Exhibit 99.1
MITEL NETWORKS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of US dollars, except per share amounts)
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended
March 31, 2013 | | | Quarter Ended
June 30, 2013 | | | Quarter Ended
September 30, 2013 | | | Quarter Ended
December 31, 2013 | | | Year Ended
December 31, 2013 | |
Revenues | | $ | 143.1 | | | $ | 146.6 | | | $ | 135.0 | | | $ | 144.8 | | | $ | 569.5 | |
Cost of revenues | | | 62.3 | | | | 66.0 | | | | 56.3 | | | | 60.7 | | | | 245.3 | |
| | | | | | | | | | | | | | | | | | | | |
Gross margin | | | 80.8 | | | | 80.6 | | | | 78.7 | | | | 84.1 | | | | 324.2 | |
| | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | 54.5 | | | | 56.3 | | | | 55.7 | | | | 57.0 | | | | 223.5 | |
Research and development | | | 13.8 | | | | 13.5 | | | | 14.2 | | | | 15.4 | | | | 56.9 | |
Special charges and restructuring costs | | | 1.4 | | | | 2.6 | | | | 6.4 | | | | 7.0 | | | | 17.4 | |
Loss on litigation settlement | | | 0.1 | | | | — | | | | — | | | | — | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 69.8 | | | | 72.4 | | | | 76.3 | | | | 79.4 | | | | 297.9 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income from continuing operations | | | 11.0 | | | | 8.2 | | | | 2.4 | | | | 4.7 | | | | 26.3 | |
Interest expense | | | (5.4 | ) | | | (6.3 | ) | | | (6.5 | ) | | | (6.3 | ) | | | (24.5 | ) |
Debt retirement costs | | | (2.6 | ) | | | — | | | | — | | | | (0.6 | ) | | | (3.2 | ) |
Other income (expense) | | | 0.1 | | | | (0.3 | ) | | | — | | | | — | | | | (0.2 | ) |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, before income taxes | | | 3.1 | | | | 1.6 | | | | (4.1 | ) | | | (2.2 | ) | | | (1.6 | ) |
Current income tax recovery (expense) | | | 0.6 | | | | 3.3 | | | | (2.7 | ) | | | 0.6 | | | | 1.8 | |
Deferred income tax recovery (expense) | | | (2.4 | ) | | | (2.2 | ) | | | 5.4 | | | | (1.2 | ) | | | (0.4 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) from continuing operations | | | 1.3 | | | | 2.7 | | | | (1.4 | ) | | | (2.8 | ) | | | (0.2 | ) |
Net loss from discontinued operations | | | (3.0 | ) | | | — | | | | — | | | | — | | | | (3.0 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (1.7 | ) | | $ | 2.7 | | | $ | (1.4 | ) | | $ | (2.8 | ) | | $ | (3.2 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) per common share – Basic | | | | | | | | | | | | | | | | | | | | |
From continuing operations | | $ | 0.02 | | | $ | 0.05 | | | $ | (0.03 | ) | | $ | (0.05 | ) | | $ | (0.01 | ) |
From discontinued operations | | $ | (0.05 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (0.05 | ) |
Net income (loss) per common share – Basic | | $ | (0.03 | ) | | $ | 0.05 | | | $ | (0.03 | ) | | $ | (0.05 | ) | | $ | (0.06 | ) |
| | | | | |
Net income (loss) per common share – Diluted | | | | | | | | | | | | | | | | | | | | |
From continuing operations | | $ | 0.02 | | | $ | 0.05 | | | $ | (0.03 | ) | | $ | (0.05 | ) | | $ | (0.01 | ) |
From discontinued operations | | $ | (0.05 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | (0.05 | ) |
Net income (loss) per common share – Diluted | | $ | (0.03 | ) | | $ | 0.05 | | | $ | (0.03 | ) | | $ | (0.05 | ) | | $ | (0.06 | ) |
| | | | |
Weighted-average number of common shares outstanding (in millions): | | | | | | | | | | | | | | | | | |
