| | |
MEDIA RELEASE | |  |
SMART Reports Third Quarter 2011 Financial Results
| | • | | Revenue of $180.9 million, up 16% year-over-year |
| | • | | Strong sales of attachment products, up 54% year-over-year |
| | • | | Adjusted EBITDA of $34.0 million |
| | • | | Net Income: $12.5 million GAAP; $15.9 million non-GAAP |
CALGARY, Alberta, February 8, 2011 – SMART Technologies Inc. (Nasdaq: SMT) (TSX: SMA), a leading provider of collaboration solutions, today announced financial results for its third quarter ended December 31, 2010.
“We are pleased with our third-quarter results, as we continue to demonstrate the value of our full suite of collaboration solutions,” stated Nancy Knowlton, President and CEO of SMART. “Our solid top-line growth, particularly in North America, was driven by increasing demand for attachment products, which grew 54% year-over-year. In addition, innovation remains a cornerstone of our strategy as we had several important product launches during the quarter, which we expect to strengthen our competitive position and enable us to drive demand in new sectors and geographies. During the quarter, we also focused on expanding our sales infrastructure, channel relationships, and research and development teams in order to support our growth and pursue additional revenue opportunities.”
Knowlton continued, “We are pleased with our continued solid execution in a challenging market environment. Despite near-term headwinds in education spending, our portfolio of technology solutions and strong market leadership position in interactive whiteboards leaves us well positioned to execute our long-term growth strategy and leverage our full offering across multiple markets. In addition to focusing on our core interactive whiteboard segment, we remain committed to growing the overall business through expanding sales of our attachment products, further penetrating higher growth geographies and introducing our collaboration solutions to businesses worldwide.”
| | | | | | | | | | | | | | | | |
| | | GAAP Results | |
| | | Three months ended
December 31, | | | Nine months ended
December 31, | |
($ millions) | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Revenue | | $ | 180.9 | | | $ | 156.1 | | | $ | 622.8 | | | $ | 492.4 | |
Net Income | | $ | 12.5 | | | $ | 19.9 | | | $ | 61.8 | | | $ | 131.5 | |
| |
| | | Non-GAAP Results | |
| | | Three months ended
December 31, | | | Nine months ended
December 31, | |
($ millions) | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Adjusted EBITDA | | $ | 34.0 | | | $ | 35.5 | | | $ | 169.4 | | | $ | 135.0 | |
Adjusted Net Income | | $ | 15.9 | | | $ | 12.6 | | | $ | 84.7 | | | $ | 53.8 | |
Total revenue for the third quarter of fiscal 2011 was $180.9 million, an increase of 16% compared to $156.1 million in the prior-year period. Revenue growth for the quarter was particularly strong in North America, up 27% compared to the same quarter last year. In terms of unit sales, 89,705 SMART Board™ interactive whiteboards were sold in the quarter, compared to 93,958 units sold in the prior-year period. Total revenue for the first nine months of fiscal 2011 was $622.8 million, an increase of 26% over the prior-year period. Revenue growth in the first nine months of the year was strong in both North America and EMEA, up 27% and 23%, respectively.
Gross profit for the third quarter of fiscal 2011 was $86.4 million, an increase of 13% compared to $76.6 million in the prior-year period. Gross margins for the third quarter were 48%, compared to 49% for the same period last year.
Adjusted EBITDA for the third quarter of fiscal 2011 was $34.0 million, representing an Adjusted EBITDA margin of 19% compared to $35.5 million in the prior-year period. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue after adding back the net impact of deferred revenue.
GAAP net income was $12.5 million for the third quarter of fiscal 2011, compared to $19.9 million in the prior-year period. GAAP EPS was $0.10 based on 123.8 million weighted average shares outstanding, compared to $0.11 based on 180.5 million weighted average shares outstanding during the same period last year. GAAP net income during the quarter ended December 31, 2010, includes a $3.2 million foreign exchange gain, partly due to the conversion of our U.S. dollar-denominated long-term debt into the company’s functional currency of Canadian dollars, compared to an $8.7 million foreign exchange gain during the same period last year.
