BEDFORD, Mass., Feb. 5, 2014 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the fourth quarter and full year ended December 28, 2013.
(Logo: http://photos.prnewswire.com/prnh/20131104/NE10106LOGO )
"2013 was a great year for iRobot. Our Home Robot business increased 20 percent over 2012, driven by growth in both domestic and overseas markets," said Colin Angle, chairman and chief executive officer of iRobot. "All three of our businesses met our expectations and made significant progress against their strategic plans, setting us up well for 2014.
"In 2014, our financial performance will continue to be driven by our Home Robot business. Home Robot revenue is expected to grow in the mid-to-high teens in 2014 and comprise 90 percent of total company revenue. Our Defense & Security business is expected to perform at 2013 levels, and our Remote Presence business will be shipping product into two markets.
"For 2014, we expect revenue of $560 to $570 million, EPS of between $1.00 and $1.15 and Adjusted EBITDA of $74 to $78 million, or roughly 14 percent of revenue. These expectations are a strong next step in progressing towards our three-year targets of:
- Mid-high teen revenue CAGR,
- High teen Adjusted EBITDA margin and,
- High single digit Operating Cash Flow margin"
Financial Results
- Revenue for the fourth quarter of 2013 was $126.3 million, compared with $100.7 million for the fourth quarter of 2012. Revenue for the full year 2013 was $487.4 million, compared with $436.2 million for the full year 2012.
- Net income for the fourth quarter of 2013 was $3.2 million, compared with a net loss of ($5.9) million for the fourth quarter of 2012. Net income for the full year 2013 was $27.6 million, compared with $17.3 million for full-year 2012.
- Quarterly earnings per share were $0.11, compared with a quarterly loss per share of ($0.21) in the fourth quarter last year. Full-year earnings per share were $0.94, compared with $0.61 last year.
- Adjusted EBITDA for the fourth quarter of 2013 was $12.8 million, compared with $1.0 million in the fourth quarter of 2012. Adjusted EBITDA for the full year 2013 was $62.2 million, compared with $52.5 million for full-year 2012.
Business Highlights
- Full-year domestic Home Robot revenue growth of more than 30 percent, coupled with international Home Robot revenue growth of 14 percent, drove a 20 percent year-over-year increase in full-year Home Robot revenue. We continued to increase our investment in marketing programs in our Home Robot business, which resulted in greater brand awareness and revenue growth in that business.
- We introduced and began shipping the Roomba 800 Series in late 2013. This next-generation floor vacuuming robot incorporates new dirt extractor technology which amplifies suction for superior performance over traditional bristle brushes. The Scooba 450, our newest wet floor scrubbing robot, was introduced and began shipping in January 2014.
- Our Defense & Security business delivered results consistent with our expectations while continuing to reduce reliance on the U.S. Department of Defense.
- We began shipping RP-VITA through InTouch Health into the healthcare market and announced the Ava 500 Video Collaboration Robot which blends together our autonomous navigation capabilities with Cisco's TelePresence. The Ava 500 is targeted for availability from certified Cisco partners in the first half of 2014.
Financial Expectations
Management provides the following expectations with respect to the year ending December 27, 2014 and first quarter ending March 29, 2014.
|
Fiscal Year 2014: |
|
|
Revenue |
$560 - $570 million |
|
Earnings Per Share |
$1.00 - $1.15 |
|
Adjusted EBITDA |
$74 - $78 million |
|
Full-Year 2014 BU Revenue: |
|
|
Home |
$500 - $515 million |
|
Defense & Security |
$50 million |
|
Remote Presence |
$5 million |
|
Q1 2014: |
|
|
Revenue |
$110 - $113 million |
|
Earnings Per Share |
$0.13 - $0.17 |
|
Adjusted EBITDA |
$13 - $15 million |
Fourth-Quarter and Full-Year Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. ET to discuss its financial results for the fourth fiscal quarter and full year 2013, business outlook, and outlook for 2014 financial performance. Pertinent details include:
|
Date: |
Thursday, February 6, 2014 |
|
Time: |
8:30 a.m. ET |
|
Call-In Number: |
847-619-6396 |
|
Passcode: |
35939059 |
A live, audio broadcast of the conference call will also be available at http://investor.irobot.com/phoenix.zhtml?c=193096&p=irol-EventDetails&EventId=5041606. An archived version of the broadcast will be available on the same website shortly after the conclusion of the live event. A replay of the telephone conference call will be available through February 13, and can be accessed by dialing 630-652-3042, passcode 35939059#.
