Market Overview

Monotype Announces Second Quarter 2018 Results

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Revenue Grows 5%; Net Adjusted EBITDA Increases 48%

Raises Full-Year Profit Expectations

Monotype Imaging Holdings Inc. (NASDAQ:TYPE) today announced financial
results for the second quarter ended June 30, 2018.

Second quarter 2018 highlights

  • Revenue for the quarter was $60.7 million, an increase of 5% year over
    year.
  • Creative Professional revenue was $38.4 million, up 25% year over year.
  • Net income was $0.7 million; Non-GAAP net adjusted EBITDA was $17.4
    million, a 48% increase year over year, or 28.6% of revenue.
  • Cash and cash equivalents stood at $75.8 million.

"Our second quarter revenue came in at the high end of our guidance
range and EBITDA exceeded the high end of the range, further validating
that our solutions are resonating with Global 2000 brands," said Scott
Landers, president and CEO of Monotype. "Our success this quarter is the
result of our continued momentum with our enterprise sales strategy, and
ongoing focus on providing customers with the solutions that are most
impactful to their businesses."

Tony Callini, executive vice president and chief financial officer of
Monotype, said, "We are encouraged by our second quarter results, and
are pleased that our efforts to improve margins are now visible as past
investments are being leveraged, while we take a disciplined approach to
focus on those things that drive the most value to our customers."

Second quarter 2018 operating results
Revenue for the
quarter increased 5% to $60.7 million, compared to $57.8 million for the
second quarter of 2017. Creative Professional revenue was $38.4 million,
a 25% increase from the second quarter of 2017. OEM revenue was $22.3
million, a decrease of 18% from the same period in 2017.

Gross margin for the quarter of 82.2% compared to 80.9% in the prior
year quarter.

Net income was $0.7 million, compared to a net loss of $0.5 million in
the second quarter of 2017. Earnings per diluted share was $0.02,
compared to loss per diluted share of $0.01 in the prior year.

Non-GAAP net income, which excludes the amortization of intangible
assets, stock-based compensation expense, acquisition-related
compensation expense, and non-recurring expenses, net of taxes, was
$12.0 million, compared to $3.2 million in the second quarter of 2017.
Non-GAAP earnings per diluted share were $0.30 compared to $0.08 in the
prior year period.

Non-GAAP net adjusted EBITDA was $17.4 million, or 28.6% of revenue,
compared to $11.7 million in the second quarter of 2017.

Cash and cash flow
Monotype had cash and cash equivalents of
$75.8 million as of June 30, 2018, compared to $85.4 million as of March
31, 2018 and $83.7 million as of June 30, 2017. The company used $4.2
million of cash in operations in the second quarter of 2018, a decrease
from $6.9 million generated in the prior year quarter primarily due to
the payment of certain non-recurring obligations. During the second
quarter of 2018, the company repaid $5.0 million on its outstanding
revolving line of credit.

In the second quarter, Monotype repurchased approximately 45,000 shares
of common stock on the open market at prevailing market prices, for a
total consideration of $1.0 million.

Quarterly dividend
Monotype's most recent dividend payment
of $0.116 per share was paid on July 20, 2018, to shareholders of record
as of the close of business on July 2, 2018. A dividend of $0.116 cents
per share will be paid on October 19, 2018, to shareholders of record as
of the close of business on October 1, 2018.

Financial outlook
Monotype is updating its full-year
financial outlook to reflect lower revenue expectations in the second
half of 2018, while increasing non-GAAP net adjusted EBITDA to reflect
the impact of the second quarter results and expanding profitability
margin expectations for the remainder of the year. Monotype's updated
financial outlook reflects the impact of the restructuring action
announced during the second quarter. Monotype's third quarter and
updated full-year financial guidance are set forth in the following
tables:

       
(in $ millions, except for per share data) Q3 2018 Full-Year 2018
Revenue

$57.5 – $61.5

$238.0 – $244.0

Non-GAAP net adjusted EBITDA

$15.0 – $18.0

$63.0 – $67.0

Operating expenses

$40.0 – $42.0

$179.0 – $182.0

GAAP earnings per diluted share

$0.04 – $0.06

$0.07 – $0.11

Non-GAAP earnings per diluted share

$0.19 – $0.21

$0.90 – $0.94

   
 

Conference call details
Monotype will host a conference call
on Friday, July 27, 2018, at 8:30 a.m. EDT to discuss the company's
second quarter 2018 results and business outlook for 2018. Individuals
who are interested in listening to the audio webcast should log on to
the Investors portion of the Company section of the Monotype website at www.monotype.com.
The live call can also be accessed by dialing (855) 312-5713 (domestic)
or (703) 925-2611 (international) using passcode 2358128. If individuals
are unable to listen to the live call, the audio webcast will be
archived in the Investors portion of the company's website for one year.

