STAMFORD, Conn.--(BUSINESS WIRE)--Harman International Industries, Incorporated (NYSE:HAR), the premier audio, visual, and infotainment group, today announced results for the fourth quarter and full year ended June 30, 2014.
Net sales for the fourth quarter were $1.444 billion, an increase of 22 percent compared to the same period last year, as all three of the Company’s divisions reported increased sales. Infotainment net sales increased due to the expansion of recent production launches, higher automotive production, and higher take rates. Lifestyle growth was driven by strong demand for the Company’s home and multimedia products launched earlier in the year and an increase in automotive production and take rates in the car audio business. HARMAN’s Professional Division net sales increased as a result of strong demand for the Company’s lighting and audio products.
Excluding restructuring and non-recurring charges, fourth quarter operating income was $121 million, compared to $87 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $1.25 for the quarter compared to $0.91 in the same period last year. On a GAAP basis, fourth quarter operating income was $57 million compared to $16 million in the same period last year, and earnings per diluted share were $0.62 for the quarter compared to $0.08 in the prior year.
Net sales for the full year were $5.348 billion, an increase of 24 percent compared to the prior year, as all three of the Company’s divisions reported increased sales. Excluding restructuring and non-recurring charges, fiscal year 2014 operating income was $430 million compared to $290 million in the prior year. On the same non-GAAP basis, earnings per diluted share were $4.41 for the year compared to $3.07 in the prior year. On a GAAP basis, fiscal year 2014 operating income was $330 million compared to $201 million in prior year, and earnings per diluted share were $3.36 compared to $2.04 in the prior year.
“We are extremely pleased that, for the fourth consecutive quarter, all three of our divisions achieved double-digit top-line growth, facilitating a 38 percent improvement in earnings per share,” said Dinesh C. Paliwal, the Company’s Chairman, President and CEO. “In our automotive businesses, we are capitalizing on robust demand for an embedded connected car experience and a more favorable production environment. In our other businesses, we continue to gain traction with our award winning products and have recently expanded our portfolio into exciting new markets including enterprise automation and control. We are executing our strategy and, as a result, we have issued strong guidance for fiscal year 2015, raised our outlook for fiscal year 2016 and reported a Company record backlog.”
Paliwal continued, “While achieving record performance in fiscal year 2014, we are taking additional restructuring actions as we continue to relentlessly focus on cost management and align our operations with growth markets. We firmly believe that innovation combined with cost leadership continues to position us for sustainable long-term success.”
| FY 2014 Key Figures – Total Company | Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||||
|
Increase (Decrease) |
Increase
(Decrease) |
||||||||||||||||
| $ millions (except per share data) |
3M FY14 |
3M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
12M FY14 |
12M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
|||||||||
| Net sales | 1,444 | 1,182 | 22% | 20% | 5,348 | 4,298 | 24% | 22% | |||||||||
| Gross profit | 391 | 285 | 37% | 35% | 1,457 | 1,104 | 32% | 30% | |||||||||
| Percent of net sales | 27.1% | 24.1% | 27.2% | 25.7% | |||||||||||||
| SG&A | 334 | 269 | 24% | 21% | 1,127 | 903 | 25% | 23% | |||||||||
| Operating income | 57 | 16 | 268% | 307% | 330 | 201 | 64% | 64% | |||||||||
| Percent of net sales | 4.0% | 1.3% | 6.2% | 4.7% | |||||||||||||
| EBITDA | 92 | 52 | 78% | 81% | 462 | 329 | 40% | 39% | |||||||||
| Percent of net sales | 6.4% | 4.4% | 8.6% | 7.7% | |||||||||||||
| Net Income attributable to HARMAN International Industries, Incorporated | 43 | 5 | n.m. | n.m. | 235 | 142 | 65% | 64% | |||||||||
| Diluted earnings per share | 0.62 | 0.08 | n.m. | n.m. | 3.36 | 2.04 | 64% | 63% | |||||||||
| Restructuring& non-recurring costs | 64 | 72 | 100 | 88 | |||||||||||||
|
Non-GAAP1 |
|||||||||||||||||
| Gross profit | 394 | 316 | 25% | 23% | 1,466 | 1,140 | 29% | 27% | |||||||||
| Percent of net sales | 27.3% | 26.7% | 27.4% | 26.5% | |||||||||||||
| SG&A | 274 | 228 | 20% | 18% | 1,036 | 850 | 22% | 21% | |||||||||
| Operating income | 121 | 87 | 38% | 38% | 430 | 290 | 48% | 47% | |||||||||
| Percent of net sales | 8.3% | 7.4% | 8.0% | 6.7% | |||||||||||||
| EBITDA | 154 | 121 | 28% | 27% | 555 | 413 | 35% | 33% | |||||||||
| Percent of net sales | 10.7% | 10.2% | 10.4% | 9.6% | |||||||||||||
| Net Income attributable to HARMAN International Industries, Incorporated | 87 | 63 | 38% | 38% | 308 | 214 | 44% | 41% | |||||||||
| Diluted earnings per share | 1.25 | 0.91 | 38% | 38% | 4.41 | 3.07 | 43% | 41% | |||||||||
| 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 fourth quarter of fiscal 2014 increased 59 basis points to 27.3 percent. The improvement was primarily due to the impact of higher sales volume on fixed production costs.
In the fourth quarter of fiscal 2014, SG&A expense as a percentage of net sales decreased 36 basis points to 18.9 percent on a non-GAAP basis.
