EX-99.2 3 a08-18151_1ex99d2.htm EX-99.2

 

Exhibit 99.2

 

The following unaudited pro forma consolidated balance sheet and unaudited pro forma consolidated statements of operations for Applera Corporation gives effect to the distribution of the net assets of the Celera Group to the Celera stockholders.  The unaudited pro forma consolidated balance sheet and unaudited pro forma consolidated statements of operations are based on the historical statements of Applera and should be read in conjunction with the historical financial statements and notes of Applera Corporation previously filed. The adjustments reflected in the pro forma consolidated balance sheet below include (i) the establishment of a valuation allowance for tax assets remaining with the Celera Group estimated to be approximately $85 million on March 31, 2008; (ii) the establishment of an estimated liability of $2.6 million for additional transaction costs associated with the separation of the Celera Group and (iii) the distribution of the net assets of the Celera Group. The accompanying pro forma consolidated statements of operations reflect the adjustments to exclude the results of the Celera Group from continuing operations but do not include the impact of the valuation allowance and the additional transaction costs referred to above because they are nonrecurring and directly attributable to the transaction. These items will be reflected in the consolidated statement of operations in the period the costs are incurred.

 

The pro forma amounts included herein are based on preliminary estimates. Actual reported amounts in the future could be materially different.

 

Applera Corporation

Pro Forma Consolidated Balance Sheet at March 31, 2008 (Unaudited)

(amounts in 000s)

 

 

 

 

 

Pro Forma

 

 

 

March 31, 2008

 

Adjustments

 

Consolidated

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

426,328

 

$

(61,639

)

$

364,689

 

Short-term investments

 

276,634

 

(276,634

)

—

 

Accounts receivable, net

 

491,191

 

(32,319

)

458,872

 

Inventories, net

 

180,978

 

(8,758

)

172,220

 

Prepaid expenses and other current assets

 

174,164

 

(34,194

)

139,970

 

Total current assets

 

1,549,295

 

(413,544

)

1,135,751

 

Property, plant and equipment, net

 

383,984

 

(11,768

)

372,216

 

Goodwill and intangible assets, net

 

529,368

 

(241,180

)

288,188

 

Other long-term assets

 

587,800

 

(89,806

)

497,994

 

 Total Assets

 

$

3,050,447

 

$

(756,298

)

$

2,294,149

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Loans payable

 

$

125,123

 

$

(123

)

$

125,000

 

Accounts payable

 

160,379

 

(5,310

)

155,069

 

Accrued salaries and wages

 

94,386

 

(7,919

)

86,467

 

Current deferred tax liability

 

15,952

 

—

 

15,952

 

Accrued taxes on income

 

11,242

 

(1,221

)

10,021

 

Other accrued expenses

 

324,974

 

(13,729

)

311,245

 

Total current liabilities

 

732,056

 

(28,302

)

703,754

 

Other long-term liabilities

 

246,129

 

(6,340

)

239,789

 

Total Liabilities

 

978,185

 

(34,642

)

943,543

 

 

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

2,072,262

 

(721,656

)

1,350,606

 

Total Liabilities and Stockholders’ Equity

 

$

3,050,447

 

$

(756,298

)

$

2,294,149

 

 


 

Applera Corporation

Pro Forma Consolidated Statement of Operations For the Nine Months Ended March 31, 2008 (Unaudited)

(dollar amounts in 000s, except per share amounts)

 

 

 

 

 

Pro Forma

 

 

 

March 31, 2008

 

Adjustments

 

Consolidated

 

Products

 

$

1,342,425

 

$

(20,844

)

$

1,321,581

 

Services

 

248,129

 

(44,830

)

203,299

 

Other

 

118,839

 

(28,049

)

90,790

 

Total Net Revenues

 

1,709,393

 

(93,723

)

1,615,670

 

 

 

 

 

 

 

 

 

Products

 

607,192

 

(11,597

)

595,595

 

Services

 

105,397

 

(15,165

)

90,232

 

Other

 

8,925

 

—

 

8,925

 

Cost of Sales

 

721,514

 

(26,762

)

694,752

 

 

 

 

 

 

 

 

 

Gross Margin

 

987,879

 

(66,961

)

920,918

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

512,413

 

(43,670

)

468,743

 

Research and development

 

174,014

 

(30,416

)

143,598

 

Amortization of purchased intangible assets

 

12,439

 

(4,604

)

7,835

 

Employee-related charges, asset impairments, and other

 

8,233

 

(5,355

)

2,878

 

Asset dispositions and legal settlements

 

(8,656

)

1,100

 

(7,556

)

 

 

 

 

 

 

 

 

Operating Income

 

289,436

 

15,984

 

