Quantcast
Last updated on April 23, 2014 at 19:54 EDT

Perrigo Reports Record Second Quarter Revenue, Adjusted Earnings and Operating Cash Flow

February 1, 2013

ALLEGAN, Mich., Feb. 1, 2013 /PRNewswire/ — Perrigo Company (Nasdaq: PRGO; TASE: PRGO) today announced results for its second quarter ended December 29, 2012.

(Logo: http://photos.prnewswire.com/prnh/20120301/DE62255LOGO )

Perrigo’s Chairman and CEO Joseph C. Papa commented, “The team delivered on another high-quality quarter with all-time record quarterly revenue, as well as record second quarter adjusted earnings and operating cash flow. The Consumer Healthcare segment had another great quarter with strong store brand OTC market share growth. The team is working hard to integrate and expand the reach of our recent acquisition of Sergeant’s Pet Care Products, Inc. (“Sergeant’s”). Retailers are excited about the launch of our new plastic container in the infant formula category, as evidenced by their increased marketing and advertising efforts promoting the store brand value proposition. We continue to deliver on our top priority of providing quality, affordable healthcare products for consumers and customers.”

Note that fiscal second quarter 2012 included an extra week of operations compared to fiscal second quarter 2013.

Refer to Table I at the end of this press release for adjustments in the current year and prior year periods and additional non-GAAP information. The Company’s reported results are summarized in the attached Condensed Consolidated Statements of Income, Balance Sheets and Cash Flows.

                                     Perrigo Company
                         (in thousands, except per share amounts)
              (see the attached Table I for reconciliation to GAAP numbers)

                                 Fiscal 2013                   Fiscal 2012
                                      Second                        Second       YoY
                                     Quarter                       Quarter
                                       Ended                         Ended
                                  12/29/2012                    12/31/2011  % Change
                                  ----------                    ----------  --------

     Net
     Sales                          $882,959                      $838,170      +5.3%
     Reported
     Net
     Income                         $105,955                       $99,739      +6.2%
     Adjusted
     Net
     Income                         $128,083                      $112,431     +13.9%
     Reported
     Diluted
     EPS                               $1.12                         $1.06      +5.7%
     Adjusted
     Diluted
     EPS                               $1.36                         $1.20     +13.3%
     Diluted
     Shares                           94,450                        94,043      +0.4%

Second Quarter Results

Net sales in the quarter were $883 million, an increase of 5% over the second quarter of fiscal 2012, driven primarily by $34 million attributable to the Sergeant’s and CanAm Care, LLC (“CanAm”) acquisitions and new product sales of $25 million, partially offset by decreases in sales of certain existing products in the Rx segment in addition to the impact of the extra week of operations experienced in the second quarter of fiscal 2012. Excluding charges as outlined in Table I at the end of this release, second quarter fiscal 2013 adjusted net income increased 14% to $128 million, or $1.36 per diluted share. Reported net income increased 6% to $106 million, or $1.12 per diluted share.

Consumer Healthcare

                                           Consumer Healthcare Segment
                                                  (in thousands)
                          (see the attached Table II for reconciliation to GAAP numbers)

                                                                                                               Fiscal 2013  Fiscal 2012
                                                                                                                    Second       Second       YoY
                                                                                                                   Quarter      Quarter
                                                                                                                     Ended        Ended
                                                                                                                12/29/2012   12/31/2011  % Change
                                                                                                                ----------   ----------  --------

    Net Sales                                                                                                     $539,288     $471,277     +14.4%
    Reported Gross Profit                                                                                         $162,254     $148,813      +9.0%
    Adjusted Gross Profit                                                                                         $173,168     $149,819     +15.6%
    Reported Operating Income                                                                                      $86,078      $82,250      +4.7%
    Adjusted Operating Income                                                                                      $98,641      $84,470     +16.8%

    Reported Gross Margin                                                                                             30.1%        31.6% -150 bps
    Adjusted Gross Margin                                                                                             32.1%        31.8%  +30 bps
    Reported Operating Margin                                                                                         16.0%        17.5% -150 bps
    Adjusted Operating Margin                                                                                         18.3%        17.9%  +40 bps

Consumer Healthcare segment net sales increased 14% to $539 million, driven by an increase in sales of existing products of $38 million (contract, analgesics and smoking cessation categories), $34 million attributable to the Sergeant’s and CanAm acquisitions, and new product sales of $12 million (cough/cold, dermatologic and gastrointestinal categories). These combined increases were partially offset by a decline of $13 million in sales of existing products (allergy products and gastrointestinal category) and approximately $5 million in discontinued products.

Adjusted gross and operating margins expanded 30 and 40 basis points, respectively, due to new products and increased manufacturing efficiencies. The disparity between the reported and adjusted margins was due primarily to a charge of approximately $8 million to cost of sales as a result of the step-up of inventory acquired and sold related to the Sergeant’s acquisition.

Nutritionals

                                    Nutritionals Segment
                                       (in thousands)
               (see the attached Table II for reconciliation to GAAP numbers)

                                   Fiscal 2013                   Fiscal 2012
                                        Second                        Second
                                       Quarter                       Quarter
                                         Ended                         Ended       YoY
                                    12/29/2012                    12/31/2011  % Change
                                    ----------                    ----------  --------

     Net
     Sales                            $121,938                      $128,147      -4.8%
     Reported
     Gross
     Profit                            $30,145                       $28,230      +6.8%
     Adjusted
     Gross
     Profit                            $33,194                       $31,252      +6.2%
     Reported
     Operating
     Income                             $7,160                        $4,552     +57.3%
     Adjusted
     Operating
     Income                            $14,470                       $11,189     +29.3%

     Reported
     Gross
     Margin                               24.7%                         22.0% +270 bps
     Adjusted
     Gross
     Margin                               27.2%                         24.4% +280 bps
     Reported
     Operating
     Margin                                5.9%                          3.6% +230 bps
     Adjusted
     Operating
     Margin                               11.9%                          8.7% +320 bps

The Nutritionals segment reported second quarter net sales of $122 million, compared with $128 million a year ago, as existing product sales declined $9 million due primarily to the extra week of sales in fiscal 2012, partially offset by new product sales of $3 million (Vitamins, Minerals and Supplements and infant foods categories).

