Revvity Announces Financial Results for the First Quarter of 2023

• Revenue of $675 million; (30)% reported growth; (27)% organic growth; 6% non-COVID organic growth
• GAAP EPS of $4.50; Adjusted EPS from continuing operations of $1.01
• Updates full year 2023 guidance
• Authorizes new $600 million share repurchase program
• To begin trading under new ticker “RVTY” on May 16^th

WALTHAM, Mass.--(BUSINESS WIRE)-- Revvity, Inc. (NYSE: PKI), today reported financial results for the first quarter ended April 2, 2023.

The Company reported GAAP earnings per share of $4.50, as compared to $1.40 in the same period a year ago. GAAP revenue for the quarter was $675 million, as compared to $963 million in the same period a year ago. GAAP operating income for the quarter was $76 million, as compared to $262 million for the same period a year ago. GAAP operating profit margin was 11.3% as a percentage of revenue, as compared to 27.2% in the same period a year ago.

Adjusted earnings per share from continuing operations for the quarter was $1.01, as compared to $2.30 in the same period a year ago. Adjusted revenue for the quarter was $675 million, as compared to $963 million in the same period a year ago. Adjusted operating income was $189 million, as compared to $393 million for the same period a year ago. Adjusted operating profit margin was 28.0% as a percentage of adjusted revenue, as compared to 40.8% in the same period a year ago.

Adjustments for the Company's non-GAAP financial measures have been noted in the attached reconciliations.

“Revvity has tremendous potential as we enter this new phase of our company’s journey,” said Prahlad Singh, president and chief executive officer of Revvity. “Our strong first quarter results demonstrate our consistent and high level of execution and set us on a positive path as we begin this next chapter in our transformation.”

Stock Ticker Change

The Company’s stock ticker will change from PKI to RVTY with the beginning of trading on May 16, 2023. Members of the Revvity team will ring the opening bell of the New York Stock Exchange that morning to commemorate the launch of the Company’s new corporate name and brand, and to celebrate initial trading under the new stock ticker. A livestream of the ceremony can be viewed at www.nyse.com/bell with videos and photos from the day to be provided on our social media channels.

Financial Overview by Reporting Segment for the First Quarter

Life Sciences

• First quarter 2023 revenue was $328 million, as compared to $306 million in the same period a year ago. Reported revenue increased 7% and organic revenue increased 9% as compared to the same period a year ago.

• First quarter 2023 adjusted operating income was $129 million, as compared to $110 million in the same period a year ago.

• First quarter 2023 adjusted operating profit margin was 39.4% as a percentage of adjusted revenue, as compared to 36.0% in the same period a year ago.

Diagnostics

• First quarter 2023 revenue was $347 million, as compared to $657 million in the same period a year ago. Reported revenue decreased 47% and organic revenue decreased 44% as compared to the same period a year ago.

• First quarter 2023 adjusted operating income was $74 million, as compared to $301 million in the same period a year ago.

• First quarter 2023 adjusted operating profit margin was 21.5% as a percentage of adjusted revenue, as compared to 45.8% in the same period a year ago.

Updates Full Year 2023 Guidance

For the full year 2023, the Company now forecasts total revenue of $2.90-$2.94 billion and adjusted earnings per share of $4.85-$5.05. This guidance assumes no additional contribution from COVID related revenues.

Guidance for the full year 2023 is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort due to the unpredictability of the amounts and timing of events affecting the items the Company excludes from these non-GAAP measures. The timing and amounts of such events and items could be material to the Company’s results prepared in accordance with GAAP.

Webcast Information

The Company will discuss its first quarter 2023 results and its outlook for business trends during a webcast on May 11, 2023, at 8:00 a.m. Eastern Time. A live audio webcast and presentation will be available on the Investors section of the Company’s website, ir.revvity.com.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are included below following our GAAP financial statements.

