Black Box Corporation (NASDAQ:BBOX), a leading communications system
integrator dedicated to designing, sourcing, implementing and
maintaining today's complex communications solutions, today reported
results for the third quarter of Fiscal 2014 and nine-month period ended
December 28, 2013.
3Q14 Results
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Revenues were $239.7 million, down 5% from $252.1 million for the same
period last year and down 3% from $246.8 million in the sequential
period.
-
Provision for income taxes was $2.5 million (27.5% effective rate),
down 52% from $5.2 million (38.0% effective rate) for the same period
last year and down 55% from $5.7 million (50.3% effective rate) in the
sequential period. The decrease in the effective tax rate is due to a
decrease in uncertain income tax positions (including interest and
penalties) and the benefit associated with the Fiscal 2013 federal
return to provision reconciliation.
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Net income was $6.7 million, down 22% from $8.5 million for the same
period last year and up 19% from $5.6 million in the sequential period.
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Diluted EPS was $0.42, down 19% from $0.52 for the same period last
year and up 20% from $0.35 in the sequential period.
-
Operating net income* was $7.7 million, down 41% from $13.0 million
for the same period last year and down 20% from $9.6 million in the
sequential period.
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Operating EPS* was $0.49, down 38% from $0.79 for the same period last
year and down 18% from $0.60 in the sequential period.
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Cash flow used for operations was $1.6 million compared to cash
provided by operations of $16.3 million for the same period last year
and $8.9 million in the sequential period.
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We returned $7.4 million to our shareholders by repurchasing $6.0
million of common stock and paying $1.4 million in dividends. On
January 27, 2014, our Board of Directors approved an additional 1.0
million shares for repurchase.
3QYTD14 Results
-
Revenues were $733.4 million, down 4% from $760.1 million for the same
period last year.
-
Provision for income taxes was $12.7 million (39.9% effective rate),
down 4% from $13.2 million (38.0% effective rate) for the same period
last year. The increase in the effective tax rate is due to the
write-off of certain deferred tax assets related to equity awards
partially offset by a decrease in uncertain tax positions (including
interest and penalties) and the benefit associated with the Fiscal
2013 federal return to provision reconciliation.
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Net income was $19.1 million, down 11% from $21.6 million for the same
period last year.
-
Diluted EPS was $1.20, down 6% from $1.28 for the same period last
year.
-
Operating net income* was $26.1 million, down 23% from $33.6 million
for the same period last year.
-
Operating EPS* was $1.63, down 18% from $1.99 for the same period last
year.
-
Cash flow provided by operations was $27.9 million, down 9% from $30.7
million for the same period last year.
-
We returned $23.0 million to our shareholders by repurchasing $18.8
million of common stock and paying $4.2 million in dividends.
* 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.
Commenting on the third quarter of Fiscal 2014 results, Michael
McAndrew, President and Chief Executive Officer, said, "Our third
quarter results were consistent with the expectations set last quarter.
We continue to focus our efforts on investing in initiatives that will
drive long-term growth and generate a return on capital. Our strong
balance sheet and commitment to build new revenue generating programs
provide the basis for our continued transformation."
Guidance
For the fourth quarter of Fiscal 2014, the Company is targeting:
-
Revenues in the range of $230 million to $235 million.
-
Operating earnings per share in the range of $0.42 to $0.47.
For Fiscal 2014, the Company is targeting:
-
Revenues in the range of $963 million to $968 million.
-
Operating earnings per share in the range of $2.05 to $2.10.
Included in these targets is an effective tax rate of 39.5%. These
targets exclude intangibles amortization, restructuring expense, the
joint venture investment loss 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.
Earnings Conference Call
The Company will conduct a conference call beginning at 5:00 p.m.
Eastern Standard Time today, January 28, 2014. 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 314588. 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.
