LINCOLNSHIRE, Ill., April 27, 2012 /PRNewswire/ -- Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2012 first quarter diluted earnings per share of $0.58, up 7.4% from $0.54 from continuing operations for the first quarter of 2011. Net sales for the quarter ended March 31, 2012, increased 2.8% to $243,875,000 from $237,301,000 for the first quarter of 2011.
Summary Financial Performance (Unaudited) ---------------------------------------- 1Q12 1Q11 Change ---- ---- ------ Net sales (in 000s) $243,875 $237,301 2.8% Gross margin (%) 49.1 50.6 -1.5 pts. Operating margin (%) 17.2 18.7 -1.5 pts. Income from continuing $30,164 $30,128 0.1% operations (in 000s) Income from discontinued -- $31,506 NM operations, net of tax (in 000s) Net income (in 000s) $30,164 $61,634 -51.1% Diluted earnings per share: Income from continuing operations $0.58 $0.54 7.4% Income from discontinued operations -- $0.56 -100.0% Net income $0.58 $1.10 -47.3% ---------- ----- ----- -----
"Strategically-driven activities to gain share, penetrate targeted industries more deeply and extend geographic reach led to sales growth in all geographic regions," stated Anders Gustafsson, Zebra's chief executive officer. "Our formidable product line, extensive global channel relationships and business diversity enabled us to win more business with customers in a broad range of industries. In a challenged business environment, we matched excellent execution with effective control over operating expenses. We continued to invest in those areas critical to Zebra's long-term success. This year, we are on target to deliver a high number of innovative new printer products. These and other solutions are enabling our customers to gain greater visibility into assets, transactions and people across their value chains. We remain confident in Zebra's future and our ability to accelerate growth and deliver higher returns for our shareholders."
As of March 31, 2012, Zebra had $362,244,000 in cash and investments, and no long-term debt. Net inventories were $126,119,000, and net accounts receivable were $157,114,000.
Discussion and Analysis
-- Net sales for the first quarter of 2012 included year-over-year growth in all four of the company's geographic regions. Sales growth of supplies and card printers were notably strong. The impact of movements in foreign exchange, net of hedges, was not material to sales growth. -- Gross margin of 49.1%, versus 50.6% a year ago, primarily reflects movements in product mix. -- Operating expense growth of 2.9% includes a modest increase in administrative expenses, as well as higher sales and marketing expenses which were principally related to activities supporting the company's geographic expansion and market development activities. This growth was partially offset by a decline in engineering expenses. Operating profit margin decreased from 18.7% to 17.2%.
Stock Purchase Update
During the first quarter of 2012, Zebra repurchased 264,567 shares of Zebra Technologies Corporation Class A Common Stock. At March 31, 2012, the company had 3,231,632 shares remaining in its stock buyback authorization, and 51,908,000 shares of common stock were outstanding.
Second Quarter Outlook
Zebra announced its financial forecast for the second quarter of 2012. Net sales are expected within a range of $250,000,000 to $260,000,000. Diluted earnings per share are expected within a range of $0.58 to $0.63.
Conference Call Notification
Investors are invited to listen to a live webcast of Zebra's conference call discussing the company's financial results for the first quarter of 2012. The conference call will be held at 11:00 AM Eastern Time today. To listen to the call, visit the company's website at http://www.zebra.com.
Forward-looking Statement
This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company's financial forecast for the second quarter of 2012 stated in the paragraph above captioned "Second Quarter Outlook." Actual results may differ from those expressed or implied in the company's forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.
These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra's hardware and software products and competitors' product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit, capital markets volatility, may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra's ability to control manufacturing and operating costs. Because of a large investment portfolio, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results because of the large percentage of our international sales. The outcome of litigation in which Zebra may be involved is another factor. These and other factors could have an adverse effect on Zebra's sales, gross profit margins and results of operations and increase the volatility of our financial results. When used in this release and documents referenced, the words "anticipate," "believe," "estimate," and "expect" and similar expressions, as they relate to the company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra's Form 10-K for the year ended December 31, 2011.
