Company Raises Financial Guidance for the Full Year
WALTHAM, Mass., July 26 /PRNewswire-FirstCall/ -- Thermo Fisher
Scientific Inc. (NYSE: TMO), the world leader in serving science, reported
that revenues increased to $2.39 billion in the second quarter of 2007
(largely as a result of the November 2006 merger with Fisher Scientific),
compared with $713 million in the 2006 quarter. GAAP diluted earnings per
share (EPS) were $.37 in 2007, versus $.29 in the year-ago period. GAAP
operating income for the 2007 quarter was $243 million, compared with $72
million in 2006, and GAAP operating margin was 10.2%, compared with 10.1% a
year ago.
Adjusted EPS grew 55% to $.65 in the second quarter of 2007, versus
$.42 in the 2006 quarter. For a better year-to-year comparison of the
company's operating performance, we are presenting our revenues and
adjusted operating results on a pro forma basis, as if Thermo and Fisher
had been combined for all of 2006. Second quarter revenues grew 9% over pro
forma 2006 revenues of $2.19 billion. Acquisitions (including those by
Fisher prior to the merger) contributed 1% of the growth, and currency
translation increased revenues by 2%. Adjusted operating income for the
quarter increased 25% over pro forma 2006 results, and adjusted operating
margin expanded 220 basis points to 17.0%, compared with pro forma adjusted
operating margin of 14.8% in the 2006 period. Adjusted EPS, adjusted
operating income and adjusted operating margin are non-GAAP measures that
exclude certain items detailed later in this press release under the
heading "Use of Non-GAAP Financial Measures."
Second Quarter Highlights
-- Revenues grew 9% over pro forma 2006
-- Adjusted EPS rose 55%
-- Adjusted operating income increased 25% over pro forma 2006
-- Adjusted operating margin expanded 220 basis points over pro forma 2006
-- New integrated solutions launched at ASMS (American Society for Mass
Spectrometry) Conference expand mass spectrometry portfolio
-- Opened new RNAi services laboratory to support drug discovery and
development
-- Sales of mercury monitoring systems to U.S. utilities continued at
record pace
-- Introduced new series of portable elemental analyzers after quarter-end
"We are pleased to report another record quarter," said Marijn E.
Dekkers, president and chief executive officer of Thermo Fisher Scientific.
"We achieved excellent adjusted EPS and operating income results on good
top-line growth, and continued our trend of significant operating margin
expansion. We've now delivered three strong quarters as Thermo Fisher
Scientific, clearly demonstrating that we are successfully operating as one
company. High demand for our new products, healthy end markets and our
continued operating discipline are all coming together to fuel this
excellent performance.
"Our customers are recognizing the true extent of our combined
capabilities, and we are intent on leveraging our breadth of technologies
and services to meet their needs. We continue to develop the integrated
workflows our life sciences customers rely on to accelerate their research,
from new mass spectrometry solutions introduced at ASMS to our new services
for RNAi- based screening. Outside the laboratory, our technologies are
helping customers comply with increasing environmental and consumer safety
regulations, leading to record sales of our portable elemental analysis
instruments and air-quality monitors."
Mr. Dekkers added, "Based on our strong earnings in the first half, we
are again raising our adjusted EPS guidance for the full year, and now
expect earnings to be in the range of $2.50 to $2.56 for 2007, versus the
$2.43 to $2.53 that we announced last quarter. This would lead to adjusted
EPS growth of 31 to 34% over 2006. We are also increasing our revenue
guidance to a range of $9.50 to $9.55 billion for 2007, from the $9.4 to
$9.5 billion we previously announced. This would represent an increase of
approximately 7 to 8% over our pro forma 2006 results." (This guidance
includes the favorable impact of a full year of results from 2006
acquisitions and also takes into account the unfavorable effects of
2006/2007 divestitures. The 2007 guidance does not factor in any future
acquisitions or divestitures, and is based on present currency exchange
rates. In addition, the adjusted EPS estimate excludes amortization expense
for acquisition-related intangible assets and certain other items detailed
later in this press release under the heading "Use of Non-GAAP Financial
Measures.")
