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8-K - FORM 8-K - Intermec, Inc. | d428747d8k.htm |
EX-10.1 - FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT - Intermec, Inc. | d428747dex101.htm |
Exhibit 99.1
Intermec, Inc. 6001 36th Avenue West Everett, WA 98203-1264 www.intermec.com |
FOR IMMEDIATE RELEASE
INTERMEC PRELIMINARY THIRD QUARTER 2012 RESULTS
| Global revenue of $192.8 million |
| Adjusted EBITDA of $18.5 million |
| Adjusted Net Earnings of $10.4 million or $0.17 per share |
EVERETT, Wash. November 1, 2012 Intermec, Inc. (NYSE: IN) today announced preliminary financial results for its third quarter ended September 30, 2012.
Third quarter 2012 net revenues were $192.8 million and net earnings on a GAAP basis were $7.2 million, or $0.12 per diluted share, compared to 2011 third quarter revenues of $211.8 million and GAAP net earnings of $704 thousand, or $0.01 per diluted share. Excluding certain adjustments totaling $3.2 million (detailed in the table below), adjusted net earnings for the quarter were $10.4 million, or $0.17 per diluted share.
I am pleased with our progress improving the Companys overall performance during the third quarter, said Allen J. Lauer, Intermec Chairman and Interim CEO. The steps taken in the second quarter led to sequential improvement in gross margins, operating expenses and cash flow. Improved bookings in North America and Latin America contributed to a relatively significant increase in backlog. This provides an improved foundation as we maintain our focus on continuous growth in revenue and profitability.
The Company remains engaged in a review of its long-term strategic direction and leadership requirements. The Company is continuing its work with its financial advisor BofA Merrill Lynch in performing its evaluation of the Companys business and strategic alternatives. There is no specific timetable for completion of the evaluation. Concurrently, the Company is working with Spencer Stuart to conduct a nationwide search for its next Chief Executive Officer for the Company.
1
The following table presents the Companys operating profit (loss), net earnings (loss) and earnings (loss) per share reported for the third quarter and nine months ended September 30, 2012 and October 2, 2011, on a GAAP basis and as adjusted excluding the impact of restructuring costs, acquisition-related costs and other adjustments, and also presents Adjusted EBITDA for those periods:
PRELIMINARY
INTERMEC, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING PROFIT (LOSS) AND ADJUSTED EBITDA
NET EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE
(Unaudited)
(In millions, except per share amounts)
Three Months Ended September 30, 2012 | Three Months Ended October 2, 2011 | |||||||||||||||||||||||
Operating Profit (loss) |
Net earnings (loss) |
Earnings (loss) per share |
Operating Profit (loss) |
Net earnings (loss) |
Earnings (loss) per share |
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Operating profit as reported |
$ | 9.0 | $ | 7.2 | $ | 0.12 | $ | 1.0 | $ | 0.7 | $ | 0.01 | ||||||||||||
Acquisition related adjustments |
4.5 | 4.5 | 0.07 | 7.1 | 4.4 | 0.07 | ||||||||||||||||||
Restructuring costs |
(1.1 | ) | (1.1 | ) | (0.02 | ) | 0.6 | 0.6 | 0.01 | |||||||||||||||
Executive severance |
| | | | | | ||||||||||||||||||
Forfeited executive stock awards |
| | | | | | ||||||||||||||||||
Impairment of goodwill |
(0.2 | ) | (0.2 | ) | | | | | ||||||||||||||||
Deferred taxes and valuation allowance |
| | | | 0.3 | 0.01 | ||||||||||||||||||
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Non-GAAP profit as adjusted |
$ | 12.2 | $ | 10.4 | $ | 0.17 | $ | 8.7 | $ | 6.0 | $ | 0.10 | ||||||||||||
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Depreciation and other amortization |
4.7 | 5.1 | ||||||||||||||||||||||
Stock-based compensation |
1.6 | 3.2 | ||||||||||||||||||||||
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Adjusted EBITDA |
$ | 18.5 | $ | 17.0 | ||||||||||||||||||||
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Nine Months Ended September 30, 2012 | Nine Months Ended October 2, 2011 | |||||||||||||||||||||||
Operating Profit (loss) |
Net earnings (loss) |
Earnings (loss) per share |
