EX-99.01 2 f09918exv99w01.htm EXHIBIT 99.01 exv99w01
 

EXHIBIT 99.01

Intuit Non-GAAP Statement of Operations
  (excluding ITS)

                                                                                           
                   
In millions, except per share amounts
Unaudited		     Actual     Actual     Actual     Actual       Actual       Actual     Actual     Actual     Forecast       Forecast    
      Q104     Q204     Q304     Q404       FY04       Q105     Q205     Q305     Q405       FY05    
                           
Revenue
                                                                                          
QuickBooks Related
     $ 129.9     $ 201.4     $ 169.9     $ 152.7       $ 653.9       $ 145.6     $ 222.3     $ 196.6                      
Consumer Tax (CTG)
       5.2       130.0       344.7       10.1         490.0         5.0       141.1       419.0                      
Professional Tax
       6.9       156.8       82.5       5.7         251.9         7.4       150.6       99.8                      
Intuit Branded Small Business
       47.0       55.6       51.7       52.6         206.9         53.5       60.7       56.4                      
Other Businesses
       38.2       76.8       47.6       36.9         199.5         41.2       73.5       63.1                      
                           
Total Revenue
     $ 227.2     $ 620.6     $ 696.4     $ 258.0       $ 1,802.2       $ 252.8     $ 648.2     $ 834.9       $270-$285       $ 2,005 - $2,020    
 
                                                                                        
 
                                                                                          
Revenue Growth
                                                                                          
QuickBooks Related
                                         18 %                                         10%-14 %  
Consumer Tax (CTG)
                                         16 %                                         15%-16 %  
Professional Tax
                                         3 %                                         4%-5 %  
Intuit Branded Small Business
                                         11 %                                         6%-12 %  
Other Businesses
                                         4 %                                         5%-10 %  
 
                                                                                          
Non-GAAP Income Statement
                                                                                          
Total Revenue
       227.2       620.6       696.4       258.0         1,802.2         252.8       648.2       834.9                      
Revenue Growth
                                         13 %                                         11%-12 %  
 
                                                                                          
Total Cost of Revenue
       72.7       113.1       94.3       73.0         353.0         75.4       116.4       102.0                      
                           
 
                                                                                          
Selling and Marketing
       127.1       165.2       138.5       110.5         541.4         128.5       173.5       158.0                      
Research and Development
       70.1       72.1       69.9       64.0         276.0         74.4       76.9       78.4                      
General and Administrative
       42.2       46.8       43.1       46.5         178.7         49.6       56.4       67.7                      
                           
Operating Expenses
       239.5       284.2       251.4       221.1         996.1         252.6       306.8       304.2                      
                           
Total Non-GAAP Expenses
       312.2       397.2       345.6       294.1         1,349.1         327.9       423.3       406.1                      
Expense Growth
                                         11 %                                              
 
                                                                                          
Operating Income (Loss)
       (85.0 )     223.3       350.8       (36.0 )       453.1         (75.2 )     225.0       428.7       ($45) - ($35 )       $535 - $545    
                           
Operating Margin
                                         25 %                                              
Interest Inc/Other
       7.4       6.8       4.7       11.4         30.4         3.9       3.0       5.7                      
                           
 
                                                                                          
Pre-tax Income (Loss)
       (77.6 )     230.2       355.5       (24.6 )       483.5         (71.3 )     228.0       434.4                      
Income Tax Provision (Benefit)
       (26.4 )     78.3       120.9       (8.4 )       164.4         (24.2 )     77.5       147.7                      
                           
Net Income (Loss)
     $ (51.2 )   $ 151.9     $ 234.6     $ (16.2 )     $ 319.1       $ (47.1 )   $ 150.5     $ 286.7                      
                           
 
                                                                                          
Non GAAP EPS
       (0.26 )     0.75       1.18       (0.09 )     $ 1.59         (0.25 )     0.79       1.53     ($ 0.12) - ($0.09 )     $ 1.96-$1.99    
 
                                                                                          
Diluted Shares O/S
       —       203.4       198.7       —         200.1         —       190.1       186.9                 189-194    
Primary Shares O/S
       198.7       197.7       194.5       190.9         195.5         188.3       186.3       183.4       180-183         185-190    
EPS Annual Growth
                                         19 %                                         23% - 25 %  
                           
 
    All amounts in this table exclude historical and forecast results for our Information Technology Solutions (ITS) business. These are non-GAAP financial measures. See the attached tables for GAAP reconciliations.