Management uses adjusted operating results to monitor and evaluate
performance of the company's business segments. Results in the following
segment information are reported on a pro forma adjusted basis for 2006, as
if Thermo and Fisher had been combined for the entire year.
Analytical Technologies Segment
Revenues in the Analytical Technologies Segment grew 13% in the second
quarter of 2007 to $1.04 billion, compared with pro forma 2006 revenues of
$915 million. Operating income increased 32% in the second quarter of 2007,
and operating margin rose to 19.8%, versus pro forma 2006 results of 17.0%.
Laboratory Products and Services Segment
In the Laboratory Products and Services Segment, revenues grew 6% in
the second quarter of 2007 to $1.43 billion, compared with pro forma 2006
revenues of $1.35 billion. Operating income increased 18% in the second
quarter of 2007, and operating margin rose to 13.9%, versus pro forma 2006
results of 12.5%.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), we use certain non-GAAP
financial measures, including adjusted EPS, adjusted operating income and
adjusted operating margin, which exclude restructuring and other
costs/income and amortization of acquisition-related intangible assets.
Adjusted EPS also excludes certain other gains and losses, tax
provisions/benefits related to the previous items, benefits from tax credit
carryforwards, the impact of significant tax audits or events and
discontinued operations. We exclude the above items because they are
outside of our normal operations and/or, in certain cases, are difficult to
forecast accurately for future periods. We believe that the use of non-GAAP
measures helps investors to gain a better understanding of our core
operating results and future prospects, consistent with how management
measures and forecasts the company's performance, especially when comparing
such results to previous periods or forecasts.
For example:
We exclude costs and tax effects associated with restructuring
activities, such as reducing overhead and consolidating facilities in
connection with the Fisher merger and our Kendro acquisition. We believe
that the costs related to these restructuring activities are not indicative
of our normal operating costs.
We exclude certain acquisition-related costs, including charges for the
sale of inventories revalued at the date of acquisition and professional
fees related to the merger with Fisher. We exclude these costs because we
do not believe they are indicative of our normal operating costs.
We exclude the expense and tax effects associated with the amortization
of acquisition-related intangible assets because a significant portion of
the purchase price for acquisitions may be allocated to intangible assets
that have lives of 5 to 20 years. Our adjusted EPS estimate for 2007
excludes approximately $.84 of expense for the amortization of
acquisition-related intangible assets for acquisitions completed through
the second quarter of 2007. Exclusion of the amortization expense allows
comparisons of operating results that are consistent over time for both our
newly acquired and long- held businesses and with both acquisitive and
non-acquisitive peer companies.
We also exclude certain gains/losses and related tax effects, benefits
from tax credit carryforwards and the impact of significant tax audits or
events, which are either isolated or cannot be expected to occur again with
any regularity or predictability and that we believe are not indicative of
our normal operating gains and losses. We exclude gains/losses from items
such as the sale of a business or real estate, the early retirement of debt
and debt facilities and discontinued operations.
Thermo Fisher's management uses these non-GAAP measures, in addition to
GAAP financial measures, as the basis for measuring the company's core
operating performance and comparing such performance to that of prior
periods and to the performance of our competitors. Such measures are also
used by management in their financial and operating decision-making and for
compensation purposes.
The non-GAAP financial measures of Thermo Fisher's results of
operations included in this press release are not meant to be considered
superior to or a substitute for Thermo Fisher's results of operations
prepared in accordance with GAAP. Reconciliations of such non-GAAP
financial measures to the most directly comparable GAAP financial measures
are set forth in the accompanying tables. Thermo Fisher's earnings
guidance, however, is only provided on an adjusted basis. It is not
feasible to provide GAAP EPS guidance because the items excluded, other
than the amortization expense, are difficult to predict and estimate and
are primarily dependent on future events, such as acquisitions and
decisions concerning the location and timing of facility consolidations.
