Mitel® (Nasdaq:MITL) (TSX:MNW), a global leader in real-time business, cloud and mobile communications, today announced financial results for the fourth quarter ended
"Record-setting revenue from our December quarter results came from solid performance across the entire business. Results were particularly impressive in our strategic growth pillars of Cloud and Mobile," said
Financial Highlights
in millions | Q4 2015 | Q4 2014 | ||||||||||
(except per share data) | Pro Forma | As Reported |
||||||||||
Constant Currency2 |
Historical Currency |
|||||||||||
Non-GAAP Revenues | $ | 335.7 | $ | 313.8 | $ | 336.8 | $ | 303.1 | ||||
Non-GAAP Net Income | $ | 36.3 | $ | 27.5 | $ | 32.8 | $ | 37.8 | ||||
Non-GAAP EPS | $ | 0.29 | $ | 0.22 | $ | 0.27 | $ | 0.36 | ||||
Adjusted EBITDA1 | $ | 62.2 | $ | 47.8 | $ | 53.1 | $ | 57.9 |
1 - Adjusted EBITDA is defined as Net Income (Loss), adjusted for items as noted in the table included in this press release "Reconciliation of Net Income (Loss) to Adjusted EBITDA"
2 - Constant currency estimates in Q4-2014 assumes the same foreign currency exchange rates as in Q4-2015
For a Reconcilliation of Net Income (Loss) to Non-GAAP Net Income please refer to the tables at the end of this release.
As Reported
"In Q4, our non-GAAP quarterly revenue and adjusted EBITDA were impacted by adverse foreign exchange rates of approximately
Business Highlights
Recurring cloud seats grew by 31,000 during the quarter and now stands at 401,000 installed. Year-over-year, Mitel's total cloud seats installed were up 55% to 1,930,000 seats.
During the quarter, Mitel Mobile added 2 new carrier customer wins, bringing the total to 33 and exited the quarter with a total of 6 carrier customers rolling out Mitel Mobile's VoLTE, VoWiFi or RCS solutions. Since the close of the
Business Outlook
Mitel has set the following financial performance guidance for the quarter ending
Q1-2016 Guidance | ||
Non-GAAP Revenues | ||
Non-GAAP Gross Margin % | 52.5% to 54.5% | |
Adjusted EBITDA % | 7.0% to 11.0% | |
Non-GAAP EPS |
Conference Call Information
Mitel will host an investor conference call and live webcast today at
Non-GAAP Financial Measurements
This press release includes references to non-GAAP financial measures including Adjusted EBITDA, non-GAAP net income, non-GAAP operating expenses, non-GAAP Revenues and non-GAAP Gross Margin. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. We use these non-GAAP financial measures to assist management and investors in understanding our past financial performance and prospects for the future, including changes in our operating results, trends and marketplace performance, exclusive of unusual events or factors which do not directly affect what we consider to be our core operating performance. Non-GAAP measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods. Investors are cautioned that non-GAAP financial measures should not be relied upon as a substitute for financial measures prepared in accordance with generally accepted accounting principles. Please see the reconciliation of non-GAAP financial measures to the most directly comparable
Mitel completed the acquisition of
Forward Looking Statements
Some of the statements in this press release are forward-looking statements (or forward-looking information) within the meaning of applicable
A global market leader in enterprise and mobile communications powering more than 2 billion business connections and 2 billion mobile subscribers every day, Mitel (Nasdaq:MITL) (TSX:MNW) helps businesses and mobile carriers connect, collaborate and provide innovative services to their customers. Our innovation and communications experts serve more than 60 million business users in more than 100 countries, and 130 mobile service providers including more than half of the top 20 mobile carriers in the world. We are uniquely powering the mobile enterprise using the real-time cloud. For more information, go to www.mitel.com and follow us on Twitter @Mitel.
Mitel is the registered trademark of
All other trademarks are the property of their respective owners.