Non-GAAP financial measures
This press release contains
non-GAAP financial measures under the rules of the U.S. Securities and
Exchange Commission. This non-GAAP information supplements and is not
intended to represent a measure of performance in accordance with
disclosures required by generally accepted accounting principles.
Non-GAAP financial measures are used internally to manage the business,
such as in establishing an annual operating budget and in reporting to
lenders. Non-GAAP financial measures are used by Monotype management in
its operating and financial decision-making because management believes
these measures reflect ongoing business in a manner that allows
meaningful period-to-period comparisons. Accordingly, Monotype believes
it is useful for investors and others to review both GAAP and non-GAAP
measures in order to (a) understand and evaluate current operating
performance and future prospects in the same manner as management does,
and (b) compare in a consistent manner the company's current financial
results with past financial results. The primary limitations associated
with the use of non-GAAP financial measures are that these measures may
not be directly comparable to the amounts reported by other companies
and they do not include all items of income and expense that affect
operations. Monotype management compensates for these limitations by
considering the company's financial results and outlook as determined in
accordance with GAAP and by providing a detailed reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
measures in the tables attached to this press release.

Forward-Looking Statements
This release may contain
forward-looking statements including those related to future revenues
and operating results, the growth of the company's business; anticipated
savings, costs and expenses resulting from the company's restructuring
actions and changes to the company's product portfolio; the impact of
the company's revenue recognition policy; the impact of federal tax
reform legislation; the execution of the company's capital allocation
and funding strategies and anticipated business momentum that involve
risks and uncertainties that could cause the company's actual results to
differ materially. Factors that might cause or contribute to such
differences include, but are not limited to risks associated with
changes in the economic climate including decreased demand for the
company's products or products that incorporate the company's solutions;
risks associated with the company's ability to adapt products or
services to new markets and to anticipate and quickly respond to
evolving technologies and customer requirements; risks associated with
the company's development of and the market acceptance of new products,
product features or services; risks associated with the anticipated cost
savings and expenses from the company's restructuring actions and wind
down of certain of the company's products including that such savings
and expenses are not as predicted; risks associated with increased
competition in markets the company serves, including the risks that
increased competition may result in the company's inability to gain new
customers, retain existing customers or may force the company to reduce
prices; risks associated with the ownership and enforcement of the
company's intellectual property; and risks associated with geopolitical
conditions and changes in the financial markets. Additional disclosure
regarding these and other risks faced by the company is available in the
company's public filings with the Securities and Exchange Commission,
including the risk factors included in the company's Annual Report on
Form 10-K for the year ended December 31, 2017 and subsequent filings.
The forward-looking financial information set forth in this release
reflects estimates based on information available at this time. These
amounts could differ from actual reported amounts to be included in the
company's future earnings releases and public filings. While the company
may elect to update forward-looking statements at some point in the
future, the company specifically disclaims any obligation to do so, even
if an estimate changes.

About Monotype
Monotype provides the design assets,
technology and expertise that help create beautiful, authentic and
impactful brands that customers will engage with and value, wherever
they experience the brand, now and in the future. Further information is
available at www.monotype.com.
Follow Monotype on Twitter,
Instagram
and LinkedIn.

Monotype is a trademark of Monotype Imaging Inc. registered in the U.S.
Patent and Trademark Office and may be registered in certain
jurisdictions. ©2018 Monotype Imaging Holdings Inc. All rights reserved.

