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 fourth quarter of Fiscal 2013 and the fiscal year ended
March 31, 2013.
Fourth quarter of Fiscal 2013 diluted earnings per share was 44¢ on net
income of $7.2 million or 3.0% of revenues compared to diluted earnings
per share of 64¢ on net income of $11.2 million or 4.4% of revenues for
the same quarter last year. On a sequential quarter comparison basis,
third quarter of Fiscal 2013 diluted earnings per share was 52¢ on net
income of $8.5 million or 3.4% of revenues. Operating earnings per share
(which is a non-GAAP term and is defined below) for the fourth quarter
of Fiscal 2013 was 67¢ on operating net income (which is a non-GAAP term
and is defined below) of $10.9 million or 4.6% of revenues compared to
operating earnings per share of 65¢ on operating net income of $11.4
million or 4.4% of revenues for the same quarter last year. See the
information under the caption "Non-GAAP Financial Measures" below for a
discussion regarding the usefulness of the non-GAAP financial measures
contained in this release, definitions of those non-GAAP financial
measures and reconciliations to their most directly comparable GAAP
financial measures.
Fourth quarter of Fiscal 2013 total revenues were $238 million, a
decrease of 7% from $256 million for the same quarter last year. On a
sequential quarter comparison basis, third quarter of Fiscal 2013 total
revenues were $252 million.
Fourth quarter of Fiscal 2013 cash provided by operating activities was
$16 million or 221% of net income, compared to cash provided by
operating activities of $22 million or 195% of net income for the same
quarter last year. Fourth quarter of Fiscal 2013 free cash flow (which
is a non-GAAP term and is defined below) was $13 million compared to $20
million for the same quarter last year. On a sequential quarter
comparison basis, third quarter of Fiscal 2013 cash provided by
operating activities was $16 million or 191% of net income and free cash
flow was $15 million. During the fourth quarter of Fiscal 2013, Black
Box invested $4 million to repurchase common stock and $1 million to pay
dividends.
Fiscal 2013 diluted earnings per share was $1.73 on net income of $28.8
million or 2.9% of revenues compared to diluted loss per share of $13.98
on net loss of $247.7 million or (22.8)% of revenues for the same period
last year. Fiscal 2013 operating earnings was $2.67 on operating net
income of $44.6 million or 4.5% of revenues compared to operating
earnings per share of $3.03 on operating net income of $54.0 million or
5.0% of revenues for the same period last year.
Fiscal 2013 total revenues were $998 million, a decrease of 8% from
$1,088 million for the same period last year.
Fiscal 2013 cash provided by operating activities was $47 million or
162% of net income, compared to cash provided by operating activities of
$66 million or (27)% of net loss for the same period last year. Fiscal
2013 free cash flow was $40 million compared to $56 million for the same
period last year. During Fiscal 2013, Black Box invested $37 million to
repurchase common stock and $5 million to pay dividends.
The Company's six-month order backlog was $201 million at March 31,
2013, compared to $199 million for the same quarter last year. On a
sequential quarter-end comparison basis, the Company's six-month order
backlog was $188 million at December 29, 2012.
For Fiscal 2014, the Company is targeting reported revenues of
approximately $1.00 billion to $1.02 billion and corresponding operating
earnings per share in the range of $2.70 to $2.90. Included in these
projections is an effective tax rate of 39.5%. For the first quarter of
Fiscal 2014, the Company is targeting reported revenues of approximately
$238 million to $243 million and corresponding operating earnings per
share in the range of 53¢ to 58¢. These targets exclude intangibles
amortization 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 fourth quarter of Fiscal 2013 results, Michael
McAndrew, President and Chief Executive Officer, said, "Our results from
the fourth quarter and Fiscal 2013 reflect both the challenges and
opportunities in the markets that we serve. We continue to experience
top line revenue pressure however, pricing has stabilized and our
business model continues to generate significant positive operating cash
flow.
"As we enter Fiscal 2014, I am confident that the programs we are
putting in place will allow us to grow share in our existing markets
while profitably expanding into new markets. Through execution of these
programs, I expect Black Box to deliver organic revenue growth while
continuing to generate significant operating cash flow in the new fiscal
year."
The Company will conduct a conference call beginning at 5:00 p.m.
Eastern Daylight Time today, May 9, 2013. Michael McAndrew, President
and 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 287111. 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 and caution you not to unduly rely on any such
forward-looking statements.
