Form: 8-K

Current report filing

August 18, 2004

 

Exhibit 99.01

         
Contacts:
  Investors   Media
  Jessica Kourakos   Allison Green
  Intuit Inc.   Intuit Inc.
  (650) 944-5401   (650) 944-2512
  Jessica_Kourakos@intuit.com   Allison_green@intuit.com

Intuit Fiscal ‘04 Revenue Grows 13 Percent to Record $1.9 Billion

Fourth-Quarter Revenue Also Rises 13 Percent

MOUNTAIN VIEW, Calif. – Aug. 18, 2004 – Intuit Inc. (Nasdaq: INTU) today announced results for its fourth quarter and fiscal 2004, which ended July 31, 2004.

      “Intuit again delivered solid growth for the quarter and year,” said Steve Bennett, Intuit’s president and chief executive officer. “TurboTax and Small Business Products and Services – our two largest segments – had particularly strong years. Looking ahead, we expect our portfolio to deliver steady revenue and strong profit growth.”

Fiscal 2004 Financial Highlights

•   Revenue of $1.87 billion increased 13 percent from fiscal 2003. Growth was driven by solid performance in Intuit’s TurboTax and Small Business Products and Services segments.

•   Intuit’s pro forma net income of $335.1 million increased 14 percent from fiscal 2003. Pro forma diluted earnings per share of $1.67 grew 20 percent over the year-ago period.

•   On a GAAP (Generally Accepted Accounting Principles) basis, Intuit had net income of $317.0 million, down 8 percent from $343.0 million in fiscal 2003. This represents $1.58 per diluted share versus $1.63 per diluted share in fiscal 2003, a decrease of 3 percent. Last year’s GAAP results benefited from a $71.0 million after-tax gain on the sale of Intuit’s Japanese subsidiary.

Fiscal 2004 Business Segment Revenue Growth

•   QuickBooks revenue grew 12 percent over fiscal 2003 to $272.6 million.

•   Small Business Products and Services revenue increased 20 percent over fiscal 2003 to $544.6 million. This unit includes payroll, supplies, technical support and information technology solutions.

 


 

•   TurboTax revenue grew 16 percent over the prior-year period to $490.0 million.

•   Professional Accounting Solutions revenue increased 3 percent over fiscal 2003 to $251.9 million.

•   Vertical Business Management Solutions revenue grew 15 percent over the prior-year period to $109.1 million.

•   Revenue from Other Businesses, which includes Quicken and Canada, was up 4 percent year-over-year to $199.5 million.

Fourth-Quarter 2004 Highlights

•   Revenue of $275.9 million increased 13 percent from the year-ago quarter. Growth was primarily driven by strong performance in Intuit’s Small Business Products and Services segment.

•   Intuit had a pro forma net loss of $11.4 million versus a pro forma net loss of $10.7 million in the year-ago quarter. Intuit typically posts a seasonal loss in its fourth quarter when it has little revenue from its tax businesses but expenses remain constant. The fourth-quarter pro forma diluted loss per share was $0.06 versus a loss of $0.05 in the fourth quarter of fiscal 2003, reflecting a lower share count in the fourth quarter 2004.

•   On a GAAP basis, Intuit had a net loss of $42.1 million versus a loss of $24.7 million in the year-ago quarter. This represents a loss of $0.22 per diluted share versus a loss of $0.12 in the fourth quarter of fiscal 2003. The fourth-quarter 2004 GAAP results included a goodwill impairment charge of $18.7 million, or $0.10 per diluted share, for its public sector business management solutions business.

Intuit to Sell Public Sector Solutions Business

     Intuit said it has decided to sell its public sector business management solutions business. “Intuit is very rigorous about managing our portfolio so that we’re always focused on the right growth opportunities,” said Bennett. “Over the past several years, we’ve made a number of changes to our portfolio – acquiring or developing businesses that fit our growth criteria and exiting those that don’t. A combination of industry dynamics, our competitive position and our other opportunities make this the right decision for Intuit. We like our other verticals businesses and are pleased with the solid revenue and profit growth they’re delivering.”

 


 

     Intuit Public Sector Solutions (IPSS) contributed $13 million in revenue in fiscal 2004. Without the business, Intuit’s verticals portfolio had 17 percent revenue growth in fiscal 2004.

     While IPSS performance is included in the results Intuit reported today and will be included in its upcoming Form 10-K, it will be treated as a discontinued business in future financial filings, as required. As a result, Intuit did not include past or future results from the IPSS business when it developed pro forma first-quarter and fiscal year 2005 guidance, but have included it in GAAP EPS guidance.

Forward-Looking Guidance for Fiscal 2005

     Intuit provided more detail on its financial guidance for fiscal 2005, which will end July 31, 2005:

•   Revenue of $1.97 billion to $2.02 billion, or year-over-year growth of approximately 6 percent to 9 percent.

•   Pro forma operating income of $535 million to $559 million, or growth of approximately 12 percent to 17 percent over fiscal 2004. On a GAAP basis, operating income is expected to be $503 million to $527 million, or growth of approximately 14 percent to 20 percent over fiscal 2004 excluding IPSS.

•   Pro forma diluted earnings per share of $1.93 to $2.01, or growth of approximately 15 percent to 20 percent over fiscal 2004. On a GAAP basis, including IPSS, diluted EPS is expected to be $1.82 to $1.90, up approximately 15 percent to 20 percent from fiscal 2004.

Forward-Looking Guidance for First-Quarter 2005

     Although financial analysts have developed their own estimates for Intuit’s first-quarter 2005, Intuit has not previously issued guidance for the quarter. Intuit’s expected results for the first quarter of fiscal 2005, which will end October 31, 2004, are:

•   Revenue of $251 million to $263 million, or year-over-year growth of 5 percent to 10 percent.

•   A pro forma operating loss of $85 million to $75 million and a GAAP operating loss of $93 million to $83 million. Intuit typically posts a seasonal loss in its first quarter when it has little revenue from its tax businesses but expenses remain constant.

 


 

•   A pro forma net loss per diluted share of $0.29 to $0.25 and a GAAP net loss per diluted share of $0.32 to $0.28, including IPSS.

