Zebra Applied sciences Proclaims Fourth-Quarter and Full-12 months 2021 Outcomes

LINCOLNSHIRE, Sick.–(BUSINESS WIRE)–Zebra Applied sciences Company (NASDAQ: ZBRA), an innovator on the fringe of the enterprise with options and companions that allow companies to achieve a efficiency edge, at this time introduced outcomes for the fourth quarter and full yr ended December 31, 2021.

Our group delivered strong fourth quarter outcomes, closing out a document yr of gross sales and profitability. Efficiency was on the excessive finish of our steerage, regardless of an exceptionally difficult provide chain setting, together with premium freight prices that had been greater than our expectations,” stated Anders Gustafsson, Chief Govt Officer of Zebra Applied sciences. “Whereas the availability chain constrains us from totally satisfying buyer demand, we enter the yr with a robust order backlog and a strong pipeline of enterprise, positioning us nicely for worthwhile progress in 2022. The continued alternatives in our vibrant core and growth markets advance our Enterprise Asset Intelligence imaginative and prescient and allow us to extend our long-term natural gross sales progress expectations.”

$ in tens of millions, besides per share quantities

4Q21

 

4Q20

 

Change

 

 

 

FY21

 

FY20

 

Change

Choose reported measures:

 

 

 

 

 

 

 

Web gross sales

$

1,467

 

 

$

1,308

 

 

12.2

%

 

 

 

$

5,627

 

 

$

4,448

 

 

26.5

%

Gross revenue

 

669

 

 

 

618

 

 

8.3

%

 

 

 

 

2,628

 

 

 

2,003

 

 

31.2

%

Gross margin

 

45.6

%

 

 

47.2

%

 

(160) bps

 

 

 

 

46.7

%

 

 

45.0

%

 

170 bps

Web revenue

 

191

 

 

 

199

 

 

(4.0

%)

 

 

 

 

837

 

 

 

504

 

 

66.1

%

Web revenue margin

 

13.0

%

 

 

15.2

%

 

(220) bps

 

 

 

 

14.9

%

 

 

11.3

%

 

360 bps

Web revenue per diluted share

$

3.55

 

 

$

3.70

 

 

(4.1

%)

 

 

 

$

15.52

 

 

$

9.35

 

 

66.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choose Non-GAAP measures:

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted internet gross sales

$

1,467

 

 

$

1,313

 

 

11.7

%

 

 

 

$

5,633

 

 

$

4,455

 

 

26.4

%

Natural internet gross sales progress

 

 

 

 

10.0

%

 

 

 

 

 

 

 

23.2

%

Adjusted gross revenue

 

671

 

 

 

628

 

 

6.8

%

 

 

 

 

2,642

 

 

 

2,022

 

 

30.7

%

Adjusted gross margin

 

45.7

%

 

 

47.8

%

 

(210) bps

 

 

 

 

46.9

%

 

 

45.4

%

 

150 bps

Adjusted EBITDA

 

319

 

 

 

308

 

 

3.6

%

 

 

 

 

1,297

 

 

 

914

 

 

41.9

%

Adjusted EBITDA margin

 

21.7

%

 

 

23.5

%

 

(180) bps

 

 

 

 

23.0

%

 

 

20.5

%

 

250 bps

Non-GAAP internet revenue

$

245

 

 

$

240

 

 

2.1

%

 

 

 

$

995

 

 

$

690

 

 

44.2

%

Non-GAAP earnings per diluted share

$

4.54

 

 

$

4.46

 

 

1.8

%

 

 

 

$

18.45

 

 

$

12.80

 

 

44.1

%

Web gross sales had been $1,467 million within the fourth quarter of 2021 in comparison with $1,308 million within the fourth quarter of 2020. Web gross sales within the Enterprise Visibility & Mobility (“EVM”) section had been $1,023 million within the fourth quarter of 2021 in contrast with $888 million within the fourth quarter of 2020. Asset Intelligence & Monitoring (“AIT”) section internet gross sales had been $444 million within the fourth quarter of 2021 in comparison with $425 million within the prior yr interval. Consolidated natural internet gross sales for the fourth quarter elevated 10.0%. Fourth-quarter year-over-year natural internet gross sales elevated by 13.2% within the EVM section and elevated by 3.1% within the AIT section.

