EXHIBIT 99.01
Published on June 14, 2005
EXHIBIT 99.01
Intuit Non-GAAP Statement of Operations
(excluding ITS)
| In millions, except per share amounts Unaudited |
Actual | Actual | Actual | Actual | Actual | Actual | Actual | Actual | Forecast | Forecast | |||||||||||||||||||||||||||||||||||
| Q104 | Q204 | Q304 | Q404 | FY04 | Q105 | Q205 | Q305 | Q405 | FY05 | ||||||||||||||||||||||||||||||||||||
Revenue |
|||||||||||||||||||||||||||||||||||||||||||||
QuickBooks Related |
$ | 129.9 | $ | 201.4 | $ | 169.9 | $ | 152.7 | $ | 653.9 | $ | 145.6 | $ | 222.3 | $ | 196.6 | |||||||||||||||||||||||||||||
Consumer Tax (CTG) |
5.2 | 130.0 | 344.7 | 10.1 | 490.0 | 5.0 | 141.1 | 419.0 | |||||||||||||||||||||||||||||||||||||
Professional Tax |
6.9 | 156.8 | 82.5 | 5.7 | 251.9 | 7.4 | 150.6 | 99.8 | |||||||||||||||||||||||||||||||||||||
Intuit Branded Small Business |
47.0 | 55.6 | 51.7 | 52.6 | 206.9 | 53.5 | 60.7 | 56.4 | |||||||||||||||||||||||||||||||||||||
Other Businesses |
38.2 | 76.8 | 47.6 | 36.9 | 199.5 | 41.2 | 73.5 | 63.1 | |||||||||||||||||||||||||||||||||||||
Total Revenue |
$ | 227.2 | $ | 620.6 | $ | 696.4 | $ | 258.0 | $ | 1,802.2 | $ | 252.8 | $ | 648.2 | $ | 834.9 | $270-$285 | $ | 2,005 - $2,020 | ||||||||||||||||||||||||||
Revenue Growth |
|||||||||||||||||||||||||||||||||||||||||||||
QuickBooks Related |
18 | % | 10%-14 | % | |||||||||||||||||||||||||||||||||||||||||
Consumer Tax (CTG) |
16 | % | 15%-16 | % | |||||||||||||||||||||||||||||||||||||||||
Professional Tax |
3 | % | 4%-5 | % | |||||||||||||||||||||||||||||||||||||||||
Intuit Branded Small Business |
11 | % | 6%-12 | % | |||||||||||||||||||||||||||||||||||||||||
Other Businesses |
4 | % | 5%-10 | % | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP Income Statement |
|||||||||||||||||||||||||||||||||||||||||||||
Total Revenue |
227.2 | 620.6 | 696.4 | 258.0 | 1,802.2 | 252.8 | 648.2 | 834.9 | |||||||||||||||||||||||||||||||||||||
Revenue Growth |
13 | % | 11%-12 | % | |||||||||||||||||||||||||||||||||||||||||
Total Cost of Revenue |
72.7 | 113.1 | 94.3 | 73.0 | 353.0 | 75.4 | 116.4 | 102.0 | |||||||||||||||||||||||||||||||||||||
Selling and Marketing |
127.1 | 165.2 | 138.5 | 110.5 | 541.4 | 128.5 | 173.5 | 158.0 | |||||||||||||||||||||||||||||||||||||
Research and Development |
70.1 | 72.1 | 69.9 | 64.0 | 276.0 | 74.4 | 76.9 | 78.4 | |||||||||||||||||||||||||||||||||||||
General and Administrative |
42.2 | 46.8 | 43.1 | 46.5 | 178.7 | 49.6 | 56.4 | 67.7 | |||||||||||||||||||||||||||||||||||||
Operating Expenses |
239.5 | 284.2 | 251.4 | 221.1 | 996.1 | 252.6 | 306.8 | 304.2 | |||||||||||||||||||||||||||||||||||||
Total Non-GAAP Expenses |
312.2 | 397.2 | 345.6 | 294.1 | 1,349.1 | 327.9 | 423.3 | 406.1 | |||||||||||||||||||||||||||||||||||||
Expense Growth |
11 | % | |||||||||||||||||||||||||||||||||||||||||||
Operating Income (Loss) |
(85.0 | ) | 223.3 | 350.8 | (36.0 | ) | 453.1 | (75.2 | ) | 225.0 | 428.7 | ($45) - ($35 | ) | $535 - $545 | |||||||||||||||||||||||||||||||
Operating Margin |
25 | % | |||||||||||||||||||||||||||||||||||||||||||
Interest Inc/Other |
7.4 | 6.8 | 4.7 | 11.4 | 30.4 | 3.9 | 3.0 | 5.7 | |||||||||||||||||||||||||||||||||||||
Pre-tax Income (Loss) |
