WALTHAM, Mass., Oct. 25 /PRNewswire-FirstCall/ -- Thermo Fisher
Scientific Inc. (NYSE: TMO), the world leader in serving science, reported
that revenues increased to a record $2.40 billion in the third quarter of
2007 (largely as a result of the November 2006 merger with Fisher
Scientific), compared with $725 million in the 2006 quarter. GAAP diluted
earnings per share (EPS) were $.49 in 2007, versus $.30 in the year-ago
period, including a one-time favorable $.05 per share adjustment to the
2007 GAAP tax rate. GAAP operating income for the 2007 quarter was $254
million, compared with $75 million in 2006, and GAAP operating margin was
10.6%, compared with 10.4% a year ago.
Adjusted EPS grew 48% to $.65 in the third quarter of 2007, versus $.44
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. Third quarter revenues grew 7% over pro forma
2006 revenues of $2.24 billion. Currency translation increased revenues by
2% and there was no material effect from acquisitions, net of divestitures.
Adjusted operating income for the quarter increased 17% over pro forma 2006
results, and adjusted operating margin expanded 150 basis points to 16.9%,
compared with pro forma adjusted operating margin of 15.4% 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."
Third Quarter Highlights
-- Revenues grew 7% over pro forma 2006
-- Adjusted EPS rose 48%
-- Adjusted operating income increased 17% over pro forma 2006
-- Adjusted operating margin expanded 150 basis points over pro forma 2006
-- Completed bolt-on acquisitions totaling nearly $200 million in
annualized revenues since August
-- Launched new RNAi platform after quarter-end to advance key fields of
life sciences research
"We're excited to report a record third quarter," said Marijn E.
Dekkers, president and chief executive officer of Thermo Fisher Scientific.
"We had solid revenue growth -- led by high demand for life science and air
quality instruments, specialty diagnostics products and biopharma services
-- as well as excellent adjusted EPS results. In addition, we continued our
long track record of significant margin expansion by remaining focused on
improving our operating performance."
"As we approach the one-year anniversary of the merger between Thermo
and Fisher, the success of our integration is demonstrated by our very
strong operating results. Our more recent activity shows that acquisitions
continue to be an important part of our growth strategy. The life,
laboratory and health sciences industry remains highly fragmented, and this
presents opportunities for us to make acquisitions that create tremendous
value by expanding our global reach, our commercial capabilities or our
technology portfolio. This complements our ongoing internal investments,
which include capacity expansion to accommodate growing demand for our
products and services, or R&D that yields significant technological
advancements -- such as our new RNAi platform that broadens life sciences
research."
Mr. Dekkers added, "With three quarters behind us, we are again raising
our adjusted EPS guidance for the full year, and now expect earnings to be
in the range of $2.56 to $2.59 for 2007, versus the $2.50 to $2.56 that we
announced last quarter. This would lead to adjusted EPS growth of 34 to 36%
over 2006. Due to acquisitions and favorable currency translation, we are
also raising our previous 2007 revenue guidance of $9.50 to $9.55 billion
to a range of $9.60 to $9.65 billion, resulting in 8 to 9% revenue growth
over our pro forma 2006 results." (The 2007 guidance does not include 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 12% in the third
quarter of 2007 to $1.04 billion, compared with pro forma 2006 revenues of
$931 million. Operating income increased 26% in the third quarter of 2007,
and operating margin rose to 19.4%, versus pro forma 2006 results of 17.3%.
Laboratory Products and Services Segment
In the Laboratory Products and Services Segment, revenues grew 4% in
the third quarter of 2007 to $1.45 billion, compared with pro forma 2006
revenues of $1.39 billion. Operating income increased 10% in the third
quarter of 2007, and operating margin rose to 14.0%, versus pro forma 2006
results of 13.3%.
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 $.80 of expense for the amortization of
acquisition-related intangible assets for acquisitions completed through
the third 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 (such as the one-time effect on deferred tax balances of enacted
changes in tax rates), 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,
October 25, 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 1026519.
