ADTRAN, Inc. (NASDAQ:ADTN) reported results for the first
quarter 2019. For the quarter, sales were $143.8 million compared
to $120.8 million for the first quarter of 2018. Net income was
$0.8 million compared to a net loss of $10.8 million for the first
quarter of 2018. Earnings per share, assuming dilution, were $0.02
compared to a loss per share of $0.22 for the first quarter of
2018. Non-GAAP net income was $4.9 million compared to a net loss
of $15.8 million for the first quarter of 2018. Non-GAAP earnings
per share, assuming dilution, were $0.10 compared to a loss per
share of $0.33 for the first quarter of 2018. Non-GAAP earnings per
share exclude stock-based compensation expense, acquisition related
amortizations and other expenses, restructuring expenses, gain on
bargain purchase of a business, and amortization of pension
actuarial losses. The reconciliation between GAAP net income (loss)
and earnings (loss) per share to non-GAAP net income (loss) and
non-GAAP earnings (loss) per share is in the table provided.
ADTRAN Chairman and Chief Executive Officer Tom
Stanton stated, “We are pleased with our progress in the first
quarter of 2019. Our revenue was diverse and well balanced
with material contributions across the LATAM, EMEA, North America,
and Pacific Rim regions. Furthermore, our broad portfolio of
next-generation solutions continues to gain market traction with a
growing number of customers in an expanding range of market
segments. This progress underscores the company’s global
strategy of diversification across geographies and markets.”
The Company also announced that its Board of Directors declared
a cash dividend for the first quarter of 2019. The quarterly cash
dividend is $0.09 per common share to be paid to holders of record
at the close of business on May 2, 2019. The ex-dividend date is
May 1, 2019, and the payment date is May 16, 2019.
The Company confirmed that it will hold a conference call to
discuss its first quarter results Thursday, April 18, 2019, at 9:30
a.m. Central Time. ADTRAN will webcast this conference call. To
listen, simply visit the Investor Relations site at
www.investors.adtran.com approximately 10 minutes prior to the
start of the call and click on the conference call link
provided.
An online replay of the conference call, as well as the text of
the Company's earnings release, will be available on the Investor
Relations site approximately 24 hours following the call and will
remain available for at least 12 months. For more information,
visit www.investors.adtran.com or via email
at investor.relations@adtran.com.
At ADTRAN, we believe amazing things happen when people connect.
From the cloud edge to the subscriber edge, we help communications
service providers around the world manage and scale services that
connect people, places and things to advance human progress.
Whether rural or urban, domestic or international, telco or cable,
enterprise or residential—ADTRAN solutions optimize existing
technology infrastructures and create new, multi-gigabit platforms
that leverage cloud economics, data analytics, machine learning and
open ecosystems—the future of global networking. Find more at
ADTRAN, LinkedIn and Twitter.
This press release contains forward-looking statements which
reflect management’s best judgment based on factors currently
known. However, these statements involve risks and uncertainties,
including the successful development and market acceptance of new
products, the degree of competition in the market for such
products, the product and channel mix, component costs,
manufacturing efficiencies, and other risks detailed in our annual
report on Form 10-K for the year ended December 31, 2018.
These risks and uncertainties could cause actual results to differ
materially from those in the forward-looking statements included in
this press release.
To provide additional transparency, we have disclosed non-GAAP
operating income (loss) which has been reconciled to operating
income (loss) and non-GAAP net income (loss) and non-GAAP adjusted
earnings (loss) per share - basic and diluted which have been
reconciled to net income (loss) and earnings (loss) per share -
basic and diluted as reported based on Generally Accepted
Accounting Principles in the United States (U.S. GAAP). These
measures exclude certain items which management believes are not
reflective of the ongoing operating performance of the business. We
believe this information is useful in providing period-to-period
comparisons of the results of our ongoing operations. Additionally,
these measures are used by management in our ongoing planning and
annual budgeting processes. The presentation of non-GAAP operating
income (loss), non-GAAP net income (loss) and non-GAAP earnings
(loss) per share- basic and diluted, when combined with the U.S.
GAAP presentation of operating income (loss), net income (loss),
and net income (loss) per share is beneficial to the overall
understanding of ongoing operating performance of the company.
These measures are not in accordance with, or an alternative
for, U.S. GAAP and therefore should not be considered in isolation
or as a substitution for analysis of our results as reported under
U.S. GAAP. Our calculation of non-GAAP operating income (loss),
non-GAAP net income (loss) and non-GAAP earnings (loss) per share -
basic and diluted may not be comparable to similar measures
calculated by other companies.
Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)
March 31, December
31, 2019 2018 Assets Cash and cash
equivalents $ 109,119 $ 105,504 Short-term investments 31,290 3,246
Accounts receivable, net 99,032 99,385 Other receivables 34,583
36,699 Inventory, net 93,609 99,848 Prepaid expenses and other
current assets 9,683 10,744
Total Current
Assets 377,316 355,426 Property, plant and
equipment, net 79,505 80,635 Deferred tax assets, net 36,891 37,187
Goodwill 6,982 7,106 Intangibles, net 31,817 33,183 Other assets
14,885 5,668 Long-term investments 85,227 108,822
Total Assets $ 632,623 $ 628,027
Liabilities and Stockholders' Equity Accounts payable
$ 60,116 $ 60,054 Bonds payable 25,600 1,000 Unearned revenue
15,230 17,940 Accrued expenses 14,039 11,746 Accrued wages and
benefits 15,105 14,752 Income tax payable, net 11,785
12,518
Total Current Liabilities 141,875
118,010 Non-current unearned revenue 4,514 5,296
Other non-current liabilities 42,687 33,842 Bonds payable —
24,600
Total Liabilities 189,076
181,748 Stockholders' Equity
443,547 446,279 Total Liabilities
and Stockholders' Equity $ 632,623 $
628,027 Consolidated Statements of
Income (Unaudited) (In thousands, except per share
data) Three Months Ended
March 31, 2019 2018 Sales
Products $ 125,822 $ 105,253 Services 17,969
15,553
Total Sales 143,791 120,806
Cost of Sales Products 70,734 68,612 Services 12,445
12,461
Total Cost of Sales
83,179 81,073 Gross Profit 60,612
39,733 Selling, general and administrative expenses 35,132
33,531 Research and development expenses 31,647
32,849
Operating Loss (6,167 )
(26,647 ) Interest and dividend income 591 866
Interest expense (127 ) (132 ) Net investment gain (loss) 5,926 (97
) Other income (expense), net 855 (57 ) Gain on bargain purchase of
a business — 11,322
Income (Loss)
Before Provision for Income Taxes 1,078 (14,745
) (Provision) benefit for income taxes (308 )
3,931
Net Income (Loss) $ 770
$ (10,814 ) Weighted average shares
outstanding – basic 47,782 48,232 Weighted average shares
outstanding – diluted(1) 47,853 48,292 Earnings (loss) per
common share – basic $ 0.02 $ (0.22 ) Earnings (loss) per common
share – diluted(1) $ 0.02 $ (0.22 )
(1) Assumes exercise of dilutive stock options calculated under
the treasury stock method.
Consolidated Statements of
Comprehensive Income
(Unaudited) (In thousands)
Three Months Ended March 31, 2019
2018 Net Income (Loss) $ 770 $
(10,814 )
Other Comprehensive Loss, net of tax Net
unrealized gains (losses) on available-for-sale securities 185
(3,412 ) Defined benefit plan adjustments 121 62 Foreign currency
translation (1,160 ) 842
Other
Comprehensive Loss, net of tax (854 )
(2,508 ) Comprehensive Loss, net of tax
$ (84 ) $ (13,322 )
Consolidated Statements of Cash Flows
(Unaudited) (In thousands)
Three Months Ended March 31,
2019 2018 Cash flows from operating
activities: Net income (loss) $ 770 $ (10,814 ) Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: Depreciation and amortization 4,496 3,614 Amortization
of net premium on available-for-sale investments 6 42 Net (gain)
loss on long-term investments (5,926 ) 97 Net (gain) loss on
disposal of property, plant and equipment (6 ) 67 Gain on bargain
purchase of a business — (11,322 ) Stock-based compensation expense
1,859 1,819 Deferred income taxes 235 (1,877 ) Changes in operating
assets and liabilities: Accounts receivable, net 170 63,904 Other
receivables 1,185 (6,598 ) Inventory 5,974 3,368 Prepaid expenses
and other assets (566 ) 10,583 Accounts payable 166 (10,233 )
Accrued expenses and other liabilities (2,355 ) 826 Income tax
payable (487 ) 2,753
Net cash provided by
operating activities 5,521
46,229 Cash flows from investing
activities: Purchases of property, plant and equipment (1,872 )
(1,950 ) Proceeds from sales and maturities of available-for-sale
investments 17,039 49,074 Purchases of available-for-sale
investments (11,127 ) (75,960 ) Acquisition of business —
(7,806 )
Net cash provided by (used in) investing
activities 4,040 (36,642
) Cash flows from financing activities:
Proceeds from stock option exercises — 369 Purchases of treasury
