Presidio, Inc. Reports Fourth Quarter and Year-End Fiscal 2018 Results
Announces Record Quarterly Revenue
Continues Strong Cash Flow Generation
Announces Negotiated Share Repurchase and Quarterly Dividend
Three Months Ended June 30, | Fiscal Year Ended June 30, | ||||||||||||||||||||
(in $ millions) | 2017 | 2018 | % Chg | 2017 | 2018 | % Chg | |||||||||||||||
Total Revenue | $ | 729.3 | $ | 766.3 | 5.1 | % | $ | 2,817.6 | $ | 2,858.0 | 1.4 | % | |||||||||
Total Gross Margin | $ | 152.3 | $ | 151.8 | (0.3 | )% | $ | 585.9 | $ | 585.0 | (0.2 | )% | |||||||||
Gross Margin % | 20.9 | % | 19.8 | % | (1.1 | )% | 20.8 | % | 20.5 | % | (0.3 | )% | |||||||||
Net Income | $ | 10.4 | $ | 14.6 | 40.4 | % | $ | 4.4 | $ | 134.2 | n.m. | ||||||||||
Diluted EPS | $ | 0.11 | $ | 0.15 | 36.4 | % | $ | 0.05 | $ | 1.39 | n.m. | ||||||||||
Adjusted EBITDA1 | $ | 60.4 | $ | 57.9 | (4.1 | )% | $ | 226.1 | $ | 223.7 | (1.1 | )% | |||||||||
Adjusted EBITDA Margin %1 | 8.3 | % | 7.6 | % | (0.7 | )% | 8.0 | % | 7.8 | % | (0.2 | )% | |||||||||
Adjusted Net Income1 | $ | 30.6 | $ | 33.1 | 8.2 | % | $ | 100.4 | $ | 123.0 | 22.5 | % | |||||||||
Pro Forma Adjusted Net Income2 | $ | 31.6 | $ | 33.1 | 4.7 | % | $ | 116.0 | $ | 126.4 | 9.0 | % | |||||||||
Pro Forma Diluted EPS2 | $ | 0.33 | $ | 0.34 | 3.0 | % | $ | 1.22 | $ | 1.31 | 7.4 | % |
“We are pleased to report record quarterly revenue in our fourth quarter of
Cagnazzi continued, “During our fiscal 2018 year, we endeavored to create shareholder value through investing in our organic solutions set, executing on our tuck-in M&A strategy, deleveraging, and, importantly, taking capital structure actions to further bolster our strong free cash flow profile. During the fiscal year, we generated
1 This financial measure is not based on U.S. GAAP. Please refer to the section of this press release entitled "About Non-GAAP and Pro Forma Financial Measures" for additional information and to the attached reconciliation to the most directly comparable U.S. GAAP measure.
2 This non-GAAP financial measure adjusts certain historical data on a pro forma basis following certain transactions. Please refer to the section of this press release entitled "About Non-GAAP and Pro Forma Financial Measures" for additional information and to the section entitled "Non-GAAP Reconciliations" for reconciliation to the most directly comparable U.S. GAAP measure.
Financial Highlights for the Fiscal Fourth Quarter Ended June 30, 2018
• Revenue - Total Revenue was
• Gross Margin - Total Gross Margin, Product gross margin, and Service gross margin were 19.8%, 20.1%, and 18.3%, respectively, as compared to 20.9%, 20.5%, and 23.0% in the prior year. Margin contraction was driven by lower services margins, which resulted from a higher proportion of vendor partner engagements in the period.
• Provision for (benefit from) Income Taxes - The GAAP tax provision rate was 20.7%, which includes a
• Net Income and Diluted EPS - Net Income was
• Adjusted EBITDA - Adjusted EBITDA was
Financial Highlights for the Fiscal Year Ended
• Revenue - Total Revenue was
• Gross Margin - Total Gross Margin, Product gross margin and Service gross margin were 20.5%, 20.6% and 20.1%, respectively, as compared to 20.8%, 20.6% and 21.8%, respectively, in the prior year. Margin contraction was driven by a higher proportion of vendor partner engagements in the period, as well as a reduction in vendor incentive rebates.
