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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
----------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 18, 2004
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Autodesk, Inc.
(Exact name of registrant as specified in its charter)
Delaware 000-14338 94-2819853
- ---------------------------- ----------- -------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
111 McInnis Parkway
San Rafael, California 94903
(Address of principal executive offices, including zip code)
(415) 507-5000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. Results of Operations and Financial Condition
On November 18, 2004, Autodesk, Inc. issued a press release reporting its
results for the three and nine months ended October 31, 2004. The press release
is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits.
Exhibit No. Description
- ----------- -----------
99.1 Press Release, dated as of November 18, 2004, entitled "Autodesk
Third Quarter Revenues Increase 28 Percent; GAAP EPS Increases 200
Percent."
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AUTODESK, INC.
By: /s/ Alfred J. Castino
---------------------------
Alfred J. Castino
Senior Vice President
and Chief Financial Officer
Date: November 18, 2004
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Press Release, dated as of November 18, 2004, entitled "Autodesk
Third Quarter Revenues Increase 28 Percent; GAAP EPS Increases 200
Percent."
Exhibit 99.1
Autodesk Third Quarter Revenues Increase 28 Percent
GAAP EPS Increases 200 Percent
SAN RAFAEL, Calif., Nov. 18 /PRNewswire-FirstCall/ -- Autodesk Inc.
(Nasdaq: ADSK), a global software and services company today announced
financial results for its third fiscal quarter ended October 31, 2004. For the
third quarter, Autodesk reported net revenues of $300 million, a 28 percent
increase over $234 million reported in the third quarter of the prior year.
The company separately announced that it has declared a 2-for-1 stock
split on its common stock.
Third quarter net income increased 228 percent over the prior year to $74
million on a GAAP basis. GAAP EPS was $0.60 per diluted share, or $0.30 per
diluted share after the effect of the 2-for-1 stock split. GAAP basis net income
includes tax benefits of $29 million. GAAP net income also includes a $3 million
pre-tax restructuring charge. Excluding these items, pro-forma third quarter net
income was $48 million. Pro-forma EPS was $0.38 per diluted share, or $0.19 per
diluted share on a split adjusted basis. GAAP basis net income in the third
quarter of the prior year was $23 million. GAAP EPS in the third quarter of the
prior year was $0.20 per diluted share, or $0.10 on a post-split basis. There
were no pro-forma adjustments in the prior year.
The tax benefit totaling $29 million is comprised of several items. During
the quarter the company recognized a tax benefit of $9 million from successful
resolution of tax audits of previous years. The company also recognized
$20 million in tax benefits primarily as a result of the new Dividends
Received Deduction provided in the American Jobs Creation Act, which was
signed into law on October 22, 2004. Under this legislation, the company is
allowed to bring up to $500 million of foreign-earned cash into the United
States by January 31, 2006, at a more favorable tax rate. This will allow the
company to more effectively manage its cash and invest in the business. As a
result of this legislation, the company now estimates its effective tax rate
for fiscal 2005 and 2006 to be 20 percent, down from 24 percent. This
reduction in estimated rate for the first half of fiscal 2005 resulted in a
$4 million tax benefit. The remaining $16 million is related to the reduction
in the estimated tax liability for previous fiscal years.
"Autodesk had another outstanding quarter," said Carol Bartz, Autodesk
chairman and CEO. "Our customers are interested in quick implementation, ease
of use and a fast return on investment, and our products meet those needs. Our
results demonstrate that our products are strong and our strategies are
working."
Autodesk's performance was driven by strong revenues from new seats,
increasing penetration of its 3D products, continued success with the
subscription program, and continued commitment to improved productivity and
efficiency.
New seat revenue increased 36 percent over the prior year. Customers
continue to respond enthusiastically to the ease of use and quick ROI of the
AutoCAD 2005 family of products. Revenue from new commercial seats of AutoCAD
increased 35 percent over the prior year.