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BLACK BOX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
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|
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|
|
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In thousands, except par value
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|
|
|
|
March 31, 2013
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|
|
March 31, 2012
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
30,720
|
|
|
|
$
|
22,444
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|
|
Accounts receivable, net
|
|
|
|
|
152,967
|
|
|
|
163,888
|
|
|
Inventories, net
|
|
|
|
|
55,469
|
|
|
|
56,956
|
|
|
Costs/estimated earnings in excess of billings on uncompleted
contracts
|
|
|
|
|
101,458
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|
|
|
87,634
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|
|
Other assets
|
|
|
|
|
26,068
|
|
|
|
22,678
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|
|
Total current assets
|
|
|
|
|
366,682
|
|
|
|
353,600
|
|
|
Property, plant and equipment, net
|
|
|
|
|
27,720
|
|
|
|
27,109
|
|
|
Goodwill, net
|
|
|
|
|
345,397
|
|
|
|
346,438
|
|
|
Intangibles, net
|
|
|
|
|
110,668
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|
|
|
126,541
|
|
|
Other assets
|
|
|
|
|
27,534
|
|
|
|
34,335
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|
|
Total assets
|
|
|
|
|
$
|
878,001
|
|
|
|
$
|
888,023
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable
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|
|
|
|
$
|
66,236
|
|
|
|
$
|
71,095
|
|
|
Accrued compensation and benefits
|
|
|
|
|
25,186
|
|
|
|
31,151
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|
|
Deferred revenue
|
|
|
|
|
33,869
|
|
|
|
35,601
|
|
|
Billings in excess of costs/estimated earnings on uncompleted
contracts
|
|
|
|
|
13,386
|
|
|
|
14,315
|
|
|
Income taxes
|
|
|
|
|
6,650
|
|
|
|
2,574
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|
|
Other liabilities
|
|
|
|
|
37,126
|
|
|
|
32,697
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|
|
Total current liabilities
|
|
|
|
|
182,453
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|
|
|
187,433
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|
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Long-term debt
|
|
|
|
|
187,648
|
|
|
|
179,621
|
|
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Other liabilities
|
|
|
|
|
25,653
|
|
|
|
26,585
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|
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Total liabilities
|
|
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|
|
$
|
395,754
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|
|
|
$
|
393,639
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|
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Stockholders’ equity
|
|
|
|
|
|
|
|
|
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Common stock
|
|
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|
|
$
|
26
|
|
|
|
$
|
26
|
|
|
Additional paid-in capital
|
|
|
|
|
486,075
|
|
|
|
478,726
|
|
|
Retained earnings
|
|
|
|
|
370,775
|
|
|
|
347,242
|
|
|
Accumulated other comprehensive income
|
|
|
|
|
