Intuit Fiscal 2008 Revenue Grows 15 Percent
Fourth-Quarter Revenue Increases 11 Percent
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--
Intuit Inc. (Nasdaq:INTU) today announced fourth-quarter revenue of $478 million, an 11 percent increase over the year-ago quarter. Revenue for fiscal year 2008, which ended July 31, was $3.1 billion, a 15 percent increase over the prior year.
"We had another successful tax season and a solid finish in small business," said Brad Smith, Intuit's president and chief executive officer. "With our focus on innovation and on solving customer problems with connected services, we are looking forward to another strong year in fiscal 2009."
Fiscal 2008 Financial Highlights
-- Revenue of $3.1 billion increased 15 percent from fiscal 2007.
Growth was driven by strong performance in Intuit's tax
business and the acquisition of Digital Insight in February
2007.
-- GAAP (Generally Accepted Accounting Principles) operating
income of $651 million increased 2 percent from fiscal 2007.
GAAP diluted earnings per share of $1.41 increased 14 percent
from fiscal 2007.
-- Non-GAAP operating income of $856 million increased 12 percent
from fiscal 2007. Non-GAAP diluted earnings per share of $1.60
increased 12 percent from fiscal 2007.
Fiscal 2008 Business Segment Results
-- QuickBooks revenue was $622 million, an increase of 6 percent
from the prior year.
-- Payroll and Payments revenue was $561 million, an increase of
9 percent from the prior year.
-- Consumer Tax revenue was $929 million, an increase of 14
percent from the prior year.
-- Accounting Professionals revenue was $327 million, an increase
of 4 percent from the prior year. This segment was formerly
known as Professional Tax.
-- Financial Institutions revenue was $299 million and includes
the results of Digital Insight, which was acquired on Feb. 6,
2007.
-- Other Businesses revenue was $334 million, an increase of 14
percent from the prior year.
Fourth-Quarter 2008 Financial Highlights
-- Revenue of $478 million increased 11 percent from the year-ago
quarter.
-- GAAP operating loss of $94 million compared with a GAAP
operating loss of $57 million in the year-ago quarter. GAAP
loss per share of $0.19 compared with a GAAP loss per share of
$0.04 in the year-ago quarter.
-- Non-GAAP operating loss of $41 million compared with a
non-GAAP operating loss of $17 million in the year-ago
quarter. Non-GAAP loss per share of $0.08 compared with a
non-GAAP loss per share of $0.02 in the year-ago quarter.
Intuit typically posts a seasonal loss in its fourth quarter when there is little revenue from its tax businesses but expenses remain relatively constant. The 2008 loss includes a $23 million pretax charge for severance and facilities closures. The 2007 loss includes a pretax gain of $31 million from the sale of outsourced payroll assets.
Forward-looking Guidance
Intuit provided its financial guidance for fiscal 2009, which will end on July 31, 2009. The company expects:
-- Revenue of $3.35 billion to $3.43 billion, or growth of 9
percent to 12 percent.
-- Non-GAAP operating income of $970 million to $990 million, or
growth of 13 percent to 16 percent. GAAP operating income is
expected to be $724 million to $744 million.
-- Non-GAAP diluted earnings per share, or EPS, is expected to be
$1.86 to $1.90, or growth of 16 percent to 19 percent. GAAP
diluted EPS is expected to be $1.41 to $1.45.
Fiscal 2009 Business Segment Guidance
Intuit's expected results for its business segments for fiscal 2009 are:
-- QuickBooks revenue of $670 million to $695 million, or growth
of 8 percent to 12 percent.
-- Payroll and Payments revenue of $639 million to $662 million,
or growth of 14 percent to 18 percent.
-- Consumer Tax revenue of $1.0 billion to $1.04 billion, or
growth of 8 percent to 12 percent.
-- Accounting Professionals revenue of $345 million to $358
million, or growth of 5 percent to 9 percent.
-- Financial Institutions revenue of $313 million to $325
million, or growth of 5 percent to 9 percent.
-- Other Businesses revenue of $354 million to $367 million, or
growth of 6 percent to 10 percent.
First-Quarter Fiscal 2009 Guidance
Intuit's expected results for the first quarter of 2009, which will end on Oct. 31, 2008, are:
-- Revenue of $480 million to $492 million, or growth of 8
percent to 11 percent.
-- Non-GAAP operating loss of $65 million to $50 million and a
GAAP operating loss of $122 million to $107 million. Intuit
typically posts a seasonal loss in its first quarter when it
has little revenue from its tax businesses but expenses remain
relatively constant.