During the quarter, Autodesk 3D products continued to gain traction in the
market. In October, the company launched Autodesk(R) Civil 3D(TM) 2005, the
only civil engineering software available today that creates intelligent
relationships between objects, so design changes are dynamically updated.
Aggregate revenue from Autodesk Inventor(R) Series, Autodesk Inventor(R)
Professional, Autodesk(R) Revit(R), Autodesk(R) AutoCAD(R) Revit Series,
Autodesk(R) Architectural Desktop, Autodesk Map(R) 3D and Autodesk Civil 3D
increased 50 percent over the prior year. Customer adoption of Inventor, the
world's best selling 3D mechanical design software, reached record levels.
Subscription revenues, called maintenance on the financial statements,
increased 55 percent over the third quarter of the prior year, as customers
continue to recognize the value of the subscription program and the quick
return on investment of Autodesk products.
Autodesk continued to demonstrate progress in improving its productivity
and profitability. Operating margins increased 6 percentage points over the
prior year to 18 percent on a GAAP basis. Pro-forma operating margins, which
exclude the $3 million restructuring charge, increased 7 percentage points to
19 percent in the quarter. These results demonstrate the company's commitment
to improving productivity and efficiency.
"I am extremely pleased with our results this quarter," said Bartz. "Our
product positioning has never been better. Our focus on productivity has
enabled us to increase our investment in growth initiatives while improving
our profitability. We expect to maintain this momentum next year."
In connection with the company's two-for-one stock split, stockholders as
of the close of business on December 6, 2004, will be issued one additional
share for each share of common stock held on the record date, with a payment
date of December 20, 2004. The stock split will increase the number of shares
outstanding from approximately 114 million shares to approximately 228 million
shares.
In addition, the company announced that it will discontinue its $0.03 per
share quarterly dividend. Dividend payments will cease after the March 2005
payment.
Business Outlook
The following statements are forward looking statements which are based on
current expectations and which involve risks and uncertainties some of which
are set forth below.
Fourth Quarter Fiscal 2005
Net revenues for the fourth quarter of fiscal 2005 are expected to be in
the range of $335 million to $345 million. GAAP basis earnings per diluted
share are expected to be in the range of $0.50 to $0.55, or $0.25 to
$0.28 after the effect of the 2-for-1 stock split. Pro-forma earnings per
diluted share are expected to be in the range of $0.52 to $0.57, or $0.26 to
$0.29, on a post-split basis.
Full Year Fiscal 2005
For fiscal year 2005, net revenues are expected to be in the range of
$1.213 billion to $1.223 billion. GAAP basis earnings per diluted share are
expected to be in the range of $1.76 to $1.82, or $0.88 to $0.91 on a
post-split basis. Pro-forma earnings per diluted share are expected to be in
the range of $1.67 to $1.73, or $0.84 to $0.87 on a post-split basis.
First Quarter Fiscal 2006
Net revenues for the first quarter of fiscal 2006 are expected to be in
the range of $320 million to $330 million. GAAP basis earnings per diluted
share are expected to be in the range of $0.47 to $0.52, or $0.24 to $0.26 on
a post-split basis.
Full Year Fiscal 2006
For fiscal year 2006, net revenues are expected to be in the range of
$1.33 billion to $1.38 billion. GAAP basis earnings per diluted share are
expected to be in the range of $2.00 to $2.15, or $1.00 to $1.08 on a
post-split basis. Guidance for fiscal year 2006 excludes the impact of
expected required stock option expensing.
All fiscal 2005 and fiscal 2006 EPS guidance ranges are based on the new
20 percent estimated effective tax rate. The company believes its effective
tax rate will revert back to the historical effective tax rate of
approximately 24 percent in fiscal year 2007.