About Black Box
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, 2013. 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
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CONDENSED CONSOLIDATED BALANCE SHEETS
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In millions and may not foot due to rounding
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December 28, 2013
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March 31, 2013
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Assets
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Cash and cash equivalents
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$
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25.6
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$
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30.7
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Accounts receivable, net
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167.9
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153.0
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Inventories, net
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52.7
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55.5
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Costs/estimated earnings in excess of billings on uncompleted
contracts
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91.9
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101.5
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Other assets
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26.2
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26.1
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Total current assets
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364.3
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366.7
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Property, plant and equipment, net
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28.8
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27.7
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Goodwill, net
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347.1
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345.4
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Intangibles, net
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101.3
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110.7
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Other assets
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20.5
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27.5
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Total assets
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$
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862.0
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$
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878.0
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Liabilities
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Accounts payable
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$
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60.3
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$
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66.2
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Accrued compensation and benefits
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23.2
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25.2
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Deferred revenue
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34.0
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33.9
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Billings in excess of costs/estimated earnings on uncompleted
contracts
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15.6
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13.4
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Income taxes
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3.8
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6.7
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Other liabilities
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35.3
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37.1
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Total current liabilities
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172.2
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182.5
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Long-term debt
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179.3
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187.6
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Other liabilities
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23.0
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25.7
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Total liabilities
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$
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374.4
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$
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395.8
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Stockholders’ equity
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Common stock
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$
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—
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$
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—
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Additional paid-in capital
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491.4
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486.1
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Retained earnings
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385.6
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370.8
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Accumulated other comprehensive income
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5.3
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1.5
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Treasury stock, at cost
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(394.9
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)
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(376.1
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)
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Total stockholders’ equity
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$
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487.5
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$
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482.2
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Total liabilities and stockholders’ equity
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$
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862.0
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$
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878.0
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BLACK BOX CORPORATION
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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In millions, except per share amounts and may not foot due to
rounding
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3Q14
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2Q14
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3Q13
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3QYTD14
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3QYTD13
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Revenues
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Products
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$
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44.5
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$
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43.2
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$
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48.1
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$
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135.9
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$
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141.1
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Services
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195.2
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203.6
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204.0
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597.5
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619.0
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Total
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239.7
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246.8
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252.1
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733.4
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760.1
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Cost of sales
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Products
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25.8
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24.2
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27.4
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78.5
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78.9
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Services
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140.2
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145.4
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143.0
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427.0
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440.1
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Total
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165.9
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169.7
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170.4
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505.5
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519.0
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Gross profit
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73.8
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77.1
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81.7
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227.9
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241.1
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Selling, general & administrative expenses
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60.4
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60.5
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60.5
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182.1
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187.1
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Intangibles amortization
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2.9
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3.1
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|
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3.5
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9.3
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10.4
|
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Operating income
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|
|
10.5
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13.5
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17.7
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36.5
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|
