Press Release

Poly Announces Third Quarter Fiscal 2022 Financial Results

Company Release - 2/8/2022

SANTA CRUZ, Calif., Feb. 8, 2022 /PRNewswire/ -- Poly (NYSE: POLY), a global outfitter of professional-grade audio and video technology, today announced third quarter results for the period ended January 1, 2022.

Highlights for the third quarter include:

  • The Company delivered GAAP revenues of $410M, while supply chain constraints drove increased backlog across all product categories. The demand environment remains robust, as businesses worldwide prepare for a return to office and adjust to a hybrid work model.

  • Poly continues to strengthen its strategic alliances with Microsoft, Zoom, and others. This quarter, Poly introduced a series of Microsoft Teams Rooms bundles incorporating Poly's DirectorAI technology, which intelligently frames in-conference room participants offering a more dynamic and equitable experience for all. These Poly Studio Kits, featuring Dell or Lenovo hardware, are simple to buy, and easy to deploy.

  • Additionally, the Company is forging new alliances in key, high-growth markets. In China, Poly strengthened its Tencent strategic alliance and achieved Tencent certification for Studio USB, Sync 20/40, and Voyager Focus UC, and expects integration of the Tencent Meeting app onto the Studio X platform later this spring.

  • The Company announced a multi-year Red Bull Racing sponsorship for the 2022 and 2023 Formula 1 seasons. Under the terms of the sponsorship, Poly will be Red Bull Racing's exclusive headset and video conferencing hardware supplier and provide Poly technology to fuel the organization's business communications, in addition to having a logo sponsorship on the team's communications headsets.

  • Poly announced the Poly RENEW Program, allowing customers in the U.S. and Canada to trade-in select Poly phones and receive a credit for the purchase of new Poly gear, supporting the environment and their return-to-office strategies.

"Poly continues to benefit from a collaboration demand supercycle," said Dave Shull, Poly President and CEO. "Offices around the world are under-equipped and filled with legacy communications technologies that are not cloud-enabled, not ready for video, and not adapted to the multiple communications platforms used by their employees and clients. Whether in the office, or with teams operating remotely, every business needs to connect people, partners, and customers - seamlessly. That's what Poly does."

"As global supply chain and logistics challenges continue into the new year, we are balancing investments for growth and scale with near-term profitability to ensure we can capitalize on this secular demand environment," continued Chief Financial Officer Chuck Boynton. "We continue to take steps to optimize our operating model and control what we can, in a volatile environment. We've conservatively managed our cash, favorably amended the terms on our undrawn credit facility, and instituted price increases. Taken together, as supply chain disruptions abate, we expect this operating leverage to result in significantly improved financial performance."  

($ Millions, except percent and per-share data)1

Q3 FY22

Q3FY21


YTD FY22

YTD FY21

GAAP Revenue

$410

$485


$1,260

$1,251

GAAP Gross Margin

40.1%

46.8%


41.2%

45.0%

GAAP Operating (Loss) Income

($6)

$29


($15)

($22)

GAAP Diluted EPS

($0.26)

$0.48


$1.11

($1.67)

Cash Flow from Operations

$—

$31


$—

$71







Non-GAAP Revenue

$410

$488


$1,263

$1,264

Non-GAAP Gross Margin

44.5%

50.7%


45.5%

49.9%

Non-GAAP Operating Income

$38

$90


$144

$186

Non-GAAP Diluted EPS

$0.57

$1.47


$1.94

$2.75

Adjusted EBITDA

$47

$100


$170

$216







1 For further information on supplemental non-GAAP metrics, refer to the Use of Non-GAAP Financial Information and
   Unaudited Reconciliations of GAAP Measures to Non-GAAP Measures sections below.

Business Outlook

Global supply chain pressures, including both semiconductor chip shortages and transportation constraints, have impacted companies worldwide, and we expect we will continue to experience ongoing tightness and volatility in our supply chain, in turn continuing to compromise near-term visibility.

