Zebra Technologies Announces 2015 Second Quarter Financial Results
LINCOLNSHIRE, Ill., Aug. 11, 2015 /PRNewswire/ -- Zebra Technologies Corporation (NASDAQ: ZBRA) today reported that net sales for the three months ended July 4, 2015, were $889.8 million, compared with $288.4 million for the second quarter of 2014. The GAAP net loss for the second quarter was $76.3 million, or $1.50 per share, compared with GAAP net income of $27.6 million, or $0.54 per diluted share, for the second quarter of 2014.
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Summary Financial Performance (Unaudited) | |||
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$ in millions except per share data |
2Q15 |
2Q14 |
Change |
|
GAAP net sales |
$ 889.8 |
$ 288.4 |
208.5% |
|
Gross margin (%) |
44.2 |
49.3 |
(5.1) pts. |
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GAAP net (loss) income |
$ (76.3) |
$ 27.6 |
NM |
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GAAP (loss) earnings per share |
$ (1.50) |
$ 0.54 |
NM |
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Non-GAAP net income |
$ 53.3 |
$ 47.0 |
13.5% |
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Non-GAAP earnings per share |
$ 1.05 |
$ 0.92 |
14.1% |
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Adjusted EBITDA |
$ 131.5 |
$ 67.0 |
96.5% |
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Note: Reconciliations of GAAP to Non-GAAP financial results are available in the financial tables in this release. | |
Non-GAAP Financial Results (unaudited)
For the second quarter of 2015, non-GAAP net income was $53.3 million, or $1.05 per share, compared with $47.0 million, or $0.92 per diluted share, for the second quarter of 2014. Adjusted EBITDA for the second quarter of 2015 were $131.5 million, versus $67.0 million for the second quarter of 2014. The company's calculation of non-GAAP results adjusts for certain items on a tax-effected basis, including stock-based compensation expense, acquisition and integration costs, exit and restructuring costs, purchase accounting adjustments, amortization of intangible assets, and foreign exchange gains or losses. Please refer to the tables included in this press release for reconciliations of GAAP to non-GAAP financial results.
"As we continue to execute our strategy as One Zebra, demand globally in mobile computing, scanning, and printing, bolstered top-line sales growth for the quarter," stated Anders Gustafsson, Zebra's chief executive officer. "With an industry-leading portfolio and close collaboration with channel partners and end users, we continue to differentiate ourselves with innovative solutions that help customers gain greater visibility into their operations and achieve higher levels of growth, efficiency and service."
Discussion and Analysis – Second Quarter
- Net sales of $889.8 million, including a reduction of $4.4 million for a purchase accounting adjustment related to service contracts acquired with the Enterprise business, increased 208.5% from the comparable quarter a year ago. The Enterprise business acquired from Motorola Solutions accounted for $573.4 million of sales in the quarter, excluding the purchase accounting adjustment noted above. Sales of legacy Zebra were $320.8 million, up 11.2% from $288.4 million in the second quarter of 2014. The effect of movements in foreign currency, net of hedges, reduced legacy Zebra sales by $9.7 million.
- Gross margin for the second quarter of 2015 of 44.2% includes an increase to costs of sales associated with purchase accounting adjustments, costs associated with the rebranding of Motorola product, as well as other costs not expected to recur. The purchase accounting adjustments and other cost factors negatively impacted gross margin percentage by approximately 1.1 percentage points. Compared to the 49.3% gross margin in the second quarter of 2014, gross margin percentage also reflects a change in mix associated with the sale of Enterprise products which generally have a lower gross margin than pre-transaction Zebra products and the impact of foreign currency movements, net of hedges.
- Operating expenses for the second quarter of 2015 of $406.7 million, increased by $297.6 million from the prior year's second quarter, primarily as a result of the Enterprise acquisition. Operating expenses for the second quarter of 2015 include $49.1 million in acquisition, integration, exit and restructuring costs, versus $20.7 million for the prior year, as well as $63.7 million in amortization of intangible assets, compared with $2.7 million for the second quarter of 2014.
- The company incurred a foreign exchange gain of $11.3 million related to changes in the valuation of net monetary assets. In addition, a net forward interest rate swaps loss of $1.7 million reflects a change in interest rates. Investment income was $1.6 million.
- Interest expense of $49.3 million is related to debt funding for the acquisition of the Enterprise business from Motorola Solutions, and includes $5.1 million in amortization of debt issuance cost and discount.
- Debt repayments in the quarter were $80 million, bringing total year-to-date repayments to $130 million.
