BEDFORD, Mass., Apr 23, 2013 (BUSINESS WIRE) --iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the first quarter ended March 30, 2013.
“We kicked off 2013 with an outstanding quarter. The results and outlook for our Home Robot business are excellent. We are very excited to have begun shipping our RP-VITA telemedicine robot in Q1 and our Defense & Security business delivered solid results,” said Colin Angle, chairman and chief executive officer of iRobot.
“Based on our view of the rest of the year, we are increasing our full-year financial expectations for both revenue and profit. The revenue increase is being driven by better than anticipated Home Robot demand in the United States. Improvements in gross margin due to favorable product mix, successful integration of Evolution Robotics (ER) and tighter operating expense control will each contribute to increased profitability and enable us to deliver on our commitment to profitable growth.”
- Revenue for the first quarter of 2013 was $106.2 million, compared with $97.8 million for the same quarter one year ago.
- Net income in the first quarter of 2013 was $8.4 million, compared with net income of $0.7 million in the first quarter of 2012.
- Quarterly earnings per share were $0.29, compared with earnings per share of $0.02 in the first quarter last year. Q1 EPS this year includes a $0.08 benefit from investment tax credits.
- Adjusted EBITDA for the first quarter of 2013 was $15.2 million, compared with $6.1 million in the first quarter of 2012.
Business Highlights
- Domestic Home Robot revenue growth of 44 percent drove a 14 percent year-over-year increase in quarterly Home Robot revenue. International Home Robot revenue of $61.3 million comprised 66 percent of total Home Robot Q1 2013 revenue.
- We launched Braava™, our iRobot-branded version of the Mint® robot to select European distributors.
- Due to the timing of Defense Department orders for spares, service and training (PLR) to support the fleet of 5,000 iRobot unmanned ground vehicles, D&S Q1 revenue was higher than anticipated. In addition, the government announced a $14.4 million order for FirstLook robots during the quarter which gives us confidence in achieving our full year expectations.
- We began shipping the RP-VITA to InTouch Health during the quarter. Roughly one dozen of the robots are currently in use in hospitals.
Financial Expectations
Management provides the following expectations with respect to the second quarter ending June 29, 2013 and fiscal year ending December 28, 2013.
|
Q2 2013: |
||||||||
| Revenue | $128 - $133 million | |||||||
| Earnings Per Share |
$0.15 - $0.20 |
|||||||
| Adjusted EBITDA | $13 - $16 million | |||||||
|
Fiscal Year 2013: |
Current |
Prior |
||||||
| Revenue | $485 - $495 million | $480 - $490 million | ||||||
| Earnings Per Share |
$0.80 - $1.00 |
$0.57 - $0.72 | ||||||
| Adjusted EBITDA | $55 - $61 million | $46 - $52 million | ||||||
|
Full-Year 2013 BU Revenue: |
Current |
Prior |
||||||
| Home Robots | $435 - $440 million | $430 - $435 million | ||||||
| Defense & Security Robots | $45 - $55 million | $45 - $55 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 2013, business outlook, and outlook for second
quarter and fiscal year 2013 financial performance. Pertinent details
include:
| Date: | Wednesday, April 24, 2013 | |||
| Time: | 8:30 a.m. ET | |||
| Call-In Number: | 847-619-6818 | |||
| Passcode: | 34160563 | |||
A live, audio broadcast of the conference call will also be available at http://investor.irobot.com/phoenix.zhtml?c=193096&p=irol-eventDetails&EventId=4897482. 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 1, and can be accessed by dialing 630-652-3000, passcode 34160563#.