• Provision for (benefit from) Income Taxes - The GAAP tax provision rate was (146.2%), which includes a
• Net Income and Diluted EPS - Net Income was
• Adjusted EBITDA - Adjusted EBITDA was
Capital Resources and Other Financial Highlights
• Debt - At year end, cash and cash equivalents were
• Free Cash Flow - Free Cash Flow in the fourth quarter was
•
• Backlog - As of
Dividend and Share Repurchase
The Company announced today that its Board of Directors has declared a quarterly cash dividend program of
Additionally, a Special Independent Committee of the Company’s Board of Directors has approved the repurchase of 10,750,000 of its shares from funds affiliated with
New Revenue Recognition Standard (ASC 606)
At the beginning of fiscal 2019, the Company adopted the
• Total Revenue for fiscal 2018 is adjusted from
• Total Gross Margin for fiscal 2018 is adjusted from
• Net Income for fiscal 2018 is adjusted from
• Adjusted EBITDA for fiscal 2018 is adjusted from
• Pro Forma Adjusted Net Income for fiscal 2018 is adjusted from
• Pro Forma Diluted EPS remains unchanged
Business Outlook
The Company expects to achieve the following results for fiscal 2019:
• Total Revenue:
• Adjusted EBITDA margin: approximately 8% (on an ASC 606 basis);
• Pro Forma Diluted EPS: growth in the low double digit range excluding the accretion from the share repurchase, or growth in the mid to high teens including the impact of the share repurchase;
• Free Cash Flow is expected to be
• Total net leverage is expected to be in the low-3x range at the end of fiscal 2019 including the impact of the dividend and share repurchase, but excluding any strategic acquisitions.
The above forward-looking statements reflect Presidio’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Presidio does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
About Non-GAAP and Pro Forma Financial Measures
Our management regularly monitors certain financial measures to track the progress of our business against internal goals and targets. In addition to financial information presented in accordance with GAAP, management uses Adjusted EBITDA, Adjusted Net Income, Pro Forma Adjusted Net Income, Pro Forma Diluted EPS and Free Cash Flow (collectively, "non-GAAP measures," as further described below) in its evaluation of past performance and prospects for the future. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income or revenue, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. These non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for analysis of our operating results as reported under GAAP and they include adjustments for items that may occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other peer companies over time.
We also adjust certain historical data on a pro forma basis following certain significant transactions. Specifically, we have provided a calculation of Pro Forma Adjusted Net Income to adjust our reported results for the three months and fiscal year ended
• lower after-tax interest expense associated with the redemption and repurchase of notes as part of our IPO as if the IPO occurred on
• lower after-tax interest expense associated with the term loan repricing that occurred in
• lower after-tax interest expense associated with the redemption of the senior notes in connection with the 2018 Refinancing as if the redemption occurred on
The calculation of Pro Forma Adjusted Net Income for the three months and fiscal year ended
• lower after-tax interest expense associated with the redemption of the senior notes in connection with the 2018 Refinancing as if the redemption occurred on
• lower after-tax interest expense associated with the term loan repricing as part of the 2018 Refinancing as if it occurred on
Pro Forma Adjusted Net Income is for illustrative and informational purposes and is not intended to represent or be indicative of what our financial condition or results of operations would have been had the transactions occurred on the dates indicated. Pro Forma Adjusted Net Income should not be considered representative of our future financial condition or results of operations.