A reconciliation of the above non-GAAP net income and EPS amounts to the
corresponding GAAP net income and EPS amounts is provided at the end of this
press release.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties, including statements in the paragraphs under "Business
Outlook" above, statements regarding our expected effective tax rate and other
statements regarding our anticipated performance. Factors that could cause
actual results to differ materially include the following: general market and
business conditions, failure to achieve sufficient sell-through in our
channels for new or existing products, failure of key new applications to
achieve anticipated levels of customer acceptance, pricing pressure, failure
to achieve anticipated cost reductions, delays in the release of new products
and services, failure to achieve continued success in technology advancements,
changes in accounting rules, particularly related to stock option expensing,
changes in foreign currency rates, failure to successfully integrate new or
acquired businesses, financial and business condition of our reseller and
distribution channels, renegotiation or termination of royalty or intellectual
property arrangements, failure to achieve continued migration from 2d products
to 3d products, and failure to grow lifecycle management or collaboration
products.
Further information on potential factors that could affect the financial
results of Autodesk are included in the company's report on Form 10-K for the
year ended January 31, 2004, and Form 10-Q for the quarter ended July 31,
2004, which are on file with the Securities and Exchange Commission.
Autodesk will host its third quarter earnings announcement today at
5:00 p.m. Eastern Time. The live announcement may be accessed at 800-798-2864
(passcode: 54386757). An audio webcast will also be available beginning at
5:00 p.m. Eastern Time at www.autodesk.com/investor. A replay of this webcast
will be maintained on our website for at least twelve months.
About Autodesk
Autodesk, Inc. is wholly focused on ensuring that great ideas are turned
into reality. With six million users, Autodesk is the world's leading software
and services company for the building, manufacturing, infrastructure, digital
media, and wireless data services fields. Autodesk's solutions help customers
create, manage, and share their data and digital assets more effectively. As
a result, customers turn ideas into competitive advantage by becoming more
productive, streamlining project efficiency, and maximizing profits.
Founded in 1982, Autodesk is headquartered in San Rafael, California. For
additional information about Autodesk, please visit www.autodesk.com.
Reconciliation of diluted net income per share on a GAAP basis to non-GAAP
diluted net income per share
Unaudited
Three months ended Fiscal year ended
January 31, 2005 January 31, 2005
Low end High end Low end High end
of range of range of range of range
Diluted net income per share
on a pre-split GAAP basis $ 0.50 $ 0.55 $ 1.76 $ 1.82
Restructuring costs, net of taxes 0.02 0.02 0.11 0.11
Income tax benefits -- -- (0.20) (0.20)
Non-GAAP diluted net income
per share on a pre-split basis $ 0.52 $ 0.57 $ 1.67 $ 1.73
Three months ended Fiscal year ended
January 31, 2005 January 31, 2005
Low end High end Low end High end
of range of range of range of range
Diluted net income per share
on a GAAP basis after the effect
of the 2-for-1 stock split $0.25 $0.28 $0.88 $0.91
Restructuring costs, net of taxes 0.01 0.01 0.06 0.06
Income tax benefits -- -- (0.10) (0.10)
Non-GAAP diluted net income
per share after the effect
of the 2-for-1 stock split $0.26 $0.29 $0.84 $0.87
NOTE: Autodesk, AutoCAD, Autodesk Inventor, Autodesk Map, Civil 3D and
Revit are either trademarks or registered trademarks of Autodesk, Inc., in the
United States and/or other countries. All other brand names, product names, or
trademarks belong to their respective holders.