1,457
|
|
|
|
7,262
|
|
|
Treasury stock, at cost
|
|
|
|
|
(376,086
|
)
|
|
|
(338,872
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)
|
|
Total stockholders’ equity
|
|
|
|
|
$
|
482,247
|
|
|
|
$
|
494,384
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|
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Total liabilities and stockholders’ equity
|
|
|
|
|
$
|
878,001
|
|
|
|
$
|
888,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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BLACK BOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
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|
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|
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|
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|
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Three-months ended
|
|
|
Fiscal Year ended
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|
|
|
|
|
March 31
|
|
|
March 31
|
|
In thousands, except per share amounts
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
$
|
44,212
|
|
|
$
|
49,213
|
|
|
|
$
|
181,704
|
|
|
$
|
198,640
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|
|
On-Site services
|
|
|
|
|
193,487
|
|
|
206,779
|
|
|
|
816,082
|
|
|
888,888
|
|
|
Total
|
|
|
|
|
237,699
|
|
|
255,992
|
|
|
|
997,786
|
|
|
1,087,528
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
24,189
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|
|
27,440
|
|
|
|
101,201
|
|
|
110,455
|
|
|
On-Site services
|
|
|
|
|
134,640
|
|
|
145,816
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|
|
|
576,655
|
|
|
630,577
|
|
|
Total
|
|
|
|
|
158,829
|
|
|
173,256
|
|
|
|
677,856
|
|
|
741,032
|
|
|
Gross profit
|
|
|
|
|
78,870
|
|
|
82,736
|
|
|
|
319,930
|
|
|
346,496
|
|
|
Selling, general & administrative expenses
|
|
|
|
|
62,836
|
|
|
62,803
|
|
|
|
249,924
|
|
|
255,347
|
|
|
Goodwill impairment loss
|
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
317,797
|
|
|
Intangibles amortization
|
|
|
|
|
3,321
|
|
|
3,541
|
|
|
|
13,737
|
|
|
13,025
|
|
|
Operating income (loss)
|
|
|
|
|
12,713
|
|
|
16,392
|
|
|
|
56,269
|
|
|
(239,673
|
)
|
|
Interest expense (income), net
|
|
|
|
|
1,134
|
|
|
1,458
|
|
|
|
6,090
|
|
|
5,148
|
|
|
Other expenses (income), net
|
|
|
|
|
(72
|
)
|
|
369
|
|
|
|
3,716
|
|
|
1,245
|
|
|
Income (loss) before provision (benefit) for income taxes
|
|
|
|
|
11,651
|
|
|
14,565
|
|
|
|
46,463
|
|
|
(246,066
|
)
|
|
Provision (benefit) for income taxes
|
|
|
|
|
4,428
|
|
|
3,323
|
|
|
|
17,657
|
|
|
1,668
|
|
|
Net income (loss)
|
|
|
|
|
$
|
7,223
|
|
|
$
|
11,242
|
|
|
|
$
|
28,806
|
|
|
$
|
(247,734
|
)
|
|
Earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.45
|
|
|
$
|
0.64
|
|
|
|
$
|
1.73
|
|
|
$
|
(13.98
|
)
|
|
Diluted
|
|
|
|
|
$
|
0.44
|
|
|
$
|
0.64
|
|
|
|
$
|
1.73
|
|
|
$
|
(13.98
|
)
|
|
Weighted-average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
16,211
|
|
|
17,480
|
|
|
|
16,627
|
|
|
17,725
|
|
|
Diluted
|
|
|
|
|
16,328
|
|
|
17,591
|
|
|
|
16,689
|
|
|
17,725
|
|
|
Dividends per share
|
|
|
|
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
|
$
|
0.32
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLACK BOX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-months ended
