Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ZEBRA TECHNOLOGIES CORP | d149807d8k.htm |
Exhibit 99.1
Zebra Technologies Announces
2015 Fourth Quarter Financial Results
Company Provides Outlook for First Quarter and Full Year 2016
Lincolnshire, Ill., Feb. 25, 2016—Zebra Technologies Corporation (NASDAQ: ZBRA) today reported that net sales for the three months ended December 31, 2015, were $952.7 million, compared with $790.6 million for the fourth quarter of 2014. The GAAP net loss for the fourth quarter was $6.8 million, or $0.13 per share, compared with GAAP net loss of $51.7 million, or $1.02 per share, for the fourth quarter of 2014. Financial results for the 2014 fourth quarter and full year include two months of results of the Enterprise business that the company acquired on October 27, 2014.
| Summary Financial Highlights (Unaudited) | ||||||||||
| $ in millions except per share data | 4Q15 | 4Q14 | Change | |||||||
| GAAP net sales |
$ | 952.7 | $ | 790.6 | 20.5% | |||||
| GAAP net (loss) income |
$ | (6.8) | $ | (51.7) | NM | |||||
| GAAP (loss) earnings per share |
$ | (0.13) | $ | (1.02) | NM | |||||
| Non-GAAP net income |
$ | 78.5 | $ | 62.1 | 26.4% | |||||
| Non-GAAP earnings per diluted share |
$ | 1.51 | $ | 1.22 | 23.8% | |||||
| Adjusted EBITDA (Non-GAAP) |
$ | 165.2 | $ | 145.2 | 13.7% | |||||
| Adjusted EBITDA (%) |
17.3 | % | 18.2 | % | (0.9) pts. | |||||
Note: The Company’s calculation of non-GAAP results adjust for certain items on a tax-effected basis. Please refer to the tables included in this press release for reconciliations of GAAP to Non-GAAP financial results.
Non-GAAP Financial Results (unaudited)
For the fourth quarter of 2015, sales excluding the impact of purchase accounting were $956.3 million. Non-GAAP net income was $78.5 million, or $1.51 per diluted share, compared with $62.1 million, or $1.22 per diluted share, for the fourth quarter of 2014. Adjusted EBITDA for the fourth quarter of 2015 were $165.2 million, or 17.3% of sales compared to $145.2 million, or 18.2% of sales for the fourth quarter of 2014.
“Our strong fourth quarter results were driven by solid growth in key markets and a focus on driving profitability. In 2015, we extended our leadership in Enterprise Asset Intelligence and made significant progress on integrating the transformational acquisition of the Enterprise business,” said Anders Gustafsson, CEO of Zebra Technologies. “As we enter 2016, we remain committed to our strategic priorities of driving profitable growth, executing on cost synergies, de-levering the balance sheet and operating as One Zebra. Our customers continue to invest in technology to improve efficiencies, and we are well positioned as their partner of choice. With a healthy pipeline of activity, we expect to gain momentum through the remainder of the year, enabling us to meet our growth goals for 2016 and longer-term.”