 

 

Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2004

In thousands, except per share amounts
Unaudited

                                                                                                                         
    Three Months Ended October 31, 2003     Three Months Ended January 31, 2004     Three Months Ended April 30, 2004  
    GAAP                                     GAAP                                     GAAP                            
    Results             Results                     Results             Results                     Results             Results              
    per             Excluding     Non-GAAP             per             Excluding     Non-GAAP             per             Excluding     Non-GAAP        
    Form 10-Q     ITS     ITS     Adjmts     Non-GAAP     Form 10-Q     ITS     ITS     Adjmts     Non-GAAP     Form 10-Q     ITS     ITS     Adjmts     Non-GAAP  
Total net revenue
   $ 239,322     $ 12,125     $ 227,197     $ —     $ 227,197     $ 633,371     $ 12,793     $ 620,578     $ —     $ 620,578     $ 709,838     $ 13,424     $ 696,414     $ —     $ 696,414  
 
                                                                                                                        
Costs and expenses:
                                                                                                                        
Cost of product, service, other revenue
     73,364       646       72,718       —       72,718       113,980       903       113,077       —       113,077       94,915       665       94,250       —       94,250  
Amortization of purchased assets
     3,222       663       2,559       (2,559 )     —       3,257       713       2,544       (2,544 )     —       3,354       813       2,541       (2,541 )     —  
Selling and marketing
     131,775       4,639       127,136       —       127,136       169,909       4,679       165,230       —       165,230       143,525       5,048       138,477       —       138,477  
Research and development
     70,634       537       70,097       —       70,097       72,644       566       72,078       —       72,078       70,548       686       69,862       —       69,862  
General and administrative
     43,235       1,012       42,223       —       42,223       47,688       841       46,847       —       46,847       43,792       733       43,059       —       43,059  
Charge for vacant facilities
     —       —       —       —       —       —       —       —       —       —       —       —       —       —       —  
Acquisition-related charges
     5,752       —       5,752       (5,752 )     —       6,540       1       6,539       (6,539 )     —       6,152       3       6,149       (6,149 )     —  
 
                                                                                          
Total costs and expenses
     327,982       7,497       320,485       (8,311 )     312,174       414,018       7,703       406,315       (9,083 )     397,232       362,286       7,948       354,338       (8,690 )     345,648  
 
                                                                                          
Income (loss) from continuing operations
     (88,660 )     4,628       (93,288 )     8,311       (84,977 )     219,353       5,090       214,263       9,083       223,346       347,552       5,476       342,076       8,690       350,766  
 
                                                                                                                        
Interest and other income
     7,490       110       7,380       —       7,380       7,170       321       6,849       —       6,849       4,767       42       4,725       —       4,725  
Gains (losses) on marketable securities and other investments, net
     147       —       147       (147 )     —       90       —       90       (90 )     —       107       —       107       (107 )     —  
 
                                                                                          
Income (loss) from continuing operations before income taxes
     (81,023 )     4,738       (85,761 )     8,164       (77,597 )     226,613       5,411       221,202       8,993       230,195       352,426       5,518       346,908       8,583       355,491  
Income tax (benefit) provision
     (27,520 )     1,800       (29,320 )     2,937       (26,383 )     77,092       2,056       75,036       3,230       78,266       88,140       2,097       86,043       34,824       120,867  
 
                                                                                          
Income (loss) from continuing operations
     (53,503 )     2,938       (56,441 )     5,227       (51,214 )     149,521       3,355       146,166       5,763       151,929       264,286       3,421       260,865       (26,241 )     234,624  
Net income (loss) from discontinued operations
     (462 )     (2,938 )     2,476       (2,476 )     —       (455 )     (3,355 )     2,900       (2,900 )     —       (253 )     (3,421 )     3,168       (3,168 )     —  
 