Second quarter gross profit and margin increased due primarily to price increases and favorable product mix. Operating profit and margin were positively impacted by lower employee-related expenses, along with the absence of operating expenses related to the Company’s Florida location, which was closed in the fourth quarter of fiscal 2012.

Rx Pharmaceuticals

                                 Rx Pharmaceuticals Segment
                                       (in thousands)
               (see the attached Table II for reconciliation to GAAP numbers)

                                   Fiscal 2013                   Fiscal 2012
                                        Second                        Second
                                       Quarter                       Quarter
                                         Ended                         Ended       YoY
                                    12/29/2012                    12/31/2011  % Change
                                    ----------                    ----------  --------

     Net
     Sales                            $162,541                      $177,196      -8.3%
     Reported
     Gross
     Profit                            $86,036                       $91,378      -5.8%
     Adjusted
     Gross
     Profit                            $94,493                       $99,347      -4.9%
     Reported
     Operating
     Income                            $64,059                       $69,974      -8.5%
     Adjusted
     Operating
     Income                            $74,042                       $78,542      -5.7%

     Reported
     Gross
     Margin                               52.9%                         51.6% +130 bps
     Adjusted
     Gross
     Margin                               58.1%                         56.1% +200 bps
     Reported
     Operating
     Margin                               39.4%                         39.5%  -10 bps
     Adjusted
     Operating
     Margin                               45.6%                         44.3% +130 bps

The Rx Pharmaceuticals segment second quarter net sales decreased 8% as existing product sales were lower year-over-year by $11 million due to increased competition on certain existing products. This decrease was partially offset by new product sales of $9 million. The extra week of operations in second quarter fiscal 2012 accounted for most of the difference in net sales in the segment compared to fiscal 2012.

The adjusted gross margin increased due primarily to favorable product mix as well as higher margin on new product sales. The adjusted operating margin was impacted by higher distribution, selling, general and administrative costs.

API

                                         API Segment
                                       (in thousands)
               (see the attached Table II for reconciliation to GAAP numbers)

                                   Fiscal 2013                   Fiscal 2012
                                        Second                        Second
                                       Quarter                       Quarter
                                         Ended                         Ended       YoY
                                    12/29/2012                    12/31/2011  % Change
                                    ----------                    ----------  --------

     Net
     Sales                             $40,854                       $42,752      -4.4%
     Reported
     Gross
     Profit                            $22,883                       $20,151     +13.6%
     Adjusted
     Gross
     Profit                            $23,364                       $20,647     +13.2%
     Reported
     Operating
     Income                            $13,820                       $11,693     +18.2%
     Adjusted
     Operating
     Income                            $14,301                       $12,189     +17.3%

     Reported
     Gross
     Margin                               56.0%                         47.1% +890 bps
     Adjusted
     Gross
     Margin                               57.2%                         48.3% +890 bps
     Reported
     Operating
     Margin                               33.8%                         27.4% +640 bps
     Adjusted
     Operating
     Margin                               35.0%                         28.5% +650 bps

The API segment’s net sales declined by 4% to $41 million due primarily to a decrease in existing product sales of approximately $5 million as a result of increased competition, partially offset by $4 million related to the continued successful launch of a customer’s product.

Gross and operating margins were positively impacted by the product launch referred to above, along with favorable mix of existing product sales, partially offset by higher research and development and selling, general and administrative expenses.

Other

The Other category reported second quarter net sales of $18 million, compared with approximately $19 million a year ago, due primarily to the impact of unfavorable changes in foreign currency exchange rates.

Adjusted operating income was $1 million, representing a decrease in adjusted operating margin of 140 basis points from last year due to product mix.

Closing

Chairman, President and CEO Joseph C. Papa concluded, “Once again, the strength of our diversified business model was evident this quarter. Our Consumer Healthcare manufacturing operations are producing higher volumes and are operating more efficiently than at any time in our history. The Company continues to use our disciplined ROIC-centric process to make positive investments in operations and products. We expect further growth in store brand market penetration and strong new product launches, resulting in significant savings to consumers with quality, affordable healthcare products.”

The Company expects fiscal 2013 reported earnings to be between $4.73 and $4.93 per diluted share as compared to $4.18 in fiscal 2012. Excluding the charges outlined in Table III at the end of this release, the Company continues to expect fiscal 2013 adjusted earnings to be between $5.45 and $5.65 per diluted share as compared to $4.99 in fiscal 2012. This range implies a year-over-year growth rate in adjusted earnings of 9% to 13% over fiscal 2012′s adjusted earnings from continuing operations per diluted share.

The conference call will be available live via webcast to interested parties on the Perrigo website http://perrigo.investorroom.com/events-webcasts or by phone at 877-248-9413, International 973-582-2737, and reference ID# 87314407. A taped replay of the call will be available beginning at approximately 1:00 p.m. (ET) Friday, February 1, 2013 until midnight Friday, February 15, 2013. To listen to the replay, dial 855-859-2056, International 404-537-3406, and use access code 87314407.

From its beginnings as a packager of generic home remedies in 1887, Perrigo Company, based in Allegan, Michigan, has grown to become a leading global provider of quality, affordable healthcare products. The Company develops, manufactures and distributes over-the-counter (“OTC”) and generic prescription (“Rx”) pharmaceuticals, nutritional products and active pharmaceutical ingredients (“API”) and is the world’s largest manufacturer of OTC pharmaceutical products for the store brand market. Perrigo’s mission is to offer uncompromised “quality, affordable healthcare products”, and it does so across a wide variety of product categories primarily in the United States, United Kingdom, Mexico, Israel and Australia, as well as certain other markets throughout the world, including Canada, China and Latin America. Visit Perrigo on the Internet (http://www.perrigo.com).