 

MONOTYPE IMAGING HOLDINGS INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS

(Unaudited and in
thousands)

       

June 30,
2018

December 31,
2017

Assets
Current assets:
Cash and cash equivalents $ 75,819 $ 82,822
Restricted cash 3,000 11,987
Accounts receivable, net of allowance for doubtful accounts 36,491 34,461
Income tax refunds receivable 1,844 1,204
Prepaid expenses and other current assets   7,491     5,714  
 
Total current assets 124,645 136,188
Property and equipment, net 15,543 16,763
Goodwill 277,121 279,131
Intangible assets, net 78,335 84,856
Restricted cash 6,000 6,000
Other assets   6,313     3,112  
 
Total assets $ 507,957   $ 526,050  
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,337 $ 1,467
Accrued expenses and other current liabilities 31,127 43,096
Accrued income taxes payable 183 522
Deferred revenue   13,771     15,102  
 
Total current liabilities 46,418 60,187
Revolving line of credit 85,000 93,000
Other long-term liabilities 6,925 6,428
Deferred income taxes 26,351 28,004
Reserve for income taxes 2,839 2,783
Accrued pension benefits 6,194 6,280
Stockholders' equity:
Common stock 44 44
Additional paid-in capital 308,952 298,113
Treasury stock, at cost (66,581 ) (64,083 )
Retained earnings 96,477 97,815
Accumulated other comprehensive loss   (4,662 )   (2,521 )
 
Total stockholders' equity   334,230     329,368  
 
Total liabilities and stockholders' equity $ 507,957   $ 526,050  

 

MONOTYPE IMAGING HOLDINGS INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and
in thousands, except share and per share data)

 

               
Three Months Ended
June 30,
Six Months Ended
June 30,
2018 2017 2018 2017
Revenue $ 60,687 $ 57,801 $ 117,370 $ 110,266
Cost of revenue 9,956 10,141 22,392 18,919
Cost of revenue—amortization of acquired technology   860     881     1,724     1,759  
 
Total cost of revenue   10,816     11,022     24,116     20,678  
 
Gross profit 49,871 46,779 93,254 89,588
Operating expenses:
Marketing and selling 20,081 22,722 40,170 43,964
Research and development 8,456 9,227 17,752 18,781
General and administrative 11,858 11,814 27,476 22,741
Restructuring 6,376 6,570
Amortization of other intangible assets   965     1,019     1,989     2,030  
 
Total operating expenses   47,736     44,782     93,957     87,516  
 
Income from operations 2,135 1,997 (703 ) 2,072
Other (income) expense:
Interest expense, net 799 726 1,527 1,357
Other (income) expense, net   (633 )   2,794     (535 )   3,414  
 
Total other expense   166     3,520     992     4,771  
 
Income (loss) before provision (benefit) for income taxes 1,969 (1,523 ) (1,695 ) (2,699 )
Provision (benefit) for income taxes   1,274     (1,027 )   (1,191 )   (1,128 )
 
Net income (loss) $ 695   $ (496 ) $ (504 ) $ (1,571 )
 
Net income (loss) available to common stockholders—basic and diluted $ 666   $ (496 ) $ (504 ) $ (1,571 )
 
Net income (loss) per common share-basic and diluted $ 0.02   $ (0.01 ) $ (0.01 ) $ (0.04 )
 
Weighted-average number of shares outstanding:
Basic 40,418,308 39,657,071 40,436,595 39,567,254
Diluted 40,537,852 39,657,071 40,436,595 39,567,254
Dividends declared per common share $ 0.116   $ 0.113   $ 0.232   $ 0.226  

   

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited
and in thousands)

 

RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET
ADJUSTED EBITDA

   

 

Three Months Ended
June 30,

Six Months Ended
June 30,

2018     2017 2018     2017

Net income (loss)

$ 695 $ (496 ) $ (504 ) $ (1,571 )
Interest expense, net 799 726 1,527 1,357
Other (income) expense, net (633 ) 2,794 (535 ) 3,414
Provision (benefit) for income taxes   1,274     (1,027 )   (1,191 )   (1,128 )
 
Income from operations 2,135 1,997 (703 ) 2,072
Depreciation and amortization 3,198 3,122 6,447 6,173

Stock based compensation(1)

4,590 5,192 8,837 10,023

Acquisition-related compensation(2)

1,084 1,407 2,273 2,814

Non-recurring expenses(3)

 

6,376

       

11,490

     
 