                                                                                          
Net income (loss)
   $ (53,965 )   $ —     $ (53,965 )   $ 2,751       $(51,214 )   $ 149,066     $ —     $ 149,066     $ 2,863       $151,929     $ 264,033     $ —     $ 264,033     $ (29,409 )   $ 234,624  
 
                                                                                          
 
                                                                                                                        
Basic net income (loss) per share from continuing operations
   $ (0.27 )           $ (0.28 )           $ (0.26 )   $ 0.75             $ 0.74             $ 0.77     $ 1.36             $ 1.34             $ 1.21  
Basic net income (loss) per share from discontinued operations
     —               0.01               —       —               0.01               —       —               0.02               —  
 
                                                                                  
Basic net income (loss) per share
   $ (0.27 )           $ (0.27 )           $ (0.26 )   $ 0.75             $ 0.75             $ 0.77     $ 1.36             $ 1.36             $ 1.21  
 
                                                                                                      
Shares used in basic per share amounts
     198,747               198,747               198,747       197,665               197,665               197,665       194,517               194,517               194,517  
 
                                                                                                      
 
                                                                                                                        
Diluted net income (loss) per share from continuing operations
   $ (0.27 )           $ (0.28 )           $ (0.26 )   $ 0.73             $ 0.72             $ 0.75     $ 1.33             $ 1.31             $ 1.18  
Diluted net income (loss) per share from discontinued operations
     —               0.01               —       —               0.01               —       —               0.02               —  
 
                                                                                  
Diluted net income (loss) per share
   $ (0.27 )           $ (0.27 )           $ (0.26 )   $ 0.73             $ 0.73             $ 0.75     $ 1.33             $ 1.33             $ 1.18  
 
                                                                                                      
Shares used in diluted per share amounts
     198,747               198,747               198,747       203,430               203,430               203,430       198,748               198,748               198,748  
 
                                                                                                      

Segment operating income for ITS as reported in Intuit’s earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.

The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.

The non-GAAP financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuit’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

 

 

Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2004

In thousands, except per share amounts
Unaudited

                                                                                 
    Three Months Ended July 31, 2004     Twelve Months Ended July 31, 2004  
    GAAP                                     GAAP                            
    Results             Results                     Results             Results              
    per             Excluding     Non-GAAP             per             Excluding     Non-GAAP        
    Form 10-Q     ITS     ITS     Adjmts     Non-GAAP     Form 10-Q     ITS     ITS     Adjmts     Non-GAAP  
Total net revenue
   $ 272,329     $ 14,294     $ 258,035     $ —     $ 258,035     $ 1,854,860     $ 52,636     $ 1,802,224     $ —     $ 1,802,224  
Revenue growth
                                             13 %             13 %             13 %
 
                                                                                
Costs and expenses:
                                                                                
Cost of product, service, other revenue
     74,289       1,303       72,986       —       72,986       356,548       3,517       353,031       —       353,031  
Amortization of purchased assets
     3,354       812       2,542       (2,542 )     —       13,187       3,001       10,186       (10,186 )     —  
Selling and marketing
     114,704       4,160       110,544       —       110,544       559,913       18,526       541,387       —       541,387  
Research and development
     64,750       738       64,012       —       64,012       278,576       2,527       276,049       —       276,049  
General and administrative
     46,815       1,020       45,795       —       45,795       181,530       3,606       177,924       —       177,924  
Charge for vacant facilities
     729       —       729       —       729       729       —       729       —       729  
Acquisition-related charges
     4,999       4       4,995       (4,995 )     —       23,443       8       23,435       (23,435 )     —  
                                                                 
Total costs and expenses
     309,640       8,037       301,603       (7,537 )     294,066       1,413,926       31,185       1,382,741       (33,621 )     1,349,120  
                                                                 
