WALTHAM, Mass., Dec. 14 /PRNewswire-FirstCall/ -- Thermo Fisher
Scientific Inc. (NYSE: TMO) today announced that it is raising its
full-year 2007 adjusted earnings per share (EPS) estimate to a range of
$2.35 to $2.45, from $2.27 to $2.37 presented on May 8, 2006, when the
merger of Thermo Electron and Fisher Scientific was announced. The company
also increased its full-year 2006 adjusted EPS guidance, which includes
earnings from Fisher since the November 9 closing, to a range of $1.83 to
$1.86 (factoring in expected fourth quarter adjusted EPS of $0.52 to
$0.54).
Revenues in 2007 are expected to grow to $9.4 to $9.5 billion, an
increase of approximately 7 to 8% over the company's pro forma 2006
estimate of $8.8 billion, as if the companies had been combined for all of
2006. This guidance includes the favorable impact of a full year of results
from 2006 acquisitions and approximately 6% organic growth over the pro
forma estimate. It also takes into account the unfavorable effects of 2006
divestitures.
The 2007 guidance does not factor in any acquisitions or divestitures
that may be completed during the year, 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."
"We are very excited about the significant growth opportunities we now
have as the world leader in serving science," said Marijn E. Dekkers,
president and chief executive officer of Thermo Fisher Scientific. "We are
focused on providing our customers with the most advanced integrated
technology solutions which, combined with unparalleled purchasing choice
and convenience, will enable them to be more efficient and more successful
than ever before. We are confident that, as the new Thermo Fisher
Scientific, we will continue to deliver on our commitments to our
customers, employees and shareholders."
Adjusted EPS is a non-GAAP measure that is described below under the
heading "Use of Non-GAAP Financial Measures."
Analyst Meeting
Thermo Fisher Scientific will hold an Analyst Meeting today, December
14, at 10:00 a.m. Eastern time. The meeting will be held in the auditorium
at The Equitable Center, 787 Seventh Avenue, New York, NY. You can also
listen to the meeting live on the Web at http://www.thermofisher.com, under
"Investors." An archive of the Webcast will be available in that section of
our Website through January 8, 2007.
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, accelerated
vesting of our equity-based arrangements resulting from the change in
control occurring at the date of the Fisher merger ($49.6 million of
pre-tax unamortized equity-based compensation existed at September 30,
2006) and acquisition-related professional fees. 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 10 years. 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 the
sale of our equity interests in Newport Corporation and Thoratec
Corporation, as well as other items such as the sale of a business or real
estate, the early retirement of debt and discontinued operations. (We sold
our remaining shares of Newport and Thoratec during the second quarter of
2005.)
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 used by Thermo Fisher's management are
not meant to be considered superior to or a substitute for Thermo Fisher's
results of operations prepared in accordance with GAAP. Thermo Fisher's
earnings guidance is only provided on an adjusted basis. It is not feasible
to provide GAAP EPS guidance because the items excluded are difficult to
predict and estimate and are primarily dependent on future events, such as
the impact of accounting principles not yet adopted and decisions
concerning the location and timing of facility consolidations.
About Thermo Fisher Scientific
Thermo Fisher Scientific (NYSE: TMO) is the world leader in serving
science, enabling our customers to make the world healthier, cleaner and
safer. With annual sales 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 include
those discussed in Thermo Electron and Fisher Scientific's Quarterly
Reports on Form 10-Q for the third quarter of 2006 under the caption "Risk
Factors," both of which are 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; dependence on customers that operate in
cyclical industries; general worldwide economic conditions and related
uncertainties; the effect of changes in governmental regulations; exposure
to product liability claims in excess of insurance coverage; and the effect
of exchange rate fluctuations on international operations. 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
Website: http://www.thermofisher.com
SOURCE Thermo Fisher Scientific
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Related links:
http://www.thermofisher.com/
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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
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