Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MITEL NETWORKS CORP | d712583d8k.htm |
Exhibit 99.1
AASTRA TECHNOLOGIES LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of U.S. dollars, except per share amounts)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Revenues |
$ | 132.9 | $ | 147.7 | $ | 135.0 | $ | 173.3 | $ | 588.9 | ||||||||||
| Cost of revenues |
76.6 | 84.2 | 77.7 | 94.0 | 332.5 | |||||||||||||||
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| Gross margin |
56.3 | 63.5 | 57.3 | 79.3 | 256.4 | |||||||||||||||
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| Expenses: |
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| Selling, general and administrative |
38.6 | 37.5 | 36.3 | 45.4 | 157.8 | |||||||||||||||
| Research and development |
18.2 | 17.5 | 14.8 | 15.3 | 65.8 | |||||||||||||||
| Special charges and restructuring costs |
0.9 | 4.9 | (0.5 | ) | 1.7 | 7.0 | ||||||||||||||
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| 57.7 | 59.9 | 50.6 | 62.4 | 230.6 | ||||||||||||||||
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| Operating income |
(1.4 | ) | 3.6 | 6.7 | 16.9 | 25.8 | ||||||||||||||
| Interest expense |
(0.1 | ) | (0.1 | ) | — | (0.1 | ) | (0.3 | ) | |||||||||||
| Fair value adjustment on derivative instruments |
0.4 | — | — | — | 0.4 | |||||||||||||||
| Other income (expense) |
1.1 | (0.9 | ) | (0.4 | ) | (1.6 | ) | (1.8 | ) | |||||||||||
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| Income before income taxes |
— | 2.6 | 6.3 | 15.2 | 24.1 | |||||||||||||||
| Current income tax recovery (expense) |
(0.7 | ) | (0.7 | ) | (1.6 | ) | (3.9 | ) | (6.9 | ) | ||||||||||
| Deferred income tax recovery (expense) |
0.8 | 0.4 | 0.5 | (2.3 | ) | (0.6 | ) | |||||||||||||
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| Net income |
$ | 0.1 | $ | 2.3 | $ | 5.2 | $ | 9.0 | $ | 16.6 | ||||||||||
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| Net income per common share – Basic |
$ | 0.01 | $ | 0.20 | $ | 0.44 | $ | 0.76 | $ | 1.42 | ||||||||||
| Net income per common share – Diluted |
$ | 0.01 | $ | 0.20 | $ | 0.44 | $ | 0.76 | $ | 1.41 | ||||||||||
| Weighted-average number of common shares outstanding (in millions): |
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| Basic |
11.5 | 11.6 | 11.7 | 11.8 | 11.7 | |||||||||||||||
| Diluted |
11.6 | 11.7 | 11.8 | 11.9 | 11.8 | |||||||||||||||
1
AASTRA TECHNOLOGIES LIMITED
Reconciliation of Net Income to Non-GAAP Net Income
(in millions of U.S. dollars, except per share amounts)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Net income |
$ | 0.1 | $ | 2.3 | $ | 5.2 | $ | 9.0 | $ | 16.6 | ||||||||||
| Income tax expense (recovery) |
(0.1 | ) | 0.3 | 1.1 | 6.2 | 7.5 | ||||||||||||||
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| Net income before income taxes |
— | 2.6 | 6.3 | 15.2 | 24.1 | |||||||||||||||
| Adjustments: |
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| Foreign exchange loss (gain) |
(0.8 | ) | 1.1 | 0.6 | 1.7 | 2.6 | ||||||||||||||
| Fair value adjustment on derivative instruments |
(0.4 | ) | — | — | — | (0.4 | ) | |||||||||||||
| Special charges and restructuring costs |
0.9 | 4.9 | (0.5 | ) | 1.7 | 7.0 | ||||||||||||||
| Stock-based compensation |
0.2 | 0.1 | 0.2 | 0.9 | 1.4 | |||||||||||||||
| Loss on disposition of assets |
0.2 | 0.3 | — | — | 0.5 | |||||||||||||||
| Amortization of acquisition-related intangibles assets |
2.3 | 2.2 | 2.2 | 2.3 | 9.0 | |||||||||||||||
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| Non-GAAP net income from before income taxes |
2.4 | 11.2 | 8.8 | 21.8 | 44.2 | |||||||||||||||
| Non-GAAP tax expense(1) |
(0.5 | ) | (2.2 | ) | (1.8 | ) | (4.4 | ) | (8.9 | ) | ||||||||||
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| Non-GAAP net income |
$ | 1.9 | $ | 9.0 | $ | 7.0 | $ | 17.4 | $ | 35.3 | ||||||||||
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| Non-GAAP net income per share, diluted: |
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| Non-GAAP net income per common share |
$ | 0.16 | $ | 0.77 | $ | 0.59 | $ | 1.46 | $ | 2.99 | ||||||||||