Based on current supply and expected availability of specific components, and assuming no incremental negative effects from COVID or its variants, the Company expects the following full-year results for fiscal 2022 (all amounts assume currency rates remain stable):

  • GAAP Net Revenue for Full Fiscal Year 2022 of $1.675B to $1.70B

  • Adjusted EBITDA1 for Full Fiscal Year 2022 of $220M to $230M

  • Non-GAAP Diluted EPS1,2 for Full Fiscal Year 2022 of $2.45 to $2.65

1 Full-year FY22 Adjusted EBITDA and non-GAAP diluted EPS guidance excludes estimated intangibles amortization expense of $113.8 million. With respect to adjusted EBITDA and diluted EPS guidance, the Company has determined that it is unable to provide quantitative reconciliations of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures with a reasonable degree of confidence in their accuracy without unreasonable effort, as items including stock-based compensation, litigation gains and losses, and impacts from discrete tax adjustments and tax laws are inherently uncertain and depend on various factors, many of which are beyond the Company's control.
2 Non-GAAP diluted EPS guidance assumes approximately 44 million diluted average weighted shares and a non-GAAP effective tax rate of 7% to 9%.

Conference Call and Earnings Presentation

Poly is providing an earnings presentation in combination with this press release. The presentation is offered to provide shareholders and analysts with additional detail for analyzing results. The presentation will be available in the Investor Relations section of our corporate website at investor.poly.com along with this press release. A reconciliation of our GAAP to non-GAAP results is provided at the end of this press release.

We have scheduled a webcast to discuss third quarter fiscal year 2022 financial results. The webcast will take place today, February 8, 2022, at 5:30 AM (Pacific Time), 8:30 AM (Eastern Time). All interested investors and potential investors in Poly stock are invited to join. To listen to the webcast, please access the webcast link from our Investor Relations website at investor.poly.com.

A replay of the webcast will be available shortly after its conclusion and can be accessed from our Investor Relations website at investor.poly.com.

