Presidio, Inc. (NASDAQ:PSDO) (together with its subsidiaries,
“Presidio” or the “Company”), a leading North American IT solutions
provider delivering Digital Infrastructure, Cloud and Security
solutions to create agile, secure infrastructure platforms for its
customers, today announced its financial results for its fiscal
fourth quarter and fiscal year ended June 30, 2019.
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Three Months Ended |
|
|
|
Fiscal Year Ended |
|
|
| (in $
millions) |
|
June 30,2019 |
|
June 30,2018 |
|
% Chg |
|
June 30,2019 |
|
June 30,2018 |
|
% Chg |
| |
|
|
|
(as adjusted)1 |
|
|
|
|
|
(as adjusted)1 |
|
|
|
Total Revenue |
|
$ |
803.2 |
|
|
$ |
731.3 |
|
|
9.8 |
% |
|
$ |
3,026.1 |
|
|
$ |
2,765.2 |
|
|
9.4 |
% |
| Total Gross Margin |
|
$ |
168.0 |
|
|
$ |
150.4 |
|
|
11.7 |
% |
|
$ |
638.4 |
|
|
$ |
584.0 |
|
|
9.3 |
% |
|
Gross Margin % |
|
20.9 |
% |
|
20.6 |
% |
|
0.3 |
% |
|
21.1 |
% |
|
21.1 |
% |
|
— |
% |
| Net Income |
|
$ |
9.9 |
|
|
$ |
14.1 |
|
|
(29.8 |
)% |
|
$ |
35.2 |
|
|
$ |
133.9 |
|
|
(73.7 |
)% |
| Diluted EPS |
|
$ |
0.11 |
|
|
$ |
0.15 |
|
|
(26.7 |
)% |
|
$ |
0.40 |
|
|
$ |
1.39 |
|
|
(71.2 |
)% |
| Adjusted EBITDA2 |
|
$ |
61.8 |
|
|
$ |
57.0 |
|
|
8.4 |
% |
|
$ |
234.8 |
|
|
$ |
223.2 |
|
|
5.2 |
% |
|
Adjusted EBITDA Margin %2 |
|
7.7 |
% |
|
7.8 |
% |
|
(0.1 |
)% |
|
7.8 |
% |
|
8.1 |
% |
|
(0.3 |
)% |
| Adjusted Net Income2 |
|
$ |
35.5 |
|
|
$ |
32.6 |
|
|
8.9 |
% |
|
$ |
135.4 |
|
|
$ |
122.6 |
|
|
10.4 |
% |
| Pro Forma Adjusted Net
Income3 |
|
$ |
35.5 |
|
|
$ |
32.6 |
|
|
8.9 |
% |
|
$ |
134.2 |
|
|
$ |
126.0 |
|
|
6.5 |
% |
| Pro Forma Diluted EPS3 |
|
$ |
0.41 |
|
|
$ |
0.34 |
|
|
20.6 |
% |
|
$ |
1.56 |
|
|
$ |
1.31 |
|
|
19.1 |
% |
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1 Amounts shown “as adjusted” throughout this
release reflect the full retrospective adoption of ASU No. 2014-09,
Revenue from Contracts with Customers (Topic 606).
2 This financial measure is not based on U.S.
GAAP. Please refer to the section of this press release entitled
“About Non-GAAP and Pro Forma Financial Measures” for additional
information and to the section entitled “Non-GAAP Reconciliations”
for reconciliation to the most directly comparable U.S. GAAP
measure.
3 This non-GAAP financial measure adjusts
certain historical data on a pro forma basis following certain
transactions. Please refer to the section of this press
release entitled “About Non-GAAP and Pro Forma Financial Measures”
for additional information and to the section entitled “Non-GAAP
Reconciliations” for reconciliation to the most directly comparable
U.S. GAAP measure.
Financial Highlights for the Fiscal Fourth Quarter Ended
June 30, 2019
- Revenue - Total revenue was $803.2
million, an increase of 9.8% over prior year, with product revenue
up 10.5% and service revenue up 6.7%. Total revenue growth in the
quarter was driven by an increase in all three solution areas.
Cloud revenue grew 10.5%, Security revenue grew 9.5% and Digital
Infrastructure revenue grew 9.8%. The investments in our public
cloud initiative, as well as growth in our managed services
offerings, drove our recurring revenue in the fourth quarter up
48.3% over the prior year, and recurring revenue now represents
8.0% of our total revenue. We continued to experience accelerating
growth in our backlog orders believed to be firm which totaled $787
million as of June 30, 2019, an increase of 34% compared to
the prior year period.