- As of July 4, 2015, the company had cash of $204.9 million, accounts receivable of $631.1 million, inventories of $404.5 million, and long-term debt of $3.0 billion.
Third Quarter Outlook
The company expects net sales in the third quarter of 2015 to be within a range of $900 million to $930 million. This forecast reflects an expectation of year-over-year growth of 4% to 7% in constant currency, on an estimated historical basis. Non-GAAP diluted earnings are expected in the range of $1.10 and $1.35 per share. Adjusted EBITDA are forecast within a range of $135 million and $150 million.
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 second quarter of 2015. The conference call will be held at 8.30 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 third quarter of 2015 stated in the paragraph above captioned "Third 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," "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. 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.
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Contact: |
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Investors: |
Media: |
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Dean Lindroth |
Therese Van Ryne |
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Vice President, Finance |
Director, Global PR and Industry Analyst Relations |
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+ 1 847 793 5653 |
+ 1 847 370 2317 |
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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) | ||||
|
July 4, 2015 |
December 31,2014 | |||
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Assets |
(Unaudited) |
|||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ 204,918 |
$ 393,950 | ||
|
Investments and marketable securities |
- |
24,385 | ||
|
Accounts receivable, net |
631,067 |
670,402 | ||
|
Inventories, net |
404,472 |
394,176 | ||
|
Deferred income taxes |
98,993 |
122,772 | ||
|
Income tax receivable |
92,366 |
12,988 | ||
|
Prepaid expenses and other current assets |
67,304 |
53,377 | ||
|
Total Current assets |
$ 1,499,120 |
$ 1,672,050 | ||
|
Property and equipment at cost, less accumulated depreciation and amortization |
284,593 |
255,092 | ||
|
Goodwill |
2,482,858 |
2,489,510 | ||
|
Other intangibles, net |
898,004 |
1,029,293 | ||
|
Other long-term assets |
95,005 |
93,121 | ||
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Total Assets |
$ 5,259,580 |
$ 5,539,066 | ||
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Liabilities and Stockholders' Equity |
||||
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Current liabilities: |
||||
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Accounts payable |
$ 281,771 |
$ 326,524 | ||
|
Accrued liabilities |
363,095 |
421,070 | ||
|
Deferred revenue |
215,458 |
196,213 | ||
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Current portion of long-term debt |
- |
4,209 | ||
|
Income taxes payable |
13,110 |
4,518 | ||
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Total Current liabilities |
$ 873,434 |
$ 952,534 | ||
|
Long-term debt |
3,040,361 |
3,156,490 | ||
|
Long-term deferred tax liability |
199,072 |
199,853 | ||
|
Long-term deferred revenue |
109,089 |
115,847 | ||
|
Other long-term liabilities |
86,034 |
74,434 | ||
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Total Liabilities |
$ 4,307,990 |
$ 4,499,158 | ||
|
Stockholders' Equity: |
||||
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Preferred stock |
- |
- | ||
|
Class A Common Stock |
722 |
722 | ||
|
Additional paid-in capital |
175,582 |
147,090 | ||
|
Treasury stock |
(632,820) |
(634,664) | ||
|
Retained earnings |
1,433,752 |
1,535,307 | ||
|
Accumulated other comprehensive loss |
(25,646) |
(8,547) | ||
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Total Stockholders' Equity |
951,590 |
1,039,908 | ||
|
Total Liabilities and Stockholders' Equity |
$ 5,259,580 |
$ 5,539,066 | ||
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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
|
(Amounts in thousands, except per share data) | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended |
Six Months Ended | ||||||
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July 4, 2015 |
June 28,2014 |
July 4,2015 |
June 28,2014 | ||||
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Net sales |
