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| Intuit Reaffirms Quarterly and Fiscal 2006 Guidance |
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MOUNTAIN VIEW, Calif. -
September
28,
2005 -
Intuit Inc. (Nasdaq: INTU) today reaffirmed its financial guidance for each quarter and its full fiscal year 2006, which it provided on Aug. 24, 2005 (see charts below). The announcement was made in conjunction with the company's annual Investor Day, which is being held this morning at Intuit's headquarters in Mountain View, Calif.
"I'm very excited about Intuit's future," said Steve Bennett, Intuit's president and chief executive officer. "We have proven Right for Me growth strategies in all our businesses and we're gaining momentum in execution. Looking ahead, we see lots of opportunities to drive growth across the board — by elevating our leadership in our existing businesses, extending our existing businesses with add-on solutions and entering and creating new businesses."
Forward-Looking Guidance for 2006
($ millions except EPS) |
| |
Q1 06 |
Q2 06 |
Q3 06 |
Q4 06 |
FY 06 |
| Revenue% change YOY |
$270-$285
7%-13% |
$670-$710
3%-10% |
$890-$950
7%-14% |
$300-$330
(1%)-9% |
$2,180-$2,240
7%-10% |
| GAAP Operating Income (Loss) |
($121)-($111) |
|
|
|
$501-$523 |
| Non-GAAP Operating Income (Loss) |
($95)-($85) |
|
|
|
$595-$617 |
| Non-GAAP Operating Margin |
NA |
|
|
|
27%-28% |
| GAAP EPS |
($0.43)-($0.38) |
$0.66-$0.76 |
$1.67-$1.92 |
($0.23)-($0.18) |
$1.86-$1.96 |
| Non-GAAP EPS |
($0.35)-($0.30) |
$0.75-$0.85 |
$1.75-$2.00 |
($0.15)-($0.10) |
$2.19-$2.29 |
|
| Fiscal 2006 Business Segment Revenue Growth Guidance |
| Segment |
YOY Revenue Growth |
| QuickBooks-Related |
5%-10% |
| Intuit-Branded Small Business |
5%-10% |
| Consumer Tax |
10%-15% |
| Pro Tax |
0%-5% |
| Other Businesses |
5%-10% |
|
Webcast Information
Intuit's Investor Day presentations will be broadcast live on Intuit's Web site at http://web.intuit.com/about_intuit/investors/webcast_events.html beginning at 8:30 a.m. PDT today. Those viewing the webcast should go to the Web site before the meeting to install any necessary audio software. A replay of the webcast will be available on Intuit's Web site approximately two hours after the conclusion of the live event and will remain on the site through March 31, 2006.
About Intuit Inc.
Founded in 1983, Intuit had annual revenue of more than $2 billion in its fiscal year 2005. The company has nearly 7,000 employees with major offices in 13 states across the United States, and offices in Canada and the United Kingdom. More information can be found at www.intuit.com.
Intuit and the Intuit logo, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. These measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. Intuit's management refers to these non-GAAP financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Intuit's historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
Intuit's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit's operating results because they exclude amounts that are not necessarily related to Intuit's core operating results. The forward-looking guidance for non-GAAP income, loss, earnings per share and loss per share in fiscal 2006 also excludes estimated expenses for stock-based compensation and associated taxes that Intuit will begin recording under SFAS 123(R) in the first quarter of fiscal 2006. These estimated stock-based compensation expenses and associated taxes are excluded from non-GAAP financial measures in order to facilitate the comparison of guidance for future periods with results for past periods, which did not include such stock-based compensation expenses. The forward-looking non-GAAP guidance for operating income/loss also excludes amortization of purchased assets and acquisition-related charges. The forward-looking guidance for non-GAAP net income/loss and diluted earnings/loss per share excludes gains and losses on marketable securities and other investments and the tax effects of these items as well as net income or loss from discontinued operations. The accompanying tables provide more details on Intuit's historical performance and financial projections, the GAAP financial measures that are most directly comparable to Intuit's non-GAAP financial measures, and the reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including forecasts of our expected financial results. All of the statements under the headings "Forward-Looking Guidance for 2006" and "Fiscal 2006 Business Segment Revenue Growth Guidance" are forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following: product introductions and price competition from our competitors, including competition from Microsoft, which has announced its intention to target small business customers with accounting software and associated services, can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively affect our operating results and market position; our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; revenue growth for some of our products is slowing and we must successfully introduce new products and services to meet our growth and profitability objectives; our new product offerings may not succeed or they may negatively impact our profitability if customers elect to purchase lower-priced simplified offerings instead of our higher priced offerings; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs; and our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2005 and other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of September 28, 2005, and we do not undertake any duty to update any forward-looking statement or other information in this press release.
