yourfanat wrote: I am using another tool for Oracle developers - dbForge Studio for Oracle. This IDE has lots of usefull features, among them: oracle designer, code competion and formatter, query builder, debugger, profiler, erxport/import, reports and many others. The latest version supports Oracle 12C. More information here.
Black Box Corporation (NASDAQ:BBOX), a leading communications system
integrator dedicated to designing, sourcing, implementing and
maintaining today's complex communications solutions, today reported
results for the third quarter of Fiscal 2013.
Third quarter of Fiscal 2013 diluted earnings per share was 52¢ on net
income of $8.5 million or 3.4% of revenues compared to diluted loss per
share of $16.12 on net loss of $283.4 million or (102.7)% of revenues
for the same quarter last year. Included in our diluted earnings per
share for the third quarter of Fiscal 2013 and the third quarter of
Fiscal 2012 was a loss ($2.7 million, pre-tax and $1.7 million,
after-tax) resulting from the expected divestiture of our
non-controlling interest in Genesis Networks Integration Services, LLC
and the previously disclosed goodwill impairment charge ($317.8 million,
pre-tax and $296.0 million, after-tax), respectively. On a sequential
quarter comparison basis, second quarter of Fiscal 2013 diluted earnings
per share was 43¢ on net income of $7.1 million or 2.7% of revenues.
Excluding provision (benefit) for income taxes and reconciling items
(which are identified below) and utilizing an operational effective tax
rate (as described below), operating earnings per share (which is a
non-GAAP term and is defined below) for the third quarter of Fiscal 2013
was 79¢ on operating net income (which is a non-GAAP term and is defined
below) of $13.0 million or 5.2% of revenues compared to operating
earnings per share of 85¢ on operating net income of $15.0 million or
5.4% of revenues for the same quarter last year. Third quarter of Fiscal
2013 pre-tax reconciling items, including the divestiture charge noted
above, were $7.3 million compared to $321.8 million, which included the
goodwill impairment loss, for the same quarter last year. See below for
further discussion regarding Management's use of non-GAAP accounting
measurements and a detailed presentation of the Company's pre-tax
reconciling items for the periods presented above.
Third quarter of Fiscal 2013 total revenues were $252 million, a
decrease of 9% from $276 million for the same quarter last year. On a
sequential quarter comparison basis, second quarter of Fiscal 2013 total
revenues were $260 million.
Third quarter of Fiscal 2013 cash provided by operating activities was
$16 million or 191% of net income, compared to cash provided by
operating activities of $30.6 million or (11)% of net loss for the same
quarter last year. Third quarter of Fiscal 2013 free cash flow (which is
a non-GAAP term and is defined below) was $15 million compared to $27
million for the same quarter last year. On a sequential quarter
comparison basis, second quarter of Fiscal 2013 cash provided by
operating activities was $18 million or 250% of net income and free cash
flow was $17 million. During the third quarter of Fiscal 2013, Black Box
invested $6 million to repurchase common stock and $1 million to pay
dividends.Management believes that free cash flow, defined by
the Company as cash provided by (used for) operating activities less net
capital expenditures, plus proceeds from stock option exercises, plus or
minus foreign currency translation adjustments, is an important
measurement of liquidity as it represents the total cash available to
the Company.
For the nine months ended December 29, 2012, diluted earnings per share
was $1.28 on net income of $21.6 million or 2.8% of revenues compared to
diluted loss per share of $14.54 on net loss of $259.0 million or
(31.1)% of revenues for the same period last year. Excluding provision
(benefit) for income taxes and reconciling items and utilizing an
operational effective tax rate, operating earnings per share for the
nine months ended December 29, 2012 was $1.99 on operating net income of
$33.6 million or 4.4% of revenues compared to operating earnings per
share of $2.38 on operating net income of $42.6 million or 5.1% of
revenues for the same period last year. Pre-tax reconciling items for
the nine months ended December 29, 2012 were $19.4 million compared to
$326.4 million for the same period last year.
For the nine months ended December 29, 2012, total revenues were $760
million, a decrease of 9% from $832 million for the same period last
year.
For the nine months ended December 29, 2012, cash provided by operating
activities was $31 million or 142% of net income, compared to cash
provided by operating activities of $44 million or (17)% of net income
for the same period last year. Free cash flow for the nine months ended
December 29, 2012 was $27 million compared to $36 million for the same
period last year. For the nine months ended December 29, 2012, Black Box
invested $33 million to repurchase common stock and $4 million to pay
dividends.
