BEDFORD, Mass.--(BUSINESS WIRE)--iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2011.
- Revenue for the fourth quarter of 2011 increased 15 percent to $130.8 million, compared with $114.0 million for the same quarter one year ago. Revenue for the full year 2011 increased 16 percent to $465.5 million from $401.0 million for the full year 2010.
- Net income in the fourth quarter of 2011 was $10.6 million, compared with $7.0 million in the fourth quarter of 2010. Net income for the full year 2011 was $40.2 million, compared with $25.5 million for the same period in 2010.
- Quarterly earnings per share were $0.38, compared with $0.26 in the fourth quarter last year. Full-year earnings per share were $1.44, compared with $0.96 last year. The full-year results include the impact of a $3.5 million, or $0.12 per share, tax benefit in Q3 2011 and a $2.3 million, or $0.08 per share, tax benefit in Q3 2010. Excluding the impact of these tax benefits, earnings per share for the full year 2011 would have been $1.32, compared with $0.88 for the full year 2010.
- Adjusted EBITDA for the fourth quarter of 2011 was $21.3 million, or 16 percent of revenue, compared with $11.7 million, or 10 percent of revenue, in the fourth quarter of 2010. Adjusted EBITDA for the full year 2011 was $73.0 million, compared with $49.3 million for the same period a year ago.
- Raising Adjusted EBITDA margin target to high-teens by 2014.
“Our record financial results in 2011 were exceptional on all fronts, driven by especially strong performance in our Home Robots division. Revenue increased 16 percent to $465 million for the full year, while Adjusted EBITDA increased nearly 50 percent to $73 million or 16 percent of revenue,” said Colin Angle, chairman and chief executive officer of iRobot. “EPS of $1.44 for the year was up 50 percent from 2010.
“As we look at 2012, we feel very good about the growth opportunity for our home robot business in 2012 and beyond. However, we expect a decline in top and bottom line in our G&I division this year due to our current limited visibility in our defense business. We anticipate continued demand from the warfighters and support from military leadership for our products will drive higher revenue in the second half of 2012.
“To capitalize on our growing home robot business, intermediate and longer term opportunities in the defense business and exciting emerging opportunities, we will continue to make investments in marketing and iR&D that extend our leadership position.
“Given the underlying strength of our business model, I am confident that we will achieve our updated 3-year targets of:
- Mid-to-high-teen revenue CAGR
- High-teen Adjusted EBITDA margin and
- High single digit OCF margin.”
Business Highlights
- Surpassed each of our 3 key long-term financial goals, including achievement of mid-teen Adjusted EBITDA margin target, a year ahead of schedule.
- Strong demand in overseas markets drove a 21 percent year-over-year increase in full-year home robot revenue. International home robot revenue of $196 million comprised 70 percent of total home robot 2011 revenue.
- Government & industrial robot revenue grew 9 percent in 2011, driven by shipments of Small Unmanned Ground Vehicles and spares.
- In 2011, operating cash flow was $55.7 million, compared with $49.2 million in 2010. As a result of improved net income, our year-end cash and investment position was $184 million.
Financial Expectations
Management provides the following expectations with respect to the year ending December 29, 2012 and first quarter ending March 31, 2012.
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Fiscal Year 2012: |
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| Revenue | $465 - $485 million | |
| Earnings Per Share | $0.75 - $0.95 | |
| Adjusted EBITDA | $56 - $63 million | |
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Q1 2012: |
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| Revenue | $90 - $100 million | |
| Earnings Per Share | ($0.08) - $0.00 | |
| Adjusted EBITDA | $2 - $5 million | |
Fourth-Quarter and Full-Year Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. ET to discuss its financial results for the fourth fiscal quarter and full year 2011, business outlook, and outlook for 2012 financial performance. Pertinent details include:
| Date: | Thursday, February 9, 2012 | |
| Time: | 8:30 a.m. ET | |
| Call-In Number: | 847-413-3362 | |
| Passcode: | 31615791 |
A live, audio broadcast of the conference call will also be available at http://investor.irobot.com/phoenix.zhtml?c=193096&p=irol-irhome. An archived version of the broadcast will be available on the same website shortly after the conclusion of the live event. A replay of the telephone conference call will be available through February 16, and can be accessed by dialing 630-652-3042, passcode 31615791#.
