[April 28, 2016] |
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HARMAN Reports Third Quarter Fiscal 2016 Results
HARMAN International Industries, Incorporated (NYSE:HAR), the premier
connected technologies company for automotive, consumer and enterprise
markets, today announced results for the third quarter ended March 31,
2016.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160428005568/en/
Net sales for the third quarter were $1.6 billion, an increase of 11
percent compared to the prior year or 12 percent excluding the impact of
foreign currency translation (ex-FX). Connected Car net sales increased
five percent (six percent ex-FX) primarily due to higher take rates.
Lifestyle Audio net sales increased 11 percent (12 percent ex-FX) due to
the acquisition of Bang & Olufsen Automotive, higher car audio take
rates and higher consumer audio sales. Net sales in Professional
Solutions decreased four percent (three percent ex-FX) mainly due to
lower demand in Brazil and certain European markets, as well as channel
rationalization to support a solutions-based go-to-market structure.
Connected Services net sales were $166 million compared to $67 million
in the prior year, primarily due to the expansion of the Company's
services portfolio as a result of the acquisition of Symphony Teleca
(STC).
On a GAAP basis, third quarter operating income increased 48 percent to
$135 million compared to $92 million in the prior year and EBITDA
increased 41 percent to $186 million compared to $132 million in the
prior year. Earnings per diluted share increased 23 percent to $1.22
compared to $0.99 in the prior year. The Company recorded $13 million of
restructuring, non-recurring charges and acquisition-related items
compared to $23 million in the prior year. The decrease was primarily
due to lower restructuring costs compared to the prior year.
Excluding restructuring, non-recurring charges and acquisition-related
items, third quarter operating income increased 30 percent to $148
million compared to $114 million in the prior year, and EBITDA increased
26 percent to $189 million compared to $150 million in the prior year.
Earnings per diluted share were $1.36 compared to $1.22 in the prior
year.
"For the 12th consecutive quarter, HARMAN has delivered top
and bottom line growth, and in the quarter, we grew EBITDA 26 percent
year-over-year. Our Connected Car and Lifestyle Audio divisions, which
represent approximately 75 percent of our revenue, continue to deliver
strong results. In our Professional Solutions division, we are taking
decisive actions to improve performance and better position HARMAN for
growth," said Dinesh C. Paliwal, the Company's Chairman, President and
CEO.
"HARMAN is capitalizing on the robust demand for seamless, secure
connectivity across the full vehicle market. On top of the record $6.2
billion in automotive awards we announced in fiscal 2015, I am very
pleased with the additional $3.5 billion of new automotive awards
secured year-to-date, including a breakthrough display audio
infotainment award."
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FY 2016 Key Figures - Total Company
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Three Months Ended March 31
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Nine Months Ended March 31
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Increase (Decrease)
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Increase (Decrease)
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$ millions (except per share data)
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3M FY16
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3M FY15
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Including Currency Changes
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Excluding Currency Changes1
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9M FY16
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9M FY15
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Including Currency Changes
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Excluding Currency Changes1
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Net sales
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1,628
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1,464
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11%
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12%
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5,031
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4,477
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12%
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18%
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Gross profit
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493
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418
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18%
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19%
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1,525
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1,326
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15%
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20%
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Percent of net sales
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30.3%
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28.6%
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30.3%
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29.6%
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SG&A
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358
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327
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9%
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11%
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1,099
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970
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13%
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18%
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Operating income
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135
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92
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48%
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48%
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426
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356
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20%
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23%
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Percent of net sales
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8.3%
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6.2%
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8.5%
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8.0%
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EBITDA
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186
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132
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41%
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42%
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592
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471
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26%
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30%
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Percent of net sales
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11.4%
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9.0%
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11.8%
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10.5%
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Net Income attributable to HARMAN International Industries,
Incorporated
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89
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70
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26%
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25%
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289
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270
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7%
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10%
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Diluted earnings per share
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1.22
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0.99
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23%
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22%
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3.98
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3.83
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4%
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7%
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Restructuring & non-recurring costs
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12
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13
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32
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32
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Acquisition-related items
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1
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10
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34
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15
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Non-GAAP - operational1
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Gross profit
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495
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422
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17%
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18%
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1,531
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1,318
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16%
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21%
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Percent of net sales
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30.4%
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28.8%
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30.4%
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29.4%
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SG&A
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347
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308
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13%
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14%
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1,038
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914
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14%
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18%
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Operating income
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148
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114
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30%
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30%
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492
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404
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22%
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27%
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Percent of net sales
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9.1%
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7.8%
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9.8%
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9.0%
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EBITDA
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189
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150
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26%
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27%
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611
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511
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19%
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24%
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Percent of net sales
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11.6%
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10.2%
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12.1%
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11.4%
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Net Income attributable to HARMAN International Industries,
Incorporated
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99
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87
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14%
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13%
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340
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305
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12%
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16%
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Diluted earnings per share
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1.36
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1.22
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11%
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10%
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4.69
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4.33
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8%
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12%
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Shares outstanding - diluted (in millions)
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73
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71
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73
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70
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1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.
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Summary of Operations - Gross Margin and SG&A (Non-GAAP)
Gross margin for the third quarter of fiscal year 2016 increased 160
basis points to 30.4 percent. The improvement was primarily due to the
impact of higher sales volume leveraging a more efficient fixed
production cost base and productivity initiatives.
In the third quarter of fiscal year 2016, SG&A expense as a percentage
of net sales increased 30 basis points to 21.3 percent compared to 21.0
percent in the prior year due to higher selling and marketing expenses.
2016 Guidance Update
HARMAN updated its financial outlook for fiscal 2016. The Company now
forecasts fiscal 2016 revenue of approximately $6.825 billion and
operational earnings per share of $6.20. The majority of the revenue and
EPS reduction is related to weakness in the Professional Solutions
division as well as supply constraints as a result of the recent
earthquakes in Japan.
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August 2015
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April 20161
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Revenue
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~$7.0 billion
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~$6.825 billion
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EPS2
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~$6.50
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~$6.20
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1. Includes the previously announced $0.05 reduction for the
impact of the TowerSec acquisition.
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2. Non-GAAP, excluding restructuring, non-recurring items, and
purchase accounting expenses related to acquisitions.
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Investor Call Today April 28, 2016
At 11:00 a.m. EDT today, HARMAN's management will host an analyst and
investor conference call to discuss the third quarter results. Those who
wish to participate via audio in the earnings conference call should
dial 1 (888) 224-7971 (U.S.) or +1 (303) 223-2684 (International) ten
minutes before the call and reference HARMAN, Access Code: 21809222.
In addition, HARMAN invites you to visit the Investors section of its
website at: www.harman.com
where visitors can sign-up for email alerts and conveniently download
copies of historical earnings releases and supporting slide
presentations, among other documents. The fiscal third quarter earnings
release and supporting materials were posted on the site at
approximately 8:00 a.m. EDT today.
A replay of the call will also be available following its completion at
approximately 1:00 p.m. EDT. The replay will be available through
Friday, July 29, 2016 at 1:00 p.m. EDT. To listen to the replay, dial 1
(800) 633-8284 (U.S.) or +1 (402) 977-9140 (International), Access Code:
21809222. If you need technical assistance, call the toll-free Global
Crossing Customer Care Line at 1 (800) 473-0602 (U.S.) or +1 (303)
446-4604 (International).
General Information
HARMAN (harman.com) designs and engineers connected products and
solutions for automakers, consumers, and enterprises worldwide,
including connected car systems, audio and visual products, enterprise
automation solutions; and connected services. With leading brands
including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark
Levinson® and Revel®, HARMAN is admired by audiophiles, musicians and
the entertainment venues where they perform around the world. More than
25 million automobiles on the road today are equipped with HARMAN audio
and connected car systems. The Company's software services power
billions of mobile devices and systems that are connected, integrated
and secure across all platforms, from work and home to car and mobile.
HARMAN has a workforce of approximately 29,000 people across the
Americas, Europe, and Asia and reported sales of $6.7 billion during the
12 months ended March 31, 2016. The Company's shares are traded on the
New York Stock Exchange under the symbol NYSE:HAR.
A reconciliation of the non-GAAP measures included in this press release
to the most comparable GAAP measures is provided in the tables contained
at the end of this press release. HARMAN does not intend for this
information to be considered in isolation or as a substitute for other
measures prepared in accordance with GAAP.
