02.17.23
Zebra Technologies announced results for the fourth quarter and full year ended December 31, 2022.
Net sales were $1,503 million in the fourth quarter of 2022 compared to $1,467 million in the fourth quarter of 2021. Fourth-quarter 2022 gross profit was $685 million compared to $669 million in the prior year period. Full year net sales were $5.781 billion, up 2% from FY 21, while gross profit was $2.624 billion, down 0.2%.
“Our team delivered strong fourth quarter results to close a challenging year. We are recovering from supply chain challenges and achieved sales and earnings performance at the high end of our outlook, driven by double-digit growth in the Americas,” said Anders Gustafsson, CEO of Zebra Technologies.
“Although our order backlog and pipeline of opportunities remain healthy, we are taking a cautious approach to our outlook in this uncertain macro environment. Our customer value proposition is resonating and we are well positioned to extend our lead in the industry with our innovative solutions. I am confident that Bill Burns, our incoming CEO, will continue to advance our Enterprise Asset Intelligence Vision and elevate Zebra’s role in digitizing & automating our customers’ operations.”
Fourth quarter 2022 net sales in the Enterprise Visibility & Mobility (EVM) segment were $1,022 million in the fourth quarter of 2022 compared with $1,031 million in the fourth quarter of 2021. Asset Intelligence & Tracking (AIT) segment net sales were $481 million in the fourth quarter of 2022 compared to $436 million in the prior year period. Consolidated organic net sales for the fourth quarter increased 3.9%.
Fourth-quarter gross margin was 45.6% for both the fourth quarter of 2022 and 2021. Current year gross margin was flat as unfavorable foreign currency changes offset the benefit from lower premium supply chain costs. Adjusted gross margin was 45.6% in the fourth quarter of 2022, compared to 45.7% in the prior year period.
Net income for the fourth quarter of 2022 was $186 million, or $3.57 per diluted share, compared to net income of $191 million, or $3.55 per diluted share, for the fourth quarter of 2021. Non-GAAP net income for the fourth quarter of 2022 increased to $246 million, or $4.75 per diluted share, compared to $245 million, or $4.54 per diluted share, for the prior year period.
Adjusted EBITDA for the fourth quarter of 2022 increased to $338 million, or 22.5% of adjusted net sales, compared to $319 million, or 21.7% of adjusted net sales, for the fourth quarter of 2021 due to higher gross profit and lower operating expenses.
As of Dec. 31, 2022, the company had cash and cash equivalents of $105 million and total debt of $2,032 million. For the full year 2022, the company generated $488 million of operating cash flow and made capital expenditures of $75 million, resulting in free cash flow of $413 million. The company made business acquisitions of $881 million, share repurchases of $751 million under its existing authorization, and had net debt proceeds of $1,037 million.
Net sales were $1,503 million in the fourth quarter of 2022 compared to $1,467 million in the fourth quarter of 2021. Fourth-quarter 2022 gross profit was $685 million compared to $669 million in the prior year period. Full year net sales were $5.781 billion, up 2% from FY 21, while gross profit was $2.624 billion, down 0.2%.
“Our team delivered strong fourth quarter results to close a challenging year. We are recovering from supply chain challenges and achieved sales and earnings performance at the high end of our outlook, driven by double-digit growth in the Americas,” said Anders Gustafsson, CEO of Zebra Technologies.
“Although our order backlog and pipeline of opportunities remain healthy, we are taking a cautious approach to our outlook in this uncertain macro environment. Our customer value proposition is resonating and we are well positioned to extend our lead in the industry with our innovative solutions. I am confident that Bill Burns, our incoming CEO, will continue to advance our Enterprise Asset Intelligence Vision and elevate Zebra’s role in digitizing & automating our customers’ operations.”
Fourth quarter 2022 net sales in the Enterprise Visibility & Mobility (EVM) segment were $1,022 million in the fourth quarter of 2022 compared with $1,031 million in the fourth quarter of 2021. Asset Intelligence & Tracking (AIT) segment net sales were $481 million in the fourth quarter of 2022 compared to $436 million in the prior year period. Consolidated organic net sales for the fourth quarter increased 3.9%.
Fourth-quarter gross margin was 45.6% for both the fourth quarter of 2022 and 2021. Current year gross margin was flat as unfavorable foreign currency changes offset the benefit from lower premium supply chain costs. Adjusted gross margin was 45.6% in the fourth quarter of 2022, compared to 45.7% in the prior year period.
Net income for the fourth quarter of 2022 was $186 million, or $3.57 per diluted share, compared to net income of $191 million, or $3.55 per diluted share, for the fourth quarter of 2021. Non-GAAP net income for the fourth quarter of 2022 increased to $246 million, or $4.75 per diluted share, compared to $245 million, or $4.54 per diluted share, for the prior year period.
Adjusted EBITDA for the fourth quarter of 2022 increased to $338 million, or 22.5% of adjusted net sales, compared to $319 million, or 21.7% of adjusted net sales, for the fourth quarter of 2021 due to higher gross profit and lower operating expenses.
As of Dec. 31, 2022, the company had cash and cash equivalents of $105 million and total debt of $2,032 million. For the full year 2022, the company generated $488 million of operating cash flow and made capital expenditures of $75 million, resulting in free cash flow of $413 million. The company made business acquisitions of $881 million, share repurchases of $751 million under its existing authorization, and had net debt proceeds of $1,037 million.