Conference Call
Thermo Fisher Scientific will hold its earnings conference call today,
July 26, at 9:00 a.m. Eastern time. To listen, dial 866-802-4321 within the
U.S. or 703-639-1318 outside the U.S., and use conference ID 1026517. You
may also listen to the call live on our Website, http://www.thermofisher.com, by
clicking on "Investors." You will find this press release, including the
accompanying reconciliation of non-GAAP financial measures and related
information, in that section of our Website under "Quarterly Results." An
audio archive of the call will be available under "Webcasts and
Presentations" through Friday, August 31, 2007.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. (NYSE: TMO) is the world leader in
serving science, enabling our customers to make the world healthier,
cleaner and safer. With an annual revenue rate of more than $9 billion, we
employ 30,000 people and serve over 350,000 customers within pharmaceutical
and biotech companies, hospitals and clinical diagnostic labs,
universities, research institutions and government agencies, as well as
environmental and industrial process control settings. Serving customers
through two premier brands, Thermo Scientific and Fisher Scientific, we
help solve analytical challenges from routine testing to complex research
and discovery. Thermo Scientific offers customers a complete range of
high-end analytical instruments as well as laboratory equipment, software,
services, consumables and reagents to enable integrated laboratory workflow
solutions. Fisher Scientific provides a complete portfolio of laboratory
equipment, chemicals, supplies and services used in healthcare, scientific
research, safety and education. Together, we offer the most convenient
purchasing options to customers and continuously advance our technologies
to accelerate the pace of scientific discovery, enhance value for customers
and fuel growth for shareholders and employees alike. Visit
http://www.thermofisher.com.
The following constitutes a "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: This press release contains
forward- looking statements that involve a number of risks and
uncertainties. Important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements are set
forth in the Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2007, under the caption "Risk Factors," which is on file with the
Securities and Exchange Commission and available in the "Investors" section
of our Website under the heading "SEC Filings." We also may make
forward-looking statements about the benefits of the merger of Thermo
Electron and Fisher Scientific, including statements about future financial
and operating results, the new company's plans, objectives, expectations
and intentions and other statements that are not historical facts.
Important factors that could cause actual results to differ materially from
those indicated by forward-looking statements include risks and
uncertainties relating to: the risk that the businesses will not be
integrated successfully; the risk that the cost savings and any other
synergies from the transaction may not be fully realized or may take longer
to realize than expected; disruption from the transaction making it more
difficult to maintain relationships with customers, employees or suppliers;
competition and its effect on pricing, spending, third-party relationships
and revenues; the need to develop new products and adapt to significant
technological change; implementation of strategies for improving internal
growth; use and protection of intellectual property; dependence on
customers' capital spending policies and government funding policies;
realization of potential future savings from new productivity initiatives;
general worldwide economic conditions and related uncertainties; the effect
of changes in governmental regulations; the effect of exchange rate
fluctuations on international operations; the effect of laws and
regulations governing government contracts; the effect of competing with
certain of our customers and suppliers; and the effect of rapid changes in
the healthcare industry. While we may elect to update forward-looking
statements at some point in the future, we specifically disclaim any
obligation to do so, even if our estimates change and, therefore, you
should not rely on these forward-looking statements as representing our
views as of any date subsequent to today.