Forward-Looking Information
Except for historical information contained herein, the matters
discussed in this earnings presentation are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. One should not place undue reliance on these
statements. The Company bases these statements on particular assumptions
that it has made in light of its industry experience, as well as its
perception of historical trends, current market conditions, current
economic data, expected future developments and other factors that the
Company believes are appropriate under the circumstances. These
statements involve risks, uncertainties and assumptions that could cause
actual results to differ materially from those suggested in the
forward-looking statements, including but not limited to: (1) the
Company's ability to maintain profitability if there are delays in its
product launches or increased pricing pressure from its customers; (2)
the loss of one or more significant customers, the loss of a significant
platform with an automotive customer or the in-sourcing of certain
services by the Company's automotive customers; (3) fluctuations in
currency exchange rates, particularly with respect to the value of the
U.S. Dollar and the Euro; (4) fluctuations in the price and supply of
raw materials including, without limitation, petroleum, copper, steel,
aluminum, synthetic resins, rare metals and rare-earth minerals, or
shortages of materials, parts and components; (5) the inability of the
Company's suppliers to deliver products at the scheduled rate and
disruptions arising in connection therewith; (6) the Company's ability
to maintain a competitive technological advantage through innovation and
leading product designs; (7) the Company's ability to integrate
successfully its recently completed and future acquisitions; (8) the
Company's ability to attract and retain qualified senior management and
to prepare and implement an appropriate succession plan for its critical
organizational positions; (9) the Company's failure to maintain the
value of its brands and implementing a sufficient brand protection
program; and (10) other risks detailed in the Harman International
Industries, Incorporated Annual Report on Form 10-K for the fiscal year
ended June 30, 2015 and other filings made by the Company with the
Securities and Exchange Commission. The Company undertakes no obligation
to publicly update or revise any forward-looking statement except as
required by law.
This earnings release also makes reference to the Company's awarded
business or "backlog", which represents the estimated future lifetime
net sales for all customers. The Company's future awarded business does
not represent firm customer orders. The Company reports its awarded
business primarily based on written award letters. To validate these
awards, the Company uses various assumptions including global vehicle
production forecasts, customer take rates for the Company's products,
revisions to product life cycle estimates and the impact of annual price
reductions and exchange rates, among other factors. These assumptions
are updated and reported externally on an annual basis.
APPENDIX
Connected Car
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FY 2016 Key Figures - Connected Car
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Three Months Ended March 31
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Nine Months Ended March 31
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Increase (Decrease)
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Increase (Decrease)
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$ millions (except per share data)
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3M FY16
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3M FY15
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Including Currency Changes
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Excluding Currency Changes1
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9M FY16
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9M FY15
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Including Currency Changes
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Excluding Currency Changes1
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Net sales
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767
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730
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5%
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6%
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2,259
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2,153
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5%
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11%
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Gross profit
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202
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|
164
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23%
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23%
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562
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503
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12%
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17%
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Percent of net sales
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26.3%
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22.5%
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24.9%
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23.4%
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SG&A
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106
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|
91
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17%
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18%
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|
295
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|
|
280
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5%
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13%
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Operating income
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96
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|
|
74
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30%
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29%
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|
267
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|
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223
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20%
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22%
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Percent of net sales
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12.5%
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10.1%
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11.8%
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10.4%
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EBITDA
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115
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|
91
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27%
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27%
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324
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|
|
275
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18%
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21%
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Percent of net sales
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15.0%
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12.4%
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14.4%
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12.8%
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Restructuring & non-recurring costs
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2
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1
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5
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5
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|
|
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Acquisition-related items
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1
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-
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3
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-
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Non-GAAP - operational1
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Gross profit
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203
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|
|
165
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23%
|
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23%
|
|
|
566
|
|
|
507
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12%
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|
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17%
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Percent of net sales
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26.4%
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22.7%
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25.0%
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23.6%
|
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|
|
|
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SG&A
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|
104
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|
|
91
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14%
|
|
|
16%
|
|
|
291
|
|
|
279
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|
|
4%
|
|
|
12%
|
|
Operating income
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|
|
98
|
|
|
74
|
|
|
32%
|
|
|
31%
|
|
|
275
|
|
|
228
|
|
|
20%
|
|
|
23%
|
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Percent of net sales
|
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|
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12.8%
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|
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10.2%
|
|
|
|
|
|
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|
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12.2%
|
|
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10.6%
|
|
|
|
|
|
|
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EBITDA
|
|
|
|
116
|
|
|
90
|
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29%
|
|
|
28%
|
|
|
326
|
|
|
276
|
|
|
18%
|
|
|
21%
|
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Percent of net sales
|
|
|
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15.2%
|
|
|
12.3%
|
|
|
|
|
|
|
|
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14.4%
|
|
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12.8%
|
|
|
|
|
|
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1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.
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|
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Net sales in the third quarter of fiscal 2016 were $767 million, an
increase of five percent (six percent ex-FX) compared to the prior year.
The increase in net sales was due to higher take rates.
On a non-GAAP basis in the third quarter of fiscal 2016, gross margin
increased 370 basis points to 26.4 percent compared to the prior year
primarily due to the impact of higher sales volume leveraging a more
efficient fixed production cost base, lower warranty costs and supplier
productivity. SG&A expenses as a percent of sales increased 110 basis
points to 13.6 percent compared to the prior year due to higher
information technology costs to support future business.
Connected Car Highlights
HARMAN continues to expand and diversify its Connected Car offerings
with global automakers. The Company secured embedded infotainment
business with a new North American customer to provide a display audio
solution across multiple car lines. HARMAN won a global expansion award
from a European OEM to support higher take rates, as well a platform
refresh for 2017 vehicles. In addition, the Company received a follow-on
award to expand the next generation integrated telematics program for
Daimler.
HARMAN launched embedded infotainment solutions in a number of new
vehicles, including the Audi Q2 crossover, the Seat (VW) Alteca SUV and
Maserati (FCA) Levante supercar. In Japan, HARMAN launched an embedded
infotainment system featuring Apple CarPlay on the new Suzuki Ignis. The
Company also launched model refreshes and line extensions featuring its
embedded infotainment solutions in the Porsche Macan, 911, and 718
Boxster, as well as the Mercedes Benz C-class convertible, GLC Coupe and
AMG GLC43.
HARMAN continued to reinforce its leadership in technology innovations
that advance connectivity, driver safety, and autonomous driving. During
the Geneva Motor Show, HARMAN demonstrated its full suite of connected
car technologies through the LIVS (Life-enhancing Intelligent Vehicle
System) automotive compute platform. The Company also expanded its
partnership with NXP to add V2X support, which allows ADAS alerts to be
delivered to vehicles from other cars and surrounding infrastructure to
warn drivers about potentially hazardous traffic situations.
In March, HARMAN completed the acquisition of TowerSec, a leading global
provider of automotive cybersecurity solutions. TowerSec's products,
featuring intrusion detection and prevention systems as well as secure
telematics offerings, will be integrated into HARMAN's "5+1"
cybersecurity framework.