Forward Looking Statements Safe Harbor

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our intentions, beliefs, projections, outlook, analyses or current expectations that are subject to many risks and uncertainties. Such forward-looking statements and the associated risks and uncertainties include, but are not limited to: (i) our beliefs with respect to the length and severity of the COVID-19 (coronavirus) outbreak, and its impact across our businesses, our operations and global supply chain, including, our expectations that the virus has caused, and will continue to cause, a shift to a hybrid work environment and that the elevated demand we have experienced in certain product lines, including our Video and Voice devices, will continue over the long term; (ii) risks related to global supply chain disruptions, including continued uncertainty and potential impact on future quarters relating to a shortage of adequate component supply, including integrated circuits and manufacturing capacity, long lead times for raw materials and components, increased costs to us and increased pass-through costs to our customers, increased purchase commitments and a delay in our ability to fulfill orders, which has had, and may continue to have, an adverse impact on our business and operating results and which could continue to negatively affect our profitability and/or market share; (iii) expectations related to our ability to manage profitability and maintain margins in light of supply chain challenges, including our efforts to implement productivity improvements in our Tijuana manufacturing facility, while making investments for long-term growth, including investments in strategic alliances and/or acquisitions, in light of the supply chain challenges; (iv) our expectations regarding growth objectives related to our strategic initiatives designed to expand our product and service offerings, including our expectations related to increased demand for our solutions to facilitate hybrid working in and out of offices for our enterprise customers, as well as our expectations related to building strategic alliances and key partnerships with providers of collaboration tools and platforms to drive revenue growth and market share, including expectations related to our expansion of our presence in China; (v) our belief that we will continue to experience increased customer and partner demand in collaboration endpoints, and that we will be able to design new product offerings to meet changes in demand due to a global hybrid work environment; (vi) expectations related to our ability to fulfill the backlog generated by supply constraints and to timely supply the number of products to fulfill current and future customer demand in a timely manner to satisfy perishable demand; (vii) risks associated with our dependence on manufacturing operations conducted in our own facility in Tijuana, Mexico and through contract manufacturers, original design manufacturers, and suppliers to manufacture our products, to timely obtain sufficient quantities of materials and/or finished products of acceptable quality, at acceptable prices, and in the quantities necessary for us to meet critical schedules for the delivery of our own products and services and fulfill our anticipated customer demand; (viii) risks associated with our ability to secure critical components from sole source suppliers or identify alternative suppliers and/or buy component parts on the open market or completed goods in quantities sufficient to meet our requirements on a timely basis, affecting our ability to deliver products and services to our customers; (ix) risks related to increased cost of goods sold, including increased freight and other costs associated with expediting shipment and delivery of high-demand products to key markets in order to meet customer demand; (x) risks associated with passing on increased costs through price increases to customers; (xi) the impact if global or regional economic conditions deteriorate further, on our customers and/or partners, including increased demand for pricing accommodations, delayed payments, delayed deployment plans, insolvency or other issues which may increase credit losses; (xii) risks associated with significant and/or abrupt changes in product demand which increases the complexity of management's evaluation of potential excess or obsolete inventory; (xiii) expectations related to our Services reportable segment revenues, particularly as we introduce next-generation, less complex, product solutions, or as companies shift from on premises to work from home options for their workforce, which have resulted and may continue to result in decreased demand for our professional, installation and/or managed service offerings; (xiv) expectations related to our efforts to drive sales and sustainable profitable revenue growth, to improve our profitability and cash flow, and accelerate debt reduction and de-levering; (xv) risks associated with forecasting sales and procurement demands, which are inherently difficult, particularly with continuing uncertainty in regional and global economic conditions; (xvi) our expectations regarding our ability to control costs, streamline operations and successfully implement our various cost-reduction activities and realize anticipated cost savings under such cost-reduction initiatives; (xvii) expectations relating to our earnings guidance, particularly as economic uncertainty, including, without limitation, uncertainty related to the continued impact of COVID-19, the current constraints in our ability to source key components for our products, continued uncertainty in the macro-economic climate and other external factors, puts further pressure on management judgments used to develop forward-looking financial guidance and other prospective financial information; (xviii) expectations related to GAAP and non-GAAP financial results for the full Fiscal Year 2022, including net revenues, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), tax rates, intangibles amortization, diluted weighted average shares outstanding and diluted earnings per share (EPS); (xix) our forecast and estimates with respect to tax matters, including expectations with respect to the valuation of our intellectual property or expectations regarding utilization of our deferred tax assets; and (xx) our expectations regarding pending and potential future litigation, in addition to other matters discussed in this press release that are not purely historical data. Such forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. Factors that could cause actual results and events to differ materially from such forward-looking statements are included, but not limited to, those discussed in the Company's Quarterly Report on Form 10-Q for the period ended January 1, 2022 ("Quarterly Report") and in Part I, "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended April 3, 2021, filed with the Securities and Exchange Commission ("SEC") on May 18, 2021 ("Annual Report") and other documents we have filed with the SEC. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

About Poly

Poly (NYSE: POLY) creates premium audio and video products so you can have your best meeting -- anywhere, anytime, every time. Our headsets, video and audio-conferencing products, desk phones, analytics software and services are beautifully designed and engineered to connect people with incredible clarity. They're pro-grade, easy to use and work seamlessly with all the best video and audio-conferencing services. Poly MeetingAI delivers a broadcast quality video conferencing experience with Poly DirectorAI technology which uses artificial intelligence and machine learning to deliver real-time automatic transitions, framing and tracking, while NoiseBlockAI and Acoustic Fence technologies block-out unwanted background noise. With Poly (Plantronics, Inc. – formerly Plantronics and Polycom), you'll do more than just show up, you'll stand out. For more information visit www.Poly.com.

All other trademarks are the property of their respective owners. 