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Net revenues:
License and other $254,450 $204,303 $753,404 $574,618
Maintenance 45,708 29,559 124,208 81,715
Total net revenues 300,158 233,862 877,612 656,333
Costs and expenses:
Cost of license and other
revenues 39,184 32,690 112,885 100,193
Cost of maintenance revenues 4,210 3,919 12,597 10,705
Marketing and sales 113,205 95,364 327,497 277,581
Research and development 59,942 53,004 176,165 154,247
General and administrative 26,837 20,945 76,856 65,118
Restructuring and other 2,922 -- 14,889 --
Total costs and expenses 246,300 205,922 720,889 607,844
Income from operations 53,858 27,940 156,723 48,489
Interest and other income, net 2,801 1,805 7,396 8,147
Income before income taxes 56,659 29,745 164,119 56,636
Income tax benefit (provision) 17,411 (7,139) (8,379) 6,081
Net income $74,070 $22,606 $155,740 $62,717
Basic net income per share $0.65 $0.20 $1.37 $0.56
Diluted net income per share $0.60 $0.20 $1.27 $0.55
Shares used in computing basic
net income per share 113,912 111,220 113,672 111,497
Shares used in computing diluted
net income per share 124,022 114,166 122,746 113,660
Earnings per share adjusted for
impact of two-for-one
stock split (A):
Basic earnings per share $0.33 $0.10 $0.69 $0.28
Diluted earnings per share $0.30 $0.10 $0.63 $0.28
Shares used in computing basic
net income per share 227,823 222,440 227,344 222,994
Shares used in computing diluted
net income per share 248,045 228,333 245,492 227,319
(A) Earnings per share for the three and nine months ended October 31,
2004 and 2003 have been presented to reflect a two-for-one stock split
approved November 16, 2004, payable to shareholders of record on December 6,
2004.
Autodesk, Inc.
Pro Forma Consolidated Statements of Income
(See pro forma adjustments listed in the tables below)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Net revenues:
License and other $ 254,450 $ 204,303 $ 753,404 $ 574,618
Maintenance 45,708 29,559 124,208 81,715
Total net revenues 300,158 233,862 877,612 656,333
Costs and expenses:
Cost of license and
other revenues 39,184 32,690 112,885 100,193
Cost of maintenance revenues 4,210 3,919 12,597 10,705
Marketing and sales 113,205 95,364 327,497 277,581
Research and development 59,942 53,004 176,165 154,247
General and administrative 26,837 20,945 76,856 65,118
Total costs and expenses 243,378 205,922 706,000 607,844
Income from operations 56,780 27,940 171,612 48,489
Interest and other income, net 2,801 1,805 7,396 8,147
Income before income taxes 59,581 29,745 179,008 56,636
Provision for income taxes (11,916) (7,139) (35,802) (13,593)
Pro forma net income $ 47,665 $ 22,606 $ 143,206 $ 43,043
Basic pro forma net income
per share $ 0.42 $ 0.20 $ 1.26 $ 0.39
Diluted pro forma net income
per share $ 0.38 $ 0.20 $ 1.17 $ 0.38
Shares used in computing basic
pro forma net income per share 113,912 111,220 113,672 111,497
Shares used in computing diluted
pro forma net income per share 124,022 114,166 122,746 113,660
Pro forma earnings per share
adjusted for impact of
two-for-one stock split (A):
Basic pro forma earnings
per share $ 0.21 $ 0.10 $ 0.63 $ 0.19
Diluted pro forma earnings
per share $ 0.19 $ 0.10 $ 0.58 $ 0.19
Shares used in computing basic
pro forma net income per share 227,823 222,440 227,344 222,994
Shares used in computing diluted
pro forma net income per share 248,045 228,333 245,492 227,319
(A) Pro forma earnings per share for the three and nine months ended
October 31, 2004 and 2003 have been presented to reflect a two-for-one stock
split approved November 16, 2004, payable to shareholders of record on
December 6, 2004.