Operating Profit (loss) |
Net earnings (loss) |
Earnings (loss) per share |
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Operating profit (loss) as reported |
$ | (58.2 | ) | $ | (272.4 | ) | $ | (4.52 | ) | (10.7 | ) | (9.2 | ) | (0.15 | ) | |||||||||
Acquisition related adjustments |
13.8 | 13.8 | 0.23 | 21.6 | 14.2 | 0.23 | ||||||||||||||||||
Restructuring costs |
4.5 | 4.5 | 0.07 | 5.7 | 5.7 | 0.10 | ||||||||||||||||||
Executive severance |
1.9 | 1.9 | 0.03 | | | | ||||||||||||||||||
Forfeited executive stock awards |
(1.2 | ) | (1.2 | ) | (0.02 | ) | | | | |||||||||||||||
Impairment of goodwill |
41.3 | 41.3 | 0.69 | | | | ||||||||||||||||||
Deferred taxes and valuation allowance |
| 212.9 | 3.53 | | 1.1 | 0.02 | ||||||||||||||||||
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Non-GAAP profit as adjusted |
$ | 2.1 | $ | 0.8 | $ | 0.01 | $ | 16.6 | $ | 11.8 | $ | 0.20 | ||||||||||||
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Depreciation and other amortization |
13.7 | 13.4 | ||||||||||||||||||||||
Stock-based compensation |
6.0 | 7.5 | ||||||||||||||||||||||
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Adjusted EBITDA |
$ | 21.8 | $ | 37.5 | ||||||||||||||||||||
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Third Quarter 2012 Operating Performance
| Total revenue for the third quarter was $192.8 million, a decrease of 4% compared to the second quarter of 2012 and down 9% compared to the same period in 2011. On a constant currency basis total revenue declined 6% compared to the prior year. |
| Due primarily to the previously announced cost reduction initiatives, SG&A and R&D expense for the quarter was $74.8 million compared to $81.8 million in the second quarter 2012 and $85.7 million in the third quarter 2011. |
| In conjunction with its financial analysis and reporting procedures, the Company is evaluating its goodwill and long-lived assets including its intangible assets for impairment for the third quarter of 2012. The final income per share reported for the quarter could be less than the preliminary results reported in this press release, or could be a loss per share, if either or both of these items require adjustment as a result of this analysis. Any such adjustments would be non-cash charges and are not expected to result in any change to our Non-GAAP results. |
| Including gains from the sale of certain assets of $2.5 million, a favorable adjustment for restructuring costs of $1.1 million and a favorable adjustment of $200 thousand related to goodwill impairment finalization from the first and second quarter of 2012 analyses, GAAP operating profit was $9.0 million compared to GAAP operating profit of $1.0 million in the same period 2011. |
2
| North America revenues decreased 3% compared to the third quarter 2011, while Latin America revenue rose 16%. Europe, Middle East and Africa (EMEA) revenues declined 22% and Asia Pacific declined 31% compared to the third quarter 2011. On a constant currency basis EMEA revenues were down 18% compared to the prior year. |
| Total gross margin was 41.5% compared to 41.5% in the same period in 2011 and 39.4% in the second quarter 2012. Excluding certain adjustments, third quarter adjusted gross margins were 43.4% compared to 43.6% for the same period in 2011 and 41.2% in the second quarter 2012. |
| Adjusted EBITDA for the quarter was $18.5 million compared to Adjusted EBITDA of $17.0 million in the same period 2011 and Adjusted EBITDA of $10.2 million in the second quarter 2012. |
| Cash, cash equivalents, and short-term investments totaled approximately $86 million at quarter-end, an increase of over $11 million from the end of the second quarter 2012. During the quarter the company also repaid $5 million on its line of credit and the outstanding balance of its credit facility is now $80 million. |
Recent Intermec and Vocollect Business Highlights
| Launched the SRX2, an innovative new wireless headset for distribution centers (DCs) and warehouses that significantly enhances the operational efficiency of workers with superior voice recognition performance. Its modular design enables shared use of headset electronics across multiple shifts, resulting in lower total cost of ownership. |