- Gross Margin - Our gross margin
percentage, product gross margin percentage, and service gross
margin percentage were 20.9%, 21.1%, and 20.1%, respectively, as
compared to 20.6%, 20.8%, and 19.7% in the prior year. Product
margin expansion was led by improved hardware margins and a higher
revenue mix of software recognized on a net basis. Service margin
expansion was driven by Presidio led services.
- Provision for Income Taxes - The
GAAP tax provision rate was 35.3% and the non-GAAP tax provision
rate was 23.2%.
- Net Income and Diluted EPS - Net
income was $9.9 million and diluted EPS was $0.11. Pro Forma
Adjusted Net Income was $35.5 million, an increase of 8.9% over the
prior year and Pro Forma Adjusted Diluted EPS was $0.41, an
increase of 20.6% over the prior year.
- Adjusted EBITDA - Adjusted EBITDA
was $61.8 million, an increase of 8.4% over the prior year, due to
gross margin growth of 11.7% partly offset by increases in Selling,
General and Administrative (“SG&A”) expenses. Adjusted EBITDA
margin was 7.7% which was down 10 basis points compared to the
prior year.
Financial Highlights for the Fiscal Year Ended June 30, 2019
- Revenue - Total revenue was
$3,026.1 million, an increase of 9.4% over prior year, while
product revenue increased 10.9% and service revenue increased 2.9%.
Total revenue growth in the period was driven by strong growth in
all three of our solution areas. Digital Infrastructure solutions
increased 9.8%, Security revenue increased 9.1%, and Cloud revenue
increased 8.1%. The success of our public cloud initiative, as well
as growth in managed services, drove our recurring revenue up 39%
over the prior year. Recurring revenue now represents 7.1% of our
total revenue compared to 5.6% of our total revenue for the prior
year.
- Gross Margin - Our gross margin
percentage, product gross margin percentage and service gross
margin percentage were 21.1%, 21.4% and 19.7%, respectively, as
compared to 21.1%, 21.2% and 20.7%, respectively, in the prior
year. The increase in product gross margins resulted from a higher
revenue mix of software recognized on a net basis. The decline in
service margins was driven by delays in delivering our service
revenue backlog.
- Provision for Income Taxes - The
GAAP tax provision rate was 29.9% and the non-GAAP tax provision
rate was 21.8%.
- Net Income and Diluted EPS - Net
income was $35.2 million and diluted EPS was $0.40. Pro Forma
Adjusted Net Income was $134.2 million, an increase of 6.5% over
the prior year and Pro Forma Adjusted EPS was $1.56, an increase of
19.1% over the prior year. Strong year-over-year growth was driven
by continued deleveraging and the favorable impact of last year's
tax reform.
- Adjusted EBITDA - Adjusted EBITDA
was $234.8 million, an increase of 5.2% over prior year, due to
higher total gross margin partly offset by higher SG&A
expenses. Adjusted EBITDA margin was 7.8% compared to 8.1% for the
prior year.
Capital Resources and Other Financial
Highlights
- Debt - At fiscal year end, cash and
cash equivalents were $30.7 million, total long-term debt was
$746.6 million comprised entirely of our term loan facility
(excluding debt issuance costs) and total net debt was $715.9
million (defined as total long-term debt less cash and cash
equivalents), representing 3.0x net total leverage. During the
fiscal year ended June 30, 2019, the Company borrowed an additional
$160.0 million term loans to repurchase shares of its common stock
and the Company voluntarily prepaid an aggregate of $100.0 million
in principal amount of its term loans.
- Free Cash Flow - Free Cash Flow in
the fourth quarter was $28.5 million compared to $48.3 million in
the prior year after $10.7 million of cash outflows for public
cloud resale investments. For the fiscal year, Free Cash Flow was
$101.7 million after $37.8 million of cash outflows for public
cloud resale investments.
- September 2018 Share Repurchase -
On September 13, 2018, the Company completed the repurchase of
10,750,000 shares of its common stock from an affiliate of
investment funds managed by affiliates of Apollo Global Management,
LLC (the “Share Repurchase”) for approximately $160 million,
funded with the net proceeds of incremental term loans. The Share
Repurchase delivered EPS accretion of 7% for the fiscal year.
- Backlog - As of June 30, 2019, we
had firm, executed backlog of $787 million, up 34% over the prior
fiscal year, driven by strong growth in both product and service
backlog.
- Dividend - On May 8, 2019, the
Company declared a quarterly cash dividend of $0.04 per share of
Common Stock. The dividend was paid on July 5, 2019 to
stockholders of record as of June 26, 2019. Dividends paid for the
quarter to stockholders of record totaled $3.3 million. During the
fiscal year, the Company declared $0.16 of cash dividends per share
of Common Stock.
