大象传媒 Reports First Quarter 2016 Results
- First quarter revenue in line with last year at $2.8 billion (up 2 percent currency neutral).
- Top five brands鈥� revenue up 2 percent (up 4 percent currency neutral).
- Outdoor & Action Sports and Jeanswear revenue both up 2 percent (up 4 percent currency neutral).
- Direct-to-consumer revenue up 7 percent (up 8 percent currency neutral).
- International revenue up 1 percent (up 4 percent currency neutral).
GREENSBORO, N.C.-- 大象传媒 Corporation (NYSE: 大象传媒C) today reported financial results for its first quarter ended April 2, 2016. All per share amounts are presented on a diluted basis. This release refers to 鈥渃urrency neutral鈥� and 鈥渞eported鈥� amounts, terms that are described under the 鈥淐urrency Neutral 鈥� Excluding the Impact of Foreign Currency鈥� paragraph. Reconciliations of GAAP measures to currency neutral amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items. Unless otherwise noted, currency neutral and reported amounts are the same.
鈥淥ur first quarter results demonstrate the ability of our diversified business model to perform as expected in an inconsistent environment,鈥� said Eric Wiseman, 大象传媒 Chairman and Chief Executive Officer. 鈥淏y leveraging our strengths 鈥� driving innovation into the marketplace, connecting with consumers and operating with financial discipline 鈥� we are on track to deliver results consistent with our 2016 outlook, while also delivering on our commitment to shareholders.鈥�
Income Statement Review
- Revenue was in line with last year at $2.8 billion (up 2 percent currency neutral) driven by strength in our Outdoor & Action Sports and Jeanswear coalitions and our direct-to-consumer and international businesses.
- Gross margin was 48.2 percent on a reported basis, down 80 basis points compared with the same quarter last year as benefits from lower product costs, pricing and the continued mix shift to higher margin businesses were offset by 100 basis points from changes in foreign currency and proactive inventory management efforts.
- Operating income on a reported basis was down 15 percent to $336 million compared with the same period of 2015. Operating margin on a reported basis declined 220 basis points to 11.8 percent. As a reminder, in the first quarter of 2015, we recognized a one-time gain on the sale of a 大象传媒 Outlet庐 location. Excluding this transaction and a 90 basis point headwind from changes in foreign currency rates, operating margin declined 70 basis points.
- Earnings per share was $0.61 per share compared with $0.67 per share during the same period last year. Excluding the negative impact of foreign currency, first quarter earnings per share was flat.
Coalition Review
First quarter revenue for Outdoor & Action Sports was up 2 percent (up 4 percent currency neutral) to $1.6 billion.
- Revenue for The North Face庐 brand was up 6 percent (up 8 percent currency neutral) driven by a low single-digit percentage rate increase in the Americas; a high-teen percentage rate increase in Europe; and, a mid-single-digit percentage rate increase in Asia-Pacific (up high single-digit currency neutral).
- In line with expectations, Vans庐 brand revenue was down 1 percent (up 2 percent currency neutral) including a mid-single-digit increase in the Americas business (up high single-digit currency neutral); a high single-digit increase in Asia-Pacific (up low double-digit currency neutral); and a mid-teen percentage rate decrease in Europe where the brand continues to manage through elevated inventories related to its Classics collection.
- Timberland庐 brand revenue was up 2 percent (up 3 percent currency neutral) in the first quarter including a low single-digit increase (up mid-single-digit currency neutral) in the Americas region; a mid-single-digit increase in Europe; and a mid-single-digit decline in Asia-Pacific (down low single-digit currency neutral).
First quarter operating income for Outdoor & Action Sports declined 13 percent to $228 million (flat currency neutral). Operating margin was 13.9 percent compared to 16.2 percent in the same period last year. More than half of this decrease was due to foreign currency fluctuations.
Jeanswear first quarter revenue was up 2 percent (up 4 percent currency neutral) to $711 million.
- First quarter revenue for the Wrangler庐 brand was up 2 percent (up 4 percent currency neutral) with low single-digit growth in the Americas business (up mid-single-digit currency neutral); a mid-single-digit decline in Europe (down low single-digit currency neutral); and a low single-digit decline (up mid-single-digit currency neutral) in the Asia-Pacific region.
