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Netflix, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30,
2014
June 30,
2014
September 30,
2013 (1)
September 30,
2014
September 30,
2013 (1)
Revenues $ 1,409,432 $1,340,407 $ 1,105,999 $ 4,019,928 $ 3,199,332
Cost of revenues 954,394 914,848 798,900 2,738,428 2,296,526
Marketing 145,654 120,763 108,228 403,515 341,925
Technology and development 120,953 115,182 95,540 346,445 280,641
General and administrative 78,024 60,014 46,211 193,938 134,181
Operating income 110,407 129,600 57,120 337,602 146,059
Other income (expense):
Interest expense (13,486) (13,328) (7,436) (36,866) (21,704)
Interest and other income (expense) 616 1,100 (193) 3,117 (2,156)
Loss on extinguishment of debt — — — — (25,129)
Income before income taxes 97,537 117,372 49,491 303,853 97,070
Provision for income taxes 38,242 46,354 17,669 120,425 33,088
Net income $ 59,295 $ 71,018 $ 31,822 $ 183,428 $ 63,982
Earnings per share:
Basic $ 0.99 $ 1.18 $ 0.54 $ 3.06 $ 1.11
Diluted $ 0.96 $ 1.15 $ 0.52 $ 2.97 $ 1.06
Weighted-average common shares outstanding:
Basic 60,171 59,996 59,108 59,996 57,769
Diluted 61,820 61,634 60,990 61,669 60,578
(1) Certain prior period amounts have been reclassified from "Marketing" to "Cost of revenues" to conform to current period
presentation.
11
Netflix, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except share and par value data)
As of
September 30,
2014
December 31,
2013
Assets
Current assets:
Cash and cash equivalents $ 1,183,217 $ 604,965
Short-term investments 483,602 595,440
Current content library, net 2,006,981 1,706,421
Other current assets 149,682 151,937
Total current assets 3,823,482 3,058,763
Non-current content library, net 2,631,882 2,091,071
Property and equipment, net 144,147 133,605
Other non-current assets 178,818 129,124
Total assets $ 6,778,329 $ 5,412,563
Liabilities and Stockholders' Equity
Current liabilities:
Current content liabilities $ 2,074,766 $ 1,775,983
Accounts payable 150,374 108,435
Accrued expenses 70,559 54,018
Deferred revenue 252,956 215,767
Total current liabilities 2,548,655 2,154,203
Non-current content liabilities 1,510,403 1,345,590
Long-term debt 900,000 500,000
Other non-current liabilities 94,397 79,209
Total liabilities 5,053,455 4,079,002
Stockholders' equity:
Common stock, $0.001 par value; 160,000,000 shares authorized at September 30,
2014 and December 31, 2013; 60,246,379 and 59,607,001 issued and
outstanding at September 30, 2014 and December 31, 2013, respectively 60 60
Additional paid-in capital 987,256 777,441
Accumulated other comprehensive income 1,645 3,575
Retained earnings 735,913 552,485
Total stockholders' equity 1,724,874 1,333,561
Total liabilities and stockholders' equity $ 6,778,329 $ 5,412,563
12
Netflix, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Three Months Ended Nine Months Ended
September 30,
2014
June 30,
2014
September 30,
2013
September 30,
2014
September 30,
2013
Cash flows from operating activities:
Net income $ 59,295 $ 71,018 $ 31,822 $ 183,428 $ 63,982
Adjustments to reconcile net income to net cash (used in) provided
by operating activities:
Additions to streaming content library (1,202,484) (813,314) (878,314) (2,765,197) (2,063,709)
Change in streaming content liabilities 346,752 78,359 310,191 467,355 327,175
Amortization of streaming content library 686,154 639,037 553,394 1,925,926 1,549,384
Amortization of DVD content library 18,269 16,923 17,546 51,313 53,492
Depreciation and amortization of property, equipment and
intangibles
14,357 12,977 11,452 39,716 35,529
Stock-based compensation expense 29,878 29,285 18,477 84,988 54,178
Excess tax benefits from stock-based compensation (21,060) (14,628) (20,492) (68,420) (52,475)
Other non-cash items 3,360 3,251 1,994 8,807 4,932
Loss on extinguishment of debt — — — — 25,129
Deferred taxes (7,892) (16,569) (2,424) (37,564) (11,212)
Changes in operating assets and liabilities:
Other current assets 12,960 (20,685) 9,920 27,341 37,955
Accounts payable 13,003 (3,086) (5,877) 32,729 6,004
Accrued expenses (6,980) 59,008 (11,451) 51,586 (5,089)
Deferred revenue 11,626 11,315 9,252 37,189 26,351
Other non-current assets and liabilities 5,323 3,133 (10,797) 15,747 4,760
Net cash (used in) provided by operating activities (37,439) 56,024 34,693 54,944 56,386
Cash flows from investing activities:
Acquisition of DVD content library (15,530) (20,981) (15,471) (51,425) (50,687)
Purchases of property and equipment (21,032) (19,869) (10,828) (54,235) (31,034)
Other assets 341 1,129 (1,329) 1,765 3,808
Purchases of short-term investments (123,883) (170,908) (116,116) (355,337) (497,789)
Proceeds from sale of short-term investments 107,568 89,662 81,185 340,278 196,392
Proceeds from maturities of short-term investments 32,125 92,014 48,890 127,229 58,720
Net cash (used in) provided by investing activities (20,411) (28,953) (13,669) 8,275 (320,590)
Cash flows from financing activities:
Proceeds from issuance of common stock 9,877 14,469 25,561 56,794 93,553
Proceeds from issuance of debt — — — 400,000 500,000
Issuance costs — (353) — (7,080) (9,414)
Redemption of debt — — — — (219,362)
Excess tax benefits from stock-based compensation 21,060 14,628 20,492 68,420 52,475
Principal payments of lease financing obligations (275) (271) (258) (813) (916)
Net cash provided by financing activities 30,662 28,473 45,795 517,321 416,336
Effect of exchange rate changes on cash and cash equivalents (3,839) 1,250 1,559 (2,288) (3,367)
Net (decrease) increase in cash and cash equivalents (31,027) 56,794 68,378 578,252 148,765
Cash and cash equivalents, beginning of period 1,214,244 1,157,450 370,678 604,965 290,291
Cash and cash equivalents, end of period $ 1,183,217 $ 1,214,244 $ 439,056 $ 1,183,217 $ 439,056
Three Months Ended Nine Months Ended
September 30,
2014
June 30,
2014
September 30,
2013
September 30,
2014
September 30,
2013
Non-GAAP free cash flow reconciliation:
Net cash (used in) provided by operating activities $ (37,439) $ 56,024 $ 34,693 $ 54,944 $ 56,386
Acquisition of DVD content library (15,530) (20,981) (15,471) (51,425) (50,687)
Purchases of property and equipment (21,032) (19,869) (10,828) (54,235) (31,034)
Other assets 341 1,129 (1,329) 1,765 3,808
Non-GAAP free cash flow $ (73,660) $ 16,303 $ 7,065 $ (48,951) $ (21,527)
13
Netflix, Inc.
Segment Information
(unaudited)
(in thousands)
As of / Three Months Ended As of/ Nine Months Ended
September 30,
2014
June 30,
2014
September 30,
2013 (1)
September 30,
2014
September 30,
2013 (1)
Domestic Streaming
Total members at end of period 37,219 36,244 31,092 37,219 31,092
Paid members at end of period 36,265 35,085 29,925 36,265 29,925
Revenues $ 877,150 $ 838,225 $ 701,083 $ 2,513,992 $ 2,010,821
Cost of revenues 565,251 546,223 473,965 1,628,568 1,366,897
Marketing 61,045 64,727 60,637 206,030 194,779
Contribution profit 250,854 227,275 166,481 679,394 449,145
International Streaming
Total members at end of period 15,843 13,801 9,188 15,843 9,188
Paid members at end of period 14,389 12,907 8,084 14,389 8,084
Revenues $ 345,685 $ 307,461 $ 183,051 $ 920,264 $ 490,972
Cost of revenues 291,942 266,697 209,811 803,906 561,103
Marketing 84,609 56,036 47,537 197,485 146,919
Contribution profit (loss) (30,866) (15,272) (74,297) (81,127) (217,050)
Domestic DVD
Total members at end of period 5,986 6,261 7,148 5,986 7,148
Paid members at end of period 5,899 6,167 7,014 5,899 7,014
Revenues $ 186,597 $ 194,721 $ 221,865 $ 585,672 $ 697,539
Cost of revenues 97,201 101,928 115,124 305,954 368,526
Marketing — — 54 — 227
Contribution profit 89,396 92,793 106,687 279,718 328,786
Consolidated
Revenues $ 1,409,432 $ 1,340,407 $ 1,105,999 $ 4,019,928 $ 3,199,332
Cost of revenues 954,394 914,848 798,900 2,738,428 2,296,526
Marketing 145,654 120,763 108,228 403,515 341,925
Contribution profit 309,384 304,796 198,871 877,985 560,881
Other operating expenses 198,977 175,196 141,751 540,383 414,822
Operating income 110,407 129,600 57,120 337,602 146,059
Other income (expense) (12,870) (12,228) (7,629) (33,749) (23,860)
Loss on extinguishment of debt — — — — (25,129)
Provision for income taxes 38,242 46,354 17,669 120,425 33,088
Net income $ 59,295 $ 71,018 $ 31,822 $ 183,428 $ 63,982
(1) Certain prior period amounts have been reclassified from "Marketing" to "Cost of revenues" to conform to current period
presentation.
Newell Rubbermaid to Webcast Second Quarter 2014 Earnings Results
GlobeNewswire Newell Rubbermaid
3 hours ago
ATLANTA, July 10, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid (NWL) today announced its second quarter 2014 earnings results will be released Thursday, July 31, prior to market open and will be followed by a live webcast at 8:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of approximately $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519
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AZZ incorporated Completes the Acquisition of a Minnesota Galvanizing Facility
Acquisition strengthens market leadership position; Increases to 36 the number of galvanizing facilities in North America
PR Newswire AZZ incorporated
June 30, 2014 4:50 PM
FORT WORTH, Texas, June 30, 2014 /PRNewswire/ -- AZZ incorporated (AZZ), a global provider of electrical products and highly engineered services and a provider of galvanizing services in North America, today announced that it has successfully completed a transaction to acquire substantially all of the assets of Zalk Steel & Supply Co., a Minneapolis, Minnesota-based galvanizing company that has served its customers in the upper Midwest of the United States since 1955. The acquisition of Zalk Steel & Supply, a small-kettle niche provider of galvanizing services, brings to 36 the number of galvanizing plants in the Galvanizing Services Segment of AZZ, and further enhances AZZ's position as the market leader in the North American galvanizing industry.
Tom Ferguson, president and chief executive officer of AZZ incorporated, said "We are extremely pleased to make this strategic acquisition that allows us to expand our network of galvanizers and broadens our service capabilities in the Midwestern U.S. with yet another successful operating plant. Operated with pride and integrity since its founding in 1955, Zalk Steel & Supply has a rich heritage of providing a superior level of service and support to their customers. That pride and integrity is consistent with the philosophy and methodology that AZZ employs in our current operations and we look forward to building on this proud tradition of customer service and quality. We anticipate that the acquisition of Zalk will be accretive within the first year of operation."
AZZ incorporated is a global provider of specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, and industrial markets as well as a leading provider of hot dip galvanizing services to the North American steel fabrication market.
Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. This release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand and response to products and services offered by AZZ, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the hot dip galvanizing markets; prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; changes in the economic conditions of the various markets that AZZ serves, foreign and domestic, customer request delays of shipments, acquisition opportunities, currency exchange rates, adequacy of financing, and availability of experienced management employees to implement AZZ's growth strategy. AZZ has provided additional information regarding risks associated with the business in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2014 and other filings with the SEC, available for viewing on AZZ's website at www.azz.com and on the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Paul Fehlman, Senior Vice President – Finance and CFO
AZZ incorporated 817-810-0095
Internet: www.azz.com
Lytham Partners 602-889-9700
Joe Dorame, Joe Diaz or Robert Blum
Internet: www.lythampartners.com
AZZ incorporated Reports Financial Results for the First Quarter of Fiscal Year 2015
Reports First Quarter 2015 EPS of $0.58
Announces Record Quarterly Sales of $216.1 million, up $32.9 million or 18.0% compared to First Quarter Fiscal 2014
Backlog finishes at $309.0 million, compared to $270.6 million for First Quarter Fiscal 2014, an increase of 14.2%
Consolidated operating margins decline to 12.9% vs. 13.1% in First Quarter Fiscal 2014
Company reaffirms FY 2015 EPS target range of $2.40 to $2.80 per share and target sales range of $850 million to $900 million
Company declares quarterly dividend of $0.14 per share
PR Newswire AZZ incorporated
17 hours ago
FORT WORTH, Texas, June 27, 2014 /PRNewswire/ -- AZZ incorporated (AZZ), a global provider of electrical products and highly engineered services and a leading provider of galvanizing services in North America, today announced unaudited financial results for the three month period ended May 31, 2014. Revenues for the first quarter of fiscal year 2015 were $216.1 million compared to $183.2 million for the same quarter last year, an increase of 18.0 percent. Net income for the first quarter was $14.9 million, or $0.58 per diluted share, compared to net income of $14.5 million, or $0.57 per diluted share, for the same quarter last year.
Earnings during the quarter included a pretax gain of $2.4 million from an insurance settlement relating to losses incurred at our Joliet galvanizing facility. Adjusted earnings without this gain would have been $0.52 per share for the first quarter of fiscal 2015. During the prior year's first quarter AZZ recorded non-recurring items including income related to a favorable settlement of a lawsuit, expenses from acquisitions, and operating losses at our Joliet facility. Adjusted earnings per share for the first quarter of fiscal 2014 without these non-recurring items would have been $0.56 per share. Included with the attached financial tables is a reconciliation of these nonrecurring items.
AZZ's backlog at the end of the first quarter of fiscal 2015 was $309.0 million, compared to $270.6 million at the end of the first quarter of fiscal year 2014. Of the $309.0 million backlog, 27.0 percent will be delivered outside of the U.S. Incoming orders for the first quarter of fiscal 2015 were $200.2 million while revenue for the quarter totaled $216.1 million, resulting in a book to ship ratio of 93.0 percent.
Revenues for AZZ's Energy Segment for the first quarter of fiscal 2015 were $130.5 million as compared to $96.5 million for the same quarter last year, an increase of 35.3 percent. This increase is mainly attributable to the acquisition of WSI LLC (together with its subsidiaries, "WSI") on March 29, 2013 which contributed $72.9 million in revenues for the full quarter as compared to $41.5 million for two months in the same quarter last year. Operating income for the segment increased 5.9 percent to $13.8 million compared to $13.0 million for the same period last year. The increase in year-over-over operating income is also attributable to the acquisition of WSI which provided $6.9 million in operating income as compared to $3.3 million in the same period last year. Excluding the WSI acquisition, operating income decreased $2.7 million. Operating margins for the first quarter of fiscal 2015 were 10.6 percent as compared to 13.5 percent in the same period last year. Excluding the acquisition of WSI, first quarter fiscal year 2015 Energy Segment operating margins would have been 12.1 percent.
Revenues for AZZ's Galvanizing Service Segment for the first quarter of fiscal year 2015 were $85.6 million, compared to $86.7 million in the same period last year, a decrease of 1.3 percent. Operating income was $22.0 million as compared to $21.5 million in the same period last year, an increase of 2.3 percent. As mentioned earlier, segment operating income included a $2.4 million gain from the settlement of insurance related to the fire at our Joliet facility. These proceeds were recorded as an offset to cost of sales during the first quarter of fiscal 2015 as they were related to reimbursement for business interruption. During the first quarter of fiscal 2014, a loss was recorded in the amount of $0.8 million due to the fire at our Joliet facility. These gains and losses are included in the Galvanizing Services Segment operating income for segment reporting purposes. Without these non-recurring items, the Galvanizing Services Segment operating income would have been $19.6 million for the first quarter of fiscal 2015 and $22.3 million for the same period last year. Operating margins without these non-recurring items would have been 22.9% and 25.7%, respectively, for the three months ended May 31, 2014 and 2013. Margins were negatively impacted by decreases in the electric utility market, primarily solar, and higher overhead costs.
Tom Ferguson, president and chief executive officer of AZZ incorporated, said, "Financial results for the quarter were as anticipated with revenue hitting record levels at $216.1 million on the strength of a full quarterly contribution from WSI compared to just two months in last year's comparable quarter. Increased quoting activity and the current backlog in our Energy Segment gives us confidence that the latter half of the fiscal year continues to look promising. Within the Energy Segment our Industrial platform gained momentum, particularly in the petrochemical and refining market; and our Electrical platform faced mixed markets, but saw growth in enclosures and switchgear."
"Activity in the Galvanizing Services Segment is approaching more historical operating levels after experiencing severe winter conditions. We are also expanding the focus of our Galvanizing services segment to include other metal finishing technologies that we expect will create new opportunities and enhance our industry position as the leading corrosion protection solutions provider in North America."
Mr. Ferguson concluded, "I am appreciative of the efforts of all of our employees and their continued commitment to operational excellence and to the success of AZZ. I am encouraged that we have a solid portfolio of products and innovative technologies to successfully compete and attract larger market share. Going forward we will continue to leverage our sales teams across all of our Energy segment businesses in North America; aggressively expand our business internationally; streamline our platforms and grow our Galvanizing business, both organically and with targeted acquisitions. We see a large number of untapped opportunities that will permit us to continue to grow the Company in the coming years."
As previously noted, the Company's shipments are typically related to the completion of projects. Because of that, financial results, on a quarterly basis, are not of a linear nature and that variability can provide a distorted picture of the Company's performance on a quarter-over-quarter basis. However, based upon the evaluation of information currently available, management continues to anticipate fiscal year 2015 gross revenues to be in the range of $850 to $900 million and its earnings to be in the range of $2.40 and $2.80 per diluted share for the year.
Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.14 per share cash dividend on the Company's common stock outstanding. The dividend will be paid at the close of business on July 25, 2014, to shareholders of record on July 11, 2014.
AZZ incorporated will conduct a conference call to discuss financial results for the first quarter of fiscal year 2015 at 11:00 A.M. ET on Friday, June 27, 2014. Interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789 (international). The call will be web cast via the Internet at http://www.azz.com/investor-relations. A replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088 (international), confirmation #10048014 or for 30 days at http://www.azz.com/investor-relations.
AZZ incorporated is a global provider of specialty electrical equipment and highly engineered services to the power generation, transmission, distributions, and industrial markets as well as a leading provider of hot dip galvanizing services to the North American steel fabrication market.
Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. This release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand and response to products and services offered by AZZ, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the hot dip galvanizing markets; prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; changes in the economic conditions of the various markets that AZZ serves, foreign and domestic, customer requested delays of shipments, acquisition opportunities, currency exchange rates, adequacy of financing, and availability of experienced management and employees to implement AZZ's growth strategy. AZZ has provided additional information regarding risks associated with the business in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2014 and other filings with the SEC, available for viewing on AZZ's website at www.azz.com and on the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
Paul Fehlman, Senior Vice President – Finance and CFO
AZZ incorporated 817-810-0095
Internet: www.azz.com
Lytham Partners 602-889-9700
Joe Dorame or Robert Blum
Internet: www.lythampartners.com
AZZ incorporated
Condensed Consolidated Statement of Income
(in thousands except per share amounts)
Three Months Ended
May 31, 2014
May 31, 2013
(unaudited)
(unaudited)
Net sales
$216,126
$183,175
Cost of Sales
160,738
132,460
Gross Margin
55,389
50,715
Selling, General and Administrative
27,541
26,687
Operating Income
27,847
24,028
Interest Expense
4,209
4,478
Net (Gain) Loss on Sale or Insurance Settlement of Property, Plant and Equipment
(27)
(23)
Other (Income)
(31)
(3,828)
Income before Income Taxes
$23,696
$23,402
Income Tax Expense
8,771
8,855
Net income
$14,925
$14,547
Earnings Per Common Share
Basic
$0.58
$0.57
Diluted
$0.58
$0.57
Diluted Average Shares Outstanding
25,739
25,655
Segment Reporting
(in thousands)
Three Months Ended
May 31, 2014
May 31, 2013
(unaudited)
(unaudited)
Net Sales:
Energy
$130,521
$96,466
Galvanizing Services
85,605
86,709
$216,126
$183,175
Segment Operating Income:
Energy
$13,812
$13,048
Galvanizing Services
21,990
25,699
Total Segment Operating Income
$35,802
$38,747
Condensed Consolidated Balance Sheet
(in thousands)
May 31, 2014
February 28, 2014
(unaudited)
(unaudited)
Assets:
Current Assets
$329,929
$296,181
Net Property, Plant and Equipment
197,416
197,639
Other Assets, Net
456,194
459,433
Total Assets
$983,539
$953,253
Liabilities and Shareholders' Equity:
Current Liabilities
$158,005
$144,016
Long Term Debt Due After One Year
378,607
384,768
Long Term Liabilities Due After One Year
9,121
9,121
Other Liabilities
45,865
39,435
Shareholders' Equity
391,941
375,913
Total Liabilities and Shareholders' Equity
$983,539
$953,253
AZZ incorporated
Non-GAAP Disclosure
Adjusted Earning and Adjusted Earnings Per Share
Adjusted Earnings and Adjusted Earnings Per Share
In addition to reporting financial results in accordance with GAAP, AZZ has provided adjusted earnings and adjusted earnings per share, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency comparison of operating results across a broad spectrum of companies, which provides a more complete understanding of AZZ's financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as adjusted earnings and adjusted earnings per share, to assess operating performance and that such measures may highlight trends in the Company's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP.
The following table provides a reconciliation for the three month period ended May 31, 2014 and 2013 between net income and diluted earnings per share calculated in accordance with GAAP to adjusted earnings and adjusted per share, respectively, which are shown net of tax (dollars in thousands, except per share data):
Three Months Ended May 31,
2014
2013
(in thousands, except EPS)
Per Diluted Share
Per Diluted Share
Net Income and Diluted Earnings Per Share
$14,925
$0.58
$14,457
$0.57
Adjustments (Net of Tax)
Joliet Facility Fire Operating Loss
-
-
495
0.02
Joliet Facility Fire-Business Interruption Insurance Proceeds
(1,505)
(0.06)
-
-
Law Suit Settlement
-
-
(2,611)
(0.10)
Acquisition Related Expense
-
-
1,981
0.07
Adjusted Earnings and Adjusted Earnings Per Share
$13,420
$0.52
$14,322
$0.56
Rates
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Nathan's Famous, Inc. Reports Year-End And Fourth Quarter Results
PR Newswire Nathan's Famous, Inc.