About iRobot Corp.
iRobot designs and builds robots that make a difference. The company’s home robots help people find smarter ways to clean, and its government and industrial robots protect those in harm’s way. iRobot’s consumer and military robots feature iRobot Aware® robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visit www.irobot.com.
For iRobot Investors
Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, iRobot Corp.’s expectations regarding future financial performance and growth, demand for our robots, longer-term profitability and operating performance, and anticipated revenue, earnings per share and Adjusted EBITDA for the full year ending December 29, 2012 and the first quarter ending March 31, 2012. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: our ability to operate in an emerging market, the financial strength of our customers and retailers, general economic conditions, our dependence on the U.S. federal government and government contracts, the timing of government contracts and orders, market acceptance of our products, changes in government policies or spending priorities, and competition. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. iRobot Corp. undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by iRobot Corp., see the disclosure contained in our public filings with the Securities and Exchange Commission.
This release includes Adjusted EBITDA, a non-GAAP financial measure as defined by SEC Regulation G. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, merger and acquisition expenses, net intellectual property litigation related activity, restructuring related expense, and non-cash stock compensation. A reconciliation between net income and Adjusted EBITDA are provided in the financial tables at the end of this press release.
| iRobot Corporation | |||||||||||
| Consolidated Statement of Income | |||||||||||
| (in thousands, except per share amounts) | |||||||||||
| (unaudited) | |||||||||||
| For the three months ended | For the twelve months ended | ||||||||||
| December 31, | January 1, | December 31, | January 1, | ||||||||
| 2011 | 2011 | 2011 | 2011 | ||||||||
| Revenue | |||||||||||
| Product revenue | $ | 122,425 | $ | 103,287 | $ | 426,525 | $ | 360,394 | |||
| Contract revenue | 8,343 | 10,708 | 38,975 | 40,558 | |||||||
| Total | 130,768 | 113,995 | 465,500 | 400,952 | |||||||
| Cost of Revenue | |||||||||||
| Product revenue | 69,210 | 62,506 | 246,905 | 228,403 | |||||||
| Contract revenue | 5,473 | 6,001 | 26,477 | 27,117 | |||||||
| Total | 74,683 | 68,507 | 273,382 | 255,520 | |||||||
| Gross Margin | 56,085 | 45,488 | 192,118 | 145,432 | |||||||
| Operating Expense | |||||||||||
| Research & development | 10,675 | 8,434 | 36,498 | 24,809 | |||||||
| Selling & marketing | 18,243 | 19,576 | 58,544 | 50,535 | |||||||
| General & administrative | 12,094 | 9,925 | 43,753 | 36,618 | |||||||
| Total | 41,012 | 37,935 | 138,795 | 111,962 | |||||||
| Operating income | 15,073 | 7,553 | 53,323 | 33,470 | |||||||
| Other income (expense), net | (40 | ) | 136 | 218 | 504 | ||||||
| Pre-tax income | 15,033 | 7,689 | 53,541 | 33,974 | |||||||
| Income tax expense | 4,395 | 689 | 13,350 | 8,460 | |||||||
| Net income | $ | 10,638 | $ | 7,000 | $ | 40,191 | $ | 25,514 | |||
| Net income per common share: | |||||||||||
| Basic | $ | 0.39 | $ | 0.27 | $ | 1.50 | $ | 1.00 | |||
| Diluted | $ | 0.38 | $ | 0.26 | $ | 1.44 | $ | 0.96 | |||
| Shares used in per common share calculations: | |||||||||||