Adjusted Net Income for the third quarter of fiscal 2011 was $15.9 million, an increase of 26% compared to $12.6 million in the same period last year. Adjusted EPS was $0.13 based on 123.8 million weighted average shares outstanding, compared to $0.07 based on 180.5 million weighted average shares outstanding for the third quarter of fiscal 2010.
As of December 31, SMART had cash and cash equivalents of $130.1 million and $365.1 million of debt outstanding.
Financial Outlook for Fiscal 2011
Total revenue is expected to be in the range of $775 million to $790 million for the fiscal year ended March 31, 2011. Adjusted Net Income per share is expected to be in the range of $0.69 to $0.73.
Conference call information
SMART will host a conference call today, February 8, 2011, at 2:30 p.m. MT (4:30 p.m. ET) to discuss the company’s financial results and business outlook. To access this call, dial 877.312.5844 (North America) or 253.237.1152 (outside North America) with conference ID #39487778. A live webcast of the conference call will be accessible from the investor relations page of SMART’s website athttp://investor.smarttech.com/index.cfm, and a replay will be archived and accessible athttp://investor.smarttech.com/events.cfm. A replay of this conference call may also be accessed through February 18, 2011, by dialing 800.642.1687 (North America) or 706.645.9291 (outside North America). The replay pass code is 39487778.
About SMART
SMART Technologies is a leading provider of collaboration solutions that transform the way the world works and learns. We believe that collaboration and interaction should be easy. As the global leader in interactive whiteboards, we bring more than two decades of collaboration research and development to a broad range of easy-to-use, integrated solutions that free people from their desks and computer screens, so collaborating and learning with digital resources are more natural.
The SMART Technologies logo is available athttp://www.globenewswire.com/newsroom/prs/?pkgid=7573
Certain statements made in this press release are forward-looking statements within the meaning of the U.S. federal and applicable Canadian securities laws. Statements that include the words “expanding,” “expect,” “increasing,” “intend,” “plan,” “believe,” “project,” “estimate,” “anticipate,” “may,” “will,” “continue,” further,” “seek,” and similar words or statements of a future or forward-looking nature identify forward-looking statements. In particular and without limitation, this press release contains forward-looking statements pertaining to the continuing adoption of our core solutions, the increasing demand for attachment products, the belief that interactive whiteboard products will remain a priority for school districts, the attainment of financial objectives, the execution of our growth strategy, the cross-selling of technology solutions, the expansion of our presence with business and government organizations, the leveraging of our touch technology, and the investment in our sales and research and development activities.
All forward-looking statements address matters that involve risks, uncertainties and assumptions. Accordingly, there are or will be important factors and assumptions that could cause our actual results and other circumstances and events to differ materially from those indicated in these statements. We believe that these factors and assumptions include, but are not limited to, those described under “Risk Factors” in our Registration Statement on Form F-1, our final Canadian prospectus and in our interim management’s discussion and analysis, as well as the following:
| | • | | Our ability to manage our growth; |
| | • | | Competition in our industry; |
| | • | | Our ability to successfully obtain patents or registration for other intellectual property rights or protect, maintain and enforce such rights; |
| | • | | Third-party claims of infringement or violation of, or other conflicts with, intellectual property rights by us; |
| | • | | Our ability to enhance current products and develop and introduce new products; |
| | • | | The development of the market for interactive learning and collaboration products; |
| | • | | Reduced spending by our customers due to changes in the spending policies or budget priorities for government funding; |
| | • | | Our ability to grow our sales in foreign markets; |
| | • | | Our ability to manage risks inherent in foreign operations; |
| | • | | Our ability to protect our brand; |
| | • | | Our ability to obtain components and products from suppliers on a timely basis and on favorable terms; |
| | • | | Our ability to manage our component and product manufacturing and logistical services successfully; |
| | • | | The reliability of component manufacturing, product assembly and logistical services provided by third parties; |
| | • | | Possible changes in the demand for our products; |
| | • | | Our ability to successfully execute our strategy to grow in the business and government markets; |
| | • | | Our ability to integrate the operations of the various businesses we acquire, including NextWindow; |
| | • | | Our ability to establish new relationships and to build on our existing relationships with our dealers and distributors; and |
| | • | | Our ability to manage cash flow, foreign exchange risk and working capital. |
The forward-looking statements speak only as of the date they are made. Except as may be required by applicable law, we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Non-GAAP financial measures
This release includes the non-GAAP financial measures Adjusted EBITDA and Adjusted Net Income. We define Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, as well as adjusting for the following items: foreign exchange gains or losses, net change in deferred revenue, stock-based compensation, acquisition costs and other (income) loss. We define Adjusted Net Income as net income before stock-based compensation, acquisition costs, foreign exchange gains or losses, net change in deferred revenue and amortization of intangible assets, all net of tax.