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, November 23, 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
June 30, 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: Investor Contact Information:
Lori Gorski Ken Apicerno
Phone: 781-622-1242 Phone: 781-622-1111
E-mail: lori.gorski@thermofisher.com E-mail: ken.apicerno@thermofisher.com
Website: http://www.thermofisher.com
Consolidated Statement of Income (unaudited) (a)
Three Months Ended
September 29, % of September 30, % of
(In millions except per share amounts) 2007 Revenues 2006 Revenues
Revenues $2,401.2 $724.9
Costs and Operating Expenses (f)(g):
Cost of revenues 1,422.3 59.2% 388.1 53.5%
Selling, general and administrative
expenses 515.8 21.5% 191.5 26.4%
Amortization of acquisition-related
intangible assets 141.5 5.9% 26.4 3.6%
Research and development expenses 58.8 2.4% 38.6 5.3%
Restructuring and other costs, net (d) 8.8 0.4% 5.2 0.7%
2,147.2 89.4% 649.8 89.6%
Operating Income 254.0 10.6% 75.1 10.4%
Interest Income 13.6 2.8
Interest Expense (32.5) (9.3)
Other Income, Net 0.2 0.7
Income from Continuing Operations
Before Income Taxes 235.3 69.3
Provision for Income Taxes (16.7) (20.5)
Income from Continuing Operations 218.6 48.8
Loss from Discontinued Operations
(net of income tax benefit of $0.1) (0.1) -
Net Income $218.5 9.1% $48.8 6.7%
Earnings per Share from Continuing
Operations:
Basic $.52 $.31
Diluted $.49 $.30
Earnings per Share:
Basic $.51 $.31
Diluted $.49 $.30
Weighted Average Shares:
Basic 424.3 157.7
Diluted 446.6 162.2
Reconciliation of Adjusted Operating
Income and Adjusted Operating Margin
GAAP Operating Income (a) $254.0 10.6% $75.1 10.4%
Cost of Revenues Charges (c) 0.4 0.0% 2.0 0.3%
Restructuring and Other Costs, Net (d) 8.8 0.4% 5.2 0.7%
Amortization of Acquisition-related
Intangible Assets 141.5 5.9% 26.4 3.6%
Adjusted Operating Income (b) $404.7 16.9% $108.7 15.0%
Reconciliation of Adjusted Net Income
GAAP Net Income (a) $218.5 9.1% $48.8 6.7%
Cost of Revenues Charges (c) 0.4 0.0% 2.0 0.3%
Restructuring and Other Costs, Net (d) 8.8 0.4% 5.2 0.7%
Amortization of Acquisition-related
Intangible Assets 141.5 5.9% 26.4 3.6%
Amortization of Acquisition-related
Intangible Assets - Equity
Investments 0.5 0.0% - 0.0%
Provision for Income Taxes (e) (78.5) -3.3% (11.0) -1.5%
Discontinued Operations, Net of Tax 0.1 0.0% - 0.0%
Adjusted Net Income (b) $291.3 12.1% $71.4 9.8%
Reconciliation of Adjusted Earnings
per Share
GAAP EPS (a) $0.49 $0.30
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 0.20 0.10
Amortization of Acquisition-related
Intangible Assets, Net of Tax -
Equity Investments - -
Provision for Income Taxes (e) (0.05) 0.01
Discontinued Operations, Net of Tax - -
Adjusted EPS (b) $0.65 $0.44
Segment Data Three Months Ended
(In millions except percentage September 29, % of September 30, % of
amounts) 2007 Revenues 2006 Revenues
Revenues
Analytical Technologies $1,044.2 43.5% $540.7 74.6%