| Basic | 27,119 | 25,604 | 26,712 | 25,394 | |||||||
| Diluted | 28,147 | 26,798 | 27,924 | 26,468 | |||||||
| Stock-based compensation included in above figures: | |||||||||||
| Cost of product revenue | $ | 281 | $ | 314 | $ | 1,197 | $ | 1,311 | |||
| Cost of contract revenue | 113 | 109 | 478 | 446 | |||||||
| Research & development | 262 | 237 | 743 | 725 | |||||||
| Selling & marketing | 211 | 276 | 724 | 1,161 | |||||||
| General & administrative | 1,531 | 1,197 | 5,642 | 4,522 | |||||||
| Total | $ | 2,398 | $ | 2,133 | $ | 8,784 | $ | 8,165 | |||
| iRobot Corporation | ||||||
| Condensed Consolidated Balance Sheet | ||||||
| (unaudited, in thousands) | ||||||
| December 31, | January 1, | |||||
| 2011 | 2011 | |||||
| Assets | ||||||
| Cash and equivalents | $ | 166,308 | $ | 108,383 | ||
| Short term investments | 17,811 | 13,928 | ||||
| Accounts receivable, net | 43,338 | 34,056 | ||||
| Unbilled revenues | 2,362 | 4,012 | ||||
| Inventory | 31,089 | 27,160 | ||||
| Deferred tax assets | 15,344 | 12,917 | ||||
| Other current assets | 7,928 | 6,137 | ||||
| Total current assets | 284,180 | 206,593 | ||||
| Property, plant and equipment, net | 29,029 | 25,620 | ||||
| Deferred tax assets | 6,127 | 8,338 | ||||
| Other assets | 12,877 | 13,780 | ||||
| Total assets | $ | 332,213 | $ | 254,331 | ||
| Liabilities and stockholders' equity | ||||||
| Accounts payable | $ | 48,406 | $ | 38,689 | ||
| Accrued expenses | 17,188 | 15,790 | ||||
| Accrued compensation | 17,879 | 17,827 | ||||
| Deferred revenue and customer advances | 1,527 | 3,534 | ||||
| Total current liabilities | 85,000 | 75,840 | ||||
| Long term liabilities | 4,255 | 3,584 | ||||
| Stockholders' equity | 242,958 | 174,907 | ||||
| Total liabilities and stockholders' equity | $ | 332,213 | $ | 254,331 | ||
|
iRobot Corporation |
||||||||||||||
| Consolidated Statement of Cash Flows | ||||||||||||||
| (unaudited, in thousands) | ||||||||||||||
| For the three months ended | For the twelve months ended | |||||||||||||
| December 31, | January 1, | December 31, | January 1, | |||||||||||
| 2011 | 2011 | 2011 | 2011 | |||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 10,638 | $ | 7,000 | $ | 40,191 | $ | 25,514 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 3,075 | 1,868 | 10,312 | 7,541 | ||||||||||
| Loss on disposal of property and equipment | 123 | 87 | 599 | 204 | ||||||||||
| Stock-based compensation | 2,398 | 2,133 | 8,784 | 8,165 | ||||||||||
| Deferred income taxes, net | (295 | ) | (1,986 | ) | 6,154 | (4,998 | ) | |||||||
| Tax benefit of excess stock based compensation deductions | (915 | ) | (1,767 | ) | (6,917 | ) | (2,622 | ) | ||||||
| Non-cash director deferred compensation | 36 | 33 | 162 | 132 | ||||||||||
| Changes in operating assets and liabilities — (use) source |
|
|
||||||||||||
| Accounts receivable | (1,938 | ) | (6,262 | ) | (9,282 | ) | 1,115 | |||||||
| Unbilled revenue | 5,537 | (1,478 | ) | 1,650 | (2,181 | ) | ||||||||
| Inventory | 900 | 6,809 | (3,929 | ) | 5,246 | |||||||||
| Other assets | 4,729 | (3,092 | ) | (1,843 | ) | (2,082 | ) | |||||||
| Accounts payable | 7,884 | 3,012 | 9,717 | 8,130 | ||||||||||
| Accrued expenses | 1,951 | 1,810 | 1,421 | 1,495 | ||||||||||
| Accrued compensation | 2,834 | 4,710 | 52 | 4,302 | ||||||||||
| Deferred revenue | (831 | ) | 1,511 | (2,007 | ) | (374 | ) | |||||||
| Change in long term liabilities | 528 | (108 | ) | 671 | (430 | ) | ||||||||
