STAMFORD, Conn.--(BUSINESS WIRE)--Harman International Industries, Incorporated, the leading global infotainment and audio group (NYSE:HAR), today announced results for the second quarter ended December 31, 2013.
Net sales for the second quarter were $1.328 billion, an increase of 26 percent compared to the same period last year as all three of the Company’s divisions reported increased sales. The strong sales increase was a result of several initiatives in each division in addition to improved economic conditions. Infotainment net sales increased due to the expansion of recent production launches and higher take rates. Lifestyle growth was primarily driven by new product launches, the impact of increased marketing investments in the home and multimedia business, and increased take rates in the car audio business. The Professional division reported strong growth as a result of the expansion of the Company’s product portfolio into lighting as well as increased demand for the Company’s audio products at live entertainment events and in fixed-installation venues.
On a GAAP basis, second quarter operating income was $102 million, compared to $68 million in the same period last year, and earnings per diluted share were $1.03 for the quarter compared to $0.68. Excluding restructuring and non-recurring charges, second quarter non-GAAP operating income was $108 million, compared to $57 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $1.09 for the quarter compared to $0.59 in the same period last year.
Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “We are extremely pleased that for the second consecutive quarter all three of our divisions reported double-digit top-line growth, which also resulted in double-digit profitability improvement. We are confident that the momentum that we built in the first half of the fiscal year is sustainable and therefore we have increased our fiscal year guidance for revenue and EPS.”
Paliwal added, “We also continue to position HARMAN for long term growth with the introduction of proprietary technology solutions that enable safety, cyber security, and rapid app development for in-car systems. These critical and high demand features can only be provided through embedded infotainment systems. They are essential for leading automakers as evidenced by $2.7 billion in new automotive awards in the first half of the fiscal year. Our technologies were further validated with prestigious CES and Red Star innovation and product design awards, and a third technical GRAMMY® Award which we won this year for our Lexicon brand.”
FY 2014 Key Figures – Total Company |
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||||||||||||||||||
Increase |
Increase |
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$ millions (except per share data) |
3M |
3M |
Including |
Excluding |
6M |
6M |
Including |
Excluding |
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Net sales | 1,328 | 1,056 | 26 | % | 23 | % | 2,500 | 2,054 | 22 | % | 19 | % | ||||||||||||||||||||
Gross profit | 379 | 272 | 40 | % | 38 | % | 701 | 550 | 27 | % | 25 | % | ||||||||||||||||||||
Percent of net sales | 28.6 | % | 25.7 | % | 28.0 | % | 26.8 | % | ||||||||||||||||||||||||
SG&A & Other | 278 | 203 | 36 | % | 34 | % | 530 | 403 | 32 | % | 29 | % | ||||||||||||||||||||
Operating income | 102 | 68 | 49 | % | 47 | % | 171 | 147 | 16 | % | 15 | % | ||||||||||||||||||||
Percent of net sales | 7.7 | % | 6.5 | % | 6.8 | % | 7.2 | % | ||||||||||||||||||||||||
EBITDA | 134 | 99 | 36 | % | 34 | % | 235 | 206 | 14 | % | 12 | % | ||||||||||||||||||||
Percent of net sales | 10.1 | % | 9.3 | % | 9.4 | % | 10.0 | % | ||||||||||||||||||||||||
Net Income | 72 | 47 | 51 | % | 48 | % | 118 | 102 | 16 | % | 13 | % | ||||||||||||||||||||
Diluted earnings per share | 1.03 | 0.68 | 51 | % | 48 | % | 1.69 | 1.47 | 15 | % | 13 | % | ||||||||||||||||||||
Restructuring-related costs | 6 | (12 | ) | 30 | (11 | ) | ||||||||||||||||||||||||||
Non-GAAP1 |
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Gross profit | 381 | 273 | 40 | % | 38 | % | 705 | 551 | 28 | % | 26 | % | ||||||||||||||||||||
Percent of net sales | 28.7 | % | 25.8 | % | 28.2 | % | 26.8 | % | ||||||||||||||||||||||||
SG&A & Other | 273 | 216 | 26 | % | 25 | % | 503 | 415 | 21 | % | 19 | % | ||||||||||||||||||||
Operating income | 108 | 57 | 90 | % | 88 | % | 201 | 136 | 48 | % | 46 | % | ||||||||||||||||||||
Percent of net sales | 8.1 | % | 5.4 | % | 8.0 | % | 6.6 | % | ||||||||||||||||||||||||
EBITDA | 139 | 86 | 61 | % | 59 | % | 262 | 194 | 35 | % | 33 | % | ||||||||||||||||||||
Percent of net sales | 10.5 | % | 8.2 | % | 10.5 | % | 9.4 | % | ||||||||||||||||||||||||
Net Income | 76 | 41 | 85 | % | 81 | % | 143 | 96 | 49 | % | 46 | % | ||||||||||||||||||||
Diluted earnings per share | 1.09 | 0.59 | 85 | % | 81 | % | 2.04 | 1.38 | 48 | % | 45 | % | ||||||||||||||||||||
Shares outstanding – diluted (in millions) | 70 | 70 | 70 | 70 | ||||||||||||||||||||||||||||
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||||||||||||||||
Summary of Operations – Gross Margin and SG&A
Non-GAAP gross margin for the second quarter of fiscal 2014 increased 284 basis points to 28.7 percent. The improvement was primarily due to the impact of higher sales volume on fixed production costs, reduced costs due to productivity initiatives and favorable product mix.
SG&A and Other expense as a percentage of net sales on a non-GAAP basis in the second quarter of fiscal 2014 was 20.6 percent, in line with the prior year.
2014 Outlook
HARMAN today raised its financial outlook for fiscal 2014. The Company now forecasts global revenue of ~$5.1 billion and operational earnings per share of ~$4.16. Details by division are provided below.
