Actionable news
0
All posts from Actionable news
Actionable news in IRBT: iRobot Corporation,

iRobot: Form, Schedule Or Registration Statement No Filing Party: Date Filed: Contacts: Elise Caffrey Matthew Lloyd Investor Relations Media Relations

The following excerpt is from the company's SEC filing.

iRobot Corp.

(781) 430-3003

(781) 430-3720

ecaffrey@irobot.com

mlloyd@irobot.com

iRobot Reports First-Quarter Financial Results

Domestic Revenue Grew More Than 50% Year over Year; Reaffirms Full Year Expectations

BEDFORD, Mass., Apr. 26, 2016 -

iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the first quarter ended April 2, 2016.

“Our first quarter results were outstanding. Home Robot revenue grew 15% over Q1 2015, driven by significant growth in the United States foll owing a record Q4 2015,” said Colin Angle, chairman and chief executive officer of iRobot.

“We also achieved a major milestone in shifting our strategic focus to the Home with the completion of the sale of the D&S business. Based on our Q1 results and our outlook for the rest of 2016, we are reaffirming our full year expectations. We continue to expect 2016 revenue of $630 to $642 million, EPS of between $1.20 and $1.40 and adjusted EBITDA of $80 to $90 million or roughly 13-14% of revenue.

“These expectations reflect our continued confidence that Home Robot revenue will grow 12-13%

driven by strong growth in the U.S. and China. The success of the marketing programs we ran during the Q4 2015 holiday season, resulting in year-over-year sell-through of more than 70%, caused U.S. retailers to re-stock their shelves in Q1, ahead of our expectations. We anticipate this momentum to continue throughout 2016 as heavy promotional activities begin again in the second quarter for Mother’s Day and Father’s Day. As we discussed last quarter, our 2016 expectations include strategic incremental investments, critical to achieving our 3-year financial targets. The investments will impact earnings in 2016 versus last year, as expected, to position the company for accelerated growth and improved profitability in 2017 and 2018. In addition, the remaining expenses associated with the D&S divestiture and our proxy contest are an additional one-time cost that will affect Q2, but our strong Q1 results enable us to reaffirm our earnings and Adjusted EBITDA expectations for the full year.

“We are off to a great start in 2016 and tracking well to our plan.”

Revenue for the first quarter of 2016 was $130.8 million, compared with $118.0 million for the first quarter of 2015.

Net income for the first quarter of 2016 was $3.9 million, compared with net income of $4.8 million for the first quarter of 2015.

Quarterly earnings per share were $0.13, compared with earnings per share of $0.16 in the first quarter of 2015.

Adjusted EBITDA for the first quarter of 2016 was $14.1 million, compared with $13.1 million in the first quarter of 2015.

Business Highlights

We delivered year-over-year Home Robot quarterly revenue growth in the United States of more than 50%

following record sell through during last year’s holiday season.

The overwhelmingly positive response to the introduction of our newest product, Braava jet™, resulted in the highest Day-1 unit sales in the company’s history.

Shortly after the end of the quarter, we closed the previously announced sale of our Defense & Security business, ending a proud chapter in iRobot’s history and enabling our intense focus on our home business.

We executed an $85 million accelerated stock repurchase transaction shortly after the end of the quarter, funded in part by the proceeds from the sale, consistent with our balanced approach to capital allocation. With this latest transaction, we will have returned almost $100 million of excess capital to shareholders during 2016, while investing to grow the business in order to create shareholder value.

We reaffirm full-year financial expectations.

Financial Expectations

Management provides the following expectations with respect to the second quarter ending July 2, 2016 and fiscal year ending December 31, 2016.

Q2 2016:

$145 - $150 million

Earnings Per Share

$0.06 - $0.14

$9 - $12 million

Fiscal Year 2016:

$630 - $642 million

$1.20 - $1.40

$80 - $90 million

First-Quarter Conference Call

iRobot will host a conference call tomorrow at 8:30 a.m. ET to discuss its financial results for the first fiscal quarter 2016, business outlook, and outlook for second fiscal quarter and fiscal year 2016 financial performance. Pertinent details include:

Call-In Number:

847-619-6396

Passcode:

40924297

A live, audio broadcast of the conference call will also be available at

http://investor.irobot.com/phoenix.zhtml?c=193096&p=irol...

. 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 May 4, and can be accessed by dialing 630-652-3042, passcode 40924297#.

About iRobot Corp.

iRobot designs and builds robots that empower people to do more. The company's home robots help people find smarter ways to clean and accomplish more in their daily lives.

iRobot’s portfolio of solutions feature proprietary technologies for the connected home and advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visit

www.irobot.com

For iRobot Investors

Forward-Looking Statements and Non-GAAP Financial Measures

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, future operating performance and growth, the rate of Home Robot revenue growth, demand for our robots, and anticipated revenue, earnings per share and Adjusted EBITDA for fiscal year 2016 and the second quarter ending July 2, 2016. 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, market acceptance of our products, 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 press release includes Adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, merger, acquisition and divestiture expense, net intellectual property litigation (income) expense, and restructuring expense. A reconciliation between net income and Adjusted EBITDA is provided in the financial tables at the end of this press release.

Important Stockholder Information

iRobot Corp. will hold its 2016 Annual Meeting of Stockholders on May 25, 2016. We have filed with the Securities and Exchange Commission (the “SEC”) and mailed to our stockholders a definitive proxy statement and form of WHITE proxy card in connection with the 2016 Annual Meeting. The definitive proxy statement contains important information about iRobot Corp., the 2016 Annual Meeting and related matters.

IROBOT CORP. STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT SOLICITATION MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT INFORMATION.

iRobot Corp. and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of iRobot Corp. in connection with the matters to be

considered at the 2016 Annual Meeting. Information regarding iRobot Corp.’s directors and executive officers is contained in the Company’s annual report on Form 10-K filed with the SEC on February 19, 2016, and definitive proxy statement filed with the SEC on March 29, 2016.

