($ Millions, except percent and per-share data)1
| Q1 FY23 | Q1 FY22 | ||
GAAP Revenue | $416 | $431 | ||
GAAP Gross Margin | 40.4 | % | 40.6 | % |
GAAP Operating Loss | ($15) | ($20) | ||
GAAP Diluted EPS | ($0.76) | ($0.88) | ||
Cash Flow from Operations | ($3) | $1 | ||
Non-GAAP Revenue | $416 | $432 | ||
Non-GAAP Gross Margin | 44.9 | % | 44.8 | % |
Non-GAAP Operating Income | $34 | $52 | ||
Non-GAAP Diluted EPS | $0.37 | $0.60 | ||
Adjusted EBITDA | $42 | $61 |
INVESTOR CONTACT: Mike Iburg Vice President, Investor Relations (831) 458-7533 |
MEDIA CONTACT: Edie Kissko Vice President, Corporate Communications (213) 369-3719 |
PLANTRONICS, INC. | ||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||
(in thousands, except percentages and per share data) | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Three Months Ended | ||||
July 2, | July 3, | |||
2022 | 2021 | |||
Net revenues | ||||
Net product revenues | $ | 364,208 | $ | 371,203 |
Net services revenues | 51,351 | 59,969 | ||
Total net revenues | 415,559 | 431,172 | ||
Cost of revenues | ||||
Cost of product revenues | 231,677 | 235,196 | ||
Cost of service revenues | 15,841 | 20,787 | ||
Total cost of revenues | 247,518 | 255,983 | ||
Gross profit | 168,041 | 175,189 | ||
% of total net revenues | 40.4 | % | 40.6 | % |
Operating expenses | ||||
Research, development, and engineering | 51,269 | 45,466 | ||
Selling, general, and administrative | 131,903 | 120,734 | ||
Restructuring and other related charges | (49) | 28,972 | ||
Total operating expenses | 183,123 | 195,172 | ||
Operating loss | (15,082) | (19,983) | ||
% of total net revenues | (3.6) | % | (4.6) | % |
Interest expense | 16,121 | 21,782 | ||
Other non-operating expense (income), net | 2,922 | (692) | ||
Loss before income taxes | (34,125) | (41,073) | ||
Income tax benefit | (1,038) | (4,262) | ||
Net loss | $ | (33,087) | $ | (36,811) |
% of total net revenues | (8.0) | % | (8.5) | % |
Basic and diluted loss per common share | $ | (0.76) | $ | (0.88) |
Basic and diluted shares used in computing loss per common share | 43,428 | 42,061 | ||
Effective tax rate | 3.0 | % | 10.4 | % |
PLANTRONICS, INC. | ||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||
(in thousands) | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
July 2, | April 2, | |||
2022 | 2022 | |||
ASSETS | ||||
Cash and cash equivalents | $ | 142,362 | $ | 170,000 |
Short-term investments | 11,908 | 13,703 | ||
Total cash and cash equivalents and short-term investments | 154,270 | 183,703 | ||
Accounts receivable, net | 274,939 | 277,924 | ||
Inventory, net | 245,189 | 234,102 | ||
Other current assets | 90,918 | 83,410 | ||
Total current assets | 765,316 | 779,139 | ||
Property, plant, and equipment, net | 124,052 | 127,021 | ||
Purchased intangibles, net | 202,437 | 230,478 | ||
Goodwill | 796,216 | 796,216 | ||
Deferred tax and other non-current assets | 282,678 | 292,500 | ||
Total assets | $ | 2,170,699 | $ | 2,225,354 |
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||
Accounts payable | $ | 173,252 | $ | 168,610 |
Accrued liabilities | 317,219 | 338,836 | ||
Total current liabilities | 490,471 | 507,446 | ||
Long-term debt, net | 1,501,337 | 1,500,283 | ||
Long-term income taxes payable | 66,770 | 68,082 | ||
Other non-current liabilities | 118,515 | 129,381 | ||
Total liabilities | 2,177,093 | 2,205,192 | ||
Stockholders' (deficit) equity | (6,394) | 20,162 | ||
Total liabilities and stockholders' (deficit) equity | $ | 2,170,699 | $ | 2,225,354 |
PLANTRONICS, INC. | ||||
SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||
(in thousands) | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Three Months Ended | ||||
