Valmont reports second quarter 2022 results and raises full-year guidance
Omaha, neb.--(business wire)--valmont industries, inc. (nyse: vmi), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the second quarter ended june 25, 2022. second quarter 2022 highlights (all metrics compared to second quarter 2021 unless otherwise noted) record net sales of $1.1 billion increased 26.9% operating income increased to $118.7 million, or 10.5% of net sales ($122.9 million or 10.8% adjusted1) compared to $82.6 million or 9.2% of net sales ($90.9 million or 10.2% adjusted1) record diluted earnings per share (eps) of $3.53 ($3.70 adjusted1) compared to $2.89 ($3.06 adjusted1) benefited from strong market demand across the portfolio, leading to a record backlog of $2.0 billion, an increase of 24.7% since the end of fiscal 2021, and an increase of 13.4% since the end of first quarter 2022 returned $21.5 million to shareholders through dividends and share repurchases incurred an effective tax rate of 27.6% compared to 19.0% in 2021, primarily due to the geographic mix of earnings and an incremental u.k. tax benefit in 2021 that did not repeat in 2022 commenced production at the newly-built spun concrete pole manufacturing facility in bristol, indiana, that will be accompanied by a 500-kilowatt solar array expected to fully offset the site’s energy consumption acquired a majority interest in concealfab, a leader in 5g infrastructure and passive intermodulation (pim) mitigation solutions for the telecommunications market key financial metrics second quarter 2022 gaap adjusted1 (000's except per share amounts) 06/25/2022 2q 2022 06/26/2021 2q 2021 vs. 2q 2021 06/25/2022 2q 2022 06/26/2021 2q 2021 vs. 2q 2021 net sales $ 1,135,532 $ 894,629 26.9% $ 1,135,532 $ 894,629 26.9% operating income 118,719 82,625 43.7% 122,859 90,850 35.2% operating income as a % of net sales 10.5 % 9.2 % 10.8 % 10.2 % net earnings 76,108 62,110 22.5% 79,682 65,752 21.2% diluted earnings per share $ 3.53 $ 2.89 22.1% $ 3.70 $ 3.06 20.9% average shares outstanding 21,541 21,469 21,541 21,469 ytd 2022 gaap adjusted1 (000's except per share amounts) 06/25/2022 fy 2022 06/26/2021 fy 2021 vs. fy 2021 06/25/2022 fy 2022 06/26/2021 fy 2021 vs. fy 2021 net sales $ 2,116,352 $ 1,669,515 26.8% $ 2,116,352 $ 1,669,515 26.8% operating income 213,561 159,836 33.6% 221,844 168,061 32.0% operating income as a % of net sales 10.1 % 9.6 % 10.5 % 10.1 % net earnings 138,419 117,124 18.2% 145,570 120,776 20.5% diluted earnings per share $ 6.43 $ 5.46 17.8% $ 6.77 $ 5.63 20.2% average shares outstanding 21,516 21,449 21,516 21,449 "we delivered record quarterly revenue, an increase of 27% year-over-year, and record adjusted earnings per share that increased 21%," said stephen g. kaniewski, president and chief executive officer. "operating margin improvement was driven by our ability to successfully execute on pricing strategies, higher volumes, and better fixed-cost leverage. we continue to prioritize actions to better serve our customers by leveraging our global manufacturing footprint, strategically expanding capacity in key growth markets, and implementing sourcing strategies to help mitigate continuing supply chain volatility. we are seeing strong demand for our products and solutions across global infrastructure and agriculture markets and our valmont teams around the world are doing an excellent job of delivering value to our customers every day. we are executing consistently on our strategy of creating sustainable growth across our businesses and long-term value for our shareholders." second quarter 2022 segment review infrastructure (67.0% of net sales) products and solutions to serve the infrastructure markets of utility, renewable energy, lighting, transportation and telecommunications, and coatings services to preserve and protect metal products sales of $765.0 million grew 23.9% year-over-year with double-digit sales growth across all product lines, net of a 2.5% unfavorable foreign currency translation impact. higher sales were driven by favorable pricing globally, primarily in the transmission, distribution and substation (td&s), lighting and transportation (l&t), and telecommunications product lines, and higher volumes, notably in the renewable energy, telecommunications and td&s