Business Wire | Nov 2, 2021 04:08PM EDT

PerkinElmer Announces Financial Results for the Third Quarter of 2021

Nov. 02, 2021

WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 02, 2021--PerkinElmer, Inc. (NYSE: PKI), a global leader committed to innovating for a healthier world, today reported financial results for the third quarter ended October 3, 2021.

The Company reported GAAP earnings per share from continuing operations of $1.11, as compared to GAAP earnings per share from continuing operations of $1.57 in the third quarter of 2020. GAAP revenue for the quarter was $1.17 billion, as compared to $964 million in the third quarter of 2020. GAAP operating income from continuing operations for the quarter was $222 million, as compared to $248 million for the same period a year ago. GAAP operating profit margin was 19.0% as a percentage of revenue, as compared to 25.7% in the third quarter of 2020.

Adjusted earnings per share from continuing operations for the quarter was $2.31, as compared to $2.09 in the third quarter of 2020. Adjusted revenue for the quarter was $1.17 billion, as compared to $964 million in the third quarter of 2020. Adjusted operating income from continuing operations for the quarter was $359 million, as compared to $304 million for the same period a year ago. Adjusted operating profit margin was 30.8% as a percentage of adjusted revenue, as compared to 31.6% in the third quarter of 2020.

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

"I am proud of the team's tireless efforts to proactively respond to and execute for our customers around the world, driving double digit core growth in all major regions during the third quarter," said Prahlad Singh, president and chief executive officer of PerkinElmer. "Just as importantly, we are embracing new opportunities as we welcome the latest additions to the PerkinElmer family and develop innovative solutions to push the boundaries of what's possible."

Financial Overview by Reporting Segment for the Third Quarter

Discovery & Analytical Solutions

* Third quarter 2021 revenue was $513 million, as compared to $424 million for the third quarter of 2020. Reported revenue increased 21% and organic revenue increased 10% as compared to the third quarter of 2020.

* Third quarter 2021 operating income from continuing operations was $7 million, as compared to $43 million for the third quarter of 2020.

* Third quarter 2021 adjusted operating income was $95 million, as compared to $62 million for the third quarter of 2020.

Diagnostics

* Third quarter 2021 revenue was $654 million, as compared to $540 million for the third quarter of 2020. Reported revenue increased 21% and organic revenue increased 13% as compared to the third quarter of 2020.

* Third quarter 2021 operating income from continuing operations was $238 million, as compared to $224 million for the third quarter of 2020.

* Third quarter 2021 adjusted operating income was $287 million, as compared to $260 million for the third quarter of 2020.

Initiates Fourth Quarter Guidance and Raises Full Year 2021 Guidance

For the fourth quarter of 2021, the Company forecasts adjusted revenue of approximately $1.2 billion and adjusted earnings per share of $2.05.

For the full year 2021, the Company now forecasts adjusted revenue of $4.9 billion and adjusted earnings per share of $10.81.

Guidance for the fourth 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.

Conference Call and Webcast Information

The Company will discuss its third quarter 2021 results and its outlook for business trends during a conference call on November 2, 2021 at 5:00 p.m. Eastern Time. A live audio webcast of the call will be available on the Investors section of the Company's website, www.perkinelmer.com.

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," "estimates", "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 15,000 employees serving customers in more than 190 countries, and is a component of the S&P 500 Index. Additional information is available at www.perkinelmer.com.

PerkinElmer, Inc. and Subsidiaries

CONDENSED CONSOLIDATED INCOME STATEMENTS

Three Months Ended Nine Months Ended

(In thousands, October 3, October 4, October 3, October 4,except per share 2021 2020 2021 2020data)



Revenue $ 1,166,684 $ 964,025 $ 3,702,844 $ 2,428,139



Cost of revenue 534,848 436,580 1,600,668 1,145,327

Selling, general 339,047 225,249 872,276 654,844 and administrativeexpensesResearch and 68,608 50,131 194,648 148,566 developmentexpensesRestructuring and 2,211 4,059 13,018 11,075 other costs, net

Operating income 221,970 248,006 1,022,234 468,327 from continuingoperations

Interest income (544 ) (205 ) (1,322 ) (662 )