Conference Call Scripts, Webcast and Conference Call Information

     The script that accompanies Intuit’s conference call and a live audio webcast of the call is available at http://www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. (PDT). The replay of the audio webcast will remain on Intuit’s Web site for one week after the conference call. This press release, including the tables, is available at that site and any other supplemental financial and statistical information required to be posted, including pro forma reconciliations, will be posted to that site.

     The conference call number is (888) 243-0813 in the United States and (703) 925-2400 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 in the United States and (703) 925-2533 from international locations. The access code is 520520.

Intuit, the Intuit logo, Quicken, QuickBooks, and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

About pro forma, or non-GAAP, financial measures

Intuit’s management believes that the pro forma financial measures it uses provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these pro forma financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year.

Intuit computes its pro forma, or non-GAAP, financial measures using the same consistent method from quarter to quarter and year to year. Pro forma operating income excludes acquisition-related charges, such as amortization of intangibles and impairment charges, as well as amortization of purchased software and charges for purchased research and development. Pro forma net income and diluted earnings per share exclude discontinued operations, gains and losses on marketable securities and other investments, as well as the tax effects of these transactions. These pro forma financial measures are not prepared in accordance with generally accepted accounting principles and likely are different from non-GAAP or pro forma financial measures used by other companies. The accompanying tables and fact sheet have more details on Intuit’s historical performance and financial projections, the GAAP financial measures that are

 


 

most directly comparable to Intuit’s pro forma financial measures, and the reconciliation of pro forma financial measures to GAAP.

Cautions About Forward-Looking Statements

This press release contains forward-looking statements, including forecasts of our expected financial results. Mr. Bennett’s statement regarding our expectations for delivering steady revenue and strong profit growth and all of the statements under the headings “Forward-Looking Guidance for Fiscal 2005,” and “Forward-Looking Guidance for First Quarter Fiscal 2005” are forward-looking statements. A number of risks and uncertainties may cause our actual results to differ materially from our expressed expectations. Some of the important factors that could cause our results to differ include the following: product introductions and price competition from our competitors, including competition from Microsoft in our software businesses and governmental encroachment in our tax businesses, can have unpredictable negative effects on our revenue, profitability and market position; we are implementing new information systems and problems with the design or implementation of these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; revenue growth for some of our products is slowing and we must successfully introduce new products and services to meet our growth and profitability objectives; our new product offerings may not succeed or they may negatively impact our profitability if customers elect to purchase lower-priced simplified offerings; our revenue and earnings are highly seasonal and may cause significant quarterly fluctuations in our financial results; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2003 and in subsequent Form 10-Q, and other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. We do not undertake any duty to update the information in this press release except as otherwise required by law.

 


 

Table A1
INTUIT INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

                                 
    Three Months Ended   Twelve Months Ended
    July 31,
  July 31,
    2003
  2004
  2003
  2004
Net revenue:
                               
Product
  $ 158,821     $ 175,301     $ 1,129,839     $ 1,220,084  
Service
    67,088       79,322       451,652       575,959  
Other
    19,188       21,270       69,252       71,620  
 
   
 
     
 
     
 
     
 
 
Total net revenue
    245,097       275,893       1,650,743       1,867,663  
 
   
 
     
 
     
 
     
 
 
Costs and expenses:
                               
Cost of revenue:
                               
Cost of product revenue
    28,003       27,112       173,800       172,059  
Cost of service revenue
    36,334       40,819       149,538       162,176  
Cost of other revenue
    5,224       7,701       20,626       27,362  
Amortization of purchased software [B]
    3,639       3,421       13,796       13,456  
Customer service and technical support
    37,684       42,020       178,949       195,073  
Selling and marketing
    68,664       73,837       324,389       369,136  
Research and development
    63,612       65,298       255,821       281,129  
General and administrative
    36,591       47,040       148,855       183,080  
Charge for purchased research and development [C]
    —       —       8,859       —  
Charge (credit) for vacant facilities
    (1,069 )     729       (1,069 )     729  
Acquisition-related charges [D]
    6,932       23,916       33,947       43,136  
 
   
 
     
 
     
 
     
 
 
Total costs and expenses
    285,614       331,893       1,307,511       1,447,336  
 
   
 
     
 
     
 
     
 
 
Income (loss) from continuing operations
    (40,517 )     (56,000 )     343,232       420,327  
Interest and other income
    13,945       11,410       38,694       30,844  
Gains on marketable securities and other investments, net
    818       1,385       10,912       1,729  
 
   
 
     
 
     
 
     
 
 
Income (loss) from continuing operations before income taxes
    (25,754 )     (43,205 )     392,838       452,900  
Income tax (benefit) provision [E]
    (1,066 )     (1,101 )     129,636       135,870  
 
   
 
     
 
     
 
     
 
 
Net income (loss) from continuing operations
    (24,688 )     (42,104 )     263,202       317,030  
Discontinued operations, net of income taxes:
                               
Gain on disposal of Quicken Loans discontinued operations [F]
    —       —       5,556       —  
Net income from Intuit KK discontinued operations [G]
    —       —       3,267       —  
Gain on disposal of Intuit KK discontinued operations [G]
    —       —       71,009       —  
 
   
 
     
 
     
 
     
 
 
Net income from discontinued operations
    —       —       79,832       —  
 
   
 
     
 
     
 
     
 
 
Net income (loss)
  $ (24,688 )   $ (42,104 )   $ 343,034     $ 317,030  
 
   
 
     
 
     
 
     
 
 
Basic net income (loss) per share from continuing operations
  $ (0.12 )   $ (0.22 )   $ 1.28     $ 1.62  
Basic net income per share from discontinued operations
    —       —       0.39       —  
 
   
 
     
 
     
 
     
 
 
Basic net income (loss) per share
  $ (0.12 )   $ (0.22 )   $ 1.67     $ 1.62  
 
   
 
     
 
     
 
     
 
 
Shares used in basic per share amounts
    201,819       190,893       205,294       195,455  
 
   
 
     
 
     
 
     
 
 
Diluted net income (loss) per share from continuing operations
  $ (0.12 )   $ (0.22 )   $ 1.25     $ 1.58  
Diluted net income per share from discontinued operations
    —       —       0.38       —  
 
   
 
     
 
     
 
     
 
 
Diluted net income (loss) per share
  $ (0.12 )   $ (0.22 )   $ 1.63     $ 1.58  
 
   
 
     
 
     
 
     
 
 
Shares used in diluted per share amounts
    201,819       190,893       210,955       200,081  
 
   
 
     
 
     
 
     
 
 

See accompanying Notes.