About Zebra Technologies
A global leader respected for innovaion and reliability, Zebra Technologies Corporation (NASDAQ: ZBRA) provides enabling technologies that allow customers to take smarter actions. Our extensive portfolio of bar code, receipt, card, kiosk and RFID printers and supplies, as well as real-time location solutions give a digital voice to assets, people and transactions that provides greater visibility into mission-critical information. For more information about Zebra's solutions, visit http://www.zebra.com.
Contact: Investors: Media: ---------- ------ Douglas A. Fox, CFA Kerry Kelly-Guiliano Vice President, Investor Relations Vice President, Strategic Communications and Treasurer F T I Consulting +1 847 793 6735 +1 617 747 3603 dfox@zebra.com kerry.guiliano@fticonsulting.com
ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands) --------------------- March 31, December 31, 2012 2011 ---- ---- ASSETS (Unaudited) Current assets: Cash and cash equivalents $41,943 $36,418 Investments and marketable securities 175,169 182,398 Accounts receivable, net 157,114 155,230 Receivable from buyer 13,790 27,580 Inventories, net 126,119 133,288 Deferred income taxes 14,194 13,931 Income tax receivable 6,917 13,111 Prepaid expenses and other current assets 15,036 22,917 Total current assets 550,282 584,873 ------- ------- Property and equipment at cost, less accumulated depreciation and amortization 101,985 97,822 Long-term deferred income taxes 11,995 11,866 Goodwill 79,703 79,703 Other intangibles, net 11,897 12,667 Long-term investments and marketable securities 145,132 107,879 Other assets 4,092 4,196 ----- ----- Total assets $905,086 $899,006 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $33,019 $33,273 Accrued liabilities 47,769 64,612 Deferred revenue 12,065 11,089 Total current liabilities 92,853 108,974 Deferred rent 1,496 1,592 Other long-term liabilities 11,674 11,515 ------ ------ Total liabilities 106,023 122,081 ------- ======= Stockholders' equity: Preferred Stock -- -- Class A Common Stock 722 722 Additional paid-in capital 134,472 131,422 Treasury stock (603,705) (596,622) Retained earnings 1,275,780 1,245,616 Accumulated other comprehensive loss (8,206) (4,213) ------ ------ Total stockholders' equity 799,063 776,925 ------- ------- Total liabilities and stockholders' equity $905,086 $899,006 ======== ========
ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in thousands, except per share data) (Unaudited) Three Months Ended ------------------ March 31, 2012 April 2, 2011 -------------- ------------- Net sales: Net sales of tangible products $232,476 $226,120 Revenue from services and software 11,399 11,181 ------ ------ Total net sales 243,875 237,301 ------- ------- Cost of sales Cost of sales of tangible products 119,053 110,781 Cost of services and software 4,959 6,522 ----- ----- Total cost of sales 124,012 117,303 ------- ------- Gross profit 119,863 119,998 ------- ------- Operating expenses: Selling and marketing 32,114 28,528 Research and development 20,419 21,681 General and administrative 24,551 22,706 Amortization of intangible assets 770 835 Exit and restructuring costs -- 1,886 Total operating expenses 77,854 75,636 ------ ------ Operating income 42,009 44,362 ------ ------ Other income (expense): Investment income 592 560 Foreign exchange loss (342) (294) Other, net (364) (254) ---- ---- Total other income (expense) (114) 12 ---- --- Income from continuing operations 41,895 44,374 before income taxes Income taxes 11,731 14,246 ------ ------ Income from continuing operations 30,164 30,128 Income from discontinued operations, net of tax -- 31,506 Net income $30,164 $61,634 ======= ======= Basic earnings per share: Income from continuing operations $0.58 $0.54 Income from discontinued operations -- 0.57 --- ---- Net income $0.58 $1.11 ===== ===== Diluted earnings per share: Income from continuing operations $0.58 $0.54 Income from discontinued operations -- 0.56 --- ---- Net income $0.58 $1.10 ===== ===== Basic weighted average shares outstanding 51,998 55,353 Diluted weighted average and equivalent shares outstanding 52,301 55,774
ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) (Unaudited) Three Months Ended ------------------ March 31, 2012 April 2, 2011 -------------- ------------- Net income $30,164 $61,634 Other comprehensive income (loss): Unrealized losses on hedging transactions, net of income taxes (4,646) (2,756) Unrealized holding gains (losses) on investments, net of income taxes 570 (14) Foreign currency translation adjustment 83 (553) Comprehensive income $26,171 $58,311 ======= =======
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Three Months Ended ------------------ March 31, 2012 April 2, 2011 -------------- ------------- Cash flows from operating activities: Net income $30,164 $61,634 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 5,959 5,932 Equity-based compensation 3,800 4,488 Excess tax benefit from equity-based compensation (66) (645) Loss on sale of property and equipment 83 9 Gain on sale of business -- (67,213) Deferred income taxes (391) 2,540 Changes in assets and liabilities: Accounts receivable, net (1,862) 12,563 Inventories, net 7,169 (7,136) Other assets 9,395 (1,690) Accounts payable (3,378) (7,150) Accrued liabilities (16,881) (17,120) Deferred revenue 1,151 (15,749) Income taxes 6,135 27,732 Other operating activities (4,725) (3,364) Net cash provided by (used in) operating activities 36,553 (5,169) ------ ------ Cash flows from investing activities: Purchases of property and equipment (7,654) (3,922) Proceeds from the sale of business 13,790 164,008 Purchases of investments and marketable securities (132,390) (382,410) Maturities of investments and marketable securities 81,189 209,509 Proceeds from sales of investments and marketable securities 21,748 88,304 Net cash provided by (used in) investing activities (23,317) 75,489 ------- ------ Cash flows from financing activities: Purchase of treasury stock (9,775) (41,567) Proceeds from exercise of stock options and stock purchase plan purchases 1,998 2,757 Excess tax benefit from equity-based compensation 66 645 Net cash used in financing activities (7,711) (38,165) ------ ------- Effect of exchange rate changes on cash -- 336 --- --- Net increase in cash and cash equivalents 5,525 32,491 Cash balance of discontinued operations at beginning of period -- 1,301 Less: Cash balance of discontinued operations at end of period -- 282 Cash and cash equivalents at beginning of period 36,418 46,175 ------ ------ Cash and cash equivalents at end of period $41,943 $79,685 ======= ======= Supplemental disclosures of cash flow information: Income taxes paid $7,956 $8,958
ZEBRA TECHNOLOGIES CORPORATION SUPPLEMENTAL SALES INFORMATION (Amounts in thousands) (Unaudited) SALES BY PRODUCT CATEGORY Three Months Ended ------------------ March 31, April 2, Percent Percent of Percent of Product Category 2012 2011 Change Net Sales - 2012 Net Sales - 2011 ---------------- ---- ---- ------ ---------------- ---------------- Hardware $181,196 $180,136 0.6 74.3 75.9 Supplies 49,962 44,635 11.9 20.5 18.8 Service and software 11,399 11,181 1.9 4.7 4.7 ------ ------ --- --- Subtotal products 242,557 235,952 2.8 99.5 99.4 Shipping and handling 1,318 1,349 (2.3) 0.5 0.6 Total net sales $243,875 $237,301 2.8 100.0 100.0 ======== ======== ===== ===== SALES BY GEOGRAPHIC REGION -------------------------- Three Months Ended ------------------ March 31, April 2, Percent Percent of Percent of Geographic Region 2012 2011 Change Net Sales - 2012 Net Sales - 2011 ----------------- ---- ---- ------ ---------------- ---------------- Europe, Middle East and Africa $86,121 $84,230 2.2 35.3 35.5 Latin America 22,287 20,104 10.9 9.1 8.5 Asia-Pacific 33,148 32,495 2.0 13.6 13.7 ------ ------ ---- ---- Total International 141,556 136,829 3.5 58.0 57.7 North America 102,319 100,472 1.8 42.0 42.3 ------- ------- ---- ---- Total net sales $243,875 $237,301 2.8 100.0 100.0 ======== ======== ===== =====
ZEBRA TECHNOLOGIES CORPORATION PRINTER UNITS and AVERAGE UNIT PRICES (Unaudited) Three Months Ended ------------------ March 31, April 2, Percent 2012 2011 Change ---- ---- ------ Total printers shipped 297,669 284,177 4.7 Average selling price of printers shipped $503 $524 (4.0)
SOURCE Zebra Technologies Corporation