Fiscal 2015 and 2016 Outlook
HARMAN today provided guidance for fiscal 2015 and raised its financial outlook for fiscal 2016.
| Fiscal Year 2015 | HARMAN | Infotainment Division | Lifestyle Division | Professional Division | |||||
| Sales | ~$6.0 billion | ~$3.1 billion | ~$1.8 billion | ~$1.1 billion | |||||
| EBITDA* | ~$685 million | ~$375 million | ~$265 million | ~$175 million | |||||
| EPS* | ~$5.25 |
| Fiscal Year 2016 | HARMAN | Infotainment Division | Lifestyle Division | Professional Division | |||||
| Sales | ~$6.85 billion | ~$3.7 billion | ~$1.95 billion | ~$1.2 billion | |||||
| ~EBITDA* | ~$880 million | ~$490 million | ~$310 million | ~$215 million | |||||
|
*Non-GAAP, excluding restructuring and non-recurring items |
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Key planning assumptions are outlined in the Company’s slide deck posted on the Investors section of the Company’s website at: www.harman.com
Investor Call Today, August 7, 2014
At 11:00 a.m. EDT today, HARMAN's management will host an analyst and investor conference call to discuss the fourth quarter and full year results. Those who wish to participate via audio in the earnings conference call should dial 1 (800) 785 6380 (U.S.) or +1 (212) 231 2910 (International) ten minutes before the call and reference HARMAN, Access Code: 21721786.
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 fourth quarter earnings release and supporting materials will be posted on the site at approximately 8:00 a.m. EDT, Thursday, August 7, 2014.
A replay of the call will also be available following its completion at approximately 1:00 p.m. EDT. The replay will be available through November 7, 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: 21721786.
If you need technical assistance, please 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 (www.harman.com) 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 16,000 people across the Americas, Europe, and Asia and reported sales of $5.3 billion for the last 12 months ended June 30, 2014. The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.
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 of 1934, 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 the 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
| FY 2014 Key Figures – Infotainment | Three Months Ended June 30 | Twelve Months Ended June 30 | ||||||||||||||||
|
Increase (Decrease) |
Increase (Decrease) |
|||||||||||||||||
| $ millions |
3M FY14 |
3M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
12M FY14 |
12M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
||||||||||
| Net sales | 773 | 614 | 26% | 22% | 2,839 | 2,283 | 24% | 20% | ||||||||||
| Gross profit | 171 | 131 | 31% | 28% | 635 | 482 | 32% | 28% | ||||||||||
| Percent of net sales | 22.1% | 21.3% | 22.4% | 21.1% | ||||||||||||||
| SG&A | 131 | 136 | (4%) | (7%) | 440 | 391 | 12% | 9% | ||||||||||
| Operating income | 40 | (5) | n.m. | n.m. | 195 | 91 | 115% | 113% | ||||||||||
| Percent of net sales | 5.2% | (0.9%) | 6.9% | 4.0% | ||||||||||||||
| EBITDA | 57 | 11 | 407% | 448% | 261 | 154 | 70% | 67% | ||||||||||
| Percent of net sales | 7.4% | 1.8% | 9.2% | 6.7% | ||||||||||||||
| Restructuring& non-recurring costs | 31 | 49 | 55 | 60 | ||||||||||||||
|
Non-GAAP1 |
||||||||||||||||||
| Gross profit | 172 | 132 | 30% | 27% | 641 | 483 | 33% | 29% | ||||||||||
| Percent of net sales | 22.3% | 21.5% | 22.6% | 21.2% | ||||||||||||||
| SG&A | 101 | 88 | (15%) | (11%) | 391 | 332 | 18% | 14% | ||||||||||
| Operating income | 71 | 44 | 62% | 61% | 250 | 151 | 66% | 62% | ||||||||||
| Percent of net sales | 9.2% | 7.2% | 8.8% | 6.6% | ||||||||||||||
| EBITDA | 87 | 59 | 47% | 45% | 310 | 213 | 46% | 42% | ||||||||||
| Percent of net sales | 11.2% | 9.6% | 10.9% | 9.3% | ||||||||||||||
| 1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||
Net sales in the fourth quarter of fiscal 2014 were $773 million, an increase of 26 percent compared to the same period in the prior year, or 22 percent excluding the impact of foreign currency translation. The increase in sales was due to the expansion of the Company’s recent production launches across car lines, higher automotive production, and higher take rates.
On a non-GAAP basis in the fourth quarter of fiscal 2014, gross margin increased 77 basis points to 22.3 percent compared to the same period in the prior year primarily due to the impact of improved leverage on fixed production costs, benefits from footprint migration restructuring initiatives, and an increase in software content. SG&A spending decreased 128 basis points to 13.1 percent of net sales primarily due to improved operating leverage on higher sales.
Infotainment Division Highlights
During the fourth quarter of fiscal 2014, HARMAN secured several new business awards bringing the fiscal 2014 total of new awards to $2.5 billion. The Company will develop premium infotainment solutions for both Bentley and Maserati. HARMAN also won an award from Scania/MAN to develop the Company’s first infotainment solution for commercial vehicles. HARMAN will leverage its scalable hardware and software architecture to enter this new market. In addition, the Company secured an award from Ssangyong to provide an eCall solution. On June, 30, 2014, the Company’s infotainment backlog was $16.2 billion, an all-time high for HARMAN.
In July, HARMAN secured a competitive replacement award from Subaru and a follow-on award from an existing European customer totaling $1.3 billion. HARMAN will supply base, mid, and high level solutions for Subaru across carlines globally. This award follows two previously announced awards from Japanese automakers, Yamaha and Suzuki.