Basic | | | 53.7 | | | | 53.7 | | | | 53.8 | | | | 53.9 | | | | 53.8 | |
Diluted | | | 56.2 | | | | 56.3 | | | | 53.8 | | | | 53.9 | | | | 53.8 | |
1
MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
(in millions of US dollars, except per share amounts)
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended
March 31, 2013 | | | Quarter Ended
June 30, 2013 | | | Quarter Ended
September 30, 2013 | | | Quarter Ended
December 31, 2013 | | | Year Ended
December 31, 2013 | |
Net income (loss) from continuing operations | | $ | 1.3 | | | $ | 2.7 | | | $ | (1.4 | ) | | $ | (2.8 | ) | | $ | (0.2 | ) |
Income tax expense (recovery) | | | 1.8 | | | | (1.1 | ) | | | (2.7 | ) | | | 0.6 | | | | (1.4 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) from continuing operations, before income taxes | | | 3.1 | | | | 1.6 | | | | (4.1 | ) | | | (2.2 | ) | | | (1.6 | ) |
| | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | |
Foreign exchange loss (gain) | | | 0.5 | | | | 0.5 | | | | (0.5 | ) | | | 0.1 | | | | 0.6 | |
Special charges and restructuring costs | | | 1.4 | | | | 2.6 | | | | 6.4 | | | | 7.0 | | | | 17.4 | |
Stock-based compensation | | | 1.1 | | | | 1.0 | | | | 1.2 | | | | 1.3 | | | | 4.6 | |
Loss on litigation settlement | | | 0.1 | | | | — | | | | — | | | | — | | | | 0.1 | |
Amortization of acquisition-related intangibles assets | | | 5.6 | | | | 5.6 | | | | 6.5 | | | | 6.5 | | | | 24.2 | |
Debt retirement costs | | | 2.6 | | | | — | | | | — | | | | 0.6 | | | | 3.2 | |
Other | | | — | | | | 0.4 | | | | — | | | | — | | | | 0.4 | |
| | | | | | | | | | | | | | | | | | | | |
Non-GAAP net income from continuing operations, before income taxes | | | 14.4 | | | | 11.7 | | | | 9.5 | | | | 13.3 | | | | 48.9 | |
Non-GAAP tax expense(1) | | | (2.2 | ) | | | (1.8 | ) | | | (1.4 | ) | | | (2.0 | ) | | | (7.4 | ) |
| | | | | | | | | | | | | | | | | | | | |
Non-GAAP net income from continuing operations | | | 12.2 | | | | 9.9 | | | | 8.1 | | | | 11.3 | | | | 41.5 | |
Non-GAAP net loss from discontinued operations | | | (0.1 | ) | | | — | | | | — | | | | — | | | | (0.1 | ) |
| | | | | | | | | | | | | | | | | | | | |
Non-GAAP net income | | $ | 12.1 | | | $ | 9.9 | | | $ | 8.1 | | | $ | 11.3 | | | $ | 41.4 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Non-GAAP net income (loss) per share, diluted: | | | | | | | | | | | | | | | | | | | | |
Non-GAAP net income per common share from continuing operations | | $ | 0.22 | | | $ | 0.18 | | | $ | 0.14 | | | $ | 0.19 | | | $ | 0.73 | |
Non-GAAP net loss per common share from discontinued operations | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Non-GAAP net income per common share | | $ | 0.22 | | | $ | 0.18 | | | $ | 0.14 | | | $ | 0.19 | | | $ | 0.73 | |
Non-GAAP Weighted-average number of common shares outstanding (in millions): | | | 56.2 | | | | 56.3 | | | | 56.6 | | | | 58.1 | | | | 56.8 | |
| (1) | Non-GAAP tax expense is based on an estimated effective tax rate of 15%. |
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MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in millions of US dollars)
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended
March 31, 2013 | | | Quarter Ended
June 30, 2013 | | | Quarter Ended
September 30, 2013 | | | Quarter Ended