Conference Call Information
We have scheduled a conference call for
Those wishing to participate via webcast should access the call through Presidio's Investor Relations website at http://investors.presidio.com. Those wishing to participate via telephone may dial in at 1-877-407-4018 (
About Presidio
Presidio is a leading North American IT solutions provider focused on Digital Infrastructure, Cloud and Security solutions to create agile, secure infrastructure platforms for middle-market customers. We deliver this technology expertise through a full life cycle model of professional, managed, and support services including strategy, consulting, implementation and design. By taking the time to deeply understand how our clients define success, we help them harness technology advances, simplify IT complexity and optimize their environments today while enabling future applications, user experiences, and revenue models. As of
Source:
Contact Information
Investor Relations Contact:
866-232-3762
investors@presidio.com
Media Contact:
Vice President of Corporate Marketing
212-324-4301
doriwhite@presidio.com
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipates,” “expects,” “intends,” “plans” and “believes,” among others, generally identify forward-looking statements. These forward-looking statements include statements relating to: future financial performance, business prospects and strategy, anticipated trends, prospects in the industries in which our businesses operate and other similar matters. These forward looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward looking statements for a variety of reasons, including, among others: risks and uncertainties related to the capital markets, changes in senior management at Presidio, changes in our relationship with our vendor partners, adverse changes in economic conditions, risks resulting from a decreased demand for Presidio’s information technology solutions, risks relating to rapid technological change in Presidio’s industry and risks relating to acquisitions or regulatory changes. Certain of these and other risks and uncertainties are discussed in Presidio’s filings with the
Non-GAAP Reconciliations
The reconciliation of Net Income to Adjusted EBITDA for each of the periods presented is as follows:
(in millions) | Three Months Ended June 30, 2017 |
Three Months Ended June 30, 2018 |
Fiscal Year Ended June 30, 2017 |
Fiscal Year Ended June 30, 2018 |
|||||||||||
Adjusted EBITDA Reconciliation: | |||||||||||||||
Net income | $ | 10.4 | $ | 14.6 | $ | 4.4 | $ | 134.2 | |||||||
Total depreciation and amortization (1) | 21.9 | 22.9 | 87.2 | 89.5 | |||||||||||
Interest and other (income) expense | 13.3 | 10.7 | 101.1 | 60.5 | |||||||||||
Income tax expense (benefit) | 12.2 | 3.8 | 2.6 | (79.7 | ) | ||||||||||
EBITDA | 57.8 | 52.0 | 195.3 | 204.5 | |||||||||||
Adjustments: | |||||||||||||||
Share-based compensation expense | 1.3 | 1.4 | 10.2 | 7.0 | |||||||||||
Purchase accounting adjustments (2) | 0.1 | — | 1.0 | 0.3 | |||||||||||
Transaction costs (3) | 0.3 | 4.5 | 14.8 | 10.8 | |||||||||||
Other costs (4) | 0.9 | — | 4.8 | 1.1 | |||||||||||
Total adjustments | 2.6 | 5.9 | 30.8 | 19.2 | |||||||||||
Adjusted EBITDA | $ | 60.4 | $ | 57.9 | $ | 226.1 | $ | 223.7 | |||||||
Adjusted EBITDA % (5) | 8.3 | % | 7.6 | % | 8.0 | % | 7.8 | % |
(1) Includes depreciation and amortization included within total operating expenses and cost of revenue.
(2) Includes noncash adjustments associated with purchase accounting (including inventory step up, deferred revenue step down and revaluation of deferred rent).
(3) Includes transaction-related expenses related to (i) stay, retention and earnout bonuses associated with acquisitions, (ii) transaction-related advisory and diligence fees, (iii) transaction-related legal, accounting and tax fees (iv) professional fees and expenses associated with debt refinancings and (v) other transaction-related items.
(4) Includes other expenses such as (i) certain non-recurring costs incurred in the development of our new cloud service offerings, (ii) certain unusual legal expenses, (iii) integration of previously acquired managed services platforms into one system, and (iv) severance charges.
(5) Adjusted EBITDA % represents the ratio of Adjusted EBITDA to Total Revenue.
