EXHIBIT 99.01
Published on November 16, 2006
Exhibit 99.01
Contacts:
|
Investors | Media | ||
Bob Lawson | Diane Carlini | |||
Intuit Inc. | Intuit Inc. | |||
650-944-6165 | 650-944-6251 | |||
robert_lawson@intuit.com | diane_carlini@intuit.com |
Intuit Posts Strong First-Quarter
MOUNTAIN VIEW, Calif. Nov. 16, 2006 - Intuit Inc. (Nasdaq: INTU) today announced its
first-quarter 2007 revenue increased 19 percent over the year-ago quarter to $362.1 million. Growth
was primarily driven by strong sales of its QuickBooks software and add-on solutions, payroll and
payments. Approximately $20 million of first-quarter revenue was attributed to the September launch
of QuickBooks 2007, which was about 30 days earlier than last
year. Without this earlier launch, revenue growth would have been approximately 12 percent.
Intuit just completed another successful quarter, said Steve Bennett, Intuits president and
chief executive officer. QuickBooks 2007 is off to a great start, and our Payroll and Payments
segment also performed very well. With a new lineup of TurboTax products just launched, were
excited about the balance of the fiscal year.
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Intuit Earnings Q107
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First-Quarter 2007 Financial Highlights
Intuit posted a GAAP (Generally Accepted Accounting Principles) net loss of $58.9 million
versus a net loss of $45.8 million in the first quarter of 2006. This represents a net loss of
$0.17 per share versus a net loss of $0.13 per share in the year-ago quarter. First-quarter 2006
results included $11.8 million, or $0.03 per share, of net
income from discontinued operations. Intuit typically posts a seasonal loss in its first quarter
when it has little revenue from its tax businesses.
Intuit posted a non-GAAP net loss of $42.5 million versus a non-GAAP net loss of $45.0 million
in the first quarter of 2006. The first-quarter non-GAAP net loss was $0.12 per share versus a
non-GAAP net loss of $0.13 per share in the first quarter of fiscal 2006.
First-Quarter 2007 Business Segment Results
| QuickBooks revenue of $133.7 million was up 28 percent compared to the first quarter of 2006. The earlier launch of QuickBooks produced approximately $20 million in revenue, without which growth would have been approximately 9 percent. | ||
| Payroll and Payments revenue of $125.5 million was up 21 percent compared to the first quarter of 2006. | ||
| Consumer Tax revenue was $12.8 million, compared to $7.9 million in the first quarter of 2006. | ||
| Professional Tax revenue was $9.7 million, compared to $8.9 million in the first quarter of 2006. | ||
| Other Businesses revenue of $80.4 million was up 2 percent compared to the first quarter of 2006. |
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Intuit Earnings Q107
Page 3
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Forward-looking Guidance
Intuit reaffirmed its previously-given revenue and earnings per share guidance for the second
quarter of fiscal 2007 and provided operating income guidance for the first time. Intuit expects:
| Revenue of $743 million to $760 million, or year-over-year growth of 0 percent to 2 percent. | ||
| GAAP operating income of $185 million to $204 million, and non-GAAP operating income of $211 million to $230 million. | ||
| GAAP diluted earnings per share, or EPS, of $0.34 to $0.37, and non-GAAP diluted EPS of $0.39 to $0.42. |
Intuit also reaffirmed its previously given third quarter, fourth quarter, and full year
fiscal 2007 guidance for revenue and earnings per share, details of which are available on Intuits
Web site at www.intuit.com/about_intuit/investors/earnings/2006/.
Webcast and Conference Call Information
A live audio webcast
of Intuits first-quarter 2007 conference call is available at
www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. PST.
The replay of the audio webcast will remain on Intuits Web site for one week after the conference
call. Intuit has also posted this press release, including the attached tables and non-GAAP to GAAP
reconciliations on its Web site and will post the conference call script shortly after the
conference call concludes. These documents may be found at
www.intuit.com/about_intuit/investors/earnings/2006/.
The conference call number is 866-837-9789 in the United States or 703-639-1425 from
international locations. No reservation or access code is needed. A replay of the call will be
available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The
access code is 945569.
-30-
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.
