|
Three Months Ended |
|
Years Ended |
|||||||||||||
|
December 31, |
|
December 31, |
|||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Stock-based compensation |
|
|
|
|
|
|||||||||||
Cost of sales |
$ |
887 |
|
$ |
816 |
|
|
$ |
3,475 |
|
$ |
3,231 |
|
|||
Sales and marketing |
4,868 |
|
3,810 |
|
|
19,612 |
|
14,218 |
|
|||||||
Research and development |
4,236 |
|
3,489 |
|
|
16,265 |
|
12,580 |
|
|||||||
General and administrative |
3,393 |
|
2,010 |
|
|
12,086 |
|
7,587 |
|
|||||||
(Benefit) provision for income taxes |
(1,433 |
) |
(1,707 |
) |
|
(9,337 |
) |
(7,822 |
) |
|||||||
Total |
$ |
11,951 |
|
$ |
8,418 |
|
|
$ |
42,101 |
|
$ |
29,794 |
|
|||
|
|
|
|
|
|
|||||||||||
Amortization of acquisition intangibles |
|
|
|
|
|
|||||||||||
Cost of sales |
$ |
823 |
|
$ |
810 |
|
|
$ |
3,348 |
|
$ |
3,258 |
|
|||
Sales and marketing |
485 |
|
505 |
|
|
1,970 |
|
2,085 |
|
|||||||
Research and development |
28 |
|
28 |
|
|
112 |
|
113 |
|
|||||||
Other loss, net |
124 |
|
— |
|
|
409 |
|
— |
|
|||||||
(Benefit) provision for income taxes |
(127 |
) |
(163 |
) |
|
(703 |
) |
(681 |
) |
|||||||
Total |
$ |
1,333 |
|
$ |
1,180 |
|
|
$ |
5,136 |
|
$ |
4,775 |
|
|||
|
|
|
|
|
|
|||||||||||
Acquisition transaction costs, restructuring charges, and other |
|
|
|
|
|
|||||||||||
Cost of sales |
$ |
— |
|
$ |
244 |
|
|
$ |
— |
|
$ |
2,057 |
|
|||
Sales and marketing |
5,356 |
|
2,300 |
|
|
13,646 |
|
10,654 |
|
|||||||
Research and development |
3,266 |
|
297 |
|
|
4,166 |
|
2,092 |
|
|||||||
General and administrative (1) |
2,002 |
|
341 |
|
|
11,527 |
|
1,879 |
|
|||||||
Gain on sale of asset (1) |
— |
|
— |
|
|
(26,842 |
) |
— |
|
|||||||
Other loss, net |
— |
|
— |
|
|
— |
|
709 |
|
|||||||
(Benefit) provision for income taxes (2) |
(13,477 |
) |
237 |
|
|
(12,237 |
) |
(3,749 |
) |
|||||||
Total |
$ |
(2,853 |
) |
$ |
3,419 |
|
|
$ |
(9,740 |
) |
$ |
13,642 |
|
|||
(1): During the third quarter of 2019, we recognized a gain of $27 million related to the sale of our Millennium property, presented within "Gain on sale of assets". During the third quarter of 2019, we also recognized a charitable contribution expense of $7 million related to a donation using a portion of the proceeds from the sale of the property, presented within "General and Administrative". |
||||||||||||||||
(2): During the fourth quarter of 2019, we recognized an income tax benefit of $11 million related to the recognition of deferred taxes on the outside basis difference of our AWR business, which was held-for-sale as of December 31, 2019. |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
(Capitalization) and amortization of internally developed software costs |
|
|
|
|
|
|||||||||||
Cost of sales |
$ |
7,012 |
|
$ |
6,557 |
|
|
$ |
27,085 |
|
$ |
25,293 |
|
|||
Research and development |
(1,887 |
) |
(1,056 |
) |
|
(9,066 |
) |
(14,208 |
) |
|||||||
(Benefit) Provision for income taxes |
(1,076 |
) |
(1,155 |
) |
|
(3,784 |
) |
(2,328 |
) |
|||||||
Total |
$ |
4,049 |
|
$ |
4,346 |
|
|
$ |
14,235 |
|
$ |
8,757 |
|
|||
|
|
|
|
|
|
National Instruments |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||
(in thousands, unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Reconciliation of Gross Profit to Non-GAAP Gross Profit |