The reconciliation of Net Income to Adjusted Net Income and Pro Forma Adjusted Net Income for each of the periods presented is as follows:
(in millions) | Three Months Ended June 30, 2017 |
Three Months Ended June 30, 2018 |
Fiscal Year Ended June 30, 2017 |
Fiscal Year Ended June 30, 2018 |
|||||||||||
Adjusted Net Income reconciliation: | |||||||||||||||
Net income | $ | 10.4 | $ | 14.6 | $ | 4.4 | $ | 134.2 | |||||||
Adjustments: | |||||||||||||||
Amortization of intangible assets | 18.4 | 18.9 | 73.6 | 74.4 | |||||||||||
Amortization of debt issuance costs | 1.4 | 0.9 | 6.5 | 4.5 | |||||||||||
Loss on extinguishment of debt | 0.8 | — | 28.5 | 14.8 | |||||||||||
Share-based compensation expense | 1.3 | 1.4 | 10.2 | 7.0 | |||||||||||
Purchase accounting adjustments | 0.1 | — | 1.0 | 0.3 | |||||||||||
Transaction costs | 0.3 | 4.5 | 14.8 | 10.8 | |||||||||||
Other costs | 0.9 | — | 4.8 | 1.1 | |||||||||||
Revaluation of federal deferred taxes | — | (1.7 | ) | — | (94.1 | ) | |||||||||
Income tax impact of adjustments (1) | (3.0 | ) | (5.5 | ) | (43.4 | ) | (30.0 | ) | |||||||
Total adjustments | 20.2 | 18.5 | 96.0 | (11.2 | ) | ||||||||||
Adjusted Net Income | 30.6 | 33.1 | 100.4 | 123.0 | |||||||||||
Pro Forma Adjustments: | |||||||||||||||
Interest on notes repaid in IPO | — | — | 14.4 | — | |||||||||||
Interest on 2017 term loan repricing | — | — | 4.7 | — | |||||||||||
Interest on notes redeemed, net savings | 1.6 | — | 6.5 | 3.3 | |||||||||||
Interest on 2018 term loan repricing | — | — | — | 1.7 | |||||||||||
Income tax impact of adjustments | (0.6 | ) | — | (10.0 | ) | (1.6 | ) | ||||||||
Total Pro Forma adjustments | 1.0 | — | 15.6 | 3.4 | |||||||||||
Pro Forma Adjusted Net Income | $ | 31.6 | $ | 33.1 | $ | 116.0 | $ | 126.4 |
(1) Includes an estimated tax impact of the adjustments to Net Income at our average statutory rate to arrive at an appropriate effective tax rate on Adjusted Net Income, except for (i) the adjustment of certain transaction costs that are permanently nondeductible for tax purposes and (ii) the impact of tax-deductible goodwill and intangible assets resulting from certain historical acquisitions and further adjusted for discrete tax items such as: the tax benefit associated with excess stock compensation deductions, and the remeasurement of deferred tax liabilities due to state rate changes.
The reconciliation of Pro Forma weighted-average shares - diluted and Pro Forma Diluted EPS from GAAP weighted-average shares for each of the periods presented is as follows:
Three Months Ended June 30, 2017 |
Three Months Ended June 30, 2018 |
Fiscal Year Ended June 30, 2017 |
Fiscal Year Ended June 30, 2018 |
||||||||||||
Share count: | |||||||||||||||
Weighted-average shares – basic | 90,925,367 | 92,678,947 | 77,517,700 | 91,891,295 | |||||||||||
Dilutive effect of stock options | 5,473,951 | 3,809,223 | 4,344,139 | 4,336,283 | |||||||||||
Weighted-average shares – diluted | 96,399,318 | 96,488,170 | 81,861,839 | 96,227,578 | |||||||||||
Pro Forma shares issued at IPO (1) | — | — | 13,248,165 | — | |||||||||||
Total Pro Forma adjustments | — | — | 13,248,165 | — | |||||||||||
Pro Forma weighted-average shares – diluted | 96,399,318 | 96,488,170 | 95,110,004 | 96,227,578 | |||||||||||
Diluted EPS | $ | 0.11 | $ | 0.15 | $ | 0.05 | $ | 1.39 | |||||||
Pro Forma Diluted EPS | $ | 0.33 | $ | 0.34 | $ | 1.22 | $ | 1.31 |
(1) Includes an adjustment to reflect the shares issued in the
We define Free Cash Flow as our net cash provided by (used in) operating activities adjusted to include: (i) the impact of net borrowings (repayments) on the floor plan facility, (ii) the aggregate net cash impact of our leasing business and (iii) the purchases of property and equipment.