 


 

Table A2
INTUIT INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

                                 
    Three Months Ended   Twelve Months Ended
    July 31,
  July 31,
    2003
  2004
  2003
  2004
Net revenue:
                               
Product
  $ 158,821     $ 175,301     $ 1,129,839     $ 1,220,084  
Service
    67,088       79,322       451,652       575,959  
Other
    19,188       21,270       69,252       71,620  
 
   
 
     
 
     
 
     
 
 
Total net revenue
    245,097       275,893       1,650,743       1,867,663  
 
   
 
     
 
     
 
     
 
 
Costs and expenses:
                               
Cost of revenue:
                               
Cost of product revenue
    28,003       27,112       173,800       172,059  
Cost of service revenue
    36,334       40,819       149,538       162,176  
Cost of other revenue
    5,224       7,701       20,626       27,362  
Customer service and technical support
    37,684       42,020       178,949       195,073  
Selling and marketing
    68,664       73,837       324,389       369,136  
Research and development
    63,612       65,298       255,821       281,129  
General and administrative
    36,591       47,040       148,855       183,080  
Charge (credit) for vacant facilities
    (1,069 )     729       (1,069 )     729  
 
   
 
     
 
     
 
     
 
 
Total costs and expenses
    275,043       304,556       1,250,909       1,390,744  
 
   
 
     
 
     
 
     
 
 
Income (loss) from operations
    (29,946 )     (28,663 )     399,834       476,919  
Interest and other income
    13,945       11,410       38,694       30,844  
 
   
 
     
 
     
 
     
 
 
Income (loss) before income taxes
    (16,001 )     (17,253 )     438,528       507,763  
Income tax (benefit) provision
    (5,280 )     (5,866 )     144,714       172,639  
 
   
 
     
 
     
 
     
 
 
Net income (loss)
  $ (10,721 )   $ (11,387 )   $ 293,814     $ 335,124  
 
   
 
     
 
     
 
     
 
 
Basic net income (loss) per share
  $ (0.05 )   $ (0.06 )   $ 1.43     $ 1.71  
 
   
 
     
 
     
 
     
 
 
Shares used in basic per share amounts
    201,819       190,893       205,294       195,455  
 
   
 
     
 
     
 
     
 
 
Diluted net income (loss) per share
  $ (0.05 )   $ (0.06 )   $ 1.39     $ 1.67  
 
   
 
     
 
     
 
     
 
 
Shares used in diluted per share amounts
    201,819       190,893       210,955       200,081  
 
   
 
     
 
     
 
     
 
 

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit’s management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these pro forma financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year. See Tables B1 and B2 for reconciliations of these pro forma financial measures to GAAP.

 


 

Table B1
INTUIT INC.
RECONCILIATION OF PRO FORMA FINANCIAL MEASURES
TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [A]-[G]
(In thousands, except per share amounts)
(Unaudited)

                                                 
    Three Months Ended   Three Months Ended
    July 31, 2003
  July 31, 2004
    Pro                   Pro        
    Forma
  Adjmts
[A]

  GAAP
  Forma
  Adjmts
[A]

  GAAP
Net revenue:
                                               
Product
  $ 158,821     $ —     $ 158,821     $ 175,301     $ —     $ 175,301  
Service
    67,088       —       67,088       79,322       —       79,322  
Other
    19,188       —       19,188       21,270       —       21,270  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Total net revenue
    245,097       —       245,097       275,893       —       275,893  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Costs and expenses:
                                               
Cost of revenue:
                                               
Cost of product revenue
    28,003       —       28,003       27,112       —       27,112  
Cost of service revenue
    36,334       —       36,334       40,819       —       40,819  
Cost of other revenue
    5,224       —       5,224       7,701       —       7,701  
Amortization of purchased software
    —       3,639 [B]     3,639       —       3,421 [B]     3,421  
Customer service and technical support
    37,684       —       37,684       42,020       —       42,020  
Selling and marketing
    68,664       —       68,664       73,837       —       73,837  
Research and development
    63,612       —       63,612       65,298       —       65,298  
General and administrative
    36,591       —       36,591       47,040       —       47,040  
Charge for purchased research and development
    —       —       —       —       —       —  
Charge (credit) for vacant facilities
    (1,069 )     —       (1,069 )     729       —       729  
Acquisition-related charges
    —       6,932 [D]     6,932       —       23,916 [D]     23,916  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Total costs and expenses
    275,043       10,571       285,614       304,556       27,337       331,893  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Income (loss) from continuing operations
    (29,946 )     (10,571 )     (40,517 )     (28,663 )     (27,337 )     (56,000 )
Interest and other income
    13,945       —       13,945       11,410       —       11,410  
Gains on marketable securities and other investments, net
    —       818       818       —       1,385       1,385  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Income (loss) from continuing operations before income taxes
    (16,001 )     (9,753 )     (25,754 )     (17,253 )     (25,952 )     (43,205 )
Income tax (benefit) provision
    (5,280 )     4,214       (1,066 )     (5,866 )     4,765       (1,101 )
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Net income (loss) from continuing operations
    (10,721 )     (13,967 )     (24,688 )     (11,387 )     (30,717 )     (42,104 )
Discontinued operations, net of income taxes:
                                               
Gain on disposal of Quicken Loans discontinued operations
    —       —       —       —       —       —  
Net income from Intuit KK discontinued operations
    —       —       —       —       —       —  
Gain on disposal of Intuit KK discontinued operations
    —       —       —       —       —       —  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Net income from discontinued operations
    —       —       —       —       —       —  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Net income (loss)
  $ (10,721 )   $ (13,967 )   $ (24,688 )   $ (11,387 )   $ (30,717 )   $ (42,104 )
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Basic net income (loss) per share from continuing operations
  $ (0.05 )           $ (0.12 )   $ (0.06 )           $ (0.22 )
Basic net income per share from discontinued operations
    —               —       —               —  
 
