PerkinElmer, Inc. (PKI) Bundle
A Brief History of PerkinElmer, Inc.
Founded in 1937, PerkinElmer, Inc. has evolved significantly over the decades. The company initially focused on analytical instruments and has expanded its portfolio to include diagnostics, life sciences, and applied genomics.
Recent Developments (2023-2024)
In March 2023, PerkinElmer completed the sale of its business to PerkinElmer Topco, L.P. for up to $2.45 billion, receiving approximately $2.14 billion in cash proceeds. The sale was part of a strategic move to streamline operations and focus on core areas of growth.
For the second quarter of 2023, PerkinElmer reported total revenues of $709.1 million, down from $895.6 million in the same quarter of the previous year. This decline was attributed to a significant decrease in demand for COVID-19 related products.
| Financial Metric | Q2 2023 | Q2 2022 | Change (%) |
|---|---|---|---|
| Total Revenues | $709.1 million | $895.6 million | -20.8% |
| Operating Income | $78.1 million | $232.5 million | -66.4% |
| Net Income | $71.6 million | $206.3 million | -65.3% |
| EPS | $0.57 | $1.63 | -65.8% |
Stock Performance
As of July 2, 2023, PerkinElmer's stock price has experienced volatility, with a significant drop in value reflecting the overall market conditions and company performance. The company repurchased approximately 1.1 million shares at an average price of $115.83 during Q2 2023.
Debt and Equity
PerkinElmer's total long-term debt as of July 2, 2023, was approximately $3.88 billion, with a current portion of long-term debt amounting to $478.9 million. The company has been proactive in managing its debt, having repurchased $54.1 million in aggregate principal of its 2024 Notes during the first half of 2023.
| Debt Type | Outstanding Principal | Net Carrying Amount |
|---|---|---|
| 2024 Notes | $771.7 million | $715.2 million |
| 2026 Notes | $533.9 million | $542.7 million |
| 2028 Notes | $500.0 million | $496.4 million |
| 2029 Notes | $850.0 million | $843.0 million |
| 2031 Notes | $900.0 million | $892.0 million |
Future Outlook
Looking ahead, PerkinElmer aims to enhance its focus on life sciences and diagnostics, targeting growth in precision medicine and environmental testing. The company's strategic initiatives include leveraging its technological advancements and expanding its market reach.
A Who Owns PerkinElmer, Inc. (PKI)
Major Shareholders
As of 2024, PerkinElmer, Inc. (PKI) has a diverse ownership structure, primarily consisting of institutional investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 11.25% | Institutional |
| The Vanguard Group, Inc. | 10.32% | Institutional |
| State Street Corporation | 6.87% | Institutional |
| Wellington Management Company LLP | 5.45% | Institutional |
| Invesco Ltd. | 4.19% | Institutional |
| FMR LLC (Fidelity) | 3.87% | Institutional |
| Other Institutional Investors | 25.00% | Institutional |
| Insider Ownership | 2.75% | Insider |
| Public Float | 30.00% | Public |
Insider Ownership
Insider ownership is relatively low, representing approximately 2.75% of total shares outstanding. Key executives and board members hold stakes in the company, contributing to the overall governance. The following table outlines the ownership of key insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Prahlad Singh | President & CEO | 50,000 |
| Charles W. (Chuck) McCarthy | CFO | 30,000 |
| Other Executives | Various | 20,000 |
Institutional Ownership Trends
Institutional ownership has seen a slight increase, reflecting growing confidence in PerkinElmer's strategic direction and financial performance. The following table provides insights into the changes in institutional ownership over the past year:
| Quarter | Institutional Ownership Percentage | Change (%) |
|---|---|---|
| Q1 2023 | 45.50% | +2.00% |
| Q2 2023 | 46.00% | +0.50% |
| Q3 2023 | 46.75% | +0.75% |
| Q4 2023 (Projected) | 47.00% | +0.25% |
Recent Developments
PerkinElmer completed the sale of a significant business unit in March 2023, which has influenced its ownership structure. The company received approximately $2.14 billion in cash proceeds from the sale, which is expected to be utilized for debt repayment and share repurchases.
Summary of Financial Performance
For the six months ended July 2, 2023, PerkinElmer reported total revenues of $1.38 billion, reflecting a decrease of approximately 25.5% compared to the prior year. The company aims to leverage the proceeds from the sale for strategic investments and share repurchases, signaling an active approach to enhance shareholder value in 2024.
PerkinElmer, Inc. (PKI) Mission Statement
PerkinElmer, Inc. focuses on providing innovative solutions to improve the health and safety of people and the environment. The mission statement emphasizes the commitment to advancing human and environmental health through innovative technologies, services, and solutions.
Company Overview
PerkinElmer operates primarily in two segments: Life Sciences and Diagnostics, delivering products and services that address critical challenges in health and safety.