Intuit Earnings Q107
Page 4
Page 4
About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a
description of these non-GAAP financial measures, including the reasons management uses each
measure, and reconciliations of these non-GAAP financial measures to the most directly comparable
financial measures prepared in accordance with Generally Accepted Accounting Principles, please see
the section of the accompanying tables titled About Non-GAAP Financial Measures as well as the
related Table B and Table E which follow it. A copy of the press release filed by Intuit on
November 16, 2006 can be found on the investor relations page of Intuits Web site.
Cautions About Forward-Looking Statements
This press release contains: forward-looking statements, including forecasts of Intuits expected
financial results; its prospects for the business in fiscal 2007 and beyond; all of the statements
under the heading Forward-Looking Guidance.
Because these forward-looking statements involve risks and uncertainties, there are important
factors that could cause our actual results to differ materially from the expectations expressed in
the forward-looking statements. These factors include, without limitation, the following: product
introductions and price competition from competitors, including Microsoft, can have unpredictable
negative effects on our revenue, profitability and market position. Governmental encroachment in
our tax businesses or other governmental activities regulating the filing of tax returns could
negatively affect our operating results and market position. We may not be able to successfully
introduce new products and services to meet our growth and profitability objectives, and current
and future products and services may not adequately address customer needs and may not achieve
broad market acceptance, which could harm our operating results and financial condition. Any
failure to maintain reliable and responsive service levels for our offerings could cause us to lose
customers and negatively impact our revenues and profitability. Any significant product quality
problems or delays in our products could harm our revenue, earnings and reputation. Our
participation in the Free File Alliance may result in lost revenue due to potential customers
filing free federal tax returns and electing not to pay for state filing or other services and
cannibalization of our traditional paid franchise. Any failure to properly use and protect personal
customer information could harm our revenue, earnings and reputation. Our revenue and earnings are
highly seasonal and the timing of our revenue between quarters is difficult to predict, which may
cause significant quarterly fluctuations in our financial results. Predicting tax-related revenues
is challenging due to the heavy concentration of activity in a short time period. We have
implemented, and are continuing to upgrade, new information systems and any problems with these new
systems could interfere with our ability to ship and deliver products and gather information to
effectively manage our business. Our financial position may not make repurchasing shares advisable
or we may issue additional shares in an acquisition causing our number of outstanding shares to
grow. Litigation involving intellectual property, antitrust, shareholder and other matters may
increase our costs. More details about these and other risks that may impact our business are
included in our Form 10-K for fiscal 2006 and in our other SEC filings. You can locate these
reports through our Web site at <http://www.intuit.com/about_intuit/investors>.
Forward-looking statements are based on information as of Nov. 16, 2006, and we do not undertake
any duty to update any forward-looking statement or other information in this press release.
Table A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | ||||||||
October 31, | October 31, | |||||||
2006 | 2005 | |||||||
Net revenue: |
||||||||
Product |
$ | 212,420 | $ | 182,454 | ||||
Service and other |
149,651 | 121,617 | ||||||
Total net revenue |
362,071 | 304,071 | ||||||
Costs and expenses: |
||||||||
Cost of revenue: |
||||||||
Cost of product revenue |
37,343 | 32,431 | ||||||
Cost of service and other revenue |
68,372 | 59,248 | ||||||
Amortization of purchased intangible assets |
2,308 | 2,949 | ||||||
Selling and marketing |
155,098 | 147,430 | ||||||
Research and development |
120,214 | 97,280 | ||||||
General and administrative |
77,388 | 63,595 | ||||||
Acquisition-related charges |
2,842 | 3,759 | ||||||
Total costs and expenses |
463,565 | 406,692 | ||||||
Operating loss from continuing operations |
(101,494 | ) | (102,621 | ) | ||||
Interest and other income |
10,290 | 6,304 | ||||||
Gains on marketable equity securities and other
investments, net |
1,221 | 4,267 | ||||||
Loss from continuing operations before
income taxes |
(89,983 | ) | (92,050 | ) | ||||
Income tax benefit [A] |
(31,268 | ) | (34,439 | ) | ||||
Minority interest |
215 | | ||||||
Net loss from continuing operations |
(58,930 | ) | (57,611 | ) | ||||
Net income from discontinued operations [B] |
| 11,807 | ||||||
Net loss |
$ | (58,930 | ) | $ | (45,804 | ) | ||
Basic and diluted net loss per share from
continuting operations |
$ | (0.17 | ) | $ | (0.16 | ) | ||
Basic and diluted net income per share from
discontinued operations |
| 0.03 | ||||||
Basic and diluted net loss per share [C] |
$ | (0.17 | ) | $ | (0.13 | ) | ||
Shares used in basic and diluted per share amounts |
346,214 | 354,812 | ||||||
See accompanying Notes.
