Systemax Inc. |
(Exact Name of Registrant as Specified in its Charter) |
Delaware | 1-13792 | 11-3262067 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
11 Harbor Park Drive, Port Washington, New York | 11050 | |||
(Address of Principal Executive Offices) | (Zip Code) |
N.A. |
(Former Name or Former Address, if Changed Since Last Report) |
☐ | 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 240.14-12) |
☐ | 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 CRF 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 8.01 | Other Events |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit Number | Description | |
99.1 | Press Release of Systemax Inc., dated February 27, 2018. |
SYSTEMAX INC. | ||
Date: February 27, 2018 | ||
By: | /s/ Eric Lerner | |
Name: Eric Lerner | ||
Title: Senior Vice President |
Press Release of Systemax Inc., dated February 27, 2018. |
Performance Summary* (U.S. dollars in millions, except per share data) | ||||||||||||
Highlights | Quarter Ended December 31, | Year Ended December 31, | ||||||||||
GAAP Results** | 2017 | 2016 | 2017 | 2016 | ||||||||
Net sales | $ | 330.6 | $ | 295.6 | $ | 1,265.4 | $ | 1,170.3 | ||||
Gross profit | $ | 88.5 | $ | 78.3 | $ | 351.4 | $ | 307.9 | ||||
Gross margin*** | 26.8 | % | 26.5 | % | 27.8 | % | 26.3 | % | ||||
Operating income | $ | 19.2 | $ | 16.1 | $ | 71.3 | $ | 27.7 | ||||
Operating margin | 5.8 | % | 5.4 | % | 5.6 | % | 2.4 | % | ||||
Net income from continuing operations | $ | 32.4 | $ | 11.5 | $ | 76.1 | $ | 16.9 | ||||
Net income per diluted share from continuing operations | $ | 0.85 | $ | 0.31 | $ | 2.02 | $ | 0.45 | ||||
Net income (loss) from discontinued operations | $ | 1.4 | $ | (13.6 | ) | $ | (35.7 | ) | $ | (49.5 | ) | |
Net income (loss) per diluted share from discontinued operations | $ | 0.04 | $ | (0.37 | ) | $ | (0.96 | ) | $ | (1.33 | ) | |
Non-GAAP Results** | ||||||||||||
Net sales | $ | 330.6 | $ | 294.8 | $ | 1,265.4 | $ | 1,132.8 | ||||
Gross profit | $ | 88.5 | $ | 77.7 | $ | 351.4 | $ | 303.0 | ||||
Gross margin*** | 26.8 | % | 26.4 | % | 27.8 | % | 26.7 | % | ||||
Operating income | $ | 20.0 | $ | 13.7 | $ | 75.1 | $ | 35.9 | ||||
Operating margin | 6.0 | % | 4.6 | % | 5.9 | % | 3.2 | % | ||||
Net income from continuing operations | $ | 12.9 | $ | 8.7 | $ | 48.7 | $ | 22.4 | ||||
Net income per diluted share from continuing operations | $ | 0.34 | $ | 0.23 | $ | 1.30 | $ | 0.60 | ||||
Net income (loss) from discontinued operations | $ | 2.2 | $ | (10.8 | ) | $ | (35.9 | ) | $ | (55.7 | ) | |
Net income (loss) per diluted share from discontinued operations | $ | 0.06 | $ | (0.29 | ) | $ | (0.95 | ) | $ | (1.50 | ) |
• | Consolidated sales increased 11.8% to $330.6 million in U.S. dollars. On a constant currency basis, average daily sales increased 8.7%. |
• | Industrial Products Group (“IPG”) sales grew 10.6% to $194.5 million in U.S. dollars. On a constant currency basis, average daily sales increased 10.4%. |
• | European Technology Products Group (“ETG”), comprising France and the divested German business, sales increased 14.4% to $136.1 million in U.S. dollars. On a constant currency basis, average daily sales increased 6.0%. |
• | Consolidated operating income grew 19.3% to $19.2 million. |
• | Net income per diluted share from continuing operations grew to $0.85. The net tax benefit from continuing operations for the quarter includes tax expense on pretax income, provisional repatriation tax under U.S. tax reform and tax expense related to the remeasurement of U.S. deferred tax assets resulting from the rate change under U.S. tax reform. These expenses were offset primarily by the utilization of net operating losses and the reversal in the U.S. of valuation allowances against the Company's federal and certain state deferred tax assets. |
