-
Sales of
$150.6 million exceeded previous guidance - Gross margin of 42.2%; non-GAAP gross margin of 44.0%
-
Reduced Term Loan B debt associated with the financing of the
Xcerra acquisition by$17.3 million - Strong mobility orders for RF testers and handlers driven by new 5G smartphones
- Improving demand from automotive and industrial segment customers ahead of previous expectations
GAAP Results (1) |
||||||||||||||||||||
(in millions, except per share amounts) |
Q3 FY 2020 |
Q2 FY 2020 |
Q3 FY 2019 |
9 Months 2020 |
9 Months 2019 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Net sales |
$ |
150.6 |
|
$ |
144.1 |
|
$ |
143.5 |
|
$ |
433.7 |
|
$ |
441.3 |
|
|||||
Loss |
$ |
(6.6 |
) |
$ |
(4.7 |
) |
$ |
(10.5 |
) |
$ |
(28.7 |
) |
$ |
(52.7 |
) |
|||||
Loss per share |
$ |
(0.16 |
) |
$ |
(0.11 |
) |
$ |
(0.25 |
) |
$ |
(0.69 |
) |
$ |
(1.28 |
) |
|||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Non-GAAP Results (1) |
||||||||||||||||||||
(in millions, except per share amounts) |
Q3 FY 2020 |
Q2 FY 2020 |
Q3 FY 2019 |
9 Months 2020 |
9 Months 2019 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Income |
$ |
11.6 |
|
$ |
7.1 |
|
$ |
4.9 |
|
$ |
18.9 |
|
$ |
4.3 |
|
|||||
Income per share |
$ |
0.27 |
|
$ |
0.17 |
|
$ |
0.12 |
|
$ |
0.44 |
|
$ |
0.10 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
(1) All amounts presented are from continuing operations. |
Total cash and investments at the end of third quarter 2020 were
“The mobility segment continued to strengthen during third quarter with a
Conference Call Information:
The Company will host a live conference call and webcast with slides to discuss third quarter 2020 results at
About
Use of Non-GAAP Financial Information:
Included within this press release and accompanying materials are non-GAAP financial measures, including non-GAAP Gross Margin/Profit, Income and Income (adjusted earnings) per share, Operating Income, Operating Expense and Adjusted EBITDA that supplement the Company’s Condensed Consolidated Statements of Operations prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude charges and the related income tax effect for: share-based compensation, the amortization of purchased intangible assets, restructuring costs, manufacturing transition and severance costs, asset impairment charges, acquisition-related costs and associated professional fees, reduction of indemnification receivable, depreciation of purchase accounting adjustments to property, plant and equipment, purchase accounting inventory step-up included in cost of sales and amortization of cloud-based software implementation costs (Adjusted EBITDA only). Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Condensed Consolidated Statements of Operations. With respect to any forward-looking non-GAAP figures, we are unable to provide without unreasonable efforts, at this time, a GAAP to non-GAAP reconciliation of any forward-looking figures due to their inherent uncertainty.
These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company’s management believes that this information can assist investors in evaluating the Company’s operational trends, financial performance, and cash generating capacity. Management uses non-GAAP measures for a variety of reasons, including to make operational decisions, to determine executive compensation in part, to forecast future operational results, and for comparison to our annual operating plan. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures.