Note: Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company’s control. These and other important factors, including those discussed under “Risk Factors” in the Company’s Form 10-K for the year ended June 30, 2012, as well as the Company’s subsequent filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                                                                                PERRIGO COMPANY
                                                                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                                   (in thousands, except per share amounts)
                                                                                  (unaudited)

                                        Three Months Ended                    Six Months Ended
                                        ------------------                    ----------------
                                        December 29, 2012                    December 31, 2011                    December 29, 2012      December 31, 2011
                                        -----------------                    -----------------                    -----------------      -----------------

    Net sales                                         $882,959                             $838,170                           $1,652,769             $1,563,465
    Cost of sales                                      575,794                              543,295                            1,060,335              1,041,011
                                                       -------                              -------                            ---------              ---------
    Gross profit                                       307,165                              294,875                              592,434                522,454
                                                       -------                              -------                              -------                -------

    Operating expenses
      Distribution                                      11,699                                9,095                               22,466                 19,359
      Research and
       development                                      28,323                               31,148                               55,718                 50,786
      Selling and
       administration                                  103,286                               93,964                              193,820                190,089
      Total operating
       expenses                                        143,308                              134,207                              272,004                260,234
                                                       -------                              -------                              -------                -------

    Operating income                                   163,857                              160,668                              320,430                262,220

    Interest, net                                       15,314                               15,641                               31,167                 28,211
    Other expense, net                                      76                                  752                                   14                    981
    Loss on sale of
     investment                                          3,049                                    -                                3,049                      -
                                                         -----                                  ---                                -----                    ---
    Income before
     income taxes                                      145,418                              144,275                              286,200                233,028
    Income tax expense                                  39,463                               44,536                               74,665                 62,831
    Net income                                        $105,955                              $99,739                             $211,535               $170,197
                                                      ========                              =======                             ========               ========

    Earnings per share
    Basic earnings per
     share                                               $1.13                                $1.07                                $2.26                  $1.83
    Diluted earnings
     per share                                           $1.12                                $1.06                                $2.24                  $1.81

    Weighted average shares outstanding
    Basic                                               93,903                               93,221                               93,755                 93,066
    Diluted                                             94,450                               94,043                               94,408                 93,983

    Dividends declared
     per share                                           $0.09                                $0.08                                $0.17                  $0.15

                                                See accompanying notes to condensed consolidated financial statements.

                                                                                                PERRIGO COMPANY
                                                                           CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                                                (in thousands)
                                                                                                  (unaudited)

                                         Three Months Ended                               Six Months Ended
                                         ------------------                               ----------------
                                            December 29,                                    December 31,                               December 29,           December 31,
                                                                2012                                            2011                                    2012                   2011
                                                                ----                                            ----                                    ----                   ----
    Net income                                              $105,955                                         $99,739                                $211,535               $170,197
      Other comprehensive income (loss):
    Change in fair value
     of derivative
     financial
     instruments, net of
     tax                                                       5,244                                          (1,496)                                  6,706                 (9,292)
    Foreign currency
     translation
     adjustments                                              28,026                                         (12,851)                                 33,450                (65,812)
    Change in fair value
     of investment
     securities, net of
     tax                                                       1,037                                            (933)                                  1,037                   (933)
    Post-retirement
     liability
     adjustments, net of
     tax                                                           -                                             (24)                                    (41)                   (41)
      Other comprehensive
       income (loss), net of
       tax                                                    34,307                                         (15,304)                                 41,152                (76,078)
    Comprehensive income                                    $140,262                                         $84,435                                $252,687                $94,119
                                                            ========                                         =======                                ========                =======

                                                                See accompanying notes to condensed consolidated financial statements.

                                                                                           PERRIGO COMPANY
                                                                                CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                            (in thousands)
                                                                                             (unaudited)

                                                          December 29,                                              June 30,                    December 31,
                                                                                  2012                                                    2012                     2011
                                                                                  ----                                                    ----                     ----
    Assets
    Current assets
      Cash and cash equivalents                                               $459,514                                                $602,489                 $531,410
      Accounts receivable, net                                                 583,903                                                 572,582                  530,178
      Inventories                                                              638,797                                                 547,455                  580,668
      Current deferred income
       taxes                                                                    44,813                                                  45,738                   47,216
      Income taxes refundable                                                    4,323                                                   1,047                    4,111
      Prepaid expenses and other
       current assets                                                           42,771                                                  26,610                   40,509
    Total current assets                                                     1,774,121                                               1,795,921                1,734,092

    Property and equipment                                                   1,192,787                                               1,118,837                1,066,307
      Less accumulated
       depreciation                                                           (574,362)                                               (540,487)                (515,600)
                                                                              --------                                                --------                 --------
                                                                               618,425                                                 578,350                  550,707

    Goodwill and other
     indefinite-lived
     intangible assets                                                         962,804                                                 820,122                  808,531
    Other intangible assets,
     net                                                                       845,666                                                 729,253                  752,595
    Non-current deferred
     income taxes                                                               14,938                                                  13,444                   12,330
    Other non-current assets                                                    78,382                                                  86,957                   84,299
                                                                            $4,294,336                                              $4,024,047               $3,942,554
                                                                            ==========                                              ==========               ==========

    Liabilities and Shareholders' Equity
    Current liabilities
      Accounts payable                                                        $321,205                                                $317,341                 $324,349
      Short-term debt                                                            2,648                                                      90                        -
      Payroll and related taxes                                                 71,081                                                  89,934                   71,059
      Accrued customer programs                                                122,651                                                 116,055                  116,888
      Accrued liabilities                                                       65,981                                                  76,406                   85,661
      Accrued income taxes                                                      11,299                                                  12,905                   28,684
      Current portion of long-
       term debt                                                                40,000                                                  40,000                   40,000
    Total current liabilities                                                  634,865                                                 652,731                  666,641

    Non-current liabilities
      Long-term debt, less
       current portion                                                       1,329,886                                               1,329,235                1,452,546
      Non-current deferred
       income taxes                                                             47,481                                                  24,126                    9,163
      Other non-current
       liabilities                                                             173,644                                                 165,310                  183,393
    Total non-current
     liabilities                                                             1,551,011                                               1,518,671                1,645,102

    Shareholders' Equity
    Controlling interest:
    Preferred stock, without
     par value, 10,000 shares
     authorized                                                                      -                                                       -                        -
    Common stock, without par
     value, 200,000 shares
     authorized                                                                524,124                                                 504,708                  486,665
    Accumulated other
     comprehensive income                                                       80,556                                                  39,404                   50,972
    Retained earnings                                                        1,502,455                                               1,306,925                1,090,509
                                                                             2,107,135                                               1,851,037                1,628,146
    Noncontrolling interest                                                      1,325                                                   1,608                    2,665
    Total shareholders' equity                                               2,108,460                                               1,852,645                1,630,811
                                                                            $4,294,336                                              $4,024,047               $3,942,554
                                                                            ==========                                              ==========               ==========

    Supplemental Disclosures of Balance Sheet Information
    Allowance for doubtful
     accounts                                                                   $2,473                                                  $2,556                   $8,993
    Working capital                                                         $1,139,256                                              $1,143,190               $1,067,451
    Preferred stock, shares
     issued and outstanding                                                          -                                                       -                        -
    Common stock, shares issued
     and outstanding                                                            93,980                                                  93,484                   93,287

                                                             See accompanying notes to condensed consolidated financial statements.

