from borrowings145,000

63,000

729,000

188,000

Payments of senior debt(339,605

)

-

(339,605

)

Proceeds from sale of senior debt-

-

799,856

-

Payments of debt financing costs(360

)

-

(8,242

)

-

Settlement of cash flow hedges(11,940

)

(3,671

)

(5,935

)

5,037

Net payments on other credit facilities(2,027

)

(1,753

)

(11,826

)

(6,036

)

Payments for acquisition-related contingent consideration-

(5,200

)

-

(5,200

)

Proceeds from issuance of common stock under stock plans9,198

8,968

14,185

10,074

Purchases of common stock(30,145

)

(327

)

(72,924

)

(6,669

)

Dividends paid(7,845

)

(7,791

)

(15,697

)

(15,572

)

Net cash (used in) provided by financing activities of continuing operations(257,724

)

(95,774

)

325,267

(120,366

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash(3,810

)

5,510

(10,659

)

(4,658

)

Net (decrease) increase in cash, cash equivalents, and restricted cash(263,697

)

24,772

324,091

28,047

Cash, cash equivalents, and restricted cash at beginning of period990,401

195,169

402,613

191,894

Cash, cash equivalents, and restricted cash at end of period$726,704

$219,941

$726,704

$219,941

Supplemental disclosure of cash flow information:Reconciliation of cash, cash equivalents and restricted cash reported within the consolidatedbalance sheets that sum to the total shown in the consolidated statements of cash flows:

Cash and cash equivalents$572,810

$218,536

$572,810

$218,536

Restricted cash included in other current assets1,750

1,405

1,750

1,405

Restricted cash included in other assets152,144

-

152,144

-

Total cash, cash equivalents and restricted cash$726,704

$219,941

$726,704

$219,941

PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended Six Months Ended July 4, July 5, July 4, July 5, 2021 2020 2021 2020 (In thousands) (In thousands) Operating activities: Net income $245,930 $137,162 $625,235 $170,827

Loss from discontinued 38 51 76 101 operations and dispositions, net of income taxesIncome from continuing 245,968 137,213 625,311 170,928 operationsAdjustments to reconcileincome from continuing operationsto net cash provided by continuing operations:Stock-based compensation 7,204 9,604 12,361 12,654

Restructuring and other, net 5,063 1,158 10,807 7,016

Depreciation and amortization 75,636 59,289 145,822 120,047

Change in fair value of 237 879 477 (11,446 )contingent considerationAmortization of deferred debt 828 935 1,724 1,642 financing costs and accretion of discountsChange in fair value of (8,633 ) - (27,931 ) - financial securitiesAmortization of acquired 2,322 397 5,303 1,485 inventory revaluationLoss on disposition of - 485 - 485 businesses and assets, netChanges in assets andliabilities which provided (used) cash, excludingeffects from companies acquired:Accounts receivable, net (9,920 ) (76,288 ) 155,270 4,312

Inventories 22,246 (71,949 ) 7,239 (126,707 )

Accounts payable (21,747 ) 17,744 (26,795 ) 20,907

Accrued expenses and other (31,342 ) 59,130 (148,226 ) (2,677 )

Net cash provided by operating 287,862 138,597 761,362 198,646 activities of continuing operations Investing activities: Capital expenditures (20,364 ) (16,650 ) (34,675 ) (37,138 )

Purchases of investments (10,507 ) (5,755 ) (14,507 ) (7,393 )

Proceeds from surrender of - 79 - 131 life insurance policiesProceeds from disposition of - 1,755 - 1,815 businesses and assetsCash paid for acquisitions, (259,154 ) (2,990 ) (702,697 ) (2,990 )net of cash, cash equivalents and restricted cash acquiredNet cash used in investing (290,025 ) (23,561 ) (751,879 ) (45,575 )activities of continuing operations Financing Activities: Payments on borrowings (20,000 ) (149,000 ) (763,545 ) (290,000 )

Proceeds from borrowings 145,000 63,000 729,000 188,000

Payments of senior debt (339,605 ) - (339,605 )