|
|
|
|
|
|||||||||||
Gross profit, as reported |
|
276,333 |
|
|
272,070 |
|
|
|
1,016,324 |
|
|
1,025,405 |
|
|||
Stock-based compensation |
|
887 |
|
|
816 |
|
|
|
3,475 |
|
|
3,231 |
|
|||
Amortization of acquisition intangibles |
|
823 |
|
|
810 |
|
|
|
3,348 |
|
|
3,258 |
|
|||
Acquisition transaction costs and restructuring charges |
|
— |
|
|
244 |
|
|
|
— |
|
|
2,057 |
|
|||
Amortization of internally developed software costs |
|
7,012 |
|
|
6,557 |
|
|
|
27,085 |
|
|
25,293 |
|
|||
Non-GAAP gross profit |
$ |
285,055 |
|
$ |
280,497 |
|
|
$ |
1,050,232 |
|
$ |
1,059,244 |
|
|||
Non-GAAP gross margin |
78% |
78% |
|
78% |
78% |
|||||||||||
|
|
|
|
|
|
|||||||||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses |
|
|
|
|
|
|||||||||||
Operating expenses, as reported |
|
222,652 |
|
|
210,249 |
|
|
|
841,770 |
|
|
852,526 |
|
|||
Stock-based compensation |
|
(12,497 |
) |
|
(9,309 |
) |
|
|
(47,963 |
) |
|
(34,385 |
) |
|||
Amortization of acquisition intangibles |
|
(513 |
) |
|
(533 |
) |
|
|
(2,082 |
) |
|
(2,198 |
) |
|||
Acquisition transaction costs and restructuring charges |
|
(10,624 |
) |
|
(2,938 |
) |
|
|
(22,339 |
) |
|
(14,625 |
) |
|||
Capitalization of internally developed software costs |
|
1,887 |
|
|
1,056 |
|
|
|
9,066 |
|
|
14,208 |
|
|||
Gain on sale of assets and other (1) |
|
— |
|
|
— |
|
|
|
19,842 |
|
|
— |
|
|||
Non-GAAP operating expenses |
|
200,905 |
|
|
198,525 |
|
|
|
798,294 |
|
|
815,526 |
|
|||
|
|
|
|
|
|
|||||||||||
Reconciliation of Operating Income to Non-GAAP Operating Income |
|
|
|
|
|
|||||||||||
Operating income, as reported |
$ |
53,681 |
|
$ |
61,821 |
|
|
$ |
174,554 |
|
$ |
172,879 |
|
|||
Stock-based compensation |
|
13,384 |
|
|
10,125 |
|
|
|
51,438 |
|
|
37,616 |
|
|||
Amortization of acquisition intangibles |
|
1,336 |
|
|
1,343 |
|
|
|
5,430 |
|
|
5,456 |
|
|||
Acquisition transaction costs and restructuring charges |
|
10,624 |
|
|
3,182 |
|
|
|
22,339 |
|
|
16,682 |
|
|||
Net amortization of internally developed software costs |
|
5,125 |
|
|
5,501 |
|
|
|
18,019 |
|
|
11,085 |
|
|||
Gain on sale of assets and other (1) |
|
— |
|
|
— |
|
|
|
(19,842 |
) |
|
— |
|
|||
Non-GAAP operating income |
$ |
84,150 |
|
$ |
81,972 |
|
|
$ |
251,938 |
|
$ |
243,718 |
|
|||
Non-GAAP operating margin |
23% |
23% |
|
19% |
18% |
|||||||||||
|
|
|
|
|
|
|||||||||||
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes |
|
|
|
|
|
|||||||||||
Income before income taxes, as reported |
$ |
54,292 |
|
$ |
63,463 |
|
|
$ |
180,544 |
|
$ |
176,453 |
|
|||
Stock-based compensation |
|
13,384 |
|
|
10,125 |
|
|
|
51,438 |
|
|
37,616 |
|
|||
Amortization of acquisition intangibles |
|
1,460 |
|
|
1,343 |
|
|
|
5,839 |
|
|
5,456 |
|
|||
Acquisition transaction costs and restructuring charges |
|
10,624 |
|
|
3,182 |
|
|
|
22,339 |
|
|
17,391 |
|
|||
Net amortization of internally developed software costs |
|
5,125 |
|
|
5,501 |
|
|
|
18,019 |
|
|
11,085 |
|
|||
Gain on sale of assets and other (1) |
|
— |
|
|
— |
|
|
|
(19,842 |
) |
|
— |
|
|||
Non-GAAP income before income taxes |
$ |
84,885 |
|
$ |
83,614 |
|
|
$ |
258,337 |
|
$ |
248,001 |
|
|||
|
|
|
|
|
|
|||||||||||
