Fourth Quarter 2014 Highlights
- Revenue: $1.424 billion, at the midpoint of our guidance range of $1.375 billion to $1.475 billion (announced October 21, 2014), relatively flat compared to the fourth quarter of 2013
- Revenue from our diversified end market represented 27% of total revenue, flat compared to the fourth quarter of 2013
- Operating margin (non-IFRS): 3.6%, compared to 3.3% for the fourth quarter of 2013
- IFRS EPS: loss of $0.03 per share, including a non-cash goodwill impairment charge of $0.23 per share ($40.8 million) relating to our semiconductor business, compared to earnings of $0.12 per share for the fourth quarter of 2013
- Adjusted EPS (non-IFRS): $0.23 per share (including a $0.02 per share income tax expense resulting from foreign exchange fluctuations), within the range of our guidance of $0.21 to $0.27 per share (announced October 21, 2014), compared to $0.24 per share for the fourth quarter of 2013
- ROIC (non-IFRS): 20.8%, compared to 19.2% for the fourth quarter of 2013
- Free cash flow (non-IFRS): $60.0 million, compared to $23.7 million for the fourth quarter of 2013
- Recorded a non-cash goodwill impairment charge of $40.8 million
- Repurchased and cancelled 2.2 million subordinate voting shares for $23.6 million under our current Normal Course Issuer Bid (NCIB), and launched a $50.0 million pre-funded program share repurchase thereunder
Fiscal Year 2014 Highlights
- Revenue: $5.6 billion, decreased 3% compared to 2013
- Revenue from our diversified end market grew 7% from 2013 to represent 28% of total revenue, up from 25% of total revenue for 2013
- Operating margin (non-IFRS): 3.5%, compared to 3.0% for 2013
- IFRS EPS: $0.60 per share, compared to $0.64 per share for 2013
- Adjusted EPS (non-IFRS): $1.00 per share, compared to $0.83 per share for 2013
- ROIC (non-IFRS): 19.5%, compared to 17.9% for 2013
- Free cash flow (non-IFRS): $177.4 million, compared to $98.1 million for 2013
- Repurchased and cancelled an aggregate of 8.5 million subordinate voting shares for $90.6 million under our current and previous NCIBs
"Celestica delivered solid operating results in the fourth quarter and throughout 2014, despite a business environment that continued to be challenging in our end markets. In 2014, we successfully rationalized our business portfolio and increased productivity across our network achieving year-over-year growth in operating earnings, return on invested capital and free cash flow, while continuing to return value to our shareholders through share repurchases." said Craig Muhlhauser, Celestica's President and Chief Executive Officer.
"While we are clearly disappointed with the impairment of goodwill related to the acquisitions in our semiconductor business, we continue to believe in the potential of the business, make steady progress and win new programs across a number of customers in this sector."
"We remain focused on driving revenue growth, operational excellence and financial improvements across the business and look forward to the opportunities in front of us to deliver differentiated solutions to our customers and to generate value for our shareholders."
Fourth Quarter and Fiscal Year 2014 Summary
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Three months ended December 31 |
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Year ended December 31 | ||||||||||||
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2013 |
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2014 |
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|
2013 |
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2014 |
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Revenue (in millions)............................................................................. |
$ |
1,436.7 |
|
|
$ |
1,424.3 |
|
|
$ |
5,796.1 |
|
|
$ |
5,631.3 |
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|
|
|
|
|
|
|
|
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|
|
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IFRS net earnings (loss) (in millions) (i) .............................................. |
$ |
22.1 |
|
|
$ |
(4.4) |
|
|
$ |
118.0 |
|
|
$ |
108.2 |
|
|
IFRS earnings (loss) per share (i) ....................................................... |
$ |
0.12 |
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|
$ |
(0.03) |
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|
$ |
0.64 |
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|
$ |
0.60 |
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|
|
|
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|
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Adjusted net earnings (non-IFRS) (in millions) (ii) ............................. |
$ |
44.4 |
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|
$ |
40.3 |
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|
$ |
154.5 |
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|
$ |
179.5 |
|
|
Adjusted EPS (non-IFRS) (ii) .................................................................. |
$ |
0.24 |
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|
$ |
0.23 |
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|
$ |
0.83 |
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|
$ |
1.00 |
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|
Non-IFRS return on invested capital (ROIC) (ii) .................................. |
19.2 |
% |
|
20.8 |
% |
|
17.9 |
% |
|
19.5 |
% | ||||
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Non-IFRS operating margin (ii) .............................................................. |
3.3 |
% |
|
3.6 |
% |
|
3.0 |
% |
|
3.5 |
% | ||||
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i. |
International Financial Reporting Standards (IFRS) net loss for the fourth quarter of 2014 and net earnings for fiscal year 2014 included a non-cash goodwill impairment charge of $40.8 million, or $0.23 per share, related to our semiconductor business. Our IFRS net loss for the fourth quarter of 2014 also included an aggregate charge of $0.04 (pre-tax) per share for employee stock-based compensation expense and amortization of intangible assets (excluding computer software). This aggregate charge is within the range we provided on October 21, 2014 of an aggregate charge of between $0.03 and $0.07 per share for these items (see the tables in Schedule 1 attached hereto for per-item charges). Included in the fourth quarter of 2014 adjusted EPS (non-IFRS) of $0.23 was an income tax expense of $0.02 per share resulting from foreign exchange fluctuations in the quarter. |
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ii. |
Non-IFRS measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public companies that use IFRS or other generally accepted accounting principles (GAAP). See "Non-IFRS Supplementary Information" below for information on our rationale for the use of non-IFRS measures, and Schedule 1 for, among other items, non-IFRS measures included in this press release, as well as their definitions, uses, and a reconciliation of non-IFRS to IFRS measures (where a comparable IFRS measure exists). |
