Intuit Reaffirms First Quarter and Fiscal 2009 Guidance
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--
Intuit Inc. (Nasdaq:INTU) today reaffirmed its financial guidance for first quarter and the full fiscal year 2009, which it first provided on Aug. 21. The company's fiscal year runs from Aug. 1 - July 31.
The announcement was made in conjunction with the company's annual Investor Day, which is being held tomorrow at Intuit's headquarters in Mountain View, Calif.
For fiscal 2009, Intuit reaffirmed the following guidance:
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Forward-Looking Guidance for Fiscal 2009
($ millions except EPS)
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Q1 09 FY 09
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Revenue % change Year-Over-Year 8%-11% 9%-12%
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GAAP Operating Income (Loss) ($122)-($107) $724-$744
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Non-GAAP Operating Income (Loss) ($65)-($50) $970-$990
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Non-GAAP Operating Margin NA 29%
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GAAP Diluted EPS ($0.26)-($0.23) $1.41-$1.45
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Non-GAAP Diluted EPS ($0.14)-($0.11) $1.86-$1.90
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Fiscal 2009 Business Segment Revenue Growth Guidance
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Segment Year-Over-Year Revenue Growth
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QuickBooks 8%-12%
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Payroll and Payments 14%-18%
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Consumer Tax 8%-12%
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Accounting Professionals 5%-9%
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Financial Institutions 5%-9%
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Other Businesses 6%-10%
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Webcast Information
Intuit's Investor Day presentations will be broadcast live on Intuit's Web site at http://www.intuit.com/about_intuit/investors/webcast.jhtml beginning at 9 a.m. Pacific time on Sept. 24. Those viewing the webcast should go to the Web site before the meeting to install any necessary audio software. A replay of the webcast will be available on Intuit's Web site approximately two hours after the event ends.
About Intuit
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks(R), Quicken(R) and TurboTax(R) software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries(R) and Lacerte(R) are Intuit's leading tax preparation software suites for professional accountants. The company's financial institutions division, anchored by Digital Insight, provides on-demand banking services to help banks and credit unions serve businesses and consumers with innovative solutions.
Founded in 1983, Intuit had revenue of $3.1 billion in fiscal year 2008. The company has approximately 8,000 employees with major offices in the United States, Canada, the United Kingdom and other locations. More information can be found at www.intuit.com.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the accompanying text titled "About Non-GAAP Financial Measures" as well as the related Table 1 which follows it.
Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of Intuit's expected financial results in fiscal 2009 and all of the statements under the headings "Forward-Looking Guidance for Fiscal 2009" and "Fiscal 2009 Business Segment Revenue Growth Guidance."
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively affect our operating results and market position; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; any interruption or failure of our information technology and communications system could compromise the availability and security of our online products, which could damage our reputation and harm our operating results; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products could harm our revenue, earnings and reputation; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; our acquisition activities may be disruptive to Intuit and may not result in expected benefits; our reliance on a limited number of manufacturing and distributing suppliers could harm our business; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operations; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to deliver products and services and gather information to effectively manage our business; our investments in auction rate securities are subject to risks that may cause losses and affect the liquidity of these investments; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and general economic conditions may affect our revenue and harm our business. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2008 and in our other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of September 23, 2008, and we do not undertake any duty to update any forward-looking statement or other information in this release.
INTUIT INC.
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated September 23, 2008 contains non-
GAAP financial measures. Table 1 reconciles the non-GAAP financial
measures in that press release to the most directly comparable
financial measures prepared in accordance with Generally Accepted
Accounting Principles (GAAP). These non-GAAP financial measures
include non-GAAP operating income (loss) and related operating margin
as a percentage of revenue, non-GAAP net income (loss) and non-GAAP
net income (loss) per share.
Non-GAAP financial measures should not be considered as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. These non-GAAP financial measures do not
reflect a comprehensive system of accounting, differ from GAAP
measures with the same names and may differ from non-GAAP financial
measures with the same or similar names that are used by other
companies.
We believe that these non-GAAP financial measures provide meaningful
supplemental information regarding Intuit's operating results
primarily because they exclude amounts that we do not consider part
of ongoing operating results when assessing the performance of the
organization, our operating segments or our senior management.