At Google’s I/O conference in June, HARMAN was named as an Open Automotive Alliance partner, joining founding members Audi, General Motors, Google, Honda, Hyundai, and Nvidia. The Open Automotive Alliance was formed in early 2014 to accelerate in-car innovation via a common platform designed for openness, customization and scale. HARMAN’s participation in the new alliance complements the Company’s deep mobile expertise, which spans more than 25 million vehicles on the road today equipped with HARMAN audio and infotainment. HARMAN has started integrating smart apps like Apple CarPlay™ and Google Automotive Link™ into its embedded infotainment solutions.
Lifestyle Division
| FY 2014 Key Figures – Lifestyle | Three Months Ended June 30 | Twelve Months Ended June 30 | ||||||||||||||||
|
Increase (Decrease) |
Increase (Decrease) |
|||||||||||||||||
| $ millions |
3M FY14 |
3M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
12M FY14 |
12M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
||||||||||
| Net sales | 424 | 348 | 22% | 21% | 1,656 | 1,338 | 24% | 22% | ||||||||||
| Gross profit | 124 | 76 | 63% | 62% | 498 | 371 | 34% | 33% | ||||||||||
| Percent of net sales | 29.3% | 21.9% | 30.1% | 27.7% | ||||||||||||||
| SG&A | 97 | 49 | 97% | 95% | 328 | 234 | 40% | 39% | ||||||||||
| Operating income | 27 | 27 | (1%) | 0% | 171 | 137 | 24% | 24% | ||||||||||
| Percent of net sales | 6.3% | 7.7% | 10.3% | 10.3% | ||||||||||||||
| EBITDA | 36 | 37 | (2%) | (2%) | 205 | 174 | 18% | 18% | ||||||||||
| Percent of net sales | 8.6% | 10.6% | 12.4% | 13.0% | ||||||||||||||
| Restructuring& non-recurring costs | 20 | 15 | 27 | 19 | ||||||||||||||
| Non-GAAP1 | ||||||||||||||||||
| Gross profit | 126 | 99 | 27% | 26% | 500 | 396 | 26% | 25% | ||||||||||
| Percent of net sales | 29.7% | 28.5% | 30.2% | 29.6% | ||||||||||||||
| SG&A | 79 | 57 | 38% | 37% | 302 | 239 | 26% | 25% | ||||||||||
| Operating income | 47 | 42 | 11% | 11% | 198 | 157 | 26% | 26% | ||||||||||
| Percent of net sales | 11.0% | 12.1% | 11.9% | 11.7% | ||||||||||||||
| EBITDA | 56 | 50 | 11% | 11% | 232 | 189 | 22% | 22% | ||||||||||
| Percent of net sales | 13.2% | 14.5% | 14.0% | 14.2% | ||||||||||||||
| 1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||
Net sales in the fourth quarter of fiscal 2014 were $424 million, an increase of 22 percent compared to the same period in the prior year, or 21 percent excluding the impact of foreign currency translation. The growth in the home and multimedia business was primarily due to accelerated sales of new products launched earlier in the year. The growth in the car audio business was primarily driven by an increase in automotive production and higher take rates due to the increasing importance of audio for a better connected car experience.
On a non-GAAP basis in the fourth quarter of fiscal 2014, gross margin increased by 116 basis points to 29.7 percent compared to the same period in the prior year. This is primarily due to the impact of improved leverage on fixed production costs and benefits from footprint migration restructuring initiatives. SG&A expense as a percentage of sales increased by 223 basis points to 18.7 percent primarily due to increased investment in marketing.
Lifestyle Division Highlights
During the fourth quarter of fiscal 2014, HARMAN secured new branded audio business awards from Alfa Romeo, Hyundai, Kia and Toyota. HARMAN also continued to expand its partnership with Ford in the area of hands-free microphones adding several new car lines including the next-generation F-150. As cars become more connected, voice control becomes more important as a way for drivers to safely interact with embedded in-vehicle systems. HARMAN’s microphone solutions deliver the advantage of small form factor and superior audio sensitivity. HARMAN also secured a similar award for MEMS microphones earlier in the year from Daimler. These new awards now bring the Company’s industry-leading car audio backlog to $4.3 billion.
HARMAN also launched car audio systems in the Hyundai Sonata, Lexus NX, Dodge Challenger, Kia Sedona, Subaru Outback, and Toyota Camry during the quarter.
The Company’s home and multimedia product line also launched several innovative new headphones and portable wireless products. In addition, HARMAN acquired yurbuds, the U.S. market leader in sports headphones. The acquisition will strengthen HARMAN’s position in the fast growing sports headphones and wearables markets.