   
 
             
 
     
 
             
 
 
Basic net income (loss) per share
  $ (0.05 )           $ (0.12 )   $ (0.06 )           $ (0.22 )
 
   
 
             
 
     
 
             
 
 
Shares used in basic per share amounts
    201,819               201,819       190,893               190,893  
 
   
 
             
 
     
 
             
 
 
Diluted net income (loss) per share from continuing operations
  $ (0.05 )           $ (0.12 )   $ (0.06 )           $ (0.22 )
Diluted net income per share from discontinued operations
    —               —       —               —  
 
   
 
             
 
     
 
             
 
 
Diluted net income (loss) per share
  $ (0.05 )           $ (0.12 )   $ (0.06 )           $ (0.22 )
 
   
 
             
 
     
 
             
 
 
Shares used in diluted per share amounts
    201,819               201,819       190,893               190,893  
 
   
 
             
 
     
 
             
 
 

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit’s management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these pro forma financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year. See Notes [A] through [G] for details.

 


 

Table B2
INTUIT INC.
RECONCILIATION OF PRO FORMA FINANCIAL MEASURES
TO GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [A]-[G]
(In thousands, except per share amounts)
(Unaudited)

                                                 
    Twelve Months Ended   Twelve Months Ended
    July 31, 2003
  July 31, 2004
    Pro                   Pro        
    Forma
  Adjmts
[A]

  GAAP
  Forma
  Adjmts
[A]

  GAAP
Net revenue:
                                               
Product
  $ 1,129,839     $ —     $ 1,129,839     $ 1,220,084     $ —     $ 1,220,084  
Service
    451,652       —       451,652       575,959       —       575,959  
Other
    69,252       —       69,252       71,620       —       71,620  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Total net revenue
    1,650,743       —       1,650,743       1,867,663       —       1,867,663  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Costs and expenses:
                                               
Cost of revenue:
                                               
Cost of product revenue
    173,800       —       173,800       172,059       —       172,059  
Cost of service revenue
    149,538       —       149,538       162,176       —       162,176  
Cost of other revenue
    20,626       —       20,626       27,362       —       27,362  
Amortization of purchased software
    —       13,796 [B]     13,796       —       13,456 [B]     13,456  
Customer service and technical support
    178,949       —       178,949       195,073       —       195,073  
Selling and marketing
    324,389       —       324,389       369,136       —       369,136  
Research and development
    255,821       —       255,821       281,129       —       281,129  
General and administrative
    148,855       —       148,855       183,080       —       183,080  
Charge for purchased research and development
    —       8,859 [C]     8,859       —       —       —  
Charge (credit) for vacant facilities
    (1,069 )     —       (1,069 )     729       —       729  
Acquisition-related charges
    —       33,947 [D]     33,947       —       43,136 [D]     43,136  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Total costs and expenses
    1,250,909       56,602       1,307,511       1,390,744       56,592       1,447,336  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Income (loss) from continuing operations
    399,834       (56,602 )     343,232       476,919       (56,592 )     420,327  
Interest and other income
    38,694       —       38,694       30,844       —       30,844  
Gains on marketable securities and other investments, net
    —       10,912       10,912       —       1,729       1,729  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Income (loss) from continuing operations before income taxes
    438,528       (45,690 )     392,838       507,763       (54,863 )     452,900  
Income tax (benefit) provision
    144,714       (15,078 )     129,636       172,639       (36,769 )     135,870  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Net income (loss) from continuing operations
    293,814       (30,612 )     263,202       335,124       (18,094 )     317,030  
Discontinued operations, net of income taxes:
                                               
Gain on disposal of Quicken Loans discontinued operations
    —       5,556 [F]     5,556       —       —       —  
Net income from Intuit KK discontinued operations
    —       3,267 [G]     3,267       —       —       —  
Gain on disposal of Intuit KK discontinued operations
    —       71,009 [G]     71,009       —       —       —  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Net income from discontinued operations
    —       79,832       79,832       —       —       —  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Net income (loss)
  $ 293,814     $ 49,220     $ 343,034     $ 335,124     $ (18,094 )   $ 317,030  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Basic net income (loss) per share from continuing operations
  $ 1.43             $ 1.28     $ 1.71             $ 1.62  
Basic net income per share from discontinued operations
    —               0.39       —               —  
 
   
 
             
 
     
 
             
 
 
Basic net income (loss) per share
  $ 1.43             $ 1.67     $ 1.71             $ 1.62  
 
   
 
             
 
     
 
             
 
 
Shares used in basic per share amounts
    205,294               205,294       195,455               195,455  
 
   
 
             
 
     
 
             
 
 
Diluted net income (loss) per share from continuing operations
  $ 1.39             $ 1.25     $ 1.67             $ 1.58  
Diluted net income per share from discontinued operations
    —               0.38       —               —  
 
   
 
             
 
     
 
             
 
 
Diluted net income (loss) per share
  $ 1.39             $ 1.63     $ 1.67             $ 1.58  
 
   
 
             
 
     
 
             
 
 
Shares used in diluted per share amounts
    210,955               210,955       200,081               200,081  
 
   
 
             
 
     
 
             
 
 

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit’s management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these pro forma financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year. See Notes [A] through [G] for details.

 


 

INTUIT INC.
NOTES TO TABLES A1, B1 AND B2


[A]   Tables B1 and B2 reconcile the differences between the pro forma or non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles (“GAAP”), and the GAAP condensed consolidated statements of operations for the three and twelve months ended July 31, 2003 and 2004. Pro forma operating income (loss) excludes certain cost and expense line items that are in the GAAP statement of operations. For example, for the line item “acquisition-related charges,” the number in the GAAP column is subtracted out of the pro forma column in calculating pro forma operating income or loss. Eliminating cost or expense items improves pro forma results compared to GAAP results. Pro forma net income (loss) starts with pro forma operating income or loss and then excludes certain non-operating gains and losses that are in the GAAP statement of operations. For example, for the line item “gains on marketable securities and other investments, net” the number in the GAAP column is taken out of the pro forma column in calculating pro forma net income or loss. Eliminating loss line items improves pro forma results compared to GAAP results. Eliminating gain line items decreases pro forma results compared to GAAP results.
 
