Zebra Technologies Announces 2012 First Quarter Financial Results
LINCOLNSHIRE, Ill., April 27, 2012 /PRNewswire/ -- Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2012 first quarter diluted earnings per share of $0.58, up 7.4% from $0.54 from continuing operations for the first quarter of 2011. Net sales for the quarter ended March 31, 2012, increased 2.8% to $243,875,000 from $237,301,000 for the first quarter of 2011.
| Summary Financial Performance (Unaudited) |
|||
| 1Q12 |
1Q11 |
Change |
|
| Net sales (in 000s) |
$243,875 |
$237,301 |
2.8% |
| Gross margin (%) |
49.1 |
50.6 |
-1.5 pts. |
| Operating margin (%) |
17.2 |
18.7 |
-1.5 pts. |
| Income from continuing operations (in 000s) |
$30,164 |
$30,128 |
0.1% |
| Income from discontinued operations, net of tax (in 000s) |
-- |
$31,506 |
NM |
| Net income (in 000s) |
$30,164 |
$61,634 |
-51.1% |
| Diluted earnings per share: |
|||
| Income from continuing operations |
$0.58 |
$0.54 |
7.4% |
| Income from discontinued operations |
-- |
$0.56 |
-100.0% |
| Net income |
$0.58 |
$1.10 |
-47.3% |
"Strategically-driven activities to gain share, penetrate targeted industries more deeply and extend geographic reach led to sales growth in all geographic regions," stated Anders Gustafsson, Zebra's chief executive officer. "Our formidable product line, extensive global channel relationships and business diversity enabled us to win more business with customers in a broad range of industries. In a challenged business environment, we matched excellent execution with effective control over operating expenses. We continued to invest in those areas critical to Zebra's long-term success. This year, we are on target to deliver a high number of innovative new printer products. These and other solutions are enabling our customers to gain greater visibility into assets, transactions and people across their value chains. We remain confident in Zebra's future and our ability to accelerate growth and deliver higher returns for our shareholders."
As of March 31, 2012, Zebra had $362,244,000 in cash and investments, and no long-term debt. Net inventories were $126,119,000, and net accounts receivable were $157,114,000.
Discussion and Analysis
- Net sales for the first quarter of 2012 included year-over-year growth in all four of the company's geographic regions. Sales growth of supplies and card printers were notably strong. The impact of movements in foreign exchange, net of hedges, was not material to sales growth.
- Gross margin of 49.1%, versus 50.6% a year ago, primarily reflects movements in product mix.
- Operating expense growth of 2.9% includes a modest increase in administrative expenses, as well as higher sales and marketing expenses which were principally related to activities supporting the company's geographic expansion and market development activities. This growth was partially offset by a decline in engineering expenses. Operating profit margin decreased from 18.7% to 17.2%.
Stock Purchase Update
During the first quarter of 2012, Zebra repurchased 264,567 shares of Zebra Technologies Corporation Class A Common Stock. At March 31, 2012, the company had 3,231,632 shares remaining in its stock buyback authorization, and 51,908,000 shares of common stock were outstanding.
Second Quarter Outlook
Zebra announced its financial forecast for the second quarter of 2012. Net sales are expected within a range of $250,000,000 to $260,000,000. Diluted earnings per share are expected within a range of $0.58 to $0.63.
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 first quarter of 2012. The conference call will be held at 11:00 AM 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 second quarter of 2012 stated in the paragraph above captioned "Second Quarter 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, 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 a large investment portfolio, 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. 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. When used in this release and documents referenced, the words "anticipate," "believe," "estimate," 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. In particular, readers are referred to Zebra's Form 10-K for the year ended December 31, 2011.
About Zebra Technologies
A global leader respected for innovaion and reliability, Zebra Technologies Corporation (NASDAQ: ZBRA) provides enabling technologies that allow customers to take smarter actions. Our extensive portfolio of bar code, receipt, card, kiosk and RFID printers and supplies, as well as real-time location solutions give a digital voice to assets, people and transactions that provides greater visibility into mission-critical information. For more information about Zebra's solutions, visit http://www.zebra.com.