Professional Division
| FY 2014 Key Figures – Professional | Three Months Ended June 30 | Twelve Months Ended June 30 | ||||||||||||||||
|
Increase (Decrease) |
Increase (Decrease) |
|||||||||||||||||
| $ millions |
3M FY14 |
3M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
12M FY14 |
12M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
||||||||||
| Net sales | 248 | 220 | 13% | 12% | 853 | 673 | 27% | 27% | ||||||||||
| Gross profit | 96 | 77 | 24% | 23% | 323 | 250 | 29% | 30% | ||||||||||
| Percent of net sales | 38.6% | 35.2% | 37.9% | 37.1% | ||||||||||||||
| SG&A | 58 | 52 | 12% | 11% | 209 | 164 | 27% | 27% | ||||||||||
| Operating income | 37 | 26 | 46% | 47% | 114 | 86 | 33% | 35% | ||||||||||
| Percent of net sales | 15.1% | 11.6% | 13.4% | 12.8% | ||||||||||||||
| EBITDA | 43 | 32 | 35% | 35% | 135 | 103 | 31% | 33% | ||||||||||
| Percent of net sales | 17.4% | 14.5% | 15.8% | 15.3% | ||||||||||||||
| Restructuring& non-recurring costs | 3 | 8 | 6 | 9 | ||||||||||||||
|
Non-GAAP1 |
||||||||||||||||||
| Gross profit | 96 | 84 | 14% | 14% | 324 | 259 | 25% | 26% | ||||||||||
| Percent of net sales | 38.7% | 38.1% | 38.0% | 38.5% | ||||||||||||||
| SG&A | 55 | 51 | 9% | 8% | 203 | 164 | 24% | 24% | ||||||||||
| Operating income | 41 | 33 | 23% | 23% | 121 | 95 | 27% | 29% | ||||||||||
| Percent of net sales | 16.4% | 15.1% | 14.1% | 14.1% | ||||||||||||||
| EBITDA | 46 | 39 | 18% | 18% | 141 | 112 | 27% | 28% | ||||||||||
| Percent of net sales | 18.7% | 17.9% | 16.6% | 16.6% | ||||||||||||||
| 1 A non-GAAP measure, see reconciliations of non-GAAP measures later in this release. | ||||||||||||||||||
Net sales in the fourth quarter of fiscal 2014 were $248 million, an increase of 13 percent compared to the same period in the prior year or 12 percent excluding foreign currency translation. The increase in net sales is primarily due to strong demand for the Company’s lighting and audio products.
On a non-GAAP basis in the fourth quarter of fiscal 2014, gross margin increased 62 basis points to 38.7 percent compared to the same period in the prior year due to stronger profitability of the Company’s lighting products. SG&A expense as a percentage of sales decreased 72 basis points to 22.3 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 live entertainment events and fixed venue installations worldwide.
In the fourth quarter of fiscal 2014, HARMAN’s audio and lighting system solutions were selected for installation at San Diego’s Petco Park, home of the Padres, and the University of Texas - El Paso Sun Bowl Stadium. The Company also upgraded the installed audio system at the Grand Mosque in Mecca, Saudi Arabia as well as numerous entertainment, hospitality and transportation facilities.
HARMAN’s products powered a wide range of high-profile televised award shows, special events, music festivals and tours. These included the Rock and Roll Hall of Fame Induction Ceremony, the Eurovision Song Contest, and Rock In Rio Lisbon. In Brazil, HARMAN audio systems were installed in eight of the 12 stadiums at the FIFA World Cup, and were featured on the field to support the Opening and Closing Ceremonies.
The division launched 44 new products during the fourth quarter. The Soundcraft Vi3000 digital mixing console was awarded Best of Show by the National Association of Broadcasters and the JBL VTX V20 loudspeaker system was honored with Rental & Staging’s Best New Product Award. In addition, the Martin Viper Quadray was honored as Live Design’s Lighting Product of the Year.
In June, HARMAN’s Professional Division acquired AMX LLC, a leading provider of enterprise automation and control systems as well as distributing and switching solutions for audio and video. With the addition of AMX, HARMAN is uniquely positioned to provide complete audio, video, lighting and automation solutions to customers globally.
Other (Corporate)
| FY 2014 Key Figures – Other | Three Months Ended June 30 | Twelve Months Ended June 30 | |||||||||||||||
|
Increase (Decrease) |
Increase (Decrease) |
||||||||||||||||
| $ millions |
3M FY14 |
3M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
12M FY14 |
12M FY13 |
Including Currency Changes |
Excluding Currency Changes1 |
|||||||||
| SG&A | 47 | 32 | 47% | 48% | 151 | 114 | 32% | 32% | |||||||||
| Restructuring& non-recurring costs | 9 | 0 | 12 | 0 | |||||||||||||
|
Non-GAAP1 |
|||||||||||||||||
| SG&A | 38 | 32 | 19% | 19% | 139 | 114 | 22% | 22% | |||||||||
|
1 A 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. In the fourth quarter of 2014, compared to the same period in the prior year, SG&A expenses as a percentage of the Company’s net sales on a non-GAAP basis decreased five basis points to 2.6%.