MITL-F
Cloud Metrics Table
CY14 | CY15 | CY15 | CY15 | CY15 | |||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
Total
|
1,246,735 | 1,375,635 | 1,611,172 | 1,763,857 | 1,929,882 | ||||||||||||
Recurring
|
269,155 | 304,956 | 329,620 | 370,093 | 401,737 | ||||||||||||
Retail Cloud Monthly ARPU | $ | 50 | $ | 50 | $ | 49 | $ | 49 | $ | 49 | |||||||
Retail Cloud Avg Seats per Customer | 37 | 39 | 38 | 39 | 39 | ||||||||||||
Retail Cloud Monthly Customer Churn | 0.4 | % | 0.8 | % | 0.7 | % | 0.9 | % | 0.7 | % |
MITEL NETWORKS CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in millions of US dollars) | ||||||||
(unaudited) | ||||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 91.6 | $ | 111.3 | ||||
Accounts receivable | 290.2 | 237.5 | ||||||
Sales-type lease receivables | 12.6 | 18.1 | ||||||
Inventories | 92.8 | 88.3 | ||||||
Other current assets | 75.4 | 53.2 | ||||||
562.6 | 508.4 | |||||||
Non-current portion of sales-type lease receivables | 17.0 | 19.7 | ||||||
Deferred tax asset | 159.4 | 165.3 | ||||||
Property and equipment | 54.7 | 50.7 | ||||||
Identifiable intangible assets | 389.9 | 175.8 | ||||||
658.6 | 340.3 | |||||||
Other non-current assets | 10.5 | 11.6 | ||||||
$ | 1,852.7 | $ | 1,271.8 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 249.4 | $ | 215.0 | ||||
Current portion of deferred revenue | 112.3 | 78.2 | ||||||
Current portion of long-term debt | 11.7 | 6.2 | ||||||
373.4 | 299.4 | |||||||
Long-term debt | 633.6 | 303.6 | ||||||
Long-term portion of deferred revenue | 40.1 | 35.6 | ||||||
Deferred tax liability | 28.2 | 15.3 | ||||||
Pension liability | 126.6 | 136.1 | ||||||
Other non-current liabilities | 35.8 | 34.0 | ||||||
1,237.7 | 824.0 | |||||||
Shareholders' equity | 615.0 | 447.8 | ||||||
$ | 1,852.7 | $ | 1,271.8 | |||||
MITEL NETWORKS CORPORATION | |||||||||||||||||
STATEMENT OF OPERATIONS | |||||||||||||||||
(in millions of US dollars) | |||||||||||||||||
(unaudited) | |||||||||||||||||
US GAAP As Reported Quarter Ended |
Quarter Ended |
US GAAP As Reported Quarter Ended |
Quarter Ended |
||||||||||||||
Non-GAAP Revenues | $ | 335.7 | $ | 335.7 | $ | 303.1 | $ | 336.8 | |||||||||
Less: Purchase accounting revenue adjustments | 6.3 | 6.3 | (1.7 | ) | (9.1 | ) | |||||||||||
Total Revenues | 342.0 | 342.0 | 301.4 | 327.7 | |||||||||||||
Non-GAAP Cost of Revenues | 154.4 | 154.4 | 135.4 | 150.3 | |||||||||||||
Less: Purchase accounting cost of revenue adjustments | 6.5 | 6.5 | - | (4.9 | ) | ||||||||||||
Total Cost of revenues | 160.9 | 160.9 | 135.4 | 145.4 | |||||||||||||
Non-GAAP Gross Margin | 181.3 | 181.3 | 167.7 | 186.5 | |||||||||||||
Less: Purchase accounting gross margin adjustments | (0.2 | ) | (0.2 | ) | (1.7 | ) | (4.2 | ) | |||||||||
Total Gross margin | 181.1 | 181.1 | 166.0 | 182.3 | |||||||||||||
Expenses: | |||||||||||||||||