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43.6
|
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Interest expense (income), net
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1.2
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1.4
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1.1
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|
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3.5
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5.0
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Other expenses (income), net
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|
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0.1
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|
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0.9
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|
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2.8
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1.1
|
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|
|
3.8
|
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Income before provision for income taxes
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|
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9.2
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|
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11.2
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|
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13.7
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31.8
|
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|
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34.8
|
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Provision for income taxes
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|
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2.5
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|
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5.7
|
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|
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5.2
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12.7
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|
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13.2
|
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Net income
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$
|
6.7
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$
|
5.6
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$
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8.5
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$
|
19.1
|
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$
|
21.6
|
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Earnings per common share
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Basic
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$
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0.42
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$
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0.35
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$
|
0.52
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$
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1.20
|
|
|
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$
|
1.29
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Diluted
|
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|
|
$
|
0.42
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|
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$
|
0.35
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|
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$
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0.52
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$
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1.20
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$
|
1.28
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Weighted-average common shares outstanding
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Basic
|
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15.8
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|
|
16.0
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16.4
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|
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15.9
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|
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16.8
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Diluted
|
|
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|
15.9
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|
16.0
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16.5
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16.0
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16.9
|
|
Dividends per share
|
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$
|
0.09
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$
|
0.09
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$
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0.08
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|
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$
|
0.27
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|
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$
|
0.24
|
|
|
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|
|
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|
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BLACK BOX CORPORATION
|
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
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|
|
|
|
|
|
|
|
|
|
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In millions and may not foot due to rounding
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|
|
|
3Q14
|
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|
|
2Q14
|
|
|
|
3Q13
|
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|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
Operating Activities
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income
|
|
|
|
$
|
6.7
|
|
|
|
|
$
|
5.6
|
|
|
|
|
$
|
8.5
|
|
|
|
|
$
|
19.1
|
|
|
|
|
$
|
21.6
|
|
|
Adjustments to reconcile net income to net cash provided by (used
for) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Intangibles amortization and depreciation
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|
|
4.6
|
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4.7
|
|
|
|
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4.8
|
|
|
|
|
13.9
|
|
|
|
|
14.4
|
|
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Loss (gain) on sale of property
|
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|
|
0.1
|
|
|
|
|
—
|
|
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|
|
—
|
|
|
|
|
0.1
|
|
|
|
|
(0.1
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)
|
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Deferred taxes
|
|
|
|
0.4
|
|
|
|
|
2.5
|
|
|
|
|
0.9
|
|
|
|
|
5.0
|
|
|
|
|
2.9
|
|
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Stock compensation expense
|
|
|
|
1.5
|
|
|
|
|
1.5
|
|
|
|
|
1.8
|
|
|
|
|
5.5
|
|
|
|
|
6.4
|
|
|
Change in fair value of interest-rate swaps
|
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|
|
(0.2
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)
|
|
|
|
—
|
|
|
|
|
(0.3
|
)
|
|
|
|
(0.6
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)
|
|
|
|
0.9
|
|
|
Joint venture investment loss
|
|
|
|
—
|
|
|
|
|
0.8
|
|
|
|
|
2.7
|
|
|
|
|
0.8
|
|
|
|
|
2.7
|
|
|
Changes in operating assets and liabilities (net of acquisitions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Accounts receivable, net
|
|
|
|
(19.2
|
)
|
|
|
|
(2.6
|
)
|
|
|
|
(5.3
|
)
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|
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(14.2
|
)
|
|
|
|
5.4
|
|
|
Inventories, net
|
|
|
|
(1.1
|
)
|
|
|
|
2.9
|
|
|
|
|
0.4
|
|
|
|
|
2.8
|
|
|
|
|
0.7
|
|
|
Costs/estimated earnings in excess of billings on uncompleted
contracts
|
|
|
|
12.1
|
|
|
|
|
(6.7
|
)
|
|
|
|
0.1
|
|
|
|
|
9.7
|
|
|
|
|
(22.7
|
)
|
|
All other assets
|
|
|
|
(1.0
|
)
|
|
|
|
2.4
|
|
|
|
|
0.6
|
|
|
|
|
1.2
|
|
|
|
|
1.4
|
|
|
Billings in excess of costs/estimated earnings on uncompleted
contracts
|
|
|
|
0.9
|
|
|
|
|
(1.1
|
)
|
|
|
|
(0.3
|
)
|
|
|
|
2.2
|
|
|
|
|
3.9
|
|
|
All other liabilities
|
|
|
|
(6.4
|
)
|
|
|
|
(1.0
|
)
|
|
|
|
2.4
|
|
|
|
|
(17.6
|
)
|
|
|
|
(6.6
|
)
|
|
Net cash provided by (used for) operating activities
|
|
|
|
$
|
(1.6
|
)
|
|
|
|
$
|
8.9
|
|
|
|
|
$
|
16.3
|
|
|
|
|
$
|
27.9
|
|
|
|
|
$
|
30.7
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
$
|
(1.5
|
)
|
|
|
|
$
|
(2.1
|
)
|
|
|
|
$
|
(1.2
|
)
|
|
|
|
$
|
(5.5
|
)
|
|
|
|
$
|
(4.1
|
)
|
|
Capital disposals
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
0.1
|
|
|
|
|
—
|
|
|
|
|
0.2
|
|
|
Acquisition of businesses (payments)/recoveries
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Prior merger-related (payments)/recoveries
|
|
|
|
—
|
|
|
|
|
(0.8
|
)
|
|
|
|
(0.2
|
)
|
|
|
|
(0.8
|
)
|
|
|
|
(2.4
|
)
|
|
Net cash provided by (used for) investing activities
|
|
|
|
$
|
(1.5
|
)
|
|
|
|
$
|
(2.8
|
)
|
|
|
|
$
|
(1.3
|
)
|
|
|
|
$
|
(6.3
|
)
|
|
|
|
$
|
(6.2
|
)
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds (repayments) from long-term debt
|
|
|
|
$
|
6.2
|
|
|
|
|
$
|
(5.3
|
)
|
|
|
|
$
|
1.2
|
|
|
|
|
$
|
(8.5
|
)
|
|
|
|
$
|
11.9
|
|
|
Proceeds (repayments) from short-term debt
|
|
|
|
2.9
|
|
|
|
|
1.2
|
|
|
|
|
(1.8
|
)
|
|
|
|
4.0
|
|
|
|
|
5.4
|
|
|
Deferred financing costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Purchase of treasury stock
|
|
|
|
(6.0
|
)
|
|
|
|
(6.0
|
)
|
|
|
|
(5.7
|
)
|
|
|
|
(18.8
|
)
|
|
|
|
(33.0
|
)
|
|
Proceeds from the exercise of stock options
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
Payment of dividends
|
|
|
|
(1.4
|
)
|
|
|
|
(1.4
|
)
|
|
|
|
(1.3
|
)
|
|
|
|
(4.2
|
)
|
|
|
|
(3.9
|
)
|
|
Increase (decrease) in cash overdrafts
|
|
|
|
(0.5
|
)
|
|
|
|
(0.2
|
)
|
|
|
|
(3.8
|
)
|
|
|
|
(0.7
|
)
|
|
|
|
1.9
|
|
|
Net cash provided by (used for) financing activities
|
|
|
|
$
|
1.2
|
|
|
|
|
$
|
(10.7
|
)
|
|
|
|
$
|
(11.3
|
)
|
|
|
|
$
|
(27.2
|
)
|
|
|
|
$
|
(17.7
|
)
|
|
Foreign currency exchange impact on cash
|
|
|
|
$
|
0.6
|
|
|
|
|
$
|
(0.1
|
)
|
|
|
|
$
|
0.3
|
|
|
|
|
$
|
0.4
|
|
|
|
|
$
|
0.2
|
|
|
Increase/(decrease) in cash and cash equivalents
|
|
|
|
$
|
(1.2
|
)
|
|
|
|
$
|
(4.7
|
)
|
|
|
|
$
|
4.0
|
|
|
|
|
$
|
(5.1
|
)
|
|
|
|
$
|
7.0
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
26.8
|
|
|
|
|
31.6
|
|
|
|
|
25.5
|
|
|
|
|
30.7
|
|
|
|
|
22.4
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
25.6
|
|
|
|
|
$
|
26.8
|
|
|
|
|
$
|
29.5
|
|
|
|
|
$
|
25.6
|
|
|
|
|
$
|
29.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
As a supplement to United States Generally Accepted Accounting
Principles ("GAAP"), the Company provides non-GAAP financial measures
such as operating income before provision for income taxes ("EBIT"),
operating net income, operating earnings per share ("EPS"), same-office
revenues, adjusted operating income, Earnings Before Interest, Taxes,
Depreciation and Amortization ("EBITDA"), Adjusted EBITDA and free cash
flow to illustrate the Company's operational performance. These 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. However,
each of the amounts included in the calculation of non-GAAP financial
measures are computed in accordance with GAAP. See below for
reconciliations to the most directly comparable GAAP financial measures.
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.