|||||||
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Net sales of tangible products |
$ 761,935 |
$ 270,049 |
$ 1,517,257 |
$ 531,941 | |||
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Revenue from services and software |
127,839 |
18,372 |
265,701 |
44,748 | |||
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Total net sales |
889,774 |
288,421 |
1,782,958 |
576,689 | |||
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Cost of sales |
|||||||
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Cost of sales of tangible products |
407,012 |
136,962 |
792,382 |
267,411 | |||
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Cost of services and software |
89,884 |
9,290 |
188,176 |
19,171 | |||
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Total cost of sales |
496,896 |
146,252 |
980,558 |
286,582 | |||
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Gross profit |
392,878 |
142,169 |
802,400 |
290,107 | |||
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Operating expenses: |
|||||||
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Selling and marketing |
125,120 |
35,755 |
247,226 |
71,171 | |||
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Research and development |
99,087 |
23,710 |
195,504 |
46,567 | |||
|
General and administrative |
69,659 |
26,321 |
135,795 |
54,712 | |||
|
Amortization of intangible assets |
63,700 |
2,667 |
131,289 |
5,339 | |||
|
Acquisition and integration costs |
31,166 |
20,364 |
57,497 |
25,291 | |||
|
Exit and restructuring costs |
17,949 |
287 |
29,118 |
554 | |||
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Total operating expenses |
406,681 |
109,104 |
796,429 |
203,634 | |||
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Operating (loss) income |
(13,803) |
33,065 |
5,971 |
86,473 | |||
|
Other (expense) income: |
|||||||
|
Investment income |
1,575 |
379 |
1,378 |
800 | |||
|
Foreign exchange income (loss) |
11,252 |
43 |
(15,939) |
(249) | |||
|
Forward interest rate swaps (loss) gain |
(1,653) |
(2,433) |
36 |
(2,433) | |||
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Interest expense |
(49,331) |
- |
(100,296) |
- | |||
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Other, net |
(707) |
(57) |
(1,980) |
(49) | |||
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Total other (expenses) |
(38,864) |
(2,068) |
(116,801) |
(1,931) | |||
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(Loss) income from continuing operations before income taxes |
(52,667) |
30,997 |
(110,830) |
84,542 | |||
|
Income tax expense (benefit) |
23,591 |
3,440 |
(9,275) |
15,379 | |||
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Net (loss) income |
$ (76,258) |
$ 27,557 |
$ (101,555) |
$ 69,163 | |||
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Basic (loss) earnings per share |
$ (1.50) |
$ 0.54 |
$ (2.00) |
$ 1.37 | |||
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Diluted (loss) earnings per share |
$ (1.50) |
$ 0.54 |
$ (2.00) |
$ 1.35 | |||
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Basic weighted average shares outstanding |
50,917 |
50,606 |
50,798 |
50,509 | |||
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Diluted weighted average and equivalent shares outstanding |
50,917 |
51,278 |
50,798 |
51,129 | |||
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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||||||
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||||||
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(Amounts in thousands) | |||||||
|
(Unaudited) | |||||||
|
Three months ended |
Six months ended | ||||||
|
July 4,2015 |
June 28,2014 |
July 4, 2015 |
June 28,2014 | ||||
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Net (loss) income |
$ (76,258) |
$ 27,557 |
$ (101,555) |
$ 69,163 | |||
|
Unrealized (loss) gain on anticipated sales hedging transactions, net of tax |
(4,642) |
776 |
(2,952) |
1,389 | |||
|
Unrealized gain (loss) on forward interest rate swaps hedging transactions, net of tax |
3,164 |
- |
(3,887) |
- | |||
|
Unrealized holding (loss) gain on investments, net of taxes |
- |
348 |
(16) |
496 | |||
|
Foreign currency translation adjustment |
(8,532) |
(29) |
(10,245) |
(196) | |||
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Comprehensive (loss) income |
$ (86,268) |
$ 28,652 |
$ (118,655) |
