PerkinElmer Inc. (NYSE:PKI) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 05:00 pm ET

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PerkinElmer Inc. (NYSE:PKI) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen, and welcome to the Q4 2014 PerkinElmer Earnings Conference Call. My name is Joyce, and I will be your operator for today. [Operator Instructions] I would now like to turn the conference over to your host for today, Tommy Thomas, Vice President of Investor Relations. Please proceed.

Executive
Tommy Thomas

Thank you, Joyce. Good afternoon, and welcome to the PerkinElmer Fourth Quarter 2014 Earnings Conference Call. With me on the call are Rob Friel, Chairman and Chief Executive Officer; and Andy Wilson, Senior Vice President and Chief Financial Officer. If you have not received a copy of the earnings press release, you may get one from the Investors section of our website at www.perkinelmer.com. Please note that this call is being webcast live and will be archived on our website until February 12, 2015.

(Forward-Looking Cautionary Statements)

During this call, we will be referring to certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures that we plan to use during this call to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent we use non-GAAP financial measures during the call that are not reconciled to GAAP in that attachment, we will provide reconciliations promptly.

I am now pleased to introduce the Chairman and Chief Executive Officer of PerkinElmer, Rob Friel. Rob?

Executive
Robert F. Friel

Thanks, Tommy. Good afternoon, and thank you for joining us today. I'm pleased to report that we delivered very good performance in the fourth quarter, capping off a successful year in which we've made significant progress against our strategic priorities and delivered strong financial results. Over the past year, we've expanded our organizational capabilities, introduced new innovative solutions for our customers, focused our investments in the most attractive end markets and exceeded our financial forecast despite challenging macroeconomic conditions.

Turning to our financial performance in the fourth quarter. We experienced a general strengthening of the business, as we saw good growth throughout all products and geographies, with organic revenue growing 5%. We expanded adjusted operating margins by 200 basis points to 21.5%, delivered strong operating cash flow of $97 million and increased adjusted earnings per share by 15% to $0.85, coming in at $0.06 above the high end of our guidance.

Executive
Unidentified Speaker

To mention a few commercial highlights from the fourth quarter, in the diagnostics markets, we were proud to receive market authorization from both the FDA and Health Canada to offer the first commercially available newborn screening test for SCID in the U.S. and Canada. Testing for SCID, which is an inherited metabolic disease that impacts an estimated 1 in 58,000 newborns each year, represents yet another important milestone as we expand our newborn screening menu.

Moreover, as we aggressively spur our footprint to meet demand for prenatal, neonatal and infectious disease screening, we announced the opening of PerkinElmer's state-of-the-art clinical testing lab in Suzhou, China. This new facility will offer a complete solution for hospitals and patients and supports the country's investments toward detection and