Factors Affecting Future Performance

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities, acquisitions and divestitures. Words such as "believes," "intends," "anticipates," "plans," "expects," “estimates”, "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These factors include, without limitation: (1) markets into which we sell our products declining or not growing as anticipated; (2) the effect of the COVID-19 pandemic on our sales and operations; (3) fluctuations in the global economic and political environments; (4) our failure to introduce new products in a timely manner; (5) our ability to execute acquisitions and divestitures, license technologies, or to successfully integrate acquired businesses and licensed technologies into our existing business or to make them profitable, or successfully divest businesses; (6) our ability to compete effectively; (7) fluctuation in our quarterly operating results and our ability to adjust our operations to address unexpected changes; (8) significant disruption in third-party package delivery and import/export services or significant increases in prices for those services; (9) disruptions in the supply of raw materials and supplies; (10) our ability to retain key personnel; (11) significant disruption in our information technology systems, or cybercrime; (12) our ability to realize the full value of our intangible assets; (13) our failure to adequately protect our intellectual property; (14) the loss of any of our licenses or licensed rights; (15) the manufacture and sale of products exposing us to product liability claims; (16) our failure to maintain compliance with applicable government regulations; (17) regulatory changes; (18) our failure to comply with healthcare industry regulations; (19) economic, political and other risks associated with foreign operations; (20) our ability to obtain future financing; (21) restrictions in our credit agreements; (22) significant fluctuations in our stock price; (23) reduction or elimination of dividends on our common stock; and (24) other factors which we describe under the caption "Risk Factors" in our most recent annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

About Revvity

At Revvity, “impossible” is inspiration, and “can’t be done” is a call to action. Revvity provides health science solutions, technologies, expertise and services that deliver complete workflows from discovery to development, and diagnosis to cure. Revvity is revolutionizing what’s possible in healthcare, with specialized focus areas in translational multi-omics technologies, biomarker identification, imaging, prediction, screening, detection and diagnosis, informatics and more.

With more than $3 billion in revenue and over 11,000 employees, Revvity serves customers across pharmaceutical and biotech, diagnostic labs, academia and governments. It is part of the S&P 500 index and has customers in more than 190 countries.

Stay updated by following our Newsroom, LinkedIn, Twitter, YouTube, Facebook and Instagram for updates.

	Revvity, Inc. and Subsidiaries
	CONDENSED CONSOLIDATED INCOME STATEMENTS
			Three Months Ended
	(In thousands, except per share data)		April 2, 2023				April 3, 2022
	Revenue		$	674,865			$	963,163
	Cost of revenue			293,499				368,423
	Selling, general and administrative expenses			248,557				275,260
	Research and development expenses			56,690				57,524
	Operating income from continuing operations			76,119				261,956
	Interest income			(5,272	)			(595	)
	Interest expense			22,738				28,388
	Change in fair value of financial securities			(2,768	)			12,124
	Other expense (income), net			31,981				(2,865	)
	Income from continuing operations, before income taxes			29,440				224,904
	Provision for income taxes			4,595				40,834
	Income from continuing operations			24,845				184,070
	Income (loss) from discontinued operations			544,630				(7,108	)
	Net income		$	569,475			$	176,962
	Diluted earnings per share:
	Income from continuing operations		$	0.20			$	1.45
	Income (loss) from discontinued operations			4.31				(0.06	)
	Net income		$	4.50			$	1.40
	Weighted average diluted shares of common stock outstanding			126,469				126,635
	ABOVE PREPARED IN ACCORDANCE WITH GAAP
	Additional supplemental information (1):
	(per share, continuing operations)
	GAAP EPS from continuing operations		$	0.20			$	1.45
	Amortization of intangible assets			0.73				0.75
	Debt extinguishment costs			(0.03	)			0.00
	Purchase accounting adjustments			(0.01	)			0.14
	Acquisition and divestiture-related costs			0.35				0.07
	Change in fair value of financial securities			(0.02	)			0.10
	Significant litigation matters and settlements			-				0.00
	Significant environmental matters			0.01				-
	Restructuring and other, net			0.02				0.07
	Tax on above items			(0.23	)			(0.28	)
	Significant tax items			(0.01	)			-
	Adjusted EPS from continuing operations		$	1.01			$	2.30
	(1) amounts may not sum due to rounding

