SANTA CRUZ, Calif., Feb. 4, 2020 /PRNewswire/ -- Plantronics, Inc. (NYSE: PLT) ("Poly" or the "Company") today announced third quarter fiscal year 2020 results for the period ending December 31, 2019. Highlights of the third quarter include the following:
($ Millions, except percent and per-share data)1 | Q3 FY20 | Q3 FY19 | YTD FY20 | YTD FY192 | |||||
GAAP Revenue | $384 | $502 | $1,294 | $1,206 | |||||
GAAP Gross Margin | 37.4 | % | 42.9 | % | 43.5 | % | 39.6 | % | |
GAAP Operating Income | ($77) | ($25) | ($111) | ($90) | |||||
GAAP Diluted EPS | ($1.97) | ($1.06) | ($3.78) | ($3.08) | |||||
Cash Flow from Operations | ($17) | $47 | $16 | $119 | |||||
Non-GAAP Revenue | $392 | $531 | $1,322 | $1,272 | |||||
Non-GAAP Gross Margin | 49.4 | % | 51.5 | % | 52.7 | % | 51.9 | % | |
Non-GAAP Operating Income | $31 | $93 | $198 | $225 | |||||
Non-GAAP Diluted EPS | $0.30 | $1.36 | $2.85 | $3.68 | |||||
Adjusted EBITDA | $43 | $105 | $234 | $256 |
1 | For further information on supplemental non-GAAP metrics refer to the Use of Non-GAAP And Comparative Financial Information and Unaudited Reconciliations of GAAP Measures To Non-GAAP Measures sections below. |
2 | YTD FY19 results shown here do not reflect Polycom results for the three months ended June 30, 2018 due to the completion of the Polycom acquisition on July 2, 2018. |
"While we are disappointed with our results this quarter, particularly Enterprise headsets, we have now begun shipping the first products built on our next-generation architecture for the cloud-connected world," said Joe Burton, President and Chief Executive Officer. "As we ramp the new product portfolio and address our sales and channel distribution issues, we are committed to return to sustained profitable revenue growth."
Results Compared to November 5, 2019 Guidance | ||
Q3 FY20 Results | Q3 FY20 Guidance Range3 | |
GAAP Net Revenue | $384M | $383M - $423M |
Non-GAAP Net Revenue | $392M | $390M - $430M |
Adjusted EBITDA | $43M | $33M - $53M |
Non-GAAP Diluted EPS | $0.30 | $0.01 - $0.31 |
3 | The non-GAAP revenue guidance range shown here excludes the $7.1 million impact of purchase accounting related to recording deferred revenue at fair value at the time of the acquisition. |
"We reduced both channel and on-hand inventory in fiscal Q3," said Chuck Boynton, Executive Vice President and Chief Financial Officer. "In addition, we are announcing the sale of our Consumer Gaming business, which we expect to improve margins and working capital. Lastly, we continue to optimize the remaining Consumer portfolio to improve focus and profitability."
Highlights for the Third Quarter and Fiscal Year 2020
Poly Announces Quarterly Dividend of $0.15
The Poly Board of Directors has declared a quarterly cash dividend of $0.15 per common share, to be paid on March 10, 2020, to all shareholders of record as of the close of market on February 20, 2020.
Business Outlook
The following statements are based on the Company's current expectations, and many of these statements are forward-looking. Actual results are subject to a variety of risks and uncertainties and may differ materially from the Company's expectations. Please refer to the Forward Looking Statements Safe Harbor section of this press release below.
