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Published: 2021-10-28 16:03:44 ET
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EX-99.1 2 brhc10030175_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
Contact:   Marissa Vidaurri
   Head of Investor Relations
   (512) 683-5215

NI Reports Record Revenue for a Third Quarter, up 19 Percent YOY
 Strong GAAP and non-GAAP earnings growth; Non-GAAP EPS up 83 percent year over year

Q3 2021 Summary

 •
Record GAAP revenue for a third quarter of $367 million, up 19 percent year over year

•
All-time record for orders, up 30 percent year over year

•
Strong GAAP operating income of $34 million

•
Non-GAAP operating income of $67 million

•
Strong diluted GAAP EPS of $0.20 and diluted non-GAAP EPS of $0.42, up 83 percent year over year

•
Cash and short-term investments of $231 million as of September 30, 2021

AUSTIN, Texas - October 28, 2021 - National Instruments Corporation (Nasdaq: NATI) today announced Q3 2021 revenue of $367 million, up 19 percent year over year, a record for a third quarter.

In Q3 2021 the value of the company's orders was up 30 percent year over year. For Q3 2021, year over year orders were up 28 percent in the Americas,  up 39 percent in APAC, and up 23 percent in EMEA.

Geographic revenue in U.S. dollar terms for Q3 2021 compared with Q3 2020 was up 17 percent in the Americas, up 20 percent in APAC and up 21 percent in EMEA. Historical revenue from these three regions can be found on NI’s investor website at www.ni.com/nati.

In Q3, GAAP gross margin was 72 percent and non-GAAP gross margin was 75 percent. Total GAAP operating expenses were $230 million, up 6 percent year over year. Total non-GAAP operating expenses were $209 million, up 10 percent year over year. GAAP operating income for Q3 was $34 million with non-GAAP operating income of $67 million. GAAP net income for Q3 was $27 million and non-GAAP net income was $55 million, with GAAP diluted EPS of $0.20 and non-GAAP diluted EPS of $0.42. Our GAAP diluted EPS and non-GAAP diluted EPS were near the high-end of our guidance.

Additionally, the company announced the acquisition of NH Research, Inc. (NHR), a leader in high power test and measurement applications such as electric vehicles and batteries. The transaction closed on October 19, 2021. NI also announced that it recently entered into a definitive agreement to purchase the EV Systems business of Rosenheim, Germany-based Heinzinger GmbH, a European leader in high-current and high-voltage power systems and this deal is expected to close in early Q1 2022, pending regulatory approval. These acquisitions will expand NI’s portfolio of electrification (EV), battery, and sustainable energy capabilities to provide customers with critical power level signal sensing, capture and analysis.

“We reported outstanding results in the third quarter as momentum continued across our business for the fourth consecutive quarter. The strategic changes we’ve made over the last several years are clearly paying off. Our focus on secular growth opportunities such as wireless communications and 5G, electrification, and space technology, is leading to sustainable customer demand. With our recent acquisitions, we will further accelerate growth and profitability by broadening our reach to customers in the fast-growing area of electrification," said Eric Starkloff, NI President and CEO. “Shortly after taking on the role of CEO in 2020, I committed to a 3-year financial model through 2023. Today, we expect to meet or exceed those expectations in 2022, a full year ahead of schedule.”

"We delivered record non-GAAP operating income for the first nine months of the year, up 44 percent year-over-year. We will continue to be intentional with investments that we believe will strengthen our competitive advantage to make our business stronger and more resilient,” said Karen Rapp, NI CFO. “While we continue to navigate supply constraints, our demand remains strong. Our focus to deliver software-connected systems and data analytics solutions enable the data insights our customers need for future success. We remain confident in our ability to accelerate growth, profitability, and shareholder value.”

As of September 30, 2021, NI had $231 million in cash and short-term investments. During the third quarter, NI paid $36 million in dividends. The NI Board of Directors approved a quarterly dividend of $0.27 per share payable on November 29, 2021, to stockholders of record on November 8, 2021.
 
NI's non-GAAP results exclude, as applicable, the impact of purchase accounting fair value adjustments, stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction and integration costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, tax reform charges, disposal gains on buildings and related charitable contributions, tax effects related to businesses held for sale, gain on sale of businesses, and capitalization and amortization of internally developed software costs. Reconciliations of the NI's GAAP and non-GAAP results are included as part of this news release.