The Company's six-month order backlog was $188 million at December 29,
2012, compared to $208 million for the same quarter last year. On a
sequential quarter-end comparison basis, the Company's six-month order
backlog was $203 million at September 29, 2012.
For Fiscal 2013, the Company is targeting reported revenues of
approximately $990 million to $995 million and corresponding operating
earnings per share in the range of $2.50 to $2.55. Included in these
projections is an effective tax rate of 38.0%. For the fourth quarter of
Fiscal 2013, the Company is targeting reported revenues of approximately
$230 million to $235 million and corresponding operating earnings per
share in the range of 51¢ to 56¢. These targets exclude
acquisition-related expense, restructuring and the impact of changes in
the fair market value of the Company's interest-rate swaps, and are
before any new mergers and acquisition activity that has not been
announced.
Commenting on the third quarter of Fiscal 2013 results, Terry Blakemore,
Chief Executive Officer, said, "I am pleased with our operating results
from the third quarter of Fiscal 2013. Our earnings and positive cash
flow reflect the leverage in our financial and operating model created
by our continued focus on the efficient execution of our business
operations."
Michael McAndrew, President and Chief Operating Officer, said, "At Black
Box, we know that we must continue to execute, adapt and grow to create
long-term value for our clients and shareholders. We are actively
transitioning our business to align with the rapid evolution of
enterprise communications. Our transition will require continued
strategic investment in new solutions and leverageable resources. I am
confident that expanding our portfolio of product and service
offerings while deepening our centralized expertise will position Black
Box to best serve our clients as they optimize their communications
investments."
Black Box also announced that Ronald Basso will join the Company as
Executive Vice President of Business Development and General Counsel.
Mr. Basso previously served as the company's lead engagement partner
from the law firm of Buchanan Ingersoll & Rooney PC.
The Company will conduct a conference call beginning at 5:00 p.m.
Eastern Daylight Time today, January 29, 2013. Terry Blakemore, Chief
Executive Officer, will host the call. To participate in the call,
please dial 612-332-0107 approximately 15 minutes prior to the starting
time and ask to be connected to the Black Box Earnings Call. A replay of
the conference call will be available for one week after the
teleconference by dialing 320-365-3844 and using access code 277403. A
live, listen-only audio webcast of the call will be available through a
link on the Investor Relations page of the Company's Web site at http://www.blackbox.com.
A webcast replay of the call will also be archived on Black Box's Web
site for a limited period of time following the conference call.
Black Box is a leading communications system integrator dedicated to
designing, sourcing, implementing and maintaining today's complex
communications solutions. Black Box services more than 175,000 clients
in approximately 150 countries with approximately 200 offices throughout
the world. To learn more, visit the Black Box Web site at http://www.blackbox.com.
Black Box® and the Double Diamond logo are registered
trademarks of BB Technologies, Inc.
Any forward-looking statements contained in this release are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and speak only as of the date of this
release. You can identify these forward-looking statements by the fact
that they use words such as "should," "anticipate," "estimate,"
"approximate," "expect," "target," "may," "will," "project," "intend,"
"plan," "believe" and other words of similar meaning and expression in
connection with any discussion of future operating or financial
performance. One can also identify forward-looking statements by the
fact that they do not relate strictly to historical or current facts.
Forward-looking statements are inherently subject to a variety of risks
and uncertainties that could cause actual results to differ materially
from those projected. Although it is not possible to predict or identify
all risk factors, they may include levels of business activity and
operating expenses, expenses relating to corporate compliance
requirements, cash flows, global economic and business conditions,
successful integration of acquisitions, the timing and costs of
restructuring programs, successful marketing of the Company's product
and services offerings, successful implementation of the Company's M&A
program, including identifying appropriate targets, consummating
transactions and successfully integrating the businesses, successful
implementation of our government contracting programs, competition,
changes in foreign, political and economic conditions, fluctuating
foreign currencies compared to the U.S. dollar, rapid changes in
technologies, client preferences, the Company's arrangements with
suppliers of voice equipment and technology, government budgetary
constraints and various other matters, many of which are beyond the
Company's control. Additional risk factors are included in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2012. We
can give no assurance that any goal, plan or target set forth in
forward-looking statements will be achieved and readers are cautioned
not to place undue reliance on such statements, which speak only as of
the date made. We undertake no obligation to release publicly any
revisions to forward-looking statements as a result of future events or
developments.