Dividend
Presidio announced today that its Board of
Directors approved a quarterly cash dividend of $0.04 per share to
stockholders. The dividend will be paid on October 4, 2019 to
stockholders of record as of the close of business on September 25,
2019. The declaration and payment of future dividends will continue
to be subject to the discretion and approval of the Company’s Board
of Directors and will be dependent upon, among other things, the
Company’s financial position, results of operations and cash
flow.
Subsequent Event
On August 14, 2019, the Company announced that
it had entered into a definitive agreement to be acquired by funds
advised by BC Partners in an all-cash transaction valued at
approximately $2.1 billion. Under the terms of the agreement, the
Company’s stockholders will receive $16.00 per share in cash upon
the closing of the transaction. Closing of the transaction is
subject to customary conditions, including approval by the holders
of a majority of the outstanding shares of Presidio common stock,
expiration or early termination of the applicable waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and
other required regulatory approvals, including approval from CFIUS.
The transaction is currently expected to close in the fourth
quarter of calendar year 2019.
Conference Call Information
Due to the previously announced definitive
agreement to be acquired by funds advised by BC Partners, a leading
international investment firm, Presidio does not plan to host an
earnings conference call to discuss fiscal fourth quarter and
full-year fiscal 2019 financial results or provide financial
guidance.
About Non-GAAP and Pro Forma Financial
Measures
Our management regularly monitors certain
financial measures to track the progress of our business against
internal goals and targets. In addition to financial information
presented in accordance with GAAP, management uses Adjusted EBITDA,
Adjusted Net Income, Pro Forma Adjusted Net Income, Pro Forma
Diluted EPS and Free Cash Flow (collectively, "non-GAAP measures,"
as further described below) in its evaluation of past performance
and prospects for the future. These non-GAAP measures should be
considered in addition to, not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP. They are not
measurements of our financial performance under GAAP and should not
be considered as alternatives to net income or revenue, as
applicable, or any other performance measures derived in accordance
with GAAP and may not be comparable to other similarly titled
measures of other businesses. These non-GAAP measures have
limitations as analytical tools and you should not consider them in
isolation or as a substitute for analysis of our operating results
as reported under GAAP and they include adjustments for items that
may occur in future periods. However, we believe these adjustments
are appropriate because the amounts recognized can vary
significantly from period to period, do not directly relate to the
ongoing operations of our business and complicate comparisons of
our internal operating results and operating results of other peer
companies over time.
We also adjust certain historical data on a pro
forma basis following certain significant transactions.
Specifically, we have provided a calculation of Pro Forma Adjusted
Net Income to adjust our reported results for the fiscal year ended
June 30, 2018 for:
- the net after-tax interest savings
associated with the borrowing of incremental term loans used for
the redemption of the senior notes in January 2018, as if the
transaction occurred on July 1, 2017; and
- lower after-tax interest expense
associated with the term loan repricing completed in January 2018
as if it occurred on July 1, 2017.
We have also provided a calculation of Pro Forma
Adjusted Net Income to adjust our reported results for the fiscal
year ended June 30, 2019 for higher after-tax interest expense
associated with the incremental term loans used to fund the Share
Repurchase that occurred in September 2018, as if the transaction
occurred on July 1, 2018.
Pro Forma Adjusted Net Income is for
illustrative and informational purposes and is not intended to
represent or be indicative of what our financial condition or
results of operations would have been had the transactions occurred
on the dates indicated. Pro Forma Adjusted Net Income should not be
considered representative of our future financial condition or
results of operations.
About Presidio
Presidio is a leading North American IT
solutions provider focused on Digital Infrastructure, Cloud and
Security solutions to create agile, secure infrastructure platforms
for middle-market customers. We deliver this technology expertise
through a full life cycle model of professional, managed, and
support services including strategy, consulting, implementation and
design. By taking the time to deeply understand how our clients
define success, we help them harness technology advances, simplify
IT complexity and optimize their environments today while enabling
future applications, user experiences, and revenue models. As of
June 30, 2019, we serve approximately 7,900 middle-market, large,
and government organizations across a diverse range of industries.
Approximately 2,900 Presidio professionals, including more than
1,600 technical engineers, are based in 60+ offices across the
United States in a unique, local delivery model combined with the
national scale of a $3.0 billion dollar industry leader. We are
passionate about driving results for our clients and delivering the
highest quality of service in the industry. For more information
visit: www.presidio.com.
Source: Presidio, Inc.