Lifestyle Audio
|
|
|
|
|
|
|
|
|
|
|
FY 2016 Key Figures - Lifestyle Audio
|
|
|
|
Three Months Ended March 31
|
|
|
|
Nine Months Ended March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ millions (except per share data)
|
|
|
|
3M FY16
|
|
|
|
3M FY15
|
|
|
|
Including Currency Changes
|
|
|
|
Excluding Currency Changes1
|
|
|
|
9M FY16
|
|
|
|
9M FY15
|
|
|
|
Including Currency Changes
|
|
|
|
Excluding Currency Changes1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
473
|
|
|
|
424
|
|
|
|
11%
|
|
|
|
12%
|
|
|
|
1,560
|
|
|
|
1,350
|
|
|
|
16%
|
|
|
|
20%
|
|
Gross profit
|
|
|
|
167
|
|
|
|
133
|
|
|
|
26%
|
|
|
|
27%
|
|
|
|
522
|
|
|
|
442
|
|
|
|
18%
|
|
|
|
22%
|
|
Percent of net sales
|
|
|
|
35.4%
|
|
|
|
31.3%
|
|
|
|
|
|
|
|
|
|
|
|
33.5%
|
|
|
|
32.8%
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
107
|
|
|
|
88
|
|
|
|
21%
|
|
|
|
22%
|
|
|
|
331
|
|
|
|
294
|
|
|
|
13%
|
|
|
|
18%
|
|
Operating income
|
|
|
|
61
|
|
|
|
45
|
|
|
|
36%
|
|
|
|
37%
|
|
|
|
191
|
|
|
|
148
|
|
|
|
29%
|
|
|
|
30%
|
|
Percent of net sales
|
|
|
|
12.8%
|
|
|
|
10.5%
|
|
|
|
|
|
|
|
|
|
|
|
12.3%
|
|
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
74
|
|
|
|
56
|
|
|
|
33%
|
|
|
|
34%
|
|
|
|
232
|
|
|
|
178
|
|
|
|
30%
|
|
|
|
32%
|
|
Percent of net sales
|
|
|
|
15.7%
|
|
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
|
14.9%
|
|
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
Restructuring & non-recurring costs
|
|
|
|
1
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
|
2
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
Non-GAAP - operational1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
168
|
|
|
|
135
|
|
|
|
24%
|
|
|
|
25%
|
|
|
|
523
|
|
|
|
434
|
|
|
|
21%
|
|
|
|
25%
|
|
Percent of net sales
|
|
|
|
35.5%
|
|
|
|
31.8%
|
|
|
|
|
|
|
|
|
|
|
|
33.5%
|
|
|
|
32.1%
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
104
|
|
|
|
83
|
|
|
|
26%
|
|
|
|
27%
|
|
|
|
314
|
|
|
|
262
|
|
|
|
20%
|
|
|
|
24%
|
|
Operating income
|
|
|
|
64
|
|
|
|
52
|
|
|
|
23%
|
|
|
|
23%
|
|
|
|
210
|
|
|
|
172
|
|
|
|
22%
|
|
|
|
26%
|
|
Percent of net sales
|
|
|
|
13.5%
|
|
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
13.4%
|
|
|
|
12.7%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
72
|
|
|
|
61
|
|
|
|
18%
|
|
|
|
19%
|
|
|
|
235
|
|
|
|
199
|
|
|
|
18%
|
|
|
|
21%
|
|
Percent of net sales
|
|
|
|
15.3%
|
|
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
15.1%
|
|
|
|
14.7%
|
|
|
|
|
|
|
|
|
|
1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales in the third quarter of fiscal 2016 were $473 million, an
increase of 11 percent (12 percent ex-FX) compared to the prior year
primarily due to the acquisition of Bang & Olufsen Automotive, higher
car audio take rates and higher consumer audio sales.
On a non-GAAP basis in the third quarter of fiscal 2016, gross margin
improved by 370 basis points to 35.5 percent compared to the prior year,
primarily due to improved operating leverage as a result of higher sales
volume, the acquisition of Bang & Olufsen Automotive and supplier
productivity. SG&A expenses as a percentage of sales increased 250 basis
points to 22.0 percent primarily due to higher research and development
to support new car audio awards.
Lifestyle Audio Highlights
HARMAN won new business awards with Lincoln, Toyota and Subaru. During
the quarter, the Company launched branded car audio solutions in the
Maserati Levante (Harman Kardon / Bowers & Wilkins), the Lincoln MKZ
(Revel), the new Alfa Romeo Giulia (Harman Kardon) and the Ferrari GTC 4
Lusso (JBL Pro).
HARMAN inaugurated a new global development center in Suzhou, China. The
center is now the Company's largest comprehensive research and
development center for car audio products worldwide.
The Company entered into a multi-year agreement with Lufthansa to supply
award-winning AKG branded active noise cancelling headphones for all
business class seats beginning in September 2016. This quarter, HARMAN's
Consumer Audio products were again recognized for their design and
innovation, winning a record 23 Red Dot awards.
Professional Solutions
|
|
|
|
|
|
|
|
|
|
|
FY 2016 Key Figures - Professional Solutions
|
|
|
|
Three Months Ended March 31
|
|
|
|
Nine Months Ended March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ millions (except per share data)
|
|
|
|
3M FY16
|
|
|
|
3M FY15
|
|
|
|
Including Currency Changes
|
|
|
|
Excluding Currency Changes1
|
|
|
|
9M FY16
|
|
|
|
9M FY15
|
|
|
|
Including Currency Changes
|
|
|
|
Excluding Currency Changes1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
232
|
|
|
|
242
|
|
|
|
(4%)
|
|
|
|
(3%)
|
|
|
|
728
|
|
|
|
764
|
|
|
|
(5%)
|
|
|
|
(2%)
|
|
Gross profit
|
|
|
|
78
|
|
|
|
100
|
|
|
|
(23%)
|
|
|
|
(22%)
|
|
|
|
283
|
|
|
|
315
|
|
|
|
(10%)
|
|
|
|
(8%)
|
|
Percent of net sales
|
|
|
|
33.5%
|
|
|
|
41.5%
|
|
|
|
|
|
|
|
|
|
|
|
38.9%
|
|
|
|
41.3%
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
75
|
|
|
|
84
|
|
|
|
(11%)
|
|
|
|
(10%)
|
|
|
|
231
|
|
|
|
240
|
|
|
|
(4%)
|
|
|
|
(1%)
|
|
Operating income
|
|
|
|
3
|
|
|
|
16
|
|
|
|
(83%)
|
|
|
|
(83%)
|
|
|
|
52
|
|
|
|
75
|
|
|
|
(30%)
|
|
|
|
(28%)
|
|
Percent of net sales
|
|
|
|
1.1%
|
|
|
|
6.6%
|
|
|
|
|
|
|
|
|
|
|
|
7.2%
|
|
|
|
9.8%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
12
|
|
|
|
24
|
|
|
|
(52%)
|
|
|
|
(51%)
|
|
|
|
79
|
|
|
|
100
|
|
|
|
(21%)
|
|
|
|
(19%)
|
|
Percent of net sales
|
|
|
|
5.0%
|
|
|
|
10.0%
|
|
|
|
|
|
|
|
|
|
|
|
10.8%
|
|
|
|
13.1%
|
|
|
|
|
|
|
|
|
|
Restructuring & non-recurring costs
|
|
|
|
4
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
Non-GAAP - operational1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
78
|
|
|
|
101
|
|
|
|
(22%)
|
|
|
|
(21%)
|
|
|
|
284
|
|
|
|
312
|
|
|
|
(9%)
|
|
|
|
(6%)
|
|
Percent of net sales
|
|
|
|
33.7%
|
|
|
|
41.5%
|
|
|
|
|
|
|
|
|
|
|
|
39.0%
|
|
|
|
40.8%
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
71
|
|
|
|
79
|
|
|
|
(10%)
|
|
|
|
(9%)
|
|
|
|
220
|
|
|
|
229
|
|
|
|
(4%)
|
|
|
|
(1%)
|
|
Operating income
|
|
|
|
7
|
|
|
|
22
|
|
|
|
(67%)
|
|
|
|
(67%)
|
|
|
|
64
|
|
|
|
83
|
|
|
|
(23%)
|
|
|
|
(21%)
|
|
Percent of net sales
|
|
|
|
3.1%
|
|
|
|
9.0%
|
|
|
|
|
|
|
|
|
|
|
|
8.7%
|
|
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
15
|
|
|
|
30
|
|
|
|
(48%)
|
|
|
|
(48%)
|
|
|
|
88
|
|
|
|
108
|
|
|
|
(18%)
|
|
|
|
(16%)
|
|
Percent of net sales
|
|
|
|
6.6%
|
|
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
12.1%
|
|
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.
|
|
|
Net sales in the third quarter of fiscal 2016 were $232 million, a
decrease of four percent (a decrease of three percent ex-FX) compared to
the prior year. The decrease in net sales is primarily due to lower
demand in Brazil and certain European markets, as well as channel
rationalization to support a solutions-based go-to-market structure.
On a non-GAAP basis in the third quarter of fiscal 2016, gross margin
decreased 780 basis points to 33.7 percent, driven by discounts on older
inventory and to partially offset foreign currency impacts. In addition,
the Company incurred incremental costs associated with migrating
manufacturing to Hungary and reduced operating leverage as a result of
lower sales. SG&A expense as a percentage of sales decreased 190 basis
points to 30.6 percent compared to 32.5 percent in the prior year,
driven by tighter expense controls.
Professional Solutions Highlights
HARMAN's entertainment and enterprise solutions were selected by leading
system integrators and installers around the world. Notable
installations included Norwegian Cruise Line's The Pride of America
and Raymond James Stadium in Tampa Bay. The Company's enterprise
solutions were installed in meeting rooms across the globe for customers
including eBay and Societe Generale. The Company's solutions also
powered a wide range of high-profile special events, music festivals and
televised award shows, including the Super Bowl 50 Halftime Show and the
58th Annual Grammy Awards.