The following represents the expected range of financial results for the fourth quarter 2020 (all amounts assuming currency rates remain stable):
Q4 FY20 Guidance | |
GAAP Net Revenue | $354M - $394M |
Non-GAAP Net Revenue1 | $360M - $400M |
Adjusted EBITDA2 | $20M - $45M |
Non-GAAP Diluted EPS2,3 | $(0.36) - $0.19 |
1 | Q4 non-GAAP revenue guidance excludes anticipated purchase accounting adjustments of $6.1 million. |
2 | Q4 Adjusted EBITDA and non-GAAP diluted EPS guidance excludes estimated intangibles amortization expense of $46.3 million. With respect to adjusted EBITDA and diluted EPS guidance, the Company has determined that it is unable to provide quantitative reconciliations of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures with a reasonable degree of confidence in their accuracy without unreasonable effort, as items including stock based compensation, acquisition and integration costs, litigation gains and losses, and impacts from discrete tax adjustments and tax laws are inherently uncertain and depend on various factors, many of which are beyond the Company's control. |
3 | EPS guidance assumes approximately 41 million diluted average weighted shares and a non-GAAP effective tax rate of 6% to 8%. |
Conference Call and Earnings Presentation
Poly is providing an earnings presentation in combination with this press release. The presentation is offered to provide shareholders and analysts with additional detail for analyzing results. The presentation will be available in the Investor Relations section of our corporate website at investor.poly.com along with this press release. A reconciliation of our GAAP to non-GAAP results is provided at the end of this press release.
We have scheduled a conference call to discuss third quarter fiscal year 2020 financial results. The conference call will take place today, February 4, 2020, at 2:00 PM (Pacific Time). All interested investors and potential investors in Poly stock are invited to participate. To listen to the call, please dial in five to ten minutes prior to the scheduled starting time and refer to the "Poly Conference Call." The dial-in from North America is (888) 301-8736 and the international dial-in is (706) 634-7260.
The conference call will also be simultaneously webcast and can be accessed from the Investor Relations section of our website. A replay of the call with the conference ID #8387169 will be available until April 5, 2020 at (855) 859-2056 for callers from North America and at (404) 537-3406 for all other callers.
Use of Non-GAAP Financial Information
To supplement our condensed consolidated financial statements presented on a GAAP basis, we use non-GAAP measures of operating results, including non-GAAP net revenues, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, adjusted EBITDA, and non-GAAP diluted EPS. These non-GAAP measures are adjusted from the most directly comparable GAAP measures to exclude, or include where applicable, the effect of purchase accounting on deferred revenue and inventory, charges associated with the optimization of our Consumer product line, stock-based compensation, acquisition related expenses, purchase accounting amortization and adjustments, restructuring and other related charges and credits, rebranding costs, other unusual and/or non-cash charges and credits, and the impact of participating securities, all net of any associated tax impact. We also exclude tax benefits from the release of tax reserves, discrete tax adjustments including transfer pricing, tax deduction and tax credit adjustments, and the impact of tax law changes. We adjust these amounts from our non-GAAP measures primarily because management does not believe they are consistent with the development of our target operating model. We believe that the use of non-GAAP financial measures provides meaningful supplemental information regarding our performance and liquidity and helps investors compare actual results with our historical and long-term target operating model goals as well as our performance as a combined company. We believe presenting non-GAAP net revenue provides meaningful supplemental information regarding how management views the performance of the business and underlying performance of our individual product categories. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods; however, non-GAAP financial measures are not meant to be considered in isolation of, or as a substitute for, or superior to, net revenues, gross margin, operating expenses, operating income, operating margin, net income or EPS prepared in accordance with GAAP.
Forward Looking Statements Safe Harbor
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to: (i) our efforts to execute to drive sales and sustainable profitable revenue growth; (ii) our expectations for new products launches, the timing of their releases and their expected impact on future growth and on our existing products; (iii) our expectations to avoid business disruption due to potential global health issues, (iv) our expectations for synergies in the quarter and additional anticipated cost savings; (v) our expectations related to the sale of our gaming product line and further optimization of our Consumer product line; (vi) beliefs regarding the strategic and financial benefits of focusing on our Enterprise business, simplifying business processes and reducing working capital; (vii) our expectations for operating cash flow and debt; (viii) expectations relating to our Q-4 and full Fiscal Year 2020 earnings guidance; (ix) estimates of GAAP and non-GAAP financial results for the fourth quarter and full Fiscal Year 2020, including net revenues, purchase accounting adjustments, adjusted EBITDA, tax rates, intangibles amortization, and diluted weighted average shares outstanding and diluted EPS; (x) expectations related to our customers' purchasing decisions and our ability to match product production to demand; (xi) our expectations of the impact of the acquisition of Polycom as it relates to our strategic vision and additional market and strategic partnership opportunities for our combined hardware and services offerings; (xii) our beliefs regarding the UC&C market, market dynamics and opportunities, and customer and partner behavior as well as our position in the market; (xiii) our belief that the increased adoption of certain technologies and our open architecture approach has and will continue to increase demand for our solutions; (xiv) expectations related to the micro and macro-economic conditions in our domestic and international markets and their impact on our future business; (xv) our forecasts and expectations regarding liquidity, capital resources and results of operations along with our intentions concerning the repayment of our debt obligations and our ability to draw funds on our credit facility as needed; (xvi) our forecast and estimates with respect to tax matters, including expectations with respect to utilizing our deferred tax assets; (xvii) our expectations regarding pending and potential future litigation, in addition to other matters discussed in this press release that are not purely historical data.