                                                                  PERRIGO COMPANY
                                                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                  (in thousands)
                                                                    (unaudited)

                                                            Six Months Ended
                                                            ----------------
                                                            December 29, 2012                              December 31,
                                                                                                                             2011
                                                                                                                             ----
    Cash Flows From (For) Operating
     Activities
    Net income                                                                   $211,535                                $170,197
    Adjustments to derive cash
     flows
    Gain on sale of pipeline
     development projects                                                               -                                  (3,500)
    Loss on sale of investment                                                      3,049                                       -
    Depreciation and amortization                                                  69,939                                  67,105
    Share-based compensation                                                        9,363                                   8,977
    Income tax benefit from
     exercise of stock options                                                      1,074                                     934
    Excess tax benefit of stock
     transactions                                                                 (15,668)                                (11,215)
    Deferred income taxes                                                             972                                   3,669
    Subtotal                                                                      280,264                                 236,167
                                                                                  -------                                 -------

    Changes in operating assets and
     liabilities, net of business
     acquisitions
    Accounts receivable                                                            16,228                                 (10,657)
    Inventories                                                                   (44,980)                                (34,150)
    Accounts payable                                                              (18,072)                                (14,319)
    Payroll and related taxes                                                     (19,966)                                (12,012)
    Accrued customer programs                                                       6,596                                  (1,412)
    Accrued liabilities                                                            (7,156)                                 16,300
    Accrued income taxes                                                           12,835                                  46,409
    Other                                                                           3,854                                  (6,204)
    Subtotal                                                                      (50,661)                                (16,045)
    Net cash from operating
     activities                                                                   229,603                                 220,122
                                                                                  -------                                 -------

    Cash Flows (For) From Investing
     Activities
    Acquisitions of businesses, net
     of cash acquired                                                            (326,944)                               (547,052)
    Proceeds from sale of
     intangible assets and pipeline
     development projects                                                               -                                  10,500
    Additions to property and
     equipment                                                                    (39,279)                                (55,659)
    Acquisitions of assets                                                              -                                    (750)
    Net cash for investing
     activities                                                                  (366,223)                               (592,961)
                                                                                 --------                                --------

    Cash Flows (For) From Financing
     Activities
    Borrowings (repayments) of
     short-term debt, net                                                           2,558                                  (2,770)
    Borrowings of long-term debt                                                   40,651                               1,087,546
    Repayments of long-term debt                                                  (40,000)                               (485,000)
    Deferred financing fees                                                          (643)                                 (5,097)
    Excess tax benefit of stock
     transactions                                                                  15,668                                  11,215
    Issuance of common stock                                                        7,617                                   7,699
    Repurchase of common stock                                                    (12,159)                                 (7,954)
    Cash dividends                                                                (16,005)                                (14,021)
    Net cash (for) from financing
     activities                                                                    (2,313)                                591,618
                                                                                   ------                                 -------

    Effect of exchange rate changes
     on cash                                                                       (4,042)                                  2,527
    Net (decrease) increase in cash
     and cash equivalents                                                        (142,975)                                221,306

    Cash and cash equivalents,
     beginning of period                                                          602,489                                 310,104
    Cash and cash equivalents, end
     of period                                                                   $459,514                                $531,410
                                                                                 ========                                ========

    Supplemental Disclosures of
     Cash Flow Information
    Cash paid/received during the
     period for:
    Interest paid                                                                 $29,244                                 $22,861
    Interest received                                                              $2,741                                  $1,301
    Income taxes paid                                                             $67,863                                 $15,973
    Income taxes refunded                                                          $1,155                                    $802

                                    See accompanying notes to condensed consolidated financial statements.

                                                                                                                                                                                          Table I
                                                                                                                                                                                      PERRIGO COMPANY
                                                                                                                                                                            RECONCILIATION OF NON-GAAP MEASURES
                                                                                                                                                                         (in thousands, except per share amounts)
                                                                                                                                                                                        (unaudited)

                                                                                  Three Months Ended
                                                                                  ------------------
    Consolidated                                            December 29, 2012                                                  December 31, 2011                            % Change
                                                            -----------------                                                  -----------------                            --------
                                                           GAAP                                Non-GAAP Adjustments                              As Adjusted                                         GAAP                  Non-GAAP Adjustments               As Adjusted             GAAP       As Adjusted
                                                           ----                                --------------------                              -----------                                         ----                  --------------------               -----------             ----       -----------
    Net sales                                                          $882,959                           $               -                                    $882,959                                          $838,170            $               -                      $838,170         5 %               5 %
    Cost of sales                                                       575,794                                      23,308  (a,b)                              552,486                                           543,295                       12,931  (a)                  530,364         6 %               4 %
                                                                        -------                                      ------                                     -------                                           -------                       ------                       -------
    Gross profit                                                        307,165                                      23,308                                     330,473                                           294,875                       12,931                       307,806         4 %               7 %

    Operating expenses
    Distribution                                                         11,699                                           -                                      11,699                                             9,095                            -                         9,095        29 %              29 %
    Research and
     development                                                         28,323                                           -                                      28,323                                            31,148                            -                        31,148        -9 %              -9 %
    Selling and
     administration                                                     103,286                                       7,476  (a,c,d)                             95,810                                            93,964                        5,428  (a,e)                 88,536        10 %               8 %
                                                                        -------                                       -----                                      ------                                            ------                        -----                        ------
    Total operating
     expenses                                                           143,308                                       7,476                                     135,832                                           134,207                        5,428                       128,779         7 %               5 %