Selling, general and administrative | 94.9 | 94.9 | 88.6 | 105.6 | |||||||||||||
Research and development | 35.1 | 35.1 | 29.8 | 39.0 | |||||||||||||
Special charges and restructuring costs | 17.0 | 17.0 | 17.0 | 17.8 | |||||||||||||
Amortization of acquisition-related intangible assets | 19.3 | 19.3 | 14.1 | 22.0 | |||||||||||||
166.3 | 166.3 | 149.5 | 184.4 | ||||||||||||||
Operating income (loss) | 14.8 | 14.8 | 16.5 | (2.1 | ) | ||||||||||||
Interest expense | (10.4 | ) | (10.4 | ) | (4.4 | ) | (4.9 | ) | |||||||||
Debt retirement and other debt costs | - | - | - | - | |||||||||||||
Other income (expense) | 0.9 | 0.9 | 1.3 | (1.0 | ) | ||||||||||||
Income (loss) from operations, before income taxes | 5.3 | 5.3 | 13.4 | (8.0 | ) | ||||||||||||
Current income tax recovery (expense) | (8.0 | ) | (8.0 | ) | (10.5 | ) | (11.2 | ) | |||||||||
Deferred income tax recovery (expense) | (3.6 | ) | (3.6 | ) | 7.9 | 7.9 | |||||||||||
Net income (loss) | $ | (6.3 | ) | $ | (6.3 | ) | $ | 10.8 | $ | (11.3 | ) | ||||||
Non-GAAP measures: | |||||||||||||||||
Adjusted EBITDA | $ | 62.2 | $ | 62.2 | $ | 57.9 | $ | 53.1 | |||||||||
Non-GAAP net income | $ | 36.3 | $ | 36.3 | $ | 37.8 | $ | 32.8 | |||||||||
(1) For a reconciliation of Mitel's US GAAP as-reported results to the |
MITEL NETWORKS CORPORATION | |||||||||||||||||
STATEMENT OF OPERATIONS | |||||||||||||||||
(in millions of US dollars) | |||||||||||||||||
(unaudited) | |||||||||||||||||
US GAAP As Reported Year Ended |
Year Ended |
US GAAP As Reported Year Ended |
Year Ended |
||||||||||||||
Non-GAAP Revenues | $ | 1,170.6 | $ | 1,204.9 | $ | 1,113.1 | $ | 1,279.9 | |||||||||
Less: Purchase accounting revenue adjustments | (12.9 | ) | (15.2 | ) | (9.1 | ) | (34.8 | ) | |||||||||
Total Revenues | 1,157.7 | 1,189.7 | 1,104.0 | 1,245.1 | |||||||||||||
Non-GAAP Cost of Revenues | 547.0 | 565.6 | 513.9 | 592.9 | |||||||||||||
Less: Purchase accounting cost of revenue adjustments | (3.2 | ) | (3.2 | ) | - | (13.4 | ) | ||||||||||
Total Cost of revenues | 543.8 | 562.4 | 513.9 | 579.5 | |||||||||||||
Non-GAAP Gross Margin | 623.6 | 639.3 | 599.2 | 687.0 | |||||||||||||
Less: Purchase accounting gross margin adjustments | (9.7 | ) | (12.0 | ) | (9.1 | ) | (21.4 | ) | |||||||||
Total Gross margin | 613.9 | 627.3 | 590.1 | 665.6 | |||||||||||||
Expenses: | |||||||||||||||||
Selling, general and administrative | 363.0 | 389.0 | 344.7 | 414.2 | |||||||||||||
Research and development | 131.4 | 146.2 | 118.3 | 154.4 | |||||||||||||
Special charges and restructuring costs | 54.6 | 71.3 | 72.7 | 88.5 | |||||||||||||
Amortization of acquisition-related intangible assets | 75.1 | 85.6 | 53.4 | 87.5 | |||||||||||||
624.1 | 692.1 | 589.1 | 744.6 | ||||||||||||||
Operating income (loss) | (10.2 | ) | (64.8 | ) | 1.0 | (79.0 | ) | ||||||||||
Interest expense | (32.4 | ) | (33.0 | ) | (21.0 | ) | (23.2 | ) | |||||||||