About iRobot Corp.
iRobot designs and builds robots that make a difference. The company's home robots help people find smarter ways to clean, its defense & security robots protect those in harm's way, and its remote presence robots enable virtual presence from anywhere in the world. iRobot's consumer and military robots feature iRobot Aware® robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visit www.irobot.com.
For iRobot Investors
Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, iRobot Corp.'s expectations regarding future financial performance, future operating performance and growth, anticipated growth and performance of our businesses, demand for our robots, Home Robot revenue for fiscal year 2014, the timing of new product introductions, the timing of entry into new product markets, the availability of new products, and anticipated revenue, earnings per share and Adjusted EBITDA for fiscal year 2014 and the first quarter ending March 29, 2014. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: our ability to operate in an emerging market, the financial strength of our customers and retailers, general economic conditions, market acceptance of our products, our dependence on the U.S. federal government and government contracts, the timing of government contracts and orders, changes in government policies or spending priorities, and competition. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. iRobot Corp. undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by iRobot Corp., see the disclosure contained in our public filings with the Securities and Exchange Commission.
This press release includes Adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, merger and acquisition expenses, net intellectual property litigation expenses, restructuring expenses, and non-cash stock compensation. A reconciliation between net income (loss) and Adjusted EBITDA is provided in the financial tables at the end of this press release.
|
iRobot Corporation | |||||
|
Consolidated Statements of Income | |||||
|
(in thousands, except per share amounts) | |||||
|
(unaudited) | |||||
|
For the three months ended |
For the twelve months ended | ||||
|
December 28, |
December 29, |
December 28, |
December 29, | ||
|
2013 |
2012 |
2013 |
2012 | ||
|
Product revenue |
$ 125,426 |
$ 97,874 |
$ 477,444 |
$ 418,550 | |
|
Contract revenue |
917 |
2,820 |
9,957 |
17,694 | |
|
Revenue |
126,343 |
100,694 |
487,401 |
436,244 | |
|
Product revenue |
66,939 |
54,928 |
262,224 |
234,102 | |
|
Contract revenue |
474 |
1,262 |
4,023 |
7,794 | |
|
Cost of Revenue |
67,413 |
56,190 |
266,247 |
241,896 | |
|
Gross Margin |
58,930 |
44,504 |
221,154 |
194,348 | |
|
Operating Expense |
|||||
|
Research & development |
18,008 |
15,344 |
63,649 |
57,066 | |
|
Selling & marketing |
22,199 |
24,727 |
71,529 |
66,412 | |
|
General & administrative |
14,010 |
13,308 |
53,358 |
45,698 | |
|
Total |
54,217 |
53,379 |
188,536 |
169,176 | |
|
Operating income (loss) |
4,713 |
(8,875) |
32,618 |
25,172 | |
|
Other income (expense), net |
(154) |
(42) |
(203) |
435 | |
|
Income (loss) before income taxes |
4,559 |
(8,917) |
32,415 |
25,607 | |
|
Income tax expense (benefit) |
1,371 |
(2,979) |
4,774 |
8,310 | |
|
Net income (loss) |
$ 3,188 |
$ (5,938) |
$ 27,641 |
$ 17,297 | |
|
Net income (loss) per common share: |
|||||
|
Basic |
$ 0.11 |
$ (0.21) |
$ 0.97 |
$ 0.63 | |
|
Diluted |
$ 0.11 |
$ (0.21) |
$ 0.94 |
$ 0.61 | |
|
Shares used in per common share calculations: |
|||||
|
Basic |
28,902 |
27,802 |
28,495 |
27,577 | |
|
Diluted |
29,712 |
27,802 |
29,354 |
28,301 | |
|
Stock-based compensation included in above figures: |
|||||
|
Cost of product revenue |
$ 204 |
$ 174 |
$ 700 |
$ 889 | |
|
Research & development |
737 |
633 |
2,700 |
1,904 | |
|