We do not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contemplated by such statements. Among the factors that could cause actual results to differ materially from those contemplated are:
For more information concerning these and other possible risks, please refer to our Annual Report on Form 10-K filed with the Securities and Exchange Commission on May 17, 2019 and other filings with the Securities and Exchange Commission, as well as recent press releases. The Securities and Exchange Commission filings can be accessed over the Internet at http://www.sec.gov/edgar/searchedgar/companysearch.html.
Financial Summaries
The following related charts are provided:
About Poly
Poly is a global communications company that powers meaningful human connection and collaboration. Poly combines legendary audio expertise and powerful video and conferencing capabilities to overcome the distractions, complexity and distance that make communication in and out of the workplace challenging. Poly believes in solutions that make life easier when they work together and with our partner's services. Our headsets, software, desk phones, audio and video conferencing, analytics and services are used worldwide and are a leading choice for every kind of workspace. For more information, please visit: www.poly.com.
Poly and the propeller design are trademarks of Plantronics, Inc. All other trademarks are the property of their respective owners.
INVESTOR CONTACT:
Mike Iburg
Vice President, Investor Relations
(831) 458-7533
MEDIA CONTACT:
Edie Kissko
Senior Director and Head of Corporate Communications
(213) 369-3719
PLANTRONICS, INC. | |||||||||||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Net revenues: | |||||||||||||||||
Net product revenues | $ | 316,633 | $ | 445,441 | $ | 1,094,515 | $ | 1,102,012 | |||||||||
Net services revenues | 67,838 | 56,228 | 199,432 | 104,035 | |||||||||||||
Total net revenues | 384,471 | 501,669 | 1,293,947 | 1,206,047 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Cost of product revenues | 220,469 | 259,673 | 658,408 | 676,616 | |||||||||||||
Cost of service revenues | 20,156 | 26,859 | 72,976 | 51,822 | |||||||||||||
Total cost of revenues | 240,625 | 286,532 | 731,384 | 728,438 | |||||||||||||
Gross profit | 143,846 | 215,137 | 562,563 | 477,609 | |||||||||||||
Gross profit % | 37.4 | % | 42.9 | % | 43.5 | % | 39.6 | % | |||||||||
Operating expenses: | |||||||||||||||||
Research, development, and engineering | 53,769 | 59,661 | 170,708 | 140,409 | |||||||||||||
Selling, general, and administrative | 144,978 | 168,053 | 457,004 | 406,553 | |||||||||||||
(Gain) loss, net from litigation settlements | ? | ? | (1,162) | (30) | |||||||||||||
Restructuring and other related charges | 21,724 | 12,130 | 47,096 | 20,711 | |||||||||||||
Total operating expenses | 220,471 | 239,844 | 673,646 | 567,643 | |||||||||||||
Operating income | (76,625) | (24,707) | (111,083) | (90,034) | |||||||||||||
Operating income % | (19.9) | % | (4.9) | % | (8.6) | % | (7.5) | % | |||||||||
Interest expense | (22,533) | (25,032) | (70,262) | (56,252) | |||||||||||||
Other non-operating income, net | 967 | 125 | 675 | 3,731 | |||||||||||||
Income before income taxes | (98,191) | (49,614) | (180,670) | (142,555) | |||||||||||||