--January 30, 2014 Revised Guidance -- |
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Fiscal Year 2014 | HARMAN | Infotainment Division | Lifestyle Division | Professional Division | ||||||||
Sales | ~$5.100 billion | ~$2.715 billion | ~$1.560 billion | ~$825 million | ||||||||
EBITDA* | ~$535 million | ~$295 million | ~$220 million | ~$140 million | ||||||||
EPS* | ~$4.16 | |||||||||||
--August 8, 2013 Guidance-- |
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Fiscal Year 2014 | HARMAN | Infotainment Division | Lifestyle Division | Professional Division | ||||||||
Sales | ~$4.700 billion | ~$2.460 billion | ~$1.425 billion | ~$815 million | ||||||||
EBITDA* | ~$490 million | ~$260 million | ~$200 million | ~$135 million | ||||||||
EPS* | ~$3.85 | |||||||||||
*Non-GAAP, excluding restructuring and non-recurring items
Investor Call Today, January 30, 2014
At 11:00 a.m. EST today, Harman’s management will host an analyst and investor conference call to discuss the second quarter results. Those who want to participate via audio in the earnings conference call should dial 1 (800) 923 9042 (U.S.) or +1 (212) 231 2909 (International) ten minutes before the call and reference HARMAN, Access Code: 21703048.
In addition, Harman invites you to visit the Investors section of its website at: www.harman.com where visitors can sign-up for email alerts and conveniently download copies of historical earnings releases and supporting slide presentations, among other documents. The fiscal second quarter earnings release and supporting materials were posted on the site at approximately 8:00 a.m. EST, Thursday, January 30, 2014.
A replay of the call will also be available following its completion at approximately 1:00 p.m. EST. The replay will be available through April 30, 2014 at 1:00 p.m. EST. To listen to the replay, dial 1 (800) 633 8284 (U.S.) or +1 (402) 977 9140 (International), Access Code: 21703048. If you need technical assistance, call the toll-free Global Crossing Customer Care Line at 1 (800) 473 0602 (U.S.) or +1 (303) 446 4604 (International).
General Information
HARMAN designs, manufactures, and markets a wide range of infotainment and audio solutions for the automotive, consumer, and professional markets. It is a recognized world leader across its customer segments with premium brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, and Mark Levinson® and leading-edge connectivity, safety and audio technologies. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of 14,800 people across the Americas, Europe, and Asia and reported sales of $4.7 billion for the last twelve months ended December 31, 2013. The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR. Please visit www.harman.com for more information.
A reconciliation of the non-GAAP measures included in this press release to the most comparable GAAP measures is provided in the tables contained at the end of this press release. Harman does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.
Forward-Looking Information
Except for historical information contained herein, the matters discussed in this earnings release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended. One should not place undue reliance on these statements. The Company bases these statements on particular assumptions that it has made in light of its industry experience, as well as its perception of historical trends, current market conditions, current economic data, expected future developments and other factors that the Company believes are appropriate under the circumstances. These statements involve risks, uncertainties and assumptions that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to: (1) the Company’s ability to maintain profitability in its infotainment division if there are delays in its product launches which may give rise to significant penalties and increased engineering expense; (2) the loss of one or more significant customers, or the loss of a significant platform with an automotive customer; (3) fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the Euro; (4) the Company’s ability to successfully implement its global footprint initiative, including achieving cost reductions and other benefits in connection with the restructuring of its manufacturing, engineering, procurement and administrative organizations; (5) fluctuations in the price and supply of raw materials including, without limitation, petroleum, copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; (6) the inability of the Company’s suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; (7) the Company’s ability to maintain a competitive technological advantage through innovation and leading product designs; (8) the Company’s failure to maintain the value of its brands and implementing a sufficient brand protection program; and (9) other risks detailed in Harman International Industries, Incorporated Annual Report on Form 10-K for the fiscal year ended June 30, 2013 and other filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement except as required by law.
This earnings release also makes reference to the Company’s awarded business, which represents the estimated future lifetime net sales for all customers. The Company's future awarded business does not represent firm customer orders. The Company reports its awarded business primarily based on written award letters. To validate these awards, the company uses various assumptions including global vehicle production forecasts, customer take rates for the Company’s products, revisions to product life cycle estimates and the impact of annual price reductions and exchange rates, among other factors. These assumptions are updated and reported externally on an annual basis. The Company updates the estimates and awarded business quarterly by adding the value of new awards received and subtracting sales recorded during the quarter. These quarterly updates do not include any assumptions for increased take rates, revisions to product life cycle, or any other factors.
HAR-E
APPENDIX
Infotainment Division |
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FY 2014 Key Figures – Infotainment |
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||||||||||||||||||
Increase |
Increase |
|||||||||||||||||||||||||||||||
$ millions |
3M |
3M |
Including |
Excluding |
6M |
6M |
Including |
Excluding |
||||||||||||||||||||||||
Net sales | 691 | 540 | 28 | % | 24 | % | 1,330 | 1,101 | 21 | % | 17 | % | ||||||||||||||||||||
Gross profit | 165 | 113 | 46 | % | 42 | % | 307 | 242 | 27 | % | 23 | % | ||||||||||||||||||||
Percent of net sales | 23.9 | % | 20.9 | % | 23.0 | % | 22.0 | % | ||||||||||||||||||||||||
SG&A & Other | 102 | 83 | 24 | % | 20 | % | 211 | 167 | 27 | % | 22 | % | ||||||||||||||||||||
Operating income | 63 | 30 | 107 | % | 104 | % | 95 | 75 | 27 | % | 24 | % | ||||||||||||||||||||
Percent of net sales | 9.1 | % | 5.6 | % | 7.1 | % | 6.8 | % | ||||||||||||||||||||||||
EBITDA | 79 | 45 | 75 | % | 71 | % | 127 | 105 | 21 | % | 18 | % | ||||||||||||||||||||
Percent of net sales | 11.4 | % | 8.3 | % | 9.6 | % | 9.5 | % | ||||||||||||||||||||||||
Restructuring-related costs | (1 | ) | (1 | ) | 21 | 0 | ||||||||||||||||||||||||||
Non-GAAP1 |
||||||||||||||||||||||||||||||||
Gross profit | 167 | 113 | 47 | % | 43 | % | 309 | 242 | 28 | % | 24 | % | ||||||||||||||||||||
Percent of net sales | 24.1 | % | 20.9 | % | 23.2 | % | 22.0 | % | ||||||||||||||||||||||||
SG&A & Other) | 105 | 83 | 26 | % | 22 | % | 194 | 167 | 16 | % | 12 | % | ||||||||||||||||||||
Operating income | 61 | 30 | 106 | % | 103 | % | 116 | 75 | 55 | % | 52 | % | ||||||||||||||||||||
Percent of net sales | 8.9 | % | 5.5 | % | 8.7 | % | 6.8 | % | ||||||||||||||||||||||||
EBITDA | 76 | 45 | 71 | % | 67 | % | 145 | 105 | 39 | % | 35 | % | ||||||||||||||||||||
Percent of net sales | 11.0 | % | 8.2 | % | 10.9 | % | 9.5 | % | ||||||||||||||||||||||||
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||||||||||||||||
Net sales in the second quarter of fiscal 2014 were $691 million, an increase of 28 percent compared to the prior year, or 24 percent excluding the impact of foreign currency translation. The increase in sales is due to higher automotive production volumes, the expansion of the Company’s recent production launches across car lines, and higher take rates.