Connected Services
|
|
|
|
|
|
|
|
|
|
|
FY 2016 Key Figures - Connected Services
|
|
|
|
Three Months Ended March 31
|
|
|
|
Nine Months Ended March 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ millions (except per share data)
|
|
|
|
3M FY16
|
|
|
|
3M FY15
|
|
|
|
Including Currency Changes
|
|
|
|
Excluding Currency Changes1
|
|
|
|
9M FY16
|
|
|
|
9M FY15
|
|
|
|
Including Currency Changes
|
|
|
|
Excluding Currency Changes1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
166
|
|
|
|
67
|
|
|
|
147%
|
|
|
|
159%
|
|
|
|
509
|
|
|
|
208
|
|
|
|
144%
|
|
|
|
177%
|
|
Gross profit
|
|
|
|
48
|
|
|
|
21
|
|
|
|
131%
|
|
|
|
138%
|
|
|
|
162
|
|
|
|
63
|
|
|
|
155%
|
|
|
|
184%
|
|
Percent of net sales
|
|
|
|
28.7%
|
|
|
|
30.7%
|
|
|
|
|
|
|
|
|
|
|
|
31.7%
|
|
|
|
30.4%
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
36
|
|
|
|
14
|
|
|
|
150%
|
|
|
|
157%
|
|
|
|
140
|
|
|
|
36
|
|
|
|
283%
|
|
|
|
314%
|
|
Operating income
|
|
|
|
12
|
|
|
|
6
|
|
|
|
87%
|
|
|
|
96%
|
|
|
|
22
|
|
|
|
27
|
|
|
|
(19%)
|
|
|
|
(6%)
|
|
Percent of net sales
|
|
|
|
7.1%
|
|
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
4.3%
|
|
|
|
12.9%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
18
|
|
|
|
8
|
|
|
|
135%
|
|
|
|
146%
|
|
|
|
57
|
|
|
|
29
|
|
|
|
94%
|
|
|
|
125%
|
|
Percent of net sales
|
|
|
|
11.0%
|
|
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
11.2%
|
|
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
Restructuring & non-recurring costs
|
|
|
|
3
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
|
(1)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Non-GAAP - operational1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
48
|
|
|
|
21
|
|
|
|
131%
|
|
|
|
138%
|
|
|
|
162
|
|
|
|
63
|
|
|
|
155%
|
|
|
|
184%
|
|
Percent of net sales
|
|
|
|
28.7%
|
|
|
|
30.7%
|
|
|
|
|
|
|
|
|
|
|
|
31.7%
|
|
|
|
30.4%
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
|
34
|
|
|
|
14
|
|
|
|
135%
|
|
|
|
142%
|
|
|
|
109
|
|
|
|
36
|
|
|
|
199%
|
|
|
|
224%
|
|
Operating income
|
|
|
|
14
|
|
|
|
6
|
|
|
|
121%
|
|
|
|
131%
|
|
|
|
52
|
|
|
|
27
|
|
|
|
94%
|
|
|
|
125%
|
|
Percent of net sales
|
|
|
|
8.4%
|
|
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
10.3%
|
|
|
|
12.9%
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
18
|
|
|
|
8
|
|
|
|
132%
|
|
|
|
143%
|
|
|
|
63
|
|
|
|
29
|
|
|
|
115%
|
|
|
|
148%
|
|
Percent of net sales
|
|
|
|
10.9%
|
|
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
12.4%
|
|
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.
|
|
|
Net sales in the third quarter of fiscal 2016 were $166 million compared
to $67 million in the prior year, driven primarily by the expansion of
the Company's services portfolio. On a non-GAAP basis, gross margin was
28.7 percent and SG&A expenses as a percentage of sales were 20.3
percent.
Connected Services Highlights
HARMAN secured business to provide product development services for
Blackberry, British Telecom, Intel and Sony, among others. In addition,
the Company continued to capitalize on its industry-leading over-the-air
(OTA) software update technology, winning a cross-car line award with a
global automaker. Over the air updates are the foundation technology for
the connected car, allowing automakers to quickly enable new features,
fix bugs, upgrade firmware, and offer a rich suite of end-to-end
services.
In conjunction with the HARMAN Service Delivery Platform, the Company
introduced its Automotive Service Provider Program. The program
facilitates the integration of a variety of enterprise and
vehicle-centric applications and services from leading providers. HARMAN
added 10 new data, workflow and content service providers for its open
platform, which enables automakers to provide a wide range of
context-based services, including real-time traffic, location based
services, shopping, parking, streaming audio and live news.
HARMAN also received a number of industry accolades for its products and
services. Respected advisory firm Zinnov recognized the Company for the
second time, naming HARMAN a top engineering services provider. HARMAN
was placed in the "Leadership Zone" for the Information Services, New
Media and Gaming categories. HfS Research also honored HARMAN with a
place in its "Winner's Circle", recognizing the Company's excellence in
software product engineering services.
Other (Corporate)
|
|
|
|
|
|
|
|
|
|
|
|
FY 2016 Key Figures - Other
|
|
|
Three Months Ended March 31
|
|
|
Nine Months Ended March 31
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
$ millions (except per share data)
|
|
|
3M FY16
|
|
|
3M FY15
|
|
|
Including Currency Changes
|
|
|
Excluding Currency Changes1
|
|
|
9M FY16
|
|
|
9M FY15
|
|
|
Including Currency Changes
|
|
|
Excluding Currency Changes1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
36
|
|
|
49
|
|
|
(28%)
|
|
|
(28%)
|
|
|
107
|
|
|
119
|
|
|
(10%)
|
|
|
(10%)
|
|
Restructuring & non-recurring costs
|
|
|
1
|
|
|
-
|
|
|
|
|
|
|
|
|
1
|
|
|
-
|
|
|
|
|
|
|
|
Acquisition-related items
|
|
|
-
|
|
|
9
|
|
|
|
|
|
|
|
|
(2)
|
|
|
12
|
|
|
|
|
|
|
|
Non-GAAP - operational1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
|
|
35
|
|
|
40
|
|
|
(12%)
|
|
|
(12%)
|
|
|
108
|
|
|
107
|
|
|
1%
|
|
|
1%
|
|
1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Corporate) SG&A expenses include compensation, benefit and
occupancy costs for corporate employees, new technology innovation and
expenses associated with the Company's brand identity campaign. On a
non-GAAP basis, Corporate SG&A as a percentage of total Company net
sales decreased 60 basis points to 2.2 percent.