Income tax expense (benefit) | (19,708) | (7,880) | (31,406) | (28,584) | |||||||||||||
Net income (loss) | $ | (78,483) | $ | (41,734) | $ | (149,264) | $ | (113,971) | |||||||||
% of net revenues | (20.4) | % | (8.3) | % | (11.5) | % | (9.4) | % | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | (1.97) | $ | (1.06) | $ | (3.78) | $ | (3.08) | |||||||||
Diluted | $ | (1.97) | $ | (1.06) | $ | (3.78) | $ | (3.08) | |||||||||
Shares used in computing earnings per common share: | |||||||||||||||||
Basic | 39,784 | 39,314 | 39,535 | 37,063 | |||||||||||||
Diluted | 39,784 | 39,314 | 39,535 | 37,063 | |||||||||||||
Effective tax rate | (20.1) | % | (15.9) | % | (17.4) | % | (20.1) | % |
PLANTRONICS, INC. | |||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||
($ in thousands) | |||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||||||
December 31, | March 31, | ||||||||
2019 | 2019 | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 156,821 | $ | 202,509 | |||||
Short-term investments | 15,317 | 13,332 | |||||||
Total cash, cash equivalents, and short-term investments | 172,138 | 215,841 | |||||||
Accounts receivable, net | 246,318 | 337,671 | |||||||
Inventory, net | 215,038 | 177,146 | |||||||
Other current assets | 54,533 | 50,488 | |||||||
Total current assets | 688,027 | 781,146 | |||||||
Property, plant, and equipment, net | 177,482 | 204,826 | |||||||
Purchased intangibles, net | 688,258 | 825,675 | |||||||
Goodwill | 1,279,897 | 1,278,380 | |||||||
Deferred tax and other assets | 97,203 | 26,508 | |||||||
Total assets | $ | 2,930,867 | $ | 3,116,535 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable | $ | 122,314 | $ | 129,514 | |||||
Accrued liabilities | 363,394 | 398,715 | |||||||
Total current liabilities | 485,708 | 528,229 | |||||||
Long-term debt, net of issuance costs | 1,620,354 | 1,640,801 | |||||||
Long-term income taxes payable | 98,386 | 83,121 | |||||||
Other long-term liabilities | 138,342 | 142,697 | |||||||
Total liabilities | 2,342,790 | 2,394,848 | |||||||
Stockholders' equity | 588,077 | 721,687 | |||||||
Total liabilities and stockholders' equity | $ | 2,930,867 | $ | 3,116,535 | |||||
PLANTRONICS, INC. | |||||||||||||||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
($ in thousands, except per share data) | |||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net Income | $ | (78,483) | $ | (41,734) | $ | (149,264) | $ | (113,971) | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 57,556 | 55,117 | 172,630 | 142,763 | |||||||||||||
Amortization of debt issuance cost | 1,340 | 1,419 | 4,062 | 3,188 | |||||||||||||
Stock-based compensation | 13,902 | 11,719 | 41,499 | 30,709 | |||||||||||||
Deferred income taxes | (17,369) | (21,931) | (66,171) | (39,987) | |||||||||||||
Provision for excess and obsolete inventories | 13,394 | 2,073 | 19,076 | 4,881 | |||||||||||||
Restructuring charges | 21,724 | 12,130 | 47,096 | 20,711 | |||||||||||||
Cash payments for restructuring charges | (6,936) | (3,827) | (29,885) | (11,222) | |||||||||||||
Other operating activities | (5,693) | 60 | 3,201 | 9,070 | |||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Accounts receivable, net | 30,856 | (12,075) | 34,634 | (35,938) | |||||||||||||
Inventory, net | 6,264 | (5,362) | (49,320) | 11,018 | |||||||||||||