On a non-GAAP basis in the second quarter of fiscal 2014, gross margin increased 317 basis points to 24.1 percent compared to the prior year primarily due to the impact of improved leverage on fixed production costs, benefits from foot-print migration initiatives, and an increased mix of scalable infotainment systems. SG&A spending decreased 20 basis points to 15.3 percent of net sales primarily due to improved operating leverage on higher sales.
Infotainment Division Highlights
During the quarter, HARMAN secured several new business awards, expanded its recent platform launches across car lines, and launched its next-generation scalable infotainment platform at the Consumer Electronics Show (“CES”) to address safety, cyber security, and application development.
HARMAN secured new awards totaling $725 million from existing and new automotive customers including VW Group, Chang’an, and Geely. The Company won infotainment system orders from Yamaha to equip motorcycles in North America and secured new business from Suzuki, making HARMAN the first non-Asian supplier to deliver an infotainment solution specifically designed for the Japanese market. HARMAN was also awarded infotainment services business from automakers BMW and Jaguar/Land Rover. These services contracts are for installed HARMAN infotainment systems and are designed to “future-proof” the infotainment solution.
HARMAN’s award-winning Uconnect system developed for Fiat/Chrysler continued its rollout on vehicles including the Jeep Cherokee, Fiat 500L, and Alfa Romeo models.
The Company is also continuing to drive its undisputed leadership in infotainment and technology innovation. At CES, HARMAN announced its next-generation scalable infotainment platform based on innovative system architecture that offers rapid development of connected car apps and advanced safety features while protecting the integrity of the system against cyber security threats. The new platform offers an HTML-5 based application environment which paves the way to an app ecosystem in the world of in-car infotainment. In addition, the new platform enhances security with hypervisor-based domain separation securing critical vehicle functions from errant or malicious software. This solution provides a foundation to support the future of autonomous driving.
Lifestyle Division |
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FY 2014 Key Figures – Lifestyle | Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||||||||||||||||||
Increase |
Increase |
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$ millions |
3M |
3M |
Including |
Excluding |
6M |
6M |
Including |
Excluding |
||||||||||||||||||||||||
Net sales | 430 | 372 | 16 | % | 14 | % | 764 | 663 | 15 | % | 14 | % | ||||||||||||||||||||
Gross profit | 136 | 102 | 33 | % | 32 | % | 243 | 197 | 24 | % | 23 | % | ||||||||||||||||||||
Percent of net sales | 31.7 | % | 27.6 | % | 31.8 | % | 29.7 | % | ||||||||||||||||||||||||
SG&A & Other | 85 | 53 | 62 | % | 60 | % | 151 | 110 | 38 | % | 36 | % | ||||||||||||||||||||
Operating income | 51 | 50 | 3 | % | 1 | % | 92 | 87 | 6 | % | 5 | % | ||||||||||||||||||||
Percent of net sales | 11.9 | % | 13.4 | % | 12.1 | % | 13.1 | % | ||||||||||||||||||||||||
EBITDA | 59 | 59 | 0 | % | (1 | %) | 109 | 104 | 4 | % | 3 | % | ||||||||||||||||||||
Percent of net sales | 13.8 | % | 15.9 | % | 14.2 | % | 15.7 | % | ||||||||||||||||||||||||
Restructuring-related costs | 4 | (11 | ) | 6 | (11 | ) | ||||||||||||||||||||||||||
Non-GAAP1 |
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Gross profit | 136 | 103 | 32 | % | 30 | % | 243 | 198 | 23 | % | 22 | % | ||||||||||||||||||||
Percent of net sales | 31.6 | % | 27.8 | % | 31.9 | % | 29.8 | % | ||||||||||||||||||||||||
SG&A & Other | 81 | 64 | 26 | % | 24 | % | 145 | 121 | 20 | % | 19 | % | ||||||||||||||||||||
Operating income | 55 | 39 | 41 | % | 39 | % | 98 | 76 | 29 | % | 27 | % | ||||||||||||||||||||
Percent of net sales | 12.9 | % | 10.5 | % | 12.8 | % | 11.5 | % | ||||||||||||||||||||||||
EBITDA | 63 | 48 | 34 | % | 32 | % | 114 | 92 | 23 | % | 22 | % | ||||||||||||||||||||
Percent of net sales | 14.8 | % | 12.8 | % | 14.9 | % | 13.9 | % | ||||||||||||||||||||||||
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||||||||||||||||
Net sales in the second quarter of fiscal 2014 were $430 million, an increase of 16 percent compared to the prior year or 14 percent excluding the impact of foreign currency translation. Revenues increased double digits in both the Company’s home and multimedia product lines and the car audio business. The growth in home and multimedia was primarily due to new product introductions and the impact of the Company’s marketing initiatives. The growth in car audio was primarily due to higher automotive production volumes and increased take rates.