BLACK BOX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands, except par value
December 29, 2012
March 31, 2012
Assets
Cash and cash equivalents
$
29,469
$
22,444
Accounts receivable, net
158,568
163,888
Inventories, net
56,265
56,956
Costs/estimated earnings in excess of billings on uncompleted
contracts
110,365
87,634
Other assets
23,248
22,678
Total current assets
377,915
353,600
Property, plant and equipment, net
27,101
27,109
Goodwill, net
346,546
346,438
Intangibles, net
113,982
126,541
Other assets
28,141
34,335
Total assets
$
893,685
$
888,023
Liabilities
Accounts payable
$
74,672
$
71,095
Accrued compensation and benefits
23,858
31,151
Deferred revenue
34,364
35,601
Billings in excess of costs/estimated earnings on uncompleted
contracts
18,202
14,315
Income taxes
4,087
2,574
Other liabilities
38,420
32,697
Total current liabilities
193,603
187,433
Long-term debt
191,803
179,621
Other liabilities
23,859
26,585
Total liabilities
$
409,265
$
393,639
Stockholders’ equity
Common stock
$
26
$
26
Additional paid-in capital
484,842
478,726
Retained earnings
364,843
347,242
Accumulated other comprehensive income
6,603
7,262
Treasury stock, at cost
(371,894
)
(338,872
)
Total stockholders’ equity
$
484,420
$
494,384
Total liabilities and stockholders’ equity
$
893,685
$
888,023
BLACK BOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three-months ended
Nine-months ended
December 29 and 31
December 29 and 31
In thousands, except per share amounts
2012
2011
2012
2011
Revenues
Products
$
46,854
$
51,379
$
137,492
$
149,427
On-Site services
205,235
224,560
622,595
682,109
Total
252,089
275,939
760,087
831,536
Cost of sales
Products
26,735
29,088
77,012
83,015
On-Site services
143,622
158,538
442,015
484,761
Total
170,357
187,626
519,027
567,776
Gross profit
81,732
88,313
241,060
263,760
Selling, general & administrative expenses
60,542
62,644
187,088
192,544
Goodwill impairment loss
—
317,797
—
317,797
Intangibles amortization
3,478
3,249
10,416
9,484
Operating income (loss)
17,712
(295,377
)
43,556
(256,065
)
Interest expense (income), net
1,133
1,856
4,956
3,690
Other expenses (income), net
2,839
311
3,788
876
Income (loss) before provision (benefit) for income taxes
13,740
(297,544
)
34,812
(260,631
)
Provision (benefit) for income taxes
5,222
(14,101
)
13,229
(1,655
)
Net income (loss)
$
8,518
$
(283,443
)
$
21,583
$
(258,976
)
Earnings (loss) per common share
Basic
$
0.52
$
(16.12
)
$
1.29
$
(14.54
)
Diluted
$
0.52
$
(16.12
)
$
1.28
$
(14.54
)
Weighted-average common shares outstanding
Basic
16,412
17,581
16,783
17,806
Diluted
16,525
17,581
16,863
17,806
Dividends per share
$
0.08
$
0.07
$
0.24
$
0.21
BLACK BOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three-months ended
Nine-months ended
December 29 and 31
December 29 and 31
In thousands
2012
2011
2012
2011
Operating Activities
Net income (loss)
$
8,518
$
(283,443
)
$
21,583
$
(258,976
)
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities
Intangibles amortization and depreciation
4,777
4,547
14,427
13,581
Loss (gain) on sale of property
(41
)
(24
)
(126
)
(166
)
Deferred taxes
928
(22,047
)
2,837
(22,597
)
Stock compensation expense
1,791
2,087
6,397
7,505
Change in fair value of interest-rate swaps
(317
)
715
878
(801
)
Goodwill impairment loss
—
317,797
—
317,797
Joint venture investment loss
2,670
—
2,670
—
Changes in operating assets and liabilities (net of acquisitions)
Accounts receivable, net
(5,329
)
2,200
5,364
(11,173
)
Inventories, net
432
1,438
683
(9,848
)
Costs/estimated earnings in excess of billings on uncompleted
contracts
89
6,148
(22,715
)
1,535
All other assets
614
2,042
1,357
2,404
Billings in excess of costs/estimated earnings on uncompleted
contracts
(291
)
(1,308
)
3,873
(749
)
All other liabilities
2,445
466
(6,502
)
5,362
Net cash provided by (used for) operating activities
$
16,286
$
30,618
$
30,726
$
43,874
Investing Activities
Capital expenditures
$
(1,183
)
$
(939
)
$
(4,085
)
$
(4,973
)
Capital disposals
79
43
214
187
Acquisition of businesses (payments)/recoveries
—
(766
)
17
(13,954
)
Prior merger-related (payments)/recoveries
(197
)
(838
)
(2,378
)
(1,174
)
Net cash provided by (used for) investing activities
$
(1,301
)
$
(2,500
)
$
(6,232
)
$
(19,914
)
Financing Activities
Proceeds (repayments) from long-term debt