Fourth-quarter 2021 gross revenue was $669 million in comparison with $618 million within the prior yr interval. Gross margin decreased to 45.6% for the fourth quarter of 2021, in comparison with 47.2% within the prior yr interval. This lower was primarily attributable to greater premium freight prices in addition to decrease recoveries of Chinese language import tariffs in comparison with the prior yr, partially offset by greater service and software program margin. Adjusted gross margin was 45.7% within the fourth quarter of 2021, in comparison with 47.8% within the prior yr interval.

Working bills elevated within the fourth quarter of 2021 to $446 million from $387 million within the prior yr interval primarily attributable to just lately acquired companies and better worker incentive-based compensation expense related to improved monetary efficiency. Adjusted working bills elevated within the fourth quarter of 2021 to $370 million from $336 million within the prior yr interval.

Web revenue for the fourth quarter of 2021 was $191 million, or $3.55 per diluted share, in comparison with internet revenue of $199 million, or $3.70 per diluted share, for the fourth quarter of 2020. Non-GAAP internet revenue for the fourth quarter of 2021 elevated to $245 million, or $4.54 per diluted share, in comparison with $240 million, or $4.46 per diluted share, for the prior yr interval.

Adjusted EBITDA for the fourth quarter of 2021 elevated to $319 million, or 21.7% of adjusted internet gross sales, in comparison with $308 million, or 23.5% of adjusted internet gross sales, for the fourth quarter of 2020 attributable to decrease working expense as a share of internet gross sales, partially offset by decrease gross margin.

Stability Sheet and Money Move

As of December 31, 2021, the corporate had money and money equivalents of $332 million and whole debt of $996 million.

For the total yr 2021, the corporate generated $1,069 million of working money stream and incurred capital expenditures of $59 million, leading to free money stream of $1,010 million.

In 2021, the corporate acquired antuit.ai, Fetch Robotics, and Adaptive Imaginative and prescient for $452 million in money and made $34 million in enterprise investments. For the total yr 2021, the corporate had $257 million of internet debt repayments and made money curiosity funds of $32 million. Moreover, the corporate made $57 million of share repurchases in 2021 underneath its current share repurchase authorization.

Outlook

First Quarter 2022

The corporate expects adjusted internet gross sales to extend 1% to three% in comparison with the primary quarter of 2021. This expectation consists of an roughly 1 share level additive affect from acquisitions and overseas forex translation.

Adjusted EBITDA margin is anticipated to be roughly 20% , which incorporates roughly $60 million of premium freight expense. Non-GAAP earnings per diluted share are anticipated to be within the vary of $3.70 to $4.00. This assumes an adjusted efficient tax fee of roughly 18%.

Full 12 months 2022

The Firm expects adjusted internet gross sales to extend 3% to 7% from 2021, which assumes a internet impartial affect from acquisitions and overseas forex translation.

Adjusted EBITDA margin is anticipated to be between 23% and 24%, which features a vary of $140 to $160 million of premium freight expense.

Free money stream is anticipated to be at the least $900 million.

Lengthy-Time period

The Firm is elevating its annualized Natural Web Gross sales Development outlook to five% to 7%, from 4% to five%.

The corporate doesn’t present a reconciliation for non-GAAP estimates on a forward-looking foundation the place it’s unable to offer a significant or correct calculation or estimation of reconciling objects and the data isn’t accessible with out unreasonable effort. That is because of the inherent issue of forecasting the timing or quantity of essentially the most immediately comparable forward-looking GAAP monetary measure as mentioned underneath the “Ahead-Wanting Statements” caption under. This would come with objects that haven’t but occurred, are out of the corporate’s management and/or can’t be moderately predicted, and that may affect diluted internet earnings per share. For a similar causes, the corporate is unable to deal with the possible significance of the unavailable info. Ahead-looking non-GAAP monetary measures offered with out essentially the most immediately comparable GAAP monetary measures could differ materially from the corresponding GAAP monetary measures.

Convention Name Notification

Traders are invited to take heed to a stay webcast of Zebra’s convention name concerning the corporate’s monetary outcomes. The convention name will likely be held at this time, Thursday, Feb. 10, at 7:30 a.m. Central Time (8:30 a.m. Jap Time). To view the webcast, go to the investor relations part of the corporate’s web site at buyers.zebra.com.

