Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Zebra Technologies Announces Fourth-Quarter and Full-Year 2023 Results

Fourth-Quarter Financial Highlights

  • Net sales of $1,009 million; year-over-year decrease of 32.9%
  • Net income of $17 million and net income per diluted share of $0.31, year-over-year decrease of 90.9% and decrease of 91.3%, respectively
  • Non-GAAP diluted EPS decreased 64.0% year-over-year to $1.71
  • Adjusted EBITDA decreased 54.1% year-over-year to $155 million
  • Expanded cost reduction plans now expected to drive $120 million annualized net expense savings, an increase from $100 million

Zebra Technologies Corporation (NASDAQ: ZBRA), an innovator at the edge of the enterprise with solutions and partners that enable businesses to gain a performance edge, today announced results for the fourth quarter and full year ended December 31, 2023.

“As expected, our fourth quarter results continued to be impacted by broad-based softness across our end markets and distributor destocking. We realized sequential improvement in sales, profitability and free cash flow through demand improvement, restructuring actions and inventory management initiatives,” said Bill Burns, Chief Executive Officer of Zebra Technologies. “Entering 2024, distributor inventories are aligned with the current demand environment. Although we are seeing some improvement in order activity, we are not yet seeing signs of a broad market recovery. We continue to be well positioned to address our customers’ biggest challenges and return to growth in 2024."

$ in millions, except per share amounts

4Q23

4Q22

Change

 

FY23

FY22

Change

Select reported measures:

 

 

 

 

 

 

 

Net sales

$

1,009

 

$

1,503

 

(32.9

%)

 

$

4,584

 

$

5,781

 

(20.7

%)

Gross profit

 

448

 

 

685

 

(34.6

%)

 

 

2,123

 

 

2,624

 

(19.1

%)

Gross margin

 

44.4

%

 

45.6

%

(120) bps

 

 

46.3

%

 

45.4

%

90 bps

Net income

 

17

 

 

186

 

(90.9

%)

 

 

296

 

 

463

 

(36.1

%)

Net income margin

 

1.7

%

 

12.4

%

(1070) bps

 

 

6.5

%

 

8.0

%

(150) bps

Net income per diluted share

$

0.31

 

$

3.57

 

(91.3

%)

 

$

5.72

 

$

8.80

 

(35.0

%)

 

 

 

 

 

 

 

 

Select Non-GAAP measures:

 

 

 

 

 

 

 

Adjusted net sales

$

1,009

 

$

1,503

 

(32.9

%)

 

$

4,584

 

$

5,781

 

(20.7

%)

Organic net sales decline

 

 

(33.1

%)

 

 

 

(19.8

%)

Adjusted gross profit

 

450

 

 

686

 

(34.4

%)

 

 

2,129

 

 

2,630

 

(19.0

%)

Adjusted gross margin

 

44.6

%

 

45.6

%

(100) bps

 

 

46.4

%

 

45.5

%

90 bps

Adjusted EBITDA

 

155

 

 

338

 

(54.1

%)

 

 

824

 

 

1,235

 

(33.3

%)

Adjusted EBITDA margin

 

15.4

%

 

22.5

%

(710) bps

 

 

18.0

%

 

21.4

%

(340) bps

Non-GAAP net income

$

89

 

$

246

 

(63.8

%)

 

$

508

 

$

918

 

(44.7

%)

Non-GAAP earnings per diluted share

$

1.71

 

$

4.75

 

(64.0

%)

 

$

9.82

 

$

17.47

 

(43.8

%)

Net sales were $1,009 million in the fourth quarter of 2023 compared to $1,503 million in the prior year. Net sales in the Enterprise Visibility & Mobility ("EVM") segment were $663 million in the fourth quarter of 2023 compared to $986 million in the prior year. Asset Intelligence & Tracking ("AIT") segment net sales were $346 million in the fourth quarter of 2023 compared to $517 million in the prior year. Consolidated organic net sales for the fourth quarter decreased 33.1%. Fourth-quarter year-over-year organic net sales decreased by 32.7% in the EVM segment and decreased by 33.6% in the AIT segment.

