Perrigo Expects FY16 Adj. EPS In Range Of $7.10 - $7.25 - Quick Facts

(RTTNews) - Perrigo Company plc (PRGO) announced select preliminary unaudited results for the calendar year ended December 31, 2016. The company will file a Form 12b-25 Notification of Late Filing with the U.S. SEC with regard to its 2016 Annual Report on Form 10-K. Perrigo expects its unaudited calendar year 2016 preliminary reported loss per share in a range of $28.85-$29.00 primarily due to goodwill and intangible asset impairment charges of $5.4 billion; with preliminary adjusted earnings per share in the range of $7.10 - $7.25. Perrigo delivered preliminary unaudited calendar year 2016 record reported net sales of $5.6 billion and adjusted net sales of $5.5 billion. Full year 2016 cash flow from operations is expected to be $1.01 billion, which exceeds the company's previously revised guidance range of approximately $900 million.

Perrigo expects its 2017 net sales to be in the range of $5.0 billion to $5.2 billion, which includes the cancellation of $220 million of unprofitable distribution agreements in the CHCI business. The company expects 2017 GAAP reported earnings per share to be in the range of $3.39 to $3.74 and adjusted earnings per share to be in the range of $6.30 to $6.65, including contributions from Tysabri and API and excluding charges. The company noted that its calendar 2017 guidance includes GAAP reported earnings contributions from Tysabri in the range of $1.03 - $1.09 per shares and adjusted earnings contributions from Tysabri in the range of $2.12 - $2.18 per share and assumes completion of debt pay-down strategy by mid-2017.

Perrigo's CEO John Hendrickson said: "Despite the delay in filing our Form 10-K, we remain committed to providing timely, accurate and transparent financial reporting. We currently expect to complete the necessary procedures to file our Form 10-K within the 12b-25 extension period. The Board and management are working diligently and expeditiously to advance our strategic roadmap, including an enhanced review of the Rx business, to drive value for shareholders."

The company currently expects that it will file its Form 10-K on or before March 16, 2017, the prescribed due date under the fifteen calendar day extension period provided by Rule 12b-25 under the Securities Exchange Act of 1934. The scope of work required to finalize the financial statements included in the 2016 Form 10-K includes the final impairment calculations related to the announced sale of Tysabri, and deferred tax assets and other related effects at Omega Pharma Invest N.V.

On February 22, 2017, Ernst & Young, the company's independent auditors, notified the company that it is evaluating the historical revenue recognition practices associated with Tysabri.