Interest expense 43,531 12,057 74,407 37,308

Change in fair 19,365 (35 ) (8,566 ) (35 )value of financialsecuritiesOther (income) (2,050 ) 2,432 (10,492 ) (1,557 )expense, net

Income fromcontinuing 161,668 233,757 968,207 433,273 operations, beforeincome taxes

Provision for 33,883 57,021 215,111 85,609 income taxes

Income from 127,785 176,736 753,096 347,664 continuingoperations

Loss on dispositionof discontinued - - - - operations, beforeincome taxesProvision forincome taxes on 47 37 123 138 discontinuedoperations anddispositions

Loss fromdiscontinued (47 ) (37 ) (123 ) (138 )operations anddispositions

Net income $ 127,738 $ 176,699 $ 752,973 $ 347,526





Diluted earnings per share:Income from $ 1.11 $ 1.57 $ 6.65 $ 3.11 continuingoperations

Loss fromdiscontinued (0.00 ) (0.00 ) (0.00 ) (0.00 )operations anddispositions

Net income $ 1.11 $ 1.57 $ 6.65 $ 3.10





Weighted averagediluted shares of 115,022 112,292 113,307 111,935 common stockoutstanding



ABOVE PREPARED IN ACCORDANCE WITH GAAP





Additional SupplementalInformation ^(1):(per share, continuingoperations)

GAAP EPS from $ 1.11 $ 1.57 $ 6.65 $ 3.11 continuingoperationsAmortization of 0.62 0.44 1.63 1.28 intangible assetsPurchase accounting 0.09 0.03 0.17 (0.06 )adjustmentsAcquisition and 0.63 0.00 0.77 0.07 divestiture-relatedcostsChange in fair 0.17 (0.00 ) (0.08 ) (0.00 )value of financialsecuritiesAsset impairment 0.03 - 0.03 -

Significant - - - 0.03 litigation mattersand settlementsSignificant - - - 0.05 environmentalmattersDisposition of (0.02 ) - (0.02 ) - businesses andassets, netRestructuring and 0.02 0.04 0.11 0.10 other, netTax on above items (0.34 ) (0.12 ) (0.55 ) (0.37 )

Significant tax (0.01 ) 0.14 0.12 0.14 itemsAdjusted EPS $ 2.31 $ 2.09 $ 8.84 $ 4.33

(1) amounts may notsum due to rounding PerkinElmer, Inc. and SubsidiariesREVENUE AND OPERATING INCOME (LOSS) Three Months Ended Nine Months Ended(In thousands, except October 3, October October 3, October 4,percentages) 2021 4, 2020 2021 2020 DAS Reported revenue $ 512,879 $ 423,623 $ 1,480,317 $ 1,213,020

Purchase accounting - - 1,849 - adjustments Adjusted revenue 512,879 423,623 1,482,166 1,213,020

Reported operating 7,146 42,689 114,248 110,632 income from continued operations OP% 1.4 % 10.1 % 7.7 % 9.1 %

Amortization of 33,437 17,607 76,929 58,823 intangible assets Purchase accounting 5,673 - 9,322 (11,334 ) adjustments Acquisition and 47,059 212 61,564 7,045 divestiture-related costs Significant - - - 2,399 litigation matters and settlements Restructuring and 1,624 1,979 9,368 6,733 other, net Adjusted operating 94,939 62,487 271,431 174,298 income Adjusted OP% 18.5 % 14.8 % 18.3 % 14.4 %

Diagnostics Reported revenue 653,805 540,402 2,222,527 1,215,119

Purchase accounting 199 196 597 588 adjustments Adjusted revenue 654,004 540,598 2,223,124 1,215,707

Reported operating 237,903 223,819 965,650 413,710 income from continued operations OP% 36.4 % 41.4 % 43.4 % 34.0 %

Amortization of 37,517 31,292 107,743 84,043 intangible assets Purchase accounting 5,107 3,107 9,485 4,872 adjustments Asset impairment 3,868 - 3,868 -

Acquisition and 2,023 18 7,833 323 divestiture-related costs Significant - - - 1,245 litigation matters and settlements Restructuring and 587 2,080 3,650 4,342 other, net Adjusted operating 287,005 260,316 1,098,229 508,535 income Adjusted OP% 43.9 % 48.2 % 49.4 % 41.8 %