Fourth-quarter 2023 gross profit was $448 million compared to $685 million in the prior year. Gross margin decreased to 44.4% for the fourth quarter of 2023 compared to 45.6% in the prior year. The decrease was primarily due to volume deleveraging and a $10 million charge associated with the renegotiation of an electronic component supplier agreement; partially offset by lower premium supply chain costs and improved services and software gross margins. Adjusted gross margin was 44.6% in the fourth quarter of 2023, compared to 45.6% in the prior year.

Operating expenses decreased in the fourth quarter of 2023 to $374 million from $425 million in the prior year. Operating expenses decreased primarily due to cost reductions and lower employee incentive compensation associated with financial performance, partially offset by increased exit and restructuring costs. Adjusted operating expenses decreased in the fourth quarter of 2023 to $312 million from $364 million in the prior year.

Net income for the fourth quarter of 2023 was $17 million, or $0.31 per diluted share, compared to net income of $186 million, or $3.57 per diluted share, in the prior year. Non-GAAP net income for the fourth quarter of 2023 decreased to $89 million, or $1.71 per diluted share, compared to $246 million, or $4.75 per diluted share, in the prior year.

Adjusted EBITDA for the fourth quarter of 2023 decreased to $155 million, or 15.4% of adjusted net sales, compared to $338 million, or 22.5% of adjusted net sales, in the prior year due to lower gross profit and higher operating expense as a percentage of revenue.

Balance Sheet and Cash Flow

As of December 31, 2023, the company had cash and cash equivalents of $137 million and total debt of $2,226 million.

For the full year 2023, net cash used in operating activities was $4 million and the Company made capital expenditures of $87 million, resulting in negative free cash flow of $91 million. The Company made share repurchases under its existing authorization of $52 million and had net debt proceeds of $195 million.

Cost Initiatives

As previously announced, the Company is executing on the 2022 Productivity Plan and the Voluntary Retirement Plan to generate cost efficiencies. Together, these Exit and Restructuring plans are expected to generate approximately $120 million of net annualized cost savings, an increase from $100 million, and were mostly complete entering 2024. In 2023, we realized approximately $50 million of operating expense savings (majority in the second half of 2023) and expect to realize approximately $60 million of incremental savings in 2024, with remaining savings realized into 2025.

The total charges associated with the Exit and Restructuring plans are now expected to be approximately $130 million, an increase from $105 million. We have incurred total charges of $110 million through year-end 2023, with the remaining charges expected to be substantially complete by mid-2024.

Outlook

First Quarter 2024

The company expects net sales to decline between 17% and 20% compared to the first quarter of 2023. This expectation includes an approximately 50 basis point favorable impact from foreign currency translation.

Adjusted EBITDA margin for the first quarter of 2024 is expected to be approximately 18%. Non-GAAP diluted earnings per share are expected to be in the range of $2.30 to $2.60. This assumes an adjusted effective tax rate of approximately 16%.

Full Year 2024

The Company expects net sales to be in the range of a 1% decline and 3% growth compared to 2023. This expectation assumes a negligible impact from foreign currency translation.

Adjusted EBITDA margin is expected to be approximately 19%.

Free cash flow is expected to be at least $550 million inclusive of the final $45 million payment from the previously announced settlement.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of the most directly comparable forward-looking GAAP financial measure as discussed under the "Forward-Looking Statements" caption below. This would include items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Conference Call Notification

Investors are invited to listen to a live webcast of Zebra’s conference call regarding the company’s financial results. The conference call will be held today at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast, visit the investor relations section of the company’s website at investors.zebra.com.

About Zebra

Zebra (NASDAQ: ZBRA) helps organizations monitor, anticipate, and accelerate workflows by empowering their frontline and ensuring that everyone and everything is visible, connected and fully optimized. Our award-winning portfolio spans software to innovations in robotics, machine vision, automation and digital decisioning, all backed by a +50-year legacy in scanning, track-and-trace and mobile computing solutions. With an ecosystem of 10,000 partners across more than 100 countries, Zebra's customers include over 80% of the Fortune 500. Newsweek recently recognized Zebra as one of America's Most Loved Workplaces and Greatest Workplaces for Diversity, and we are on Fast Company's list of the Best Workplaces for Innovators. Learn more at www.zebra.com or sign up for news alerts. Follow Zebra’s Your Edge blog, LinkedIn, X and Facebook, and check out our Story Hub: Zebra Perspectives.

