PLANTRONICS, INC. | |||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP NET REVENUE TO NON-GAAP NET REVENUE | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | |||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||
GAAP Net revenues | $ | 501,669 | $ | 468,488 | $ | 447,767 | $ | 461,709 | $ | 1,879,633 | |||||||||||
Deferred revenue purchase accounting | 28,923 | 19,316 | 12,159 | 8,524 | 68,922 | ||||||||||||||||
Non-GAAP Net revenues | $ | 530,592 | $ | 487,804 | $ | 459,926 | $ | 470,233 | $ | 1,948,555 | |||||||||||
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PLANTRONICS, INC. | |||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP COGS TO NON-GAAP COGS | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | |||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||
GAAP Cost of goods sold | $ | 286,532 | $ | 251,957 | $ | 235,121 | $ | 255,638 | $ | 1,029,248 | |||||||||||
Purchase accounting amortization | (27,575 | ) | (31,118 | ) | (30,000 | ) | (30,716 | ) | (119,409 | ) | |||||||||||
Acquisition and integration fees | (404 | ) | (435 | ) | (922 | ) | (88 | ) | (1,849 | ) | |||||||||||
Stock-based compensation | (1,067 | ) | (1,073 | ) | (978 | ) | (997 | ) | (4,115 | ) | |||||||||||
Rebranding costs | — | — | (36 | ) | (23 | ) | (59 | ) | |||||||||||||
Non-GAAP Cost of goods sold | $ | 257,486 | $ | 219,331 | $ | 203,185 | $ | 223,814 | $ | 903,816 | |||||||||||
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PLANTRONICS, INC. | ||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP GROSS PROFIT % TO NON-GAAP GROSS PROFIT % | ||||||||||||||||
($ in thousands) | ||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | ||||||||||||
GAAP Gross profit % | 42.9 | % | 46.2 | % | 47.5 | % | 44.6 | % | 45.2 | % | ||||||
Deferred Revenue Purchase Accounting | 3.1 | % | 2.1 | % | 1.4 | % | 1.1 | % | 1.9 | % | ||||||
Purchase accounting amortization | 5.2 | % | 6.4 | % | 6.5 | % | 6.5 | % | 6.1 | % | ||||||
Acquisition and integration fees | 0.1 | % | 0.1 | % | 0.2 | % | — | % | 0.1 | % | ||||||
Stock-based compensation | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||
Non-GAAP Gross profit % | 51.5 | % | 55.0 | % | 55.8 | % | 52.4 | % | 53.5 | % | ||||||
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PLANTRONICS, INC. | ||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP OPERATING EXPENSE TO NON-GAAP OPERATING EXPENSE | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
GAAP Operating expense | $ | 239,844 | $ | 235,790 | $ | 241,495 | $ | 211,681 | $ | 928,810 | ||||||||||||||
Acquisition and integration fees | (21,870 | ) | (13,888 | ) | (19,513 | ) | (10,569 | ) | (65,840 | ) | ||||||||||||||
Purchase accounting amortization | (15,278 | ) | (15,281 | ) | (15,278 | ) | (15,278 | ) | (61,115 | ) | ||||||||||||||
Stock-based compensation | (10,652 | ) | (10,152 | ) | (11,926 | ) | (13,696 | ) | (46,426 | ) | ||||||||||||||
Restructuring and other related charges | (12,130 | ) | (11,983 | ) | (19,525 | ) | (5,847 | ) | (49,485 | ) | ||||||||||||||
Rebranding costs | — | (5,192 | ) | (5,419 | ) | (649 | ) | (11,260 | ) | |||||||||||||||
Other adjustments | — | (1,005 | ) | 1 | 1,162 | 1 | (542 | ) | 2 | (383 | ) | 1, 2 | ||||||||||||
Non-GAAP Operating expense | $ | 179,914 | $ | 178,289 | $ | 170,996 | $ | 165,100 | $ | 694,299 | ||||||||||||||
1 | Excluded amounts represent immaterial gains (losses) from litigation. |
2 | Includes Executive transition costs and losses due to litigation settlements. |
4
PLANTRONICS, INC. | ||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
GAAP Operating income | $ | (24,707 | ) | $ | (19,259 | ) | $ | (28,849 | ) | $ | (5,610 | ) | $ | (78,425 | ) | |||||||||
Purchase accounting amortization | 42,853 | 46,399 | 45,278 | 45,994 | 180,524 | |||||||||||||||||||
Deferred revenue purchase accounting | 28,923 | 19,316 | 12,159 | 8,524 | 68,922 | |||||||||||||||||||
Acquisition and integration fees | 22,274 | 14,323 | 20,435 | 10,657 | 67,689 | |||||||||||||||||||
Stock-based compensation | 11,719 | 11,225 | 12,904 | 14,693 | 50,541 | |||||||||||||||||||