INTUIT INC.
RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
TO PROJECTED GAAP REVENUE, OPERATING INCOME OR LOSS, AND EPS
(All Figures Except GAAP EPS Exclude Intuit Information Technology Solutions)
(In thousands, except per share amounts)
(Unaudited)
|
The following tables reconcile the differences between the non-GAAP financial measures presented in the accompanying press release and the most directly comparable measures prepared in accordance with Generally Accepted Accounting Principles (GAAP).
|
|
| [a] |
Reflects estimated adjustments for amortization of purchased assets of approximately $2.4 million, acquisition-related charges of approximately $4.5 million and stock-based compensation expense of approximately $19.2 million. |
| [b] |
Reflects the adjustments in item [a], the income tax benefit related to these adjustments and estimated net income from discontinued operations of $3.2 million. |
| [c] |
Reflects estimated adjustments for amortization of purchased assets of approximately $2.1 million, acquisition-related charges of approximately $4.3 million, stock-based compensation expense of approximately $17.7 million and the income tax benefit related to these adjustments. |
| [d] |
Reflects estimated adjustments for amortization of purchased assets of approximately $1.6 million, acquisition-related charges of approximately $4.0 million, stock-based compensation expense of approximately $16.6 million and the income tax benefit related to these adjustments. |
| [e] |
Reflects estimated adjustments for amortization of purchased assets of approximately $1.5 million, acquisition-related charges of approximately $3.6 million, stock-based compensation expense of approximately $16.3 million and the income tax benefit related to these adjustments. |
| [f] |
Reflects estimated adjustments for amortization of purchased assets of approximately $7.6 million, acquisition-related charges of approximately $16.4 million and stock-based compensation expense of approximately $69.8 million. |
| [g] |
Reflects the adjustments in item [f], the income tax benefit related to these adjustments and estimated net income from discontinued operations of $3.2 million.
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Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies.
Intuit's management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit's operating results because they exclude amounts that are not related to Intuit's core operating results or facilitate the comparison of guidance for future periods with results for past periods. The following items have been excluded from our non-GAAP guidance.
- Stock-based compensation expenses and associated taxes. Our non-GAAP financial measures exclude estimated expenses for stock-based compensation and the associated taxes that Intuit will begin recording under SFAS 123(R) in the first quarter of fiscal 2006. We exclude these amounts from our non-GAAP financial measures in order to facilitate the comparison of guidance for future periods with results for past periods, which did not include such stock-based compensation expenses.
- Amortization of purchased intangible assets and acquisition-related charges. In accordance with GAAP, amortization of purchased intangible assets in cost of revenue includes amortization of software and other technology assets related to acquisitions and acquisition-related charges in operating expenses includes amortization of other purchased intangible assets such as customer lists and covenants not to compete. We exclude these items from our non-GAAP operating income or loss because we believe that excluding these items facilitates comparisons to our historical core operating results and to the results of other companies in our industry, which have their own unique acquisition histories.
- Gains and losses on marketable securities and other investments. We exclude these amounts from our non-GAAP net income or loss because they are unrelated to our core business operating results.
- Operating results and gains and losses on the sale of discontinued operations. From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP net income or loss and net income or loss per share because they are unrelated to our ongoing business operations.
Intuit's management refers to these non-GAAP financial measures in assessing the performance of Intuit's ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Intuit's historical operating results. Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.
The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures in the tables above include all information reasonably available to Intuit at the date of this press release. These tables include adjustments that management can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable securities. |
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