Laboratory Products and Services 1,446.5 60.2% 184.2 25.4%
Eliminations (89.5) -3.7% - 0.0%
Consolidated Revenues $2,401.2 100.0% $724.9 100.0%
Operating Income and Operating Margin
Analytical Technologies $202.5 19.4% $80.8 14.9%
Laboratory Products and Services 202.2 14.0% 27.9 15.1%
Subtotal Reportable Segments 404.7 16.9% 108.7 15.0%
Cost of Revenues Charges (c) (0.4) 0.0% (2.0) -0.3%
Restructuring and Other Costs, Net
(d) (8.8) -0.4% (5.2) -0.7%
Amortization of Acquisition-related
Intangible Assets (141.5) -5.9% (26.4) -3.6%
GAAP Operating Income (a) $254.0 10.6% $75.1 10.4%
Pro Forma Data (unaudited) (h) Three Months Ended
September 30, % of
(In millions except percentage amounts) 2006 Revenues
Pro Forma Revenues (h)
Analytical Technologies $931.3 41.6%
Laboratory Products and Services 1,385.2 61.9%
Eliminations (79.0) -3.5%
Pro Forma Combined Revenues 2,237.5 100.0%
Pre-merger Fisher Scientific
Results, Net of Eliminations (1,512.6)
GAAP Consolidated Revenues (a) $724.9
Pro Forma Operating Income and
Operating Margin (h)
Analytical Technologies $160.7 17.3%
Laboratory Products and Services 184.2 13.3%
Other/Eliminations (0.1)
Pro Forma Adjusted Combined
Operating Income (b) 344.8 15.4%
Pre-merger Fisher Scientific Results
Included Above (236.1)
Adjusted Operating Income (b) 108.7 15.0%
Cost of Revenues Charges (c) (2.0) -0.3%
Restructuring and Other Costs, Net (d) (5.2) -0.7%
Amortization of Acquisition-related
Intangible Assets (26.4) -3.6%
GAAP Operating Income (a) $75.1 10.4%
(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 and other tax events (see note (e) for details); and
results of discontinued operations.
(c) Reported results in 2007 include $0.4 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 and $0.7
of charges for the sale of inventory revalued at the date of
acquisition.
(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 and, in 2007,
loss on sale of business, net of net gains in 2006 on the sale of
product lines and abandoned facilities.
(e) Reported provision for income taxes includes i) $57.7 and $12.0 of
incremental tax benefit in 2007 and 2006, respectively, for the pre-
tax reconciling items between GAAP and adjusted net income;
ii) in 2007, $20.8 of incremental tax benefit from adjusting the
company's deferred tax balances as a result of newly enacted tax rates
in the United Kingdom, Denmark and Germany; and iii) in 2006, $1.0 of
incremental tax provision for the estimated effect of tax audits of
prior years in a non-U.S. country.
(f) Consolidated depreciation expense in 2007 and 2006 is $46.1 and $13.4,
respectively.
(g) Consolidated equity compensation expense included in both reported and
adjusted results is $13.2 and $7.1 in 2007 and 2006, respectively.
(h) Pro forma results combine the results of the company with the pre-
merger results of Fisher Scientific International Inc. Equity
compensation expense of $19.5 is included in the pro forma 2006
results.
