Mitel Networks Corp (MITL) 10-Q Quarterly Report Thu May 03 2018

Mitel^® (Nasdaq:MITL) (TSX:MNW), a global leader in business communications, today announced financial results for the first quarter ended March 31, 2018.

Financial Highlights from Continuing Operations


in millions (except per share data)	Q1 2018			Q1 2017 – As Reported						Q1 2017 – Pro Forma¹
in millions (except per share data)	Q1 2018			Historical Currency			Constant Currency ²			Historical Currency			Constant Currency ²
GAAP Revenues	$	313.8		$	223.1		$	237.7		$	310.2		$	324.8
Non-GAAP Revenues³	$	315.3		$	223.1		$	237.7		$	310.8		$	325.4
GAAP Net Income (Loss)	($	21.0	)	($	19.7	)	($	16.0	)	($	45.3	)	($	41.6	)
Non-GAAP Net Income⁴	$	18.5		$	10.9		$	14.6		$	7.4		$	11.1
GAAP EPS – basic	($	0.17	)	($	0.16	)	($	0.13	)	($	0.37	)	($	0.34	)
Non-GAAP EPS⁵	$	0.15		$	0.09		$	0.12			N/A			N/A
Adjusted EBITDA⁶	$	40.7		$	21.0		$	24.7		$	25.3		$	29.0

1	– 2017 pro forma results assume Mitel and ShoreTel had combined on January 1, 2017. The pro forma results are not necessarily indicative of results that actually would have occurred had the combination occurred on such date.

2	– Constant currency is a non-GAAP measure that adjusts Q1-2017 results by using the same foreign currency exchange rates as in Q1-2018. See “Non-GAAP Financial Measurements” below.

3	– Non-GAAP revenues is a non-GAAP measure that excludes the effect of purchase price accounting adjustments. For a reconciliation of non-GAAP revenues to GAAP revenues, please refer to the segmented information in this release. See “Non-GAAP Financial Measurements” below.

4	– Non-GAAP Net Income is a non-GAAP measure defined as Net Income (Loss), adjusted for items as noted in the table included in this press release under “Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss)”. See “Non-GAAP Financial Measurements” below.

– Non-GAAP EPS (earnings per share), or Non-GAAP net income per common share, is a non-GAAP measure defined as Non-GAAP Net Income divided by weighted average number of common shares outstanding, fully diluted. See the table included in this press release under “Reconciliation of Net Income (Loss) to Non-GAAP Net Income (Loss).” See “Non-GAAP Financial Measurements” below.

6	– Adjusted EBITDA is a non-GAAP measure defined as Net Income (Loss), adjusted for items as noted in the table included in this press release under “Reconciliation of Net Income (Loss) to Adjusted EBITDA”. See “Non-GAAP Financial Measurements” below.

The Company reported that On-Site Products and Services revenues were down 8% in constant currency during the March 2018 quarter and are contracting faster than previously expected. Pro forma overall revenues in constant currency declined 3% versus the prior year quarter.

The Company reported Cloud Recurring revenues that were largely in-line with management’s expectations, but noted that Cloud Recurring bookings declined compared to the prior year quarter.

Favorable foreign exchange rates were a significant contributor to Q1 revenue and earnings, but were partially offset by accelerating market decline for On-Site Products and Services combined with slower than expected integration progress in the Company’s combined UCaaS business.

The following information was filed by Mitel Networks Corp (MITL) on Wednesday, May 2, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Mitel Networks Corp's 10-Q Quarterly Report:

Financial - Earnings Highlight
Such declines in the dollar relative to the euro and the Canadian dollar reduce our operating margins and the cash flow available to fund our operations and to service our debt.

Financial - Cash Flow Highlight
prices of our products decline, or if prices for our raw materials increase, or both, our results of operations and cash flows could be materially adversely affected.
Other - Other Highlight
Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties and other factors, many of which are beyond our control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements.
Financial - Earnings Highlight
To achieve the long-term goals of expanding our assets and earnings, including through acquisitions, capital resources will be required.
Other - Other Highlight
An increase in accounts receivable used cash of $5.1 million in the three months ended March 31, 2018 compared to $6.3 million in the same period of 2017.
Financial - Expense
An increase in accounts payable...Read more
Financial - Expense
impact of a weaker dollar...Read more
Revenue - Geography
Based upon the current level...Read more
Financial - Expense
Interest expense in the current...Read more
Other - Other
As at March 31, 2018,...Read more
Other - Other
Oversupply of our products can...Read more
Revenue - Product
Overall, our average pulp sales...Read more
Revenue - Product
Over the last three years,...Read more
Revenue - Product
Average pulp sales realizations increased...Read more
Financial - Expense
As a result, our costs...Read more
Financial - Expense
Selling, general and administrative expenses...Read more
Financial - Debt
our level of indebtedness could...Read more
Financial - Expense
In the first quarter of...Read more
Other - Other
projects and improvements to the...Read more
Revenue - Product
Total revenues for the three...Read more
Financial - Expense
In the first quarter of...Read more
Other - Other
Demand for our products could...Read more
Financial - Expense
Our fiber costs were approximately...Read more
Financial - Expense
We expect a moderate decline...Read more
Financial - Earnings
Higher fiber prices could affect...Read more
Other - Other
failures or security breaches of...Read more
Financial - Income
During the first quarter of...Read more
Other - Other
They often include words such...Read more
Other - Other
Our mills and operations voluntarily...Read more
Other - Other
The forgoing review of important...Read more
Other - Other
Additionally, one of the two...Read more
Other - Other
Incorporates the effect of pulp...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Mitel Networks Corp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: MITL
CIK: 1170534
Form Type: 10-Q Quarterly Report
Accession Number: 0001193125-18-150823
Submitted to the SEC: Thu May 03 2018 4:17:02 PM EST
Accepted by the SEC: Thu May 03 2018
Period: Saturday, March 31, 2018
Industry: Radio And Tv Broadcasting And Communications Equipment