On a non-GAAP basis in the second quarter of fiscal 2014, gross margin increased by 384 basis points to 31.6 percent compared to the prior year primarily due to the impact of improved leverage of fixed production costs and reduced costs from foot-print migration initiatives. SG&A expense as a percentage of sales increased by 149 basis points to 18.8 percent primarily due to higher marketing costs.
Lifestyle Division Highlights
The Lifestyle Division continued to gain momentum with its award-winning home and multimedia and car audio solutions. HARMAN launched car audio systems in several vehicles, including a Lexicon system in the Hyundai Genesis and a JBL system in the Toyota Highlander. Furthermore, HARMAN secured several new car audio awards targeted for the fast-growing small car segment. Hyundai, Chang’an, Geely, and SAIC all selected HARMAN scalable audio solutions.
HARMAN won an order from Daimler for its innovative, hands-free MEMS microphones across car lines. As cars become ever more connected, voice control becomes increasingly important as a way for drivers to interact with in-vehicle systems. The MEMS microphones deliver the advantage of a small form factor and superior audio sensitivity.
HARMAN received 15 Red Star and eight CES design and innovation awards for home and multimedia products, bringing the total number of awards for the past two product cycles to a record high 62.
In November, the Company opened its first North American retail location with a flagship store on Madison Avenue in New York City. The HARMAN store is a customer experience center that transforms how consumers interact with audio products.
At CES, the Company also introduced a proprietary software solution, called Signal Doctor™ by HARMAN, which automatically analyzes and improves the audio quality of all types of compressed, digitized and streaming music sources. The technology leverages HARMAN’s expertise in music recording, signal processing, and psycho-acoustics to restore the full sound that is forfeited in the compression process. Signal Doctor™ by HARMAN will be launched by multiple automakers and in a range of home and multimedia products later this year.
Professional Division |
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FY 2014 Key Figures – Professional |
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||||||||||||||||||
Increase |
Increase |
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$ millions |
3M |
3M |
Including |
Excluding |
6M |
6M |
Including |
Excluding |
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Net sales | 207 | 144 | 45 | % | 46 | % | 405 | 287 | 41 | % | 42 | % | ||||||||||||||||||||
Gross profit | 78 | 56 | 39 | % | 40 | % | 151 | 111 | 36 | % | 37 | % | ||||||||||||||||||||
Percent of net sales | 37.4 | % | 39.0 | % | 37.3 | % | 38.7 | % | ||||||||||||||||||||||||
SG&A & Other | 52 | 36 | 44 | % | 45 | % | 99 | 72 | 38 | % | 39 | % | ||||||||||||||||||||
Operating income | 25 | 20 | 29 | % | 31 | % | 52 | 40 | 31 | % | 34 | % | ||||||||||||||||||||
Percent of net sales | 12.2 | % | 13.8 | % | 12.8 | % | 13.8 | % | ||||||||||||||||||||||||
EBITDA | 31 | 23 | 33 | % | 36 | % | 62 | 46 | 35 | % | 38 | % | ||||||||||||||||||||
Percent of net sales | 14.9 | % | 16.1 | % | 15.3 | % | 15.9 | % | ||||||||||||||||||||||||
Restructuring-related costs | 2 | 0 | 2 | 0 | ||||||||||||||||||||||||||||
Non-GAAP1 |
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Gross profit | 78 | 56 | 40 | % | 41 | % | 152 | 111 | 36 | % | 37 | % | ||||||||||||||||||||
Percent of net sales | 37.7 | % | 39.0 | % | 37.4 | % | 38.7 | % | ||||||||||||||||||||||||
SG&A & Other | 51 | 37 | 39 | % | 40 | % | 98 | 72 | 35 | % | 36 | % | ||||||||||||||||||||
Operating income | 27 | 19 | 40 | % | 43 | % | 54 | 39 | 38 | % | 40 | % | ||||||||||||||||||||
Percent of net sales | 13.0 | % | 13.5 | % | 13.3 | % | 13.6 | % | ||||||||||||||||||||||||
EBITDA | 32 | 23 | 43 | % | 46 | % | 64 | 45 | 41 | % | 43 | % | ||||||||||||||||||||
Percent of net sales | 15.6 | % | 15.8 | % | 15.7 | % | 15.8 | % | ||||||||||||||||||||||||
1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||||||||||||||||
Net sales in the second quarter of fiscal 2014 were $207 million, an increase of 45 percent compared to the prior year or 46 percent excluding foreign currency translation. The increase in net sales is primarily due to the expansion of the Company’s product portfolio into lighting as a result of the acquisition of Martin Professional and stronger demand for the Company’s audio products.
On a non-GAAP basis in the second quarter of fiscal 2014, gross margin decreased 136 basis points to 37.7 percent compared to the prior year primarily due to lower gross margins on lighting products. SG&A expense as a percentage of sales decreased 92 basis points to 24.6 percent due to improved operating leverage on higher sales.
Professional Division Highlights
The Professional Division continued to experience robust demand for its audio and lighting products for use at a wide range of live entertainment events and fixed-venue installations worldwide.
In the second quarter, the Company’s audio and lighting solutions were installed at the following venues: BMW World Customer Center in Germany, King Abdullah Sports Center in Saudi Arabia, Salvador International Airport in Brazil, and the St. Louis Cardinals and San Diego Padres baseball parks.
HARMAN’s Professional products were featured in numerous high profile events including the GRAMMY Awards, Grand Central Station’s 100th Anniversary Celebration, and the American and Country Music Awards.
HARMAN was also awarded its third GRAMMY Award for its technical contributions to the recording field. The technical GRAMMY recognized Lexicon’s contributions to the art and science of music recording and reproduction through innovation and excellence in product design. HARMAN is the only audio systems company to earn multiple Technical GRAMMY Awards. The Company’s AKG microphone and headphone brand and JBL brand were recognized in 2010 and 2005, respectively.