(77.6 | ) | 230.2 | 355.5 | (24.6 | ) | 483.5 | (71.3 | ) | 228.0 | 434.4 | ||||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) |
(26.4 | ) | 78.3 | 120.9 | (8.4 | ) | 164.4 | (24.2 | ) | 77.5 | 147.7 | ||||||||||||||||||||||||||||||||||
Net Income (Loss) |
$ | (51.2 | ) | $ | 151.9 | $ | 234.6 | $ | (16.2 | ) | $ | 319.1 | $ | (47.1 | ) | $ | 150.5 | $ | 286.7 | ||||||||||||||||||||||||||
Non GAAP EPS |
(0.26 | ) | 0.75 | 1.18 | (0.09 | ) | $ | 1.59 | (0.25 | ) | 0.79 | 1.53 | ($ | 0.12) - ($0.09 | ) | $ | 1.96-$1.99 | ||||||||||||||||||||||||||||
Diluted Shares O/S |
| 203.4 | 198.7 | | 200.1 | | 190.1 | 186.9 | 189-194 | ||||||||||||||||||||||||||||||||||||
Primary Shares O/S |
198.7 | 197.7 | 194.5 | 190.9 | 195.5 | 188.3 | 186.3 | 183.4 | 180-183 | 185-190 | |||||||||||||||||||||||||||||||||||
EPS Annual Growth |
19 | % | 23% - 25 | % | |||||||||||||||||||||||||||||||||||||||||
| All amounts in this table exclude historical and forecast results for our Information Technology Solutions (ITS) business. These are non-GAAP financial measures. See the attached tables for GAAP reconciliations. |
Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2004
In thousands, except per share amounts
Unaudited
| Three Months Ended October 31, 2003 | Three Months Ended January 31, 2004 | Three Months Ended April 30, 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | GAAP | GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Results | Results | Results | Results | Results | Results | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| per | Excluding | Non-GAAP | per | Excluding | Non-GAAP | per | Excluding | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue |
$ | 239,322 | $ | 12,125 | $ | 227,197 | $ | | $ | 227,197 | $ | 633,371 | $ | 12,793 | $ | 620,578 | $ | | $ | 620,578 | $ | 709,838 | $ | 13,424 | $ | 696,414 | $ | | $ | 696,414 | ||||||||||||||||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of product, service, other revenue |
73,364 | 646 | 72,718 | | 72,718 | 113,980 | 903 | 113,077 | | 113,077 | 94,915 | 665 | 94,250 | | 94,250 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of purchased assets |
3,222 | 663 | 2,559 | (2,559 | ) | | 3,257 | 713 | 2,544 | (2,544 | ) | | 3,354 | 813 | 2,541 | (2,541 | ) | | ||||||||||||||||||||||||||||||||||||||||||
Selling and marketing |
131,775 | 4,639 | 127,136 | | 127,136 | 169,909 | 4,679 | 165,230 | | 165,230 | 143,525 | 5,048 | 138,477 | | 138,477 | |||||||||||||||||||||||||||||||||||||||||||||
Research and development |
70,634 | 537 | 70,097 | | 70,097 | 72,644 | 566 | 72,078 | | 72,078 | 70,548 | 686 | 69,862 | | 69,862 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative |
43,235 | 1,012 | 42,223 | | 42,223 | 47,688 | 841 | 46,847 | | 46,847 | 43,792 | 733 | 43,059 | | 43,059 | |||||||||||||||||||||||||||||||||||||||||||||
Charge for vacant facilities |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related charges |
5,752 | | 5,752 | (5,752 | ) | | 6,540 | 1 | 6,539 | (6,539 | ) | | 6,152 | 3 | 6,149 | (6,149 | ) | | ||||||||||||||||||||||||||||||||||||||||||
Total costs and expenses |
327,982 | 7,497 | 320,485 | (8,311 | ) | 312,174 | 414,018 | 7,703 | 406,315 | (9,083 | ) | 397,232 | 362,286 | 7,948 | 354,338 | (8,690 | ) | 345,648 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