The proxy statement and other relevant solicitation materials (when they become available), and any and all documents filed by iRobot Corp. with the SEC, may be obtained by investors and security holders free of charge at the SEC’s web site at www.sec.gov. In addition, iRobot Corp.’s filings with the SEC, including the proxy statement and other relevant solicitation materials (when they become available), may be obtained, without charge, from iRobot Corp. by directing a request to iRobot Corp. at 8 Crosby Drive, Bedford, MA 01730, Attention: Investor Relations. Such materials are also available at www.irobot.com.

iRobot Corporation

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

For the three months ended

April 2, 2016

March 28, 2015

130,804

117,961

Cost of revenue

68,843

64,253

Gross margin

61,961

53,708

Operating expenses:

Research and development

19,728

19,032

Selling and marketing

19,940

14,188

General and administrative

16,764

12,589

Total operating expenses

56,432

45,809

Operating income

Other income (expense), net

Income before income taxes

Income tax expense

Net income per share

Basic

Diluted

Number of shares used in per share calculations

29,004

29,653

29,474

30,230

Stock-based compensation included in above figures:

Cost of revenue

Research and development

Selling and marketing

General and administrative

Total

iRobot Corporation

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

January 2, 2016

Assets

Cash and cash equivalents

215,990

179,915

Short term investments

30,746

33,124

Accounts receivable, net

28,497

104,679

Unbilled revenue

Inventory

52,764

61,678

Assets held for sale

19,966

Other current assets

11,770

Total current assets

359,872

389,349

Property and equipment, net

25,600

26,850

Deferred tax assets

31,849

31,721

Goodwill

48,751

Intangible assets, net

14,800

15,664

Other assets

Total assets

490,803

521,743

Liabilities and stockholders' equity

Accounts payable

39,015

61,655

Accrued expenses

12,910

15,954

Accrued compensation

11,220

15,752

Deferred revenue and customer advances

Liabilities held for sale

Total current liabilities

70,388

96,626

Long term liabilities

Stockholders' equity

413,184

417,411

Total liabilities and stockholders' equity

Consolidated Statements of Cash Flows

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Loss on disposal of property and equipment

Stock-based compensation

Deferred income taxes, net

Tax benefit of excess stock-based compensation deductions

Non-cash director deferred compensation

Changes in operating assets and liabilities — (use) source

Accounts receivable

69,879

33,351

Unbilled revenue

Inventory

(3,167

(1,998

Other assets

(2,985

Accounts payable

(20,626

(21,835

Accrued expenses

(2,673

(4,374

Accrued compensation

(4,055

(8,430

Deferred revenue and customer advances

(2,080

Long term liabilities

Net cash provided by operating activities

48,623

Cash flows from investing activities:

Additions of property and equipment

(2,390

(4,445

Change in other assets

Purchase of investments

(3,541

Sales of investments

Net cash used in investing activities

(6,001

Cash flows from financing activities:

Proceeds from stock option exercises

Income tax withholding payment associated with restricted stock vesting

(1,218

(1,118

Stock repurchases

(12,021

(4,924

Net cash used in financing activities

(12,135

(4,016

Net increase (decrease) in cash and cash equivalents

36,075

(2,296

Cash and cash equivalents, at beginning of period

185,957

Cash and cash equivalents, at end of period

183,661

Supplemental Information

Revenue: *

Home Robots

127,687

111,085

Domestic

63,158

40,627

International

64,529

70,458

Product

Contract

Product Life Cycle

Gross Margin Percent:

Home Robots

Defense & Security

Total Company

Units shipped:

Home Robots *

Average gross selling prices for robot units:

Defense & Security *

Days sales outstanding

Days in inventory

Headcount

* in thousands

Adjusted EBITDA Reconciliation to GAAP

Net income

Interest income, net

Income tax expense

Amortization

EBITDA

10,512

Stock-based compensation expense

Merger, acquisition and divestiture expense

Net intellectual property litigation (income) expense

Restructuring expense

14,138

13,109

Use of Non-GAAP Financial Measures

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, amortization, stock-based compensation expense, merger, acquisition and divestiture expense, net intellectual property litigation (income) expense, and restructuring expense. 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.

Impact of Defense and Security (D&S) Divestiture

(in millions, except per share amounts)

For the three months ended April 2, 2016

As reported (GAAP) *

D&S related **

166.7%

(166.7%)

($0.12)

Excluding D&S (Non-GAAP) *

Financial expectations for the fiscal year ending December 31, 2016

Gross margin %

Operating expense %

Operating income %

Expected (GAAP) *

47% - 48%

38% - 39%

8% - 9%

185% - 195%

(190% - 200%)

($0.10 - $0.11)

$627 - $639

9% - 10%

$1.30 - $1.50

* GAAP refers to U.S. generally accepted accounting principles.

** Includes divestiture related costs.

Defense and Security 2015 Financial Results (Non-GAAP) *

For the twelve months ended

March 28, 2015

June 27, 2015

September 26, 2015

($0.06)

($0.01)

iRobot Corporation

8 Crosby Drive, Bedford, MA 01730-1402

781.430.3000

Fax 781.430.3001

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever iRobot Corporation makes a similar move, sign up!

Other recent filings from the company include the following:

Additional definitive proxy soliciting materials and Rule 14(a)(12) material - April 26, 2016
Irobot Reports First-Quarter Financial Results - April 26, 2016
iRobot: Form, Schedule Or Registration Statement No Filing Party: Date Filed: - April 25, 2016
iRobot: Form, Schedule Or Registration Statement No Filing Party: Date Filed: - April 21, 2016