|
|
|
Fiscal Year ended
|
|
|
|
|
|
|
March 31
|
|
|
March 31
|
|
In thousands
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
7,223
|
|
|
$
|
11,242
|
|
|
|
$
|
28,806
|
|
|
$
|
(247,734
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangibles amortization and depreciation
|
|
|
|
|
4,696
|
|
|
4,878
|
|
|
|
19,123
|
|
|
18,459
|
|
|
Loss (gain) on sale of property
|
|
|
|
|
21
|
|
|
(87
|
)
|
|
|
(105
|
)
|
|
(253
|
)
|
|
Deferred taxes
|
|
|
|
|
588
|
|
|
(731
|
)
|
|
|
3,425
|
|
|
(23,328
|
)
|
|
Stock compensation expense
|
|
|
|
|
1,315
|
|
|
1,791
|
|
|
|
7,712
|
|
|
9,296
|
|
|
Change in fair value of interest-rate swaps
|
|
|
|
|
(272
|
)
|
|
271
|
|
|
|
606
|
|
|
(530
|
)
|
|
Goodwill impairment loss
|
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
317,797
|
|
|
Joint venture investment loss
|
|
|
|
|
—
|
|
|
—
|
|
|
|
2,670
|
|
|
—
|
|
|
Changes in operating assets and liabilities (net of acquisitions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
4,683
|
|
|
11,308
|
|
|
|
10,047
|
|
|
135
|
|
|
Inventories, net
|
|
|
|
|
548
|
|
|
6,308
|
|
|
|
1,231
|
|
|
(3,540
|
)
|
|
Costs/estimated earnings in excess of billings on uncompleted
contracts
|
|
|
|
|
8,787
|
|
|
17,598
|
|
|
|
(13,928
|
)
|
|
19,133
|
|
|
All other assets
|
|
|
|
|
(3,855
|
)
|
|
(296
|
)
|
|
|
(2,498
|
)
|
|
2,108
|
|
|
Billings in excess of costs/estimated earnings on uncompleted
contracts
|
|
|
|
|
(4,781
|
)
|
|
(5,854
|
)
|
|
|
(908
|
)
|
|
(6,603
|
)
|
|
All other liabilities
|
|
|
|
|
(2,978
|
)
|
|
(24,481
|
)
|
|
|
(9,480
|
)
|
|
(19,119
|
)
|
|
Net cash provided by (used for) operating activities
|
|
|
|
|
$
|
15,975
|
|
|
$
|
21,947
|
|
|
|
$
|
46,701
|
|
|
$
|
65,821
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
$
|
(2,238
|
)
|
|
$
|
(2,660
|
)
|
|
|
$
|
(6,323
|
)
|
|
$
|
(7,633
|
)
|
|
Capital disposals
|
|
|
|
|
175
|
|
|
93
|
|
|
|
389
|
|
|
280
|
|
|
Acquisition of businesses (payments)/recoveries
|
|
|
|
|
—
|
|
|
(25,816
|
)
|
|
|
17
|
|
|
(39,770
|
)
|
|
Prior merger-related (payments)/recoveries
|
|
|
|
|
(10
|
)
|
|
(121
|
)
|
|
|
(2,388
|
)
|
|
(1,295
|
)
|
|
Net cash provided by (used for) investing activities
|
|
|
|
|
$
|
(2,073
|
)
|
|
$
|
(28,504
|
)
|
|
|
$
|
(8,305
|
)
|
|
$
|
(48,418
|
)
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds (repayments) from long-term debt
|
|
|
|
|
$
|
(4,168
|
)
|
|
$
|
5,755
|
|
|
|
$
|
7,735
|
|
|
$
|
(1,911
|
)
|
|
Proceeds (repayments) from short-term debt
|
|
|
|
|
(1,399
|
)
|
|
—
|
|
|
|
4,005
|
|
|
—
|
|
|
Deferred financing costs
|
|
|
|
|
—
|
|
|
(1,743
|
)
|
|
|
(20
|
)
|
|
(1,743
|
)
|
|
Purchase of treasury stock
|
|
|
|
|
(4,192
|
)
|
|
—
|
|
|
|
(37,214
|
)
|
|
(15,292
|
)
|
|
Proceeds from the exercise of stock options
|
|
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Payment of dividends
|
|
|
|
|
(1,304
|
)
|
|
(1,224
|
)
|
|
|
(5,206
|
)
|
|
(4,798
|
)
|
|
Increase (decrease) in cash overdrafts
|
|
|
|
|
(689
|
)
|
|
—
|
|
|
|
1,237
|
|
|
—
|
|
|
Net cash provided by (used for) financing activities
|
|
|
|
|
$
|
(11,752
|
)
|
|
$
|
2,788
|
|
|
|
$
|
(29,463
|
)
|
|
$
|
(23,744
|
)
|
|
Foreign currency exchange impact on cash
|
|
|
|
|
$
|
(899