June 13, 2014 8:30 AM
JERICHO, N.Y., June 13, 2014 /PRNewswire/ -- Nathan's Famous, Inc. (NATH) today reported results for its fiscal year and fiscal quarter ended March 30, 2014.
For the fiscal year ended March 30, 2014:
Revenues increased by 15.9% to $82,927,000, as compared to $71,543,000 during the fifty-three weeks ended March 31, 2013;
Net income increased by 11.5% to $8,327,000 as compared to $7,468,000 for the fifty-three weeks ended March 31, 2013; and
Earnings per diluted share increased by 11.0% to $1.81 as compared to $1.63 for the fifty-three weeks ended March 31, 2013.
For the fourth quarter ended March 30, 2014:
Revenues increased by 15.7% to $17,331,000, as compared to $14,976,000 during the fourteen weeks ended March 31, 2013;
Net income was $1,218,000 as compared to $1,555,000 for the fourteen weeks ended March 31, 2013; and
Earnings per diluted share were $0.27 as compared to $0.34 for the fourteen weeks ended March 31, 2013.
The Company also reported the following:
In March 2014, our new license agreement commenced with John Morrell & Co. replacing SMG, Inc. as Nathan's exclusive licensee to manufacture and sell Nathan's branded hot dog, sausage and corned beef products at retail. John Morrell & Co began initial shipments during the third week of March 2014. We expect to begin realizing the financial benefits of this new agreement in our first fiscal quarter ending in June 2014. As previously disclosed, we believe the financial terms of the John Morrell agreement are more advantageous to us compared to the financial terms of the previous SMG agreement. These improved terms include royalties of 10.8% of net sales, compared to approximately 4.5% of net sales under the SMG agreement, and significant minimum annual royalty guarantees. Under the John Morrell Agreement, the minimum guarantee for the first year is $10 Million, and we believe that actual royalties shall exceed the minimum. Royalties earned under the SMG agreement over the last 12 months of the SMG agreement were $5,323,000.
License royalties pursuant to all license agreements were $8,513,000 during the fifty-two weeks ended March 30, 2014, as compared to $8,571,000 during the fifty-three weeks ended March 31, 2013.
Sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased by 20.0% to $51,877,000 during the fifty-two weeks ended March 30, 2014, as compared to sales of $43,214,000 during the fifty-three weeks ended March 31, 2013. Currently, products are being distributed throughout all 50 states in channels that include restaurant systems, convenience stores, travel centers, sports stadiums, entertainment venues, colleges and universities and vending.
Sales from the Company-owned restaurants were $13,231,000 during the fifty-two weeks ended March 30, 2014 as compared to $13,403,000 during the fifty-three weeks ended March 31, 2013; the decline in sales was due to the following: (1) Our Flagship Coney Island restaurant, which was severely damaged by Superstorm Sandy, reopened on May 20, 2013, losing eight (8) weeks of the spring season during the fiscal 2014 period, compared to the post-Sandy closure of twenty-two (22) weeks from November 2012 through March 2013 when sales at the restaurant are lower; and (2) The temporary closing of our Yonkers restaurant for redevelopment from December 2012 until reopening in November 2013. We estimate these two factors negatively impacted the sales comparison by approximately $2,087,000.
Sales at our two Coney Island locations were approximately $876,000 higher in the aggregate for the comparative weeks of operations during the fiscal year ended March 30, 2014 as compared to the prior fiscal year. Sales at our seasonal Boardwalk restaurant in Coney Island were approximately 16.8% higher during the thirty weeks of operations during the fiscal year ended March 30, 2014 as compared to the fiscal year ended March 31, 2013.
Gross profit decreased to 19.0% of sales during the fifty-two weeks ended March 30, 2014, as compared to 20.8% of sales during the fifty-three weeks ended March 31, 2013 due primarily to the impact of the higher cost of beef on our Branded Product Program. During the fiscal 2014 period, the cost of our beef products were approximately 6.7% higher than the fiscal 2013 period due primarily to the increase in the beef trimmings markets during the fiscal year. We have taken steps to pass the recent cost increases on through price increases, but there can be no assurance we will be successful in doing so.
Revenues from franchise operations were $5,718,000 during the fifty-two weeks ended March 30, 2014, as compared to $5,842,000 during the fifty-three weeks ended March 31, 2013. We opened 56 new franchised units during the fifty-two weeks ended March 30, 2014, including eight Branded Menu Program outlets. Franchise sales were negatively impacted due to the unusually harsh winter weather this year.
Nathan's executed Master Development Agreements for the development of Nathan's restaurants and retail distribution throughout Costa Rica and the City of Lisbon, Portugal.
Nathan's realized a gain of $2,774,000 during the fifty-two weeks ended March 30, 2014 in connection with the settlement of its property damage and business interruption claims relating to Superstorm Sandy.
Nathan's recognized an impairment charge of $400,000 in connection with a long-term investment.
About Nathan's Famous
Nathan's is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Cayman Islands and eight foreign countries through its restaurant system, foodservice sales programs and product licensing activities. At March 30, 2014, the Nathan's restaurant system consisted of 329 units, comprised of 324 franchised units and five company-owned units (including one seasonal unit). Nathan's was ranked #55 on the Forbes list of the Best Small Companies in America and was listed as the Best Small Company in New York State in October 2013. Last year, over 430 million Nathan's Famous hot dogs were sold. For additional information about Nathan's please visit our website at www.nathansfamous.com.
Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties. Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions identify forward-looking statements, which are based on the current belief of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially include but are not limited to: economic, weather (including the three-year drought in the Midwest, along with freezing temperatures during the winter causing a reduced supply of cattle and any continued impact of Hurricane Sandy), and continued increases in the price of beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; the collectability of receivables; changes in consumer tastes; the status of our licensing and supply agreements, any issues arising from or related to the transition from SMG to John Morrell & Co. as our primary hot dog supplier and the termination in March 2014 of our previous hot dog supply agreement with SMG; the ability to continue to attract franchisees; labor costs including no material increases in the minimum wage or the impact of new union contracts; our ability to attract competent restaurant and managerial personnel; the impact of changes in the economic relationship between the United States and Russia; and the future effects of any food borne illness; such as bovine spongiform encephalopathy, BSE; and the risk factors reported from time to time in the Company's SEC reports. The Company does not undertake any obligation to update such forward-looking statements.
Nathan's Famous, Inc.
Financial Highlights
Fourth quarter ended
Fiscal year ended
Mar. 30, 2014
Mar. 31, 2013
Mar. 30, 2014
Mar. 31, 2013
(unaudited)
Total revenues
$ 17,331,000
$ 14,976,000
$ 82,927,000
$ 71,543,000
Net income
$ 1,218,000
$ 1,555,000
$ 8,327,000
$ 7,468,000
Basic income per share
Net income
$ 0.27
$ 0.35
$ 1.87
$ 1.70
Diluted income per share
Net income
$ 0.27
$ 0.34
$ 1.81
$ 1.63
Weighted-average shares used in
computing income per share
Basic
4,459,000
4,411,000
4,450,000
4,400,000
Diluted
4,594,000
4,603,000
4,605,000
4,588,000
COMPANY Ronald G. DeVos, Vice President - Finance and CFO
CONTACT: (516) 338-8500 ext. 229
Sappi results for 2nd quarter and half-year ended March 2014 reflect significantly improved performance
PR Newswire By Sappi Limited
May 12, 2014 3:15 AM
>
JOHANNESBURG, May 12, 2014 /PRNewswire/ --
Financial summary for the quarter
Strong cash flow generation
Good performance from South African business
Profit for the period US$32 million (Q2 2013 US$2 million)
EPS 6 US cents (Q2 2013 0 US cents)
EBITDA excluding special items US$171 million (Q2 2013 US$126 million)
Net debt US$2,248 million (Q1 2014 US$2,380 million)
Commenting on the result, Sappi (SPPJY) Chief Executive Officer Ralph Boettger said:
"The past quarter saw an improvement in the operating performance of all three of our operating regions, despite tough market conditions overall. The improving trend in operating performance continued for the quarter, with EBITDA excluding special items of US$171 million, operating profit excluding special items of US$95 million and profit for the period of US$32 million. There were no major special items for the quarter.
"Continued emphasis on lowering cost and optimising sales in both the coated paper and dissolving wood pulp markets have enabled us to compete effectively. Looking forward, we will continue to take actions in North America, Europe and Southern Africa to improve our competitiveness and enable us to reduce debt.
"Our outlook for the year is one of significantly improved performance for the 2014 financial year when compared to 2013."
Quarter ended
Half-year ended
Restated*
Restated*
Restated*
Mar 2014
Mar 2013
Dec 2013
Mar 2014
Mar 2013
Key figures: (US$ million)
Sales
1,573
1,503
1,499
3,072
2,978
Operating profit excluding special items**
95
38
60
155
108
Special items – gains**
(4)
(38)
(10)
(14)
(35)
EBITDA excluding special items**
171
126
147
318
285
Profit for the period
32
2
18
50
14
Basic earnings per share (US cents)
6
-
3
10
3
Net debt **
2,248
2,189
2,380
2,248
2,189
Key ratios (%)
Operating profit excluding special items to sales
6.0
2.5
4.0
5.0
3.6
Operating profit excluding special items to capital employed (ROCE)**
11.0
4.2
7.0
9.1
6.0
EBITDA excluding special items to sales
10.9
8.4
9.8
10.4
9.6
Return on average equity (ROE)**
11.3
0.5
6.4
8.7
1.9
Net debt to total capitalisation**
66.2
60.3
68.0
66.2
60.3
Net asset value per share (US cents)
219
277
215
219
277
* Restated for the adoption of IAS 19 (Revised) Employee Benefits and IFRS 10 Consolidated Financial Statements. Refer to the published results for more details.
** Refer to the published results for details on special items, the definition of the terms and the reconciliation of EBITDA excluding special items to profit/loss for the period.
The table above has not been audited or reviewed.
The quarter under review
Against a backdrop of more challenging dissolving wood pulp markets, the Specialised Cellulose business had another good quarter with strong shipment volumes generating US$82 million in EBITDA excluding special items at an EBITDA margin of 33%. Due to the competitive nature of the market and weak viscose staple fibre pricing, we experienced increased pressure on our prices, leading to a lower average dollar price for our dissolving wood pulp than achieved in the prior quarter.
The graphic paper markets in Europe and North America continue to experience demand declines for most major grades, and sales prices remained under pressure in both markets. These market dynamics were anticipated and we responded by implementing a number of cost cutting initiatives across the group. This, combined with the seasonally stronger second quarter, delivered an improved operating performance in both businesses.
The Southern African paper business continued the trend of improving performance, with increased sales prices offsetting cost pressures.
As a result of the improved operational performance, lower capital expenditure post the completion of the three major conversion projects and stringent working capital management, net cash generated for the quarter was US$132 million compared to net cash utilisation of US$99 million in the equivalent quarter last year. Capital expenditure in the quarter declined to US$62 million compared to US$179 million a year ago, reflecting the completion of the expenditure on the dissolving wood pulp projects.
Net debt of US$2,248 million declined by US$132 million from the prior quarter, as a result of the cash generated from operations and the lower working capital.
Finance costs of US$48 million were in line with the restated equivalent quarter last year.
Earnings per share for the quarter was 6 US cents (including a gain of 1 US cent in respect of special items), compared to 0 US cents (including a gain of 2 US cents in respect of special items) in the restated equivalent quarter last year.
Outlook
Demand in the Specialised Cellulose business remains firm, though pricing pressure continues to be evident. The Rand/Dollar exchange rate will continue to play a major role in the operating performance of the South African Specialised Cellulose business as well as the Southern African paper business.
Capital expenditure for the full year is expected to be below US$300 million, with positive cash generation for the remainder of the year. We anticipate net debt levels to end the year close to US$2 billion.
The third quarter is seasonally weaker in both North America and Europe, and scheduled annual maintenance shuts during the quarter in all three regions will also impact the results in the third quarter, leading to a weaker operating performance than the past quarter, though we expect the result to be substantially better than the equivalent quarter in the prior year. Our outlook for the year is one of significantly improved performance for the 2014 financial year when compared to 2013.
The full results announcement is available at www.sappi.com
There will be a conference call to which investors are invited. Full details are available at www.sappi.com using the links Investor Info; Investor Calendar; 2Q14 Financial Results
Forward-looking statements
Certain statements in this release that are neither reported financial results nor other historical information, are forward-looking statements, including but not limited to statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives. The words "believe", "anticipate", "expect", "intend", "estimate", "plan", "assume", "positioned", "will", "may", "should", "risk" and other similar expressions, which are predictions of or indicate future events and future trends and which do not relate to historical matters, and may be used to identify forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results, performance or achievements). Certain factors that may cause such differences include but are not limited to:
the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw material, energy and employee costs, and pricing);
the impact on our business of the global economic downturn;
unanticipated production disruptions (including as a result of planned or unexpected power outages);
changes in environmental, tax and other laws and regulations;
adverse changes in the markets for our products;
the emergence of new technologies and changes in consumer trends including increased preferences for digital media;
consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed;
adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems;
the impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructuring or strategic initiatives (including our announced dissolving wood pulp conversion projects), and achieving expected savings and synergies; and
currency fluctuations.
We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
For further information
Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Andre.oberholzer@sappi.com
Graeme Wild
Group Head Investor Relations and Sustainability
Sappi Limited
Tel +27 (0)11 407 8391
Mobile +27 (0)83 320 8624
Graeme.wild@sappi.com
Sappi Limited
PO Box 31560
Braamfontein
2017
South Africa
Tel +28 (0)11 407 8111
www.sappi.com
Labor SMART Exceeds $500,000 in Weekly Revenue for First Time
Company on Track for Significant Growth in 2014
Marketwired Labor SMART, Inc.
May 12, 2014 7:50 AM
HIRAM, GA--(Marketwired - May 12, 2014) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), an emerging provider of on-demand blue collar staffing primarily in the southeastern United States, today announced it achieved a record $563,585 in revenue for the week ending May 9, 2014. This represents the first time the company has reached this milestone -- and exceeded its own projection of when this type of weekly revenue would occur.
Ryan Schadel, Labor SMART's CEO stated, "This is a major milestone for Labor SMART and sets the stage for reaching the scale we are after, where expansion costs are outweighed by operating income. We will complete our footprint expansion push for 2014 in the coming weeks and remain very confident in the projections that we've made for 2014."
Labor SMART's strategy of organic growth, new offices and acquisitions is reflected in record revenues reported by the company for the past 19 months.
Labor SMART, Inc. provides On-Demand temporary labor to a variety of industries. The Company's clients range from small businesses to Fortune 100 companies. Labor SMART was founded to provide reliable, dependable and flexible resources for on-demand personnel to small and large businesses in areas that include construction, manufacturing, hospitality, event-staffing, restoration, warehousing, retailing, disaster relief and cleanup, demolition and landscaping. Labor SMART believes it can make a positive contribution each and every day for the benefit of its clients and temporary employees. The Company's mission is to be the provider of choice to its growing portfolio of customers with a service-focused approach that enables Labor SMART to be seen as a resource and partner to its clients.
Safe Harbor Statement
This release contains statements that constitute 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. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Labor SMART, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may", "would", "will", "expect", "estimate", "can", "believe", "potential", and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Labor SMART, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Labor SMART, Inc.'s filings with the U.S. Securities and Exchange Commission.
Contact:
Beverly Jedynak
Martin E. Janis & Company, Inc.
312-943-1123
bjedynak@janispr.com
SIFCO Industries, Inc. (“SIFCO”) Announces Second Quarter Fiscal 2014 Financial Results
Business Wire SIFCO Industries, Inc.
16 hours ago
CLEVELAND--(BUSINESS WIRE)--
SIFCO Industries, Inc. (NYSE MKT: SIF) today announced financial results for its second quarter of fiscal year 2014, which ended March 31, 2014.
Second Quarter
Net sales from continuing operations in second quarter fiscal 2014 increased 3.7% to $29.0 million, compared to $28.0 million in second quarter fiscal 2013.
Income from continuing operations before income tax provision in second quarter fiscal 2014 was $2.4 million compared with $2.5 million in second quarter fiscal 2013.
Net income from continuing operations for second quarter fiscal 2014 was $1.5 million, or $0.28 per diluted share, compared with net income of $1.8 million, or $0.33 per diluted share in second quarter fiscal 2013.
First Six Months
Net sales from continuing operations increased 0.4% in the first six months of fiscal 2014 to $55.7 million, compared to $55.5 million in the comparable period in fiscal 2013.
Income from continuing operations before income tax provision in the first six months of fiscal 2014 was $4.0 million compared with $4.4 million in the comparable period in fiscal 2013.
Net income from continuing operations in the first six months of fiscal 2014 was $2.7 million, or $0.49 per diluted share, compared with net income of $2.9 million, or $0.55 per diluted share in the comparable period in fiscal 2013.
CEO Michael S. Lipscomb stated, "SIFCO’s year-over-year sales from its continuing operations reflect sustained growth in its aerospace component sales and a recovery in its energy component sales during the quarter. We foresee strong aerospace sales volume and continuing recovery in the energy markets as our customers introduce new products during the remainder of 2014. SIFCO continues to be well positioned for the remaining quarters in fiscal 2014.”
Forward-Looking Language
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.
The Company's Form 10-K for the year ended September 30, 2013 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.
The Company is engaged in the production and sale of a variety of metal working services and products produced primarily to the specific design requirements of its customers. The services include forging, heat-treating, coating welding, machining and selective plating. The products include forged components (both conventional and precision), machined forged parts, other machined metal components as well as turbine engine component repairs. The Company’s operations were conducted in three business segments during fiscal 2013: (i) SIFCO Forged Components, continuing into fiscal 2014; (ii) Turbine Component Services and Repair ("Repair Group"), discontinued in fiscal 2013; and (iii) Applied Surface Concepts ("ASC"), divested in fiscal 2013. Due to the divestiture and discontinuation of the two segments in fiscal 2013, management now evaluates the Company as a single reporting segment in the Aerospace and Energy ("A&E") industries.
Second Quarter Ended March 31
(Amounts in thousands, except per share data)
Three Months
Ended March 31,
Six Months
Ended March 31,
2014 2013 2014 2013
Net sales $ 29,044 $ 28,004 $ 55,696 $ 55,448
Cost of goods sold 22,740 22,098 43,822 43,678
Gross profit 6,304 5,906 11,874 11,770
Selling, general and administrative expenses 3,444 2,957 6,902 6,498
Amortization of intangible assets 545 493 1,090 1,051
Loss (gain) on disposal of operating assets - 3 (2 ) (122 )
Operating income 2,315 2,453 3,884 4,343
Interest income (5 ) (9 ) (9 ) (14 )
Interest expense 51 79 136 185
Foreign currency exchange loss, net (1 ) (8 ) 6 -
Other income, net (108 ) (109 ) (217 ) (186 )
Income from continuing operations before income tax provision 2,378 2,500 3,968 4,358
Income tax provision 867 731 1,303 1,412
Income from continuing operations 1,511 1,769 2,665 2,946
Income (loss) from discontinued operations, net of tax (85 ) (334 ) (292 ) 1,904
Net income 1,426 1,435 2,373 4,850
Income per share from continuing operations
Basic $ 0.28 $ 0.33 $ 0.49 $ 0.55
Diluted $ 0.28 $ 0.33 $ 0.49 $ 0.55
Income (loss) per share from discontinued operations, net of tax
Basic ($0.02 ) ($0.06 ) ($0.05 ) $ 0.36
Diluted ($0.02 ) ($0.06 ) ($0.05 ) $ 0.35
Net income per share
Basic $ 0.26 $ 0.27 $ 0.44 $ 0.91
Diluted $ 0.26 $ 0.27 $ 0.44 $ 0.90
Weighted-average number of common shares (basic) 5,407 5,364 5,393 5,353
Weighted-average number of common shares (diluted) 5,423 5,404 5,415 5,398
Contact:
SIFCO Industries, Inc.
Catherine M. Kramer, 216-881-8600
www.sifco.com
7:02 am WisdomTree beats by $0.01, misses on revs (WETF) : Reports Q1 (Mar) earnings of $0.12 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.11; revenues rose 46.4% year/year to $42.9 mln vs the $43.41 mln consensus. Included in the quarter were $1.3 million, or $0.01 per diluted EPS, of costs associated with our acquisition of U.K.-based ETP provider Boost and non-recurring costs for transitioning our fund accounting and administration services.
ETF assets under management ("AUM") were $33.9 billion at March 31, 2014, up 35.0% from $25.1 billion at March 31, 2013, and down 2.9% from $34.9 billion at December 31, 2013. AUM decreased from December 31, 2013 due to net outflows of $0.5 billion primarily in our emerging markets equity, currency and fixed income focused ETFs as well as in our Japan Hedged Equity ETF (DXJ). We also had negative market movement of $0.5 billion, primarily in those same funds.
7:02 am WisdomTree beats by $0.01, misses on revs (WETF) : Reports Q1 (Mar) earnings of $0.12 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.11; revenues rose 46.4% year/year to $42.9 mln vs the $43.41 mln consensus. Included in the quarter were $1.3 million, or $0.01 per diluted EPS, of costs associated with our acquisition of U.K.-based ETP provider Boost and non-recurring costs for transitioning our fund accounting and administration services.
ETF assets under management ("AUM") were $33.9 billion at March 31, 2014, up 35.0% from $25.1 billion at March 31, 2013, and down 2.9% from $34.9 billion at December 31, 2013. AUM decreased from December 31, 2013 due to net outflows of $0.5 billion primarily in our emerging markets equity, currency and fixed income focused ETFs as well as in our Japan Hedged Equity ETF (DXJ). We also had negative market movement of $0.5 billion, primarily in those same funds.
WisdomTree Announces First Quarter 2014 Results
GlobeNewswire WisdomTree Investments, Inc.
