The non-GAAP financial results highlighted above, and the non-GAAP financial outlook for 2011 and 2012 discussed below, represent non-GAAP financial measures. Reconciliations of these measures to the appropriate GAAP measures for the three and twelve months ended December 31, 2011 and 2010, and for the 2012 financial outlook, are included in the condensed financial information included in this release.
Management's 2012 Financial Outlook
The Company's first quarter and 2012 revenue and earnings per share guidance is provided below. The Company last provided its guidance on November 3, 2011. The previously provided guidance has been updated to factor in unfavorable currency changes that are partially offset by an improved business outlook. The earnings per share guidance is provided on both a GAAP basis and a non-GAAP basis. Non-GAAP diluted earnings per share excludes charges for stock-based compensation, the income statement effects of acquisition accounting for deferred revenue, acquisition-related amortization of intangible assets and acquisition-related expenses.
First Quarter 2012 Guidance
The Company currently expects the following for the quarter ending March 31, 2012:
- GAAP Revenue in the range of $182.8 - $189.8 million
- Non-GAAP Revenue in the range of $185.0 - $192.0 million
- GAAP diluted earnings per share of $0.43 - $0.49
- Non-GAAP diluted earnings per share of $0.64 - $0.67
Fiscal Year 2012 Guidance
The Company currently expects the following for the fiscal year ending December 31, 2012:
- GAAP revenue in the range of $804.6 - $826.6 million
- Non-GAAP revenue in the range of $808.0 - $830.0 million
- GAAP diluted earnings per share of $2.01 - $2.17
- Non-GAAP diluted earnings per share of $2.77 - $2.87
These statements are forward-looking and actual results may differ materially. Non-GAAP diluted earnings per share is a supplemental financial measure and should not be considered as a substitute for, or superior to, diluted earnings per share determined in accordance with GAAP.
Conference Call Information
ANSYS will hold a conference call at 10:30 a.m. Eastern Time on February 23, 2012 to discuss fourth quarter and fiscal year 2011 results. To participate in the live conference call, dial 800-860-2442 (US), 866-605-3852 (Canada) or 412-858-4600 (Int'l). The call will be recorded and a replay will be available approximately two hours after the call ends. The replay will be available for ten days by dialing 877-344-7529 (US) or 412-317-0088 (Canada and Int'l) and entering the pass code 10008769. The archived webcast can be accessed, along with other financial information, on ANSYS' website at http://investors.ansys.com.
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ANSYS, INC. AND SUBSIDIARIES | ||||
Condensed Consolidated Balance Sheets | ||||
(in thousands) | ||||
(Unaudited) | ||||
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| |
| December 31, 2011 |
| December 31, 2010 | |
ASSETS: |
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| |
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| |
Cash & short-term investments | $ 472,404 |
| $ 472,934 | |
Accounts receivable, net | 84,602 |
| 76,604 | |
Goodwill | 1,225,375 |
| 1,035,083 | |
Other intangibles, net | 383,420 |
| 278,320 | |
Other assets | 282,669 |
| 263,935 | |
|
|
|
| |
Total assets | $ 2,448,470 |
| $ 2,126,876 | |
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| |
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LIABILITIES & STOCKHOLDERS' EQUITY: |
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| |
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Deferred revenue | $ 259,155 |
| $ 199,805 | |
Long-term debt (including current portion) | 127,572 |
| 159,525 | |
Other liabilities | 307,270 |
| 237,617 | |
Stockholders' equity | 1,754,473 |
| 1,529,929 | |
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| |
Total liabilities & stockholders' equity | $ 2,448,470 |
| $ 2,126,876 | |
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ANSYS, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Statements of Income | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
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|
| Three Months Ended |
| Twelve Months Ended | |||||||
|
| December 31, 2011 |
| December 31, 2010 |
| December 31, 2011 |
| December 31, 2010 | |||
Revenue: |
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|
|
|
|
| ||||
| Software licenses | $ 128,101 |
| $ 105,060 |
| $425,881 |
| $ 351,033 | |||
| Maintenance and service | 70,108 |
| 61,513 |
| 265,568 |
