Kensey Nash Corporation | |||||||||||||
Adjusted Earnings Per Share Reconciliation | |||||||||||||
Fiscal Year Ending | Fiscal Year Ending | Year over Year | |||||||||||
June 30, 2011 | June 30, 2012 | Percentage Increase | |||||||||||
Range | Range | Range | |||||||||||
Low | High | Low | High | Minimum | Maximum | ||||||||
Diluted Earnings Per Share - GAAP (a) | $ 0.20 | $ 0.22 | $ 1.85 | $ 1.90 | |||||||||
Acquired In-Process Research & Development (b) | 1.32 | 1.32 | - | - | |||||||||
Adjusted Diluted Earnings Per Share | $ 1.52 | $ 1.54 | $ 1.85 | $ 1.90 | 20% | 25% | |||||||
(a) Diluted Earnings Per Share for the fiscal years ended June 30, 2011 and 2012 excludes the impact of any related step-up in inventory values required under acquisition accounting. | |||||||||||||
(b) Diluted Earnings Per Share for the fiscal year ended June 30, 2011 included acquired in-process research and development (IPR&D) pre-tax charges of approximately $18.2 million ($11.8 million net of tax), or $1.32 diluted per share tax-effected. This acquired IPR&D charge was incurred in connection with the acquisition of the net assets of Nerites Corporation, a developer of medical adhesives and anti-fouling coatings during the third quarter of fiscal 2011. | |||||||||||||
Note: To supplement our consolidated financial statements presented in accordance with GAAP, Kensey Nash Corporation uses non-GAAP measures, such as Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is adjusted from our GAAP results to exclude certain expenses described above. This non-GAAP measure was provided to enhance the user's overall understanding of our historical and current financial performance. We believe the non-GAAP results provide useful information to both management and investors by excluding certain non-operating items, non-cash expenses and expenses that we believe are not indicative of our core operating results. | |||||||||||||
This non-GAAP measure provides investors and management with an alternative method for assessing Kensey Nash’s operating results. Further, this non-GAAP measure is one of several primary indicators management uses for planning and forecasting. The presentation of this additional information should not be considered in isolation of, or as a substitute for, results prepared in accordance with GAAP. | |||||||||||||