|
)
|
|
$
|
754
|
|
|
|
$
|
(657
|
)
|
|
$
|
(2,427
|
)
|
|
Increase/(decrease) in cash and cash equivalents
|
|
|
|
|
$
|
1,251
|
|
|
$
|
(3,015
|
)
|
|
|
$
|
8,276
|
|
|
$
|
(8,768
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
29,469
|
|
|
25,459
|
|
|
|
22,444
|
|
|
31,212
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
$
|
30,720
|
|
|
$
|
22,444
|
|
|
|
$
|
30,720
|
|
|
$
|
22,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
4Q12
|
|
FY13
|
|
FY12
|
|
Net cash provided by (used for) operating activities
|
|
|
|
|
$
|
15,975
|
|
|
$
|
16,286
|
|
|
$
|
21,947
|
|
|
$
|
46,701
|
|
|
$
|
65,821
|
|
|
Net capital expenditures
|
|
|
|
|
(2,063
|
)
|
|
(1,104
|
)
|
|
(2,567
|
)
|
|
(5,934
|
)
|
|
(7,353
|
)
|
|
Foreign currency exchange impact on cash
|
|
|
|
|
(899
|
)
|
|
262
|
|
|
754
|
|
|
(657
|
)
|
|
(2,427
|
)
|
|
Free cash flow before stock option exercises
|
|
|
|
|
$
|
13,013
|
|
|
$
|
15,444
|
|
|
$
|
20,134
|
|
|
$
|
40,110
|
|
|
$
|
56,041
|
|
|
Proceeds from the exercise of stock options
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Free cash flow
|
|
|
|
|
$
|
13,013
|
|
|
$
|
15,444
|
|
|
$
|
20,134
|
|
|
$
|
40,110
|
|
|
$
|
56,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
4Q12
|
|
FY13
|
|
FY12
|
|
Net income (loss)
|
|
|
|
|
$
|
7,223
|
|
|
$
|
8,518
|
|
|
$
|
11,242
|
|
|
$
|
28,806
|
|
|
$
|
(247,734
|
)
|
|
Provision (benefit) for income taxes
|
|
|
|
|
4,428
|
|
|
5,222
|
|
|
3,323
|
|
|
17,657
|
|
|
1,668
|
|
|
Income (loss) before provision (benefit) for income taxes
|
|
|
|
|
$
|
11,651
|
|
|
$
|
13,740
|
|
|
$
|
14,565
|
|
|
$
|
46,463
|
|
|
$
|
(246,066
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets on acquisitions
|
|
|
|
|
$
|
3,315
|
|
|
$
|
3,472
|
|
|
$
|
3,530
|
|
|
$
|
13,713
|
|
|
$
|
12,980
|
|
|
Change in fair value of interest-rate swaps
|
|
|
|
|
(272
|
)
|
|
(317
|
)
|
|
271
|
|
|
606
|
|
|
(530
|
)
|
|
Goodwill impairment loss
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317,797
|
|
|
Restructuring expense
|
|
|
|
|
2,972
|
|
|
1,442
|
|
|
—
|
|
|
8,445
|
|
|
—
|
|
|
Joint venture investment loss
|
|
|
|
|
—
|
|
|
2,670
|
|
|
—
|
|
|
2,670
|
|
|
—
|
|
|
Total pre-tax reconciling items
|
|
|
|
|
$
|
6,015
|
|
|
$
|
7,267
|
|
|
$
|
3,801
|
|
|
$
|
25,434
|
|
|
$
|
330,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBIT
|
|
|
|
|
$
|
17,666
|
|
|
$
|
21,007
|
|
|
$
|
18,366
|
|
|
$
|
71,897
|
|
|
$
|
84,181
|
|
|
Operational effective tax rate
|
|
|
|
|
38.0
|
%
|
|
38.0
|
%
|
|
38.0
|
%
|
|
38.0
|
%
|
|
35.9
|
%
|
|
Operational income taxes *
|
|
|
|
|
$
|
6,720
|
|
|
$
|
7,978
|
|
|
$
|
6,979
|
|
|
$
|
27,322
|
|
|
$
|
30,207
|
|
|
Operating net income
|
|
|
|
|
$
|
10,946
|
|
|
$
|
13,029
|
|
|
$
|
11,387
|
|
|
$
|
44,575
|
|
|
$
|
53,974
|
|
* 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
4Q12
|
|
FY13
|
|
FY12
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.44
|
|
|
$
|
0.52
|
|
|
$
|
0.64
|
|
|
$
|
1.73
|
|
|
$
|
(13.98
|
)
|
|
EPS impact * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.23
|
|
|
0.27
|
|
|
0.01
|
|
|
0.94
|
|
|
17.01
|
|
|
Operating EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.67
|
|
|
$
|
0.79
|
|
|
$
|
0.65
|
|
|
$
|
2.67
|
|
|
$
|
3.03
|
|