INVESTOR CONTACT:

Mike Iburg

Vice President, Investor Relations

(831) 458-7533

MEDIA CONTACT:

Edie Kissko

Vice President, Corporate Communications

(213) 369-3719

 

PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except percentages and per share data)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS













Three Months Ended


Nine Months Ended




January 1,


December 26,


January 1,


December 26,




2022


2020


2022


2020


Net revenues










Net product revenues


$           354,022


$           420,711


$        1,086,607


$        1,059,846


Net services revenues


55,544


63,974


173,155


191,529


  Total net revenues


409,566


484,685


1,259,762


1,251,375


Cost of revenues










Cost of product revenues


226,994


236,842


682,360


622,718


Cost of service revenues


18,386


21,186


58,334


64,921


  Total cost of revenues


245,380


258,028


740,694


687,639


Gross profit


164,186


226,657


519,068


563,736


% of total net revenues


40.1%


46.8%


41.2%


45.0%


Operating expenses










Research, development, and engineering


46,216


54,150


136,090


156,327


Selling, general, and administrative


121,387


129,641


364,417


361,892


Loss, net from litigation settlements





17,561


Restructuring and other related charges


2,398


13,977


33,977


49,477


  Total operating expenses


170,001


197,768


534,484


585,257


Operating (loss) income


(5,815)


28,889


(15,416)


(21,521)


% of total net revenues


(1.4)%


6.0%


(1.2)%


(1.7)%












Interest expense


15,948


18,417


53,871


58,182


Other non-operating income, net


(995)


(2,596)


(1,664)


(4,188)


(Loss) income before income taxes


(20,768)


13,068


(67,623)


(75,515)


Income tax benefit


(9,604)


(7,045)


(116,433)


(7,208)


Net (loss) income


$         (11,164)


$             20,113


$           48,810


$           (68,307)


% of total net revenues


(2.7)%


4.1%


3.9%


(5.5)%












Basic (loss) earnings per common share


$             (0.26)


$               0.49


$               1.15


$              (1.67)


Diluted (loss) earnings per common share


$             (0.26)


$               0.48


$               1.11


$              (1.67)


Basic shares used in computing (loss) earnings
per common share


42,745


41,252


42,450


40,894


Diluted shares used in computing (loss)
earnings per common share


42,745


42,184


43,811


40,894












Effective tax rate


46.2%


(53.9)%


172.2%


9.6%












 

 

PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



January 1,


April 3,




2022


2021


ASSETS






Cash and cash equivalents


$                      182,700


$                      202,560


Restricted cash



493,908


Short-term investments


17,017


14,559


   Total cash and cash equivalents, restricted cash, and short-term
   investments


199,717


711,027


Accounts receivable, net


275,913


267,464


Inventory, net


216,750


194,405


Other current assets


61,484


65,214


Total current assets


753,864


1,238,110


Property, plant, and equipment, net


126,973


140,875


Purchased intangibles, net


255,564


341,614


Goodwill


796,216


796,216


Deferred tax and other non-current assets


281,875


147,454


Total assets


$                   2,214,492


$                   2,664,269








LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)






Accounts payable


$                      160,529


$                      151,244


Accrued liabilities


328,551


394,084


Current portion of long-term debt



478,807


   Total current liabilities


489,080


1,024,135


Long-term debt, net


1,499,228


1,496,064


Long-term income taxes payable


76,095


86,227


Other non-current liabilities


139,469


138,609


Total liabilities


2,203,872


2,745,035


Stockholders' equity (deficit)


10,620


(80,766)


Total liabilities and stockholders' equity (deficit)


$                   2,214,492


$                   2,664,269








 

 

PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS













Three Months Ended


Nine Months Ended




January 1,


December 26,


January 1,


December 26,




2022


2020


2022


2020


Cash flows from operating activities










Net (loss) income


$          (11,164)


$           20,113


$           48,810


$          (68,307)


Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities










   Depreciation and amortization


36,671


40,510


112,796


124,881


   Amortization of debt issuance cost


1,055


1,302


5,046


3,962


   Stock-based compensation


12,225


11,486


34,214


31,104


   Deferred income taxes


(4,493)


(11,317)


(115,660)


(15,373)


   Provision for excess and obsolete inventories


1,256


3,609


8,160


12,767


   Restructuring and other related charges


2,398


13,977


33,977


49,477


   Cash payments for restructuring charges


(4,733)


(4,335)


(27,515)


(28,794)


   Other operating activities


(1,543)


(2,838)


(1,526)


(6,000)


Changes in assets and liabilities










   Accounts receivable, net


(26,156)


(79,066)


(8,569)


(71,439)


   Inventory, net


(9,873)


(12,391)


(24,699)


(39,941)


   Current and other assets


(11,537)


(9,301)


(9,129)


(15,246)


   Accounts payable


5,593


29,562


9,170


62,454


   Accrued liabilities


16,520


24,504


(45,502)


47,529


   Income taxes


(6,074)


5,077


(19,625)


(15,925)


   Net cash provided by (used in) operating
   activities


145


30,892


(52)


71,149












Cash flows from investing activities










Proceeds from sales of short-term investments


264


667


264


667


Purchases of short-term investments


(185)


(156)


(760)


(394)


Capital expenditures


(7,885)


(5,872)


(20,682)


(16,753)


Proceeds from sale of property, plant, and equipment





1,900


Other investing activities




(4,000)



   Net cash used in investing activities


(7,806)


(5,361)


(25,178)


(14,580)












Cash flows from financing activities










Employees' tax withheld and paid for restricted stock
and restricted stock units


(844)


(144)


(12,154)


(3,193)


Proceeds from issuances under stock-based
compensation plans




5,841


5,731


Proceeds from revolving line of credit





50,000


Repayments of revolving line of credit





(50,000)


Repayments of long-term debt



(11,417)


(480,689)


(46,980)


   Net cash used in financing activities


(844)


(11,561)


(487,002)


(44,442)


Effect of exchange rate changes on cash, cash
equivalents and restricted cash


(672)


2,194


(1,536)


4,059


Net (decrease) increase in cash and cash
equivalents and restricted cash


(9,177)


16,164


(513,768)


16,186


Cash and cash equivalents and restricted cash at
beginning of period


191,877


213,901


696,468


213,879


Cash and cash equivalents and restricted cash at
end of period


$         182,700


$         230,065


$         182,700


$         230,065












Use of Non-GAAP Financial Information

To supplement our condensed consolidated financial statements presented on a GAAP basis, we use non-GAAP measures of operating results, including non-GAAP net revenues, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, adjusted EBITDA, and non-GAAP diluted EPS. These non-GAAP measures are adjusted from the most directly comparable GAAP measures to exclude certain non-cash transactions and activities that are not reflective of our ongoing core operations, as further described below. We believe the use of each of these non-GAAP measures provides meaningful supplemental information in assessing our operating performance and liquidity across reporting periods on a consistent basis and are used by management in evaluating financial performance and in strategic planning. These non-GAAP measures may differ from those used by other companies and are not intended to be considered in isolation of, or as a substitute for, financial results prepared in accordance with GAAP. Certain prior year amounts have been reclassified for consistency with current year presentation.