Other (Corporate) |
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FY 2014 Key Figures – Other | Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||||||||||||||
Increase |
Increase |
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$ millions |
3M |
3M |
Including |
Excluding |
6M |
6M |
Including |
Excluding |
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SG&A & Other | 38 | 32 | 18 | % | 18 | % | 68 | 55 | 25 | % | 26 | % | ||||||||||||||||
Restructuring-related costs | 2 | 0 | 2 | 0 | ||||||||||||||||||||||||
Non-GAAP1 |
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SG&A & Other | 36 | 32 | 14 | % | 14 | % | 67 | 55 | 23 | % | 23 | % | ||||||||||||||||
1A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||||||||||||
Other (Corporate) SG&A expense includes compensation, benefit and occupancy costs for corporate employees, new technology innovation, and expenses associated with the Company’s brand identity campaign. SG&A expenses as a percentage of net sales decreased by 29 basis points to 2.7%.
HARMAN International Industries, Incorporated |
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Consolidated Statements of Income |
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(In thousands, except earnings per share data; unaudited) |
Three Months Ended |
Six Months Ended |
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2013 |
2012 |
2013 |
2012 |
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Net sales | $ | 1,328,024 | $ | 1,055,642 | $ | 2,499,829 | $ | 2,053,835 | ||||||||
Cost of sales | 948,574 | 783,849 | 1,798,730 | 1,503,795 | ||||||||||||
Gross profit | 379,450 | 271,793 | 701,099 | 550,040 | ||||||||||||
Selling, general and administrative expenses | 277,594 | 203,411 | 529,861 | 402,567 | ||||||||||||
Operating income | 101,856 | 68,382 | 171,238 | 147,473 | ||||||||||||
Other expenses: | ||||||||||||||||
Interest expense, net | 1,855 | 3,687 | 3,825 | 9,682 | ||||||||||||
Foreign exchange losses, net | 3,110 | 988 | 3,971 | 1,139 | ||||||||||||
Miscellaneous, net | 1,792 | 1,430 | 3,121 | 2,609 | ||||||||||||
Income before income taxes | 95,099 | 62,277 | 160,321 | 134,043 | ||||||||||||
Income tax expense, net | 23,470 | 14,788 | 42,146 | 31,999 | ||||||||||||
Equity in loss of unconsolidated subsidiaries | 0 | 0 | 94 | 0 | ||||||||||||
Net income | $ | 71,629 | $ | 47,489 | $ | 118,081 | $ | 102,044 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.04 | $ | 0.69 | $ | 1.71 | $ | 1.48 | ||||||||
Diluted | $ | 1.03 | $ | 0.68 | $ | 1.69 | $ | 1.47 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 68,715 | 69,009 | 69,131 | 68,846 | ||||||||||||
Diluted | 69,578 | 69,734 | 69,947 | 69,582 | ||||||||||||
HARMAN International Industries, Incorporated |
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands; unaudited) |
December 31, |
June 30, |
||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 518,556 | $ | 454,258 | ||||
Short-term investments | 0 | 10,008 | ||||||
Receivables, net | 757,006 | 722,711 | ||||||
Inventories | 655,907 | 549,831 | ||||||
Other current assets | 376,618 | 352,244 | ||||||
Total current assets | 2,308,087 | 2,089,052 | ||||||
Property, plant and equipment, net | 437,653 | 425,182 | ||||||
Goodwill | 251,370 | 234,342 | ||||||
Deferred tax assets, long-term, net | 240,380 | 260,749 | ||||||
Other assets | 248,446 | 226,360 | ||||||
Total assets | $ | 3,485,936 | $ | 3,235,685 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 30,000 | $ | 30,000 | ||||
Short-term debt | 21,632 | 4,930 | ||||||
Accounts payable | 616,521 | 498,055 | ||||||
Accrued liabilities | 435,623 | 402,704 | ||||||
Accrued warranties | 146,697 | 128,411 | ||||||
Income taxes payable | 21,944 | 13,414 | ||||||
Total current liabilities | 1,272,417 | 1,077,514 | ||||||
Long-term debt | 240,038 | 255,043 | ||||||
Pension liability | 171,888 | 167,687 | ||||||
Other non-current liabilities | 120,664 | 90,570 | ||||||
Total liabilities | 1,805,007 | 1,590,814 | ||||||
Total shareholders’ equity | 1,680,929 | 1,644,871 | ||||||
Total liabilities and shareholders’ equity | $ | 3,485,936 | $ | 3,235,685 | ||||
HARMAN International Industries, Incorporated |
|||||||||||||
Consolidated Statement of Income |
|||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||||
(In thousands, except earnings per share data; unaudited) |
Three Months Ended |
||||||||||||
GAAP |
Adjustments |
Non-GAAP |
|||||||||||
Net sales | $ | 1,328,024 | $ | 0 | $ | 1,328,024 | |||||||
Cost of sales | 948,574 | (1,384)a | 947,190 | ||||||||||
Gross profit | 379,450 | 1,384 | 380,834 | ||||||||||
Selling, general and administrative expenses | 277,594 | (4,469)b | 273,125 | ||||||||||
Operating income | 101,856 | 5,853 | 107,709 | ||||||||||
Other expenses: | |||||||||||||
Interest expense, net | 1,855 | 0 | 1,855 | ||||||||||
Foreign exchange losses, net | 3,110 | 0 | 3,110 | ||||||||||
Miscellaneous, net | 1,792 | 0 | 1,792 | ||||||||||
Income before income taxes | 95,099 | 5,853 | 100,952 | ||||||||||
Income tax expense, net | 23,470 | 1,529(c | ) | 24,999 | |||||||||
Equity in loss of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Net income | $ | 71,629 | $ | 4,324 | $ | 75,953 | |||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.04 | $ | 0.06 | $ | 1.11 | |||||||
Diluted | $ | 1.03 | $ | 0.06 | $ | 1.09 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 68,715 | 68,715 | |||||||||||
Diluted | 69,578 | 69,578 | |||||||||||
a) | Restructuring expense in Cost of Sales was $2.0 million for projects to increase manufacturing productivity; other non-recurring expense included in Cost of Sales was income of $0.6 million. | ||
b) | Restructuring expense in SG&A was $2.9 million primarily due to projects to increase productivity in engineering and administrative functions; other non-recurring expense included in SG&A was $1.5 million. | ||
c) |
The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the discrete tax rate within that specific country. |
||
|
HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
HARMAN International Industries, Incorporated |
|||||||||||||
Consolidated Statement of Income |