* 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:
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
4Q12
|
|
FY13
|
|
FY12
|
|
Net income (loss)
|
|
|
|
|
$
|
7,223
|
|
|
$
|
8,518
|
|
|
$
|
11,242
|
|
|
$
|
28,806
|
|
|
$
|
(247,734
|
)
|
|
Provision (benefit) for income taxes
|
|
|
|
|
4,428
|
|
|
5,222
|
|
|
3,323
|
|
|
17,657
|
|
|
1,668
|
|
|
Interest expense (income), net
|
|
|
|
|
1,134
|
|
|
1,133
|
|
|
1,458
|
|
|
6,090
|
|
|
5,148
|
|
|
Intangibles amortization and depreciation
|
|
|
|
|
4,696
|
|
|
4,777
|
|
|
4,878
|
|
|
19,123
|
|
|
18,459
|
|
|
Goodwill impairment loss
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
317,797
|
|
|
Joint venture investment loss
|
|
|
|
|
—
|
|
|
2,670
|
|
|
—
|
|
|
2,670
|
|
|
—
|
|
|
EBITDA (as adjusted)
|
|
|
|
|
$
|
17,481
|
|
|
$
|
22,320
|
|
|
$
|
20,901
|
|
|
$
|
74,346
|
|
|
$
|
95,338
|
|
|
Stock compensation expense
|
|
|
|
|
1,315
|
|
|
1,791
|
|
|
1,791
|
|
|
7,712
|
|
|
9,296
|
|
|
Adjusted EBITDA (as adjusted)
|
|
|
|
|
$
|
18,796
|
|
|
$
|
24,111
|
|
|
$
|
22,692
|
|
|
$
|
82,058
|
|
|
$
|
104,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 fourth quarter of Fiscal
2013, third quarter of Fiscal 2013, fourth quarter of Fiscal 2012 and
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:
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
4Q12
|
|
FY13
|
|
FY12
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
$
|
204,505
|
|
|
$
|
215,650
|
|
|
$
|
219,867
|
|
|
$
|
862,957
|
|
|
$
|
943,717
|
|
|
Europe
|
|
|
|
|
24,619
|
|
|
26,488
|
|
|
25,476
|
|
|
97,114
|
|
|
105,492
|
|
|
All Other
|
|
|
|
|
8,575
|
|
|
9,951
|
|
|
10,649
|
|
|
37,715
|
|
|
38,319
|
|
|
Total
|
|
|
|
|
$
|
237,699
|
|
|
$
|
252,089
|
|
|
$
|
255,992
|
|
|
$
|
997,786
|
|
|
$
|
1,087,528
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
$
|
11,142
|
|
|
$
|
14,900
|
|
|
$
|
12,744
|
|
|
$
|
47,413
|
|
|
$
|
(214,448
|
)
|
|
% of North America revenues
|
|
|
|
|
5.4
|
%
|
|
6.9
|
%
|
|
5.8
|
%
|
|
5.5
|
%
|
|
(22.7
|
)%
|
|
Europe
|
|
|
|
|
$
|
1,182
|
|
|
$
|
1,848
|
|
|
$
|
1,834
|
|
|
$
|
5,191
|
|
|
$
|
(30,347
|
)
|
|
% of Europe revenues
|
|
|
|
|
4.8
|
%
|
|
7.0
|
%
|
|
7.2
|
%
|
|
5.3
|
%
|
|
(28.8
|
)%
|
|
All Other
|
|
|
|
|
$
|
389
|
|
|
$
|
964
|
|
|
$
|
1,814
|
|
|
$
|
3,665
|
|
|
$
|
5,122
|
|
|
% of All Other revenues
|
|
|
|
|
4.5
|
%
|
|
9.7
|
%
|
|
17.0
|
%
|
|
9.7
|
%
|
|
13.4
|
%
|
|
Total
|
|
|
|
|
$
|
12,713
|
|
|
$
|
17,712
|
|
|
$
|
16,392
|
|
|
$
|
56,269
|
|
|
$
|
(239,673
|
)
|
|
% of Total revenues
|
|
|
|
|
5.3
|
%
|
|
7.0
|
%
|
|
6.4
|
%
|
|
5.6
|
%
|
|
(22.0
|
)%
|
|
Reconciling items (pre-tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
$
|
5,116
|
|
|
$
|
4,386
|
|
|
$
|
3,530
|
|
|
$
|
19,978
|
|
|
$
|
290,112
|
|
|
Europe
|
|
|
|
|
765
|
|
|
523
|
|
|
—
|
|
|
1,756
|
|
|
40,665
|
|
|
All Other
|
|
|
|
|
406
|
|
|
5
|
|
|
—
|
|
|
424
|
|
|
—
|
|
|
Total
|
|
|
|
|
$
|
6,287
|
|
|
$
|
4,914
|
|
|
$
|
3,530
|
|
|
$
|
22,158
|
|
|
$
|
330,777
|
|
|
Adjusted operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
$
|
16,258
|
|
|
$
|
19,286
|
|
|
$
|
16,274
|
|
|
$
|
67,391
|
|
|
$
|
75,664
|
|
|
% of North America revenues
|
|
|
|
|
7.9
|
%
|
|
8.9
|
%
|
|
7.4
|
%
|
|
7.8
|
%
|
|
8.0
|
%
|
|
Europe
|
|
|