YTD 2021 Summary

 •
Record GAAP revenue of $1,049 million, up 14 percent year over year

•
Strong GAAP operating income of $68 million

•
Record non-GAAP operating income of $178 million

•
Strong diluted GAAP EPS of $0.37 and diluted non-GAAP EPS of $1.08

Guidance

 •
Q4 GAAP revenue to be in the range of $385 million to $425 million, up 10 percent year over year at the midpoint

•
GAAP diluted EPS to be in the range of $0.17 to $0.31 for Q4, up 20 cents year over year at the midpoint

•
Non-GAAP diluted EPS expected to be in the range of $0.47 to $0.61, up 6 percent year over year at the midpoint

Conference Call Information

Today, NI management will host a call with the investment community to discuss recent transactions in more detail in addition to the company's financial performance in the third quarter. Interested parties can listen to the Q3 2021 earnings conference call at ni.com/call or by dial (855) 212-2361 and enter confirmation code 7456239. Replay information is available by calling (855) 859-2056, confirmation code 7456239, shortly after the call through November 2 at 11:59 p.m. CT or by visiting the company’s website at www.ni.com/call.

Non-GAAP Presentation

To supplement NI’s financial statements presented on a GAAP basis, NI has provided non-GAAP financial information, including non-GAAP revenue or net sales, gross profit, gross margin, operating expenses, operating income, operating margin, provision for income taxes, net income, net margin, diluted EPS and EBITDA. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by NI may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including without limitation those statements about our expectations of accelerating growth and progress to meet long-term financial model, our continued momentum across regions and business units, our opportunities to drive growth, profitability and efficiency in our business, confidence in our software strategy, our ability to successfully integrate acquisitions and execute our growth strategy, our ability to achieve sustainable customer demand through focus on secular growth opportunities, and our guidance and expectations for our Q4 2021 revenue, diluted EPS, backlog and lead times. These statements are subject to a number of risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements.  Risks and uncertainties include without limitation: the effect of the global economic and geopolitical conditions; our international operations and foreign economies; adverse public health matters, including epidemics and pandemics such as the COVID-19 pandemic; our ability to effectively manage our partners and distribution channels; interruptions in our technology systems; cyber-attacks; the dependency of our product revenue on certain industries and the risk of contractions in such industries; fluctuations in demand for our products including orders from our large customers; concentration of credit risk and uncertain conditions in the global financial markets; our ability to compete in markets that are highly competitive; our ability to release successful new products or achieve expected returns; the risk that our manufacturing capacity and a substantial majority of our warehousing and distribution capacity are located outside of the U.S.; our dependence on key suppliers and distributors; component shortages; longer delivery lead times from our suppliers; risk of product liability claims; dependence on our proprietary rights and risks of intellectual property litigation; the continued service of key management and technical personnel; the ability to comply with environmental laws and associated costs; our ability to maintain our website; the risks of bugs, vulnerabilities, errors or design flaws in our products; our ability to achieve the benefits of employee restructuring plans; our exposure to large orders; our ability to effectively manage our operating expenses and meet budget; expense overruns; manufacturing inefficiencies and the level of capacity utilization; fluctuations in our quarterly results due to factors outside of our control; our outstanding debt; seasonal variation in our revenues; our ability to comply with laws and regulations; changes in tax rates and exposure to additional tax liabilities; our ability to make certain acquisitions or dispositions, integrate the companies we acquire or separate the companies we sold and/or enter into strategic relationships; risks related to currency fluctuations; adverse effects of price changes; and changes in accounting principles.  The company directs readers to its Form 10-K for the year ended December 31, 2020, and the other documents it files with the SEC for other risks associated with the company’s future performance. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in our forward-looking statements.

About NI

At NI, we bring together people, ideas and technology so forward thinkers and creative problem solvers can take on humanity’s biggest challenges. From data and automation to research and validation, we provide the tailored, software-connected systems engineers and enterprises need to Engineer Ambitiously™ every day.

