Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our core operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS
Adjusted net income and Adjusted diluted EPS are non-GAAP performance measures. We define Adjusted net income and Adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our core operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers.
| (amounts in thousands, except per share amounts) | Three Months Ended | Twelve Months Ended | |||||||||||||||||
| 6/30/2021 | 6/30/2020 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||
| Net income, as reported | $ |
136,977 |
|
$ |
93,731 |
|
46.1 |
% |
$ |
457,443 |
|
$ |
321,480 |
|
|
42.3 |
% |
||
| Intangible amortization expense |
|
16,896 |
|
|
14,634 |
|
15.5 |
% |
|
67,501 |
|
|
59,273 |
|
|
13.9 |
% |
||
| Tax effect of intangible amortization (1) |
|
(4,442 |
) |
|
(3,848 |
) |
15.4 |
% |
|
(17,748 |
) |
|
(15,585 |
) |
|
13.9 |
% |
||
| Adjusted net income | $ |
149,431 |
|
$ |
104,517 |
|
43.0 |
% |
$ |
507,196 |
|
$ |
365,168 |
|
|
38.9 |
% |
||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| 6/30/2021 | 6/30/2020 | % Change | 6/30/2021 | 6/30/2020 | % Change | ||||||||||||||
| Diluted EPS, as reported | $ |
5.74 |
|
$ |
3.68 |
|
56.1 |
% |
$ |
18.30 |
|
$ |
12.61 |
|
|
45.1 |
% |
||
| Intangible amortization expense | $ |
0.71 |
|
$ |
0.57 |
|
24.6 |
% |
$ |
2.70 |
|
$ |
2.33 |
|
|
15.9 |
% |
||
| Tax effect of intangible amortization (1) |
|
(0.19 |
) |
|
(0.15 |
) |
30.0 |
% |
|
(0.71 |
) |
|
(0.61 |
) |
|
16.1 |
% |
||
| Adjusted diluted EPS | $ |
6.26 |
|
$ |
4.10 |
|
52.7 |
% |
$ |
20.29 |
|
$ |
14.33 |
|
|
41.6 |
% |
||
| FY22 Guidance Range | |||||||||||||||||||
| (amounts in millions, except per share amounts) | Low End | High End | |||||||||||||||||
| Net income, as reported | $ |
380 |
|
--- |
$ |
400 |
|
||||||||||||
| Intangible amortization expense |
|
68 |
|
--- |
|
68 |
|
||||||||||||
| Tax effect of intangible amortization (1) |
|
(18 |
) |
--- |
|
(18 |
) |
||||||||||||
| Adjusted net income | $ |
430 |
|
--- |
$ |
450 |
|
||||||||||||
| FY22 Guidance Range | |||||||||||||||||||
| Low End | High End | ||||||||||||||||||
| Diluted EPS, as reported | $ |
15.90 |
|
--- |
$ |
16.74 |
|
||||||||||||
| Intangible amortization expense | $ |
2.85 |
|
--- |
$ |
2.85 |
|
||||||||||||
| Tax effect of intangible amortization (1) |
|
(0.75 |
) |
--- |
|
(0.75 |
) |
||||||||||||
| Adjusted diluted EPS | $ |
18.00 |
|
--- |
$ |
18.83 |
|
||||||||||||
| (1) Calculation uses an estimated statutory tax rate of 26.3% on non-GAAP tax deductible adjustments. | |||||||||||||||||||
Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