| Non-GAAP Weighted-average number of common shares outstanding (in millions): |
11.6 | 11.7 | 11.8 | 11.9 | 11.8 | |||||||||||||||
| (1) | Non-GAAP tax expense is based on an estimated effective tax rate of 20%. |
2
AASTRA TECHNOLOGIES LIMITED
Reconciliation of Net Income to Adjusted EBITDA
(in millions of U.S. dollars)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Net income |
$ | 0.1 | $ | 2.3 | $ | 5.2 | $ | 9.0 | $ | 16.6 | ||||||||||
| Adjustments: |
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| Interest expense |
0.1 | 0.1 | — | 0.1 | 0.3 | |||||||||||||||
| Income tax expense (recovery) |
(0.1 | ) | 0.3 | 1.1 | 6.2 | 7.5 | ||||||||||||||
| Amortization and depreciation |
4.5 | 4.4 | 4.4 | 4.6 | 17.9 | |||||||||||||||
| Foreign exchange loss (gain) |
(0.8 | ) | 1.1 | 0.6 | 1.7 | 2.6 | ||||||||||||||
| Fair value adjustment on derivative instruments |
(0.4 | ) | — | — | — | (0.4 | ) | |||||||||||||
| Special charges and restructuring costs |
0.9 | 4.9 | (0.5 | ) | 1.7 | 7.0 | ||||||||||||||
| Stock-based compensation |
0.2 | 0.1 | 0.2 | 0.9 | 1.4 | |||||||||||||||
| Loss on disposition of assets |
0.2 | 0.3 | — | — | 0.5 | |||||||||||||||
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| Adjusted EBITDA |
$ | 4.7 | $ | 13.5 | $ | 11.0 | $ | 24.2 | $ | 53.4 | ||||||||||
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3
AASTRA TECHNOLOGIES LIMITED
SEGMENT RESULTS
(in millions of U.S. dollars)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Revenues |
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| Premise segment – product revenues |
$ | 100.8 | $ | 111.0 | $ | 99.7 | $ | 133.1 | $ | 444.6 | ||||||||||
| Cloud segment – product revenues |
0.8 | 2.0 | 3.3 | 2.3 | 8.4 | |||||||||||||||
| Premise segment – service revenues |
29.8 | 32.8 | 29.9 | 36.0 | 128.5 | |||||||||||||||
| Cloud segment – service revenues |
0.1 | 0.4 | 0.3 | 0.2 | 1.0 | |||||||||||||||
| Cloud segment – recurring service revenues |
1.4 | 1.5 | 1.8 | 1.7 | 6.4 | |||||||||||||||
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| Total revenues |
132.9 | 147.7 | 135.0 | 173.3 | 588.9 | |||||||||||||||
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| Gross Margin |
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| Premise segment – product gross margin |
44.4 | 50.3 | 42.8 | 60.3 | 197.8 | |||||||||||||||
| Cloud segment – product gross margin |
0.3 | 0.8 | 1.3 | 0.9 | 3.3 | |||||||||||||||
| Premise segment – service gross margin |
11.0 | 11.6 | 12.3 | 17.4 | 52.3 | |||||||||||||||
| Cloud segment – service gross margin |
— | 0.2 | 0.1 | 0.1 | 0.4 | |||||||||||||||
| Cloud segment – recurring service gross margin |
0.6 | 0.6 | 0.8 | 0.6 | 2.6 | |||||||||||||||
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| Total gross margin |
$ | 56.3 | $ | 63.5 | $ | 57.3 | $ | 79.3 | $ | 256.4 | ||||||||||
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4
MITEL NETWORKS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of U.S. dollars, except per share amounts)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Revenues |
$ | 143.1 | $ | 146.6 | $ | 135.0 | $ | 144.8 | $ | 569.5 | ||||||||||
| Cost of revenues |
62.3 | 66.0 | 56.3 | 60.7 | 245.3 | |||||||||||||||
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| Gross margin |
80.8 | 80.6 | 78.7 | 84.1 | 324.2 | |||||||||||||||
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| Expenses: |
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| Selling, general and administrative |
54.5 | 56.3 | 55.7 | 57.0 | 223.5 | |||||||||||||||
| Research and development |
13.8 | 13.5 | 14.2 | 15.4 | 56.9 | |||||||||||||||
| Special charges and restructuring costs |
1.4 | 2.6 | 6.4 | 7.0 | 17.4 | |||||||||||||||
| Loss on litigation settlement |
0.1 | — | — | — | 0.1 | |||||||||||||||
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| 69.8 | 72.4 | 76.3 | 79.4 | 297.9 | ||||||||||||||||
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| Operating income from continuing operations |
11.0 | 8.2 | 2.4 | 4.7 | 26.3 | |||||||||||||||