Contact Information
Investor Relations Contact:Ed
Yuen866-232-3762investors@presidio.com
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995
This press release contains “forward looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. The use of words such as “anticipates,”
“expects,” “intends,” “plans” and “believes,” among others,
generally identify forward-looking statements. These
forward-looking statements include statements relating to: future
financial performance, business prospects and strategy, anticipated
trends, prospects in the industries in which our businesses operate
and other similar matters. These forward looking statements are
based on management’s current expectations and assumptions about
future events, which are inherently subject to uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
results could differ materially from those contained in these
forward looking statements for a variety of reasons, including,
among others: risks and uncertainties related to the capital
markets, changes in senior management at Presidio, changes in our
relationship with our vendor partners, adverse changes in economic
conditions, risks resulting from a decreased demand for Presidio’s
information technology solutions, risks relating to rapid
technological change in Presidio’s industry and risks relating to
acquisitions or regulatory changes. Risks relating to Presidio’s
previously announced definitive agreement to be acquired by funds
advised by BC Partners include, among other things, risks related
to the satisfaction of the conditions to closing the acquisition
(including the failure to obtain necessary regulatory approvals) in
the anticipated timeframe or at all, obtaining the requisite
approval of the stockholders of Presidio, risks related to the debt
financing arrangements, disruption from the transaction making it
more difficult to maintain business and operational relationships,
significant transaction costs, unknown liabilities, and the risk of
litigation and/or regulatory actions related to the proposed
acquisition. Certain of these and other risks and uncertainties are
discussed in Presidio’s filings with the Securities and Exchange
Commission. Other unknown or unpredictable factors that could also
adversely affect our business, financial condition and results of
operations may arise from time to time. In light of these risks and
uncertainties, these forward looking statements may not prove to be
accurate. Accordingly, you should not place undue reliance on these
forward looking statements, which only reflect the views of our
management as of the date of this press release. We do not
undertake to update these forward-looking statements.
Non-GAAP Reconciliations
The reconciliation of Net Income to Adjusted
EBITDA for each of the periods presented is as follows:
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
| (in
millions) |
|
|
(as adjusted) |
|
|
|
(as adjusted) |
| Adjusted EBITDA
Reconciliation: |
|
|
|
|
|
|
|
|
Net income |
$ |
9.9 |
|
|
$ |
14.1 |
|
|
$ |
35.2 |
|
|
$ |
133.9 |
|
|
Total depreciation and amortization (1) |
22.8 |
|
|
22.9 |
|
|
90.9 |
|
|
89.5 |
|
|
Interest and other (income) expense |
13.0 |
|
|
10.7 |
|
|
51.3 |
|
|
60.5 |
|
|
Income tax expense (benefit) |
5.4 |
|
|
3.4 |
|
|
15.0 |
|
|
(79.9 |
) |
| EBITDA |
51.1 |
|
|
51.1 |
|
|
192.4 |
|
|
204.0 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Share-based compensation expense |
2.6 |
|
|
1.4 |
|
|
9.5 |
|
|
7.0 |
|
|
Purchase accounting adjustments (2) |
0.1 |
|
|
— |
|
|
0.2 |
|
|
0.3 |
|
|
Transaction costs (3) |
1.8 |
|
|
4.5 |
|
|
21.0 |
|
|
10.8 |
|
|
Other costs (4) |
6.2 |
|
|
— |
|
|
11.7 |
|
|
1.1 |
|
| Total adjustments |
10.7 |
|
|
5.9 |
|
|
42.4 |
|
|
19.2 |
|
| Adjusted EBITDA |
$ |
61.8 |
|
|
$ |
57.0 |
|
|
$ |
234.8 |
|
|
$ |
223.2 |
|
| Adjusted EBITDA % (5) |
7.7 |
% |
|
7.8 |
% |
|
7.8 |
% |
|
8.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation and amortization
included within total operating expenses and cost of
revenue. (2)
Includes noncash adjustments associated with purchase accounting
(including inventory step up, deferred revenue step down and
revaluation of deferred rent).
(3) Includes transaction-related expenses
such as: stay, retention and earnout bonuses, transaction-related
advisory and diligence fees and transaction-related legal,
accounting and tax fees.
(4) Includes one-time inventory write-offs, and
non-recurring business optimization expenses.
(5) Adjusted EBITDA % represents the ratio of
Adjusted EBITDA to Total Revenue.