$
1,238
$
(20,762
)
$
11,903
$
(7,666
)
Proceeds (repayments) from short-term debt
(1,756
)
—
5,404
—
Deferred financing costs
—
—
(20
)
—
Purchase of treasury stock
(5,658
)
(5,479
)
(33,022
)
(15,292
)
Proceeds from the exercise of stock options
—
—
—
—
Payment of dividends
(1,323
)
(1,237
)
(3,902
)
(3,574
)
Increase (decrease) in cash overdrafts
(3,775
)
—
1,926
—
Net cash provided by (used for) financing activities
$
(11,274
)
$
(27,478
)
$
(17,711
)
$
(26,532
)
Foreign currency exchange impact on cash
$
262
$
(3,037
)
$
242
$
(3,181
)
Increase/(decrease) in cash and cash equivalents
$
3,973
$
(2,397
)
$
7,025
$
(5,753
)
Cash and cash equivalents at beginning of period
25,496
27,856
22,444
31,212
Cash and cash equivalents at end of period
$
29,469
$
25,459
$
29,469
$
25,459
Non-GAAP Financial Measures
As a supplement to United States Generally Accepted Accounting
Principles ("GAAP"), the Company provides non-GAAP financial measures
such as free cash flow, operating income before provision for income
taxes ("EBIT"), operating net income, operating earnings per share
("EPS"), Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") (as adjusted), Adjusted EBITDA (as adjusted), adjusted
operating income and same-office revenue comparisons to illustrate the
Company's operational performance. These non-GAAP financial measures
exclude the impact of certain items and, therefore, have not been
calculated in accordance with GAAP. Pursuant to the requirements of
Regulation G, the Company has provided explanations regarding use by the
Company's management ("Management") and the usefulness of non-GAAP
financial measures, definitions of the non-GAAP financial measures and
reconciliations to the most directly comparable GAAP financial measures,
which are provided below.
Management uses these non-GAAP financial measures (a) to evaluate the
Company's historical and prospective financial performance as well as
its performance relative to its competitors, (b) to set internal sales
targets and associated operating budgets, (c) to allocate resources and
(d) to measure operational profitability. Management uses similar
non-GAAP measures as an important factor in determining variable
compensation for Management and its team members. Moreover, the Company
has historically reported these non-GAAP financial measures as a means
of providing consistent and comparable information with past reports of
financial results.
While Management believes these non-GAAP financial measures provide
useful supplemental information to investors, there are limitations
associated with the use of non-GAAP financial measures. The limitations
include (i) the non-GAAP financial measures are not prepared in
accordance with GAAP, are not reported by all of the Company's
competitors and may not be directly comparable to similarly-titled
measures of the Company's competitors due to potential differences in
the exact method of calculation, (ii) the non-GAAP financial measures
exclude certain non-cash amortization of intangible assets on
acquisitions, however, they do not specifically exclude the added
benefits of these costs, such as revenue and contributing operating
margin, (iii) the non-GAAP financial measures exclude the non-cash
change in fair value of the Company's interest-rate swaps which will
continue to impact the Company's earnings until the interest-rate swaps
are settled, (iv) the non-GAAP financial measures exclude the non-cash
goodwill impairment loss, (v) the non-GAAP financial measures exclude
costs, primarily cash costs, for restructuring incurred during the
periods reported in an attempt to right-size the organization and more
appropriately align the expense structure with anticipated revenues and
changing market demand for its solutions and services that will impact
future operating results, (vi) the non-GAAP financial measures exclude
the non-cash joint venture investment loss and (vii) there is no
assurance the excluded items in the non-GAAP financial measures will not
occur in the future. The Company compensates for these limitations by
using these non-GAAP financial measures as supplements to GAAP financial
measures and by reviewing the reconciliations of the non-GAAP financial
measures to their most comparable GAAP financial measures.