Forward-Looking Statements

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 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 offerings and competitors' offerings, and the potential effects of emerging technologies and changes in customer requirements. The effect of global market conditions, and the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, natural disasters, man-made disasters, public health issues (including pandemics), and cybersecurity incidents may have negative effects on Zebra's business and results of operations. Zebra's ability to purchase sufficient materials, parts, and components, and ability to provide services, software and products to meet customer demand could negatively impact Zebra's results of operations and customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions may also have an adverse impact on results. Foreign exchange rates, customs duties and trade policies may have an adverse effect on financial results because of the large percentage of Zebra's international sales. The impacts of changes in foreign and domestic governmental policies, regulations, or laws, as well as the outcome of litigation or tax matters in which Zebra may be involved are other factors that could adversely affect Zebra's business and results of operations. The success of integrating acquisitions could also adversely affect profitability, reported results and the company’s competitive position in its industry. 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 Zebra's financial results. When used in this release and documents referenced, the words “anticipate,” “believe,” “outlook,” 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 certain risks, uncertainties and other factors that could adversely affect the company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission, including the company’s most recent Form 10-K and Form 10-Q.

Use of Non-GAAP Financial Information

This press release contains certain Non-GAAP financial measures, consisting of “adjusted net sales,” “adjusted gross profit,” “adjusted gross margin,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted EBITDA % of adjusted net sales,” “Non-GAAP net income,” “Non-GAAP earnings per share,” “Non-GAAP diluted earnings per share,” “free cash flow,” “organic net sales,” “organic net sales decline,” and “adjusted operating expenses.” Management presents these measures to focus on the on-going operations and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables and accompanying disclosures at the end of this press release for more detailed information regarding non-GAAP financial measures herein, including the items reflected in adjusted net earnings calculations. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Outlook” above) where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

As a global company, Zebra's operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the company transacts change in value over time compared to the U.S. dollar; accordingly, the company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the company’s businesses performed excluding the impact of foreign currency exchange rate fluctuations. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating current period results at the currency exchange rates used in the comparable period in the prior year, rather than the exchange rates in effect during the current period. In addition, the company excludes the impact of its foreign currency hedging program in the prior year periods. The company believes these measures should be considered a supplement to and not in lieu of the company’s performance measures calculated in accordance with GAAP.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

 

 

December 31,

 

2023

 

2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

137

 

 

$

105

 

Accounts receivable, net of allowances for doubtful accounts of $1 million each as of December 31, 2023 and 2022

 

521

 

 

 

768

 

Inventories, net

 

804

 

 

 

860

 

Income tax receivable

 

63

 

 

 

26

 

Prepaid expenses and other current assets

 

147

 

 

 

124

 

Total Current assets

 

1,672

 

 

 

1,883

 

Property, plant and equipment, net

 

309

 

 

 

278

 

Right-of-use lease assets

 

169

 

 

 

156

 

Goodwill

 

3,895

 

 

 

3,899

 

Other intangibles, net

 

527

 

 

 

630

 

Deferred income taxes

 

438

 

 

 

407

 

Other long-term assets

 

296

 

 

 

276

 

Total Assets

$

7,306

 

 

$

7,529

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

173

 

 

$

214

 

Accounts payable

 

456

 

 

 

811

 

Accrued liabilities

 

504

 

 

 

744

 

Deferred revenue

 

458

 

 

 

425

 

Income taxes payable

 

7

 

 

 

138

 

Total Current liabilities

 

1,598

 

 

 

2,332

 

Long-term debt

 

2,047

 

 

 

1,809

 

Long-term lease liabilities

 

152

 

 

 

139

 

Deferred income taxes

 

67

 

 

 

75

 

Long-term deferred revenue

 

312

 

 

 

333

 

