Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MITEL NETWORKS CORP | d698068d8k.htm |
Exhibit 99.1
MITEL NETWORKS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of US dollars, except per share amounts)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
||||||||||||||||
| Revenues |
$ | 143.1 | $ | 146.6 | $ | 135.0 | $ | 144.8 | $ | 569.5 | ||||||||||
| Cost of revenues |
62.3 | 66.0 | 56.3 | 60.7 | 245.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross margin |
80.8 | 80.6 | 78.7 | 84.1 | 324.2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Expenses: |
||||||||||||||||||||
| Selling, general and administrative |
54.5 | 56.3 | 55.7 | 57.0 | 223.5 | |||||||||||||||
| Research and development |
13.8 | 13.5 | 14.2 | 15.4 | 56.9 | |||||||||||||||
| Special charges and restructuring costs |
1.4 | 2.6 | 6.4 | 7.0 | 17.4 | |||||||||||||||
| Loss on litigation settlement |
0.1 | — | — | — | 0.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 69.8 | 72.4 | 76.3 | 79.4 | 297.9 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operating income from continuing operations |
11.0 | 8.2 | 2.4 | 4.7 | 26.3 | |||||||||||||||
| Interest expense |
(5.4 | ) | (6.3 | ) | (6.5 | ) | (6.3 | ) | (24.5 | ) | ||||||||||
| Debt retirement costs |
(2.6 | ) | — | — | (0.6 | ) | (3.2 | ) | ||||||||||||
| Other income (expense) |
0.1 | (0.3 | ) | — | — | (0.2 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from continuing operations, before income taxes |
3.1 | 1.6 | (4.1 | ) | (2.2 | ) | (1.6 | ) | ||||||||||||
| Current income tax recovery (expense) |
0.6 | 3.3 | (2.7 | ) | 0.6 | 1.8 | ||||||||||||||
| Deferred income tax recovery (expense) |
(2.4 | ) | (2.2 | ) | 5.4 | (1.2 | ) | (0.4 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) from continuing operations |
1.3 | 2.7 | (1.4 | ) | (2.8 | ) | (0.2 | ) | ||||||||||||
| Net loss from discontinued operations |
(3.0 | ) | — | — | — | (3.0 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) |
$ | (1.7 | ) | $ | 2.7 | $ | (1.4 | ) | $ | (2.8 | ) | $ | (3.2 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) per common share – Basic |
||||||||||||||||||||
| From continuing operations |
$ | 0.02 | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.01 | ) | |||||||
| From discontinued operations |
$ | (0.05 | ) | $ | — | $ | — | $ | — | $ | (0.05 | ) | ||||||||
| Net income (loss) per common share – Basic |
$ | (0.03 | ) | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.06 | ) | ||||||
| Net income (loss) per common share – Diluted |
||||||||||||||||||||
| From continuing operations |
$ | 0.02 | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.01 | ) | |||||||
| From discontinued operations |
$ | (0.05 | ) | $ | — | $ | — | $ | — | $ | (0.05 | ) | ||||||||
| Net income (loss) per common share – Diluted |
$ | (0.03 | ) | $ | 0.05 | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.06 | ) | ||||||
| Weighted-average number of common shares outstanding (in millions): |
|
|||||||||||||||||||
| Basic |
53.7 | 53.7 | 53.8 | 53.9 | 53.8 | |||||||||||||||
| Diluted |
56.2 | 56.3 | 53.8 | 53.9 | 53.8 | |||||||||||||||
1
MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
(in millions of US dollars, except per share amounts)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
||||||||||||||||
| Net income (loss) from continuing operations |
$ | 1.3 | $ | 2.7 | $ | (1.4 | ) | $ | (2.8 | ) | $ | (0.2 | ) | |||||||
| Income tax expense (recovery) |
1.8 | (1.1 | ) | (2.7 | ) | 0.6 | (1.4 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) from continuing operations, before income taxes |
3.1 | 1.6 | (4.1 | ) | (2.2 | ) | (1.6 | ) | ||||||||||||
| Adjustments: |
||||||||||||||||||||
| Foreign exchange loss (gain) |
0.5 | 0.5 | (0.5 | ) | 0.1 | 0.6 | ||||||||||||||
| Special charges and restructuring costs |
1.4 | 2.6 | 6.4 | 7.0 | 17.4 | |||||||||||||||
| Stock-based compensation |
1.1 | 1.0 | 1.2 | 1.3 | 4.6 | |||||||||||||||
| Loss on litigation settlement |
0.1 | — | — | — | 0.1 | |||||||||||||||
| Amortization of acquisition-related intangibles assets |
5.6 | 5.6 | 6.5 | 6.5 | 24.2 | |||||||||||||||
| Debt retirement costs |
2.6 | — | — | 0.6 | 3.2 | |||||||||||||||
| Other |