May 2, 2014 7:00 AM
Pre-Tax Income of $16.5 Million; Doubles From Year Ago Quarter
$0.12 Diluted Pretax EPS
Revenues Increase 46% From Year Ago Quarter
NEW YORK, May 2, 2014 (GLOBE NEWSWIRE) --WisdomTree Investments, Inc. (WETF), an exchange-traded product ("ETP") sponsor and asset manager, today reported pre-tax income of $16.5 million or $0.12 per share on a fully diluted basis. This compares to $7.9 million in the first quarter of 2013 and $16.5 million in the fourth quarter of 2013. Included in the quarter were $1.3 million, or $0.01 per diluted EPS, of costs associated with our acquisition of U.K.-based ETP provider Boost and non-recurring costs for transitioning our fund accounting and administration services. The Company also recorded a non-recurring tax benefit of $13.7 million resulting in net income of $30.2 million for the first quarter of 2014.1
WisdomTree CEO and President Jonathan Steinberg said, "WisdomTree's powerful operating model produced strong financial results in the first quarter on a base of $33.9 billion in average ETF assets. Even against the backdrop of a challenging market environment for some of our largest exposures, we increased revenues and earnings year over year, demonstrating the scale and strength of our business."
Mr. Steinberg continued, "We completed important initiatives, including a seamless transition in back office fund accounting, administration and custody services. We also completed our investment to establish WisdomTree Europe and look forward to building out a platform of Boost and WisdomTree products for the world's second largest ETF market. We continue to invest strategically to make WisdomTree even more competitive for the future."
Summary Operating and Financial Highlights
Three Months Ended Change From
Mar. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31,
Operating Highlights ($, in billions): 2014 2013 2013 2013 2013
ETF AUM $33.9 $34.9 $25.1 (2.9%) 35.0%
ETF net inflows/(outflows) ($0.5) $2.3 $5.9 ($2.8) ($6.4)
Average ETF AUM $33.9 $33.1 $21.9 2.3% 54.4%
Average ETF advisory fee 0.51% 0.51% 0.54% -- (0.03)
Market share of industry inflows -- 3.9% 11.3% (3.9) (11.3)
Revenue days 90 92 90 (2.0) --
Financial Highlights ($, in millions, except per share amounts):
Total revenues $42.9 $43.2 $29.3 (0.6%) 46.3%
Pre-tax income $16.5 $16.5 $7.9 0.0% 109.8%
Net income $30.2 $16.5 $7.9 83.3% 284.6%
Diluted pre-tax earnings per share $0.12 $0.12 $0.06 -- $0.06
Gross margin2 (non-GAAP) 78.6% 78.2% 71.6% +0.4 +7.0
Pre-tax margin 38.4% 38.2% 26.8% +0.2 +11.6
1 Please see section titled "Taxes."
2 Gross margin is defined as total revenues less fund management and administration expenses and third-party sharing arrangements.
Recent Business Developments
On May 1, 2014, WisdomTree announced the WisdomTree MidCap Dividend Fund (DON) surpassed $1 billion in assets
On April 29, 2014, WisdomTree announced 10 additional ETFs became available for sale in Japan
On April 21, 2014, WisdomTree announced the Mexican pension funds investment regulator approved 6 WisdomTree ETFs for sale to Mexican pension funds
On April 17, 2014, WisdomTree announced it completed an investment to create WisdomTree Europe
On April 8, 2014, WisdomTree announced the launch of a suite of currency hedged Japan Sector ETFs
On April 7, 2014, WisdomTree announced the WisdomTree Europe Hedged Equity Fund (HEDJ) surpassed $1 billion in assets
On March 20, 2014, WisdomTree announced it received three awards from ETF.com: "Most innovative ETF issuer of the year," "ETF of the year" (WisdomTree Japan Hedged Equity Fund (DXJ)) and "Best new currency ETF of 2013"(WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU))
On February 26, 2014, WisdomTree announced the Peruvian pension funds investment regulator approved 12 WisdomTree ETFs for sale to Peruvian pension funds
On February 17, 2014, WisdomTree announced the WisdomTree Europe SmallCap Dividend Fund (DFE) surpassed $1 billion in assets
On February 2, 2014, WisdomTree announced the launch of the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR)
Assets Under Management and Net Inflows
ETF assets under management ("AUM") were $33.9 billion at March 31, 2014, up 35.0% from $25.1 billion at March 31, 2013, and down 2.9% from $34.9 billion at December 31, 2013. AUM decreased from December 31, 2013 due to net outflows of $0.5 billion primarily in our emerging markets equity, currency and fixed income focused ETFs as well as in our Japan Hedged Equity ETF (DXJ). We also had negative market movement of $0.5 billion, primarily in those same funds.
Performance
In evaluating the performance of our Equity, Fixed Income and Alternatives ETFs against actively managed and index based mutual funds and ETFs, 85% of the $33.4 billion invested in our ETFs and 58% (29 of 50) of our ETFs outperformed their comparable Morningstar average since inception as of March 31, 2014.
For more information about WisdomTree ETFs including standardized performance, please click here or visit www.wisdomtree.com.
First Quarter Financial Discussion
Revenues
Total revenues increased 46.3% to $42.9 million as compared to the first quarter of 2013 primarily due to higher average AUM. Revenues decreased 0.6% compared to the fourth quarter of 2013 due to two less revenue days in the first quarter. Our average advisory fee was 0.51% as compared to 0.54% for the first quarter of 2013 and 0.51% in the fourth quarter of 2013 due to a change in mix of our ETFs.
Margins
Our gross margin, which is our total revenues less fund management and administration expenses and third party sharing arrangements, was 78.6% in the first quarter of 2014 as compared to 71.6% in the first quarter of 2013 and 78.2% in the fourth quarter of 2013.
Our pre-tax margin was 38.4% in the first quarter of 2014 as compared to 26.8% in the first quarter of 2013 and 38.2% in the fourth quarter of 2013.
Expenses
Total expenses increased 23.1% to $26.4 million from $21.5 million in the first quarter of 2013. Total expenses decreased 0.9% from $26.7 million in the fourth quarter of 2013. Included in the quarter was $0.8 million of costs associated with our acquisition of Boost and $0.5 million in non-recurring costs for transitioning our fund accounting and administration services.
Compensation and benefits expense increased 25.0% to $9.4 million compared to the first quarter of 2013. This increase was primarily due to higher headcount related expenses to support our growth as well as higher payroll taxes associated with 2013 bonus payments.
Compensation and benefits expense decreased 2.9% as compared to the fourth quarter of 2013 primarily due to lower accrued incentive compensation partly offset by higher payroll taxes and stock based compensation associated with 2013 bonus awards.
Our headcount at the end of the first quarter of 2014 was 90 compared to 72 at the end of the first quarter of 2013 and 87 at the end of 2013.
Fund management and administration expenses increased 11.5% to $9.2 million compared to the first quarter of 2013. Higher average AUM resulted in a $0.6 million increase in variable fees charged by our third party service providers associated with AUM. In addition, we incurred a non-recurring charge of $0.5 million for transitioning our fund accounting and administration services.
Fund management and administration expenses increased 2.4% compared to the fourth quarter of 2013 primarily due to the transition cost referred to above. Partly offsetting this increase was a decrease in regulatory fees associated with net inflow levels and certain variable fees associated with a decrease in our emerging markets AUM.
We had 62 ETFs at the end of the first quarter of 2014 compared to 47 at the end of the first quarter of 2013 and 61 at the end of 2013.
Marketing and advertising expenses increased to $2.6 million representing an increase of 33.1% from the first quarter and 20.2% from the fourth quarter of last year primarily due to higher levels of advertising related activities to support our growth.
Sales and business development expenses decreased to $1.3 million representing a decrease of 27.8% from the first quarter and 29.6% from the fourth quarter of last year primarily due to lower levels of spending for sales related initiatives.
Professional and consulting fees increased to $1.8 million representing an increase of 192.8% from the first quarter and 91.8% from the fourth quarter of last year primarily due to advisory and other costs associated with our transaction to acquire Boost. In addition, corporate legal fees increased as well as technology consulting expenses associated with our office relocation.
Occupancy, communication and equipment expense increased to $0.9 million in the first quarter of 2014 representing a 138.7% increase from the first quarter of last year primarily due to costs for new office space which we began to occupy in January 2014. This expense decreased 17.7% compared to the fourth quarter of 2013 primarily due to the expiration in January 2014 of the lease for our previous office space. From September 2013 to January 2014, we recognized rent expense for the new office space we were preparing to occupy while continuing to recognize rent expense for the old space we were occupying at the time.
Depreciation and amortization expense increased to $0.2 million in the first quarter of 2014 representing a 134.1% increase from the first quarter of last year primarily due to amortization of leasehold improvements for our new office space. This expense was essentially unchanged compared to the fourth quarter of 2013.
Third-party sharing arrangements expense decreased to $0.01 million representing a decrease of 91.0% from the first quarter and 97.8% from the fourth quarter of last year primarily due to lower levels of inflows from our third party marketing agent in Latin America.
Other expenses increased 32.6% to $1.1 million compared to the first quarter of 2013 primarily due to higher independent director fees as well as higher general and administrative expenses. This expense decreased 20.5% compared to the fourth quarter of 2013 primarily due to lower overhead related expenses.
Taxes
The Company recorded a non-recurring tax benefit of $13.7 million in the first quarter to recognize the Company's deferred tax asset, which previously had been reserved with a 100% valuation allowance. The Company expects to record GAAP taxes beginning in the second quarter at a rate of 45%; however, for some time it will not be paying cash taxes due to the size of its net operating losses. The Company will discuss this topic on its conference call.
Balance Sheet
As of March 31, 2014, the Company had total assets of $159.7 million which consisted primarily of cash and cash equivalents of $104.8 million and investments of $11.8 million. There were approximately 131.5 million shares of common stock outstanding as of March 31, 2014. Fully diluted weighted average shares outstanding were approximately 138.7 million for the first quarter.
Conference Call
WisdomTree will discuss its results and operational highlights during a conference call on Friday, May 2, 2014 at 9:00 a.m. ET. The call-in number will be (877) 303-7209. Anyone outside the U.S. or Canada should call (970) 315-0420. The slides used during the presentation will be available at http://ir.wisdomtree.com. For those unable to join the conference call at the scheduled time, an audio replay will be available on http://ir.wisdomtree.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about:
anticipated trends, conditions and investor sentiment in the global markets;
anticipated levels of inflows into and outflows out of our exchange traded funds;
our ability to deliver favorable rates of return to investors;
our ability to develop new products and services;
our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
competition in our business; and
the effect of laws and regulations that apply to our business.
Our business is subject to many risks and uncertainties, including without limitation:
We have only a limited operating history and, as a result, recent historical growth may not provide an accurate representation of the growth we may experience in the future, which may make it difficult to evaluate our future prospects.
Challenging market conditions associated with declining prices of securities can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETF shareholders to sell their fund shares and trigger redemptions.
Fluctuations in the amount and mix of our AUM may negatively impact revenue and operating margin.
Most of our assets under management are held in ETFs that invest in foreign securities and we therefore have substantial exposure to foreign market conditions and are subject to currency exchange rate risks.
We derive a substantial portion of our revenue from products invested in emerging markets and are exposed to the market-specific political and economic risks as well as general investor sentiment regarding future growth of those markets.
We derive a substantial amount of our revenue from products invested in securities of Japanese companies and are exposed to the market-specific political and economic risks as well as general investor sentiment regarding future growth of those markets and currency fluctuations between the Japanese Yen and the U.S. Dollar.
We derive a majority of our revenue from a limited number of products--in particular one fund, WisdomTree Japan Hedged Equity Fund, that accounted for approximately one third of our ETF AUM--and, as a result, our operating results are particularly exposed to the performance of those funds, investor sentiment toward the strategies pursued by those funds and our ability to maintain the assets under management of those funds.
The WisdomTree ETFs have a limited track record, and poor investment performance could cause our revenue to decline.
We depend on other third parties to provide many critical services to operate our business and the WisdomTree ETFs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETF shareholders.
Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, please see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and the U.K. (collectively, "WisdomTree"), is an exchange-traded product ("ETP") sponsor and asset manager headquartered in New York. WisdomTree offers ETPs covering equity, fixed income, currency, alternatives and commodity asset classes. WisdomTree currently has approximately $33.3 billion in assets under management globally.
WisdomTree(R) is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiary, WisdomTree Asset Management, Inc., a registered investment adviser and investment adviser to the WisdomTree Trust and each of its series. The WisdomTree Trust is a registered open-end management investment company.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended % Change From
Mar. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31,
2014 2013 2013 2013 2013
Revenues
ETF advisory fees $ 42,609 $ 42,903 $ 29,153 -0.7% 46.2%
Other income 311 263 188 18.3% 65.4%
Total revenues 42,920 43,166 29,341 -0.6% 46.3%
Expenses
Compensation and benefits 9,355 9,633 7,482 -2.9% 25.0%
Fund management and administration 9,168 8,953 8,223 2.4% 11.5%
Marketing and advertising 2,578 2,145 1,937 20.2% 33.1%
Sales and business development 1,301 1,848 1,801 -29.6% -27.8%
Professional and consulting fees 1,795 936 613 91.8% 192.8%
Occupancy, communication and equipment 900 1,093 377 -17.7% 138.7%
Depreciation and amortization 192 190 82 1.1% 134.1%
Third party sharing arrangements 10 455 111 -97.8% -91.0%
Other 1,142 1,437 861 -20.5% 32.6%
Total expenses 26,441 26,690 21,487 -0.9% 23.1%
Income before taxes 16,479 16,476 7,854 0.0% 109.8%
Income tax benefit (13,725) -- -- -- --
Net income $ 30,204 $ 16,476 $ 7,854 83.3% 284.6%
Income before taxes per share - basic $ 0.13 $ 0.13 $ 0.06
Income before taxes per share - diluted $ 0.12 $ 0.12 $ 0.06
Net income per share - basic $ 0.23 $ 0.13 $ 0.06
Net income per share - diluted $ 0.22 $ 0.12 $ 0.06
Weighted average common shares - basic 130,934 128,851 125,436
Weighted average common shares - diluted 138,667 140,065 139,650
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share amount)
March 31, December 31,
2014 2013
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 104,780 $ 104,316
Accounts receivable 17,815 18,100
Other current assets 1,927 1,320
Total current assets 124,522 123,736
Fixed assets, net 9,587 6,252
Investments 11,835 11,748
Deferred income taxes 13,725 --
Other noncurrent assets 56 55
Total assets $ 159,725 $ 141,791
LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES
Current liabilities:
Fund management and administration payable $ 11,752 $ 10,394
Compensation and benefits payable 2,805 14,278
Accounts payable and other liabilities 4,921 4,384
Total current liabilities 19,478 29,056
Other noncurrent liabilities 4,349 3,706
Total liabilities 23,827 32,762
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 250,000 shares authorized: issued: 133,265 and 132,247 outstanding: 131,525 and 130,350 1,332 1,322
Additional paid-in capital 180,856 184,201
Accumulated deficit (46,290) (76,494)
Total stockholders' equity 135,898 109,029
Total liabilities and stockholders' equity $ 159,725 $ 141,791
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended
March 31, March 31,
2014 2013
Cash flows from operating activities
Net income $ 30,204 $ 7,854
Non-cash items included in net income:
Income tax benefit (13,725) --
Depreciation and amortization 192 82
Stock-based compensation 2,015 1,714
Deferred rent 643 (34)
Accretion to interest income and other (111) 39
Changes in operating assets and liabilities:
Accounts receivable 285 (1,750)
Other assets (491) (256)
Fund management and administration payable 1,358 2,589
Compensation and benefits payable (11,473) 457
Accounts payable and other liabilities 537 (451)
Net cash provided by operating activities 9,434 10,244
Cash flows from investing activities
Purchase of fixed assets (3,527) (10)
Purchase of investments (154) (1,314)
Proceeds from the redemption of investments 61 1,633
Net cash (used in)/provided by investing activities (3,620) 309
Cash flows from financing activities
Shares repurchased (5,426) (249)
Proceeds from exercise of stock options 76 747
Net cash (used in)/provided by financing activities (5,350) 498
Net increase in cash and cash equivalents 464 11,051
Cash and cash equivalents - beginning of period 104,316 41,246
Cash and cash equivalents - end of period $ 104,780 $ 52,297
Supplemental disclosure of cash flow information
Cash paid for taxes $ 14 $ 34
WisdomTree Investments, Inc.
Key Operating Statistics (Unaudited)
Three Months Ended
March 31, December 31, March 31,
2014 2013 2013
Total ETFs (in millions)
Beginning of period assets 34,884 31,352 18,286
Inflows/(outflows) (498) 2,308 5,893
Market appreciation/(depreciation) (502) 1,224 924
End of period assets 33,884 34,884 25,103
Average assets during the period 33,859 33,091 21,934
Revenue Days 90 92 90
ETF Industry and Market Share (in billions)
ETF industry net inflows 14.6 58.6 52.2
WisdomTree market share of industry inflows -- 3.9% 11.3%
International Hedged Equity ETFs (in millions)
Beginning of period assets 13,348 11,481 1,258
Inflows/(outflows) (12) 1,243 4,071
Market appreciation/(depreciation) (724) 624 468
End of period assets 12,612 13,348 5,797
Average assets during the period 13,052 11,848 3,432
US Equity ETFs (in millions)
Beginning of period assets 7,181 6,271 4,371
Inflows/(outflows) 189 367 291
Market appreciation/(depreciation) 135 543 499
End of period assets 7,505 7,181 5,161
Average assets during the period 7,176 6,771 4,749
Emerging Markets Equity ETFs (in millions)
Beginning of period assets 7,448 7,703 7,332
Inflows/(outflows) (632) (246) 876
Market appreciation/(depreciation) (63) (9) (137)
End of period assets 6,753 7,448 8,071
Average assets during the period 6,775 7,891 7,905
International Developed Equity ETFs (in millions)
Beginning of period assets 3,864 3,150 2,474
Inflows/(outflows) 812 565 139
Market appreciation/(depreciation) 154 149 115
End of period assets 4,830 3,864 2,728
Average assets during the period 4,347 3,490 2,640
Fixed Income ETFs (in millions)
Beginning of period assets 1,906 2,095 2,118
Inflows/(outflows) (302) (144) 508
Market appreciation/(depreciation) 6 (45) (26)
End of period assets 1,610 1,906 2,600
Average assets during the period 1,747 2,008 2,453
Currency ETFs (in millions)
Beginning of period assets 979 502 611
Inflows/(outflows) (549) 515 12
Market appreciation/(depreciation) (8) (38) 3
End of period assets 422 979 626
Average assets during the period 611 933 637
Alternative Strategy ETFs (in millions)
Beginning of period assets 158 150 122
Inflows/(outflows) (4) 8 (4)
Market appreciation/(depreciation) (2) -- 2
End of period assets 152 158 120
Average assets during the period 151 150 118
Average ETF assets during the period
International hedged equity ETFs 39% 36% 15%
US equity ETFs 21% 20% 22%
Emerging markets equity ETFs 20% 24% 36%
International developed equity ETFs 13% 11% 12%
Fixed income ETFs 5% 6% 11%
Currency ETFs 2% 3% 3%
Alternative strategy ETFs 0% 0% 1%
Total 100% 100% 100%
Average ETF advisory fee during the period
Alternative strategy ETFs 0.94% 0.94% 0.94%
Emerging markets equity ETFs 0.66% 0.66% 0.67%
International developed equity ETFs 0.56% 0.56% 0.56%
Fixed income ETFs 0.55% 0.55% 0.55%
International hedged equity ETFs 0.49% 0.49% 0.49%
Currency ETFs 0.49% 0.48% 0.51%
US equity ETFs 0.35% 0.35% 0.35%
Blended total 0.51% 0.51% 0.54%
Number of ETFs - end of the period
International developed equity ETFs 16 16 16
US equity ETFs 13 13 11
Fixed income ETFs 12 11 6
Emerging markets equity ETFs 7 7 5
International hedged equity ETFs 6 6 2
Currency ETFs 6 6 5
Alternative strategy ETFs 2 2 2
Total 62 61 47
Headcount 90 87 72
Note: Previously issued statistics may be restated due to trade adjustments
Source: Investment Company Institute, Bloomberg, WisdomTree
Non-GAAP Financial Measurements
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. The non-GAAP financial measurements included in this release include gross margin and gross margin percentage. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. We disclose gross margin as a non-GAAP financial measurement to allow investors to analyze our revenues less the direct costs paid to third parties attributable to those revenues.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
GAAP to NON-GAAP RECONCILIATION
(in thousands)
(Unaudited)
Three Months Ended
Mar. 31, Dec. 31, Mar. 31,
2014 2013 2013
GAAP total revenue $ 42,920 $ 43,166 $ 29,341
Fund management and administration (9,168) (8,953) (8,223)
Third party sharing arrangements (10) (455) (111)
Gross margin $ 33,742 $ 33,758 $ 21,007
Gross margin percentage 78.6% 78.2% 71.6%
Contact:
WisdomTree Investments, Inc.
Stuart Bell / Jessica Zaloom
+1.917.267.3702 / +1.917.267.3735
sbell@wisdomtree.com / jzaloom@wisdomtree.com
Newell Rubbermaid Announces First Quarter Results
GlobeNewswire Newell Rubbermaid
19 hours ago
Reaffirms Full Year Guidance
Increases Quarterly Dividend 13 percent to $0.17 per share
ATLANTA, May 2, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid (NWL) today announced its first quarter 2014 financial results.
"We delivered solid first quarter results in the context of two previously communicated events. Our team did a good job overcoming the adverse impacts of the harness buckle recall on select car seats in our U.S. Baby business and the weather-related slow down on our U.S.-centric Home Solutions business," said Michael Polk, Chief Executive Officer. "Strong core sales growth in Writing offset declines in Home Solutions and Baby, yielding normalized earnings per share of $0.35, flat with last year's results.
"We are confident in our full year financial guidance and expect the company's core sales and earnings per share growth to accelerate through the balance of the year as we significantly increase advertising and promotion investment levels in support of our brands and innovation. Importantly, the Board of Directors has approved a 13 percent increase in our quarterly dividend to $0.17, an annualized rate of $0.68 per share. This is the fourth dividend increase in the last three years, which is a reflection of the Board's continued confidence in Newell's strong cash generation ability and in the promise of our Growth Game Plan."
First Quarter Executive Summary
Net sales were $1.23 billion, a 0.7 percent decline versus prior year results.
Core sales, which exclude the impact of changes in foreign currency, grew 0.7 percent.