|
|
$
|
1,947
|
|
|
$
|
2,371
|
|
|
$
|
1,834
|
|
|
$
|
6,947
|
|
|
$
|
10,318
|
|
|
% of Europe revenues
|
|
|
|
|
7.9
|
%
|
|
9.0
|
%
|
|
7.2
|
%
|
|
7.2
|
%
|
|
9.8
|
%
|
|
All Other
|
|
|
|
|
$
|
795
|
|
|
$
|
969
|
|
|
$
|
1,814
|
|
|
$
|
4,089
|
|
|
$
|
5,122
|
|
|
% of All Other revenues
|
|
|
|
|
9.3
|
%
|
|
9.7
|
%
|
|
17.0
|
%
|
|
10.8
|
%
|
|
13.4
|
%
|
|
Total
|
|
|
|
|
$
|
19,000
|
|
|
$
|
22,626
|
|
|
$
|
19,922
|
|
|
$
|
78,427
|
|
|
$
|
91,104
|
|
|
% of Total revenues
|
|
|
|
|
8.0
|
%
|
|
9.0
|
%
|
|
7.8
|
%
|
|
7.9
|
%
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
4Q12
|
|
FY13
|
|
FY12
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Infrastructure
|
|
|
|
|
$
|
57,526
|
|
|
$
|
62,664
|
|
|
$
|
60,159
|
|
|
$
|
243,711
|
|
|
$
|
247,157
|
|
|
Voice Communications
|
|
|
|
|
135,961
|
|
|
142,571
|
|
|
146,620
|
|
|
572,371
|
|
|
641,731
|
|
|
Technology Products
|
|
|
|
|
44,212
|
|
|
46,854
|
|
|
49,213
|
|
|
181,704
|
|
|
198,640
|
|
|
Total
|
|
|
|
|
$
|
237,699
|
|
|
$
|
252,089
|
|
|
$
|
255,992
|
|
|
$
|
997,786
|
|
|
$
|
1,087,528
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data Infrastructure
|
|
|
|
|
$
|
14,938
|
|
|
$
|
16,556
|
|
|
$
|
15,922
|
|
|
$
|
63,370
|
|
|
$
|
62,032
|
|
|
% of Data Infrastructure revenues
|
|
|
|
|
26.0
|
%
|
|
26.4
|
%
|
|
26.5
|
%
|
|
26.0
|
%
|
|
25.1
|
%
|
|
Voice Communications
|
|
|
|
|
$
|
43,909
|
|
|
$
|
45,057
|
|
|
$
|
45,041
|
|
|
$
|
176,057
|
|
|
$
|
196,279
|
|
|
% of Voice Communications revenues
|
|
|
|
|
32.3
|
%
|
|
31.6
|
%
|
|
30.7
|
%
|
|
30.8
|
%
|
|
30.6
|
%
|
|
Technology Products
|
|
|
|
|
$
|
20,023
|
|
|
$
|
20,119
|
|
|
$
|
21,773
|
|
|
$
|
80,503
|
|
|
$
|
88,185
|
|
|
% of Technology Products revenues
|
|
|
|
|
45.3
|
%
|
|
42.9
|
%
|
|
44.2
|
%
|
|
44.3
|
%
|
|
44.4
|
%
|
|
Total
|
|
|
|
|
$
|
78,870
|
|
|
$
|
81,732
|
|
|
$
|
82,736
|
|
|
$
|
319,930
|
|
|
$
|
346,496
|
|
|
% of Total revenues
|
|
|
|
|
33.2
|
%
|
|
32.4
|
%
|
|
32.3
|
%
|
|
32.1
|
%
|
|
31.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 4Q13 to 4Q12 and FY13 to FY12) or
December 30, 2012 (for comparison of 4Q13 to 3Q13) as shown below.
Information on quarterly revenues on a same-office basis compared to the
same period last year is presented below:
|
|
|
|
|
|
4Q13
|
|
4Q12
|
|
% Change
|
|
Reported revenues
|
|
|
|
|
$
|
237,699
|
|
|
$
|
255,992
|
|
|
(7
|
)%
|
|
Less revenue from Data Infrastructure offices added since 4/1/11
(1Q12)
|
|
|
|
|
(5,935
|
)
|
|
(6,025
|
)
|
|
|
|
Less revenue from Voice Communications offices added since 4/1/11
(1Q12)
|
|
|
|
|
(5,663
|
)
|
|
(4,996
|
)
|
|
|
|
Reported revenues on same-office basis
|
|
|
|
|
$
|
226,101
|
|
|
$
|
244,971
|
|
|
(8
|
)%
|
|
Foreign currency impact - Data Infrastructure
|
|
|
|
|
(73
|
)
|
|
—
|
|
|
|
|
Foreign currency impact - Voice Communications
|
|
|
|
|
(35
|
)
|
|
—
|
|
|
|
|
Foreign currency impact - Technology Products
|
|
|
|
|
350
|
|
|
—
|
|
|
|
|
Revenues on same-office basis (excluding foreign currency impact)
|
|
|
|
|
$
|
226,343
|
|
|
$
|
244,971
|
|
|
(8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information on quarterly revenues on a same-office basis compared to the
sequential quarter is presented below:
|
|
|
|
|
|
4Q13