Current and other assets | 14,790 | 33,149 | 24,142 | 30,456 | |||||||||||||
Accounts payable | (45,600) | (4,108) | (10,690) | 16,519 | |||||||||||||
Accrued liabilities | (15,212) | 33,172 | (46,906) | 72,677 | |||||||||||||
Income taxes | (7,744) | (13,110) | 22,251 | (21,631) | |||||||||||||
Cash provided by operating activities | $ | (17,211) | $ | 46,693 | $ | 16,355 | $ | 119,243 | |||||||||
Cash flows from investing activities | |||||||||||||||||
Proceeds from sale of investments | 7 | 1,159 | 177 | 125,799 | |||||||||||||
Proceeds from maturities of investments | ? | ? | ? | 131,017 | |||||||||||||
Purchase of investments | (166) | (162) | (972) | (698) | |||||||||||||
Acquisitions, net of cash acquired | ? | 8,001 | ? | (1,642,241) | |||||||||||||
Capital expenditures | (7,724) | (8,613) | (16,984) | (16,148) | |||||||||||||
Proceeds from sale of property and equipment | ? | ? | 2,142 | ? | |||||||||||||
Cash provided by (used for) investing activities | $ | (7,883) | $ | 385 | $ | (15,637) | $ | (1,402,271) | |||||||||
Cash flows from financing activities | |||||||||||||||||
Repurchase of common stock | ? | (4,780) | ? | (4,780) | |||||||||||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (388) | (521) | (9,669) | (13,863) | |||||||||||||
Proceeds from issuances under stock-based compensation plans | 1 | 53 | 6,617 | 14,925 | |||||||||||||
Repayments of long-term debt | ? | ? | (25,000) | ? | |||||||||||||
Proceeds from debt issuance, net | ? | ? | ? | 1,244,713 | |||||||||||||
Payment of cash dividends | (5,988) | (5,971) | (17,910) | (16,953) | |||||||||||||
Cash used for financing activities | $ | (6,375) | $ | (11,219) | $ | (45,962) | $ | 1,224,042 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,848 | 1,211 | (444) | (3,519) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (29,621) | 37,070 | (45,688) | (62,505) | |||||||||||||
Cash and cash equivalents at beginning of period | 186,442 | 291,086 | 202,509 | 390,661 | |||||||||||||
Cash and cash equivalents at end of period | $ | 156,821 | $ | 328,156 | $ | 156,821 | $ | 328,156 | |||||||||
PLANTRONICS, INC. | ||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
GAAP Net revenues | $ | 384,471 | $ | 501,669 | $ | 1,293,947 | $ | 1,206,047 | ||||||||
Deferred revenue purchase accounting | 7,131 | 28,923 | 27,815 | 65,508 | ||||||||||||
Non-GAAP Net revenues | $ | 391,602 | $ | 530,592 | $ | 1,321,762 | $ | 1,271,555 | ||||||||
GAAP Gross profit | $ | 143,846 | $ | 215,137 | $ | 562,563 | $ | 477,609 | ||||||||
Purchase accounting amortization | 30,819 | 27,575 | 91,535 | 83,243 | ||||||||||||
Inventory valuation adjustment | ? | ? | ? | 30,395 | ||||||||||||
Deferred revenue purchase accounting | 7,131 | 28,923 | 27,815 | 65,508 | ||||||||||||
Consumer optimization | 10,415 | ? | 10,415 | ? | ||||||||||||
Acquisition and integration fees | 46 | 404 | 1,056 | 621 | ||||||||||||
Stock-based compensation | 1,019 | 1,067 | 2,994 | 3,103 | ||||||||||||
Rebranding costs | 54 | ? | 113 | ? | ||||||||||||
Non-GAAP Gross profit | $ | 193,330 | $ | 273,106 | $ | 696,491 | $ | 660,479 | ||||||||
Non-GAAP Gross profit % | 49.4 | % | 51.5 | % | 52.7 | % | 51.9 | % | ||||||||
GAAP Research, development, and engineering | $ | 53,769 | $ | 59,661 | $ | 170,708 | $ | 140,409 | ||||||||