|
|
|
HARMAN International Industries, Incorporated
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except earnings per share data; unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
|
|
Nine Months Ended
March 31,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
Net sales
|
|
|
|
$1,628,082
|
|
|
|
$1,464,193
|
|
|
|
$5,031,127
|
|
|
|
$4,476,664
|
|
Cost of sales
|
|
|
|
1,135,215
|
|
|
|
1,046,063
|
|
|
|
3,505,770
|
|
|
|
3,150,736
|
|
Gross profit
|
|
|
|
492,867
|
|
|
|
418,130
|
|
|
|
1,525,357
|
|
|
|
1,325,928
|
|
Selling, general and administrative expenses
|
|
|
|
357,514
|
|
|
|
326,623
|
|
|
|
1,099,384
|
|
|
|
969,881
|
|
Operating income
|
|
|
|
135,353
|
|
|
|
91,507
|
|
|
|
425,973
|
|
|
|
356,047
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
8,633
|
|
|
|
3,001
|
|
|
|
24,558
|
|
|
|
7,861
|
|
Foreign exchange losses (gains), net
|
|
|
|
3,570
|
|
|
|
(3,406)
|
|
|
|
2,612
|
|
|
|
(4,366)
|
|
Miscellaneous, net
|
|
|
|
2,912
|
|
|
|
2,294
|
|
|
|
11,262
|
|
|
|
6,932
|
|
Income before income taxes
|
|
|
|
120,238
|
|
|
|
89,618
|
|
|
|
387,541
|
|
|
|
345,620
|
|
Income tax expense, net
|
|
|
|
31,419
|
|
|
|
19,346
|
|
|
|
98,019
|
|
|
|
76,250
|
|
Equity in net loss of unconsolidated subsidiaries
|
|
|
|
-
|
|
|
|
23
|
|
|
|
-
|
|
|
|
23
|
|
Net income
|
|
|
|
88,819
|
|
|
|
70,249
|
|
|
|
289,522
|
|
|
|
269,347
|
|
Net (loss) income attributable to non-controlling interest
|
|
|
|
(5)
|
|
|
|
(46)
|
|
|
|
702
|
|
|
|
(156)
|
|
Net income attributable to HARMAN International Industries,
Incorporated
|
|
|
|
88,824
|
|
|
|
70,295
|
|
|
|
288,820
|
|
|
|
269,503
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$1.23
|
|
|
|
$1.00
|
|
|
|
$4.01
|
|
|
|
$3.87
|
|
Diluted
|
|
|
|
$1.22
|
|
|
|
$0.99
|
|
|
|
$3.98
|
|
|
|
$3.83
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
72,020
|
|
|
|
69,946
|
|
|
|
72,046
|
|
|
|
69,557
|
|
Diluted
|
|
|
|
72,642
|
|
|
|
70,795
|
|
|
|
72,524
|
|
|
|
70,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands; unaudited)
|
|
|
|
March 31,
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$360,420
|
|
|
|
$649,513
|
|
Receivables, net
|
|
|
|
1,087,327
|
|
|
|
1,024,139
|
|
Inventories
|
|
|
|
840,216
|
|
|
|
693,574
|
|
Other current assets
|
|
|
|
502,943
|
|
|
|
461,366
|
|
Total current assets
|
|
|
|
2,790,906
|
|
|
|
2,828,592
|
|
Property, plant and equipment, net
|
|
|
|
576,788
|
|
|
|
552,421
|
|
Intangible assets, net
|
|
|
|
496,289
|
|
|
|
669,667
|
|
Goodwill
|
|
|
|
1,426,202
|
|
|
|
1,287,180
|
|
Deferred tax assets, long-term, net
|
|
|
|
116,212
|
|
|
|
100,032
|
|
Other assets
|
|
|
|
382,000
|
|
|
|
428,008
|
|
Total assets
|
|
|
|
$5,788,397
|
|
|
|
$5,865,900
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$4,227
|
|
|
|
$4,550
|
|
Short-term debt
|
|
|
|
812
|
|
|
|
1,021
|
|
Accounts payable
|
|
|
|
781,962
|
|
|
|
918,910
|
|
Accrued liabilities
|
|
|
|
673,371
|
|
|
|
907,024
|
|
Accrued warranties
|
|
|
|
173,479
|
|
|
|
163,331
|
|
Income taxes payable
|
|
|
|
29,022
|
|
|
|
76,131
|
|
Total current liabilities
|
|
|
|
1,662,873
|
|
|
|
2,070,967
|
|
Borrowings under revolving credit facility
|
|
|
|
483,000
|
|
|
|
283,125
|
|
Long-term debt
|
|
|
|
803,809
|
|
|
|
797,542
|
|
Pension liability
|
|
|
|
189,259
|
|
|
|
186,662
|
|
Other non-current liabilities
|
|
|
|
174,865
|
|
|
|
134,778
|
|
Total liabilities
|
|
|
|
3,313,806
|
|
|
|
3,473,074
|
|
Total HARMAN International Industries, Incorporated shareholders'
equity
|
|
|
|
2,474,573
|
|
|
|
2,374,613
|
|
Noncontrolling interest
|
|
|
|
18
|
|
|
|
18,213
|
|
Total equity
|
|
|
|
2,474,591
|
|
|
|
2,392,826
|
|
Total liabilities and equity
|
|
|
|
$5,788,397
|
|
|
|
$5,865,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Consolidated Statement of Income
Reconciliation of GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
(In thousands except earnings per share data; unaudited)
|
|
|
|
Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
Net sales
|
|
|
|
$1,628,082
|
|
|
|
$0
|
|
|
|
$1,628,082
|
|
Cost of sales
|
|
|
|
1,135,215
|
|
|
|
(2,213)a
|
|
|
|
1,133,002
|
|
Gross profit
|
|
|
|
492,867
|
|
|
|
2,213
|
|
|
|
495,080
|
|
Selling, general and administrative expenses
|
|
|
|
357,514
|
|
|
|
(10,666)b
|
|
|
|
346,848
|
|
Operating income
|
|
|
|
135,353
|
|
|
|
12,879
|
|
|
|
148,232
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
8,633
|
|
|
|
-
|
|
|
|
8,633
|
|
Foreign exchange losses (gains), net
|
|
|
|
3,570
|
|
|
|
(1)
|
|
|
|
3,569
|
|
Miscellaneous, net
|
|
|
|
2,912
|
|
|
|
(408)
|
|
|
|
2,504
|
|
Income before income taxes
|
|
|
|
120,238
|
|
|
|
13,288
|
|
|
|
133,526
|
|
Income tax expense, net
|
|
|
|
31,419
|
|
|
|
3,482c
|
|
|
|
34,901
|
|
Net income
|
|
|
|
88,819
|
|
|
|
9,806
|
|
|
|
98,625
|
|
Net income attributable to non-controlling interest
|
|
|
|
(5)
|
|
|
|
-
|
|
|
|
(5)
|
|
Net income attributable to HARMAN International Industries,
Incorporated
|
|
|
|
$88,824
|
|
|
|
$9,806
|
|
|
|
$98,630
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$1.23
|
|
|
|
$0.14
|
|
|
|
$1.37
|
|
Diluted
|
|
|
|
$1.22
|
|
|
|
$0.13
|
|
|
|
$1.36
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
72,020
|
|
|
|
|
|
|
|
72,020
|
|
Diluted
|
|
|
|
72,642
|
|
|
|
|
|
|
|
72,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Restructuring expense in Cost of Sales was $2.2 million for
projects to increase manufacturing productivity.
|
|
b) Restructuring expense in SG&A was $3.4 million primarily due to
projects to increase productivity in engineering, manufacturing
and administrative functions; other non-recurring expense included
in SG&A was $7.3 million. Acquisition-related expenses were $1.2
million, including $7.9 million of intangible amortization
expenses.
|
|
c) The tax benefits are calculated by multiplying the actual
restructuring / non-recurring charge in each individual country by
the discrete tax rate within that specific country.
|
|
|
|
HARMAN has provided a reconciliation of non-GAAP measures in
order to provide the users of these consolidated financial
statements with a better understanding of its non-recurring
charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.
These measurements should be considered in addition to, but not as
a substitute for, the information contained in HARMAN's
consolidated financial statements prepared in accordance with US
GAAP.
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Consolidated Statement of Income
Reconciliation of GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
(In thousands except earnings per share data; unaudited)
|
|
|
|
Nine Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
Net sales
|
|
|
|
$5,031,127
|
|
|
|
$0
|
|
|
|
$5,031,127
|
|
Cost of sales
|
|
|
|
3,505,770
|
|
|
|
(5,214)a
|
|
|
|
3,500,556
|
|
Gross profit
|
|
|
|
1,525,357
|
|
|
|
5,214
|
|
|
|
1,530,571
|
|
Selling, general and administrative expenses
|
|
|
|
1,099,384
|
|
|
|
(60,963)b
|
|
|
|
1,038,421
|
|
Operating income
|
|
|
|
425,973
|
|
|
|
66,177
|
|
|
|
492,150
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
24,558
|
|
|
|
-
|
|
|
|
24,558
|
|
Foreign exchange losses (gains), net
|
|
|
|
2,612
|
|
|
|
(1)
|
|
|
|
2,611
|
|
Miscellaneous, net
|
|
|
|
11,262
|
|
|
|
(3,545)
|
|
|
|
7,717
|
|
Income before income taxes
|
|
|
|
387,541
|
|
|
|
69,723
|
|
|
|
457,264
|
|
Income tax expense, net
|
|
|
|
98,019
|
|
|
|
18,668c
|
|
|
|
116,687
|
|
Equity in net loss of unconsolidated subsidiaries
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net income
|
|
|
|
289,522
|
|
|
|
51,055
|
|
|
|
340,577
|
|
Net income attributable to non-controlling interest
|
|
|
|
702
|
|
|
|
-
|
|
|
|
702
|
|
Net income attributable to HARMAN International Industries,
Incorporated
|
|
|
|
$288,820
|
|
|
|
$51,055
|
|
|
|
$339,875
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$4.01
|
|
|
|
$0.71
|
|
|
|
$4.72
|
|
Diluted
|
|
|
|
$3.98
|
|
|
|
$0.70
|
|
|
|
$4.69
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
72,046
|
|
|
|
|
|
|
|
72,046
|
|
Diluted
|
|
|
|
72,524
|
|
|
|
|
|
|
|
72,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Restructuring expense in Cost of Sales was $5.2 million for
projects to increase manufacturing productivity.
|
|
b) Restructuring expense in SG&A was $6.5 million primarily due to
projects to increase productivity in engineering, manufacturing
and administrative functions; other non-recurring expense included
in SG&A was $54.5 million. Acquisition-related expenses were $34.4
million, including $41.2 million of intangible amortization
expenses.
|
|
c) The tax benefits are calculated by multiplying the actual
restructuring / non-recurring charge in each individual country by
the discrete tax rate within that specific country.
|
|
|
|
HARMAN has provided a reconciliation of non-GAAP measures in
order to provide the users of these consolidated financial
statements with a better understanding of its non-recurring
charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.