Non-GAAP financial measures are not in accordance with, or an
alternative for, GAAP. The Company's non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for comparable
GAAP financial measurements, and should be read only in conjunction with
the Company's consolidated financial statements prepared in accordance
with GAAP.
Free cash flow
Management believes that free cash flow, defined by the Company as cash
provided by (used for) operating activities less net capital
expenditures, plus proceeds from stock option exercises, plus or minus
foreign currency translation adjustments, is an important measurement of
liquidity as it represents the total cash available to the Company.
Management's reasons for exclusion of each item are explained in further
detail below.
Net capital expenditures The Company
believes net capital expenditures must be taken into account along with
cash provided by (used for) operating activities to more properly
reflect the actual cash available to the Company. Net capital
expenditures directly impact the availability of the Company's operating
cash. Net capital expenditures are comprised of capital expenditures and
capital disposals.
Foreign currency exchange impact on cash Due
to the size of the Company's international operations, and the ability
of the Company to utilize cash generated from foreign operations locally
without the need to convert such currencies to U.S. dollars on a regular
basis, the Company believes that it is appropriate to adjust its
operating cash flows to take into account the positive or negative
impact of such adjustments as such adjustment provides an appropriate
measure of the availability of the Company's operating cash on a
world-wide basis. A limitation of adjusting cash flows to account for
the foreign currency impact is that it may not provide an accurate
measure of cash available in U.S. dollars.
Proceeds from stock option exercises The
Company believes that proceeds from stock option exercises should be
added to cash provided by (used for) operating activities to more
accurately reflect the actual cash available to the Company. The Company
historically has demonstrated a recurring inflow of cash related to its
stock-based compensation plans and, since this cash is immediately
available to the Company, it directly impacts the availability of the
Company's operating cash. The amount of proceeds from stock option
exercises is dependent upon a number of variables, including the number
and exercise price of outstanding options and the trading price of the
Company's common stock. In addition, the timing of stock option
exercises is under the control of the individual option holder and is
not under the control of the Company. As a result, there can be no
assurance as to the timing or amount of any proceeds from stock option
exercises.
A reconciliation of cash provided by (used for) operating activities to
free cash flow is presented below:
3Q13
2Q13
3Q12
3QYTD13
3QYTD12
Net cash provided by (used for) operating activities
$
16,286
$
17,810
$
30,618
$
30,726
$
43,874
Net capital expenditures
(1,104
)
(1,003
)
(896
)
(3,871
)
(4,786
)
Foreign currency exchange impact on cash
262
170
(3,037
)
242
(3,181
)
Free cash flow before stock option exercises
$
15,444
$
16,977
$
26,685
$
27,097
$
35,907
Proceeds from the exercise of stock options
—
—
—
—
—
Free cash flow
$
15,444
$
16,977
$
26,685
$
27,097
$
35,907
Operating net income and operating earnings per share
Management believes that operating net income, defined by the Company as
net income (loss) plus provision (benefit) for income taxes and
reconciling items less operational income taxes, and operating EPS,
defined as operating net income divided by weighted average common
shares outstanding (diluted), provide investors additional important
information to enable them to assess, in the way Management assesses,
the Company's current and future operations. Reconciling items include
amortization of intangible assets on acquisitions, the change in fair
value of the interest-rate swaps, the goodwill impairment loss and the
joint venture investment loss, each of which are non-cash charges, and
restructuring, which is a cash charge. Management's reason for exclusion
of each item is explained in further detail below.
Amortization of intangible assets on acquisitions The
Company incurs non-cash amortization expense from intangible assets
related to various acquisitions it has made in recent years. Management
excludes these expenses and their related tax impact for the purpose of
calculating non-GAAP financial measures when it evaluates the continuing
operational performance of the Company because these costs are fixed at
the time of an acquisition, are then amortized over a period of several
years after the acquisition and generally cannot be changed or
influenced by Management after the acquisition.
Change in fair value of the interest-rate swaps To
mitigate the risk of interest-rate fluctuations associated with the
Company's variable rate debt, the Company enters into interest-rate
swaps (“interest-rate swaps”) that do not qualify as a cash flow hedge.