— | 0.4 | — | — | 0.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP net income from continuing operations, before income taxes |
14.4 | 11.7 | 9.5 | 13.3 | 48.9 | |||||||||||||||
| Non-GAAP tax expense(1) |
(2.2 | ) | (1.8 | ) | (1.4 | ) | (2.0 | ) | (7.4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP net income from continuing operations |
12.2 | 9.9 | 8.1 | 11.3 | 41.5 | |||||||||||||||
| Non-GAAP net loss from discontinued operations |
(0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP net income |
$ | 12.1 | $ | 9.9 | $ | 8.1 | $ | 11.3 | $ | 41.4 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP net income (loss) per share, diluted: |
||||||||||||||||||||
| Non-GAAP net income per common share from continuing operations |
$ | 0.22 | $ | 0.18 | $ | 0.14 | $ | 0.19 | $ | 0.73 | ||||||||||
| Non-GAAP net loss per common share from discontinued operations |
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Non-GAAP net income per common share |
$ | 0.22 | $ | 0.18 | $ | 0.14 | $ | 0.19 | $ | 0.73 | ||||||||||
| Non-GAAP Weighted-average number of common shares outstanding (in millions): |
56.2 | 56.3 | 56.6 | 58.1 | 56.8 | |||||||||||||||
| (1) | Non-GAAP tax expense is based on an estimated effective tax rate of 15%. |
2
MITEL NETWORKS CORPORATION
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in millions of US dollars)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
||||||||||||||||
| Net income (loss) |
$ | (1.7 | ) | $ | 2.7 | $ | (1.4 | ) | $ | (2.8 | ) | $ | (3.2 | ) | ||||||
| Net loss from discontinued operations |
3.0 | — | — | — | 3.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income (loss) from continuing operations |
1.3 | 2.7 | (1.4 | ) | (2.8 | ) | (0.2 | ) | ||||||||||||
| Adjustments: |
||||||||||||||||||||
| Interest expense |
5.4 | 6.3 | 6.5 | 6.3 | 24.5 | |||||||||||||||
| Income tax expense (recovery) |
1.8 | (1.1 | ) | (2.7 | ) | 0.6 | (1.4 | ) | ||||||||||||
| Amortization and depreciation |
8.9 | 9.0 | 9.7 | 10.1 | 37.7 | |||||||||||||||
| Foreign exchange loss (gain) |
0.5 | 0.5 | (0.5 | ) | 0.1 | 0.6 | ||||||||||||||
| Special charges and restructuring costs |
1.4 | 2.6 | 6.4 | 7.0 | 17.4 | |||||||||||||||
| Stock-based compensation |
1.1 | 1.0 | 1.2 | 1.3 | 4.6 | |||||||||||||||
| Loss on litigation settlement |
0.1 | — | — | — | 0.1 | |||||||||||||||
| Debt retirement costs |
2.6 | — | — | 0.6 | 3.2 | |||||||||||||||
| Other |
— | 0.4 | — | — | 0.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted EBITDA from continuing operations |
23.1 | 21.4 | 19.2 | 23.2 | 86.9 | |||||||||||||||
| Adjusted EBITDA from discontinued operations(1) |
(0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Adjusted EBITDA |
$ | 23.0 | $ | 21.4 | $ | 19.2 | $ | 23.2 | $ | 86.8 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (1) | The reconciliation of net loss from discontinued operations to Adjusted EBITDA from discontinued operations for the quarter ended March 31, 2013 consists of special charges and restructuring costs of $1.6, non-cash impairment of goodwill of $1.9 and an income tax recovery of $0.6. |
3
MITEL NETWORKS CORPORATION
Segmented Information
(in millions of US dollars)
(unaudited)
| Quarter Ended March 31, 2013 |
Quarter Ended June 30, 2013 |
Quarter Ended September 30, 2013 |
Quarter Ended December 31, 2013 |
Year Ended December 31, 2013 |
||||||||||||||||
| Revenues |
||||||||||||||||||||
| Mitel Communications Solutions |
$ | 119.0 | $ | 121.8 | $ | 110.4 | $ | 119.2 | $ | 470.4 | ||||||||||
| NetSolutions |
21.6 | 21.5 | 22.0 | 22.2 | 87.3 | |||||||||||||||
| Other |
2.5 | 3.3 | 2.6 | 3.4 | 11.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total revenues |
$ | 143.1 | $ | 146.6 | $ | 135.0 | $ | 144.8 | $ | 569.5 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Segment income |
||||||||||||||||||||
| Mitel Communications Solutions |
$ | 26.6 | $ | 28.3 | $ | 25.8 | $ | 29.5 | $ | 110.2 | ||||||||||
| NetSolutions |
5.7 | 4.3 | 5.0 | 3.8 | 18.8 | |||||||||||||||
| Other |
0.8 | 0.7 | 0.6 | 0.6 | 2.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total segment income |
$ | 33.1 | $ | 33.3 | $ | 31.4 | $ | 33.9 | $ | 131.7 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
4