These measurements should be considered in addition to, but not as
a substitute for, the information contained in HARMAN's
consolidated financial statements prepared in accordance with US
GAAP.
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Consolidated Statement of Income
Reconciliation of GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
(In thousands except earnings per share data; unaudited)
|
|
|
|
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
Net sales
|
|
|
|
$1,464,193
|
|
|
|
$0
|
|
|
|
$1,464,193
|
|
Cost of sales
|
|
|
|
1,046,063
|
|
|
|
(3,599)a
|
|
|
|
1,042,464
|
|
Gross profit
|
|
|
|
418,130
|
|
|
|
3,599
|
|
|
|
421,729
|
|
Selling, general and administrative expenses
|
|
|
|
326,623
|
|
|
|
(18,999)b
|
|
|
|
307,624
|
|
Operating income
|
|
|
|
91,507
|
|
|
|
22,598
|
|
|
|
114,105
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
3,001
|
|
|
|
-
|
|
|
|
3,001
|
|
Foreign exchange losses (gains), net
|
|
|
|
(3,406)
|
|
|
|
-
|
|
|
|
(3,406)
|
|
Miscellaneous, net
|
|
|
|
2,294
|
|
|
|
-
|
|
|
|
2,294
|
|
Income before income taxes
|
|
|
|
89,618
|
|
|
|
22,598
|
|
|
|
112,216
|
|
Income tax expense, net
|
|
|
|
19,346
|
|
|
|
6,170c
|
|
|
|
25,516
|
|
Equity in loss of unconsolidated subsidiary
|
|
|
|
23
|
|
|
|
-
|
|
|
|
23
|
|
Net income
|
|
|
|
70,249
|
|
|
|
16,428
|
|
|
|
86,677
|
|
Net income attributable to non-controlling interest
|
|
|
|
(46)
|
|
|
|
-
|
|
|
|
(46)
|
|
Net income attributable to HARMAN International Industries,
Incorporated
|
|
|
|
$70,295
|
|
|
|
$16,428
|
|
|
|
$86,723
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$1.00
|
|
|
|
$0.23
|
|
|
|
$1.24
|
|
Diluted
|
|
|
|
$0.99
|
|
|
|
$0.23
|
|
|
|
$1.22
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
69,946
|
|
|
|
|
|
|
|
69,946
|
|
Diluted
|
|
|
|
70,795
|
|
|
|
|
|
|
|
70,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Restructuring expense in Cost of Sales was $3.6 million for
projects to increase manufacturing productivity.
|
|
b) Restructuring expense in SG&A was $11.2 million primarily due
to projects to increase productivity in engineering, manufacturing
and administrative functions; other non-recurring expense included
in SG&A was $7.8 million including M&A deal related expenses.
|
|
c) The tax benefits are calculated by multiplying the actual
restructuring / non-recurring charge in each individual
country by the discrete tax rate within that specific country.
|
|
|
|
HARMAN has provided a reconciliation of non-GAAP measures in
order to provide the users of these consolidated financial
statements with a better understanding of its non-recurring
charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.
These measurements should be considered in addition to, but not as
a substitute for, the information contained in HARMAN's
consolidated financial statements prepared in accordance with US
GAAP.
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Consolidated Statement of Income
Reconciliation of GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
(In thousands except earnings per share data; unaudited)
|
|
|
|
Nine Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
Net sales
|
|
|
|
$4,476,664
|
|
|
|
$0
|
|
|
|
$4,476,664
|
|
Cost of sales
|
|
|
|
3,150,736
|
|
|
|
8,014
|
|
|
|
3,158,750
|
|
Gross profit
|
|
|
|
1,325,928
|
|
|
|
(8,014)a
|
|
|
|
1,317,914
|
|
Selling, general and administrative expenses
|
|
|
|
969,881
|
|
|
|
(55,966)b
|
|
|
|
913,915
|
|
Operating income
|
|
|
|
356,047
|
|
|
|
47,952
|
|
|
|
403,999
|
|
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
7,861
|
|
|
|
-
|
|
|
|
7,861
|
|
Foreign exchange losses (gains), net
|
|
|
|
(4,366)
|
|
|
|
-
|
|
|
|
(4,366)
|
|
Miscellaneous, net
|
|
|
|
6,932
|
|
|
|
-
|
|
|
|
6,932
|
|
Income before income taxes
|
|
|
|
345,620
|
|
|
|
47,952
|
|
|
|
393,572
|
|
Income tax expense, net
|
|
|
|
76,250
|
|
|
|
12,799c
|
|
|
|
89,049
|
|
Equity in net loss of unconsolidated subsidiaries
|
|
|
|
23
|
|
|
|
-
|
|
|
|
23
|
|
Net income
|
|
|
|
269,347
|
|
|
|
35,153
|
|
|
|
304,500
|
|
Net income attributable to non-controlling interest
|
|
|
|
(156)
|
|
|
|
-
|
|
|
|
(156)
|
|
Net income attributable to HARMAN International Industries,
Incorporated
|
|
|
|
$269,503
|
|
|
|
$35,153
|
|
|
|
$304,656
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$3.87
|
|
|
|
$0.51
|
|
|
|
$4.38
|
|
Diluted
|
|
|
|
$3.83
|
|
|
|
$0.50
|
|
|
|
$4.33
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
69,557
|
|
|
|
|
|
|
|
69,557
|
|
Diluted
|
|
|
|
70,322
|
|
|
|
|
|
|
|
70,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Restructuring expense in Cost of Sales was $7.9 million for
projects to increase manufacturing productivity, offset by a
$15.9M accrual reversal for a US Customs / NAFTA related exposure.
|
|
b) Restructuring expense in SG&A was $38.9 million primarily due
to projects to increase productivity in engineering and
administrative functions. Other non-recurring expense includes in
SG&A was $17.1M including acquisition-related expenses.
|
|
c) The tax benefits are calculated by multiplying the actual
restructuring / non-recurring charge in each individual country by
the statutory tax rate within that specific country.
|
|
|
|
HARMAN has provided a reconciliation of non-GAAP measures in
order to provide the users of these consolidated financial
statements with a better understanding of its non-recurring
charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.
These measurements should be considered in addition to, but not as
a substitute for, the information contained in HARMAN's
consolidated financial statements prepared in accordance with US
GAAP.
|
|
|
|
HARMAN International Industries, Incorporated
Selected Financial Data
Reconciliation of GAAP to Non-GAAP Results
Foreign Currency Translation Impact
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands; unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
|
|
Increase / (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
Net sales - nominal currency
|
|
|
|
$1,628,082
|
|
|
|
$1,464,193
|
|
|
|
11%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(15,917)
|
|
|
|
|
|
Net sales - local currency
|
|
|
|
$1,628,082
|
|
|
|
$1,448,276
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - nominal currency
|
|
|
|
$492,867
|
|
|
|
$418,130
|
|
|
|
18%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(3,254)
|
|
|
|
|
|
Gross profit - local currency
|
|
|
|
$492,867
|
|
|
|
$414,876
|
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A - nominal currency
|
|
|
|
$357,514
|
|
|
|
$326,623
|
|
|
|
9%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(3,127)
|
|
|
|
|
|
SG&A - local currency
|
|
|
|
$357,514
|
|
|
|
$323,496
|
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income - nominal currency
|
|
|
|
$135,353
|
|
|
|
$91,507
|
|
|
|
48%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(127)
|
|
|
|
|
|
Operating income - local currency
|
|
|
|
$135,353
|
|
|
|
$91,380
|
|
|
|
48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - nominal currency
|
|
|
|
$88,824
|
|
|
|
$70,295
|
|
|
|
26%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
825
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - local currency
|
|
|
|
$88,824
|
|
|
|
$71,120
|
|
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impact of restating prior year results at current year foreign
exchange rates.
|
|
|
|
HARMAN has provided a reconciliation of the non-GAAP measures
in the table above to provide the users of these consolidated
financial statements with a better understanding of the Company's
performance. Because changes in currency exchange rates affect its
reported financial results, the Company shows the rates of change
both including and excluding the effect of these changes in
exchange rates. The Company encourages readers of its financial
statements to evaluate its financial performance excluding the
impact of foreign currency translation. These non-GAAP measures
are not measurements under accounting principles generally
accepted in the United States. This measurement should be
considered in addition to, but not as a substitute for, the
information contained in HARMAN's consolidated financial
statements prepared in accordance with US GAAP.
