BEDFORD, Mass., Feb 17, 2010 (BUSINESS WIRE) -- iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the fourth quarter and fiscal year ended January 2, 2010.
"We delivered record quarterly revenue of more than $100 million in the fourth quarter and full-year revenue of nearly $300 million. Earnings per share and Adjusted EBITDA significantly exceeded expectations for the fourth quarter and full year," said Colin Angle, chairman and chief executive officer of iRobot. "Adjusted EBITDA was $21 million,up 61 percent from 2008. We generated $41 million of operating cash flow in 2009, compared with $19 million in 2008, and improved our cash and investments position year-over-year by $36 million to nearly $77 million at year end.
"We began 2010 with $42 million in backlog in our G&I business, the highest level in our company's history. This positions us well to deliver another year of solid financial performance, with significant top- and bottom-line growth, while continuing to invest in the future of our business."
Revenue for the fourth quarter of 2009 increased 12.1 percent to $101.7 million, compared with $90.7 million for the same quarter one year ago. Revenue for the full year 2009 decreased 2.9 percent to $298.6 million from $307.6 million for the full year 2008.
Gross margin for the fourth quarter decreased to 33.8 percent of revenue, compared with 36.1 percent of revenue in the fourth quarter of 2008. For the full year, 2009 gross margin totaled 30.5 percent of revenue, up from 30.4 percent of revenue for the full year 2008.
Net income in the fourth quarter of 2009 was $5.1 million, compared with $5.4 million in the fourth quarter of 2008. Net income for the full year 2009 was $3.3 million, compared with $0.8 million for the same period in 2008.
Business Highlights
- International home robot revenue in 2009 increased 35.2 percent from 2008 and comprised more than half of total home robot revenue for the year.
- Government & Industrial Robots revenue increased 10.7 percent in the fourth quarter over last year and ended the year with a record $42 million in product backlog.
- In 2009, operating cash flow was $40.6 million, compared with $19.1 million in 2008, as a result of improved Adjusted EBITDA and aggressive working capital management.
Financial Expectations
Management provides the following expectations with respect to the year ending January 1, 2011 and the first quarter ending April 3, 2010.
|
Fiscal Year 2010: | |||
| Revenue | $345 - $360 million | ||
| Adjusted EBITDA | $24 - $28 million | ||
| Earnings Per Share | $0.20 - $0.25 | ||
|
Q1 2010: | |||
| Revenue | $82 - $87 million | ||
| Adjusted EBITDA | $4 - $6 million | ||
| Earnings Per Share | $0.01 - $0.04 | ||
Fourth-Quarter and Full-Year Conference Call
iRobot will host a conference call tomorrow at 8:30 a.m. EST to discuss its financial results for the fourth fiscal quarter and full year 2009, business outlook, and outlook for future financial performance. Pertinent details include:
| Date: | Thursday, Feb. 18, 2010 | ||||||||||
| Time: | 8:30 a.m. EST | ||||||||||
| Call-In Number: | 617-213-8857 | ||||||||||
| Passcode: | 17983347 |
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 Web site shortly after the conclusion of the live event. A replay of the telephone conference call will be available through Feb. 25, and can be accessed by dialing 617-801-6888, passcode 31678547.
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(R) robot intelligence systems, proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence. For more information about iRobot, please visit http://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, anticipated revenue, Adjusted EBITDA and earnings per share for fiscal year 2010 and the first quarter of 2010, and demand for and market acceptance of its products. 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, 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, and non-cash stock compensation. A reconciliation between net income and Adjusted EBITDA is provided in the financial tables at the end of this press release.