[B]   We amortize the value of software and other technology assets that we receive in connection with certain acquisitions over their estimated useful lives.
 
[C]   In connection with certain acquisitions we determine the value of in-process projects under development for which technological feasibility has not been established. The value of each project is recorded as a charge for purchased research and development at the time of the acquisition. In the twelve months ended July 31, 2003, we recorded charges for purchased research and development totaling $8.9 million, primarily in connection with our acquisition of Blue Ocean Software, Inc. (now Intuit Information Technology Solutions).
 
[D]   Acquisition-related charges include amortization of purchased intangible assets and deferred compensation related to acquisitions as well as impairment charges. For the three and twelve months ended July 31, 2003, amortization of purchased intangible assets and deferred compensation was $6.9 million and $33.9 million and there were no impairment charges. For the three and twelve months ended July 31, 2004, amortization of purchased intangible assets and deferred compensation was $5.2 million and $24.4 million and there were impairment charges of $18.7 million.
 
[E]   Our effective tax rate for the three months ended July 31, 2003 differed from the federal statutory rate primarily due to the net effect of the benefit received from tax exempt interest income and various tax credits offset by state taxes. Our effective tax rate for the twelve months ended July 31, 2003 differed from the federal statutory rate primarily due to the net effect of the benefit received from tax exempt interest income and various tax credits offset by state taxes and acquisition-related charges recorded in the first quarter of fiscal 2003. Our effective tax rate for the three months ended July 31, 2004 differed from the federal statutory rate primarily due to the net effect of the benefit received from tax exempt interest income and various tax credits offset by state taxes, acquisition-related charges and deferred tax adjustments. Our effective tax rate for the twelve months ended July 31, 2004 differed from the federal statutory rate primarily due to the effect of reversals of reserves related to potential income tax exposures that have been resolved and to the factors cited for the three months ended July 31, 2004.
 
[F]   In July 2002, we sold our Quicken Loans mortgage business to Rock Acquisition Corporation and accounted for the sale as discontinued operations. In the first quarter of fiscal 2003, we sold our residual minority equity interest in Rock and recorded a gain of $5.6 million.
 
[G]   In February 2003, we sold our wholly owned Japanese subsidiary, Intuit KK, and accounted for the sale as discontinued operations. Accordingly, we have segregated the operating results of Intuit KK from continuing operations on our statement of operations for all periods prior to the sale. Revenue for Intuit KK for the three and six months ended January 31, 2003 was $16.2 million and $26.6 million. Net income before income taxes for Intuit KK for the three and six months ended January 31, 2003 was $5.3 million and $5.6 million. We recorded a gain on disposal of discontinued operations of $71.0 million, net of income taxes, in the third quarter of fiscal 2003.

 


 

Table C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

                 
    July 31,   July 31,
    2003
  2004
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 170,043     $ 27,249  
Short-term investments
    1,036,758       991,971  
Accounts receivable, net
    88,156       92,265  
Deferred income taxes
    34,824       31,473  
Prepaid expenses and other current assets
    33,082       50,542  
 
   
 
     
 
 
Current assets before funds held for payroll customers
    1,362,863       1,193,500  
Funds held for payroll customers
    306,007       323,041  
 
   
 
     
 
 
Total current assets
    1,668,870       1,516,541  
Property and equipment, net
    188,253       233,101  
Goodwill, net
    591,091       670,030  
Purchased intangible assets, net
    125,445       107,301  
Long-term deferred income taxes
    183,061       135,711  
Loans to executive officers and other employees
    19,690       15,809  
Other assets
    13,857       17,685  
 
   
 
     
 
 
Total assets
  $ 2,790,267     $ 2,696,178  
 
   
 
     
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 56,786     $ 70,443  
Accrued compensation and related liabilities
    118,678       135,047  
Deferred revenue
    178,840       223,380  
Income taxes payable
    76,725       22,159  
Other current liabilities
    59,129       83,295  
 
   
 
     
 
 
Current liabilities before payroll customer fund deposits
    490,158       534,324  
Payroll customer fund deposits
    306,007       323,041  
 
   
 
     
 
 
Total current liabilities
    796,165       857,365  
Long-term obligations
    29,265       16,394  
Stockholders’ equity
    1,964,837       1,822,419  
 
   
 
     
 
 
Total liabilities and stockholders’ equity
  $ 2,790,267     $ 2,696,178  
 
   
 
     
 
 

 


 

Table D1
INTUIT INC.
RECONCILIATION OF GUIDANCE FOR PRO FORMA FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME, AND EPS
(In thousands, except per share amounts)
(Unaudited)

                                         
    Three Months Ending October 31, 2004
    Pro Forma           GAAP
    Range of Estimate
          Range of Estimate
    From
  To
  Adjustments
    From
  To
Revenue
  $ 251,000     $ 263,000     $ —     $ 251,000     $ 263,000  
Operating loss
    (85,000 )     (75,000 )     (8,400) [a]     (93,400 )     (83,400 )
Interest and other income
    2,000       3,000       —       2,000       3,000  
Diluted loss per share
  $ (0.29 )   $ (0.25 )   $ (0.03) [b]   $ (0.32 )   $ (0.28 )
Shares
    189,000       191,000       —       189,000       191,000  
                                         
    Twelve Months Ending July 31, 2005
    Pro Forma             GAAP
    Range of Estimate
          Range of Estimate
    From
  To
  Adjustments
    From
  To
Revenue
  $ 1,966,000     $ 2,022,000     $ —     $ 1,966,000     $ 2,022,000  
Operating income
    535,000       559,000       (32,400) [c]     502,600       526,600  
Interest and other income
    17,000       20,000       —       17,000       20,000  
Diluted earnings per share
  $ 1.93     $ 2.01     $ (0.11) [d]   $ 1.82     $ 1.90  
Shares
    189,000       194,000       —       189,000       194,000  


[a]   Reflects estimated adjustments for amortization of purchased software of approximately $3.4 million and amortization of purchased intangible assets of approximately $5.0 million for the three months ending October 31, 2004.
 