    Operating income                                                    163,857                                      30,784                                     194,641                                           160,668                       18,359                       179,027         2 %               9 %
    Interest, net                                                        15,314                                           -                                      15,314                                            15,641                            -                        15,641        -2 %              -2 %
    Other expense, net                                                       76                                           -                                          76                                               752                            -                           752       -90 %             -90 %
    Loss on sale of
     investment                                                           3,049                                       3,049                                           -                                                 -                            -                             -          -                 -
                                                                          -----                                       -----                                         ---                                               ---                          ---                           ---
    Income before income
     taxes                                                              145,418                                      33,833                                     179,251                                           144,275                       18,359                       162,634         1 %              10 %
    Income tax expense                                                   39,463                                      11,705  (j)                                 51,168                                            44,536                        5,667  (j)                   50,203       -11 %               2 %
                                                                         ------                                      ------                                      ------                                            ------                        -----                        ------
    Net income                                                         $105,955                                     $22,128                                    $128,083                                           $99,739                      $12,692                      $112,431         6 %              14 %
                                                                       ========                                     =======                                    ========                                           =======                      =======                      ========

    Diluted earnings per
     share                                                                $1.12                                                                                   $1.36                                             $1.06                                                      $1.20         6 %              13 %

    Diluted weighted
     average shares
     outstanding                                                         94,450                                                                                  94,450                                            94,043                                                     94,043

    Selected ratios as a percentage of net sales
    Gross profit                                                          34.8 %                                                                                  37.4 %                                            35.2 %                                                     36.7 %
    Operating expenses                                                    16.2 %                                                                                  15.4 %                                            16.0 %                                                     15.4 %
    Operating income                                                      18.6 %                                                                                  22.0 %                                            19.2 %                                                     21.4 %

                                                                                 Six Months Ended
                                                                                 ----------------
    Consolidated                                          December 29, 2012                                                 December 31, 2011                            % Change
                                                          -----------------                                                 -----------------                            --------
                                                           GAAP                                Non-GAAP Adjustments                              As Adjusted                                         GAAP                  Non-GAAP Adjustments               As Adjusted             GAAP       As Adjusted
                                                           ----                                --------------------                              -----------                                         ----                  --------------------               -----------             ----       -----------
    Net sales                                                        $1,652,769                           $               -                                  $1,652,769                                        $1,563,465            $               -                    $1,563,465         6 %               6 %
    Cost of sales                                                     1,060,335                                      36,632  (a,b)                            1,023,703                                         1,041,011                       55,292  (a,g)                985,719         2 %               4 %
                                                                      ---------                                      ------                                   ---------                                         ---------                       ------                       -------
    Gross profit                                                        592,434                                      36,632                                     629,066                                           522,454                       55,292                       577,746        13 %               9 %

    Operating expenses
    Distribution                                                         22,466                                           -                                      22,466                                            19,359                            -                        19,359        16 %              16 %
    Research and
     development                                                         55,718                                           -                                      55,718                                            50,786                       (3,500) (h)                   54,286        10 %               3 %
    Selling and
     administration                                                     193,820                                      14,851  (a,c,f)                            178,969                                           190,089                       19,049  (a,i)                171,040         2 %               5 %
                                                                        -------                                      ------                                     -------                                           -------                       ------                       -------
    Total operating
     expenses                                                           272,004                                      14,851                                     257,153                                           260,234                       15,549                       244,685         5 %               5 %

    Operating income                                                    320,430                                      51,483                                     371,913                                           262,220                       70,841                       333,061        22 %              12 %
    Interest, net                                                        31,167                                           -                                      31,167                                            28,211                            -                        28,211        10 %              10 %
    Other expense, net                                                       14                                           -                                          14                                               981                            -                           981       -99 %             -99 %
    Loss on sale of
     investment                                                           3,049                                       3,049                                           -                                                 -                            -                             -          -                 -
                                                                          -----                                       -----                                         ---                                               ---                          ---                           ---
    Income before income
     taxes                                                              286,200                                      54,532                                     340,732                                           233,028                       70,841                       303,869        23 %              12 %
    Income tax expense                                                   74,665                                      18,515  (j)                                 93,180                                            62,831                       25,288  (j)                   88,119        19 %               6 %
                                                                         ------                                      ------                                      ------                                            ------                       ------                        ------
    Net income                                                         $211,535                                     $36,017                                    $247,552                                          $170,197                      $45,553                      $215,750        24 %              15 %
                                                                       ========                                     =======                                    ========                                          ========                      =======                      ========

    Diluted earnings per
     share                                                                $2.24                                                                                   $2.62                                             $1.81                                                      $2.30        24 %              14 %

    Diluted weighted
     average shares
     outstanding                                                         94,408                                                                                  94,408                                            93,983                                                     93,983

    Selected ratios as a percentage of net sales
    Gross profit                                                          35.8 %                                                                                  38.1 %                                            33.4 %                                                     37.0 %
    Operating expenses                                                    16.5 %                                                                                  15.6 %                                            16.6 %                                                     15.7 %
    Operating income                                                      19.4 %                                                                                  22.5 %                                            16.8 %                                                     21.3 %

    (a) Deal-related amortization
    (b) Inventory step-up of $7,693
    (c) Severance costs of $1,526
    (d) Acquisition costs of $40
    (e) Severance costs of $599
    (f) Acquisition costs of $1,917
    (g) Inventory step-up of $27,179
    (h) Proceeds from sale of pipeline development projects
    (i) Acquisition-related and severance costs of $9,381
    (j) Total tax effect for non-GAAP pre-tax adjustments

                                                                                                                                                                                      Table II
                                                                                                                                                                                  PERRIGO COMPANY
                                                                                                                                                                                REPORTABLE SEGMENTS
                                                                                                                                                                        RECONCILIATION OF NON-GAAP MEASURES
                                                                                                                                                                                   (in thousands)
                                                                                                                                                                                    (unaudited)