About Zebra

Zebra (NASDAQ: ZBRA) empowers organizations to thrive within the on-demand financial system by making each front-line employee and asset on the edge seen, related and totally optimized. With an ecosystem of greater than 10,000 companions throughout greater than 100 nations, Zebra serves clients of all sizes – together with 94% of the Fortune 100 – with an award-winning portfolio of {hardware}, software program, providers and options that digitize and automate workflows. Provide chains are extra dynamic, clients and sufferers are higher served, and employees are extra engaged once they make the most of Zebra improvements that assist them sense, analyze and act in actual time. In 2021, Zebra expanded its industrial automation portfolio with its Fetch Robotics acquisition and elevated its machine imaginative and prescient and AI software program capabilities with the acquisitions of Adaptive Imaginative and prescient and antuit.ai. Zebra is #25 on Newsweek’s inaugural record of America’s Most Liked Workplaces and on Forbes’ record of America’s greatest employers for the fifth yr. Study extra at www.zebra.com or join information alerts. Observe Zebra’s Your Edge weblog, LinkedIn, Twitter and Fb, and take a look at our Story Hub: Zebra Views.

Ahead-Wanting Statements

This press launch comprises forward-looking statements, as outlined by the Non-public Securities Litigation Reform Act of 1995, together with, with out limitation, the statements concerning the corporate’s outlook. Precise outcomes could differ from these expressed or implied within the firm’s forward-looking statements. These statements characterize estimates solely as of the date they had been made. Zebra undertakes no obligation, apart from as could also be required by regulation, to publicly replace or revise any forward-looking statements, whether or not on account of new info, future occasions, modified circumstances or some other motive after the date of this launch.

These forward-looking statements are primarily based on present expectations, forecasts and assumptions and are topic to the dangers and uncertainties inherent in Zebra’s trade, market situations, common home and worldwide financial situations, and different elements. These elements embrace buyer acceptance of Zebra’s choices and opponents’ choices and the potential results of rising applied sciences and modifications in buyer necessities. The impact of worldwide market situations, and the provision of credit score and capital markets volatility could have adversarial results on Zebra, its suppliers and its clients. As well as, pure disasters, man-made disasters, public well being points (together with pandemics), and cybersecurity incidents could have destructive results on our enterprise and outcomes of operations. Our skill to buy enough supplies, components, and parts in addition to our skill to offer providers and software program to satisfy buyer demand might negatively affect our outcomes of operations and buyer relationships. Earnings and profitability could also be affected by Zebra’s skill to regulate manufacturing and working prices. Due to its debt, rates of interest and monetary market situations can also have an effect on outcomes. Overseas trade charges, customs duties and commerce insurance policies could impact monetary outcomes due to the massive share of our worldwide gross sales. The impacts of modifications in overseas and home governmental insurance policies, laws, or legal guidelines, in addition to the result of litigation or tax issues through which Zebra could also be concerned are different elements. The success of integrating acquisitions might additionally have an effect on profitability, reported outcomes and the corporate’s aggressive place in its trade. These and different elements might have an adversarial impact on Zebra’s gross sales, gross revenue margins and outcomes of operations and improve the volatility of our monetary outcomes. When used on this launch and paperwork referenced, the phrases “anticipate,” “consider,” “outlook,” and “anticipate” and comparable expressions, as they relate to the corporate or its administration, are supposed to establish such forward-looking statements, however will not be the unique technique of figuring out these statements. Descriptions of the dangers, uncertainties and different elements that would have an effect on the corporate’s future operations and outcomes might be present in Zebra’s filings with the Securities and Trade Fee, together with the corporate’s most up-to-date Kind 10-Okay and Kind 10-Q.

Use of Non-GAAP Monetary Data

This press launch comprises sure Non-GAAP monetary measures, consisting of “adjusted internet gross sales,” “adjusted gross revenue,” “EBITDA,” “Adjusted EBITDA,” “Non-GAAP internet revenue,” “Non-GAAP earnings per share,” “free money stream,” “natural internet gross sales progress,” and “adjusted working bills.” Administration presents these measures to deal with the on-going operations and believes it’s helpful to buyers as a result of they allow them to carry out significant comparisons of previous and current working outcomes. The corporate believes it’s helpful to current non-GAAP monetary measures, which exclude sure vital objects, as a method to grasp the efficiency of its ongoing operations and the way administration views the enterprise. Please see the “Reconciliation of GAAP to Non-GAAP Monetary Measures” tables and accompanying disclosures on the finish of this press launch for extra detailed info concerning non-GAAP monetary measures herein, together with the objects mirrored in adjusted internet earnings calculations. These measures, nonetheless, shouldn’t be construed as a substitute for some other measure of efficiency decided in accordance with GAAP.