Normalized gross margin was 38.8 percent, a 60 basis point improvement compared with the prior year period. Reported gross margin was 38.1 percent versus 38.2 percent in the prior year period.
Normalized operating margin was 11.0 percent versus 11.2 percent in the prior year period. Reported operating margin increased 60 basis points to 8.5 percent.
Normalized diluted earnings per share were $0.35 compared with $0.35 in the prior year. Reported diluted earnings per share were $0.19 compared with $0.19 in the prior year.
The company's first quarter reported results include an $11.0 million charge ($0.02 per diluted share) which reflects the cost of harness buckle recall issues on select car seats in our Baby segment. This charge has been excluded from normalized operating income and normalized EPS.
Operating cash flow was a use of $92.1 million compared with a use of $123.1 million in the prior year period.
The company paid dividends of $42.9 million and repurchased 1.5 million shares of common stock at a cost of $44.4 million. In addition, the company took delivery of 2.0 million shares in mid-March to complete the Accelerated Share Repurchase program initiated in the fourth quarter of 2013.
The company announced a 13 percent ($0.02 per share) increase in its quarterly dividend to $0.17 per share.
The company recorded a monetary asset devaluation charge of $38.7 million, or $0.09 per diluted share, associated with adopting the SICAD I rate for its Venezuelan operations.
The company reaffirmed its guidance for 2014 core sales growth of 3 to 4 percent, operating margin improvement of up to 40 basis points, normalized EPS of $1.94 to $2.00 and operating cash flow of $600 to $650 million.
First Quarter 2014 Operating Results
Net sales in the first quarter were $1.23 billion, compared with $1.24 billion in the prior year. Core sales, which exclude 140 basis points of negative foreign currency impact, grew 0.7 percent.
Reported gross margin was 38.1 percent. Normalized gross margin was 38.8 percent, a 60 basis point improvement versus prior year results. Normalized gross margin excludes the impact of costs associated with the harness buckle recall. Pricing and productivity more than offset inflation and the negative impact of transactional foreign currency.
First quarter reported operating margin was 8.5 percent compared with 7.9 percent in the prior year. Reported operating income was $105.2 million versus $97.8 million.
Normalized operating margin was 11.0 percent, compared with 11.2 percent in the prior year period. Normalized operating income was $135.9 million compared with $138.8 million in the prior year period. First quarter 2014 normalized operating income excludes restructuring and restructuring-related costs of $19.7 million and $11.0 million of costs associated with the harness buckle recall issue while 2013 normalized operating income excludes $41.0 million of restructuring and restructuring-related costs.
The company reported a net benefit for income taxes of $1.3 million due to discrete period benefits relating to resolution of certain tax items and the tax rate applicable to the $38.7 million charge associated with its Venezuelan operations. The reported tax expense for the prior year period was $6.4 million. The normalized tax rate was 18.4 percent compared with 16.5 percent in the prior year.
Reported net income was $52.9 million, compared with $54.2 million in the prior year. Reported diluted earnings per share were $0.19 compared with the prior year's $0.19 per diluted share. Lower restructuring costs and the positive impact from a lower share count were offset by a $38.7 million monetary asset devaluation charge resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate and the $11.0 million charge reflecting the costs associated with the harness buckle recall issue.
Normalized net income was $98.1 million, compared with $102.1 million in the prior year. Normalized diluted earnings per share of $0.35 were flat compared with the prior year as 60 basis points of normalized gross margin increase and a lower share count were offset by the loss of sales momentum on Baby due to the harness buckle recall and the sluggish performance of the U.S.-centric Home Solutions segment as a result of a weather-related slowdown in U.S. retailer point-of-sale results.
For the first quarter 2014, normalized diluted earnings per share exclude $0.05 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share associated with the harness buckle recall in Baby & Parenting and $0.09 per diluted share resulting from the use of the SICAD I exchange rate for the company's Venezuelan operations. For the first quarter 2013, normalized diluted earnings per share exclude $0.12 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share resulting from the devaluation of the Venezuelan Bolivar, $0.02 per diluted share attributable to the resolution of tax contingencies, and a net loss (including impairments) from discontinued operations of $0.03 per diluted share. (A reconciliation to "normalized" results is included below.)
Operating cash flow was a use of $92.1 million compared with a use of $123.1 million last year, primarily due to the absence of a U.S. pension plan contribution.
Recall of Harness Buckles on Select Car Seats
In February 2014, Graco announced a voluntary recall in the U.S. of harness buckles used on approximately 4 million toddler car seats manufactured between 2006 and 2013. There have been no reported injuries associated with the recalled harness buckles. These toddler car seat buckles were susceptible to contamination from food, debris or spilled liquids, which can result in difficulty or inability to open the buckles. As a result of the recall, affected car seats which were at retail or in customer warehouses have been reworked in the field or returned to the company for rework. Graco continues to offer consumers replacement harness buckles at no cost.
Graco is in ongoing discussions with the National Highway Traffic Safety Administration (NHTSA) regarding a potential recall of harness buckles used on select infant car seats. The company remains hopeful that its dialogue with NHTSA and shared commitment to child passenger safety will result in a constructive resolution and the best outcome for consumers. The company expects the infant harness buckle discussions will be resolved in the second quarter.
The Company's first quarter reported results include an $11.0 million charge (or $0.02 per diluted share) which includes the cost of the first quarter recall of harness buckles on select toddler car seats as well as the company's current estimate of costs associated with the infant car seat harness buckle issue. This charge has been excluded from normalized operating income and normalized EPS. Normalized operating income and normalized EPS do not exclude the impact on net sales of returns from retailers or the lost sales associated with approximately five weeks of lost shipments on the affected toddler car seats.
A reconciliation of the first quarter 2014 and 2013 results is as follows:
Q1 2014* Q1 2013*
Diluted earnings per share (as reported) $0.19 $0.19
Restructuring and restructuring-related costs 0.05 0.12
Costs associated with harness buckle recall 0.02 --
Currency devaluation -- Venezuela 0.09 0.02
Resolution of income tax contingencies -- (0.02)
Discontinued operations -- 0.03
Normalized EPS $0.35 $0.35
*Totals may not add due to rounding
First Quarter 2014 Operating Segment Results
Writing net sales for the first quarter were $361.3 million, a 6.1 percent improvement compared to prior year. Core sales increased 8.0 percent, driven by pricing and market share growth in the Americas, partially offset by product line exits in Europe. Operating income was $77.1 million, or 21.3 percent of sales, compared with $63.2 million, or 18.6 percent of sales, in the prior year. The increase in operating margin was largely driven by positive mix, productivity, and pricing in Latin America.
Home Solutions net sales were $321.2 million, a 5.2 percent decline compared to prior year. Core sales declined 4.5 percent, as weather-related point-of-sale softness and the negative effect on volume of less merchandising on certain Rubbermaid Consumer low margin product lines were partially offset by increased distribution on Calphalon(R). Normalized operating income was $26.3 million, or 8.2 percent of sales, compared with $34.1 million, or 10.1 percent of sales, in the prior year. The decrease in operating margin was driven by input cost inflation and the deleveraging effect on margins of lower sales volumes, partially offset by productivity and pricing.
Tools segment net sales were $187.8 million, a 0.4 percent decline compared to prior year. Core sales increased 2.4 percent driven by strong volume and share growth on Lenox in North America and Irwin in Europe. Adjusting for the prior year pull forward of volume into the first quarter of 2013 related to the second quarter 2013 SAP conversion in Brazil, Tools global core sales increased 5.2 percent. Operating income was $21.4 million, or 11.4 percent of sales, compared with $18.7 million, or 9.9 percent of sales, in the prior year. The increase in operating margin was driven by pricing and favorable mix partially offset by inflation.
Commercial Products net sales were $182.6 million, a 0.3 percent decrease compared to prior year. Core sales increased 0.2 percent as solid growth on Rubbermaid Commercial Products was largely offset by weakness in the U.S. Healthcare business against a very strong year ago comparison period. Operating income was $13.8 million, or 7.6 percent of sales, compared with $21.6 million, or 11.8 percent of sales, in the prior year period. The decrease in operating margin reflects inflation and increased investment in selling capabilities in North America and Latin America.
Baby & Parenting net sales were $179.3 million, a decline of 5.4 percent compared to prior year. Core sales declined 4.4 percent, primarily attributable to the U.S. recall of harness buckles on select toddler car seats and the exit of certain product lines in Europe. Normalized operating income was $16.4 million, or 9.1 percent of sales, compared with $23.9 million, or 12.6 percent of sales, in the prior year. The decrease in operating margin was largely due to inflation and the absence of fixed cost leverage associated with lower sales volume.
2014 Full Year Outlook
Newell Rubbermaid reaffirmed its full year 2014 guidance as follows:
Core sales growth of 3 to 4 percent;
Normalized operating margin improvement of up to 40 basis points;
Normalized EPS of $1.94 to $2.00; and
Operating cash flow between $600 and $650 million.
The company now expects foreign exchange to have a negative impact on 2014 net sales of about 200 basis points and to have a negative impact on both normalized and reported EPS of $0.04 to $0.05 per diluted share for the balance of 2014. Subsequent to the first quarter, the company will begin using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (approximately 10.5 to 11.0 Bolivars per U.S. dollar).
2014 normalized EPS guidance excludes between $100 and $120 million of Project Renewal restructuring and restructuring-related charges. (A reconciliation of expected reported results to "normalized" results is included below.)
The company is on track to realize cumulative annualized cost savings of $270 to $325 million by the second quarter of 2015 related to Project Renewal. The majority of these savings will be reinvested in the business to strengthen brand building and selling capabilities and accelerate growth.
Operating cash flow guidance assumes $100 to $120 million in restructuring and restructuring-related cash payments. Capital expenditures are projected at $150 to $175 million.
A reconciliation of the 2014 earnings outlook is as follows:
FY 2014
Diluted earnings per share $1.50 to $1.56
Restructuring and restructuring-related costs $0.29 to $0.37
Costs associated with harness buckle recall $0.02
Currency devaluation - Venezuela $0.09
Normalized EPS $1.94 to $2.00
Conference Call
The company's first quarter 2014 earnings conference call will be held today, May 2, 2014, at 8:00 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The webcast will be available for replay. A supporting slide presentation will be made available in the Investor Relations section on the company's Web site under Quarterly Earnings.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission and includes a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
The company uses certain financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company's management believes that these measures - including those that are "non-GAAP financial measures" - and the information they provide are useful to investors since these measures (a) permit investors to view the company's performance using the same tools that management uses to evaluate the company's past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management's incentive compensation.
The company's management believes that core sales, as reflected in the Currency Analysis, is useful to investors because it demonstrates the effect of foreign currency on reported sales. The effect of foreign currency on reported sales is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference in these two amounts being the change in core sales and the difference between the change in as reported sales and the change in core sales reported as the currency impact. The company believes that providing adjusted core sales excluding the impacts of product line exits and timing shifts related to implementations of SAP is useful in that it helps investors understand underlying business trends. The company's management believes that "normalized" gross margin, "normalized" SG&A expense, "normalized" operating income and "normalized" tax rates, which exclude restructuring and restructuring-related expenses and one-time events such as costs related to product recalls, the extinguishment of debt, certain tax benefits and charges, impairment charges, discontinued operations and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the company's core ongoing operations. The company's management believes that "normalized" earnings per share, which also excludes restructuring and restructuring-related charges and one-time events such as losses related to product recalls, monetary asset devaluations resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate, the extinguishments of debt, tax benefits and charges, impairment charges, discontinued operations and certain other items, is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. The company also uses both core sales and normalized earnings per share as two of the three performance criteria in its management cash bonus plan.
The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
While the company believes that these non-GAAP financial measures are useful in evaluating the company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, changes in exchange rates, product recalls and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; product liability, product recalls or regulatory actions (including the ultimate resolution of the potential recall of harness buckles on certain infant car seats); our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key information technology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and require impairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations; and those factors listed in the company's most recently filed Annual Report on Form 10-K filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.
Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Three Months Ended March 31,
YOY
2014 2013 % Change
Net sales $ 1,232.2 $ 1,240.8 (0.7)%
Cost of products sold 762.9 767.2
GROSS MARGIN 469.3 473.6 (0.9)%
% of sales 38.1% 38.2%
Selling, general & administrative expenses 352.1 341.4 3.1%
% of sales 28.6% 27.5%
Restructuring costs 12.0 34.4
OPERATING INCOME 105.2 97.8 7.6%
% of sales 8.5% 7.9%
Nonoperating expenses:
Interest expense, net 14.4 14.6
Other expense, net 40.0 13.0
54.4 27.6 97.1%
INCOME BEFORE INCOME TAXES 50.8 70.2 (27.6)%
% of sales 4.1% 5.7%
Income taxes (1.3) 6.4 NMF
Effective rate NMF 9.1%
NET INCOME FROM CONTINUING OPERATIONS 52.1 63.8 (18.3)%
% of sales 4.2% 5.1%
Income (loss) from discontinued operations, net of tax 0.8 (9.6)
NET INCOME $ 52.9 $ 54.2 (2.4)%
4.3% 4.4%
EARNINGS PER SHARE:
Basic
Income from continuing operations $ 0.19 $ 0.22
Income (loss) from discontinued operations $ -- $ (0.03)
Net income $ 0.19 $ 0.19
Diluted
Income from continuing operations $ 0.18 $ 0.22
Income (loss) from discontinued operations $ -- $ (0.03)
Net income $ 0.19 $ 0.19
AVERAGE SHARES OUTSTANDING:
Basic 280.9 290.0
Diluted 283.8 293.1
NMF - Not meaningful
Newell Rubbermaid Inc.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)
Three Months Ended March 31, 2014
GAAP Measure
Restructuring and Charge resulting from
Non-GAAP Measure
Product restructuring-related the devaluation of the Discontinued
Percentage
Reported recall costs (1) costs (2) Venezuelan Bolivar (3) operations (4) Normalized* of Sales
Cost of products sold $ 762.9 $ (8.6) $ -- $ -- $ -- $ 754.3 61.2%
Gross margin $ 469.3 $ 8.6 $ -- $ -- $ -- $ 477.9 38.8%
Selling, general & administrative expenses $ 352.1 $ (2.4) $ (7.7) $ -- $ -- $ 342.0 27.8%
Operating income $ 105.2 $ 11.0 $ 19.7 $ -- $ -- $ 135.9 11.0%
Nonoperating expenses $ 54.4 $ -- $ -- $ (38.7) $ -- $ 15.7
Income before income taxes $ 50.8 $ 11.0 $ 19.7 $ 38.7 $ -- $ 120.2
Income taxes (5) $ (1.3) $ 4.0 $ 5.5 $ 13.9 $ -- $ 22.1
Net income from continuing operations $ 52.1 $ 7.0 $ 14.2 $ 24.8 $ -- $ 98.1
Net income $ 52.9 $ 7.0 $ 14.2 $ 24.8 $ (0.8) $ 98.1
Diluted earnings per share** $ 0.19 $ 0.02 $ 0.05 $ 0.09 $ (0.00) $ 0.35
Three Months Ended March 31, 2013
GAAP Measure Restructuring and Charge resulting from
Non-GAAP Measure
restructuring-related the devaluation of the Discontinued Non-recurring
Percentage
Reported costs (2) Venezuelan Bolivar (3) operations (4) tax items (6) Normalized* of Sales
Selling, general & administrative expenses $ 341.4 $ (6.6) $ -- $ -- $ -- $ 334.8 27.0%
Operating income $ 97.8 $ 41.0 $ -- $ -- $ -- $ 138.8 11.2%
Nonoperating expenses $ 27.6 $ -- $ (11.1) $ -- $ -- $ 16.5
Income before income taxes $ 70.2 $ 41.0 $ 11.1 $ -- $ -- $ 122.3
Income taxes (5) $ 6.4 $ 4.9 $ 4.1 $ -- $ 4.8 $ 20.2
Net income from continuing operations $ 63.8 $ 36.1 $ 7.0 $ -- $ (4.8) $ 102.1
Net income $ 54.2 $ 36.1 $ 7.0 $ 9.6 $ (4.8) $ 102.1
Diluted earnings per share** $ 0.19 $ 0.12 $ 0.02 $ 0.03 $ (0.02) $ 0.35
* Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.
**Totals may not add due to rounding.
(1) During the three months ended March 31, 2014, the Company recognized an $11.0 million charge associated with the Graco product recall.
(2) Restructuring and restructuring-related costs during the three months ended March 31, 2014 include $7.7 million of organizational change implementation and restructuring-related costs and $12.0 million of restructuring costs incurred in connection with Project Renewal. Restructuring and restructuring-related costs during the three months ended March 31, 2013 include $6.6 million of organizational change implementation and restructuring-related costs and $34.4 million of restructuring costs incurred in connection with Project Renewal.
(3) During the three months ended March 31, 2014 and 2013, the Company recognized foreign exchange losses of $38.7 million and $11.1 million, respectively, resulting from the devaluation of the Venezuelan Bolivar, which under hyperinflationary accounting is recorded in the Statement of Operations.
(4) During the three months ended March 31, 2014, the Company recognized net income of $0.8 million in discontinued operations. During the three months ended March 31, 2013, the Company recognized a net loss, including impairments, of $9.6 million in discontinued operations relating to the operations of the Hardware and Teach businesses.
(5) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
(6) During the three months ended March 31, 2013, the Company recognized a non-recurring income tax benefit of $4.8 million resulting from the resolution of various income tax contingencies.
Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
March 31, March 31,
Assets: 2014 2013
Cash and cash equivalents $ 136.8 $ 174.2
Accounts receivable, net 973.1 1,021.3
Inventories, net 801.3 815.0
Deferred income taxes 121.3 155.4
Prepaid expenses and other 198.8 190.7
Total Current Assets 2,231.3 2,356.6
Property, plant and equipment, net 541.3 549.5
Goodwill 2,362.0 2,340.4
Other intangible assets, net 606.5 642.6
Other assets 252.8 308.1
Total Assets $ 5,993.9 $ 6,197.2
Liabilities and Stockholders' Equity:
Accounts payable $ 542.8 $ 570.1
Accrued compensation 99.6 103.0
Other accrued liabilities 590.9 588.5
Short-term debt 318.7 411.8
Current portion of long-term debt 0.8 1.2
Total Current Liabilities 1,552.8 1,674.6
Long-term debt 1,666.7 1,699.6
Other noncurrent liabilities 700.9 834.4
Stockholders' Equity - Parent 2,070.0 1,985.1
Stockholders' Equity - Noncontrolling Interests 3.5 3.5
Total Stockholders' Equity 2,073.5 1,988.6
Total Liabilities and Stockholders' Equity $ 5,993.9 $ 6,197.2
Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)
Three Months Ended March 31,
2014 2013
Operating Activities:
Net income $ 52.9 $ 54.2
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 38.1 39.8
Net (gain) loss from sale of discontinued operations, including impairments (2.2) 12.4
Non-cash restructuring costs 1.0 --
Deferred income taxes 14.6 38.9
Stock-based compensation expense 7.0 9.4
Other, net 45.0 8.9
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:
Accounts receivable 130.5 80.3
Inventories (115.8) (123.4)
Accounts payable (16.1) 45.1
Accrued liabilities and other (247.1) (288.7)
Net cash used in operating activities $ (92.1) $ (123.1)
Investing Activities:
Capital expenditures (31.9) (33.6)
Other (0.3) (0.3)
Net cash used in investing activities $ (32.2) $ (33.9)
Financing Activities:
Net short-term borrowings $ 144.9 $ 200.7
Repurchase and retirement of shares of common stock (44.4) (33.8)
Cash dividends (42.9) (44.5)
Excess tax benefits related to stock-based compensation 5.6 9.1
Other stock-based compensation activity, net 10.7 16.6
Net cash provided by financing activities $ 73.9 $ 148.1
Currency rate effect on cash and cash equivalents $ (39.1) $ (0.7)
Decrease in cash and cash equivalents $ (89.5) $ (9.6)
Cash and cash equivalents at beginning of period 226.3 183.8
Cash and cash equivalents at end of period $ 136.8 $ 174.2
Newell Rubbermaid Inc.
Financial Worksheet- Segment Reporting
(In Millions)
2014 2013
Reconciliation (1,2)
Reconciliation (1)
Year-over-year changes
Reported Excluded Normalized Operating
Reported Excluded Normalized Operating Net Sales Normalized OI
Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
Q1:
Writing $ 361.3 $ 77.1 $ -- $ 77.1 21.3% $ 340.6 $ 63.2 $ -- $ 63.2 18.6% $ 20.7 6.1% $ 13.9 22.0%
Home Solutions 321.2 26.3 -- 26.3 8.2% 338.9 34.1 -- 34.1 10.1% (17.7) (5.2)% (7.8) (22.9)%
Tools 187.8 21.4 -- 21.4 11.4% 188.6 18.7 -- 18.7 9.9% (0.8) (0.4)% 2.7 14.4%
Commercial Products 182.6 13.8 -- 13.8 7.6% 183.1 21.6 -- 21.6 11.8% (0.5) (0.3)% (7.8) (36.1)%
Baby & Parenting 179.3 5.4 11.0 16.4 9.1% 189.6 23.9 -- 23.9 12.6% (10.3) (5.4)% (7.5) (31.4)%
Restructuring Costs -- (12.0) 12.0 --
-- (34.4) 34.4 --
--
--
Corporate -- (26.8) 7.7 (19.1)
-- (29.3) 6.6 (22.7)
--
3.6 15.9%
Total $ 1,232.2 $ 105.2 $ 30.7 $ 135.9 11.0% $ 1,240.8 $ 97.8 $ 41.0 $ 138.8 11.2% $ (8.6) (0.7)% $ (2.9) (2.1)%
(1) Excluded items consist of organizational change implementation, restructuring-related, and restructuring costs. Organizational change implementation and restructuring-related costs of $7.7 million and restructuring costs of $12.0 million incurred during 2014 relate to Project Renewal. For 2013, organizational change implementation and restructuring-related costs of $6.6 million and restructuring costs of $34.4 million relate to Project Renewal.
(2) Baby & Parenting normalized operating income for the three months ended March 31, 2014 excludes charges of $11.0 million relating to the Graco product recall.
Newell Rubbermaid Inc.
