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LogMeIn Announces Second Quarter 2018 Results

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BOSTON, July 26, 2018 (GLOBE NEWSWIRE) -- LogMeIn, Inc. (NASDAQ:LOGM), a leading provider of cloud-based connectivity, today announced its results for the second quarter ended June 30, 2018.

Second quarter 2018 highlights include:

  • GAAP revenue was $305.7 million and non-GAAP revenue was $307.1 million
  • GAAP net income was $6.6 million or $0.12 per diluted share and non-GAAP net income was $69.8 million or $1.32 per diluted share
  • EBITDA was $82.2 million or 26.9% of GAAP revenue and Adjusted EBITDA was $110.1 million or 35.9% of non-GAAP revenue
  • Cash flow from operations was $103.2 million or 33.6% of non-GAAP revenue, and Adjusted cash flow from operations was $111.3 million or 36.2% of non-GAAP revenue
  • Total deferred revenue was $381.8 million
  • The Company closed the quarter with cash and cash equivalents of $198.9 million and $200.0 million of borrowings under its existing credit agreement

"LogMeIn had a solid second quarter with revenue and earnings that exceeded the high-end of our guidance," said Bill Wagner, President and CEO of LogMeIn.  "While we expect isolated headwinds in the second half of the year, we continue to be pleased with the trajectory of our long-term growth drivers—Unified Communications, Digital Engagement and Identity—all of which accelerated in the quarter."

Business Outlook
Based on information available as of July 26, 2018, the Company is issuing guidance for the third quarter 2018 and fiscal year 2018. 

Third Quarter 2018:  The Company expects third quarter non-GAAP revenue to be in the range of $302 million to $304 million.  The Company expects third quarter GAAP revenue to be in the range of $301 million to $303 million.  Non-GAAP revenue adds back $1 million for the impact of an acquisition accounting adjustment recorded to reduce acquired deferred revenue to the fair value of the remaining obligation.

EBITDA is expected to be in the range of $85 million to $87 million, or approximately 29% of GAAP revenue.  Adjusted EBITDA is expected to be in the range of $111 million to $113 million, or approximately 37% of non-GAAP revenue. 

Non-GAAP net income is expected to be in the range of $70 million to $71 million, or $1.33 to $1.35 per diluted share.  Non-GAAP net income adds back the non-GAAP revenue adjustment described above and excludes an estimated $20 million in stock-based compensation expense, $5 million in acquisition and litigation-related costs, $61 million of amortization expense of acquired intangible assets, and includes $2 million of amortization expense for GoTo's internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items.

Non-GAAP net income for the third quarter assumes an effective tax rate of approximately 25% and GAAP net income assumes a tax provision of $4 million for the third quarter. Non-GAAP and GAAP net income per diluted share is based on an estimated 52.5 million fully-diluted weighted average shares outstanding. 

Including stock-based compensation expense, acquisition related costs and amortization, litigation-related expense, and excluding the acquisition accounting adjustments to revenue and amortization expense, the Company expects to report GAAP net income in the range of $4 million to $5 million, or $0.08 to $0.10 per diluted share. 

Fiscal year 2018:  The Company expects full year 2018 non-GAAP revenue to be in the range of $1.185 billion to $1.195 billion.  The Company expects full year 2018 GAAP revenue to be in the range of $1.181 billion to $1.191 billion.  Non-GAAP revenue adds back $4 million for the impact of an acquisition accounting adjustment recorded to reduce acquired deferred revenue to the fair value of the remaining obligation.

EBITDA is expected to be in the range of $368 million to $374 million, or approximately 31% of GAAP revenue.  Adjusted EBITDA is expected to be in the range of $434 million to $440 million, or approximately 37% of non-GAAP revenue.

Non-GAAP net income is expected to be in the range of $273 million to $278 million, or $5.17 to $5.26 per diluted share.  Non-GAAP net income adds back the non-GAAP revenue adjustment described above and excludes an estimated $72 million in stock-based compensation expense, $24 million in acquisition and litigation-related costs, $243 million of amortization expense of acquired intangible assets, a $34 million pre-tax gain associated with the disposition of a non-core asset and includes $8 million of amortization expense for GoTo's internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items and discrete tax items.

