The Company currently expects the following for the fiscal year ending December 31, 2016:
- GAAP revenue in the range of $1.01 - $1.05 billion
- Non-GAAP revenue in the range of $1.01 - $1.05 billion
- GAAP diluted earnings per share of $2.91 - $3.14
- Non-GAAP diluted earnings per share of $3.58 - $3.76
These statements are forward-looking and actual results may differ materially. Non-GAAP diluted earnings per share is a supplemental financial measure and should not be considered as a substitute for, or superior to, diluted earnings per share determined in accordance with GAAP.
Conference Call Information
ANSYS will hold a conference call at 10:30 a.m. Eastern Time on November 5, 2015 to discuss third quarter results. To participate in the live conference call, dial 866-652-5200 (US) or 412-317-6060 (Canada & Int'l). The call will be recorded and a replay will be available approximately two hours after the call ends. The replay will be available for ten days by dialing 877-344-7529 (US) or 412-317-0088 (Int'l) or 855-669-9658 (CAN toll-free) and entering the pass code 10074596. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com.
ANSYS, INC. AND SUBSIDIARIES | ||
Condensed Consolidated Balance Sheets | ||
(in thousands) | ||
(Unaudited) | ||
September 30, | December 31, | |
2015 | 2014 | |
ASSETS: | ||
Cash & short-term investments | $ 776,923 | $ 788,778 |
Accounts receivable, net | 91,470 | 101,229 |
Goodwill | 1,334,509 | 1,312,182 |
Other intangibles, net | 233,262 | 259,312 |
Other assets | 265,402 | 312,602 |
Total assets | $ 2,701,566 | $ 2,774,103 |
LIABILITIES & STOCKHOLDERS' EQUITY: | ||
Deferred revenue | $ 319,705 | $ 332,664 |
Other liabilities | 170,265 | 223,938 |
Stockholders' equity | 2,211,596 | 2,217,501 |
Total liabilities & stockholders' equity | $ 2,701,566 | $ 2,774,103 |
ANSYS, INC. AND SUBSIDIARIES | ||||
Condensed Consolidated Statements of Income | ||||
(in thousands, except per share data) | ||||
(Unaudited) | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | September 30, | September 30, | |
2015 | 2014 | 2015 | 2014 | |
Revenue: | ||||
Software licenses | $ 140,197 | $ 139,965 | $ 405,655 | $ 406,883 |
Maintenance and service | 97,643 | 94,035 | 285,451 | 274,763 |
Total revenue | 237,840 | 234,000 | 691,106 | 681,646 |
Cost of sales: | ||||
Software licenses | 6,889 | 7,095 | 21,048 | 21,603 |
Amortization | 9,818 | 9,477 | 28,918 | 28,198 |
Maintenance and service | 19,874 | 20,622 | 60,288 | 63,816 |
Total cost of sales | 36,581 | 37,194 | 110,254 | 113,617 |
Gross profit | 201,259 | 196,806 | 580,852 | 568,029 |
Operating expenses: | ||||
Selling, general and administrative | 61,367 | 58,172 | 181,640 | 174,002 |
Research and development | 44,784 | 41,033 | 127,439 | 123,251 |
Amortization | 4,925 | 6,793 | 15,037 | 17,374 |
Total operating expenses | 111,076 | 105,998 | 324,116 | 314,627 |
Operating income | 90,183 | 90,808 | 256,736 | 253,402 |
Interest expense | (95) | (149) | (371) | (578) |
Interest income | 674 | 655 | 2,125 | 2,206 |
Other (expense) income, net | (383) | (395) | 475 | (772) |
Income before income tax provision | 90,379 | 90,919 | 258,965 | 254,258 |
Income tax provision | 24,346 | 25,440 | 74,465 | 69,201 |
Net income | $ 66,033 | $ 65,479 | $ 184,500 | $ 185,057 |
Earnings per share – basic: | ||||
Basic earnings per share | $ 0.74 | $ 0.71 | $ 2.05 | $ 2.01 |
Weighted average shares – basic | 89,694 | 91,875 | 89,873 | 92,224 |
Earnings per share - diluted: | ||||
Diluted earnings per share | $ 0.72 | $ 0.70 | $ 2.01 | $ 1.96 |
Weighted average shares – diluted | 91,593 | 93,905 | 91,820 | 94,397 |
ANSYS, INC. AND SUBSIDIARIES | ||||||
Reconciliation of Non-GAAP Measures | ||||||
(Unaudited) | ||||||
(in thousands, except percentages and per share data) | ||||||
Three Months Ended | ||||||
September 30, 2015 | September 30, 2014 | |||||
As
Reported |
Adjustments |
Non-GAAP
Results |
As Reported |
Adjustments |
Non-GAAP
Results |
|
Total revenue | $ 237,840 | $ 379 (1) | $ 238,219 | $ 234,000 | $ 1,528 (4) | $ 235,528 |
Operating income | 90,183 | 24,257 (2) | 114,440 | 90,808 | 27,794 (5) | 118,602 |
Operating profit margin | 37.9% | 48.0% | 38.8% | 50.4% | ||
Net income | $ 66,033 | $15,978 (3) | $ 82,011 | $ 65,479 | $18,176 (6) | $ 83,655 |
Earnings per share – diluted: | ||||||
Diluted earnings per share | $ 0.72 | $ 0.90 | $ 0.70 | $ 0.89 | ||
Weighted average shares – diluted | 91,593 | 91,593 | 93,905 | 93,905 | ||