305,420

 

 

 

 

 

 

 

 

 

Gain (loss) on investments, net

 

(415

)

3,080

 

2,665

 

Interest income (expense), net

 

20,822

 

(15,131

)

5,691

 

Other income (expense), net

 

2,596

 

13

 

2,609

 

 

 

 

 

 

 

 

 

Income before Income Taxes

 

312,439

 

3,946

 

316,385

 

Provision (benefit) for income taxes

 

88,906

 

(132

)

88,774

 

Income from Continuing Operations

 

$

223,533

 

$

4,078

 

$

227,611

 

 

 

 

 

 

 

 

 

Applied Biosystems Group

 

 

 

 

 

 

 

Income from Continuing Operations per share

 

 

 

 

 

 

 

Basic

 

$

1.32

 

 

 

$

1.31

 

Diluted

 

$

1.28

 

 

 

$

1.27

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic

 

174.2

 

 

 

174.2

 

Diluted

 

179.6

 

 

 

179.6

 

 

 

 

 

 

 

 

 

Celera Group

 

 

 

 

 

 

 

Loss from Continuing Operations per share

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic and diluted

 

79.4

 

 

 

 

 

 


 

Applera Corporation

Pro Forma Consolidated Statement of Operations For the Fiscal Year Ended June 30, 2007 (Unaudited)

(dollar amounts in 000s, except per share amounts)

 

 

 

 

 

Pro Forma

 

 

 

June 30, 2007

 

Adjustments

 

Consolidated

 

Products

 

$

1,753,152

 

$

(20,976

)

$

1,732,176

 

Services

 

244,041

 

(10

)

244,031

 

Other

 

135,300

 

(18,039

)

117,261

 

Total Net Revenues

 

2,132,493

 

(39,025

)

2,093,468

 

 

 

 

 

 

 

 

 

Products

 

832,241

 

(15,646

)

816,595

 

Services

 

107,407

 

328

 

107,735

 

Other

 

11,824

 

—

 

11,824

 

Cost of Sales

 

951,472

 

(15,318

)

936,154

 

 

 

 

 

 

 

 

 

Gross Margin

 

1,181,021

 

(23,707

)

1,157,314

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

622,692

 

(20,142

)

602,550

 

Research and development

 

253,971

 

(50,130

)

203,841

 

Amortization of purchased intangible assets

 

11,264

 

—

 

11,264

 

Employee-related charges, asset impairments, and other

 

10,342

 

(10,342

)

—

 

Asset dispositions and legal settlements

 

(4,585

)

2,357

 

(2,228

)

Acquired research and development

 

114,251

 

—

 

114,251

 

 

 

 

 

 

 

 

 

Operating Income

 

173,086

 

54,550

 

227,636

 

 

 

 

 

 

 

 

 

Gain (loss) on investments, net

 

209

 

—

 

209

 

Interest income (expense), net

 

43,172

 

(27,826

)

15,346

 

Other income (expense), net

 

6,755

 

(456

)

6,299

 

 

 

 

 

 

 

 

 

Income before Income Taxes

 

223,222

 

26,268

 

249,490

 

Provision (benefit) for income taxes

 

72,451

 

12,702

 

85,153

 

Income from Continuing Operations

 

$

150,771

 

$

13,566

 

$

164,337

 

 

 

 

 

 

 

 

 

Applied Biosystems Group

 

 

 

 

 

 

 

Income from Continuing Operations per share

 

 

 

 

 

 

 

Basic

 

$

0.93

 

 

 

$

0.90

 

Diluted

 

$

0.90

 

 

 

$

0.86

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic

 

183.2

 

 

 

183.2

 

Diluted

 

190.2

 

 

 

190.2

 

 

 

 

 

 

 

 

 

Celera Group

 

 

 

 

 

 

 

Loss from Continuing Operations per share

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.25

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic and diluted

 

78.3

 

 

 

 

 

 


 

Applera Corporation

Pro Forma Consolidated Statement of Operations For the Fiscal Year Ended June 30, 2006 (Unaudited)

(dollar amounts in 000s, except per share amounts)

 

 

 

 

 

Pro Forma

 

 

 

June 30, 2006

 

Adjustments

 

Consolidated

 

Products

 

$

1,595,230

 

$

(23,090

)

$

1,572,140

 

Services

 

217,634

 

(397

)

217,237

 

Other

 

136,526

 

(14,677

)

121,849

 

Total Net Revenues

 

1,949,390

 

(38,164

)

1,911,226

 

 

 

 

 

 

 

 

 

Products

 

769,416

 

(15,241

)

754,175

 

Services

 

96,346

 

456

 

96,802

 

Other

 

15,476

 

—

 