                                                                                       Three Months Ended
                                                                                       ------------------
    Consumer Healthcare                                          December 29, 2012                                                        December 31, 2011                                         % Change
                                                                 -----------------                                                        -----------------                                         --------
                                                                 GAAP                               Non-GAAP Adjustments                          As Adjusted                                     GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                               --------------------                          -----------                                     ----                --------------------            -----------           ----       -----------
    Net sales                                                              $539,288                            $             -                                $539,288                                      $471,277            $               -                 $471,277        14 %              14 %
    Cost of sales                                                           377,034                                     10,914 (a,b)                           366,120                                       322,464                        1,006 (a)              321,458        17 %              14 %
                                                                            -------                                     ------                                 -------                                       -------                        -----                  -------
    Gross profit                                                            162,254                                     10,914                                 173,168                                       148,813                        1,006                  149,819         9 %              16 %
    Operating expenses                                                       76,176                                      1,649 (a)                              74,527                                        66,563                        1,214 (a)               65,349        14 %              14 %
                                                                             ------                                      -----                                  ------                                        ------                        -----                   ------
    Operating income                                                        $86,078                                    $12,563                                 $98,641                                       $82,250                       $2,220                  $84,470         5 %              17 %
                                                                            =======                                    =======                                 =======                                       =======                       ======                  =======

    Selected ratios as a percentage of net sales
    Gross profit                                                              30.1 %                                                                             32.1 %                                        31.6 %                                                31.8 %
    Operating expenses                                                        14.1 %                                                                             13.8 %                                        14.1 %                                                13.9 %
    Operating income                                                          16.0 %                                                                             18.3 %                                        17.5 %                                                17.9 %

                                                                                      Six Months Ended
                                                                                      ----------------
    Consumer Healthcare                                        December 29, 2012                                                     December 31, 2011                                        % Change
                                                               -----------------                                                     -----------------                                        --------
                                                                 GAAP                               Non-GAAP Adjustments                          As Adjusted                                     GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                               --------------------                          -----------                                     ----                --------------------            -----------           ----       -----------
    Net sales                                                              $989,704                            $             -                                $989,704                                      $882,958            $               -                 $882,958        12 %              12 %
    Cost of sales                                                           681,615                                     11,929 (a,b)                           669,686                                       604,787                        2,028 (a)              602,759        13 %              11 %
                                                                            -------                                     ------                                 -------                                       -------                        -----                  -------
    Gross profit                                                            308,089                                     11,929                                 320,018                                       278,171                        2,028                  280,199        11 %              14 %
    Operating expenses                                                      142,723                                      2,897 (a)                             139,826                                       126,732                        2,437 (a)              124,295        13 %              12 %
                                                                            -------                                      -----                                 -------                                       -------                        -----                  -------
    Operating income                                                       $165,366                                    $14,826                                $180,192                                      $151,439                       $4,465                 $155,904         9 %              16 %
                                                                           ========                                    =======                                ========                                      ========                       ======                 ========

    Selected ratios as a percentage of net sales
    Gross profit                                                              31.1 %                                                                             32.3 %                                        31.5 %                                                31.7 %
    Operating expenses                                                        14.4 %                                                                             14.1 %                                        14.4 %                                                14.1 %
    Operating income                                                          16.7 %                                                                             18.2 %                                        17.2 %                                                17.7 %

                                                                                     Three Months Ended
                                                                                     ------------------
    Nutritionals                                               December 29, 2012                                                     December 31, 2011                                        % Change
                                                               -----------------                                                     -----------------                                        --------
                                                                 GAAP                               Non-GAAP Adjustments                          As Adjusted                                     GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                               --------------------                          -----------                                     ----                --------------------            -----------           ----       -----------
    Net sales                                                              $121,938                            $             -                                $121,938                                      $128,147            $               -                 $128,147        -5 %              -5 %
    Cost of sales                                                            91,793                                      3,049 (a)                              88,744                                        99,917                        3,022 (a)               96,895        -8 %              -8 %
                                                                             ------                                      -----                                  ------                                        ------                        -----                   ------
    Gross profit                                                             30,145                                      3,049                                  33,194                                        28,230                        3,022                   31,252         7 %               6 %
    Operating expenses                                                       22,985                                      4,261 (a)                              18,724                                        23,678                        3,615 (a)               20,063        -3 %              -7 %
                                                                             ------                                      -----                                  ------                                        ------                        -----                   ------
    Operating income                                                         $7,160                                     $7,310                                 $14,470                                        $4,552                       $6,637                  $11,189        57 %              29 %
                                                                             ======                                     ======                                 =======                                        ======                       ======                  =======

    Selected ratios as a percentage of net sales
    Gross profit                                                              24.7 %                                                                             27.2 %                                        22.0 %                                                24.4 %
    Operating expenses                                                        18.8 %                                                                             15.4 %                                        18.5 %                                                15.7 %
    Operating income                                                           5.9 %                                                                             11.9 %                                         3.6 %                                                 8.7 %

                                                                                      Six Months Ended
                                                                                      ----------------
    Nutritionals                                               December 29, 2012                                                     December 31, 2011                                        % Change
                                                               -----------------                                                     -----------------                                        --------
                                                                 GAAP                               Non-GAAP Adjustments                          As Adjusted                                     GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                               --------------------                          -----------                                     ----                --------------------            -----------           ----       -----------
    Net sales                                                              $225,361                            $             -                                $225,361                                      $248,008            $               -                 $248,008        -9 %              -9 %
    Cost of sales                                                           169,381                                      6,099 (a)                             163,282                                       190,209                        8,871 (a)              181,338       -11 %             -10 %
                                                                            -------                                      -----                                 -------                                       -------                        -----                  -------
    Gross profit                                                             55,980                                      6,099                                  62,079                                        57,799                        8,871                   66,670        -3 %              -7 %
    Operating expenses                                                       44,937                                      8,511 (a)                              36,426                                        46,006                        7,231 (a)               38,775        -2 %              -6 %
                                                                             ------                                      -----                                  ------                                        ------                        -----                   ------
    Operating income                                                        $11,043                                    $14,610                                 $25,653                                       $11,793                      $16,102                  $27,895        -6 %              -8 %
                                                                            =======                                    =======                                 =======                                       =======                      =======                  =======