• | Consolidated sales (comprising IPG and France) increased 12.1% to $330.6 million in U.S. dollars. On a constant currency basis, average daily sales increased 8.7%. |
• | IPG sales increased 10.6% to $194.5 million in U.S. dollars. On a constant currency basis, average daily sales increased 10.4%. |
• | France sales increased 14.4% to $136.1 million in U.S. dollars. On a constant currency basis, average daily sales increased 6.0%. |
• | Consolidated operating income grew 46.0% to $20.0 million. |
• | Net income per diluted share from continuing operations grew to $0.34. |
• | Consolidated sales increased 8.1% to $1,265.4 million in U.S. dollars. On a constant currency basis, average daily sales increased 8.2%. |
• | IPG sales increased 10.6% to $791.8 million in U.S. dollars. On a constant currency basis, average daily sales increased 11.0%. |
• | ETG sales increased 5.0% to $473.6 million in U.S. dollars. On a constant currency basis, average daily sales increased 3.8%. |
• | Consolidated operating income grew 157.4% to $71.3 million. |
• | Net income per diluted share from continuing operations grew to $2.02. The Company recorded tax benefits from continuing operations in the fourth quarter and full year of 2017 of $13.7 million and $5.3 million, respectively. The net tax benefit from continuing operations for the full year includes tax expense on pretax income of approximately $31.6 million, provisional repatriation tax under U.S. tax reform of $5.2 million and tax expense related to the remeasurement of U.S. deferred tax assets resulting from the rate change under U.S. tax reform of $10.3 million. These expenses were offset primarily by the utilization of net operating losses and the reversal in the U.S. of valuation allowances against the Company's federal and certain state deferred tax assets. These offsets totaled approximately $52.4 million. |
• | Consolidated sales (comprising IPG and France) increased 11.7% to $1,265.4 million in U.S. dollars. On a constant currency basis, average daily sales increased 11.4%. |
• | IPG sales increased 10.6% to $791.8 million in U.S. dollars. On a constant currency basis, average daily sales increased 11.0%. |
• | France sales increased 13.5% to $473.6 million in U.S. dollars. On a constant currency basis, average daily sales increased 12.2%. |
• | Consolidated operating income grew 109.2% to $75.1 million. |
• | Net income per diluted share from continuing operations grew to $1.30. |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 330.6 | $ | 295.6 | $ | 1,265.4 | $ | 1,170.3 | |||||||
Cost of sales | 242.1 | 217.3 | 914.0 | 862.4 | |||||||||||
Gross profit | 88.5 | 78.3 | 351.4 | 307.9 | |||||||||||
Gross margin | 26.8 | % | 26.5 | % | 27.8 | % | 26.3 | % | |||||||
Selling, distribution and administrative expenses | 69.3 | 61.9 | 279.8 | 276.3 | |||||||||||
Special charges | — | 0.3 | 0.3 | 3.9 | |||||||||||
Operating income from continuing operations | 19.2 | 16.1 | 71.3 | 27.7 | |||||||||||
Operating margin | 5.8 | % | 5.4 | % | 5.6 | % | 2.4 | % | |||||||
Interest and other (income) expense, net | 0.5 | 0.3 | 0.5 | 1.6 | |||||||||||
Income from continuing operations before income taxes | 18.7 | 15.8 | 70.8 | 26.1 | |||||||||||
(Benefit) provision for income taxes | (13.7 | ) | 4.3 | (5.3 | ) | 9.2 | |||||||||
Net income from continuing operations | 32.4 | 11.5 | 76.1 | 16.9 | |||||||||||
Net income (loss) from discontinued operations | 1.4 | (13.6 | ) | (35.7 | ) | (49.5 | ) | ||||||||
Net income (loss) | $ | 33.8 | $ | (2.1 | ) | $ | 40.4 | $ | (32.6 | ) | |||||