Discussion and Analysis – Fourth Quarter
| • | Net sales were $952.7 million on a GAAP basis, and include a reduction of $3.6 million for a purchase accounting adjustment related to service contracts acquired with the Enterprise business, reflecting an increase of $162.1 million from the fourth quarter of 2014. Excluding the purchase accounting adjustment noted above, sales in the Enterprise business accounted for $635.8 million compared to $482.2 million in the fourth quarter of 2014. Pre-transaction Zebra sales were $320.5 million compared to $314.6 million in the fourth quarter of 2014. On a constant currency basis, and excluding the purchase accounting adjustment, fourth quarter year-over-year sales growth inclusive of estimated 2014 Enterprise sales was 4% for total Zebra and 2% for Enterprise. Pre-transaction Zebra sales were up 7% in constant currency. |
| • | Gross margin for the fourth quarter on a GAAP basis was 44.9% including the impact of purchase accounting adjustments associated with service contracts and costs of goods sold. Excluding purchase accounting adjustments, adjusted gross margin percentage for the quarter was 45.1%, compared to 46.6% gross margin in the fourth quarter of 2014, reflecting the change in mix associated with the sale of Enterprise products, which generally have a lower gross margin percentage than pre-transaction Zebra products, and the impact of foreign currency movements, net of hedges. |
| • | Operating expenses for the fourth quarter of 2015 of $405.5 million, increased by $44.2 million from the prior year’s fourth quarter, primarily as a result of the Enterprise acquisition. Operating expenses for the fourth quarter of 2015 include $53.6 million in acquisition, integration, exit and restructuring costs, versus $71.7 million in the prior year quarter, as well as $61.1 million for amortization of intangible assets, compared with $46.2 million for the fourth quarter of 2014. |
Balance Sheet and Cash Flow
| • | As of December 31, 2015, the company had cash of $192.4 million, accounts receivable of $674.3 million, inventories of $393.8 million, and long-term debt of $3.0 billion. |
| • | For the full year 2015, the company made $183 million of scheduled cash interest payments and $165 million in term loan principal payments. Subsequent to the end of 2015, the company paid an additional $80 million of term loan payments. |
| • | For the full year 2015, the company generated $102.6 million of cash flow from operations and made capital expenditures of $114.3 million. |
Outlook
Full Year 2016
The company expects full year 2016 net sales, excluding purchase accounting adjustments, to grow approximately 1% to 4% from the comparable net sales of $3,668 million for the full year 2015. This view reflects an expectation of year-over-year growth of 2% to 5% on a constant currency basis.
Adjusted EBITDA margin is expected to be in the range of 17% to 18% for the full year 2016.
The company expects to pay down at least $300 million of debt principal in 2016.
-6-
Additional full year 2016 assumptions include:
| • | Realization of approximately $50 million of incremental acquisition cost synergies compared to 2015 |
| • | Of the remaining $130-150 million of integration-related expenses and capital expenditures for 2016-2017, the vast majority are expected to be incurred in 2016 |
| • | Capital expenditures of approximately $70-75 million, including approximately $15-20 million related to acquisition integration |
| • | Depreciation and amortization expense of approximately $310-315 million |
First Quarter
The company expects first quarter 2016 net sales, excluding purchase accounting adjustments, to decline approximately (3)% to 0% from the comparable net sales of $899 million in the first quarter of 2015. This expectation reflects year-over-year growth of (1)% to +2% on a constant currency basis.
Adjusted EBITDA margin is expected to be in the range of 16% to 17% for the first quarter 2016. Non-GAAP earnings are expected to be in the range of $1.19 to $1.34 per share.
Conference Call Notification
Investors are invited to listen to a live webcast of Zebra’s conference call regarding the company’s financial results for the fourth quarter of 2015. The conference call will be held at 7:30 A.M. Central Time (8:30 A.M. Eastern Time) today. To view the webcast, visit the investor relations section of the company’s website at investors.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 outlook. 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 and 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, 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
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operations and increase the volatility of our financial results. When used in this release and documents referenced, the words “anticipate,” “believe,” “outlook,” and “expect” and similar expressions, as they 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. 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, including the company’s most recent Form 10-K.
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 enterprises need to simplify operations, know more about their businesses, and empower their mobile workforces. For more information, visit www.zebra.com.
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.