INTUIT INC.
NOTES TO TABLE A
NOTES TO TABLE A
[A] | Our effective tax rate for the three months ended October 31, 2006 was approximately 35% and did not differ significantly from the federal statutory rate. Our effective tax rate for the three months ended October 31, 2005 was approximately 37% and differed from the federal statutory rate primarily due to state income taxes, which were partially offset by the benefit we received from tax exempt interest income. | |
[B] | In December 2005 we sold our Intuit Information Technology Solutions (ITS) business for approximately $200 million in cash. In accordance with the provisions of Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-lived Assets, we accounted for the sale of ITS as discontinued operations. Consequently, we have segregated the operating results and cash flows of ITS from continuing operations in our financial statements for all periods prior to the sale. For the three months ended October 31, 2005 we recorded revenue and net income from ITS operations of $14.4 million and $3.3 million. In that period we also recognized $8.5 million in tax benefits from the anticipated disposal of ITS. | |
[C] | Our Board of Directors authorized a two-for-one stock split which was effected in the form of a 100% stock dividend on July 6, 2006. All share and per share figures in these tables retroactively reflect this stock split. |
INTUIT INC.
ABOUT NON-GAAP FINANCIAL MEASURES
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated November 16, 2006 contains non-GAAP financial measures.
Tables B and E reconcile the non-GAAP financial measures in that press release to the most
directly comparable financial measures prepared in accordance with Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss) and
related operating margin as a percentage of revenue, non-GAAP net income (loss) and non-GAAP net
income (loss) per share.
Non-GAAP financial measures should not be considered as a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP. These non-GAAP financial
measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the
same names and may differ from non-GAAP financial measures with the same or similar names that
are used by other companies.
We believe that these non-GAAP financial measures provide meaningful supplemental information
regarding Intuits operating results primarily because they exclude amounts that we do not
consider part of ongoing operating results when assessing the performance of the organization,
our operating segments or our senior management. Segment managers are not held accountable for
share-based compensation expenses, acquisition-related costs, or the other excluded items that
may impact their business units operating income (loss) and, accordingly, we exclude these
amounts from our measures of segment performance. We also exclude these amounts from our budget
and planning process. We believe that our non-GAAP financial measures also facilitate the
comparison of results for current periods and guidance for future periods with results for past
periods. We exclude the following items from our non-GAAP financial measures:
| Share-based compensation expenses. Our non-GAAP financial measures exclude share-based compensation expenses, which consist of expenses for stock options, restricted stock, restricted stock units and purchases of common stock under our Employee Stock Purchase Plan. Segment managers are not held accountable for share-based compensation expenses impacting their business units operating income (loss) and, accordingly, we exclude share-based compensation expenses from our measures of segment performance. While share-based compensation is a significant expense affecting our results of operations, management excludes share-based compensation from our budget and planning process. We exclude share-based compensation expenses from our non-GAAP financial measures for these reasons and the other reasons stated above. We compute weighted average dilutive shares using the method required by SFAS 123(R) for both GAAP and non-GAAP diluted net income per share. | ||
| Amortization of purchased intangible assets and acquisition-related charges. In accordance with GAAP, amortization of purchased intangible assets in cost of revenue includes amortization of software and other technology assets related to acquisitions and acquisition-related charges in operating expenses includes amortization of other purchased intangible assets such as customer lists and covenants not to compete. Acquisition activities are managed on a corporate-wide basis and segment managers are not held accountable for the acquisition-related costs impacting their business units operating income (loss). We exclude these amounts from our measures of segment performance and from our budget and planning process. We exclude these items from our non-GAAP financial measures for these reasons, the other reasons stated above and because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. | ||
| Gains and losses on disposals of businesses. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operating results. | ||
| Gains and losses on marketable equity securities and other investments. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operating results. | ||
| Income taxes. Our historical non-GAAP effective tax rates differ from our GAAP effective tax rates for those periods because non-GAAP income tax expense or benefit excludes certain GAAP discrete tax items, including the reversal of reserves related to potential income tax exposures that have been resolved. We exclude the impact of these discrete tax items from our non-GAAP income tax provision or benefit for the reasons stated above and because management believes that they are not indicative of our ongoing business operations. | ||
| Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operations. |
The following describes each non-GAAP financial measure, the items excluded from the most
directly comparable GAAP measure in arriving at each non-GAAP financial measure, and the reasons
management uses each measure and excludes the specified amounts in arriving at each non-GAAP
financial measure.