Corporate Reported operating (23,079 ) (18,502 ) (57,664 ) (56,015 ) loss Significant - - - 5,242 environmental matters Adjusted operating (23,079 ) (18,502 ) (57,664 ) (50,773 ) loss Continuing Reported revenue $ 1,166,684 $ 964,025 $ 3,702,844 $ 2,428,139 Operations Purchase accounting 199 196 2,446 588 adjustments Adjusted revenue 1,166,883 964,221 3,705,290 2,428,727

Reported operating 221,970 248,006 1,022,234 468,327 income from continued operations OP% 19.0 % 25.7 % 27.6 % 19.3 %

Amortization of 70,954 48,899 184,672 142,866 intangible assets Purchase accounting 10,780 3,107 18,807 (6,462 ) adjustments Acquisition and 49,082 230 69,397 7,368 divestiture-related costs Asset impairment 3,868 - 3,868 -

Significant - - - 3,644 litigation matters and settlements Significant - - - 5,242 environmental matters Restructuring and 2,211 4,059 13,018 11,075 other, net Adjusted operating $ 358,865 $ 304,301 $ 1,311,996 $ 632,060 income Adjusted OP% 30.8 % 31.6 % 35.4 % 26.0 %

REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCEWITH GAAPPerkinElmer, Inc. and SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) October 3, January 3, 2021 2021

Current assets:

Cash and cash equivalents $ 487,373 $ 402,036

Accounts receivable, net 947,805 1,155,109

Inventories 645,419 514,567

Other current assets 170,207 167,208

Total current assets 2,250,804 2,238,920



Property, plant and equipment, net 537,710 368,304

Operating lease right-of-use assets 208,661 207,236

Intangible assets, net 4,160,736 1,365,693

Goodwill 7,420,271 3,447,114

Other assets, net 321,667 333,048

Total assets $ 14,899,849 $ 7,960,315



Current liabilities:

Current portion of long-term debt $ 4,485 $ 380,948

Accounts payable 320,435 327,325

Accrued expenses and other current 820,109 943,916liabilities

Total current liabilities 1,145,029 1,652,189



Long-term debt 5,099,077 1,609,701

Long-term liabilities 1,512,153 774,531

Operating lease liabilities 185,005 188,402

Total liabilities 7,941,264 4,224,823



Total stockholders' equity 6,958,585 3,735,492

Total liabilities and stockholders' equity $ 14,899,849 $ 7,960,315

PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended Nine Months Ended

October 3, October 4, October 3, October 4, 2021 2020 2021 2020

(In thousands) (In thousands)



Operating activities:Net income $ 127,738 $ 176,699 $ 752,973 $ 347,526

Loss fromdiscontinued 47 37 123 138 operations anddispositions, netof income taxesIncome from 127,785 176,736 753,096 347,664 continuingoperationsAdjustments toreconcile income from continuingoperationsto net cashprovided by continuingoperations:Stock-based 6,597 7,117 18,957 19,770 compensationRestructuring and 2,211 4,059 13,018 11,075 other, netDepreciation and 87,113 62,474 232,935 182,521 amortizationChange in fair 1,076 2,639 1,553 (8,807 )value of contingentconsiderationAmortization ofdeferred debt 1,500 917 3,224 2,559 financing costs andaccretion ofdiscountsChange in fair 19,365 - (8,566 ) - value of financialsecuritiesAmortization of 9,425 272 14,728 1,757 acquired inventoryrevaluationLoss on disposition (1,970 ) 401 (1,970 ) 886 of businesses andassets, netAsset impairment 3,868 - 3,868 -

Changes in assetsand liabilities which provided(used) cash,excludingeffects from companies acquired:Accounts 87,115 (72,007 ) 242,386 (67,695 )receivable, netInventories (923 ) 5,773 6,316 (120,934 )

Accounts payable (10,206 ) (4,517 ) (37,002 ) 16,391

Accrued expenses (19,161 ) 27,569 (167,385 ) 24,893 and otherNet cash providedby operating 313,795 211,433 1,075,158 410,080 activities ofcontinuingoperations