|||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||||
(In thousands, except earnings per share data; unaudited) |
Six Months Ended |
||||||||||||
GAAP |
Adjustments |
Non-GAAP |
|||||||||||
Net sales | $ | 2,499,829 | $ | 0 | $ | 2,499,829 | |||||||
Cost of sales | 1,798,730 | (3,433)a | 1,795,297 | ||||||||||
Gross profit | 701,099 | 3,433 | 704,532 | ||||||||||
Selling, general and administrative expenses | 529,861 | (26,455)b | 503,406 | ||||||||||
Operating income | 171,238 | 29,888 | 201,126 | ||||||||||
Other expenses: | |||||||||||||
Interest expense, net | 3,825 | 0 | 3,825 | ||||||||||
Foreign exchange losses, net | 3,971 | 0 | 3,971 | ||||||||||
Miscellaneous, net | 3,121 | 0 | 3,121 | ||||||||||
Income before income taxes | 160,321 | 29,888 | 190,209 | ||||||||||
Income tax expense, net | 42,146 | 5,150(c | ) | 47,296 | |||||||||
Equity in loss of unconsolidated subsidiaries | 94 | 0 | 94 | ||||||||||
Net income | $ | 118,081 | $ | 24,738 | $ | 142,819 | |||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.71 | $ | 0.36 | $ | 2.07 | |||||||
Diluted | $ | 1.69 | $ | 0.35 | $ | 2.04 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 69,131 | 69,131 | |||||||||||
Diluted | 69,947 | 69,947 | |||||||||||
a) | Restructuring expense in Cost of Sales was $4.0 million due to projects to increase productivity in manufacturing; other non- recurring expense included in Cost of Sales was income of $0.6 million. | ||
b) | Restructuring expense in SG&A was $24.9 million primarily due to projects to increase productivity in engineering and administrative functions; other non-recurring expense in SG&A was 1.5 million. | ||
c) | The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the discrete tax rate within that specific country. | ||
HARMAN International has provided a reconciliation of non-GAAP measures in order to provide the users of these financial statements with a better understanding of our non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.
Harman International Industries, Incorporated |
|||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||||
(In thousands, except earnings per share data; unaudited) |
Three Months Ended |
||||||||||||
GAAP |
Adjustments |
Non-GAAP |
|||||||||||
Net sales | $ | 1,055,642 | $ | 0 | $ | 1,055,642 | |||||||
Cost of sales | 783,849 | (956)a | 782,893 | ||||||||||
Gross profit | 271,793 | 956 | 272,749 | ||||||||||
Selling, general and administrative expenses | 203,411 | 12,643b | 216,054 | ||||||||||
Operating income | 68,382 | (11,687 | ) | 56,695 | |||||||||
Other expenses: | |||||||||||||
Interest expense, net | 3,687 | (1,129 | ) | 2,558 | |||||||||
Foreign exchange losses, net | 988 | 0 | 988 | ||||||||||
Miscellaneous, net | 1,430 | 0 | 1,430 | ||||||||||
Income before income taxes | 62,277 | (10,558 | ) | 51,719 | |||||||||
Income tax expense, net | 14,788 | (4,127 | )c | 10,661 | |||||||||
Equity in loss of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Net income | $ | 47,489 | $ | (6,431 | ) | $ | 41,058 | ||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.69 | $ | 0.09 | $ | 0.59 | |||||||
Diluted | $ | 0.68 | $ | 0.09 | $ | 0.59 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 69,009 | 69,009 | |||||||||||
Diluted | 69,734 | 69,734 | |||||||||||
a) | Restructuring expense in Cost of Sales was $1.0 million due to projects to increase efficiency in manufacturing. | ||
b) | Non-recurring income in SG&A was $12.6 million primarily due to reduction of a contingent consideration accrual related to the acquisition of HARMAN Embedded Audio LLC, formerly known as MWM Acoustics. | ||
c) | The tax benefits are calculated by multiplying the actual restructuring \ non-recurring charge in each individual country by the discrete tax rate within that specific country. | ||
HARMAN International has provided a reconciliation of non-GAAP measures in order to provide the users of these financial statements with a better understanding of our non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.
Harman International Industries, Incorporated |
|||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||||
(In thousands, except earnings per share data; unaudited) |
Six Months Ended |
||||||||||||
GAAP |
Adjustments |
Non-GAAP |
|||||||||||
Net sales | $ | 2,053,835 | $ | 0 | $ | 2,053,835 | |||||||
Cost of sales | 1,503,795 | (996)a | 1,502,799 | ||||||||||
Gross profit | 550,040 | 996 | 551,036 | ||||||||||
Selling, general and administrative expenses | 402,567 | 12,455b | 415,022 | ||||||||||
Operating income | 147,473 | (11,459 | ) | 136,014 | |||||||||
Other expenses: | |||||||||||||
Interest expense, net | 9,682 | (1,128 | ) | 8,554 | |||||||||
Foreign exchange losses, net | 1,139 | 0 | 1,139 | ||||||||||
Miscellaneous, net | 2,609 | (26 | ) | 2,583 | |||||||||
Income before income taxes | 134,043 | (10,305 | ) | 123,738 | |||||||||
Income tax expense, net | 31,999 | (4,064 | )c | 27,935 | |||||||||
Equity in loss of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Net income |
$ |
102,044 |
$ | (6,241 | ) | $ | 95,803 | ||||||
Earnings per share: | |||||||||||||
Basic | $ | 1.48 | $ | 0.09 | $ | 1.39 | |||||||
Diluted | $ | 1.47 | $ | 0.09 | $ | 1.38 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 68,846 | 68,846 | |||||||||||
Diluted | 69,582 | 69,582 | |||||||||||
a) | Restructuring expense in Cost of Sales was $1.0 million due to projects to increase efficiency in manufacturing. | ||
b) | Non-recurring income in SG&A was $12.5 million primarily due to reduction of a contingent consideration accrual related to the acquisition of HARMAN Embedded Audio LLC, formerly known as MWM Acoustics | ||
c) | The tax benefits are calculated by multiplying the actual restructuring \ non-recurring charge in each individual country by the discrete tax rate within that specific country. | ||
HARMAN International has provided a reconciliation of non-GAAP measures in order to provide the users of these financial statements with a better understanding of our non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in our consolidated financial statements prepared in accordance with US GAAP.