Other long-term liabilities

 

94

 

 

 

108

 

Total Liabilities

 

4,270

 

 

 

4,796

 

Stockholders’ Equity:

 

 

 

Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued

 

 

 

 

 

Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares

 

1

 

 

 

1

 

Additional paid-in capital

 

615

 

 

 

561

 

Treasury stock at cost, 20,772,995 and 20,700,357 shares as of December 31, 2023 and 2022, respectively

 

(1,858

)

 

 

(1,799

)

Retained earnings

 

4,332

 

 

 

4,036

 

Accumulated other comprehensive loss

 

(54

)

 

 

(66

)

Total Stockholders’ Equity

 

3,036

 

 

 

2,733

 

Total Liabilities and Stockholders’ Equity

$

7,306

 

 

$

7,529

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

 

 

Three Months Ended

 

Twelve Months Ended

 

(Unaudited)

 

 

 

 

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

Net sales:

 

 

 

 

 

 

 

Tangible products

$

780

 

 

$

1,285

 

 

$

3,665

 

 

$

4,915

 

Services and software

 

229

 

 

 

218

 

 

 

919

 

 

 

866

 

Total Net sales

 

1,009

 

 

 

1,503

 

 

 

4,584

 

 

 

5,781

 

Cost of sales:

 

 

 

 

 

 

 

Tangible products

 

453

 

 

 

701

 

 

 

2,012

 

 

 

2,699

 

Services and software

 

108

 

 

 

117

 

 

 

449

 

 

 

458

 

Total Cost of sales

 

561

 

 

 

818

 

 

 

2,461

 

 

 

3,157

 

Gross profit

 

448

 

 

 

685

 

 

 

2,123

 

 

 

2,624

 

Operating expenses:

 

 

 

 

 

 

 

Selling and marketing

 

136

 

 

 

155

 

 

 

581

 

 

 

607

 

Research and development

 

116

 

 

 

142

 

 

 

519

 

 

 

570

 

General and administrative

 

78

 

 

 

87

 

 

 

334

 

 

 

375

 

Settlement and related costs

 

 

 

 

 

 

 

 

 

 

372

 

Amortization of intangible assets

 

26

 

 

 

29

 

 

 

104

 

 

 

136

 

Acquisition and integration costs

 

2

 

 

 

2

 

 

 

6

 

 

 

21

 

Exit and restructuring costs

 

16

 

 

 

10

 

 

 

98

 

 

 

14

 

Total Operating expenses

 

374

 

 

 

425

 

 

 

1,642

 

 

 

2,095

 

Operating income

 

74

 

 

 

260

 

 

 

481

 

 

 

529

 

Other (loss) income, net:

 

 

 

 

 

 

 

Foreign exchange loss

 

(4

)

 

 

(8

)

 

 

(2

)

 

 

(3

)

Interest (expense) income, net

 

(64

)

 

 

(25

)

 

 

(133

)

 

 

23

 

Other expense, net

 

(4

)

 

 

(2

)

 

 

(12

)

 

 

(5

)

Total Other (expense) income, net

 

(72

)

 

 

(35

)

 

 

(147

)

 

 

15

 

Income before income tax

 

2

 

 

 

225

 

 

 

334

 

 

 

544

 

Income tax (benefit) expense

 

(15

)

 

 

39

 

 

 

38

 

 

 

81

 

Net income

$

17

 

 

$

186

 

 

$

296

 

 

$

463

 

Basic earnings per share

$

0.32

 

 

$

3.59

 

 

$

5.75

 

 

$

8.86

 

Diluted earnings per share

$

0.31

 

 

$

3.57

 

 

$

5.72

 

 

$

8.80

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 

 

Year Ended December 31,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net income

$

296

 

 

$

463

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

176

 

 

 

204

 

Share-based compensation

 

55

 

 

 

88

 

Deferred income taxes

 

(36

)

 

 

(210

)

Unrealized loss (gain) on forward interest rate swaps

 

17

 

 

 

(89

)

Other, net

 

3

 

 

 

5

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

249

 

 

 

(5

)

Inventories, net

 

50

 