July 2, | July 3, | |||
2022 | 2021 | |||
Cash flows from operating activities | ||||
Net loss | $ | (33,087) | $ | (36,811) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||
Depreciation and amortization | 36,577 | 39,833 | ||
Amortization of debt issuance cost | 1,054 | 2,937 | ||
Stock-based compensation | 14,594 | 10,416 | ||
Deferred income taxes | 1,243 | (5,943) | ||
Provision for excess and obsolete inventories | 1,027 | 5,310 | ||
Restructuring and other related charges | (49) | 28,972 | ||
Cash payments for restructuring charges | (2,859) | (12,230) | ||
Other operating activities | 1,323 | 920 | ||
Changes in assets and liabilities | ||||
Accounts receivable, net | 2,763 | (3,758) | ||
Inventory, net | (11,913) | 6,326 | ||
Current and other assets | 9,961 | (3,919) | ||
Accounts payable | 6,158 | 12,515 | ||
Accrued liabilities | (22,962) | (40,265) | ||
Income taxes | (6,811) | (3,454) | ||
Net cash (used in) provided by operating activities | (2,981) | 849 | ||
Cash flows from investing activities | ||||
Purchases of short-term investments | (65) | (404) | ||
Capital expenditures | (7,132) | (6,052) | ||
Other investing activities | - | (4,000) | ||
Net cash used in investing activities | (7,197) | (10,456) | ||
Cash flows from financing activities | ||||
Employees' tax withheld and paid for restricted stock and restricted stock units | (14,243) | (10,225) | ||
Proceeds from issuances under stock-based compensation plans | 10 | 9 | ||
Repayments of long-term debt | - | (480,689) | ||
Net cash used in financing activities | (14,233) | (490,905) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,227) | 805 | ||
Net decrease in cash and cash equivalents and restricted cash | (27,638) | (499,707) | ||
Cash and cash equivalents and restricted cash at beginning of period | 170,000 | 696,468 | ||
Cash and cash equivalents and restricted cash at end of period | $ | 142,362 | $ | 196,761 |
PLANTRONICS, INC. | ||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||
(in thousands, except percentages) | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||
Three Months Ended | ||||
July 2, | July 3, | |||
2022 | 2021 | |||
GAAP Net revenues | $ | 415,559 | $ | 431,172 |
Deferred revenue purchase accounting | 328 | 1,260 | ||
Non-GAAP Net revenues | $ | 415,887 | $ | 432,432 |
GAAP Gross profit | $ | 168,041 | $ | 175,189 |
Purchase accounting amortization | 16,472 | 16,238 | ||
Deferred revenue purchase accounting | 328 | 1,260 | ||
Acquisition costs | 507 | - | ||
Stock-based compensation | 1,503 | 1,127 | ||
Non-GAAP Gross profit | $ | 186,851 | $ | 193,814 |
Non-GAAP Gross profit % | 44.9% | 44.8% | ||
GAAP Research, development, and engineering | $ | 51,269 | $ | 45,466 |
Stock-based compensation | (3,100) | (2,007) | ||
Acquisition costs | (355) | - | ||
Non-GAAP Research, development, and engineering | $ | 47,814 | $ | 43,459 |
GAAP Selling, general, and administrative | $ | 131,903 | $ | 120,734 |
Purchase accounting amortization | (11,569) | (14,195) | ||
Stock-based compensation | (9,991) | (7,282) | ||
Acquisition costs | (6,679) | - | ||
Deferred compensation mark to market | 1,863 | (994) | ||
Other adjustments | (12) | - | ||
Non-GAAP Selling, general, and administrative | $ | 105,515 | $ | 98,263 |
PLANTRONICS, INC. | ||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||
(in thousands) | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED) | ||||
Three Months Ended | ||||
July 2, | July 3, | |||
2022 | 2021 | |||
GAAP Operating expenses | $ | 183,123 | $ | 195,172 |
Purchase accounting amortization | (11,569) | (14,195) | ||
Stock-based compensation | (13,091) | (9,289) | ||
Acquisition costs | (7,034) | - | ||