Forward-Looking Statements:
Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the
Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: The ongoing global COVID-19 pandemic has adversely affected, and is continuing to adversely affect, our business, financial condition and results of operations, and COVID-19 could re-surge at any time and our business could be abruptly impacted again to an even greater extent;
These and other risks and uncertainties are discussed more fully in Cohu’s filings with the
For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three Months Ended (1) |
Nine Months Ended (1) |
||||||||||||||
|
|
|
|
|
||||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||||||
|
|
|
|
|
||||||||||||
Net sales |
$ |
150,647 |
|
$ |
143,498 |
|
$ |
433,652 |
|
$ |
441,318 |
|
||||
Cost and expenses: |
|
|
|
|
||||||||||||
Cost of sales (excluding amortization) |
|
87,147 |
|
|
84,565 |
|
|
253,111 |
|
|
265,564 |
|
||||
Research and development |
|
20,497 |
|
|
20,483 |
|
|
63,389 |
|
|
65,324 |
|
||||
Selling, general and administrative (2) |
|
31,336 |
|
|
33,690 |
|
|
95,664 |
|
|
108,404 |
|
||||
Amortization of purchased intangible assets |
|
9,783 |
|
|
9,969 |
|
|
28,848 |
|
|
29,975 |
|
||||
Restructuring charges |
|
412 |
|
|
814 |
|
|
1,400 |
|
|
10,720 |
|
||||
Impairment charges (3) |
|
7,300 |
|
|
- |
|
|
11,249 |
|
|
- |
|
||||
Gain on sale of facilities (4) |
|
(4,468 |
) |
|
- |
|
|
(4,495 |
) |
|
- |
|
||||
|
|
152,007 |
|
|
149,521 |
|
|
449,166 |
|
|
479,987 |
|
||||
Loss from operations |
|
(1,360 |
) |
|
(6,023 |
) |
|
(15,514 |
) |
|
(38,669 |
) |
||||
Other (expense) income: |
|
|
|
|
||||||||||||
Interest expense |
|
(3,021 |
) |
|
(5,000 |
) |
|
(10,904 |
) |
|
(15,789 |
) |
||||
Gain on extinguishment of debt (5) |
|
293 |
|
|
- |
|
|
293 |
|
|
- |
|
||||
Interest income |
|
42 |
|
|
190 |
|
|
210 |
|
|
603 |
|
||||
Foreign transaction gain (loss) |
|
(1,484 |
) |
|
1,630 |
|
|
(2,528 |
) |
|
1,302 |
|
||||
Loss from continuing operations before taxes |
|
(5,530 |
) |
|
(9,203 |
) |
|
(28,443 |
) |
|
(52,553 |
) |
||||
Income tax provision |
|
1,116 |
|
|
1,277 |
|
|
261 |
|
|
161 |
|
||||
Loss from continuing operations |
|
(6,646 |
) |
|
(10,480 |
) |
|
(28,704 |
) |
|
(52,714 |
) |
||||
|
|
|
|
|
||||||||||||
Discontinued operations: (6) |
|
|
|
|
||||||||||||
Income from discontinued operations before taxes |
|
- |
|
|
173 |
|
|
46 |
|
|
400 |
|
||||
Income tax provision |
|
- |
|
|
19 |
|
|
4 |
|
|
58 |
|
||||
Income from discontinued operations |
|
- |
|
|
154 |
|
|
42 |
|
|
342 |
|
||||
Net loss |
|
(6,646 |
) |
|
(10,326 |
) |
$ |
(28,662 |
) |
$ |
(52,372 |
) |
||||
Net income (loss) attributable to noncontrolling interest |
|
- |
|
|
142 |
|
|
- |
|
|
62 |
|
||||
Net loss attributable to |
$ |
(6,646 |
) |
$ |
(10,468 |
) |
$ |
(28,662 |
) |
$ |
(52,434 |
) |
||||
|
|
|
|
|
||||||||||||
Loss per share: |
|
|
|
|
||||||||||||
Basic: |
|
|
|
|
||||||||||||
Loss from continuing operations before noncontrolling interest |
$ |
(0.16 |
) |
$ |
(0.25 |
) |
$ |
(0.69 |
) |
$ |
(1.28 |
) |
||||
Income from discontinued operations |
|
- |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
||||
Net income (loss) attributable to noncontrolling interest |
|
- |
|
|
(0.00 |
) |
|
- |
|
|
(0.00 |
) |
||||
Net loss attributable to |
$ |
(0.16 |
) |
$ |
(0.25 |
) |
$ |
(0.69 |
) |
$ |
(1.28 |
) |
||||
|
|
|
|
|
||||||||||||
Diluted: |
|
|
|
|
||||||||||||