The corporate doesn’t present a reconciliation for non-GAAP estimates on a forward-looking foundation (together with the data underneath “Outlook” above) the place it’s unable to offer a significant or correct calculation or estimation of reconciling objects and the data isn’t accessible with out unreasonable effort. That is because of the inherent issue of forecasting the timing or quantity of assorted objects that haven’t but occurred, are out of the corporate’s management and/or can’t be moderately predicted, and that may affect diluted internet earnings per share, essentially the most immediately comparable forward-looking GAAP monetary measure. For a similar causes, the corporate is unable to deal with the possible significance of the unavailable info. Ahead-looking non-GAAP monetary measures offered with out essentially the most immediately comparable GAAP monetary measures could differ materially from the corresponding GAAP monetary measures.

As a world firm, Zebra’s working outcomes reported in U.S. {dollars} are affected by overseas forex trade fee fluctuations as a result of the underlying foreign currency echange through which the corporate transacts change in worth over time in comparison with the U.S. greenback; accordingly, the corporate presents sure natural progress monetary info, which incorporates impacts of overseas forex translation, to offer a framework to evaluate how the corporate’s companies carried out excluding the affect of overseas forex trade fee fluctuations. Overseas forex affect represents the distinction in outcomes which can be attributable to fluctuations within the forex trade charges used to transform the outcomes for companies the place the purposeful forex isn’t the U.S. greenback. This affect is calculated by translating present interval outcomes on the forex trade charges used within the comparable interval within the prior yr, fairly than the trade charges in impact throughout the present interval. As well as, the corporate excludes the affect of its overseas forex hedging program within the prior yr intervals. The corporate believes these measures must be thought-about a complement to and never in lieu of the corporate’s efficiency measures calculated in accordance with GAAP.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In tens of millions, besides share information)

 

 

December 31,

2021

 

December 31,

2020

Property

 

 

 

Present property:

 

 

 

Money and money equivalents

$

332

 

 

$

168

 

Accounts receivable, internet of allowances for uncertain accounts of $1 million every as of December 31, 2021 and 2020

 

752

 

 

 

508

 

Inventories, internet

 

491

 

 

 

511

 

Revenue tax receivable

 

8

 

 

 

16

 

Pay as you go bills and different present property

 

106

 

 

 

70

 

Complete Present property

 

1,689

 

 

 

1,273

 

Property, plant and tools, internet

 

272

 

 

 

274

 

Proper-of-use lease property

 

131

 

 

 

135

 

Goodwill

 

3,265

 

 

 

2,988

 

Different intangibles, internet

 

469

 

 

 

402

 

Deferred revenue taxes

 

192

 

 

 

139

 

Different long-term property

 

197

 

 

 

164

 

Complete Property

$

6,215

 

 

$

5,375

 

Liabilities and Stockholders’ Fairness

 

 

 

Present liabilities:

 

 

 

Present portion of long-term debt

$

69

 

 

$

364

 

Accounts payable

 

700

 

 

 

601

 

Accrued liabilities

 

639

 

 

 

559

 

Deferred income

 

380

 

 

 

308

 

Revenue taxes payable

 

12

 

 

 

19

 

Complete Present liabilities

 

1,800

 

 

 

1,851

 

Lengthy-term debt

 

922

 

 

 

881

 

Lengthy-term lease liabilities

 

121

 

 

 

129

 

Deferred revenue taxes

 

6

 

 

 

 

Lengthy-term deferred income

 

315

 

 

 

273

 

Different long-term liabilities

 

67

 

 

 

97

 

Complete Liabilities

 

3,231

 

 

 

3,231

 

Stockholders’ Fairness:

 

 

 

Most well-liked inventory, $.01 par worth; approved 10,000,000 shares; none issued

 

 

 

 

 

Class A standard inventory, $.01 par worth; approved 150,000,000 shares; issued 72,151,857 shares

 

1

 

 

 

1

 

Further paid-in capital

 

462

 

 

 

395

 

Treasury inventory at value, 18,736,532 and 18,689,775 shares as of December 31, 2021 and 2020, respectively

 

(1,023

)

 

 

(919

)

Retained earnings

 

3,573

 

 

 

2,736

 

Gathered different complete loss

 

(29

)

 

 

(69

)

Complete Stockholders’ Fairness

 

2,984

 

 

 

2,144

 

Complete Liabilities and Stockholders’ Fairness

$

6,215

 

 

$

5,375

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In tens of millions, besides per share information)

 

 

