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Exhibit 99.1

 

LOGO

Zebra Technologies Announces

2014 Fourth Quarter and Full-Year Financial Results

Robust business activity leads to strong sales at Zebra and Enterprise;

Company provides favorable outlook for the first quarter of 2015

Lincolnshire, Ill., March 17, 2015—Zebra Technologies Corporation (NASDAQ: ZBRA) today reported financial results for the 2014 fourth quarter and full year, which include two months of results of the Enterprise business that the company acquired from Motorola Solutions on October 27, 2014. Net sales were a record $790,611,000 for the fourth quarter of 2014, compared with $284,539,000 for the fourth quarter of 2013. The quarterly loss per share of $1.02 for 2014 includes $66,094,000 of acquisition and integration costs. Diluted earnings per share for the fourth quarter of 2013 were $0.82.

Summary Financial Performance (Unaudited)

 

     4Q14     4Q13      Change  

GAAP net sales (in 000s)

   $ 790,611      $ 284,539         177.9

Gross margin (%)

     42.6        49.6         (7.0 ) pts. 

GAAP net income (loss) (in 000s)

   $ (51,679   $ 41,650         NM   

GAAP diluted earnings (loss) per share

   $ (1.02   $ 0.82         NM   

Non-GAAP net income (in 000s)

   $ 58,192      $ 48,831         19.2

Non-GAAP diluted earnings per share

   $ 1.15      $ 0.96         19.7

Adjusted EBITDA

   $ 145,197      $ 67,311         115.7

 

(1) A Reconciliation of Non-GAAP financial information to GAAP information is available in the financial tables in this release.

“Robust sales across products, geographies, customers and industries highlighted the strong finish to a transformative year for Zebra,” stated Anders Gustafsson, Zebra’s chief executive officer. “We have made significant progress on multiple fronts to drive performance and capture business synergies since acquiring the Enterprise business in October 2014. Customers and partners are responding well to the new Zebra, which has already yielded some early wins with our robust, industry-leading products and solutions. We have entered 2015 with favorable business momentum, and the outlook for Zebra is very bright. We are well positioned to benefit from important technology trends including the Internet of Things, cloud computing and mobility, as organizations invest in visibility solutions to gain real-time insights into their assets, transactions and people to achieve improved work flow and deliver better customer service.”

Non-GAAP Financial Results (unaudited)

Adjusted EBITDA for the fourth quarter of 2014 was $145,197,000, versus $67,311,000 for the 2013 fourth quarter. Quarterly EBITDA totaled $29,309,000, compared with $57,877,000 for the fourth quarter of 2013. For the fourth quarter of 2014, non-GAAP net income was $58,192,000, or $1.15 per diluted share, compared with $48,831,000, or $0.96 per diluted share, for the fourth quarter of 2013.

 

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Discussion and Analysis – Fourth Quarter

 

    Net sales increased 177.9% from the comparable quarter a year ago. The Enterprise business acquired from Motorola Solutions contributed $476,036,000 to 2014 fourth quarter sales, including a purchase accounting reduction of $6,181,000 for deferred revenue on service contracts. Sales of pre-transaction Zebra totaled $314,575,000, up 10.6% from $284,539,000 for the fourth quarter of 2013. The effect of movements in foreign currency, net of hedges, was not material.

 

    Gross margin of 42.6%, versus 49.6% in 2013, reflects the mix of products sold during the quarter, including Enterprise products which generally have lower gross margins than Zebra products. Cost of sales for the fourth quarter of 2014 includes additional costs of $28,483,000 for the sale of inventory related to the Enterprise acquisition, which was recorded at fair value. The combination of the purchase accounting adjustments to sales and cost of sales reduced gross margin by 4.0 percentage points. The effect of movements in foreign currency, net of hedges, was not material.

 

    Operating expenses for the fourth quarter of 2014 were $361,251,000, an increase of $269,302,000 from the prior year’s fourth quarter, primarily as a result of the Enterprise acquisition. Operating expenses for the fourth quarter of 2014 include $66,094,000 in acquisition and integration costs, versus $3,322,000 in the prior year, and $46,160,000 in amortization of intangible assets, compared with $1,826,000 for the fourth quarter of 2013.