| Contact: |
|
| Investors: |
Media: |
| Douglas A. Fox, CFA |
Kerry Kelly-Guiliano |
| Vice President, Investor Relations |
Vice President, Strategic Communications |
| and Treasurer |
F T I Consulting |
| +1 847 793 6735 |
+1 617 747 3603 |
| ZEBRA TECHNOLOGIES CORPORATION |
|||
| March 31, 2012 |
December 31, 2011 |
||
| ASSETS |
(Unaudited) |
||
| Current assets: |
|||
| Cash and cash equivalents |
$ 41,943 |
$ 36,418 |
|
| Investments and marketable securities |
175,169 |
182,398 |
|
| Accounts receivable, net |
157,114 |
155,230 |
|
| Receivable from buyer |
13,790 |
27,580 |
|
| Inventories, net |
126,119 |
133,288 |
|
| Deferred income taxes |
14,194 |
13,931 |
|
| Income tax receivable |
6,917 |
13,111 |
|
| Prepaid expenses and other current assets |
15,036 |
22,917 |
|
| Total current assets |
550,282 |
584,873 |
|
| Property and equipment at cost, less accumulated depreciation and amortization |
101,985 |
97,822 |
|
| Long-term deferred income taxes |
11,995 |
11,866 |
|
| Goodwill |
79,703 |
79,703 |
|
| Other intangibles, net |
11,897 |
12,667 |
|
| Long-term investments and marketable securities |
145,132 |
107,879 |
|
| Other assets |
4,092 |
4,196 |
|
| Total assets |
$ 905,086 |
$ 899,006 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 33,019 |
$ 33,273 |
|
| Accrued liabilities |
47,769 |
64,612 |
|
| Deferred revenue |
12,065 |
11,089 |
|
| Total current liabilities |
92,853 |
108,974 |
|
| Deferred rent |
1,496 |
1,592 |
|
| Other long-term liabilities |
11,674 |
11,515 |
|
| Total liabilities |
106,023 |
122,081 |
|
| Stockholders' equity: |
|||
| Preferred Stock |
-- |
-- |
|
| Class A Common Stock |
722 |
722 |
|
| Additional paid-in capital |
134,472 |
131,422 |
|
| Treasury stock |
(603,705) |
(596,622) |
|
| Retained earnings |
1,275,780 |
1,245,616 |
|
| Accumulated other comprehensive loss |
(8,206) |
(4,213) |
|
| Total stockholders' equity |
799,063 |
776,925 |
|
| Total liabilities and stockholders' equity |
$ 905,086 |
$ 899,006 |
|
| ZEBRA TECHNOLOGIES CORPORATION |
||||
| Three Months Ended |
||||
| March 31, 2012 |
April 2, 2011 |
|||
| Net sales: |
||||
| Net sales of tangible products |
$ 232,476 |
$ 226,120 |
||
| Revenue from services and software |
11,399 |
11,181 |
||
| Total net sales |
243,875 |
237,301 |
||
| Cost of sales |
||||
| Cost of sales of tangible products |
119,053 |
110,781 |
||
| Cost of services and software |
4,959 |
6,522 |
||
| Total cost of sales |
124,012 |
117,303 |
||
| Gross profit |
119,863 |
119,998 |
||
| Operating expenses: |
||||
| Selling and marketing |
32,114 |
28,528 |
||
| Research and development |
20,419 |
21,681 |
||
| General and administrative |
24,551 |
22,706 |
||
| Amortization of intangible assets |
770 |
835 |
||
| Exit and restructuring costs |
-- |
1,886 |
||
| Total operating expenses |
77,854 |
75,636 |
||
| Operating income |
42,009 |
44,362 |
||
| Other income (expense): |
||||
| Investment income |
592 |
560 |
||
| Foreign exchange loss |
(342) |
(294) |
||
| Other, net |
(364) |
(254) |
||
| Total other income (expense) |
(114) |
12 |
||
| Income from continuing operations before income taxes |
41,895 |
44,374 |
||
| Income taxes |
11,731 |
14,246 |
||
| Income from continuing operations |
30,164 |
30,128 |
||
| Income from discontinued operations, net of tax |
-- |
31,506 |
||
| Net income |
$ 30,164 |
$ 61,634 |
||
| Basic earnings per share: |
||||
| Income from continuing operations |
$ 0.58 |
$ 0.54 |
||
| Income from discontinued operations |
-- |
0.57 |
||
| Net income |
$ 0.58 |
$ 1.11 |
||
| Diluted earnings per share: |
||||
| Income from continuing operations |
$ 0.58 |
$ 0.54 |
||
| Income from discontinued operations |
-- |
0.56 |
||
| Net income |
$ 0.58 |
$ 1.10 |
||
| Basic weighted average shares outstanding |
51,998 |
55,353 |
||
| Diluted weighted average and equivalent shares outstanding |
52,301 |
55,774 |
||
| ZEBRA TECHNOLOGIES CORPORATION |
|||
| Three Months Ended |
|||
| March 31, 2012 |
April 2, 2011 |
||
| Net income |
$ 30,164 |
$ 61,634 |
|
| Other comprehensive income (loss): |
|||
| Unrealized losses on hedging transactions, net of income taxes |
(4,646) |
(2,756) |
|
| Unrealized holding gains (losses) on investments, net of income taxes |