Three Months Ended Nine Months Ended
October 31, October 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
A reconciliation between operating expenses on a GAAP basis and
pro forma operating expenses is as follows:
GAAP costs and expenses $ 246,300 $ 205,922 $ 720,889 $ 607,844
Restructuring and other (2,922) -- (14,889) --
Pro forma costs and expenses $ 243,378 $ 205,922 $ 706,000 $ 607,844
A reconciliation between income from operations on a GAAP basis and
pro forma income from operations is as follows:
GAAP income from operations $ 53,858 $ 27,940 $ 156,723 $ 48,489
Restructuring and other 2,922 -- 14,889 --
Pro forma income
from operations $ 56,780 $ 27,940 $ 171,612 $ 48,489
A reconciliation between income tax benefit (provision) on a GAAP basis
and pro forma provision for income taxes is as follows:
GAAP income tax benefit
(provision) $ 17,411 $ (7,139) $ (8,379) $ 6,081
Income tax effect on
restructuring and other (584) -- (2,978) --
Dividends received deduction
benefit for the current
fiscal year (4,298) -- -- --
Dividends received deduction
benefit for prior
fiscal years (15,540) -- (15,540) --
Non-recurring tax benefit (8,905) -- (8,905) (19,674)
Pro forma provision for
income taxes $ (11,916) $ (7,139) $ (35,802) $(13,593)
A reconciliation between net income on a GAAP basis and
pro forma net income is as follows:
GAAP net income $ 74,070 $ 22,606 $ 155,740 $ 62,717
Restructuring and other 2,922 -- 14,889 --
Income tax effect on
restructuring and other (584) -- (2,978) --
Dividends received deduction
benefit for the current
fiscal year (4,298) -- -- --
Dividends received deduction
benefit for prior fiscal years (15,540) -- (15,540) --
Non-recurring tax benefit (8,905) -- (8,905) (19,674)
Pro forma net income $ 47,665 $ 22,606 $ 143,206 $ 43,043
A reconciliation between diluted net income per share on a pre-split GAAP
basis and diluted pro forma net income per share on a pre-split basis is
as follows:
Pre-split GAAP diluted net
income per share $ 0.597 $ 0.198 $ 1.269 $ 0.552
Restructuring and other 0.024 -- 0.121 --
Income tax effect on
restructuring and other (0.005) -- (0.024) --
Dividends received deduction
benefit for the current
fiscal year (0.035) -- -- --
Dividends received deduction
benefit for prior fiscal years (0.125) -- (0.127) --
Non-recurring tax benefit (0.072) -- (0.073) (0.173)
Pre-split pro forma diluted
net income per share $ 0.384 $ 0.198 $ 1.166 $ 0.379
A reconciliation between diluted net income per share on a post-split GAAP
basis and diluted pro forma net income per share on a post-split basis is
as follows:
Post-split GAAP diluted net
income per share $ 0.299 $ 0.099 $ 0.634 $ 0.276
Restructuring and other 0.012 -- 0.061 --
Income tax effect on
restructuring and other (0.002) -- (0.012) --
Dividends received deduction
benefit for the current
fiscal year (0.017) -- -- --
Dividends received deduction
benefit for prior fiscal years (0.064) -- (0.064) --
Non-recurring tax benefit (0.036) -- (0.036) (0.087)
Post-split pro forma diluted
net income per share $ 0.192 $ 0.099 $ 0.583 $ 0.189
To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk uses pro forma measures of operating results, net income and
net income per share, which are adjusted to exclude certain costs, expenses,
gains and losses we believe appropriate to enhance an overall understanding of
our past financial performance and also our prospects for the future. These
adjustments to our GAAP results are made with the intent of providing both
management and investors a more complete understanding of Autodesk's
underlying operational results and trends and our marketplace performance. For
example, the pro forma results are an indication of our baseline performance
before gains, losses or other charges that are considered by management to be
outside of our core operating results. In addition, these adjusted pro forma
results are among the primary indicators management uses as a basis for our
planning and forecasting of future periods. The presentation of this
additional information is not meant to be considered in isolation or as a
substitute for net income or diluted net income per share prepared in
accordance with generally accepted accounting principles in the United States.