Proceeds from sale of senior - - 799,856 - debtPayments of debt financing (360 ) - (8,242 ) - costsSettlement of cash flow hedges (11,940 ) (3,671 ) (5,935 ) 5,037

Net payments on other credit (2,027 ) (1,753 ) (11,826 ) (6,036 )facilitiesPayments for - (5,200 ) - (5,200 )acquisition-related contingent considerationProceeds from issuance of 9,198 8,968 14,185 10,074 common stock under stock plansPurchases of common stock (30,145 ) (327 ) (72,924 ) (6,669 )

Dividends paid (7,845 ) (7,791 ) (15,697 ) (15,572 )

Net cash (used in) provided by (257,724 ) (95,774 ) 325,267 (120,366 )financing activities of continuing operations Effect of exchange ratechanges on cash, cash (3,810 ) 5,510 (10,659 ) (4,658 )equivalents, and restrictedcash Net (decrease) increase in (263,697 ) 24,772 324,091 28,047 cash, cash equivalents, and restricted cashCash, cash equivalents, and 990,401 195,169 402,613 191,894 restricted cash at beginning of periodCash, cash equivalents, and $726,704 $219,941 $726,704 $219,941 restricted cash at end of period Supplemental disclosure of cash flow information:Reconciliation of cash, cashequivalents and restrictedcash reported within theconsolidated balance sheets that sum to the total shown inthe consolidated statements ofcash flows:

Cash and cash equivalents $572,810 $218,536 $572,810 $218,536

Restricted cash included in 1,750 1,405 1,750 1,405 other current assetsRestricted cash included in 152,144 - 152,144 - other assetsTotal cash, cash equivalents $726,704 $219,941 $726,704 $219,941 and restricted cash PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)(In millions, except per share data and percentages)PKIThree Months Ended

July 4, 2021July 5, 2020Adjusted revenue:Revenue$1,228.5

$811.7

Purchase accounting adjustments1.0

0.2

Adjusted revenue$1,229.5

$811.9

Adjusted gross margin:Gross margin$685.2

55.8

%

$447.3

55.1

%

Amortization of intangible assets22.7

1.8

%

16.0

2.0

%

Purchase accounting adjustments3.3

0.3

%

0.6

0.1

%

Adjusted gross margin$711.2

57.8

%

$463.9

57.1

%

Adjusted SG&A:SG&A$281.8

22.9

%

$221.0

27.2

%

Amortization of intangible assets(36.9

)

-3.0

%

(30.7

)

-3.8

%

Purchase accounting adjustments(0.2

)

0.0

%

(0.9

)

-0.1

%

Acquisition and divestiture-related expenses(10.6

)

-0.9

%

5.2

0.6

%

Significant litigation matters and settlements-

0.0

%

(3.2

)

-0.4

%

Significant environmental matters-

0.0

%

(5.2

)

-0.6

%

Adjusted SG&A$234.0

19.0

%

$186.2

22.9

%

R&D$65.8

5.4

%

$49.5

6.1

%

Adjusted operating income:Operating income$332.5

27.1

%

$175.6

21.6

%

Amortization of intangible assets59.6

4.8

%

46.7

5.8

%

Purchase accounting adjustments3.6

0.3

%

1.5

0.2

%

Acquisition and divestiture-related costs10.6

0.9

%

(5.2

)

-0.6

%

Significant litigation matters and settlements-

0.0

%

3.2

0.4

%

Significant environmental matters-

0.0

%

5.2

0.6

%

Restructuring and other, net5.1

0.4

%

1.2

0.1

%

Adjusted operating income$411.3

33.5

%

$228.2

28.1

%

PKIThree Months Ended

July 4, 2021July 5, 2020Adjusted EPS:GAAP EPS$2.19

$1.23

Discontinued operations, net of income taxes(0.00

)

(0.00

)

GAAP EPS from continuing operations2.19

1.23

Amortization of intangible assets0.53

0.42

Purchase accounting adjustments0.03

0.01

Acquisition and divestiture-related costs0.09

(0.05

)

Change in fair value of financial securities(0.08

)