Restructuring and other related charges | 12,130 | 11,983 | 19,525 | 5,847 | 49,485 | |||||||||||||||||||
Rebranding costs | — | 5,192 | 5,455 | 672 | 11,319 | |||||||||||||||||||
Other adjustments | — | 1,005 | 1 | (1,162 | ) | 1 | 542 | 2 | 387 | 1, 2 | ||||||||||||||
Non-GAAP Operating income | $ | 93,192 | $ | 90,184 | $ | 85,745 | $ | 81,319 | $ | 350,440 | ||||||||||||||
1 | Excluded amounts represent immaterial (gains) losses from litigation. |
2 | Includes Executive transition costs and losses due to litigation settlements. |
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PLANTRONICS, INC. | ||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP OPERATING INCOME TO ADJUSTED EBITDA | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
GAAP operating income | $ | (24,707 | ) | $ | (19,259 | ) | $ | (28,849 | ) | $ | (5,610 | ) | $ | (78,425 | ) | |||||||||
Deferred revenue purchase accounting | 28,923 | 19,316 | 12,159 | 8,524 | 68,922 | |||||||||||||||||||
Acquisition and integration fees | 22,274 | 14,323 | 20,435 | 10,657 | 67,689 | |||||||||||||||||||
Stock-based compensation | 11,719 | 11,225 | 12,904 | 14,693 | 50,541 | |||||||||||||||||||
Restructuring and other related charges | 12,130 | 11,983 | 19,525 | 5,847 | 49,485 | |||||||||||||||||||
Rebranding costs | — | 5,192 | 5,455 | 672 | 11,319 | |||||||||||||||||||
Other adjustments | — | 1,005 | 1 | (1,162 | ) | 1 | 542 | 2 | 1,386 | 1, 2 | ||||||||||||||
Depreciation and amortization | 55,117 | 58,606 | 57,698 | 57,376 | 228,797 | |||||||||||||||||||
Adjusted EBITDA | $ | 105,456 | $ | 102,391 | $ | 98,165 | $ | 92,701 | $ | 398,713 | ||||||||||||||
1 | Excluded amounts represent immaterial (gains) losses from litigation. |
2 | Includes Executive transition costs and losses due to litigation settlements. |
6
PLANTRONICS, INC. | |||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP OTHER INCOME & EXPENSE TO NON-GAAP OTHER INCOME & EXPENSE | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | |||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||
GAAP Other income and expense | $ | (24,907 | ) | $ | (23,878 | ) | $ | (23,599 | ) | $ | (24,422 | ) | $ | (96,806 | ) | ||||||
Gain from non-recurring sales of investments | — | (2,583 | ) | — | — | (2,583 | ) | ||||||||||||||
Non-GAAP Other income and expense | $ | (24,907 | ) | $ | (26,461 | ) | $ | (23,599 | ) | $ | (24,422 | ) | $ | (99,389 | ) | ||||||
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PLANTRONICS, INC. | ||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP DILUTED EPS TO NON-GAAP DILUTED EPS | ||||||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS DATA | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
December 31, | March 31, | June 30, | September 30, | September 30, | ||||||||||||||||||||
2018 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
GAAP Diluted earnings per common share | $ | (1.06 | ) | $ | (0.55 | ) | $ | (1.14 | ) | $ | (0.65 | ) | $ | (3.40 | ) | |||||||||
Purchase accounting amortization | 1.08 | 1.17 | 1.15 | 1.16 | 4.56 | |||||||||||||||||||
Deferred revenue purchase accounting | 0.73 | 0.49 | 0.31 | 0.21 | 1.74 | |||||||||||||||||||
Stock-based compensation | 0.30 | 0.28 | 0.33 | 0.37 | 1.28 | |||||||||||||||||||
Acquisition and integration fees | 0.56 | 0.36 | 0.52 | 0.27 | 1.71 | |||||||||||||||||||
Restructuring and other related charges | 0.31 | 0.30 | 0.49 | 0.15 | 1.25 | |||||||||||||||||||
Rebranding costs | — | 0.13 | 0.14 | 0.02 | 0.29 | |||||||||||||||||||
Other adjustments | — | (0.04 | ) | 1 | (0.03 | ) | 2 | 0.01 | 3 | (0.06 | ) | 1,2, 3 | ||||||||||||
Income tax effect | (0.57 | ) | (0.73 | ) | (0.46 | ) | (0.32 | ) | (2.08 | ) | ||||||||||||||
Effect of anti-dilutive securities | 0.01 | 0.03 | 0.01 | 0.02 | 0.07 | |||||||||||||||||||
Non-GAAP Diluted earnings per common share | $ | 1.36 | $ | 1.44 | $ | 1.32 | $ | 1.24 | $ | 5.36 | ||||||||||||||
1 | Excluded amounts represent immaterial losses from litigation and gains from non-recurring sales of investments. |
2 | Excluded amounts represent immaterial gains from litigation. |
3 | Includes Executive transition costs and losses due to litigation settlements. |
8