Non-GAAP financial measures are not in accordance with, or an
alternative for, GAAP financial measures. The Company's non-GAAP
financial measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures, and should be read
only in conjunction with the Company's consolidated financial statements
prepared in accordance with GAAP.
Operating EBIT, operating net income and operating EPS
Management believes that operating EBIT, defined by the Company as net
income plus provision for income taxes and adjustments, operating net
income, defined by the Company as operating EBIT 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.
Adjustments include intangibles amortization, the change in fair value
of the interest-rate swaps and the joint venture investment loss (FY14
loss relates to the write-off of certain non-operating items due to the
expected divestiture of our non-controlling interest in Genesis Networks
Integration Services, LLC. ("GNIS") while the FY13 loss relates to the
expected divestiture of our non-controlling interest in GNIS), each of
which are non-cash charges, and restructuring, which is a cash charge.
A reconciliation of Net income to operating EBIT and Operating net
income is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions and may not foot due to rounding
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
3Q13
|
|
|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
Net income
|
|
|
|
$
|
6.7
|
|
|
|
|
$
|
5.6
|
|
|
|
|
$
|
8.5
|
|
|
|
|
$
|
19.1
|
|
|
|
|
$
|
21.6
|
|
|
Provision for income taxes
|
|
|
|
2.5
|
|
|
|
|
5.7
|
|
|
|
|
5.2
|
|
|
|
|
12.7
|
|
|
|
|
13.2
|
|
|
Effective tax rate (1)
|
|
|
|
27.5
|
%
|
|
|
|
50.3
|
%
|
|
|
|
38.0
|
%
|
|
|
|
39.9
|
%
|
|
|
|
38.0
|
%
|
|
Income before provision for income taxes
|
|
|
|
$
|
9.2
|
|
|
|
|
$
|
11.2
|
|
|
|
|
$
|
13.7
|
|
|
|
|
$
|
31.8
|
|
|
|
|
$
|
34.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible amortization
|
|
|
|
$
|
2.9
|
|
|
|
|
$
|
3.1
|
|
|
|
|
$
|
3.5
|
|
|
|
|
$
|
9.3
|
|
|
|
|
$
|
10.4
|
|
|
Change in fair value of interest-rate swaps
|
|
|
|
(0.2
|
)
|
|
|
|
—
|
|
|
|
|
(0.3
|
)
|
|
|
|
(0.6
|
)
|
|
|
|
0.9
|
|
|
Restructuring expense
|
|
|
|
0.8
|
|
|
|
|
0.7
|
|
|
|
|
1.4
|
|
|
|
|
1.7
|
|
|
|
|
5.5
|
|
|
Joint venture investment loss
|
|
|
|
—
|
|
|
|
|
0.8
|
|
|
|
|
2.7
|
|
|
|
|
0.8
|
|
|
|
|
2.7
|
|
|
Total pre-tax adjustments
|
|
|
|
$
|
3.5
|
|
|
|
|
$
|
4.6
|
|
|
|
|
$
|
7.3
|
|
|
|
|
$
|
11.2
|
|
|
|
|
$
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EBIT
|
|
|
|
$
|
12.8
|
|
|
|
|
$
|
15.9
|
|
|
|
|
$
|
21.0
|
|
|
|
|
$
|
43.1
|
|
|
|
|
$
|
54.2
|
|
|
Operational effective tax rate
|
|
|
|
39.5
|
%
|
|
|
|
39.5
|
%
|
|
|
|
38.0
|
%
|
|
|
|
39.5
|
%
|
|
|
|
38.0
|
%
|
|
Operational income taxes (2)
|
|
|
|
5.0
|
|
|
|
|
6.3
|
|
|
|
|
8.0
|
|
|
|
|
17.0
|
|
|
|
|
20.6
|
|
|
Operating net income
|
|
|
|
$
|
7.7
|
|
|
|
|
$
|
9.6
|
|
|
|
|
$
|
13.0
|
|
|
|
|
$
|
26.1
|
|
|
|
|
$
|
33.6
|
|
(1) The decrease in the effective tax rate during 3Q14 and the increase
in the effective tax rate during 3QYTD14 relative to 3Q13 and 3QYTD13 is
due to the write-off of certain deferred tax assets related to equity
awards partially offset by a decrease in uncertain income tax positions
(including interest and penalties) and the benefit associated with the
Fiscal 2013 federal return to provision reconciliation.
(2) The effective tax rate used to determine operational income taxes is
based on the Company's projected full-year ordinary income tax expense
and the projected full-year impact of certain discreet tax items.
A reconciliation of diluted EPS to operating EPS is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
3Q13
|
|
|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
Diluted EPS
|
|
|
|
$
|
0.42
|
|
|
|
|
$
|
0.35
|
|
|
|
|
$
|
0.52
|
|
|
|
|
$
|
1.20
|
|
|
|
|
$
|
1.28
|
|
EPS impact *
|
|
|
|
0.07
|
|
|
|
|
0.25
|
|
|
|
|
0.27
|
|
|
|
|
0.43
|
|
|
|
|
0.71
|
|
Operating EPS
|
|
|
|
$
|
0.49
|
|
|
|
|
$
|
0.60
|
|
|
|
|
$
|
0.79
|
|
|
|
|
$
|
1.63
|
|
|
|
|
$
|
1.99
|
* EPS impact is the result of excluding the provision for income taxes
and the adjustments and utilizing an operational effective tax rate.