| Announced a new HTML5 browser allowing for the development of OS agnostic web applications that can run on iOS, Android and select Intermec rugged mobile computers, enhancing workflow efficiency and offering increased flexibility to mobile workforces. |
| Announced the establishment of Intermec China, a Wholly Foreign Owned Enterprise (WFOE). Intermec China was recently granted a business license from the Chinese Ministry of Commerce to directly conduct business in China. |
| Awarded and began shipping RFID tags for a large Electronic Toll Collection (ETC) contract with the State of Sao Paulo and the Department of Transportation in Brazil to greatly improve collections revenue and to enable a more secure processing environment. |
| The 70 series rugged mobile computer enjoyed a record quarter with multiple large wins in the Direct Store Delivery, Rugged Delivery and Transportation and Logistics Deployment Environments. |
| Announced the CK3 Next Generation Series the CK3X and CK3R which utilize a 1GHZ OMAP architecture to optimize workforce performance through industry-leading battery life, enhanced barcode scanning, superior device health monitoring and broad compliance for emerging industry standards such as HTML5. |
3
About Intermec, Inc.
Intermec Inc. (NYSE: IN) is the workflow performance company. We design the leading data capture and information management solutions at the interface between mobile workers, assets, and customers. For more information about Intermec, visit www.intermec.com or call 800-347-2636.
Contact:
Dan Evans
Investor Relations
425-267-2975
dan.evans@intermec.com
Non-GAAP Financial Measures
This press release includes Non-GAAP financial measures for operating profit (loss), net earnings (loss), earnings (loss) per diluted share, and gross margins and also presents Adjusted EBITDA. Reconciliations of each of these Non-GAAP financial measures to the most directly comparable GAAP financial measures are detailed in the tables set forth in or attached to this release: Reconciliation of GAAP to Non-GAAP Operating Profit (Loss) and Adjusted EBITDA Net Earnings (Loss) and Earnings (Loss) Per Share, set forth in this press release and Reconciliation of GAAP to Non-GAAP Operating Profit (Loss) and Reconciliation of GAAP to Non-GAAP Gross Margins, for the three and nine months ended September 30, 2012, attached to this press release.
Our Non-GAAP measures should be read in conjunction with the corresponding GAAP measures. The Non-GAAP measures should be considered in addition to and not as an alternative or substitute for the measures prepared in accordance with accounting principles generally accepted in the United States of America.
We believe that excluding items such as, but not limited to, allowances for deferred tax assets, goodwill or asset impairment charges, restructuring charges, costs or adjustments related to completion of acquisitions, amortization of intangibles, executive severance and non-cash stock-based compensation expenses provides supplemental information useful to investors and managements understanding of Intermecs core operating results, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods.
The Company believes that the Non-GAAP financial measures that it uses provide investors the additional information to evaluate financial performance in a way that is comparable to measures reported by other technology companies. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is net earnings/loss before provisions for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered an alternative to, or more meaningful than, earnings before income taxes, cash flow from operations, or other traditional indicators of operating performance. Rather, EBITDA is presented because it is a widely accepted supplemental financial measure that we believe provides relevant and useful information. Our calculation of Adjusted EBITDA adds back the non-cash effect of stock-based compensation as accounted for under ACS 718 as we believe this is a meaningful view of our underlying cash earnings. Adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this Non-GAAP measure in the same manner.