-

Significant litigation matters and settlements-

0.03

Significant environmental matters-

0.05

Restructuring and other, net0.05

0.01

Tax on above items(0.11

)

(0.13

)

Significant tax items0.13

-

Adjusted EPS$2.83

$1.57

DASThree Months Ended

July 4, 2021July 5, 2020Adjusted revenue:Revenue$512.8

$391.0

Purchase accounting adjustments0.8

-

Adjusted revenue$513.7

$391.0

Adjusted operating income:Operating income$64.2

12.5

%

$39.4

10.1

%

Amortization of intangible assets23.1

4.5

%

20.5

5.2

%

Purchase accounting adjustments1.5

0.3

%

0.1

0.0

%

Acquisition and divestiture-related costs8.6

1.7

%

(5.5

)

-1.4

%

Significant litigation matters and settlements-

0.0

%

2.0

0.5

%

Restructuring and other, net3.6

0.7

%

0.8

0.2

%

Adjusted operating income$100.9

19.6

%

$57.4

14.7

%

DiagnosticsThree Months Ended

July 4, 2021July 5, 2020Adjusted revenue:Revenue$715.6

$420.7

Purchase accounting adjustments0.2

0.2

Adjusted revenue$715.8

$420.9

Adjusted operating income:Operating income$286.3

40.0

%

$160.3

38.1

%

Amortization of intangible assets36.5

5.1

%

26.2

6.2

%

Purchase accounting adjustments2.1

0.3

%

1.3

0.3

%

Acquisition and divestiture-related costs2.1

0.3

%

0.3

0.1

%

Significant litigation matters and settlements-

0.0

%

1.2

0.3

%

Restructuring and other, net1.4

0.2

%

0.3

0.1

%

Adjusted operating income$328.4

45.9

%

$189.6

45.1

%

(1) amounts may not sum due to roundingPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ^(1) (In millions, except per share data PKIand percentages) Three Months Ended

July 4, July 5, 2021 2020 Adjusted revenue: Revenue $1,228.5 $811.7

Purchase accounting adjustments 1.0 0.2

Adjusted revenue $1,229.5 $811.9

Adjusted gross margin: Gross margin $685.2 55.8 % $447.3 55.1 %

Amortization of intangible assets 22.7 1.8 % 16.0 2.0 %

Purchase accounting adjustments 3.3 0.3 % 0.6 0.1 %

Adjusted gross margin $711.2 57.8 % $463.9 57.1 %

Adjusted SG&A: SG&A $281.8 22.9 % $221.0 27.2 %

Amortization of intangible assets (36.9 ) -3.0 % (30.7 ) -3.8 %

Purchase accounting adjustments (0.2 ) 0.0 % (0.9 ) -0.1 %

Acquisition and divestiture-related (10.6 ) -0.9 % 5.2 0.6 %expensesSignificant litigation matters and - 0.0 % (3.2 ) -0.4 %settlementsSignificant environmental matters - 0.0 % (5.2 ) -0.6 %

Adjusted SG&A $234.0 19.0 % $186.2 22.9 %

R&D $65.8 5.4 % $49.5 6.1 %

Adjusted operating income: Operating income $332.5 27.1 % $175.6 21.6 %

Amortization of intangible assets 59.6 4.8 % 46.7 5.8 %

Purchase accounting adjustments 3.6 0.3 % 1.5 0.2 %

Acquisition and divestiture-related 10.6 0.9 % (5.2 ) -0.6 %costsSignificant litigation matters and - 0.0 % 3.2 0.4 %settlementsSignificant environmental matters - 0.0 % 5.2 0.6 %

Restructuring and other, net 5.1 0.4 % 1.2 0.1 %

Adjusted operating income $411.3 33.5 % $228.2 28.1 %

PKI Three Months Ended

July 4, July 5, 2021 2020 Adjusted EPS: GAAP EPS $2.19 $1.23

Discontinued operations, net of (0.00 ) (0.00 ) income taxesGAAP EPS from continuing operations 2.19 1.23