Investing activities:Capital (32,784 ) (20,253 ) (67,459 ) (57,391 )expendituresPurchases of (4,623 ) (2,166 ) (19,130 ) (9,559 )investmentsProceeds from - - - 131 surrender of lifeinsurance policiesProceeds fromdisposition of 1,460 608 1,460 2,423 businesses andassetsCash paid foracquisitions, netof cash, cash (3,264,981 ) (712 ) (3,967,678 ) (3,702 )equivalents andrestricted cashacquiredNet cash used ininvesting (3,300,928 ) (22,523 ) (4,052,807 ) (68,098 )activities ofcontinuingoperations

Financing Activities:Payments on (427,580 ) (225,210 ) (1,191,125 ) (515,210 )borrowingsProceeds from 415,282 69,000 1,144,282 257,000 borrowingsProceeds from term 500,000 - 500,000 - loanPayments of senior - - (339,605 ) - debtProceeds from sale 2,286,239 - 3,086,095 - of senior debtPayments of debt (22,741 ) - (30,983 ) - financing costsSettlement of cash 4,477 (7,126 ) (1,459 ) (2,089 )flow hedgesNet payments on (905 ) (2,088 ) (12,731 ) (8,124 )other creditfacilitiesPayments foracquisition-related - - - (5,200 )contingentconsiderationProceeds fromissuance of common 8,575 17,454 22,760 27,528 stock under stockplansPurchases of common (89 ) (159 ) (73,013 ) (6,829 )stockDividends paid (7,842 ) (7,809 ) (23,539 ) (23,381 )

Net cash providedby (used in)financing 2,755,416 (155,938 ) 3,080,682 (276,305 )activities ofcontinuingoperations

Effect of exchangerate changes on (5,925 ) 5,490 (16,584 ) 832 cash, cashequivalents, andrestricted cash

Net (decrease)increase in cash, (237,642 ) 38,462 86,449 66,509 cash equivalents,and restricted cashCash, cashequivalents, and 726,704 219,941 402,613 191,894 restricted cash atbeginning of periodCash, cashequivalents, and $ 489,062 $ 258,403 $ 489,062 $ 258,403 restricted cash atend of period



Supplemental disclosure of cashflow information: Reconciliation ofcash, cashequivalents andrestricted cashreported within theconsolidated balance sheets thatsum to the totalshown in theconsolidatedstatements of cashflows:

Cash and cash $ 487,373 $ 258,293 $ 487,373 $ 258,293 equivalentsRestricted cash 1,689 110 1,689 110 included in othercurrent assetsTotal cash, cash $ 489,062 $ 258,403 $ 489,062 $ 258,403 equivalents andrestricted cash PREPARED IN ACCORDANCE WITH GAAPPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ^(1)

(In millions, except per share data PKIand percentages) Three Months Ended

October 3, October 4, 2021 2020



Adjusted revenue:

Revenue $ 1,166.7 $ 964.0

Purchase accounting adjustments 0.2 0.2

Adjusted revenue $ 1,166.9 $ 964.2



Adjusted gross margin:

Gross margin $ 631.8 54.2 % $ 527.4 54.7 %

Amortization of intangible assets 32.1 2.8 % 16.7 1.7 %

Purchase accounting adjustments 9.6 0.8 % 0.5 0.0 %

Adjusted gross margin $ 673.5 57.7 % $ 544.6 56.5 %



Adjusted SG&A:

SG&A $ 339.0 29.1 % $ 225.2 23.4 %

Amortization of intangible assets (38.9 ) -3.3 % (32.2 ) -3.3 %

Purchase accounting adjustments (1.2 ) -0.1 % (2.6 ) -0.3 %

Acquisition and divestiture-related (49.1 ) -4.2 % (0.2 ) 0.0 %costsAsset impairment (3.9 ) -0.3 % - 0.0 %

Adjusted SG&A $ 246.1 21.1 % $ 190.2 19.7 %



R&D $ 68.6 5.9 % $ 50.1 5.2 %



Adjusted operating income:

Operating income $ 222.0 19.0 % $ 248.0 25.7 %

Amortization of intangible assets 71.0 6.1 % 48.9 5.1 %

Purchase accounting adjustments 10.8 0.9 % 3.1 0.3 %

Acquisition and divestiture-related 49.1 4.2 % 0.2 0.0 %costsAsset impairment 3.9 0.3 % - 0.0 %

Restructuring and other, net 2.2 0.2 % 4.1 0.4 %

Adjusted operating income $ 358.9 30.8 % $ 304.3 31.6 %



PKI

Three Months Ended

October 3, October 4, 2021 2020



Adjusted EPS:

GAAP EPS $ 1.11 $ 1.57

Discontinued operations, net of (0.00 ) (0.00 )income taxesGAAP EPS from continuing operations 1.11 1.57

Amortization of intangible assets 0.62 0.44

Purchase accounting adjustments 0.09 0.03

Acquisition and divestiture-related 0.63 0.00 costsChange in fair value of financial 0.17 (0.00 )securitiesAsset impairment 0.03 -

Disposition of businesses and (0.02 ) - assets, netRestructuring and other, net 0.02 0.04

Tax on above items (0.34 ) (0.12 )

Significant tax items (0.01 ) 0.14

Adjusted EPS $ 2.31 $ 2.09



DAS

Three Months Ended

October 3, October 4, 2021 2020



Adjusted revenue:

Revenue $ 512.9 $ 423.6

Purchase accounting adjustments - -

Adjusted revenue $ 512.9 $ 423.6



Adjusted operating income:

Operating income $ 7.1 1.4 % $ 42.7 10.1 %

Amortization of intangible assets 33.4 6.5 % 17.6 4.2 %

Purchase accounting adjustments 5.7 1.1 % - 0.0 %

Acquisition and divestiture-related 47.1 9.2 % 0.2 0.1 %costsRestructuring and other, net 1.6 0.3 % 2.0 0.5 %

Adjusted operating income $ 94.9 18.5 % $ 62.5 14.8 %



Diagnostics

Three Months Ended

October 3, October 4, 2021 2020



Adjusted revenue:

Revenue $ 653.8 $ 540.4

Purchase accounting adjustments 0.2 0.2

Adjusted revenue $ 654.0 $ 540.6



Adjusted operating income:

Operating income $ 237.9 36.4 % $ 223.8 41.4 %

Amortization of intangible assets 37.5 5.7 % 31.3 5.8 %

Purchase accounting adjustments 5.1 0.8 % 3.1 0.6 %

Asset impairment 3.9 0.6 % - 0.0 %

Acquisition and divestiture-related 2.0 0.3 % 0.0 0.0 %costsRestructuring and other, net 0.6 0.1 % 2.1 0.4 %

Adjusted operating income $ 287.0 43.9 % $ 260.3 48.2 %



(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) Nine Months Ended

October 3, October 4, 2021 2020

Adjusted revenue:Revenue $ 3,702.8 $ 2,428.1

Purchase accounting adjustments 2.4 0.6

Adjusted revenue $ 3,705.3 $ 2,428.7

Adjusted gross margin:Gross margin $ 2,102.2 56.8 % $ 1,282.8 52.8 %

Amortization of intangible assets 75.1 2.0 % 48.8 2.0 %

Purchase accounting adjustments 17.2 0.5 % 2.3 0.1 %

Adjusted gross margin $ 2,194.4 59.2 % $ 1,333.9 54.9 %

Adjusted SG&A:SG&A $ 872.3 23.6 % $ 654.8 27.0 %

Amortization of intangible assets (109.6 ) -3.0 % (94.1 ) -3.9 %

Purchase accounting adjustments (1.6 ) 0.0 % 8.8 0.4 %

Acquisition and divestiture-related (69.4 ) -1.9 % (7.4 ) -0.3 %costsAsset impairment (3.9 ) -0.1 % - 0.0 %

Significant litigation matters and - 0.0 % (3.6 ) -0.2 %settlementsSignificant environmental matters - 0.0 % (5.2 ) -0.2 %