Contacts
| Investors | Media | |
| Michael Steele , CFA | Therese Van Ryne | |
| Vice President, Investor Relations | Director, Global PR and Industry Analyst Relations | |
| + 1 847 793 6707 | + 1 847 370 2317 | |
| msteele@zebra.com | therese.vanryne@zebra.com |
-8-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
| December 31, 2015 |
December 31, 2014 |
|||||||
| Assets |
(Unaudited) | |||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 192,394 | $ | 393,950 | ||||
| Investments and marketable securities |
- | 24,385 | ||||||
| Accounts receivable, net |
674,336 | 670,402 | ||||||
| Inventories, net |
393,848 | 394,176 | ||||||
| Deferred income taxes |
- | 122,772 | ||||||
| Income tax receivable |
4,108 | 12,988 | ||||||
| Prepaid expenses and other current assets |
67,755 | 53,377 | ||||||
|
|
|
|
|
|||||
| Total Current assets |
1,332,441 | 1,672,050 | ||||||
|
|
|
|
|
|||||
| Property and equipment at cost, less accumulated depreciation and amortization |
297,601 | 255,092 | ||||||
| Goodwill |
2,493,265 | 2,489,510 | ||||||
| Other intangibles, net |
757,524 | 1,029,293 | ||||||
| Long term deferred income taxes |
51,609 | - | ||||||
| Other long-term assets |
92,030 | 93,121 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 5,024,470 | $ | 5,539,066 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 289,349 | $ | 326,524 | ||||
| Accrued liabilities |
358,663 | 421,070 | ||||||
| Deferred revenue |
197,891 | 196,213 | ||||||
| Current portion of long-term debt |
24 | 4,209 | ||||||
| Deferred income taxes |
- | - | ||||||
| Income taxes payable |
30,519 | 4,518 | ||||||
|
|
|
|
|
|||||
| Total Current liabilities |
876,446 | 952,534 | ||||||
| Long-term debt |
3,012,212 | 3,156,490 | ||||||
| Long-term deferred tax liability |
1,067 | 199,853 | ||||||
| Long-term unearned revenue |
123,415 | 115,847 | ||||||
| Other long-term liabilities |
98,461 | 74,434 | ||||||
|
|
|
|
|
|||||
| Total Liabilities |
4,111,601 | 4,499,158 | ||||||
|
|
|
|
|
|||||
| Stockholders’ Equity: |
||||||||
| Preferred stock |
- | - | ||||||
| Class A Common Stock |
722 | 722 | ||||||
| Additional paid-in capital |
194,300 | 147,090 | ||||||
| Treasury stock |
(631,458) | (634,664) | ||||||
| Retained earnings |
1,397,974 | 1,535,307 | ||||||
| Accumulated other comprehensive loss |
(48,669) | (8,547) | ||||||
|
|
|
|
|
|||||
| Total Stockholders’ Equity |
912,869 | 1,039,908 | ||||||
|
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|
|
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| Total Liabilities and Stockholders’ Equity |
$ | 5,024,470 | $ | 5,539,066 | ||||
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|
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-9-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
|||||||||||||
| Net sales |
||||||||||||||||
| Net sales of tangible products |
$ | 828,183 | $ | 683,978 | $ | 3,132,881 | $ | 1,498,562 | ||||||||
| Revenue from services and software |
124,558 | 106,633 | 519,091 | 172,010 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net sales |
952,741 | 790,611 | 3,651,972 | 1,670,572 | ||||||||||||
|
|
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|
|
|
|
|
|
|||||||||
| Cost of sales |
||||||||||||||||
| Cost of sales of tangible products |
434,672 | 382,884 | 1,630,574 | 792,137 | ||||||||||||
| Cost of services and software |
90,292 | 71,315 | 377,165 | 100,410 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of sales |
524,964 | 454,199 | 2,007,739 | 892,547 | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
427,777 | 336,412 | 1,644,233 | 778,025 | ||||||||||||
|
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|
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|
|
|
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| Operating expenses: |
||||||||||||||||
| Selling and marketing |
118,926 | 105,352 | 486,369 | 213,304 | ||||||||||||
| Research and development |
98,267 | 79,311 | 394,111 | 151,103 | ||||||||||||
| General and administrative |
73,626 | 58,761 | 276,656 | 138,214 | ||||||||||||
| Amortization of intangible assets |
61,081 | 46,160 | 250,869 | 54,096 | ||||||||||||
| Acquisition and integration costs |
49,139 | 66,094 | 143,646 | 126,711 | ||||||||||||
| Exit and restructuring costs |
4,427 | 5,573 | 39,279 | 6,007 | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
405,466 | 361,251 | 1,590,930 | 689,435 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating (loss) income |