-- Non-GAAP net loss per share of $0.14 to $0.11 and a GAAP net
loss per share of $0.26 to $0.23.
Webcast and Conference Call Information
A live audio webcast of Intuit's fourth-quarter 2008 conference call is available at http://www.intuit.com/about_intuit/investors/webcast.jhtml. The call begins today at 1:30 p.m. Pacific time. The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has also posted this press release, including the attached tables and non-GAAP to GAAP reconciliations on its Web site and will post the conference call script shortly after the conference call concludes. These documents may be found at http://intuit.com/about_intuit/investors/earnings/2008/.
The conference call number is 866-814-1918 in the United States or 703-639-1362 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code for this call is 1262029.
Intuit, the Intuit logo and QuickBooks, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
About Non-GAAP Financial Measures
This press release and the accompanying tables include 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, please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table B and Table E which follow it. A copy of the press release issued by Intuit on August 21, 2008 can be found on the investor relations page of Intuit's Web site.
Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of Intuit's future expected financial results; its prospects for the business in fiscal 2009 and beyond; and all of the statements under the headings "Forward-looking Guidance," "Fiscal 2009 Business Segment Guidance" and "First-Quarter 2009 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 or public policy affecting the preparation and filing of tax returns could negatively affect our operating results and market position; 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 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; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; 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 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 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; if economic growth in the U.S. continues to slow, our customers may delay or reduce technology purchases which may harm our business, results of operations and financial condition; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2007 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 August 21, 2008, and we do not undertake any duty to update any forward-looking statement or other information in these remarks.
Table A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------- -----------------------
July 31, July 31, July 31, July 31,
2008 2007 2008 2007
--------- --------- ----------- -----------
Net revenue:
Product $219,575 $207,160 $1,496,655 $1,447,392
Service and other 258,579 225,512 1,574,319 1,225,555
--------- --------- ----------- -----------
Total net revenue 478,154 432,672 3,070,974 2,672,947
--------- --------- ----------- -----------
Costs and expenses:
Cost of revenue:
Cost of product
revenue 28,883 27,026 154,147 169,101
Cost of service and
other revenue 108,497 90,851 414,100 309,419
Amortization of
purchased intangible
assets 15,823 13,055 56,011 30,926
Selling and marketing 180,188 154,665 859,647 742,368
Research and development 156,730 125,902 605,818 472,516
General and
administrative 72,029 69,859 294,966 291,083
Acquisition-related
charges 10,169 8,022 35,518 19,964
--------- --------- ----------- -----------
Total costs and
expenses (A) 572,319 489,380 2,420,207 2,035,377
--------- --------- ----------- -----------
Operating income (loss)
from continuing
operations (94,165) (56,708) 650,767 637,570
Interest expense (11,901) (14,268) (52,290) (27,091)
Interest and other income 14,043 20,822 46,520 52,689
Gains on marketable equity
securities and other
investments, net 227 - 1,417 1,568
Gain on sale of outsourced
payroll assets (B) - 31,270 51,571 31,676
--------- --------- ----------- -----------
Income (loss) from
continuing operations
before income taxes (91,796) (18,884) 697,985 696,412
Income tax (benefit)
provision (C) (30,260) (6,541) 245,579 251,607
Minority interest expense,
net of tax 324 516 1,656 1,337
--------- --------- ----------- -----------
Net income (loss) from
continuing operations (61,860) (12,859) 450,750 443,468
Net income (loss) from
discontinued operations
(D) - (781) 26,012 (3,465)
--------- --------- ----------- -----------
Net income (loss) $(61,860) $(13,640) $ 476,762 $ 440,003
========= ========= =========== ===========
Basic net income (loss)
per share from continuing
operations $ (0.19) $ (0.04) $ 1.37 $ 1.29
Basic net income (loss)
per share from
discontinued operations - - 0.08 (0.01)
--------- --------- ----------- -----------
Basic net income (loss)
per share $ (0.19) $ (0.04) $ 1.45 $ 1.28
========= ========= =========== ===========
Shares used in basic per
share calculations 321,641 337,550 328,545 342,637
========= ========= =========== ===========
Diluted net income (loss)
per share from continuing
operations $ (0.19) $ (0.04) $ 1.33 $ 1.25
Diluted net income (loss)
per share from
discontinued operations - - 0.08 (0.01)
--------- --------- ----------- -----------
Diluted net income (loss)
per share $ (0.19) $ (0.04) $ 1.41 $ 1.24
========= ========= =========== ===========
Shares used in diluted per
share calculations 321,641 337,550 339,268 355,815
========= ========= =========== ===========
See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
(A) The following table summarizes the total share-based compensation
expense that we recorded for continuing operations for the
periods shown. The share-based compensation expense that we
recorded for discontinued operations for these periods was
nominal.