Adjusted EBITDA and Adjusted Net Income are non-GAAP measures and should not be considered as an alternative to net income or any other measure of financial performance calculated and presented in accordance with GAAP. Adjusted EBITDA, Adjusted Net Income and other non-GAAP measures have inherent limitations, and therefore you should not place undue reliance on them.
We use Adjusted EBITDA as a key measure to assess the core operating performance of our business removing the effects of our leveraged capital structure and the volatility associated with the foreign exchange on our U.S. dollar-denominated debt. We also use Adjusted Net Income to assess the performance of the business removing the after-tax impact of stock-based compensation, acquisition costs, foreign exchange gains and losses, revenue deferral and amortization of intangible assets. We use both of these measures to assess business performance when we evaluate our results in comparison to budgets, forecasts, prior-year financial results and other companies in our industry. Many of these companies use similar non-GAAP measures to supplement their GAAP disclosures but such measures may not be directly comparable. In addition to its use by management in the assessment of business performance, Adjusted EBITDA is used by our Board of Directors and by our lenders in assessing management’s performance and is a key metric in the determination of incentive plan payments. In addition, we believe Adjusted EBITDA and Adjusted Net Income may be useful to investors in evaluating our operating performance because securities analysts use metrics similar to Adjusted EBITDA and Adjusted Net Income as supplemental measures to evaluate the overall operating performance of companies.
SMART Technologies Inc.
Unaudited Consolidated Condensed Statements of Operations and Selected Other Data
(millions of U.S. dollars, except share amounts, per share amounts, percentages,
units and average selling prices)
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31, | | | Nine months ended
December 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Consolidated Statement of Operations | | | | | | | | | | | | | | | | |
Revenue | | $ | 180.9 | | | $ | 156.1 | | | $ | 622.8 | | | $ | 492.4 | |
Cost of sales | | | 94.5 | | | | 79.5 | | | | 309.6 | | | | 250.6 | |
| | | | | | | | | | | | | | | | |
Gross margin | | | 86.4 | | | | 76.6 | | | | 313.2 | | | | 241.8 | |
| | | | |
Operating expenses | | | | | | | | | | | | | | | | |
Selling, marketing and administration expenses | | | 45.5 | | | | 35.7 | | | | 128.7 | | | | 97.0 | |
Research and development expenses | | | 13.8 | | | | 9.0 | | | | 38.3 | | | | 23.6 | |
Depreciation and amortization | | | 7.2 | | | | 3.9 | | | | 23.9 | | | | 9.2 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 19.9 | | | | 28.0 | | | | 122.3 | | | | 112.0 | |
Non-operating expenses | | | | | | | | | | | | | | | | |
Other (income) loss, net | | | (0.1 | ) | | | (0.2 | ) | | | (0.4 | ) | | | — | |
Interest expense | | | 5.3 | | | | 16.2 | | | | 26.8 | | | | 47.1 | |
Foreign exchange (gain) loss | | | (3.2 | ) | | | (8.7 | ) | | | 3.1 | | | | (83.6 | ) |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 17.9 | | | | 20.7 | | | | 92.8 | | | | 148.5 | |
Income tax expense | | | 5.4 | | | | 0.8 | | | | 31.0 | | | | 17.0 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 12.5 | | | $ | 19.9 | | | $ | 61.8 | | | $ | 131.5 | |
| | | | | | | | | | | | | | | | |
Earnings per share amounts | | | | | | | | | | | | | | | | |
Basic and diluted earnings per share | | $ | 0.10 | | | $ | 0.11 | | | $ | 0.46 | | | $ | 0.75 | |
Weighted average number of shares outstanding | | | 123,772,791 | | | | 180,508,997 | | | | 133,067,015 | | | | 174,867,315 | |
| | | | | | | | | | | | | | | | |
Selected Data | | | | | | | | | | | | | | | | |
Revenue by geographic location | | | | | | | | | | | | | | | | |