product lines. operating income improved to $84.6 million or 11.1% of net sales compared to $61.6 million or 10.0% ($67.7 million or 11.0% adjusted1) in 2021, driven by favorable pricing and improved fixed-cost leverage, including sg&a. on june 1, 2022, valmont acquired a majority interest in concealfab, advancing the company's growth strategy to deliver industry-leading 5g infrastructure solutions for the telecommunications market. agriculture (33.0% of net sales) center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture sales of $377.8 million increased 34.0% year-over-year, led by higher average selling prices of irrigation equipment globally and higher volumes, notably in north america and brazil. in brazil, revenues grew more than $40.0 million year-over-year, demonstrating robust market demand for irrigation equipment and ag solar products. operating income was $58.0 million, or 15.5% of net sales ($62.2 million or 16.6% adjusted1) compared to $42.0 million or 15.0% of net sales ($42.9 million or 15.3% adjusted1) in 2021. the benefit of higher average selling prices and additional volume leverage was partially offset by higher sg&a, including incremental r&d expense for technology investments. realignment of reporting segments on april 6, 2022, the company announced that it had realigned its reporting segment structure beginning with its first quarter 2022 financial results. the new reporting segments are infrastructure (includes the previous segments of utility support structures, engineered support structures and coatings) and agriculture (a renaming of the previous irrigation segment). a recast of comparable prior-year segment financial information for 2020 and 2021 affected by the change is available in a summary presentation on the investors page at valmont.com. the company's historical gaap balance sheet, income statement and cash flows are not affected. balance sheet, liquidity and capital allocation the company generated year-to-date operating cash flows of $68.0 million through strong earnings and managing working capital to mitigate supply chain volatility while supporting strong revenue growth. at the end of the second quarter, cash and cash equivalents were $154.6 million. valmont purchased approximately $10.0 million of company stock in the second quarter and approximately $112.0 million remains on the current authorization with no expiration. increasing full year 2022 financial outlook and updating key assumptions the company is increasing its 2022 full-year net sales and diluted earnings per share outlook from the previous indications that were communicated last quarter, and is providing updated key assumptions for the year. 2022 full year financial outlook previous outlook revised outlook net sales growth (vs. py) 11% to 17% 20% to 21% gaap diluted eps1 $12.30 to $12.80 $12.90 to $13.30 adjusted diluted eps1 $13.00 to $13.50 $13.60 to $14.00 tax rate ~ 26.5% ~ 27.5% fx translation impact on net sales 0.0% ~ (2.0%) revised net sales growth is primarily due to favorable pricing to offset continued broad-based inflation now expecting a full-year tax rate of ~27.5% due to the geographic mix of earnings now expecting a ~2.0% unfavorable foreign currency translation impact on net sales vs. prior year capital expenditures continue to be in the range of $110.0 - $120.0 million to support strategic growth and industry 4.0 advanced manufacturing initiatives kaniewski continued, "we've had a very strong first half of the year and are increasing our full-year outlook based on this performance and several other positive factors, including our record backlog of $2.0 billion, which reflects continued strong, global market drivers across our businesses and provides significant momentum as we look ahead to the balance of 2022 and into 2023. additionally, broad-based market strength for infrastructure products and solutions that help deliver safety, security and reliability while also participating in the change to renewable generation sources across our markets, are driving robust demand globally. favorable agricultural market fundamentals and continued heightened concerns over food security have led to increasing activity levels across global markets. while inflation and supply chain volatility continue, we remain