Three Months Ended March 31, 2014
In Millions
Currency Analysis
By Segment
Net Sales, Core
Year-Over-Year
As Reported Sales (1)
Increase (Decrease)
Increase
Increase Currency Excluding Including Currency
2014 2013 (Decrease) 2014 2013 (Decrease) Impact Currency Currency Impact
Writing $ 361.3 $ 340.6 $ 20.7 $ 364.5 $ 337.6 $ 26.9 $ (6.2) 8.0% 6.1% (1.9)%
Home Solutions 321.2 338.9 (17.7) 323.1 338.2 (15.1) (2.6) (4.5)% (5.2)% (0.7)%
Tools 187.8 188.6 (0.8) 190.2 185.8 4.4 (5.2) 2.4% (0.4)% (2.8)%
Commercial Products 182.6 183.1 (0.5) 183.1 182.8 0.3 (0.8) 0.2% (0.3)% (0.5)%
Baby & Parenting 179.3 189.6 (10.3) 179.9 188.2 (8.3) (2.0) (4.4)% (5.4)% (1.0)%
Total Company $ 1,232.2 $ 1,240.8 $ (8.6) $ 1,240.8 $ 1,232.6 $ 8.2 $ (16.8) 0.7% (0.7)% (1.4)%
By Geography
United States $ 831.2 $ 818.9 $ 12.3 $ 831.2 $ 818.9 $ 12.3 $ -- 1.5% 1.5% 0.0%
Canada 53.0 61.8 (8.8) 56.5 60.7 (4.2) (4.6) (6.9)% (14.2)% (7.3)%
Total North America 884.2 880.7 3.5 887.7 879.6 8.1 (4.6) 0.9% 0.4% (0.5)%
Europe, Middle East and Africa 164.2 167.1 (2.9) 159.5 168.0 (8.5) 5.6 (5.1)% (1.7)% 3.4%
Latin America 92.0 93.2 (1.2) 97.8 88.9 8.9 (10.1) 10.0% (1.3)% (11.3)%
Asia Pacific 91.8 99.8 (8.0) 95.8 96.1 (0.3) (7.7) (0.3)% (8.0)% (7.7)%
Total International 348.0 360.1 (12.1) 353.1 353.0 0.1 (12.2) 0.0% (3.4)% (3.4)%
Total Company $ 1,232.2 $ 1,240.8 $ (8.6) $ 1,240.8 $ 1,232.6 $ 8.2 $ (16.8) 0.7% (0.7)% (1.4)%
Core Sales, Excluding Brazil SAP
2014 2013 Brazil 2013 Excl
Core Sales Excl
Core Sales (1) Core Sales (1) SAP Conversion (2) Brazil SAP Increase Brazil SAP
Tools $ 190.2 $ 185.8 $ (5.0) $ 180.8 $ 9.4 5.2%
LATAM $ 97.8 $ 88.9 $ (5.0) $ 83.9 $ 13.9 16.6%
Core Sales, Excluding EMEA Product Line Exits
2014 Product 2014 Excl 2013
Core Sales Excl
Core Sales (1) Line Exits (3) Product Line Exits Core Sales (1) Decrease Product Line Exits
EMEA $ 159.5 $ 6.3 $ 165.8 $ 168.0 $ (2.2) (1.3)%
(1) "Core Sales" is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference between the change in "As Reported" sales and the change in "Core Sales" reported in the table as "Currency Impact".
(2) In contemplation of the Brazil SAP conversion in April 2013, the Company communicated with key customers about their interest in accelerating orders to mitigate the risk of potential business disruption. The Company estimated the impact of the timing shift related to the Brazil SAP conversion by tracking orders from customers that accelerated their normal order patterns as a result of the Company's communications.
(3) As part of Project Renewal, the Company exited certain product lines in EMEA that negatively impacted first quarter 2014 sales by an estimated $6.3 million.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
David Doolittle
Vice President, Global Communications
(770) 418-7519
6:36 am Newell Rubbermaid beats by $0.03, misses on revs; reaffirms FY14 guidance; raises quarterly dividend 13% to $0.17 (NWL) : Reports Q1 (Mar) earnings of $0.35 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.32; revenues fell 0.7% year/year to $1.23 bln vs the $1.25 bln consensus.
Core sales, which exclude the impact of changes in foreign currency, grew 0.7 percent.
Normalized gross margin was 38.8 percent, a 60 basis point improvement compared with the prior year period. Reported gross margin was 38.1 percent versus 38.2 percent in the prior year period.
"We are confident in our full year financial guidance and expect the company's core sales and earnings per share growth to accelerate through the balance of the year as we significantly increase advertising and promotion investment levels in support of our brands and innovation. Importantly, the Board of Directors has approved a 13 percent increase in our quarterly dividend to $0.17, an annualized rate of $0.68 per share. This is the fourth dividend increase in the last three years, which is a reflection of the Board's continued confidence in Newell's strong cash generation ability and in the promise of our Growth Game Plan."
The company expects the infant harness buckle discussions will be resolved in the second quarter.
Co reaffirms guidance for FY14, sees EPS of $1.94-2.00, excluding non-recurring items, vs. $1.98 Capital IQ Consensus; reaffirms cores sales +3-4%. The company now expects foreign exchange to have a negative impact on 2014 net sales of about 200 basis points and to have a negative impact on both normalized and reported EPS of $0.04 to $0.05 per diluted share for the balance of 2014. Subsequent to the first quarter, the company will begin using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (~10.5 to 11.0 Bolivars per U.S. dollar).
6:36 am Newell Rubbermaid beats by $0.03, misses on revs; reaffirms FY14 guidance; raises quarterly dividend 13% to $0.17 (NWL) : Reports Q1 (Mar) earnings of $0.35 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.32; revenues fell 0.7% year/year to $1.23 bln vs the $1.25 bln consensus.
Core sales, which exclude the impact of changes in foreign currency, grew 0.7 percent.
Normalized gross margin was 38.8 percent, a 60 basis point improvement compared with the prior year period. Reported gross margin was 38.1 percent versus 38.2 percent in the prior year period.
"We are confident in our full year financial guidance and expect the company's core sales and earnings per share growth to accelerate through the balance of the year as we significantly increase advertising and promotion investment levels in support of our brands and innovation. Importantly, the Board of Directors has approved a 13 percent increase in our quarterly dividend to $0.17, an annualized rate of $0.68 per share. This is the fourth dividend increase in the last three years, which is a reflection of the Board's continued confidence in Newell's strong cash generation ability and in the promise of our Growth Game Plan."
The company expects the infant harness buckle discussions will be resolved in the second quarter.
Co reaffirms guidance for FY14, sees EPS of $1.94-2.00, excluding non-recurring items, vs. $1.98 Capital IQ Consensus; reaffirms cores sales +3-4%. The company now expects foreign exchange to have a negative impact on 2014 net sales of about 200 basis points and to have a negative impact on both normalized and reported EPS of $0.04 to $0.05 per diluted share for the balance of 2014. Subsequent to the first quarter, the company will begin using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (~10.5 to 11.0 Bolivars per U.S. dollar).
Lakes Entertainment, Inc. Announces Sale of Its Ownership in Dania Entertainment Holdings
Business Wire Lakes Entertainment, Inc.
April 23, 2014 6:30 AM
MINNEAPOLIS--(BUSINESS WIRE)--
Lakes Entertainment, Inc. (LACO) announced that on April 21, 2014, its wholly owned subsidiary Lakes Florida Development, LLC (“Lakes”) entered into a Redemption Agreement with Dania Entertainment Holdings, LLC (“DEH”)). The Redemption Agreement provides that DEH redeemed Lakes’s 20% ownership in DEH in consideration for DEH transferring to Lakes 5% ownership in Dania Entertainment Center, LLC (the entity that owns the Dania Casino & Jai Alai in Dania Beach, Florida)(“DEC”). Concurrently, Lakes entered into a Purchase Agreement with ONDISS Corp. (“ONDISS”) pertaining to the sale of Lakes’s membership interest of DEC (“Purchase Agreement”). The Purchase Agreement provides that ONDISS will pay Lakes a total purchase price of approximately $2,500,000 for the 5% ownership in DEC that was transferred to Lakes by DEH. ONDISS made an initial payment to Lakes of $1,000,000 on April 21, 2014 at which time 40% of Lakes’s ownership in DEC was transferred to ONDISS. The remaining purchase price will be paid in three equal semi-annual installments of $530,323.76, and 20% of Lakes’s original ownership in DEC will be transferred to ONDISS upon each payment.
The newly renovated Dania Casino & Jai Alia features 550 slot machines, a poker room, simulcast, a bistro and lounge bar, and live Jai Alai.
“We are pleased we could reach an agreement with ONDISS to purchase our ownership in Dania,” said Lyle Berman, CEO of Lakes. “We believe receiving $2,500,000 for this asset that we had previously written off is a good result for our shareholders,” added Mr. Berman.
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino Resort near Cumberland, Maryland, and has an investment in Rock Ohio Ventures, LLC’s casino and racino developments in Ohio.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, those relating to the inability to complete or possible delays in completion of Lakes' casino projects, including various regulatory approvals and numerous other conditions which must be satisfied before completion of these projects; possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; risks of entry into new businesses; reliance on Lakes' management and litigation costs. For more information, review the company's filings with the Securities and Exchange Commission.
Contact:
Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030
Apple Reports Second Quarter Results
Strong iPhone Sales Drive Record March Quarter Revenue and 15 Percent EPS Growth
Business Wire Apple Inc.
2 hours ago
CUPERTINO, Calif.--(BUSINESS WIRE)--
Apple® today announced financial results for its fiscal 2014 second quarter ended March 29, 2014. The Company posted quarterly revenue of $45.6 billion and quarterly net profit of $10.2 billion, or $11.62 per diluted share. These results compare to revenue of $43.6 billion and net profit of $9.5 billion, or $10.09 per diluted share, in the year-ago quarter. Gross margin was 39.3 percent compared to 37.5 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.
“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”
“We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter,” said Peter Oppenheimer, Apple’s CFO. “That brings cumulative payments under our capital return program to $66 billion.”
Apple is providing the following guidance for its fiscal 2014 third quarter:
• revenue between $36 billion and $38 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $4.4 billion and $4.5 billion
• other income/(expense) of $200 million
• tax rate of 26.1 percent
Apple will provide live streaming of its Q2 2014 financial results conference call beginning at 2:00 p.m. PDT on April 23, 2014 at www.apple.com/quicktime/qtv/earningsq214. This webcast will also be available for replay for approximately two weeks thereafter.
This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 28, 2013, its Form 10-Q for the quarter ended December 28, 2013, and its Form 10-Q for the quarter ended March 29, 2014 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.
NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.
© 2014 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended
Six Months Ended
March 29,
2014
March 30,
2013
March 29,
2014
March 30,
2013
Net sales $ 45,646 $ 43,603 $ 103,240 $ 98,115
Cost of sales (1) 27,699 27,254 63,447 60,706
Gross margin 17,947 16,349 39,793 37,409
Operating expenses:
Research and development (1) 1,422 1,119 2,752 2,129
Selling, general and administrative (1) 2,932 2,672 5,985 5,512
Total operating expenses 4,354 3,791 8,737 7,641
Operating income 13,593 12,558 31,056 29,768
Other income/(expense), net 225 347 471 809
Income before provision for income taxes 13,818 12,905 31,527 30,577
Provision for income taxes 3,595 3,358 8,232 7,952
Net income $ 10,223 $ 9,547 $ 23,295 $ 22,625
Earnings per share:
Basic $ 11.69 $ 10.16 $ 26.31 $ 24.09
Diluted $ 11.62 $ 10.09 $ 26.16 $ 23.90
Shares used in computing earnings per share:
Basic 874,757 939,629 885,415 939,273
Diluted 879,528 946,035 890,490 946,626
Cash dividends declared per common share $ 3.05 $ 2.65 $ 6.10 $ 5.30
(1) Includes share-based compensation expense as follows:
Cost of sales $ 110 $ 87 $ 219 $ 172
Research and development $ 300 $ 239 $ 589 $ 463
Selling, general and administrative $ 286 $ 249 $ 569 $ 485
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands)
March 29,
2014
September 28,
2013
ASSETS:
Current assets:
Cash and cash equivalents $ 18,949 $ 14,259
Short-term marketable securities 22,401 26,287
Accounts receivable, less allowances of $88 and $99, respectively 9,700 13,102
Inventories 1,829 1,764
Deferred tax assets 4,014 3,453
Vendor non-trade receivables 6,120 7,539
Other current assets 7,528 6,882
Total current assets 70,541 73,286
Long-term marketable securities 109,239 106,215
Property, plant and equipment, net 15,120 16,597
Goodwill 2,055 1,577
Acquired intangible assets, net 3,928 4,179
Other assets 5,106 5,146
Total assets $ 205,989 $ 207,000
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 18,914 $ 22,367
Accrued expenses 15,984 13,856
Deferred revenue 8,310 7,435
Total current liabilities 43,208 43,658
Deferred revenue – non-current 3,164 2,625
Long-term debt 16,962 16,960
Other non-current liabilities 22,476 20,208
Total liabilities 85,810 83,451
Commitments and contingencies
Shareholders' equity:
Common stock and additional paid-in capital, $0.00001 par value: 1,800,000 shares authorized; 861,745 and 899,213 shares issued and outstanding, respectively 21,496 19,764
Retained earnings 98,934 104,256
Accumulated other comprehensive income/(loss) (251) (471)
Total shareholders' equity 120,179 123,549
Total liabilities and shareholders' equity $ 205,989 $ 207,000
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Six Months Ended
March 29, 2014 March 30, 2013
Cash and cash equivalents, beginning of the period $ 14,259 $ 10,746
Operating activities:
Net income 23,295 22,625
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 4,031 3,280
Share-based compensation expense 1,377 1,120
Deferred income tax expense 2,059 1,957
Changes in operating assets and liabilities:
Accounts receivable, net 3,401 3,846
Inventories (65) (454)
Vendor non-trade receivables 1,419 1,510
Other current and non-current assets 14 1,269
Accounts payable (2,375) (4,422)
Deferred revenue 1,414 1,541
Other current and non-current liabilities 1,638 3,658
Cash generated by operating activities 36,208 35,930
Investing activities:
Purchases of marketable securities (90,360) (81,163)
Proceeds from maturities of marketable securities 10,869 9,243
Proceeds from sales of marketable securities 80,241 49,188
Payments made in connection with business acquisitions, net (559) (299)
Payments for acquisition of property, plant and equipment (3,367) (4,325)
Payments for acquisition of intangible assets (163) (429)
Other (23) (93)
Cash used in investing activities (3,362) (27,878)
Financing activities:
Proceeds from issuance of common stock 341 275
Excess tax benefits from equity awards 363 502
Taxes paid related to net share settlement of equity awards (430) (588)
Dividends and dividend equivalents paid (5,430) (4,984)
Repurchase of common stock (23,000) (1,950)
Cash used in financing activities (28,156) (6,745)
Increase in cash and cash equivalents 4,690 1,307
Cash and cash equivalents, end of the period $ 18,949 $ 12,053
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 5,369 $ 4,258
Cash paid for interest $ 161 $ 0
Apple Inc.
Q2 2014 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q2'14 Q1'14 Q2'13 Sequential Change Year/Year Change
Operating Segments Revenue Revenue Revenue Revenue Revenue
Americas $14,310 $20,098 $14,052 - 29% 2%
Europe 10,230 13,073 9,800 - 22% 4%
Greater China (a) 9,289 8,844 8,213 5% 13%
Japan 3,963 4,948 3,135 - 20% 26%
Rest of Asia Pacific 2,627 3,633 3,162 - 28% - 17%
Retail 5,227 6,998 5,241 - 25% 0%
Total Apple $45,646 $57,594 $43,603 - 21% 5%
Q2'14 Q1'14 Q2'13 Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
iPhone (b) 43,719 $26,064 51,025 $32,498 37,430 $22,955 - 14% - 20% 17% 14%
iPad (b) 16,350 7,610 26,035 11,468 19,477 8,746 - 37% - 34% - 16% - 13%
Mac (b) 4,136 5,519 4,837 6,395 3,952 5,447 - 14% - 14% 5% 1%
iPod (b) 2,761 461 6,049 973 5,633 962 - 54% - 53% - 51% - 52%
iTunes/Software/Services (c) 4,573 4,397 4,114 4% 11%
Accessories (d) 1,419 1,863 1,379 - 24% 3%
Total Apple $45,646 $57,594 $43,603 - 21% 5%
(a)
Greater China includes China, Hong Kong and Taiwan.
(b)
Includes deferrals and amortization of related non-software services and software upgrade rights.
(c)
Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBooks Store, and revenue from sales of AppleCare, licensing and other services.
(d)
Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod.
Contact:
Apple
Press:
Steve Dowling, 408-974-1896
dowling@apple.com
or
Investor Relations:
Nancy Paxton, 408-974-5420
paxton1@apple.com
Joan Hoover, 408-974-4570
hoover1@apple.com
The "Street has UTMD coming in at .91 for the quarter that should be reported on or about May 05, 2014! All post's welcome! The "Good Dr's In"!
The "Street has UTMD coming in at .91 for the quarter that should be reported on or about May 05, 2014! All post's welcome! The "Good Dr's In"!
It's going to continue to firm up as it appears to be building a new base before it's next advance!
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Netflix Releases First-Quarter 2014 Financial Results
PR Newswire Netflix, Inc.
6 hours ago
LOS GATOS, Calif., April 21, 2014 /PRNewswire/ -- Netflix, Inc. (NFLX) has released its first-quarter 2014 financial results by posting them to its website. Please visit the Netflix investor relations website at http://ir.netflix.com to view the Q1'14 financial results and letter to shareholders.
View photo
.lix, Inc. Logo
Netflix Chief Executive Officer Reed Hastings, Chief Financial Officer David Wells and Chief Content Officer Ted Sarandos will participate in a live video interview at 2 p.m. Pacific Time at youtube.com/netflixir. The interview will be conducted by Rich Greenfield of BTIG Research and Doug Anmuth of JP Morgan. Questions that investors would like to see asked should be sent to rgreenfield@btig.com or douglas.anmuth@jpmorgan.com.
About Netflix, Inc.
Netflix is the world's leading Internet television network with over 48 million members in more than 40 countries enjoying more than one billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Learn more about how Netflix (NFLX) is pioneering Internet television at www.netflix.com or follow Netflix on Facebook and Twitter.
Logo - http://photos.prnewswire.com/prnh/20101014/SF81638LOGO
The "Street has WETF coming in at .16625 for the 1st Quarter 2014 that should be reported on or about May 02, 2014! All post's welcome! The "Good Dr's In"!
WisdomTree Schedules Earnings Conference Call for Q1 on May 2, 2014 at 9:00 a.m. ET
GlobeNewswire WisdomTree Investments, Inc.
April 16, 2014 1:00 PM
NEW YORK, April 16, 2014 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (WETF), an exchange-traded fund ("ETF") sponsor and asset manager, announced today that it plans to release its first quarter results on May 2, 2014 at 7:00 a.m. ET. A conference call to discuss the firm's results will be held at 9:00 a.m. ET.
Teleconference and Webcast Details
The call and accompanying presentation will be accessible as a webcast on the Investor Relations section of WisdomTree's web site at http://ir.wisdomtree.com/. A replay will be available on the web site shortly after the call.
Those wishing to listen to the live conference via telephone should dial-in at least 10 minutes before the call begins at the following telephone numbers:
Live Dial-in Information:
United States: (877) 303-7209
International: (970) 315-0420
About WisdomTree
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Northern Trust Corporation Reports First Quarter Net Income of $181.4 Million, Earnings Per Common Share of $0.75
Business Wire Northern Trust Corporation
April 15, 2014 7:56 AM
CHICAGO--(BUSINESS WIRE)--
Northern Trust Corporation today reported first quarter net income per diluted common share of $0.75, up from $0.67 in the first quarter of 2013 and $0.70 in the fourth quarter of 2013. Net income was $181.4 million in the current quarter, up 11% from $164.0 million in the prior year first quarter, and up 7% from $169.7 million in the prior quarter. Return on average common equity was 9.3% in the current quarter, compared to 8.8% in the prior year quarter and 8.7% in the prior quarter.
Frederick H. Waddell, Chairman and Chief Executive Officer, said, “Our first quarter 2014 results improved compared to a year ago with trust, investment and other servicing fees increasing 8%, total revenue increasing 7% and net income and earnings per share increasing 11 and 12%, respectively. We also experienced strong growth in client assets under custody and under management of 15% and 13%, respectively.
We continue to focus on enhancing productivity and efficiency, while investing in people and technology to serve our growing businesses, expand our capabilities and continue to satisfy evolving regulatory requirements.
Northern Trust’s financial strength is evidenced in our capital ratios, and we are pleased that the Federal Reserve did not object to the proposed capital actions contained in our 2014 Capital Plan, which provides us with the flexibility to return more capital to our stockholders in the year ahead.”
FIRST QUARTER 2014 PERFORMANCE VS. FIRST QUARTER 2013
Net income per common share was $0.75 in the first quarter of 2014 compared to $0.67 in the first quarter of 2013. Net income for the current quarter was $181.4 million, up $17.4 million, or 11%, from $164.0 million in the prior year quarter. The prior year quarter included a $12.4 million pre-tax write-off of certain fee receivables resulting from the correction of an accrual methodology followed in prior years, as well as restructuring and integration related charges of $1.8 million. These prior year quarter items totaled $14.2 million ($8.9 million after tax, or $0.04 per common share).
Revenue of $1.04 billion in the current quarter was up $64.1 million, or 7%, from $976.4 million in the prior year quarter. Noninterest income, which represented 76% of revenue, increased $44.5 million, or 6%, to $794.8 million from the prior year quarter’s $750.3 million, primarily reflecting higher trust, investment and other servicing fees, partially offset by lower foreign exchange trading income as compared to the prior year quarter. Net interest income for the current quarter on a fully taxable equivalent (FTE) basis increased $20.7 million, or 9%, to $254.4 million compared to $233.7 million in the prior year quarter, due to higher levels of average earning assets, partially offset by a decrease in the net interest margin.
Trust, investment and other servicing fees were $679.5 million in the current quarter, up $48.8 million, or 8%, from $630.7 million in the prior year quarter. The increase primarily reflects new business and the favorable impact of equity markets, partially offset by higher waived fees in money market mutual funds.
Assets under custody and assets under management are the primary drivers of our trust, investment and other servicing fees. The following table provides the assets under custody and assets under management of Northern Trust’s Corporate & Institutional Services (C&IS) and Wealth Management business units.