Income (loss) from continuing operations
     (37,311 )     6,257       (43,568 )     7,537       (36,031 )     440,934       21,451       419,483       33,621       453,104  
Operating margin
                                             24 %             23 %             25 %
 
                                                                                
Interest and other income
     11,417       (29 )     11,446       —       11,446       30,844       444       30,400       —       30,400  
Gains (losses) on marketable securities and other investments, net
     1,385       —       1,385       (1,385 )     —       1,729       —       1,729       (1,729 )     —  
                                                                 
Income (loss) from continuing operations before income taxes
     (24,509 )     6,228       (30,737 )     6,152       (24,585 )     473,507       21,895       451,612       31,892       483,504  
Income tax (benefit) provision
     (1,102 )     2,367       (3,469 )     (4,890 )     (8,359 )     136,610       8,320       128,290       36,101       164,391  
                                                                 
Income (loss) from continuing operations
     (23,407 )     3,861       (27,268 )     11,042       (16,226 )     336,897       13,575       323,322       (4,209 )     319,113  
Net income (loss) from discontinued operations
     (18,697 )     (3,861 )     (14,836 )     14,836       —       (19,867 )     (13,575 )     (6,292 )     6,292       —  
                                                                 
Net income (loss)
   $ (42,104 )   $ —     $ (42,104 )   $ 25,878     $ (16,226 )   $ 317,030     $ —     $ 317,030     $ 2,083     $ 319,113  
                                                                 
 
                                                                                
Basic net income (loss) per share from continuing operations
   $ (0.12 )           $ (0.14 )           $ (0.09 )   $ 1.72             $ 1.65             $ 1.63  
Basic net income (loss) per share from discontinued operations
     (0.10 )             (0.08 )             —       (0.10 )             (0.03 )             —  
 
                                                                  
Basic net income (loss) per share
   $ (0.22 )           $ (0.22 )           $ (0.09 )   $ 1.62             $ 1.62             $ 1.63  
 
                                                                  
Shares used in basic per share amounts
     190,893               190,893               190,893       195,455               195,455               195,455  
 
                                                                  
 
                                                                                
Diluted net income (loss) per share from continuing operations
   $ (0.12 )           $ (0.14 )           $ (0.09 )   $ 1.68             $ 1.61             $ 1.59  
Diluted net income (loss) per share from discontinued operations
     (0.10 )             (0.08 )             —       (0.10 )             (0.03 )             —  
 
                                                                  
Diluted net income (loss) per share
   $ (0.22 )           $ (0.22 )           $ (0.09 )   $ 1.58             $ 1.58             $ 1.59  
 
                                                                  
Shares used in diluted per share amounts
     190,893               190,893               190,893       200,081               200,081               200,081  
 
                                                                  
 
                                                                                
Diluted earnings per share growth
                                             -3 %             -3 %             19 %

Segment operating income for ITS as reported in Intuit’s earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.

The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.

The non-GAAP financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuit’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

 

 

Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2005

In thousands, except per share amounts
Unaudited

                                                                                 
    Three Months Ended October 31, 2004     Three Months Ended January 31, 2005
    GAAP                                     GAAP                            
    Results             Results                     Results             Results              
    per             Excluding     Non-GAAP             per             Excluding     Non-GAAP        
    Form 10-Q     ITS     ITS     Adjmts     Non-GAAP     Form 10-Q     ITS     ITS     Adjmts     Non-GAAP  
Total net revenue
   $ 265,990     $ 13,214     $ 252,776     $ —     $ 252,776     $ 662,639     $ 14,395     $ 648,244     $ —     $ 648,244  
 
                                                                                
Costs and expenses:
                                                                                
Cost of product, service, other revenue
     76,472       1,079       75,393       —       75,393       117,607       1,175       116,432       —       116,432  
Amortization of purchased assets
     3,354       813       2,541       (2,541 )     —       3,439       813       2,626       (2,626 )     —  
Selling and marketing
     133,135       4,589       128,546       —       128,546       177,985       4,527       173,458       —       173,458  
Research and development
     75,107       742       74,365       —       74,365       77,743       797       76,946       —       76,946  
General and administrative
     50,843       1,202       49,641       —       49,641       57,371       946       56,425       —       56,425  
Acquisition-related charges
     4,444       3       4,441       (4,441 )     —       4,172       3       4,169       (4,169 )     —  
                                                           