North America | | $ | 115.9 | | | $ | 91.2 | | | $ | 449.0 | | | $ | 353.1 | |
Europe, Middle East and Africa | | | 51.2 | | | | 43.8 | | | | 132.3 | | | | 107.4 | |
Rest of World | | | 13.8 | | | | 21.1 | | | | 41.5 | | | | 31.9 | |
| | | | | | | | | | | | | | | | |
| | $ | 180.9 | | | $ | 156.1 | | | $ | 622.8 | | | $ | 492.4 | |
| | | | | | | | | | | | | | | | |
As a percent of revenue | | | | | | | | | | | | | | | | |
Gross margin | | | 48 | % | | | 49 | % | | | 50 | % | | | 49 | % |
Selling, marketing and administration expenses | | | 25 | % | | | 23 | % | | | 21 | % | | | 20 | % |
Research and development expenses | | | 8 | % | | | 6 | % | | | 6 | % | | | 5 | % |
| | | | |
Adjusted EBITDA(1) | | $ | 34.0 | | | $ | 35.5 | | | $ | 169.4 | | | $ | 135.0 | |
Adjusted EBITDA as a percentage of revenue(1) (2) | | | 19 | % | | | 22 | % | | | 27 | % | | | 27 | % |
| | | | |
Adjusted Net Income(3) | | $ | 15.9 | | | $ | 12.6 | | | $ | 84.7 | | | $ | 53.8 | |
Adjusted Net Income per share(3)(4) | | $ | 0.13 | | | $ | 0.07 | | | $ | 0.64 | | | $ | 0.31 | |
| | | | |
Total number of SMART Board interactive whiteboards sold | | | 89,705 | | | | 93,958 | | | | 323,350 | | | | 287,158 | |
Average selling price of SMART Board interactive whiteboards sold(5) | | $ | 1,370 | | | $ | 1,261 | | | $ | 1,330 | | | $ | 1,283 | |
| | | | |
Period end number of shares outstanding | | | 123,772,791 | | | | 180,508,997 | | | | 123,772,791 | | | | 180,508,997 | |
| | | | | | | | | | | | | | | | |
| (1) | Adjusted EBITDA is a non-GAAP measure that is described and reconciled to net income in the next section. |
| (2) | Adjusted EBITDA as a percentage of revenue is calculated by dividing Adjusted EBITDA by revenue after adding back the net change in deferred revenue. |
| (3) | Adjusted Net Income is a non-GAAP measure that is described and reconciled to net income in the next section and is not a substitute for the GAAP equivalent. |
| (4) | Adjusted Net Income per share is calculated by dividing Adjusted Net Income by the average number of basic shares outstanding during the period. |
| (5) | Average selling price is calculated by dividing the total revenue from the sale of SMART Board interactive whiteboards and SMART Board interactive whiteboards with integrated projectors by the total number of units sold. |
SMART Technologies Inc.
Unaudited Consolidated Condensed Balance Sheets
(millions of U.S. dollars)
| | | | | | | | |
| | | December 31,
2010 | | | March 31,
2010 | |
ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 130.1 | | | $ | 230.2 | |
Trade receivables | | | 113.2 | | | | 81.9 | |
Other current assets | | | 6.5 | | | | 12.0 | |
Inventory | | | 79.3 | | | | 58.7 | |
Deferred income taxes | | | 11.5 | | | | 11.7 | |
| | | | | | | | |
| | | 340.6 | | | | 394.5 | |
| | |
Property and equipment | | | 113.0 | | | | 108.0 | |
Goodwill and intangible assets | | | 79.3 | | | | 0.5 | |
Deferred income taxes | | | 8.5 | | | | 15.0 | |
Deferred financing fees | | | 9.0 | | | | 9.6 | |
Other long-term assets | | | — | | | | 0.5 | |
| | | | | | | | |
| | $ | 550.4 | | | $ | 528.1 | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable and accrued liabilities | | $ | 110.3 | | | $ | 120.0 | |
Deferred revenue | | | 30.1 | | | | 24.7 | |
Income taxes payable | | | 10.0 | | | | 5.5 | |
Current portion of long-term debt | | | 3.1 | | | | 94.2 | |
| | | | | | | | |
| | | 153.5 | | | | 244.4 | |
| | |
Long-term debt | | | 362.0 | | | | 903.6 | |
Deferred revenue | | | 85.0 | | | | 74.4 | |
| | | | | | | | |
| | | 600.5 | | | | 1,222.4 | |
Shareholders’ deficit | | | | | | | | |
Share capital | | | 721.9 | | | | 161.3 | |
Accumulated other comprehensive loss | | | (8.2 | ) | | | (24.4 | ) |
Additional paid-in capital | | | 5.6 | | | | — | |
Deficit | | | (769.4 | ) | | | (831.2 | ) |
| | | | | | | | |
| | | (50.1 | ) | | | (694.3 | ) |
| | | | | | | | |
| | $ | 550.4 | | | $ | 528.1 | |
| | | | | | | | |
SMART Technologies Inc.