Selling & marketing |
414 |
234 |
1,246 |
808 | |
|
General & administrative |
2,385 |
1,919 |
8,763 |
7,382 | |
|
Total |
$ 3,740 |
$ 2,960 |
$ 13,409 |
$ 10,983 | |
|
iRobot Corporation | |||
|
Condensed Consolidated Balance Sheets | |||
|
(unaudited, in thousands) | |||
|
December 28, |
December 29, | ||
|
2013 |
2012 | ||
|
Assets |
|||
|
Cash and equivalents |
$ 165,404 |
$ 126,770 | |
|
Short term investments |
21,954 |
12,430 | |
|
Accounts receivable, net |
39,348 |
29,413 | |
|
Unbilled revenues |
856 |
1,196 | |
|
Inventory |
46,107 |
36,965 | |
|
Deferred tax assets |
20,144 |
19,266 | |
|
Other current assets |
6,848 |
8,853 | |
|
Total current assets |
300,661 |
234,893 | |
|
Property, plant and equipment, net |
23,661 |
24,953 | |
|
Deferred tax assets |
10,095 |
8,792 | |
|
Goodwill |
48,751 |
48,951 | |
|
Intangible assets, net |
22,668 |
28,224 | |
|
Other assets |
10,501 |
8,500 | |
|
Total assets |
$ 416,337 |
$ 354,313 | |
|
Liabilities and stockholders' equity |
|||
|
Accounts payable |
$ 41,344 |
$ 42,515 | |
|
Accrued expenses |
14,880 |
13,642 | |
|
Accrued compensation |
19,606 |
11,864 | |
|
Deferred revenue and customer advances |
5,085 |
6,257 | |
|
Total current liabilities |
80,915 |
74,278 | |
|
Long term liabilities |
4,733 |
4,218 | |
|
Stockholders' equity |
330,689 |
275,817 | |
|
Total liabilities and stockholders' equity |
$ 416,337 |
$ 354,313 | |
|
iRobot Corporation | |||||
|
Consolidated Statements of Cash Flows | |||||
|
(unaudited, in thousands) | |||||
|
For the three months ended |
For the twelve months ended | ||||
|
December 28, |
December 29, |
December 28, |
December 29, | ||
|
2013 |
2012 |
2013 |
2012 | ||
|
Cash flows from operating activities: |
|||||
|
Net income (loss) |
$ 3,188 |
$ (5,938) |
$ 27,641 |
$ 17,297 | |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||
|
Depreciation and amortization |
3,140 |
3,491 |
12,169 |
11,672 | |
|
Loss on disposal of assets |
540 |
554 |
189 |
1,332 | |
|
Goodwill and intangible assets impairment |
- |
- |
1,988 |
- | |
|
Stock-based compensation |
3,740 |
2,960 |
13,409 |
10,983 | |
|
Deferred income taxes, net |
(106) |
(908) |
(768) |
(3,763) | |
|
Tax benefit of excess stock based compensation deductions |
(168) |
16 |
(2,406) |
(1,445) | |
|
Non-cash director deferred compensation |
11 |
23 |
44 |
87 | |
|
Changes in operating assets and liabilities — (use) source |
|||||
|
Accounts receivable |
14,679 |
25,601 |
(9,935) |
15,560 | |
|
Unbilled revenue |
700 |
497 |
340 |
1,166 | |
|
Inventory |
2,708 |
696 |
(9,365) |
(807) | |
|
Other assets |
(717) |
(6,158) |
1,980 |
(2,892) | |
|
Accounts payable |
(5,872) |
1,405 |
(1,743) |
(8,684) | |
|
Accrued expenses |
1,471 |
(2,252) |
1,255 |
(656) | |
|
Accrued compensation |
4,747 |
2,736 |
7,751 |
(6,106) | |
|
Deferred revenue and customer advances |
3,059 |
4,139 |
(1,172) |
4,730 | |
|
Change in long term liabilities |
177 |
(298) |
515 |
(613) | |
|
Net cash provided by operating activities |
31,297 |
26,564 |
41,892 |
37,861 | |
|
Cash flows from investing activities: |
|||||
|
Purchase of property and equipment |
(1,705) |
(2,703) |
(6,829) |
(6,770) | |
|
Change in other assets |
- |
- |
(2,000) |
(6,000) | |
|
Purchase of Evolution net of cash received |
- |
(74,530) |
- |
(74,530) | |
|
Purchases of investments |
(5,049) |
- |
(17,946) |
(5,086) | |
|
Sales of investments |
- |
7,500 |
8,044 |
10,000 | |
|
Proceeds from sale of assets |
- |
- |
650 |
- | |
|
Net cash used in investing activities |
(6,754) |
(69,733) |
(18,081) |
(82,386) | |
|
Cash flows from financing activities: |
|||||
|
Proceeds from stock option exercises |
1,265 |
304 |
13,629 |
4,326 | |
|
Income tax withholding payment associated with restricted stock vesting |
(303) |
(7) |
(1,212) |
(784) | |
|