Total costs and expenses
     343,355       8,428       334,927       (6,982 )     327,945       438,317       8,261       430,056       (6,795 )     423,261  
                                                           
Income (loss) from continuing operations
     (77,365 )     4,786       (82,151 )     6,982       (75,169 )     224,322       6,134       218,188       6,795       224,983  
 
                                                                                
Interest and other income
     3,951       96       3,855       —       3,855       3,088       106       2,982       —       2,982  
Gains (losses) on marketable securities and other investments, net
     158       —       158       (158 )     —       60       —       60       (60 )     —  
                                                           
Income (loss) from continuing operations before income taxes
     (73,256 )     4,882       (78,138 )     6,824       (71,314 )     227,470       6,240       221,230       6,735       227,965  
Income tax (benefit) provision
     (30,786 )     1,855       (32,641 )     8,394       (24,247 )     78,627       2,371       76,256       1,252       77,508  
                                                           
Income (loss) from continuing operations
     (42,470 )     3,027       (45,497 )     (1,570 )     (47,067 )     148,843       3,869       144,974       5,483       150,457  
Net income (loss) from discontinued operations
     (3,666 )     (3,027 )     (639 )     639       —       (1,591 )     (3,869 )     2,278       (2,278 )     —  
                                                           
Net income (loss)
   $ (46,136 )   $ —     $ (46,136 )   $ (931 )   $ (47,067 )   $ 147,252     $ —     $ 147,252     $ 3,205     $ 150,457  
                                                           
 
                                                                                
Basic net income (loss) per share from continuing operations
   $ (0.22 )           $ (0.24 )           $ (0.25 )   $ 0.80             $ 0.78             $ 0.81  
Basic net income (loss) per share from discontinued operations
     (0.02 )             —               —       (0.01 )             0.01               —  
 
                                                                
Basic net income (loss) per share
   $ (0.24 )           $ (0.24 )           $ (0.25 )   $ 0.79             $ 0.79             $ 0.81  
 
                                                                
Shares used in basic per share amounts
     188,346               188,346               188,346       186,331               186,331               186,331  
 
                                                                
 
                                                                                
Diluted net income (loss) per share from continuing operations
   $ (0.22 )           $ (0.24 )           $ (0.25 )   $ 0.78             $ 0.76             $ 0.79  
Diluted net income (loss) per share from discontinued operations
     (0.02 )             —               —       (0.01 )             0.01               —  
 
                                                                
Diluted net income (loss) per share
   $ (0.24 )           $ (0.24 )           $ (0.25 )   $ 0.77             $ 0.77             $ 0.79  
 
                                                                
Shares used in diluted per share amounts
     188,346               188,346               188,346       190,100               190,100               190,100  
 
                                                                

Segment operating income for ITS as reported in Intuit’s earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.

The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.

The non-GAAP financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuit’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

 

 

Intuit Inc.
Statement of Operations
Reclassification for ITS Discontinued Operations and Reconciliation to Non-GAAP Financial Measures
Fiscal Year 2005

In thousands, except per share amounts
Unaudited

                                                                                 
    Three Months Ended April 30, 2005     Nine Months Ended April 30, 2005
    GAAP                                     GAAP                            
    Results             Results                     Results             Results              
    per             Excluding     Non-GAAP             per             Excluding     Non-GAAP        
    Form 10-Q     ITS     ITS     Adjmts     Non-GAAP     Form 10-Q     ITS     ITS     Adjmts     Non-GAAP  
                                                               
Total net revenue
   $ 849,505     $ 14,641     $ 834,864     $ —     $ 834,864     $ 1,778,134     $ 42,250     $ 1,735,884     $ —     $ 1,735,884  
 
                                                                                
Costs and expenses:
                                                                                