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes |
|
|
|
|
|
|||||||||||
Provision for income taxes, as reported |
$ |
(4,304 |
) |
$ |
6,922 |
|
|
$ |
18,393 |
|
$ |
21,396 |
|
|||
Stock-based compensation |
|
1,433 |
|
|
1,707 |
|
|
|
9,337 |
|
|
7,822 |
|
|||
Amortization of acquisition intangibles |
|
127 |
|
|
163 |
|
|
|
703 |
|
|
681 |
|
|||
Acquisition transaction costs and restructuring charges |
|
2,715 |
|
|
(237 |
) |
|
|
5,650 |
|
|
3,749 |
|
|||
Net amortization of internally developed software costs |
|
1,076 |
|
|
1,155 |
|
|
|
3,784 |
|
|
2,328 |
|
|||
Gain on sale of assets and other (1)(2) |
|
10,762 |
|
|
— |
|
|
|
6,587 |
|
|
— |
|
|||
Tax reform charge (benefit) |
|
— |
|
|
3,051 |
|
|
|
(2,774 |
) |
|
4,197 |
|
|||
Non-GAAP provision for income taxes |
$ |
11,809 |
|
$ |
12,761 |
|
|
$ |
41,680 |
|
$ |
40,173 |
|
|||
(1): During the third quarter of 2019, we recognized a gain of $27 million related to the sale of our Millennium property, presented within "Gain on sale of assets". During the third quarter of 2019, we also recognized a charitable contribution expense of $7 million related to a donation using a portion of the proceeds from the sale of the property, presented within "General and Administrative". |
||||||||||||||||
(2): During the fourth quarter of 2019, we recognized an income tax benefit of $11 million related to the recognition of deferred taxes on the outside basis difference of our AWR business, which was held-for-sale as of December 31, 2019. |
Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Net Income, Non-GAAP Diluted EPS, and EBITDA |
||||||||||||||||
(in thousands, except per share data, unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
December 31, |
|
December 31, |
||||||||||||
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|||||||||||
Net income, as reported |
$ |
58,596 |
|
$ |
56,541 |
|
|
$ |
162,151 |
|
$ |
155,057 |
|
|||
Adjustments to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|||||||||||
Stock-based compensation, net of tax effect |
|
11,951 |
|
|
8,418 |
|
|
|
42,101 |
|
|
29,794 |
|
|||
Amortization of acquisition intangibles, net of tax effect |
|
1,333 |
|
|
1,180 |
|
|
|
5,136 |
|
|
4,775 |
|
|||
Acquisition transaction costs and restructuring charges, net of tax effect |
|
7,909 |
|
|
3,419 |
|
|
|
16,655 |
|
|
13,642 |
|
|||
Net amortization of internally developed software costs, net of tax effect |
|
4,049 |
|
|
4,346 |
|
|
|
14,235 |
|
|
8,757 |
|
|||
Gain on sale of assets (1) and other (2) , net of tax effect |
|
(10,762 |
) |
|
— |
|
|
|
(26,395 |
) |
|
— |
|
|||
Tax reform (benefit) charge |
|
— |
|
|
(3,051 |
) |
|
|
2,774 |
|
|
(4,197 |
) |
|||
Non-GAAP net income |
$ |
73,076 |
|
$ |
70,853 |
|
|
$ |
216,657 |
|
$ |
207,828 |
|
|||
Non-GAAP net margin |
19.9% |
19.7% |
|
16.0% |
15.3% |
|||||||||||
|
|
|
|
|
|
|||||||||||
Diluted EPS, as reported |
$ |
0.45 |
|
$ |
0.42 |
|
|
$ |
1.22 |
|
$ |
1.16 |
|
|||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS |
|
|
|
|
|
|||||||||||
Impact of stock-based compensation, net of tax effect |
|
0.09 |
|
|
0.06 |
|
|
|
0.31 |
|
|
0.22 |
|
|||
Impact of amortization of acquisition intangibles, net of tax effect |
|
0.01 |
|
|
0.01 |
|
|
|
0.04 |