Three Months Ended

 

Twelve Months Ended

 

(Unaudited)

 

 

 

 

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Web gross sales

 

 

 

 

 

 

 

Tangible merchandise

$

1,260

 

 

$

1,129

 

 

$

4,845

 

 

$

3,813

 

Providers and software program

 

207

 

 

 

179

 

 

 

782

 

 

 

635

 

Complete Web gross sales

 

1,467

 

 

 

1,308

 

 

 

5,627

 

 

 

4,448

 

Price of gross sales:

 

 

 

 

 

 

 

Tangible merchandise

 

694

 

 

 

585

 

 

 

2,590

 

 

 

2,065

 

Providers and software program

 

104

 

 

 

105

 

 

 

409

 

 

 

380

 

Complete Price of gross sales

 

798

 

 

 

690

 

 

 

2,999

 

 

 

2,445

 

Gross revenue

 

669

 

 

 

618

 

 

 

2,628

 

 

 

2,003

 

Working bills:

 

 

 

 

 

 

 

Promoting and advertising and marketing

 

157

 

 

 

133

 

 

 

587

 

 

 

483

 

Analysis and improvement

 

145

 

 

 

137

 

 

 

567

 

 

 

453

 

Basic and administrative

 

89

 

 

 

85

 

 

 

348

 

 

 

304

 

Amortization of intangible property

 

34

 

 

 

26

 

 

 

115

 

 

 

78

 

Acquisition and integration prices

 

14

 

 

 

2

 

 

 

25

 

 

 

23

 

Exit and restructuring prices

 

7

 

 

 

4

 

 

 

7

 

 

 

11

 

Complete Working bills

 

446

 

 

 

387

 

 

 

1,649

 

 

 

1,352

 

Working revenue

 

223

 

 

 

231

 

 

 

979

 

 

 

651

 

Different bills:

 

 

 

 

 

 

 

Overseas trade loss

 

(2

)

 

 

(3

)

 

 

(5

)

 

 

(18

)

Curiosity revenue (expense), internet

 

5

 

 

 

(7

)

 

 

(5

)

 

 

(76

)

Different revenue (expense), internet

 

 

 

 

(5

)

 

 

(1

)

 

 

3

 

Complete Different revenue (expense), internet

 

3

 

 

 

(15

)

 

 

(11

)

 

 

(91

)

Revenue earlier than revenue tax

 

226

 

 

 

216

 

 

 

968

 

 

 

560

 

Revenue tax expense

 

35

 

 

 

17

 

 

 

131

 

 

 

56

 

Web revenue

$

191

 

 

$

199

 

 

$

837

 

 

$

504

 

Fundamental earnings per share

$

3.58

 

 

$

3.73

 

 

$

15.66

 

 

$

9.43

 

Diluted earnings per share

$

3.55

 

 

$

3.70

 

 

$

15.52

 

 

$

9.35

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In tens of millions)

 

 

12 months Ended December 31,

 

2021

 

2020

Money flows from working actions:

 

 

 

Web revenue

$

837

 

 

$

504

 

Changes to reconcile internet revenue to internet money offered by working actions:

 

 

 

Depreciation and amortization

 

187

 

 

 

146

 

Amortization of debt issuance prices and reductions

 

2

 

 

 

3

 

Share-based compensation

 

76

 

 

 

51

 

Deferred revenue taxes

 

(69

)

 

 

(40

)

Unrealized (acquire) loss on ahead rate of interest swaps

 

(30

)

 

 

33

 

Different, internet

 

(1

)

 

 

1

 

Adjustments in working property and liabilities:

 

 

 

Accounts receivable, internet

 

(239

)

 

 

130

 

Inventories, internet

 

18

 

 

 

(42

)

Different property

 

(23

)

 

 

11

 

Accounts payable

 

96

 

 

 

47

 

Accrued liabilities

 

110

 

 

 

16

 

Deferred income

 

113

 

 

 

103

 

Revenue taxes

 

1

 

 

 

(5

)

Different working actions

 

(9

)

 

 

4

 

Web money offered by working actions

 

1,069

 

 

 

962

 

Money flows from investing actions:

 

 

 

Acquisition of companies, internet of money acquired

 

(452

)

 

 

(548

)

Purchases of property, plant and tools

 

(59

)

 

 

(67

)

Proceeds from the sale of long-term investments

 

 

 

 

6

 

Purchases of short-term investments

 

(1

)

 

 

 

Purchases of long-term investments

 