| Net cash provided by operating activities | 36,654 | 14,280 | 55,735 | 49,157 | ||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchase of property and equipment | (2,654 | ) | (5,060 | ) | (13,011 | ) | (12,597 | ) | ||||||
| Purchases of investments | (4,189 | ) | - | (9,189 | ) | (30,461 | ) | |||||||
| Sales of investments | - | 2,500 | 5,000 | 21,500 | ||||||||||
| Net cash used in investing activities | (6,843 | ) | (2,560 | ) | (17,200 | ) | (21,558 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from stock option exercises | 4,003 | 4,293 | 13,401 | 6,590 | ||||||||||
| Income tax withholding payment associated with restricted stock vesting | (83 | ) | - | (928 | ) | (284 | ) | |||||||
| Tax benefit of excess stock based compensation deductions | 915 | 1,767 | 6,917 | 2,622 | ||||||||||
| Net cash provided by financing activities | 4,835 | 6,060 | 19,390 | 8,928 | ||||||||||
| Net increase in cash and cash equivalents | 34,646 | 17,780 | 57,925 | 36,527 | ||||||||||
| Cash and cash equivalents, at beginning of period | 131,662 | 90,603 | 108,383 | 71,856 | ||||||||||
| Cash and cash equivalents, at end of period | $ | 166,308 | $ | 108,383 | $ | 166,308 | $ | 108,383 | ||||||
|
iRobot Corporation |
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| Supplemental Information | ||||||||||||||
| (unaudited) | ||||||||||||||
| For the three months ended | For the twelve months ended | |||||||||||||
| December 31, | January 1, | December 31, | January 1, | |||||||||||
| 2011 | 2011 | 2011 | 2011 | |||||||||||
| Revenue: * | ||||||||||||||
| Home Robots | $ | 74,435 | $ | 69,247 | $ | 278,551 | $ | 229,348 | ||||||
| Domestic | $ | 24,371 | $ | 24,841 | $ | 82,787 | $ | 77,918 | ||||||
| International | $ | 50,064 | $ | 44,406 | $ | 195,764 | $ | 151,430 | ||||||
| Government & Industrial | $ | 56,333 | $ | 44,748 | $ | 186,949 | $ | 171,604 | ||||||
| Domestic | $ | 51,458 | $ | 41,779 | $ | 170,968 | $ | 154,404 | ||||||
| International | $ | 4,875 | $ | 2,969 | $ | 15,981 | $ | 17,200 | ||||||
| Product | $ | 47,990 | $ | 34,040 | $ | 147,974 | $ | 131,046 | ||||||
| Contract | $ | 8,343 | $ | 10,708 | $ | 38,975 | $ | 40,558 | ||||||
| Product Life Cycle | $ | 10,974 | $ | 11,490 | $ | 42,579 | $ | 38,101 | ||||||
| Gross Margin Percent: | ||||||||||||||
| Home Robots | 45.8 | % | 42.4 | % | 45.2 | % | 40.0 | % | ||||||
| Government & Industrial | 39.0 | % | 36.0 | % | 35.5 | % | 31.3 | % | ||||||
| Total Company | 42.9 | % | 39.9 | % | 41.3 | % | 36.3 | % | ||||||
| Units shipped: | ||||||||||||||
| Home Robots * | 358 | 380 | 1,371 | 1,269 | ||||||||||
| Government & Industrial | 273 | 169 | 773 | 871 | ||||||||||
| Average gross selling prices for robot units: | ||||||||||||||
| Home Robots | $ | 218 | $ | 194 | $ | 207 | $ | 189 | ||||||
| Government & Industrial * | $ | 132 | $ | 133 | $ | 136 | $ | 107 | ||||||
| Government & Industrial Funded Product Backlog * | $ | 7,600 | $ | 23,869 | $ | 7,600 | $ | 23,869 | ||||||
| Days sales outstanding | 32 | 30 | 32 | 30 | ||||||||||
| Days in inventory | 41 | 40 | 41 | 40 | ||||||||||
| Headcount | 619 | 657 | 619 | 657 | ||||||||||
| * in thousands | ||||||||||||||
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iRobot Corporation |
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Adjusted EBITDA Reconciliation to GAAP |
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|
(unaudited, in thousands) |
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| For the three months ended | For the twelve months ended | |||||||||||||
| December 31, | January 1, | December 31, | January 1, | |||||||||||