Debt retirement and other debt costs | (9.6 | ) | (10.2 | ) | (16.2 | ) | (18.0 | ) | |||||||||
Other income | 20.9 | 18.8 | 6.0 | 0.5 | |||||||||||||
Loss from operations, before income taxes | (31.3 | ) | (89.2 | ) | (30.2 | ) | (119.7 | ) | |||||||||
Current income tax recovery (expense) | (13.4 | ) | (14.6 | ) | (7.7 | ) | (3.3 | ) | |||||||||
Deferred income tax recovery (expense) | 24.0 | 24.0 | 30.6 | 31.8 | |||||||||||||
Net loss | $ | (20.7 | ) | $ | (79.8 | ) | $ | (7.3 | ) | $ | (91.2 | ) | |||||
Non-GAAP measures: | |||||||||||||||||
Adjusted EBITDA | $ | 168.1 | $ | 147.2 | $ | 166.9 | $ | 158.0 | |||||||||
Non-GAAP net income | $ | 89.4 | $ | 70.9 | $ | 98.8 | $ | 86.6 | |||||||||
(1) For a reconciliation of Mitel's US GAAP as-reported results to the |
MITEL NETWORKS CORPORATION Cash flow information (in millions of US dollars) (unaudited) |
||||||||||||||||||
As Reported Quarter Ended |
As Reported Quarter Ended |
As Reported Year Ended |
As Reported Year Ended |
|||||||||||||||
Cash provided by (used in): | ||||||||||||||||||
Net cash provided by operating activities | $ | 18.1 | $ | (0.5 | ) | $ | 54.6 | $ | 72.5 | |||||||||
Net cash used in investing activities | (8.0 | ) | (3.6 | ) | (362.9 | ) | (21.7 | ) | ||||||||||
Net cash provided by (used in) financing activities | (0.7 | ) | (0.9 | ) | 292.8 | 28.0 | ||||||||||||
Effect of exchange rate changes on cash balances | (0.7 | ) | (3.8 | ) | (4.2 | ) | (7.7 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 8.7 | (8.8 | ) | (19.7 | ) | 71.1 | ||||||||||||
Cash and cash equivalents, beginning of period | 82.9 | 120.1 | 111.3 | 40.2 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 91.6 | $ | 111.3 | $ | 91.6 | $ | 111.3 | ||||||||||
Additional information on capital expenditures: | ||||||||||||||||||
Capital expenditures acquired with cash | $ | 5.0 | $ | 3.6 | $ | 16.2 | $ | 13.5 | ||||||||||
Capital expenditures financed through capital leases | 1.4 | 3.6 | 4.0 | 8.0 | ||||||||||||||
and other | ||||||||||||||||||
Total capital expenditures | $ | 6.4 | $ | 7.2 | $ | 20.2 | $ | 21.5 | ||||||||||
MITEL NETWORKS CORPORATION | |||||||||||||||||||||||||||||
Segmented Information | |||||||||||||||||||||||||||||
(in millions of US dollars) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Quarter Ended |
Quarter Ended |
||||||||||||||||||||||||||||
Enterprise segment |
Cloud segment |
Mobile segment |
Total | Enterprise segment |
Cloud segment |
Mobile segment |
Total | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Product | $ | 160.1 | $ | 15.0 | $ | 39.0 | $ | 214.1 | $ | 160.1 | $ | 15.0 | $ | 39.0 | $ | 214.1 | |||||||||||||
Recurring | 48.5 | 28.1 | 10.0 | 86.6 | 48.5 | 28.1 | 10.0 | 86.6 | |||||||||||||||||||||
Services | 25.0 | 0.8 | 9.2 | 35.0 | 25.0 | 0.8 | 9.2 | 35.0 | |||||||||||||||||||||