 

 

(341

)

Other assets

 

(25

)

 

 

(48

)

Accounts payable

 

(365

)

 

 

92

 

Accrued liabilities

 

(97

)

 

 

(51

)

Deferred revenue

 

12

 

 

 

60

 

Income taxes

 

(168

)

 

 

108

 

Settlement liability

 

(180

)

 

 

225

 

Other operating activities

 

9

 

 

 

(13

)

Net cash (used in) provided by operating activities

 

(4

)

 

 

488

 

Cash flows from investing activities:

 

 

 

Acquisition of businesses, net of cash acquired

 

 

 

 

(881

)

Purchases of property, plant and equipment

 

(87

)

 

 

(75

)

Purchases of short-term investments

 

(4

)

 

 

 

Purchases of long-term investments

 

(1

)

 

 

(12

)

Net cash used in investing activities

 

(92

)

 

 

(968

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of long-term debt

 

440

 

 

 

1,284

 

Payments of long term-debt

 

(245

)

 

 

(247

)

Payment of debt issuance costs, extinguishment costs and discounts

 

 

 

 

(8

)

Payments for repurchases of common stock

 

(52

)

 

 

(751

)

Net payments related to share-based compensation plans

 

(8

)

 

 

(14

)

Change in unremitted cash collections from servicing factored receivables

 

(18

)

 

 

(11

)

Net cash provided by financing activities

 

117

 

 

 

253

 

Effect of exchange rate changes on cash and cash equivalents, including restricted cash

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents, including restricted cash

 

21

 

 

 

(227

)

Cash and cash equivalents, including restricted cash, at beginning of period

 

117

 

 

 

344

 

Cash and cash equivalents, including restricted cash, at end of period

$

138

 

 

$

117

 

Less restricted cash, included in Prepaid expenses and other current assets

 

(1

)

 

 

(12

)

Cash and cash equivalents at end of period

$

137

 

 

$

105

 

Supplemental disclosures of cash flow information:

 

 

 

Income taxes paid

$

252

 

 

$

168

 

Interest paid

$

111

 

 

$

58

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF ORGANIC NET SALES DECLINE

(Unaudited)

 

 

Three Months Ended

 

December 31, 2023

 

AIT

 

EVM

 

Consolidated

Consolidated Reported GAAP Net sales decline

(33.1

)%

 

(32.8

)%

 

(32.9

)%

Adjustments:

 

 

 

 

 

Impact of foreign currency translations (1)

(0.5

)%

 

0.1

%

 

(0.2

)%

Consolidated Organic Net sales decline

(33.6

)%

 

(32.7

)%

 

(33.1

)%

 

 

 

 

 

 

 

Twelve Months Ended

 

December 31, 2023

 

AIT

 

EVM

 

Consolidated

Consolidated Reported GAAP Net sales decline

(10.1

)%

 

(25.6

)%

 

(20.7

)%

Adjustments:

 

 

 

 

 

Impact of foreign currency translations (1)

1.3

%

 

1.5

%

 

1.4

%

Impact of acquisitions (2)

 

 

(0.8

)%

 

(0.5

)%

Consolidated Organic Net sales decline

(8.8

)%

 

(24.9

)%

 

(19.8

)%

(1)

Operating results reported in U.S. Dollars are affected by foreign currency exchange rate fluctuations. Foreign currency translation impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. Dollar. This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period, inclusive of the Company’s foreign currency hedging program.

 

(2)

For purposes of computing Organic Net sales decline, amounts directly attributable to business acquisitions are excluded for twelve months following their respective acquisitions.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN

(In millions)

(Unaudited)

 

 

Three Months Ended

 

December 31, 2023

 

December 31, 2022

 

AIT

 

EVM

 

Consolidated

 

AIT

 

EVM

 

Consolidated

GAAP

 

 

 

 

 

 

 

 

 

 

 

Reported Net sales

$

346

 

 

$

663

 

 

$

1,009

 

 

$

517

 

 

$

986

 

 

$

1,503

 

Reported Gross profit

 

159

 

 

 

289

 

 

 

448

 

 

 