(A) | Operating income (loss) and related operating margin as a percentage of revenue. We exclude share-based compensation expenses, amortization of purchased intangible assets and acquisition-related charges from our GAAP operating income (loss) from continuing operations and related operating margin in arriving at our non-GAAP operating income (loss) and related operating margin primarily because we do not consider them part of ongoing operating results when assessing the performance of the organization, our operating segments and senior management or when undertaking our budget and planning process. We believe that the exclusion of these expenses from our non-GAAP financial measures also facilitates the comparison of results for fiscal 2006 and guidance for |
future periods with results for prior periods. In addition, we exclude amortization of purchased intangible assets and acquisition-related charges from non-GAAP operating income (loss) and operating margin because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. | |||
(B) | Net income (loss) and net income (loss) per share (or earnings per share). We exclude share-based compensation expenses, amortization of purchased intangible assets, acquisition-related charges, net gains on marketable equity securities and other investments, gains and losses on disposals of businesses, certain discrete tax items and amounts related to discontinued operations from our GAAP net income (loss) and net income (loss) per share in arriving at our non-GAAP net income (loss) and net income (loss) per share. We exclude all of these items from our non-GAAP net income (loss) and net income (loss) per share primarily because we do not consider them part of ongoing operating results when assessing the performance of the organization, our operating segments and senior management or when undertaking our budget and planning process. We believe that the exclusion of these items from our non-GAAP financial measures also facilitates the comparison of results for current periods and guidance for future periods with results for prior periods. | ||
In addition, we exclude amortization of purchased intangible assets and acquisition-related charges from our non-GAAP net income (loss) and net income (loss) per share because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. We exclude gains on marketable equity securities and other investments, net from our non-GAAP net income (loss) and net income (loss) per share because they are unrelated to our ongoing business operating results. Our historical non-GAAP effective tax rates differ from our GAAP effective tax rates for those periods because our non-GAAP income tax expense or benefit excludes certain GAAP discrete tax items, including the reversal of reserves related to potential income tax exposures that have been resolved. We exclude the impact of these discrete tax items from our non-GAAP income tax provision or benefit because management believes that they are not indicative of our ongoing business operations. The effective tax rates used to calculate non-GAAP net income (loss) and net income (loss) per share were as follows: 35% for the first quarter of fiscal 2006; 37% for the first quarter of fiscal 2007; and 37% for fiscal 2007 guidance. Finally, we exclude amounts related to discontinued operations from our non-GAAP net income (loss) and net income (loss) per share because they are unrelated to our ongoing business operations. |
We refer to these non-GAAP financial measures in assessing the performance of Intuits ongoing
operations and for planning and forecasting in future periods. These non-GAAP financial measures
also facilitate our internal comparisons to Intuits historical operating results. We have
historically reported similar non-GAAP financial measures and believe that the inclusion of
comparative numbers provides consistency in our financial reporting. We compute non-GAAP
financial measures using the same consistent method from quarter to quarter and year to year.
The reconciliations of the forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures in Table E include all information reasonably available to
Intuit at the date of this press release. These tables include adjustments that we can reasonably
predict. Events that could cause the reconciliation to change include acquisitions and
divestitures of businesses, goodwill and other asset impairments and sales of marketable equity
securities and other investments.