Net adjusted EBITDA $

17,383

  $ 11,718   $

28,344

  $ 21,082  
 

(1) For the three and six months ended June 30, 2018, the amount
excludes a $1.4 million non-recurring reduction for forfeitures of
awards by employees included in the restructuring plan. This amount is
included in non-recurring expenses.
(2) For the three months ended
June 30, 2018, the amount includes $0.9 million of expense associated
with the deferred compensation arrangement resulting from the Olapic
acquisition and $0.2 million of expense associated with the deferred
compensation arrangement resulting from the Amendment to the Swyft
Merger Agreement. For the three months ended June 30, 2017, the amount
includes $0.9 million of expense associated with the deferred
compensation arrangement resulting from the Olapic acquisition and
$0.5 million of expense associated with the deferred compensation
arrangement resulting from the Amendment to the Swyft Merger Agreement.
For the six months ended June 30, 2018, the amount includes $1.8 million
of expense associated with the deferred compensation arrangement
resulting from the Olapic acquisition and $0.5 million of expense
associated with the deferred compensation arrangement resulting from the
Amendment to the Swyft Merger Agreement. For the six months ended
June 30, 2017, the amount includes $1.8 million of expense associated
with the deferred compensation arrangement resulting from the Olapic
acquisition and $1.0 million of expense associated with the deferred
compensation arrangement resulting from the Amendment to the Swyft
Merger Agreement.
(3) For the three months ended June 30, 2018, the
amount consists of $6.4 million of restructuring expenses. For the six
months ended June 30, 2018, the amount includes $2.7 million of certain
advisor fees related to shareholder activities, $2.2 million of royalty
expenses, recorded in cost of sales, associated with revenue that was
not recognized under ASC 606 and $6.6 million of restructuring expenses.

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited
and in thousands)

 
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME
               
Three Months Ended
June 30,
Six Months Ended
June 30,
2018 2017 2018 2017
GAAP net income (loss) available to common stockholders ─ diluted $ 695 $ (496 ) $ (504 ) $ (1,571 )
Amortization, net of tax of $425, $1,281, $865 and $1,584,
respectively
1,400 619 2,848 2,205

Stock based compensation, net of tax of $672, $3,499, $1,417 and
$4,190, respectively(1)

3,918 1,693 7,420 5,833

Acquisition-related compensation, net of tax of $0, $0, $0 and $0,
respectively(2)

1,084 1,407 2,273 2,814

Non-recurring expenses, net of tax of $1,486, $0, $2,677 and $0,
respectively(3)

  4,890  

   

8,813

     
 
Non-GAAP net income $ 11,987 $ 3,223   $

20,850

  $ 9,281  
 

(1) For the three and six months ended June 30, 2018, the amount
excludes a $1.2 million non-recurring reduction for forfeitures of
awards by employees included in the restructuring plan. This amount is
included in non-recurring expenses.
(2) For the three months ended
June 30, 2018, the amount includes $0.9 million, net of tax, of expense
associated with the deferred compensation arrangement resulting from the
Olapic acquisition and $0.2 million, net of tax, of expense associated
with the deferred compensation arrangement resulting from the Amendment
to the Swyft Merger Agreement. For the three months ended June 30, 2017,
the amount includes $0.9 million, net of tax, of expense associated with
the deferred compensation arrangement resulting from the Olapic
acquisition and $0.5 million, net of tax, of expense associated with the
deferred compensation arrangement resulting from the Amendment to the
Swyft Merger Agreement. For the six months ended June 30, 2018, the
amount includes $1.8 million, net of tax, of expense associated with the
deferred compensation arrangement resulting from the Olapic acquisition
and $0.5 million, net of tax, of expense associated with the deferred
compensation arrangement resulting from the Amendment to the Swyft
Merger Agreement. For the six months ended June 30, 2017, the amount
includes $1.8 million, net of tax, of expense associated with the
deferred compensation arrangement resulting from the Olapic acquisition
and $1.0 million, net of tax, of expense associated with the deferred
compensation arrangement resulting from the Amendment to the Swyft
Merger Agreement.
(3) For the three months ended June 30, 2018, the
amount consists of $4.9 million, net of tax, of restructuring expenses.
For the six months ended June 30, 2018, the amount includes
$2.1 million, net of tax, of certain advisor fees related to shareholder
activities, $1.7 million, net of tax, of royalty expenses, recorded in
cost of sales, associated with revenue that was not recognized under ASC
606 and $5.0 million, net of tax, of restructuring expenses.