$ 70,852 | |||
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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||
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CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
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(Amounts in thousands) | |||
|
(Unaudited) | |||
|
Six Months Ended | |||
|
July 4,2015 |
June 28,2014 | ||
|
Cash flows from operating activities: |
|||
|
Net (loss) income |
$ (101,555) |
$ 69,163 | |
|
Adjustments to reconcile net (loss) income to net cash provided by |
|||
|
operating activities: |
|||
|
Depreciation and amortization |
161,865 |
18,096 | |
|
Amortization of debt issuance cost and discount |
9,662 |
- | |
|
Share-based compensation |
17,519 |
7,110 | |
|
Excess tax benefit from share-based compensation |
(11,115) |
(3,947) | |
|
Deferred income taxes |
18,487 |
2,979 | |
|
Unrealized (gain) loss on forward interest rate swaps |
(36) |
2,433 | |
|
All other, net |
584 |
49 | |
|
Changes in assets and liabilities, net of businesses acquired: |
|||
|
Accounts receivable, net |
48,081 |
11,359 | |
|
Inventories, net |
(22,755) |
(5,061) | |
|
Other assets |
(17,058) |
2,583 | |
|
Accounts payable |
(43,092) |
(5,336) | |
|
Accrued liabilities |
730 |
3,535 | |
|
Deferred revenue |
15,684 |
502 | |
|
Income taxes |
(60,800) |
4,706 | |
|
Other operating activities |
3,311 |
1,742 | |
|
Net cash provided by operating activities |
19,512 |
109,913 | |
|
Cash flows from investing activities: |
|||
|
Purchases of property and equipment |
(49,291) |
(7,962) | |
|
Acquisition of businesses, net of cash acquired |
(48,805) |
- | |
|
Proceeds from sale of long-term investments |
1,748 |
- | |
|
Purchases of long-term investments |
(168) |
(1,213) | |
|
Purchases of investments and marketable securities |
(739) |
(276,400) | |
|
Maturities of investments and marketable securities |
- |
20,852 | |
|
Proceeds from sales of investments and marketable securities |
25,108 |
150,781 | |
|
Net cash used in investing activities |
(72,147) |
(113,942) | |
|
Cash flows from financing activities: |
|||
|
Payment of debt |
(130,000) |
- | |
|
Proceeds from exercise of stock options and stock purchase plan purchases |
11,538 |
8,686 | |
|
Taxes paid related to net share settlement of equity awards |
(13,290) |
(975) | |
|
Excess tax benefit from equity-based compensation |
11,115 |
3,947 | |
|
Net cash (used in) provided by financing activities |
(120,637) |
11,658 | |
|
Effect of exchange rate changes on cash |
(15,760) |
(107) | |
|
Net (decrease) increase in cash and cash equivalents |
(189,032) |
7,522 | |
|
Cash and cash equivalents at beginning of period |
393,950 |
62,827 | |
|
Cash and cash equivalents at end of period |
$ 204,918 |
$ 70,349 | |
|
Supplemental disclosures of cash flow information: |
|||
|
Income taxes paid, net |
21,354 |
7,627 | |
|
Interest paid |
91,431 |
- | |
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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUPPLEMENTAL SALES INFORMATION (Amounts in thousands) (Unaudited) | |||||||||
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SALES BY PRODUCT CATEGORY | |||||||||
|
Three Months Ended |
|||||||||
|
July 4,2015 |
June 28,2014 |
Percent Change |
Percent ofNet Sales 2015 |
Percent ofNet Sales 2014 | |||||
|
Product category |
|||||||||
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Hardware |
$ 694,702 |
$ 204,770 |
239.3 |
78.0 |
71.0 | ||||
|
Supplies |
67,233 |
65,279 |
3.0 |
7.6 |
22.6 | ||||
|
Service and software |
127,839 |
18,372 |
595.8 |
14.4 |
6.4 | ||||
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Total net sales |
$ 889,774 |
$ 288,421 |
208.5 |
100.0 |
100.0 | ||||
|
Six Months Ended |
|||||||||
|
July 4,2015 |
June 28,2014 |
Percent Change |
Percent of Net Sales 2015 |
Percent of Net Sales 2014 | |||||
|
Product category |
|||||||||
|
Hardware |
$ 1,382,772 |
$ 403,158 |
243.0 |
77.6 |
69.9 | ||||
|
Supplies |
134,485 |
128,783 |
4.4 |
7.5 |
22.3 | ||||
|
Service and software |
265,701 |
44,748 |
493.8 |
14.9 |
7.8 | ||||
|
Total net sales |
$ 1,782,958 |
$ 576,689 |
209.2 |
100.0 |
100.0 | ||||
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SALES BY GEOGRAPHIC REGION | |||||||||
|
Three Months Ended |
|||||||||
|
July 4,2015 |
June 28,2014 |
Percent Change |
Percent of Net Sales 2015 |
Percent of Net Sales 2014 | |||||