|
HARMAN International Industries, Incorporated Consolidated Statements of Income |
||||||||||||||||
| (In thousands, except earnings per share data; unaudited) |
Three Months Ended June 30, |
Twelve Months Ended June 30, |
||||||||||||||
|
2014 |
2013 |
2014 |
2013 |
|||||||||||||
| Net sales | $ | 1,444,419 | $ | 1,182,235 | $ | 5,348,483 | $ | 4,297,842 | ||||||||
| Cost of sales | 1,053,624 | 897,350 | 3,891,816 | 3,193,722 | ||||||||||||
| Gross profit | 390,795 | 284,885 | 1,456,667 | 1,104,120 | ||||||||||||
| Selling, general and administrative expenses | 333,739 | 269,369 | 1,126,940 | 902,869 | ||||||||||||
| Operating income | 57,056 | 15,516 | 329,727 | 201,251 | ||||||||||||
| Other expenses: | ||||||||||||||||
| Interest expense, net | 2,090 | 1,572 | 8,026 | 12,868 | ||||||||||||
| Foreign exchange losses (gains), net | 1,190 | 2,819 | 5,935 | 2,313 | ||||||||||||
| Miscellaneous, net | 2,568 | 8,017 | 8,371 | 11,800 | ||||||||||||
| Income before income taxes | 51,208 | 3,108 | 307,395 | 174,270 | ||||||||||||
| Income tax expense, net | 8,095 | (2,477 | ) | 72,610 | 31,729 | |||||||||||
| Equity in net loss of unconsolidated subsidiaries | 0 | 95 | 206 | 134 | ||||||||||||
| Net income | 43,113 | 5,490 | 234,579 | 142,407 | ||||||||||||
| Net income attributable to non-controlling interest | (113 | ) | 0 | (113 | ) | 0 | ||||||||||
| Net income attributable to HARMAN International Industries, Incorporated | $ | 43,226 | $ | 5,490 | $ | 234,692 | $ | 142,407 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.63 | $ | 0.08 | $ | 3.40 | $ | 2.06 | ||||||||
| Diluted | $ | 0.62 | $ | 0.08 | $ | 3.36 | $ | 2.04 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 69,088 | 69,164 | 69,073 | 68,990 | ||||||||||||
| Diluted | 70,058 | 69,965 | 69,889 | 69,736 | ||||||||||||
|
HARMAN International Industries, Incorporated Consolidated Balance Sheets |
||||||||||
| (In thousands; unaudited) |
June 30, 2014 |
June 30, 2013 |
||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 581,312 | $ | 454,258 | ||||||
| Short-term investments | 0 | 10,008 | ||||||||
| Receivables, net | 894,579 | 722,711 | ||||||||
| Inventories | 662,128 | 549,831 | ||||||||
| Other current assets | 320,852 | 352,244 | ||||||||
| Total current assets | 2,458,871 | 2,089,052 | ||||||||
| Property, plant and equipment, net | 509,856 | 425,182 | ||||||||
| Goodwill | 540,952 | 234,342 | ||||||||
| Deferred tax assets, long-term, net | 170,558 | 260,749 | ||||||||
| Other assets | 445,353 | 226,360 | ||||||||
| Total assets | $ | 4,125,590 | $ | 3,235,685 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | $ | 35,625 | $ | 30,000 | ||||||
| Short-term debt | 3,736 | 4,930 | ||||||||
| Accounts payable | 697,553 | 498,055 | ||||||||
| Accrued liabilities | 566,722 | 402,704 | ||||||||
| Accrued warranties | 155,472 | 128,411 | ||||||||
| Income taxes payable | 26,544 | 13,414 | ||||||||
| Total current liabilities | 1,485,652 | 1,077,514 | ||||||||
| Long-term debt | 519,407 | 255,043 | ||||||||
| Pension liability | 186,352 | 167,687 | ||||||||
| Other non-current liabilities | 141,158 | 90,570 | ||||||||
| Total liabilities | 2,332,569 | 1,590,814 | ||||||||
| Total HARMAN International Industries, Incorporated shareholders’ equity | 1,792,578 | 1,644,871 | ||||||||
| Non-controlling interest total equity | 443 | 0 | ||||||||
| Total equity | 1,793,021 | 1,644,871 | ||||||||
| Total liabilities and equity | $ | 4,125,590 | $ | 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 June 30, 2014 |
|||||||
|
GAAP |
Adjustments |
Non-GAAP |
||||||
| Net sales | $ 1,444,419 | $ 0 | $ 1,444,419 | |||||
| Cost of sales | 1,053,624 | (3,295)a | 1,050,329 | |||||
| Gross profit | 390,795 | 3,295 | 394,090 | |||||
| Selling, general and administrative expenses | 333,739 | (60,225)b | 273,514 | |||||
| Operating income | 57,056 | 63,520 | 120,576 | |||||
| Other expenses: | ||||||||
| Interest expense, net | 2,090 | 0 | 2,090 | |||||
| Foreign exchange losses, net | 1,190 | 0 | 1,190 | |||||
| Miscellaneous, net | 2,568 | 46 | 2,614 | |||||
| Income before income taxes | 51,208 | 63,474 | 114,682 | |||||
| Income tax expense, net | 8,095 | 19,242c | 27,337 | |||||
| Equity in net loss of unconsolidated subsidiaries | 0 | 0 | 0 | |||||
| Net income | 43,113 | 44,232 | 87,345 | |||||
| Net income attributable to non-controlling interest | (113) | 0 | (113) | |||||
| Net income attributable to HARMAN International Industries, Incorporated | $ 43,226 | $ 44,232 | $ 87,458 | |||||
| Earnings per share: | ||||||||
| Basic | $ 0.63 | $ 0.64 | $ 1.26 | |||||
| Diluted | $ 0.62 | $ 0.63 | $ 1.25 | |||||
| Weighted average shares outstanding: | ||||||||
| Basic | 69,088 | 69,088 | ||||||
| Diluted | 70,058 | 70,058 | ||||||
| a) | Restructuring expense in Cost of Sales was $1.7 million for projects to increase manufacturing productivity; other non-recurring expense included in Cost of Sales was $1.6 million. | |||