The reconciliation of Net Income to Adjusted Net
Income and Pro Forma Adjusted Net Income for each of the periods
presented is as follows:
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
| (in
millions) |
|
|
(as adjusted) |
|
|
|
(as adjusted) |
| Adjusted Net Income
reconciliation: |
|
|
|
|
|
|
|
|
Net income |
$ |
9.9 |
|
|
$ |
14.1 |
|
|
$ |
35.2 |
|
|
$ |
133.9 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
18.8 |
|
|
18.9 |
|
|
75.2 |
|
|
74.4 |
|
|
Amortization of debt issuance costs |
0.8 |
|
|
0.9 |
|
|
3.5 |
|
|
4.5 |
|
|
Loss on extinguishment of debt |
0.6 |
|
|
— |
|
|
2.1 |
|
|
14.8 |
|
|
Share-based compensation expense |
2.6 |
|
|
1.4 |
|
|
9.5 |
|
|
7.0 |
|
|
Purchase accounting adjustments |
0.1 |
|
|
— |
|
|
0.2 |
|
|
0.3 |
|
|
Transaction costs |
1.8 |
|
|
4.5 |
|
|
21.0 |
|
|
10.8 |
|
|
Other costs |
6.2 |
|
|
— |
|
|
11.7 |
|
|
1.1 |
|
|
Revaluation of federal deferred taxes |
— |
|
|
(1.7 |
) |
|
— |
|
|
(94.1 |
) |
|
Income tax impact of adjustments1 |
(5.3 |
) |
|
(5.5 |
) |
|
(23.0 |
) |
|
(30.1 |
) |
| Total adjustments |
25.6 |
|
|
18.5 |
|
|
100.2 |
|
|
(11.3 |
) |
|
Adjusted Net Income |
35.5 |
|
|
32.6 |
|
|
135.4 |
|
|
122.6 |
|
| Pro Forma Adjustments: |
|
|
|
|
|
|
|
|
Interest on notes redeemed, net savings |
— |
|
|
— |
|
|
— |
|
|
3.3 |
|
|
Interest savings on January 2018 term loan repricing |
— |
|
|
— |
|
|
— |
|
|
1.7 |
|
|
Interest expense on September 2018 term loan borrowing |
— |
|
|
— |
|
|
(1.7 |
) |
|
— |
|
|
Income tax impact of adjustments |
— |
|
|
— |
|
|
0.5 |
|
|
(1.6 |
) |
| Total Pro Forma
adjustments |
— |
|
|
— |
|
|
(1.2 |
) |
|
3.4 |
|
|
Pro Forma Adjusted Net Income |
$ |
35.5 |
|
|
$ |
32.6 |
|
|
$ |
134.2 |
|
|
$ |
126.0 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes an estimated tax impact of the
adjustments to net income at our average statutory rate to arrive
at an appropriate effective tax rate on Adjusted Net Income, except
for (i) the adjustment of certain transaction costs that are
permanently nondeductible for tax purposes and (ii) the impact
of tax-deductible goodwill and intangible assets resulting from
certain historical acquisitions and further adjusted for discrete
tax items such as: the tax benefit associated with excess stock
compensation deductions and the remeasurement of deferred tax
liabilities due to tax rate changes.
The reconciliation of Pro Forma weighted-average
shares - diluted and Pro Forma Diluted EPS from GAAP
weighted-average shares for each of the periods presented is as
follows:
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
| Share count: |
|
|
|
|
|
|
|
| Weighted-average shares –
basic |
82,773,204 |
|
|
92,678,947 |
|
|
84,642,698 |
|
|
91,891,295 |
|
|
Dilutive effect of share-based awards |
3,423,946 |
|
|
3,809,223 |
|
|
3,743,520 |
|
|
4,336,283 |
|
| Weighted-average shares –
diluted |
86,197,150 |
|
|
96,488,170 |
|
|
88,386,218 |
|
|
96,227,578 |
|
|
Pro Forma share adjustment for share repurchase1 |
— |
|
|
— |
|
|
(2,179,452 |
) |
|
— |
|
|
Total Pro Forma adjustments |
— |
|
|
— |
|
|
(2,179,452 |
) |
|
— |
|
| Pro Forma weighted-average
shares – diluted |
86,197,150 |
|
|
96,488,170 |
|
|
86,206,766 |
|
|
96,227,578 |
|
| |
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.11 |
|
|
$ |
0.15 |
|
|
$ |
0.40 |
|
|
$ |
1.39 |
|
|
Pro Forma Diluted EPS |
$ |
0.41 |
|
|
$ |
0.34 |
|
|
$ |
1.56 |
|
|
$ |
1.31 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes an adjustment to reflect the
10,750,000 shares repurchased during the period as if the
repurchase had occurred at the beginning of the period that are not
already reflected in the basic weighted-average shares
presented.