Cost of product, service, other revenue
     103,121       1,151       101,970       —       101,970       297,200       3,405       293,795       —       293,795  
Amortization of purchased assets
     3,354       812       2,542       (2,542 )     —       10,147       2,438       7,709       (7,709 )     —  
Selling and marketing
     163,064       5,029       158,035       —       158,035       474,184       14,145       460,039       —       460,039  
Research and development
     79,422       1,028       78,394       —       78,394       232,272       2,567       229,705       —       229,705  
General and administrative
     70,508       2,765       67,743       —       67,743       178,722       4,913       173,809       —       173,809  
Acquisition-related charges
     3,970       4       3,966       (3,966 )     —       12,586       10       12,576       (12,576 )     —  
                                                               
Total costs and expenses
     423,439       10,789       412,650       (6,508 )     406,142       1,205,111       27,478       1,177,633       (20,285 )     1,157,348  
                                                               
Income (loss) from continuing operations
     426,066       3,852       422,214       6,508       428,722       573,023       14,772       558,251       20,285       578,536  
 
                                                                                
Interest and other income
     5,802       75       5,727       —       5,727       12,841       277       12,564       —       12,564  
Gains (losses) on marketable securities and other investments, net
     124       —       124       (124 )     —       342       —       342       (342 )     —  
                                                               
Income (loss) from continuing operations before income taxes
     431,992       3,927       428,065       6,384       434,449       586,206       15,049       571,157       19,943       591,100  
Income tax (benefit) provision
     131,485       1,493       129,992       17,721       147,713       179,326       5,719       173,607       27,367       200,974  
                                                               
Income (loss) from continuing operations
     300,507       2,434       298,073       (11,337 )     286,736       406,880       9,330       397,550       (7,424 )     390,126  
Net income (loss) from discontinued operations
     —       (2,434 )     2,434       (2,434 )     —       (5,257 )     (9,330 )     4,073       (4,073 )     —  
                                                               
Net income (loss)
   $ 300,507     $ —     $ 300,507     $ (13,771 )   $ 286,736     $ 401,623     $ —     $ 401,623     $ (11,497 )   $ 390,126  
                                                               
 
                                                                                
Basic net income (loss) per share from continuing operations
   $ 1.64             $ 1.63             $ 1.56     $ 2.19             $ 2.14             $ 2.10  
Basic net income (loss) per share from discontinued operations
     —               0.01               —       (0.03 )             0.02               —  
 
                                                                
Basic net income (loss) per share
   $ 1.64             $ 1.64             $ 1.56     $ 2.16             $ 2.16             $ 2.10  
 
                                                                
Shares used in basic per share amounts
     183,422               183,422               183,422       186,062               186,062               186,062  
 
                                                                
 
                                                                                
Diluted net income (loss) per share from continuing operations
   $ 1.61             $ 1.60             $ 1.53     $ 2.14             $ 2.10             $ 2.06  
Diluted net income (loss) per share from discontinued operations
     —               0.01               —       (0.02 )             0.02               —  
 
                                                                
Diluted net income (loss) per share
   $ 1.61             $ 1.61             $ 1.53     $ 2.12             $ 2.12             $ 2.06  
 
                                                                
Shares used in diluted per share amounts
     186,887               186,887               186,887       189,808               189,808               189,808  
 
                                                                

Segment operating income for ITS as reported in Intuit’s earnings press release dated May 18, 2005 excludes amortization of purchased assets and acquisition-related charges.

The non-GAAP financial measures above exclude amortization of purchased assets, acquisition-related charges, gains on marketable securities and discontinued operations for all periods.