(88,660 | ) | 4,628 | (93,288 | ) | 8,311 | (84,977 | ) | 219,353 | 5,090 | 214,263 | 9,083 | 223,346 | 347,552 | 5,476 | 342,076 | 8,690 | 350,766 | ||||||||||||||||||||||||||||||||||||||||||
Interest and other income |
7,490 | 110 | 7,380 | | 7,380 | 7,170 | 321 | 6,849 | | 6,849 | 4,767 | 42 | 4,725 | | 4,725 | |||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) on marketable securities
and other investments, net |
147 | | 147 | (147 | ) | | 90 | | 90 | (90 | ) | | 107 | | 107 | (107 | ) | | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations
before income taxes |
(81,023 | ) | 4,738 | (85,761 | ) | 8,164 | (77,597 | ) | 226,613 | 5,411 | 221,202 | 8,993 | 230,195 | 352,426 | 5,518 | 346,908 | 8,583 | 355,491 | ||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) provision |
(27,520 | ) | 1,800 | (29,320 | ) | 2,937 | (26,383 | ) | 77,092 | 2,056 | 75,036 | 3,230 | 78,266 | 88,140 | 2,097 | 86,043 | 34,824 | 120,867 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
(53,503 | ) | 2,938 | (56,441 | ) | 5,227 | (51,214 | ) | 149,521 | 3,355 | 146,166 | 5,763 | 151,929 | 264,286 | 3,421 | 260,865 | (26,241 | ) | 234,624 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations |
(462 | ) | (2,938 | ) | 2,476 | (2,476 | ) | | (455 | ) | (3,355 | ) | 2,900 | (2,900 | ) | | (253 | ) | (3,421 | ) | 3,168 | (3,168 | ) | | ||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ | (53,965 | ) | $ | | $ | (53,965 | ) | $ | 2,751 | $(51,214 | ) | $ | 149,066 | $ | | $ | 149,066 | $ | 2,863 | $151,929 | $ | 264,033 | $ | | $ | 264,033 | $ | (29,409 | ) | $ | 234,624 | ||||||||||||||||||||||||||||
Basic net income (loss) per share from
continuing operations |
$ | (0.27 | ) | $ | (0.28 | ) | $ | (0.26 | ) | $ | 0.75 | $ | 0.74 | $ | 0.77 | $ | 1.36 | $ | 1.34 | $ | 1.21 | |||||||||||||||||||||||||||||||||||||||
Basic net income (loss) per share from
discontinued operations |
| 0.01 | | | 0.01 | | | 0.02 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic net income (loss) per share |
$ | (0.27 | ) | $ | (0.27 | ) | $ | (0.26 | ) | $ | 0.75 | $ | 0.75 | $ | 0.77 | $ | 1.36 | $ | 1.36 | $ | 1.21 | |||||||||||||||||||||||||||||||||||||||
Shares used in basic per share amounts |
198,747 | 198,747 | 198,747 | 197,665 | 197,665 | 197,665 | 194,517 | 194,517 | 194,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share from
continuing operations |
$ | (0.27 | ) | $ | (0.28 | ) | $ | (0.26 | ) | $ | 0.73 | $ | 0.72 | $ | 0.75 | $ | 1.33 | $ | 1.31 | $ | 1.18 | |||||||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share from
discontinued operations |
| 0.01 | | | 0.01 | | | 0.02 | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share |
$ | (0.27 | ) | $ | (0.27 | ) | $ | (0.26 | ) | $ | 0.73 | $ | 0.73 | $ | 0.75 | $ | 1.33 | $ | 1.33 | $ | 1.18 | |||||||||||||||||||||||||||||||||||||||
Shares used in diluted per share amounts |
198,747 | 198,747 | 198,747 | 203,430 | 203,430 | 203,430 | 198,748 | 198,748 | 198,748 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating income for ITS as reported in Intuits earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.
The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.