Non-GAAP Revenues | 233.6 | 43.9 | 58.2 | 335.7 | 233.6 | 43.9 | 58.2 | 335.7 | |||||||||||||||||||||
Purchase accounting adjustments | (0.5 | ) | - | 6.8 | 6.3 | (0.5 | ) | - | 6.8 | 6.3 | |||||||||||||||||||
Total revenues | $ | 233.1 | $ | 43.9 | $ | 65.0 | $ | 342.0 | $ | 233.1 | $ | 43.9 | $ | 65.0 | $ | 342.0 | |||||||||||||
Gross margin | |||||||||||||||||||||||||||||
Product | $ | 87.1 | $ | 8.9 | $ | 23.6 | $ | 119.6 | $ | 87.1 | $ | 8.9 | $ | 23.6 | $ | 119.6 | |||||||||||||
Recurring | 28.8 | 13.3 | 5.3 | 47.4 | 28.8 | 13.3 | 5.3 | 47.4 | |||||||||||||||||||||
Services | 9.3 | 0.4 | 4.6 | 14.3 | 9.3 | 0.4 | 4.6 | 14.3 | |||||||||||||||||||||
Non-GAAP Gross Margin | 125.2 | 22.6 | 33.5 | 181.3 | 125.2 | 22.6 | 33.5 | 181.3 | |||||||||||||||||||||
Purchase accounting adjustments | (0.5 | ) | - | 0.3 | (0.2 | ) | (0.5 | ) | - | 0.3 | (0.2 | ) | |||||||||||||||||
Total gross margin | $ | 124.7 | $ | 22.6 | $ | 33.8 | $ | 181.1 | $ | 124.7 | $ | 22.6 | $ | 33.8 | $ | 181.1 | |||||||||||||
Quarter Ended |
Quarter Ended |
||||||||||||||||||||||||||||
Enterprise segment |
Cloud segment |
Mobile segment |
Total | Enterprise segment |
Cloud segment |
Mobile segment |
Total | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Product | $ | 195.2 | $ | 7.4 | $ | - | $ | 202.6 | $ | 195.2 | $ | 7.4 | $ | 18.8 | $ | 221.4 | |||||||||||||
Recurring | 52.3 | 22.6 | - | 74.9 | 52.3 | 22.6 | 7.0 | 81.9 | |||||||||||||||||||||
Services | 25.2 | 0.4 | - | 25.6 | 25.2 | 0.4 | 7.9 | 33.5 | |||||||||||||||||||||
Non-GAAP Revenues | 272.7 | 30.4 | - | 303.1 | 272.7 | 30.4 | 33.7 | 336.8 | |||||||||||||||||||||
Purchase accounting adjustments | (1.7 | ) | - | - | (1.7 | ) | (1.7 | ) | - | (7.4 | ) | (9.1 | ) | ||||||||||||||||
Total revenues | $ | 271.0 | $ | 30.4 | $ | - | $ | 301.4 | $ | 271.0 | $ | 30.4 | $ | 26.3 | $ | 327.7 | |||||||||||||
Gross margin | |||||||||||||||||||||||||||||
Product | $ | 114.0 | $ | 4.7 | $ | - | $ | 118.7 | $ | 114.0 | $ | 4.7 | $ | 11.3 | $ | 130.0 | |||||||||||||
Recurring | 28.2 | 11.1 | - | 39.3 | 28.2 | 11.1 | 3.6 | 42.9 | |||||||||||||||||||||
Services | 9.5 | 0.2 | - | 9.7 | 9.5 | 0.2 | 3.9 | 13.6 | |||||||||||||||||||||
Non-GAAP Gross Margin | 151.7 | 16.0 | - | 167.7 | 151.7 | 16.0 | 18.8 | 186.5 | |||||||||||||||||||||
Purchase accounting adjustments | (1.7 | ) | - | - | (1.7 | ) | (1.7 | ) | - | (2.5 | ) | (4.2 | ) | ||||||||||||||||
Total gross margin | $ | 150.0 | $ | 16.0 | $ | - | $ | 166.0 | $ | 150.0 | $ | 16.0 | $ | 16.3 | $ | 182.3 |
MITEL NETWORKS CORPORATION | |||||||||||||||||||||||||||||
Segmented Information | |||||||||||||||||||||||||||||
(in millions of US dollars) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Year Ended |
Year Ended |
||||||||||||||||||||||||||||
Enterprise segment |
Cloud segment |
Mobile segment |
Total | Enterprise segment |