Loss from continuing operations before noncontrolling interest |
$ |
(0.16 |
) |
$ |
(0.25 |
) |
$ |
(0.69 |
) |
$ |
(1.28 |
) |
||||
Income from discontinued operations |
|
- |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
||||
Net income (loss) attributable to noncontrolling interest |
|
- |
|
|
(0.00 |
) |
|
- |
|
|
(0.00 |
) |
||||
Net loss attributable to |
$ |
(0.16 |
) |
$ |
(0.25 |
) |
$ |
(0.69 |
) |
$ |
(1.28 |
) |
||||
|
|
|
|
|
||||||||||||
Weighted average shares used in (7) |
|
|
|
|
||||||||||||
computing loss per share: |
|
|
|
|
||||||||||||
Basic |
|
41,947 |
|
|
41,229 |
|
|
41,764 |
|
|
41,075 |
|
||||
Diluted |
|
41,947 |
|
|
41,229 |
|
|
41,764 |
|
|
41,075 |
|
(1) |
The three- and nine-month periods ended |
|
(2) |
For the nine-month period ended |
|
(3) |
Included in our results for the three- and nine-month period ended |
|
(4) |
During the third quarter of 2020 we completed the sale of our facility in Rosenheim, |
|
(5) |
In |
|
(6) |
On |
|
(7) |
For the three- and nine-month periods ended |
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Unaudited) |
||||||
(in thousands) |
||||||
|
|
|
||||
|
2020 |
2019 |
||||
Assets: |
|
|
||||
Current assets: |
|
|
||||
Cash and investments |
$ |
170,875 |
$ |
156,098 |
||
Accounts receivable |
|
116,805 |
|
127,921 |
||
Inventories |
|
137,879 |
|
130,706 |
||
Other current assets |
|
19,259 |
|
21,468 |
||
Current assets of discontinued operations (1) |
|
- |
|
3,503 |
||
Total current assets |
|
444,818 |
|
439,696 |
||
Property, plant & equipment, net |
|
64,546 |
|
70,912 |
||
|
|
244,341 |
|
238,669 |
||
Intangible assets, net |
|
238,832 |
|
275,019 |
||
Operating lease right of use assets |
|
30,099 |
|
33,269 |
||
Other assets |
|
23,717 |
|
20,030 |
||
Noncurrent assets of discontinued operations (1) |
|
- |
|
115 |
||
Total assets |
$ |
1,046,353 |
$ |
1,077,710 |
||
|
|
|
||||
Liabilities & Stockholders’ Equity: |
|
|
||||
Current liabilities: |
|
|
||||
Short-term borrowings |
$ |
5,209 |
$ |
3,195 |
||
Current installments of long-term debt |
|
2,990 |
|
3,322 |
||
Deferred profit |
|
11,859 |
|
7,645 |
||
Other current liabilities |
|
126,845 |
|
134,124 |
||
Current liabilities of discontinued operations (1) |
|
- |
|
599 |
||
Total current liabilities |
|
146,903 |
|
148,885 |
||
Long-term debt |
|
331,469 |
|
346,518 |
||
Non-current operating lease liabilities |
|
26,532 |
|
28,877 |
||
Other noncurrent liabilities |
|
66,840 |
|
70,334 |
||
Noncurrent liabilities of discontinued operations (1) |
|
- |
|
24 |
||
|
|
474,609 |
|
483,072 |
||
Total liabilities & stockholders’ equity |
$ |
1,046,353 |
$ |
1,077,710 |
(1) |
On |
|
||||||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) |
||||||||||||
(in thousands, except per share amounts) |
||||||||||||
|
Three Months Ended |
|||||||||||
|
|
|
|
|
|
|||||||
|
2020 |
|
2020 |
|
2019 |
|||||||
Loss from operations - GAAP basis (a) |
$ |
(1,360 |
) |
$ |
(528 |
) |
$ |
(6,023 |
) |
|||
Non-GAAP adjustments: |
|
|
|
|||||||||
Share-based compensation included in (b): |
|
|
|
|||||||||
Cost of sales (COS) |
|
218 |
|
|
211 |
|
|
212 |
|
|||
Research and development (R&D) |
|
782 |
|
|
828 |
|
|
820 |
|
|||
Selling, general and administrative (SG&A) |
|
2,299 |
|
|
2,364 |
|
|
2,474 |
|
|||
|
|
3,299 |
|
|
3,403 |
|
|
3,506 |
|
|||
Amortization of purchased intangible assets (c) |
|
9,783 |
|
|
9,527 |
|
|
9,969 |
|
|||
Restructuring charges related to inventory adjustments in COS (d) |
|
2,606 |
|
|
72 |
|