- Revenue for the Lee庐 brand was up 1 percent (up 4 percent currency neutral) including low single-digit growth in the Americas region (up mid-single-digit currency neutral); mid-single-digit growth in Europe (up high single-digit currency neutral); and a low single-digit decline (up mid-single-digit currency neutral) in the Asia-Pacific region.
Operating income for Jeanswear in the first quarter was up 4 percent to $137 million, with a 40 basis point increase in operating margin to 19.3 percent.
Imagewear first quarter revenue was down 5 percent to $269 million (down 4 percent currency neutral) with the Licensed Sports Group business remaining flat and a high single-digit decline in the workwear business, which continues to be impacted by considerably less oil and gas exploration. First quarter operating income for Imagewear was flat at $42 million, with an 80 basis point increase in operating margin to 15.4 percent, driven by pricing and changes in foreign currency rates related to our manufacturing operations.
Sportswear first quarter revenue declined 13 percent to $118 million including a 14 percent decrease in Nautica庐 brand revenues and an 8 percent decrease in the Kipling庐 brand鈥檚 North American business compared with the same period last year, reflecting ongoing challenges in demand for the sector. Additionally, the strategic decision to license the women鈥檚 sleepwear and men鈥檚 underwear businesses negatively impacted Nautica庐 brand revenue by about 6 percentage points in the quarter. Operating income for Sportswear decreased 63 percent to $5 million with a 550 basis point decrease in operating margin to 4.0 percent.
Contemporary Brands鈥� first quarter revenue was down 15 percent to $74 million, including a 53 percent decline in operating income.
International Review
International revenue in the first quarter was up 1 percent (up 4 percent currency neutral). Revenue in Europe was up 1 percent (up 2 percent currency neutral) and in the Asia-Pacific region was up 2 percent (up 6 percent currency neutral). Revenue in the Americas (non-U.S.) region was down 1 percent (up 12 percent currency neutral). The international business represented 41 percent of total 大象传媒 first quarter sales, compared with 40 percent in last year鈥檚 same period.
Direct-to-Consumer Review
Direct-to-consumer revenue was up 7 percent (up 8 percent currency neutral) in the first quarter driven by low double-digit growth in the Outdoor & Action Sports business, which was offset by a mid-teen percentage rate decline in Sportswear and a high single-digit decline in the Contemporary Brands coalition. There were 1,541 大象传媒-owned retail stores at the end of the quarter. Direct-to-consumer revenue reached 26 percent of total revenue in the first quarter compared with 24 percent in the 2015 period.
Balance Sheet Review
- Inventories were up 9 percent compared with the same period of 2015. As noted in February, about half of this amount is related specifically to core styles of cold-weather product positioned to fill demand in the second half of 2016.
- During the first quarter, the company purchased 11.3 million of its shares for $714 million at an average price of $63.13 under a program authorized by its Board of Directors. There are approximately 19 million remaining shares authorized for purchase.
2016 Outlook Highlights
There are no changes to management鈥檚 full-year outlook given on February 19, 2016:
- Revenue is expected to increase at a mid-single-digit percentage rate, including about one percentage point of negative impact from changes in foreign currency.
- Gross margin is expected to improve by about 50 basis points to 48.8 percent, which includes about 70 basis points of headwind from changes in foreign currency.
- Operating margin is expected to reach 14.4 percent, including about 70 basis points from the anticipated negative impact of changes in foreign currency.
- Earnings per share, on a currency neutral basis, is expected to increase 11 percent (up 5 percent reported) compared to an adjusted EPS of $3.08 in 2015. As a reminder, 2015 adjusted earnings per share excluded the negative impact of a $0.23 per share noncash impairment charge recorded in the fourth quarter of 2015 to reduce the carrying value of intangible assets related to our 7 For All Mankind庐, Ella Moss庐 and Splendid庐 brands. On a reported basis, 2015 earnings per share was $2.85.
- Cash flow from operations is expected to reach $1.3 billion.