Unaudited Consolidated Condensed Statements of Cash Flows
(millions of U.S. dollars)
| | | | | | | | |
| | | Nine months ended
December 31, | |
| | | 2010 | | | 2009 | |
Cash (used in) provided by | | | | | | | | |
Operations | | | | | | | | |
Net income | | $ | 61.8 | | | $ | 131.5 | |
Adjustments to reconcile net income to net cash provided by operating activities | | | | | | | | |
Depreciation and amortization | | | 29.3 | | | | 13.8 | |
Non-cash interest expense on long-term debt | | | 4.7 | | | | 23.7 | |
Loss (gain) on foreign exchange | | | (0.4 | ) | | | (85.2 | ) |
Stock-based compensation | | | 5.6 | | | | — | |
Deferred income tax (recovery) expense | | | (3.1 | ) | | | 3.8 | |
Loss on disposal of property and equipment | | | — | | | | 0.2 | |
Change in non-cash working capital | | | (35.0 | ) | | | 19.4 | |
| | | | | | | | |
Cash provided by operating activities | | | 62.9 | | | | 107.2 | |
Investing | | | | | | | | |
Business acquisition | | | (74.0 | ) | | | — | |
Capital expenditures | | | (20.4 | ) | | | (19.5 | ) |
Intangible assets | | | (0.5 | ) | | | (0.5 | ) |
| | | | | | | | |
Cash used in investing activities | | | (94.9 | ) | | | (20.0 | ) |
Financing | | | | | | | | |
Net debt proceeds (repayments) | | | (213.5 | ) | | | 5.6 | |
Proceeds from initial public offering, net | | | 134.3 | | | | — | |
Financing fees paid | | | (1.4 | ) | | | — | |
Repayment of loans under the Participant Equity Loan Plan | | | 8.2 | | | | 0.3 | |
| | | | | | | | |
Cash (used in) provided by financing activities | | | (72.4 | ) | | | 5.9 | |
Effect of exchange rate changes on cash and cash equivalents | | | 4.3 | | | | 12.0 | |
| | | | | | | | |
Net (decrease) increase in cash and cash equivalents | | | (100.1 | ) | | | 105.2 | |
Cash and cash equivalents, beginning of period | | | 230.2 | | | | 37.1 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 130.1 | | | $ | 142.2 | |
| | | | | | | | |
SMART Technologies Inc.