Cloud segment |
Mobile segment |
Total | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Product | $ | 594.1 | $ | 48.8 | $ | 86.8 | $ | 729.7 | $ | 594.1 | $ | 48.8 | $ | 101.6 | $ | 744.5 | |||||||||||||
Recurring | 192.2 | 104.8 | 26.1 | 323.1 | 192.2 | 104.8 | 38.9 | 335.9 | |||||||||||||||||||||
Services | 86.3 | 2.5 | 29.0 | 117.8 | 86.3 | 2.5 | 35.7 | 124.5 | |||||||||||||||||||||
Non-GAAP Revenues | 872.6 | 156.1 | 141.9 | 1,170.6 | 872.6 | 156.1 | 176.2 | 1,204.9 | |||||||||||||||||||||
Purchase accounting adjustments | (2.9 | ) | - | (10.0 | ) | (12.9 | ) | (2.9 | ) | - | (12.3 | ) | (15.2 | ) | |||||||||||||||
Total revenues | $ | 869.7 | $ | 156.1 | $ | 131.9 | $ | 1,157.7 | $ | 869.7 | $ | 156.1 | $ | 163.9 | $ | 1,189.7 | |||||||||||||
Gross margin | |||||||||||||||||||||||||||||
Product | $ | 329.7 | $ | 27.2 | $ | 47.6 | $ | 404.5 | $ | 329.7 | $ | 27.2 | $ | 58.5 | $ | 415.4 | |||||||||||||
Recurring | 110.5 | 49.7 | 13.5 | 173.7 | 110.5 | 49.7 | 18.9 | 179.1 | |||||||||||||||||||||
Services | 29.7 | 1.3 | 14.4 | 45.4 | 29.7 | 1.3 | 13.8 | 44.8 | |||||||||||||||||||||
Non-GAAP Gross Margin | 469.9 | 78.2 | 75.5 | 623.6 | 469.9 | 78.2 | 91.2 | 639.3 | |||||||||||||||||||||
Purchase accounting adjustments | (2.9 | ) | - | (6.8 | ) | (9.7 | ) | (2.9 | ) | - | (9.1 | ) | (12.0 | ) | |||||||||||||||
Total gross margin | $ | 467.0 | $ | 78.2 | $ | 68.7 | $ | 613.9 | $ | 467.0 | $ | 78.2 | $ | 82.1 | $ | 627.3 | |||||||||||||
Year Ended |
Year Ended |
||||||||||||||||||||||||||||
Enterprise segment |
Cloud segment |
Mobile segment |
Total | Enterprise segment |
Cloud segment |
Mobile segment |
Total | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Product | $ | 708.5 | $ | 29.1 | $ | - | $ | 737.6 | $ | 735.1 | $ | 29.8 | $ | 77.5 | $ | 842.4 | |||||||||||||
Recurring | 196.2 | 84.3 | - | 280.5 | 202.4 | 85.1 | 25.5 | 313.0 | |||||||||||||||||||||
Services | 94.0 | 1.0 | - | 95.0 | 96.5 | 1.2 | 26.8 | 124.5 | |||||||||||||||||||||
Non-GAAP Revenues | 998.7 | 114.4 | - | 1,113.1 | 1,034.0 | 116.1 | 129.8 | 1,279.9 | |||||||||||||||||||||
Purchase accounting adjustments | (9.1 | ) | - | - | (9.1 | ) | (10.2 | ) | - | (24.6 | ) | (34.8 | ) | ||||||||||||||||
Total revenues | $ | 989.6 | $ | 114.4 | $ | - | $ | 1,104.0 | $ | 1,023.8 | $ | 116.1 | $ | 105.2 | $ | 1,245.1 | |||||||||||||
Gross margin | |||||||||||||||||||||||||||||
Product | $ | 405.9 | $ | 16.4 | $ | - | $ | 422.3 | $ | 417.9 | $ | 16.7 | $ | 48.8 | $ | 483.4 | |||||||||||||
Recurring | 101.9 | 40.9 | - | 142.8 | 103.8 | 41.2 | 12.8 | 157.8 | |||||||||||||||||||||
Services | 33.6 | 0.5 | - | 34.1 | 34.8 | 0.5 | 10.5 | 45.8 | |||||||||||||||||||||
Non-GAAP Gross Margin | 541.4 | 57.8 | - | 599.2 | 556.5 | 58.4 | 72.1 | 687.0 | |||||||||||||||||||||
Purchase accounting adjustments | (9.1 | ) | - | - | (9.1 | ) | (10.2 | ) | - | (11.2 | ) | (21.4 | ) | ||||||||||||||||