| Interest expense |
(5.4 | ) | (6.3 | ) | (6.5 | ) | (6.3 | ) | (24.5 | ) | ||||||||||
| Debt retirement costs |
(2.6 | ) | — | — | (0.6 | ) | (3.2 | ) | ||||||||||||
| Other income (expense) |
0.1 | (0.3 | ) | — | — | (0.2 | ) | |||||||||||||
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| Income (loss) from continuing operations, before income taxes |
3.1 | 1.6 | (4.1 | ) | (2.2 | ) | (1.6 | ) | ||||||||||||
| Current income tax recovery (expense) |
0.6 | 3.3 | (2.7 | ) | 0.6 | 1.8 | ||||||||||||||
| Deferred income tax recovery (expense) |
(2.4 | ) | (2.2 | ) | 5.4 | (1.2 | ) | (0.4 | ) | |||||||||||
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| Net income (loss) from continuing operations |
1.3 | 2.7 | (1.4 | ) | (2.8 | ) | (0.2 | ) | ||||||||||||
| Net loss from discontinued operations |
(3.0 | ) | — | — | — | (3.0 | ) | |||||||||||||
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| Net income (loss) |
$ | (1.7 | ) | $ | 2.7 | $ | (1.4 | ) | $ | (2.8 | ) | $ | (3.2 | ) | ||||||
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| Net income (loss) per common share – Basic |
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| Basic From continuing operations |
$ | 0.02 | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.01 | ) | |||||||
| Diluted From discontinued operations |
$ | (0.05 | ) | $ | — | $ | — | $ | — | $ | (0.05 | ) | ||||||||
| Net income (loss) per common share – Basic |
$ | (0.03 | ) | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.06 | ) | ||||||
| Net income (loss) per common share – Diluted |
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| Basic From continuing operations |
$ | 0.02 | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.01 | ) | |||||||
| Diluted From discontinued operations |
$ | (0.05 | ) | $ | — | $ | — | $ | — | $ | (0.05 | ) | ||||||||
| Net income (loss) per common share – Diluted |
$ | (0.03 | ) | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.06 | ) | ||||||
| Weighted-average number of common shares outstanding (in millions): |
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| Basic |
53.7 | 53.7 | 53.8 | 53.9 | 53.8 | |||||||||||||||
| Diluted |
56.2 | 56.3 | 53.8 | 53.9 | 53.8 | |||||||||||||||
5
MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
(in millions of U.S. dollars, except per share amounts)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Net income (loss) from continuing operations |
$ | 1.3 | $ | 2.7 | $ | (1.4 | ) | $ | (2.8 | ) | $ | (0.2 | ) | |||||||
| Income tax expense (recovery) |
1.8 | (1.1 | ) | (2.7 | ) | 0.6 | (1.4 | ) | ||||||||||||
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| Net income (loss) from continuing operations, before income taxes |
3.1 | 1.6 | (4.1 | ) | (2.2 | ) | (1.6 | ) | ||||||||||||
| Adjustments: |
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| Foreign exchange loss (gain) |
0.5 | 0.5 | (0.5 | ) | 0.1 | 0.6 | ||||||||||||||
| Special charges and restructuring costs |
1.4 | 2.6 | 6.4 | 7.0 | 17.4 | |||||||||||||||
| Stock-based compensation |
1.1 | 1.0 | 1.2 | 1.3 | 4.6 | |||||||||||||||
| Loss on litigation settlement |
0.1 | — | — | — | 0.1 | |||||||||||||||
| Amortization of acquisition-related intangibles assets |
5.6 | 5.6 | 6.5 | 6.5 | 24.2 | |||||||||||||||
| Debt retirement costs |
2.6 | — | — | 0.6 | 3.2 | |||||||||||||||
| Other |
— | 0.4 | — | — | 0.4 | |||||||||||||||
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| Non-GAAP net income from continuing operations, before income taxes |
14.4 | 11.7 | 9.5 | 13.3 | 48.9 | |||||||||||||||
| Non-GAAP tax expense(1) |
(2.2 | ) | (1.8 | ) | (1.4 | ) | (2.0 | ) | (7.4 | ) | ||||||||||
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| Non-GAAP net income from continuing operations |
12.2 | 9.9 | 8.1 | 11.3 | 41.5 | |||||||||||||||
| Non-GAAP net loss from discontinued operations |
(0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
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| Non-GAAP net income |
$ | 12.1 | $ | 9.9 | $ | 8.1 | $ | 11.3 | $ | 41.4 | ||||||||||
