NOTE: The prepared remarks will not be read on the conference call. The conference call will include only brief remarks followed by questions and answers.
A replay of the broadcast will be available at 7:00 pm ET at http://www.autodesk.com/investors. This replay will be maintained on Autodesk's website for at least 12 months.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraph under “Business Outlook” above, statements regarding future products, revenue and profitability, and other statements regarding our expected strategies, market and products positions, performance, and results. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: general market, political, economic and business conditions; failure to maintain our revenue growth and profitability; failure to maintain cost reductions and productivity increases or otherwise control our expenses; the success of our internal reorganization and restructuring activities; our performance in particular geographies, including emerging economies; the ability of governments around the world to meet their financial and debt obligations, and finance infrastructure projects; failure to successfully incorporate sales of licenses of products suites into our overall sales strategy; weak or negative growth in the industries we serve; failure to successfully expand adoption of our products including key initiatives; slowing momentum in maintenance billings or revenues; difficulties encountered in integrating new or acquired businesses and technologies; the inability to identify and realize the anticipated benefits of acquisitions; the financial and business condition of our reseller and distribution channels; dependence on and the timing of large transactions; fluctuation in foreign currency exchange rates; the success of our foreign currency hedging program; failure to achieve sufficient sell-through in our channels for new or existing products; pricing pressure; unexpected fluctuations in our tax rate; the timing and degree of expected investments in growth and efficiency opportunities; changes in the timing of product releases and retirements; failure of key new applications to achieve anticipated levels of customer acceptance; failure to achieve continued success in technology advancements, interruptions or terminations in the business of Autodesk consultants; the expense and impact of legal or regulatory proceedings; and any unanticipated accounting charges.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk's report on Form 10-K for the year ended January 31, 2012 and Forms 10-Q for the quarters ended April 30, 2012, July 31, 2012 and October 31, 2012, which are on file with the U.S. Securities and Exchange Commission. Autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About Autodesk
Autodesk, Inc., is a leader in 3D design, engineering and entertainment software. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries - including the last 18 Academy Award winners for Best Visual Effects - use Autodesk software to design, visualize, and simulate their ideas. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-the-art software for global markets. For additional information about Autodesk, visit www.autodesk.com.
Autodesk and AutoCAD are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. Academy Award is a registered trademark of the Academy of Motion Picture Arts and Sciences. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product and service offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
© 2013 Autodesk, Inc. All rights reserved.
| Autodesk, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Net revenue: | ||||||||||||||||
| License and other | $ | 372.0 | $ | 370.2 | $ | 1,390.6 | $ | 1,357.6 | ||||||||
| Maintenance | 234.9 | 222.2 | 921.6 | 858.0 | ||||||||||||
| Total net revenue | 606.9 | 592.4 | 2,312.2 | 2,215.6 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of license and other revenue | 52.4 | 48.3 | 198.1 | 187.1 | ||||||||||||
| Cost of maintenance revenue | 9.6 | 9.2 | 40.4 | 42.0 | ||||||||||||
| Total cost of revenue | 62.0 | 57.5 | 238.5 | 229.1 | ||||||||||||
| Gross profit | 544.9 | 534.9 | 2,073.7 | 1,986.5 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing and sales | 236.0 | 233.5 | 875.5 | 842.6 | ||||||||||||
| Research and development | 149.4 | 149.5 | 600.0 | 566.5 | ||||||||||||
| General and administrative | 67.7 | 60.1 | 248.4 | 223.1 | ||||||||||||
| Restructuring charges (benefits), net | 7.2 | — | 43.9 | (1.3 | ) | |||||||||||
| Total operating expenses | 460.3 | 443.1 | 1,767.8 | 1,630.9 | ||||||||||||