238

 

 

 

447

 

 

 

685

 

Gross Margin

 

46.0

%

 

 

43.6

%

 

 

44.4

%

 

 

46.0

%

 

 

45.3

%

 

 

45.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net sales

$

346

 

 

$

663

 

 

$

1,009

 

 

$

517

 

 

$

986

 

 

$

1,503

 

Adjusted Gross profit (1)

 

160

 

 

 

290

 

 

 

450

 

 

 

239

 

 

 

447

 

 

 

686

 

Adjusted Gross Margin

 

46.2

%

 

 

43.7

%

 

 

44.6

%

 

 

46.2

%

 

 

45.3

%

 

 

45.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

December 31, 2023

 

December 31, 2022

 

AIT

 

EVM

 

Consolidated

 

AIT

 

EVM

 

Consolidated

GAAP

 

 

 

 

 

 

 

 

 

 

 

Reported Net sales

$

1,651

 

 

$

2,933

 

 

$

4,584

 

 

$

1,837

 

 

$

3,944

 

 

$

5,781

 

Reported Gross profit

 

787

 

 

 

1,336

 

 

 

2,123

 

 

 

795

 

 

 

1,829

 

 

 

2,624

 

Gross Margin

 

47.7

%

 

 

45.6

%

 

 

46.3

%

 

 

43.3

%

 

 

46.4

%

 

 

45.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net sales

$

1,651

 

 

$

2,933

 

 

$

4,584

 

 

$

1,837

 

 

$

3,944

 

 

$

5,781

 

Adjusted Gross profit (1)

 

789

 

 

 

1,340

 

 

 

2,129

 

 

 

797

 

 

 

1,833

 

 

 

2,630

 

Adjusted Gross Margin

 

47.8

%

 

 

45.7

%

 

 

46.4

%

 

 

43.4

%

 

 

46.5

%

 

 

45.5

%

(1)

Adjusted Gross profit excludes share-based compensation expense.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(In millions, except share data)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

GAAP Net income

$

17

 

 

$

186

 

 

$

296

 

 

$

463

 

Adjustments to Cost of sales(1)

 

 

 

 

 

 

 

Share-based compensation

 

2

 

 

 

1

 

 

 

6

 

 

 

6

 

Total adjustments to Cost of sales

 

2

 

 

 

1

 

 

 

6

 

 

 

6

 

Adjustments to Operating expenses(1)

 

 

 

 

 

 

 

Amortization of intangible assets

 

26

 

 

 

29

 

 

 

104

 

 

 

136

 

Acquisition and integration costs

 

2

 

 

 

2

 

 

 

6

 

 

 

21

 

Settlement and related costs

 

 

 

 

 

 

 

 

 

 

372

 

Share-based compensation

 

18

 

 

 

20

 

 

 

60

 

 

 

90

 

Exit and restructuring costs

 

16

 

 

 

10

 

 

 

98

 

 

 

14

 

Total adjustments to Operating expenses

 

62

 

 

 

61

 

 

 

268

 

 

 

633

 

Adjustments to Other income (expense), net(1)

 

 

 

 

 

 

 

Amortization of debt issuance costs and discounts

 

1

 

 

 

 

 

 

3

 

 

 

4

 

Investment loss

 

 

 

 

 

 

 

1

 

 

 

 

Foreign exchange loss

 

4

 

 

 

8

 

 

 

2

 

 

 

3

 

Forward interest rate swap loss (gain)

 

25

 

 

 

1

 

 

 

(9

)

 

 

(83

)

Total adjustments to Other income (expense), net

 

30

 

 

 

9

 

 

 

(3

)

 

 

(76

)

Income tax effect of adjustments(2)

 

 

 

 

 

 

 

Reported income tax expense

 

(15

)

 

 

39

 

 

 

38

 

 

 

81

 

Adjusted income tax

 

(7

)

 

 

(50

)

 

 

(97

)

 

 

(189

)

Total adjustments to income tax

 

(22

)

 

 

(11

)

 

 

(59

)

 

 

(108

)

Total adjustments

 

72

 

 

 

60

 

 

 

212

 