Non-GAAP Adjustments

  • Purchase accounting amortization: Represents the amortization of purchased intangible assets recorded in connection with the acquisition of Polycom on July 2, 2018.
  • Deferred revenue purchase accounting: Represents the impact of fair value purchase accounting adjustments related to deferred revenue recorded in connection with the acquisition of Polycom on July 2, 2018. The Company's deferred revenue primarily relates to Services revenue associated with non-cancelable maintenance support on hardware devices which are typically billed in advance and recognized ratably over the contract term as those services are delivered. This adjustment represents the amount of additional revenue that would have been recognized during the period absent the write-down to fair value required under purchase accounting guidance.
  • Stock compensation expense: Represents the non-cash expense associated with the Company's grant of stock-based awards to employees and non-employee directors.
  • Restructuring and other related charges: Represents costs associated with restructuring plans and reorganization actions aimed at improving the Company's overall cost structure, realigning resources consistent with its global strategy, and reducing expenses to enable strategic investments in revenue growth. These costs are not reflective of ongoing operations and are primarily associated with reductions in the Company's workforce, facility related charges due to the closure or consolidation of offices, and other related costs, including legal and advisory services.
  • Deferred compensation mark to market: Represents gains and losses driven by the remeasurement of assets and liabilities associated with the Company's deferred compensation plans. Gains and losses on plan liabilities are recognized within operating expenses, while the offsetting gains and losses on plan assets are recognized within other non-operating income, net.
  • Loss, net on litigation settlements: The Company may be involved in various litigation, claims and proceedings that result in payments or recoveries from such proceedings. The related gains and losses incurred are excluded as they are not reflective of ongoing operations.
  • Income tax effects: Represents the tax effects of non-GAAP adjustments and other adjustments, depending on the nature of the underlying items. The exclusion of the above-mentioned items eliminates the effect of certain non-recurring and unusual tax items that do not necessarily reflect the Company's long-term operations. The income tax effects for unusual tax items primarily represents the impact of the discrete tax benefit associated with an IP transfer between wholly-owned subsidiaries, changes in uncertain tax positions, and the full valuation allowance on United States federal and state deferred tax assets.

 

PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except percentages)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA











Three Months Ended


Nine Months Ended



January 1,


December 26,


January 1,


December 26,



2022


2020


2022


2020











GAAP Net revenues

$          409,566


$          484,685


$       1,259,762


$       1,251,375


Deferred revenue purchase accounting

907


3,289


3,221


12,608


Non-GAAP Net revenues

$          410,473


$          487,974


$       1,262,983


$       1,263,983











GAAP Gross profit

$          164,186


$          226,657


$          519,068


$          563,736


Purchase accounting amortization

16,238


16,459


48,714


51,873


Deferred revenue purchase accounting

907


3,289


3,221


12,608


Stock-based compensation

1,238


799


3,525


2,374


Non-GAAP Gross profit

$          182,569


$          247,204


$          574,528


$          630,591


Non-GAAP Gross profit %

44.5%


50.7%


45.5%


49.9%











GAAP Research, development, and engineering

$            46,216


$            54,150


$          136,090


$          156,327


Stock-based compensation

(2,518)


(3,441)


(6,359)


(10,934)


Other adjustments




194


Non-GAAP Research, development, and engineering

$            43,698


$            50,709


$          129,731


$          145,587











GAAP Selling, general, and administrative

$          121,387


$          129,641


$          364,417


$          361,892


Purchase accounting amortization

(11,569)


(14,195)


(37,334)


(42,585)


Stock-based compensation

(8,469)


(7,246)


(24,343)


(17,995)


Deferred compensation mark to market

(910)


(1,632)


(1,916)


(2,346)


Other adjustments



387


(4)


Non-GAAP Selling, general, and administrative

$          100,439


$          106,568


$          301,211


$          298,962











 

 

PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED)











Three Months Ended


Nine Months Ended



January 1,


December 26,


January 1,


December 26,



2022


2020


2022


2020











GAAP Operating expenses

$         170,001


$         197,768


$         534,484


$         585,257


Purchase accounting amortization

(11,569)


(14,195)


(37,334)


(42,585)


Stock-based compensation

(10,987)


(10,687)


(30,702)


(28,735)


Restructuring and other related charges

(2,398)


(13,977)


(33,977)


(49,477)


Deferred compensation mark to market

(910)


(1,632)


(1,916)


(2,346)


Loss, net from litigation settlements




(17,561)