|
Geographic region |
|||||||||
|
Europe, Middle East and Africa |
$ 303,382 |
$ 94,200 |
222.1 |
34.1 |
32.7 | ||||
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Latin America |
55,161 |
25,204 |
118.9 |
6.2 |
8.7 | ||||
|
Asia-Pacific |
117,466 |
40,334 |
191.2 |
13.2 |
14.0 | ||||
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Total International |
476,009 |
159,738 |
198.0 |
53.5 |
55.4 | ||||
|
North America |
413,765 |
128,683 |
221.5 |
46.5 |
44.6 | ||||
|
Total net sales |
$ 889,774 |
$ 288,421 |
208.5 |
100.0 |
100.0 | ||||
|
Six Months Ended |
|||||||||
|
July 4,2015 |
June 28,2014 |
Percent Change |
Percent of Net Sales 2015 |
Percent of Net Sales 2014 | |||||
|
Geographic region |
|||||||||
|
Europe, Middle East and Africa |
$ 593,926 |
$ 185,639 |
219.9 |
33.3 |
32.2 | ||||
|
Latin America |
108,446 |
50,844 |
113.3 |
6.1 |
8.8 | ||||
|
Asia-Pacific |
223,849 |
78,301 |
185.9 |
12.6 |
13.6 | ||||
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Total International |
926,221 |
314,784 |
194.2 |
52.0 |
54.6 | ||||
|
North America |
856,737 |
261,905 |
227.1 |
48.0 |
45.4 | ||||
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Total net sales |
$ 1,782,958 |
$ 576,689 |
209.2 |
100.0 |
100.0 | ||||
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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||||||
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RECONCILIATION OF GAAP TO NON-GAAP NET INCOME | |||||||
|
(Amounts in thousands, except per share data) | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended |
Six Months Ended | ||||||
|
July 4, 2015 |
June 28, 2014 |
July 4, 2015 |
June 28, 2014 | ||||
|
Net (loss) income |
($76,258) |
$27,557 |
($101,555) |
$69,163 | |||
|
Income tax expense (benefit) |
23,591 |
3,440 |
(9,275) |
15,379 | |||
|
Share-based compensation |
8,723 |
4,144 |
17,519 |
7,110 | |||
|
Acquisition and integration costs |
31,166 |
20,364 |
57,497 |
25,291 | |||
|
Exit and restructuring costs |
17,949 |
287 |
29,118 |
554 | |||
|
Purchase accounting adjustments |
5,338 |
- |
11,763 |
- | |||
|
Foreign exchange loss (gain) |
(11,252) |
(43) |
15,939 |
249 | |||
|
Amortization of intangible assets |
63,700 |
2,667 |
131,289 |
5,339 | |||
|
Non-cash interest expense |
5,103 |
- |
9,662 |
- | |||
|
Forward interest rate swaps loss (gain) |
1,653 |
2,433 |
(36) |
2,433 | |||
|
Tax effects |
(16,383) |
(13,888) |
(36,147) |
(29,721) | |||
|
Total adjustments |
$ 129,588 |
$ 19,404 |
$ 227,329 |
$ 26,634 | |||
|
Non-GAAP net income |
$ 53,330 |
$ 46,961 |
$ 125,774 |
$ 95,797 | |||
|
GAAP (loss) earnings per share |
|||||||
|
Basic |
$ (1.50) |
$ 0.54 |
$ (2.00) |
$ 1.37 | |||
|
Diluted |
$ (1.50) |
$ 0.54 |
$ (2.00) |
$ 1.35 | |||
|
Non-GAAP earnings per share |
|||||||
|
Basic |
$ 1.05 |
$ 0.93 |
$ 2.48 |
$ 1.90 | |||
|
Diluted |
$ 1.05 |
$ 0.92 |
$ 2.48 |
$ 1.87 | |||
|
Basic weighted average shares outstanding |
50,917 |
50,606 |
50,798 |
50,509 | |||
|
Diluted weighted average and equivalent shares outstanding |
50,917 |
51,278 |
50,798 |
51,129 | |||
|
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||||||
|
GAAP TO NON-GAAP RECONCILIATION | |||||||
|
(Amounts in thousands) | |||||||
|
(Unaudited) | |||||||
|
Three Months Ended |
Six Months Ended | ||||||
|
July 4, 2015 |
June 28, 2014 |
July 4, 2015 |
June 28, 2014 | ||||
|
Net (Loss) Income to EBITDA |
|||||||
|
and Adjusted EBITDA |
|||||||
|
Net (loss) income |
($76,258) |
$27,557 |
($101,555) |
$69,163 | |||
|
Income tax expense (benefit) |
23,591 |
3,440 |
(9,275) |
15,379 | |||
|
Total other expense (income) |
38,864 |
2,068 |
116,801 |
1,931 | |||
|
Operating (loss) income |
$ (13,803) |
$ 33,065 |
$ 5,971 |
$ 86,473 | |||
|
Depreciation |
18,461 |
6,427 |
30,576 |
12,757 | |||
|
Amortization of intangible assets |
63,700 |
2,667 |
131,289 |
5,339 | |||
|
EBITDA (Non-GAAP) |
$ 68,358 |
$ 42,159 |
$ 167,836 |
$ 104,569 | |||
|
Acquisition and integration costs |
31,166 |
20,364 |
57,497 |
25,291 | |||
|
Purchase accounting adjustments |
5,338 |
- |
11,763 |
- | |||
|
Exit and restructuring costs |
17,949 |
287 |
29,118 |
554 | |||
|
Share-based compensation |
8,723 |
4,144 |
17,519 |
7,110 | |||
|
Adjusted EBITDA (Non-GAAP) |
$ 131,534 |
$ 66,954 |
$ 283,733 |
$ 137,524 | |||
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SOURCE Zebra Technologies Corporation