The 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 non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuits management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuits core operating results because they exclude amounts that are not necessarily related to Intuits core operating results. Intuits management refers to these non-GAAP financial measures in assessing the performance of Intuits ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate managements internal comparisons to Intuits historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2004
In thousands, except per share amounts
Unaudited
| Three Months Ended July 31, 2004 | Twelve Months Ended July 31, 2004 | |||||||||||||||||||||||||||||||||||||||
| GAAP | GAAP | |||||||||||||||||||||||||||||||||||||||
| Results | Results | Results | Results | |||||||||||||||||||||||||||||||||||||
| per | Excluding | Non-GAAP | per | Excluding | Non-GAAP | |||||||||||||||||||||||||||||||||||
| Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | |||||||||||||||||||||||||||||||
Total net revenue |
$ | 272,329 | $ | 14,294 | $ | 258,035 | $ | | $ | 258,035 | $ | 1,854,860 | $ | 52,636 | $ | 1,802,224 | $ | | $ | 1,802,224 | ||||||||||||||||||||
Revenue growth |
13 | % | 13 | % | 13 | % | ||||||||||||||||||||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of product, service, other revenue |
74,289 | 1,303 | 72,986 | | 72,986 | 356,548 | 3,517 | 353,031 | | 353,031 | ||||||||||||||||||||||||||||||
Amortization of purchased assets |
3,354 | 812 | 2,542 | (2,542 | ) | | 13,187 | 3,001 | 10,186 | (10,186 | ) | | ||||||||||||||||||||||||||||
Selling and marketing |
114,704 | 4,160 | 110,544 | | 110,544 | 559,913 | 18,526 | 541,387 | | 541,387 | ||||||||||||||||||||||||||||||
Research and development |
64,750 | 738 | 64,012 | | 64,012 | 278,576 | 2,527 | 276,049 | | 276,049 | ||||||||||||||||||||||||||||||
General and administrative |
46,815 | 1,020 | 45,795 | | 45,795 | 181,530 | 3,606 | 177,924 | | 177,924 | ||||||||||||||||||||||||||||||
Charge for vacant facilities |
729 | | 729 | | 729 | 729 | | 729 | | 729 | ||||||||||||||||||||||||||||||
Acquisition-related charges |
4,999 | 4 | 4,995 | (4,995 | ) | | 23,443 | 8 | 23,435 | (23,435 | ) | | ||||||||||||||||||||||||||||
Total costs and expenses |
309,640 | 8,037 | 301,603 | (7,537 | ) | 294,066 | 1,413,926 | 31,185 | 1,382,741 | (33,621 | ) | 1,349,120 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations |
(37,311 | ) | 6,257 | (43,568 | ) | 7,537 | (36,031 | ) | 440,934 | 21,451 | 419,483 | 33,621 | 453,104 | |||||||||||||||||||||||||||
Operating margin |
24 | % | 23 | % | 25 | % | ||||||||||||||||||||||||||||||||||
Interest and other income |
11,417 | (29 | ) | 11,446 | | 11,446 | 30,844 | 444 | 30,400 | | 30,400 | |||||||||||||||||||||||||||||
Gains (losses) on marketable securities
and other investments, net |
1,385 | | 1,385 | (1,385 | ) | | 1,729 | | 1,729 | (1,729 | ) | | ||||||||||||||||||||||||||||
Income (loss) from continuing operations
before income taxes |
(24,509 | ) | 6,228 | (30,737 | ) | 6,152 | (24,585 | ) | 473,507 | 21,895 | 451,612 | 31,892 | 483,504 | |||||||||||||||||||||||||||
Income tax (benefit) provision |
(1,102 | ) | 2,367 | (3,469 | ) | (4,890 | ) | (8,359 | ) | 136,610 | 8,320 | 128,290 | 36,101 | 164,391 | ||||||||||||||||||||||||||
Income (loss) from continuing operations |