Net income per common share from continuing operations: | |||||||||||||||
Basic | $ | 0.87 | $ | 0.31 | $ | 2.06 | $ | 0.45 | |||||||
Diluted | $ | 0.85 | $ | 0.31 | $ | 2.02 | $ | 0.45 | |||||||
Net income (loss) per common share from discontinued operations: | |||||||||||||||
Basic and diluted | $ | 0.04 | $ | (0.37 | ) | $ | (0.96 | ) | $ | (1.33 | ) | ||||
Weighted average common and common equivalent shares: | |||||||||||||||
Basic | 37.1 | 37.2 | 37.0 | 37.2 | |||||||||||
Diluted | 37.9 | 37.2 | 37.6 | 37.2 |
December 31, | December 31, | ||||||
2017* | 2016* | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 184.5 | $ | 149.7 | |||
Accounts receivable, net | 174.3 | 148.6 | |||||
Inventories | 131.5 | 116.7 | |||||
Prepaid expenses and other current assets | 3.8 | 3.9 | |||||
Current assets of discontinued operations | — | 92.3 | |||||
Total current assets | 494.1 | 511.2 | |||||
Property, plant and equipment, net | 15.1 | 16.4 | |||||
Goodwill, intangibles and other assets | 42.2 | 21.4 | |||||
Long term assets of discontinued operations | — | 17.1 | |||||
Total assets | $ | 551.4 | $ | 566.1 | |||
Current liabilities: | |||||||
Accounts payable and accrued expenses | 260.1 | 230.5 | |||||
Dividend payable | 55.7 | — | |||||
Current liabilities of discontinued operations | — | 94.5 | |||||
Total current liabilities | 315.8 | 325.0 | |||||
Deferred tax liability | 0.1 | 0.3 | |||||
Other liabilities | 23.7 | 24.3 | |||||
Long term liabilities of discontinued operations | — | 2.1 | |||||
Shareholders’ equity | 211.8 | 214.4 | |||||
Total liabilities and shareholders’ equity | $ | 551.4 | $ | 566.1 |
* | Systemax manages its business and reports using a 52-53 week fiscal year that ends at midnight on the Saturday closest to December 31. For clarity of presentation, fiscal years and quarters are described as if they ended on the last day of the respective calendar month. The actual fiscal quarter ended on December 30, 2017 and December 31, 2016. The fourth quarters of 2017 and 2016 included 13 weeks and the twelve months of 2017 and 2016 included 52 weeks. |
Supplemental Non-GAAP Continuing Operations Business Unit Summary Results - Unaudited (In millions) | ||||||||||||||||
Industrial Products Group | ||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||
Sales | $ | 194.5 | $ | 175.8 | 10.6 | % | $ | 791.8 | $ | 715.6 | 10.6 | % | ||||
Average daily sales* | $ | 3.1 | $ | 2.8 | 10.6 | % | $ | 3.1 | $ | 2.8 | 11.1 | % | ||||
Gross profit | $ | 65.3 | $ | 57.6 | 13.4 | % | $ | 273.2 | $ | 233.3 | 17.1 | % | ||||
Gross margin | 33.6 | % | 32.8 | % | 34.5 | % | 32.6 | % | ||||||||
Operating income | $ | 14.7 | $ | 9.8 | 50.0 | % | $ | 70.9 | $ | 35.2 | 101.4 | % | ||||
Operating margin | 7.6 | % | 5.6 | % | 9.0 | % | 4.9 | % | ||||||||
European Technology Products Group (France) | ||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||
Sales | $ | 136.1 | $ | 119.0 | 14.4 | % | $ | 473.6 | $ | 417.2 | 13.5 | % | ||||
Average daily sales* | $ | 2.2 | $ | 1.9 | 14.4 | % | $ | 1.9 | $ | 1.6 | 14.4 | % | ||||
Gross profit | $ | 23.2 | $ | 20.1 | 15.4 | % | $ | 78.2 | $ | 69.7 | 12.2 | % | ||||
Gross margin | 17.0 | % | 16.9 | % | 16.5 | % | 16.7 | % | ||||||||
Operating income | $ | 7.9 | $ | 7.8 | 1.3 | % | $ | 25.1 | $ | 19.6 | 28.1 | % | ||||
Operating margin | 5.8 | % | 6.6 | % | 5.3 | % | 4.7 | % | ||||||||
Corporate & Other | ||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||
Operating expenses | $ | (2.6 | ) | $ | (3.9 | ) | 33.3 | % | $ | (20.9 | ) | $ | (18.9 | ) | (10.6 | )% |
Consolidated (1,2) | ||||||||||||||||
Quarter Ended December 31, | Year Ended December 31, | |||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||