March 31, December 31, March 31, % Change % Change
($ In Billions) 2014 2013 2013 Q1-14/Q4-13 Q1-14/Q1-13
Assets Under Custody
Corporate & Institutional $ 5,249.9 $ 5,079.7 $ 4,569.1 3 % 15 %
Wealth Management 503.6 496.0 455.3 2 11
Total Assets Under Custody $ 5,753.5 $ 5,575.7 $ 5,024.4 3 % 15 %
Assets Under Management
Corporate & Institutional $ 698.2 $ 662.7 $ 604.2 5 % 16 %
Wealth Management 217.2 221.8 206.0 (2) 5
Total Assets Under Management $ 915.4 $ 884.5 $ 810.2 3 % 13 %
C&IS trust, investment and other servicing fees increased $30.5 million, or 9%, to $379.2 million in the current quarter from the prior year quarter’s $348.7 million.
Q1 Q1
Change Q1 2014
($ In Millions) 2014 2013
from Q1 2013
C&IS Trust, Investment and Other Servicing Fees
Custody and Fund Administration $ 252.2 $ 223.8 $ 28.4 13 %
Investment Management 75.0 75.5 (0.5 ) (1 )
Securities Lending 22.7 22.3 0.4 2
Other 29.3 27.1 2.2 8
Total $ 379.2 $ 348.7 $ 30.5 9 %
Custody and fund administration fees, the largest component of C&IS fees, increased 13%, primarily driven by new business and the favorable impact of equity markets. C&IS investment management fees decreased 1%, primarily reflecting higher waived fees in money market mutual funds, partially offset by higher equity markets and new business. Money market mutual fund fee waivers in C&IS, attributable to persistent low short-term interest rates, totaled $14.9 million in the current quarter, compared to waived fees of $8.8 million in the prior year quarter. Securities lending revenue increased 2%, primarily reflecting higher volumes in the current quarter.
Trust, investment and other servicing fees in Wealth Management totaled $300.3 million in the current quarter, increasing $18.3 million, or 6%, from $282.0 million in the prior year quarter. The increased fees in the current quarter are primarily due to higher equity markets and new business, partially offset by higher waived fees in money market mutual funds and the impact of fee reductions in certain of our mutual funds. Money market mutual fund fee waivers in Wealth Management totaled $17.6 million in the current quarter compared with $13.4 million in the prior year quarter.
Foreign exchange trading income totaled $50.1 million, down $9.4 million, or 16%, compared with $59.5 million in the prior year quarter. The decrease is attributable to lower currency market volatility as compared to the prior year quarter.
Other operating income totaled $37.7 million in the current quarter, up $12.9 million, or 53% from $24.8 million in the prior year quarter. The prior year quarter included the $12.4 million write-off of certain fee receivables.
Net investment security losses totaled $4.0 million in the current quarter, reflecting $3.9 million of charges relating to the other-than-temporary impairment of certain Community Reinvestment Act eligible securities.
Net interest income for the quarter on an FTE basis totaled $254.4 million, up $20.7 million, or 9%, compared to $233.7 million in the prior year quarter. The increase is the result of higher levels of average earning assets, partially offset by a decline in the net interest margin to 1.12% from 1.15% in the prior year quarter. Average earning assets for the quarter were $91.8 billion, up $9.6 billion, or 12%, from $82.2 billion in the prior year quarter, primarily reflecting higher levels of Federal Reserve deposits. The increase in Federal Reserve deposits as compared to the prior year quarter reflects higher levels of non-U.S. office client interest-bearing deposits and other short-term borrowings. The decline in the net interest margin primarily reflects lower yields on earning assets, partially offset by a lower cost of interest-related funds.
The provision for credit losses totaled $3.0 million in the current quarter compared to $5.0 million in the prior year quarter. The current quarter includes net charge-offs of $1.5 million, resulting from charge-offs of $11.5 million and recoveries of $10.0 million. The prior year quarter included $8.7 million of net charge-offs, resulting from $12.6 million of charge-offs and $3.9 million of recoveries. Nonperforming assets increased 3% from the prior year quarter. Residential real estate loans and commercial real estate loans accounted for 70% and 20%, respectively, of total nonperforming loans and leases at March 31, 2014.
The table below provides information regarding nonperforming assets, the allowance for credit losses, and associated ratios.
March 31, December 31, March 31,
($ In Millions) 2014 2013 2013
Nonperforming Assets
Nonperforming Loans and Leases $ 259.9 $ 262.8 $ 251.7
Other Real Estate Owned 9.8 11.9 10.5
Total Nonperforming Assets 269.7 274.7 262.2
Allowance for Credit Losses
Allowance for Credit Losses Assigned to:
Loans and Leases 279.2 278.1 294.1
Undrawn Loan Commitments and Standby Letters of Credit
30.2 29.8 29.7
Total Allowance for Credit Losses $ 309.4 $ 307.9 $ 323.8
Ratios
Nonperforming Loans and Leases to Total Loans and
Leases
0.88 % 0.89 % 0.87 %
Allowance for Credit Losses Assigned to Loans
and Leases to Total Loans and Leases 0.94 % 0.95 % 1.02 %
Allowance for Credit Losses Assigned to Loans and
Leases to Nonperforming Loans and Leases
1.1x 1.1x 1.2x
Noninterest expense totaled $768.0 million in the current quarter, up $39.1 million, or 5%, from $728.9 million in the prior year quarter, reflecting higher compensation, outside services, and equipment and software expense, partially offset by lower other operating expense.
Compensation expense, the largest component of noninterest expense, equaled $341.8 million, up $21.5 million, or 7%, from $320.3 million in the prior year quarter, primarily attributable to higher staff levels and base pay adjustments. Staff on a full-time equivalent basis at March 31, 2014 totaled approximately 14,900, up 5% from a year ago.
Employee benefit expense equaled $66.9 million, up 6% from $63.3 million in the prior year quarter, primarily reflecting higher payroll tax expense and expense associated with employee medical benefits, partially offset by lower pension expense.
Expense associated with outside services totaled $144.4 million, up $14.5 million, or 11%, from $129.9 million in the prior year quarter. The current quarter increase primarily reflects higher consulting expense, including costs associated with a growing set of regulatory and compliance requirements, as well as increased sub-custodian and technical services expense, as compared to the prior year quarter.
Equipment and software expense totaled $101.3 million, up $9.9 million, or 11%, from $91.4 million in the prior year quarter. The current quarter includes higher software amortization and related software support costs.
Occupancy expense equaled $44.2 million, up 2% from $43.2 million in the prior year quarter.
Other operating expense totaled $69.4 million, down $11.4 million, or 14%, from $80.8 million in the prior year quarter, primarily reflecting lower charges associated with account servicing activities.
Income tax expense was $88.1 million in the current quarter, representing an effective tax rate of 32.7%, and $78.5 million in the prior year quarter, representing an effective tax rate of 32.4%.
FIRST QUARTER 2014 PERFORMANCE VS. FOURTH QUARTER 2013
Net income per common share was $0.75 in the current quarter, compared to $0.70 in the fourth quarter of 2013. Net income for the current quarter totaled $181.4 million, up $11.7 million, or 7%, from $169.7 million in the prior quarter. The prior quarter included a $19.2 million pre-tax charge ($11.9 million after tax, or $0.05 per common share) in connection with an agreement to resolve certain long-standing class action litigation related to Northern Trust’s securities lending program.
Revenue was $1.04 billion in the current quarter compared to $1.05 billion in the prior quarter. Noninterest income in the current quarter decreased slightly to $794.8 million from the prior quarter’s $795.3 million. Net interest income for the current quarter on an FTE basis decreased 2%, to $254.4 million from $259.1 million in the prior quarter.
Trust, investment and other servicing fees totaled $679.5 million in the current quarter, up $5.7 million, or 1%, from $673.8 million in the prior quarter, primarily reflecting new business and higher equity markets in the current quarter.
C&IS trust, investment and other servicing fees totaled $379.2 million in the current quarter, up $8.1 million, or 2%, from $371.1 million in the prior quarter.
Q1 Q4
Change Q1 2014
($ In Millions) 2014 2013
from Q4 2013
C&IS Trust, Investment and Other Servicing Fees
Custody and Fund Administration $ 252.2 $ 251.3 $ 0.9 - %
Investment Management 75.0 74.9 0.1 -
Securities Lending 22.7 21.8 0.9 4
Other 29.3 23.1 6.2 27
Total $ 379.2 $ 371.1 $ 8.1 2 %
C&IS custody and fund administration fees were relatively unchanged as compared to the prior quarter, as new business and higher equity markets were offset by lower sub-custody recoveries and other items. Investment management fees, which include waived fees in money market mutual funds attributable to the low short-term interest rates, were also relatively unchanged as compared to the prior quarter. Money market mutual fund fee waivers totaled $14.9 million in C&IS in the current quarter, compared to $14.7 million in the prior quarter. Securities lending revenue increased 4%, primarily reflecting increased volumes in the current quarter. Other C&IS trust, investment and other servicing fees increased 27%, primarily reflecting increased income attributable to benefit payment and investment risk and analytical services in the current quarter.
Wealth Management trust, investment and other servicing fees were $300.3 million, down 1% from $302.7 million in the prior quarter. While higher equity markets and new business benefitted fee growth, two fewer days in the quarter, higher money market fund fee waivers and the impact of fee reductions in certain of our mutual funds all detracted from sequential quarter fee growth. Money market mutual fund fee waivers in Wealth Management totaled $17.6 million in the current quarter, compared to $16.2 million in the prior quarter.
Foreign exchange trading income decreased 1% to $50.1 million compared to $50.8 million in the prior quarter, reflecting lower currency market volatility in the current quarter.
Other operating income in the current quarter totaled $37.7 million, down 1% from $38.2 million in the prior quarter.
Net investment security losses of $4.0 million in the current quarter reflect the $3.9 million charges relating to the other-than-temporary impairment of certain Community Reinvestment Act eligible securities.
Net interest income on an FTE basis in the current quarter totaled $254.4 million, down 2% compared to $259.1 million in the prior quarter. Average earning assets totaled $91.8 billion in the current quarter, up slightly from $91.6 billion in the prior quarter, and the net interest margin was 1.12% in both the current and prior quarter. The decrease in net interest income reflects two fewer days in the current quarter over which to accrue interest income as compared to the prior quarter.
The provision for credit losses was $3.0 million in the current quarter compared to $5.0 million in the prior quarter. Net charge-offs totaled $1.5 million for the current quarter resulting from $11.5 million of charge-offs and $10.0 million of recoveries, compared to $14.6 million of net charge-offs in the prior quarter resulting from $19.5 million of charge-offs and $4.9 million of recoveries. Nonperforming assets decreased 2% as compared to the prior quarter.
Noninterest expense totaled $768.0 million in the current quarter, down $26.5 million, or 3% from $794.5 million in the prior quarter. The prior quarter included the $19.2 million pre-tax charge in connection with the agreement to resolve certain long-standing class action litigation.
Excluding this charge, noninterest expense as compared to the prior quarter decreased $7.3 million, or 1%, primarily reflecting decreases within outside services expense and other operating expense, partially offset by higher compensation expense in the current quarter.
Compensation expense totaled $341.8 million for the current quarter, up $7.0 million, or 2%, from $334.8 million in the prior quarter, primarily reflecting higher share-based compensation expense as compared to the prior quarter. Employee benefit expense totaled $66.9 million for the current quarter, up 1% from $66.5 million in the prior quarter, primarily attributable to higher payroll tax expense, partially offset by lower pension expense.
Expense for outside services totaled $144.4 million, a decrease of $7.7 million, or 5%, compared to $152.1 million in the prior quarter, reflecting lower consulting and other outside services expense in the current quarter.
Equipment and software expense totaled $101.3 million in the current quarter, up 3% from $98.6 million in the prior quarter, primarily reflecting higher software amortization associated with the continued investment in technology related assets. Occupancy expense totaled $44.2 million, up 1% from $43.8 million in the prior quarter.
Other operating expense totaled $69.4 million, down $29.3 million, or 30%, from $98.7 million in the prior quarter. Excluding the prior quarter $19.2 million pre-tax charge, other operating expense as compared to the prior quarter decreased $10.1 million, or 13%, primarily reflecting lower charges associated with other account servicing activities, partially offset by increased business promotion expense.
Total income tax expense was $88.1 million for the current quarter, representing an effective tax rate of 32.7%. Income tax expense was $76.0 million in the prior quarter, representing an effective tax rate of 30.9%.
STOCKHOLDERS’ EQUITY
Total stockholders’ equity averaged $7.9 billion, up 5% from the prior year quarter’s average of $7.5 billion. The increase is primarily attributable to retained earnings, partially offset by dividend declarations and the repurchase of common stock pursuant to the Corporation’s share buyback program. During the three months ended March 31, 2014, the Corporation repurchased 2,624,715 shares at a cost of $163.0 million ($62.10 average price per share).
As reflected in the table below, the risk-based capital ratios of Northern Trust and its principal subsidiary bank, The Northern Trust Company, remained strong at March 31, 2014, with all ratios exceeding the U.S. regulatory requirements for classification as “well capitalized” institutions.
March 31, 2014 December 31, 2013 March 31, 2013
Tier 1 Total Leverage Tier 1 Total Leverage Tier 1 Total Leverage
Capital Capital Ratio Capital Capital Ratio Capital Capital Ratio
Northern Trust Corporation 13.0 % 15.5 % 7.8 % 13.4 % 15.8 % 7.9 % 13.3 % 14.7 % 8.4 %
The Northern Trust Company 11.7 % 14.2 % 6.9 % 11.5 % 14.3 % 6.8 % 12.2 % 14.0 % 7.7 %
Minimum to Qualify as
Well Capitalized
6.0 % 10.0 % 5.0 % 6.0 % 10.0 % 5.0 % 6.0 % 10.0 % 5.0 %
The following table provides the Corporation’s ratio of tier 1 capital and of common equity tier 1 capital to risk-weighted assets. Beginning January 1, 2014, common equity tier 1 capital is calculated in accordance with the Basel III risk-based capital guidelines, which requires the phasing out of tier 1 capital of 50% of trust preferred securities, and the inclusion in common equity tier 1 capital of certain additional capital items excluded from tier 1 capital.
March 31,
($ In Millions) 2014
Ratios
Tier 1 Capital 13.0 %
Common Equity Tier 1 Capital 12.8 %
Tier 1 Capital $ 7,761.3
Less: Floating Rate Capital Securities 134.4
Other adjustments 2.6
Common Equity Tier 1 Capital $ 7,629.5
RECONCILIATION OF REPORTED NET INTEREST INCOME TO FULLY TAXABLE EQUIVALENT
Net interest income stated on an FTE basis is a non-GAAP financial measure that facilitates the analysis of asset yields. Management believes an FTE presentation provides a clearer indication of net interest margins for comparative purposes. When adjusted to an FTE basis, yields on taxable, nontaxable, and partially taxable assets are comparable; however, the adjustment to an FTE basis has no impact on net income. The tables below present a reconciliation of interest income and net interest income prepared in accordance with GAAP to interest income and net interest income on an FTE basis.
Three Months Ended
March 31, 2014 December 31, 2013 March 31, 2013
($ In Millions) Reported FTE Adj. FTE Reported FTE Adj. FTE Reported FTE Adj. FTE
Net Interest Income
Interest Income $ 295.4 $ 8.7 $ 304.1 $ 302.4 $ 9.2 $ 311.6 $ 286.7 $ 7.6 $ 294.3
Interest Expense 49.7 – 49.7 52.5 – 52.5 60.6 – 60.6
Net Interest Income $ 245.7 $ 8.7 $ 254.4 $ 249.9 $ 9.2 $ 259.1 $ 226.1 $ 7.6 $ 233.7
Net Interest Margin 1.09 % 1.12 % 1.08 % 1.12 % 1.12 % 1.15 %
FORWARD-LOOKING STATEMENTS
This release may include forward-looking statements concerning Northern Trust’s financial results and outlook, capital adequacy, dividend policy, anticipated expense levels and technology spending, risk management policies, contingent liabilities, strategic initiatives, industry trends, and expectations regarding the impact of recent legislation. Forward-looking statements are typically identified by words or phrases such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “project”, “likely”, “may increase”, “plan”, “goal”, “target”, “strategy”, and similar expressions or future or conditional verbs such as “may”, “will”, “should”, “would”, and “could”. Forward-looking statements are Northern Trust’s current estimates or expectations of future events or future results, and involve risks and uncertainties that are difficult to predict. These statements are based on assumptions about many important factors, including the factors discussed in Northern Trust’s most recent annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission, all of which are available on Northern Trust’s website. We caution you not to place undue reliance on any forward-looking statement as actual results may differ materially from those expressed or implied by forward-looking statements. Northern Trust assumes no obligation to update its forward-looking statements.