Segment managers are not held accountable for share-based
compensation expenses, acquisition-related costs, or the other
excluded items that may impact their business units' operating income
(loss) and, accordingly, we exclude these amounts from our measures
of segment performance. We also exclude these amounts from our budget
and planning process. We believe that our non-GAAP financial measures
also facilitate the comparison of results for current periods and
guidance for future periods with results for past periods. We exclude
the following items from our non-GAAP financial measures:
-- Share-based compensation expenses. Our non-GAAP financial measures
exclude share-based compensation expenses, which consist of
expenses for stock options, restricted stock, restricted stock
units and purchases of common stock under our Employee Stock
Purchase Plan. Segment managers are not held accountable for
share-based compensation expenses impacting their business units'
operating income (loss) and, accordingly, we exclude share-based
compensation expenses from our measures of segment performance.
While share-based compensation is a significant expense affecting
our results of operations, management excludes share-based
compensation from our budget and planning process. We exclude
share-based compensation expenses from our non-GAAP financial
measures for these reasons and the other reasons stated above. We
compute weighted average dilutive shares using the method
required by SFAS 123(R) for both GAAP and non-GAAP diluted net
income per share.
-- Amortization of purchased intangible assets and acquisition-
related charges. In accordance with GAAP, amortization of
purchased intangible assets in cost of revenue includes
amortization of software and other technology assets related to
acquisitions. Acquisition-related charges in operating expenses
include amortization of other purchased intangible assets such as
customer lists, covenants not to compete and trade names.
Acquisition activities are managed on a corporate-wide basis and
segment managers are not held accountable for the acquisition-
related costs impacting their business units' operating income
(loss). We exclude these amounts from our measures of segment
performance and from our budget and planning process. We exclude
these items from our non-GAAP financial measures for these
reasons, the other reasons stated above and because we believe
that excluding these items facilitates comparisons to the results
of other companies in our industry, which have their own unique
acquisition histories.
-- Gains and losses on disposals of businesses and assets. We exclude
these amounts from our non-GAAP financial measures for the
reasons stated above and because they are unrelated to our
ongoing business operating results.
-- Gains and losses on marketable equity securities and other
investments. We exclude these amounts from our non-GAAP financial
measures for the reasons stated above and because they are
unrelated to our ongoing business operating results.
-- Income tax effects of excluded items. Our non-GAAP financial
measures exclude the income tax effects of the adjustments
described above that relate to the current period as well as
adjustments for similar items that relate to prior periods. We
exclude the impact of these tax items for the reasons stated
above and because management believes that they are not
indicative of our ongoing business operations.
-- Operating results and gains and losses on the sale of discontinued
operations. From time to time, we sell or otherwise dispose of
selected operations as we adjust our portfolio of businesses to
meet our strategic goals. In accordance with GAAP, we segregate
the operating results of discontinued operations as well as gains
and losses on the sale of these discontinued operations from
continuing operations on our GAAP statements of operations but
continue to include them in GAAP net income or loss and net
income or loss per share. We exclude these amounts from our non-
GAAP financial measures for the reasons stated above and because
they are unrelated to our ongoing business operations.
The following describes each non-GAAP financial measure, the items
excluded from the most directly comparable GAAP measure in arriving
at each non-GAAP financial measure, and the reasons management uses
each measure and excludes the specified amounts in arriving at each
non-GAAP financial measure.
(A) Operating income (loss) and related operating margin as a
percentage of revenue. We exclude share-based compensation
expenses, amortization of purchased intangible assets and
acquisition-related charges from our GAAP operating income (loss)
from continuing operations and related operating margin in
arriving at our non-GAAP operating income (loss) and related
operating margin primarily because we do not consider them part
of ongoing operating results when assessing the performance of
the organization, our operating segments and senior management or
when undertaking our budget and planning process. We believe that
the exclusion of these expenses from our non-GAAP financial
measures also facilitates the comparison of results for current
periods and guidance for future periods with results for prior
periods. In addition, we exclude amortization of purchased
intangible assets and acquisition-related charges from non-GAAP
operating income (loss) and operating margin because we believe
that excluding these items facilitates comparisons to the results
of other companies in our industry, which have their own unique
acquisition histories.
