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| Intuit's Fiscal 2006 Revenue Grows 15 Percent |
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| Fourth-Quarter Revenue Increases 14 Percent |
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MOUNTAIN VIEW, Calif. -
Aug.
22,
2006 -
Intuit Inc. (Nasdaq: INTU) today announced strong results for its fourth quarter and fiscal year ended July 31, 2006. "Intuit just completed another very successful year of double-digit growth in revenue and earnings per share," said Steve Bennett, Intuit's president and chief executive officer. "Our two big businesses, QuickBooks and Consumer Tax, had outstanding results and our other business segments performed well. I'm very pleased with our position as we enter fiscal 2007."
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| Fiscal 2006 Financial Highlights |
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- Revenue of $2.3 billion increased 15 percent from fiscal 2005. Growth was driven by strong performance in Intuit’s two largest segments, QuickBooks-Related and Consumer Tax.
- Intuit had operating income of $559.5 million in accordance with GAAP, or Generally Accepted Accounting Principles, up 7 percent from fiscal 2005. Fiscal 2006 was the first year in which Intuit recorded an expense for employee stock options under SFAS 123(R). Total employee stock-based compensation expense was approximately $71.4 million for the full year. Intuit had non-GAAP operating income of $654.1 million, up 18 percent from fiscal 2005.
- Intuit had net income of $417.0 million in accordance with GAAP, up 9 percent from fiscal 2005. This represents diluted earnings per share, or EPS, of $1.16, up 15 percent over fiscal 2005. Fiscal 2006 was the first year in which Intuit recorded an expense for employee stock options under SFAS 123(R).
- Intuit's non-GAAP net income of $437.3 million increased 15 percent from fiscal 2005. Growth in non-GAAP net income was less than growth in non-GAAP operating income due to a higher tax rate in fiscal 2006. Non-GAAP diluted EPS of $1.21 grew 20 percent over fiscal 2005.
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| Fiscal 2006 Business Segment Revenue Growth |
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- QuickBooks-Related revenue grew 14 percent over fiscal 2005 to $861.7 million.
- Consumer Tax revenue grew 25 percent over fiscal 2005 to $710.5 million.
- Intuit-Branded Small Business revenue of $251.5 million was up 9 percent yearover-year.
- Professional Tax revenue increased 3 percent over fiscal 2005 to $272.9 million.
- Revenue from Other Businesses, which includes Quicken and Canada, was up 13 percent for the year to $245.7 million.
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| Fourth-Quarter 2006 Highlights |
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- Revenue of $342.9 million increased 14 percent from the year-ago quarter.
- Intuit had an operating loss of $56.9 million in accordance with GAAP. Intuit typically posts a seasonal loss in its fourth quarter when it has little revenue from its tax businesses but expenses remain relatively constant. On a non-GAAP basis,Intuit had an operating loss of $36.3 million.
- Intuit had a net loss of $18.9 million in accordance with GAAP, compared to a net loss of $20.0 million in the year-ago quarter. This represents a loss of $0.06 per share versus a loss of $0.06 per share in the fourth quarter of fiscal 2005.
- Intuit had a non-GAAP net loss of $10.5 million, compared to a net loss of $14.0 million in the year-ago quarter. This represents a non-GAAP loss per share of $0.03 versus a loss of $0.04 in the fourth quarter of fiscal 2005.
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| Forward-Looking Guidance for Fiscal 2007 |
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Intuit provided its financial guidance for fiscal 2007, which will end on July 31, 2007. The company expects:
- Revenue of $2.53 billion to $2.58 billion, or year-over-year growth of approximately 8 percent to 10 percent. Revenue guidance for each quarter of fiscal 2007 is provided on the accompanying fact sheet.
- GAAP operating income of $620 million to $646 million, versus $560 million in fiscal 2006, or growth of 11 percent to 15 percent. On a non-GAAP basis operating income is expected to be $720 million to $746 million, or growth of approximately 10 percent to 14 percent over fiscal 2006.