Sales | $ | 330.6 | $ | 294.8 | 12.1 | % | $ | 1,265.4 | $ | 1,132.8 | 11.7 | % | ||||
Gross profit | $ | 88.5 | $ | 77.7 | 13.9 | % | $ | 351.4 | $ | 303.0 | 16.0 | % | ||||
Gross margin | 26.8 | % | 26.4 | % | 27.8 | % | 26.7 | % | ||||||||
Operating income | $ | 20.0 | $ | 13.7 | 46.0 | % | $ | 75.1 | $ | 35.9 | 109.2 | % | ||||
Operating margin | 6.0 | % | 4.6 | % | 5.9 | % | 3.2 | % |
* | Percentages are calculated using sales data in hundreds of thousands. In Q4 2017 IPG and France had 62 and 63 selling days respectively, and for the twelve months of 2017 IPG and France had 253 and 251 selling days, respectively. In Q4 2016, IPG and France had 62 and 63 selling days respectively, and for the twelve months of 2016 IPG and France had 254 and 253 selling days, respectively. |
1 | On December 1, 2015 the Company closed on the sale of certain assets of its North American Technology Group (“NATG”). Pursuant to this transaction, the Company continues to wind down the remaining operations of NATG during 2017. In the GAAP presentation, the retail operations which were discontinued by the Company prior to the transaction, along with allocations of common distribution and back office costs, are presented as part of the Company’s continuing operations for all periods; other NATG operations that were sold (as well as the remaining retail operations that existed at the time of the transaction (and were subsequently discontinued by the Company) are presented as discontinued operations for all periods. The non-GAAP results reflect the entire NATG segment as a discontinued operation for all periods presented as well as adjustments for non-recurring items, intangible amortization, equity compensation and a normalized effective tax rate in recurring operations. On September 2, 2016, the Company closed on the sale of certain assets of its Misco Germany operation which has been reported as part of its European Technology Products Group. Prior and current year results of Germany have been eliminated in the non-GAAP presentation. On December 31, 2016, the Company closed on the sale of its Afligo rebate processing business. Prior and current year results of the rebate processing business have been eliminated in the non-GAAP presentation. The Company believes that the non-GAAP presentation conveys additional more meaningful information to investors. On March 24, 2017, the Company closed on the sale of its European Technology Group businesses, other than its operations in France. Prior and current year results of these divested businesses, along with the associated loss on the sale, have been classified as discontinued operations in both the GAAP and non-GAAP presentation. See accompanying GAAP reconciliation tables. The Company recorded tax benefits from continuing operations in the fourth quarter and full year of 2017 of $13.7 million and $5.3 million, respectively. The net tax benefit from continuing operations for the full year includes tax expense on pretax income of approximately $31.6 million, provisional repatriation tax under U.S. tax reform of $5.2 million and tax expense related to the remeasurement of U.S. deferred tax assets resulting from the rate change under U.S. tax reform of $10.3 million. These expenses were offset primarily by the utilization of net operating losses and the reversal in the U.S. of valuation allowances against the Company's federal and certain state deferred tax assets. These offsets totaled approximately $52.4 million. |