Stock-based compensation | (4,584) | (2,887) | (12,516) | (7,877) | ||||||||||||
Acquisition and integration fees | (538) | (95) | (2,439) | (151) | ||||||||||||
Other adjustments | ? | ? | (542) | ? | ||||||||||||
Non-GAAP Research, development, and engineering | $ | 48,647 | $ | 56,679 | $ | 155,211 | $ | 132,381 | ||||||||
GAAP Selling, general, and administrative | $ | 144,978 | $ | 168,053 | $ | 457,004 | $ | 406,553 | ||||||||
Acquisition and integration fees | (7,715) | (21,775) | (35,896) | (53,558) | ||||||||||||
Purchase accounting amortization | (15,278) | (15,278) | (45,834) | (30,557) | ||||||||||||
Stock-based compensation | (8,299) | (7,765) | (25,989) | (19,729) | ||||||||||||
Rebranding costs | (324) | ? | (6,392) | ? | ||||||||||||
Non-GAAP Selling, general, and administrative | $ | 113,362 | $ | 123,235 | $ | 342,893 | $ | 302,709 | ||||||||
GAAP Operating expenses | $ | 220,471 | $ | 239,844 | $ | 673,646 | $ | 567,643 | ||||||||
Acquisition and integration fees | (8,253) | (21,870) | (38,335) | (53,709) | ||||||||||||
Purchase accounting amortization | (15,278) | (15,278) | (45,834) | (30,557) | ||||||||||||
Stock-based compensation | (12,883) | (10,652) | (38,505) | (27,606) | ||||||||||||
Restructuring and other related charges | (21,724) | (12,130) | (47,096) | (20,711) | ||||||||||||
Rebranding costs | (324) | ? | (6,392) | ? | ||||||||||||
Other adjustments | ? | ? | 620 | ? | ||||||||||||
Non-GAAP Operating expenses | $ | 162,009 | $ | 179,914 | $ | 498,104 | $ | 435,060 | ||||||||
PLANTRONICS, INC. | ||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
GAAP Operating income | $ | (76,625) | $ | (24,707) | $ | (111,083) | $ | (90,034) | ||||||||||
Purchase accounting amortization | 46,097 | 42,853 | 137,369 | 113,800 | ||||||||||||||
Inventory valuation adjustment | ? | ? | ? | 30,395 | ||||||||||||||
Deferred revenue purchase accounting | 7,131 | 28,923 | 27,815 | 65,508 | ||||||||||||||
Consumer optimization | 10,415 | ? | 10,415 | ? | ||||||||||||||
Acquisition and integration fees | 8,299 | 22,274 | 39,391 | 54,330 | ||||||||||||||
Stock-based compensation | 13,902 | 11,719 | 41,499 | 30,709 | ||||||||||||||
Restructuring and other related charges | 21,724 | 12,130 | 47,096 | 20,711 | ||||||||||||||
Rebranding costs | 378 | ? | 6,505 | ? | ||||||||||||||
Other adjustments | ? | ? | (620) | ? | ||||||||||||||
Non-GAAP Operating income | $ | 31,321 | $ | 93,192 | $ | 198,387 | $ | 225,419 | ||||||||||
GAAP Net income | $ | (78,483) | $ | (41,734) | $ | (149,264) | $ | (113,971) | ||||||||||
Purchase accounting amortization | 46,097 | 42,853 | 137,369 | 113,800 | ||||||||||||||
Inventory valuation adjustment | ? | ? | ? | 30,395 | ||||||||||||||
Deferred revenue purchase accounting | 7,131 | 28,923 | 27,815 | 65,508 | ||||||||||||||
Consumer optimization | 10,415 | 5 | ? | 10,415 | 5 | ? | ||||||||||||
Acquisition and integration fees | 8,299 | 22,274 | 39,391 | 54,330 | ||||||||||||||
Stock-based compensation | 13,902 | 11,719 | 41,499 | 30,709 | ||||||||||||||
Restructuring and other related charges | 21,724 | 12,130 | 47,096 | 20,711 | ||||||||||||||
Rebranding costs | 378 | ? | 6,505 | ? | ||||||||||||||
Other adjustments | ? | ? | 1 | (620) | 1, 2 | ? | ||||||||||||