Revvity, Inc. and Subsidiaries
REVENUE AND OPERATING INCOME (LOSS)
		Three Months Ended
(In thousands, except percentages)		April 2, 2023				April 3, 2022
Adjusted revenue and operating income
Reported revenue		$	674,865			$	963,163
Revenue purchase accounting adjustments			206				203
Adjusted revenue			675,071				963,366
Reported operating income from continued operations			76,119				261,956
OP%			11.3	%			27.2	%
Amortization of intangible assets			91,811				95,213
Purchase accounting adjustments			(914	)			18,004
Acquisition and divestiture-related costs			17,951				8,817
Significant litigation matters and settlements			-				425
Significant environmental matters			1,132				-
Restructuring and other, net			3,095				8,983
Adjusted operating income		$	189,194			$	393,398
OP%			28.0	%			40.8	%
Segment revenue and segment operating income
Life Sciences		$	328,441			$	306,087
Diagnostics			346,630				657,279
Revenue purchase accounting adjustments			(206	)			(203	)
Reported revenue			674,865				963,163
Life Sciences			129,459				110,181
			39.4	%			36.0	%
Diagnostics			74,432				300,899
			21.5	%			45.8	%
Corporate			(14,697	)			(17,682	)
Subtotal reportable segments operating income			189,194				393,398
Amortization of intangible assets			(91,811	)			(95,213	)
Purchase accounting adjustments			914				(18,004	)
Acquisition and divestiture-related costs			(17,951	)			(8,817	)
Significant litigation matters and settlements			-				(425	)
Significant environmental matters			(1,132	)			-
Restructuring and other, net			(3,095	)			(8,983	)
Reported operating income from continued operations		$	76,119			$	261,956
REPORTED REVENUE AND REPORTED OPERATING INCOME (LOSS) PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)	April 2, 2023			January 1, 2023
Current assets:
Cash and cash equivalents	$	2,267,183		$	454,358
Marketable securities		193,963			-
Accounts receivable, net		586,922			612,780
Inventories, net		429,423			405,462
Other current assets		318,116			122,254
Current assets of discontinued operations		-			1,693,704
Total current assets		3,795,607			3,288,558
Property, plant and equipment, net		491,162			482,950
Operating lease right-of-use assets		167,905			188,351
Intangible assets, net		3,294,657			3,377,174
Goodwill		6,505,956			6,481,768
Other assets, net		382,868			311,054
Total assets	$	14,638,155		$	14,129,855
Current liabilities:
Current portion of long-term debt	$	479,423		$	470,929
Accounts payable		266,884			272,826
Accrued expenses and other current liabilities		817,432			527,863
Current liabilities of discontinued operations		-			272,865
Total current liabilities		1,563,739			1,544,483
Long-term debt		3,880,984			3,923,347
Long-term liabilities		1,010,230			1,109,181
Operating lease liabilities		149,392			169,968
Total liabilities		6,604,345			6,746,979
Total stockholders' equity		8,033,810			7,382,876
Total liabilities and stockholders' equity	$	14,638,155		$	14,129,855
PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three Months Ended
	April 2, 2023				April 3, 2022
	(In thousands)
Operating activities:
Net income	$	569,475			$	176,962
(Income) loss from discontinued operations, net of income taxes		(544,630	)			7,108
Income from continuing operations		24,845				184,070
Adjustments to reconcile income from continuing operations
to net cash provided by continuing operations:
Stock-based compensation		9,893				14,438
Restructuring and other, net		3,096				8,983
Depreciation and amortization		109,008				109,330
Change in fair value of contingent consideration		(1,360	)			693
Amortization of deferred debt financing costs and accretion of discounts		1,792				1,781
Change in fair value of financial securities		(2,768	)			12,125
Debt extinguishment (income) loss		(3,345	)			119
Unrealized foreign exchange loss		26,095				-
Amortization of acquired inventory revaluation		-				16,868
Changes in assets and liabilities which provided (used) cash, excluding
effects from companies acquired:
Accounts receivable, net		34,424				77,398
Inventories		(18,520	)			(20,943	)
Accounts payable		(4,895	)			26,739
Accrued expenses and other		(106,591	)			(105,480	)
Net cash provided by operating activities of continuing operations		71,674				326,121
Net cash used in operating activities of discontinued operations		(8,211	)			(42,906	)
Net cash provided by operating activities		63,463				283,215
Investing activities:
Capital expenditures		(20,946	)			(26,969	)
Purchases of investments		-				(18,000	)
Purchases of marketable securities		(193,454	)			-
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired		(686	)			(3,630	)
Net cash used in investing activities of continuing operations		(215,086	)			(48,599	)
Net cash provided by (used in) investing activities of discontinued operations		2,079,588				(7,707	)
Net cash provided by (used in) investing activities		1,864,502				(56,306	)
Financing Activities:
Payments on borrowings		-				(220,000	)
Proceeds from borrowings		-				220,000
Payments of term loan		-				(100,000	)
Payments of senior debt		(49,603	)			-
Settlement of cash flow hedges		-				(762	)
Net proceeds (payments) on other credit facilities		7,867				(1,064	)
Payments for acquisition-related contingent consideration		(1,475	)			-
Proceeds from issuance of common stock under stock plans		523				1,397
Purchases of common stock		(61,656	)			(55,592	)
Dividends paid		(8,841	)			(8,837	)
Net cash used in financing activities		(113,185	)			(164,858	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(16,969	)			(10,636	)
Net increase in cash, cash equivalents, and restricted cash		1,797,811				51,415
Cash, cash equivalents, and restricted cash at beginning of period		470,746				619,337
Cash, cash equivalents, and restricted cash at end of period	$	2,268,557			$	670,752
Supplemental disclosure of cash flow information:
Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:
Cash and cash equivalents	$	2,267,183			$	654,756
Restricted cash included in other current assets		1,019				997
Restricted cash included in other assets		355				-
Cash and cash equivalents included in current assets of discontinued operations		-				14,999
Total cash, cash equivalents and restricted cash	$	2,268,557			$	670,752
PREPARED IN ACCORDANCE WITH GAAP