(34

)

 

 

(32

)

Web money utilized in investing actions

 

(546

)

 

 

(641

)

Money flows from financing actions:

 

 

 

Proceeds from issuance of long-term debt

 

46

 

 

 

302

 

Funds of lengthy term-debt

 

(303

)

 

 

(342

)

Funds of debt issuance prices and reductions

 

 

 

 

(1

)

Funds for repurchases of widespread inventory

 

(57

)

 

 

(200

)

Web funds associated to share-based compensation plans

 

(56

)

 

 

(25

)

Change in unremitted money collections from servicing factored receivables

 

(1

)

 

 

109

 

Web money utilized in financing actions

 

(371

)

 

 

(157

)

Impact of trade fee modifications on money and money equivalents, together with restricted money

 

 

 

 

(2

)

Web improve in money and money equivalents, together with restricted money

 

152

 

 

 

162

 

Money and money equivalents, together with restricted money, at starting of interval

 

192

 

 

 

30

 

Money and money equivalents, together with restricted money, at finish of interval

$

344

 

 

$

192

 

Much less restricted money, included in Pay as you go bills and different present property

 

(12

)

 

 

(24

)

Money and money equivalents at finish of interval

$

332

 

 

$

168

 

Supplemental disclosures of money stream info:

 

 

 

Revenue taxes paid

$

199

 

 

$

107

 

Curiosity paid

$

32

 

 

$

38

 

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF ORGANIC NET SALES GROWTH

(Unaudited)

 

 

Three Months Ended

 

December 31, 2021

 

AIT

 

EVM

 

Consolidated

Reported GAAP Consolidated Web gross sales progress

4.5

%

 

15.2

%

 

12.2

%

Changes:

 

 

 

 

 

Affect of overseas forex translations (1)

(1.4

)%

 

(0.8

)%

 

(1.4

)%

Affect of acquisitions (2)

%

 

(1.2

)%

 

(0.8

)%

Consolidated Natural Web gross sales progress

3.1

%

 

13.2

%

 

10.0

%

 

 

 

 

 

 

 

Twelve Months Ended

 

December 31, 2021

 

AIT

 

EVM

 

Consolidated

Reported GAAP Consolidated Web gross sales progress

21.2

%

 

28.8

%

 

26.5

%

Changes:

 

 

 

 

 

Affect of overseas forex translations (1)

(1.9

)%

 

(1.9

)%

 

(2.1

)%

Affect of acquisitions (2)

%

 

(1.9

)%

 

(1.2

)%

Consolidated Natural Web gross sales progress

19.3

%

 

25.0

%

 

23.2

%

(1)

Working outcomes reported in U.S. {Dollars} are affected by overseas forex trade fee fluctuations. Overseas forex translation affect represents the distinction in outcomes which can be attributable to fluctuations within the forex trade charges used to transform the outcomes for companies the place the purposeful forex isn’t the U.S. Greenback. This affect is calculated by translating the present interval outcomes on the forex trade charges used within the comparable prior yr interval, inclusive of the Firm’s overseas forex hedging program.

 

 

(2)

For functions of computing Natural Web gross sales progress, quantities immediately attributable to enterprise acquisitions are excluded for twelve months following their respective acquisitions.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN

(In tens of millions)

(Unaudited)

 

 

Three Months Ended

 

December 31, 2021

 

December 31, 2020

 

AIT

 

EVM

 

Consolidated

 

AIT

 

EVM

 

Consolidated

GAAP

 

 

 

 

 

 

 

 

 

 

 

Reported Web gross sales (1)

$

444

 

 

$

1,023

 

 

$

1,467

 

 

$

425

 

 

$

888

 

 

$

1,308

 

Reported Gross revenue (1)

 

190

 

 

 

479

 

 

 

669

 

 

 

204

 

 

 

421

 

 

 

618

 

Gross Margin

 

42.8

%

 

 

46.8

%

 

 

45.6

%

 

 

48.0

%

 

 

47.4

%

 

 

47.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Adjusted Web gross sales

$

444

 

 

$

1,023

 

 

$

1,467

 

 

$

425

 

 

$

888

 

 

$

1,313

 

Adjusted Gross revenue (2)

 

190

 

 

 

481

 

 

 

671

 

 

 

205

 

 

 

423

 

 

 

628

 

Adjusted Gross Margin

 

42.8

%

 

 

47.0

%

 

 

45.7

%

 

 

48.2

%

 

 

47.6

%

 