Same-office revenue comparisons
Management is presented with and reviews revenues on a same-office basis
which excludes the effects of revenues from acquisitions and foreign
currency and enables an investor to assess, in the way Management
assesses, revenues from its core operations.
Information on quarterly revenues on a same-office basis compared to the
same period last year is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions and may not foot due to rounding
|
|
|
|
3Q14
|
|
|
|
3Q13
|
|
|
|
% Change
|
|
Revenues (as reported)
|
|
|
|
$
|
239.7
|
|
|
|
|
$
|
252.1
|
|
|
|
|
(5
|
)%
|
|
Less revenue from offices added since 4/1/12 (1Q13)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
Same-office revenues
|
|
|
|
$
|
239.7
|
|
|
|
|
$
|
252.1
|
|
|
|
|
(5
|
)%
|
|
Foreign currency impact - North America Products
|
|
|
|
0.1
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - North America Services
|
|
|
|
0.2
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - International Products
|
|
|
|
0.2
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - International Services
|
|
|
|
(0.1
|
)
|
|
|
|
—
|
|
|
|
|
|
|
Same-office revenues (excluding foreign currency impact)
|
|
|
|
$
|
240.1
|
|
|
|
|
$
|
252.1
|
|
|
|
|
(5
|
)%
|
Information on quarterly revenues on a same-office basis compared to the
sequential quarter is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions and may not foot due to rounding
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
% Change
|
|
Revenues (as reported)
|
|
|
|
$
|
239.7
|
|
|
|
|
$
|
246.8
|
|
|
|
|
(3
|
)%
|
|
Less revenue from offices added since 6/30/13 (2Q14)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
Same-office revenues
|
|
|
|
$
|
239.7
|
|
|
|
|
$
|
246.8
|
|
|
|
|
(3
|
)%
|
|
Foreign currency impact - North America Products
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - North America Services
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - International Products
|
|
|
|
(0.4
|
)
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - International Services
|
|
|
|
(0.3
|
)
|
|
|
|
—
|
|
|
|
|
|
|
Same-office revenues (excluding foreign currency impact)
|
|
|
|
$
|
239.0
|
|
|
|
|
$
|
246.8
|
|
|
|
|
(3
|
)%
|
Information on year-to-date revenues on a same-office basis compared to
the same period last year is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions and may not foot due to rounding
|
|
|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
|
|
% Change
|
|
Revenues (as reported)
|
|
|
|
$
|
733.4
|
|
|
|
|
$
|
760.1
|
|
|
|
|
(4
|
)%
|
|
Less revenue from offices added since 4/1/12 (1Q13)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
Same-office revenues
|
|
|
|
$
|
733.4
|
|
|
|
|
$
|
760.1
|
|
|
|
|
(4
|
)%
|
|
Foreign currency impact - North America Products
|
|
|
|
0.1
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - North America Services
|
|
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - International Products
|
|
|
|
0.9
|
|
|
|
|
—
|
|
|
|
|
|
|
Foreign currency impact - International Services
|
|
|
|
(0.1
|
)
|
|
|
|
—
|
|
|
|
|
|
|
Same-office revenues (excluding foreign currency impact)
|
|
|
|
$
|
734.8
|
|
|
|
|
$
|
760.1
|
|
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Information
In connection with a new management team and a renewed business
strategy, the Company has realigned its organizational structure which
resulted in new operating segments (North America Products, North
America Services, International Products and International Services) for
the purpose of making operational decisions and assessing financial
performance which was effective, on a prospective basis, beginning on
April 1, 2013. The Company has restated prior period information to
conform to the current year's presentation. Management believes that
Adjusted operating income, defined by the Company as Operating income
plus adjustments, provides investors additional important information to
enable them to assess, in the way Management assesses, the Company's
current and future operations. Adjustments include intangibles
amortization and restructuring expense.