Media Contact Information:
Lori Gorski
Phone: 781-622-1242
E-mail: lori.gorski@thermofisher.com
Investor Contact Information:
Ken Apicerno
Phone: 781-622-1111
E-mail: ken.apicerno@thermofisher.com
Consolidated Statement of Income (unaudited) (a)
Three Months Ended
June 30, % of July 1, % of
(In millions except per share amounts) 2007 Revenues 2006 Revenues
Revenues $2,385.9 $713.5
Costs and Operating Expenses (f)(g):
Cost of revenues 1,419.1 59.5% 388.9 54.5%
Selling, general and administrative
expenses 514.7 21.6% 181.3 25.4%
Amortization of acquisition-related
intangible assets 142.1 6.0% 25.6 3.6%
Research and development expenses 58.7 2.5% 40.7 5.7%
Restructuring and other costs, net (d) 8.3 0.3% 4.8 0.7%
2,142.9 89.8% 641.3 89.9%
Operating Income 243.0 10.2% 72.2 10.1%
Interest Income 10.6 3.4
Interest Expense (33.2) (8.0)
Other Income, Net 1.9 1.2
Income from Continuing Operations
Before Income Taxes 222.3 68.8
Provision for Income Taxes (34.4) (19.8)
Income from Continuing Operations 187.9 49.0
Loss on Disposal of Discontinued
Operations (net of income tax
provision of $1.8 in 2007; includes
income tax benefit of $0.6 in 2006) (24.0) (1.1)
Net Income $163.9 6.9% $47.9 6.7%
Earnings per Share from Continuing
Operations:
Basic $.44 $.30
Diluted $.42 $.30
Earnings per Share:
Basic $.39 $.30
Diluted $.37 $.29
Weighted Average Shares:
Basic 424.0 161.3
Diluted 446.5 165.5
Reconciliation of Adjusted Operating
Income and Adjusted Operating Margin
GAAP Operating Income (a) $243.0 10.2% $72.2 10.1%
Cost of Revenues Charges (c) 11.2 0.5% 1.3 0.2%
Restructuring and Other Costs, Net (d) 8.3 0.3% 4.8 0.7%
Amortization of Acquisition-related
Intangible Assets 142.1 6.0% 25.6 3.6%
Adjusted Operating Income (b) $404.6 17.0% $103.9 14.6%
Reconciliation of Adjusted Net Income
GAAP Net Income (a) $163.9 6.9% $47.9 6.7%
Cost of Revenues Charges (c) 11.2 0.5% 1.3 0.2%
Restructuring and Other Costs, Net (d) 8.3 0.3% 4.8 0.7%
Amortization of Acquisition-related
Intangible Assets 142.1 6.0% 25.6 3.6%
Amortization of Acquisition-related
Intangible Assets - Equity
Investments 0.1 0.0% - 0.0%
Provision for Income Taxes (e) (58.5) -2.5% (10.9) -1.5%
Discontinued Operations, Net of Tax 24.0 1.0% 1.1 0.1%
Adjusted Net Income (b) $291.1 12.2% $69.8 9.8%
Reconciliation of Adjusted Earnings
per Share
GAAP EPS (a) $0.37 $0.29
Cost of Revenues Charges, Net of Tax (c) 0.01 -
Restructuring and Other Costs, Net
of Tax (d) 0.01 0.02
Amortization of Acquisition-related
Intangible Assets, Net of Tax 0.21 0.10
Amortization of Acquisition-related
Intangible Assets, Net of Tax -
Equity Investments - -
Discontinued Operations, Net of Tax 0.05 0.01
Adjusted EPS (b) $0.65 $0.42
Segment Data
Three Months Ended
(In millions except percentage June 30, % of July 1, % of
amounts) 2007 Revenues 2006 Revenues
Revenues
Analytical Technologies $1,038.5 43.5% $531.5 74.5%
Laboratory Products and Services 1,433.7 60.1% 182.0 25.5%
Eliminations (86.3) -3.6% - 0.0%
Consolidated Revenues $2,385.9 100.0% $713.5 100.0%
Operating Income and Operating
Margin
Analytical Technologies $205.7 19.8% $77.5 14.6%
Laboratory Products and Services 198.9 13.9% 26.4 14.5%
Subtotal Reportable Segments 404.6 17.0% 103.9 14.6%
Cost of Revenues Charges (c) (11.2) -0.5% (1.3) -0.2%
Restructuring and Other Costs, Net (d) (8.3) -0.3% (4.8) -0.7%
Amortization of Acquisition-related
Intangible Assets (142.1) -6.0% (25.6) -3.6%
GAAP Operating Income (a) $243.0 10.2% $72.2 10.1%
Pro Forma Data (unaudited) (h)
Three Months Ended
(In millions except percentage July 1, % of
amounts) 2006 Revenues
Pro Forma Revenues (h)
Analytical Technologies $915.4 41.8%
Laboratory Products and Services 1,350.8 61.7%
Eliminations (77.5) -3.5%
Pro Forma Combined Revenues 2,188.7 100.0%
Pre-merger Fisher Scientific
Results, Net of Eliminations (1,475.2)
GAAP Consolidated Revenues (a) $713.5
Pro Forma Operating Income and
Operating Margin (h)
Analytical Technologies $155.7 17.0%
Laboratory Products and Services 168.8 12.5%
Other/Eliminations (0.4)
Pro Forma Adjusted Combined
Operating Income (b) 324.1 14.8%
Pre-merger Fisher Scientific Results
Included Above (220.2)
Adjusted Operating Income (b) 103.9 14.6%
Cost of Revenues Charges (c) (1.3) -0.2%
Restructuring and Other Costs, Net (d) (4.8) -0.7%
Amortization of Acquisition-related
Intangible Assets (25.6) -3.6%
GAAP Operating Income (a) $72.2 10.1%
(a) "GAAP" (reported) results were determined in accordance with U.S.