4
Statements made in this release and related statements that express Intermecs or our managements intentions, hopes, indications, beliefs, expectations, guidance, estimates, forecasts or predictions of the future constitute forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, and relate to matters that are not historical facts. The forward-looking statements contained herein include, without limitation, statements regarding: our view of general economic and market conditions; our revenue, expenses, earnings or financial outlook for the current period or any other period; our impairment analysis for goodwill and long-lived assets, our deferred tax valuation allowances, the applicability and results of accounting policies and analyses used in our financial reporting, the necessity to update information in our periodic or other required reports; our cost reduction plans; and our ability to develop, produce, market or sell our products, either directly or through third parties, to reduce or control expenses, to improve efficiency, to realign resources, or to continue operational improvement and year-over-year or sequential growth. They also include, without limitation, statements about future financial and operating results of our Company after the acquisition of other businesses and the benefits of such acquisitions. When used in this document and in documents it refers to, the words anticipate, believe, will, intend, project and expect and similar expressions as they relate to us or our management are intended to identify such forward-looking statements. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligation to do so, even if our beliefs and expectations change.
Actual results may differ from those expressed or implied in our forward-looking statements. Such forward-looking statements involve and are subject to certain risks and uncertainties, which may cause our actual results to differ materially from those discussed in a forward-looking statement. These risk factors include, but are not limited to, risks and uncertainties described more fully in our reports filed or to be filed with the Securities and Exchange Commission including, but not limited to, our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, which are available, among other places, on our website at www.intermec.com.
5
PRELIMINARY
INTERMEC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2012 |
October 2, 2011 |
September 30, 2012 |
October 2, 2011 |
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Revenues: |
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Product |
$ | 150,214 | $ | 165,294 | $ | 445,042 | $ | 484,781 | ||||||||
Service |
42,607 | 46,511 | 128,408 | 126,625 | ||||||||||||
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Total revenues |
192,821 | 211,805 | 573,450 | 611,406 | ||||||||||||
Costs and expenses: |
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Cost of product revenues |
90,369 | 97,587 | 281,681 | 291,825 | ||||||||||||
Cost of service revenues |
22,468 | 26,363 | 66,663 | 72,115 | ||||||||||||
Research and development |
20,266 | 22,047 | 60,706 | 62,720 | ||||||||||||
Selling, general and administrative |
54,565 | 63,610 | 181,984 | 183,906 | ||||||||||||
Gain on sale of assets |
(2,534 | ) | | (5,189 | ) | | ||||||||||
Restructuring costs |
(1,130 | ) | 644 | 4,468 | 5,756 | |||||||||||
Impairment of goodwill |
(200 | ) | | 41,314 | | |||||||||||
Acquisition costs |
| 554 | | 5,766 | ||||||||||||
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Total costs and expenses |
183,804 | 210,805 | 631,627 | 622,088 | ||||||||||||
Operating profit (loss) |
9,017 | 1,000 | (58,177 | ) | (10,682 | ) | ||||||||||
Interest income |
107 | 162 | 308 | 565 | ||||||||||||
Interest expense |
(683 | ) | (572 | ) | (2,315 | ) | (1,964 | ) | ||||||||
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Earnings (loss) before income taxes |
8,441 | 590 | (60,184 | ) | (12,081 | ) | ||||||||||
Income tax expense (benefit) |
1,238 | (114 | ) | 212,225 | (2,911 | ) | ||||||||||
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Net earnings (loss) |
$ | 7,203 | $ | 704 | $ | (272,409 | ) | $ | (9,170 | ) | ||||||
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Basic earnings (loss) per share |
$ | 0.12 | $ | 0.01 | $ | (4.52 | ) | $ | (0.15 | ) | ||||||
Diluted earnings (loss) per share |
$ | 0.12 | $ | 0.01 | $ | (4.52 | ) | $ | (0.15 | ) | ||||||
Shares used in computing basic earnings (loss) per share |