Consolidated Statement of Income (unaudited) (a)
Nine Months Ended
(In millions except per share September 29, % of September 30, % of
amounts) 2007 Revenues 2006 Revenues
Revenues $7,125.3 $2,122.7
Costs and Operating Expenses (f)(g):
Cost of revenues 4,269.5 59.9% 1,148.7 54.1%
Selling, general and
administrative expenses 1,541.7 21.6% 549.7 25.9%
Amortization of acquisition-
related intangible assets 422.9 5.9% 77.6 3.7%
Research and development expenses 177.3 2.5% 118.0 5.6%
Restructuring and other costs, net (d) 24.5 0.3% 13.6 0.6%
6,435.9 90.3% 1,907.6 89.9%
Operating Income 689.4 9.7% 215.1 10.1%
Interest Income 33.1 9.7
Interest Expense (102.9) (25.0)
Other Income, Net 3.7 2.4
Income from Continuing Operations
Before Income Taxes 623.3 202.2
Provision for Income Taxes (78.0) (60.8)
Income from Continuing Operations 545.3 141.4
Income (Loss) from Discontinued
Operations - -
(Loss) Gain on Disposal of
Discontinued Operations (includes
income tax provision of $1.8 and $1.3) (24.0) 2.2
Net Income $521.3 7.3% $143.6 6.8%
Earnings per Share from Continuing
Operations:
Basic $1.29 $.88
Diluted $1.23 $.86
Earnings per Share:
Basic $1.23 $.89
Diluted $1.17 $.88
Weighted Average Shares:
Basic 422.8 160.7
Diluted 444.7 164.9
Reconciliation of Adjusted Operating
Income and Adjusted Operating Margin
GAAP Operating Income (a) $689.4 9.7% $215.1 10.1%
Cost of Revenues Charges (c) 48.0 0.7% 3.3 0.2%
Restructuring and Other Costs, Net (d) 24.5 0.3% 13.6 0.6%
Amortization of Acquisition-related
Intangible Assets 422.9 5.9% 77.6 3.7%
Adjusted Operating Income (b) $1,184.8 16.6% $309.6 14.6%
Reconciliation of Adjusted Net Income
GAAP Net Income (a) $521.3 7.3% $143.6 6.8%
Cost of Revenues Charges (c) 48.0 0.7% 3.3 0.2%
Restructuring and Other Costs, Net (d) 24.5 0.3% 13.6 0.6%
Amortization of Acquisition-related
Intangible Assets 422.9 5.9% 77.6 3.7%
Amortization of Acquisition-related
Intangible Assets - Equity
Investments 0.6 0.0% - 0.0%
Provision for Income Taxes (e) (197.4) -2.8% (29.9) -1.5%
Discontinued Operations, Net of Tax 24.0 0.4% (2.2) -0.1%
Adjusted Net Income (b) $843.9 11.8% $206.0 9.7%
Reconciliation of Adjusted Earnings
per Share
GAAP EPS (a) $1.17 $0.88
Cost of Revenues Charges, Net
of Tax (c) 0.07 0.01
Restructuring and Other Costs, Net
of Tax (d) 0.04 0.07
Amortization of Acquisition-related
Intangible Assets, Net of Tax 0.62 0.30
Amortization of Acquisition-related
Intangible Assets, Net of Tax -
Equity Investments - -
Provision for Income Taxes (e) (0.05) 0.01
Discontinued Operations, Net of Tax 0.05 (0.01)
Adjusted EPS (b) $1.90 $1.26
Segment Data Nine Months Ended
(In millions except percentage September 29, % of September 30, % of
amounts) 2007 Revenues 2006 Revenues
Revenues
Analytical Technologies $3,088.9 43.4% $1,576.8 74.3%
Laboratory Products and Services 4,296.7 60.3% 545.9 25.7%
Eliminations (260.3) -3.7% - 0.0%
Consolidated Revenues $7,125.3 100.0% $2,122.7 100.0%
Operating Income and Operating Margin
Analytical Technologies $598.0 19.4% $229.8 14.6%
Laboratory Products and Services 586.8 13.7% 79.8 14.6%
Subtotal Reportable Segments 1,184.8 16.6% 309.6 14.6%
Cost of Revenues Charges (c) (48.0) -0.7% (3.3) -0.2%
Restructuring and Other Costs, Net
(d) (24.5) -0.3% (13.6) -0.6%
Amortization of Acquisition-related
Intangible Assets (422.9) -5.9% (77.6) -3.7%
GAAP Operating Income (a) $689.4 9.7% $215.1 10.1%
Pro Forma Data (unaudited) (h) Nine Months Ended
(In millions except percentage September 30, % of
amounts) 2006 Revenues
Pro Forma Revenues (h)
Analytical Technologies $2,718.9 41.7%
Laboratory Products and Services 4,035.9 61.9%
Eliminations (232.2) -3.6%
Pro Forma Combined Revenues 6,522.6 100.0%
Pre-merger Fisher Scientific
Results, Net of Eliminations (4,399.9)
GAAP Consolidated Revenues (a) $2,122.7
Pro Forma Operating Income and
Operating Margin (h)
Analytical Technologies $461.4 17.0%
Laboratory Products and Services 488.9 12.1%
Other/Eliminations (1.0)
Pro Forma Adjusted Combined
Operating Income (b) 949.3 14.6%
Pre-merger Fisher Scientific Results
Included Above (639.7)
Adjusted Operating Income (b) 309.6 14.6%
Cost of Revenues Charges (c) (3.3) -0.2%
Restructuring and Other Costs, Net (d) (13.6) -0.6%
Amortization of Acquisition-related
Intangible Assets (77.6) -3.7%
GAAP Operating Income (a) $215.1 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 and other tax events (see note (e) for details); and
results of discontinued operations.
