Business context and reporting period
This filing is PerkinElmer, Inc.’s Form 10-K for the 52-week fiscal year ended January 1, 2023—not a filing under the name Revvity, Inc. The company operated Discovery & Analytical Solutions and Diagnostics, with products and services across life sciences, applied markets, and clinical diagnostics. Results for the Analytical, Food and Enterprise Services businesses are presented as discontinued operations, and prior periods were recast accordingly.
Financial performance
| Metric | FY2022 | FY2021 |
|---|---|---|
| Continuing-operations revenue | $3.312 billion | $3.828 billion |
| Gross profit / margin | $1.990 billion / 60% | $2.434 billion / 64% |
| Operating income / margin | $743 million / 22% | $1.258 billion / 33% |
| Income from continuing operations | $513 million | $889 million |
| Net income, including discontinued operations | $569 million | $943 million |
| Diluted EPS, total | $4.50 | $8.08 |
| Cash from continuing operations | $673 million | $1.330 billion |
- Revenue by continuing segment: Discovery & Analytical Solutions rose 44% to $1.293 billion; Diagnostics fell 31% to $2.020 billion.
- Cash and debt: Cash and cash equivalents were $454 million at year-end. Debt carrying value was $4.394 billion, including $471 million classified as current. The company had approximately $1.49 billion of availability under its revolving credit facility and no borrowings outstanding under it.
- Capital allocation: Continuing-operations capital expenditures were $86 million. The company paid $35 million in dividends and repurchased $81 million of shares during FY2022.
- Q4 FY2022: Revenue was $741 million, gross profit $436 million, operating income from continuing operations $137 million, and continuing-operations income $97 million. Compared with Q4 FY2021, revenue declined from $1.028 billion and operating income from $300 million.
Material changes versus the prior period
- Overall continuing-operations revenue declined 13%, reflecting a 31% reduction in Diagnostics, primarily from lower COVID-19-related demand. The company cited declines of $689 million in immunodiagnostics and $226 million in applied genomics revenue.
- Discovery & Analytical Solutions grew, supported by life-sciences demand and acquisitions; FY2022 revenue included $309 million from 2021 acquisitions in this segment. Unfavorable foreign exchange reduced consolidated revenue by approximately 4%.
- Gross margin declined about 350 basis points and operating margin about 1,045 basis points. Management attributed pressure to lower COVID-19 revenue and acquired-intangible amortization, among other factors; segment results also reflected investment in products and growth initiatives.
- Cash from continuing operations decreased $658 million. Operating cash flow was affected by a $263 million net use of working capital, while FY2021 cash flows included the unusually large acquisition of BioLegend and related financing activity.
Outlook, risks and unusual items
- The company had agreed to sell the Analytical, Food and Enterprise Services businesses for up to approximately $2.45 billion, including approximately $2.30 billion payable at closing subject to adjustments, deferred brand-related consideration, and up to $150 million in contingent post-closing payments. At filing, closing was expected in Q1 FY2023; management expected approximately $2.2 billion of proceeds and planned to use them toward debt maturities, potential share repurchases, and acquisitions.
- Management expected FY2023 capital expenditures to be similar to FY2022. It anticipated continuing declines in COVID-19-related Diagnostics demand. The filing does not provide a clear numerical revenue or EPS forecast.
- FY2022 included $370.6 million of acquired-intangible amortization, $45.3 million of acquired-inventory purchase-accounting expense, and $39.8 million of acquisition- and divestiture-related costs in continuing operations. The proposed divestiture also generated $69.4 million of divestiture-related costs in discontinued operations.
- Key risks include ongoing COVID-19 demand normalization, economic and foreign-exchange exposure, supply constraints and inflation, dependence on key suppliers, regulatory and product-liability exposure, cybersecurity, and substantial debt. Goodwill impairment risk was noted for the Tulip and EUROIMMUN reporting units, although management did not expect a material impairment charge.
- Environmental remediation accruals were $12.2 million. Management said pending claims and proceedings were not expected to have a material adverse effect, while acknowledging outcomes remain uncertain. The financial statements and internal controls received unqualified audit opinions.
Important facts for investors to verify
- Confirm the filing entity and period: this is PerkinElmer, Inc. (PKI), FY2022 ended January 1, 2023; the supplied company label “Revvity, Inc.” does not match the filing’s issuer name.
- Verify completion, final proceeds, adjustments, contingent payments, and use of proceeds from the announced divestiture; the filing describes the transaction as pending at the time.
- Assess whether growth in continuing life-sciences businesses can offset further COVID-19-related Diagnostics declines and the loss of divested operations.
- Review debt maturities—particularly the $467 million due in 2023 and approximately $773 million due in 2024—and the company’s repayment and refinancing plans.
- Monitor cash conversion and working capital, margin trends, goodwill impairment assumptions, and the effect of ongoing acquired-intangible amortization.