60,451 | 59,796 | 60,243 | 59,959 | ||||||||||||
Shares used in computing diluted earnings (loss) per share |
60,579 | 59,897 | 60,243 | 59,959 |
6
PRELIMINARY
INTERMEC, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, 2012 |
December 31, 2011 |
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ASSETS | ||||||||
Current assets: |
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Cash and cash equivalents |
$ | 85,757 | $ | 95,108 | ||||
Short-term investments |
186 | 170 | ||||||
Accounts receivable, net |
120,501 | 139,737 | ||||||
Inventories |
103,814 | 103,622 | ||||||
Current deferred tax assets, net |
7,419 | 84,541 | ||||||
Other current assets |
31,950 | 24,226 | ||||||
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Total current assets |
349,627 | 447,404 | ||||||
Deferred tax assets, net |
8,616 | 141,064 | ||||||
Goodwill |
102,196 | 143,510 | ||||||
Intangibles, net |
48,023 | 61,996 | ||||||
Property, plant and equipment, net |
47,025 | 47,086 | ||||||
Other assets, net |
19,974 | 28,230 | ||||||
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Total assets |
$ | 575,461 | $ | 869,290 | ||||
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LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Current liabilities: |
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Accounts payable |
$ | 78,234 | $ | 92,607 | ||||
Payroll and related expenses |
23,478 | 32,540 | ||||||
Accrued expenses |
26,947 | 35,118 | ||||||
Deferred revenue |
53,976 | 47,234 | ||||||
Finance lease obligation |
2,389 | | ||||||
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Total current liabilities |
185,024 | 207,499 | ||||||
Long-term debt |
80,000 | 85,000 | ||||||
Long-term financing lease obligation |
1,474 | | ||||||
Pension and other postretirement benefits liabilities |
123,133 | 124,058 | ||||||
Long-term deferred revenue |
33,695 | 28,960 | ||||||
Other long-term liabilities |
15,878 | 15,344 | ||||||
Commitments and contingencies |
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Shareholders equity: |
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Common stock (250,000 shares authorized, 63,430 and 62,956 shares issued and 60,239 and 59,717 outstanding) |
640 | 636 | ||||||
Additional paid-in capital |
703,221 | 697,597 | ||||||
Accumulated deficit |
(482,734 | ) | (210,327 | ) | ||||
Accumulated other comprehensive loss |
(84,870 | ) | (79,477 | ) | ||||
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Total shareholders equity |
136,257 | 408,429 | ||||||
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Total liabilities and shareholders equity |
$ | 575,461 | $ | 869,290 | ||||
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7
PRELIMINARY
INTERMEC, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended | ||||||||
September 30, 2012 |
October 2, 2011 |
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Cash and cash equivalents at beginning of the period |
$ | 95,108 | $ | 221,467 | ||||
Cash flows from operating activities: |
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Net loss |
(272,409 | ) | (9,170 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
27,172 | 21,020 | ||||||
Deferred taxes |
212,173 | (8,099 | ) | |||||
Stock-based compensation |
4,770 | 7,548 | ||||||
Impairment of goodwill |
41,314 | | ||||||
Gain on sale of assets |
(5,189 | ) | | |||||
Gain on company owned life insurance |
(2,414 | ) | | |||||
Change in pension and other postretirement plans |
(7,178 | ) | (3,045 | ) | ||||
Change in other long-term liabilities |
(2,054 | ) | 799 | |||||
Changes in operating assets and liabilities: |
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Accounts receivable |
20,577 | (11,194 | ) | |||||
Inventories |
(6,740 | ) | (10,209 | ) | ||||
Other current assets |
(7,673 | ) | 845 | |||||
Accounts payable |
(14,018 | ) | 3,140 | |||||
Payroll and related expenses |
(9,196 | ) | 3,079 | |||||
Accrued expenses |
(7,785 | ) | (5,766 | ) | ||||
Deferred revenue |
10,909 | 5,351 | ||||||
Other operating activities |
(1,159 | ) | 91 | |||||
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Net cash used in operating activities |
(18,900 | ) | (5,610 | ) | ||||
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Cash flows from investing activities: |
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Acquisitions, net of cash acquired |
| (200,810 | ) | |||||
Additions to property, plant and equipment |
(6,980 | ) | (16,075 | ) | ||||
Maturities of investments |