|
1,114 |
|
|||
Restructuring charges (d) |
|
412 |
|
|
585 |
|
|
814 |
|
|||
|
|
|
|
|||||||||
Manufacturing and sales transition costs included in (e): |
|
|
|
|||||||||
COS |
|
- |
|
|
- |
|
|
416 |
|
|||
SG&A |
|
179 |
|
|
76 |
|
|
152 |
|
|||
|
|
179 |
|
|
76 |
|
|
568 |
|
|||
Impairment charges (f) |
|
7,300 |
|
|
- |
|
|
- |
|
|||
Gain on sale of facility (g) |
|
(4,468 |
) |
|
(27 |
) |
|
- |
|
|||
PP&E step-up included in SG&A (h) |
|
243 |
|
|
243 |
|
|
1,257 |
|
|||
Income from operations - non-GAAP basis (i) |
$ |
17,994 |
|
$ |
13,351 |
|
$ |
11,205 |
|
|||
|
|
|
|
|||||||||
Loss from continuing operations - GAAP basis |
$ |
(6,646 |
) |
$ |
(4,740 |
) |
$ |
(10,480 |
) |
|||
Non-GAAP adjustments (as scheduled above) |
|
19,354 |
|
|
13,879 |
|
|
17,228 |
|
|||
Tax effect of non-GAAP adjustments (j) |
|
(1,080 |
) |
|
(2,011 |
) |
|
(1,836 |
) |
|||
Income from continuing operations - non-GAAP basis |
$ |
11,628 |
|
$ |
7,128 |
|
$ |
4,912 |
|
|||
|
|
|
|
|||||||||
GAAP loss from continuing operations per share - diluted |
$ |
(0.16 |
) |
$ |
(0.11 |
) |
$ |
(0.25 |
) |
|||
|
|
|
|
|||||||||
Non-GAAP income from continuing operations per share - diluted (k) |
$ |
0.27 |
|
$ |
0.17 |
|
$ |
0.12 |
|
Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance. Our management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s operational performance as it does not require cash payments and can vary in amount from period to period and the elimination of amortization and impairment charges provides better comparability of pre- and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. Management initiated certain restructuring activities including employee headcount reductions and other organizational changes to align our business strategies in light of the merger with |
(a) |
(0.9)%, (0.4)% and (4.2)% of net sales, respectively. |
|
(b) |
To eliminate compensation expense for employee stock options, stock units and our employee stock purchase plan. |
|
(c) |
To eliminate the amortization of acquired intangible assets. |
|
(d) |
To eliminate restructuring costs incurred related to the integration of |
|
(e) |
To eliminate manufacturing and sales transition and severance costs. |
|
(f) |
To eliminate impairment charges recorded to adjust IPR&D assets obtained in the acquisition of |
|
(g) |
To eliminate the gains generated by the sale of the Company’s facilities in Rosenheim, |
|
(h) |
To eliminate the accelerated depreciation from the property, plant & equipment step-up related to the acquisition of |
|
(i) |
11.9%, 9.3% and 7.8% of net sales, respectively. |
|
(j) |
To adjust the provision for income taxes related to the adjustments described above based on applicable tax rates. |
|
(k) |
The three months ended |
|
||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) |
||||||||
(in thousands, except per share amounts) |
||||||||
|
Nine Months Ended |
|||||||
|
|
|
|
|||||
|
2020 |
|
2019 |
|||||
Loss from operations - GAAP basis (a) |
$ |
(15,514 |
) |
$ |
(38,669 |
) |
||
Non-GAAP adjustments: |
|
|
||||||
Share-based compensation included in (b): |
|
|
||||||
Cost of sales (COS) |
|
641 |
|
|
545 |
|
||
Research and development (R&D) |
|
2,443 |
|
|
2,234 |
|
||
Selling, general and administrative (SG&A) |
|
7,229 |
|
|
8,082 |
|
||
|
|
10,313 |
|
|
10,861 |
|
||
Amortization of purchased intangible assets (c) |
|
28,848 |
|
|
29,975 |
|
||
Restructuring charges related to inventory adjustments in COS (d) |