The following table presents the aggregate net cash impact of our leasing business for the three months and fiscal years ended
Three months ended June 30, | Fiscal Year Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2018 | 2017 | 2018 | |||||||||||
Additions of equipment under sales-type and direct financing leases | $ | (23.8 | ) | $ | (27.7 | ) | $ | (100.1 | ) | $ | (108.3 | ) | |||
Proceeds from collection of financing receivables | 1.0 | 1.1 | 9.8 | 4.1 | |||||||||||
Additions to equipment under operating leases | (0.4 | ) | (0.1 | ) | (2.0 | ) | (1.6 | ) | |||||||
Proceeds from disposition of equipment under operating leases | 0.1 | — | 1.5 | 0.7 | |||||||||||
Proceeds from the discounting of financing receivables | 22.1 | 33.1 | 108.6 | 114.6 | |||||||||||
Retirements of discounted financing receivables | (0.6 | ) | (4.3 | ) | (5.0 | ) | (10.0 | ) | |||||||
Aggregate net cash impact of leasing business | $ | (1.6 | ) | $ | 2.1 | $ | 12.8 | $ | (0.5 | ) |
The following table presents a reconciliation of Free Cash Flow from net cash provided by (used in) operating activities for the three and twelve months ended
Three Months Ended June 30, | Fiscal Year Ended June 30, | ||||||||||||||
(in millions) | 2017 | 2018 | 2017 | 2018 | |||||||||||
Net cash provided by (used in) operating activities. | $ | (45.3 | ) | $ | 49.3 | $ | 51.0 | $ | 192.0 | ||||||
Adjustments to reconcile to free cash flow: | |||||||||||||||
Net change in accounts payable — floor plan | 80.3 | 0.8 | 41.6 | (54.3 | ) | ||||||||||
Aggregate net cash impact of leasing business | (1.6 | ) | 2.1 | 12.8 | (0.5 | ) | |||||||||
Purchases of property and equipment | (2.5 | ) | (3.9 | ) | (11.4 | ) | (14.4 | ) | |||||||
Total adjustments | 76.2 | (1.0 | ) | 43.0 | (69.2 | ) | |||||||||
Free cash flow | $ | 30.9 | $ | 48.3 | $ | 94.0 | $ | 122.8 |
PRESIDIO, INC. Consolidated Balance Sheets (in millions, except share data) |
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As of June 30, 2017 |
As of June 30, 2018 |
||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 27.5 | $ | 37.0 | |||
Accounts receivable, net | 576.3 | 613.3 | |||||
Unbilled accounts receivable, net | 159.8 | 156.7 | |||||
Financing receivables, current portion | 84.2 | 88.3 | |||||
Inventory | 27.7 | 27.7 | |||||
Prepaid expenses and other current assets | 63.4 | 80.7 | |||||
Total current assets | 938.9 | 1,003.7 | |||||
Property and equipment, net. | 32.1 | 35.9 | |||||
Financing receivables, less current portion | 113.6 | 116.8 | |||||
Goodwill | 781.5 | 803.7 | |||||
Identifiable intangible assets, net | 751.9 | 700.3 | |||||
Other assets | 32.7 | 33.9 | |||||
Total assets | $ | 2,650.7 | $ | 2,694.3 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Current maturities of long-term debt | $ | — | $ | — | |||
Accounts payable – trade | 350.5 | 457.7 | |||||
Accounts payable – floor plan | 264.9 | 210.6 | |||||
Accrued expenses and other current liabilities | 216.3 | 193.2 | |||||
Discounted financing receivables, current portion | 79.9 | 85.2 | |||||