2 | Systemax manages its business and reports using a 52-53 week fiscal year that ends at midnight on the Saturday closest to December 31. For clarity of presentation, fiscal years and quarters are described as if they ended on the last day of the respective calendar month. The actual fiscal quarter ended on December 30, 2017 and December 31, 2016. The fourth quarters of 2017 and 2016 included 13 weeks and the twelve months of 2017 and 2016 included 52 weeks. |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Industrial Products | $ | 194.5 | $ | 175.8 | $ | 791.8 | $ | 715.6 | |||||||
Technology Products - Europe | 136.1 | 119.0 | 473.6 | 451.1 | |||||||||||
Corporate and Other | — | 0.8 | — | 3.6 | |||||||||||
GAAP Net Sales | 330.6 | 295.6 | 1,265.4 | 1,170.3 | |||||||||||
Non-GAAP adjustments: | |||||||||||||||
Technology Products - Europe: | |||||||||||||||
Reverse results of Germany included in GAAP Net Sales | — | — | — | (33.9 | ) | ||||||||||
Total Non-GAAP Adjustments: Technology Products Europe | — | — | — | (33.9 | ) | ||||||||||
Corporate and Other: | |||||||||||||||
Reverse results of Afligo included in GAAP Net Sales | — | (0.8 | ) | — | (3.6 | ) | |||||||||
Total Non-GAAP Adjustments: Corporate and Other | — | (0.8 | ) | — | (3.6 | ) | |||||||||
Industrial Products | 194.5 | 175.8 | 791.8 | 715.6 | |||||||||||
Technology Products- France | 136.1 | 119.0 | 473.6 | 417.2 | |||||||||||
Corporate and Other | — | — | — | — | |||||||||||
Non-GAAP Net Sales | $ | 330.6 | $ | 294.8 | $ | 1,265.4 | $ | 1,132.8 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Industrial Products | $ | 65.3 | $ | 57.6 | $ | 273.2 | $ | 233.3 | |||||||
Technology Products - Europe | 23.2 | 20.5 | 78.2 | 73.0 | |||||||||||
Corporate and Other | — | 0.2 | — | 1.6 | |||||||||||
GAAP Gross Profit | 88.5 | 78.3 | 351.4 | 307.9 | |||||||||||
Non-GAAP adjustments: | |||||||||||||||
Technology Products - Europe: | |||||||||||||||
Reverse results of Germany included in GAAP Gross Profit | — | (0.4 | ) | — | (3.3 | ) | |||||||||
Total Non-GAAP Adjustments: Technology Products Europe | — | (0.4 | ) | — | (3.3 | ) | |||||||||
Corporate and Other: | |||||||||||||||
Reverse results of Afligo included in GAAP Gross Profit | — | (0.2 | ) | — | (1.6 | ) | |||||||||
Total Non-GAAP Adjustments: Corporate and Other | — | (0.2 | ) | — | (1.6 | ) | |||||||||
Industrial Products | 65.3 | 57.6 | 273.2 | 233.3 | |||||||||||
Technology Products- France | 23.2 | 20.1 | 78.2 | 69.7 | |||||||||||
Corporate and Other | — | — | — | — | |||||||||||
Non-GAAP Gross Profit | $ | 88.5 | $ | 77.7 | $ | 351.4 | $ | 303.0 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Industrial Products | $ | 14.4 | $ | 9.5 | $ | 69.6 | $ | 34.3 | |||||||
Technology Products - Europe | 7.7 | 7.8 | 24.5 | 14.5 | |||||||||||
Technology Products - NA | 0.1 | (0.4 | ) | (0.6 | ) | (2.8 | ) | ||||||||
Corporate and Other | (3.0 | ) | (0.8 | ) | (22.2 | ) | (18.3 | ) | |||||||
GAAP operating income | 19.2 | 16.1 | 71.3 | 27.7 | |||||||||||
Non-GAAP adjustments: | |||||||||||||||
Industrial Products: | |||||||||||||||
Intangible asset amortization | 0.2 | 0.2 | 1.0 | 0.5 | |||||||||||
Stock based and other special compensation | 0.1 | 0.1 | 0.3 | 0.4 | |||||||||||
Total Non-GAAP Adjustments – Industrial Products | 0.3 | 0.3 | 1.3 | 0.9 | |||||||||||
Technology Products - Europe: | |||||||||||||||
Reverse results of Germany included in GAAP continuing operations | 0.2 | (0.1 | ) | 0.5 | 4.7 | ||||||||||
Intangible asset amortization | — | 0.1 | 0.1 | 0.4 | |||||||||||
Total Non-GAAP Adjustments: Technology Products Europe | 0.2 | — | 0.6 | 5.1 | |||||||||||
Technology Products - NA: | |||||||||||||||
Reverse results of NATG included in GAAP continuing operations | (0.1 | ) | 0.4 | 0.6 | 2.8 | ||||||||||