15,476

 

Cost of Sales

 

881,238

 

(14,785

)

866,453

 

 

 

 

 

 

 

 

 

Gross Margin

 

1,068,152

 

(23,379

)

1,044,773

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

584,483

 

(22,882

)

561,601

 

Research and development

 

271,359

 

(91,064

)

180,295

 

Amortization of purchased intangible assets

 

5,916

 

(1,091

)

4,825

 

Employee-related charges, asset impairments, and other

 

26,547

 

(26,191

)

356

 

Asset dispositions and legal settlements

 

11,221

 

(675

)

10,546

 

Acquired research and development

 

3,400

 

—

 

3,400

 

 

 

 

 

 

 

 

 

Operating Income

 

165,226

 

118,524

 

283,750

 

 

 

 

 

 

 

 

 

Gain (loss) on investments, net

 

7,628

 

(7,628

)

—

 

Interest income (expense), net

 

37,058

 

(22,364

)

14,694

 

Other income (expense), net

 

5,342

 

225

 

5,567

 

 

 

 

 

 

 

 

 

Income before Income Taxes

 

215,254

 

88,757

 

304,011

 

Provision (benefit) for income taxes

 

2,762

 

38,138

 

40,900

 

Income from Continuing Operations

 

$

212,492

 

$

50,619

 

$

263,111

 

 

 

 

 

 

 

 

 

Applied Biosystems Group

 

 

 

 

 

 

 

Income from Continuing Operations per share

 

 

 

 

 

 

 

Basic

 

$

1.47

 

 

 

$

1.41

 

Diluted

 

$

1.43

 

 

 

$

1.37

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic

 

187.0

 

 

 

187.0

 

Diluted

 

191.9

 

 

 

191.9

 

 

 

 

 

 

 

 

 

Celera Group

 

 

 

 

 

 

 

Loss from Continuing Operations per share

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.83

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic and diluted

 

75.5

 

 

 

 

 

 


 

Applera Corporation

Pro Forma Consolidated Statement of Operations For the Fiscal Year Ended June 30, 2005 (Unaudited)

(dollar amounts in 000s, except per share amounts)

 

 

 

 

 

Pro Forma

 

 

 

June 30, 2005

 

Adjustments

 

Consolidated

 

Products

 

$

1,511,975

 

$

(25,678

)

$

1,486,297

 

Services

 

204,847

 

(5,811

)

199,036

 

Other

 

128,318

 

(26,568

)

101,750

 

Total Net Revenues

 

1,845,140

 

(58,057

)

1,787,083

 

 

 

 

 

 

 

 

 

Products

 

741,582

 

(15,034

)

726,548

 

Services

 

93,771

 

514

 

94,285

 

Other

 

13,306

 

238

 

13,544

 

Cost of Sales

 

848,659

 

(14,282

)

834,377

 

 

 

 

 

 

 

 

 

Gross Margin

 

996,481

 

(43,775

)

952,706

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

525,377

 

(26,326

)

499,051

 

Research and development

 

330,603

 

(138,537

)

192,066

 

Amortization of purchased intangible assets

 

4,237

 

(2,900

)

1,337

 

Employee-related charges, asset impairments, and other

 

34,376

 

(2,614

)

31,762

 

Asset dispositions and legal settlements

 

(38,172

)

—

 

(38,172

)

 

 

 

 

 

 

 

 

Operating Income

 

140,060

 

126,602

 

266,662

 

 

 

 

 

 

 

 

 

Gain (loss) on investments, net

 

(50

)

—

 

(50

)

Interest income (expense), net

 

28,860

 

(14,941

)

13,919

 

Other income (expense), net

 

4,473

 

(1,271

)

3,202

 

 

 

 

 

 

 

 

 

Income before Income Taxes

 

173,343

 

110,390

 

283,733

 

Provision (benefit) for income taxes

 

13,548

 

43,699

 

57,247

 

Income from Continuing Operations

 

$

159,795

 

$

66,691

 

$

226,486

 

 

 

 

 

 

 

 

 

Applied Biosystems Group

 

 

 

 

 

 

 

Income from Continuing Operations per share

 

 

 

 

 

 

 

Basic

 

$

1.21

 

 

 

$

1.15

 

Diluted

 

$

1.19

 

 

 

$

1.14

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic

 

196.4

 

 

 

196.4

 

Diluted

 

199.0

 

 

 

199.0

 

 

 

 

 

 

 

 

 

Celera Group

 

 

 

 

 

 

 

Loss from Continuing Operations per share

 

 

 

 

 

 

 

Basic and diluted

 

$

(1.05

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (in millions)

 

 

 

 

 

 

 

Basic and diluted

 

73.4