 

    The company incurred a foreign exchange loss of $8,427,000 related to changes in valuation of balance sheet items. In addition, a forward swap loss of $2,401,000 reflects a change in interest rates.

 

    Interest expense of $56,715,000 reflects the increase in debt related to funding the acquisition of the Enterprise business from Motorola Solutions, in addition to $18,750,000 for an unused bridge loan commitment.

 

    An income tax benefit of $41,040,000, compared with income taxes of $8,681,000, reflects a loss on North American operations primarily as a result of transaction and integration costs and debt financing related to the Enterprise acquisition, which is partially offset by income generated in non-U.S. jurisdictions.

As of December 31, 2014, Zebra had cash and investments of $418,335,000, accounts receivable of $670,402,000, inventories of $394,176,000, and long-term debt of $3,182,962,000.

First Quarter Outlook

Zebra announced its financial forecast for the first quarter of 2015. The company expects net sales within a range of $870,000,000 to $890,000,000. This forecast incorporates an expectation of year-over-year growth of 6.0% to 8.0% in constant currency, on a proforma basis. Non-GAAP diluted earnings are expected in the range of $0.95 and $1.20 per share. Adjusted EBITDA are forecast within a range of $125,000,000 and $140,000,000 for the first quarter of 2015.

Conference Call Notification

Investors are invited to listen to a live webcast of Zebra’s conference call discussing the company’s financial results for the fourth quarter of 2014. The conference call will be held at 7:30 a.m. Eastern Time today. To listen to the call, visit the company’s website at http://www.zebra.com.

Forward-looking Statement

This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s financial forecast for the first quarter of 2015 stated in the paragraph above captioned “First Quarter Outlook.” Similarly, statements herein that describe the transaction between Zebra and Motorola Solutions including, its financial impact, and other statements of management’s beliefs, intentions, or goals are also forward-looking statements. When used in this release and documents referenced, the words “anticipate,” “believe,” “estimate,” and “expect” and similar expressions, as they

 

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relate to the company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.

These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra’s hardware and software products and competitors’ product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit, capital markets volatility, may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results because of the large percentage of our international sales. The outcome of litigation in which Zebra may be involved is another factor. The success of integrating acquisitions, including the Enterprise business of Motorola Solutions, could also affect profitability, reported results and the company’s competitive position in it industry. These and other factors could have an adverse effect on Zebra’s sales, gross profit margins and results of operations and increase the volatility of our financial results. Descriptions of the risks, uncertainties and other factors that could affect the company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra’s Form 10-K for the year ended December 31, 2014.

About Zebra Technologies

Zebra (NASDAQ: ZBRA) makes businesses as smart and connected as the world we live in. Zebra tracking and visibility solutions transform the physical to digital, creating the data streams businesses need in order to simplify operations, know more about their business, and empower their mobile workforce. For more information, visit www.zebra.com/possibilities.

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP financial measures, consisting of “EBITDA,” “Adjusted EBITDA,” “Non-GAAP net income” and “Non-GAAP earnings per share” in addition to measure our operating performance. Management presents these measures to focus on the on-going operations and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The Company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Reconciliations of Operating Income to EBITDA, EBITDA to Adjusted EBITDA, and GAAP net income to Non-GAAP net income are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.

 

Contact:
Investors: Media:
Douglas A. Fox, CFA Robb Kristopher

Vice President, Investor Relations

and Treasurer

Director, Corporate Communications

and Public Relations

+ 1 847 793 6735 + 1 847 793 5514
dfox@zebra.com rkristopher@zebra.com

 

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

 

     December 31,
2014
    December 31,
2013
 
     (Unaudited)        
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 393,950      $ 62,827   

Investments and marketable securities

     24,385        350,380   

Accounts receivable, net

     670,402        176,917   

Inventories, net

     394,176        121,023   

Deferred income taxes

     122,772        19,810   

Income tax receivable

     12,988        7,622   

Prepaid expenses and other current assets

     53,377        15,524   
  

 

 

   

 

 

 

Total current assets

  1,672,050      754,103   
  

 

 

   

 

 

 

Property and equipment at cost, less accumulated depreciation and amortization

  255,092      109,588   

Goodwill

  2,489,510      155,800   

Other intangibles, net

  1,029,293      68,968   

Debt issuance cost

  23,989      —     

Other assets

  98,917      31,353   
  

 