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
October 31, January 31,
2004 2004
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 377,148 $ 282,249
Marketable securities 56,917 81,275
Accounts receivable, net 168,044 166,816
Inventories 12,530 17,365
Deferred income taxes 56,985 25,410
Prepaid expenses and other current
assets 25,896 24,137
Total current assets 697,520 597,252
Marketable securities 83,899 165,976
Computer equipment, software, furniture and
leasehold improvements, at cost:
Computer equipment, software and
furniture 193,845 206,319
Leasehold improvements 32,625 34,526
Less accumulated depreciation (158,571) (174,371)
Net 67,899 66,474
Purchased technologies and
capitalized software, net 13,108 19,378
Goodwill, net 166,669 160,094
Deferred income taxes, net 44,048 --
Other assets 8,984 7,986
$1,082,127 $1,017,160
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 50,909 $ 52,307
Accrued compensation 107,917 92,830
Accrued income taxes 37,734 50,695
Deferred revenues 157,105 127,276
Other accrued liabilities 53,891 61,814
Total current liabilities 407,556 384,922
Deferred income taxes, net -- 7,849
Other liabilities 1,293 2,746
Stockholders' equity:
Preferred stock -- --
Common stock and additional paid-in
capital 600,936 473,673
Accumulated other comprehensive loss (4,432) (4,754)
Deferred compensation (412) (451)
Retained earnings 77,186 153,175
Total stockholders' equity 673,278 621,643
$1,082,127 $1,017,160
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended
October 31,
2004 2003
(Unaudited)
Operating Activities
Net income $ 155,740 $ 62,717
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 38,581 35,966
Stock compensation expense 2,915 1,497
Net loss on fixed asset disposals 321 --
Write-downs of cost method investments -- 61
Tax benefits from employee stock plans 91,414 --
Restructuring related charges, net 4,773 --
Changes in operating assets and liabilities (64,318) 709
Net cash provided by operating activities 229,426 100,950
Investing Activities
Net sales and maturities of available-for-sale
marketable securities 105,238 4,927
Capital and other expenditures (29,291) (18,716)
Business combinations, net of cash acquired (11,750) (5,150)
Other investing activities (1,487) (51)
Net cash provided by (used in) investing activities 62,710 (18,990)
Financing activities
Proceeds from issuance of common stock,
net of issuance costs 211,456 50,454
Repurchases of common stock (400,066) (81,062)
Dividends paid (10,146) (10,076)
Net cash used in financing activities (198,756) (40,684)
Effect of exchange rate changes on cash and
cash equivalents 1,519 7,057
Net increase in cash and cash equivalents 94,899 48,333
Cash and cash equivalents at beginning of year 282,249 186,377
Cash and cash equivalents at end of period $ 377,148 $ 234,710
Supplemental cash flow information:
Net cash paid during the period for income taxes $ 12,123 $ 2,058
Fiscal Year 2005 QTR 1 QTR 2 QTR 3 QTR 4 YTD2005
Financial Statistics (in millions):
Total net revenues $ 297.9 $ 279.6 $ 300.2 $ 877.6
License and other
revenues $ 260.5 $ 238.5 $ 254.5 $ 753.4
Maintenance revenues $ 37.4 $ 41.1 $ 45.7 $ 124.2
Gross Margin 86% 86% 86% 86%
GAAP Operating Expenses $ 202.5 $ 190.0 $ 202.9 $ 595.4
GAAP Operating Margin 18% 18% 18% 18%
GAAP Net Income $ 42.5 $ 39.2 $ 74.1 $ 155.7
Pre-split GAAP Earnings