Restructuring and other related charges | 49 | (28,972) | ||
Deferred compensation mark to market | 1,863 | (994) | ||
Other adjustments | (12) | - | ||
Non-GAAP Operating expenses | $ | 153,329 | $ | 141,722 |
GAAP Operating loss | $ | (15,082) | $ | (19,983) |
Purchase accounting amortization | 28,041 | 30,433 | ||
Stock-based compensation | 14,594 | 10,416 | ||
Acquisition costs | 7,541 | - | ||
Restructuring and other related charges | (49) | 28,972 | ||
Deferred revenue purchase accounting | 328 | 1,260 | ||
Deferred compensation mark to market | (1,863) | 994 | ||
Other adjustments | 12 | - | ||
Non-GAAP Operating income | $ | 33,522 | $ | 52,092 |
PLANTRONICS, INC. | ||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||
(in thousands, except per share data) | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED) | ||||
Three Months Ended | ||||
July 2, | July 3, | |||
2022 | 2021 | |||
GAAP Net loss | $ | (33,087) | $ | (36,811) |
Purchase accounting amortization | 28,041 | 30,433 | ||
Stock-based compensation | 14,594 | 10,416 | ||
Acquisition costs | 7,541 | - | ||
Restructuring and other related charges | (49) | 28,972 | ||
Deferred revenue purchase accounting | 328 | 1,260 | ||
Deferred compensation mark to market | (3) | 4 | ||
Other adjustments | 12 | - | ||
Income tax effect of above items | 1,717 | (5,381) | ||
Income tax effect of unusual tax items | (2,600) | (2,377) | ||
Non-GAAP Net income | $ | 16,494 | $ | 26,516 |
GAAP Diluted loss per common share | $ | (0.76) | $ | (0.88) |
Purchase accounting amortization | 0.62 | 0.69 | ||
Stock-based compensation | 0.32 | 0.24 | ||
Acquisition costs | 0.17 | - | ||
Restructuring and other related charges | - | 0.66 | ||
Deferred revenue purchase accounting | 0.01 | 0.03 | ||
Deferred compensation mark to market | - | - | ||
Other adjustments | - | - | ||
Income tax effect | (0.02) | (0.18) | ||
Effect of anti-dilutive securities1
| 0.03 | 0.04 | ||
Non-GAAP Diluted earnings per common share | $ | 0.37 | $ | 0.60 |
Shares used in diluted (loss) earnings per common share calculation: | ||||
GAAP | 43,428 | 42,061 | ||
Non-GAAP | 45,063 | 43,843 | ||
PLANTRONICS, INC. | ||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||||
(in thousands) | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED) | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
July 3, | October 2, | January 1, | April 2, | July 2, | July 2, | |||||||
2021 | 2021 | 2022 | 2022 | 2022 | 2022 | |||||||
GAAP Net income (loss) | $ | (36,811) | $ | 96,785 | $ | (11,164) | $ | (30,893) | $ | (33,087) | $ | 21,641 |
Income tax benefit | (4,262) | (102,567) | (9,604) | (3,722) | (1,038) | (116,931) | ||||||
Interest expense | 21,782 | 16,141 | 15,948 | 15,840 | 16,121 | 64,050 | ||||||
Other non-operating (income) expense, net | (692) | 23 | (995) | 1,955 | 2,922 | 3,905 | ||||||
Deferred revenue purchase accounting | 1,260 | 1,054 | 907 | 468 | 328 | 2,757 | ||||||
Stock-based compensation | 10,416 | 11,573 | 12,225 | 13,946 | 14,594 | 52,338 | ||||||
Acquisition costs | - | - | - | 9,530 | 7,541 | 17,071 | ||||||
Restructuring and other related charges | 28,972 | 2,607 | 2,398 | 960 | (49) | 5,916 | ||||||
Deferred compensation mark to market | 994 | 13 | 910 | (908) | (1,863) | (1,848) | ||||||
Other adjustments | - | (376) | - | (315) | 12 | (679) | ||||||
Depreciation and amortization | 39,833 | 36,292 | 36,671 | 36,330 | 36,577 | 145,870 | ||||||
Adjusted EBITDA | $ | 61,492 | $ | 61,545 | $ | 47,296 | $ | 43,191 | $ | 42,058 | $ | 194,090 |
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Plantronics Inc. published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 20:41:45 UTC.