[b]   Net of related income tax expense, the pro forma adjustments in item [a] result in a $0.03 per diluted share adjustment for the three months ending October 31, 2004.
 
[c]   Reflects estimated adjustments for amortization of purchased software of approximately $13.6 million and amortization of purchased intangible assets of approximately $18.8 million for the twelve months ending July 31, 2005.
 
[d]   Net of related income tax expense, the pro forma adjustments in item [c] result in a $0.11 per diluted share adjustment for the twelve months ending July 31, 2005.

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit’s management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these pro forma financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year.

The reconciliations of the forward-looking pro forma financial measures to GAAP in this Table D1 include all information reasonably available to Intuit at the date of this press release. The adjustments in this table are those that management can predict. Intuit’s pro forma financial measures exclude acquisition-related charges, discontinued operations and gains and losses on marketable securities. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable securities.

 


 

TABLE D2
INTUIT INC.
RECONCILIATION OF SUPPLEMENTAL PRO FORMA FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP MEASURES
(In thousands, except per share amounts)
(Unaudited)

                         
    Three Months Ended October 31, 2003
    Pro        
    Forma
  Adjustments
    GAAP
Revenue
  $ 242,528     $ —     $ 242,528  
Operating loss
    (80,076 )     (9,338) [a]     (89,414 )
Interest and other income
    7,490       —       7,490  
Diluted loss per share
  $ (0.24 )   $ (0.03) [b]   $ (0.27 )
Shares
    198,747       —       198,747  
                         
    Three Months Ended January 31, 2004
    Pro        
    Forma
  Adjustments
    GAAP
Revenue
  $ 636,289     $ —     $ 636,289  
Operating income
    228,714       (10,104) [c]     218,610  
Interest and other income
    7,170       —       7,170  
Diluted earnings per share
  $ 0.77     $ (0.04) [d]   $ 0.73  
Shares
    203,430       —       203,430  
                         
    Three Months Ended April 30, 2004
    Pro        
    Forma
  Adjustments
    GAAP
Revenue
  $ 712,953     $ —     $ 712,953  
Operating income
    356,944       (9,813) [e]     347,131  
Interest and other income
    4,774       —       4,774  
Diluted earnings per share
  $ 1.20     $ 0.13 [f]   $ 1.33  
Shares
    198,748       —       198,748  


[a]   Reflects adjustments for amortization of purchased software of $3.3 million and amortization of purchased intangible assets of $6.0 million for the three months ended October 31, 2003.
 
[b]   Reflects the adjustments in item [a] and an adjustment for net gains on marketable securities of $0.1 million. Net of related income tax expense, these pro forma adjustments resulted in a $0.03 per diluted share adjustment for the three months ended October 31, 2003.
 
[c]   Reflects adjustments for amortization of purchased software of $3.3 million and amortization of purchased intangible assets of $6.8 million for the three months ended January 31, 2004.
 
[d]   Reflects the adjustments in item [c] and an adjustment for net gains on marketable securities of $0.1 million. Net of related income tax expense, these pro forma adjustments resulted in a $0.04 per diluted share adjustment for the three months ended January 31, 2004.
 
[e]   Reflects adjustments for amortization of purchased software of $3.4 million and amortization of purchased intangible assets of $6.4 million for the three months ended April 30, 2004.
 
[f]   Reflects the adjustments in item [e] and an adjustment for net gains on marketable securities of $0.1 million. Net of related income tax expense, these pro forma adjustments resulted in a $0.13 per diluted share adjustment for the three months ended April 30, 2004.

The pro forma, or non-GAAP, financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These pro forma financial measures are not prepared in accordance with GAAP and likely are different from pro forma financial measures used by other companies. Intuit’s management believes that these pro forma financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these pro forma financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These pro forma financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar pro forma financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes pro forma financial measures using the same consistent method from quarter to quarter and year to year.

 


 

Intuit Facts...   Intuit Inc.
Q4 & FY04   Investor Relations (650) 944-5401
  NASDAQ: INTU

Financial Outlook

                                                 
    ACTUAL   ACTUAL   ACTUAL   ACTUAL   ACTUAL   ACTUAL
(millions)
  Q1 FY04
  Q2 FY04
  Q3 FY04
  Q4 FY04
  FY04
  FY03
QuickBooks
  $ 42.8     $ 101.3     $ 73.0     $ 55.5     $ 272.6     $ 242.8  
% of change YOY
    11 %     8 %     31 %     1 %     12 %     24 %
Small Business Products & Services
  $ 123.1     $ 145.3     $ 137.6     $ 138.5     $ 544.6     $ 454.9  
% of change YOY
    22 %     20 %     20 %     18 %     20 %     35 %
TurboTax
  $ 5.2     $ 130.0     $ 344.7     $ 10.1     $ 490.0     $ 422.9  
% of change YOY
    (15 %)     36 %     10 %     19 %     16 %     20 %
Vertical Businesses
  $ 26.3     $ 26.1     $ 27.5     $ 29.2     $ 109.1     $ 94.8  
% of change YOY
    40 %     9 %     7 %     11 %     15 %   New
Prof. Accounting Solutions
  $ 6.9     $ 156.8     $ 82.5     $ 5.7     $ 251.9     $ 243.4  
% of change YOY
    7 %     4 %     3 %     (9 %)     3 %     8 %
All Other
  $ 38.2     $ 76.8     $ 47.6     $ 36.9     $ 199.5     $ 191.9  
% of change YOY
    (9 %)     4 %     6 %     16 %     4 %     2 %
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Total Revenue
  $ 242.5     $ 636.3     $ 713.0     $ 275.9     $ 1,867.7     $ 1,650.7  
% of change YOY
    14 %     14 %     12 %     13 %     13 %     26 %
GAAP Operating Income
    ($89.4 )   $ 218.6     $ 347.1       ($56.0 )   $ 420.3     $ 343.2  
Operating Income[A]
    ($80.1 )   $ 228.7     $ 356.9       ($28.7 )   $ 476.9     $ 399.8  
% of change YOY
  NA     24 %     11 %   NA     19 %     46 %
Interest & Other Income
  $ 7.5     $ 7.2     $ 4.8     $ 11.4     $ 30.8     $ 38.7  
% of change YOY
    (15 %)     (8 %)     (42 %)     (18 %)     (20 %)     42 %
GAAP Diluted EPS
    ($0.27 )   $ 0.73     $ 1.33       ($0.22 )   $ 1.58     $ 1.63  
Diluted EPS[A] not in millions
    ($0.24 )   $ 0.77     $ 1.20       ($0.06 )   $ 1.67     $ 1.39  
% of change YOY
  NA     26 %     14 %   NA     20 %     51 %
Weighted Shares
    198.7       203.4       198.7       190.9       200.1       211  
Tax Rate[A]
    34 %     34 %     34 %     34 %     34 %     33 %