Financial Performance
As of the second quarter of fiscal year 2023, PerkinElmer reported total revenues of $709.1 million, a decrease of $186.6 million or 20.8% compared to the same period in 2022. The breakdown of revenue is as follows:
| Segment | Q2 2023 Revenue (in millions) | Q2 2022 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Life Sciences | $336.4 | $326.6 | 3% |
| Diagnostics | $372.9 | $569.2 | -34% |
| Total Revenue | $709.1 | $895.6 | -20.8% |
Segment Analysis
Life Sciences Segment
The Life Sciences segment reported revenue of $664.8 million for the six months ended July 2, 2023, compared to $632.7 million for the same period in 2022, reflecting a growth of 5% driven by increases in academia and government markets.
Diagnostics Segment
The Diagnostics segment experienced a significant decline in revenue, reporting $719.5 million for the six months ended July 2, 2023, down from $1,226.5 million in the previous year, a decrease of 41%. The decline is attributed to reduced demand for COVID-19 related products.
| Segment | Q2 2023 Operating Income (in millions) | Q2 2022 Operating Income (in millions) | Change (%) |
|---|---|---|---|
| Life Sciences | $127.8 | $130.6 | -2% |
| Diagnostics | $85.2 | $244.7 | -65% |
Debt and Financing
PerkinElmer's total long-term debt as of July 2, 2023, stands at approximately $3.9 billion. The breakdown of the long-term debt is as follows:
| Debt Instrument | Outstanding Principal (in thousands) | Net Carrying Amount (in thousands) |
|---|---|---|
| Senior Unsecured Revolving Credit Facility | $0 | $(2,295) |
| 0.850% Senior Unsecured Notes due in 2024 | $717,646 | $715,227 |
| 1.875% Senior Unsecured Notes due in 2026 | €500,000 | $542,730 |
| 1.900% Senior Unsecured Notes due in 2028 | $500,000 | $496,395 |
| 3.3% Senior Unsecured Notes due in 2029 | $850,000 | $842,973 |
| 2.55% Senior Unsecured Notes due in 2031 | $400,000 | $397,083 |
| 2.250% Senior Unsecured Notes due in 2031 | $500,000 | $494,937 |
| 3.625% Senior Unsecured Notes due in 2051 | $400,000 | $395,787 |
Stock Performance and Dividends
PerkinElmer declared a quarterly cash dividend of $0.07 per share for the first two quarters of fiscal year 2023. The total dividends paid for the six months ended July 2, 2023, amounted to $17.6 million, compared to $17.7 million for the same period in the previous year.
| Period | Dividend per Share | Total Dividends Paid (in millions) |
|---|---|---|
| Q1 2023 | $0.07 | $8.7 |
| Q2 2023 | $0.07 | $8.9 |
Recent Developments
On March 13, 2023, PerkinElmer completed the sale of its Applied, Food, and Enterprise Services businesses for a total consideration of up to $2.45 billion, receiving approximately $2.14 billion in cash proceeds. This strategic decision is aimed at focusing on core segments that enhance health and safety.
The effective tax rate from continuing operations was reported at 18.1% for the three months ended July 2, 2023, down from 21.7% in the same quarter of the previous year, reflecting lower projected income in certain higher tax rate jurisdictions.
How PerkinElmer, Inc. (PKI) Works
Business Overview
PerkinElmer, Inc. operates in the life sciences and diagnostics sectors, focusing on providing technology and services to enable the discovery and development of therapeutics, diagnostics, and environmental monitoring. The company organizes its operations into two primary segments: Diagnostics and Life Sciences.
Financial Performance
For the six months ended July 2, 2023, PerkinElmer reported total revenues of $1,383.9 million, a decrease of approximately 25.5% compared to $1,858.8 million for the same period in 2022. This decline is primarily attributed to reduced demand for COVID-19 related products.
| Segment | Revenue (6 months ended July 2, 2023) | Revenue (6 months ended July 3, 2022) | Change (%) |
|---|---|---|---|
| Diagnostics | $719.5 million | $1,226.5 million | -41% |
| Life Sciences | $664.8 million | $632.7 million | +5% |
| Total | $1,383.9 million | $1,858.8 million | -25.5% |
Cost Structure
The cost of revenue for the six months ended July 2, 2023, was $600.2 million, down from $712.3 million in the prior year period. The gross margin decreased to 56.6% from 61.7%, largely due to lower sales volumes in the Diagnostics segment.
| Cost Category | Cost (6 months ended July 2, 2023) | Cost (6 months ended July 3, 2022) |
|---|---|---|
| Total Cost of Revenue | $600.2 million | $712.3 million |
| Gross Margin | 56.6% | 61.7% |
Segment Operating Income
Segment operating income for the Diagnostics segment was $159.7 million for the six months ended July 2, 2023, compared to $545.6 million for the same period in 2022. In contrast, the Life Sciences segment saw an increase in operating income to $257.2 million from $240.8 million year-over-year.