 

 

455

 

Non-GAAP Net income

$

89

 

 

$

246

 

 

$

508

 

 

$

918

 

 

 

 

 

 

 

 

 

GAAP earnings per share

 

 

 

 

 

 

 

Basic

$

0.32

 

 

$

3.59

 

 

$

5.75

 

 

$

8.86

 

Diluted

$

0.31

 

 

$

3.57

 

 

$

5.72

 

 

$

8.80

 

Non-GAAP earnings per share

 

 

 

 

 

 

 

Basic

$

1.72

 

 

$

4.78

 

 

$

9.88

 

 

$

17.59

 

Diluted

$

1.71

 

 

$

4.75

 

 

$

9.82

 

 

$

17.47

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

51,366,299

 

 

 

51,645,205

 

 

 

51,378,051

 

 

 

52,207,903

 

Diluted weighted average and equivalent shares outstanding

 

51,687,374

 

 

 

51,942,060

 

 

 

51,710,962

 

 

 

52,558,712

 

(1)

Presented on a pre-tax basis.

(2)

Represents adjustments to GAAP income tax expense commensurate with pre-tax non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI provisions), as well as adjustments to exclude the impacts of certain discrete income tax items and incorporate the anticipated annualized effects of current year tax planning.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

GAAP to NON-GAAP RECONCILIATION TO EBITDA

(In millions)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

GAAP Net income

$

17

 

 

$

186

 

 

$

296

 

 

$

463

 

Add back:

 

 

 

 

 

 

 

Depreciation (excluding exit and restructuring costs)

 

17

 

 

 

16

 

 

 

69

 

 

 

67

 

Amortization of intangible assets

 

26

 

 

 

29

 

 

 

104

 

 

 

136

 

Total Other expense (income), net

 

72

 

 

 

35

 

 

 

147

 

 

 

(15

)

Income tax (benefit) expense

 

(15

)

 

 

39

 

 

 

38

 

 

 

81

 

EBITDA (Non-GAAP)

 

117

 

 

 

305

 

 

 

654

 

 

 

732

 

 

 

 

 

 

 

 

 

Adjustments to Cost of sales

 

 

 

 

 

 

 

Share-based compensation

 

2

 

 

 

1

 

 

 

6

 

 

 

6

 

Total adjustments to Cost of sales

 

2

 

 

 

1

 

 

 

6

 

 

 

6

 

Adjustments to Operating expenses

 

 

 

 

 

 

 

Acquisition and integration costs

 

2

 

 

 

2

 

 

 

6

 

 

 

21

 

Settlement and related costs

 

 

 

 

 

 

 

 

 

 

372

 

Share-based compensation

 

18

 

 

 

20

 

 

 

60

 

 

 

90

 

Exit and restructuring costs

 

16

 

 

 

10

 

 

 

98

 

 

 

14

 

Total adjustments to Operating expenses

 

36

 

 

 

32

 

 

 

164

 

 

 

497

 

Total adjustments to EBITDA

 

38

 

 

 

33

 

 

 

170

 

 

 

503

 

Adjusted EBITDA (Non-GAAP)

$

155

 

 

$

338

 

 

$

824

 

 

$

1,235

 

 

 

 

 

 

 

 

 

Adjusted EBITDA % of Adjusted Net Sales (Non-GAAP)

 

15.4

%

 

 

22.5

%

 

 

18.0

%

 

 

21.4

%

FREE CASH FLOW

 

Twelve Months Ended

 

December 31,

2023

 

December 31,

2022

Net cash (used in) provided by operating activities

$

(4

)

 

$

488

 

Less: Purchases of property, plant and equipment

 

(87

)

 

 

(75

)

Free cash flow (Non-GAAP)(1)

$

(91

)

 

$

413

 

(1)

Free cash flow, a non-GAAP measure, is defined as Net cash (used in) provided by operating activities in a period minus purchases of property, plant and equipment (capital expenditures) made in that period. This measure does not represent residual cash flows available for discretionary expenditures as the measure does not deduct the payments required for debt service and other contractual obligations or payments for future business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statements of cash flows.

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.