02.10.22
Zebra Technologies announced results for the fourth quarter and full year ended Dec. 31, 2021.
"Our team delivered solid fourth quarter results, closing out a record year of sales and profitability. Performance was at the high end of our guidance, despite an exceptionally challenging supply chain environment, including premium freight costs that were higher than our expectations,” said Anders Gustafsson, CEO of Zebra Technologies.
“While the supply chain constrains us from fully satisfying customer demand, we enter the year with a strong order backlog and a robust pipeline of business, positioning us well for profitable growth in 2022. The continued opportunities in our vibrant core and expansion markets advance our Enterprise Asset Intelligence vision and enable us to increase our long-term organic sales growth expectations."
Net sales were $1,467 million in the fourth quarter of 2021 compared to $1,308 million in the fourth quarter of 2020. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $1,023 million in the fourth quarter of 2021 compared with $888 million in the fourth quarter of 2020.
Asset Intelligence & Tracking (AIT) segment net sales were $444 million in the fourth quarter of 2021 compared to $425 million in the prior year period. Consolidated organic net sales for the fourth quarter increased 10%. Fourth-quarter year-over-year organic net sales increased by 13.2% in the EVM segment and increased by 3.1% in the AIT segment.
Fourth-quarter 2021 gross profit was $669 million compared to $618 million in the prior year period. Gross margin decreased to 45.6% for the fourth quarter of 2021, compared to 47.2% in the prior year period. This decrease was primarily due to higher premium freight costs as well as lower recoveries of Chinese import tariffs compared to the prior year, partially offset by higher service and software margin.
Net income for the fourth quarter of 2021 was $191 million, or $3.55 per diluted share, compared to net income of $199 million, or $3.70 per diluted share, for the fourth quarter of 2020.
Adjusted EBITDA for the fourth quarter of 2021 increased to $319 million, or 21.7% of adjusted net sales, compared to $308 million, or 23.5% of adjusted net sales, for the fourth quarter of 2020.
As of Dec. 31, 2021, the company had cash and cash equivalents of $332 million and total debt of $996 million.
For the full year 2021, the company generated $1,069 million of operating cash flow and incurred capital expenditures of $59 million, resulting in free cash flow of $1,010 million. In 2021, the company acquired antuit.ai, Fetch Robotics, and Adaptive Vision for $452 million in cash and made $34 million in venture investments.
"Our team delivered solid fourth quarter results, closing out a record year of sales and profitability. Performance was at the high end of our guidance, despite an exceptionally challenging supply chain environment, including premium freight costs that were higher than our expectations,” said Anders Gustafsson, CEO of Zebra Technologies.
“While the supply chain constrains us from fully satisfying customer demand, we enter the year with a strong order backlog and a robust pipeline of business, positioning us well for profitable growth in 2022. The continued opportunities in our vibrant core and expansion markets advance our Enterprise Asset Intelligence vision and enable us to increase our long-term organic sales growth expectations."
Net sales were $1,467 million in the fourth quarter of 2021 compared to $1,308 million in the fourth quarter of 2020. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $1,023 million in the fourth quarter of 2021 compared with $888 million in the fourth quarter of 2020.
Asset Intelligence & Tracking (AIT) segment net sales were $444 million in the fourth quarter of 2021 compared to $425 million in the prior year period. Consolidated organic net sales for the fourth quarter increased 10%. Fourth-quarter year-over-year organic net sales increased by 13.2% in the EVM segment and increased by 3.1% in the AIT segment.
Fourth-quarter 2021 gross profit was $669 million compared to $618 million in the prior year period. Gross margin decreased to 45.6% for the fourth quarter of 2021, compared to 47.2% in the prior year period. This decrease was primarily due to higher premium freight costs as well as lower recoveries of Chinese import tariffs compared to the prior year, partially offset by higher service and software margin.
Net income for the fourth quarter of 2021 was $191 million, or $3.55 per diluted share, compared to net income of $199 million, or $3.70 per diluted share, for the fourth quarter of 2020.
Adjusted EBITDA for the fourth quarter of 2021 increased to $319 million, or 21.7% of adjusted net sales, compared to $308 million, or 23.5% of adjusted net sales, for the fourth quarter of 2020.
As of Dec. 31, 2021, the company had cash and cash equivalents of $332 million and total debt of $996 million.
For the full year 2021, the company generated $1,069 million of operating cash flow and incurred capital expenditures of $59 million, resulting in free cash flow of $1,010 million. In 2021, the company acquired antuit.ai, Fetch Robotics, and Adaptive Vision for $452 million in cash and made $34 million in venture investments.