We define free cash flow as our net cash
provided by operating activities adjusted to: (i) include the net
change in accounts payable - floor plan, (ii) include the aggregate
net cash impact of our leasing business, (iii) include purchases of
property and equipment and (iv) exclude cash payments for
acquisition-related earnout bonuses.
The following table presents the aggregate net
cash impact of our leasing business for the three months and fiscal
years ended June 30, 2019 and 2018 (in millions):
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Additions of equipment under sales-type and direct financing
leases |
$ |
(17.0 |
) |
|
$ |
(27.7 |
) |
|
$ |
(139.8 |
) |
|
$ |
(108.3 |
) |
| Proceeds from collection of
financing receivables |
0.4 |
|
|
1.1 |
|
|
7.2 |
|
|
4.1 |
|
| Additions to equipment under
operating leases |
(1.0 |
) |
|
(0.1 |
) |
|
(1.3 |
) |
|
(1.6 |
) |
| Proceeds from disposition of
equipment under operating leases |
0.1 |
|
|
— |
|
|
0.7 |
|
|
0.7 |
|
| Proceeds from the discounting
of financing receivables |
20.2 |
|
|
33.1 |
|
|
161.5 |
|
|
114.6 |
|
| Retirements of discounted
financing receivables |
(2.0 |
) |
|
(4.3 |
) |
|
(23.6 |
) |
|
(10.0 |
) |
|
Aggregate net cash impact of leasing business |
$ |
0.7 |
|
|
$ |
2.1 |
|
|
$ |
4.7 |
|
|
$ |
(0.5 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of
Free Cash Flow from net cash provided by operating activities for
the three and twelve months ended June 30, 2019 and 2018 (in
millions):
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net cash provided by operating activities |
$ |
1.4 |
|
|
$ |
49.3 |
|
|
$ |
108.0 |
|
|
$ |
192.0 |
|
| Adjustments to reconcile to
free cash flow: |
|
|
|
|
|
|
|
|
Net change in accounts payable — floor plan |
30.3 |
|
|
0.8 |
|
|
2.1 |
|
|
(54.3 |
) |
|
Aggregate net cash impact of leasing business |
0.7 |
|
|
2.1 |
|
|
4.7 |
|
|
(0.5 |
) |
|
Purchases of property and equipment |
(3.9 |
) |
|
(3.9 |
) |
|
(15.1 |
) |
|
(14.4 |
) |
|
Payment of acquisition-related earnout bonuses |
— |
|
|
— |
|
|
2.0 |
|
|
— |
|
| Total adjustments |
27.1 |
|
|
(1.0 |
) |
|
(6.3 |
) |
|
(69.2 |
) |
| Free cash flow |
$ |
28.5 |
|
|
$ |
48.3 |
|
|
$ |
101.7 |
|
|
$ |
122.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
PRESIDIO, INC.Consolidated Balance
Sheets(in millions, except share
data) |
|
|
|
|
|
|
|
|
|
| |
As of June 30, 2019 |
|
As of June 30, 2018 |
| Assets |
|
|
(as adjusted) |
| Current Assets |
|
|
|
|
Cash and cash equivalents |
$ |
30.7 |
|
|
$ |
37.0 |
|
|
Accounts receivable, net |
674.6 |
|
|
608.7 |
|
|
Unbilled accounts receivable, net |
205.3 |
|
|
171.5 |
|
|
Financing receivables, current portion |
96.4 |
|
|
88.3 |
|
|
Inventory |
25.2 |
|
|
27.7 |
|
|
Prepaid expenses and other current assets |
123.1 |
|
|
112.5 |
|
|
Total current assets |
1,155.3 |
|
|
1,045.7 |
|
| Property and equipment,
net |
36.4 |
|
|
35.9 |
|
| Financing receivables, less
current portion |
140.3 |
|
|
116.8 |
|
| Goodwill |
803.7 |
|
|
803.7 |
|
| Identifiable intangible
assets, net |
625.1 |
|
|
700.3 |
|
| Other assets |
110.1 |
|
|
33.9 |
|
|
Total assets |
$ |
2,870.9 |
|
|
$ |
2,736.3 |
|
| Liabilities and
Stockholders’ Equity |
|
|
|
| Current Liabilities |
|
|
|
|
Current maturities of long-term debt |
$ |
— |
|
|
$ |
— |
|