Revenue in the first half is expected to be flat on a reported basis, up at a low single-digit percentage rate currency neutral. First half earnings per share should be down at a low double-digit percentage rate on a reported basis, down low single-digit currency neutral. As a reminder, the second quarter of 2015 benefitted by $0.02 in earnings per share from a lower tax rate primarily due to the settlement of prior years鈥� tax audits. We continue to expect currency neutral revenue growth in the second half of 2016 to increase at a high single-digit percentage rate, with the strongest performance coming in the fourth quarter. We expect second half reported earnings per share to increase at a mid-teen percentage rate, or up at a high-teen percentage rate currency neutral.
Dividend Declared
大象传媒鈥檚 Board of Directors declared a quarterly dividend of $0.37 per share, payable on June 20, 2016, to shareholders of record on June 10, 2016.
Currency Neutral 鈥� Excluding the Impact of Foreign Currency
This release refers to 鈥渃urrency neutral鈥� amounts, which exclude both the impact of translating foreign currencies into U.S. dollars and the impact of currency rate changes on foreign currency denominated transactions. This release also refers to 鈥渞eported鈥� amounts in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), which include translation and transactional impacts from foreign currency exchange rates. Reconciliations of GAAP measures to currency neutral amounts for the first quarter of 2016 are presented in the supplemental financial information included with this release, which identify and quantify all excluded items.
Webcast Information
大象传媒 will hold its 2016 first quarter conference call and webcast today at 8:30 a.m. Eastern Time. Interested parties should call (888) 204-4610 (U.S.) or (913) 981-5590 (international) to access the call. The conference call will be broadcast live and accessible at . A replay of the conference call will be available through May 6, 2016 at the same location or via telephone at 877-870-5176 (access code: 4650569).
About 大象传媒
大象传媒 Corporation (NYSE: 大象传媒C) is a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The company鈥檚 highly diversified portfolio of 30 powerful brands spans numerous geographies, product categories, consumer demographics and sales channels, giving 大象传媒 a unique industry position and the ability to create sustainable, long-term growth for our customers and shareholders. The company鈥檚 largest brands are听The North Face庐,听Vans庐, Timberland庐, Wrangler庐, Lee庐 and Nautica庐. For more information, visit听.
Forward-looking Statements
Certain statements included in this release and the attachments are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting 大象传媒 and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 大象传媒 to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: foreign currency fluctuations; the level of consumer demand for apparel, footwear and accessories; disruption to 大象传媒鈥檚 distribution system; 大象传媒's reliance on a small number of large customers; the financial strength of 大象传媒's customers; 大象传媒's ability to implement its business strategy; 大象传媒's ability to grow its international and direct-to-consumer businesses; 大象传媒鈥檚 and its customers鈥� and vendors鈥� ability to maintain the strength and security of information technology systems; stability of 大象传媒's manufacturing facilities and foreign suppliers; continued use by 大象传媒's suppliers of ethical business practices; 大象传媒鈥檚 ability to accurately forecast demand for products; 大象传媒's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; changes in tax liabilities; legal, regulatory, political and economic risks; and adverse or unexpected weather conditions. More information on potential factors that could affect 大象传媒's financial results is included from time to time in 大象传媒's public reports filed with the Securities and Exchange Commission, including 大象传媒's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