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited
and in thousands)

 

RECONCILIATION OF GAAP EARNINGS (LOSS) PER DILUTED SHARE TO
NON-GAAP EARNINGS PER DILUTED
SHARE

           
Three Months Ended
June 30,
    Six Months Ended
June 30,
2018 2017 2018     2017
GAAP income (loss) per diluted share $ 0.02

$

(0.01

)

$

(0.01

) $ (0.04 )
Amortization, net of tax of $0.01, $0.03, $0.02 and $0.04,
respectively
0.03 0.02 0.07 0.05

Stock based compensation, net of tax of $0.02, $0.09, $0.03 and
$0.11, respectively(1)

0.10 0.04

0.18

0.15

Acquisition-related compensation, net of tax of $0.00, $0.00,
$0.00 and $0.00, respectively(2)

0.03 0.03 0.05 0.07

Non-recurring expenses, net of tax of $0.04, $0.00, $0.07 and
$0.00, respectively(3)

  0.12     0.22      
 
Non-GAAP earnings per diluted share $ 0.30

$

0.08

 

$

0.51

  $ 0.23  
 

(1) For the three and six months ended June 30, 2018, the amount
excludes a $1.2 million, or $0.03 per share, non-recurring reduction for
forfeitures of awards by employees included in the restructuring plan.
This amount is included in non-recurring expenses.
(2) For the
three months ended June 30, 2018, the amount includes $0.9 million, or
$0.02 per share, net of tax, of expense associated with the deferred
compensation arrangement resulting from the Olapic acquisition and
$0.2 million, or $0.01 per share, net of tax, of expense associated with
the deferred compensation arrangement resulting from the Amendment to
the Swyft Merger Agreement. For the three months ended June 30, 2017,
the amount includes $0.9 million, or $0.02 per share, net of tax, of
expense associated with the deferred compensation arrangement resulting
from the Olapic acquisition and $0.5 million, or $0.01 per share, net of
tax, of expense associated with the deferred compensation arrangement
resulting from the Amendment to the Swyft Merger Agreement. For the six
months ended June 30, 2018, the amount includes $1.8 million, or $0.04
per share, net of tax, of expense associated with the deferred
compensation arrangement resulting from the Olapic acquisition and
$0.5 million, or $0.01 per share, net of tax, of expense associated with
the deferred compensation arrangement resulting from the Amendment to
the Swyft Merger Agreement. For the six months ended June 30, 2017, the
amount includes $1.8 million, or $0.04 per share, net of tax, of expense
associated with the deferred compensation arrangement resulting from the
Olapic acquisition and $1.0 million, or $0.03 per share, net of tax, of
expense associated with the deferred compensation arrangement resulting
from the Amendment to the Swyft Merger Agreement.
(3) For the three
months ended June 30, 2018, the amount consists of $4.9 million, or
$0.12 per share, net of tax, of restructuring expenses. For the six
months ended June 30, 2018, the amount includes $2.1 million, or $0.06
per share, net of tax, of certain advisor fees related to shareholder
activities, $1.7 million, or $0.04 per share, net of tax, of royalty
expenses, recorded in cost of sales, associated with revenue that was
not recognized under ASC 606 and $5.0 million, or $0.12 per share, net
of tax, of restructuring expenses.

 
MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited
and in thousands)
 
OTHER INFORMATION
 
Stock based compensation is comprised of the following:
       
    Three Months Ended
June 30,
    Six Months Ended
June 30,
2018     2017 2018     2017
Marketing and selling

$

2,152

$

2,563

$

3,886

$ 4,893
Research and development 893 1,078 1,881 2,096
General and administrative 1,545 1,551 3,070 3,034

Restructuring(1)

 

(1,402

)

 

(1,402

)

Total expensed

$

3,188

$

5,192

$

7,435

$ 10,023
Property and equipment   7     31   21     53

 

Total stock based compensation

$

3,195

 

$

5,223

$

7,456

  $ 10,076

(1) For the three and six months ended June 30, 2018, $1.4 million of
stock based compensation expense was reversed as a result of forfeitures
of awards by employees included in the restructuring plan. This
non-recurring amount has been included in restructuring expenses.