|
Accounts payable – trade |
497.7 |
|
|
457.7 |
|
|
Accounts payable – floor plan |
212.7 |
|
|
210.6 |
|
|
Accrued expenses and other current liabilities |
294.6 |
|
|
228.2 |
|
|
Discounted financing receivables, current portion |
93.9 |
|
|
85.2 |
|
|
Total current liabilities |
1,098.9 |
|
|
981.7 |
|
| Long-term debt, net of debt
issuance costs |
733.8 |
|
|
671.2 |
|
| Discounted financing
receivables, less current portion |
131.2 |
|
|
108.6 |
|
| Deferred income tax
liabilities |
180.6 |
|
|
180.5 |
|
| Other liabilities |
88.0 |
|
|
34.0 |
|
|
Total liabilities |
2,232.5 |
|
|
1,976.0 |
|
| Commitments and contingencies
(Note 13) |
|
|
|
| Stockholders’ Equity |
|
|
|
| Preferred stock: |
|
|
|
|
$0.01 par value; 100 shares authorized and zero shares issued and
outstanding at June 30, 2019 and June 30, 2018 |
— |
|
|
— |
|
| Common stock: |
|
|
|
|
$0.01 par value; 250,000,000 shares authorized; and 82,852,340 and
92,853,983 shares issued and outstanding at June 30, 2019 and June
30, 2018, respectively |
0.8 |
|
|
0.9 |
|
|
Additional paid-in capital |
500.4 |
|
|
644.3 |
|
|
Retained earnings |
137.2 |
|
|
115.1 |
|
|
Total stockholders’ equity |
638.4 |
|
|
760.3 |
|
|
Total liabilities and stockholders’ equity |
$ |
2,870.9 |
|
|
$ |
2,736.3 |
|
| |
|
|
|
|
|
|
|
| |
|
PRESIDIO, INC.Consolidated Statements of
Operations(in millions, except share and per-share
data) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
| |
|
|
(as adjusted) |
|
|
|
(as adjusted) |
| Revenue |
|
|
|
|
|
|
|
|
Product |
$ |
667.7 |
|
|
$ |
604.3 |
|
|
$ |
2,509.1 |
|
|
$ |
2,262.8 |
|
|
Service |
135.5 |
|
|
127.0 |
|
|
517.0 |
|
|
502.4 |
|
|
Total revenue |
803.2 |
|
|
731.3 |
|
|
3,026.1 |
|
|
2,765.2 |
|
| Cost of revenue |
|
|
|
|
|
|
|
|
Product |
527.0 |
|
|
478.9 |
|
|
1,972.5 |
|
|
1,782.6 |
|
|
Service |
108.2 |
|
|
102.0 |
|
|
415.2 |
|
|
398.6 |
|
|
Total cost of revenue |
635.2 |
|
|
580.9 |
|
|
2,387.7 |
|
|
2,181.2 |
|
|
Gross margin |
168.0 |
|
|
150.4 |
|
|
638.4 |
|
|
584.0 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
Selling expenses |
80.5 |
|
|
72.2 |
|
|
306.4 |
|
|
273.2 |
|
|
General and administrative expenses |
35.7 |
|
|
24.1 |
|
|
123.2 |
|
|
101.8 |
|
|
Transaction costs |
1.8 |
|
|
4.5 |
|
|
21.0 |
|
|
10.8 |
|
|
Depreciation and amortization |
21.7 |
|
|
21.4 |
|
|
86.3 |
|
|
83.7 |
|
|
Total operating expenses |
139.7 |
|
|
122.2 |
|
|
536.9 |
|
|
469.5 |
|
|
Operating income |
28.3 |
|
|
28.2 |
|
|
101.5 |
|
|
114.5 |
|
| Interest and other (income)
expense |
|
|
|
|
|
|
|
|
Interest expense |
12.5 |
|
|
10.7 |
|
|
49.9 |
|
|
46.0 |
|
|
Loss on extinguishment of debt |
0.6 |
|
|
— |
|
|
2.1 |
|
|
14.8 |
|
|
Other (income) expense, net |
(0.1 |
) |
|
— |
|
|
(0.7 |
) |
|
(0.3 |
) |
|
Total interest and other (income) expense |
13.0 |
|
|
10.7 |
|
|
51.3 |
|
|
60.5 |
|
|
Income before income taxes |
15.3 |
|
|
17.5 |
|
|
50.2 |
|
|
54.0 |
|
| Income tax expense
(benefit) |
5.4 |
|
|
3.4 |
|
|
15.0 |
|
|
(79.9 |
) |
|
Net income |
$ |
9.9 |
|
|
$ |
14.1 |
|
|
$ |
35.2 |
|
|
$ |
133.9 |
|
| Earnings per share: |
|
|
|
|
|
|
|
|
Basic EPS |
$ |
0.12 |
|
|
$ |
0.15 |
|
|
$ |
0.42 |
|
|
$ |
1.46 |
|
|
Diluted EPS |
$ |
0.11 |
|
|
$ |
0.15 |
|
|
$ |
0.40 |
|
|
$ |
1.39 |
|
| Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