Non-GAAP net income for the fiscal year assumes an effective tax rate of approximately 25% and GAAP net income for the fiscal year assumes an effective tax rate of approximately 31%.  Non-GAAP and GAAP net income per diluted share is based on an estimated 52.8 million fully-diluted weighted average shares outstanding. 

Including stock-based compensation expense, acquisition related costs and amortization, litigation-related expense, and excluding the acquisition accounting adjustments to revenue and amortization expense, the Company expects to report GAAP net income in the range of $44 million to $48 million, or $0.84 to $0.91 per diluted share.      

Dividend
In accordance with its previously announced capital return plan, the Company will pay a $0.30 per share dividend on ­­­­­­August 24, 2018 to stockholders of record as of August 8, 2018.  The Company currently has approximately 51.9 million shares of common stock outstanding.

Conference Call Information for Today, Thursday, July 26, 2018
The Company will host a corresponding conference call and live webcast at 5:00 p.m. Eastern Time today.  To access the conference call, dial 323-794-2590 and enter passcode 7170867.  A live webcast will be available on the Investor Relations section of the Company's corporate website at https://www.logmeininc.com and via replay beginning approximately two hours after the completion of the call until the Company's announcement of its financial results for the next quarter.  An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time on July 26, 2018 until 8:00 p.m. Eastern Time on August 3, 2018, by dialing 719-457-0820 and entering passcode 7170867.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures including non-GAAP revenue, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and adjusted cash flow from operations.

  • Non-GAAP revenue is GAAP revenue excluding the impact of fair value acquisition accounting adjustment on acquired deferred revenue.  
  • EBITDA is GAAP net income excluding provision for income taxes, interest income, interest expense, and other (expense) income, net, and depreciation and amortization. 
  • EBITDA margin is calculated by dividing EBITDA by revenue. 
  • Adjusted EBITDA is EBITDA excluding the impact of fair value acquisition accounting adjustment on acquired deferred revenue, acquisition related costs, gain on disposition of non-core assets, stock-based compensation expense, and litigation related expense.  
  • Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue, or GAAP revenue if not different.  
  • Non-GAAP operating income excludes the impact of fair value acquisition accounting adjustment on acquired deferred revenue, acquisition related costs and amortization, gain on disposition of non-core assets, stock-based compensation expense, and litigation related expense and includes amortization expense for GoTo's internally capitalized software development costs that were adjusted in acquisition accounting to fair value.
  • Non-GAAP provision for income taxes excludes the tax impact of the fair value acquisition accounting adjustment on acquired deferred revenue, acquisition related costs and amortization, gain on disposition of non-core assets, stock-based compensation expense, litigation related expense, discrete integration related tax impacts, and the tax impact related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017, and includes the tax impact of amortization expense for GoTo's internally capitalized software development costs that were adjusted in acquisition accounting to fair value.
  • Non-GAAP net income and non-GAAP net income per diluted share reflects the adjustments noted in non-GAAP operating income and non-GAAP provision for income taxes above.
  • Adjusted cash flow from operations excludes acquisition, disposition and litigation related payments.