Other adjustments



387


(4)


Non-GAAP Operating expenses

$         144,137


$         157,277


$         430,942


$         444,549











GAAP Operating (loss) income

$            (5,815)


$           28,889


$          (15,416)


$          (21,521)


Purchase accounting amortization

27,807


30,654


86,048


94,458


Stock-based compensation

12,225


11,486


34,227


31,109


Restructuring and other related charges

2,398


13,977


33,977


49,477


Deferred revenue purchase accounting

907


3,289


3,221


12,608


Deferred compensation mark to market

910


1,632


1,916


2,346


Loss, net from litigation settlements




17,561


Other adjustments



(387)


4


Non-GAAP Operating income

$           38,432


$           89,927


$         143,586


$         186,042











 

 

PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except per share data)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED)











Three Months Ended


Nine Months Ended



January 1,


December 26,


January 1,


December 26,



2022


2020


2022


2020


GAAP Net (loss) income

$          (11,164)


$           20,113


$           48,810


$          (68,307)


Purchase accounting amortization

27,807


30,654


86,048


94,458


Stock-based compensation

12,225


11,486


34,227


31,109


Restructuring and other related charges

2,398


13,977


33,977


49,477


Deferred revenue purchase accounting

907


3,289


3,221


12,608


Deferred compensation mark to market

(49)


49


(45)


84


Loss, net from litigation settlements




17,561


Other adjustments



(387)


8


Income tax effect of above items

(3,319)


(2,175)


(778)


(15,746)


Income tax effect of unusual tax items

(3,995)


(15,291)


(120,220)


(7,422)


Non-GAAP Net income

$           24,810


$           62,102


$           84,853


$         113,830











GAAP Diluted (loss) earnings per common share

$              (0.26)


$               0.48


$               1.11


$              (1.67)


Purchase accounting amortization

0.63


0.73


1.96


2.28


Stock-based compensation

0.28


0.27


0.78


0.75


Restructuring and other related charges

0.05


0.33


0.78


1.20


Deferred revenue purchase accounting

0.02


0.08


0.07


0.30


Loss, net from litigation settlements




0.42


Deferred compensation mark to market




0.01


Other adjustments



(0.01)



Income tax effect

(0.17)


(0.42)


(2.75)


(0.54)


Effect of anti-dilutive securities

0.02





Non-GAAP Diluted earnings per common share

$               0.57


$               1.47


$               1.94


$               2.75











Shares used in diluted (loss) earnings per common share
calculation:









GAAP

42,745


42,184


42,450


40,894


Non-GAAP

43,808


42,184


43,811


41,347











 

 

PLANTRONICS, INC.

UNAUDITED RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands)


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (CONTINUED)














Three Months Ended


Twelve Months
Ended




December 26,


April 3,


July 3,


October 2,


January 1,


January 1,




2020


2021


2021


2021


2022


2022


GAAP Net income (loss)


$               20,113


$               10,977


$              (36,811)


$               96,785


$              (11,164)


$               59,787


Income tax benefit


(7,045)


(341)


(4,262)


(102,567)


(9,604)


(116,774)


Interest expense


18,417


24,424


21,782


16,141


15,948


78,295


Other non-operating (income) expense, net


(2,596)


(920)


(692)


23


(995)


(2,584)


Deferred revenue purchase accounting


3,289


1,796


1,260


1,054


907


5,017


Stock-based compensation


11,486


11,540


10,416


11,584


12,225


45,765


Restructuring and other related charges


13,977


(773)


28,972


2,607


2,398


33,204


Deferred compensation mark to market


1,632


917


994


13


910


2,834


Other adjustments



(2,103)



(387)



(2,490)


Depreciation and amortization


40,510


39,986


39,833


36,292


36,671


152,782


Adjusted EBITDA


$               99,783


$               85,503


$               61,492


$               61,545


$               47,296


$             255,836
















 

 

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SOURCE Plantronics, Inc.