Table B
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | ||||||||
October 31, | October 31, | |||||||
2006 | 2005 | |||||||
GAAP operating loss from continuing
operations |
$ | (101,494 | ) | $ | (102,621 | ) | ||
Amortization of purchased intangible assets |
2,308 | 2,949 | ||||||
Acquisition-related charges |
2,842 | 3,759 | ||||||
Share-based compensation expense |
18,859 | 20,424 | ||||||
Non-GAAP operating loss |
$ | (77,485 | ) | $ | (75,489 | ) | ||
GAAP net loss |
$ | (58,930 | ) | $ | (45,804 | ) | ||
Amortization of purchased intangible assets |
2,308 | 2,949 | ||||||
Acquisition-related charges |
2,842 | 3,759 | ||||||
Share-based compensation expense |
18,859 | 20,424 | ||||||
Gains on marketable equity securities |
(1,221 | ) | (4,267 | ) | ||||
Income tax effect of non-GAAP adjustments |
(8,432 | ) | (8,003 | ) | ||||
Exclusion of discrete tax items |
2,026 | (2,221 | ) | |||||
Discontinued operations |
| (11,807 | ) | |||||
Non-GAAP net loss |
$ | (42,548 | ) | $ | (44,970 | ) | ||
GAAP diluted net loss per share |
$ | (0.17 | ) | $ | (0.13 | ) | ||
Amortization of purchased intangible assets |
0.01 | 0.01 | ||||||
Acquisition-related charges |
0.01 | 0.01 | ||||||
Share-based compensation expense |
0.05 | 0.06 | ||||||
Gains on marketable equity securities |
(0.01 | ) | (0.02 | ) | ||||
Income tax effect of non-GAAP adjustments |
(0.02 | ) | (0.02 | ) | ||||
Exclusion of discrete tax items |
0.01 | (0.01 | ) | |||||
Discontinued operations |
| (0.03 | ) | |||||
Non-GAAP diluted net loss per share |
$ | (0.12 | ) | $ | (0.13 | ) | ||
Shares used in diluted per share amounts |
346,214 | 354,812 | ||||||
See About Non-GAAP Financial Measures immediately preceding this Table B for information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. All share and per share figures in this Table B retroactively reflect our July 2006 two-for-one common stock split. |
Table C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, | July 31, | |||||||
2006 | 2006 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 166,074 | $ | 179,601 | ||||
Investments |
893,087 | 1,017,599 | ||||||
Accounts receivable, net |
95,499 | 97,797 | ||||||
Income taxes receivable |
103,880 | 64,178 | ||||||
Deferred income taxes |
51,114 | 47,199 | ||||||
Prepaid expenses and other current assets |
72,012 | 53,357 | ||||||
Current assets before funds held for payroll customers |
1,381,666 | 1,459,731 | ||||||
Funds held for payroll customers |
436,212 | 357,299 | ||||||
Total current assets |
1,817,878 | 1,817,030 | ||||||
Property and equipment, net |
201,700 | 194,434 | ||||||
Goodwill, net |
555,506 | 504,991 | ||||||
Purchased intangible assets, net |
63,010 | 59,521 | ||||||
Long-term deferred income taxes |
142,194 | 144,697 | ||||||
Loans to executive officers and other employees |
8,865 | 8,865 | ||||||
Other assets |
46,006 | 40,489 | ||||||
Total assets |
$ | 2,835,159 | $ | 2,770,027 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 97,854 | $ | 70,808 | ||||
Accrued compensation and related liabilities |
90,792 | 171,903 | ||||||
Deferred revenue |
276,647 | 293,113 | ||||||
Income taxes payable |
17,992 | 33,560 | ||||||
Other current liabilities |
101,476 | 89,291 | ||||||
Current liabilities before payroll customer fund deposits |
584,761 | 658,675 | ||||||
Payroll customer fund deposits |
436,212 | 357,299 | ||||||
Total current liabilities |
1,020,973 | 1,015,974 | ||||||
Long-term obligations |
14,948 | 15,399 | ||||||
Minority interest |
814 | 568 | ||||||
Stockholders equity |
1,798,424 | 1,738,086 | ||||||
Total liabilities and stockholders equity |
$ | 2,835,159 | $ | 2,770,027 | ||||