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 defense & security 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, operating performance and growth, demand for our
robots, anticipated growth of our Home Robots business, anticipated
improvement in gross margin due to product mix, anticipated levels of
operating expenses, anticipated revenue, earnings per share and Adjusted
EBITDA for fiscal year 2013 and the second quarter ending June 29, 2013,
and anticipated business unit revenue for the fiscal year 2013. 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, our dependence on the U.S. federal government and government
contracts, the timing of government contracts and orders, 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 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 and amortization, merger and acquisition expenses, net intellectual property litigation expenses, restructuring expenses, and non-cash stock compensation. A reconciliation between net income (loss) and Adjusted EBITDA is 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 | |||||||||||
| March 30, | March 31, | ||||||||||
| 2013 | 2012 | ||||||||||
| Revenue | |||||||||||
| Product revenue | $ | 101,405 | $ | 91,742 | |||||||
| Contract revenue | 4,790 | 6,065 | |||||||||
| Total | 106,195 | 97,807 | |||||||||
| Cost of Revenue | |||||||||||
| Product revenue | 57,815 | 56,297 | |||||||||
| Contract revenue | 1,853 | 3,936 | |||||||||
| Total | 59,668 | 60,233 | |||||||||
| Gross Margin | 46,527 | 37,574 | |||||||||
| Operating Expense | |||||||||||
| Research & development | 14,408 | 13,522 | |||||||||
| Selling & marketing | 10,697 | 12,333 | |||||||||
| General & administrative | 12,458 | 11,042 | |||||||||
| Total | 37,563 | 36,897 | |||||||||
| Operating income | 8,964 | 677 | |||||||||
| Other income (expense), net | (96 | ) | 220 | ||||||||
| Income before income taxes | 8,868 | 897 | |||||||||
| Income tax expense | 513 | 244 | |||||||||
| Net income | $ | 8,355 | $ | 653 | |||||||
| Net income per common share: | |||||||||||
| Basic | $ | 0.30 | $ | 0.02 | |||||||
| Diluted | $ | 0.29 | $ | 0.02 | |||||||
| Shares used in per common share calculations: | |||||||||||
| Basic | 27,930 | 27,352 | |||||||||
| Diluted | 28,558 | 28,283 | |||||||||
| Stock-based compensation included in above figures: | |||||||||||
| Cost of product revenue | $ | 118 | $ | 214 | |||||||
| Cost of contract revenue | - | - | |||||||||
| Research & development | 501 | 454 | |||||||||
| Selling & marketing | 366 | 237 | |||||||||
| General & administrative | 1,944 | 1,608 | |||||||||
| Total | $ | 2,929 | $ | 2,513 | |||||||
| iRobot Corporation | ||||||||||
| Condensed Consolidated Balance Sheet | ||||||||||
| (unaudited, in thousands) | ||||||||||
| March 30, | December 29, | |||||||||
| 2013 | 2012 | |||||||||
| Assets | ||||||||||
| Cash and equivalents | $ | 123,576 | $ | 126,770 | ||||||
| Short term investments | 13,869 | 12,430 | ||||||||
| Accounts receivable, net | 27,280 | 29,413 | ||||||||
| Unbilled revenues | 2,252 | 1,196 | ||||||||
| Inventory | 32,160 | 36,965 | ||||||||
| Deferred tax assets | 19,340 | 19,266 | ||||||||
| Other current assets | 9,811 | 8,853 | ||||||||
| Total current assets | 228,288 | 234,893 | ||||||||
| Property, plant and equipment, net | 23,629 | 24,953 | ||||||||
| Deferred tax assets | 8,623 | 8,792 | ||||||||
| Goodwill | 48,951 | 48,951 | ||||||||
| Intangible assets, net | 27,259 | 28,224 | ||||||||
| Other assets | 10,501 | 8,500 | ||||||||
| Total assets | $ | 347,251 | $ | 354,313 | ||||||
| Liabilities and stockholders' equity | ||||||||||
| Accounts payable | $ | 29,804 | $ | 42,515 | ||||||
| Accrued expenses | 13,977 | 13,642 | ||||||||
| Accrued compensation | 6,997 | 11,864 | ||||||||
| Deferred revenue and customer advances | 3,629 | 6,257 | ||||||||
| Total current liabilities | 54,407 | 74,278 | ||||||||
| Long term liabilities | 5,033 | 4,218 | ||||||||
| Stockholders' equity | 287,811 | 275,817 | ||||||||
| Total liabilities and stockholders' equity | $ | 347,251 | $ | 354,313 | ||||||
| iRobot Corporation | ||||||||||||
| Consolidated Statement of Cash Flows | ||||||||||||
| (unaudited, in thousands) | ||||||||||||
| For the three months ended | ||||||||||||
| March 30, | March 31, | |||||||||||
| 2013 | 2012 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 8,355 | $ | 653 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 3,284 | 2,602 | ||||||||||