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Selected Financial Data
Reconciliation of Non-GAAP Results
Foreign Currency Translation Impact
|
|
|
|
|
|
|
|
|
|
|
|
EXCLUDING restructuring and non-recurring charges
(In thousands; unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
|
|
Increase / (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
Net sales - nominal currency
|
|
|
|
$1,628,082
|
|
|
|
$1,464,193
|
|
|
|
11%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(15,917)
|
|
|
|
|
|
Net sales - local currency
|
|
|
|
$1,628,082
|
|
|
|
$1,448,276
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - nominal currency
|
|
|
|
$495,080
|
|
|
|
$421,729
|
|
|
|
17%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(3,219)
|
|
|
|
|
|
Gross profit - local currency
|
|
|
|
$495,080
|
|
|
|
$418,510
|
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A - nominal currency
|
|
|
|
$346,848
|
|
|
|
$307,624
|
|
|
|
13%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(3,114)
|
|
|
|
|
|
SG&A - local currency
|
|
|
|
$346,848
|
|
|
|
$304,510
|
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income - nominal currency
|
|
|
|
$148,232
|
|
|
|
$114,105
|
|
|
|
30%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(105)
|
|
|
|
|
|
Operating income - local currency
|
|
|
|
$148,232
|
|
|
|
$114,000
|
|
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - nominal currency
|
|
|
|
$98,630
|
|
|
|
$86,723
|
|
|
|
14%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
846
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - local currency
|
|
|
|
$98,630
|
|
|
|
$87,569
|
|
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impact of restating prior year results at current year foreign
exchange rates.
|
|
|
|
HARMAN has provided a reconciliation of the non-GAAP measures
in the table above to provide the users of the consolidated
financial statements with a better understanding of the Company's
performance. Because changes in currency exchange rates affect its
reported financial results, the Company shows the rates of change
both including and excluding the effect of these changes in
exchange rates. The Company encourages readers of its financial
statements to evaluate its financial performance excluding the
impact of foreign currency translation. These non-GAAP measures
are not measurements under accounting principles generally
accepted in the United States. This measurement should be
considered in addition to, but not as a substitute for, the
information contained in HARMAN's consolidated financial
statements prepared in accordance with US GAAP.
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Selected Financial Data
Reconciliation of GAAP to Non-GAAP Results
Foreign Currency Translation Impact
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands; unaudited)
|
|
|
|
Nine Months Ended March 31,
|
|
|
|
Increase / (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
Net sales - nominal currency
|
|
|
|
$5,031,127
|
|
|
|
$4,476,664
|
|
|
|
12%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(214,786)
|
|
|
|
|
|
Net sales - local currency
|
|
|
|
$5,031,127
|
|
|
|
$4,261,878
|
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - nominal currency
|
|
|
|
$1,525,357
|
|
|
|
$1,325,928
|
|
|
|
15%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(51,602)
|
|
|
|
|
|
Gross profit - local currency
|
|
|
|
$1,525,357
|
|
|
|
$1,274,326
|
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A - nominal currency
|
|
|
|
$1,099,384
|
|
|
|
$969,881
|
|
|
|
13%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(40,629)
|
|
|
|
|
|
SG&A - local currency
|
|
|
|
$1,099,384
|
|
|
|
$929,252
|
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income - nominal currency
|
|
|
|
$425,973
|
|
|
|
$356,047
|
|
|
|
20%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(10,973)
|
|
|
|
|
|
Operating income - local currency
|
|
|
|
$425,973
|
|
|
|
$345,074
|
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - nominal currency
|
|
|
|
$288,820
|
|
|
|
$269,503
|
|
|
|
7%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(6,853)
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - local currency
|
|
|
|
$288,820
|
|
|
|
$262,650
|
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impact of restating prior year results at current year foreign
exchange rates.
|
|
|
|
HARMAN has provided a reconciliation of the non-GAAP measures
in the table above to provide the users of the consolidated
financial statements with a better understanding of the Company's
performance. Because changes in currency exchange rates affect its
reported financial results, the Company shows the rates of change
both including and excluding the effect of these changes in
exchange rates. The Company encourages readers of its financial
statements to evaluate its financial performance excluding the
impact of foreign currency translation. These non-GAAP measures
are not measurements under accounting principles generally
accepted in the United States. This measurement should be
considered in addition to, but not as a substitute for, the
information contained in HARMAN's consolidated financial
statements prepared in accordance with US GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Selected Financial Data
Reconciliation of GAAP to Non-GAAP Results
Foreign Currency Translation Impact
|
|
|
|
|
|
|
|
|
|
|
|
EXCLUDING restructuring and non-recurring charges
(In thousands; unaudited)
|
|
|
|
Nine Months Ended March 31,
|
|
|
|
Increase / (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
Net sales - nominal currency
|
|
|
|
$5,031,127
|
|
|
|
$4,476,664
|
|
|
|
12%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(214,786)
|
|
|
|
|
|
Net sales - local currency
|
|
|
|
$5,031,127
|
|
|
|
$4,261,878
|
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - nominal currency
|
|
|
|
$1,530,571
|
|
|
|
$1,317,914
|
|
|
|
16%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(52,150)
|
|
|
|
|
|
Gross profit - local currency
|
|
|
|
$1,530,571
|
|
|
|
$1,265,764
|
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A - nominal currency
|
|
|
|
$1,038,421
|
|
|
|
$(913,915)
|
|
|
|
14%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
36,824
|
|
|
|
|
|
SG&A - local currency
|
|
|
|
$1,038,421
|
|
|
|
$(877,091)
|
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income - nominal currency
|
|
|
|
$492,150
|
|
|
|
$403,999
|
|
|
|
22%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(15,326)
|
|
|
|
|
|
Operating income - local currency
|
|
|
|
$492,150
|
|
|
|
$388,673
|
|
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - nominal currency
|
|
|
|
$339,875
|
|
|
|
$304,656
|
|
|
|
12%
|
|
Effects of foreign currency translation (1)
|
|
|
|
|
|
|
|
(11,206)
|
|
|
|
|
|
Net income attributable to HARMAN International Industries,
Incorporated - local currency
|
|
|
|
$339,875
|
|
|
|
$293,450
|
|
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Impact of restating prior year results at current year foreign
exchange rates.
|
|
|
|
HARMAN has provided a reconciliation of the non-GAAP measures
in the table above to provide the users of the consolidated
financial statements with a better understanding of the Company's
performance. Because changes in currency exchange rates affect its
reported financial results, the Company shows the rates of change
both including and excluding the effect of these changes in
exchange rates. The Company encourages readers of its financial
statements to evaluate its financial performance excluding the
impact of foreign currency translation. These non-GAAP measures
are not measurements under accounting principles generally
accepted in the United States. This measurement should be
considered in addition to, but not as a substitute for, the
information contained in HARMAN's consolidated financial
statements prepared in accordance with US GAAP.
