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Zebra Technologies Corp. (ZBRA) filed Quarterly Report for the period ended 2011-10-01.
Zebra Technologies Corp. has a market cap of $1.97 billion; its shares were traded at around $36.53 with a P/E ratio of 17.2 and P/S ratio of 2.1.
This is the annual revenues and earnings per share of ZBRA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ZBRA.
Highlight of Business Operations:
Net sales for the first nine months of 2011 compared with the same 2010 period increased 11.5% due to a broad-based increase in demand, complemented by a focused business strategy of geographic expansion, new product introductions and expansion of go-to-market channels. New products introduced over the past year helped us meet more of our customers’ needs for improving asset visibility in complex supply chain environments. The increase in sales was largely attributable to increased hardware sales with notable volume increases in high-performance tabletop, desktop, mobile printers and aftermarket parts. Supplies sales increased from greater shipments of labels and thermal ribbons. New products introduced over the past year are helping Zebra to meet more of customers’ asset tagging needs in complex supply chain environments. Printer unit volume increased 12.2% for the first nine months of 2011 compared to levels in 2010.The effective income tax rate for the first nine months of 2011 was 29.7% compared with an income tax rate of 29.8% for the first nine months of 2010. Zebra’s effective tax rate for the first quarter of 2010 included a $2,764,000 reduction of federal taxes related to improperly accounting for the tax impact on intercompany profit generated from intercompany sales in 2009. This adjustment reduced our effective rate for the first nine months of 2010 by approximately 2.6%. Zebra’s effective rate has also decreased in 2011 due to higher profits in lower rate international jurisdictions and reduction in state rates due to state tax law changes.
Some of our distributors are offered monthly rebates based on distribution of products to our program partners. These rebates are recorded as a reduction to revenue. Each month we estimate the amount of rebate earned and establish a reserve for them based on recent trends of actual activity. The actual distributor rebates paid have historically been in line with our estimates.
Under the “Market Approach – Guideline Company Method” we identified 5 publicly traded companies, including Zebra, which we believe have significant relevant similarities. For these 5 companies we calculated the mean ratio of invested capital to revenues and invested capital to EBITDA. Similar to the Income approach discussed above, sales, cost of sales, operating expenses and their respective growth rates were the key assumptions utilized. The market prices of Zebra and other guideline company shares are key assumptions. If these market prices increase, the estimated market value would increase. If the market prices decrease, the estimated market value would decrease.
Zebra’s effective tax rate for the nine months ended October 2, 2010 included a $2,764,000 reduction of federal taxes related to prior years’ adjustments for intercompany profit in ending inventory which reduced our effective rate by 4.2%. Zebra’s effective rate has decreased slightly in 2011 due to higher profits in lower rate international jurisdictions.
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