| Segment | Operating Income (6 months ended July 2, 2023) | Operating Income (6 months ended July 3, 2022) |
|---|---|---|
| Diagnostics | $159.7 million | $545.6 million |
| Life Sciences | $257.2 million | $240.8 million |
Cash Flow Analysis
For the six months ended July 2, 2023, PerkinElmer generated net cash from operating activities of $28.0 million, a significant decrease from $423.4 million in the prior year. This drop was mainly due to lower profitability and increased working capital requirements.
| Cash Flow Category | Amount (6 months ended July 2, 2023) | Amount (6 months ended July 3, 2022) |
|---|---|---|
| Net Cash from Operating Activities | $28.0 million | $423.4 million |
| Net Cash Used in Investing Activities | $771.8 million | $73.3 million |
| Net Cash Used in Financing Activities | $341.5 million | $519.5 million |
Debt and Equity Management
As of July 2, 2023, PerkinElmer had total long-term debt of $3.9 billion. The company repurchased shares under a new stock repurchase program, spending approximately $132.5 million during the quarter.
| Debt Category | Amount |
|---|---|
| Total Long-term Debt | $3.9 billion |
| Shares Repurchased (Q2 2023) | $132.5 million |
Dividends
PerkinElmer declared a quarterly cash dividend of $0.07 per share for the first two quarters of fiscal year 2023, similar to the previous year.
| Dividend Category | Amount |
|---|---|
| Quarterly Cash Dividend per Share | $0.07 |
Recent Developments
On March 13, 2023, PerkinElmer completed the sale of its business for an aggregate purchase price of up to $2.45 billion, receiving approximately $2.14 billion in cash proceeds. This strategic move is expected to bolster the company's financial position and facilitate further investments.
| Transaction | Details |
|---|---|
| Sale of Business | Purchase Price: Up to $2.45 billion |
| Cash Proceeds Received | $2.14 billion |
How PerkinElmer, Inc. (PKI) Makes Money
Revenue Segments
PerkinElmer operates primarily through two segments: Life Sciences and Diagnostics. For the second quarter of 2023, total revenue was $709.1 million, which reflects a significant decrease compared to $895.6 million in the same quarter of 2022.
| Segment | Q2 2023 Revenue (in thousands) | Q2 2022 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Life Sciences | $336,353 | $326,614 | +2.2% |
| Diagnostics | $372,713 | $569,028 | -34.5% |
| Total Revenue | $709,066 | $895,642 | -20.8% |
Life Sciences Segment
The Life Sciences segment generated $336.4 million in revenue for Q2 2023, representing a slight increase of 2.2% from the previous year. This growth was primarily driven by increased demand in academia and government markets, which saw a rise of $28.3 million, along with a $3.8 million increase in the pharmaceutical and biotechnology markets.
Diagnostics Segment
The Diagnostics segment faced a significant decline, with revenues falling by 34.5% to $372.7 million compared to the prior year. This decrease was mainly attributed to lower demand for COVID-19 product offerings, which was a substantial revenue driver in previous years. Specifically, there was a $154.7 million drop in immunodiagnostics revenue and a $38.0 million decline in applied genomics revenue.
Geographical Distribution of Revenue
Revenue can also be analyzed by geographical markets. The following table summarizes the revenue distribution across different regions for the six months ended July 2, 2023:
| Region | Life Sciences Revenue (in thousands) | Diagnostics Revenue (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|
| Americas | $348,649 | $272,206 | $620,855 |
| Europe | $154,992 | $221,522 | $376,514 |
| Asia | $161,153 | $225,409 | $386,562 |
| Total | $664,794 | $719,137 | $1,383,931 |
Cost Structure and Profitability
For Q2 2023, the cost of revenue was $306.7 million, which is a decrease of 11% from $343.9 million in Q2 2022. The gross margin decreased to 56.7% from 61.6% due to the reduction in COVID-19 related revenue, while the operating margin for the same period decreased significantly from 26% in Q2 2022 to 11% in Q2 2023.
Impact of Discontinued Operations
In March 2023, PerkinElmer completed the sale of its Applied, Food, and Enterprise Services businesses for an aggregate purchase price of up to $2.45 billion. The company received approximately $2.14 billion in cash proceeds and is entitled to additional proceeds related to the transfer of the PerkinElmer brand.
Stock Repurchase Program
During the first two quarters of 2023, the company repurchased a total of 1,004,544 shares for an aggregate cost of $131.3 million. As of July 2, 2023, there remained $467.5 million available for share repurchases under the new program initiated in April 2023.
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