[A]   These are pro forma, or non-GAAP, financial measures. They exclude acquisition related costs, pre-tax gains and losses related to marketable securities and other investments, and other similar items. See Tables B1, B2 and D2 for further explanation and GAAP reconciliation.

Corporate Metrics

                                 
    FYE/04
  FYE/03
  Q4/04
  Q4/03
Capital Expenditure
  $ 118.1M     $ 84.7M     $ 31.9M     $ 14.1M  
Depreciation
  $ 77.6M     $ 73.8M     $ 20.3M     $ 18.7M  
Common Stock Outst.
    190.1M       199.5M       190.1M       199.5M  
Full Time Employees
    6,698       6,624       6,698       6,624  

FY04 Segment Composition

QuickBooks

Core (Basic, Pro, 5-Pack, Mac)
Premier
Point of Sale
Enterprise
Online Edition
OEM and Royalties

Small Business Products & Services

Payroll (Do It Yourself, Outsourced Payroll)
IT Solutions
QuickBooks Support Programs
Financial Supplies
Merchant Account Services

Consumer Tax (TurboTax)

ProTax

ProSeries
Lacerte

Vertical Businesses

Intuit Construction Business Solutions
Intuit Public Sector Solutions
Intuit Real Estate Solutions (MRI)
Intuit Distribution Management Solutions (Eclipse)

 


 

Intuit Facts   Intuit Inc.
    Investor Relations (650) 944-5401
    NASDAQ: INTU

Business Metrics

                                                                         
    Q4/FY02
  Q1/FY03
  Q2/FY03
  Q3/FY03
  Q4/FY03
  Q1/FY04
  Q2/FY04
  Q3/FY04
  Q4/FY04
QuickBooks
                                                                       
Basic & Pro units (thousands)
    217       195       308       285       217       163       262       312       205  
Premier units
    17       15       37       35       35       26       62       60       44  
Enterprise units
    1       1       1       1       1       1       1       1       2  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total QuickBooks units sold[C]
    235       211       346       321       253       190       325       373       251  
Average Sales Price
  $ 223     $ 217     $ 238     $ 241     $ 255     $ 256     $ 254     $ 256     $ 269  
Sell Thru Channel Mix[D]
                                                                       
% of units at retail
    64 %     65 %     56 %     56 %     49 %     64 %     54 %     50 %     60 %
% of dollars at retail
    64 %     63 %     54 %     55 %     47 %     59 %     49 %     48 %     53 %
QuickBooks Retail Share[B]
                                                                       
Unit share FYTD
    84 %     76 %     80 %     82 %     82 %     78 %     82 %     83 %     83 %
Dollar share FYTD
    89 %     83 %     87 %     89 %     89 %     85 %     89 %     90 %     90 %
Small Business Products & Services (selected)
                                                                       
Payroll Customers (thousands)
                                                                       
Do It Yourself (standard)
    675       665       681       711       739       753       776       806       807  
Premier
    26       26       25       25       24       24       23       22       21  
Branded Outsourced
    35       36       41       41       43       45       48       50       51  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Payroll Customers
    736       727       747       777       806       822       847       878       879  
Consumer Tax
                                                                       
Federal TurboTax (millions)
                                                                       
Desktop units retail
  NM   NM     2.1       2.1     NM   NM     2.4       2.3     NM
Desktop units direct
  NM   NM     1.0       0.9     NM   NM     1.2       0.5     NM
Web units paid
  NM   NM     0.3       2.1       0.1     NM     0.4       2.4     NM
Web units unpaid
  NM   NM     0.1       1.2     NM   NM     0.1       0.6     NM
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total TurboTax units[C]
  NM   NM     3.5       6.3       0.1     NM     4.1       5.8     NM
TurboTax Efile returns (millions)
  NM   NM     1.1       11.0       0.2     NM     1.3       11.6       0.1  
Sell Thru Channel Mix[D]
                                                                       
% of dollars at retail
  NM   NM     50 %     32 %   NM   NM     51 %     30 %   NM
Federal TurboTax Retail Share[B]
                                                                       
Unit share FYTD
    71 %   NM     72 %     71 %     71 %   NM     71 %     72 %     72 %
Dollar share FYTD
    81 %   NM     80 %     79 %     79 %   NM     81 %     82 %     82 %
Professional Accounting Solutions
                                                                       
Professional Accounting Tax units (thousands)
  NM   NM     89       7     NM   NM     90       7     NM
Efile returns (millions)
  NM     0.1       0.5       8.0       0.2       0.2       0.6       12.7       0.4  


    [B]Source: NPD Group NPD Techworld Monthly Retail Software Report through July 2003 for FY02 and FY03. NPD Group Monthly Retail Software report through June.
 
    [C]End-user purchases — or products customers have acquired and/or paid for at both retail and direct.
 