22,311 | (24,839) | 53,303 | 88,590 | ||||||||||||
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|
|
|
|
|
|
|||||||||
| Other (expense) income: |
||||||||||||||||
| Foreign exchange income (loss) |
(854) | (8,427) | (22,048) | (8,759) | ||||||||||||
| Interest (expense)/income |
(48,696) | (59,599) | (193,958) | (61,968) | ||||||||||||
| Other, net |
(12) | 146 | (920) | (1,234) | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total other (expenses) |
(49,562) | (67,880) | (216,926) | (71,961) | ||||||||||||
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|
|
|
|
|
|
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| (Loss) income from continuing operations before income taxes |
(27,251) | (92,719) | (163,623) | 16,629 | ||||||||||||
| Income tax expense (benefit) |
(20,423) | (41,040) | (26,290) | (15,800) | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (6,828) | $ | (51,679) | $ | (137,333) | $ | 32,429 | ||||||||
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|
|
|
|
|
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|
|||||||||
| Basic (loss) earnings per share |
$ | (0.13) | $ | (1.02) | $ | (2.69) | $ | 0.64 | ||||||||
| Diluted (loss) earnings per share |
$ | (0.13) | $ | (1.02) | $ | (2.69) | $ | 0.63 | ||||||||
| Basic weighted average shares outstanding |
51,207 | 50,452 | 50,996 | 50,789 | ||||||||||||
| Diluted weighted average and equivalent shares outstanding |
51,207 | 50,452 | 50,996 | 51,380 | ||||||||||||
-10-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Amounts in thousands)
(Unaudited)
| Three months ended | Twelve Months Ended | |||||||||||||||
| December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
|||||||||||||
| Net (loss) income |
$ | (6,828) | $ | (51,679) | $ | (137,333) | $ | 32,429 | ||||||||
| Unrealized (loss) gain on anticipated sales hedging transactions, net of tax |
(260) | 1,449 | (6,024) | 7,190 | ||||||||||||
| Unrealized gain (loss) on forward interest rate swaps hedging transactions, net of tax |
3,593 | (7,699) | (6,854) | (7,699) | ||||||||||||
| Unrealized holding (loss) gain on investments, net of taxes |
- | (311) | (272) | 425 | ||||||||||||
| Foreign currency translation adjustment |
(5,664) | 1,704 | (26,971) | 1,318 | ||||||||||||
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|
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|
|
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|
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|||||||||
| Comprehensive (loss) income |
$ | (9,159) | $ | (56,536) | $ | (177,454) | $ | 33,663 | ||||||||
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-11-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
| Twelve Months Ended | ||||||||
| December 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Cash flows from operating activities: |
||||||||
| Net (loss) income |
$ | (137,333) | $ | 32,429 | ||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
319,879 | 81,371 | ||||||
| Amortization of debt issuance cost and discount |
16,513 | 2,113 | ||||||
| Share-based compensation |
31,470 | 19,891 | ||||||
| Impairment of long-term investment |
- | 2,333 | ||||||
| Excess tax benefit from share-based compensation |
(11,793) | (6,127) | ||||||
| Loss on sale of property and equipment |
1,692 | 1,793 | ||||||
| Deferred income taxes |
(123,504) | (44,340) | ||||||
| (Gain) loss on forward interest rate swaps |
(3,763) | 4,649 | ||||||
| All other, net |
12,154 | - | ||||||
| Changes in assets and liabilities, net of businesses acquired: |
||||||||
| Accounts receivable, net |
(6,447) | (69,628) | ||||||
| Inventories, net |
(9,826) | (2,398) | ||||||
| Other assets |
(6,724) | (12,947) | ||||||
| Accounts payable |
(29,322) | 62,188 | ||||||
| Accrued liabilities |
(12,777) | 164,269 | ||||||
| Deferred revenue |
16,740 | 10,034 | ||||||
| Income taxes |
37,957 | (5,691) | ||||||
| Other operating activities |
7,663 | 8,386 | ||||||
|
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|
|
|
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| Net cash provided by operating activities |
102,579 | 248,325 | ||||||
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|
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| Cash flows from investing activities: |
||||||||
| Acquisition of businesses, net of cash acquired |
(51,889) | (3,398,600) | ||||||
| Purchases of property and equipment |