HARMAN International Industries, Incorporated |
|||||||||||
Selected Financial Data |
|||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||
Foreign Currency Translation Impact |
|||||||||||
(In thousands; unaudited) |
Three Months Ended |
Increase |
|||||||||
2013 |
|
2012 |
|||||||||
Net sales – nominal currency | $ | 1,328,024 | $ | 1,055,642 | 26% | ||||||
Effect of foreign currency translation(1) |
21,622 |
||||||||||
Net sales - local currency | 1,328,024 | 1,077,264 | 23% | ||||||||
Gross profit – nominal currency | 379,450 | 271,793 | 40% | ||||||||
Effect of foreign currency translation(1) |
3,902 |
||||||||||
Gross profit – local currency | 379,450 | 275,695 | 38% | ||||||||
SG&A & Other – nominal currency | 277,594 | 203,411 | 36% | ||||||||
Effect of foreign currency translation(1) |
3,194 |
||||||||||
SG&A & Other – local currency | 277,594 | 206,605 | 34% | ||||||||
Operating income – nominal currency | 101,856 | 68,382 | 49% | ||||||||
Effect of foreign currency translation(1) |
708 |
||||||||||
Operating income – local currency | 101,856 | 69,090 | 47% | ||||||||
Net income – nominal currency | 71,629 | 47,489 | 51% | ||||||||
Effect of foreign currency translation(1) | 915 | ||||||||||
Net income – local currency | 71,629 | 48,404 | 48% | ||||||||
(1) Impact of restating prior year results at current year foreign exchange rates. | |||||||||||
HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. HARMAN encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
HARMAN International Industries, Incorporated |
|||||||||||
Selected Financial Data |
|||||||||||
Reconciliation of Non-GAAP Results |
|||||||||||
Foreign Currency Translation Impact |
|||||||||||
EXCLUDING restructuring and non-recurring
charges
|
Three Months Ended |
|
|||||||||
2013 |
2012 |
||||||||||
Net sales – nominal currency | $ | 1,328,024 | $ | 1,055,642 | 26% | ||||||
Effect of foreign currency translation(1) |
21,622 |
||||||||||
Net sales – local currency | 1,328,024 | 1,077,264 | 23% | ||||||||
Gross profit - nominal currency | 380,834 | 272,749 | 40% | ||||||||
Effect of foreign currency translation(1) |
3,937 |
||||||||||
Gross profit - local currency | 380,834 | 276,686 | 38% | ||||||||
SG&A & Other – nominal currency | 273,125 | 216,054 | 26% | ||||||||
Effect of foreign currency translation(1) |
3,194 |
||||||||||
SG&A & Other – local currency | 273,125 | 219,248 | 25% | ||||||||
Operating income – nominal currency | 107,709 | 56,695 | 90% | ||||||||
Effect of foreign currency translation(1) |
743 |
||||||||||
Operating income – local currency | 107,709 | 57,438 | 88% | ||||||||
Net income – nominal currency | 75,953 | 41,058 | 85% | ||||||||
Effect of foreign currency translation(1) | 974 | ||||||||||
Net income – local currency | 75,953 | 42,032 | 81% | ||||||||
(1) Impact of restating prior year results at current year foreign exchange rates. | |||||||||||
HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. The Company encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
HARMAN International Industries, Incorporated |
|||||||||||
Selected Financial Data |
|||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||
Foreign Currency Translation Impact |
|||||||||||
(In thousands; unaudited) |
Six Months Ended |
Increase |
|||||||||
2013 |
2012 |
||||||||||
Net sales – nominal currency | $ | 2,499,829 |
$ |
2,053,835 |
22% | ||||||
Effect of foreign currency translation(1) |
47,967 |
||||||||||
Net sales - local currency | 2,499,829 | 2,101,802 | 19% | ||||||||
Gross profit – nominal currency | 701,099 | 550,040 | 27% | ||||||||
Effect of foreign currency translation(1) |
9,253 |
||||||||||
Gross profit – local currency | 701,099 | 559,293 | 25% | ||||||||
SG&A & Other – nominal currency | 529,861 | 402,567 | 32% | ||||||||
Effect of foreign currency translation(1) |
7,365 |
||||||||||
SG&A & Other – local currency | 529,861 | 409,932 | 29% | ||||||||
Operating income – nominal currency | 171,238 | 147,473 | 16% | ||||||||
Effect of foreign currency translation(1) |
1,888 |
||||||||||
Operating income – local currency | 171,238 | 149,361 | 15% | ||||||||
Net income – nominal currency | 118,081 | 102,044 | 16% | ||||||||
Effect of foreign currency translation(1) | 2,213 | ||||||||||
Net income – local currency | 118,081 | 104,257 | 13% | ||||||||
(1) Impact of restating prior year results at current year foreign exchange rates. | |||||||||||
HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. HARMAN encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
HARMAN International Industries, Incorporated |
|||||||||||
Selected Financial Data |
|||||||||||
Reconciliation of Non-GAAP Results |
|||||||||||
Foreign Currency Translation Impact |
|||||||||||
EXCLUDING restructuring and non-recurring
charges
|
Six Months Ended |
|
|||||||||
2013 |
2012 |
||||||||||
Net sales – nominal currency | $ | 2,499,829 | $ | 2,053,835 | 22% | ||||||
Effect of foreign currency translation(1) |
47,967 |
||||||||||
Net sales – local currency | 2,499,829 | 2,101,802 | 19% | ||||||||
Gross profit - nominal currency | 704,532 | 551,036 | 28% | ||||||||
Effect of foreign currency translation(1) |
9,289 |
||||||||||
Gross profit - local currency | 704,532 | 560,325 | 26% | ||||||||