The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures. The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods and uses these measures in financial reports prepared for management and the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors. The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, and not to rely on any single financial measure to evaluate the Company's business. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.
LogMeIn, Inc. (NASDAQ:LOGM) simplifies how people connect with each other and the world around them to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. One of the world's top 10 public SaaS companies, and a market leader in communication & conferencing, identity & access, and customer engagement & support solutions, LogMeIn has millions of customers spanning virtually every country across the globe. LogMeIn is headquartered in Boston with additional locations in North and South America, Europe, Asia and Australia.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the Company's long-term growth strategies and the performance of its key growth drivers and the Company's financial guidance for fiscal year 2018 and the third quarter of 2018. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control.  The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, customer adoption of the Company's solutions, the Company's ability to execute on its strategic initiatives, the Company's ability to integrate acquired products or companies, the Company's ability to attract new customers and retain existing customers, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the Company operates, the effectiveness of the Company's cybersecurity measures, the Company's ability to continue to promote and maintain its brand in a cost-effective manner, the Company's ability to compete effectively, the Company's ability to develop and introduce new products and add-ons or enhancements to existing products, the Company's ability to manage growth, the Company's ability to attract and retain key personnel, the Company's ability to protect its intellectual property and other proprietary rights, the result of any pending litigation including intellectual property litigation, and other risks detailed in the Company's other publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

LogMeIn is a registered trademark of LogMeIn, Inc. in the US and other countries around the world.

Contact Information:
Investors
Rob Bradley   
LogMeIn, Inc.
781-897-1301
rbradley@LogMeIn.com

Press
Craig VerColen
LogMeIn, Inc.
781-897-0696
Press@LogMeIn.com

LogMeIn, Inc.  
Condensed Consolidated Balance Sheets (unaudited)  
(In thousands)  
           
    December 31,   June 30,  
      2017       2018    
           
ASSETS  
Current assets:          
  Cash and cash equivalents   $     252,402      $     198,858     
  Accounts receivable, net        93,949          81,896     
  Prepaid expenses and other current assets        52,473          56,505     
  Total current assets       398,824          337,259     
Property and equipment, net       92,154          92,410     
Restricted cash, net of current portion       1,795          1,803     
Intangibles, net       1,149,597          1,179,637     
Goodwill       2,208,725          2,404,862     
Other assets       6,483          40,760     
Deferred tax assets       530          705     
  Total assets   $     3,858,108      $     4,057,436     
           
LIABILITIES AND EQUITY  
Current liabilities:          
  Accounts payable   $     22,232      $     35,048     
  Accrued liabilities       82,426          112,875     
  Deferred revenue, current portion       340,570          375,079     
  Total current liabilities       445,228          523,002     
Long-term debt       -          200,000     
Deferred revenue, net of current portion       6,735          6,711     
Deferred tax liabilities       221,407          230,075     
Other long-term liabilities       20,997          26,723     
  Total liabilities       694,367          986,511     
Equity:          
  Common stock       560          565     
  Additional paid-in capital       3,276,891          3,283,856     
  Accumulated earnings        50,445          76,763     
  Accumulated other comprehensive income        15,570          7,005     
  Treasury stock       (179,725 )       (297,264 )  
  Total equity       3,163,741          3,070,925     
Total liabilities and equity   $     3,858,108      $     4,057,436     
           

 

LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except per share data)
               
  Three Months Ended June 30,   Six Months Ended June 30,
    2017       2018       2017       2018  
               
Revenue  $     257,025      $     305,650      $     444,483      $     584,867   
Cost of revenue     53,236          72,833          92,175          135,775   
  Gross profit     203,789          232,817          352,308          449,092   
Operating expenses:              
  Research and development     40,710          43,920          73,832          87,036   
  Sales and marketing     93,469          99,343          169,237          187,558   
  General and administrative     33,163          39,106          82,554          74,549   
  Gain on disposition of assets     -          -          -          (33,910 )
  Amortization of acquired intangibles     36,154          43,347          60,574          84,430   
  Total operating expenses     203,496          225,716          386,197          399,663   
Income (loss) from operations     293          7,101          (33,889 )       49,429   
  Interest income     373          369          519          1,042   
  Interest expense     (345 )       (1,854 )       (794 )       (2,180 )
  Other income (expense), net     (128 )       (86 )       (78 )       (326 )
Income (loss) before income taxes     193          5,530          (34,242 )       47,965   
(Provision for) benefit from income taxes     14,653          1,024          30,524          (11,699 )
Net income (loss) $     14,846      $     6,554      $     (3,718 )   $     36,266   
               