 
MARKET INFORMATION
 
The following table presents revenue for our two major markets:
             
Three Months Ended
June 30,
Six Months Ended
June 30,
2018 2017 2018     2017
Creative Professional $ 38,417 $ 30,642

$

73,415

$ 57,713
OEM   22,270   27,159   43,955   52,553
 
Total $ 60,687 $ 57,801

$

117,370

$ 110,266

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited
and in thousands, except share and per share data)

 

RECONCILIATION OF FORECAST GAAP EARNINGS PER DILUTED SHARE TO
FORECAST NON- GAAP EARNINGS PER DILUTED SHARE

       

Low End of
Guidance

High End of
Guidance

Q3 2018 Q3 2018
GAAP net income $ 1,500 $

2,600

Amortization, net of tax of $400 and $400, respectively

1,400

1,400

Stock based compensation, net of tax of $900 and $900, respectively

4,000

4,000

Acquisition-related compensation, net of tax of $0 and $0,
respectively

700

700

Non-recurring expenses, net of tax of $0 and $0, respectively

Non-GAAP net income $

7,600

$

8,700

 
 
GAAP earnings per diluted share $ 0.04 $ 0.06

Amortization, net of tax of $0.01 and $0.01, respectively, per
diluted share

0.03

0.03

Stock based compensation, net of tax of $0.02 and $0.02,
respectively, per diluted share

0.10

0.10

Acquisition-related compensation, net of tax of $0.00 and $0.00,
respectively, per diluted share

0.02

0.02

Non-recurring expenses, net of tax of $0.00 and $0.00,
respectively, per diluted share

Non-GAAP earnings per diluted share $

0.19

$

0.21

 
 
Weighted average diluted shares used to compute earnings per share 41,100,000 41,100,000

       

 

Low End of
Guidance

High End of
Guidance

2018 2018
GAAP net income $

2,900

$

4,300

Amortization, net of tax of $1,700 and $1,700, respectively

5,500

5,500

Stock based compensation, net of tax of $3,500 and $3,500,
respectively

15,700

15,700

Acquisition-related compensation, net of tax of $0 and $0,
respectively

3,500

3,500

Non-recurring expenses, net of tax of  $2,700 and $2,700,
respectively

8,800

8,800

Non-GAAP net income

 

36,400

 

37,800

 
 
GAAP earnings per diluted share $

0.07

$

0.11

Amortization, net of tax of $0.04 and $0.04, respectively, per
diluted share

0.13

0.13

Stock based compensation, net of tax of $0.09 and $0.09,
respectively, per diluted share

0.39

0.39

Acquisition-related compensation, net of tax of $0.00 and $0.00,
respectively, per diluted share

0.09

0.09

Non-recurring expenses, net of tax of  $0.07 and $0.07,
respectively, per diluted share

0.22

0.22

Non-GAAP earnings per diluted share $

0.90

$

0.94

 
 
Weighted average diluted shares used to compute earnings per share 40,500,000 40,500,000

 

 

MONOTYPE IMAGING HOLDINGS INC.
RECONCILIATION OF
FORECAST GAAP NET INCOME

TO FORECAST NON-GAAP NET
ADJUSTED EBITDA

(Unaudited and in thousands)

 

       

Low End of
Guidance

High End of
Guidance

Q3 2018 Q3 2018
GAAP net income $ 1,500 $ 2,600
Interest, net 1,200 1,200
Other (income) expense, net 500 500
Provision for income taxes   2,900   4,800
 
Income from operations 6,100 9,100
Depreciation and amortization 3,300 3,300

Stock based compensation

4,900 4,900

Acquisition-related compensation

700 700

Non-recurring expenses

Non-GAAP net adjusted EBITDA $ 15,000 $ 18,000
       

Low End of
Guidance

High End of
Guidance

2018 2018
GAAP net income $

2,900

$

4,300

Interest, net 4,800 4,800
Other (income) expense, net 2,500 2,500
Provision for income taxes  

5,400

 

8,000

 
Income from operations

15,600

19,600

Depreciation and amortization 13,200 13,200

Stock based compensation

19,200 19,200

Acquisition-related compensation

3,500

3,500

Non-recurring expenses

11,500

11,500

Non-GAAP net adjusted EBITDA $ 63,000 $ 67,000

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