(23,407 | ) | 3,861 | (27,268 | ) | 11,042 | (16,226 | ) | 336,897 | 13,575 | 323,322 | (4,209 | ) | 319,113 | ||||||||||||||||||||||||||
Net income (loss) from discontinued operations |
(18,697 | ) | (3,861 | ) | (14,836 | ) | 14,836 | | (19,867 | ) | (13,575 | ) | (6,292 | ) | 6,292 | | ||||||||||||||||||||||||
Net income (loss) |
$ | (42,104 | ) | $ | | $ | (42,104 | ) | $ | 25,878 | $ | (16,226 | ) | $ | 317,030 | $ | | $ | 317,030 | $ | 2,083 | $ | 319,113 | |||||||||||||||||
Basic net income (loss) per share from
continuing operations |
$ | (0.12 | ) | $ | (0.14 | ) | $ | (0.09 | ) | $ | 1.72 | $ | 1.65 | $ | 1.63 | |||||||||||||||||||||||||
Basic net income (loss) per share from
discontinued operations |
(0.10 | ) | (0.08 | ) | | (0.10 | ) | (0.03 | ) | | ||||||||||||||||||||||||||||||
Basic net income (loss) per share |
$ | (0.22 | ) | $ | (0.22 | ) | $ | (0.09 | ) | $ | 1.62 | $ | 1.62 | $ | 1.63 | |||||||||||||||||||||||||
Shares used in basic per share amounts |
190,893 | 190,893 | 190,893 | 195,455 | 195,455 | 195,455 | ||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share from
continuing operations |
$ | (0.12 | ) | $ | (0.14 | ) | $ | (0.09 | ) | $ | 1.68 | $ | 1.61 | $ | 1.59 | |||||||||||||||||||||||||
Diluted net income (loss) per share from
discontinued operations |
(0.10 | ) | (0.08 | ) | | (0.10 | ) | (0.03 | ) | | ||||||||||||||||||||||||||||||
Diluted net income (loss) per share |
$ | (0.22 | ) | $ | (0.22 | ) | $ | (0.09 | ) | $ | 1.58 | $ | 1.58 | $ | 1.59 | |||||||||||||||||||||||||
Shares used in diluted per share amounts |
190,893 | 190,893 | 190,893 | 200,081 | 200,081 | 200,081 | ||||||||||||||||||||||||||||||||||
Diluted earnings per share growth |
-3 | % | -3 | % | 19 | % | ||||||||||||||||||||||||||||||||||
Segment operating income for ITS as reported in Intuits earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.
The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.
The 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 non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuits management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuits core operating results because they exclude amounts that are not necessarily related to Intuits core operating results. Intuits management refers to these non-GAAP financial measures in assessing the performance of Intuits ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate managements internal comparisons to Intuits historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2005
In thousands, except per share amounts
Unaudited
| Three Months Ended October 31, 2004 | Three Months Ended January 31, 2005 | |||||||||||||||||||||||||||||||||||||||
| GAAP | GAAP | |||||||||||||||||||||||||||||||||||||||
| Results | Results | Results | Results | |||||||||||||||||||||||||||||||||||||
| per | Excluding | Non-GAAP | per | Excluding | Non-GAAP | |||||||||||||||||||||||||||||||||||
| Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | |||||||||||||||||||||||||||||||
Total net revenue |
$ | 265,990 | $ | 13,214 | $ | 252,776 | $ | | $ | 252,776 | $ | 662,639 | $ | 14,395 | $ | 648,244 | $ | | $ | 648,244 | ||||||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of product, service, other revenue |
76,472 | 1,079 | 75,393 | | 75,393 | 117,607 | 1,175 | 116,432 | | 116,432 | ||||||||||||||||||||||||||||||
Amortization of purchased assets |