Net income (loss) per share:              
  Basic $     0.28      $     0.13      $     (0.08 )   $     0.69   
  Diluted $     0.28      $     0.12      $     (0.08 )   $     0.68   
Weighted average shares outstanding:              
  Basic     52,715          52,170          48,168          52,313   
  Diluted     53,723          52,875          48,168          53,160   
               

 

LogMeIn, Inc.  
Calculation of Non-GAAP Revenue (unaudited)  
                       
      Three Months Ended June 30,   Six Months Ended June 30,    
        2017       2018       2017       2018      
       (in thousands)     (in thousands)     
GAAP Revenue   $     257,025      $     305,650      $     444,483      $     584,867       
  Add Back:                    
  Effect of acquisition accounting on fair value of acquired deferred revenue       9,926          1,474          23,571          2,532       
Non-GAAP Revenue   $     266,951      $     307,124      $     468,054      $     587,399       
                       
Calculation of Non-GAAP Operating Income, Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)  
                       
      Three Months Ended June 30,   Six Months Ended June 30,    
        2017       2018       2017       2018      
       (In thousands, except per share data)     (In thousands, except per share data)     
GAAP Net income (loss) from operations   $     293      $     7,101      $     (33,889 )   $     49,429       
  Add Back:                    
  Effect of acquisition accounting on fair value of acquired deferred revenue       9,926          1,474          23,571          2,532       
  Stock-based compensation expense       16,296          17,166          30,490          33,132       
  Acquisition related costs       9,077          9,231          40,936          14,376       
  Litigation related expenses       520          96          738          277       
  Amortization of acquired intangibles       49,201          61,634          82,761          120,602       
  Gain on disposition of assets       -          -          -          (33,910 )    
  Effect of acquisition accounting on internally capitalized software development costs       (6,244 )       (2,411 )       (10,945 )       (6,131 )    
Non-GAAP Operating income       79,069          94,291          133,662          180,307       
  Interest and other expense, net       (100 )       (1,571 )       (353 )       (1,464 )    
Non-GAAP Income before income taxes       78,969          92,720          133,309          178,843       
  Non-GAAP Provision for income taxes (1)       (24,567 )       (22,902 )       (40,766 )       (44,174 )    
Non-GAAP Net income   $     54,402      $     69,818      $     92,543      $     134,669       
                       
Non-GAAP net income per diluted share   $     1.01      $     1.32      $     1.88      $     2.53       
Diluted weighted average shares outstanding used in                    
  computing per share amounts       53,723          52,875          49,274          53,160       
                       
(1 ) Non-GAAP provision for income taxes excludes the tax impact of Non-GAAP items as well as a discrete integration-related tax benefit of $1.4 million and $3.8 million in the three and six months ended June 30, 2017, respectively, and a net tax benefit of $3.4 million and $2.0 million in the three and six months ended June 30, 2018, respectively, and a net tax provision of $0.7 million in the six months ended June 30, 2018 related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017.  
     
                       
Calculation of EBITDA and Adjusted EBITDA (unaudited)  
                       
      Three Months Ended June 30,   Six Months Ended June 30,    
        2017       2018       2017       2018      
       (in thousands)     (in thousands)     
GAAP Net income   $     14,846      $     6,554      $     (3,718 )   $     36,266       
  Add Back:                    
  Interest and other expense, net       100          1,571          353          1,464       
  Income tax provision (benefit)       (14,653 )       (1,024 )       (30,524 )       11,699       
  Amortization of acquired intangibles       49,201          61,634          82,761          120,602       
  Depreciation and amortization expense       9,101          13,436          15,825          25,759       
EBITDA       58,595          82,171          64,697          195,790       
  Add Back:                    
  Effect of acquisition accounting on fair value of acquired deferred revenue       9,926          1,474          23,571          2,532       
  Stock-based compensation expense       16,296          17,166          30,490          33,132       
  Gain on disposition of assets       -          -          -          (33,910 )    
  Acquisition related costs        9,077          9,231          40,936          14,376       
  Litigation related expenses       520          96          738          277       
Adjusted EBITDA   $     94,414      $     110,138      $     160,432      $     212,197       
EBITDA Margin     22.8 %     26.9 %     14.6 %     33.5 %    
Adjusted EBITDA Margin     35.4 %     35.9 %     34.3 %     36.1 %    
                       