Total current liabilities | 911.6 | 946.7 | |||||
Long-term debt, net of debt issuance costs | 730.7 | 671.2 | |||||
Discounted financing receivables, less current portion | 104.7 | 108.6 | |||||
Deferred income tax liabilities | 270.4 | 177.7 | |||||
Other liabilities | 30.4 | 34.0 | |||||
Total liabilities | 2,047.8 | 1,938.2 | |||||
Commitments and contingencies (Note 13) | |||||||
Stockholders’ Equity | |||||||
Preferred stock: | |||||||
$0.01 par value; 100 shares authorized and zero shares issued and outstanding at June 30, 2018 and June 30, 2017 | — | — | |||||
Common stock: | |||||||
$0.01 par value; 250,000,000 shares authorized and 92,853,983 shares issued and outstanding at June 30, 2018, 250,000,000 shares authorized and 90,969,919 shares issued and outstanding at June 30, 2017 |
0.9 | 0.9 | |||||
Additional paid-in capital | 625.3 | 644.3 | |||||
Accumulated earnings (deficit) | (23.3 | ) | 110.9 | ||||
Total stockholders’ equity | 602.9 | 756.1 | |||||
Total liabilities and stockholders’ equity | $ | 2,650.7 | $ | 2,694.3 |
PRESIDIO, INC. Consolidated Statements of Operations (in millions, except share and per-share data) |
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Three months ended June 30, | Fiscal Year Ended June 30, | ||||||||||||||
2017 | 2018 | 2017 | 2018 | ||||||||||||
Revenue | |||||||||||||||
Product | $ | 615.4 | $ | 622.4 | $ | 2,373.2 | $ | 2,336.5 | |||||||
Service | 113.9 | 143.9 | 444.4 | 521.5 | |||||||||||
Total revenue | 729.3 | 766.3 | 2,817.6 | 2,858.0 | |||||||||||
Cost of revenue | |||||||||||||||
Product | 489.3 | 497.0 | 1,884.2 | 1,856.3 | |||||||||||
Service | 87.7 | 117.5 | 347.5 | 416.7 | |||||||||||
Total cost of revenue | 577.0 | 614.5 | 2,231.7 | 2,273.0 | |||||||||||
Gross margin | 152.3 | 151.8 | 585.9 | 585.0 | |||||||||||
Operating expenses | |||||||||||||||
Selling expenses | 71.3 | 72.7 | 276.2 | 273.7 | |||||||||||
General and administrative expenses | 24.3 | 24.1 | 105.0 | 101.8 | |||||||||||
Transaction costs | 0.3 | 4.5 | 14.8 | 10.8 | |||||||||||
Depreciation and amortization | 20.5 | 21.4 | 81.8 | 83.7 | |||||||||||
Total operating expenses | 116.4 | 122.7 | 477.8 | 470.0 | |||||||||||
Operating income | 35.9 | 29.1 | 108.1 | 115.0 | |||||||||||
Interest and other (income) expense | |||||||||||||||
Interest expense | 12.6 | 10.7 | 72.5 | 46.0 | |||||||||||
Loss on extinguishment of debt | 0.8 | — | 28.5 | 14.8 | |||||||||||
Other (income) expense, net | (0.1 | ) | — | 0.1 | (0.3 | ) | |||||||||
Total interest and other (income) expense | 13.3 | 10.7 | 101.1 | 60.5 | |||||||||||
Income before income taxes | 22.6 | 18.4 | 7.0 | 54.5 | |||||||||||
Income tax expense (benefit) | 12.2 | 3.8 | 2.6 | (79.7 | ) | ||||||||||
Net income | $ | 10.4 | $ | 14.6 | $ | 4.4 | $ | 134.2 | |||||||
Earnings per share: | |||||||||||||||
Basic EPS | $ | 0.11 | $ | 0.16 | $ | 0.06 | $ | 1.46 | |||||||
Diluted EPS | $ | 0.11 | $ | 0.15 | $ | 0.05 | $ | 1.39 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 90,925,367 | 92,678,947 | 77,517,700 | 91,891,295 | |||||||||||