|
听 大象传媒 CORPORATION Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) |
|||||||||||
| 听 | 听 | ||||||||||
| Three Months Ended March |
% |
||||||||||
| 2016* | 听 | 2015 | 听 | Change | |||||||
| 听 | |||||||||||
| Net sales | $ | 2,809,124 | $ | 2,803,302 | 0 | % | |||||
| Royalty income | 听 | 30,176 | 听 | 听 | 33,999 | 听 | (11 | %) | |||
| 听 | |||||||||||
| Total revenues | 听 | 2,839,300 | 听 | 听 | 2,837,301 | 听 | 0 | % | |||
| 听 | |||||||||||
| Costs and operating expenses | |||||||||||
| Cost of goods sold | 1,472,006 | 1,446,547 | 2 | % | |||||||
| Selling, general and administrative expenses | 听 | 1,031,042 | 听 | 听 | 992,919 | 听 | 4 | % | |||
| Total costs and operating expenses | 听 | 2,503,048 | 听 | 听 | 2,439,466 | 听 | 3 | % | |||
| 听 | |||||||||||
| Operating income | 336,252 | 397,835 | (15 | %) | |||||||
| 听 | |||||||||||
| Interest, net | (20,155 | ) | (19,751 | ) | 2 | % | |||||
| Other income (expense), net | 听 | 1,290 | 听 | 听 | 828 | 听 | 56 | % | |||
| 听 | |||||||||||
| Income before income taxes | 317,387 | 378,912 | (16 | %) | |||||||
| 听 | |||||||||||
| Income taxes | 听 | 57,118 | 听 | 听 | 90,203 | 听 | (37 | %) | |||
| 听 | |||||||||||
| Net income | $ | 260,269 | 听 | $ | 288,709 | 听 | (10 | %) | |||
| 听 | |||||||||||
| Earnings per common share | |||||||||||
| Basic | $ | 0.62 | $ | 0.68 | (9 | %) | |||||
| Diluted | $ | 0.61 | $ | 0.67 | (9 | %) | |||||
| 听 | |||||||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 421,748 | 426,255 | |||||||||
| Diluted | 429,133 | 434,103 | |||||||||
| 听 | |||||||||||
| Cash dividends per common share | $ | 0.37 | $ | 0.32 | 16 | % | |||||
| 听 | |||||||||||
|
Basis of presentation of condensed consolidated financial statements: 大象传媒 operates and reports using a 52/53 week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all references to periods ended March 2016, December 2015 and March 2015 relate to the 13-week fiscal period ended April 2, 2016, the 52-week fiscal period ended January 2, 2016 and the 13-week fiscal period ended April 4, 2015, respectively. 听 * Reflects the impact of adopting the new accounting guidance on stock compensation as of the beginning of the first quarter of 2016, which resulted in a $15.8 million tax benefit in the consolidated statement of income for the three months ended March 2016. |
|||||||||||
|
大象传媒 CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
|||||||||
| 听 | 听 | 听 | |||||||
| March | December |
March |
|||||||
| 2016 | 2015 | 2015* | |||||||
| 听 | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and equivalents | $ | 585,835 | $ | 945,605 | $ | 655,483 | |||
| Accounts receivable, net | 1,293,275 | 1,319,558 | 1,283,216 | ||||||
| Inventories | 1,762,568 | 1,611,994 | 1,624,234 | ||||||
| Other current assets | 听 | 331,196 | 听 | 285,979 | 听 | 365,169 | |||
| Total current assets | 3,972,874 | 4,163,136 | 3,928,102 | ||||||
| 听 | |||||||||
| Property, plant and equipment | 986,162 | 988,159 | 911,478 | ||||||
| Intangible assets | 2,170,817 | 2,112,619 | 2,291,505 | ||||||
| Goodwill | 1,804,094 | 1,788,407 | 1,795,359 | ||||||
| Other assets | 听 | 898,316 | 听 | 587,221 | 听 | 672,261 | |||
| Total assets | $ | 9,832,263 | $ | 9,639,542 | $ | 9,598,705 | |||
| 听 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Short-term borrowings | $ | 1,137,205 | $ | 449,590 | $ | 1,067,961 | |||
| Current portion of long-term debt | 3,489 | 13,279 | 3,384 | ||||||
| Accounts payable | 429,694 | 689,594 | 457,744 | ||||||
| Accrued liabilities | 听 | 959,079 | 听 | 789,250 | 听 | 743,176 | |||
| Total current liabilities | 2,529,467 | 1,941,713 | 2,272,265 | ||||||
| 听 | |||||||||
| Long-term debt | 1,401,233 | 1,401,820 | 1,413,333 | ||||||