focused on what we can control: leveraging the strength of our organization to deliver innovative products and solutions to our customers, maintaining cost discipline, advancing operational excellence, and executing on our pricing strategies. additionally, our balance sheet is strong and gives us flexibility to execute our long-term strategic plan. through our diversified business portfolio, organizational emphasis on esg principles and return on invested capital focus, we are well-positioned to drive sustainable, profitable growth and deliver long-term value to our shareholders." a live audio discussion with stephen g. kaniewski, president and chief executive officer, and avner m. applbaum, executive vice president and chief financial officer, will be accessible by telephone on thursday, july 21, 2022 at 8:00 a.m. cdt by dialing 1-844-200-6205 or 1-646-904-5544 using access code 849925, or via webcast by pointing browsers to this link: valmont industries 2q 2022 earnings conference call. a slide presentation will simultaneously be available for download on the investors page of valmont.com. a replay of the event can be accessed two hours after the call at the above link or by telephone at 1-866-813-9403 or 1-929-458-6194. please use access code 917263. the replay will be available through 5:00 p.m. cdt on july 28, 2022. about valmont industries, inc. for over 75 years, valmont® has been a global leader in creating vital infrastructure and advancing agricultural productivity. today, we remain committed to doing more with less by innovating through technology. learn more about how we’re conserving resources. improving life.® at valmont.com. concerning forward-looking statements this release contains forward-looking statements, within the meaning of the private securities litigation reform act of 1995. these forward-looking statements are based on assumptions that management has made in light of experience in the industries in which valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. as you read and consider this release, you should understand that these statements are not guarantees of performance or results. they involve risks, uncertainties (some of which are beyond valmont’s control) and assumptions. although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. these factors include among other things, the continuing and developing effects of covid-19 including the effects of the outbreak on the general economy and the specific economic effects on the company’s business and that of its customers and suppliers, risk factors described from time to time in valmont’s reports to the securities and exchange commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes of domestic and foreign governments. the company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the company does not undertake to update any forward-looking statement. 1 please see reg g reconciliation to gaap measures at end of document valmont industries, inc. and subsidiaries condensed consolidated statements of earnings (dollars in thousands, except per share amounts) (unaudited) second quarter year-to-date 13 weeks ended 26 weeks ended 25-jun-22 26-jun-21 25-jun-22 26-jun-21 net sales $ 1,135,532 $ 894,629 $ 2,116,352 $ 1,669,515 cost of sales 842,931 664,982 1,574,565 1,235,314 gross profit 292,601 229,647 541,787 434,201 selling, general and administrative expenses 173,882 147,022 328,226 274,365 operating income 118,719 82,625 213,561 159,836 other income (expense) interest expense (11,386 ) (10,436 ) (22,649 ) (20,435 ) interest income 285 186 512 497 gain (loss) on investments (unrealized) (2,342 ) 1,177 (3,405 ) 1,068 other 2,073 4,204 5,715 7,653 other income (expense), net (11,370 ) (4,869 ) (19,827 ) (11,217 ) earnings before income taxes 107,349 77,756 193,734 148,619 income tax expense 29,587 14,740 52,708 30,242 equity in loss of nonconsolidated subsidiaries (555 ) (359 ) (913 ) (719 ) net earnings 77,207 62,657 140,113 117,658 less: earnings attributable to non-controlling interests (1,099 ) (547 ) (1,694 ) (534 ) net earnings attributable to valmont industries, inc. $ 76,108 $ 62,110 $ 138,419 $ 117,124 average shares outstanding (000's) - basic 21,313 21,193 21,296 21,186 earnings per share - basic $ 3.57 $ 2.93 $ 6.50 $ 5.53 average shares