|
4,281 |
|
|
321 |
|
||
Restructuring charges (d) |
|
1,400 |
|
|
10,720 |
|
||
Manufacturing and sales transition costs included in (e): |
|
|
||||||
COS |
|
- |
|
|
1,211 |
|
||
SG&A |
|
318 |
|
|
1,266 |
|
||
|
|
318 |
|
|
2,477 |
|
||
|
|
|
||||||
Impairment charges (f) |
|
11,249 |
|
|
- |
|
||
|
|
|
||||||
Acquisition costs included in SG&A (g) |
|
- |
|
|
404 |
|
||
Gain on sale of facility (h) |
|
(4,495 |
) |
|
- |
|
||
Inventory step-up included in COS (i) |
|
- |
|
|
6,038 |
|
||
PP&E step-up included in SG&A (j) |
|
729 |
|
|
3,771 |
|
||
Income from operations - non-GAAP basis (k) |
$ |
37,129 |
|
$ |
25,898 |
|
||
|
|
|
||||||
Income (loss) from continuing operations - GAAP basis |
$ |
(28,704 |
) |
$ |
(52,714 |
) |
||
Non-GAAP adjustments (as scheduled above) |
|
52,643 |
|
|
64,567 |
|
||
Tax effect of non-GAAP adjustments (l) |
|
(5,051 |
) |
|
(7,542 |
) |
||
Income from continuing operations - non-GAAP basis |
$ |
18,888 |
|
$ |
4,311 |
|
||
|
|
|
||||||
GAAP loss per share from continuing operations - diluted |
$ |
(0.69 |
) |
$ |
(1.28 |
) |
||
|
|
|
||||||
Non-GAAP income per share - diluted (m) |
$ |
0.44 |
|
$ |
0.10 |
|
Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance. Our management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s operational performance as it does not require cash payments and can vary in amount from period to period and the elimination of amortization charges provides better comparability of pre- and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. Management initiated certain restructuring activities including employee headcount reductions and other organizational changes to align our business strategies in light of the merger with |
(a) |
(3.6)% and (8.8)% of net sales, respectively. |
|
(b) |
To eliminate compensation expense for employee stock options, stock units and our employee stock purchase plan. |
|
(c) |
To eliminate the amortization of acquired intangible assets. |
|
(d) |
To eliminate restructuring costs incurred related to the integration of |
|
(e) |
To eliminate manufacturing and sales transition and severance costs. |
|
(f) |
To eliminate impairment charges recorded to adjust IPR&D assets obtained in the acquisition of |
|
(g) |
To eliminate professional fees and other direct incremental expenses incurred related to the acquisition of |
|
(h) |
To eliminate the gains generated by the sale of the Company’s facilities in Rosenheim, |
|
(i) |
To eliminate the inventory step-up costs incurred related to the acquisition of |
|
(j) |
To eliminate the property, plant & equipment step-up depreciation accelerated related to the acquisition of |
|
(k) |
8.6% and 5.9% of net sales, respectively. |
|
(l) |
To adjust the provision for income taxes related to the adjustments described above based on applicable tax rates. |
|
(m) |
The nine months ended |
|
||||||||||||
Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited) |
||||||||||||
(in thousands) |
||||||||||||
|
Three Months Ended |
|||||||||||
|
|
|
|
|
|
|||||||
|
2020 |
|
2020 |
|
2019 |
|||||||
|
|
|
|
|||||||||
Gross Profit Reconciliation |
|
|
|
|||||||||
Gross profit - GAAP basis (excluding amortization) (1) |
$ |
63,500 |
|
$ |
60,957 |
|
$ |
58,933 |
|
|||
Non-GAAP adjustments to cost of sales (as scheduled above) |
|
2,824 |
|
|
283 |
|
|
1,742 |
|
|||
Gross profit - Non-GAAP basis |
$ |
66,324 |
|
$ |
61,240 |
|
$ |
60,675 |
|
|||
|
|
|
|
|||||||||
As a percentage of net sales: |
|