Diluted | 96,399,318 | 96,488,170 | 81,861,839 | 96,227,578 |
PRESIDIO, INC. Consolidated Statements of Cash Flows (in millions) |
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Three months ended June 30, | Fiscal Year Ended June 30, | ||||||||||||||
2017 | 2018 | 2017 | 2018 | ||||||||||||
Net cash provided by (used in) operating activities | $ | (45.3 | ) | $ | 49.3 | $ | 51.0 | $ | 192.0 | ||||||
Cash flows from investing activities: | |||||||||||||||
Acquisition of businesses, net of cash and cash equivalents acquired | — | (33.3 | ) | — | (42.8 | ) | |||||||||
Proceeds from collection of escrow related to acquisition of business | — | — | 0.6 | 0.2 | |||||||||||
Additions of equipment under sales-type and direct financing leases | (23.8 | ) | (27.7 | ) | (100.1 | ) | (108.3 | ) | |||||||
Proceeds from collection of financing receivables | 1.0 | 1.1 | 9.8 | 4.1 | |||||||||||
Additions to equipment under operating leases | (0.4 | ) | (0.1 | ) | (2.0 | ) | (1.6 | ) | |||||||
Proceeds from disposition of equipment under operating leases | 0.1 | — | 1.5 | 0.7 | |||||||||||
Purchases of property and equipment | (2.5 | ) | (3.9 | ) | (11.4 | ) | (14.4 | ) | |||||||
Net cash used in investing activities | (25.6 | ) | (63.9 | ) | (101.6 | ) | (162.1 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from initial public offering, net of underwriter discounts and commissions | — | — | 247.5 | — | |||||||||||
Payment of initial public offering costs | (6.5 | ) | — | (7.2 | ) | — | |||||||||
Proceeds from issuance of common stock under share-based compensation plans | 0.5 | 2.1 | 1.1 | 8.0 | |||||||||||
Proceeds from the discounting of financing receivables | 22.1 | 33.1 | 108.6 | 114.6 | |||||||||||
Retirements of discounted financing receivables | (0.6 | ) | (4.3 | ) | (5.0 | ) | (10.0 | ) | |||||||
Net repayments on the receivables securitization facility | — | — | (5.0 | ) | — | ||||||||||
Deferred financing costs | — | — | — | (1.2 | ) | ||||||||||
Redemptions and repurchases of senior and subordinated notes | — | — | (230.8 | ) | (135.7 | ) | |||||||||
Borrowings on term loans, net of original issue discount | — | — | — | 138.2 | |||||||||||
Repayments of term loans | (25.2 | ) | (5.0 | ) | (105.7 | ) | (80.0 | ) | |||||||
Net change in accounts payable — floor plan | 80.3 | 0.8 | 41.6 | (54.3 | ) | ||||||||||
Net cash provided by (used in) financing activities | 70.6 | 26.7 | 45.1 | (20.4 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | (0.3 | ) | 12.1 | (5.5 | ) | 9.5 | |||||||||
Cash and cash equivalents: | |||||||||||||||
Beginning of the period | 27.8 | 24.9 | 33.0 | 27.5 | |||||||||||
End of the period | $ | 27.5 | $ | 37.0 | $ | 27.5 | $ | 37.0 | |||||||
Supplemental disclosures of cash flow information | |||||||||||||||
Cash paid during the period for: | |||||||||||||||
Interest | $ | 7.0 | $ | 8.8 | $ | 75.7 | $ | 44.8 | |||||||
Income taxes, net of refunds | $ | 0.7 | $ | (9.6 | ) | $ | 3.3 | $ | 20.3 | ||||||
Reduction of discounted lease assets and liabilities | $ | 24.3 | $ | 22.5 | $ | 89.6 | $ | 102.7 |