3,354 | 813 | 2,541 | (2,541 | ) | | 3,439 | 813 | 2,626 | (2,626 | ) | | ||||||||||||||||||||||||||||
Selling and marketing |
133,135 | 4,589 | 128,546 | | 128,546 | 177,985 | 4,527 | 173,458 | | 173,458 | ||||||||||||||||||||||||||||||
Research and development |
75,107 | 742 | 74,365 | | 74,365 | 77,743 | 797 | 76,946 | | 76,946 | ||||||||||||||||||||||||||||||
General and administrative |
50,843 | 1,202 | 49,641 | | 49,641 | 57,371 | 946 | 56,425 | | 56,425 | ||||||||||||||||||||||||||||||
Acquisition-related charges |
4,444 | 3 | 4,441 | (4,441 | ) | | 4,172 | 3 | 4,169 | (4,169 | ) | | ||||||||||||||||||||||||||||
Total costs and expenses |
343,355 | 8,428 | 334,927 | (6,982 | ) | 327,945 | 438,317 | 8,261 | 430,056 | (6,795 | ) | 423,261 | ||||||||||||||||||||||||||||
Income (loss) from continuing operations |
(77,365 | ) | 4,786 | (82,151 | ) | 6,982 | (75,169 | ) | 224,322 | 6,134 | 218,188 | 6,795 | 224,983 | |||||||||||||||||||||||||||
Interest and other income |
3,951 | 96 | 3,855 | | 3,855 | 3,088 | 106 | 2,982 | | 2,982 | ||||||||||||||||||||||||||||||
Gains (losses) on marketable securities
and other investments, net |
158 | | 158 | (158 | ) | | 60 | | 60 | (60 | ) | | ||||||||||||||||||||||||||||
Income (loss) from continuing operations
before income taxes |
(73,256 | ) | 4,882 | (78,138 | ) | 6,824 | (71,314 | ) | 227,470 | 6,240 | 221,230 | 6,735 | 227,965 | |||||||||||||||||||||||||||
Income tax (benefit) provision |
(30,786 | ) | 1,855 | (32,641 | ) | 8,394 | (24,247 | ) | 78,627 | 2,371 | 76,256 | 1,252 | 77,508 | |||||||||||||||||||||||||||
Income (loss) from continuing operations |
(42,470 | ) | 3,027 | (45,497 | ) | (1,570 | ) | (47,067 | ) | 148,843 | 3,869 | 144,974 | 5,483 | 150,457 | ||||||||||||||||||||||||||
Net income (loss) from discontinued operations |
(3,666 | ) | (3,027 | ) | (639 | ) | 639 | | (1,591 | ) | (3,869 | ) | 2,278 | (2,278 | ) | | ||||||||||||||||||||||||
Net income (loss) |
$ | (46,136 | ) | $ | | $ | (46,136 | ) | $ | (931 | ) | $ | (47,067 | ) | $ | 147,252 | $ | | $ | 147,252 | $ | 3,205 | $ | 150,457 | ||||||||||||||||
Basic net income (loss) per share from
continuing operations |
$ | (0.22 | ) | $ | (0.24 | ) | $ | (0.25 | ) | $ | 0.80 | $ | 0.78 | $ | 0.81 | |||||||||||||||||||||||||
Basic net income (loss) per share from
discontinued operations |
(0.02 | ) | | | (0.01 | ) | 0.01 | | ||||||||||||||||||||||||||||||||
Basic net income (loss) per share |
$ | (0.24 | ) | $ | (0.24 | ) | $ | (0.25 | ) | $ | 0.79 | $ | 0.79 | $ | 0.81 | |||||||||||||||||||||||||
Shares used in basic per share amounts |
188,346 | 188,346 | 188,346 | 186,331 | 186,331 | 186,331 | ||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share from
continuing operations |
$ | (0.22 | ) | $ | (0.24 | ) | $ | (0.25 | ) | $ | 0.78 | $ | 0.76 | $ | 0.79 | |||||||||||||||||||||||||
Diluted net income (loss) per share from
discontinued operations |
(0.02 | ) | | | (0.01 | ) | 0.01 | | ||||||||||||||||||||||||||||||||
Diluted net income (loss) per share |
$ | (0.24 | ) | $ | (0.24 | ) | $ | (0.25 | ) | $ | 0.77 | $ | 0.77 | $ | 0.79 | |||||||||||||||||||||||||
Shares used in diluted per share amounts |
188,346 | 188,346 | 188,346 | 190,100 | 190,100 | 190,100 | ||||||||||||||||||||||||||||||||||
Segment operating income for ITS as reported in Intuits earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.
The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.