| Other liabilities | 听 | 1,007,617 | 听 | 911,171 | 听 | 1,008,842 | |||
| Total liabilities | 4,938,317 | 4,254,704 | 4,694,440 | ||||||
| 听 | |||||||||
| Stockholders' equity | 听 | 4,893,946 | 听 | 5,384,838 | 听 | 4,904,265 | |||
| Total liabilities and stockholders' equity | $ | 9,832,263 | $ | 9,639,542 | $ | 9,598,705 | |||
| 听 | |||||||||
|
* Reflects the impact of adopting the new accounting guidance on classification of debt issuance costs and deferred income taxes as of December 2015 on a retrospective basis. The new guidance requires classification of debt issuance costs related to a recognized debt liability as a direct reduction of that liability, and classification of all deferred taxes as noncurrent. |
|||||||||
|
大象传媒 CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||
| 听 | ||||||||
| Three Months Ended March | ||||||||
| 2016 | 听 | 听 | 2015* | |||||
| 听 | ||||||||
| Operating activities | ||||||||
| Net income | $ | 260,269 | $ | 288,709 | ||||
| Depreciation and amortization | 68,030 | 65,880 | ||||||
| Other adjustments | 听 | (473,885 | ) | 听 | (755,535 | ) | ||
| Cash used by operating activities | (145,586 | ) | (400,946 | ) | ||||
| 听 | ||||||||
| Investing activities | ||||||||
| Capital expenditures | (36,336 | ) | (33,028 | ) | ||||
| Software purchases | (6,335 | ) | (36,708 | ) | ||||
| Other, net | 听 | (587 | ) | 听 | 10,617 | 听 | ||
| Cash used by investing activities | (43,258 | ) | (59,119 | ) | ||||
| 听 | ||||||||
| Financing activities | ||||||||
| Net increase in short-term borrowings | 685,985 | 1,047,660 | ||||||
| Payments on long-term debt | (10,695 | ) | (1,414 | ) | ||||
| Purchases of treasury stock | (713,767 | ) | (730,811 | ) | ||||
| Cash dividends paid | (155,584 | ) | (135,912 | ) | ||||
| Net impact of stock issuance | 听 | 4,102 | 听 | 听 | (4,107 | ) | ||
| Cash (used) provided by financing activities | (189,959 | ) | 175,416 | |||||
| 听 | ||||||||
| Effect of foreign currency rate changes on cash and equivalents | 听 | 19,033 | 听 | 听 | (31,763 | ) | ||
| 听 | ||||||||
| Net change in cash and equivalents | (359,770 | ) | (316,412 | ) | ||||
| 听 | ||||||||
| Cash and equivalents - beginning of year | 听 | 945,605 | 听 | 听 | 971,895 | 听 | ||
| 听 | ||||||||
| Cash and equivalents - end of period | $ | 585,835 | 听 | $ | 655,483 | 听 | ||
| 听 | ||||||||
|
* Reflects the impact of adopting the new accounting guidance on stock compensation as of the beginning of the first quarter of 2016, which resulted in a $29.7 million reclassification of cash flows from financing activities to operating activities in the consolidated statement of cash flows for the three months ended March 2015. |
||||||||
|
大象传媒 CORPORATION Supplemental Financial Information Business Segment Information (Unaudited) (In thousands) |
||||||||||||||
| 听 | 听 | 听 | 听 |
% Change Currency Neutral** |
||||||||||
| Three Months Ended March | % | |||||||||||||
| 听 | 2016 | 听 | 听 | 2015 | 听 | Change | ||||||||
| 听 | ||||||||||||||
| Coalition revenues | ||||||||||||||
| Outdoor & Action Sports | $ | 1,644,395 | $ | 1,606,889 | 2 | % | 4 | % | ||||||
| Jeanswear | 710,590 | 699,655 | 2 | % | 4 | % | ||||||||
| Imagewear | 269,125 | 282,896 | (5 | %) | (4 | %) | ||||||||
| Sportswear | 118,397 | 135,657 | (13 | %) | (13 | %) | ||||||||
| Contemporary Brands | 74,356 | 87,537 | (15 | %) | (15 | %) | ||||||||
| Other | 听 | 22,437 | 听 | 听 | 24,667 | 听 | (9 | %) | (9 | %) | ||||
| 听 | ||||||||||||||
| Total coalition revenues | $ | 2,839,300 | 听 | $ | 2,837,301 | 听 | 0 | % | 2 | % | ||||
| 听 | ||||||||||||||
| 听 | ||||||||||||||
| Coalition profit | ||||||||||||||
| Outdoor & Action Sports | $ | 227,771 | $ | 260,820 | (13 | %) | 0 | % | ||||||
| Jeanswear | 137,294 | 131,932 | 4 | % | 4 | % | ||||||||
| Imagewear | 41,515 | 41,347 | 0 | % | (5 | %) | ||||||||