(c) Reported results in 2007 include $48.0 primarily for charges for the
sale of inventories revalued at the date of acquisition. Reported
results in 2006 include $2.6 of accelerated depreciation on
manufacturing assets abandoned due to facility consolidations and $0.7
of charges for the sale of inventory revalued at the date of
acquisition.
(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 and, in 2007,
loss on sale of business, net of net gains in 2006 on the sale of
product lines and abandoned facilities.
(e) Reported provision for income taxes includes i) $176.6 and $31.1 of
incremental tax benefit in 2007 and 2006, respectively, for the pre-
tax reconciling items between GAAP and adjusted net income;
ii) in 2007, $20.8 of incremental tax benefit from adjusting the
company's deferred tax balances as a result of newly enacted tax rates
in the United Kingdom, Denmark and Germany; and iii) in 2006, $1.2 of
incremental tax provision for the estimated effect of tax audits
of prior years in a non-U.S. country.
(f) Consolidated depreciation expense in 2007 and 2006 is $137.1 and
$38.6, respectively.
(g) Consolidated equity compensation expense included in both reported and
adjusted results is $39.3 and $20.1 in 2007 and 2006, respectively.
(h) Pro forma results combine the results of the company with the pre-
merger results of Fisher Scientific International Inc. Equity
compensation expense of $57.2 is included in the pro forma 2006
results.
Condensed Consolidated Balance Sheet (unaudited)
(In millions) Sep. 29, 2007 Dec. 31, 2006
Assets
Current Assets:
Cash and cash equivalents $830.8 $667.4
Short-term investments 15.4 23.8
Accounts receivable, net 1,458.1 1,392.7
Inventories 1,206.2 1,164.5
Other current assets 397.9 411.1
Total current assets 3,908.4 3,659.5
Property, Plant and Equipment, Net 1,238.6 1,256.7
Acquisition-related Intangible Assets 7,096.9 7,511.6
Other Assets 379.3 309.4
Goodwill 8,549.2 8,525.0
Total Assets $21,172.4 $21,262.2
Liabilities and Shareholders' Equity
Current Liabilities:
Short-term obligations and current
maturities of long-term obligations $19.6 $483.3
Other current liabilities 1,611.3 1,669.0
Total current liabilities 1,630.9 2,152.3
Other Long-term Liabilities 2,917.5 3,017.4
Long-term Obligations 2,181.1 2,180.7
Total Shareholders' Equity 14,442.9 13,911.8
Total Liabilities and Shareholders'
Equity $21,172.4 $21,262.2
SOURCE Thermo Fisher Scientific Inc.
 back to top
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 Investor, Ken Apicerno,
+1-781-622-1111, ken.apicerno@thermofisher.com, both of Thermo
Fisher Scientific Inc.
|
