- Net sales up 17% to $1.172 billion and non-GAAP EPS up 21% to $0.95
- Non-GAAP operating income up 18% to $93 million and generated $113 million cash from operations
- Secured $1.6 billion in new awards during Q1
- Completed the acquisition of Duran Audio; Martin Lighting acquisition ahead in synergy savings
- Launched new restructuring program to achieve annualized savings of approximately $25 million
STAMFORD, CT, October 31, 2013 – Harman International Industries, Incorporated, the leading global infotainment and audio group (NYSE: HAR), today announced results for the first quarter ended September 30, 2013.
Net sales for the first quarter were $1.172 billion, an increase of 17 percent compared to the same period last year, as all three of the Company’s divisions reported sales increases. Net sales increased due to the expansion of recent production launches in the Infotainment division, growth in home and multimedia and car audio within the Lifestyle division, and the expansion of the Company’s product portfolio into lighting within the Professional division.
Excluding restructuring and non-recurring charges, first quarter non-GAAP operating income was $93 million, compared to $79 million in the same period last year. On the same non-GAAP basis, earnings per diluted share were $0.95 for the quarter compared to $0.79 in the same period last year. On a GAAP basis, first quarter operating income was $69 million, compared to $79 million in the same period last year, and earnings per diluted share were $0.66 for the quarter compared to $0.79. The Company recorded restructuring and non-recurring charges of $24 million in the quarter.
Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “We are pleased that our fiscal year is off to a solid start with all three of our divisions reporting double-digit top line growth, which resulted in stronger bottom-line performance. During the quarter, we also positioned Harman for continued growth, as we secured over $1.3 billion of new infotainment awards and gained market share through competitive replacements based on our unsurpassed innovation. Our patent count jumped from 4,900 to over 5,200 patents and filings, a further testament to our technology leadership.”
Paliwal continued, “We continue to take aggressive cost actions and implemented a new restructuring program in Germany this quarter to further realign our cost structure. These actions are expected to yield annual savings of approximately $25 million beginning in fiscal year 2015.”
| FY 2014 Key Figures – Total Company | Three Months Ended September 30 | |||
|
| Increase (Decrease) | |||
| $ millions (except per share data) | 3M FY14 | 3M FY13 | Including Currency Changes | Excluding Currency Changes1 |
| Net sales | 1,172 | 998 | 17% | 14% |
| Gross profit | 322 | 278 | 16% | 13% |
| Percent of net sales | 27.4% | 27.9% | ||
| SG&A & Other | 252 | 199 | 27% | 24% |
| Operating income | 69 | 79 | (12%) | (14%) |
| Percent of net sales | 5.9% | 7.9% | ||
| EBITDA | 101 | 108 | (6%) | (8%) |
| Percent of net sales | 8.6% | 10.8% | ||
| Net Income | 46 | 55 | (15%) | (17%) |
| Diluted earnings per share | 0.66 | 0.79 | (16%) | (18%) |
| Restructuring-related costs and other non-GAAP items | 24 | 0 | ||
| Non-GAAP | ||||
| Gross profit(1) | 324 | 278 | 16% | 14% |
| Percent of net sales(1) | 27.6% | 27.9% | ||
| SG&A & Other(1) | 230 | 199 | 16% | 13% |
| Operating income(1) | 93 | 79 | 18% | 16% |
| Percent of net sales(1) | 8.0% | 7.9% | ||
| EBITDA(1) | 123 | 108 | 14% | 12% |
| Percent of net sales(1) | 10.5% | 10.8% | ||
| Net Income(1) |
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Sandra Rowland
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