outstanding (000's) - diluted 21,541 21,469 21,516 21,449 earnings per share - diluted $ 3.53 $ 2.89 $ 6.43 $ 5.46 cash dividends per share $ 0.55 $ 0.50 $ 1.10 $ 1.00 valmont industries, inc. and subsidiaries summary operating results (dollars in thousands) (unaudited) second quarter year-to-date 13 weeks ended 26 weeks ended 25-jun-22 26-jun-21 25-jun-22 26-jun-21 net sales infrastructure $ 764,950 $ 617,604 $ 1,445,676 $ 1,167,250 agriculture 377,765 281,965 684,345 511,629 total 1,142,715 899,569 2,130,021 1,678,879 less: intersegment sales (7,183 ) (4,940 ) (13,669 ) (9,364 ) total $ 1,135,532 $ 894,629 $ 2,116,352 $ 1,669,515 operating income infrastructure $ 84,643 $ 61,550 $ 162,150 $ 115,999 agriculture 58,046 41,984 95,521 80,732 corporate (23,970 ) (20,909 ) (44,110 ) (36,895 ) total $ 118,719 $ 82,625 $ 213,561 $ 159,836 valmont has aggregated its business segments into two global reportable segments as follows. infrastructure: this segment consists of the manufacture and distribution of products and solutions to serve infrastructure markets of utility, renewable energy, lighting, transportation and telecommunications, and coatings services to preserve and protect metal products. agriculture: this segment consists of the manufacture of center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture. valmont industries, inc. and subsidiaries summary operating results (dollars in thousands) (unaudited) thirteen weeks ended june 25, 2022 infrastructure agriculture intersegment sales consolidated geographical market: north america $ 559,864 $ 203,488 $ (6,716 ) $ 756,636 international 205,086 174,277 (467 ) 378,896 total $ 764,950 $ 377,765 $ (7,183 ) $ 1,135,532 product line: transmission, distribution and substation $ 295,835 $ — $ — $ 295,835 lighting and transportation 246,652 — — 246,652 coatings 90,321 — (4,200 ) 86,121 telecommunications 78,539 — — 78,539 renewable energy 53,603 — — 53,603 irrigation equipment and parts, excluding technology — 347,585 (2,983 ) 344,602 technology products and services — 30,180 — 30,180 total $ 764,950 $ 377,765 $ (7,183 ) $ 1,135,532 thirteen weeks ended june 26, 2021 infrastructure agriculture intersegment sales consolidated geographical market: north america $ 421,168 $ 156,037 $ (4,940 ) $ 572,265 international 196,436 125,928 — 322,364 total $ 617,604 $ 281,965 $ (4,940 ) $ 894,629 product line: transmission, distribution and substation $ 220,458 $ — $ — $ 220,458 lighting and transportation 215,247 — — 215,247 coatings 80,346 — (2,796 ) 77,550 telecommunications 54,102 — — 54,102 renewable energy 47,451 — — 47,451 irrigation equipment and parts, excluding technology — 253,450 (2,144 ) 251,306 technology products and services — 28,515 — 28,515 total $ 617,604 $ 281,965 $ (4,940 ) $ 894,629 twenty-six weeks ended june 25, 2022 infrastructure agriculture intersegment sales consolidated geographical market: north america $ 1,065,844 $ 385,743 $ (13,202 ) $ 1,438,385 international 379,832 298,602 (467 ) 677,967 total $ 1,445,676 $ 684,345 $ (13,669 ) $ 2,116,352 product line: transmission, distribution and substation $ 577,435 $ — $ — $ 577,435 lighting and transportation 459,419 — — 459,419 coatings 172,297 — (7,301 ) 164,996 telecommunications 139,935 — — 139,935 renewable energy 96,590 — — 96,590 irrigation equipment and parts, excluding technology — 625,619 (6,368 ) 619,251 technology products and services — 58,726 — 58,726 total $ 1,445,676 $ 684,345 $ (13,669 ) $ 2,116,352 twenty-six weeks ended june 26, 2021 infrastructure agriculture intersegment sales consolidated geographical market: north america $ 806,902 $ 278,788 $ (9,364 ) $ 1,076,326 international 360,348 232,841 — 593,189 total $ 1,167,250 $ 511,629 $ (9,364 ) $ 1,669,515 product line: transmission, distribution and substation $ 428,902 $ — $ — $ 428,902 lighting and transportation 391,763 — — 391,763 coatings 155,139 — (5,997 ) 149,142 telecommunications 99,742 — — 99,742 renewable energy 91,704 — — 91,704 irrigation equipment and parts, excluding technology — 460,708 (3,367 ) 457,341 technology products and services — 50,921 — 50,921 total $ 1,167,250 $ 511,629 $ (9,364 ) $ 1,669,515 valmont industries, inc. and subsidiaries condensed consolidated balance sheets (dollars in thousands) (unaudited) 25-jun-22 25-dec-21 