Table D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended | ||||||||
October 31, | October 31, | |||||||
2006 | 2005 | |||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ | (58,930 | ) | $ | (45,804 | ) | ||
Net income from discontinued operations |
| (11,807 | ) | |||||
Net loss from continuing operations |
(58,930 | ) | (57,611 | ) | ||||
Adjustments to reconcile net loss from continuing operations
to net cash used in operating activities: |
||||||||
Depreciation |
22,275 | 23,145 | ||||||
Acquisition-related charges |
2,842 | 3,759 | ||||||
Amortization of purchased intangible assets |
2,308 | 2,949 | ||||||
Amortization of other purchased intangible assets |
2,571 | 2,031 | ||||||
Share-based compensation restricted stock |
5,031 | 1,325 | ||||||
Share-based compensation all other |
13,828 | 19,099 | ||||||
Loss on disposal of property and equipment |
214 | 34 | ||||||
Amortization of premiums and discounts on available-for-sale
debt securities |
890 | 1,094 | ||||||
Net realized loss on sales of available-for-sale debt securities |
8 | 380 | ||||||
Net gains on marketable equity securities and other investments |
(1,221 | ) | (4,267 | ) | ||||
Minority interest, net of tax |
215 | | ||||||
Deferred income taxes |
(2,847 | ) | 2,520 | |||||
Tax benefit from share-based compensation plans |
16,796 | 2,522 | ||||||
Excess tax benefit from share-based compensation plans |
(8,753 | ) | (939 | ) | ||||
Gain on foreign exchange transactions |
(88 | ) | (15 | ) | ||||
Subtotal |
(4,861 | ) | (3,974 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
2,604 | 12,921 | ||||||
Prepaid expenses, taxes and other current assets |
(58,258 | ) | (38,494 | ) | ||||
Accounts payable |
26,351 | 30,665 | ||||||
Accrued compensation and related liabilities |
(81,162 | ) | (64,399 | ) | ||||
Deferred revenue |
(16,779 | ) | (5,237 | ) | ||||
Income taxes payable |
(15,713 | ) | (16,771 | ) | ||||
Other liabilities |
11,112 | (9,471 | ) | |||||
Total changes in operating assets and liabilities |
(131,845 | ) | (90,786 | ) | ||||
Net cash used in operating activities
of continuing operations |
(136,706 | ) | (94,760 | ) | ||||
Net cash provided by operating activities of
discontinued operations |
| 10,981 | ||||||
Net cash used in operating activities |
(136,706 | ) | (83,779 | ) | ||||
Cash flows from investing activities: |
||||||||
Purchases of available-for-sale debt securities |
(400,875 | ) | (289,119 | ) | ||||
Liquidation of available-for-sale debt securities |
490,197 | 555,069 | ||||||
Maturity of available-for-sale debt securities |
34,830 | 20,775 | ||||||
Proceeds from the sale of marketable equity securities |
858 | | ||||||
Net change in funds held for payroll customers money
market funds and other cash equivalents |
(78,913 | ) | 12,406 | |||||
Purchases of property and equipment |
(29,223 | ) | (25,057 | ) | ||||
Change in other assets |
(4,678 | ) | (4,454 | ) | ||||
Net change in payroll customer fund deposits |
78,913 | (12,406 | ) | |||||
Acquisitions of businesses and intangible assets, net of cash acquired |
(60,002 | ) | (10,148 | ) | ||||
Net cash provided by investing activities |
31,107 | 247,066 | ||||||
Cash flows from financing activities: |
||||||||
Change in long-term obligations |
(441 | ) | (634 | ) | ||||
Net proceeds from issuance of common stock under stock plans |
82,898 | 21,468 | ||||||
Purchase of treasury stock |
| (194,800 | ) | |||||
Excess tax benefit from share-based compensation plans |
8,753 | 939 | ||||||
Net cash provided by (used in) financing activities |
91,210 | (173,027 | ) | |||||
Effect of exchange rates on cash and cash equivalents |
862 | 872 | ||||||