Thus, the Company records the change in fair value of the interest-rate
swaps as an asset/liability within the Company's Condensed Consolidated
Balance Sheets with the offset to Interest expense (income) within the
Company's Condensed Consolidated Statements of Income. Management
excludes this non-cash expense and the related tax impact for the
purpose of calculating non-GAAP financial measures when it evaluates the
continuing operational performance of the Company because these costs
generally cannot be changed or influenced by Management.
Goodwill impairment The Company
incurred a loss during the third quarter of Fiscal 2012 due to goodwill
impairment in its North America and Europe reporting segments.
Management excludes these expenses and their related tax impact for the
purpose of calculating non-GAAP financial measures when it evaluates the
continuing operational performance of the Company because these costs
are generally non-recurring and cannot be changed or influenced by
Management.
Restructuring The Company believes
that incurring costs for employee severance and facility consolidations
in the current period(s) in an attempt to right-size the organization
and more appropriately align the expense structure with anticipated
revenues and changing market demand for its solutions and services will
result in a long-term positive impact on financial performance in the
future. Restructuring costs are presented in accordance with GAAP in the
Company's Condensed Consolidated Statements of Operations. However, due
to the amount of additional costs incurred during a single or possibly
successive periods, Management believes that exclusion of these costs
and their related tax impact provides a more accurate reflection of the
Company's ongoing financial performance.
Joint venture investment loss The
Company incurred a loss during the third quarter of Fiscal 2013 due to
the expected divestiture of our non-controlling interest in Genesis
Networks Integration Services, LLC, a minority business enterprise joint
venture company which was formed in conjunction with Genesis Networks
Enterprises, LLC. Management excludes these expenses and their related
tax impact for the purpose of calculating non-GAAP financial measures
when it evaluates the continuing operational performance of the Company
because these costs are generally non-recurring and cannot be changed or
influenced by Management.
A reconciliation of net income (loss) to operating net income is
presented below:
3Q13
2Q13
3Q12
3QYTD13
3QYTD12
Net income (loss)
$
8,518
$
7,133
$
(283,443
)
$
21,583
$
(258,976
)
Provision (benefit) for income taxes
5,222
4,370
(14,101
)
13,229
(1,655
)
Income (loss) before provision (benefit) for income taxes
$
13,740
$
11,503
$
(297,544
)
$
34,812
$
(260,631
)
Reconciling Items
Amortization of intangible assets on acquisitions
$
3,472
$
3,468
$
3,238
$
10,398
$
9,450
Change in fair value of interest-rate swaps
(317
)
549
715
878
(801
)
Goodwill impairment loss
—
—
317,797
—
317,797
Restructuring expense
1,442
2,051
—
5,473
—
Joint venture investment loss
$
2,670
$
—
$
—
$
2,670
$
—
Total pre-tax reconciling items
$
7,267
$
6,068
$
321,750
$
19,419
$
326,446
Operating EBIT
$
21,007
$
17,571
$
24,206
$
54,231
$
65,815
Operational effective tax rate
38.0
%
38.0
%
38.0
%
38.0
%
35.3
%
Operational income taxes *
$
7,978
$
6,676
$
9,198
$
20,603
$
23,228
Operating net income
$
13,029
$
10,895
$
15,008
$
33,628
$
42,587
* The effective tax rate utilized to determine Operational income taxes
was the Company's operational effective tax rate that excludes discreet
tax items.
A reconciliation of Diluted EPS to Operating EPS is presented below:
3Q13
2Q13
3Q12
3QYTD13
3QYTD12
Diluted EPS
$
0.52
$
0.43
$
(16.12
)
$
1.28
$
(14.54
)
EPS impact *
0.27
0.22
16.97
0.71
16.92
Operating EPS
$
0.79
$
0.65
$
0.85
$
1.99
$
2.38
* EPS impact is the result of excluding the provision (benefit) for
income taxes and the reconciling items and utilizing an operational
effective tax rate.
EBITDA and Adjusted EBITDA
Management believes that EBITDA (as adjusted), defined as Net income
(loss) plus provision (benefit) for income taxes, interest,
depreciation, amortization, the goodwill impairment loss and the joint
venture investment loss, is a widely-accepted measure of profitability
that may be used to measure the Company's ability to service its debt.