Three Months Twelve Months
Ended Ended
----------------- -----------------
July 31, July 31, July 31, July 31,
2008 2007 2008 2007
-------- -------- -------- --------
Cost of product revenue $ 171 $ 129 $ 1,018 $ 743
Cost of service and other
revenue 1,317 1,200 6,211 3,283
Selling and marketing 9,838 5,205 37,948 23,518
Research and development 7,464 5,305 31,841 21,511
General and administrative 8,165 6,489 36,219 27,258
-------- -------- -------- --------
Total share-based compensation $ 26,955 $ 18,328 $113,237 $ 76,313
======== ======== ======== ========
(B) In March 2007 we sold certain assets related to our Complete
Payroll and Premier Payroll Service businesses to Automatic Data
Processing, Inc. (ADP) for a price of up to approximately $135
million in cash. The final purchase price was contingent upon
the number of customers that transitioned to ADP pursuant to the
purchase agreement over a period of approximately one year from
the date of sale. In the twelve months ended July 31, 2008 we
recorded a pre-tax net gain of $51.6 million on our statement of
operations for customers who transitioned to ADP during that
period. We received a total price of $93.6 million and recorded
a total pre-tax gain of $83.2 million from the inception of this
transaction through its completion in the third quarter of
fiscal 2008.
In accordance with the provisions of SFAS 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets," we did not
account for this transaction as a discontinued operation because
the operations and cash flows of the assets could not be clearly
distinguished, operationally or for financial reporting
purposes, from the rest of our outsourced payroll business. The
assets were part of our Payroll and Payments segment.
(C) Our effective tax rate for the three months ended July 31, 2008
was approximately 33%. Excluding one-time charges primarily
related to an adjustment of a deferred tax asset, our effective
tax rate for that period was 35% and did not differ
significantly from the federal statutory rate. State income
taxes were offset primarily by the benefit we received from tax
exempt interest income, the domestic production activities
deduction, and federal and state research and experimental
credits. Our effective tax rate for the three months ended July
31, 2007 was approximately 35% and did not differ significantly
from the federal statutory rate. State income taxes were offset
primarily by the benefit we received from federal and state
research and experimental credits and tax exempt interest
income.
Our effective tax rate for the twelve months ended July 31, 2008
was approximately 35% and did not differ significantly from the
federal statutory rate. State income taxes were offset primarily
by the benefit we received from tax exempt interest income, the
domestic production activities deduction, and federal and state
research and experimental credits. Our effective tax rate for
the twelve months ended July 31, 2007 was approximately 36%.
This differed from the federal statutory rate of 35% primarily
due to state income taxes, which were partially offset by the
benefit we received from federal and state research and
experimental credits and tax exempt interest income. In
addition, we benefited from the retroactive extension of the
federal research and experimental credit in the fiscal 2007
period.
(D) In August 2007 we sold our Intuit Distribution Management
Solutions (IDMS) business for approximately $100 million in cash
and recorded a net gain on disposal of $27.5 million. IDMS was
part of our Other Businesses segment. In accordance with the
provisions of SFAS 144, "Accounting for the Impairment or
Disposal of Long-lived Assets," we determined that IDMS became a
discontinued operation in the fourth quarter of fiscal 2007. We
have therefore segregated the net assets and operating results
of IDMS from continuing operations on our balance sheets and in
our statements of operations for all periods prior to the sale.
Assets held for sale at July 31, 2007 consisted primarily of
goodwill and purchased intangible assets. Because IDMS operating
cash flows were not material for any period presented, we have
not segregated them from continuing operations on our statements
of cash flows. We have segregated the cash impact of the gain on
disposal of IDMS on our statement of cash flows for the twelve
months ended July 31, 2008.
Revenue and net loss from IDMS discontinued operations were $1.9
million and $0.7 million for the twelve months ended July 31,
2008. Revenue and net loss from IDMS discontinued operations
were $12.5 million and $0.8 million for the three months ended
July 31, 2007 and revenue and net loss were $52.0 million and
$2.3 million for the twelve months then ended.
We recorded net losses of $0.8 million in the second quarter of
fiscal 2008 and $1.1 million in the third quarter of fiscal 2007
for certain contingent liabilities that became payable to the
purchaser of our Intuit Information Technology Solutions
business, which we sold in December 2005.
(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 were as
follows: 37% for the first quarter of fiscal 2007; 36% for
the second, third and fourth quarters of fiscal 2007; 36%
for the first, second, third and fourth quarters of fiscal
2008; and 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.