| b) | Restructuring expense in SG&A was $48.9 million primarily due to projects to increase productivity in engineering, manufacturing and administrative functions; other non-recurring expense included in SG&A was $11.4 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) |
Twelve Months Ended June 30, 2014 |
||||||||||||
|
GAAP |
Adjustments |
Non-GAAP |
|||||||||||
| Net sales | $ | 5,348,483 | $ | 0 | $ | 5,348,483 | |||||||
| Cost of sales | 3,891,816 | (8,838)a | 3,882,978 | ||||||||||
| Gross profit | 1,456,667 | 8,838 | 1,465,505 | ||||||||||
| Selling, general and administrative expenses | 1,126,940 | (91,215)b | 1,035,725 | ||||||||||
| Operating income | 329,727 | 100,053 | 429,780 | ||||||||||
| Other expenses: | |||||||||||||
| Interest expense, net | 8,026 | 0 | 8,026 | ||||||||||
| Foreign exchange losses, net | 5,935 | 0 | 5,935 | ||||||||||
| Miscellaneous, net | 8,371 | 46 | 8,417 | ||||||||||
| Income before income taxes | 307,395 | 100,007 | 407,402 | ||||||||||
| Income tax expense, net | 72,610 | 26,491(c | ) | 99,101 | |||||||||
| Equity in net loss of unconsolidated subsidiaries | 206 | 0 | 206 | ||||||||||
| Net income | 234,579 | 73,516 | 308,095 | ||||||||||
| Net income attributable to non-controlling interest | (113 | ) | 0 | (113 | ) | ||||||||
| Net income attributable to HARMAN International Industries, Incorporated | $ | 234,692 | $ | 73,516 | $ | 308,208 | |||||||
| Earnings per share: | |||||||||||||
| Basic | $ | 3.40 | $ | 1.06 | $ | 4.46 | |||||||
| Diluted | $ | 3.36 | $ | 1.05 | $ | 4.41 | |||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 69,073 | 69,073 | |||||||||||
| Diluted | 69,889 | 69,889 | |||||||||||
| a) | Restructuring expense in Cost of Sales was $7.8 million due to projects to increase productivity in manufacturing; other non-recurring expense included in Cost of Sales was $1.0 million. | |||
| b) | Restructuring expense in SG&A was $76.4 million primarily due to projects to increase productivity in engineering, manufacturing and administrative functions; other non-recurring expense in SG&A was $14.8 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 Consolidated Statement of Income Reconciliation of GAAP to Non-GAAP Results |
|||||||||||||
| (In thousands, except earnings per share data; unaudited) |
Three Months Ended June 30, 2013 |
||||||||||||
|
GAAP |
Adjustments |
Non-GAAP |
|||||||||||
| Net sales | $ | 1,182,235 | $ | 0 | $ | 1,182,235 | |||||||
| Cost of sales | 897,350 | (30,749)a | 866,601 | ||||||||||
| Gross profit | 284,885 | 30,749 | 315,634 | ||||||||||
| Selling, general and administrative expenses | 269,369 | (41,211)b | 228,158 | ||||||||||
| Operating income | 15,516 | 71,960 | 87,476 | ||||||||||
| Other expenses: | |||||||||||||
| Interest expense, net | 1,572 | 0 | 1,572 | ||||||||||
| Foreign exchange losses, net | 2,819 | 0 | 2,819 | ||||||||||
| Miscellaneous, net | 8,017 | (5,993)d | 2,024 | ||||||||||
| Income before income taxes | 3,108 | 77,953 | 81,061 | ||||||||||
| Income tax expense, net | (2,477 | ) | 20,020(c | ) | 17,543 | ||||||||
| Equity in net loss of unconsolidated subsidiaries | 95 | 0 | 95 | ||||||||||
| Net income attributable to HARMAN International Industries, Incorporated | $ | 5,490 | $ | 57,933 | $ | 63,423 | |||||||
| Earnings per share: | |||||||||||||
| Basic | $ | 0.08 | $ | 0.84 | $ | 0.92 | |||||||
| Diluted | $ | 0.08 | $ | 0.83 | $ | 0.91 | |||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 69,164 | 69,164 | |||||||||||
| Diluted | 69,965 | 69,965 | |||||||||||
| a) | Restructuring expense in Cost of Sales was $3.2 million for projects to increase manufacturing productivity and a non-recurring expense of $27.5 million related to potential NAFTA customs duties from prior years. | |
| b) | Restructuring expense in SG&A was $50.8 million primarily due to the divestment of a German manufacturing operation and projects to increase productivity in engineering and administrative functions; other non-recurring income in SG&A was $9.6 million due to the reduction of a contingent consideration accrual for MWM Acoustics, LLC and certain related entities. | |
| c) | The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the statutory tax rate within that specific country. | |
| d) | Non-recurring expense in miscellaneous, net includes a loss on available for sale securities. |
|
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) |
Twelve Months Ended June 30, 2013 |
|||||||||||
|
GAAP |
Adjustments |
Non-GAAP |
||||||||||
| Net sales | $ | 4,297,842 | $ | 0 | $ | 4,297,842 | ||||||
| Cost of sales | 3,193,722 | (35,404)a | 3,158,318 | |||||||||
| Gross profit | 1,104,120 | 35,404 | 1,139,524 | |||||||||
| Selling, general and administrative expenses | 902,869 | (53,083)b | 849,786 | |||||||||
| Operating income | 201,251 | 88,487 | 289,738 | |||||||||