| iRobot Corporation | ||||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the three months ended | For the twelve months ended | |||||||||||||||
| January 2, | December 27, | January 2, | December 27, | |||||||||||||
| 2010 | 2008 | 2010 | 2008 | |||||||||||||
| Revenue | ||||||||||||||||
| Product revenue | $ | 90,819 | $ | 82,712 | $ | 262,199 | $ | 281,187 | ||||||||
| Contract revenue | 10,903 | 7,990 | 36,418 | 26,434 | ||||||||||||
| Total | 101,722 | 90,702 | 298,617 | 307,621 | ||||||||||||
| Cost of Revenue | ||||||||||||||||
| Product revenue | 59,679 | 51,302 | 176,631 | 190,250 | ||||||||||||
| Contract revenue | 7,657 | 6,687 | 30,790 | 23,900 | ||||||||||||
| Total | 67,336 | 57,989 | 207,421 | 214,150 | ||||||||||||
| Gross Margin | 34,386 | 32,713 | 91,196 | 93,471 | ||||||||||||
| Operating Expense | ||||||||||||||||
| Research & development | 4,114 | 3,935 | 14,747 | 17,566 | ||||||||||||
| Selling & marketing | 13,482 | 11,415 | 40,902 | 46,866 | ||||||||||||
| General & administrative | 8,195 | 7,144 | 30,110 | 28,840 | ||||||||||||
| Total | 25,791 | 22,494 | 85,759 | 93,272 | ||||||||||||
| Operating income | 8,595 | 10,219 | 5,437 | 199 | ||||||||||||
| Other income (expense), net | 15 | 9 | (81 | ) | 926 | |||||||||||
| Pre-tax income | 8,610 | 10,228 | 5,356 | 1,125 | ||||||||||||
| Income tax expense | 3,478 | 4,806 | 2,026 | 369 | ||||||||||||
| Net income | $ | 5,132 | $ | 5,422 | $ | 3,330 | $ | 756 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.20 | $ | 0.22 | $ | 0.13 | $ | 0.03 | ||||||||
| Diluted | $ | 0.20 | $ | 0.21 | $ | 0.13 | $ | 0.03 | ||||||||
| Shares used in Per Common Share Calculations: | ||||||||||||||||
| Basic | 25,059 | 24,775 | 24,998 | 24,654 | ||||||||||||
| Diluted | 25,837 | 25,451 | 25,640 | 25,533 | ||||||||||||
| Stock-based compensation included in above figures: | ||||||||||||||||
| Cost of product revenue | $ | 369 | $ | 199 | $ | 1,127 | $ | 753 | ||||||||
| Cost of contract revenue | 111 | 162 | 575 | 462 | ||||||||||||
| Research & development | 164 | 133 | 351 | 359 | ||||||||||||
| Selling & marketing | 404 | 322 | 1,410 | 1,055 | ||||||||||||
| General & administrative | 1,155 | 815 | 4,099 | 3,310 | ||||||||||||
| Total | $ | 2,203 | $ | 1,631 | $ | 7,562 | $ | 5,939 | ||||||||
| iRobot Corporation | |||||||||
| Condensed Consolidated Balance Sheet | |||||||||
| (unaudited, in thousands) | |||||||||
| January 2, | December 27, | ||||||||
| 2010 | 2008 | ||||||||
| Assets | |||||||||
| Cash and equivalents | $ | 71,856 | $ | 40,852 | |||||
| Short term investments | 4,959 | - | |||||||
| Accounts receivable, net | 35,171 | 35,930 | |||||||
| Unbilled revenues | 1,831 | 2,014 | |||||||
| Inventory | 32,406 | 34,560 | |||||||
| Deferred tax assets | 8,669 | 7,299 | |||||||
| Other current assets | 4,119 | 3,340 | |||||||
| Total current assets | 159,011 | 123,995 | |||||||
| Property, plant and equipment, net | 20,230 | 22,929 | |||||||
| Deferred tax assets | 6,089 | 4,508 | |||||||
| Other assets | 14,254 | 12,246 | |||||||
| Total assets | $ | 199,584 | $ | 163,678 | |||||
| Liabilities and stockholders' equity | |||||||||
| Accounts payable | $ | 30,559 | $ | 19,544 | |||||
| Accrued expenses | 14,384 | 10,989 | |||||||
| Accrued compensation | 13,525 | 6,393 | |||||||
| Deferred revenue and customer advances | 3,908 | 2,632 | |||||||
| Total current liabilities | 62,376 | 39,558 | |||||||
| Long term liabilities | 4,014 | 4,444 | |||||||