Tax benefit of excess stock based compensation deductions |
168 |
(16) |
2,406 |
1,445 | |
|
Net cash provided by financing activities |
1,130 |
281 |
14,823 |
4,987 | |
|
Net increase (decrease) in cash and cash equivalents |
25,673 |
(42,888) |
38,634 |
(39,538) | |
|
Cash and cash equivalents, at beginning of period |
139,731 |
169,658 |
126,770 |
166,308 | |
|
Cash and cash equivalents, at end of period |
$ 165,404 |
$ 126,770 |
$ 165,404 |
$ 126,770 | |
|
iRobot Corporation | |||||
|
Supplemental Information | |||||
|
(unaudited) | |||||
|
For the three months ended |
For the twelve months ended | ||||
|
December 28, |
December 29, |
December 28, |
December 29, | ||
|
2013 |
2012 |
2013 |
2012 | ||
|
Revenue: * |
|||||
|
Home Robots |
$ 108,263 |
$ 82,918 |
$ 427,853 |
$ 356,805 | |
|
Domestic |
$ 47,843 |
$ 31,821 |
$ 154,112 |
$ 117,690 | |
|
International |
$ 60,420 |
$ 51,097 |
$ 273,741 |
$ 239,115 | |
|
Defense & Security |
$ 16,339 |
$ 15,731 |
$ 50,003 |
$ 70,948 | |
|
Domestic |
$ 10,035 |
$ 14,389 |
$ 34,193 |
$ 64,346 | |
|
International |
$ 6,304 |
$ 1,342 |
$ 15,810 |
$ 6,602 | |
|
Product |
$ 16,321 |
$ 13,773 |
$ 45,612 |
$ 57,092 | |
|
Contract |
$ 18 |
$ 1,958 |
$ 4,391 |
$ 13,856 | |
|
Product Life Cycle |
$ 11,625 |
$ 12,254 |
$ 26,097 |
$ 36,272 | |
|
Gross Margin Percent: |
|||||
|
Home Robots |
49.6% |
51.2% |
49.3% |
51.0% | |
|
Defense & Security |
59.4% |
45.3% |
50.1% |
43.0% | |
|
Total Company |
46.6% |
44.2% |
45.4% |
44.6% | |
|
Units shipped: |
|||||
|
Home Robots * |
494 |
387 |
1,933 |
1,621 | |
|
Defense & Security |
49 |
29 |
534 |
274 | |
|
Average gross selling prices for robot units: |
|||||
|
Home Robots |
$ 233 |
$ 227 |
$ 231 |
$ 222 | |
|
Defense & Security * |
$ 96 |
$ 52 |
$ 36 |
$ 76 | |
|
Defense & Security Funded Product Backlog * |
$ 8,765 |
$ 11,356 |
$ 8,765 |
$ 11,356 | |
|
Days sales outstanding |
29 |
28 |
29 |
28 | |
|
Days in inventory |
63 |
61 |
63 |
61 | |
|
Headcount |
528 |
534 |
528 |
534 | |
|
* in thousands |
|||||
|
iRobot Corporation | |||||
|
Adjusted EBITDA Reconciliation to GAAP | |||||
|
(unaudited, in thousands) | |||||
|
For the three months ended |
For the twelve months ended | ||||
|
December 28, |
December 29, |
December 28, |
December 29, | ||
|
2013 |
2012 |
2013 |
2012 | ||
|
Net income (loss) |
$ 3,188 |
$ (5,938) |
$ 27,641 |
$ 17,297 | |
|
Interest income, net |
(131) |
(201) |
(660) |
(1,016) | |
|
Income tax expense (benefit) |
1,371 |
(2,979) |
4,774 |
8,310 | |
|
Depreciation |
2,153 |
2,418 |
8,077 |
9,898 | |
|
Amortization |
987 |
1,073 |
4,092 |
1,774 | |
|
EBITDA |
7,568 |
(5,627) |
43,924 |
36,263 | |
|
Stock-based compensation expense |
3,740 |
2,960 |
13,409 |
10,983 | |
|
Merger and acquisition expense |
7 |
717 |
400 |
1,404 | |
|
Net intellectual property litigation expense |
758 |
26 |
1,202 |
155 | |
|
Restructuring expense |
721 |
2,905 |
3,296 |
3,679 | |
|
Adjusted EBITDA |
$ 12,794 |
$ 981 |
$ 62,231 |
$ 52,484 | |
|
Use of Non-GAAP Financial Measures |
|||||||||||||
|
In evaluating its business, iRobot considers and uses Adjusted EBITDA as a supplemental measure of its operating performance. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, merger and acquisition expenses, net intellectual property litigation expenses, restructuring expenses and non-cash stock compensation. The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. | |||||||||||||
|
The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company's operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the Company's actual cash expenditures. Other companies may calculate similar measures differently than iRobot, limiting their usefulness as comparative tools. iRobot compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally. | |||||||||||||
SOURCE iRobot Corp.