Adjusted EBITDA (as adjusted), defined as EBITDA plus stock compensation
expense, may also be used to measure the Company's ability to service
its debt. Stock compensation is an integral part of ongoing operations
since it is considered similar to other types of compensation to
employees. However, Management believes that varying levels of stock
compensation expense could result in misleading period-over-period
comparisons and is providing an adjusted disclosure which excludes stock
compensation expense.
A reconciliation of Net income (loss) to EBITDA (as adjusted) and
Adjusted EBITDA (as adjusted) is presented below:
3Q13
2Q13
3Q12
3QYTD13
3QYTD12
Net income (loss)
$
8,518
$
7,133
$
(283,443
)
$
21,583
$
(258,976
)
Provision (benefit) for income taxes
5,222
4,370
(14,101
)
13,229
(1,655
)
Interest expense (income), net
1,133
1,893
1,856
4,956
3,690
Intangibles amortization and depreciation
4,777
4,821
4,547
14,427
13,581
Goodwill impairment loss
—
—
317,797
—
317,797
Joint venture investment loss
2,670
—
—
2,670
—
EBITDA (as adjusted)
$
22,320
$
18,217
$
26,656
$
56,865
$
74,437
Stock compensation expense
1,791
1,735
2,087
6,397
7,505
Adjusted EBITDA (as adjusted)
$
24,111
$
19,952
$
28,743
$
63,262
$
81,942
Supplemental Information The
following supplemental information, including geographical segment
results, service type results, same-office revenue comparisons and
significant balance sheet ratios and other information is being provided
for comparisons of reported results for the third quarter of Fiscal
2013, second quarter of Fiscal 2013, third quarter of Fiscal 2012 and
third quarter year-to-date Fiscal 2013 and 2012. All dollar amounts are
in thousands unless noted otherwise.
Geographical Segment Results Management is presented with
and reviews revenues, Operating income (loss) and Adjusted operating
income by geographical segment. Adjusted operating income is defined by
the Company as Operating income (loss) plus reconciling items.
Reconciling items include amortization of intangible assets on
acquisitions, goodwill impairment loss and restructuring. See above for
additional details provided by Management regarding non-GAAP financial
measures. Revenues, Operating income (loss) and Adjusted operating
income for North America, Europe and All Other are presented below:
3Q13
2Q13
3Q12
3QYTD13
3QYTD12
Revenues
North America
$
215,650
$
227,534
$
239,056
$
658,452
$
723,850
Europe
26,488
22,365
27,179
72,495
80,016
All Other
9,951
10,262
9,704
29,140
27,670
Total
$
252,089
$
260,161
$
275,939
$
760,087
$
831,536
Operating income (loss)
North America
$
14,900
$
11,810
$
(259,494
)
$
36,271
$
(227,192
)
% of North America revenues
6.9
%
5.2
%
(108.5
)%
5.5
%
(31.4
)%
Europe
$
1,848
$
900
$
(37,298
)
$
4,009
$
(32,181
)
% of Europe revenues
7.0
%
4.0
%
(137.2
)%
5.5
%
(40.2
)%
All Other
$
964
$
1,274
$
1,415
$
3,276
$
3,308
% of All Other revenues
9.7
%
12.4
%
14.6
%
11.2
%
12.0
%
Total
$
17,712
$
13,984
$
(295,377
)
$
43,556
$
(256,065
)
% of Total revenues
7.0
%
5.4
%
(107.0
)%
5.7
%
(30.8
)%
Reconciling items (pre-tax)
North America
$
4,386
$
5,124
$
280,370
$
14,862
$
286,582
Europe
523
395
40,665
991
40,665
All Other
5
—
—
18
—
Total
$
4,914
$
5,519
$
321,035
$
15,871
$
327,247
Adjusted operating income
North America
$
19,286
$
16,934
$
20,876
$
51,133
$
59,390
% of North America revenues
8.9
%
7.4
%
8.7
%
7.8
%
8.2
%
Europe
$
2,371
$
1,295
$
3,367
$
5,000
$
8,484
% of Europe revenues
9.0
%
5.8
%
12.4
%
6.9
%
10.6
%
All Other
$
969
$
1,274
$
1,415
$
3,294
$
3,308
% of All Other revenues
9.7
%
12.4
%
14.6
%
11.3
%
12.0
%
Total
$
22,626
$
19,503
$
25,658
$
59,427
$
71,182
% of Total revenues
9.0
%
7.5
%
9.3
%
7.8
%
8.6
%
Service Type Results Management is presented with and
reviews Revenues and Gross profit for Data Infrastructure, Voice
Communications and Technology Products which are presented below:
3Q13
2Q13
3Q12
3QYTD13
3QYTD12
Revenues