| Other expenses: | ||||||||||||
| Interest expense, net | 12,868 | (1,129 | ) | 11,739 | ||||||||
| Foreign exchange losses, net | 2,313 | 0 | 2,313 | |||||||||
| Miscellaneous, net | 11,800 | (6,019 | ) | 5,781 | ||||||||
| Income before income taxes | 174,270 | 95,635 | 269,905 | |||||||||
| Income tax expense, net | 31,729 | 23,632(c | ) | 55,361 | ||||||||
| Equity in net loss of unconsolidated subsidiaries | 134 | 0 | 134 | |||||||||
| Net income attributable to HARMAN International Industries, Incorporated | $ | 142,407 | $ | 72,003 | $ | 214,410 | ||||||
| Earnings per share: | ||||||||||||
| Basic | $ | 2.06 | $ | 1.04 | $ | 3.11 | ||||||
| Diluted | $ | 2.04 | $ | 1.03 | $ | 3.07 | ||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 68,990 | 68,990 | ||||||||||
| Diluted | 69,736 | 69,736 | ||||||||||
| a) | Restructuring expense in Cost of Sales was $7.9 million due to projects to increase productivity in manufacturing; other non- recurring expense included in Cost of Sales was $27.5 million for potential NAFTA customs duties from prior years. | |
| b) | Restructuring expense in SG&A was $75.2 million primarily due to the divestment of a German manufacturing operation and projects to increase productivity in engineering and administrative functions; other non-recurring income in SG&A was $22.1 million due to reduction of a contingent consideration accrual for MWM Acoustics. | |
| c) | The tax benefits are calculated by multiplying the actual restructuring / non-recurring charge in each individual country by the statutory 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 June 30, |
Increase (Decrease) |
||||||||||
|
2014 |
2013 |
|||||||||||
| Net sales – nominal currency | $ | 1,444,419 | $ | 1,182,235 | 22% | |||||||
| Effect of foreign currency translation(1) |
22,907 |
|||||||||||
| Net sales - local currency | 1,444,419 | 1,205,142 | 20% | |||||||||
| Gross profit – nominal currency | 390,795 | 284,885 | 37% | |||||||||
| Effect of foreign currency translation(1) |
3,948 |
|||||||||||
| Gross profit – local currency | 390,795 | 288,833 | 35% | |||||||||
| SG&A & Other – nominal currency | 333,739 | 269,369 | 24% | |||||||||
| Effect of foreign currency translation(1) |
5,451 |
|||||||||||
| SG&A & Other – local currency | 333,739 | 274,820 | 21% | |||||||||
| Operating income – nominal currency | 57,056 | 15,516 | 268% | |||||||||
| Effect of foreign currency translation(1) |
(1,502) |
|||||||||||
| Operating income – local currency | 57,056 | 14,014 | 307% | |||||||||
| Net income attributable to HARMAN International Industries, Incorporated – nominal currency | 43,226 | 5,490 | 687% | |||||||||
| Effect of foreign currency translation(1) | (1,617) | |||||||||||
| Net income attributable to HARMAN International Industries, Incorporated – local currency | 43,226 | 3,873 | 1,016% | |||||||||
| (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
(In thousands; unaudited) |
Three Months Ended June 30, |
Increase (Decrease) |
|||||||||
|
2014 |
2013 |
||||||||||
| Net sales – nominal currency | $ | 1,444,419 | $ | 1,182,235 | 22% | ||||||
| Effect of foreign currency translation(1) |
22,907 |
||||||||||
| Net sales – local currency | 1,444,419 | 1,205,142 | 20% | ||||||||
| Gross profit - nominal currency | 394,090 | 315,634 | 25% | ||||||||
| Effect of foreign currency translation(1) |
4,089 |
||||||||||
| Gross profit - local currency | 394,090 | 319,723 | 23% | ||||||||
| SG&A & Other – nominal currency | 273,514 | 228,158 | 20% | ||||||||
| Effect of foreign currency translation(1) |
3,994 |
||||||||||
| SG&A & Other – local currency | 273,514 | 232,152 | 18% | ||||||||
| Operating income – nominal currency | 120,576 | 87,476 | 38% | ||||||||
| Effect of foreign currency translation(1) |
95 |
||||||||||
| Operating income – local currency | 120,576 | 87,571 | 38% | ||||||||
| Net income attributable to HARMAN International Industries, Incorporated – nominal currency | 87,345 | 63,423 | 38% | ||||||||
| Effect of foreign currency translation(1) | (19) | ||||||||||
| Net income attributable to HARMAN International Industries, Incorporated – local currency | 87,345 | 63,404 | 38% | ||||||||
| (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) |
Twelve Months Ended |
Increase (Decrease) |
||||||||||
|
2014 |
2013 |
|||||||||||
| Net sales – nominal currency | $ | 5,348,483 | $ | 4,297,842 | 24% | |||||||
| Effect of foreign currency translation(1) |
84,521 |
|||||||||||
| Net sales - local currency | 5,348,483 | 4,382,363 | 22% | |||||||||
| Gross profit – nominal currency | 1,456,667 | 1,104,120 | 32% | |||||||||
| Effect of foreign currency translation(1) |
15,259 |
|||||||||||
| Gross profit – local currency | 1,456,667 | 1,119,379 | 30% | |||||||||
| SG&A & Other – nominal currency | 1,126,940 | 902,869 | 25% | |||||||||
| Effect of foreign currency translation(1) |
15,452 |
|||||||||||