Reconciliation of GAAP and Non-GAAP Results
(millions of U.S. dollars)
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31, | | | Nine months ended
December 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Adjusted EBITDA | | | | | | | | | | | | | | | | |
Net income | | $ | 12.5 | | | $ | 19.9 | | | $ | 61.8 | | | $ | 131.5 | |
Income tax expense | | | 5.4 | | | | 0.8 | | | | 31.0 | | | | 17.0 | |
Depreciation in cost of sales | | | 0.9 | | | | 1.1 | | | | 3.2 | | | | 3.0 | |
Depreciation and amortization | | | 7.2 | | | | 3.9 | | | | 23.9 | | | | 9.2 | |
Interest expense | | | 5.3 | | | | 16.2 | | | | 26.8 | | | | 47.1 | |
Foreign exchange (gain) loss | | | (3.2 | ) | | | (8.7 | ) | | | 3.1 | | | | (83.6 | ) |
Change in deferred revenue(1) | | | 2.2 | | | | 2.5 | | | | 13.3 | | | | 10.8 | |
Stock-based compensation | | | 3.8 | | | | — | | | | 5.6 | | | | — | |
Acquisition costs | | | — | | | | — | | | | 1.1 | | | | — | |
Other (income) loss, net | | | (0.1 | ) | | | (0.2 | ) | | | (0.4 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 34.0 | | | $ | 35.5 | | | $ | 169.4 | | | $ | 135.0 | |
| | | | | | | | | | | | | | | | |
| (1) | Change in deferred revenue is calculated as the difference between deferred revenue and deferred revenue recognized. In accordance with our revenue recognition policy, deferred revenue represents the portion of our sales that we do not recognize in the period. Deferred revenue recognized represents the portion of our revenue deferred in a prior period that we recognized in the current period. We deferred revenue of $7.8 million and $7.6 million in the three months ended December 31, 2010 and 2009, respectively, and we deferred revenue of $28.2 million and $22.0 million in the nine months ended December 31, 2010 and 2009, respectively. |
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31, | | | Nine months ended
December 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Adjusted Net Income | | | | | | | | | | | | | | | | |
Net income | | $ | 12.5 | | | $ | 19.9 | | | $ | 61.8 | | | $ | 131.5 | |
Adjustments to net income | | | | | | | | | | | | | | | | |
Amortization of intangible assets | | | 2.4 | | | | — | | | | 6.6 | | | | — | |
Foreign exchange (gain) loss | | | (3.2 | ) | | | (8.7 | ) | | | 3.1 | | | | (83.6 | ) |
Change in deferred revenue | | | 2.2 | | | | 2.5 | | | | 13.3 | | | | 10.8 | |
Stock-based compensation | | | 3.8 | | | | — | | | | 5.6 | | | | — | |
Acquisition costs | | | — | | | | — | | | | 1.1 | | | | — | |
| | | | | | | | | | | | | | | | |
| | | 5.2 | | | | (6.2 | ) | | | 29.7 | | | | (72.8 | ) |
Tax impact on adjustments(1) | | | 1.8 | | | | 1.1 | | | | 6.8 | | | | 4.9 | |
| | | | | | | | | | | | | | | | |
Adjustments to net income, net of tax | | | 3.4 | | | | (7.3 | ) | | | 22.9 | | | | (77.7 | ) |
| | | | | | | | | | | | | | | | |
Adjusted Net Income | | $ | 15.9 | | | $ | 12.6 | | | $ | 84.7 | | | $ | 53.8 | |
| | | | | | | | | | | | | | | | |
Adjusted Net Income per share | | | | | | | | | | | | | | | | |
Basic and diluted earnings per share | | $ | 0.10 | | | $ | 0.11 | | | $ | 0.46 | | | $ | 0.75 | |
Adjustments to net income, net of tax, per share | | | 0.03 | | | | (0.04 | ) | | | 0.18 | | | | (0.44 | ) |
| | | | | | | | | | | | | | | | |
Adjusted Net Income per share | | $ | 0.13 | | | $ | 0.07 | | | $ | 0.64 | | | $ | 0.31 | |
| | | | | | | | | | | | | | | | |
| (1) | Reflects the tax impact on the adjustments to net income. A key driver of our foreign exchange (gain) loss is the conversion of our U.S. dollar-denominated debt that was originally incurred at an average rate of 1.05. When the unrealized foreign exchange amount on U.S. dollar-denominated debt is in a net gain position, the gain is tax-effected at current rates. When the unrealized foreign exchange amount on the U.S. dollar-denominated debt is in a net loss position, a valuation allowance is taken against it and as a result no net tax effect is recorded. |
For more information, please contact
Media contact
Marina Geronazzo
Manager, Public Relations
SMART Technologies Inc.
Phone 1.403.407.5088
E-mailMarinaGeronazzo@smarttech.com
Investor contact
Seth Potter
ICR
Phone 1.877.320.2241
E-mailir@smarttech.com
© 2011 SMART Technologies Inc. The SMART Board, SMART logo and smarttech are trademarks or registered trademarks of SMART Technologies in the U.S. and/or other countries.
Please note that SMART is written in all capital letters.