 

47.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

December 31, 2021

 

December 31, 2020

 

AIT

 

EVM

 

Consolidated

 

AIT

 

EVM

 

Consolidated

GAAP

 

 

 

 

 

 

 

 

 

 

 

Reported Web gross sales (1)

$

1,687

 

 

$

3,946

 

 

$

5,627

 

 

$

1,392

 

 

$

3,063

 

 

$

4,448

 

Reported Gross revenue (1)

 

769

 

 

 

1,865

 

 

 

2,628

 

 

 

658

 

 

 

1,358

 

 

 

2,003

 

Gross Margin

 

45.6

%

 

 

47.3

%

 

 

46.7

%

 

 

47.3

%

 

 

44.3

%

 

 

45.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Adjusted Web gross sales

$

1,687

 

 

$

3,946

 

 

$

5,633

 

 

$

1,392

 

 

$

3,063

 

 

$

4,455

 

Adjusted Gross revenue (2)

 

771

 

 

 

1,871

 

 

 

2,642

 

 

 

660

 

 

 

1,362

 

 

 

2,022

 

Adjusted Gross Margin

 

45.7

%

 

 

47.4

%

 

 

46.9

%

 

 

47.4

%

 

 

44.5

%

 

 

45.4

%

(1)

Consolidated outcomes embrace company eliminations associated to enterprise acquisition buy accounting changes that aren’t reported in section outcomes.

 

 

(2)

Adjusted Gross revenue excludes enterprise acquisition buy accounting changes, share-based compensation expense, and product sourcing diversification prices.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(In tens of millions, besides share information)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Web revenue

$

191

 

 

$

199

 

 

$

837

 

 

$

504

 

Changes to Web gross sales(1)

 

 

 

 

 

 

 

Buy accounting changes

 

 

 

 

5

 

 

 

6

 

 

 

7

 

Complete changes to Web gross sales

 

 

 

 

5

 

 

 

6

 

 

 

7

 

Changes to Price of gross sales(1)

 

 

 

 

 

 

 

Share-based compensation

 

2

 

 

 

3

 

 

 

8

 

 

 

6

 

Product sourcing diversification initiative

 

 

 

 

2

 

 

 

 

 

 

6

 

Complete changes to Price of gross sales

 

2

 

 

 

5

 

 

 

8

 

 

 

12

 

Changes to Working bills(1)

 

 

 

 

 

 

 

Amortization of intangible property

 

34

 

 

 

26

 

 

 

115

 

 

 

78

 

Acquisition and integration prices

 

14

 

 

 

2

 

 

 

25

 

 

 

23

 

Share-based compensation

 

21

 

 

 

18

 

 

 

85

 

 

 

53

 

Exit and restructuring prices

 

7

 

 

 

4

 

 

 

7

 

 

 

11

 

Product sourcing diversification initiative

 

 

 

 

1

 

 

 

 

 

 

12

 

Complete changes to Working bills

 

76

 

 

 

51

 

 

 

232

 

 

 

177

 

Changes to Different revenue (expense), internet(1)

 

 

 

 

 

 

 

Amortization of debt issuance prices and reductions

 

 

 

 

1

 

 

 

2

 

 

 

3

 

Funding (acquire) loss

 

(1

)

 

 

3

 

 

 

(2

)

 

 

(5

)

Overseas trade loss

 

2

 

 

 

3

 

 

 

5

 

 

 

18

 

Ahead rate of interest swap (acquire) loss

 

(9

)

 

 

 

 

 

(13

)

 

 

46

 

Complete changes to Different revenue (expense), internet

 

(8

)

 

 

7

 

 

 

(8

)

 

 

62

 

Revenue tax impact of changes(2)

 

 

 

 

 

 

 

Reported revenue tax expense

 

35

 

 

 

17

 

 

 

131

 

 

 

56

 

Adjusted revenue tax

 

(51

)

 

 

(44

)

 

 

(211

)

 

 

(128

)

Complete changes to revenue tax

 

(16

)

 

 

(27

)

 

 

(80

)

 

 

(72

)

Complete changes

 

54

 

 

 

41

 

 

 

158

 

 

 

186

 

Non-GAAP Web revenue

$

245

 

 

$

240

 

 

$

995

 

 

$

690

 

 

 

 

 

 

 

 

 

GAAP earnings per share

 

 

 

 

 

 

 

Fundamental

$

3.58

 

 

$

3.73

 

 

$

15.66

 

 

$

9.43

 