| SG&A & Other – local currency | 1,126,940 | 918,321 | 23% | |||||||||
| Operating income – nominal currency | 329,727 | 201,251 | 64% | |||||||||
| Effect of foreign currency translation(1) |
(193) |
|||||||||||
| Operating income – local currency | 329,727 | 201,058 | 64% | |||||||||
| Net income attributable to HARMAN International Industries, Incorporated – nominal currency | 234,692 | 142,407 | 65% | |||||||||
| Effect of foreign currency translation(1) | 1,003 | |||||||||||
| Net income attributable to HARMAN International Industries, Incorporated – local currency | 234,692 | 143,410 | 64% | |||||||||
| (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
(In thousands; unaudited) |
Twelve Months Ended June 30, |
Increase (Decrease) |
||||||||
|
2014 |
2013 |
|||||||||
| Net sales – nominal currency | $ | 5,348,483 | $ | 4,297,842 | 24% | |||||
| Effect of foreign currency translation(1) |
84,521 |
|||||||||
| Net sales – local currency | 5,348,483 | 4,382,363 | 22% | |||||||
| Gross profit - nominal currency | 1,465,505 | 1,139,524 | 29% | |||||||
| Effect of foreign currency translation(1) |
15,484 |
|||||||||
| Gross profit - local currency | 1,465,505 | 1,155,008 | 27% | |||||||
| SG&A & Other – nominal currency | 1,035,725 | 849,786 | 22% | |||||||
| Effect of foreign currency translation(1) |
12,598 |
|||||||||
| SG&A & Other – local currency | 1,035,725 | 862,384 | 20% | |||||||
| Operating income – nominal currency | 429,780 | 289,738 | 48% | |||||||
| Effect of foreign currency translation(1) |
2,885 |
|||||||||
| Operating income – local currency | 429,780 | 292,623 | 47% | |||||||
| Net income attributable to HARMAN International Industries, Incorporated – nominal currency | 308,208 | 214,410 | 44% | |||||||
| Effect of foreign currency translation(1) | 4,106 | |||||||||
| Net income attributable to HARMAN International Industries, Incorporated – local currency | 308,208 | 218,516 | 41% | |||||||
| (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 June 30, 2014 |
Three Months Ended June 30, 2013 |
|||||||||||
|
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||||
| HARMAN: | |||||||||||||
| Operating Income | 57,056 | 63,520 | 120,576 | 15,516 | 71,960 | 87,476 | |||||||
| Depreciation & Amortization | 35,026 | (1,418) | 33,608 | 36,175 | (3,116) | 33,059 | |||||||
| EBITDA | 92,082 | 62,102 | 154,184 | 51,691 | 68,844 | 120,535 | |||||||
| INFOTAINMENT: | |||||||||||||
| Operating Income | 39,972 | 31,239 | 71,211 | (5,334) | 49,282 | 43,948 | |||||||
| Depreciation & Amortization | 17,062 | (1,398) | 15,664 | 16,577 | (1,348) | 15,229 | |||||||
| EBITDA | 57,034 | 29,841 | 86,875 | 11,243 | 47,934 | 59,177 | |||||||
| LIFESTYLE: | |||||||||||||
| Operating Income | 26,793 | 19,812 | 46,605 | 26,956 | 15,012 | 41,968 | |||||||
| Depreciation & Amortization | 9,490 | 0 | 9,490 | 10,061 | (1,670) | 8,391 | |||||||
| EBITDA | 36,283 | 19812 | 56,095 | 37,017 | 13,342 | 50,359 | |||||||
| PROFESSIONAL: | |||||||||||||
| Operating Income | 37,360 | 3,278 | 40,638 | 25,503 | 7,665 | 33,168 | |||||||
| Depreciation & Amortization | 5,844 | (16) | 5,828 | 6,416 | (97) | 6,319 | |||||||
| EBITDA | 43,205 | 3,258 | 46,463 | 31,919 | 7568 | 39,487 | |||||||
|
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) |
Twelve Months Ended June 30, 2014 |
Twelve Months Ended June 30, 2013 |
|||||||||||
|
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||||
| HARMAN: | |||||||||||||
| Operating Income | 329,727 | 100,053 | 429,780 | 201,251 | 88,487 | 289,738 | |||||||
| Depreciation & Amortization | 132,328 | (6,959) | 125,369 | 128,169 | (5,338) | 122,831 | |||||||
| EBITDA | 462,055 | 93,094 | 555,149 | 329,420 | 83,149 | 412,569 | |||||||
| INFOTAINMENT: | |||||||||||||
| Operating Income | 195,403 | 54,717 | 250,120 | 90,799 | 60,222 | 151,021 | |||||||
| Depreciation & Amortization | 65,912 | (6,219) | 59,693 | 63,008 | (1,347) | 61,661 | |||||||
| EBITDA | 261,315 | 48,498 | 309,813 | 153,807 | 58,875 | 212,682 | |||||||
| LIFESTYLE: | |||||||||||||
| Operating Income | 170,517 | 27,323 | 197,840 | 137,477 | 19,253 | 156,730 | |||||||
| Depreciation & Amortization | 34,581 | (622) | 33,959 | 36,572 | (3,818) | 32,754 | |||||||
| EBITDA | 205,098 | 26,701 | 231,799 | 174,049 | 15,435 | 189,484 | |||||||
| PROFESSIONAL: | |||||||||||||
| Operating Income | 114,057 | 6,499 | 120,556 | 85,810 | 9,011 | 94,821 | |||||||
| Depreciation & Amortization | 20,866 | (119) | 20,747 | 16,882 | (171) | 16,711 | |||||||
| EBITDA | 134,923 | 6,380 | 141,303 | 102,692 | 8,840 | 111,532 | |||||||
|
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 Total Liquidity Reconciliation |
|||||||
| Total Company Liquidity |
June 30,
2014 |
||||||
| $ millions | |||||||
| Cash & cash equivalents | $581 | ||||||
| Short-term investments | 0 | ||||||
| Available credit under Revolving Credit Facility | 445 | ||||||
| Total liquidity | $1,026 | ||||||