Amortization of intangible assets 0.53 0.42

Purchase accounting adjustments 0.03 0.01

Acquisition and divestiture-related 0.09 (0.05 ) costsChange in fair value of financial (0.08 ) - securitiesSignificant litigation matters and - 0.03 settlementsSignificant environmental matters - 0.05

Restructuring and other, net 0.05 0.01

Tax on above items (0.11 ) (0.13 )

Significant tax items 0.13 -

Adjusted EPS $2.83 $1.57

DAS Three Months Ended

July 4, July 5, 2021 2020 Adjusted revenue: Revenue $512.8 $391.0

Purchase accounting adjustments 0.8 -

Adjusted revenue $513.7 $391.0

Adjusted operating income: Operating income $64.2 12.5 % $39.4 10.1 %

Amortization of intangible assets 23.1 4.5 % 20.5 5.2 %

Purchase accounting adjustments 1.5 0.3 % 0.1 0.0 %

Acquisition and divestiture-related 8.6 1.7 % (5.5 ) -1.4 %costsSignificant litigation matters and - 0.0 % 2.0 0.5 %settlementsRestructuring and other, net 3.6 0.7 % 0.8 0.2 %

Adjusted operating income $100.9 19.6 % $57.4 14.7 %

Diagnostics Three Months Ended

July 4, July 5, 2021 2020 Adjusted revenue: Revenue $715.6 $420.7

Purchase accounting adjustments 0.2 0.2

Adjusted revenue $715.8 $420.9

Adjusted operating income: Operating income $286.3 40.0 % $160.3 38.1 %

Amortization of intangible assets 36.5 5.1 % 26.2 6.2 %

Purchase accounting adjustments 2.1 0.3 % 1.3 0.3 %

Acquisition and divestiture-related 2.1 0.3 % 0.3 0.1 %costsSignificant litigation matters and - 0.0 % 1.2 0.3 %settlementsRestructuring and other, net 1.4 0.2 % 0.3 0.1 %

Adjusted operating income $328.4 45.9 % $189.6 45.1 %

(1) amounts may not sum due to roundingPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)(In millions, except per share data and percentages)PKISix Months Ended

July 4, 2021July 5, 2020Adjusted revenue:Revenue$2,536.2

$1,464.1

Purchase accounting adjustments2.2

0.4

Adjusted revenue$2,538.4

$1,464.5

Adjusted gross margin:Gross margin$1,470.3

58.0

%

$755.4

51.6

%

Amortization of intangible assets43.0

1.7

%

32.1

2.2

%

Purchase accounting adjustments7.6

0.3

%

1.9

0.1

%

Adjusted gross margin$1,520.9

59.9

%

$789.3

53.9

%

Adjusted SG&A:SG&A$533.2

21.0

%

$429.6

29.3

%

Amortization of intangible assets(70.7

)

-2.8

%

(61.9

)

-4.2

%

Purchase accounting adjustments(0.5

)

0.0

%

11.4

0.8

%

Acquisition and divestiture-related expenses(20.3

)

-0.8

%

(7.1

)

-0.5

%

Significant litigation matters and settlements-

0.0

%

(3.6

)

-0.2

%

Significant environmental matters-

0.0

%

(5.2

)

-0.4

%

Adjusted SG&A$441.7

17.4

%

$363.1

24.8

%

R&D$126.0

5.0

%

$98.4

6.7

%

Adjusted operating income:Operating income$800.3

31.6

%

$220.3

15.0

%

Amortization of intangible assets113.7

4.5

%

94.0

6.4

%

Purchase accounting adjustments8.0

0.3

%

(9.6

)

-0.7

%

Acquisition and divestiture-related costs20.3

0.8

%

7.1

0.5

%

Significant litigation matters and settlements-

0.0

%

3.6

0.2

%

Significant environmental matters-

0.0

%

5.2

0.4

%

Restructuring and other, net10.8

0.4

%

7.0

0.5

%

Adjusted operating income$953.1

37.5

%

$327.8

22.4

%

PKISix Months Ended

July 4, 2021July 5, 2020Adjusted EPS:GAAP EPS$5.56

$1.53

Discontinued operations(0.00

)