generally accepted accounting principles (GAAP).
(b) Adjusted results are non-GAAP measures and exclude certain charges to
cost of revenues (see note (c) for details); amortization of
acquisition-related intangible assets; restructuring and other
costs, net (see note (d) for details); the tax consequences of the
preceding items (see note (e) for details); and results of
discontinued operations.
(c) Reported results in 2007 include $11.2 primarily for charges for the
sale of inventories revalued at the date of acquisition. Reported
results in 2006 include $1.3 of accelerated depreciation on
manufacturing assets abandoned due to facility consolidations.
(d) Reported results in 2007 and 2006 include restructuring and other
costs, net, consisting principally of severance, abandoned facility
and other expenses of real estate consolidation, net of net gains
in 2006 on the sale of product lines and abandoned facilities.
(e) Reported provision for income taxes includes $58.5 and $10.9 of
incremental tax benefit in 2007 and 2006, respectively, for the pre-
tax reconciling items between GAAP and adjusted net income.
(f) Consolidated depreciation expense in 2007 and 2006 is $45.0 and $13.4,
respectively.
(g) Consolidated equity compensation expense included in both reported and
adjusted results is $12.3 and $6.9 in 2007 and 2006, respectively. The
expense was included as follows: in 2007, cost of revenues $0.8,
selling, general and administrative expenses $10.9, and research and
development expenses $0.6; and in 2006, cost of revenues $0.7,
selling, general and administrative expenses $5.8, and research and
development expenses $0.4.
(h) Pro forma results combine the results of the company with the pre-
merger results of Fisher Scientific International Inc. Equity
compensation expense of $18.2 is included in the pro forma 2006
results as follows: cost of revenues $0.8, selling, general and
administrative expenses $16.9, and research and development expenses
$0.5.
