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Actua Announces Fourth Quarter and Full-Year 2016 Financial Results

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RADNOR, Pa., March 09, 2017 (GLOBE NEWSWIRE) -- Actua Corporation (NASDAQ:ACTA) ("Actua") today reported its results for the fourth quarter and year ended December 31, 2016.

2016 Highlights

  • Sold GovDelivery, resulting in proceeds to Actua of approximately $133 million and related gain of $124 million
  • Repurchased 5.6 million shares of Actua stock in 2016 for $73.7 million, including 4.6 million shares for approximately $64 million ($14.00 per share) through a modified "Dutch auction" tender offer
  • Completed three strategic tuck-in acquisitions, two at VelocityEHS and one at FolioDynamix, and expanded the capabilities of our businesses through significant technology enhancements

"The accelerating revenue and bookings growth we experienced in the second half of 2016 positions us for strong revenue growth in 2017," said Walter Buckley, CEO of Actua. "We believe that this revenue growth, coupled with ongoing improvement in operating leverage, will continue to drive long-term stockholder value."

Revenue was $29.3 million for the fourth quarter of 2016, up from $25.5 million for the fourth quarter of 2015.  Net income attributable to Actua for the fourth quarter of 2016 was $107.2 million, or $2.94 per diluted share, compared to net loss attributable to Actua of $(52.2) million, or $(1.40) per diluted share, for the comparable prior year quarter.  During the three months ended December 31, 2016, Actua's results were positively impacted by the gain associated with the GovDelivery sale of approximately $124 million.  Non-GAAP net loss for the fourth quarter of 2016 was $(2.2) million, or $(0.06) per diluted share, which was consistent with a non-GAAP net loss of $(2.2) million, or $(0.06) per diluted share, for the comparable prior year quarter.  Cash flow from operations was a source of $3.0 million for the fourth quarter of 2016, compared to a use of $(0.3) million for the fourth quarter of 2015.

Revenue was $109.3 million for the year ended December 31, 2016, up from $98.4 million for the prior year.  Net income attributable to Actua for the year ended December 31, 2016 was $70.1 million, or $1.91 per diluted share, compared to a net loss attributable to Actua of $(96.1) million, or $(2.59) per diluted share, for 2015.  Net income for the year ended December 31, 2016 was positively impacted by the GovDelivery gain referenced above.  Net loss for the year ended December 31, 2015 was negatively impacted by a $39.7 million non-cash goodwill impairment charge.  Non-GAAP net loss for the year ended December 31, 2016 was $(9.7) million, or $(0.26) per diluted share, compared to a non-GAAP net loss of $(7.2) million, or $(0.19) per diluted share, for 2015.  Cash flow from operations was a use of $(4.2) million for the year ended December 31, 2016, compared to a use of ($4.5) million for the year ended December 31, 2015.

2017 Guidance

Actua expects 2017 annual GAAP revenue in the range of between $125 million and $130 million, representing a range of between 14% and 19% growth from 2016.  Actua expects annual GAAP cash flow from operations in the range of between a use of $(2.0) million and a source of $2.0 million.  Non-GAAP net income (loss) per share is expected to be in the range of between $(0.10) and $(0.15) per diluted share for 2017, based on 32.5 million shares assumed diluted shares outstanding for 2017.

"Given the progress we made in 2016, and looking ahead to the coming year, share repurchases continue to be an important focus of our capital allocation strategy," said R. Kirk Morgan, CFO of Actua.  "From January 1 through March 8, 2017, we deployed an additional $7.0 million to repurchase over 500,000 shares and approximately $53.8 million remains available under our $189.8 million share repurchase program.  We expect to continue to opportunistically repurchase our shares through the remainder of 2017."

A reconciliation of the non-GAAP financial measures used above with the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Please see Actua's website at www.actua.com for more information on Actua, its businesses and its fourth quarter 2016 results.

Actua will host a webcast at 10:00 a.m. ET today to discuss its financial results.  As part of the live webcast for this call, Actua will post a slide presentation to accompany the prepared remarks.  To access the webcast, go to www.actua.com/investors/events-presentations/ and click on the webcast link.  Please log on to the website approximately ten minutes prior to the call to register and download any necessary audio software.  The conference call is also accessible through listen-only mode by dialing 800.708.4540 or 847.619.6397.  The passcode is 44194744.

For those unable to participate in the conference call, a replay will be available from March 9, 2017 at 12:30 p.m. ET until March 16, 2017 at 11:59 p.m. ET.  To access the replay, dial 888.843.7419 or 630.652.3042.  The passcode is 44194744#.  The replay and slide presentation also can be accessed in the investor relations section of the Actua website at www.actua.com/investors/events-presentations/.

About Actua
Actua Corporation (NASDAQ:ACTA), the multi-vertical cloud company, brings the power of the cloud to vertical markets and processes.  Actua is pioneering the second wave of the SaaS revolution - the vertical wave - by growing cloud businesses that are transforming their markets.  With over 700 employees delivering unrivaled domain knowledge, agility and responsiveness to our customers, Actua's rapidly growing vertical cloud businesses are positioned to lead this wave.  For the latest information about Actua and its brands, please go to www.actua.com.

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements involve certain risks and uncertainties, including, but not limited to, risks associated with our ability to compete successfully in highly-competitive, rapidly-developing markets, the valuation of public and private cloud-based businesses by analysts, investors and other market participants, our ability to deploy capital effectively and on acceptable terms, the effect of economic conditions generally, capital spending by our customers, our ability to retain existing customer relationships and revenue streams and secure new ones, developments in the markets in which we operate and our ability to respond to those changes in a timely and effective manner, the availability, performance and security of our cloud-based technology, particularly in light of increased cybersecurity risks and concerns, our ability to retain key personnel, our ability to successfully integrate any acquired business, the impact of any potential acquisitions, dispositions, share repurchases or other strategic transactions, our ability to have continued access to capital and to manage capital resources effectively, and other risks and uncertainties detailed in Actua's filings with the U.S. Securities and Exchange Commission.  These and other factors may cause actual results to differ materially from those projected.

 Actua Corporation
 Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                       
          Three Months Ended
 December 31,
  Twelve Months Ended
December 31,
          2016   2015   2016   2015
                       
 Revenue       $ 29,324     $ 25,475     $ 109,301     $ 98,432  
                       
 Operating expenses                  
   Cost of revenue (a)     7,735     6,887     29,186     27,420  
   Sales and marketing (a)     9,946     8,921     40,807     35,832  
   General and administrative (a)     12,010     13,627     46,936     54,516  
   Research and development (a)     5,536     4,619     21,642     18,996  
   Amortization of intangibles     3,652     3,303     14,384     13,449  
   Impairment related and other     375     39,787     768     40,769  
    Total operating expenses     39,254     77,144     153,723     190,982  
   Operating income (loss)     (9,930 )   (51,669 )   (44,422 )   (92,550 )
                       
 Other income (expense):                  
   Other income (loss), net     131     204     2,857     1,741  
   Interest income     165     43     283     126  
   Interest expense     (3 )   (93 )   (96 )   (197 )
       
 Income (loss) before income taxes and discontinued operations   (9,637 )   (51,515 )   (41,378 )   (90,880 )
                       
 Income tax benefit (expense)     13,501     (89 )   13,210     (293 )
                       
 Income (loss) from continuing operations   3,864     (51,604 )   (28,168 )   (91,173 )
 Income (loss) from discontinued operations   102,019     (2,140 )   94,017     (9,172 )
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