(114,254) | (39,291) | ||||||
| Proceeds from sale of long-term investments |
3,039 | - | ||||||
| Purchases of long-term investments |
(348) | (2,454) | ||||||
| Purchases of investments and marketable securities |
(726) | (651,698) | ||||||
| Maturities of investments and marketable securities |
- | 336,329 | ||||||
| Proceeds from sales of investments and marketable securities |
24,852 | 644,378 | ||||||
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|
|
|
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| Net cash used in investing activities |
(139,326) | (3,111,336) | ||||||
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|
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|
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| Cash flows from financing activities: |
||||||||
| Payment of debt issuance costs |
- | (24,473) | ||||||
| Payment of debt |
(165,000) | - | ||||||
| Proceeds from issuance of long-term debt |
- | 3,188,855 | ||||||
| Proceeds from exercise of stock options and stock purchase plan purchases |
17,265 | 26,477 | ||||||
| Taxes paid related to net share settlement of equity awards |
(13,228) | (4,752) | ||||||
| Excess tax benefit from share-based compensation |
11,793 | 6,127 | ||||||
|
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|
|
|
|||||
| Net cash (used in) provided by financing activities |
(149,170) | 3,192,234 | ||||||
| Effect of exchange rate changes on cash |
(15,639) | 1,900 | ||||||
|
|
|
|
|
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| Net (decrease) increase in cash and cash equivalents |
(201,556) | 331,123 | ||||||
| Cash and cash equivalents at beginning of period |
393,950 | 62,827 | ||||||
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|
|
|
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| Cash and cash equivalents at end of period |
$ | 192,394 | $ | 393,950 | ||||
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|
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| Supplemental disclosures of cash flow information: |
||||||||
| Income taxes paid, net |
37,675 | 17,443 | ||||||
| Interest paid |
182,813 | - | ||||||
-12-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL SALES INFORMATION
(Amounts in thousands)
(Unaudited)
NET SALES BY PRODUCT CATEGORY
| Three Months Ended | ||||||||||||||||||
| December 31, | December 31, | Percent | Percent of | Percent of | ||||||||||||||
| Product category |
2015 | 2014 | Change | Net Sales 2015 | Net Sales 2014 | |||||||||||||
| Hardware |
$ | 763,182 | $ | 614,529 | 24.2 | 80.1 | 77.8 | |||||||||||
| Supplies |
65,001 | 70,750 | -8.1 | 6.8 | 8.9 | |||||||||||||
| Service and software |
124,558 | 105,332 | 18.3 | 13.1 | 13.3 | |||||||||||||
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| Total net sales |
$ | 952,741 | $ | 790,611 | 20.5 | 100.0 | 100.0 | |||||||||||
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| Twelve Months Ended | ||||||||||||||||||
| December 31, | December 31, | Percent | Percent of | Percent of | ||||||||||||||
| Product category |
2015 | 2014 | Change | Net Sales 2015 | Net Sales 2014 | |||||||||||||
| Hardware |
$ | 2,864,615 | $ | 1,233,386 | 132.3 | 78.4 | 73.8 | |||||||||||
| Supplies |
268,266 | 265,176 | 1.2 | 7.4 | 15.9 | |||||||||||||
| Service and software |
519,091 | 172,010 | 201.8 | 14.2 | 10.3 | |||||||||||||
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|
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| Total net sales |
$ | 3,651,972 | $ | 1,670,572 | 118.6 | 100.0 | 100.0 | |||||||||||
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| NET SALES BY GEOGRAPHIC REGION | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| December 31, | December 31, | Percent | Percent of | Percent of | ||||||||||||||
| Geographic region |
2015 | 2014 | Change | Net Sales 2015 | Net Sales 2014 | |||||||||||||
| Europe, Middle East and Africa |
$ | 324,259 | $ | 302,991 | 7.0 | 34.0 | 38.3 | |||||||||||
| Latin America |
56,469 | 54,734 | 3.4 | 5.9 | 6.9 | |||||||||||||
| Asia-Pacific |
116,917 | 91,904 | 27.2 | 12.3 | 11.6 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Total International |
497,745 | 449,629 | 10.7 | 52.2 | 56.8 | |||||||||||||
| North America |
454,996 | 340,982 | 33.4 | 47.8 | 43.2 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Total net sales |
$ | 952,741 | $ | 790,611 | 20.5 | 100.0 | 100.0 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Twelve Months Ended | ||||||||||||||||||