Table B
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------- -------------------
July 31, July 31, July 31, July 31,
2008 2007 2008 2007
--------- --------- --------- ---------
GAAP operating income (loss)
from continuing operations $(94,165) $(56,708) $650,767 $637,570
Amortization of purchased
intangible assets 15,823 13,055 56,011 30,926
Acquisition-related charges 10,169 8,022 35,518 19,964
Share-based compensation
expense 26,955 18,328 113,237 76,313
--------- --------- --------- ---------
Non-GAAP operating income
(loss) $(41,218) $(17,303) $855,533 $764,773
========= ========= ========= =========
GAAP net income (loss) $(61,860) $(13,640) $476,762 $440,003
Amortization of purchased
intangible assets 15,823 13,055 56,011 30,926
Acquisition-related charges 10,169 8,022 35,518 19,964
Share-based compensation
expense 26,955 18,328 113,237 76,313
Net gains on marketable equity
securities and other
investments (227) - (1,417) (1,568)
Pre-tax gain on sale of
outsourced payroll assets - (31,270) (51,571) (31,676)
Income tax effect of non-GAAP
adjustments (15,618) (3,483) (55,181) (34,512)
Exclusion of discrete tax items (575) 758 (5,155) 5,537
Discontinued operations - 781 (26,012) 3,465
--------- --------- --------- ---------
Non-GAAP net income (loss) $(25,333) $ (7,449) $542,192 $508,452
========= ========= ========= =========
GAAP diluted net income (loss)
per share $ (0.19) $ (0.04) $ 1.41 $ 1.24
Amortization of purchased
intangible assets 0.05 0.04 0.17 0.09
Acquisition-related charges 0.03 0.02 0.10 0.06
Share-based compensation
expense 0.08 0.05 0.33 0.21
Net gains on marketable equity
securities and other
investments - - - -
Pre-tax gain on sale of
outsourced payroll assets - (0.09) (0.15) (0.09)
Income tax effect of non-GAAP
adjustments (0.05) - (0.16) (0.11)
Exclusion of discrete tax items - - (0.02) 0.02
Discontinued operations - - (0.08) 0.01
--------- --------- --------- ---------
Non-GAAP diluted net income
(loss) per share $ (0.08) $ (0.02) $ 1.60 $ 1.43
========= ========= ========= =========
Shares used in diluted per
share calculations 321,641 337,550 339,268 355,815
========= ========= ========= =========
Table C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, July 31,
2008 2007
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 413,340 $ 255,201
Investments 414,493 1,048,470
Accounts receivable, net 127,230 131,691
Income taxes receivable 60,564 54,178
Deferred income taxes 101,730 84,682
Prepaid expenses and other current assets 45,457 54,854
Current assets of discontinued operations - 8,515
---------- ----------
Current assets before funds held for
customers 1,162,814 1,637,591
Funds held for customers 610,748 314,341
---------- ----------
Total current assets 1,773,562 1,951,932
Long-term investments 288,310 -
Property and equipment, net 507,499 298,396
Goodwill 1,698,087 1,517,036
Purchased intangible assets, net 273,087 292,884
Long-term deferred income taxes 52,491 72,066
Other assets 73,548 67,501
Long-term assets of discontinued operations - 52,211
---------- ----------
Total assets $4,666,584 $4,252,026
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 115,198 $ 119,799
Accrued compensation and related liabilities 229,819 192,286
Deferred revenue 359,936 313,753
Income taxes payable 16,211 33,278
Other current liabilities 135,326 171,650
Current liabilities of discontinued
operations - 15,002
---------- ----------
Current liabilities before customer fund
deposits 856,490 845,768
Customer fund deposits 610,748 314,341
---------- ----------
Total current liabilities 1,467,238 1,160,109
Long-term debt 997,996 997,819
Other long-term obligations 121,489 57,756
---------- ----------
Total liabilities 2,586,723 2,215,684
---------- ----------
Minority interest 6,907 1,329
Stockholders' equity 2,072,954 2,035,013
---------- ----------
Total liabilities and stockholders' equity $4,666,584 $4,252,026
========== ==========
Table D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
--------------------- ------------------------
July 31, July 31, July 31, July 31,
2008 2007 2008 2007
---------- ---------- ----------- ------------
Cash flows from
operating activities:
Net income (loss) $ (61,860) $ (13,640) $ 476,762 $ 440,003
Net loss from
discontinued
operations - - 755 1,140
---------- ---------- ----------- ------------
Net income (loss)
from continuing