Net decrease in cash and cash equivalents |
(13,527 | ) | (8,868 | ) | ||||
Cash and cash equivalents at beginning of period |
179,601 | 83,842 | ||||||
Cash and cash equivalents at end of period |
$ | 166,074 | $ | 74,974 | ||||
Table E
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME (LOSS), AND EPS
(In thousands, except per share amounts)
(Unaudited)
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME (LOSS), AND EPS
(In thousands, except per share amounts)
(Unaudited)
Forward-Looking Guidance | ||||||||||||||||||||||||
GAAP | Non-GAAP | |||||||||||||||||||||||
Range of Estimate | Range of Estimate | |||||||||||||||||||||||
From | To | Adjustments | From | To | ||||||||||||||||||||
Three Months Ending
January 31, 2007 |
||||||||||||||||||||||||
Revenue |
$ | 743,000 | $ | 760,000 | $ | | $ | 743,000 | $ | 760,000 | ||||||||||||||
Operating income |
$ | 185,000 | $ | 204,000 | $ | 26,000 | [a] | $ | 211,000 | $ | 230,000 | |||||||||||||
Diluted earnings per
share |
$ | 0.34 | $ | 0.37 | $ | 0.05 | [b] | $ | 0.39 | $ | 0.42 | |||||||||||||
Shares |
362,000 | 364,000 | 362,000 | 364,000 | ||||||||||||||||||||
Three Months Ending
April 30, 2007 |
||||||||||||||||||||||||
Revenue |
$ | 1,075,000 | $ | 1,105,000 | $ | | $ | 1,075,000 | $ | 1,105,000 | ||||||||||||||
Diluted earnings per
share |
$ | 1.04 | $ | 1.08 | $ | 0.04 | [c] | $ | 1.08 | $ | 1.12 | |||||||||||||
Three Months Ending
July 31, 2007 |
||||||||||||||||||||||||
Revenue |
$ | 355,000 | $ | 370,000 | $ | | $ | 355,000 | $ | 370,000 | ||||||||||||||
Diluted loss per share |
$ | (0.09 | ) | $ | (0.07 | ) | $ | 0.05 | [d] | $ | (0.04 | ) | $ | (0.02 | ) | |||||||||
Twelve Months Ending
July 31, 2007 |
||||||||||||||||||||||||
Revenue |
$ | 2,525,000 | $ | 2,575,000 | $ | | $ | 2,525,000 | $ | 2,575,000 | ||||||||||||||
Operating income |
$ | 620,000 | $ | 646,000 | $ | 100,000 | [e] | $ | 720,000 | $ | 746,000 | |||||||||||||
Operating margin |
24 | % | 25 | % | 4 | % | [e] | 28 | % | 29 | % | |||||||||||||
Diluted earnings per
share |
$ | 1.18 | $ | 1.22 | $ | 0.18 | [f] | $ | 1.36 | $ | 1.40 | |||||||||||||
Shares |
359,000 | 361,000 | 359,000 | 361,000 |
See About Non-GAAP Financial Measures immediately preceding Table B for more information on these measures, the items excluded from the most directly comparable GAAP measures in arriving at non-GAAP financial measures, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure. |
[a] | Reflects estimated adjustments for share-based compensation expense of approximately $22 million; amortization of purchased intangible assets of approximately $2 million; and acquisition-related charges of approximately $2 million. | |
[b] | Reflects the estimated adjustments in item [a] and income taxes related to these adjustments. | |
[c] | Reflects adjustments for share-based compensation expense of approximately $21 million; amortization of purchased intangible assets of approximately $2 million; acquisition-related charges of approximately $2 million; and income taxes related to these adjustments. | |
[d] | Reflects adjustments for share-based compensation expense of approximately $22 million; amortization of purchased intangible assets of approximately $2 million; acquisition-related charges of approximately $1 million; and income taxes related to these adjustments. | |
[e] | Reflects estimated adjustments for share-based compensation expense of approximately $84 million; amortization of purchased intangible assets of approximately $8 million; and acquisition-related charges of approximately $8 million. | |
[f] | Reflects the estimated adjustments in item [e] and income taxes related to these adjustments. |