A reconciliation of Operating income to Adjusted operating income (by
segment) is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
3Q13
|
|
|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
In millions and may not foot due to rounding
|
|
|
|
$
|
|
|
% of
Rev
|
|
|
|
$
|
|
|
% of
Rev
|
|
|
|
$
|
|
|
% of
Rev
|
|
|
|
$
|
|
|
% of
Rev
|
|
|
|
$
|
|
|
% of
Rev
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Products
|
|
|
|
$
|
19.5
|
|
|
|
|
|
|
|
$
|
21.6
|
|
|
|
|
|
|
|
$
|
21.3
|
|
|
|
|
|
|
|
$
|
62.2
|
|
|
|
|
|
|
|
$
|
66.7
|
|
|
|
|
|
International Products
|
|
|
|
25.0
|
|
|
|
|
|
|
|
21.6
|
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
|
73.8
|
|
|
|
|
|
|
|
74.4
|
|
|
|
|
|
Total Products
|
|
|
|
$
|
44.5
|
|
|
|
|
|
|
|
$
|
43.2
|
|
|
|
|
|
|
|
$
|
48.1
|
|
|
|
|
|
|
|
$
|
135.9
|
|
|
|
|
|
|
|
$
|
141.1
|
|
|
|
|
|
North America Services
|
|
|
|
$
|
185.8
|
|
|
|
|
|
|
|
$
|
194.5
|
|
|
|
|
|
|
|
$
|
194.3
|
|
|
|
|
|
|
|
$
|
570.0
|
|
|
|
|
|
|
|
$
|
591.8
|
|
|
|
|
|
International Services
|
|
|
|
9.3
|
|
|
|
|
|
|
|
9.1
|
|
|
|
|
|
|
|
9.7
|
|
|
|
|
|
|
|
27.5
|
|
|
|
|
|
|
|
27.3
|
|
|
|
|
|
Total Services
|
|
|
|
$
|
195.2
|
|
|
|
|
|
|
|
$
|
203.6
|
|
|
|
|
|
|
|
$
|
204.0
|
|
|
|
|
|
|
|
$
|
597.5
|
|
|
|
|
|
|
|
$
|
619.0
|
|
|
|
|
|
Total
|
|
|
|
$
|
239.7
|
|
|
|
|
|
|
|
$
|
246.8
|
|
|
|
|
|
|
|
$
|
252.1
|
|
|
|
|
|
|
|
$
|
733.4
|
|
|
|
|
|
|
|
$
|
760.1
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Products
|
|
|
|
$
|
8.0
|
|
|
|
40.8
|
%
|
|
|
|
$
|
9.4
|
|
|
|
43.4
|
%
|
|
|
|
$
|
9.2
|
|
|
|
42.9
|
%
|
|
|
|
$
|
26.3
|
|
|
|
42.2
|
%
|
|
|
|
$
|
29.5
|
|
|
|
44.2
|
%
|
|
International Products
|
|
|
|
10.8
|
|
|
|
43.2
|
%
|
|
|
|
9.6
|
|
|
|
44.3
|
%
|
|
|
|
11.5
|
|
|
|
43.0
|
%
|
|
|
|
31.2
|
|
|
|
42.3
|
%
|
|
|
|
32.7
|
|
|
|
44.0
|
%
|
|
Total Products
|
|
|
|
$
|
18.8
|
|
|
|
42.2
|
%
|
|
|
|
$
|
18.9
|
|
|
|
43.9
|
%
|
|
|
|
$
|
20.7
|
|
|
|
43.0
|
%
|
|
|
|
$
|
57.4
|
|
|
|
42.2
|
%
|
|
|
|
$
|
62.2
|
|
|
|
44.1
|
%
|
|
North America Services
|
|
|
|
$
|
53.1
|
|
|
|
28.6
|
%
|
|
|
|
$
|
56.2
|
|
|
|
28.9
|
%
|
|
|
|
$
|
58.6
|
|
|
|
30.2
|
%
|
|
|
|
$
|
164.5
|
|
|
|
28.9
|
%
|
|
|
|
$
|
171.9
|
|
|
|
29.0
|
%
|
|
International Services
|
|
|
|
1.9
|
|
|
|
20.0
|
%
|
|
|
|
2.0
|
|
|
|
21.6
|
%
|
|
|
|
2.5
|
|
|
|
25.5
|
%
|
|
|
|
6.0
|
|
|
|
21.7
|
%
|
|
|
|
7.0
|
|
|
|
25.6
|
%
|
|
Total Services
|
|
|
|
$
|
55.0
|
|
|
|
28.2
|
%
|
|
|
|
$
|
58.2
|
|
|
|
28.6
|
%
|
|
|
|
$
|
61.1
|
|
|
|
29.9
|
%
|
|
|
|
$
|
170.5
|
|
|
|
28.5
|
%
|
|
|
|
$
|
178.9
|
|
|
|
28.9
|
%
|
|
Total
|
|
|
|
$
|
73.8
|
|
|
|
30.8
|
%
|
|
|
|
$
|
77.1
|
|
|
|
31.2
|
%
|
|
|
|
$
|
81.7
|
|
|
|
32.4
|
%
|
|
|
|
$
|
227.9
|
|
|
|
31.1
|
%
|
|
|
|
$
|
241.1
|
|
|
|
31.7
|
%
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Products
|
|
|
|
$
|
1.1
|
|
|
|
5.8
|
%
|
|
|
|
$
|
2.9
|
|
|
|
13.3
|
%
|
|
|
|
$
|
2.2
|
|
|
|
10.4
|
%
|
|
|
|
$
|
5.1
|
|
|
|
8.2
|
%
|
|
|
|
$
|
7.2
|
|
|
|
10.8
|
%
|
|
International Products
|
|
|
|
1.4
|
|
|
|
5.6
|
%
|
|
|
|
0.9
|
|
|
|
4.3
|
%
|
|
|
|
2.0
|
|
|
|
7.5
|
%
|
|
|
|
4.0
|
|
|
|
5.4
|
%
|
|
|
|
5.5
|
|
|
|
7.3
|
%
|
|
Total Products
|
|
|
|
$
|
2.5
|
|
|
|
5.7
|
%
|
|
|
|
$
|
3.8
|
|
|
|
8.8
|
%
|
|
|
|
$
|
4.2
|
|
|
|
8.8
|
%
|
|
|
|
$
|
9.1
|
|
|
|
6.7
|
%
|
|
|
|
$
|
12.7
|
|
|
|
9.0
|
%
|
|
North America Services
|
|
|
|
$
|
8.3
|
|
|
|
4.4
|
%
|