Total Non-GAAP Adjustments: Technology Products NA | (0.1 | ) | 0.4 | 0.6 | 2.8 | ||||||||||
Corporate and Other: | |||||||||||||||
Reverse results of Afligo included in GAAP continuing operations | — | 0.5 | — | 2.2 | |||||||||||
Gain on sale of Afligo | — | (3.9 | ) | — | (3.9 | ) | |||||||||
Stock based compensation | 0.4 | 0.3 | 1.3 | 1.1 | |||||||||||
Total Non-GAAP Adjustments: Corporate and Other | 0.4 | (3.1 | ) | 1.3 | (0.6 | ) | |||||||||
Industrial Products | 14.7 | 9.8 | 70.9 | 35.2 | |||||||||||
Technology Products- France | 7.9 | 7.8 | 25.1 | 19.6 | |||||||||||
Technology Products- NA | — | — | — | — | |||||||||||
Corporate and Other | (2.6 | ) | (3.9 | ) | (20.9 | ) | (18.9 | ) | |||||||
Non-GAAP operating income | $ | 20.0 | $ | 13.7 | $ | 75.1 | $ | 35.9 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
GAAP | |||||||||||||||
Net income from continuing operations | $ | 32.4 | $ | 11.5 | $ | 76.1 | $ | 16.9 | |||||||
Provision for income taxes from continuing operations | (13.7 | ) | 4.3 | (5.3 | ) | 9.2 | |||||||||
Income from continuing operations before income taxes | 18.7 | 15.8 | 70.8 | 26.1 | |||||||||||
Interest and other (income) expense from continuing operations, net | 0.5 | 0.3 | 0.5 | 1.6 | |||||||||||
Operating income from continuing operations | 19.2 | 16.1 | 71.3 | 27.7 | |||||||||||
Non-GAAP adjustments: | |||||||||||||||
Reverse results of NATG, Germany and Afligo included in GAAP operating income from continuing operations | 0.1 | 0.8 | 1.1 | 9.7 | |||||||||||
Gain on sale of Afligo | — | (3.9 | ) | — | (3.9 | ) | |||||||||
Recurring adjustments | 0.7 | 0.7 | 2.7 | 2.4 | |||||||||||
Adjusted operating income | 20.0 | 13.7 | 75.1 | 35.9 | |||||||||||
Interest and other expense (income), net | 0.5 | 0.3 | 0.5 | 1.6 | |||||||||||
Reverse results of NATG, Germany and Afligo included in GAAP interest and other expenses (income), net | (0.3 | ) | — | (0.3 | ) | (0.1 | ) | ||||||||
Income before income taxes | 19.8 | 13.4 | 74.9 | 34.4 | |||||||||||
Normalized provision for income taxes | 6.9 | 4.7 | 26.2 | 12.0 | |||||||||||
Normalized effective tax rate (1) | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
Non-GAAP net income from continuing operations | $ | 12.9 | $ | 8.7 | $ | 48.7 | $ | 22.4 | |||||||
GAAP net income per diluted share from continuing operations | $ | 0.85 | $ | 0.31 | $ | 2.02 | $ | 0.45 | |||||||
Non-GAAP net income per diluted share from continuing operations | $ | 0.34 | $ | 0.23 | $ | 1.30 | $ | 0.60 |
(1) | Effective tax rate of 35% used in all periods. |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
GAAP | |||||||||||||||
Net income (loss) from discontinued operations | $ | 1.4 | $ | (13.6 | ) | $ | (35.7 | ) | $ | (49.5 | ) | ||||
Non-GAAP adjustments: | |||||||||||||||
Results of NATG, Afligo and Germany included in GAAP operating income from continuing operations | (0.1 | ) | (0.8 | ) | (1.1 | ) | (9.7 | ) | |||||||
Gain on sale of Afligo | — | 3.9 | — | 3.9 | |||||||||||
Reverse results of NATG, Afligo and Germany included in GAAP interest and other expenses (income), net | (0.3 | ) | — | (0.3 | ) | (0.1 | ) | ||||||||
NATG,Afligo and Germany net tax adjustments | 1.2 | (0.3 | ) | 1.2 | (0.3 | ) | |||||||||
Total Non-GAAP adjustments | 0.8 | 2.8 | (0.2 | ) | (6.2 | ) | |||||||||
Non-GAAP net income (loss) from discontinued operations | $ | 2.2 | $ | (10.8 | ) | $ | (35.9 | ) | $ | (55.7 | ) | ||||
GAAP net income (loss) per diluted share from discontinued operations | $ | 0.04 | $ | (0.37 | ) | $ | (0.96 | ) | $ | (1.33 | ) | ||||
Non-GAAP net income (loss) per diluted share from discontinued operations | $ | 0.06 | $ | (0.29 | ) | $ | (0.95 | ) | $ | (1.50 | ) |