    [D]Estimate based on subset of retailers reporting
 
    NM: Not Meaningful

 


 

Intuit Facts   Intuit Inc.
FY05 Financial Outlook[E]   Investor Relations (650) 944-5401
    NASDAQ: INTU

Guidance (Excludes Intuit Public Sector Solutions)

                         
(millions)
  Q1 FY05 E
  FY05 E
  FY04A
Small Business
                       
QuickBooks Related
                  $ 653.9  
% of change YOY
            5%-10 %     18 %
Other Small Business
                    259.6 *
% of change YOY
            6%-12 %     14 %
Tax
                       
Consumer Tax
                  $ 490.0  
% of change YOY
            5%-10 %     16 %
Professional Tax
                  $ 251.9  
% of change YOY
            0%-5 %     3 %
Other Business
                  $ 199.5  
% of change YOY
            0%-5 %     4 %
 
   
 
     
 
     
 
 
Total Revenue
  $ 251-$263     $ 1,966 - $2,022       1854.9 *
% of change YOY
    5%-10 %     6%-9 %     13 %
Pro forma Operating Income[A]
    ($85)-($75 )   $ 535-$559     $ 476.9  
Operating Margin %
  NA     26%-28 %     25.5 %
GAAP Operating Income
    ($93)-($83 )   $ 503-$527     $ 440.9 *
Other Interest & Expense
  $ 2.0-$3.0     $ 17-$20     $ 30.8  
Pro forma EPS[A]
    ($0.29)-($0.25 )   $ 1.93-$2.01     $ 1.67  
% of change YOY
  NA     15%-20 %     20 %
GAAP EPS
    ($0.32)-($0.28 )   $ 1.82-$1.90     $ 1.58  
Basic Share Count
    189-191       185-190       195.5  
Fully Diluted Share Count
  NA     189-194       200.1  
Pro forma Tax Rate[A]
    35 %     34 %     34 %


*   FY04 revenue excludes IPSS revenue of $12.8M where noted. FY04 GAAP operating income excludes IPSS operating loss of $20.6 million. All other FY04 results include IPSS.
 
[E]   All of the information provided in the tables entitled “Detailed Guidance” that is not located under a column with a heading “FY04 A” is forward looking information. Please see the information under the caption “Cautions About Forward Looking Statements” in the pages accompanying the fact sheet for important information related to these statements. See tables D1 and D2 for GAAP reconciliation.

Segment Composition

Small Business

QuickBooks Related

      QuickBooks Software
      Financial Supplies
      Do It Yourself Payroll
      Point of Sale
      QuickBooks Support Programs
      Merchant Account Services

Other Small Business

      Outsourced Payroll
      IT Solutions
      Intuit Construction Business
      Intuit Real Estate Solutions (MRI)
      Intuit Distribution Management Solutions (Eclipse)

Tax

Consumer Tax (TurboTax)

Professional Tax

      ProSeries
      Lacerte

Other

Other Business

      Quicken
      Non-US

 


 

INTUIT INC.
NEW BUSINESS SEGMENTS

                                                                                                                         
    Q102
  Q202
  Q302
  Q402
  FY02
  Q103
  Q203
  Q303
  Q403
  FY03
  Q104
  Q204
  Q304
  Q404
  FY04
Net Revenue
                                                                                                                       
QuickBooks — Related
  $ 87.1     $ 154.0     $ 115.0     $ 104.0     $ 460.1     $ 109.5     $ 174.1     $ 133.6     $ 135.4     $ 552.6     $ 129.9     $ 201.4     $ 169.9     $ 152.7     $ 653.9  
Other Small Business
    15.8       23.3       20.3       27.6       87.0       48.9       64.8       62.9       63.3       239.9       62.3       71.3       68.3       70.5       272.4  
IPSS
    —       —       —       1.9       1.9       2.9       2.8       3.5       3.5       12.7       3.2       2.9       3.1       3.6       12.8  
Consumer Tax
    4.2       86.1       244.9       15.9       351.1       6.0       95.3       313.1       8.5       422.9       5.2       130.0       344.7       10.1       490.0  
Professional Tax
    6.7       139.2       72.3       7.5       225.7       6.5       150.4       80.3       6.2       243.4       6.9       156.8       82.5       5.7       251.9  
Other Businesses
    44.6       73.2       38.6       31.9       188.3       41.9       73.5       44.8       31.7       191.9       38.2       76.8       47.6       36.9       199.5  
Total Net Revenue
  $ 158.4     $ 475.8     $ 491.1     $ 186.9     $ 1,312.2     $ 212.8     $ 558.1     $ 634.7     $ 245.1     $ 1,650.7     $ 242.5     $ 636.3     $ 713.0     $ 275.9     $ 1,867.7  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

Note: IPSS is included in Other Small Business

                                                                                                                         
Segment Operating Income
                                                                                                                       
QuickBooks — Related
  $ 29.3     $ 82.6     $ 52.0     $ 43.9     $ 207.8     $ 37.5     $ 85.3     $ 61.4     $ 63.4     $ 247.6     $ 44.4     $ 97.1     $ 78.2     $ 69.3     $ 289.0  
Other Small Business
    (5.5 )     (4.9 )     (8.3 )     (10.9 )     (29.6 )     (6.4 )     (0.6 )     3.2       3.6       (0.2 )     (2.0 )     3.3       2.3       8.1       11.7  
IPSS
    —       —       —       —       —       (0.1 )     (0.6 )     (0.4 )     —       (1.1 )     (0.4 )     (0.4 )     (0.1 )     0.3       (0.6 )
Consumer Tax
    (16.3 )     22.1       209.4       2.8       218.0       (15.0 )     30.2       265.3       (8.9 )     271.6       (21.9 )     62.4       290.0       (10.2 )     320.3  
Professional Tax
    (16.4 )     107.0       48.2       (16.9 )     121.9       (16.7 )     118.6       55.6       (16.1 )     141.4       (19.1 )     119.2       57.6       (19.2 )     138.5  
Other Businesses
    4.3       25.7       (1.4 )     9.9       38.5       5.1       32.4       13.7       6.6       57.8       4.8       35.5       15.5       10.2       66.0  
Total Segment Operating Income
  $ (4.6 )   $ 232.5     $ 299.9     $ 28.8     $ 556.6     $ 4.5     $ 265.9     $ 399.2     $ 48.6     $ 718.2     $ 6.2     $ 317.5     $ 443.6     $ 58.2     $ 825.5  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

Note: IPSS is included in Other Small Business