 

   

 

 

 

Total assets

$ 5,568,851    $ 1,119,812   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 326,524    $ 34,688   

Accrued liabilities

  421,070      61,962   

Deferred revenue

  196,213      15,506   

Current portion of long-term debt

  7,522      —     

Income taxes payable

  4,518      6,898   
  

 

 

   

 

 

 

Total current liabilities

  955,847      119,054   

Long-term debt

  3,182,962      —     

Long-term deferred tax liability

  199,853      25,492   

Long-term deferred revenue

  115,847      10,651   

Other long-term liabilities

  74,434      5,957   
  

 

 

   

 

 

 

Total liabilities

  4,528,943      161,154   
  

 

 

   

 

 

 

Stockholders’ equity:

Class A Common Stock

  722      722   

Additional paid-in capital

  147,090      143,295   

Treasury stock

  (634,664   (678,456

Retained earnings

  1,535,307      1,502,878   

Accumulated other comprehensive loss

  (8,547   (9,781
  

 

 

   

 

 

 

Total stockholders’ equity

  1,039,908      958,658   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 5,568,851    $ 1,119,812   
  

 

 

   

 

 

 

 

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Amounts in thousands, except per share data)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2014
    December 31,
2013
    December 31,
2014
    December 31,
2013
 

Net sales

        

Net sales of tangible products

   $ 683,978      $ 269,583      $ 1,498,562      $ 984,532   

Revenue from services and software

     106,633        14,956        172,010        53,627   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net sales

  790,611      284,539      1,670,572      1,038,159   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of sales

Cost of sales of tangible products

  382,884      136,547      792,137      507,513   

Cost of services and software

  71,315      6,964      100,410      27,036   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of sales

  454,199      143,511      892,547      534,549   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  336,412      141,028      778,025      503,610   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

Selling and marketing

  105,352      36,280      213,304      138,020   

Research and development

  79,311      23,712      151,103      91,147   

General and administrative

  58,761      24,434      138,214      96,216   

Amortization of intangible assets

  46,160      1,826      54,096      7,383   

Acquisition and integration costs

  66,094      3,322      126,711      4,690   

Exit and restructuring costs

  5,573      2,375      6,007      5,890   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

  361,251      91,949      689,435      343,346   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

  (24,839   49,079      88,590      160,264   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

Investment income gain (loss)

  934      666      (714   2,366   

Foreign exchange loss

  (8,427   209      (8,759   (524

Forward swaps loss

  (2,401   —        (4,649   —     

Interest expense

  (56,715   (30   (56,836   (98

Other, net

  (1,271   282      (1,003   1,819   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income

  (67,880   1,127      (71,961   3,563   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

  (92,719   50,206      16,629      163,827   

Income taxes (benefit)

  (41,040   8,681      (15,800   29,602   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

  (51,679   41,525      32,429      134,225   

Income from discontinued operations, net of tax

  —        125      —        133   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

$ (51,679 $ 41,650    $ 32,429    $ 134,358   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

Income (loss) from continuing operations

Income from discontinued operations

$ (1.02 $ 0.83    $ 0.64    $ 2.65   

Net (loss) income

  —        —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

 
$ (1.02 $ 0.83    $ 0.64    $ 2.65   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

Income (loss) from continuing operations

$ (1.02 $ 0.82    $ 0.63    $ 2.63   

Income from discontinued operations

  —        —        —        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

$ (1.02 $ 0.82    $ 0.63    $ 2.63   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average shares outstanding

  50,452      50,289      50,789      50,693   

Diluted weighted average and equivalent shares outstanding

  50,452      50,666      51,380      51,063   

 

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)

 

     Three months ended     Twelve months ended  
     December 31,
2014
    December 31,
2013
    December 31,
2014
    December 31,
2013
 

Net (loss) income

   $ (51,679   $ 41,650      $ 32,429      $ 134,358   

Unrealized gains (losses) on anticipated sales hedging transactions, net of tax

     1,449        (228     7,190        118   

Unrealized gains (losses) on forward interest rate swaps hedging transactions, net of tax

     (7,699     —          (7,699     —     

Unrealized holding gains (losses) on investments:

     (311     50        425        (456

Foreign currency translation adjustment

     1,704        382        1,318        882   
  

 

 

   

 

 

   

 

 

   

 

 

 
$ (56,536 $ 41,854    $ 33,663    $ 134,902   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

     Twelve Months Ended  
     December 31,
2014
    December 31,
2013
 

Cash flows from operating activities:

    

Net income (loss)

   $ 32,429      $ 134,358   

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     81,371        32,110   

Amortization of debt issuance cost and discount

     2,113        —     

Equity-based compensation

     19,891        13,109   

Impairment of long term investment

     2,333        —     

Excess tax benefit from share-based compensation

     (6,127     (4,277

Loss on sale of property and equipment

     1,793        224   

Gain on sale of business

     —          (201

Deferred income taxes

     (44,340     7,929   

Loss on forward interest rate swaps

     4,649        —     

Changes in assets and liabilities, net of businesses acquired:

    

Accounts receivable, net

     (69,628     (6,488

Inventories, net

     (2,398     2,743   

Other assets

     (20,947     (342

Accounts payable

     62,188        7,544   

Accrued liabilities

     164,269        6,220   

Deferred revenue

     10,034        2,133   

Income taxes

     (5,691     (242

Other operating activities

     8,386        (54
  

 

 

   

 

 

 

Net cash provided by operating activities

  240,325      194,766   
  

 

 

   

 

 

 

Cash flows from investing activities:

Acquisition of businesses, net of cash acquired

  (3,398,600   (95,328

Purchases of property and equipment

  (31,291   (20,211

Acquisition of intangible assets

  —        (1,500

Purchases of long-term investments

  (2,454   (12,021

Purchases of investments and marketable securities

  (651,698   (410,283

Maturities of investments and marketable securities

  336,329      49,453   

Proceeds from sales of investments and marketable securities

  644,378      336,741   
  

 

 

   

 

 

 

Net cash used in investing activities

  (3,103,336   (153,149
  

 

 

   

 

 

 

Cash flows from financing activities:

Payment of debt issuance costs

  (24,473   —     

Proceeds from issuance of long-term debt

  3,188,855      —     

Purchase of treasury stock

  —        (63,102

Proceeds from exercise of stock options and stock purchase plan purchases

  21,725      14,652   

Excess tax benefit from equity-based compensation

  6,127      4,277   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

  3,192,234      (44,173
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

  1,900      643   
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

  331,123      (1,913

Cash and cash equivalents at beginning of period

  62,827      64,740   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

$ 393,950    $ 62,827   
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information:

Income taxes paid

$ 17,433    $ 18,418   

 

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL SALES INFORMATION

(Amounts in thousands)

(Unaudited)

SALES BY PRODUCT CATEGORY

 

     Three Months Ended                       
     December 31,
2014
     December 31,
2013
     Percent
Change
     Percent of
Net Sales 2014
     Percent of
Net Sales 2013
 
Product category               

Hardware

   $ 614,529       $ 204,256         200.9         77.8         71.7   

Supplies

     70,750         65,327         8.3         8.9         23.0   

Service and software

     105,332         14,956         604.3         13.3         5.3   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total net sales

$ 790,611    $ 284,539      177.9      100.0      100.0   
  

 

 

    

 

 

       

 

 

    

 

 

 
     Twelve Months Ended                       
     December 31,
2014
     December 31,
2013
     Percent
Change
     Percent of
Net Sales 2014
     Percent of Net
Sales 2013
 
Product category               

Hardware

   $ 1,233,386       $ 740,567         66.5         73.8         71.3   

Supplies

     265,176         243,965         8.7         15.9         23.5   

Service and software

     172,010         53,627         220.8         10.3         5.2   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total net sales

$ 1,670,572    $ 1,038,159      60.9      100.0      100.0   
  

 

 

    

 

 

       

 

 

    

 

 

 

SALES BY GEOGRAPHIC REGION

 

     Three Months Ended                       
     December 31,
2014
     December 31,
2013
     Percent
Change
     Percent of
Net Sales 2014
     Percent of
Net Sales 2013
 