|
|
0.04 |
|
|||
Impact of acquisition transaction costs and restructuring charges, net of tax effect |
|
0.06 |
|
|
0.03 |
|
|
|
0.13 |
|
|
0.10 |
|
|||
Impact of net amortization of internally developed software costs, net of tax effect |
|
0.03 |
|
|
0.03 |
|
|
|
0.11 |
|
|
0.07 |
|
|||
Impact of gain on sale of assets and other (1)(2) , net of tax effect |
|
(0.08 |
) |
|
— |
|
|
|
(0.20 |
) |
|
— |
|
|||
Impact of tax reform (benefit) charge |
|
— |
|
|
(0.02 |
) |
|
|
0.02 |
|
|
(0.03 |
) |
|||
Non-GAAP diluted EPS |
$ |
0.56 |
|
$ |
0.53 |
|
|
$ |
1.63 |
|
$ |
1.56 |
|
|||
(1): During the third quarter of 2019, we recognized a gain of $27 million related to the sale of our Millennium property, presented within "Gain on sale of assets". During the third quarter of 2019, we also recognized a charitable contribution expense of $7 million related to a donation using a portion of the proceeds from the sale of the property, presented within "General and Administrative". |
||||||||||||||||
(2): During the fourth quarter of 2019, we recognized an income tax benefit of $11 million related to the recognition of deferred taxes on the outside basis difference of our AWR business, which was held-for-sale as of December 31, 2019. |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Net income, as reported |
$ |
58,596 |
|
$ |
56,541 |
|
|
$ |
162,151 |
|
$ |
155,057 |
|
|||
Adjustments to reconcile net income to EBITDA: |
|
|
|
|
|
|||||||||||
Interest income, net |
|
(1,934 |
) |
|
(2,040 |
) |
|
|
(8,089 |
) |
|
(5,745 |
) |
|||
Tax (benefit) expense |
|
(4,304 |
) |
|
6,922 |
|
|
|
18,393 |
|
|
21,396 |
|
|||
Depreciation and amortization |
|
18,995 |
|
|
16,932 |
|
|
|
73,541 |
|
|
70,667 |
|
|||
EBITDA |
$ |
71,353 |
|
$ |
78,355 |
|
|
$ |
245,996 |
|
$ |
241,375 |
|
|||
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding |
|
|
|
|
|
|||||||||||
Basic |
|
130,776 |
|
|
132,565 |
|
|
|
131,722 |
|
|
131,987 |
|
|||
Diluted |
|
131,432 |
|
|
133,617 |
|
|
|
132,734 |
|
|
133,274 |
|
Reconciliation of GAAP to Non-GAAP Diluted EPS Guidance |
||||||||
(unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
March 31, 2020 |
||||||
|
|
|
||||||
|
Low |
High |
||||||
Estimated GAAP Diluted EPS |
$ |
0.99 |
|
$ |
1.13 |
|
||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS: |
|
|
||||||
Impact of stock-based compensation, net of tax effect |
|
0.09 |
|
|
0.09 |
|
||
Impact of amortization of acquisition intangibles, net of tax effect |
|
0.01 |
|
|
0.01 |
|
||
Impact of acquisition transaction costs and restructuring charges, net of tax effect |
|
0.05 |
|
|
0.05 |
|
||
Impact of net amortization of software development costs, net of tax effect |
|
0.03 |
|
|
0.03 |
|
||
Impact of gain on divestment, net of tax effect |
|
(0.93 |
) |
|
(0.93 |
) |
||
Estimated Non-GAAP Diluted EPS |
$ |
0.24 |
|
$ |
0.38 |
|
Reconciliation of Estimated GAAP Revenue Growth to GAAP Revenue Growth (excluding AWR) at Midpoint of Guidance |
||
(unaudited) |
||
|
|
Three Months Ended |
|
|
March 31, 2020 |
Estimated YoY GAAP Revenue Growth at midpoint |
4% |
|
plus: Impact of excluding recently divested business (AWR) |
2% |
|
Estimated YoY GAAP Revenue Growth (excluding AWR) at midpoint |
6% |