| December 31, | December 31, | Percent | Percent of | Percent of | ||||||||||||||
| Geographic region |
2015 | 2014 | Change | Net Sales 2015 | Net Sales 2014 | |||||||||||||
| Europe, Middle East and Africa |
$ | 1,193,934 | $ | 583,005 | 104.8 | 32.7 | 34.9 | |||||||||||
| Latin America |
220,280 | 134,638 | 63.6 | 6.0 | 8.1 | |||||||||||||
| Asia-Pacific |
462,474 | 215,911 | 114.2 | 12.7 | 12.9 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Total International |
1,876,688 | 933,554 | 101.0 | 51.4 | 55.9 | |||||||||||||
| North America |
1,775,284 | 737,018 | 140.9 | 48.6 | 44.1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Total net sales |
$ | 3,651,972 | $ | 1,670,572 | 118.6 | 100.0 | 100.0 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
-13-
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, | December 31, | December 31, | December 31, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net (loss) income |
$ | (6,828) | $ | (51,679) | $ | (137,333) | $ | 32,429 | ||||||||
| Income tax (benefit) expense |
(20,423) | (41,040) | (26,290) | (15,800) | ||||||||||||
| Share-based compensation |
6,251 | 9,587 | 32,654 | 19,891 | ||||||||||||
| Acquisition and integration costs |
49,139 | 66,094 | 143,646 | 126,711 | ||||||||||||
| Exit and restructuring costs |
4,427 | 5,573 | 39,279 | 6,007 | ||||||||||||
| Loss on minority investment |
2,333 | |||||||||||||||
| Purchase accounting adjustments |
3,569 | 34,634 | 19,562 | 34,634 | ||||||||||||
| Foreign exchange loss (income) |
854 | 8,427 | 22,048 | 8,759 | ||||||||||||
| Amortization of intangible assets |
61,081 | 46,160 | 250,869 | 54,096 | ||||||||||||
| Amortization of debt issuance cost and discount |
3,987 | 2,113 | 16,513 | 2,113 | ||||||||||||
| Forward interest rate swaps (loss) gain |
(366) | 2,401 | (3,763) | 4,649 | ||||||||||||
| Tax effects |
(23,216) | (20,206) | (80,545) | (74,918) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total adjustments |
$ | 85,303 | $ | 113,743 | $ | 413,973 | $ | 168,475 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP net income |
$ | 78,475 | $ | 62,064 | $ | 276,640 | $ | 200,904 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP (loss) earnings per share |
||||||||||||||||
| Basic |
$ | (0.13) | $ | (1.02) | $ | (2.69) | $ | 0.64 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | (0.13) | $ | (1.02) | $ | (2.69) | $ | 0.63 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP earnings per share |
||||||||||||||||
| Basic |
$ | 1.53 | $ | 1.23 | $ | 5.42 | $ | 3.96 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 1.51 | $ | 1.22 | $ | 5.31 | $ | 3.91 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic weighted average shares outstanding |
51,207 | 50,452 | 50,996 | 50,789 | ||||||||||||
| Diluted weighted average and equivalent shares outstanding |
51,978 | 50,983 | 52,096 | 51,380 | ||||||||||||
-14-
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATION
(Amounts in thousands)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net (Loss) Income to EBITDA and Adjusted EBITDA |
||||||||||||||||
| Net (loss) income |
($6,828) | ($51,679) | ($137,333) | $32,429 | ||||||||||||
| Income tax expense (benefit) |
(20,423) | (41,040) | (26,290) | (15,800) | ||||||||||||
| Total other expense (income) |
49,562 | 67,880 | 216,926 | 71,961 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating (loss) income |
$ | 22,311 | $ | (24,839) | $ | 53,303 | $ | 88,590 | ||||||||
| Depreciation |
18,381 | 7,988 | 69,010 | 27,275 | ||||||||||||
| Amortization of intangible assets |
61,081 | 46,160 | 250,869 | 54,096 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA (Non-GAAP) |
$ | 101,773 | $ | 29,309 | $ | 373,182 | $ | 169,961 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Acquisition and integration costs |
49,139 | 66,094 | 143,646 | 126,711 | ||||||||||||
| Purchase accounting adjustments |
3,569 | 34,634 | 19,562 | 34,634 | ||||||||||||
| Exit and restructuring costs |
4,427 | 5,573 | 39,279 | 6,007 | ||||||||||||
| Share-based compensation |
6,251 | 9,587 | 32,654 | 19,891 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA (Non-GAAP) |
$ | 165,159 | $ | 145,197 | $ | 608,323 | $ | 357,204 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA % of Non-GAAP Sales |
17.3% | 18.2% | 16.6% | 21.3% | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
-15-