Harman International Industries, Incorporated (NYSE:HAR) Q2 2015 Earnings Conference Call - Final Transcript
Jan 29, 2015 • 11:00 am ET
color on our next quarterly conference call when we have more clarity on the timing of the closing of these acquisitions.
Based on the strength of our performance to date, we are raising our EBITDA and EPS outlook for fiscal 2015. We are raising our guidance for EBITDA from 685 million to 715 million, and guidance for EPS from $5.25 to $5.85.
Before we take your questions, let me spend a few minutes discussing cash and liquidity. This quarter, we generated 183 million of free cash flow, which includes cash flow from operations less CapEx, driven mainly by stronger earnings and effective working capital management. Our cash and short-term investments stood at 510 million at the end of the second quarter, and we expect to continue to generate significant free cash flow in the balance of the fiscal year.
As I noted last week on our acquisition announcement call, we will require approximately $450 million of cash before the end of the fiscal year to complete the announced transactions of Red Bend and Symphony Teleca, and another $50 million for Sinn. We have sufficient liquidity between our existing cash balances and our unused capacity on our revolving credit facility to finance these transactions. Looking further out, we are evaluating various long-term debt financing alternatives, particularly in this low-interest rate environment.
Finally, let me take a moment to focus on our capital allocation strategy, particularly in light of the acquisitions we announced last week. Our overall capital allocation strategy is unchanged. We will continue to invest in CapEx projects to drive organic growth and we will be opportunistic buyers of our stock. Many of you asked about future acquisition plans last week. We will be focused in the coming weeks and months on integrating Sinn, Red Bend and Symphony Teleca, while we remain open to bolt-on strategic acquisitions such as those that offer competitive technologies, our top priority is to create value from our pending transactions.
Overall, we are very pleased with our second quarter results, and as Dinesh said, despite the foreign currency headwinds and economic concerns in certain markets, we have performed very well and are positioned for continued growth in our core businesses.
Thank you for your attention. Dinesh and I are now happy to take your questions. Operator?