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| Non-GAAP net income per share, diluted: |
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| Non-GAAP net income per common share from continuing operations |
$ | 0.22 | $ | 0.18 | $ | 0.14 | $ | 0.19 | $ | 0.73 | ||||||||||
| Non-GAAP net loss per common share from discontinued operations |
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Non-GAAP net income per common share |
$ | 0.22 | $ | 0.18 | $ | 0.14 | $ | 0.19 | $ | 0.73 | ||||||||||
| Non-GAAP Weighted-average number of common shares outstanding (in millions): |
56.2 | 56.3 | 56.6 | 58.1 | 56.8 | |||||||||||||||
| (1) | Non-GAAP tax expense is based on an estimated effective tax rate of 15%. |
6
MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in millions of U.S. dollars)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Net income (loss) |
$ | (1.7 | ) | $ | 2.7 | $ | (1.4 | ) | $ | (2.8 | ) | $ | (3.2 | ) | ||||||
| Net loss from discontinued operations |
3.0 | — | — | — | 3.0 | |||||||||||||||
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| Net income (loss) from continuing operations |
1.3 | 2.7 | (1.4 | ) | (2.8 | ) | (0.2 | ) | ||||||||||||
| Adjustments: |
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| Interest expense |
5.4 | 6.3 | 6.5 | 6.3 | 24.5 | |||||||||||||||
| Income tax expense (recovery) |
1.8 | (1.1 | ) | (2.7 | ) | 0.6 | (1.4 | ) | ||||||||||||
| Amortization and depreciation |
8.9 | 9.0 | 9.7 | 10.1 | 37.7 | |||||||||||||||
| Foreign exchange loss (gain) |
0.5 | 0.5 | (0.5 | ) | 0.1 | 0.6 | ||||||||||||||
| Special charges and restructuring costs |
1.4 | 2.6 | 6.4 | 7.0 | 17.4 | |||||||||||||||
| Stock-based compensation |
1.1 | 1.0 | 1.2 | 1.3 | 4.6 | |||||||||||||||
| Loss on litigation settlement |
0.1 | — | — | — | 0.1 | |||||||||||||||
| Debt retirement costs |
2.6 | — | — | 0.6 | 3.2 | |||||||||||||||
| Other |
— | 0.4 | — | — | 0.4 | |||||||||||||||
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| Adjusted EBITDA from continuing operations |
23.1 | 21.4 | 19.2 | 23.2 | 86.9 | |||||||||||||||
| Adjusted EBITDA from discontinued operations(1) |
(0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
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| Adjusted EBITDA |
$ | 23.0 | $ | 21.4 | $ | 19.2 | $ | 23.2 | $ | 86.8 | ||||||||||
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| (1) | The reconciliation of net loss from discontinued operations to Adjusted EBITDA from discontinued operations for the quarter ended March 31, 2013 consists of special charges and restructuring costs of $1.6, non-cash impairment of goodwill of $1.9 and an income tax recovery of $0.6. |
7
MITEL NETWORKS CORPORATION
SEGMENT RESULTS
(in millions of U.S. dollars)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
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| Revenues |
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| Premise segment – product revenues |
$ | 87.1 | $ | 90.0 | $ | 80.4 | $ | 86.3 | $ | 343.8 | ||||||||||
| Cloud segment – product revenues |
1.2 | 3.1 | 4.6 | 5.1 | 14.0 | |||||||||||||||
| Premise segment – service revenues |
42.7 | 40.0 | 35.9 | 37.2 | 155.8 | |||||||||||||||
| Cloud segment – recurring service revenues |
12.1 | 13.5 | 14.1 | 16.2 | 55.9 | |||||||||||||||
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| Total revenues |
143.1 | 146.6 | 135.0 | 144.8 | 569.5 | |||||||||||||||
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| Gross Margin |
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| Premise segment – product gross margin |
58.0 | 58.5 | 55.7 | 58.7 | 230.9 | |||||||||||||||
| Cloud segment – product gross margin |
0.8 | 1.8 | 2.5 | 2.5 | 7.6 | |||||||||||||||
| Premise segment – service gross margin |
16.4 | 14.2 | 13.8 | 15.0 | 59.4 | |||||||||||||||
| Cloud segment – recurring service gross margin |
5.6 | 6.1 | 6.7 | 7.9 | 26.3 | |||||||||||||||
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| Total gross margin |
$ | 80.8 | $ | 80.6 | $ | 78.7 | $ | 84.1 | $ | 324.2 | ||||||||||
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8