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Apple Inc. (AAPL) SEC Filing 8-K Material Event for the period ending Thursday, April 28, 2022

Apple Inc

CIK: 320193 Ticker: AAPL

Exhibit 99.1


Apple Reports Second Quarter Results

Revenue up 9 percent to new March quarter record

Services revenue reaches new all-time high

CUPERTINO, California — April 28, 2022 — Apple®
today announced financial results for its fiscal 2022 second quarter ended March 26, 2022. The Company posted a March quarter revenue record of $97.3 billion, up 9 percent year over year, and quarterly earnings per diluted share of $1.52.

“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” said Tim Cook, Apple’s CEO. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”

“We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter.”

Apple’s board of directors has declared a cash dividend of $0.23 per share of the Company’s common stock, an increase of 5 percent. The dividend is payable on May 12, 2022 to shareholders of record as of the close of business on May 9, 2022. The board of directors has also authorized an increase of $90 billion to the existing share repurchase program.

Apple will provide live streaming of its Q2 2022 financial results conference call beginning at 2:00 p.m. PT on April 28, 2022 at apple.com/investor/earnings-call. This webcast will be available for replay for approximately two weeks thereafter.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.



This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about the Company’s plans for return of capital, the payment of its quarterly dividend, and its investment plans and environmental initiatives. These statements involve 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 COVID-19 pandemic on the Company’s business, results of operations, financial condition, and stock price; the effect of global and regional economic conditions on the Company’s business, including effects on purchasing decisions by consumers and businesses; the ability of the Company to compete in markets that are highly competitive and subject to rapid technological change; the ability of the Company to manage frequent introductions and transitions of products and services, including delivering to the marketplace, and stimulating customer demand for, new products, services, and technological innovations on a timely basis; the effect that shifts in the mix of products and services and in the geographic, currency, or channel mix, component cost increases, increases in the cost of developing, acquiring and delivering content for the Company’s services, price competition, or the introduction of new products or services, including new products or services with higher cost structures, could have on the Company’s gross margin; the dependency of the Company on the performance of distributors of the Company’s products, including cellular network carriers and other resellers; the risk of write-downs on the value of inventory and other assets and purchase commitment cancellation risk; the continued availability on acceptable terms, or at all, of certain components, services, and new technologies essential to the Company’s business, including components and technologies that may only be available from single or limited sources; the dependency of the Company on manufacturing and logistics services provided by third parties, many of which are located outside of the US and which may affect the quality, quantity, or cost of products manufactured or services rendered to the Company; the effect of product and services design and manufacturing defects on the Company’s financial performance and reputation; failure to obtain or create digital content that appeals to the Company’s customers, or to make such content available on commercially reasonable terms; the dependency of the Company on third-party intellectual property, which may not be available to the Company on commercially reasonable terms or at all; the dependency of the Company on support from third-party software developers to develop and maintain software applications and services for the Company’s products; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations worldwide, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business; the intense media, political, and regulatory scrutiny, which exposes the Company to increasing regulation, government investigations, legal actions, and penalties; the ability of the Company to manage risks associated with the Company’s retail stores; the ability of the Company to manage risks associated with the Company’s investments in new business strategies and acquisitions; the impact on the Company’s business and reputation from information technology system failures, network disruptions, or losses or unauthorized access to, or release of, confidential information; the ability of the Company to comply with laws and regulations regarding data protection; the continued service and availability of highly skilled employees, including key personnel; political events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents, and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s products; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of the Company’s investment portfolio; and changes in tax rates, the adoption of new US or international tax legislation, and exposure to additional tax liabilities. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142

Investor Relations Contact:
Tejas Gala
Apple
tgala@apple.com
(669) 227-2402

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or call Apple’s Media Helpline at (408) 974-2042.

© 2022 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.



Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months EndedSix Months Ended
March 26,
2022
March 27,
2021
March 26,
2022
March 27,
2021
Net sales:
   Products$77,457 $72,683 $181,886 $168,361 
   Services19,821 16,901 39,337 32,662 
Total net sales (1)
97,278 89,584 221,223 201,023 
Cost of sales:
   Products49,290 46,447 113,599 108,577 
   Services5,429 5,058 10,822 10,039 
Total cost of sales54,719 51,505 124,421 118,616 
Gross margin
42,559 38,079 96,802 82,407 
Operating expenses:
Research and development
6,387 5,262 12,693 10,425 
Selling, general and administrative
6,193 5,314 12,642 10,945 
Total operating expenses
12,580 10,576 25,335 21,370 
Operating income
29,979 27,503 71,467 61,037 
Other income/(expense), net
160 508 (87)553 
Income before provision for income taxes
30,139 28,011 71,380 61,590 
Provision for income taxes
5,129 4,381 11,740 9,205 
Net income
$25,010 $23,630 $59,640 $52,385 
Earnings per share:
Basic
$1.54 $1.41 $3.65 $3.11 
Diluted
$1.52 $1.40 $3.62 $3.08 
Shares used in computing earnings per share:
Basic
16,278,802 16,753,476 16,335,263 16,844,298 
Diluted
16,403,316 16,929,157 16,461,304 17,021,423 
(1) Net sales by reportable segment:
Americas
$40,882 $34,306 $92,378 $80,616 
Europe
23,287 22,264 53,036 49,570 
Greater China
18,343 17,728 44,126 39,041 
Japan
7,724 7,742 14,831 16,027 
Rest of Asia Pacific
7,042 7,544 16,852 15,769 
Total net sales
$97,278 $89,584 $221,223 $201,023 
(1) Net sales by category:
iPhone
$50,570 $47,938 $122,198 $113,535 
Mac
10,435 9,102 21,287 17,777 
iPad
7,646 7,807 14,894 16,242 
Wearables, Home and Accessories
8,806 7,836 23,507 20,807 
Services
19,821 16,901 39,337 32,662 
Total net sales
$97,278 $89,584 $221,223 $201,023 



Apple Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except number of shares which are reflected in thousands and par value)

March 26,
2022
September 25,
2021
ASSETS:
Current assets:
Cash and cash equivalents
$28,098 $34,940 
Marketable securities
23,413 27,699 
Accounts receivable, net
20,815 26,278 
Inventories
5,460 6,580 
Vendor non-trade receivables
24,585 25,228 
Other current assets
15,809 14,111 
Total current assets
118,180 134,836 
Non-current assets:
Marketable securities
141,219 127,877 
Property, plant and equipment, net
39,304 39,440 
Other non-current assets
51,959 48,849 
Total non-current assets
232,482 216,166 
Total assets
$350,662 $351,002 
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable
$52,682 $54,763 
Other current liabilities
50,248 47,493 
Deferred revenue
7,920 7,612 
Commercial paper
6,999 6,000 
Term debt
9,659 9,613 
Total current liabilities
127,508 125,481 
Non-current liabilities:
Term debt
103,323 109,106 
Other non-current liabilities
52,432 53,325 
Total non-current liabilities
155,755 162,431 
Total liabilities
283,263 287,912 
Commitments and contingencies
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,207,568 and 16,426,786 shares issued and outstanding, respectively
61,181 57,365 
Retained earnings
12,712 5,562 
Accumulated other comprehensive income/(loss)
(6,494)163 
Total shareholders’ equity
67,399 63,090 
Total liabilities and shareholders’ equity
$350,662 $351,002 



Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)

Six Months Ended
March 26,
2022
March 27,
2021
Cash, cash equivalents and restricted cash, beginning balances
$35,929 $39,789 
Operating activities:
Net income59,640 52,385 
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization5,434 5,463 
Share-based compensation expense4,517 4,001 
Deferred income tax expense/(benefit)1,088 (207)
Other(20)(474)
Changes in operating assets and liabilities:
Accounts receivable, net5,542 (2,347)
Inventories1,065 (1,226)
Vendor non-trade receivables643 6,792 
Other current and non-current assets(3,542)(4,333)
Accounts payable(1,750)(1,997)
Deferred revenue627 1,642 
Other current and non-current liabilities1,888 3,045 
Cash generated by operating activities75,132 62,744 
Investing activities:
Purchases of marketable securities(61,987)(74,424)
Proceeds from maturities of marketable securities18,000 39,605 
Proceeds from sales of marketable securities24,668 21,645 
Payments for acquisition of property, plant and equipment(5,317)(5,769)
Payments made in connection with business acquisitions, net(167)(9)
Other(568)— 
Cash used in investing activities(25,371)(18,952)
Financing activities:
Payments for taxes related to net share settlement of equity awards(3,218)(3,160)
Payments for dividends and dividend equivalents(7,327)(7,060)
Repurchases of common stock(43,109)(43,323)
Proceeds from issuance of term debt, net— 13,923 
Repayments of term debt(3,750)(4,500)
Proceeds from commercial paper, net999 22 
Other(105)523 
Cash used in financing activities(56,510)(43,575)
Increase/(Decrease) in cash, cash equivalents and restricted cash(6,749)217 
Cash, cash equivalents and restricted cash, ending balances$29,180 $40,006 
Supplemental cash flow disclosure:
Cash paid for income taxes, net$9,301 $10,276 
Cash paid for interest$1,406 $1,327 

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Ticker: AAPL
CIK: 320193
Form Type: 8-K Corporate News
Accession Number: 0000320193-22-000058
Submitted to the SEC: Thu Apr 28 2022 4:32:12 PM EST
Accepted by the SEC: Thu Apr 28 2022
Period: Thursday, April 28, 2022
Industry: Electronic Computers
Events:
  1. Earnings Release
  2. Financial Exhibit

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