|
|
3Q13
|
|
% Change
|
|
Reported revenues
|
|
|
|
|
$
|
237,699
|
|
|
$
|
252,089
|
|
|
(6
|
)%
|
|
Less revenue from Data Infrastructure offices added since 12/30/12
(3Q13)
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
Less revenue from Voice Communications offices added since 12/30/12
(3Q13)
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
Reported revenues on same-office basis
|
|
|
|
|
$
|
237,699
|
|
|
$
|
252,089
|
|
|
(6
|
)%
|
|
Foreign currency impact - Data Infrastructure
|
|
|
|
|
24
|
|
|
—
|
|
|
|
|
Foreign currency impact - Voice Communications
|
|
|
|
|
8
|
|
|
—
|
|
|
|
|
Foreign currency impact - Technology Products
|
|
|
|
|
274
|
|
|
—
|
|
|
|
|
Revenues on same-office basis (excluding foreign currency impact)
|
|
|
|
|
$
|
238,005
|
|
|
$
|
252,089
|
|
|
(6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information on year-to-date revenues on a same-office basis compared to
the same period last year is presented below:
|
|
|
|
|
|
FY13
|
|
FY12
|
|
% Change
|
|
Reported revenues
|
|
|
|
|
$
|
997,786
|
|
|
$
|
1,087,528
|
|
|
(8
|
)%
|
|
Less revenue from Data Infrastructure offices added since 4/1/11
(1Q12)
|
|
|
|
|
(30,107
|
)
|
|
(6,025
|
)
|
|
|
|
Less revenue from Voice Communications offices added since 4/1/11
(1Q12)
|
|
|
|
|
(26,540
|
)
|
|
(25,428
|
)
|
|
|
|
Reported revenues on same-office basis
|
|
|
|
|
$
|
941,139
|
|
|
$
|
1,056,075
|
|
|
(11
|
)%
|
|
Foreign currency impact - Data Infrastructure
|
|
|
|
|
1,263
|
|
|
—
|
|
|
|
|
Foreign currency impact - Voice Communications
|
|
|
|
|
79
|
|
|
—
|
|
|
|
|
Foreign currency impact - Technology Products
|
|
|
|
|
3,746
|
|
|
—
|
|
|
|
|
Revenues on same-office basis (excluding foreign currency impact)
|
|
|
|
|
$
|
946,227
|
|
|
$
|
1,056,075
|
|
|
(10
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Balance Sheet ratios and Other Information
Information
on certain balance sheet ratios, backlog and headcount is presented
below:
|
|
|
|
|
|
4Q13
|
|
|
3Q13
|
|
|
4Q12
|
|
Accounts receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross accounts receivable
|
|
|
|
|
$
|
159,267
|
|
|
|
|
|
$
|
164,870
|
|
|
|
|
|
$
|
170,161
|
|
|
|
|
Reserve $ / %
|
|
|
|
|
6,300
|
|
|
4.0%
|
|
|
6,302
|
|
|
3.8%
|
|
|
6,273
|
|
|
3.7%
|
|
Net accounts receivable
|
|
|
|
|
$
|
152,967
|
|
|
|
|
|
$
|
158,568
|
|
|
|
|
|
$
|
163,888
|
|
|
|
|
Days sales outstanding
|
|
|
|
|
54 days
|
|
|
|
|
|
53 days
|
|
|
|
|
|
52 days
|
|
|
|
|
Aggregate days sales outstanding
|
|
|
|
|
90 days
|
|
|
|
|
|
87 days
|
|
|
|
|
|
80 days
|
|
|
|
|
Inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross inventory
|
|
|
|
|
$
|
73,509
|
|
|
|
|
|
$
|
75,315
|
|
|
|
|
|
$
|
75,856
|
|
|
|
|
Reserve $ / %
|
|
|
|
|
18,040
|
|
|
24.5%
|
|
|
19,050
|
|
|
25.3%
|
|
|
18,900
|
|
|
24.9%
|
|
Net inventory
|
|
|
|
|
$
|
55,469
|
|
|
|
|
|
$
|
56,265
|
|
|
|
|
|
$
|
56,956
|
|
|
|
|
Net inventory turns
|
|
|
|
|
8.5x
|
|
|
|
|
|
9.1x
|
|
|
|
|
|
8.9x
|
|
|
|
|
Six-month order backlog
|
|
|
|
|
$
|
201,362
|
|
|
|
|
|
$
|
187,606
|
|
|
|
|
|
$
|
198,751
|
|
|
|
|
Team members
|
|
|
|
|
3,900
|
|
|
|
|
|
4,027
|
|
|
|
|
|
4,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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