|
|
|||||||||
GAAP gross profit |
|
42.2 |
% |
|
42.3 |
% |
|
41.1 |
% |
|||
Non-GAAP gross profit |
|
44.0 |
% |
|
42.5 |
% |
|
42.3 |
% |
|||
|
|
|
|
|||||||||
Adjusted EBITDA Reconciliation |
|
|
|
|||||||||
Net loss attributable to |
$ |
(6,646 |
) |
$ |
(4,740 |
) |
$ |
(10,468 |
) |
|||
(Income) loss from discontinued operations |
|
- |
|
|
- |
|
|
(154 |
) |
|||
Income tax provision |
|
1,116 |
|
|
137 |
|
|
1,277 |
|
|||
Interest expense |
|
3,021 |
|
|
3,456 |
|
|
5,000 |
|
|||
Interest income |
|
(42 |
) |
|
(21 |
) |
|
(190 |
) |
|||
Amortization of purchased intangible assets |
|
9,783 |
|
|
9,527 |
|
|
9,969 |
|
|||
Depreciation |
|
3,462 |
|
|
3,557 |
|
|
5,231 |
|
|||
Amortization of cloud-based software implementation costs (2) |
|
318 |
|
|
308 |
|
|
- |
|
|||
Other non-GAAP adjustments (as scheduled above) |
|
9,328 |
|
|
4,109 |
|
|
5,456 |
|
|||
Adjusted EBITDA |
$ |
20,340 |
|
$ |
16,333 |
|
$ |
16,121 |
|
|||
|
|
|
|
|||||||||
As a percentage of net sales: |
|
|
|
|||||||||
Net loss attributable to |
|
(4.4 |
)% |
|
(3.3 |
)% |
|
(7.3 |
)% |
|||
Adjusted EBITDA |
|
13.5 |
% |
|
11.3 |
% |
|
11.2 |
% |
|||
|
|
|
|
|||||||||
Operating Expense Reconciliation |
|
|
|
|||||||||
Operating Expense - GAAP basis |
$ |
64,860 |
|
$ |
61,485 |
|
$ |
64,956 |
|
|||
Non-GAAP adjustments to operating expenses (as scheduled above) |
|
(16,530 |
) |
|
(13,596 |
) |
|
(15,486 |
) |
|||
Operating Expenses - Non-GAAP basis |
$ |
48,330 |
|
$ |
47,889 |
|
$ |
49,470 |
|
(1) |
Excludes amortization of |
|
(2) |
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within SG&A. |
|
Nine Months Ended |
|||||||
|
|
|
||||||
|
2020 |
2019 |
||||||
Gross Profit Reconciliation |
|
|
||||||
Gross profit - GAAP basis (excluding amortization) (1) |
$ |
180,541 |
|
$ |
175,754 |
|
||
Non-GAAP adjustments to cost of sales (as scheduled above) |
|
4,922 |
|
|
8,115 |
|
||
Gross profit - Non-GAAP basis |
$ |
185,463 |
|
$ |
183,869 |
|
||
|
|
|
||||||
As a percentage of net sales: |
|
|
||||||
GAAP gross profit |
|
41.6 |
% |
|
39.8 |
% |
||
Non-GAAP gross profit |
|
42.8 |
% |
|
41.7 |
% |
||
|
|
|
||||||
Adjusted EBITDA Reconciliation |
|
|
||||||
Net loss attributable to |
$ |
(28,662 |
) |
$ |
(52,434 |
) |
||
(Income) loss from discontinued operations |
|
(42 |
) |
|
(342 |
) |
||
Income tax provision |
|
261 |
|
|
161 |
|
||
Interest expense |
|
10,904 |
|
|
15,789 |
|
||
Interest income |
|
(210 |
) |
|
(603 |
) |
||
Amortization of purchased intangible assets |
|
28,848 |
|
|
29,975 |
|
||
Depreciation |
|
10,435 |
|
|
15,353 |
|
||
Amortization of cloud-based software implementation costs (2) |
|
831 |
|
|
- |
|
||
Other non-GAAP adjustments (as scheduled above) |
|
23,066 |
|
|
29,728 |
|
||
Adjusted EBITDA |
$ |
45,431 |
|
$ |
37,627 |
|
||
|
|
|
||||||
As a percentage of net sales: |
|
|
||||||
Net loss attributable to |
|
(6.6 |
)% |
|
(11.9 |
)% |
||
Adjusted EBITDA |
|
10.5 |
% |
|
8.5 |
% |
||
|
|
|
||||||
Operating Expense Reconciliation |
|
|
||||||
Operating Expense - GAAP basis |
$ |
196,055 |
|
$ |
214,423 |
|
||
Non-GAAP adjustments to operating expenses (as scheduled above) |
|
(47,721 |
) |
|
(56,452 |
) |
||
Operating Expenses - Non-GAAP basis |
$ |
148,334 |
|
$ |
157,971 |
|
(1) |
Excludes amortization of |
|
(2) |
Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within SG&A. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005332/en/
858-848-8106
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