    Selected ratios as a percentage of net sales
    Gross profit                                                              24.8 %                                                                             27.5 %                                        23.3 %                                                26.9 %
    Operating expenses                                                        19.9 %                                                                             16.2 %                                        18.6 %                                                15.6 %
    Operating income                                                           4.9 %                                                                             11.4 %                                         4.8 %                                                11.2 %

                                                                                     Three Months Ended
                                                                                     ------------------
    Rx Pharmaceuticals                                         December 29, 2012                                                     December 31, 2011                                        % Change
                                                               -----------------                                                     -----------------                                        --------
                                                                 GAAP                               Non-GAAP Adjustments                          As Adjusted                                     GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                               --------------------                          -----------                                     ----                --------------------            -----------           ----       -----------
    Net sales                                                              $162,541                            $             -                                $162,541                                      $177,196            $               -                 $177,196        -8 %              -8 %
    Cost of sales                                                            76,505                                      8,457 (a)                              68,048                                        85,818                        7,969 (a)               77,849       -11 %             -13 %
                                                                             ------                                      -----                                  ------                                        ------                        -----                   ------
    Gross profit                                                             86,036                                      8,457                                  94,493                                        91,378                        7,969                   99,347        -6 %              -5 %
    Operating expenses                                                       21,977                                      1,526 (c)                              20,451                                        21,404                          599 (c)               20,805         3 %              -2 %
                                                                             ------                                      -----                                  ------                                        ------                          ---                   ------
    Operating income                                                        $64,059                                     $9,983                                 $74,042                                       $69,974                       $8,568                  $78,542        -8 %              -6 %
                                                                            =======                                     ======                                 =======                                       =======                       ======                  =======

    Selected ratios as a percentage of net sales
    Gross profit                                                              52.9 %                                                                             58.1 %                                        51.6 %                                                56.1 %
    Operating expenses                                                        13.5 %                                                                             12.6 %                                        12.1 %                                                11.7 %
    Operating income                                                          39.4 %                                                                             45.6 %                                        39.5 %                                                44.3 %

    (a) Deal-related amortization
    (b) Inventory step-up of $7,693
    (c) Severance costs
    (d) Inventory step-up of $27,179
    (e) Proceeds of $3,500 from sale of pipeline development projects
    (f) Severance costs of $3,755

                                                                                                                                                                              Table II (Continued)
                                                                                                                                                                                PERRIGO COMPANY
                                                                                                                                                                              REPORTABLE SEGMENTS
                                                                                                                                                                      RECONCILIATION OF NON-GAAP MEASURES
                                                                                                                                                                                 (in thousands)
                                                                                                                                                                                  (unaudited)

                                                                                        Six Months Ended
                                                                                        ----------------
    Rx Pharmaceuticals                                           December 29, 2012                                                        December 31, 2011                                      % Change
                                                                 -----------------                                                        -----------------                                      --------
                                                                 GAAP                                 Non-GAAP Adjustments                      As Adjusted                                    GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                                 --------------------                      -----------                                    ----                --------------------            -----------           ----       -----------
    Net sales                                                              $325,483                               $            -                            $325,483                                     $304,823             $            -                   $304,823         7 %               7 %
    Cost of sales                                                           152,763                                       16,859 (a)                         135,904                                      171,985                     42,501 (a,d)              129,484       -11 %               5 %
                                                                            -------                                       ------                             -------                                      -------                     ------                    -------
    Gross profit                                                            172,720                                       16,859                             189,579                                      132,838                     42,501                    175,339        30 %               8 %
    Operating expenses                                                       40,157                                        1,526 (c)                          38,631                                       38,379                        255 (e,f)               38,124         5 %               1 %
                                                                             ------                                        -----                              ------                                       ------                        ---                     ------
    Operating income                                                       $132,563                                      $18,385                            $150,948                                      $94,459                    $42,756                   $137,215        40 %              10 %
                                                                           ========                                      =======                            ========                                      =======                    =======                   ========

    Selected ratios as a percentage of net sales
    Gross profit                                                              53.1 %                                                                           58.2 %                                       43.6 %                                                57.5 %
    Operating expenses                                                        12.3 %                                                                           11.9 %                                       12.6 %                                                12.5 %
    Operating income                                                          40.7 %                                                                           46.4 %                                       31.0 %                                                45.0 %

                                                                                     Three Months Ended
                                                                                     ------------------
    API                                                        December 29, 2012                                                     December 31, 2011                                     % Change
                                                               -----------------                                                     -----------------                                     --------
                                                                 GAAP                                 Non-GAAP Adjustments                      As Adjusted                                    GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                                 --------------------                      -----------                                    ----                --------------------            -----------           ----       -----------
    Net sales                                                               $40,854                               $            -                             $40,854                                      $42,752             $            -                    $42,752        -4 %              -4 %
    Cost of sales                                                            17,971                                          481 (a)                          17,490                                       22,601                        496 (a)                 22,105       -20 %             -21 %
                                                                             ------                                          ---                              ------                                       ------                        ---                     ------
    Gross profit                                                             22,883                                          481                              23,364                                       20,151                        496                     20,647        14 %              13 %
    Operating expenses                                                        9,063                                            -                               9,063                                        8,458                          -                      8,458         7 %               7 %
                                                                              -----                                          ---                               -----                                        -----                        ---                      -----
    Operating income                                                        $13,820                                         $481                             $14,301                                      $11,693                       $496                    $12,189        18 %              17 %
                                                                            =======                                         ====                             =======                                      =======                       ====                    =======

    Selected ratios as a percentage of net sales
    Gross profit                                                              56.0 %                                                                           57.2 %                                       47.1 %                                                48.3 %
    Operating expenses                                                        22.2 %                                                                           22.2 %                                       19.8 %                                                19.8 %
    Operating income                                                          33.8 %                                                                           35.0 %                                       27.4 %                                                28.5 %

