08.08.17
Zebra Technologies announced results for the second quarter ended July 1, 2017.
Net sales were $896 million in the second quarter of 2017 compared to $879 million in the second quarter of 2016. Net sales in the Enterprise segment were $584 million in the second quarter of 2017, compared with $577 million in the second quarter of 2016. Legacy Zebra segment net sales were $313 million in the second quarter of 2017, compared to $305 million in the second quarter of 2016.
“Sales exceeded our expectations led by exceptional performance in mobile computing. Profitable growth and disciplined cost management drove earnings per share near the top end of our guidance range,” said Anders Gustafsson, CEO of Zebra Technologies. “Given these results, we expect our full year organic sales growth to be at the top end of our prior outlook. Additionally, our robust free cash flow will allow us to pay down at least $300 million in debt principal in 2017, despite up-front costs associated with the recently announced successful refinancing efforts. With the integration of the Enterprise business complete, we’ll continue to focus on extending our leadership position in growing markets and driving profitable growth.”
Second quarter 2017 gross profit was $411 million compared to $406 million in the comparable prior year period. Net income for the second quarter of 2017 was $17 million, or $0.32 per diluted share, compared to a net loss of $45 million, or ($0.88) per diluted share, for the second quarter of 2016.
Adjusted gross margin for the quarter was 46.0%, compared to 46.4% in the prior year period. The decrease was primarily due to changes in business mix. Adjusted EBITDA for the second quarter of 2017 was $159 million, or 17.7% of adjusted net sales compared to $144 million, or 16.3% of adjusted net sales for the second quarter of 2016, primarily due to higher gross profit and lower operating expenses.
As of July 1, 2017, the company had cash and cash equivalents of $95 million and total long-term debt of $2.4 billion. Free cash flow was $181 million in the first six months of 2017. The company generated $203 million and incurred capital expenditures of $22 million. For the first six months of 2017, the company made $240 million in term loan payments and $70 million in scheduled cash interest payments.
Net sales were $896 million in the second quarter of 2017 compared to $879 million in the second quarter of 2016. Net sales in the Enterprise segment were $584 million in the second quarter of 2017, compared with $577 million in the second quarter of 2016. Legacy Zebra segment net sales were $313 million in the second quarter of 2017, compared to $305 million in the second quarter of 2016.
“Sales exceeded our expectations led by exceptional performance in mobile computing. Profitable growth and disciplined cost management drove earnings per share near the top end of our guidance range,” said Anders Gustafsson, CEO of Zebra Technologies. “Given these results, we expect our full year organic sales growth to be at the top end of our prior outlook. Additionally, our robust free cash flow will allow us to pay down at least $300 million in debt principal in 2017, despite up-front costs associated with the recently announced successful refinancing efforts. With the integration of the Enterprise business complete, we’ll continue to focus on extending our leadership position in growing markets and driving profitable growth.”
Second quarter 2017 gross profit was $411 million compared to $406 million in the comparable prior year period. Net income for the second quarter of 2017 was $17 million, or $0.32 per diluted share, compared to a net loss of $45 million, or ($0.88) per diluted share, for the second quarter of 2016.
Adjusted gross margin for the quarter was 46.0%, compared to 46.4% in the prior year period. The decrease was primarily due to changes in business mix. Adjusted EBITDA for the second quarter of 2017 was $159 million, or 17.7% of adjusted net sales compared to $144 million, or 16.3% of adjusted net sales for the second quarter of 2016, primarily due to higher gross profit and lower operating expenses.
As of July 1, 2017, the company had cash and cash equivalents of $95 million and total long-term debt of $2.4 billion. Free cash flow was $181 million in the first six months of 2017. The company generated $203 million and incurred capital expenditures of $22 million. For the first six months of 2017, the company made $240 million in term loan payments and $70 million in scheduled cash interest payments.