| 6,564 | ||||||
Proceeds from sale of assets |
6,359 | | ||||||
Proceeds from company owned life insurance |
10,238 | | ||||||
Capitalized patent legal fees |
| (560 | ) | |||||
Other investing activities |
(346 | ) | (75 | ) | ||||
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Net cash provided by (used in) investing activities |
9,271 | (210,956 | ) | |||||
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Cash flows from financing activities: |
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Proceeds from issuance of debt |
27,000 | 111,700 | ||||||
Repayment of debt |
(32,000 | ) | (34,700 | ) | ||||
Stock repurchase |
| (10,014 | ) | |||||
Financing lease obligation |
3,863 | | ||||||
Stock options exercised and other |
1,461 | 2,370 | ||||||
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Net cash provided by financing activities |
324 | 69,356 | ||||||
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Effect of exchange rate changes on cash and cash equivalents |
(46 | ) | (770 | ) | ||||
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Net change in cash and cash equivalents |
(9,351 | ) | (147,980 | ) | ||||
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Cash and cash equivalents at end of the period |
$ | 85,757 | $ | 73,487 | ||||
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8
PRELIMINARY
INTERMEC, INC.
RECONCILIATION OF GAAP TO NON-GAAP OPERATING PROFIT (LOSS)
(Unaudited)
(In thousands)
Three Months Ended September 30, 2012 | Three Months Ended October 2, 2011 | |||||||||||||||||||||||
GAAP Operating Results |
Non-GAAP Adjustments |
Non-GAAP Operating Results |
GAAP Operating Results |
Non-GAAP Adjustments |
Non-GAAP Operating Results |
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Total revenues |
$ | 192,821 | $ | | $ | 192,821 | $ | 211,805 | $ | 2,178 | $ | 213,983 | ||||||||||||
Costs and expenses: |
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Cost of revenues |
112,837 | (3,642 | ) | 109,195 | 123,950 | (3,170 | ) | 120,780 | ||||||||||||||||
Research and development |
20,266 | | 20,266 | 22,047 | (18 | ) | 22,029 | |||||||||||||||||
Selling, general and administrative |
54,565 | (847 | ) | 53,718 | 63,610 | (1,178 | ) | 62,432 | ||||||||||||||||
Gain on sale of assets |
(2,534 | ) | | (2,534 | ) | | | | ||||||||||||||||
Restructuring costs |
(1,130 | ) | 1,130 | | 644 | (644 | ) | | ||||||||||||||||
Impairment of goodwill |
(200 | ) | 200 | | | | | |||||||||||||||||
Acquisition costs |
| | | 554 | (554 | ) | | |||||||||||||||||
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Total costs and expenses |
183,804 | (3,159 | ) | 180,645 | 210,805 | (5,564 | ) | 205,241 | ||||||||||||||||
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Operating profit |
$ | 9,017 | $ | 3,159 | $ | 12,176 | $ | 1,000 | $ | 7,742 | $ | 8,742 | ||||||||||||
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Nine Months Ended September 30, 2012 | Nine Months Ended October 2, 2011 | |||||||||||||||||||||||
GAAP Operating Results |
Non-GAAP Adjustments |
Non-GAAP Operating Results |
GAAP Operating Results |
Non-GAAP Adjustments |
Non-GAAP Operating Results |
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Total revenues |
$ | 573,450 | $ | | $ | 573,450 | $ | 611,406 | $ | 5,082 | $ | 616,488 | ||||||||||||
Costs and expenses: |
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Cost of revenues |
348,344 | (10,939 | ) | 337,405 | 363,940 | (8,540 | ) | 355,400 | ||||||||||||||||
Research and development |
60,706 | | 60,706 | 62,720 | (35 | ) | 62,685 | |||||||||||||||||
Selling, general and administrative |
181,984 | (3,609 | ) | 178,375 | 183,906 | (2,159 | ) | 181,747 | ||||||||||||||||
Gain on sale of assets |
(5,189 | ) | | (5,189 | ) | | | | ||||||||||||||||
Restructuring costs |
4,468 | (4,468 | ) | | 5,756 | (5,756 | ) | | ||||||||||||||||
Impairment of goodwill |
41,314 | (41,314 | ) | | | | | |||||||||||||||||
Acquisition costs |
| | | 5,766 | (5,766 | ) | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total costs and expenses |
631,627 | (60,330 | ) | 571,297 | 622,088 | (22,256 | ) | 599,832 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating profit (loss) |
$ | (58,177 | ) | $ | 60,330 | $ | 2,153 | $ | (10,682 | ) | $ | 27,338 | $ | 16,656 | ||||||||||
|
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|
|
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|
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|
9
PRELIMINARY
INTERMEC, INC.
RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGINS
(Unaudited)
(In thousands)
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
As Reported | Non-GAAP Adjustments |
Non-GAAP as Adjusted |
As Reported | Non-GAAP Adjustments |
Non-GAAP as Adjusted |
|||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Product |
$ | 150,214 | $ | | $ | 150,214 | $ | 445,042 | $ | | $ | 445,042 | ||||||||||||
Service |
42,607 | | 42,607 | 128,408 | | 128,408 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
$ | 192,821 | $ | | $ | 192,821 | $ | 573,450 | $ | | $ | 573,450 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of revenues: |
||||||||||||||||||||||||
Product |
$ | 90,369 | $ | (3,642 | ) | $ | 86,727 | $ | 281,681 | $ | (10,939 | )a | $ | 270,742 | ||||||||||
Service |
22,468 | | 22,468 | 66,663 | | 66,663 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total cost of revenues |
$ | 112,837 | $ | (3,642 | ) | $ | 109,195 | $ | 348,344 | $ | (10,939 | ) | $ | 337,405 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross margins: |
||||||||||||||||||||||||
Product |
39.8 | % | 42.3 | % | 36.7 | % | 39.2 | % | ||||||||||||||||
Service |
47.3 | % | 47.3 | % | 48.1 | % | 48.1 | % | ||||||||||||||||
Total |
41.5 | % | 43.4 | % | 39.3 | % | 41.2 | % | ||||||||||||||||
Three Months Ended October 2, 2011 | Nine Months Ended October 2, 2011 | |||||||||||||||||||||||
As Reported | Non-GAAP Adjustments |
Non-GAAP as Adjusted |
As Reported | Non-GAAP Adjustments |
Non-GAAP as Adjusted |
|||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Product |
$ | 165,294 | $ | | $ | 165,294 | $ | 484,781 | $ | | $ | 484,781 | ||||||||||||
Service |
46,511 | 2,178 | 48,689 | 126,625 | 5,082 | 131,707 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
$ | 211,805 | $ | 2,178 | $ | 213,983 | $ | 611,406 | $ | 5,082 | $ | 616,488 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of revenues: |
||||||||||||||||||||||||
Product |
$ | 97,587 | $ | (3,170 | ) | $ | 94,417 | $ | 291,825 | $ | (8,540 | ) | $ | 283,285 | ||||||||||
Service |
26,363 | | 26,363 | 72,115 | | 72,115 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total cost of revenues |
$ | 123,950 | $ | (3,170 | ) | $ | 120,780 | $ | 363,940 | $ | (8,540 | ) | $ | 355,400 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross margins: |
||||||||||||||||||||||||
Product |
41.0 | % | 42.9 | % | 39.8 | % | 41.6 | % | ||||||||||||||||
Service |
43.3 | % | 45.9 | % | 43.0 | % | 45.2 | % | ||||||||||||||||
Total |
41.5 | % | 43.6 | % | 40.5 | % | 42.4 | % |
10
PRELIMINARY
INTERMEC, INC.