Consolidated Statement of Income (unaudited) (a)
Six Months Ended
June 30, % of July 1, % of
(In millions except per share amounts) 2007 Revenues 2006 Revenues
Revenues $4,724.1 $1,397.8
Costs and Operating Expenses (f)(g):
Cost of revenues 2,847.2 60.3% 760.6 54.4%
Selling, general and
administrative expenses 1,025.9 21.7% 358.2 25.6%
Amortization of acquisition-
related intangible assets 281.4 6.0% 51.2 3.7%
Research and development expenses 118.5 2.5% 79.4 5.7%
Restructuring and other costs,
net (d) 15.7 0.3% 8.4 0.6%
4,288.7 90.8% 1,257.8 90.0%
Operating Income 435.4 9.2% 140.0 10.0%
Interest Income 19.5 6.9
Interest Expense (70.4) (15.7)
Other Income, Net 3.5 1.7
Income from Continuing Operations
Before Income Taxes 388.0 132.9
Provision for Income Taxes (61.3) (40.3)
Income from Continuing Operations 326.7 92.6
Income from Discontinued Operations
(net of income tax provision of $0.1) 0.1 -
(Loss) Gain on Disposal of
Discontinued Operations (includes
income tax provision of $1.8 and $1.3) (24.0) 2.2
Net Income $302.8 6.4% $94.8 6.8%
Earnings per Share from Continuing
Operations:
Basic $.77 $.57
Diluted $.74 $.56
Earnings per Share:
Basic $.72 $.58
Diluted $.68 $.57
Weighted Average Shares:
Basic 422.0 162.2
Diluted 443.8 166.3
Reconciliation of Adjusted Operating
Income and Adjusted Operating Margin
GAAP Operating Income (a) $435.4 9.2% $140.0 10.0%
Cost of Revenues Charges (c) 47.6 1.0% 1.3 0.1%
Restructuring and Other Costs,
Net (d) 15.7 0.3% 8.4 0.6%
Amortization of Acquisition-related
Intangible Assets 281.4 6.0% 51.2 3.7%
Adjusted Operating Income (b) $780.1 16.5% $200.9 14.4%
Reconciliation of Adjusted Net Income
GAAP Net Income (a) $302.8 6.4% $94.8 6.8%
Cost of Revenues Charges (c) 47.6 1.0% 1.3 0.1%
Restructuring and Other Costs,
Net (d) 15.7 0.3% 8.4 0.6%
Amortization of Acquisition-related
Intangible Assets 281.4 6.0% 51.2 3.7%
Amortization of Acquisition-related
Intangible Assets - Equity
Investments 0.1 0.0% - 0.0%
Provision for Income Taxes (e) (118.9) -2.5% (18.9) -1.4%
Discontinued Operations, Net of Tax 23.9 0.5% (2.2) -0.2%
Adjusted Net Income (b) $552.6 11.7% $134.6 9.6%
Reconciliation of Adjusted Earnings
per Share
GAAP EPS (a) $0.68 $0.57
Cost of Revenues Charges, Net of
Tax (c) 0.07 -
Restructuring and Other Costs, Net
of Tax (d) 0.03 0.05
Amortization of Acquisition-related
Intangible Assets, Net of Tax 0.42 0.20
Amortization of Acquisition-related
Intangible Assets, Net of Tax -
Equity Investments - -
Discontinued Operations, Net of Tax 0.05 (0.01)
Adjusted EPS (b) $1.25 $0.81
Segment Data
Six Months Ended
June 30, % of July 1, % of
(In millions except percentage amounts) 2007 Revenues 2006 Revenues
Revenues
Analytical Technologies $2,044.7 43.3% $1,036.1 74.1%
Laboratory Products and Services 2,850.2 60.3% 361.7 25.9%
Eliminations (170.8) -3.6% - 0.0%
Consolidated Revenues $4,724.1 100.0% $1,397.8 100.0%
Operating Income and Operating Margin
Analytical Technologies $395.5 19.3% $149.0 14.4%
Laboratory Products and Services 384.6 13.5% 51.9 14.3%
Subtotal Reportable Segments 780.1 16.5% 200.9 14.4%
Cost of Revenues Charges (c) (47.6) -1.0% (1.3) -0.1%
Restructuring and Other Costs,
Net (d) (15.7) -0.3% (8.4) -0.6%
Amortization of Acquisition-related
Intangible Assets (281.4) -6.0% (51.2) -3.7%
GAAP Operating Income (a) $435.4 9.2% $140.0 10.0%
Pro Forma Data (unaudited) (h) Six Months Ended
July 1, % of
(In millions except percentage amounts) 2006 Revenues
Pro Forma Revenues (h)
Analytical Technologies $1,787.6 41.7%
Laboratory Products and Services 2,650.7 61.9%
Eliminations (153.2) -3.6%
Pro Forma Combined Revenues 4,285.1 100.0%
Pre-merger Fisher Scientific
Results, Net of Eliminations (2,887.3)
GAAP Consolidated Revenues (a) $1,397.8
Pro Forma Operating Income and
Operating Margin (h)
Analytical Technologies $300.7 16.8%
Laboratory Products and Services 304.7 11.5%
Other/Eliminations (0.9)
Pro Forma Adjusted Combined
Operating Income (b) 604.5 14.1%
Pre-merger Fisher Scientific Results
Included Above (403.6)
Adjusted Operating Income (b) 200.9 14.4%
Cost of Revenues Charges (c) (1.3) -0.1%
Restructuring and Other Costs, Net (d) (8.4) -0.6%
Amortization of Acquisition-related
Intangible Assets (51.2) -3.7%
GAAP Operating Income (a) $140.0 10.0%
(a) "GAAP" (reported) results were determined in accordance with U.S.