|
|
|
$
|
9.7
|
|
|
|
5.0
|
%
|
|
|
|
$
|
12.7
|
|
|
|
6.5
|
%
|
|
|
|
$
|
27.4
|
|
|
|
4.8
|
%
|
|
|
|
$
|
29.1
|
|
|
|
4.9
|
%
|
|
International Services
|
|
|
|
(0.3
|
)
|
|
|
(3.2
|
)%
|
|
|
|
0.1
|
|
|
|
0.6
|
%
|
|
|
|
0.8
|
|
|
|
8.2
|
%
|
|
|
|
—
|
|
|
|
0.1
|
%
|
|
|
|
1.8
|
|
|
|
6.7
|
%
|
|
Total Services
|
|
|
|
$
|
8.0
|
|
|
|
4.1
|
%
|
|
|
|
$
|
9.7
|
|
|
|
4.8
|
%
|
|
|
|
$
|
13.5
|
|
|
|
6.6
|
%
|
|
|
|
$
|
27.4
|
|
|
|
4.6
|
%
|
|
|
|
$
|
30.9
|
|
|
|
5.0
|
%
|
|
Total
|
|
|
|
$
|
10.5
|
|
|
|
4.4
|
%
|
|
|
|
$
|
13.5
|
|
|
|
5.5
|
%
|
|
|
|
$
|
17.7
|
|
|
|
7.0
|
%
|
|
|
|
$
|
36.5
|
|
|
|
5.0
|
%
|
|
|
|
$
|
43.6
|
|
|
|
5.7
|
%
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Products
|
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
$
|
0.4
|
|
|
|
|
|
International Products
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.5
|
|
|
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
0.8
|
|
|
|
|
|
Total Products
|
|
|
|
$
|
0.4
|
|
|
|
|
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
$
|
0.5
|
|
|
|
|
|
|
|
$
|
0.5
|
|
|
|
|
|
|
|
$
|
1.2
|
|
|
|
|
|
North America Services
|
|
|
|
$
|
3.3
|
|
|
|
|
|
|
|
$
|
3.7
|
|
|
|
|
|
|
|
$
|
4.4
|
|
|
|
|
|
|
|
$
|
10.4
|
|
|
|
|
|
|
|
$
|
14.4
|
|
|
|
|
|
International Services
|
|
|
|
0.1
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.3
|
|
|
|
|
|
Total Services
|
|
|
|
$
|
3.4
|
|
|
|
|
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
$
|
4.4
|
|
|
|
|
|
|
|
$
|
10.6
|
|
|
|
|
|
|
|
$
|
14.7
|
|
|
|
|
|
Total
|
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
$
|
4.9
|
|
|
|
|
|
|
|
$
|
11.0
|
|
|
|
|
|
|
|
$
|
15.9
|
|
|
|
|
|
Adjusted operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Products
|
|
|
|
$
|
1.3
|
|
|
|
6.6
|
%
|
|
|
|
$
|
2.9
|
|
|
|
13.4
|
%
|
|
|
|
$
|
2.2
|
|
|
|
10.4
|
%
|
|
|
|
$
|
5.3
|
|
|
|
8.5
|
%
|
|
|
|
$
|
7.7
|
|
|
|
11.5
|
%
|
|
International Products
|
|
|
|
1.6
|
|
|
|
6.5
|
%
|
|
|
|
1.0
|
|
|
|
4.6
|
%
|
|
|
|
2.5
|
|
|
|
9.4
|
%
|
|
|
|
4.3
|
|
|
|
5.8
|
%
|
|
|
|
6.2
|
|
|
|
8.4
|
%
|
|
Total Products
|
|
|
|
$
|
2.9
|
|
|
|
6.5
|
%
|
|
|
|
$
|
3.9
|
|
|
|
9.0
|
%
|
|
|
|
$
|
4.7
|
|
|
|
9.9
|
%
|
|
|
|
$
|
9.6
|
|
|
|
7.0
|
%
|
|
|
|
$
|
13.9
|
|
|
|
9.8
|
%
|
|
North America Services
|
|
|
|
$
|
11.5
|
|
|
|
6.2
|
%
|
|
|
|
$
|
13.4
|
|
|
|
6.9
|
%
|
|
|
|
$
|
17.1
|
|
|
|
8.8
|
%
|
|
|
|
$
|
37.7
|
|
|
|
6.6
|
%
|
|
|
|
$
|
43.5
|
|
|
|
7.3
|
%
|
|
International Services
|
|
|
|
(0.2
|
)
|
|
|
(1.9
|
)%
|
|
|
|
0.1
|
|
|
|
1.1
|
%
|
|
|
|
0.8
|
|
|
|
8.5
|
%
|
|
|
|
0.2
|
|
|
|
0.8
|
%
|
|
|
|
2.1
|
|
|
|
7.7
|
%
|
|
Total Services
|
|
|
|
$
|
11.3
|
|
|
|
5.8
|
%
|
|
|
|
$
|
13.5
|
|
|
|
6.6
|
%
|
|
|
|
$
|
17.9
|
|
|
|
8.8
|
%
|
|
|
|
$
|
37.9
|
|
|
|
6.4
|
%
|
|
|
|
$
|
45.6
|
|
|
|
7.4
|
%
|
|
Total
|
|
|
|
$
|
14.3
|
|
|
|
5.9
|
%
|
|
|
|
$
|
17.4
|
|
|
|
7.0
|
%
|
|
|
|
$
|
22.6
|
|
|
|
9.0
|
%
|
|
|
|
$
|
47.5
|
|
|
|
6.5
|
%
|
|
|
|
$
|
59.4
|
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA
Management believes that EBITDA, defined as Net income plus provision
for income taxes, interest, depreciation and amortization, is a
widely-accepted measure of profitability that may be used to measure the
Company's ability to service its debt. Adjusted EBITDA, defined as
EBITDA plus stock compensation expense, may also be used to measure the
Company's ability to service its debt.