Stock-Based Compensation Expense (unaudited)  
                       
      Three Months Ended June 30,   Six Months Ended June 30,    
        2017       2018       2017       2018      
       (in thousands)     (in thousands)     
  Cost of revenue   $     1,285      $     1,261      $     2,299      $     2,477       
  Research and development       5,208          5,116          9,637          10,058       
  Sales and marketing       4,190          4,600          7,796          8,296       
  General and administrative       5,613          6,189          10,758          12,301       
  Total stock based-compensation   $     16,296      $     17,166      $     30,490      $     33,132       
                       

 

LogMeIn, Inc.  
Calculation of Projected 2018 Non-GAAP Revenue (unaudited)  
(In millions)  
             
      Three Months Ended   Twelve Months Ended  
      September 30, 2018   December 31, 2018  
             
GAAP Revenue   $301 - $303   $1,181 - $1,191  
  Add Back:          
  Effect of acquisition accounting on fair value of acquired deferred revenue   1     4    
Non-GAAP Revenue   $302 - $304   $1,185 - $1,195  
             
Calculation of Projected 2018 Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)  
(In millions, except per share data)  
             
      Three Months Ended   Twelve Months Ended  
      September 30, 2018   December 31, 2018  
             
GAAP Net income   $4 - $5   $44 - $48  
  Add Back:          
  Effect of acquisition accounting on fair value of acquired deferred revenue   1     4    
  Stock-based compensation expense   20     72    
  Acquisition and litigation related costs    5     24    
  Amortization of acquired intangibles   61     243    
  Effect of acquisition accounting on internally capitalized software development costs   (2 )   (8 )  
  Gain on disposition of assets   --     (34 )  
  Income tax effect of non-GAAP items   (19 )   (72 )  
Non-GAAP Net income   $70 - $71   $273 - $278  
             
GAAP net income per diluted share   $0.08 - $0.10   $0.84 - $0.91  
Non-GAAP net income per diluted share   $1.33 - $1.35   $5.17 - $5.26  
Diluted weighted average shares outstanding used in computing net income per share   52.5     52.8    
             
Calculation of Projected 2018 EBITDA and Adjusted EBITDA (unaudited)  
(In millions)  
             
      Three Months Ended   Twelve Months Ended  
      September 30, 2018   December 31, 2018  
             
GAAP Net income   $4 - $5   $44 - $48  
  Add Back:          
  Interest and other (income) expense, net   2     5    
  Income tax provision (benefit)   4     20 - 22  
  Amortization of acquired intangibles   61     243    
  Depreciation and amortization expense   15     56    
EBITDA   85 - 87   368 - 374  
  Add Back:          
  Effect of acquisition accounting on fair value of acquired deferred revenue   1     4    
  Stock-based compensation expense   20     72    
  Acquisition and litigation related costs    5     24    
  Gain on disposition of assets   --     (34 )  
Adjusted EBITDA   $111 - $113   $434 - $440  
  EBITDA Margin   29 %   31 %  
  Adjusted EBITDA Margin   37 %   37 %  
             

 

LogMeIn, Inc.  
Condensed Consolidated Statements of Cash Flows (unaudited)  
(In thousands)
 