WEBCAST OF FIRST QUARTER EARNINGS CONFERENCE CALL
Northern Trust’s first quarter earnings conference call will be webcast live on April 15, 2014. The live call will be conducted at 9:00 a.m. CT and is accessible on Northern Trust’s website at:
http://www.northerntrust.com/financialreleases
The rebroadcast of the live call will be available on Northern Trust’s website from 2:00 p.m. CT on April 15, 2014, for approximately four weeks. Participants will need Windows Mediatm or Adobe Flash software, which can be downloaded for free through Northern Trust’s website. This earnings release can also be accessed at the above web address.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA
($ In Millions Except Per Share Data)
FIRST QUARTER
2014 2013 % Change (*)
Noninterest Income
Trust, Investment and Other Servicing Fees $ 679.5 $ 630.7 8 %
Foreign Exchange Trading Income 50.1 59.5 (16 )
Treasury Management Fees 16.8 16.8 -
Security Commissions and Trading Income 14.7 18.3 (20 )
Other Operating Income 37.7 24.8 53
Investment Security Gains (Losses), net (4.0 ) 0.2 N/M
Total Noninterest Income 794.8 750.3 6
Net Interest Income
Interest Income 295.4 286.7 3
Interest Expense 49.7 60.6 (18 )
Net Interest Income 245.7 226.1 9
Total Revenue 1,040.5 976.4 7
Provision for Credit Losses 3.0 5.0 (40 )
Noninterest Expense
Compensation 341.8 320.3 7
Employee Benefits 66.9 63.3 6
Outside Services 144.4 129.9 11
Equipment and Software 101.3 91.4 11
Occupancy 44.2 43.2 2
Other Operating Expense 69.4 80.8 (14 )
Total Noninterest Expense 768.0 728.9 5
Income before Income Taxes 269.5 242.5 11
Provision for Income Taxes 88.1 78.5 12
NET INCOME $ 181.4 $ 164.0 11 %
Earnings Allocated to Participating Securities 2.9 2.5 16 %
Earnings Allocated to Common and Potential Common Shares 178.5 161.5 11
Per Common Share
Net Income
Basic $ 0.75 $ 0.68 10 %
Diluted 0.75 0.67 12
Average Common Equity $ 7,926.4 $ 7,543.2 5 %
Return on Average Common Equity 9.28 % 8.82 % 5
Return on Average Assets 0.73 % 0.73 % -
Cash Dividends Declared per Common Share $ 0.31 $ 0.30 3 %
Average Common Shares Outstanding (000s)
Basic 237,208 239,168
Diluted 239,051 240,176
Common Shares Outstanding (EOP) (000s) 236,481 239,240
(*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME DATA
FIRST
FOURTH
($ In Millions Except Per Share Data)
QUARTER QUARTER
2014 2013 % Change (*)
Noninterest Income
Trust, Investment and Other Servicing Fees $ 679.5 $ 673.8 1 %
Foreign Exchange Trading Income 50.1 50.8 (1 )
Treasury Management Fees 16.8 17.5 (4 )
Security Commissions and Trading Income 14.7 14.6 -
Other Operating Income 37.7 38.2 (1 )
Investment Security Gains (Losses), net (4.0 ) 0.4 N/M
Total Noninterest Income 794.8 795.3 -
Net Interest Income
Interest Income 295.4 302.4 (2 )
Interest Expense 49.7 52.5 (5 )
Net Interest Income 245.7 249.9 (2 )
Total Revenue 1,040.5 1,045.2 -
Provision for Credit Losses 3.0 5.0 (40 )
Noninterest Expense
Compensation 341.8 334.8 2
Employee Benefits 66.9 66.5 1
Outside Services 144.4 152.1 (5 )
Equipment and Software 101.3 98.6 3
Occupancy 44.2 43.8 1
Other Operating Expense 69.4 98.7 (30 )
Total Noninterest Expense 768.0 794.5 (3 )
Income before Income Taxes 269.5 245.7 10
Provision for Income Taxes 88.1 76.0 16
NET INCOME $ 181.4 $ 169.7 7 %
Earnings Allocated to Participating Securities 2.9 2.7 7 %
Earnings Allocated to Common and Potential Common Shares 178.5 167.0 7
Per Common Share
Net Income
Basic $ 0.75 $ 0.70 7 %
Diluted 0.75 0.70 7
Average Common Equity $ 7,926.4 $ 7,775.7 2 %
Return on Average Common Equity 9.28 % 8.66
%
7
Return on Average Assets 0.73 % 0.68
%
7
Cash Dividends Declared per Common Share $ 0.31 $ 0.31 - %
Average Common Shares Outstanding (000s)
Basic 237,208 238,228
Diluted 239,051 239,656
Common Shares Outstanding (EOP) (000s)
236,481
237,322
(*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
BALANCE SHEET
($ In Millions) MARCH 31
2014 2013 % Change (*)
Assets
Federal Funds Sold and Securities Purchased under
Agreements to Resell $ 510.0 $ 251.5 103 %
Interest-Bearing Deposits with Banks 17,155.8 18,694.8 (8 )
Federal Reserve Deposits and Other Interest-Bearing 12,211.0 5,828.6 110
Securities
U.S. Government 2,414.7 1,782.4 35
Obligations of States and Political Subdivisions 200.8 307.4 (35 )
Government Sponsored Agency 18,182.9 16,939.7 7
Other (**) 13,366.4 11,526.3 16
Total Securities 34,164.8 30,555.8 12
Loans and Leases 29,660.8 28,862.9 3
Total Earning Assets 93,702.4 84,193.6 11
Allowance for Credit Losses Assigned to Loans and Leases (279.2 ) (294.1 ) (5 )
Cash and Due from Banks 3,676.3 3,773.5 (3 )
Buildings and Equipment 449.4 457.2 (2 )
Client Security Settlement Receivables 1,845.2 816.5 126
Goodwill 541.6 529.5 2
Other Assets 3,896.9 3,680.6 6
Total Assets $ 103,832.6 $ 93,156.8 11 %
Liabilities and Stockholders' Equity
Interest-Bearing Deposits
Savings and Money Market $ 15,506.0 $ 14,819.8 5 %
Savings Certificates and Other Time 2,034.5 2,296.1 (11 )
Non-U.S. Offices - Interest-Bearing 47,564.4 39,822.4 19
Total Interest-Bearing Deposits 65,104.9 56,938.3 14
Short-Term Borrowings 2,402.9 3,246.0 (26 )
Senior Notes 1,996.7 2,402.0 (17 )
Long-Term Debt 1,731.3 1,198.4 44
Floating Rate Capital Debt 277.2 277.1 -
Total Interest-Related Funds 71,513.0 64,061.8 12
Demand and Other Noninterest-Bearing Deposits 21,162.8 18,883.8 12
Other Liabilities 3,208.5 2,599.1 23
Total Liabilities 95,884.3 85,544.7 12
Total Equity 7,948.3 7,612.1 4
Total Liabilities and Stockholders' Equity $ 103,832.6 $ 93,156.8 11 %
(*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(**) Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are classified in other assets on the consolidated balance sheet.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
BALANCE SHEET
($ In Millions) MARCH 31 DECEMBER 31
2014 2013 % Change (*)
Assets
Federal Funds Sold and Securities Purchased under
Agreements to Resell $ 510.0 $ 529.6 (4 ) %
Interest-Bearing Deposits with Banks 17,155.8 19,397.4 (12 )
Federal Reserve Deposits and Other Interest-Bearing 12,211.0 12,911.5 (5 )
Securities
U.S. Government 2,414.7 1,917.9 26
Obligations of States and Political Subdivisions 200.8 229.8 (13 )
Government Sponsored Agency 18,182.9 17,563.8 4
Other (**) 13,366.4 11,431.7 17
Total Securities 34,164.8 31,143.2 10
Loans and Leases 29,660.8 29,385.5 1
Total Earning Assets 93,702.4 93,367.2 -
Allowance for Credit Losses Assigned to Loans and Leases (279.2 ) (278.1 ) -
Cash and Due from Banks 3,676.3 3,162.4 16
Buildings and Equipment 449.4 458.8 (2 )
Client Security Settlement Receivables 1,845.2 1,355.2 36
Goodwill 541.6 540.7 -
Other Assets 3,896.9 4,341.1 (10 )
Total Assets $ 103,832.6 $ 102,947.3 1 %
Liabilities and Stockholders' Equity
Interest-Bearing Deposits
Savings and Money Market $ 15,506.0 $ 14,991.5 3 %
Savings Certificates and Other Time 2,034.5 1,874.4 9
Non-U.S. Offices - Interest-Bearing 47,564.4 48,461.7 (2 )
Total Interest-Bearing Deposits 65,104.9 65,327.6 -
Short-Term Borrowings 2,402.9 3,441.0 (30 )
Senior Notes 1,996.7 1,996.6 -
Long-Term Debt 1,731.3 1,709.2 1
Floating Rate Capital Debt 277.2 277.1 -
Total Interest-Related Funds 71,513.0 72,751.5 (2 )
Demand and Other Noninterest-Bearing Deposits 21,162.8 18,770.5 13
Other Liabilities 3,208.5 3,513.3 (9 )
Total Liabilities 95,884.3 95,035.3 1
Total Equity 7,948.3 7,912.0 -
Total Liabilities and Stockholders' Equity $ 103,832.6 $ 102,947.3 1 %
(*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(**) Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are classified in other assets on the consolidated balance sheet.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
AVERAGE BALANCE SHEET
($ In Millions) FIRST QUARTER
2014 2013 % Change (*)
Assets
Federal Funds Sold and Securities Purchased under
Agreements to Resell $ 530.3 $ 249.5 113 %
Interest-Bearing Deposits with Banks 17,062.5 18,099.5 (6 )
Federal Reserve Deposits and Other Interest-Bearing 12,702.5 3,872.0 N/M
Securities
U.S. Government 2,313.7 1,782.8 30
Obligations of States and Political Subdivisions 213.1 321.1 (34 )
Government Sponsored Agency 17,834.7 18,280.6 (2 )
Other (**) 12,006.5 10,890.6 10
Total Securities 32,368.0 31,275.1 3
Loans and Leases 29,177.4 28,661.9 2
Total Earning Assets 91,840.7 82,158.0 12
Allowance for Credit Losses Assigned to Loans and Leases (277.8 ) (296.1 ) (6 )
Cash and Due from Banks 2,806.6 3,392.5 (17 )
Buildings and Equipment 457.7 467.5 (2 )
Client Security Settlement Receivables 904.4 793.3 14
Goodwill 540.8 532.6 2
Other Assets 3,971.1 4,521.5 (12 )
Total Assets $ 100,243.5 $ 91,569.3 9 %
Liabilities and Stockholders' Equity
Interest-Bearing Deposits
Savings and Money Market $ 14,713.8 $ 14,880.3 (1 ) %
Savings Certificates and Other Time 1,825.5 2,385.6 (23 )
Non-U.S. Offices - Interest-Bearing 46,566.4 39,221.1 19
Total Interest-Bearing Deposits 63,105.7 56,487.0 12
Short-Term Borrowings 4,552.0 3,405.5 34
Senior Notes 1,996.6 2,403.9 (17 )
Long-Term Debt 1,728.9 1,277.7 35
Floating Rate Capital Debt 277.1 277.1 -
Total Interest-Related Funds 71,660.3 63,851.2 12
Demand and Other Noninterest-Bearing Deposits 17,642.1 16,899.1 4
Other Liabilities 3,014.7 3,275.8 (8 )
Total Liabilities 92,317.1 84,026.1 10
Total Equity 7,926.4 7,543.2 5
Total Liabilities and Stockholders' Equity $ 100,243.5 $ 91,569.3 9 %
(*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(**) Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are classified in other assets on the consolidated balance sheet.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
AVERAGE BALANCE SHEET
FIRST FOURTH
($ In Millions) QUARTER QUARTER
2014 2013 % Change (*)
Assets
Federal Funds Sold and Securities Purchased under
Agreements to Resell $ 530.3 $ 549.7 (4 ) %
Interest-Bearing Deposits with Banks 17,062.5 18,264.9 (7 )
Federal Reserve Deposits and Other Interest-Bearing 12,702.5 13,220.9 (4 )
Securities
U.S. Government 2,313.7 1,318.8 75
Obligations of States and Political Subdivisions 213.1 248.2 (14 )
Government Sponsored Agency 17,834.7 17,574.6 1
Other (**) 12,006.5 11,566.5 4
Total Securities 32,368.0 30,708.1 5
Loans and Leases 29,177.4 28,858.1 1
Total Earning Assets 91,840.7 91,601.7 -
Allowance for Credit Losses Assigned to Loans and Leases (277.8 ) (283.8 ) (2 )
Cash and Due from Banks 2,806.6 2,676.5 5
Buildings and Equipment 457.7 454.2 1
Client Security Settlement Receivables 904.4 813.3 11
Goodwill 540.8 537.9 1
Other Assets 3,971.1 3,906.9 2
Total Assets $ 100,243.5 $ 99,706.7 1 %
Liabilities and Stockholders' Equity
Interest-Bearing Deposits
Savings and Money Market $ 14,713.8 $ 14,340.8 3 %
Savings Certificates and Other Time 1,825.5 1,861.6 (2 )
Non-U.S. Offices - Interest-Bearing 46,566.4 47,920.3 (3 )
Total Interest-Bearing Deposits 63,105.7 64,122.7 (2 )
Short-Term Borrowings 4,552.0 4,989.9 (9 )
Senior Notes 1,996.6 1,996.5 -
Long-Term Debt 1,728.9 1,485.8 16
Floating Rate Capital Debt 277.1 277.1 -
Total Interest-Related Funds 71,660.3 72,872.0 (2 )
Demand and Other Noninterest-Bearing Deposits 17,642.1 16,004.8 10
Other Liabilities 3,014.7 3,054.2 (1 )
Total Liabilities 92,317.1 91,931.0 -
Total Equity 7,926.4 7,775.7 2
Total Liabilities and Stockholders' Equity $ 100,243.5 $ 99,706.7 1 %
(*) Percentage calculations are based on actual balances rather than the rounded amounts presented in the Supplemental Consolidated Financial Information.
(**) Other securities include Federal Reserve and Federal Home Loan Bank stock and certain community development investments for purposes of presenting earning assets; such securities are classified in other assets on the consolidated balance sheet.
NORTHERN TRUST CORPORATION
(Supplemental Consolidated Financial Information)
QUARTERLY TREND DATA
2014
2013
($ In Millions Except Per Share Data)
QUARTER
QUARTERS
FIRST FOURTH THIRD SECOND FIRST
Net Income Summary
Trust, Investment and Other Servicing Fees $ 679.5 $ 673.8 $ 648.0 $ 657.3 $ 630.7
Other Noninterest Income 115.3 121.5 162.2 143.1 119.6
Net Interest Income 245.7 249.9 237.0 220.1 226.1
Total Revenue 1,040.5 1,045.2 1,047.2 1,020.5 976.4
Provision for Credit Losses 3.0 5.0 5.0 5.0 5.0
Noninterest Expense 768.0 794.5 740.7 729.7 728.9
Income before Income Taxes 269.5 245.7 301.5 285.8 242.5
Provision for Income Taxes 88.1 76.0 95.0 94.7 78.5
Net Income $ 181.4 $ 169.7
$ 206.5
$ 191.1
$ 164.0
Per Common Share
Net Income - Basic $ 0.75 $ 0.70 $ 0.85 $ 0.78 $ 0.68
- Diluted 0.75 0.70 0.84 0.78 0.67
Cash Dividends Declared per Common Share 0.31 0.31 0.31 0.31 0.30
Book Value (EOP) 33.61 33.34 32.71 32.17 31.82
Market Value (EOP) 65.56 61.89 54.38 57.90 54.56
Ratios
Return on Average Common Equity 9.28 % 8.66 % 10.64 % 10.02 % 8.82 %
Return on Average Assets 0.73 0.68 0.86 0.83 0.73
Net Interest Margin (GAAP) 1.09 1.08 1.10 1.06 1.12
Net Interest Margin (FTE) 1.12 1.12 1.14 1.10 1.15
Capital Ratios
Tier 1 13.0 % 13.4 % 13.6 % 13.1 % 13.3 %
Total (Tier 1 + Tier 2) 15.5 15.8 14.9 14.4 14.7
Tier 1 Leverage 7.8 7.9 8.3 8.4 8.4
Common Equity Tier 1 12.8 12.9 13.1 12.6 12.8
Assets Under Custody ($ In Billions) - EOP
Corporate $ 5,249.9 $ 5,079.7 $ 4,766.5 $ 4,538.9 $ 4,569.1
Wealth Management 503.6 496.0 470.5 452.6 455.3
Total Assets Under Custody $ 5,753.5 $ 5,575.7 $ 5,237.0 $ 4,991.5 $ 5,024.4
Assets Under Management ($ In Billions) - EOP $ 915.4 $ 884.5 $ 846.2 $ 803.0 $ 810.2
Asset Quality ($ In Millions) - EOP
Nonperforming Loans and Leases $ 259.9 $ 262.8 $ 270.1 $ 266.7 $ 251.7
Other Real Estate Owned (OREO) 9.8 11.9 13.9 14.5 10.5
Total Nonperforming Assets $ 269.7 $ 274.7 $ 284.0 $ 281.2 $ 262.2
Nonperforming Assets / Loans and Leases and OREO 0.91 % 0.93 % 0.98 % 0.98 % 0.91 %
Gross Charge-offs $ 11.5 $ 19.5 $ 11.6 $ 15.6 $ 12.6
Less: Gross Recoveries 10.0 4.9 3.3 7.5 3.9
Net Charge-offs $ 1.5 $ 14.6
$ 8.3
$ 8.1
$ 8.7
Net Charge-offs (Annualized) to Average Loans and Leases 0.02 % 0.20 % 0.12 % 0.11 % 0.12 %
Allowance for Credit Losses Assigned to Loans and Leases $ 279.2 $ 278.1 $ 287.2 $ 290.4 $ 294.1
Allowance to Nonperforming Loans and Leases 1.1x 1.1x 1.1x 1.1x 1.2x
Allowance for Other Credit-Related Exposures $ 30.2 $ 29.8 $ 30.3 $ 30.3 $ 29.7
Contact:
Northern Trust Corporation
Investor Contact:
Bev Fleming, (312) 444-7811
Beverly_Fleming@ntrs.com
or
Media Contact:
Doug Holt, (312) 557-1571
Doug_Holt@ntrs.com
http://www.northerntrust.com
The "Street has AAPL coming in at 10.42 for the quarter that should be reported on or about April 23, 2014! All post's welcome! The "Good Dr's In"!
The "Street has AAPL coming in at 10.42 for the quarter that should be reported on or about April 23, 2014! All post's welcome! The "Good Dr's In"!
The "Street has AAPL coming in at 10.42 for the quarter that should be reported on or about April 23, 2014! All post's welcome! The "Good Dr's In"!
The "Street has AAPL coming in at 10.42 for the quarter that should be reported on or about April 23, 2014! All post's welcome! The "Good Dr's In"!
The "Street has CL coming in at .69 for the quarter that should be reported on or about April 25, 2014! All post's welcome! The "Good Dr's In"!
The "Street has CL coming in at .69 for the quarter that should be reported on or about April 25, 2014! All post's welcome! The "Good Dr's In"!
Colgate-Palmolive Webcasts 2014 First Quarter Earnings Conference Call April 25, 2014 – 11:00 a.m. ET
Business Wire Colgate-Palmolive Company
April 11, 2014 10:47 AM
NEW YORK--(BUSINESS WIRE)--
Colgate-Palmolive Company (CL) will provide a live webcast of its 2014 first quarter earnings conference call on Friday, April 25, 2014 at 11:00 a.m. ET. The call will be hosted by Chairman, President and CEO, Ian Cook, and Senior Vice President - Investor Relations, Bina Thompson.
Investors may access a live webcast of this conference call on Colgate’s web site at http://www.colgatepalmolive.com. For those unable to participate during the live webcast, a recorded version of the webcast will be made available through the ‘For Investors’ page of Colgate’s web site.
* * *
About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Soupline, and Suavitel, as well as Hill's Science Diet, Hill's Prescription Diet and Hill’s Ideal Balance. For more information about Colgate's global business, visit the Company's web site at http://www.colgatepalmolive.com. To learn more about Colgate’s global oral health education program, Bright Smiles, Bright Futures™, please visit http://www.colgatebsbf.com. CL-E
Contact:
Colgate-Palmolive Company
Bina Thompson, 212-310-3072
Hope Spiller, 212-310-2291
Yasheng Group Reports Record Full-Year Results
Marketwired Yasheng Group
April 11, 2014 9:50 AM
REDWOOD CITY, CA--(Marketwired - Apr 11, 2014) - Yasheng Group (OTCQB: HERB), a high-growth diversified China-based agricultural conglomerate with U.S. headquarters in Redwood City, California, today announced financial results for the full year 2013.
FY2013 FY2012
Revenues (millions) $ 1,011 $ 993
Net Income (millions) $ 136 $ 126
EPS $ .88 $ .82
Net Sales. In the beginning of 2013, the global economy continued to recover. The company expanded seed, vegetable and green agricultural product lines, with strengthened internal control system implementation. We generate sales from our farm and side line products. Net sales for the year ended December 31, 2013 increased $18 million or 1.8% to $1,011 million as compared to $993 million for the year ended December 31, 2012. The increase in net sales was attributable to higher yields and a better product mix. We also continued to benefit from expanded distribution channels. However, at the beginning and the end of 2013, most of the northern region of China experienced cold weather with snow and wind, negatively affecting fruit tree harvests.
Cost of Goods Sold. Our cost of goods sold consists primarily of the costs of raw materials, labor, and overhead. Cost of sales for the year ended December 31, 2013 increased by $7.9 million, or 0.9%, to $868 million from $860 million for the year ended December 31, 2012. Due to management's continued heightened focus on cost control exercised throughout production, costs grew less than sales. The Gansu Provincial Development and Reform Commission reported that in 2013 the major reasons for increased agricultural costs were: transportation and diesel costs continued to rise, the costs for consumables such as pesticides, seeds, agricultural film increased, and labor costs continued to rise.
Gross Profit and Gross Margin. Our gross profit for the year ended December 31, 2013 increased $10.3 million or 8% to $143 million from $133 million for the year ended December 31, 2012. The profit improvement was primarily a result of increased production.
Net Income. Our net income for the period grew to $136 million or $.88 per share from $126 million or $.82 per share for the prior-year period.
Yasheng Group
Yasheng Group, founded over 30 years ago, is a US holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, seeds and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is led by a highly qualified management team and has total assets of over $2 billion, over 15,000 employees, and a history of strong sales and earnings growth. Please visit our website www.yashenggroup.com and register to receive future press releases directly.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.
The "Street" has KKR coming in at .56394 for the quarter that should be reported on or about May 24, 2014! All post's welcome! The "Good Dr's In"!
The "Street has NWL coming in at .3336 for the quarter that should be reported on or about May 2, 2014! All post's welcome! The "Good Dr's In"!
The "Street has NWL coming in at .3336for the quarter that should be reported on or about May 2, 2014! All post's welcome! The "Good Dr's In"!
Newell Rubbermaid to Webcast First Quarter 2014 Earnings Results
GlobeNewswire Newell Rubbermaid
April 16, 2014 8:00 AM
ATLANTA, April 16, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid (NWL) today announced its first quarter 2014 earnings results will be released Friday, May 2, prior to market open and will be followed by a live webcast at 8:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of approximately $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519
The "Street" has TBI coming in at .03225 for the quarter that should be reported on or about April 22, 2014! All post's welcome! The "Good Dr's In"!
Yahoo Reports First Quarter 2014 Results
Business Wire Yahoo! Inc.
20 hours ago
SUNNYVALE, Calif.--(BUSINESS WIRE)--
Yahoo! Inc. (YHOO) today reported results for the quarter ended March 31, 2014.
Q1 2013 Q1 2014
Percent
Change
GAAP revenue $1,140 million $1,133 million (1)%
Revenue ex-TAC $1,074 million $1,087 million 1%
GAAP income from operations $186 million $30 million (84)%
Non-GAAP income from operations $224 million $149 million (33)%
GAAP net earnings per diluted share $0.35 $0.29 (17)%
Non-GAAP net earnings per diluted share $0.38 $0.38 0%
“I am really pleased by our first quarter performance, marking our best Q1 revenue ex-TAC since 2010. Buoyed by our 9th consecutive quarter of year-over-year growth in Search revenue ex-TAC and our first quarter of Q1 year-over-year growth in display revenue ex-TAC since 2011, Q1 was an early and important sign of growth in our core business,” said Yahoo CEO Marissa Mayer. “And, with mobile pivotal to our future growth, we’re delighted to now see more than 430 million monthly mobile users accessing Yahoo’s new products.”
GAAP revenue was $1,133 million for the first quarter of 2014, a 1 percent decrease from the first quarter of 2013. Revenue excluding traffic acquisition costs (“revenue ex-TAC”) was $1,087 million for the first quarter of 2014, a 1 percent increase compared to the first quarter of 2013.
Adjusted EBITDA for the first quarter of 2014 was $306 million, a 21 percent decrease compared to the first quarter of 2013.
GAAP income from operations was $30 million for the first quarter of 2014 (which included net restructuring charges of $9 million), an 84 percent decrease from the first quarter of 2013 (which included restructuring reversals of $7 million). Non-GAAP income from operations was $149 million for the first quarter of 2014 compared to $224 million in the first quarter of 2013.
GAAP net earnings for the first quarter of 2014 was $312 million (which included net restructuring charges of $6 million), a 20 percent decrease compared to $390 million in the first quarter of 2013 (which included restructuring reversals of $4 million). Non-GAAP net earnings for the first quarter of 2014 was $402 million, a 4 percent decrease from the same period of 2013.
GAAP net earnings per diluted share was $0.29 in the first quarter of 2014, compared to $0.35 in the first quarter of 2013. Non-GAAP net earnings per diluted share was $0.38 for the first quarter of both 2014 and 2013.
Business Highlights
Yahoo continued to launch new products and improve existing properties in the first quarter, innovating for the daily habits of users around the world. The Company launched two digital magazines: Yahoo Food and Yahoo Tech; a new version of Yahoo Sports optimized for iOS 7; Yahoo News Digest for iPhone and iPod touch; Yahoo Smart TV; Aviate Listening Space; Yahoo Games Network and Yahoo Classic Games; and Yahoo Screen integration with Roku.
In the advertising space, Yahoo introduced the new Yahoo Advertising -- a suite of web, mobile, and video ad products across native, audience, and premium display. The Company also launched Yahoo Gemini, the first unified marketplace for mobile search and native advertising, and Tumblr Sponsored Posts Powered by Yahoo Advertising.
Yahoo announced a partnership with Yelp to showcase user reviews, business information, and star ratings. The Company was the technology provider for the Quicken Loans Billion Dollar Bracket Challenge with Yahoo Sports.
The Company continued to strengthen its editorial content by investing in world class talent, including hiring Paula Froelich, Editor in Chief of Travel; and Josh Wolk, Executive Editor of Yahoo Entertainment. Yahoo also announced that it has named José Mourinho as exclusive Global Football Ambassador for 2014.
Yahoo continued efforts to protect users’ security by hiring Alex Stamos, our new Chief Information Security Officer, announcing major data encryption updates, and releasing the second edition of its Transparency Report.
First Quarter 2014 Financial Highlights
Display:
GAAP display revenue was $453 million for the first quarter of 2014, flat compared to the first quarter of 2013.
Display revenue ex-TAC was $409 million for the first quarter of 2014, a 2 percent increase compared to $402 million for the first quarter of 2013.
The Number of Ads Sold increased approximately 7 percent compared to the first quarter of 2013.
Price-per-Ad decreased approximately 5 percent compared to the first quarter of 2013.
Search:
GAAP search revenue was $445 million for the first quarter of 2014, a 5 percent increase compared to $425 million for the first quarter of 2013.