Income tax effect of above items | (17,021) | (18,036) | (45,015) | (56,934) | ||||||||||||||
Income tax effect of unusual tax items | (482) | 3 | (4,028) | 4 | (2,001) | 3 | (5,387) | 4 | ||||||||||
Non-GAAP Net income | $ | 11,960 | $ | 54,101 | $ | 113,190 | $ | 139,160 | ||||||||||
GAAP Diluted earnings per common share | $ | (1.97) | $ | (1.06) | $ | (3.78) | $ | (3.08) | ||||||||||
Purchase accounting amortization | 1.16 | 1.08 | 3.46 | 3.01 | ||||||||||||||
Inventory valuation adjustment | ? | ? | ? | 0.80 | ||||||||||||||
Deferred revenue purchase accounting | 0.18 | 0.73 | 0.70 | 1.73 | ||||||||||||||
Consumer optimization | 0.26 | ? | 0.26 | ? | ||||||||||||||
Stock-based compensation | 0.35 | 0.30 | 1.04 | 0.81 | ||||||||||||||
Acquisition and integration fees | 0.21 | 0.56 | 0.99 | 1.44 | ||||||||||||||
Restructuring and other related charges | 0.54 | 0.31 | 1.19 | 0.55 | ||||||||||||||
Rebranding costs | 0.01 | ? | 0.16 | ? | ||||||||||||||
Other adjustments | ? | ? | (0.01) | ? | ||||||||||||||
Income tax effect | (0.44) | (0.57) | (1.19) | (1.65) | ||||||||||||||
Effect of anti-dilutive securities | ? | 0.01 | 0.03 | 0.07 | ||||||||||||||
Non-GAAP Diluted earnings per common share | $ | 0.30 | $ | 1.36 | $ | 2.85 | $ | 3.68 | ||||||||||
Shares used in diluted earnings per common share calculation: | ||||||||||||||||||
GAAP | 39,784 | 39,314 | 39,535 | 37,063 | ||||||||||||||
non-GAAP | 39,870 | 39,712 | 39,731 | 37,819 | ||||||||||||||
1 | Includes Executive transition costs and losses due to litigation settlements. |
2 | Excluded amounts represent immaterial gains from litigation. |
3 | Excluded amounts represent changes in tax law and the release of tax reserves. |
4 | Excluded amounts represent tax benefits resulting from the release of tax reserves and tax return true-ups. |
5 | Excluded amounts represent inventory related reserves associated with optimizing the consumer product portfolio. |
PLANTRONICS, INC. | |||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | |||||||||||||||||||||||||
Three Months Ended | Twelve Months | ||||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
GAAP operating income | $ | (24,707) | $ | (19,259) | $ | (28,849) | $ | (5,610) | $ | (76,625) | $ | (130,343) | |||||||||||||
Deferred revenue purchase accounting | 28,923 | 19,316 | 12,159 | 8,524 | 7,131 | 47,130 | |||||||||||||||||||
Consumer optimization | ? | ? | ? | ? | 10,415 | 10,415 | |||||||||||||||||||
Acquisition and integration fees | 22,274 | 14,323 | 20,435 | 10,657 | 8,299 | 53,714 | |||||||||||||||||||
Stock-based compensation | 11,719 | 11,225 | 12,904 | 14,693 | 13,902 | 52,724 | |||||||||||||||||||
Restructuring and other related charges | 12,130 | 11,983 | 19,525 | 5,847 | 21,724 | 59,079 | |||||||||||||||||||
Rebranding costs | ? | 5,192 | 5,455 | 672 | 378 | 11,697 | |||||||||||||||||||
Other adjustments | ? | 1,005 | (1,162) | 542 | ? | 385 | |||||||||||||||||||
Depreciation and amortization | 55,117 | 58,606 | 57,698 | 57,376 | 57,556 | 231,236 | |||||||||||||||||||
Adjusted EBITDA | $ | 105,456 | $ | 102,391 | $ | 98,165 | $ | 92,701 | $ | 42,780 | $ | 336,037 | |||||||||||||
SOURCE Plantronics, Inc. ("Poly" - formerly Plantronics and Polycom)
These press releases may also interest you
|