Diluted

$

3.55

 

 

$

3.70

 

 

$

15.52

 

 

$

9.35

 

Non-GAAP earnings per share

 

 

 

 

 

 

 

Fundamental

$

4.58

 

 

$

4.50

 

 

$

18.61

 

 

$

12.91

 

Diluted

$

4.54

 

 

$

4.46

 

 

$

18.45

 

 

$

12.80

 

 

 

 

 

 

 

 

 

Fundamental weighted common shares excellent

 

53,441,215

 

 

 

53,356,857

 

 

 

53,446,399

 

 

 

53,441,375

 

Diluted weighted common and equal shares excellent

 

53,877,621

 

 

 

53,783,654

 

 

 

53,902,430

 

 

 

53,913,245

 

(1)

Introduced on a pre-tax foundation.

(2)

Represents changes to GAAP revenue tax expense commensurate with pre-tax non-GAAP changes (together with the ensuing impacts to U.S. BEAT/GILTI provisions), in addition to changes to exclude the impacts of sure discrete revenue tax objects and incorporate the anticipated annualized results of present yr tax planning.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

GAAP to NON-GAAP RECONCILIATION TO EBITDA

(In tens of millions)

(Unaudited)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

2021

 

December 31,

2020

 

December 31,

2021

 

December 31,

2020

Web revenue

$

191

 

 

$

199

 

 

$

837

 

 

$

504

 

Add again:

 

 

 

 

 

 

 

Depreciation (excluding exit and restructuring prices)

 

18

 

 

 

16

 

 

 

72

 

 

 

67

 

Amortization of intangible property

 

34

 

 

 

26

 

 

 

115

 

 

 

78

 

Complete Different (revenue) expense, internet

 

(3

)

 

 

15

 

 

 

11

 

 

 

91

 

Revenue tax expense

 

35

 

 

 

17

 

 

 

131

 

 

 

56

 

EBITDA (Non-GAAP)

 

275

 

 

 

273

 

 

 

1,166

 

 

 

796

 

 

 

 

 

 

 

 

 

Changes to Web gross sales

 

 

 

 

 

 

 

Buy accounting changes

 

 

 

 

5

 

 

 

6

 

 

 

7

 

Complete changes to Web gross sales

 

 

 

 

5

 

 

 

6

 

 

 

7

 

Changes to Price of gross sales

 

 

 

 

 

 

 

Share-based compensation

 

2

 

 

 

3

 

 

 

8

 

 

 

6

 

Product sourcing diversification initiative

 

 

 

 

2

 

 

 

 

 

 

6

 

Complete changes to Price of gross sales

 

2

 

 

 

5

 

 

 

8

 

 

 

12

 

Changes to Working bills

 

 

 

 

 

 

 

Acquisition and integration prices

 

14

 

 

 

2

 

 

 

25

 

 

 

23

 

Share-based compensation

 

21

 

 

 

18

 

 

 

85

 

 

 

53

 

Exit and restructuring prices

 

7

 

 

 

4

 

 

 

7

 

 

 

11

 

Product sourcing diversification initiative

 

 

 

 

1

 

 

 

 

 

 

12

 

Complete changes to Working bills

 

42

 

 

 

25

 

 

 

117

 

 

 

99

 

Complete changes to EBITDA

 

44

 

 

 

35

 

 

 

131

 

 

 

118

 

Adjusted EBITDA (Non-GAAP)

$

319

 

 

$

308

 

 

$

1,297

 

 

$

914

 

 

 

 

 

 

 

 

 

Adjusted EBITDA % of Adjusted Web Gross sales

 

21.7

%

 

 

23.5

%

 

 

23.0

%

 

 

20.5

%

FREE CASH FLOW

 

 

Twelve Months Ended

 

December 31,

2021

 

December 31,

2020

Web money offered by working actions

$

1,069

 

 

$

962

 

Much less: Purchases of property, plant and tools

 

(59

)

 

 

(67

)

Free money stream (Non-GAAP)(1)

$

1,010

 

 

$

895

 

(1)

Free money stream is outlined as Web money offered by working actions in a interval minus purchases of property, plant and tools (capital expenditures) made in that interval. This measure doesn’t characterize residual money flows accessible for discretionary expenditures because the measure doesn’t deduct the funds required for debt service and different contractual obligations or funds for future enterprise acquisitions. Due to this fact, we consider it is very important view free money stream as a measure that gives supplemental info to our total statements of money flows.

 



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