(B) Net income (loss) and net income (loss) per share (or earnings per
share). We exclude share-based compensation expenses,
amortization of purchased intangible assets, acquisition-related
charges, net gains on marketable equity securities and other
investments, gains and losses on disposals of businesses and
assets, certain tax items as described above, and amounts related
to discontinued operations from our GAAP net income (loss) and
net income (loss) per share in arriving at our non-GAAP net
income (loss) and net income (loss) per share. We exclude all of
these items from our non-GAAP net income (loss) and net income
(loss) per share primarily because we do not consider them part
of ongoing operating results when assessing the performance of
the organization, our operating segments and senior management or
when undertaking our budget and planning process. We believe that
the exclusion of these items from our non-GAAP financial measures
also facilitates the comparison of results for current periods
and guidance for future periods with results for prior periods.
In addition, we exclude amortization of purchased intangible
assets and acquisition-related charges from our non-GAAP net
income (loss) and net income (loss) per share because we believe
that excluding these items facilitates comparisons to the results
of other companies in our industry, which have their own unique
acquisition histories. We exclude net gains on marketable equity
securities and other investments from our non-GAAP net income
(loss) and net income (loss) per share because they are unrelated
to our ongoing business operating results. Our non-GAAP financial
measures exclude the income tax effects of the adjustments
described above that relate to the current period as well as
adjustments for similar items that relate to prior periods. We
exclude the impact of these tax items because management believes
that they are not indicative of our ongoing business operations.
The effective tax rates used to calculate non-GAAP net income
(loss) and net income (loss) per share was 36% for fiscal 2009
guidance. Finally, we exclude amounts related to discontinued
operations from our non-GAAP net income (loss) and net income
(loss) per share because they are unrelated to our ongoing
business operations.
We refer to these non-GAAP financial measures in assessing the
performance of Intuit's ongoing operations and for planning and
forecasting in future periods. These non-GAAP financial measures also
facilitate our internal comparisons to Intuit's historical operating
results. We have historically reported similar non-GAAP financial
measures and believe that the inclusion of comparative numbers
provides consistency in our financial reporting. We compute non-GAAP
financial measures using the same consistent method from quarter to
quarter and year to year.
The reconciliations of the forward-looking non-GAAP financial measures
to the most directly comparable GAAP financial measures in Table 1
include all information reasonably available to Intuit at the date of
this press release. These tables include adjustments that we can
reasonably predict. Events that could cause the reconciliation to
change include acquisitions and divestitures of businesses, goodwill
and other asset impairments and sales of marketable equity securities
and other investments.
Table 1
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL
MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME (LOSS), AND EPS
(In thousands, except per share amounts)
(Unaudited)
Forward-Looking Guidance
------------------------------------------------------------
GAAP Non-GAAP
Range of Estimate Range of Estimate
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From To Adjustments From To
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Three
Months
Ending
October
31, 2008
Revenue $ 480,000 $ 492,000 $ - $ 480,000 $ 492,000
Operating
loss $ (122,000) $ (107,000) $ 57,000 (a) $ (65,000) $ (50,000)
Diluted
loss per
share $ (0.26) $ (0.23) $ 0.12 (b) $ (0.14) $ (0.11)
Shares 321,000 323,000 - 321,000 323,000
Twelve
Months
Ending
July 31,
2009
Revenue $3,350,000 $3,430,000 $ - $3,350,000 $3,430,000
Operating
income $ 724,000 $ 744,000 $246,000 (c) $ 970,000 $ 990,000
Operating
margin 22% 22% 7%(c) 29% 29%
Diluted
earnings
per
share $ 1.41 $ 1.45 $ 0.45 (d) $ 1.86 $ 1.90
Shares 328,000 331,000 - 328,000 331,000
(a) Reflects estimated adjustments for share-based compensation
expense of approximately $32 million; amortization of
purchased intangible assets of approximately $15 million;
and acquisition-related charges of approximately $10
million.
(b) Reflects the estimated adjustments in item (a) and income
taxes related to these adjustments.
(c) Reflects estimated adjustments for share-based compensation
expense of approximately $148 million; amortization of
purchased intangible assets of approximately $60 million;
and acquisition-related charges of approximately $38
million.
(d) Reflects the estimated adjustments in item (c) and income
taxes related to these adjustments.
Source: Intuit Inc.
Released September 23, 2008