operations (61,860) (13,640) 477,517 441,143
Adjustments to
reconcile net income
(loss) from
continuing
operations to net
cash provided by
(used in) operating
activities:
Depreciation 31,030 25,609 116,572 94,175
Amortization 28,265 24,055 99,891 64,353
Share-based
compensation 26,956 18,558 113,284 77,314
Net gains on
marketable equity
securities and
other investments (227) - (1,417) (1,568)
Gain on sale of
outsourced
payroll assets - (31,270) (51,571) (31,676)
Gain on sale of
Intuit
Distribution
Management
Solutions - - (45,667) -
Deferred income
taxes 41,408 (27,425) 60,550 (39,200)
Tax benefit from
share-based
compensation
plans 10,135 23,972 38,226 56,081
Excess tax benefit
from share-based
compensation
plans (2,979) (12,682) (20,764) (30,913)
Other 5,311 2,144 13,612 6,212
---------- ---------- ----------- ------------
Subtotal 78,039 9,321 800,233 635,921
---------- ---------- ----------- ------------
Changes in
operating assets
and liabilities:
Accounts
receivable 97,825 53,076 11,427 (3,913)
Prepaid
expenses,
income taxes
and other
current assets (54,923) (43,083) (14,360) 1,600
Accounts
payable (28,212) (6,887) (17,504) 18,574
Accrued
compensation
and related
liabilities 50,082 43,677 28,508 3,641
Deferred
revenue 80,418 77,136 47,472 23,250
Income taxes
payable (198,190) (158,949) (15,147) (1,202)
Other
liabilities (64,342) (62,196) (10,439) 48,889
---------- ---------- ----------- ------------
Total
changes in
operating
assets and
liabilities (117,342) (97,226) 29,957 90,839
---------- ---------- ----------- ------------
Net cash
provided by
(used in)
operating
activities (39,303) (87,905) 830,190 726,760
---------- ---------- ----------- ------------
Cash flows from
investing activities:
Purchases of
available-for-sale
debt securities (195,344) (488,337) (934,335) (2,466,642)
Liquidation of
available-for-sale
debt securities 176,562 557,670 1,045,321 1,997,825
Maturities of
available-for-sale
debt securities 35,800 75,885 236,895 528,647
Net change in funds
held for customers'
money market funds
and other cash
equivalents (252,747) (149,455) (290,462) (51,242)
Purchases of property
and equipment (88,873) (63,949) (306,127) (153,257)
Net change in
customer fund
deposits 252,747 55,255 290,462 (42,958)
Acquisitions of
businesses and
intangible assets,
net of cash acquired (1,686) (2,515) (264,525) (1,271,791)
Cash received from
acquirer of
outsourced payroll
assets 4 10,588 34,883 54,900
Proceeds from
divestiture of
businesses - - 97,147 -
Other 6,022 (578) 4,691 (7,958)
---------- ---------- ----------- ------------
Net cash used in
investing
activities of
continuing
operations (67,515) (5,436) (86,050) (1,412,476)
Net cash provided
by (used in)
investing
activities of
discontinued
operations - (1,140) (755) 19,849
---------- ---------- ----------- ------------
Net cash used in
investing
activities (67,515) (6,576) (86,805) (1,392,627)
---------- ---------- ----------- ------------
Cash flows from
financing activities:
Proceeds from bridge
credit facility - - - 1,000,000
Retirement of bridge
credit facility - - - (1,000,000)
Issuance of long-term
debt, net of
discounts - - - 997,755
Net proceeds from
issuance of common
stock under stock
plans 47,715 60,442 194,661 211,370
Purchase of treasury
stock - - (799,998) (506,751)
Excess tax benefit
from share-based
compensation plans 2,979 12,682 20,764 30,913
Issuance of
restricted stock
units pursuant to
Management Stock
Purchase Plan - - 2,284 -
Other (1,148) 8,195 (4,220) 573
---------- ---------- ----------- ------------
Net cash provided
by (used in)
financing
activities 49,546 81,319 (586,509) 733,860
---------- ---------- ----------- ------------
Effect of exchange
rates on cash and cash
equivalents (892) 3,790 1,263 7,607
---------- ---------- ----------- ------------
Net increase (decrease)
in cash and cash
equivalents (58,164) (9,372) 158,139 75,600
Cash and cash
equivalents at
beginning of period 471,504 264,573 255,201 179,601
---------- ---------- ----------- ------------
Cash and cash
equivalents at end of
period $ 413,340 $ 255,201 $ 413,340 $ 255,201
========== ========== =========== ============
Table E
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
----------------------- -----------------------
From To Adjustments From To
----------------------- ------------ -----------------------
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 August 21, 2008