National Instruments, NI and ni.com and Engineer Ambitiously are trademarks of National Instruments Corporation. Other product and company names listed are trademarks or trade names of their respective companies. (NATI-F)

National Instruments
Condensed Consolidated Balance Sheets
(in thousands)
 
   
September 30,
2021
(unaudited)
      
December 31,
2020
  
Assets
            
Cash and cash equivalents
  
$
230,697
    
$
260,232
  
Short-term investments
    
—
      
59,923
  
Accounts receivable, net
    
279,196
      
266,869
  
Inventories, net
    
236,733
      
194,012
  
Prepaid expenses and other current assets
    
89,152
      
68,470
  
Total current assets
    
835,778
      
849,506
  
Property and equipment, net
    
248,712
      
254,399
  
Goodwill
    
480,489
      
467,547
  
Intangible assets, net
    
136,938
      
172,719
  
Operating lease right-of-use assets
    
56,644
      
67,674
  
Other long-term assets
    
79,850
      
72,643
  
Total assets
  
$
1,838,411
    
$
1,884,488
  
                 
Liabilities and Stockholders' Equity
                
Accounts payable and accrued expenses
  
$
63,568
    
$
51,124
  
Accrued compensation
    
87,802
      
87,068
  
Deferred revenue - current
    
120,762
      
132,151
  
Operating lease liabilities - current
    
12,360
      
15,801
  
Other taxes payable
    
43,673
      
48,129
  
Debt, current
    
—
      
5,000
  
Other current liabilities
    
25,162
      
42,578
  
Total current liabilities
    
353,327
      
381,851
  
Deferred income taxes
    
26,023
      
25,288
  
Income tax payable - non-current
    
54,195
      
61,623
  
Deferred revenue - non-current
    
32,278
      
36,335
  
Operating lease liabilities - non-current
    
29,206
      
35,854
  
Debt, noncurrent
    
100,000
      
92,036
  
Other long-term liabilities
    
16,910
      
26,630
  
Total liabilities
  
$
611,939
    
$
659,617
  
Stockholders' equity:
                
Common stock
    
1,326
      
1,312
  
Additional paid-in capital
    
1,109,918
      
1,033,284
  
Retained earnings
    
132,404
      
211,101
  
Accumulated other comprehensive loss
    
(17,176
)
    
(20,826
)
Total stockholders' equity
    
1,226,472
      
1,224,871
  
Total liabilities and stockholders' equity
  
$
1,838,411
    
$
1,884,488
  

National Instruments
Condensed Consolidated Statements of Income
(in thousands, except per share data, unaudited)
 
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2021
    
2020
    
2021
    
2020
  
                         
Net sales:
                        
Product
  
$
325,724
    
$
269,651
    
$
927,307
    
$
809,890
  
Software maintenance
    
41,438
      
38,473
      
121,733
      
108,944
  
Total net sales
    
367,162
      
308,124
      
1,049,040
      
918,834
  
                                 
Cost of sales:
                                
Product
    
99,072
      
88,370
      
286,485
      
254,236
  
Software maintenance
    
3,643
      
3,893
      
10,882
      
7,689
  
Total cost of sales
    
102,715
      
92,263
      
297,367
      
261,925
  
                                 
Gross profit
    
264,447
      
215,861
      
751,673
      
656,909
  
     
72.0
%
    
70.1
%
    
71.7
%
    
71.5
%
Operating expenses:
                                
Sales and marketing
    
117,065
      
109,774
      
345,048
      
330,939
  
Research and development
    
82,165
      
70,802
      
243,685
      
206,648
  
General and administrative
    
31,037
      
37,431
      
94,672
      
92,980
  
Total operating expenses
    
230,267
      
218,007
      
683,405
      
630,567
  
Gain on sale of business/assets
    
—
      
—
      
—
      
159,753
  
Operating income
    
34,180
      
(2,146
)
    
68,268
      
186,095
  
Other expense
    
(1,820
)
    
(2,001
)
    
(9,851
)
    
(2,584
)
Income before income taxes
    
32,360
      
(4,147
)
    
58,417
      
183,511
  
Provision for income taxes
    
5,183
      
475
      
9,438
      
44,588
  
Net income
  
$
27,177
    
$
(4,622
)
  
$
48,979
    
$
138,923
  
                                 
Basic earnings per share
  
$
0.20
    
$
(0.04
)
  
$
0.37
    
$
1.06
  
Diluted earnings per share
  
$
0.20
    
$
(0.04
)
  