Per Share (diluted) $ 0.36 $ 0.31 $ 0.60 $ 1.27
Split-adjusted GAAP
Earnings Per Share
(diluted) (F) $ 0.18 $ 0.16 $ 0.30 $ 0.63
Pro Forma Operating
Expenses (A)(B) $ 194.2 $ 186.3 $ 200.0 $ 580.5
Pro Forma Operating
Margin (A)(C) 21% 19% 19% 20%
Pro Forma Net Income (A)(D) $ 51.3 $ 44.2 $ 47.7 $ 143.2
Pre-split Pro Forma
Earnings Per Share
(diluted) (A)(E) $ 0.43 $ 0.35 $ 0.38 $ 1.17
Split-adjusted Pro Forma
Earnings Per Share
(diluted) (A)(F) $ 0.22 $ 0.18 $ 0.19 $ 0.58
Total Cash and
Marketable Securities $ 519.4 $ 571.7 $ 518.0 $ 518.0
Days Sales Outstanding 43 51 50 50
Capital Expenditures $ 5.9 $ 9.9 $ 13.5 $ 29.3
Cash from Operations $ 55.2 $ 83.5 $ 90.8 $ 229.4
GAAP Depreciation and
Amortization $ 12.5 $ 12.9 $ 13.2 $ 38.6
Revenue by Geography (in millions):
Americas $ 121.5 $ 115.1 $ 137.0 $ 373.6
Europe $ 108.8 $ 98.9 $ 95.8 $ 303.5
Asia/Pacific $ 67.6 $ 65.6 $ 67.4 $ 200.5
Revenue by Division (in millions) (G):
Design Solutions Segment $ 261.6 $ 243.8 $ 257.9 $ 763.3
Manufacturing Solutions
Division $ 44.8 $ 44.2 $ 50.4 $ 139.4
Infrastructure Solutions
Division $ 33.5 $ 31.4 $ 33.0 $ 98.0
Building Solutions
Group $ 27.2 $ 28.8 $ 29.1 $ 85.0
Platform Technology
Group and other $ 156.1 $ 139.4 $ 145.4 $ 440.9
Discreet Segment $ 36.1 $ 35.3 $ 41.6 $ 113.0
Upgrade Revenue (in millions):
Upgrade Revenue $ 66.2 $ 46.4 $ 55.8 $ 168.4
Deferred Maintenance Revenue (in millions):
Deferred Maintenance
Revenue Balance $ 96.7 $ 107.2 $ 113.2 $ 113.2
Operating Income (Loss) by Segment (in millions) (G):
Design Solutions $124.2 $ 106.5 $ 115.8 $ 346.5
Discreet $ 1.8 $ 5.2 $ 5.4 $ 12.4
Unallocated amounts $(72.5) $ (62.3) $ (67.4) $(202.2)
Headcount:
Headcount 3,409 3,443 3,437 3,437
Common Stock Statistics:
Stock Outstanding
Pre-split Pro Forma
EPS Calculation
- diluted 119,283,000 125,304,000 124,022,000 122,746,000
Post-split Pro Forma
EPS Calculation
- diluted 238,565,000 250,607,000 248,045,000 245,492,000
Stock Repurchased -
Pre-split basis 5,182,600 1,659,800 4,016,100 10,858,500
Installed Base Statistics:
Total AutoCAD-based
Installed Base* 3,469,400 3,514,600 3,571,800 3,571,800
*Includes prior period adjustment of approximately 28,000 seats
(A) To supplement our consolidated financial statements presented on a
GAAP basis, Autodesk uses pro forma measures of operating results, net
income and net income per share, which are adjusted to exclude certain
costs, expenses, gains and losses we believe appropriate to enhance an
overall understanding of our past financial performance and also our
prospects for the future. These adjustments to our GAAP results are
made with the intent of providing both management and investors a more
complete understanding of Autodesk's underlying operational results
and trends and our marketplace performance. For example, the pro forma
results are an indication of our baseline performance before gains,
losses or other charges that are considered by management to be
outside of our core operating results.
In addition, these adjusted pro forma results are among the primary
indicators management uses as a basis for our planning and forecasting
of future periods. The presentation of this additional information is
not meant to be considered in isolation or as a substitute for net
income or diluted net income per share prepared in accordance with
generally accepted accounting principles in the United States.