stock (184 ) (10,171 ) Dividend payments (4,301 )
(4,367 )
Net cash used in financing activities
(4,485 ) (14,169 ) Net
increase (decrease) in cash and cash equivalents 5,076 (4,582 )
Effect of exchange rate changes (1,461 ) 772
Cash and cash
equivalents, beginning of period 105,504
86,433 Cash and cash equivalents,
end of period $ 109,119 $
82,623 Supplemental disclosure of non-cash
investing activities: Purchases of property, plant and equipment
included in accounts payable $ 273 $ 95 Right-of-use asset obtained
in exchange for lease obligations $ 10,371 $ —
Supplemental Information Reconciliation of Operating Loss
to Non-GAAP Operating Income (Loss) (Unaudited)
Three Months EndedMarch
31,
2019 2018 Operating
Loss $ (6,167) $ (26,647)
Acquisition related expenses, amortizations and adjustments 1,497
(1) 583 (5) Stock-based compensation expense 1,859 (2) 1,819 (6)
Restructuring expenses 2,063 (3) 5,950 (7) Deferred compensation
investment fluctuations 2,124 (4) (386) (4)
Non-GAAP Operating Income (Loss) $ 1,376
$ (18,681)
(1) $0.5 million is included in total cost
of sales, $0.5 million is included in selling, general and
administrative expenses and $0.5 million is included in research
and development expenses on the consolidated statements of
income.
(2) $0.1 million is included in total cost of sales, $1.1
million is included in selling, general and administrative expenses
and $0.7 million is included in research and development expenses
on the consolidated statements of income. (3) $0.6 million
is included in total cost of sales, $0.8 million is included in
selling, general and administrative expenses and $0.6 million is
included in research and development expenses on the consolidated
statements of income. (4) Includes non-cash change in fair
value of equity investments held in the ADTRAN, Inc. Deferred
Compensation Program for Employees (as amended and restated as of
June 1, 2010) per ASU 2016-01, all of which is included in selling,
general and administrative expenses on the consolidated statements
of income. (5) $0.3 million is included in selling, general
and administrative expenses and $0.3 million is included in
research and development expenses on the consolidated statements of
income. (6) $0.1 million is included in total cost of sales,
$1.0 million is included in selling, general and administrative
expenses and $0.7 million is included in research and development
expenses on the consolidated statements of income. (7) $2.4
million is included in total cost of sales, $1.8 million is
included in selling, general and administrative expenses and $1.8
million is included in research and development expenses on the
consolidated statements of income.
Supplemental
Information Reconciliation of Net Income (Loss) and Earnings
(Loss) per Share – Basic and Diluted to Non-GAAP Net Income
(Loss) and Non-GAAP Earnings (Loss) per Share – Basic and
Diluted (Unaudited)
Three Months EndedMarch
31,
2019 2018 Net Income
(Loss) $ 770 $ (10,814)
Restructuring expenses 2,063 5,950 Acquisition related expenses,
amortizations and adjustments 1,497 583 Stock-based compensation
expense 1,859 1,819 Pension expense 203 (1) 64 (1) Gain on bargain
purchase of a business — (11,322) Tax effect of adjustments to Net
Income (Loss) (1,524) (2,107)
Non-GAAP Net Income
(Loss) $ 4,868 $ (15,827)
Weighted average shares outstanding – basic 47,782 48,232 Weighted
average shares outstanding – diluted 47,853 48,292
Earnings (loss) per common share - basic $
0.02 $ (0.22) Earnings (loss) per common
share - diluted $ 0.02 $ (0.22)
Non-GAAP earnings (loss) per common share - basic
$ 0.10 $ (0.33) Non-GAAP earnings
(loss) per common share - diluted $ 0.10 $
(0.33)
(1) Includes amortization of actuarial losses related to the
Company's pension plan for employees in certain foreign
countries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190417006019/en/
Investor Services/Assistance:Cathy Hoffman-Young,
256-963-7054investor@adtran.com
ADTRAN (NASDAQ:ADTN)
Historical Stock Chart
From Apr 2024 to May 2024
ADTRAN (NASDAQ:ADTN)
Historical Stock Chart
From May 2023 to May 2024