Germantown, Maryland, and Hilden, Germany, December 22, 2017 – QIAGEN N.V. (NASDAQ: QGEN; Frankfurt Prime Standard: QIA) announces that, mainly as a consequence of the new U.S. tax legislation, it will take an extraordinary after-tax charge on net income of approximately $110-120 million (or about $0.47-$0.52 per share) in the fourth quarter of 2017, and an additional extraordinary after-tax charge in 2018 of approximately $7 million (or about $0.03 per share).
These charges, the vast majority of which involve non-cash items, do not affect QIAGEN’s adjusted EPS forecast for the fourth quarter and full-year 2017, nor the forecast to be provided for full-year 2018 in January 2018, since these extraordinary costs will be excluded from adjusted results.
For the charge in the fourth quarter of 2017, approximately $100-110 million of the write-off involve non-cash items related to deferred tax assets, revaluation of deferred tax liabilities and other tax provisions. QIAGEN has proactively initiated additional restructuring initiatives that will mitigate some of the impact of the new U.S. tax law. As a result, a new after-tax charge of approximately $10 million is planned to be taken in the fourth quarter of 2017. An additional after-tax charge of approximately $7 million is planned to be taken during 2018 related to these specific measures. QIAGEN notes that it has now completed its previously announced efficiency programs with these measures and does not expect any additional material non-M&A related restructuring charges in 2018.
Based on an initial review of the new U.S. legislation, as well as the current global tax environment, QIAGEN currently expects a preliminary adjusted tax rate for full-year 2018 of approximately 20-21%, mainly due to the new U.S. limitations on interest deductions. This preliminary outlook for 2018 compares to an adjusted tax rate of approximately 17-18% expected for full-year 2017, and to a mid-term outlook provided at QIAGEN’s analyst and investor day in November 2016 for an adjusted tax rate of approximately 19-20% in the period from 2018 to 2020.
QIAGEN plans to release further details when it reports results for the fourth quarter and full-year 2017, which is scheduled for January 31, 2018.
QIAGEN N.V.
Hulsterweg 82
5912 PL Venlo
The Netherlands
ISIN: NL0000240000
Frankfurt Stock Exchange, Regulated Market (Prime Standard)