05.06.21
Driven by significant gains in the Enterprise Visibility & Mobility (EVM) segment, Zebra Technologies announced results for the first quarter ended April 3, 2021.
“We achieved record quarterly sales and earnings which exceeded our expectations, despite industry supply chain challenges,” said Anders Gustafsson, CEO of Zebra Technologies. “We enter Q2 with a strong order backlog as we see global business demand recover and customers prioritizing spending on our solutions."
Net sales were $1,347 million in the first quarter of 2021 compared to $1,052 million in the first quarter of 2020. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $914 million in the first quarter of 2021 compared with $697 million in the first quarter of 2020.
Asset Intelligence & Tracking (AIT) segment net sales were $436 million in the first quarter of 2021 compared to $355 million in the prior year period. Consolidated organic net sales for the first quarter increased 25%.
First-quarter 2021 gross profit was $655 million compared to $473 million in the prior year period. Gross margin increased to 48.6% for the first quarter of 2021, compared to 45% in the prior year period.
Adjusted EBITDA for the first quarter of 2021 increased to $341 million, or 25.3% of adjusted net sales, compared to $201 million, or 19.1% of adjusted net sales, for the first quarter of 2020 due to higher gross margin and lower operating expenses as a percentage of sales.
As of April 3, 2021, the company had cash and cash equivalents of $177 million and total debt of $1,096 million. For the first three months of 2021, the company generated $224 million of operating cash flow and incurred capital expenditures of $10 million, resulting in free cash flow of $214 million.
For the first three months of 2021, the company made debt repayments of $156 million and cash interest payments of $9 million.
The company now expects adjusted net sales to increase 18% to 22% from 2020, which includes an approximately 3 percentage point additive impact from the Reflexis acquisition and foreign currency translation, and reflects industry supply chain challenges.
Adjusted EBITDA margin is now expected to be approximately 22% to 23%.
Free cash flow is now expected to be at least $850 million.
“We achieved record quarterly sales and earnings which exceeded our expectations, despite industry supply chain challenges,” said Anders Gustafsson, CEO of Zebra Technologies. “We enter Q2 with a strong order backlog as we see global business demand recover and customers prioritizing spending on our solutions."
Net sales were $1,347 million in the first quarter of 2021 compared to $1,052 million in the first quarter of 2020. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $914 million in the first quarter of 2021 compared with $697 million in the first quarter of 2020.
Asset Intelligence & Tracking (AIT) segment net sales were $436 million in the first quarter of 2021 compared to $355 million in the prior year period. Consolidated organic net sales for the first quarter increased 25%.
First-quarter 2021 gross profit was $655 million compared to $473 million in the prior year period. Gross margin increased to 48.6% for the first quarter of 2021, compared to 45% in the prior year period.
Adjusted EBITDA for the first quarter of 2021 increased to $341 million, or 25.3% of adjusted net sales, compared to $201 million, or 19.1% of adjusted net sales, for the first quarter of 2020 due to higher gross margin and lower operating expenses as a percentage of sales.
As of April 3, 2021, the company had cash and cash equivalents of $177 million and total debt of $1,096 million. For the first three months of 2021, the company generated $224 million of operating cash flow and incurred capital expenditures of $10 million, resulting in free cash flow of $214 million.
For the first three months of 2021, the company made debt repayments of $156 million and cash interest payments of $9 million.
The company now expects adjusted net sales to increase 18% to 22% from 2020, which includes an approximately 3 percentage point additive impact from the Reflexis acquisition and foreign currency translation, and reflects industry supply chain challenges.
Adjusted EBITDA margin is now expected to be approximately 22% to 23%.
Free cash flow is now expected to be at least $850 million.