The 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 non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuits management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuits core operating results because they exclude amounts that are not necessarily related to Intuits core operating results. Intuits management refers to these non-GAAP financial measures in assessing the performance of Intuits ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate managements internal comparisons to Intuits historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2005
In thousands, except per share amounts
Unaudited
| Three Months Ended April 30, 2005 | Nine Months Ended April 30, 2005 | ||||||||||||||||||||||||||||||||||||||||
| GAAP | GAAP | ||||||||||||||||||||||||||||||||||||||||
| Results | Results | Results | Results | ||||||||||||||||||||||||||||||||||||||
| per | Excluding | Non-GAAP | per | Excluding | Non-GAAP | ||||||||||||||||||||||||||||||||||||
| Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | Form 10-Q | ITS | ITS | Adjmts | Non-GAAP | ||||||||||||||||||||||||||||||||
Total net revenue |
$ | 849,505 | $ | 14,641 | $ | 834,864 | $ | | $ | 834,864 | $ | 1,778,134 | $ | 42,250 | $ | 1,735,884 | $ | | $ | 1,735,884 | |||||||||||||||||||||
Costs and expenses: |
|||||||||||||||||||||||||||||||||||||||||
Cost of product, service, other revenue |
103,121 | 1,151 | 101,970 | | 101,970 | 297,200 | 3,405 | 293,795 | | 293,795 | |||||||||||||||||||||||||||||||
Amortization of purchased assets |
3,354 | 812 | 2,542 | (2,542 | ) | | 10,147 | 2,438 | 7,709 | (7,709 | ) | | |||||||||||||||||||||||||||||
Selling and marketing |
163,064 | 5,029 | 158,035 | | 158,035 | 474,184 | 14,145 | 460,039 | | 460,039 | |||||||||||||||||||||||||||||||
Research and development |
79,422 | 1,028 | 78,394 | | 78,394 | 232,272 | 2,567 | 229,705 | | 229,705 | |||||||||||||||||||||||||||||||
General and administrative |
70,508 | 2,765 | 67,743 | | 67,743 | 178,722 | 4,913 | 173,809 | | 173,809 | |||||||||||||||||||||||||||||||
Acquisition-related charges |
3,970 | 4 | 3,966 | (3,966 | ) | | 12,586 | 10 | 12,576 | (12,576 | ) | | |||||||||||||||||||||||||||||
Total costs and expenses |
423,439 | 10,789 | 412,650 | (6,508 | ) | 406,142 | 1,205,111 | 27,478 | 1,177,633 | (20,285 | ) | 1,157,348 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations |
426,066 | 3,852 | 422,214 | 6,508 | 428,722 | 573,023 | 14,772 | 558,251 | 20,285 | 578,536 | |||||||||||||||||||||||||||||||
Interest and other income |
5,802 | 75 | 5,727 | | 5,727 | 12,841 | 277 | 12,564 | | 12,564 | |||||||||||||||||||||||||||||||
Gains (losses) on marketable securities
and other investments, net |
124 | | 124 | (124 | ) | | 342 | | 342 | (342 | ) | | |||||||||||||||||||||||||||||
Income (loss) from continuing operations
before income taxes |
431,992 | 3,927 | 428,065 | 6,384 | 434,449 | 586,206 | 15,049 | 571,157 | 19,943 | 591,100 | |||||||||||||||||||||||||||||||
Income tax (benefit) provision |
131,485 | 1,493 | 129,992 | 17,721 | 147,713 | 179,326 | 5,719 | 173,607 | 27,367 | 200,974 | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations |
300,507 | 2,434 | 298,073 | (11,337 | ) | 286,736 | 406,880 | 9,330 | 397,550 | (7,424 | ) | 390,126 | |||||||||||||||||||||||||||||
Net income (loss) from discontinued operations |
| (2,434 | ) | 2,434 | (2,434 | ) | | (5,257 | ) | (9,330 | ) | 4,073 | (4,073 | ) | | ||||||||||||||||||||||||||
Net income (loss) |
$ | 300,507 | $ | | $ | 300,507 | $ | (13,771 | ) | $ | 286,736 | $ | 401,623 | $ | | $ | 401,623 | $ | (11,497 | ) | $ | 390,126 | |||||||||||||||||||
Basic net income (loss) per share from
continuing operations |
$ | 1.64 | $ | 1.63 | $ | 1.56 | $ | 2.19 | $ | 2.14 | $ | 2.10 | |||||||||||||||||||||||||||||
Basic net income (loss) per share from
discontinued operations |
| 0.01 | | (0.03 | ) | 0.02 | | ||||||||||||||||||||||||||||||||||
Basic net income (loss) per share |
$ | 1.64 | $ | 1.64 | $ | 1.56 | $ | 2.16 | $ | 2.16 | $ | 2.10 | |||||||||||||||||||||||||||||
Shares used in basic per share amounts |
183,422 | 183,422 | 183,422 | 186,062 | 186,062 | 186,062 | |||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share from
continuing operations |
$ | 1.61 | $ | 1.60 | $ | 1.53 | $ | 2.14 | $ | 2.10 | $ | 2.06 | |||||||||||||||||||||||||||||
Diluted net income (loss) per share from
discontinued operations |
| 0.01 | | (0.02 | ) | 0.02 | | ||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share |
$ | 1.61 | $ | 1.61 | $ | 1.53 | $ | 2.12 | $ | 2.12 | $ | 2.06 | |||||||||||||||||||||||||||||
Shares used in diluted per share amounts |
186,887 | 186,887 | 186,887 | 189,808 | 189,808 | 189,808 | |||||||||||||||||||||||||||||||||||
Segment operating income for ITS as reported in Intuits earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.