Revvity, Inc. and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)
	Revvity
		Three Months Ended
		April 2, 2023
Organic revenue growth:
Reported revenue growth from continuing operations		-30%
Less: effect of foreign exchange rates		-3%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses		0%
Organic revenue growth from continuing operations		-27%
Less: effect of COVID products		-33%
Non-COVID organic revenue growth from continuing operations		6%
	Life Sciences
		Three Months Ended
		April 2, 2023
Organic revenue growth:
Reported revenue growth from continuing operations		7%
Less: effect of foreign exchange rates		-2%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses		0%
Organic revenue growth from continuing operations		9%
	Diagnostics
		Three Months Ended
		April 2, 2023
Organic revenue growth:
Reported revenue growth from continuing operations		-47%
Less: effect of foreign exchange rates		-3%
Less: effect of acquisitions including purchase accounting adjustments and impact of divested businesses		0%
Organic revenue growth from continuing operations		-44%
Less: effect of COVID products		-47%
Non-COVID organic revenue growth from continuing operations		3%
(1) amounts may not sum due to rounding

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

We use the term “adjusted revenue” to refer to GAAP revenue, including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “adjusted revenue growth” to refer to the measure of comparing current period adjusted revenue with the corresponding period of the prior year.

We use the term “organic revenue” to refer to GAAP revenue, excluding the effect of foreign currency changes and revenue from recent acquisitions and divestitures and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We use the related term “organic revenue growth” to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year. We use the related term “non-COVID organic revenue growth” to refer to the measure of comparing current period organic revenue excluding revenue from COVID related products and services with the corresponding period of the prior year excluding revenue from COVID related products and services.

We use the term “adjusted gross margin” to refer to GAAP gross margin, excluding amortization of intangible assets and inventory fair value adjustments related to business acquisitions, asset impairments, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to business combination accounting rules. We use the related term “adjusted gross margin percentage” to refer to adjusted gross margin as a percentage of adjusted revenue.

We use the term “adjusted SG&A expense” to refer to GAAP SG&A expense, excluding amortization of intangible assets, purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, asset impairments, and significant environmental charges. We use the related term “adjusted SG&A percentage” to refer to adjusted SG&A expense as a percentage of adjusted revenue.

We use the term “adjusted R&D expense” to refer to GAAP R&D expense, excluding amortization of intangible assets and purchase accounting adjustments. We use the related term “adjusted R&D percentage” to refer to adjusted R&D expense as a percentage of adjusted revenue.

We use the term “adjusted net interest and other expense” to refer to GAAP net interest and other expense, excluding adjustments for mark-to-market accounting on post-retirement benefits, changes in foreign exchange associated with acquisitions and divestitures, changes in the value of financial securities and debt extinguishment costs.