(0.00

)

GAAP EPS from continuing operations5.56

1.53

Amortization of intangible assets1.01

0.84

Purchase accounting adjustments0.07

(0.09

)

Significant litigation matters and settlements-

0.03

Significant environmental matters-

0.05

Acquisition and divestiture-related costs0.13

0.06

Change in fair value of financial securities(0.25

)

-

Restructuring and other, net0.10

0.06

Tax on above items(0.21

)

(0.25

)

Significant tax items0.13

-

Adjusted EPS$6.55

$2.24

DASSix Months Ended

July 4, 2021July 5, 2020Adjusted revenue:Revenue$967.4

$789.4

Purchase accounting adjustments1.8

-

Adjusted revenue$969.3

$789.4

Adjusted operating income:Operating income$107.1

11.1

%

$67.9

8.6

%

Amortization of intangible assets43.5

4.5

%

41.2

5.2

%

Purchase accounting adjustments3.6

0.4

%

(11.3

)

-1.4

%

Acquisition and divestiture-related costs14.5

1.5

%

6.8

0.9

%

Significant litigation matters and settlements-

0.0

%

2.4

0.3

%

Restructuring and other, net7.7

0.8

%

4.8

0.6

%

Adjusted operating income$176.5

18.2

%

$111.8

14.2

%

DiagnosticsSix Months Ended

July 4, 2021July 5, 2020Adjusted revenue:Revenue$1,568.7

$674.7

Purchase accounting adjustments0.4

0.4

Adjusted revenue$1,569.1

$675.1

Adjusted operating income:Operating income$727.7

46.4

%

$189.9

28.1

%

Amortization of intangible assets70.2

4.5

%

52.8

7.8

%

Purchase accounting adjustments4.4

0.3

%

1.8

0.3

%

Acquisition and divestiture-related costs5.8

0.4

%

0.3

0.0

%

Significant litigation matters and settlements-

0.0

%

1.2

0.2

%

Restructuring and other, net3.1

0.2

%

2.3

0.3

%

Adjusted operating income$811.2

51.7

%

$248.2

36.8

%

(1) amounts may not sum due to roundingPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ^(1) (In millions, except per share data PKIand percentages) Six Months Ended

July 4, July 5, 2021 2020 Adjusted revenue: Revenue $2,536.2 $1,464.1

Purchase accounting adjustments 2.2 0.4

Adjusted revenue $2,538.4 $1,464.5

Adjusted gross margin: Gross margin $1,470.3 58.0 % $755.4 51.6 %

Amortization of intangible assets 43.0 1.7 % 32.1 2.2 %

Purchase accounting adjustments 7.6 0.3 % 1.9 0.1 %

Adjusted gross margin $1,520.9 59.9 % $789.3 53.9 %

Adjusted SG&A: SG&A $533.2 21.0 % $429.6 29.3 %

Amortization of intangible assets (70.7 ) -2.8 % (61.9 ) -4.2 %

Purchase accounting adjustments (0.5 ) 0.0 % 11.4 0.8 %

Acquisition and divestiture-related (20.3 ) -0.8 % (7.1 ) -0.5 %expensesSignificant litigation matters and - 0.0 % (3.6 ) -0.2 %settlementsSignificant environmental matters - 0.0 % (5.2 ) -0.4 %

Adjusted SG&A $441.7 17.4 % $363.1 24.8 %

R&D $126.0 5.0 % $98.4 6.7 %

Adjusted operating income: Operating income $800.3 31.6 % $220.3 15.0 %

Amortization of intangible assets 113.7 4.5 % 94.0 6.4 %

Purchase accounting adjustments 8.0 0.3 % (9.6 ) -0.7 %

Acquisition and divestiture-related 20.3 0.8 % 7.1 0.5 %costsSignificant litigation matters and - 0.0 % 3.6 0.2 %settlementsSignificant environmental matters - 0.0 % 5.2 0.4 %