The non-GAAP financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuit’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

 

 

Intuit Inc.
Reconciliation of Guidance for Non-GAAP Financial Measures to Projected GAAP Revenue, Operating Income and EPS
All Figures Except GAAP EPS Exclude Intuit Information Technology Solutions

In thousands, except per share amounts
Unaudited

                                         
    Three Months Ending July 31, 2005  
    Non-GAAP             GAAP  
    Range of Estimate             Range of Estimate  
    From     To     Adjustments     From     To  
Revenue
   $ 270,000     $ 285,000     $ —     $ 270,000     $ 285,000  
Operating loss
     (45,000 )     (35,000 )     (6,500 ) [a]     (51,500 )     (41,500 )
Diluted loss per share
   $ (0.12 )   $ (0.09 )   $ —   [b]   $ (0.12 )   $ (0.09 )
Shares
     180,000       183,000       —       180,000       183,000  
       
    Twelve Months Ending July 31, 2005  
    Non-GAAP             GAAP  
    Range of Estimate             Range of Estimate  
    From     To     Adjustments     From     To  
Revenue
   $ 2,005,000     $ 2,020,000     $ —     $ 2,005,000     $ 2,020,000  
Revenue growth
     11 %     12 %     —       11 %     12 %
Operating income
     535,000       545,000       (26,800 ) [c]     508,200       518,200  
Diluted earnings per share
   $ 1.96     $ 1.99     $ 0.06   [d]   $ 2.02     $ 2.05  
Diluted earnings per share growth
     23 %     25 %     5 % [d]     28 %     30 %
Shares
     189,000       194,000       —       189,000       194,000  

[a]   Reflects estimated adjustments for amortization of purchased software of approximately $2.5 million and amortization of purchased intangible assets of approximately $4.0 million.
[b]   Reflects the adjustments in item [a], income tax expense related to these adjustments and estimated net income from discontinued operations of $4.0 million.
[c]   Reflects estimated adjustments for amortization of purchased software of approximately $10.3 million and amortization of purchased intangible assets of approximately $16.5 million.
[d]   Reflects the adjustments in item [c], income tax expense related to these adjustments and estimated net income from discontinued operations of $8.0 million.

The non-GAAP financial measures above should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are not prepared in accordance with GAAP and likely are different from non-GAAP financial measures used by other companies. Intuit’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s core operating results because they exclude amounts that are not necessarily related to Intuit’s core operating results. Intuit’s management refers to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Intuit’s historical operating results. In addition, Intuit has historically reported similar non-GAAP financial measures and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Intuit computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

The reconciliations of the forward-looking non-GAAP financial measures to GAAP in this table include all information reasonably available to Intuit at the date of this reconciliation. The adjustments in this table are those that management can predict. Intuit’s non-GAAP financial measures exclude acquisition-related charges, discontinued operations and gains and losses on marketable securities. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable securities.

 

 

Cautions About Forward-Looking Statements

This financial information contains forward-looking statements, including forecasts of our expected financial results. The numbers provided under the headings “Forecast Q405” and “Forecast FY05” in the table entitled “Intuit Non-GAAP Statement of Operations (excluding ITS)” and all of the numbers provided in the table entitled “Reconciliation of Guidance for Non- GAAP Financial Measures to Projected GAAP Revenue, Operating Income and EPS” are forward-looking statements. A number of risks and uncertainties may cause our actual results to differ materially from our expressed expectations. Some of the important factors that could cause our results to differ include the following. Our revenue, profitability and market position could be negatively impacted in an unpredictable manner due to product introductions and price competition from our competitors, including competition from Microsoft, which recently announced its intention to target small business customers with accounting software and associated services, and governmental encroachment in our tax businesses. Our participation in the Free File Alliance may result in lost revenue due to potential customers filing free federal returns and electing not to pay for state filing or other services and cannibalization of our traditional paid franchise. Our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results. It is a challenge for us to predict tax-related revenues due to the heavy concentration of activity in a short time period. Revenue growth for some of our products is slowing, and we must successfully introduce new products and services to meet our growth and profitability objectives. Our new product offerings may not succeed or they may negatively impact our profitability if customers elect to purchase lower-priced simplified offerings instead of our higher priced offerings. We have implemented new information systems, and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to manage effectively our business. Litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs. Our failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2004 and in subsequent Form 10-Q and other SEC filings. You can locate these reports through our website at http://www.intuit.com/about_intuit/investors. We do not undertake any duty to update the information in this financial information except as otherwise required by law.