Data Infrastructure
$
62,664
$
61,747
$
58,326
$
186,185
$
186,998
Voice Communications
142,571
151,924
166,234
436,410
495,111
Technology Products
46,854
46,490
51,379
137,492
149,427
Total
$
252,089
$
260,161
$
275,939
$
760,087
$
831,536
Gross profit
Data Infrastructure
$
16,556
$
16,291
$
14,550
$
48,432
$
46,110
% of Data Infrastructure revenues
26.4
%
26.4
%
24.9
%
26.0
%
24.7
%
Voice Communications
$
45,057
$
43,349
$
51,472
$
132,148
$
151,238
% of Voice Communications revenues
31.6
%
28.5
%
31.0
%
30.3
%
30.5
%
Technology Products
$
20,119
$
20,414
$
22,291
$
60,480
$
66,412
% of Technology Products revenues
42.9
%
43.9
%
43.4
%
44.0
%
44.4
%
Total
$
81,732
$
80,054
$
88,313
$
241,060
$
263,760
% of Total revenues
32.4
%
30.8
%
32.0
%
31.7
%
31.7
%
Same-office revenue comparisons Management is presented with
and reviews revenues on a same-office basis which excludes the effects
of revenues from acquisitions. While the information provided below is
presented on a consolidated basis, the revenue from offices added as
shown below relates to North America Voice Communications and North
America Data Infrastructure. Same-office revenue for the Company's North
America Voice Communications and North America Data Infrastructure
segments can be determined by excluding the revenues from offices added
since April 1, 2011 (for comparison of 3Q13 to 3Q12 and 3QYTD13 to
3QYTD12) or July 1, 2012 (for comparison of 3Q13 to 2Q13) as shown below.
Information on quarterly revenues on a same-office basis compared to the
same period last year is presented below:
3Q13
3Q12
% Change
Reported revenues
$
252,089
$
275,939
(9
)%
Less revenue from Data Infrastructure offices added since 4/1/11
(1Q12)
(7,594
)
—
Less revenue from Voice Communications offices added since 4/1/11
(1Q12)
(7,697
)
(12,379
)
Reported revenues on same-office basis
$
236,798
$
263,560
(10
)%
Foreign currency impact - Data Infrastructure
(3
)
—
Foreign currency impact - Voice Communications
(149
)
—
Foreign currency impact - Technology Products
284
—
Revenues on same-office basis (excluding foreign currency impact)
$
236,930
$
263,560
(10
)%
Information on quarterly revenues on a same-office basis compared to the
sequential quarter is presented below:
3Q13
2Q13
% Change
Reported revenues
$
252,089
$
260,161
(3
)%
Less revenue from Data Infrastructure offices added since 7/1/12
(2Q13)
—
—
Less revenue from Voice Communications offices added since 7/1/12
(2Q13)
—
—
Reported revenues on same-office basis
$
252,089
$
260,161
(3
)%
Foreign currency impact - Data Infrastructure
(257
)
—
Foreign currency impact - Voice Communications
(20
)
—
Foreign currency impact - Technology Products
(448
)
—
Revenues on same-office basis (excluding foreign currency impact)
$
251,364
$
260,161
(3
)%
Information on year-to-date revenues on a same-office basis compared to
the same period last year is presented below:
3QYTD13
3QYTD12
% Change
Reported revenues
$
760,087
$
831,536
(9
)%
Less revenue from Data Infrastructure offices added since 4/1/11
(1Q12)
(24,172
)
—
Less revenue from Voice Communications offices added since 4/1/11
(1Q12)
(20,877
)
(20,432
)
Reported revenues on same-office basis
$
715,038
$
811,104
(12
)%
Foreign currency impact - Data Infrastructure
1,337
—
Foreign currency impact - Voice Communications
114
—
Foreign currency impact - Technology Products
3,396
—
Revenues on same-office basis (excluding foreign currency impact)
$
719,885
$
811,104
(11
)%
Significant Balance Sheet ratios and Other Information Information
on certain balance sheet ratios, backlog and headcount is presented
below:
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, He...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct ...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corp...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to compani...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two do...