Restructuring and other, net 10.8 0.4 % 7.0 0.5 %

Adjusted operating income $953.1 37.5 % $327.8 22.4 %

PKI Six Months Ended

July 4, July 5, 2021 2020 Adjusted EPS: GAAP EPS $5.56 $1.53

Discontinued operations (0.00 ) (0.00 )

GAAP EPS from continuing operations 5.56 1.53

Amortization of intangible assets 1.01 0.84

Purchase accounting adjustments 0.07 (0.09 )

Significant litigation matters and - 0.03 settlementsSignificant environmental matters - 0.05

Acquisition and divestiture-related 0.13 0.06 costsChange in fair value of financial (0.25 ) - securitiesRestructuring and other, net 0.10 0.06

Tax on above items (0.21 ) (0.25 )

Significant tax items 0.13 -

Adjusted EPS $6.55 $2.24

DAS Six Months Ended

July 4, July 5, 2021 2020 Adjusted revenue: Revenue $967.4 $789.4

Purchase accounting adjustments 1.8 -

Adjusted revenue $969.3 $789.4

Adjusted operating income: Operating income $107.1 11.1 % $67.9 8.6 %

Amortization of intangible assets 43.5 4.5 % 41.2 5.2 %

Purchase accounting adjustments 3.6 0.4 % (11.3 ) -1.4 %

Acquisition and divestiture-related 14.5 1.5 % 6.8 0.9 %costsSignificant litigation matters and - 0.0 % 2.4 0.3 %settlementsRestructuring and other, net 7.7 0.8 % 4.8 0.6 %

Adjusted operating income $176.5 18.2 % $111.8 14.2 %

Diagnostics Six Months Ended

July 4, July 5, 2021 2020 Adjusted revenue: Revenue $1,568.7 $674.7

Purchase accounting adjustments 0.4 0.4

Adjusted revenue $1,569.1 $675.1

Adjusted operating income: Operating income $727.7 46.4 % $189.9 28.1 %

Amortization of intangible assets 70.2 4.5 % 52.8 7.8 %

Purchase accounting adjustments 4.4 0.3 % 1.8 0.3 %

Acquisition and divestiture-related 5.8 0.4 % 0.3 0.0 %costsSignificant litigation matters and - 0.0 % 1.2 0.2 %settlementsRestructuring and other, net 3.1 0.2 % 2.3 0.3 %

Adjusted operating income $811.2 51.7 % $248.2 36.8 %

(1) amounts may not sum due to roundingPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)PKIThree Months EndedJuly 4, 2021Organic revenue growth:Reported revenue growth51%

Less: effect of foreign exchange rates5%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses6%

Organic revenue growth41%

DASThree Months EndedJuly 4, 2021Organic revenue growth:Reported revenue growth31%

Less: effect of foreign exchange rates4%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses6%

Organic revenue growth22%

DiagnosticsThree Months EndedJuly 4, 2021Organic revenue growth:Reported revenue growth70%

Less: effect of foreign exchange rates5%

Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses6%

Organic revenue growth59%

(1) amounts may not sum due to rounding Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term "adjusted revenue" to refer to GAAP revenue, including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term "adjusted revenue growth" to refer to the measure of comparing current period adjusted revenue with the corresponding period of the prior year.

We use the term "organic revenue" to refer to GAAP revenue, excluding the effect of foreign currency changes and revenue from recent acquisitions and divestitures and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term "organic revenue growth" to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.

We use the term "adjusted gross margin" to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions, asset impairments, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to business combination accounting rules. We use the related term "adjusted gross margin percentage" to refer to adjusted gross margin as a percentage of adjusted revenue.

We use the term "adjusted SG&A expense" to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive compensation, significant litigation matters and settlements, asset impairments, and significant environmental charges. We use the related term "adjusted SG&A percentage" to refer to adjusted SG&A expense as a percentage of adjusted revenue.

We use the term "adjusted R&D expense" to refer to GAAP R&D expense, excluding amortization of intangible assets and purchase accounting adjustments. We use the related term "adjusted R&D percentage" to refer to adjusted R&D expense as a percentage of adjusted revenue.