570 |
(14) |
|
| Foreign currency translation adjustment |
83 |
(553) |
|
| Comprehensive income |
$ 26,171 |
$ 58,311 |
|
| ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES |
|||
| Three Months Ended |
|||
| March 31, 2012 |
April 2, 2011 |
||
| Cash flows from operating activities: |
|||
| Net income |
$ 30,164 |
$ 61,634 |
|
| Adjustments to reconcile net income to net cash provided by (used in) |
|||
| operating activities: |
|||
| Depreciation and amortization |
5,959 |
5,932 |
|
| Equity-based compensation |
3,800 |
4,488 |
|
| Excess tax benefit from equity-based compensation |
(66) |
(645) |
|
| Loss on sale of property and equipment |
83 |
9 |
|
| Gain on sale of business |
-- |
(67,213) |
|
| Deferred income taxes |
(391) |
2,540 |
|
| Changes in assets and liabilities: |
|||
| Accounts receivable, net |
(1,862) |
12,563 |
|
| Inventories, net |
7,169 |
(7,136) |
|
| Other assets |
9,395 |
(1,690) |
|
| Accounts payable |
(3,378) |
(7,150) |
|
| Accrued liabilities |
(16,881) |
(17,120) |
|
| Deferred revenue |
1,151 |
(15,749) |
|
| Income taxes |
6,135 |
27,732 |
|
| Other operating activities |
(4,725) |
(3,364) |
|
| Net cash provided by (used in) operating activities |
36,553 |
(5,169) |
|
| Cash flows from investing activities: |
|||
| Purchases of property and equipment |
(7,654) |
(3,922) |
|
| Proceeds from the sale of business |
13,790 |
164,008 |
|
| Purchases of investments and marketable securities |
(132,390) |
(382,410) |
|
| Maturities of investments and marketable securities |
81,189 |
209,509 |
|
| Proceeds from sales of investments and marketable securities |
21,748 |
88,304 |
|
| Net cash provided by (used in) investing activities |
(23,317) |
75,489 |
|
| Cash flows from financing activities: |
|||
| Purchase of treasury stock |
(9,775) |
(41,567) |
|
| Proceeds from exercise of stock options and stock purchase plan purchases |
1,998 |
2,757 |
|
| Excess tax benefit from equity-based compensation |
66 |
645 |
|
| Net cash used in financing activities |
(7,711) |
(38,165) |
|
| Effect of exchange rate changes on cash |
-- |
336 |
|
| Net increase in cash and cash equivalents |
5,525 |
32,491 |
|
| Cash balance of discontinued operations at beginning of period |
-- |
1,301 |
|
| Less: Cash balance of discontinued operations at end of period |
-- |
282 |
|
| Cash and cash equivalents at beginning of period |
36,418 |
46,175 |
|
| Cash and cash equivalents at end of period |
$ 41,943 |
$ 79,685 |
|
| Supplemental disclosures of cash flow information: |
|||
| Income taxes paid |
$ 7,956 |
$ 8,958 |
|
| ZEBRA TECHNOLOGIES CORPORATION |
|||||||||
| SALES BY PRODUCT CATEGORY |
|||||||||
| Three Months Ended |
|||||||||
| March 31, |
April 2, |
Percent |
Percent of |
Percent of |
|||||
| Product Category |
2012 |
2011 |
Change |
Net Sales - 2012 |
Net Sales – 2011 |
||||
| Hardware |
$ 181,196 |
$ 180,136 |
0.6 |
74.3 |
75.9 |
||||
| Supplies |
49,962 |
44,635 |
11.9 |
20.5 |
18.8 |
||||
| Service and software |
11,399 |
11,181 |
1.9 |
4.7 |
4.7 |
||||
| Subtotal products |
242,557 |
235,952 |
2.8 |
99.5 |
99.4 |
||||
| Shipping and handling |
1,318 |
1,349 |
(2.3) |
0.5 |
0.6 |
||||
| Total net sales |
$ 243,875 |
$ 237,301 |
2.8 |
100.0 |
100.0 |
||||
| SALES BY GEOGRAPHIC REGION |
|||||||||
| Three Months Ended |
|||||||||
| March 31, |
April 2, |
Percent |
Percent of |
Percent of |
|||||
| Geographic Region |
2012 |
2011 |
Change |
Net Sales - 2012 |
Net Sales - 2011 |
||||
| Europe, Middle East and Africa |
$ 86,121 |
$ 84,230 |
2.2 |
35.3 |
35.5 |
||||
| Latin America |
22,287 |
20,104 |
10.9 |
9.1 |
8.5 |
||||
| Asia-Pacific |
33,148 |
32,495 |
2.0 |
13.6 |
13.7 |
||||
| Total International |
141,556 |
136,829 |
3.5 |
58.0 |
57.7 |
||||
| North America |
102,319 |
100,472 |
1.8 |
42.0 |
42.3 |
||||
| Total net sales |
$ 243,875 |
$ 237,301 |
2.8 |
100.0 |
100.0 |
||||
| ZEBRA TECHNOLOGIES CORPORATION |
|||||
| Three Months Ended |
|||||
| March 31, |
April 2, |
Percent |
|||
| 2012 |
2011 |
Change |
|||
| Total printers shipped |
297,669 |
284,177 |
4.7 |
||
| Average selling price of printers shipped |
$503 |
$524 |
(4.0) |
||
SOURCE Zebra Technologies Corporation
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article