Geographic region               

Europe, Middle East and Africa

   $ 302,991       $ 88,660         241.7         38.3         31.2   

Latin America

     54,734         25,335         116.0         6.9         8.9   

Asia-Pacific

     91,904         40,936         124.5         11.6         14.4   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total International

  449,629      154,931      190.2      56.8      54.5   

North America

  340,982      129,608      163.1      43.2      45.5   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total net sales

$ 790,611    $ 284,539      177.9      100.0      100.0   
  

 

 

    

 

 

       

 

 

    

 

 

 
     Twelve Months Ended                       
     December 31,
2014
     December 31,
2013
     Percent
Change
     Percent of
Net Sales 2014
     Percent of Net
Sales 2013
 
Geographic region               

Europe, Middle East and Africa

   $ 583,005       $ 326,470         78.6         34.9         31.4   

Latin America

     134,638         99,041         35.9         8.1         9.5   

Asia-Pacific

     215,911         152,740         41.4         12.9         14.7   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total International

  933,554      578,251      61.4      55.9      55.6   

North America

  737,018      459,908      60.3      44.1      44.4   
  

 

 

    

 

 

       

 

 

    

 

 

 

Total net sales

$ 1,670,572    $ 1,038,159      60.9      100.0      100.0   
  

 

 

    

 

 

       

 

 

    

 

 

 

 

8


ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(Amounts in thousands, except per-share data)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2014
    December 31,
2013
    December 31,
2014
    December 31,
2013
 

Income (loss) from continuing operations (GAAP)

   $ (51,679   $ 41,525      $ 32,429      $ 134,225   

Income tax (benefit)

   $ (41,040     8,681        (15,800     29,602   

Stock-based compensation expense

     9,587        3,737        19,891        13,109   

Acquisition and integration costs

     66,094        3,322        126,711        4,690   

Exit and restructuring costs

     5,573        2,375        6,007        5,890   

Loss on minority investment

     —          —          2,333        —     

Purchase accounting adjustments

     34,634        —          34,634        —     

Amortization of intangible assets

     46,160        1,826        54,096        7,383   

Interest rate swaps (gain) loss

     2,401        —          4,649        —     

Tax effect on pretax adjustments

     (13,538     (12,635     (68,207     (40,510
  

 

 

   

 

 

   

 

 

   

 

 

 

Total adjustments

$ 109,871    $ 7,306    $ 164,314    $ 20,164   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations (Non-GAAP)

$ 58,192    $ 48,831    $ 196,743    $ 154,389   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP income from continuing operations per share

Basic

$ (1.02 $ 0.82    $ 0.64    $ 2.65   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

$ (1.02 $ 0.82    $ 0.63    $ 2.63   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income from continuing operations per share

Basic

$ 1.15    $ 0.97    $ 3.87    $ 3.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

$ 1.15    $ 0.96    $ 3.83    $ 3.02   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average shares outstanding

  50,452      50,289      50,789      50,693   

Diluted weighted average and equivalent shares outstanding

  50,452      50,666      51,380      51,063   

 

9


ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

GAAP to NON-GAAP RECONCILIATION

(Amounts in thousands, except per-share data)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,
2014
    December 31,
2013
    December 31,
2014
    December 31,
2013
 

Income from continuing operations to EBITDA and Adjusted EBITDA

        

Income (loss) from continuing operations (GAAP)

   $ (51,679   $ 41,525      $ 32,429      $ 134,225   

Income tax (benefit)

     (41,040     8,681        (15,800     29,602   

Total other expense (income)

     67,880        (1,127     71,961        (3,563
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

$ (24,839 $ 49,079    $ 88,590    $ 160,264   

Depreciation

  7,988      6,972      27,275      24,727   

Amortization of intangible assets

  46,160      1,826      54,096      7,383   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA (Non-GAAP)

$ 29,309    $ 57,877    $ 169,961    $ 192,374   
  

 

 

   

 

 

   

 

 

   

 

 

 

Acquisition and integration costs

  66,094      3,322      126,711      4,690   

Purchase price accounting adjustments

  34,634      —        34,634      —     

Exit and restructuring costs

  5,573      2,375      6,007      5,890   

Stock-based compensation expense

  9,587      3,737      19,891      13,109   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (Non-GAAP)

$ 145,197    $ 67,311    $ 357,204    $ 216,063   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10