| Stockholders' equity | 133,194 | 119,676 | |||||||
| Total liabilities and stockholders' equity | $ | 199,584 | $ | 163,678 | |||||
| iRobot Corporation | |||||||||||||||||||
| Consolidated Statement of Cash Flows | |||||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||
| For the three months ended | For the twelve months ended | ||||||||||||||||||
| January 2, | December 27, | January 2, | December 27, | ||||||||||||||||
| 2010 | 2008 | 2010 | 2008 | ||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $ | 5,132 | $ | 5,422 | $ | 3,330 | $ | 756 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation and amortization | 1,921 | 1,894 | 8,074 | 7,029 | |||||||||||||||
| Loss on disposal of property and equipment | 26 | 151 | 202 | 231 | |||||||||||||||
| Stock-based compensation | 2,203 | 1,631 | 7,562 | 5,939 | |||||||||||||||
| In-process research and development relating to acquisition of Nekton Research LLC | - | - | - | 200 | |||||||||||||||
| Benefit from deferred tax assets | (2,970 | ) | (1,967 | ) | (3,317 | ) | (1,967 | ) | |||||||||||
| Non-cash director deferred compensation | 33 | 24 | 132 | 95 | |||||||||||||||
| Changes in operating assets and liabilities -- (use) source | |||||||||||||||||||
| Accounts receivable | 8,763 | 10,391 | 759 | 12,221 | |||||||||||||||
| Unbilled revenue | 706 | 258 | 183 | 230 | |||||||||||||||
| Inventory | (7,753 | ) | 8,036 | 2,154 | 10,662 | ||||||||||||||
| Other assets | 295 | 5,888 | (816 | ) | (1,042 | ) | |||||||||||||
| Accounts payable | 2,772 | (11,810 | ) | 11,015 | (25,350 | ) | |||||||||||||
| Accrued expenses | 2,712 | 1,597 | 3,385 | 3,002 | |||||||||||||||
| Accrued compensation | 2,679 | (1,869 | ) | 7,132 | 1,634 | ||||||||||||||
| Deferred revenue | (336 | ) | (101 | ) | 1,276 | 1,026 | |||||||||||||
| Long term liabilities | (108 | ) | (108 | ) | (430 | ) | 4,444 | ||||||||||||
| Net cash provided by operating activities | 16,075 | 19,437 | 40,641 | 19,110 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Additions of property and equipment | (1,637 | ) | (1,228 | ) | (5,038 | ) | (14,817 | ) | |||||||||||
| Purchase of Nekton Research LLC, net of cash received | (2,500 | ) | 2 | (2,500 | ) | (9,743 | ) | ||||||||||||
| Purchases of investments | (5,000 | ) | - | (5,000 | ) | (29,997 | ) | ||||||||||||
| Sales of investments | - | 16,197 | - | 46,547 | |||||||||||||||
| Net cash provided by (used in) investing activities | (9,137 | ) | 14,971 | (12,538 | ) | (8,010 | ) | ||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Proceeds from stock option exercises | 243 | 103 | 738 | 1,011 | |||||||||||||||
| Income tax withholding payment associated with restricted stock vesting | - | - | (76 | ) | - | ||||||||||||||
| Borrowings under revolving line of credit | - | - | - | 5,500 | |||||||||||||||
| Repayment of borrowings under revolving line of credit | - | (5,500 | ) | - | (5,500 | ) | |||||||||||||
| Tax benefit of excess stock based compensation deductions | 1,928 | 1,326 | 2,239 | 2,006 | |||||||||||||||
| Net cash provided by (used in) financing activities | 2,171 | (4,071 | ) | 2,901 | 3,017 | ||||||||||||||
| Net increase in cash and cash equivalents | 9,109 | 30,337 | 31,004 | 14,117 | |||||||||||||||
| Cash and cash equivalents, at beginning of period | 62,747 | 10,515 | 40,852 | 26,735 | |||||||||||||||
| Cash and cash equivalents, at end of period | $ | 71,856 | $ | 40,852 | $ | 71,856 | $ | 40,852 | |||||||||||