| Loss on disposal of property and equipment | 182 | 69 | ||||||||||
| Stock-based compensation | 2,929 | 2,513 | ||||||||||
| Deferred income taxes, net | (449 | ) | (6,694 | ) | ||||||||
| Tax benefit of excess stock based compensation deductions | (43 | ) | (705 | ) | ||||||||
| Non-cash director deferred compensation | 11 | 22 | ||||||||||
| Changes in operating assets and liabilities — (use) source | ||||||||||||
| Accounts receivable | 2,133 | 13,431 | ||||||||||
| Unbilled revenue | (1,056 | ) | 1,122 | |||||||||
| Inventory | 4,805 | (592 | ) | |||||||||
| Other assets | (983 | ) | 2,832 | |||||||||
| Accounts payable | (12,711 | ) | (4,104 | ) | ||||||||
| Accrued expenses | 379 | 2,003 | ||||||||||
| Accrued compensation | (4,867 | ) | (10,149 | ) | ||||||||
| Deferred revenue and customer advances | (2,628 | ) | 895 | |||||||||
| Change in long term liabilities | 815 | (66 | ) | |||||||||
| Net cash provided by operating activities | 156 | 3,832 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property and equipment | (1,077 | ) | (1,643 | ) | ||||||||
| Change in other assets | (2,000 | ) | (6,000 | ) | ||||||||
| Purchases of investments | (2,547 | ) | - | |||||||||
| Sales of investments | 1,000 | 2,500 | ||||||||||
| Net cash used in investing activities | (4,624 | ) | (5,143 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from stock option exercises | 1,744 | 1,323 | ||||||||||
| Income tax withholding payment associated with restricted stock vesting | (513 | ) | (227 | ) | ||||||||
| Tax benefit of excess stock based compensation deductions | 43 | 705 | ||||||||||
| Net cash provided by financing activities | 1,274 | 1,801 | ||||||||||
| Net increase (decrease) in cash and cash equivalents | (3,194 | ) | 490 | |||||||||
| Cash and cash equivalents, at beginning of period | 126,770 | 166,308 | ||||||||||
| Cash and cash equivalents, at end of period | $ | 123,576 | $ | 166,798 | ||||||||
| iRobot Corporation | ||||||||||||
| Supplemental Information | ||||||||||||
| (unaudited) | ||||||||||||
| For the three months ended | ||||||||||||
| March 30, | March 31, | |||||||||||
| 2013 | 2012 | |||||||||||
| Revenue: * | ||||||||||||
| Home Robots | $ | 92,699 | $ | 81,583 | ||||||||
| Domestic | $ | 31,391 | $ | 21,815 | ||||||||
| International | $ | 61,308 | $ | 59,768 | ||||||||
| Defense & Security | $ | 11,100 | $ | 14,162 | ||||||||
| Domestic | $ | 9,134 | $ | 10,115 | ||||||||
| International | $ | 1,966 | $ | 4,047 | ||||||||
| Product | $ | 8,035 | $ | 9,004 | ||||||||
| Contract | $ | 3,065 | $ | 5,158 | ||||||||
| Product Life Cycle | $ | 6,131 | $ | 4,584 | ||||||||
| Gross Margin Percent: | ||||||||||||
| Home Robots | 48.2 | % | 47.0 | % | ||||||||
| Defense & Security | 47.5 | % | 37.9 | % | ||||||||
| Total Company | 43.8 | % | 38.4 | % | ||||||||
| Units shipped: | ||||||||||||
| Home Robots * | 421 | 392 | ||||||||||
| Defense & Security | 16 | 132 | ||||||||||
| Average gross selling prices for robot units: | ||||||||||||
| Home Robots | $ | 230 | $ | 214 | ||||||||
| Defense & Security * | $ | 119 | $ | 33 | ||||||||
| Defense & Security Funded Product Backlog * | $ | 30,110 | $ | 6,000 | ||||||||
| Days sales outstanding | 25 | 29 | ||||||||||
| Days in inventory | 51 | 50 | ||||||||||
|
Headcount |
531 | 620 | ||||||||||
| * in thousands | ||||||||||||
| iRobot Corporation | ||||||||||||
| Adjusted EBITDA Reconciliation to GAAP | ||||||||||||
| (unaudited, in thousands) | ||||||||||||
| For the three months ended | ||||||||||||
| March 30, | March 31, | |||||||||||
| 2013 | 2012 | |||||||||||
| Net income | $ | 8,355 | $ | 653 | ||||||||
| Interest income, net | (164 | ) | (262 | ) | ||||||||
| Income tax expense | 513 | 244 | ||||||||||
| Depreciation | 2,219 | 2,394 | ||||||||||
| Amortization | 1,065 | 208 | ||||||||||
| EBITDA | 11,988 | 3,237 | ||||||||||
| Stock-based compensation expense | 2,929 | 2,513 | ||||||||||
| Merger and acquisition expense | 280 | 12 | ||||||||||
| Net intellectual property litigation expense | 33 | 37 | ||||||||||
| Restructuring expense | - | 278 | ||||||||||
| Adjusted EBITDA | $ | 15,230 | $ | 6,077 | ||||||||
| 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, 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.
SOURCE: iRobot Corp.
iRobot Corp.
Investor Relations
Elise Caffrey, 781-430-3003
ecaffrey@irobot.com
or
Media
Relations
Matthew Lloyd, 781-430-3720
mlloyd@irobot.com