(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with accounting for deferred revenue in business combinations. | ||||||
(2) Amount represents $14.7 million of amortization expense associated with intangible assets acquired in business combinations, $8.9 million of stock-based compensation expense, the $0.4 million adjustment to revenue as reflected in (1) above and $0.3 million of transaction expenses related to business combinations. | ||||||
(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $8.3 million. | ||||||
(4) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with accounting for deferred revenue in business combinations. | ||||||
(5) Amount represents $16.3 million of amortization expense associated with intangible assets acquired in business combinations, $10.0 million of stock-based compensation expense and the $1.5 million adjustment to revenue as reflected in (4) above. | ||||||
(6) Amount represents the impact of the adjustments to operating income referred to in (5) above, adjusted for the related income tax impact of $9.6 million. | ||||||
ANSYS, INC. AND SUBSIDIARIES | ||||||
Reconciliation of Non-GAAP Measures | ||||||
(Unaudited) | ||||||
(in thousands, except percentages and per share data) | ||||||
Nine Months Ended | ||||||
September 30, 2015 | September 30, 2014 | |||||
As
Reported |
Adjustments |
Non-GAAP
Results |
As
Reported |
Adjustments |
Non-GAAP
Results |
|
Total revenue | $ 691,106 | $ 1,365 (1) | $ 692,471 | $ 681,646 | $ 4,307 (4) | $ 685,953 |
Operating income | 256,736 | 71,885 (2) | 328,621 | 253,402 | 78,430 (5) | 331,832 |
Operating profit margin | 37.1% | 47.5% | 37.2% | 48.4% | ||
Net income | $ 184,500 | $ 46,458 (3) | $ 230,958 | $ 185,057 | $ 52,063 (6) | $ 237,120 |
Earnings per share – diluted: | ||||||
Diluted earnings per share | $ 2.01 | $ 2.52 | $ 1.96 | $ 2.51 | ||
Weighted average shares – diluted | 91,820 | 91,820 | 94,397 | 94,397 | ||
(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with accounting for deferred revenue in business combinations. | ||||||
(2) Amount represents $44.0 million of amortization expense associated with intangible assets acquired in business combinations, $25.7 million of stock-based compensation expense, the $1.4 million adjustment to revenue as reflected in (1) above and $0.8 million of transaction expenses related to business combinations. | ||||||
(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $25.4 million. | ||||||
(4) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with accounting for deferred revenue in business combinations. | ||||||
(5) Amount represents $45.6 million of amortization expense associated with intangible assets acquired in business combinations, $27.6 million of stock-based compensation expense, the $4.3 million adjustment to revenue as reflected in (4) above and $1.0 million of transaction expenses related to business combinations. | ||||||
(6) Amount represents the impact of the adjustments to operating income referred to in (5) above, adjusted for the related income tax impact of $26.4 million. | ||||||
ANSYS, INC. AND SUBSIDIARIES | |
Reconciliation of Forward-Looking Guidance | |
Quarter Ending December 31, 2015 | |
Earnings Per Share Range
– Diluted |
|
U.S. GAAP expectation | $0.66 - $0.73 |
Adjustment to exclude acquisition accounting adjustment to deferred revenue | - |
Adjustment to exclude acquisition–related amortization | $0.09 - $0.10 |
Adjustment to exclude stock–based compensation | $0.06 - $0.07 |
Non-GAAP expectation | $0.83 - $0.88 |
ANSYS, INC. AND SUBSIDIARIES | |
Reconciliation of Forward-Looking Guidance | |
Year Ending December 31, 2015 | |
Earnings Per Share Range
– Diluted |
|
U.S. GAAP expectation | $2.67 - $2.74 |
Adjustment to exclude acquisition accounting adjustment to deferred revenue | $0.01 |
Adjustment to exclude acquisition–related amortization | $0.39 - $0.40 |
Adjustment to exclude stock–based compensation | $0.25 - $0.26 |
Adjustment to exclude acquisition-related transaction expenses | $0.01 |
Non-GAAP expectation | $3.35 - $3.40 |
ANSYS, INC. AND SUBSIDIARIES | |
Reconciliation of Forward-Looking Guidance | |
Year Ending December 31, 2016 | |
Earnings Per Share Range
– Diluted |
|
U.S. GAAP expectation | $2.91 - $3.14 |
Adjustment to exclude acquisition accounting adjustment to deferred revenue | - |
Adjustment to exclude acquisition–related amortization | $0.34 - $0.36 |
Adjustment to exclude stock–based compensation | $0.28 - $0.31 |
Non-GAAP expectation | $3.58 - $3.76 |