(B) GAAP Operating
Expenses $202.5 $ 190.0 $ 202.9 $ -- $595.4
Restructuring and other $ (8.3) $( 3.7) $ (2.9) $ -- $(14.9)
Pro Forma Operating
Expenses $194.2 $ 186.3 $ 200.0 $ -- $580.5
(C) GAAP Operating Margin 18% 18% 18% 0% 18%
Restructuring and other 3% 1% 1% 0% 2%
Pro Forma Operating
Margin 21% 19% 19% 0% 20%
(D) GAAP Net Income $42.505 $39.165 $74.070 $ -- $155.740
Restructuring and
other $ 8.250 $ 3.717 $ 2.922 $ -- $ 14.889
Income tax effect on
restructuring and
other (H) $(1.650) $(0.744) $(0.584) $ -- $( 2.978)
Dividends Received
Deduction benefit
for current fiscal
year (H) $ 2.244 $ 2.054 $(4.298) $ -- $ --
Dividends Received
Deduction benefit
for prior fiscal
years (H) $ -- $ -- $(15.540) $ -- $(15.540)
Non-recurring tax
benefit $ -- $ -- $ (8.905) $ -- $ (8.905)
Pro Forma Net Income $51.349 $44.192 $ 47.665 $ -- $143.206
(E) Pre-split GAAP
Earnings Per Share
(diluted) $ 0.356 $ 0.313 $ 0.597 $ -- $ 1.269
Restructuring and
other $ 0.069 $ 0.030 $ 0.024 $ -- $ 0.121
Income tax effect
on restructuring
and other (H) $(0.014) $(0.006) $ (0.005) $ -- $ (0.024)
Dividends Received
Deduction benefit
for current fiscal
year (H) $ 0.019 $ 0.016 $ (0.035) $ -- $ --
Dividends Received
Deduction benefit
for prior fiscal
years (H) $ -- $ -- $ (0.125) $ -- $ (0.127)
Non-recurring tax
benefit $ -- $ -- $ (0.072) $ -- $ (0.073)
Pre-split Pro Forma
Earnings Per Share
(diluted) $ 0.430 $ 0.353 $ 0.384 $ -- $ 1.166
(F) On November 18, 2004 Autodesk announced the Board of Directors
declared a 2-for-1 stock split on its common stock to be paid on
December 20, 2004 to stockholders of record as of the close of
business on December 6, 2004. As a result, we have presented the
impact of this stock split on our GAAP and pro forma earnings per
share for all prior fiscal periods.
Post-split GAAP
Earnings Per Share
(diluted) $ 0.178 $ 0.156 $ 0.299 $ -- $ 0.634
Restructuring and
other $ 0.035 $ 0.015 $ 0.012 $ -- $ 0.061
Income tax effect
on restructuring
and other (H) $(0.007) $(0.003) $ (0.002) $ -- $ (0.012)
Dividends Received
Deduction benefit
for current fiscal
year (H) $ 0.009 $ 0.008 $ (0.017) $ -- $ --
Dividends Received
Deduction benefit
for prior fiscal
years (H) $ -- $ -- $ (0.064) $ -- $ (0.064)
Non-recurring
tax benefit $ -- $ -- $ (0.036) $-- $ (0.036)
Post-split Pro Forma
Earnings Per Share
(diluted) $0.215 $0.176 $ 0.192 $-- $ 0.583
(G) In the third quarter of fiscal 2005, Autodesk modified its segment
disclosure. For purposes of comparison with previous periods, the
segment data has been restated to reflect the current segment
reporting.
(H) In the third quarter of fiscal 2005, Autodesk determined that its
consolidated fiscal year effective income tax rate declined from
24% to 20%.
For purposes of comparison, we have assumed the new estimated
effective income tax rate of 20% in calculating our pro forma net
income and pro forma earnings per share for each individual quarter of
fiscal 2005.
CONTACT:
Investors: Sue Pirri, sue.pirri@autodesk.com, 415-507-6467
John Clancy, john.clancy@autodesk.com 415-507-6373
Press: Kathleen O'Boyle, Kathleen.oboyle@autodesk.com, 415-507-6465
Nicole Pack, nicole.pack@autodesk.com, 415-507-6282
SOURCE Autodesk, Inc.
-0- 11/18/2004
/CONTACT: investors, Sue Pirri, +1-415-507-6467, or
sue.pirri@autodesk.com, or John Clancy, +1-415-507-6373, or
john.clancy@autodesk.com, or media, Kathleen O'Boyle, +1-415-507-6465, or
Kathleen.oboyle@autodesk.com, or Nicole Pack, +1-415-507-6282, or
nicole.pack@autodesk.com, all of Autodesk, Inc./
/Web site: http://www.autodesk.com/
(ADSK)
CO: Autodesk, Inc.
ST: California
IN: CPR STW
SU: ERN ERP CCA