Total gross margin | $ | 532.3 | $ | 57.8 | $ | - | $ | 590.1 | $ | 546.3 | $ | 58.4 | $ | 60.9 | $ | 665.6 |
MITEL NETWORKS CORPORATION | |||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||||||||||||||
(in millions of US dollars) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
US GAAP As Reported Quarter Ended |
Quarter Ended |
US GAAP As Reported Quarter Ended |
Quarter Ended |
||||||||||||||||
Net income (loss) | $ | (6.3 | ) | $ | (6.3 | ) | $ | 10.8 | $ | (11.3 | ) | ||||||||
Adjustments: | |||||||||||||||||||
Interest expense | 10.4 | 10.4 | 4.4 | 4.9 | |||||||||||||||
Income tax expense (recovery) | 11.6 | 11.6 | 2.6 | 3.3 | |||||||||||||||
Amortization and depreciation | 25.7 | 25.7 | 20.4 | 29.2 | |||||||||||||||
Foreign exchange loss (gain) | (0.3 | ) | (0.3 | ) | (0.6 | ) | 1.9 | ||||||||||||
Special charges and restructuring costs | 17.0 | 17.0 | 17.0 | 17.8 | |||||||||||||||
Stock-based compensation | 3.9 | 3.9 | 1.6 | 3.1 | |||||||||||||||
Purchase accounting adjustments | 0.2 | 0.2 | 1.7 | 4.2 | |||||||||||||||
Adjusted EBITDA | $ | 62.2 | $ | 62.2 | $ | 57.9 | $ | 53.1 |
MITEL NETWORKS CORPORATION | |||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||||||||||||||
(in millions of US dollars) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
US GAAP As Reported Year Ended |
Year Ended |
US GAAP As Reported Year Ended |
Year Ended |
||||||||||||||||
Net loss | $ | (20.7 | ) | $ | (79.8 | ) | $ | (7.3 | ) | $ | (91.2 | ) | |||||||
Adjustments: | |||||||||||||||||||
Interest expense | 32.4 | 33.0 | 21.0 | 23.2 | |||||||||||||||
Income tax expense (recovery) | (10.6 | ) | (9.4 | ) | (22.9 | ) | (28.5 | ) | |||||||||||
Amortization and depreciation | 99.1 | 111.1 | 75.9 | 114.1 | |||||||||||||||
Foreign exchange loss (gain) | (18.8 | ) | (16.7 | ) | (3.9 | ) | 1.8 | ||||||||||||
Special charges and restructuring costs | 54.6 | 71.3 | 72.7 | 88.5 | |||||||||||||||
Stock-based compensation | 12.8 | 15.5 | 6.1 | 10.7 | |||||||||||||||
Debt retirement and other debt costs | 9.6 | 10.2 | 16.2 | 18.0 | |||||||||||||||
Purchase accounting adjustments | 9.7 | 12.0 | 9.1 | 21.4 | |||||||||||||||
Adjusted EBITDA | $ | 168.1 | $ | 147.2 | $ | 166.9 | $ | 158.0 | |||||||||||
MITEL NETWORKS CORPORATION | |||||||||||||||||||
Reconciliation of Net Income (Loss) to Non-GAAP Net Income | |||||||||||||||||||
(in millions of US dollars, except per share amounts) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
US GAAP As Reported Quarter Ended |
Quarter Ended |
US GAAP As Reported Quarter Ended |
Quarter Ended |
||||||||||||||||
Net income (loss) | $ | (6.3 | ) | $ | (6.3 | ) | $ | 10.8 | $ | (11.3 | ) | ||||||||
Income tax expense (recovery) | 11.6 | 11.6 | 2.6 | 3.3 | |||||||||||||||
Net income (loss), before income taxes | 5.3 | 5.3 | 13.4 | (8.0 | ) | ||||||||||||||