|
|
|
|
|
|
Harman International Industries, Incorporated
Reconciliation of GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except earnings per share data; unaudited)
|
|
|
|
Three Months Ended March 31, 2016
|
|
|
|
Three Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
HARMAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$135,353
|
|
|
|
$12,879
|
|
|
|
$148,232
|
|
|
|
$91,507
|
|
|
|
$22,598
|
|
|
|
$114,105
|
|
Depreciation & Amortization
|
|
|
|
51,005
|
|
|
|
(10,144)
|
|
|
|
40,861
|
|
|
|
40,262
|
|
|
|
(4,552)
|
|
|
|
35,710
|
|
EBITDA
|
|
|
|
186,358
|
|
|
|
2,735
|
|
|
|
189,093
|
|
|
|
131,769
|
|
|
|
18,046
|
|
|
|
149,815
|
|
CONNECTED CAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
95,617
|
|
|
|
2,689
|
|
|
|
98,306
|
|
|
|
73,661
|
|
|
|
563
|
|
|
|
74,224
|
|
Depreciation & Amortization
|
|
|
|
19,760
|
|
|
|
(1,880)
|
|
|
|
17,880
|
|
|
|
17,043
|
|
|
|
(1,166)
|
|
|
|
15,877
|
|
EBITDA
|
|
|
|
115,377
|
|
|
|
809
|
|
|
|
116,186
|
|
|
|
90,704
|
|
|
|
(603)
|
|
|
|
90,101
|
|
LIFESTYLE AUDIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
60,574
|
|
|
|
3,333
|
|
|
|
63,907
|
|
|
|
44,626
|
|
|
|
7,506
|
|
|
|
52,132
|
|
Depreciation & Amortization
|
|
|
|
13,853
|
|
|
|
(5,287)
|
|
|
|
8,566
|
|
|
|
11,410
|
|
|
|
(2,324)
|
|
|
|
9,086
|
|
EBITDA
|
|
|
|
74,427
|
|
|
|
(1,954)
|
|
|
|
72,473
|
|
|
|
56,036
|
|
|
|
5,182
|
|
|
|
61,218
|
|
PROFESSIONAL SOLUTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
2,667
|
|
|
|
4,415
|
|
|
|
7,082
|
|
|
|
16,043
|
|
|
|
5,659
|
|
|
|
21,702
|
|
Depreciation & Amortization
|
|
|
|
8,935
|
|
|
|
(631)
|
|
|
|
8,304
|
|
|
|
8,129
|
|
|
|
(99)
|
|
|
|
8,030
|
|
EBITDA
|
|
|
|
11,602
|
|
|
|
3,784
|
|
|
|
15,386
|
|
|
|
24,172
|
|
|
|
5,560
|
|
|
|
29,732
|
|
CONNECTED SERVICES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
11,799
|
|
|
|
2,147
|
|
|
|
13,946
|
|
|
|
6,303
|
|
|
|
-
|
|
|
|
6,303
|
|
Depreciation & Amortization
|
|
|
|
6,484
|
|
|
|
(2,348)
|
|
|
|
4,136
|
|
|
|
1,482
|
|
|
|
-
|
|
|
|
1,482
|
|
EBITDA
|
|
|
|
18,283
|
|
|
|
(201)
|
|
|
|
18,082
|
|
|
|
7,785
|
|
|
|
-
|
|
|
|
7,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARMAN has provided a reconciliation of non-GAAP measures in
order to provide the users of these consolidated financial
statements with a better understanding of its non-recurring
charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.
These measurements should be considered in addition to, but not as
a substitute for, the information contained in HARMAN's
consolidated financial statements prepared in accordance with US
GAAP.
|
|
|
|
|
|
Harman International Industries, Incorporated
Reconciliation of GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except earnings per share data; unaudited)
|
|
|
|
Nine Months Ended March 31, 2016
|
|
|
|
Nine Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
|
|
GAAP
|
|
|
|
Adjustments
|
|
|
|
Non-GAAP - Operational
|
|
HARMAN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
$425,973
|
|
|
|
$66,177
|
|
|
|
$492,150
|
|
|
|
$356,047
|
|
|
|
$47,952
|
|
|
|
$403,999
|
|
Depreciation & Amortization
|
|
|
|
165,841
|
|
|
|
(47,289)
|
|
|
|
118,552
|
|
|
|
114,808
|
|
|
|
(7,337)
|
|
|
|
107,471
|
|
EBITDA
|
|
|
|
591,814
|
|
|
|
18,888
|
|
|
|
610,702
|
|
|
|
470,855
|
|
|
|
40,615
|
|
|
|
511,470
|
|
CONNECTED CAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
267,102
|
|
|
|
7,468
|
|
|
|
274,570
|
|
|
|
223,007
|
|
|
|
5,247
|
|
|
|
228,254
|
|
Depreciation & Amortization
|
|
|
|
57,179
|
|
|
|
(5,523)
|
|
|
|
51,656
|
|
|
|
51,565
|
|
|
|
(3,828)
|
|
|
|
47,737
|
|
EBITDA
|
|
|
|
324,281
|
|
|
|
1,945
|
|
|
|
326,226
|
|
|
|
274,572
|
|
|
|
1,419
|
|
|
|
275,991
|
|
LIFESTYLE AUDIO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
191,283
|
|
|
|
18,379
|
|
|
|
209,662
|
|
|
|
148,475
|
|
|
|
23,299
|
|
|
|
171,774
|
|
Depreciation & Amortization
|
|
|
|
40,673
|
|
|
|
(15,416)
|
|
|
|
25,257
|
|
|
|
29,512
|
|
|
|
(2,379)
|
|
|
|
27,133
|
|
EBITDA
|
|
|
|
231,956
|
|
|
|
2,963
|
|
|
|
234,919
|
|
|
|
177,987
|
|
|
|
20,920
|
|
|
|
198,907
|
|
PROFESSIONAL SOLUTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
52,304
|
|
|
|
11,231
|
|
|
|
63,535
|
|
|
|
75,128
|
|
|
|
7,910
|
|
|
|
83,038
|
|
Depreciation & Amortization
|
|
|
|
26,294
|
|
|
|
(1,890)
|
|
|
|
24,404
|
|
|
|
24,650
|
|
|
|
(165)
|
|
|
|
24,485
|
|
EBITDA
|
|
|
|
78,598
|
|
|
|
9,341
|
|
|
|
87,939
|
|
|
|
99,778
|
|
|
|
7,745
|
|
|
|
107,523
|
|
CONNECTED SERVICES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
21,857
|
|
|
|
30,476
|
|
|
|
52,333
|
|
|
|
26,912
|
|
|
|
-
|
|
|
|
26,912
|
|
Depreciation & Amortization
|
|
|
|
35,239
|
|
|
|
(24,461)
|
|
|
|
10,778
|
|
|
|
2,484
|
|
|
|
-
|
|
|
|
2,484
|
|
EBITDA
|
|
|
|
57,096
|
|
|
|
6,015
|
|
|
|
63,111
|
|
|
|
29,396
|
|
|
|
-
|
|
|
|
29,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARMAN has provided a reconciliation of non-GAAP measures in
order to provide the users of these consolidated financial
statements with a better understanding of its non-recurring
charges. These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.
These measurements should be considered in addition to, but not as
a substitute for, the information contained in HARMAN's
consolidated financial statements prepared in accordance with US
GAAP.
|
|
|
|
|
|
|
|
|
|
Harman International Industries, Incorporated
Intercompany Revenue Reconciliation, 3 Months Ended March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016
|
|
|
|
Connected Car
|
|
|
|
Lifestyle Audio
|
|
|
|
Professional Solutions
|
|
|
|
Connected Services
|
|
|
|
Eliminations
|
|
|
|
HARMAN
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Trade Sales
|
|
|
|
$766,757
|
|
|
|
$472,234
|
|
|
|
$231,551
|
|
|
|
$157,540
|
|
|
|
$0
|
|
|
|
$1,628,082
|
|
Intercompany Sales
|
|
|
|
-
|
|
|
|
547
|
|
|
|
465
|
|
|
|
8,475
|
|
|
|
(9,487)
|
|
|
|
-
|
|
Net Sales
|
|
|
|
766,757
|
|
|
|
472,781
|
|
|
|
232,016
|
|
|
|
166,015
|
|
|
|
(9,487)
|
|
|
|
1,628,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harman International Industries, Incorporated
Intercompany Revenue Reconciliation, 9 Months Ended March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended March 31, 2016
|
|
|
|
Connected Car
|
|
|
|
Lifestyle Audio
|
|
|
|
Professional Solutions
|
|
|
|
Connected Services
|
|
|
|
Eliminations
|
|
|
|
HARMAN
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Trade Sales
|
|
|
|
$2,259,209
|
|
|
|
$1,558,408
|
|
|
|
$726,159
|
|
|
|
$487,312
|
|
|
|
$39
|
|
|
|
$5,031,127
|
|
Intercompany Sales
|
|
|
|
-
|
|
|
|
1,802
|
|
|
|
1,834
|
|
|
|
22,129
|
|
|
|
(25,765)
|
|
|
|
-
|
|
Net Sales
|
|
|
|
2,259,209
|
|
|
|
1,560,210
|
|
|
|
727,993
|
|
|
|
509,441
|
|
|
|
(25,765)
|
|
|
|
5,031,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARMAN International Industries, Incorporated
Total Liquidity Reconciliation
|
|
|
|
|
|
|
|
Total Company Liquidity
|
|
|
|
March 31, 2016
|
|
$ millions
|
|
|
|
|
|
Cash & cash equivalents
|
|
|
|
$360
|
|
Short-term investments
|
|
|
|
0
|
|
Available credit under Revolving Credit Facility
|
|
|
|
713
|
|
Total Liquidity
|
|
|
|
$1,073
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005568/en/
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