generally accepted accounting principles (GAAP).
(b) Adjusted results are non-GAAP measures and exclude certain charges to
cost of revenues (see note (c) for details); amortization of
acquisition-related intangible assets; restructuring and other costs,
net (see note (d) for details); the tax consequences of the preceding
items (see note (e) for details); and results of discontinued
operations.
(c) Reported results in 2007 include $47.6 primarily for charges for the
sale of inventories revalued at the date of acquisition. Reported
results in 2006 include $1.3 of accelerated depreciation on
manufacturing assets abandoned due to facility consolidations.
(d) Reported results in 2007 and 2006 include restructuring and other
costs, net, consisting principally of severance, abandoned facility
and other expenses of real estate consolidation, net of net gains
in 2006 on the sale of product lines and abandoned facilities.
(e) Reported provision for income taxes includes $118.9 and $18.9 of
incremental tax benefit in 2007 and 2006, respectively, for the pre-
tax reconciling items between GAAP and adjusted net income.
(f) Consolidated depreciation expense in 2007 and 2006 is $91.0 and $25.2,
respectively.
(g) Consolidated equity compensation expense included in both reported and
adjusted results is $26.1 and $13.0 in 2007 and 2006, respectively.
The expense was included as follows: in 2007, cost of revenues $2.1,
selling, general and administrative expenses $22.9, and research and
development expenses $1.1; and in 2006, cost of revenues $1.3,
selling, general and administrative expenses $11.0, and research and
development expenses $0.7.
(h) Pro forma results combine the results of the company with the pre-
merger results of Fisher Scientific International Inc. Equity
compensation expense of $37.7 is included in the pro forma 2006
results as follows: cost of revenues $1.4, selling, general and
administrative expenses $35.3, and research and development expenses
$1.0.
Condensed Consolidated Balance Sheet (unaudited)
(In millions) Jun. 30, 2007 Dec. 31, 2006
Assets
Current Assets:
Cash and cash equivalents $951.2 $667.4
Short-term investments 22.7 23.8
Accounts receivable, net 1,422.5 1,392.7
Inventories 1,183.2 1,164.5
Other current assets 427.5 411.1
Total current assets 4,007.1 3,659.5
Property, Plant and Equipment, Net 1,228.5 1,256.7
Acquisition-related Intangible Assets 7,208.0 7,511.6
Other Assets 276.9 309.4
Goodwill 8,551.6 8,525.0
Total Assets $21,272.1 $21,262.2
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term obligations and current
maturities of long-term obligations $24.8 $483.3
Other current liabilities 1,578.2 1,669.0
Total current liabilities 1,603.0 2,152.3
Other Long-term Liabilities 2,959.6 3,017.4
Long-term Obligations 2,177.7 2,180.7
Total Shareholders' Equity 14,531.8 13,911.8
Total Liabilities and Shareholders'
Equity $21,272.1 $21,262.2
SOURCE Thermo Fisher Scientific Inc.
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Related links:
http://www.thermofisher.com/
http://www.prnewswire.com/comp/877850.html /
CONTACT:
Media: Lori Gorski, +1-781-622-1242,
lori.gorski@thermofisher.com, or Investors: Ken Apicerno,
+1-781-622-1111, ken.apicerno@thermofisher.com
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