$
0.37
    
$
1.06
  
                                 
Weighted average shares outstanding -
                                
Basic
    
133,031
      
131,419
      
132,657
      
131,017
  
Diluted
    
133,686
      
131,419
      
133,829
      
131,671
  
                                 
Dividends declared per share
  
$
0.27
    
$
0.26
    
$
0.81
    
$
0.78
  

Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
 
   
Nine Months Ended September 30,
  
   
2021
    
2020
  
       
Cash flow from operating activities:
            
Net income
  
$
48,979
    
$
138,923
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Disposal gains on sale of business/asset
    
—
      
(159,753
)
Depreciation and amortization
    
73,418
      
61,228
  
Stock-based compensation
    
56,064
      
42,556
  
Loss from equity-method investees
    
5,082
      
2,559
  
Deferred income taxes
    
(2,030
)
    
(932
)
Net change in operating assets and liabilities
    
(95,477
)
    
24,203
  
Net cash provided by operating activities
    
86,036
      
108,784
  
                 
Cash flow from investing activities:
                
Acquisitions, net of cash received
    
(19,784
)
    
(334,981
)
Capital expenditures
    
(26,147
)
    
(36,573
)
Proceeds from sale of assets/business, net of cash divested
    
—
      
160,266
  
Capitalization of internally developed software
    
(1,246
)
    
(2,806
)
Additions to other intangibles
    
(2,317
)
    
(1,045
)
Payments to acquire equity-method and other investments
    
(15,753
)
    
(7,502
)
Purchases of short-term investments
    
—
      
(206,330
)
Sales and maturities of short-term investments
    
59,714
      
351,597
  
Net cash used in  investing activities
    
(5,533
)
    
(77,374
)
                 
Cash flow from financing activities:
                
Proceeds from revolving loan facility
    
100,000
      
20,000
  
Proceeds from term loan
    
—
      
70,000
  
Payments on term loan
    
(98,750
)
    
(875
)
Debt issuance costs
    
(1,993
)
    
(1,480
)
Proceeds from issuance of common stock
    
25,438
      
24,971
  
Repurchase of common stock
    
(25,000
)
    
(39,244
)
Dividends paid
    
(107,397
)
    
(102,396
)
Net cash used in financing activities
    
(107,702
)
    
(29,024
)
                 
Impact of changes in exchange rates on cash
    
(2,336
)
    
317
  
                 
Net change in cash and cash equivalents
    
(29,535
)
    
2,703
  
Cash and cash equivalents at beginning of period
    
260,232
      
194,616
  
Cash and cash equivalents at end of period
  
$
230,697
    
$
197,319
  

The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles and fair value adjustments, acquisition-related transaction and integration costs, capitalization and amortization of internally developed software costs, restructuring charges, gains on sale of business/assets, and other that were recorded in the line items indicated below (unaudited) (in thousands)
 
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
                         
   
2021
    
2020
    
2021
    
2020
  
Stock-based compensation
                        
Cost of sales
  
$
1,183
    
$
1,051
    
$
3,487
    
$
2,787
  
Sales and marketing
    
6,332
      
5,184
      
18,949
      
16,826
  
Research and development
    
5,811
      
4,692
      
17,704
      
12,640
  
General and administrative
    
5,530
      
4,293
      
16,050
      
10,301
  
Provision for income taxes
    
(2,798
)
    
(3,854
)
    
(10,036
)
    
(8,260
)
Total
  
$
16,058
    
$
11,366
    
$
46,154
    
$
34,294
  
                                 
Amortization of acquisition-related intangibles and fair value adjustments
                                
Net sales
  
$
421
    
$
1,299
    
$
1,971
    
$
1,299
  
Cost of sales
    
4,194
      
4,198
      
12,691
      
5,579
  
Sales and marketing
    
2,331
      
2,334
      
6,859
      
3,300
  
Research and development
    
—
      
28
      
—
      
84
  
Other expense
    
529
      
121
      
1,476
      
363
  
Provision for income taxes
    
(917
)
    
(1,658
)
    
(2,870
)
    
(1,948
)
Total
  
$
6,558
    
$
6,322
    
$
20,127
    
$
8,677
  
                                 
Acquisition transaction and integration costs, restructuring charges, and other(1)(2)
                                
Cost of sales
  
$
(7
)
  
$
(13
)
  
$
(50
)
  