                         
        Three Months Ended June 30,   Six Months Ended June 30,    
          2017       2018       2017       2018      
Cash flows from operating activities                    
Net income (loss)   $     14,846      $     6,554      $     (3,718 )   $     36,266       
Adjustments to reconcile net income (loss) to net cash                    
  provided by operating activities:                    
  Stock-based compensation       16,296          17,166          30,490          33,132       
  Depreciation and amortization       58,302          75,070          98,586          146,361       
  Gain on disposition of assets, net of transaction costs       -          -          -          (36,281 )    
  Benefit from deferred income taxes       (16,021 )       (12,677 )       (32,477 )       (22,030 )    
  Other, net       1,135          328          1,374          793       
  Changes in assets and liabilities, excluding effect of acquisitions and dispositions:                  
  Accounts receivable       (3,130 )       12,910          (3 )       22,730       
  Prepaid expenses and other current assets       (5,688 )       3,187          (12,586 )       7,955       
  Other assets       68          (5,166 )       156          (7,934 )    
  Accounts payable       7,307          1,858          11,194          11,503       
  Accrued liabilities       (2,492 )       3,150          38,044          22,961       
  Deferred revenue       15,423          (2,901 )       59,752          35,784       
  Other long-term liabilities       869          3,750          1,973          5,962       
  Net cash provided by operating activities (1)       86,915          103,229          192,785          257,202       
Cash flows from investing activities                    
Proceeds from sale or disposal or maturity of marketable securities       4,850          -          31,103          -       
Purchases of property and equipment       (6,110 )       (6,381 )       (9,804 )       (13,629 )    
Intangible asset additions       (7,678 )       (10,766 )       (13,709 )       (17,862 )    
Cash paid for acquisition, net of cash acquired       -          (343,351 )       24,215          (343,351 )    
Restricted cash acquired through acquisitions       -          -          917          -       
Proceeds from disposition of assets       -          -          -          42,394       
  Net cash provided by (used in) investing activities       (8,938 )       (360,498 )       32,722          (332,448 )    
Cash flows from financing activities                    
Borrowings (repayments) under credit facility       (30,000 )       200,000          (30,000 )       200,000       
Proceeds from issuance of common stock upon option exercises       869          958          5,354          1,022       
Payments of withholding taxes in connection with restricted stock unit vesting       (21,834 )       (18,723 )       (29,455 )       (27,954 )    
Payment of debt issuance costs       (200 )       -          (1,993 )       -       
Dividends paid on common stock       (13,156 )       (15,639 )       (25,936 )       (31,377 )    
Purchase of treasury stock       (22,150 )       (68,202 )       (29,615 )       (115,103 )    
  Net cash provided by (used in) financing activities       (86,471 )       98,394          (111,645 )       26,588       
Effect of exchange rate changes on cash, cash equivalents and restricted cash       3,010          (7,546 )       5,561          (4,890 )    
Net increase (decrease) in cash, cash equivalents and restricted cash       (5,484 )       (166,421 )       119,423          (53,548 )    
Cash, cash equivalents and restricted cash, beginning of period       268,242          367,082          143,335          254,209       
Cash, cash equivalents and restricted cash, end of period   $     262,758      $     200,661      $     262,758      $     200,661       
                         
(1 ) Cash flows from operating activities includes the following acquisition, disposition, and litigation-related payments:            
  (a) Cash flows from operating activities includes transaction, transition, and integration-related payments for acquisitions and dispositions of $11.9 million and $7.2 million for the three months ended June 30, 2017 and 2018, respectively and $32.8 million and $13.7 million for the six months ended June 30, 2017 and 2018, respectively.  
     
  (b) Cash flows from operating activities includes acquisition-related retention-based bonus payments of $0.6 million and $0.7 million for the three and six months ended June 30, 2018, respectively related to the Company's 2016, 2017 and 2018 acquisitions.  
     
  (c) Cash flows from operating activities includes litigation-related payments of $0.1 million and $0.3 million for the three months ended June 30, 2017 and 2018, respectively, and $0.3 million and $1.1 million for the six months ended June 30, 2017 and 2018, respectively.  
     
  Adjusted cash flows from operations adds back the items in (a), (b) and (c) above and sums to $98.9 million and $111.3 million for the three months ended June 30, 2017 and 2018, respectively, and $225.9 million and $272.7 million for the six months ended June 30, 2017 and 2018, respectively.  
               
                         

 

 


 

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