A reconciliation of Net income to EBITDA and Adjusted EBITDA is
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions and may not foot due to rounding
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
3Q13
|
|
|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
Net income
|
|
|
|
$
|
6.7
|
|
|
|
|
$
|
5.6
|
|
|
|
|
$
|
8.5
|
|
|
|
|
$
|
19.1
|
|
|
|
|
$
|
21.6
|
|
Provision for income taxes
|
|
|
|
2.5
|
|
|
|
|
5.7
|
|
|
|
|
5.2
|
|
|
|
|
12.7
|
|
|
|
|
13.2
|
|
Interest expense (income), net
|
|
|
|
1.2
|
|
|
|
|
1.4
|
|
|
|
|
1.1
|
|
|
|
|
3.5
|
|
|
|
|
5.0
|
|
Intangibles amortization and depreciation
|
|
|
|
4.6
|
|
|
|
|
4.7
|
|
|
|
|
4.8
|
|
|
|
|
13.9
|
|
|
|
|
14.4
|
|
EBITDA
|
|
|
|
$
|
15.0
|
|
|
|
|
$
|
17.3
|
|
|
|
|
$
|
19.7
|
|
|
|
|
$
|
49.3
|
|
|
|
|
$
|
54.2
|
|
Stock compensation expense
|
|
|
|
1.5
|
|
|
|
|
1.5
|
|
|
|
|
1.8
|
|
|
|
|
5.5
|
|
|
|
|
6.4
|
|
Adjusted EBITDA
|
|
|
|
$
|
16.5
|
|
|
|
|
$
|
18.8
|
|
|
|
|
$
|
21.4
|
|
|
|
|
$
|
54.8
|
|
|
|
|
$
|
60.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
Management believes that free cash flow, defined by the Company as Net
cash provided by (used for) operating activities less net capital
expenditures, plus Proceeds from stock option exercises, plus or minus
Foreign currency exchange impact on cash, is an important measurement of
liquidity as it represents the total cash available to the Company.
A reconciliation of Net cash provided by (used for) operating activities
to free cash flow is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions and may not foot due to rounding
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
3Q13
|
|
|
|
3QYTD14
|
|
|
|
3QYTD13
|
|
Net cash provided by (used for) operating activities
|
|
|
|
$
|
(1.6
|
)
|
|
|
|
$
|
8.9
|
|
|
|
|
$
|
16.3
|
|
|
|
|
$
|
27.9
|
|
|
|
|
$
|
30.7
|
|
|
Net capital expenditures
|
|
|
|
(1.5
|
)
|
|
|
|
(2.1
|
)
|
|
|
|
(1.1
|
)
|
|
|
|
(5.5
|
)
|
|
|
|
(3.9
|
)
|
|
Foreign currency exchange impact on cash
|
|
|
|
0.6
|
|
|
|
|
(0.1
|
)
|
|
|
|
0.3
|
|
|
|
|
0.4
|
|
|
|
|
0.2
|
|
|
Free cash flow before stock option exercises
|
|
|
|
$
|
(2.4
|
)
|
|
|
|
$
|
6.7
|
|
|
|
|
$
|
15.4
|
|
|
|
|
$
|
22.8
|
|
|
|
|
$
|
27.1
|
|
|
Proceeds from the exercise of stock options
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
Free cash flow
|
|
|
|
$
|
(2.4
|
)
|
|
|
|
$
|
7.7
|
|
|
|
|
$
|
15.4
|
|
|
|
|
$
|
23.8
|
|
|
|
|
$
|
27.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Balance Sheet ratios and Other Information
Information on certain balance sheet ratios, backlog and headcount is
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars In millions
|
|
|
|
3Q14
|
|
|
|
2Q14
|
|
|
|
3Q13
|
|
Days sales outstanding
|
|
|
|
61 days
|
|
|
|
49 days
|
|
|
|
53 days
|
|
Aggregate days sales outstanding
|
|
|
|
89 days
|
|
|
|
84 days
|
|
|
|
87 days
|
|
Net inventory turns
|
|
|
|
9.3x
|
|
|
|
9.9x
|
|
|
|
9.1x
|
|
Six-month order backlog
|
|
|
|
$
|
167.5
|
|
|
|
$
|
178.4
|
|
|
|
|
$
|
187.6
|
|
Team members
|
|
|
|
4,067
|
|
|
|
4,020
|
|
|
|
|
4,027
|
|
Net debt
|
|
|
|
$
|
153.9
|
|
|
|
$
|
146.4
|
|
|
|
|
$
|
162.4
|
|
Leverage ratio
|
|
|
|
2.5
|
|
|
|
2.1
|
|
|
|
|
2.2
|
Copyright Business Wire 2014