We use the term “adjusted operating income,” to refer to GAAP operating income, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding amortization of intangible assets, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, significant environmental charges, asset impairments, and restructuring and other charges. We use the related terms “adjusted operating profit percentage,” “adjusted operating profit margin,” or “adjusted operating margin” to refer to adjusted operating income as a percentage of adjusted revenue.

We use the term “adjusted earnings per share,” or “adjusted EPS,” to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding discontinued operations, amortization of intangible assets, debt extinguishment costs, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, significant environmental charges, changes in the value of financial securities, disposition of businesses and assets, net, changes in foreign exchange associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events.

We use the term “adjusted earnings per share from continuing operations,” to refer to GAAP earnings per share from continuing operations, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, amortization of intangible assets, debt extinguishment costs, other purchase accounting adjustments, acquisition and divestiture-related expenses, significant litigation matters and settlements, significant environmental charges, changes in the value of financial securities, disposition of businesses and assets, net, changes in foreign exchange associated with acquisitions and divestitures, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events.

Management includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:

• Amortization of intangible assets— purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.
• Debt extinguishment costs—we incur costs and income related to the extinguishment of debt; including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make-whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.
• Revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules— accounting rules require us to account for the fair value of revenue from contracts assumed in connection with our acquisitions. As a result, our GAAP results reflect the fair value of those revenues, which is not the same as the revenue that otherwise would have been recorded by the acquired entity. We include such revenue in our non-GAAP measures because we believe the fair value of such revenue does not accurately reflect the performance of our ongoing operations for the period in which such revenue is recorded.
• Other purchase accounting adjustments—accounting rules require us to adjust various balance sheet accounts, including inventory, fixed assets and deferred rent balances to fair value at the time of the acquisition. As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration from our non-GAAP measures because we believe these expenses or benefits do not accurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded.
• Acquisition and divestiture-related expenses—we incur legal, due diligence, stay bonuses, incentive awards, stock-based compensation, interest expense, foreign exchange gains and losses, integration expenses and other costs related to acquisitions and divestitures. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.
• Asset impairments—we incur expense related to asset impairments. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred.
• Restructuring and other charges—restructuring and other charges consist of employee severance, other exit costs as well as the cost of terminating certain lease agreements or contracts as well as costs associated with relocating facilities. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported.
• Adjustments for mark-to-market accounting on post-retirement benefits—we exclude adjustments for mark-to-market accounting on post-retirement benefits, and therefore only our projected costs are used to calculate our non-GAAP measures. We exclude these adjustments because they do not represent what we believe our investors consider to be costs of producing our products, investments in technology and production, and costs to support our internal operating structure.
• Significant litigation matters and settlements—we incur expenses related to significant litigation matters, including the costs to settle or resolve various claims and legal proceedings. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred.
• Significant environmental charges—we incur expenses related to significant environmental charges. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred.
• Disposition of businesses and assets, net—we exclude the impact of gains or losses from the disposition of businesses and assets from our adjusted earnings per share. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported.
• Impact of foreign currency changes on the current period— we exclude the impact of foreign currency associated with acquisitions and divestitures from these measures by using the prior period’s foreign currency exchange rates for the current period because foreign currency exchange rates are subject to volatility and can obscure underlying trends.
• Impact of significant tax events—we exclude the impact of significant tax events, such as the Tax Cuts and Jobs Act of 2017. Management does not believe the impact of significant tax events accurately reflects the performance of our ongoing operations for the periods in which the impact of such events was recorded.
• Changes in value of financial securities—we exclude the impact of changes in the value of financial securities. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported.
• Depreciation of fixed assets ceased upon reporting the business as held for sale—we exclude the impact of ceasing depreciation of fixed assets that are held for sale. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such expenses were ceased.

# # #

The tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board’s Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, debt extinguishment costs, other costs related to business acquisitions and divestitures, significant litigation matters and settlements, significant environmental charges, changes in the fair value of financial securities, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, restructuring and other charges, and the revenue from contracts acquired with various acquisitions is calculated based on operational results and applicable jurisdictional law, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on the average rate currently in effect to determine our tax provision.

The non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies.

Each of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005092/en/

Investor Relations:

Steve Willoughby (781) 663-5677

steve.willoughby@revvity.com

Media Contact:

Fara Goldberg (781) 663-5699

fara.goldberg@revvity.com

Source: Revvity, Inc.