We use the term "adjusted net interest and other expense" to refer to GAAP net interest and other expense, excluding adjustments for mark-to-market accounting on post-retirement benefits, changes in the value of financial securities and debt extinguishment costs.

We use the term "adjusted operating income," to refer to GAAP operating income, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive compensation, significant litigation matters and settlements, significant environmental charges, asset impairments, and restructuring and other charges. We use the related terms "adjusted operating profit percentage," "adjusted operating profit margin," or "adjusted operating margin" to refer to adjusted operating income as a percentage of adjusted revenue.

We use the term "adjusted earnings per share," or "adjusted EPS," to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding discontinued operations, amortization of intangible assets, debt extinguishment costs, other purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive compensation, significant litigation matters and settlements, significant environmental charges, changes in the value of financial securities, disposition of businesses and assets, net, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events.

Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:

* Amortization of intangible assets- purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. * Debt extinguishment costs-we incur costs and income related to the extinguishment of debt; including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. * Revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules- accounting rules require us to account for the fair value of revenue from contracts assumed in connection with our acquisitions. As a result, our GAAP results reflect the fair value of those revenues, which is not the same as the revenue that otherwise would have been recorded by the acquired entity. We include such revenue in our non-GAAP measures because we believe the fair value of such revenue does not accurately reflect the performance of our ongoing operations for the period in which such revenue is recorded. * Other purchase accounting adjustments-accounting rules require us to adjust various balance sheet accounts, including inventory and deferred rent balances to fair value at the time of the acquisition. As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration from our non-GAAP measures because we believe these expenses or benefits do not accurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded. * Acquisition and divestiture-related expenses-we incur legal, due diligence, stay bonuses, incentive awards, interest expense, foreign exchange gains and losses, integration expenses and other costs related to acquisitions and divestitures. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. * Asset impairments-we incur expense related to asset impairments. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. * Acceleration of executive compensation-the announced retirement of a senior executive resulted in an acceleration of compensation expense. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations. * Restructuring and other charges-restructuring and other charges consist of employee severance, other exit costs as well as the cost of terminating certain lease agreements or contracts as well as costs associated with relocating facilities. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported. * Adjustments for mark-to-market accounting on post-retirement benefits-we exclude adjustments for mark-to-market accounting on post-retirement benefits, and therefore only our projected costs are used to calculate our non-GAAP measures. We exclude these adjustments because they do not represent what we believe our investors consider to be costs of producing our products, investments in technology and production, and costs to support our internal operating structure. * Significant litigation matters and settlements-we incur expenses related to significant litigation matters, including the costs to settle or resolve various claims and legal proceedings. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. * Significant environmental charges-we incur expenses related to significant environmental charges. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred. * Disposition of businesses and assets, net-we exclude the impact of gains or losses from the disposition of businesses and assets from our adjusted earnings per share. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported. * Impact of foreign currency changes on the current period- we exclude the impact of foreign currency from these measures by using the prior period's foreign currency exchange rates for the current period because foreign currency exchange rates are subject to volatility and can obscure underlying trends. * Impact of significant tax events - we exclude the impact of significant tax events, such as the Tax Cuts and Jobs Act of 2017. Management does not believe the impact of significant tax events accurately reflects the performance of our ongoing operations for the periods in which the impact of such events was recorded. * Changes in value of financial securities-we exclude the impact of changes in the value of financial securities. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported.

The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board's Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, debt extinguishment costs, other costs related to business acquisitions and divestitures, acceleration of executive compensation, significant litigation matters and settlements, significant environmental charges, changes in the fair value of financial securities, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, restructuring and other charges, and the revenue from contracts acquired with various acquisitions is calculated based on operational results and applicable jurisdictional law, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on the average rate currently in effect to determine our tax provision.

The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies.

Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.

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CONTACT: Investor Relations: PerkinElmer, Inc. Steve Willoughby (781) 663-5677 steve.willoughby@perkinelmer.com

CONTACT: Media Contact: PerkinElmer, Inc. Fara Goldberg (781) 663-5699 fara.goldberg@perkinelmer.com