82,773,204 |
|
|
92,678,947 |
|
|
84,642,698 |
|
|
91,891,295 |
|
|
Diluted |
86,197,150 |
|
|
96,488,170 |
|
|
88,386,218 |
|
|
96,227,578 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
PRESIDIO, INC.Consolidated Statements of
Cash Flows(in millions) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Fiscal Year Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net cash provided by operating activities |
$ |
1.4 |
|
|
$ |
49.3 |
|
|
$ |
108.0 |
|
|
$ |
192.0 |
|
| Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Acquisition of businesses, net of cash and cash equivalents
acquired |
— |
|
|
(33.3 |
) |
|
— |
|
|
(42.8 |
) |
|
Proceeds from collection of escrow related to acquisition of
business |
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
Additions of equipment under sales-type and direct financing
leases |
(17.0 |
) |
|
(27.7 |
) |
|
(139.8 |
) |
|
(108.3 |
) |
|
Proceeds from collection of financing receivables |
0.5 |
|
|
1.1 |
|
|
7.2 |
|
|
4.1 |
|
|
Additions to equipment under operating leases |
(1.0 |
) |
|
(0.1 |
) |
|
(1.3 |
) |
|
(1.6 |
) |
|
Proceeds from disposition of equipment under operating leases |
0.1 |
|
|
— |
|
|
0.7 |
|
|
0.7 |
|
|
Purchases of property and equipment |
(3.9 |
) |
|
(3.9 |
) |
|
(15.1 |
) |
|
(14.4 |
) |
|
Net cash used in investing activities |
(21.3 |
) |
|
(63.9 |
) |
|
(148.3 |
) |
|
(162.1 |
) |
| Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock under share-based
compensation plans |
1.4 |
|
|
2.1 |
|
|
5.1 |
|
|
8.0 |
|
|
Common stock repurchased |
— |
|
|
— |
|
|
(158.6 |
) |
|
— |
|
|
Dividends paid |
(3.3 |
) |
|
— |
|
|
(9.9 |
) |
|
— |
|
|
Proceeds from the discounting of financing receivables |
20.2 |
|
|
33.1 |
|
|
161.5 |
|
|
114.6 |
|
|
Retirements of discounted financing receivables |
(2.0 |
) |
|
(4.3 |
) |
|
(23.6 |
) |
|
(10.0 |
) |
|
Deferred financing costs |
— |
|
|
— |
|
|
(0.7 |
) |
|
(1.2 |
) |
|
Redemptions and repurchases of senior and subordinated notes |
— |
|
|
— |
|
|
— |
|
|
(135.7 |
) |
|
Borrowings on term loans, net of original issue discount |
— |
|
|
— |
|
|
158.1 |
|
|
138.2 |
|
|
Repayments of term loans |
(25.0 |
) |
|
(5.0 |
) |
|
(100.0 |
) |
|
(80.0 |
) |
|
Net change in accounts payable — floor plan |
30.3 |
|
|
0.8 |
|
|
2.1 |
|
|
(54.3 |
) |
|
Net cash provided by (used in) financing activities |
21.6 |
|
|
26.7 |
|
|
34.0 |
|
|
(20.4 |
) |
|
Net increase (decrease) in cash and cash equivalents |
1.7 |
|
|
12.1 |
|
|
(6.3 |
) |
|
9.5 |
|
| Cash and cash
equivalents: |
|
|
|
|
|
|
|
|
Beginning of the period |
29.0 |
|
|
24.9 |
|
|
37.0 |
|
|
27.5 |
|
|
End of the period |
$ |
30.7 |
|
|
$ |
37.0 |
|
|
$ |
30.7 |
|
|
$ |
37.0 |
|
| Supplemental disclosures of
cash flow information |
|
|
|
|
|
|
|
| Cash paid during the period
for: |
|
|
|
|
|
|
|
|
Interest |
$ |
12.2 |
|
|
$ |
8.8 |
|
|
$ |
44.5 |
|
|
$ |
44.8 |
|
|
Income taxes, net of refunds |
$ |
1.4 |
|
|
$ |
(9.6 |
) |
|
$ |
17.3 |
|
|
$ |
20.3 |
|
| Reduction of discounted lease
assets and liabilities |
$ |
27.8 |
|
|
$ |
22.5 |
|
|
$ |
114.9 |
|
|
$ |
102.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Presidio (NASDAQ:PSDO)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Presidio (NASDAQ:PSDO)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