$
7
  
Sales and marketing
    
584
      
1,158
      
6,071
      
8,771
  
Research and development
    
386
      
374
      
1,422
      
5,190
  
General and administrative
    
850
      
10,210
      
7,388
      
12,595
  
Gain on sale of business/assets
    
—
      
—
      
—
      
(159,753
)
Other expense
    
316
      
270
      
4,322
      
397
  
Provision for income taxes
    
(238
)
    
(712
)
    
(3,701
)
    
33,965
  
Total
  
$
1,891
    
$
11,287
    
$
15,452
    
$
(98,828
)

(1): During the first quarter of 2020, we recognized a gain of approximately $160 million related to the divestiture of AWR, presented within "Gain on sale of business/assets".
(2): During the first quarter of 2021, we recognized a $3.5 million impairment loss related to one of our equity-method investments.

Capitalization and amortization of internally developed software costs
                                
Cost of sales
  
$
5,532
    
$
6,769
    
$
18,633
    
$
20,995
  
Research and development
    
(525
)
    
302
      
(1,246
)
    
(2,794
)
Provision for income taxes
    
(1,192
)
    
(1,485
)
    
(3,792
)
    
(3,822
)
Total
  
$
3,815
    
$
5,586
    
$
13,595
    
$
14,379
  

National Instruments
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, unaudited)
 
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2021
    
2020
    
2021
    
2020
  
                         
Reconciliation of Net sales to Non-GAAP Net sales
                        
Net sales, as reported
  
$
367,162
      
308,124
      
1,049,040
    
$
918,834
  
plus: Impact of acquisition-related fair value adjustments
    
421
      
1,299
      
1,971
      
1,299
  
Non-GAAP net sales
  
$
367,583
      
309,423
      
1,051,011
    
$
920,133
  
                                 
Reconciliation of Gross Profit to Non-GAAP Gross Profit
                  
Gross profit, as reported
  
$
264,447
    
$
215,861
    
$
751,673
    
$
656,909
  
Stock-based compensation
    
1,183
      
1,051
      
3,487
      
2,787
  
Amortization of acquisition-related intangibles and fair value adjustments
    
4,615
      
5,497
      
14,662
      
6,878
  
Acquisition transaction and integration costs, restructuring charges and other
    
(7
)
    
(13
)
    
(50
)
    
7
  
Amortization of internally developed software costs
    
5,532
      
6,769
      
18,633
      
20,995
  
Non-GAAP gross profit
  
$
275,770
    
$
229,165
    
$
788,405
    
$
687,576
  
Non-GAAP gross margin
    
75.0
%
    
74.1
%
    
75.0
%
    
74.7
%
                                 
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
                  
Operating expenses, as reported
  
$
230,267
    
$
218,007
    
$
683,405
    
$
630,567
  
Stock-based compensation
    
(17,673
)
    
(14,169
)
    
(52,703
)
    
(39,767
)
Amortization of acquisition-related intangibles and fair value adjustments
    
(2,331
)
    
(2,362
)
    
(6,859
)
    
(3,384
)
Acquisition transaction and integration costs, restructuring charges and other
    
(1,820
)
    
(11,742
)
    
(14,881
)
    
(26,556
)
Capitalization of internally developed software costs
    
525
      
(302
)
    
1,246
      
2,794
  
Non-GAAP operating expenses
  
$
208,968
    
$
189,432
    
$
610,208
    
$
563,654
  
                                 
Reconciliation of Operating Income to Non-GAAP Operating Income
                  
Operating income, as reported
  
$
34,180
    
$
(2,146
)
  
$
68,268
    
$
186,095
  
Stock-based compensation
    
18,856
      
15,220
      
56,190
      
42,554
  
Amortization of acquisition-related intangibles and fair value adjustments
    
6,946
      
7,859
      
21,521
      
10,262
  
Acquisition transaction and integration costs, restructuring charges and other
    
1,813
      
11,729
      
14,831
      
26,563
  
Net amortization of internally developed software costs
    
5,007
      
7,071
      
17,387
      
18,201
  
Gain on sale of business/assets
    
—
      
—
      
—
      
(159,753
)
Non-GAAP operating income
  
$
66,802
    
$
39,733
    
$
178,197
    
$
123,922
  
Non-GAAP operating margin
    
18.2
%
    
12.8
%
    
17.0
%
    
13.5
%
                                 
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes(1)
                  