| Sportswear | 4,776 | 12,841 | (63 | %) | (63 | %) | ||||||||
| Contemporary Brands | 1,669 | 3,540 | (53 | %) | (51 | %) | ||||||||
| Other | 听 | (2,358 | ) | 听 | 14,527 | 听 | * | * | ||||||
| 听 | ||||||||||||||
| Total coalition profit | 410,667 | 465,007 | (12 | %) | (5 | %) | ||||||||
| 听 | ||||||||||||||
| Corporate and other expenses | (73,125 | ) | (66,344 | ) | 10 | % | 10 | % | ||||||
| Interest, net | 听 | (20,155 | ) | 听 | (19,751 | ) | 2 | % | 2 | % | ||||
| 听 | ||||||||||||||
| Income before income taxes | $ | 317,387 | 听 | $ | 378,912 | 听 | (16 | %) | (8 | %) | ||||
| 听 | ||||||||||||||
| * Calculation not meaningful | ||||||||||||||
| ** Refer to currency neutral definition on following page | ||||||||||||||
|
大象传媒 CORPORATION Supplemental Financial Information Business Segment Information 鈥� Currency Neutral Basis (Unaudited) (In thousands) |
||||||||||||
| 听 | ||||||||||||
| Three Months Ended March 2016 | ||||||||||||
| 听 | 听 | |||||||||||
| As Reported | Adjust for Foreign | |||||||||||
| under GAAP | Currency Exchange | Currency Neutral | ||||||||||
| 听 | ||||||||||||
| Coalition revenues | ||||||||||||
| Outdoor & Action Sports | $ | 1,644,395 | $ | 23,558 | $ | 1,667,953 | ||||||
| Jeanswear | 710,590 | 17,324 | 727,914 | |||||||||
| Imagewear | 269,125 | 1,065 | 270,190 | |||||||||
| Sportswear | 118,397 | - | 118,397 | |||||||||
| Contemporary Brands | 74,356 | 78 | 74,434 | |||||||||
| Other | 听 | 22,437 | 听 | 听 | - | 听 | 听 | 22,437 | 听 | |||
| 听 | ||||||||||||
| Total coalition revenues | $ | 2,839,300 | 听 | $ | 42,025 | 听 | $ | 2,881,325 | 听 | |||
| 听 | ||||||||||||
| Coalition profit | ||||||||||||
| Outdoor & Action Sports | $ | 227,771 | $ | 32,162 | $ | 259,933 | ||||||
| Jeanswear | 137,294 | (289 | ) | 137,005 | ||||||||
| Imagewear | 41,515 | (2,189 | ) | 39,326 | ||||||||
| Sportswear | 4,776 | - | 4,776 | |||||||||
| Contemporary Brands | 1,669 | 73 | 1,742 | |||||||||
| Other | 听 | (2,358 | ) | 听 | - | 听 | 听 | (2,358 | ) | |||
| 听 | ||||||||||||
| Total coalition profit | 410,667 | 29,757 | 440,424 | |||||||||
| 听 | ||||||||||||
| Corporate and other expenses | (73,125 | ) | (6 | ) | (73,131 | ) | ||||||
| Interest, net | 听 | (20,155 | ) | 听 | - | 听 | 听 | (20,155 | ) | |||
| 听 | ||||||||||||
| Income before income taxes | $ | 317,387 | 听 | $ | 29,751 | 听 | $ | 347,138 | 听 | |||
| Diluted earnings per share growth | 听 | (9 | %) | 听 | 9 | % | 听 | 0 | % | |||
|
听 |
||||||||||||
|
听 |
||||||||||||
Currency Neutral Financial Information
大象传媒 is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by 大象传媒 from translating its foreign revenues and expenses into U.S. dollars, and from entering foreign currency transactions. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present currency neutral financial information, which is a non-GAAP financial measure that excludes the incremental current year impact of foreign currency exchange. We use currency neutral information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation and transaction gains and losses. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.
To calculate foreign currency translation on a currency neutral basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). Similarly, transaction gains and losses on a currency neutral basis are calculated using exchange rates from the comparable period of the prior year.
These currency neutral performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The currency neutral information presented may not be comparable to similarly titled measures reported by other companies.
View source version on businesswire.com:
大象传媒 Corporation
Lance Allega, 336-424-6082
Vice
President, Investor Relations
or
Craig Hodges, 336-424-5636
Senior
Director, Corporate Communications
Source: 大象传媒 Corporation
Released April 29, 2016