Adjustments: | |||||||||||||||||||
Foreign exchange loss (gain) | (0.3 | ) | (0.3 | ) | (0.6 | ) | 1.9 | ||||||||||||
Special charges and restructuring costs | 17.0 | 17.0 | 17.0 | 17.8 | |||||||||||||||
Stock-based compensation | 3.9 | 3.9 | 1.6 | 3.1 | |||||||||||||||
Amortization of acquisition-related intangibles assets | 19.3 | 19.3 | 14.1 | 22.0 | |||||||||||||||
Purchase accounting adjustments | 0.2 | 0.2 | 1.7 | 4.2 | |||||||||||||||
Non-GAAP net income, before income taxes | 45.4 | 45.4 | 47.2 | 41.0 | |||||||||||||||
Non-GAAP tax expense(1) | (9.1 | ) | (9.1 | ) | (9.4 | ) | (8.2 | ) | |||||||||||
Non-GAAP net income | $ | 36.3 | $ | 36.3 | $ | 37.8 | $ | 32.8 | |||||||||||
Non-GAAP net income per share, diluted: | |||||||||||||||||||
Non-GAAP net income per common share | $ | 0.29 | $ | 0.29 | $ | 0.36 | $ | 0.27 | |||||||||||
Non-GAAP weighted-average number of common shares outstanding (in millions): | 125.1 | 125.1 | 103.8 | 123.5 | |||||||||||||||
(1) Non-GAAP tax expense is based on an estimated effective tax rate of 20%. |
MITEL NETWORKS CORPORATION | |||||||||||||||||||
Reconciliation of Net Income (Loss) to Non-GAAP Net Income | |||||||||||||||||||
(in millions of US dollars, except per share amounts) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
US GAAP As Reported Year Ended |
Year Ended |
US GAAP As Reported Year Ended |
Year Ended |
||||||||||||||||
Net loss | $ | (20.7 | ) | $ | (79.8 | ) | $ | (7.3 | ) | $ | (91.2 | ) | |||||||
Income tax expense (recovery) | (10.6 | ) | (9.4 | ) | (22.9 | ) | (28.5 | ) | |||||||||||
Net loss, before income taxes | (31.3 | ) | (89.2 | ) | (30.2 | ) | (119.7 | ) | |||||||||||
Adjustments: | |||||||||||||||||||
Foreign exchange loss (gain) | (18.8 | ) | (16.7 | ) | (3.9 | ) | 1.8 | ||||||||||||
Special charges and restructuring costs | 54.6 | 71.3 | 72.7 | 88.5 | |||||||||||||||
Stock-based compensation | 12.8 | 15.5 | 6.1 | 10.7 | |||||||||||||||
Amortization of acquisition-related intangibles assets | 75.1 | 85.6 | 53.4 | 87.5 | |||||||||||||||
Debt retirement and other debt costs | 9.6 | 10.2 | 16.2 | 18.0 | |||||||||||||||
Purchase accounting adjustments | 9.7 | 12.0 | 9.1 | 21.4 | |||||||||||||||
Non-GAAP net income, before income taxes | 111.7 | 88.7 | 123.4 | 108.2 | |||||||||||||||
Non-GAAP tax expense(1) | (22.3 | ) | (17.8 | ) | (24.6 | ) | (21.6 | ) | |||||||||||
Non-GAAP net income | $ | 89.4 | $ | 70.9 | $ | 98.8 | $ | 86.6 | |||||||||||
Non-GAAP net income per share, diluted: | |||||||||||||||||||
Non-GAAP net income per common share | $ | 0.76 | $ | 0.56 | $ | 0.99 | $ | 0.70 | |||||||||||
Non-GAAP weighted-average number of common shares outstanding (in millions): | 118.0 | 126.8 | 100.2 | 123.7 | |||||||||||||||
(1) Non-GAAP tax expense is based on an estimated effective tax rate of 20%. |