Adjusted SG&A $ 687.8 18.6 % $ 553.3 22.8 %

R&D $ 194.6 5.3 % $ 148.6 6.1 %

Adjusted operating income:Operating income $ 1,022.2 27.6 % $ 468.3 19.3 %

Amortization of intangible assets 184.7 5.0 % 142.9 5.9 %

Purchase accounting adjustments 18.8 0.5 % (6.5 ) -0.3 %

Acquisition and divestiture-related 69.4 1.9 % 7.4 0.3 %costsAsset impairment 3.9 0.1 % - 0.0 %

Significant litigation matters and - 0.0 % 3.6 0.2 %settlementsSignificant environmental matters - 0.0 % 5.2 0.2 %

Restructuring and other, net 13.0 0.4 % 11.1 0.5 %

Adjusted operating income $ 1,312.0 35.4 % $ 632.1 26.0 %

PKI Nine Months Ended

October 3, October 4, 2021 2020

Adjusted EPS:GAAP EPS $ 6.65 $ 3.10

Discontinued operations (0.00 ) (0.00 )

GAAP EPS from continuing operations 6.65 3.11

Amortization of intangible assets 1.63 1.28

Purchase accounting adjustments 0.17 (0.06 )

Significant litigation matters and - 0.03 settlementsSignificant environmental matters - 0.05

Acquisition and divestiture-related 0.77 0.07 costsChange in fair value of financial (0.08 ) (0.00 )securitiesAsset impairment 0.03 -

Disposition of businesses and (0.02 ) - assets, netRestructuring and other, net 0.11 0.10

Tax on above items (0.55 ) (0.37 )

Significant tax items 0.12 0.14

Adjusted EPS $ 8.84 $ 4.33

DAS Nine Months Ended

October 3, October 4, 2021 2020

Adjusted revenue:Revenue $ 1,480.3 $ 1,213.0

Purchase accounting adjustments 1.8 -

Adjusted revenue $ 1,482.2 $ 1,213.0

Adjusted operating income:Operating income $ 114.2 7.7 % $ 110.6 9.1 %

Amortization of intangible assets 76.9 5.2 % 58.8 4.8 %

Purchase accounting adjustments 9.3 0.6 % (11.3 ) -0.9 %

Acquisition and divestiture-related 61.6 4.2 % 7.0 0.6 %costsSignificant litigation matters and - 0.0 % 2.4 0.2 %settlementsRestructuring and other, net 9.4 0.6 % 6.7 0.6 %

Adjusted operating income $ 271.4 18.3 % $ 174.3 14.4 %

Diagnostics Nine Months Ended

October 3, October 4, 2021 2020

Adjusted revenue:Revenue $ 2,222.5 $ 1,215.1

Purchase accounting adjustments 0.6 0.6

Adjusted revenue $ 2,223.1 $ 1,215.7

Adjusted operating income:Operating income $ 965.7 43.4 % $ 413.7 34.0 %

Amortization of intangible assets 107.7 4.8 % 84.0 6.9 %

Purchase accounting adjustments 9.5 0.4 % 4.9 0.4 %

Asset impairment 3.9 0.2 % - 0.0 %

Acquisition and divestiture-related 7.8 0.4 % 0.3 0.0 %costsSignificant litigation matters and - 0.0 % 1.2 0.1 %settlementsRestructuring and other, net 3.7 0.2 % 4.3 0.4 %

Adjusted operating income $ 1,098.2 49.4 % $ 508.5 41.8 %

(1) amounts may not sum due toroundingPerkinElmer, Inc. and SubsidiariesRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ^(1) PKI

Three Months Ended

October 3, 2021

Organic revenue growth:

Reported revenue growth 21%

Less: effect of foreign exchange rates 1%

Less: effect of acquisitions including purchase accounting 8% adjustments and impact of divested businessesOrganic revenue growth 12%





DAS

Three Months Ended

October 3, 2021

Organic revenue growth:

Reported revenue growth 21%

Less: effect of foreign exchange rates 1%

Less: effect of acquisitions including purchase accounting 10% adjustments and impact of divested businessesOrganic revenue growth 10%





Diagnostics

Three Months Ended

October 3, 2021

Organic revenue growth:

Reported revenue growth 21%

Less: effect of foreign exchange rates 2%

Less: effect of acquisitions including purchase accounting 7% adjustments and impact of divested businessesOrganic revenue growth 13%

(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