assets current assets: cash and cash equivalents $ 154,579 $ 177,232 accounts receivable, net 627,876 571,593 inventories 786,600 728,834 contract asset - costs and profits in excess of billings 200,522 142,643 prepaid expenses and other assets 87,070 83,646 refundable income taxes — 8,815 total current assets 1,856,647 1,712,763 property, plant and equipment, net 607,563 598,605 goodwill and other assets 1,210,542 1,135,881 $ 3,674,752 $ 3,447,249 liabilities and shareholders' equity current liabilities: current installments of long-term debt $ 3,018 $ 4,884 notes payable to banks 4,428 13,439 accounts payable 388,498 347,841 accrued expenses 237,222 253,330 contract liability - billings in excess of costs and earnings 175,814 135,746 income taxes payable 10,036 — dividend payable 11,743 10,616 total current liabilities 830,759 765,856 long-term debt, excluding current installments 995,647 947,072 operating lease liabilities 154,799 147,759 other long-term liabilities 140,397 172,965 shareholders' equity 1,553,150 1,413,597 $ 3,674,752 $ 3,447,249 valmont industries, inc. and subsidiaries condensed consolidated statements of cash flows (dollars in thousands) (unaudited) 26 weeks ended 25-jun-22 26-jun-21 cash flows from operating activities net earnings $ 140,113 $ 117,658 depreciation and amortization 48,012 44,063 contribution to defined benefit pension plan (17,155 ) (970 ) change in working capital (115,170 ) (140,014 ) other 12,219 49,448 net cash flows from operating activities 68,019 70,185 cash flows from investing activities purchase of property, plant, and equipment (49,676 ) (48,824 ) acquisitions (39,297 ) (312,500 ) other 1,162 (74 ) net cash flows from investing activities (87,811 ) (361,398 ) cash flows from financing activities proceeds from long-term borrowings 201,462 149,342 principal payments on long-term borrowings (156,973 ) (15,421 ) net (payments)/proceeds on short-term borrowings (9,155 ) (5,049 ) purchase of treasury shares (9,776 ) (21,600 ) purchase of noncontrolling interest (4,292 ) — dividends paid (22,337 ) (20,181 ) other 1,641 2,969 net cash flows from financing activities 570 90,060 effect of exchange rates on cash and cash equivalents (3,431 ) (288 ) net change in cash and cash equivalents (22,653 ) (201,441 ) cash and cash equivalents - beginning of year 177,232 400,726 cash and cash equivalents - end of period $ 154,579 $ 199,285 valmont industries, inc. and subsidiaries summary of effect of significant non-recurring items on reported results regulation g reconciliation (dollars in thousands, except per share amounts) (unaudited) the non-gaap tables below disclose the impact of intangible asset amortization (prospera) and stock-based compensation recognized for the prospera employees on fiscal 2022 results. we believe the adjustments for prospera allow for a better comparison of future agriculture segment performance as compared to historical results. the non-gaap tables below also disclose the impact of a write off a receivable following arbitration of a commercial transaction from 2014, acquisition diligence and restructuring expenses on segment operating income and net earnings as well as the impact of the u.k. tax rate change on net earnings (adjusts gaap tax rate from 19.0% to 22.5%) on fiscal 2021 results. amounts may be impacted by rounding. we believe it is useful when considering company performance for the non-gaap adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported gaap measures. thirteen weeks ended june 25, 2022 diluted earnings per share twenty-six weeks ended june 25, 2022 diluted earnings per share net earnings attributable to valmont industries, inc. - as reported $ 76,108 $ 3.53 $ 138,419 $ 6.43 prospera intangible asset amortization 1,645 0.08 3,290 0.15 stock-based compensation - prospera 2,495 0.12 4,993 0.23 total adjustments, pre-tax1 4,140 0.19 8,283 0.38 tax effect of adjustments2 (566 ) (0.03 ) (1,132 ) (0.05 ) net earnings attributable to valmont industries, inc. - adjusted1 $ 79,682 $ 3.70 $ 145,570 $ 6.77 average shares outstanding (000’s) - diluted 21,541 21,516 thirteen weeks ended june 26, 2021 diluted earnings per share twenty-six weeks ended june 26, 2021 diluted earnings per share net earnings attributable to valmont industries, inc. - as reported $ 62,110 $ 2.89 $ 117,124 $ 5.46 write-off of a receivable, pre-tax 5,545 0.26 5,545 0.26 acquisition diligence expense, pre-tax 1,120 0.05 1,120 0.05 restructuring expense, pre-tax 1,560 0.07 1,560 0.07 total adjustments, pre-tax1 8,225 0.38 8,225 0.38 change in u.k. statutory tax rate (2,819 ) (0.13 ) (2,819 ) (0.13 ) tax effect of adjustments2 (1,764 ) (0.08 ) (1,754 ) (0.08 ) net earnings attributable to valmont industries, inc. - adjusted1 $ 65,752 $ 3.06 $ 120,776 $ 5.63 average shares outstanding (000’s) - diluted 21,469 21,449 1earnings per share includes rounding 2the tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction. thirteen weeks ended june 25, 2022 operating income reconciliation infrastructure agriculture corporate valmont operating income - as reported $ 84,643 $ 58,046 $ (23,970 ) $ 118,719 stock-based compensation - prospera — 2,495 — 2,495 prospera intangible asset amortization — 1,645 — 1,645 adjusted operating income $ 84,643 $ 62,186 $ (23,970 ) $ 122,859 net sales - as reported 760,750 374,782 nm 1,135,532 operating income as a % of net sales 11.1 % 15.5 % nm 10.5 % adjusted operating income as a % of net sales 11.1 % 16.6 % nm 10.8 % thirteen weeks ended june 26, 2021 operating income reconciliation infrastructure agriculture corporate valmont operating income - as reported $ 61,550 $ 41,984 $ (20,909 ) $ 82,625 write-off of a receivable, pre-tax 5,545 — — 5,545 acquisition diligence expense, pre-tax — — — 1,120 1,120 restructuring expense, pre-tax 650 910 — 1,560 adjusted operating income $ 67,745 $ 42,894 $ (19,789 ) $ 90,850 net sales - as reported 614,808 279,821 nm 894,629 operating income as a % of net sales 10.0 % 15.0 % nm 9.2 % adjusted operating income as a % of net sales 11.0 % 15.3 % nm 10.2 % twenty-six weeks ended june 25, 2022 operating income reconciliation infrastructure agriculture corporate valmont operating income - as reported $ 162,150 $ 95,521 $ (44,110 ) $ 213,561 stock-based compensation - prospera — 4,993 — 4,993 prospera intangible asset amortization — 3,290 — 3,290 adjusted operating income $ 162,150 $ 103,804 $ (44,110 ) $ 221,844 net sales - as reported 1,438,375 677,977 nm 2,116,352 operating income as a % of net sales 11.3 % 14.1 % nm 10.1 % adjusted operating income as a % of net sales 11.3 % 15.3 % nm 10.5 % twenty-six weeks ended june 26, 2021 operating income reconciliation infrastructure agriculture corporate valmont operating income - as reported $ 115,999 $ 80,732 $ (36,895 ) $ 159,836 write-off of a receivable, pre-tax 5,545 — — 5,545 acquisition diligence expense, pre-tax — — — 1,120 1,120 restructuring expense, pre-tax 650 910 — 1,560 adjusted operating income $ 122,194 $ 81,642 $ (35,775 ) $ 168,061 net sales - as reported 1,161,253 508,262 nm 1,669,515 operating income as a % of net sales 10.0 % 15.9 % nm 9.6 % adjusted operating income as a % of net sales 10.5 % 16.1 % nm 10.1 % valmont industries, inc. and subsidiaries regulation g reconciliation of forecasted gaap and adjusted earnings (dollars in thousands, except per share amounts) the non-gaap tables below disclose the impact on the range of estimated diluted earnings per share of the (1) amortization of the intangible asset (prospera) and (2) stock-based compensation for prospera employees. we believe the adjustments for prospera allow for a better comparison of future agriculture segment performance as compared to historical results. we believe it is useful when considering company performance for the non-gaap adjusted net earnings to be taken into consideration by management and investors with the related reported gaap measures. reconciliation of range of net earnings - 2022 guidance low end high end adjustments estimated net earnings - gaap $ 279,000 $ 287,600 prospera intangible asset (proprietary technology) amortization, pre-tax 6,800 stock-based compensation - prospera, pre-tax 10,000 total pre-tax adjustments 16,800 estimated tax benefit from above expenses* (2,200 ) total adjustments, after-tax $ 14,600 estimated net earnings - adjusted $ 293,600 $ 302,200 diluted earnings per share range - gaap $ 12.90 $ 13.30 diluted earnings per share range - adjusted $ 13.60 $ 14.00 * the tax effect of adjustments is calculated based on the estimated income tax rate in each applicable jurisdiction.
