Zebra Technologies Corporation · NASDAQ:ZBRA
Zebra Technologies — Q1 2021 Earnings Presentation
21 slides from Zebra Technologies's earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Results
Zebra Technologies First Quarter 2021 Results May 4, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements made in this presentation which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results may differ from those expressed or impli
Slide 3: Agenda
Agenda Q1 Highlights 01 Anders Gustafsson, CEO Q1 Financials and 2021 Outlook 02 Nathan Winters, CFO Advancing our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 4: First Quarter 2021 Highlights
First Quarter 2021 Highlights (1) • Our teams continue to execute well in response to strong demand for our solutions as customers recover from the pandemic • Delivered sales, EBITDA margin, and earnings per share results that exceeded our outlook, as customers prioritize investment in our solutions
Slide 5: Agenda
Agenda Q1 Highlights 01 Anders Gustafsson, CEO Q1 Financials and 2021 Outlook 02 Nathan Winters, CFO Advancing our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 6: First Quarter P&L Summary
First Quarter P&L Summary(1) In millions, except per share data 1Q21 1Q20 Change SEGMENT ORGANIC SALES GROWTH(2,3) • EVM Segment +26.8% Adjusted Net Sales $1,350 $1,052 +28.3% • AIT Segment +21.4% Organic Net Sales Growth(2,3) +25.0% REGIONAL ORGANIC SALES GROWTH(2,3) Adjusted Gross Profit $660 $475
Slide 7: Cash Flow & Balance Sheet Highlights
Cash Flow & Balance Sheet Highlights 1Q21 Cash Flow Strong Liquidity Position Q121 • $214M free cash flow 1Q21 • $177M in cash & cash equivalents – $119M higher free cash flow YoY primarily due • $1.1B total debt on balance sheet to higher net income • Nearly $1B capacity under revolving credit faci
Slide 8: Outlook & Assumptions
Outlook & Assumptions (1) 2Q21 FY21 • Adjusted net sales growth ~ 38-42% YoY • Adjusted net sales growth ~ 18-22% YoY – ~ 3 percentage point additive impact from recently acquired – ~ 450-500 basis point additive impact from business(1) and FX recently acquired business (1) and FX • Adj. EBITDA marg
Slide 9: Agenda
Agenda Q1 Highlights 01 Anders Gustafsson, CEO Q1 Financials and 2021 Outlook 02 Nathan Winters, CFO Advancing our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 10: Zebra Digitizes & Automates the Front Line of Business
Zebra Digitizes & Automates the Front Line of Business Transforming Workflows: Purpose-Built Hardware + Software + Cloud Analytics ZEBRA TECHNOLOGIES 10
Slide 11: Pandemic Behavioral Shifts Drive Urgency for Zebra's Solutions
Pandemic Behavioral Shifts Drive Urgency for Zebra’s Solutions Macro trends supporting our business have accelerated Global ecommerce sales nearly Global parcel shipping volume more doubling to $6.4 trillion by 2024 (1) than doubling to >220 billion packages per day by 2026 (2) ZSB Series Label Prin
Slide 12: Zebra Optimizes Workflows for the On-Demand Economy
Zebra Optimizes Workflows for the On-Demand Economy Intelligent Automation Retail & Other Markets Ecommerce Enterprise Mobility IoT / Cloud Computing Transportation & Healthcare Logistics ZEBRA TECHNOLOGIES 12 Manufacturing
Slide 13: Agenda
Agenda Q1 Highlights 01 Anders Gustafsson, CEO Q1 Financials and 2021 Outlook 02 Nathan Winters, CFO Advancing our Enterprise Asset 03 Intelligence Vision Anders Gustafsson, CEO Q&A 04 Anders Gustafsson, CEO Nathan Winters, CFO Joe Heel, Chief Revenue Officer
Slide 14: Q&A
Q&A ZEBRA TECHNOLOGIES 14
Slide 15: Appendix
Appendix ZEBRA TECHNOLOGIES 15
Slide 16: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This earnings release contains certain Non-GAAP financial measures, consisting of “adjusted net sales,” “adjusted gross profit,” “EBITDA,” “Adjusted EBITDA,” “Non-GAAP net income,” “Non-GAAP earnings per share,” “free cash flow,” “organic net sales growth,” and
Slide 17: GAAP to Non-GAAP Organic Net Sales Growth Reconciliation
GAAP to Non-GAAP Organic Net Sales Growth Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 17
Slide 18: GAAP to Non-GAAP Gross Margin Reconciliation
(In millions) GAAP to Non-GAAP Gross Margin Reconciliation (Unaudited) Three Months Ended April 3, 2021 March 28, 2020 AIT EVM Consolidated AIT EVM Consolidated GAAP Reported Net sales (1) $ 436 $ 914 $ 1,347 $ 355 $ 697 $ 1,052 Reported Gross profit (1) 210 448 655 171 303 473 Gross Margin 48.2 % 4
Slide 19: GAAP to Non-GAAP Net Income Reconciliation
GAAP to Non-GAAP Net Income Reconciliation (In millions, except share data) (Unaudited) Three Months Ended April 3, March 28, 2021 2020 Net income $ 228 $ 89 Adjustments to Net sales(1) Purchase accounting adjustments 3 — Total adjustments to Net sales 3 — Adjustments to Cost of sales(1) Share-based
Slide 20: GAAP to Non-GAAP EBITDA Reconciliation
(In millions) GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) ZEBRA TECHNOLOGIES 20
Slide 21: GAAP to Non-GAAP Free Cash Flow Reconciliation
(In millions) GAAP to Non-GAAP Free Cash Flow Reconciliation (Unaudited) Three Months Ended April 3, March 28, 2021 2020 Net cash provided by operating activities $ 224 $ 108 Less: Purchases of property, plant and equipment (10) (13) Free cash flow (Non-GAAP)(1) $ 214 $ 95 ZEBRA TECHNOLOGIES 21