Search revenue ex-TAC was $444 million for the first quarter of 2014, a 9 percent increase compared to $409 million for the first quarter of 2013.
Paid Clicks increased approximately 6 percent compared to the first quarter of 2013.
Price-per-Click increased approximately 8 percent compared to the first quarter of 2013.
Cash Balance:
Cash, cash equivalents, and investments in marketable securities were $4.6 billion as of March 31, 2014 compared to $5 billion as of December 31, 2013, a decrease of $0.4 billion.
During the first quarter of 2014, Yahoo repurchased 12 million shares for $450 million and used a net $22 million for acquisitions.
“Capital allocation is important, and we intend to continue to act as good stewards by allocating current capital and future cash in ways that maximize value for Yahoo shareholders in both the short and long term,” said Ken Goldman, CFO of Yahoo. “We continue to focus on repurchasing shares. Our total repurchases are at just under $6 billion since the beginning of 2012, including repurchases of $450 million in the first quarter.”
Live Stream
Yahoo will live stream a video broadcast of the Company's first quarter 2014 financial results at 2 p.m. Pacific Time/5 p.m. Eastern Time today. The live stream will be broadcast from Yahoo’s Sunnyvale studio and will be available exclusively on Yahoo Finance at finance.yahoo.com. The Company will provide its business outlook for the second quarter during the presentation. Supplemental financial information can be accessed through the Company’s Investor Relations website at investor.yahoo.net. The video will be archived after the event at investor.yahoo.net and will be available for 90 days following the broadcast.
Non-GAAP Financial Measures
This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (“SEC”): revenue ex-TAC; adjusted EBITDA; non-GAAP income from operations; non-GAAP net earnings; non-GAAP net earnings per share - diluted; and free cash flow.
Revenue ex-TAC is GAAP revenue less traffic acquisition costs. Adjusted EBITDA, non-GAAP income from operations, non-GAAP net earnings and non-GAAP net earnings per share - diluted, exclude from the most comparable GAAP financial measures certain gains, losses, and expenses that we do not believe are indicative of ongoing results, and exclude stock-based compensation expense. Adjusted EBITDA also excludes taxes, depreciation, amortization of intangible assets, other income, net (which includes interest), earnings in equity interests, and net income attributable to noncontrolling interests. Free cash flow is GAAP net cash provided by operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net and dividends received from equity investees.
These measures may be different than non-GAAP financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles (“GAAP”). Explanations of the Company’s non-GAAP financial measures and reconciliations of these financial measures to the GAAP financial measures the Company considers most comparable are included in the accompanying “Note to Unaudited Condensed Consolidated Financial Statements,” “Supplemental Financial Data and GAAP to Non-GAAP Reconciliations,” and “GAAP to Non-GAAP Reconciliations.”
About Yahoo
Yahoo is focused on making the world’s daily habits inspiring and entertaining. By creating highly personalized experiences for our users, we keep people connected to what matters most to them, across devices and around the world. In turn, we create value for advertisers by connecting them with the audiences that build their businesses. Yahoo is headquartered in Sunnyvale, California, and has offices located throughout the Americas, Asia Pacific (APAC) and the Europe, Middle East and Africa (EMEA) regions. For more information, visit the pressroom (pressroom.yahoo.net) or the Company's blog (yahoo.tumblr.com).
“Affiliates” refers to the third-party entities that have integrated Yahoo’s advertising offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”).
“Net earnings” means net income attributable to Yahoo! Inc., and “net earnings per diluted share” means net income attributable to Yahoo! Inc. common stockholders per share – diluted.
“Number of Ads Sold” is defined as the total number of display ad impressions for paying advertisers on Yahoo Properties.
“Paid Clicks” are defined as the total number of times an end-user clicks on a sponsored search listing on Yahoo Properties and Affiliate sites.
“Price-per-Ad” is defined as display revenue from Yahoo Properties divided by our Number of Ads Sold.
“Price-per-Click” is defined as search revenue divided by our Paid Clicks.
We periodically review and refine our methodologies for monitoring, gathering, and counting Number of Ads Sold and Paid Clicks, and for calculating Price-per-Ad and Price-per-Click.
Additional information about how “Number of Ads Sold,” “Paid Clicks,” “Price-per-Ad,” and “Price-per-Click” are defined and calculated is included under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, which is on file with the SEC and available on the SEC's website at www.sec.gov.
“Search Agreement” refers to the Search and Advertising Services and Sales Agreement between Yahoo and Microsoft Corporation, as amended.
“TAC” refers to traffic acquisition costs. TAC consists of payments to Affiliates and payments made to companies that direct consumer and business traffic to Yahoo Properties.
“Yahoo Properties” refers to the online properties and services that Yahoo provides to users.
This press release contains forward-looking statements concerning Yahoo's expected financial performance and Yahoo's strategic and operational plans (including, without limitation, the quotations from management). Risks and uncertainties may cause actual results to differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, acceptance by users of new products and services (including, without limitation, products and services for mobile devices and alternative platforms); Yahoo's ability to compete with new or existing competitors; reduction in spending by, or loss of, advertising customers; risks associated with the Search Agreement with Microsoft Corporation; risks related to acquiring or developing compelling content; risks related to joint ventures and the integration of acquisitions; risks relating to possible impairment of goodwill or other assets; risks related to fluctuations in foreign currency exchange rates; risks related to Yahoo’s regulatory environment; Yahoo’s ability to protect its intellectual property and the value of its brands; adverse results in litigation; security breaches; interruptions or delays in the provision of Yahoo’s services; risks related to Yahoo's international operations; risks related to the calculation of our key metrics; dependence on third parties for technology, services, content, and distribution; and general economic conditions. All information set forth in this press release and its attachments is as of April 15, 2014. Yahoo does not intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances. More information about potential factors that could affect the Company's business and financial results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, which is on file with the SEC and available on the SEC's website at www.sec.gov. Additional information will also be set forth in those sections in Yahoo’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, which will be filed with the SEC in the second quarter of 2014.
Yahoo!, Aviate, Yahoo Screen, Yahoo Gemini, Yahoo News Digest, and the Yahoo logos are trademarks and/or registered trademarks of Yahoo! Inc. Tumblr is a registered trademark of Tumblr, Inc. All other marks are trademarks and/or registered trademarks of their respective owners.
Yahoo! Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31,
March 31,
2013
2014
ASSETS
Current assets:
Cash and cash equivalents $ 2,077,590 $ 1,198,016
Short-term marketable securities 1,330,304 1,741,494
Accounts receivable, net 979,559 879,992
Prepaid expenses and other current assets 638,404 662,372
Total current assets 5,025,857 4,481,874
Long-term marketable securities 1,589,500 1,631,819
Property and equipment, net 1,488,518 1,479,406
Goodwill 4,679,648 4,699,319
Intangible assets, net 417,808 393,355
Other long-term assets 177,281 178,319
Investments in equity interests 3,426,347 3,728,823
Total assets $ 16,804,959 $ 16,592,915
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 138,031 $ 156,782
Accrued expenses and other current liabilities 907,782 746,828
Deferred revenue 294,499 291,265
Total current liabilities 1,340,312 1,194,875
Convertible notes 1,110,585 1,125,251
Long-term deferred revenue 258,904 222,366
Capital lease and other long-term liabilities 116,605 108,847
Deferred and other long-term tax liabilities, net 847,956 978,372
Total liabilities 3,674,362 3,629,711
Total Yahoo! Inc. stockholders' equity 13,074,909 12,905,183
Noncontrolling interests 55,688 58,021
Total equity 13,130,597 12,963,204
Total liabilities and equity $ 16,804,959 $ 16,592,915
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Ended
March 31,
2013
2014
Revenue $ 1,140,368 $ 1,132,730
Operating expenses:
Cost of revenue - traffic acquisition costs 66,068 45,909
Cost of revenue - other 278,007 280,844
Sales and marketing 257,019 329,846
Product development 219,580 281,632
General and administrative 133,421 136,493
Amortization of intangibles 7,365 18,340
Restructuring (reversals) charges, net (7,062 ) 9,487
Total operating expenses 954,398 1,102,551
Income from operations 185,970 30,179
Other income (expense), net 17,072 (13,453 )
Income before income taxes and earnings in equity interests 203,042 16,726
Provision for income taxes (29,736 ) (4,217 )
Earnings in equity interests 217,588 301,402
Net income 390,894 313,911
Less: Net income attributable to noncontrolling interests (609 ) (2,333 )
Net income attributable to Yahoo! Inc. $ 390,285 $ 311,578
Net income attributable to Yahoo! Inc. common stockholders per share - diluted (1) $ 0.35 $ 0.29
Shares used in per share calculation - diluted 1,108,095 1,031,420
Stock-based compensation expense by function:
Cost of revenue - other $ 3,578 $ 22,687
Sales and marketing 16,045 52,638
Product development 8,263 13,927
General and administrative 16,719 19,929
Supplemental Financial Data:
Revenue ex-TAC $ 1,074,300 $ 1,086,821
Adjusted EBITDA $ 385,605 $ 306,381
Free cash flow $ 149,908 $ 113,962
(1)
The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company's diluted earnings per share by $0.01 for the three months ended March 31, 2014.
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended
March 31,
2013 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 390,894 $ 313,911
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 143,864 123,185
Amortization of intangible assets 18,410 34,349
Accretion of convertible notes discount - 14,666
Stock-based compensation expense, net 44,605 109,181
Non-cash restructuring charges 547 -
Loss from sale of investments, assets, and other, net 11,905 3,550
Earnings in equity interests (217,588 ) (301,402 )
Dividend income related to Alibaba Group Preference Shares (20,251 ) -
Tax benefits from stock-based awards 9,537 57,667
Excess tax benefits from stock-based awards (12,807 ) (59,556 )
Deferred income taxes (20,158 ) 14,488
Dividends received from equity investees 12,000 -
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net 57,853 98,404
Prepaid expenses and other 19,707 (9,211 )
Accounts payable (71,135 ) 19,492
Accrued expenses and other liabilities (123,472 ) (240,175 )
Deferred revenue (25,229 ) (39,488 )
Net cash provided by operating activities 218,682 139,061
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment, net (69,581 ) (84,655 )
Purchases of marketable securities (1,481,293 ) (912,097 )
Proceeds from sales of marketable securities 424,347 168,926
Proceeds from maturities of marketable securities 183,100 281,662
Purchases of intangible assets (1,128 ) (1,190 )
Proceeds from the settlement of derivative hedge contracts 4,100 2,801
Payments for the settlement of derivative hedge contracts - (600 )
Acquisitions, net of cash acquired (10,147 ) (21,661 )
Equity investments - (10,399 )
Other investing activities, net (278 ) (566 )
Net cash used in investing activities (950,880 ) (577,779 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 61,108 78,977
Repurchases of common stock (775,075 ) (449,578 )
Excess tax benefits from stock-based awards 12,807 59,556
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units
(43,689 ) (125,403 )
Other financing activities, net (1,405 ) (3,093 )
Net cash used in financing activities (746,254 ) (439,541 )
Effect of exchange rate changes on cash and cash equivalents (14,693 ) (1,315 )
Net change in cash and cash equivalents (1,493,145 ) (879,574 )
Cash and cash equivalents, beginning of period 2,667,778 2,077,590
Cash and cash equivalents, end of period $ 1,174,633 $ 1,198,016
Yahoo! Inc.
Note to Unaudited Condensed Consolidated Financial Statements
This press release and its attachments include the non-GAAP financial measures of revenue excluding traffic acquisition costs (“revenue ex-TAC”); adjusted EBITDA; non-GAAP income from operations; non-GAAP net earnings; non-GAAP net earnings per diluted share; and free cash flow, which are reconciled to revenue; net income attributable to Yahoo! Inc. (in the case of adjusted EBITDA and non-GAAP net earnings); income from operations; net income attributable to Yahoo! Inc. common stockholders per share – diluted; and net cash provided by operating activities, which we believe are the most comparable GAAP measures. We use these non-GAAP financial measures for internal managerial purposes and to facilitate period-to-period comparisons. We describe limitations specific to each non-GAAP financial measure below. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure or measures. Further, management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, revenue, net income attributable to Yahoo! Inc., income from operations, net income attributable to Yahoo! Inc. common stockholders per share – diluted, and net cash provided by operating activities calculated in accordance with GAAP.
Revenue ex-TAC is a non-GAAP financial measure defined as GAAP revenue less TAC. TAC consists of payments made to third-party entities that have integrated our advertising offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”) and payments made to companies that direct consumer and business traffic to Yahoo’s online properties and services (“Yahoo Properties”). Based on the terms of the Search Agreement with Microsoft, Microsoft retains a revenue share of 12 percent of the net (after TAC) search revenue generated on Yahoo Properties and Affiliate sites in transitioned markets. Yahoo reports the net revenue it receives under the Search Agreement as revenue and no longer presents the associated TAC. Accordingly, for the current period Yahoo reports GAAP revenue associated with the Search Agreement on a net (after TAC) basis rather than a gross basis. For the 2013 comparison period, revenue from markets that had not yet transitioned to Microsoft’s platform was recorded on a gross basis, and the associated TAC was recorded as a part of operating expenses. We present revenue ex-TAC to provide investors a metric used by the Company for evaluation and decision-making purposes and to provide investors with comparable revenue numbers when comparing periods preceding, during and following the transition period. A limitation of revenue ex-TAC is that it is a measure which we have defined for internal and investor purposes that may be unique to the Company, and therefore it may not enhance the comparability of our results to other companies in our industry who have similar business arrangements but address the impact of TAC differently. Management compensates for these limitations by also relying on the comparable GAAP financial measures of revenue and total operating expenses, which includes TAC in non-transitioned markets.
Adjusted EBITDA is defined as net income attributable to Yahoo! Inc. before taxes, depreciation, amortization of intangible assets, stock-based compensation expense, other income, net (which includes interest), earnings in equity interests, net income attributable to noncontrolling interests and other gains, losses, and expenses that we do not believe are indicative of our ongoing results. Yahoo presents adjusted EBITDA because the exclusion of certain gains, losses, and expenses facilitates comparisons of the operating performance of our Company on a period to period basis. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for results reported under GAAP. These limitations include: adjusted EBITDA does not reflect tax payments and such payments reflect a reduction in cash available to us; adjusted EBITDA does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our businesses; adjusted EBITDA does not include stock-based compensation expense related to the Company’s workforce; adjusted EBITDA also excludes other income, net (which includes interest), earnings in equity interests, net income attributable to noncontrolling interests and other gains, losses, and expenses that we do not believe are indicative of our ongoing results, and these items may represent a reduction or increase in cash available to us; and adjusted EBITDA is a measure that may be unique to the Company, and therefore it may not enhance the comparability of our results to other companies in our industry. Management compensates for these limitations by also relying on the comparable GAAP financial measure of net income attributable to Yahoo! Inc., which includes taxes, depreciation, amortization, stock-based compensation expense, other income, net (which includes interest), earnings in equity interests, net income attributable to noncontrolling interests and the other gains, losses and expenses that are excluded from adjusted EBITDA.
Non-GAAP income from operations is defined as income from operations excluding certain gains, losses, and expenses that we do not believe are indicative of our ongoing operating results and further adjusted to exclude stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation expense enhances the ability of management and investors to understand the impact of stock-based compensation expense on income from operations. We consider non-GAAP income from operations to be a profitability measure which facilitates the forecasting of our operating results for future periods and allows for the comparison of our results to historical periods. A limitation of non-GAAP income from operations is that it does not include all items that impact our income from operations for the period. Management compensates for this limitation by also relying on the comparable GAAP financial measure of income from operations which includes the gains, losses, and expenses that are excluded from non-GAAP income from operations.
Non-GAAP net earnings is defined as net income attributable to Yahoo! Inc. excluding certain gains, losses, expenses, and their related tax effects that we do not believe are indicative of our ongoing results and further adjusted to exclude stock-based compensation expense and its related tax effects. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation expense enhances the ability of management and investors to understand the impact of stock-based compensation expense on net income and net income per share. We consider non-GAAP net earnings and non-GAAP net earnings per diluted share to be profitability measures which facilitate the forecasting of our results for future periods and allow for the comparison of our results to historical periods. A limitation of non-GAAP net earnings and non-GAAP net earnings per diluted share is that they do not include all items that impact our net income and net income per diluted share for the period. Management compensates for this limitation by also relying on the comparable GAAP financial measures of net income attributable to Yahoo! Inc. and net income attributable to Yahoo! Inc. common stockholders per share - diluted, both of which include the gains, losses, expenses and related tax effects that are excluded from non-GAAP net earnings and non-GAAP net earnings per diluted share.
Free cash flow is a non-GAAP financial measure defined as net cash provided by operating activities (adjusted to include excess tax benefits from stock-based awards), less acquisition of property and equipment, net and dividends received from equity investees. We consider free cash flow to be a liquidity measure which provides useful information to management and investors about the amount of cash generated by the business after the acquisition of property and equipment, which can then be used for strategic opportunities including, among others, investing in the Company's business, making strategic acquisitions, strengthening the balance sheet, and repurchasing stock. A limitation of free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. Management compensates for this limitation by also relying on the net change in cash and cash equivalents as presented in the Company’s unaudited condensed consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.
Yahoo! Inc.
Supplemental Financial Data and GAAP to Non-GAAP Reconciliations
(in thousands)
Three Months Ended
March 31,
2013 2014
Revenue for groups of similar services:
Display $ 455,071 $ 453,224
Search 424,687 444,767
Other 260,610 234,739
Total revenue $ 1,140,368 $ 1,132,730
Revenue excluding traffic acquisition costs ("revenue ex-TAC") for groups of similar services:
GAAP display revenue $ 455,071 $ 453,224
TAC associated with display revenue (53,047 ) (44,362 )
Display revenue ex-TAC $ 402,024 $ 408,862
GAAP search revenue $ 424,687 $ 444,767
TAC associated with search revenue
(16,057 ) (686 )
Search revenue ex-TAC $ 408,630 $ 444,081
Other GAAP revenue $ 260,610 $ 234,739
TAC associated with other GAAP revenue 3,036 (861 )
Other revenue ex-TAC $ 263,646 $ 233,878
Revenue ex-TAC:
GAAP revenue $ 1,140,368 $ 1,132,730
TAC (66,068 ) (45,909 )
Revenue ex-TAC $ 1,074,300 $ 1,086,821
Revenue ex-TAC by segment:
Americas:
GAAP revenue $ 842,195 $ 866,928
TAC (37,522 ) (34,094 )
Revenue ex-TAC $ 804,673 $ 832,834
EMEA:
GAAP revenue $ 94,824 $ 91,570
TAC (11,536 ) (9,193 )
Revenue ex-TAC $ 83,288 $ 82,377
Asia Pacific:
GAAP revenue $ 203,349 $ 174,232
TAC (17,010 ) (2,622 )
Revenue ex-TAC $ 186,339 $ 171,610
Total revenue ex-TAC $ 1,074,300 $ 1,086,821
Direct costs by segment (2):
Americas $ 176,393 $ 177,355
EMEA 38,545 39,726
Asia Pacific 54,954 44,314
Global operating costs (3) 418,803 519,045
Restructuring (reversals) charges, net (7,062 ) 9,487
Depreciation and amortization 162,092 157,534
Stock-based compensation expense 44,605 109,181
Income from operations $ 185,970 $ 30,179
Reconciliation of net income attributable to Yahoo! Inc. to adjusted EBITDA:
Net income attributable to Yahoo! Inc. $ 390,285 $ 311,578
Depreciation and amortization 162,092 157,534
Stock-based compensation expense 44,605 109,181
Restructuring (reversals) charges, net (7,062 ) 9,487
Other income (expense), net (17,072 ) 13,453
Provision for income taxes 29,736 4,217
Earnings in equity interests (217,588 ) (301,402 )
Net income attributable to noncontrolling interests 609 2,333
Adjusted EBITDA $ 385,605 $ 306,381
Reconciliation of net cash provided by operating activities to free cash flow:
Net cash provided by operating activities $ 218,682 $ 139,061
Acquisition of property and equipment, net (69,581 ) (84,655 )
Dividends received from equity investees (12,000 ) -
Excess tax benefits from stock-based awards 12,807 59,556
Free cash flow $ 149,908 $ 113,962
(2)
Direct costs for each segment include cost of revenue-other, as well as other operating expenses that are directly attributable to the segment such as employee compensation expense (excluding stock-based compensation expense), local sales and marketing expenses, and facilities expenses.
(3) Global operating costs include product development, service engineering and operations, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment.
Yahoo! Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except per share amounts)
Three Months Ended
March 31,
2013 2014
GAAP income from operations $ 185,970 $ 30,179
(a) Restructuring (reversals) charges, net (7,062 ) 9,487
(b) Stock-based compensation expense 44,605 109,181
Non-GAAP income from operations $ 223,513 $ 148,847
GAAP net income attributable to Yahoo! Inc. $ 390,285 $ 311,578
(a) Restructuring (reversals) charges, net (7,062 ) 9,487
(b) Stock-based compensation expense 44,605 109,181
(c) To adjust the provision for income taxes to exclude the tax impact of items (a) through (b) above for the three months ended March 31, 2013 and 2014 (7,646 ) (28,622 )
Non-GAAP net earnings $ 420,182 $ 401,624
GAAP net income attributable to Yahoo! Inc. common stockholders per share - diluted (1) $ 0.35 $ 0.29
Non-GAAP net earnings per share - diluted (4) $ 0.38 $ 0.38
Shares used in per share calculation - diluted 1,108,095 1,031,420
(1) The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company's diluted earnings per share by $0.01 for the three months ended March 31, 2014.
(4) The impact of outstanding stock awards of entities in which the Company holds equity interests that are accounted for using the equity method reduced the Company's non-GAAP diluted earnings per share by $0.01 for the three months ended March 31, 2014.
Contact:
Yahoo! Inc.
Media Relations Contact:
Sarah Meron, 408-349-4040
media@yahoo-inc.com
or
Investor Relations Contact:
Joon Huh, 408-349-3382
investorrelations@yahoo-inc.com
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The "Street has TZOO coming in at .41 for the quarter that should be reported on or about April 17, 2014! All post's welcome! The "Good Dr's In"!
The "Street has TZOO coming in at .41 for the quarter that should be reported on or about April 17, 2014! All post's welcome! The "Good Dr's In"!