Slide 1: Q3 FY 2014 Financial Results Conference Call
Q3 FY 2014 FINANCIAL RESULTS CONFERENCE CALL May 1, 2014 at 5:00 pm ET
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain comments, which are “forward-looking” statements that involve plans, strategies, economic performance and trends, projections, expectations, or beliefs about future events and other statements that are not descriptions of historical facts, may be for
Slide 3: Highlights – Q3 FY14
Highlights – Q3 FY14 Third quarter 2014 net sales of $683 million, below our expected range, and EPS of $0.59, above our expected range Double-digit Y/Y growth in operating income and EPS, despite mixed sales results Overall sales unchanged from prior year period Worldwide Barcode & Security
Slide 4: Income Statement Highlights
Income Statement Highlights In millions, except EPS Q3 FY14 Q3 FY13 Y/Y Change: Net sales $683.0 $683.0 Unchanged Gross margin % (of net sales) 10.74% 10.08% 66 bp margin increase SG&A expenses $46.7 $47.9 2.6% lower SG&A Change in FV of contingent consideration $1.0 $0.1 $0.9 FV decrease Op
Slide 5: Q3 FY14 Sales Mix
Q3 FY14 Sales Mix By Technology By Geography 33% 27% Communications International & Services 67% 73% Barcode & North Security America* Barcode & Security = Worldwide Barcode and Security Communications & Services = Worldwide Communications and Services As a % of Q3 FY14 net sales of $683.0 million *
Slide 6: WW Barcode & Security
WW Barcode & Security Net Sales, $ in millions Up 4.0% Q3 FY14 Q3 FY13 Excluding FX, Up 4.8% $ in millions $456 Net sales $455.8 $438.2 $438 Gross profit $43.0 $39.1 Gross margin 9.4% 8.9% Operating income $13.8 $10.4 Operating income % 3.0% 2.4% Q3 FY13 Q3 FY14 * See Appendix for reconciliation of
Slide 7: WW Communications & Services
WW Communications & Services Net Sales, $ in millions Down (7.2)% Q3 FY14 Q3 FY13 Excluding FX, Down (7.4)% $ in millions Net sales $227.2 $244.8 $245 $227 Gross profit $30.3 $29.8 Gross margin 13.3% 12.2% Operating income $11.8 $10.4 Operating income % 5.2% 4.2% Q3 FY13 Q3 FY14 * See Appendix for r
Slide 8: Q3 FY14 Key Measures
Q3 FY14 Key Measures Q3 FY14 Q2 FY14 Q3 FY13 $ in millions Return on invested capital (“ROIC”)* 14.8% 15.9% 13.3% Cash and cash equivalents (Q/E) $183.6 $157.1 $93.9 Uncleared checks (included in accounts payable) $53.2 $107.1 $47.3 Operating cash flow, trailing 12-months $86.1 $140.8 $110.9 Days sa
Slide 9: Q4 FY14 Outlook
Q4 FY14 Outlook* For the Quarter Ending June 30, 2014: Net Range from $715 million to $745 million Sales Range midpoint: $730 million Diluted Earnings Range from $0.55 to $0.58 per share Per Share Range midpoint: $0.565 * Outlook as of May 1, 2014 9
Slide 10: WW Communications & Services Highlights
WW Communications & Services Highlights Net Sales, $ in millions 33% of overall sales Down (7.2)% Disappointing sales quarter, due to Excluding FX, Down (7.4)% execution challenges $245 Gross profit and operating income $227 increase from more favorable product mix and higher service fee incom
Slide 11: WW Barcode & Security Highlights
WW Barcode & Security Highlights Net Sales, $ in millions 67% of overall sales Up 4.0% Sale of Motorola’s Enterprise business Excluding FX, Up 4.8% to Zebra Technologies announced $456 $438 In North America, strong growth in POS was offset by weaker AIDC (especially big AIDC deals) Strong sa
Slide 12: Launching a New Technology – 3D Printing
Launching a New Technology – 3D Printing 3D printing ready for value-added distribution Lower product costs, advancements in technology capabilities, emergence of a reseller channel, high-growth market Key vendor relationship: 3D Systems (leader in 3D printing and design-to-manufacturing sol
Slide 13: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Q3 FY14 Q2 FY14 Q3 FY13 Return on invested capital (ROIC), annualized (a) 14.8% 15.9% 13.3% Reconciliation of Net Income (Loss) to EBITDA Net income (loss) - GAAP $ 16,949 $ 18,298 $ 13,978 Plus: Income taxes 9,031 9,511 7,202 Plus: Interest expense 217 235 1
Slide 14: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Worldwide Barcode & Security Net sales, excluding impact of foreign exchange (FX) - Y/Y Change: Q3 FY14 net sales $ 455.8 Foreign exchange impact 3.6 Q3 FY14 net sales, excluding FX impact $ 459.4 Q3 FY13 sales $ 438.2 % Change 4.8% Worldwide Communications &