| Income from operations | 84.6 | 91.8 | 305.9 | 355.6 | ||||||||||||
| Interest and other income, net | 1.5 | 1.1 | 4.1 | 7.3 | ||||||||||||
| Income before income taxes | 86.1 | 92.9 | 310.0 | 362.9 | ||||||||||||
| Provision for income taxes | (11.6 | ) | (20.9 | ) | (62.6 | ) | (77.6 | ) | ||||||||
| Net income | $ | 74.5 | $ | 72.0 | $ | 247.4 | $ | 285.3 | ||||||||
| Basic net income per share | $ | 0.33 | $ | 0.32 | $ | 1.09 | $ | 1.25 | ||||||||
| Diluted net income per share | $ | 0.32 | $ | 0.31 | $ | 1.07 | $ | 1.22 | ||||||||
| Weighted average shares used in computing basic net income per share | 224.1 | 226.1 | 226.4 | 227.7 | ||||||||||||
| Weighted average shares used in computing diluted net income per share | 229.6 | 231.5 | 231.7 | 233.3 | ||||||||||||
| Autodesk, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In millions) | |||||||
| January 31, | January 31, | ||||||
| 2013 | 2012 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,612.2 | $ | 1,156.9 | |||
| Marketable securities | 342.1 | 254.4 | |||||
| Accounts receivable, net | 495.1 | 395.1 | |||||
| Deferred income taxes | 42.2 | 30.1 | |||||
| Prepaid expenses and other current assets | 60.8 | 59.4 | |||||
| Total current assets | 2,552.4 | 1,895.9 | |||||
| Marketable securities | 411.1 | 192.8 | |||||
| Computer equipment, software, furniture and leasehold improvements, net | 114.9 | 104.5 | |||||
| Purchased technologies, net | 76.0 | 84.6 | |||||
| Goodwill | 871.5 | 682.4 | |||||
| Deferred income taxes, net | 122.8 | 135.8 | |||||
| Other assets | 159.7 | 131.8 | |||||
| $ | 4,308.4 | $ | 3,227.8 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 94.2 | $ | 89.3 | |||
| Accrued compensation | 189.6 | 183.9 | |||||
| Accrued income taxes | 13.9 | 14.4 | |||||
| Deferred revenue | 647.0 | 582.3 | |||||
| Other accrued liabilities | 99.0 | 84.2 | |||||
| Total current liabilities | 1,043.7 | 954.1 | |||||
| Deferred revenue | 187.6 | 136.9 | |||||
| Long term income taxes payable | 194.2 | 174.8 | |||||
| Long term notes payable, net of discount | 745.6 | — | |||||
| Other liabilities | 94.1 | 79.1 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock | — | — | |||||
| Common stock and additional paid-in capital | 1,449.8 | 1,365.4 | |||||
| Accumulated other comprehensive (loss) income | (5.7 | ) | 5.9 | ||||
| Retained earnings | 599.1 | 511.6 | |||||
| Total stockholders’ equity | 2,043.2 | 1,882.9 | |||||
| $ | 4,308.4 | $ | 3,227.8 | ||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| Twelve Months Ended January 31, | ||||||||
| 2013 | 2012 | |||||||
| (Unaudited) | ||||||||
| Operating activities: | ||||||||
| Net income | $ | 247.4 | $ | 285.3 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation, amortization and accretion | 127.8 | 115.5 | ||||||
| Stock-based compensation expense | 156.3 | 108.8 | ||||||
| Excess tax benefits from stock-based compensation | (12.9 | ) | (31.5 | ) | ||||
| Restructuring charges (benefits), net | 43.9 | (1.3 | ) | |||||
|
Other operating activities |
6.7 | (0.3 | ) | |||||
| Changes in operating assets and liabilities, net of business combinations | (10.1 | ) | 97.0 | |||||
| Net cash provided by operating activities | 559.1 | 573.5 | ||||||
| Investing activities: | ||||||||
| Purchases of marketable securities | (1,397.7 | ) | (614.2 | ) | ||||
| Sales of marketable securities | 332.9 | 149.5 | ||||||
| Maturities of marketable securities | 764.8 | 409.6 | ||||||
| Capital expenditures | (56.4 | ) | (63.0 | ) | ||||
| Acquisitions, net of cash acquired | (263.7 | ) | (221.7 | ) | ||||
| Other investing activities | (27.1 | ) | (30.5 | ) | ||||
| Net cash used in investing activities | (647.2 | ) | (370.3 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net of issuance costs | 220.2 | 176.1 | ||||||
| Repurchases of common stock | (431.2 | ) | (327.4 | ) | ||||
| Draws on line of credit | 110.0 | — | ||||||
| Proceeds from debt, net of discount | 745.6 | — | ||||||
| Repayments of line of credit | (110.0 | ) | — | |||||
| Excess tax benefits from stock-based compensation | 12.9 | 31.5 | ||||||
| Other financing activities | (6.1 | ) | — | |||||
| Net cash provided by (used in) financing activities | 541.4 | (119.8 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | 2.0 | (1.6 | ) | |||||
| Net increase in cash and cash equivalents | 455.3 | 81.8 | ||||||
| Cash and cash equivalents at beginning of fiscal year | 1,156.9 | 1,075.1 | ||||||
| Cash and cash equivalents at end of fiscal year | $ | 1,612.2 | $ | 1,156.9 | ||||