| iRobot Corporation | |||||||||||||||
| Supplemental Information | |||||||||||||||
| (unaudited) | |||||||||||||||
| For the three months ended | For the twelve months ended | ||||||||||||||
| January 2, | December 27, | January 2, | December 27, | ||||||||||||
| 2010 | 2008 | 2010 | 2008 | ||||||||||||
| Revenue by business unit (in thousands): | |||||||||||||||
| Home Robots | |||||||||||||||
| Product | $ | 54,607 | $ | 48,123 | $ | 165,860 | $ | 173,547 | |||||||
| Contract | - | - | - | 55 | |||||||||||
| Government & Industrial | |||||||||||||||
| Product | 36,212 | 34,589 | 96,339 | 107,640 | |||||||||||
| Contract | 10,903 | 7,990 | 36,418 | 26,379 | |||||||||||
| $ | 101,722 | $ | 90,702 | $ | 298,617 | $ | 307,621 | ||||||||
| Direct Revenue - Home Robots (in thousands) | $ | 8,377 | $ | 8,183 | $ | 25,555 | $ | 30,697 | |||||||
| Product Lifecycle Revenue - Government & Industrial (in thousands) | $ | 9,356 | $ | 8,652 | $ | 23,655 | $ | 20,004 | |||||||
| International Revenue (in thousands): | |||||||||||||||
| Home Robots | $ | 29,870 | $ | 23,159 | $ | 89,166 | $ | 65,942 | |||||||
| Government & Industrial | $ | 1,129 | $ | 475 | $ | 10,222 | $ | 6,045 | |||||||
| Average selling prices for robot units: | |||||||||||||||
| Home Robots | $ | 156 | $ | 150 | $ | 154 | $ | 150 | |||||||
| Government & Industrial (in thousands) | $ | 82 | $ | 85 | $ | 92 | $ | 92 | |||||||
| Gross Margin by business unit (in thousands): | |||||||||||||||
| Home Robots | $ | 19,720 | $ | 16,074 | $ | 53,431 | $ | 49,769 | |||||||
| Government & Industrial | 14,666 | 16,639 | 37,765 | 43,702 | |||||||||||
| $ | 34,386 | $ | 32,713 | $ | 91,196 | $ | 93,471 | ||||||||
| Units shipped by business unit: | |||||||||||||||
| Home Robots (in thousands) | 324 | 293 | 988 | 1,054 | |||||||||||
| Government & Industrial | 329 | 306 | 789 | 951 | |||||||||||
| Government & Industrial Funded Backlog (in thousands) | $ | 42,160 | $ | 8,401 | $ | 42,160 | $ | 8,401 | |||||||
| Days sales outstanding | 33 | 38 | 33 | 38 | |||||||||||
| Inventory turnover | 7.4 | 6.0 | 7.4 | 6.0 | |||||||||||
| Net cash provided by operating activities (in thousands) | $ | 16,075 | $ | 19,437 | $ | 40,641 | $ | 19,110 | |||||||
| Headcount | 538 | 479 | 538 | 479 | |||||||||||
| iRobot Corporation | |||||||||||||||
| Adjusted EBITDA Reconciliation to GAAP | |||||||||||||||
| (unaudited, in thousands) | |||||||||||||||
| For the three months ended | For the twelve months ended | ||||||||||||||
| January 2, | December 27, | January 2, | December 27, | ||||||||||||
| 2010 | 2008 | 2010 | 2008 | ||||||||||||
| Net income | $ | 5,132 | $ | 5,422 | $ | 3,330 | $ | 756 | |||||||
| Interest income, net | (47 | ) | (77 | ) | (88 | ) | (1,111 | ) | |||||||
| Income tax expense | 3,478 | 4,806 | 2,026 | 369 | |||||||||||
| Depreciation | 1,782 | 1,771 | 7,545 | 6,865 | |||||||||||
| Amortization | 139 | 123 | 529 | 164 | |||||||||||
| EBITDA | 10,484 | 12,045 | 13,342 | 7,043 | |||||||||||
| Stock-based compensation expense | 2,203 | 1,631 | 7,562 | 5,939 | |||||||||||
| Adjusted EBITDA | $ | 12,687 | $ | 13,676 | $ | 20,904 | $ | 12,982 | |||||||
| 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 and amortization, merger and acquisition 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.
SOURCE: iRobot Corp.
iRobot Corp.
Elise Caffrey, 781-430-3003
Investor Relations
ecaffrey@irobot.com
or
Nancy Smith, 781-430-3323
Media Relations
nsmith@irobot.com