| 2011 | 2011 | 2011 | 2011 | |||||||||||
| Net income | $ | 10,638 | $ | 7,000 | $ | 40,191 | $ | 25,514 | ||||||
| Interest income, net | (212 | ) | (193 | ) | (967 | ) | (765 | ) | ||||||
| Income tax expense | 4,395 | 689 | 13,350 | 8,460 | ||||||||||
| Depreciation | 2,387 | 1,741 | 9,002 | 7,002 | ||||||||||
| Amortization | 688 | 127 | 1,310 | 539 | ||||||||||
| EBITDA | 17,896 | 9,364 | 62,886 | 40,750 | ||||||||||
| Stock-based compensation expense | 2,398 | 2,133 | 8,784 | 8,165 | ||||||||||
| Merger and acquisition expense | 11 | 73 | 41 | 205 | ||||||||||
| Net intellectual property litigation expense | 116 | 110 | 287 | 181 | ||||||||||
| Restructuring expense | 914 | - | 1,015 | - | ||||||||||
| Adjusted EBITDA | $ | 21,335 | $ | 11,680 | $ | 73,013 | $ | 49,301 | ||||||
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Use of Non-GAAP Financial Measures |
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| In evaluating its business, iRobot considers and uses Adjusted EBITDA as a supplemental measure of its operating performance. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, merger and acquisition expenses, net intellectual property litigation expenses, restructuring expenses and non-cash stock compensation. The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. | |
| The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company's operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the Company's actual cash expenditures. Other companies may calculate similar measures differently than iRobot, limiting their usefulness as comparative tools. iRobot compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally. | |
| iRobot Corporation | ||||||||||||
| Non-GAAP Net Income and Earnings Per Share Reconciliations to GAAP | ||||||||||||
| (in thousands, except per share amounts) | ||||||||||||
| (unaudited) | ||||||||||||
| For the three months ended | For the twelve months ended | |||||||||||
| December 31, | January 1, | December 31, | January 1, | |||||||||
| 2011 | 2011 | 2011 | 2011 | |||||||||
| GAAP net income | $ | 10,638 | $ | 7,000 | $ | 40,191 | $ | 25,514 | ||||
| Less one-time net income tax benefit associated with release of state deferred tax asset valuation allowance |
- |
- | - | (2,259 | ) | |||||||
| Less one-time net income tax benefit associated with Section 199 deductions and R&D tax credit true-ups |
- |
- | (3,455 | ) | - | |||||||
| Non-GAAP net income | $ | 10,638 | $ | 7,000 | $ | 36,736 | $ | 23,255 | ||||
| GAAP net income per common share: | ||||||||||||
| Basic | $ | 0.39 | $ | 0.27 | $ | 1.50 | $ | 1.00 | ||||
| Diluted | $ | 0.38 | $ | 0.26 | $ | 1.44 | $ | 0.96 | ||||
| Less one-time net income tax benefit associated with release of state deferred tax asset valuation allowance | ||||||||||||
| Basic | $ | - | $ | - | $ | - | $ | (0.08 | ) | |||
| Diluted | $ | - | $ | - | $ | - | $ | (0.08 | ) | |||
| Less one-time net income tax benefit associated with Section 199 deductions and R&D tax credit true-ups | ||||||||||||
| Basic | $ | - | $ | - | $ | (0.12 | ) | $ | - | |||
| Diluted | $ | - | $ | - | $ | (0.12 | ) | $ | - | |||
| Non-GAAP net income per common share: | ||||||||||||
| Basic | $ | 0.39 | $ | 0.27 | $ | 1.38 | $ | 0.92 | ||||
| Diluted | $ | 0.38 | $ | 0.26 | $ | 1.32 | $ | 0.88 | ||||
| Shares used in Per Common Share Calculations: | ||||||||||||
| Basic | 27,119 | 25,604 | 26,712 | 25,394 | ||||||||
| Diluted | 28,147 | 26,798 | 27,924 | 26,468 | ||||||||