Provision for income taxes, as reported
  
$
5,183
    
$
475
    
$
9,438
    
$
44,588
  
Stock-based compensation
    
2,798
      
3,854
      
10,036
      
8,260
  
Amortization of acquisition-related intangibles and fair value adjustments
    
917
      
1,658
      
2,870
      
1,948
  
Acquisition transaction and integration costs, restructuring charges and other
    
238
      
712
      
3,701
      
2,794
  
Net amortization of internally developed software costs
    
1,192
      
1,485
      
3,792
      
3,822
  
Gain on sale of business/assets
    
—
      
—
      
—
      
(36,759
)
Non-GAAP provision for income taxes(1)
  
$
10,328
    
$
8,184
    
$
29,837
    
$
24,653
  

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.
 
Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Net Income, Non-GAAP Diluted EPS, and EBITDA
(in thousands, except per share data, unaudited)
 
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2021
    
2020
    
2021
    
2020
  
                         
Net income, as reported
  
$
27,177
    
$
(4,622
)
  
$
48,979
    
$
138,923
  
Adjustments to reconcile net income to non-GAAP net income:
                                
Stock-based compensation
    
18,856
      
15,220
      
56,190
      
42,554
  
Amortization of acquisition-related intangibles and fair value adjustments
    
7,475
      
7,980
      
22,997
      
10,625
  
Acquisition transaction and integration costs, restructuring charges and other
    
2,129
      
11,999
      
19,153
      
26,960
  
Net amortization of internally developed software costs
    
5,007
      
7,071
      
17,387
      
18,201
  
Gain on sale of business/assets
    
—
      
—
      
—
      
(159,753
)
Income tax effects and adjustments(1)
    
(5,145
)
    
(7,709
)
    
(20,399
)
    
19,935
  
Non-GAAP net income
  
$
55,499
    
$
29,939
    
$
144,307
    
$
97,445
  
Non-GAAP net margin
    
15.1
%
    
9.7
%
    
13.7
%
    
10.6
%
   
Diluted EPS, as reported
  
$
0.20
    
$
(0.04
)
  
$
0.37
    
$
1.06
  
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS
                                
Stock-based compensation
    
0.14
      
0.12
      
0.42
      
0.32
  
Amortization of acquisition-related intangibles and fair value adjustments
    
0.06
      
0.06
      
0.17
      
0.08
  
Acquisition transaction and integration costs, restructuring charges and other
    
0.02
      
0.10
      
0.14
      
0.20
  
Net amortization of internally developed software costs
    
0.04
      
0.05
      
0.13
      
0.14
  
Gain on sale of business/assets
    
—
      
—
      
—
      
(1.21
)
Income tax effects and adjustments(1)
    
(0.04
)
    
(0.06
)
    
(0.15
)
    
0.15
  
Non-GAAP diluted EPS
  
$
0.42
    
$
0.23
    
$
1.08
    
$
0.74
  

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.
 
   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2021
    
2020
    
2021
    
2020
  
Net income, as reported
  
$
27,177
    
$
(4,622
)
  
$
48,979
    
$
138,923
  
Adjustments to reconcile net income to EBITDA:
                                
Interest expense (income), net
    
643
      
560
      
2,296
      
(2,608
)
Tax expense
    
5,183
      
475
      
9,438
      
44,588
  
Depreciation and amortization
    
23,394
      
22,887
      
73,418
      
61,228
  
EBITDA
  
$
56,397
    
$
19,300
    
$
134,131
    
$
242,131
  
Weighted average shares outstanding - Diluted
    
133,686
      
131,419
      
133,829
      
131,671
  
 
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS Guidance
(unaudited)
 
   
Three Months Ended
December 31, 2021
  
             
   
Low
    
High
  
GAAP Diluted EPS, guidance
  
$
0.17
    
$
0.31
  
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
                
Stock-based compensation
    
0.14
      
0.14
  
Amortization of acquisition-related intangibles and fair value adjustments
    
0.08
      
0.08
  
Acquisition transaction and integration costs, restructuring charges, and other
    
0.09
      
0.09
  
Net amortization of software development costs
    
0.05
      
0.05
  
Income tax effects and adjustments(1)
    
(0.06
)
    
(0.06
)
Non-GAAP Diluted EPS, guidance
  
$
0.47
    
$
0.61
  

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.