SUPPLEMENTAL SALES INFORMATION BY CATEGORY
(Unaudited)
(Amounts in millions)
Three Months Ended | ||||||||||||||||||||
September 30, 2012 | Percent of Revenues |
October 2, 2011 | Percent of Revenues |
Percent Change in Revenues |
||||||||||||||||
Revenues by category: |
||||||||||||||||||||
Intermec-branded: |
||||||||||||||||||||
Systems and solutions |
$ | 92.6 | 48.1 | % | $ | 102.1 | 48.2 | % | -9.3 | % | ||||||||||
Printer and media |
37.4 | 19.4 | % | 43.7 | 20.6 | % | -14.4 | % | ||||||||||||
Service |
33.6 | 17.4 | % | 35.2 | 16.6 | % | -4.5 | % | ||||||||||||
Voice solutions |
29.2 | 15.1 | % | 30.8 | 14.6 | % | -5.2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
$ | 192.8 | 100.0 | % | $ | 211.8 | 100.0 | % | -9.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2012 | Percent of Revenues |
October 2, 2011 | Percent of Revenues |
Percent Change in Revenues |
||||||||||||||||
Revenues by category: |
||||||||||||||||||||
Intermec-branded: |
||||||||||||||||||||
Systems and solutions |
$ | 271.4 | 47.3 | % | $ | 301.2 | 49.3 | % | -9.9 | % | ||||||||||
Printer and media |
111.6 | 19.5 | % | 131.8 | 21.6 | % | -15.3 | % | ||||||||||||
Service |
103.4 | 18.0 | % | 107.4 | 17.5 | % | -3.7 | % | ||||||||||||
Voice solutions |
87.1 | 15.2 | % | 71.0 | 11.6 | % | 22.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
$ | 573.5 | 100.0 | % | $ | 611.4 | 100.0 | % | -6.2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL SALES INFORMATION BY GEOGRAPHICAL REGION
(Unaudited)
(Amounts in millions)
Three Months Ended | ||||||||||||||||||||
September 30, 2012 | Percent of Revenues |
October 2, 2011 | Percent of Revenues |
Percent Change in Revenues |
||||||||||||||||
Revenues by geographic region: |
||||||||||||||||||||
North America |
$ | 104.0 | 53.9 | % | $ | 107.1 | 50.6 | % | -2.9 | % | ||||||||||
Europe, Middle East and Africa (EMEA) |
50.2 | 26.0 | % | 64.7 | 30.6 | % | -22.4 | % | ||||||||||||
Latin America (LATAM) |
27.3 | 14.2 | % | 23.6 | 11.1 | % | 15.7 | % | ||||||||||||
Asia Pacific (ASIAPAC) |
11.3 | 5.9 | % | 16.4 | 7.7 | % | -31.1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
$ | 192.8 | 100.0 | % | $ | 211.8 | 100.0 | % | -9.0 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2012 | Percent of Revenues |
October 2, 2011 | Percent of Revenues |
Percent Change in Revenues |
||||||||||||||||
Revenues by geographic region: |
||||||||||||||||||||
North America |
$ | 296.8 | 51.8 | % | $ | 292.6 | 47.9 | % | 1.4 | % | ||||||||||
Europe, Middle East and Africa (EMEA) |
160.7 | 28.0 | % | 200.6 | 32.8 | % | -19.9 | % | ||||||||||||
Latin America (LATAM) |
73.9 | 12.9 | % | 70.0 | 11.4 | % | 5.6 | % | ||||||||||||
Asia Pacific (ASIAPAC) |
42.1 | 7.3 | % | 48.2 | 7.9 | % | -12.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total revenues |
$ | 573.5 | 100.0 | % | $ | 611.4 | 100.0 | % | -6.2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
11