                                                                                      Six Months Ended
                                                                                      ----------------
    API                                                        December 29, 2012                                                     December 31, 2011                                     % Change
                                                               -----------------                                                     -----------------                                     --------
                                                                 GAAP                                 Non-GAAP Adjustments                      As Adjusted                                    GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                                 --------------------                      -----------                                    ----                --------------------            -----------           ----       -----------
    Net sales                                                               $77,273                               $            -                             $77,273                                      $90,396             $            -                    $90,396       -15 %             -15 %
    Cost of sales                                                            33,030                                          944 (a)                          32,086                                       48,637                      1,017 (a)                 47,620       -32 %             -33 %
                                                                             ------                                          ---                              ------                                       ------                      -----                     ------
    Gross profit                                                             44,243                                          944                              45,187                                       41,759                      1,017                     42,776         6 %               6 %
    Operating expenses                                                       17,104                                            -                              17,104                                       15,851                          -                     15,851         8 %               8 %
                                                                             ------                                          ---                              ------                                       ------                        ---                     ------
    Operating income                                                        $27,139                                         $944                             $28,083                                      $25,908                     $1,017                    $26,925         5 %               4 %
                                                                            =======                                         ====                             =======                                      =======                     ======                    =======

    Selected ratios as a percentage of net sales
    Gross profit                                                              57.3 %                                                                           58.5 %                                       46.2 %                                                47.3 %
    Operating expenses                                                        22.1 %                                                                           22.1 %                                       17.5 %                                                17.5 %
    Operating income                                                          35.1 %                                                                           36.3 %                                       28.7 %                                                29.8 %

                                                                                     Three Months Ended
                                                                                     ------------------
    Other                                                      December 29, 2012                                                     December 31, 2011                                     % Change
                                                               -----------------                                                     -----------------                                     --------
                                                                 GAAP                                 Non-GAAP Adjustments                      As Adjusted                                    GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                                 --------------------                      -----------                                    ----                --------------------            -----------           ----       -----------
    Net sales                                                               $18,338                               $            -                             $18,338                                      $18,798             $            -                    $18,798        -2 %              -2 %
    Cost of sales                                                            12,491                                          407 (a)                          12,084                                       12,495                        438 (a)                 12,057        -0 %               0 %
                                                                             ------                                          ---                              ------                                       ------                        ---                     ------
    Gross profit                                                              5,847                                          407                               6,254                                        6,303                        438                      6,741        -7 %              -7 %
    Operating expenses                                                        5,184                                            -                               5,184                                        5,379                          -                      5,379        -4 %              -4 %
                                                                              -----                                          ---                               -----                                        -----                        ---                      -----
    Operating income                                                           $663                                         $407                              $1,070                                         $924                       $438                     $1,362       -28 %             -21 %
                                                                               ====                                         ====                              ======                                         ====                       ====                     ======

    Selected ratios as a percentage of net sales
    Gross profit                                                              31.9 %                                                                           34.1 %                                       33.5 %                                                35.9 %
    Operating expenses                                                        28.3 %                                                                           28.3 %                                       28.6 %                                                28.6 %
    Operating income                                                           3.6 %                                                                            5.8 %                                        4.9 %                                                 7.2 %

                                                                                      Six Months Ended
                                                                                      ----------------
    Other                                                      December 29, 2012                                                     December 31, 2011                                     % Change
                                                               -----------------                                                     -----------------                                     --------
                                                                 GAAP                                 Non-GAAP Adjustments                      As Adjusted                                    GAAP                Non-GAAP Adjustments            As Adjusted           GAAP       As Adjusted
                                                                 ----                                 --------------------                      -----------                                    ----                --------------------            -----------           ----       -----------
    Net sales                                                               $34,948                               $            -                             $34,948                                      $37,280             $            -                    $37,280        -6 %              -6 %
    Cost of sales                                                            23,546                                          800 (a)                          22,746                                       25,393                        875 (a)                 24,518        -7 %              -7 %
                                                                             ------                                          ---                              ------                                       ------                        ---                     ------
    Gross profit                                                             11,402                                          800                              12,202                                       11,887                        875                     12,762        -4 %              -4 %
    Operating expenses                                                       10,314                                            -                              10,314                                       10,678                          -                     10,678        -3 %              -3 %
                                                                             ------                                          ---                              ------                                       ------                        ---                     ------
    Operating income                                                         $1,088                                         $800                              $1,888                                       $1,209                       $875                     $2,084       -10 %              -9 %
                                                                             ======                                         ====                              ======                                       ======                       ====                     ======

    Selected ratios as a percentage of net sales
    Gross profit                                                              32.6 %                                                                           34.9 %                                       31.9 %                                                34.2 %
    Operating expenses                                                        29.5 %                                                                           29.5 %                                       28.6 %                                                28.6 %
    Operating income                                                           3.1 %                                                                            5.4 %                                        3.2 %                                                 5.6 %

    (a) Deal-related amortization
    (b) Inventory step-up of $7,693
    (c) Severance costs
    (d) Inventory step-up of $27,179
    (e) Proceeds of $3,500 from sale of pipeline development projects
    (f) Severance costs of $3,755

                                Table III
                             PERRIGO COMPANY
                     FY 2013 GUIDANCE AND FY 2012 EPS
                   RECONCILIATION OF NON-GAAP MEASURES
                               (unaudited)

                                                            Full Year
                                                       Fiscal 2013 Guidance
                                                       --------------------
      FY13 reported diluted EPS range
       (2)                                                       $4.73 - $4.93
         Deal-related amortization (1,2)                                  0.63
         Charge associated with inventory
          step-up (2)                                                     0.05
         Charges associated with
          acquisition and severance
          costs(2)                                                        0.02
         Loss on sale of investment                                       0.02
     FY13 adjusted diluted EPS range                             $5.45 - $5.65

                                                           Fiscal 2012*
                                                           -----------
      FY12 reported diluted EPS from
      continuing operations                                              $4.18
         Deal-related amortization (1)                                   0.523
         Charge associated with inventory
          step-up                                                        0.181
         Charges associated with
          acquisition-related and
          severance costs                                                0.062
         Charges associated with
          restructuring                                                  0.061
         Net charge associated with
          acquired R&D and proceeds from
          sale of IPR&D projects                                         0.012
         Earnings associated with sale of
          pipeline development projects                                 (0.026)
      FY12 adjusted diluted EPS from
      continuing operations                                              $4.99

      (1) Amortization of acquired
      intangible assets related to
      business combinations and asset
      acquisitions
      (2) Does not include any
      estimate related to the Velcera
      acquisition

      *All information based on
      continuing operations.

SOURCE Perrigo Company


Source: PR Newswire