The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.
The 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 non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuits management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuits core operating results because they exclude amounts that are not necessarily related to Intuits core operating results. Intuits management refers to these non-GAAP financial measures in assessing the performance of Intuits ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate managements internal comparisons to Intuits historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
Intuit Inc.
Reconciliation of Guidance for Non-GAAP Financial Measures to Projected GAAP Revenue, Operating Income and EPS
All Figures Except GAAP EPS Exclude Intuit Information Technology Solutions
In thousands, except per share amounts
Unaudited
| Three Months Ending July 31, 2005 | ||||||||||||||||||||
| Non-GAAP | GAAP | |||||||||||||||||||
| Range of Estimate | Range of Estimate | |||||||||||||||||||
| From | To | Adjustments | From | To | ||||||||||||||||
Revenue |
$ | 270,000 | $ | 285,000 | $ | | $ | 270,000 | $ | 285,000 | ||||||||||
Operating loss |
(45,000 | ) | (35,000 | ) | (6,500 | ) [a] | (51,500 | ) | (41,500 | ) | ||||||||||
Diluted loss per share |
$ | (0.12 | ) | $ | (0.09 | ) | $ | | [b] | $ | (0.12 | ) | $ | (0.09 | ) | |||||
Shares |
180,000 | 183,000 | | 180,000 | 183,000 | |||||||||||||||
| Twelve Months Ending July 31, 2005 | ||||||||||||||||||||
| Non-GAAP | GAAP | |||||||||||||||||||
| Range of Estimate | Range of Estimate | |||||||||||||||||||
| From | To | Adjustments | From | To | ||||||||||||||||
Revenue |
$ | 2,005,000 | $ | 2,020,000 | $ | | $ | 2,005,000 | $ | 2,020,000 | ||||||||||
Revenue growth |
11 | % | 12 | % | | 11 | % | 12 | % | |||||||||||
Operating income |
535,000 | 545,000 | (26,800 | ) [c] | 508,200 | 518,200 | ||||||||||||||
Diluted earnings per share |
$ | 1.96 | $ | 1.99 | $ | 0.06 | [d] | $ | 2.02 | $ | 2.05 | |||||||||
Diluted earnings per share growth |
23 | % | 25 | % | 5 | % [d] | 28 | % | 30 | % | ||||||||||
Shares |
189,000 | 194,000 | | 189,000 | 194,000 | |||||||||||||||
| [a] | Reflects estimated adjustments for amortization of purchased software of approximately $2.5 million and amortization of purchased intangible assets of approximately $4.0 million. | |
| [b] | Reflects the adjustments in item [a], income tax expense related to these adjustments and estimated net income from discontinued operations of $4.0 million. | |
| [c] | Reflects estimated adjustments for amortization of purchased software of approximately $10.3 million and amortization of purchased intangible assets of approximately $16.5 million. | |
| [d] | Reflects the adjustments in item [c], income tax expense related to these adjustments and estimated net income from discontinued operations of $8.0 million. |
The 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 non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuits management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuits core operating results because they exclude amounts that are not necessarily related to Intuits core operating results. Intuits management refers to these non-GAAP financial measures in assessing the performance of Intuits ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate managements internal comparisons to Intuits historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
The reconciliations of the forward-looking non-GAAP financial measures to GAAP in this table include all information reasonably available to Intuit at the date of this reconciliation. The adjustments in this table are those that management can predict. Intuits non-GAAP 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.
Cautions About Forward-Looking Statements
This financial information contains forward-looking statements, including forecasts of our expected financial results. The numbers provided under the headings Forecast Q405 and Forecast FY05 in the table entitled Intuit Non-GAAP Statement of Operations (excluding ITS) and all of the numbers provided in the table entitled Reconciliation of Guidance for Non- GAAP Financial Measures to Projected GAAP Revenue, Operating Income and EPS 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. Our revenue, profitability and market position could be negatively impacted in an unpredictable manner due to product introductions and price competition from our competitors, including competition from Microsoft, which recently announced its intention to target small business customers with accounting software and associated services, and governmental encroachment in our tax businesses. Our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise. 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. It is a challenge for us to predict tax-related revenues due to the heavy concentration of activity in a short time period. 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 instead of our higher priced offerings. We have implemented new information systems, and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to manage effectively our business. Litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. 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 2004 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 financial information except as otherwise required by law.