SG&A & Other – nominal currency | 503,406 | 415,022 | 21% | ||||||||
Effect of foreign currency translation(1) |
7,365 |
||||||||||
SG&A & Other – local currency | 503,406 | 422,387 | 19% | ||||||||
Operating income – nominal currency | 201,126 | 136,014 | 48% | ||||||||
Effect of foreign currency translation(1) |
1,924 |
||||||||||
Operating income – local currency | 201,126 | 137,938 | 46% | ||||||||
Net income – nominal currency | 142,819 | 95,803 | 49% | ||||||||
Effect of foreign currency translation(1) | 2,274 | ||||||||||
Net income – local currency | 142,819 | 98,077 | 46% | ||||||||
(1) Impact of restating prior year results at current year foreign exchange rates. | |||||||||||
HARMAN has provided a reconciliation of the non-GAAP measures in the table above to provide the users of the consolidated financial statements with a better understanding of the Company’s performance. Because changes in currency exchange rates affect its reported financial results, the Company shows the rates of change both including and excluding the effect of these changes in exchange rates. HARMAN encourages readers of its financial statements to evaluate its financial performance excluding the impact of foreign currency translation. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. This measurement should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
Harman International Industries, Incorporated |
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
||||||||||||||||||||
(In thousands, except earnings per share data; unaudited) |
Three Months Ended |
Three Months Ended |
||||||||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
|||||||||||||||
HARMAN: | ||||||||||||||||||||
Operating Income | 101,856 | 5,853 | 107,709 | 68,382 | (11,687 | ) | 56,695 | |||||||||||||
Depreciation & Amortization | 32,526 | (1,435 | ) | 31,091 | 30,299 | (956 | ) | 29,343 | ||||||||||||
EBITDA | 134,382 | 4,418 | 138,800 | 98,681 | (12,643 | ) | 86,038 | |||||||||||||
INFOTAINMENT: | ||||||||||||||||||||
Operating Income | 62,691 | (1,497 | ) | 61,194 | 30,251 | (566 | ) | 29,685 | ||||||||||||
Depreciation & Amortization | 16,198 | (1,386 | ) | 14,812 | 14,815 | 0 | 14,815 | |||||||||||||
EBITDA | 78,889 | (2,883 | ) | 76,006 | 45,066 | (566 | ) | 44,500 | ||||||||||||
LIFESTYLE: | ||||||||||||||||||||
Operating Income | 51,103 | 4,205 | 55,308 | 49,832 | (10,710 | ) | 39,122 | |||||||||||||
Depreciation & Amortization | 8,162 | 0 | 8,162 | 9,329 | (932 | ) | 8,397 | |||||||||||||
EBITDA | 59,265 | 4,205 | 63,470 | 59,161 | (11,642 | ) | 47,519 | |||||||||||||
PROFESSIONAL: | ||||||||||||||||||||
Operating Income | 25,404 | 1,620 | 27,024 | 19,742 | (413 | ) | 19,329 | |||||||||||||
Depreciation & Amortization | 5,407 | (49 | ) | 5,358 | 3,366 | (24 | ) | 3,342 | ||||||||||||
EBITDA | 30,811 | 1,571 | 32,382 | 23,108 | (437 | ) | 22,671 | |||||||||||||
HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
Harman International Industries, Incorporated |
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
||||||||||||||||||||
(In thousands, except earnings per share data; unaudited) |
Six Months Ended |
Six Months Ended |
||||||||||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
|||||||||||||||
HARMAN: | ||||||||||||||||||||
Operating Income | 171,238 | 29,888 | 201,126 | 147,473 | (11,459 | ) | 136,014 | |||||||||||||
Depreciation & Amortization | 64,239 | (3,454 | ) | 60,785 | 58,843 | (996 | ) | 57,847 | ||||||||||||
EBITDA | 235,477 | 26,434 | 261,911 | 206,316 | (12,455 | ) | 193,861 | |||||||||||||
INFOTAINMENT: | ||||||||||||||||||||
Operating Income | 95,118 | 20,585 | 115,703 | 74,925 | (294 | ) | 74,631 | |||||||||||||
Depreciation & Amortization | 32,240 | (2,736 | ) | 29,504 | 30,055 | 0 | 30,055 | |||||||||||||
EBITDA | 127,358 | 17,849 | 145,207 | 104,980 | (294 | ) | 104,686 | |||||||||||||
LIFESTYLE: | ||||||||||||||||||||
Operating Income | 92,343 | 5,709 | 98,052 | 87,091 | (10,843 | ) | 76,248 | |||||||||||||
Depreciation & Amortization | 16,456 | (621 | ) | 15,835 | 17,066 | (932 | ) | 16,134 | ||||||||||||
EBITDA | 108,799 | 5,088 | 113,887 | 104,157 | (11,775 | ) | 92,382 | |||||||||||||
PROFESSIONAL: | ||||||||||||||||||||
Operating Income | 51,884 | 2,070 | 53,954 | 39,513 | (322 | ) | 39,191 | |||||||||||||
Depreciation & Amortization | 9,916 | (97 | ) | 9,819 | 6,127 | (63 | ) | 6,064 | ||||||||||||
EBITDA | 61,800 | 1,973 | 63,773 | 45,640 | (385 | ) | 45,255 | |||||||||||||
HARMAN has provided a reconciliation of non-GAAP measures in order to provide the users of these financial statements with a better understanding of its non-recurring charges. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in HARMAN’s consolidated financial statements prepared in accordance with US GAAP.
HARMAN International Industries, Incorporated |
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Total Liquidity Reconciliation |
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Total Company Liquidity |
December 31, |
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$ millions | ||||
Cash & cash equivalents | $ | 519 | ||
Short-term investments | 0 | |||
Available credit under Revolving Credit Facility | 744 | |||
Total liquidity | $ | 1,263 |