| 229,203 | |||
|
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|
|
|
|
|
|
| |||
| Total revenue | 198,209 |
| 166,573 |
| 691,449 |
| 580,236 | |||
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|
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| |||
Cost of sales: |
|
|
|
|
|
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| Software licenses | 5,740 |
| 3,296 |
| 15,884 |
| 10,770 | |||
| Amortization | 9,735 |
| 8,185 |
| 33,728 |
| 32,757 | |||
| Maintenance and service | 17,867 |
| 15,326 |
| 69,402 |
| 57,352 | |||
| Total cost of sales | 33,342 |
| 26,807 |
| 119,014 |
| 100,879 | |||
|
|
|
|
|
|
|
|
| |||
Gross profit | 164,867 |
| 139,766 |
| 572,435 |
| 479,357 | ||||
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| |||
Operating expenses: |
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|
|
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|
| ||||
| Selling, general and administrative | 56,571 |
| 46,935 |
| 180,357 |
| 155,096 | |||
| Research and development | 29,751 |
| 23,317 |
| 108,530 |
| 88,990 | |||
| Amortization | 5,402 |
| 4,129 |
| 17,989 |
| 16,003 | |||
| Total operating expenses | 91,724 |
| 74,381 |
| 306,876 |
| 260,089 | |||
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|
|
|
|
|
|
|
| |||
Operating income | 73,143 |
| 65,385 |
| 265,559 |
| 219,268 | ||||
|
|
|
|
|
|
|
|
| |||
Interest expense | (1,002) |
| (792) |
| (3,332) |
| (4,488) | ||||
Interest income | 804 |
| 630 |
| 3,000 |
| 1,911 | ||||
Other income (expense), net | 175 |
| 645 |
| (369) |
| (297) | ||||
|
|
|
|
|
|
|
|
| |||
Income before income tax provision | 73,120 |
| 65,868 |
| 264,858 |
| 216,394 | ||||
|
|
|
|
|
|
|
|
| |||
Income tax provision | 25,663 |
| 16,728 |
| 84,183 |
| 63,262 | ||||
|
|
|
|
|
|
|
|
| |||
Net income | $ 47,457 |
| $ 49,140 |
| $ 180,675 |
| $ 153,132 | ||||
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Earnings per share – basic: |
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|
|
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|
| ||||
| Basic earnings per share | $ 0.51 |
| $ 0.54 |
| $ 1.96 |
| $ 1.69 | |||
| Weighted average shares – basic | 92,496 |
| 91,278 |
| 92,120 |
| 90,684 | |||
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Earnings per share - diluted: |
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| ||||
| Diluted earnings per share | $ 0.50 |
| $ 0.52 |
| $ 1.91 |
| $ 1.64 | |||
| Weighted average shares – diluted | 94,720 |
| 93,706 |
| 94,381 |
| 93,209 | |||
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ANSYS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (Unaudited) (in thousands, except percentages and per share data) | |||||||
| Three Months Ended | ||||||
| December 31, 2011 | December 31, 2010 | |||||
| As | Non-GAAP | As | Non-GAAP | |||
| Reported | Adjustments | Results | Reported | Adjustments | Results | |
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| |
Total revenue | $198,209 | $4,696(1) | $202,905 | $166,573 |
| $166,573 | |
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|
|
|
|
|
| |
Operating income | 73,143 | 26,478(2) | 99,621 | 65,385 | $17,429(4) | 82,814 | |
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| |
Operating profit margin | 36.9% |
| 49.1% | 39.3% |
| 49.7% | |
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| |
Net income | $47,457 | $17,384(3) | $64,841 | $49,140 | $11,479(5) | $60,619 | |
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Earnings per share - diluted: |
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| |
Diluted earnings per share | $0.50 |
| $0.68 | $0.52 |
| $0.65 | |
Weighted average shares - diluted | 94,720 |
| 94,720 | 93,706 |
| 93,706 | |
(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with accounting for deferred revenue in business combinations. (2) Amount represents $15.1 million of amortization expense associated with intangible assets acquired in business acquisitions, $6.5 million of stock-based compensation expense, the $4.7 million adjustment to revenue as reflected in (1) above and $0.1 million of transaction expenses related to the Apache acquisition. (3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $9.1 million. (4) Amount represents $12.3 million of amortization expense associated with intangible assets acquired in business acquisitions and a $5.1 million charge for stock-based compensation. (5) Amount represents the impact of the adjustments to operating income referred to in (4) above, adjusted for the related income tax impact of $6.0 million. | |||||||