- GAAP diluted EPS of $1.18 to $1.22, or growth of 2 percent to 5 percent. In accordance with GAAP, fiscal 2006 EPS includes $0.11 from discontinued operations. On a non-GAAP basis, diluted EPS is expected to be $1.36 to $1.40,up approximately 12 percent to 16 percent from fiscal 2006. GAAP and non-GAAP EPS guidance for each quarter of fiscal 2007 is provided on the accompanying fact sheet.
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| Forward-Looking Guidance and New Business Segments |
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Intuit has changed its business segments to reflect a new management structure and to better align reporting with the company’s strategy. Definitions of the new segments and expected fiscal 2007 revenue by segment are as follows:
- QuickBooks includes QuickBooks software and support and financial supplies. For fiscal 2007, Intuit expects revenue of $577 million to $599 million, or growth of approximately 8 percent to 12 percent over fiscal 2006.
- Payroll & Payments is a new segment that includes Intuit's Do It Yourself Payroll, Outsourced and Assisted Payroll and Innovative Merchant Solutions businesses. For fiscal 2007, Intuit expects revenue of $517 million to $536 million, or growth of approximately 12 percent to 16 percent.
- Consumer Tax has not changed. For fiscal 2007, Intuit expects revenue of $782 million to $817 million, or growth of approximately 10 percent to 15 percent.
- Professional Tax has not changed. For fiscal 2007, Intuit expects revenue of $273 million to $287 million, or growth of approximately 0 percent to 5 percent.
- Other Businesses includes Quicken and Canada, as well as Intuit Distribution Management Solutions and Intuit Real Estate Solutions. For fiscal 2007, Intuit expects revenue of $362 million to $380 million, or growth of approximately 0 percent to 5 percent.
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| Forward-Looking Guidance for First-Quarter 2007 |
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Intuit's expected results for the first quarter of fiscal 2007, which will end Oct.31, 2006 are:
- Revenue of $335 million to $350 million, which is annual growth of 10 percent to 15 percent.
- GAAP operating loss of $99 million to $114 million and non-GAAP operating loss of $75 million to $90 million. Intuit typically posts a seasonal loss in its first quarter when it has little revenue from its tax businesses but expenses remain relatively constant.
- GAAP net loss of $0.16 to $0.18 per share and non-GAAP net loss of $0.12 to $0.14 per share.
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| Webcast and Conference Call Information |
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A live audio webcast of Intuit's fourth-quarter and fiscal 2006 conference call is available at www.intuit.com/about_intuit/investors/webcast_events.html. The call begins today at 1:30 p.m. PDT. The replay of the audio webcast will remain on Intuit's Web site for one week after the conference call. Intuit has posted to its Web site this press release,including the attached tables and non-GAAP to GAAP reconciliations. Intuit will post the conference call script to the Web site shortly after the conference call concludes.
The conference call number is 866-837-9789 in the United States or 703-639-1425 from international locations. No reservation or access code is needed. A replay of the call will be available for one week by calling 888-266-2081, or 703-925-2533 from international locations. The access code is 945569.
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Intuit, the Intuit logo, Quicken, QuickBooks and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
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About Non-GAAP Financial Measures
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This press release and the accompanying tables and sheet titled "Intuit Facts" include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the section of the accompanying tables titled "About Non-GAAP Financial Measures" as well as the related Table B, Table E1 and Table E2 which follow it. A copy of the press release filed by Intuit on Aug. 22, 2006 can be found on the investor relations page of Intuit's Web site at www.intuit.com.
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Cautions About Forward-Looking Statements
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This press release contains forward-looking statements, including forecasts of Intuit's expected financial results; its prospects for the business in fiscal 2007 and beyond; all of the statements under the headings "Forward-Looking Guidance for Fiscal 2007," "Forward-Looking Guidance and New Business Segments" and "Forward-Looking Guidance for First-Quarter 2007;" and all information under the heading "Guidance" on the attached fact sheet.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: product introductions and price competition from our competitors, including Microsoft, 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; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products could harm our revenue, earnings and reputation, our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal tax returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; 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; 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; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2005 and in our other SEC filings. You can locate these reports through our Web site at www.intuit.com/about_intuit/investors. Forward-looking statements are based on information as of Aug. 22, 2006, and we do not undertake any duty to update any forward-looking statement or other information in this presentation.
(Fact Sheet follows)
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