December 31, 2013 | | | Year Ended
December 31, 2013 | |
Net income (loss) | | $ | (1.7 | ) | | $ | 2.7 | | | $ | (1.4 | ) | | $ | (2.8 | ) | | $ | (3.2 | ) |
Net loss from discontinued operations | | | 3.0 | | | | — | | | | — | | | | — | | | | 3.0 | |
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) from continuing operations | | | 1.3 | | | | 2.7 | | | | (1.4 | ) | | | (2.8 | ) | | | (0.2 | ) |
| | | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 5.4 | | | | 6.3 | | | | 6.5 | | | | 6.3 | | | | 24.5 | |
Income tax expense (recovery) | | | 1.8 | | | | (1.1 | ) | | | (2.7 | ) | | | 0.6 | | | | (1.4 | ) |
Amortization and depreciation | | | 8.9 | | | | 9.0 | | | | 9.7 | | | | 10.1 | | | | 37.7 | |
Foreign exchange loss (gain) | | | 0.5 | | | | 0.5 | | | | (0.5 | ) | | | 0.1 | | | | 0.6 | |
Special charges and restructuring costs | | | 1.4 | | | | 2.6 | | | | 6.4 | | | | 7.0 | | | | 17.4 | |
Stock-based compensation | | | 1.1 | | | | 1.0 | | | | 1.2 | | | | 1.3 | | | | 4.6 | |
Loss on litigation settlement | | | 0.1 | | | | — | | | | — | | | | — | | | | 0.1 | |
Debt retirement costs | | | 2.6 | | | | — | | | | — | | | | 0.6 | | | | 3.2 | |
Other | | | — | | | | 0.4 | | | | — | | | | — | | | | 0.4 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Adjusted EBITDA from continuing operations | | | 23.1 | | | | 21.4 | | | | 19.2 | | | | 23.2 | | | | 86.9 | |
| | | | | |
Adjusted EBITDA from discontinued operations(1) | | | (0.1 | ) | | | — | | | | — | | | | — | | | | (0.1 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Adjusted EBITDA | | $ | 23.0 | | | $ | 21.4 | | | $ | 19.2 | | | $ | 23.2 | | | $ | 86.8 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | The reconciliation of net loss from discontinued operations to Adjusted EBITDA from discontinued operations for the quarter ended March 31, 2013 consists of special charges and restructuring costs of $1.6, non-cash impairment of goodwill of $1.9 and an income tax recovery of $0.6. |
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MITEL NETWORKS CORPORATION
Segmented Information
(in millions of US dollars)
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended
March 31, 2013 | | | Quarter Ended
June 30, 2013 | | | Quarter Ended
September 30, 2013 | | | Quarter Ended
December 31, 2013 | | | Year Ended
December 31, 2013 | |
Revenues | | | | | | | | | | | | | | | | | | | | |
Mitel Communications Solutions | | $ | 119.0 | | | $ | 121.8 | | | $ | 110.4 | | | $ | 119.2 | | | $ | 470.4 | |
NetSolutions | | | 21.6 | | | | 21.5 | | | | 22.0 | | | | 22.2 | | | | 87.3 | |
Other | | | 2.5 | | | | 3.3 | | | | 2.6 | | | | 3.4 | | | | 11.8 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | $ | 143.1 | | | $ | 146.6 | | | $ | 135.0 | | | $ | 144.8 | | | $ | 569.5 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segment income | | | | | | | | | | | | | | | | | | | | |
Mitel Communications Solutions | | $ | 26.6 | | | $ | 28.3 | | | $ | 25.8 | | | $ | 29.5 | | | $ | 110.2 | |
NetSolutions | | | 5.7 | | | | 4.3 | | | | 5.0 | | | | 3.8 | | | | 18.8 | |
Other | | | 0.8 | | | | 0.7 | | | | 0.6 | | | | 0.6 | | | | 2.7 | |
| | | | | | | | | | | | | | | | | | | | |
Total segment income | | $ | 33.1 | | | $ | 33.3 | | | $ | 31.4 | | | $ | 33.9 | | | $ | 131.7 | |
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