Attached files

file filename
8-K - FORM 8-K - LIFELOCK, INC.d489674d8k.htm

Exhibit 99.1

LifeLock Announces 2012 Fourth Quarter and Year-End Results

Record quarterly revenue of $78.8 million, up 49% year-over-year

Q4 cumulative ending members of approximately 2.5 million, up 20% year-over-year

Q4 monthly average revenue per member of $9.68, up 12% year-over-year

TEMPE, AZ (February 20, 2013) – LifeLock, Inc. (NYSE: LOCK), an industry leader in identity theft protection, today announced financial results for the fourth quarter and fiscal year ended December 31, 2012.

Fourth Quarter 2012 Financial Highlights:

 

   

Revenue: Total revenue was $78.8 million for the fourth quarter of 2012, up 49% from $53.0 million for the fourth quarter of 2011. Consumer revenue was $70.8 million for the fourth quarter of 2012, up 34% from $53.0 million for the fourth quarter of 2011. Enterprise revenue was $8.0 million for the fourth quarter of 2012.

 

   

Income from Operations: Income from operations was $5.7 million for the fourth quarter of 2012, compared to $7.0 million for the fourth quarter of 2011.

 

   

Net Income: Net income was $4.1 million for the fourth quarter of 2012, up from $2.3 million for the fourth quarter of 2011. Net income per diluted share was $0.01 for the fourth quarter of 2012 based on 90.8 million weighted-average shares outstanding, compared with a net loss per diluted share of $0.03 for the fourth quarter of 2011 based on 18.9 million weighted-average shares outstanding.

 

   

Adjusted Net Income: Adjusted net income was $8.9 million for the fourth quarter of 2012, up from $7.8 million for the fourth quarter of 2011. Adjusted net income per diluted share was $0.10 for the fourth quarter of 2012 based on 92.2 million weighted-average shares outstanding, compared with $0.15 per diluted share for the fourth quarter of 2011 based on 53.1 million weighted-average shares outstanding.

 

   

Adjusted EBITDA: Adjusted EBITDA was $11.4 million for the fourth quarter of 2012, up from $8.9 million for the fourth quarter of 2011.

 

   

Cash Flow: Cash flow from operations was $7.7 million for the fourth quarter of 2012, leading to free cash flow of $3.7 million after taking into consideration $4.0 million of capital expenditures. This compares with cash flow from operations of $6.1 million and free cash flow of $5.5 million, after taking into consideration $0.6 million of capital expenditures, for the fourth quarter of 2011.

 

   

Balance Sheet: Cash and cash equivalents at the end of the fourth quarter of 2012 was $134.2 million, up from $76.7 million at the end of the third quarter of 2012. As of December 31, 2012, we had no outstanding debt.

“We are very pleased with our financial results for the fourth quarter, which exceeded our expectations on both the top and bottom line,” said Todd Davis, LifeLock’s Chairman and CEO. “The combination of our industry leading brand, the growing awareness of identity theft, and our superior product portfolio


drove strong performance across each of our key operating metrics. The success of our LifeLock Ultimate service, in particular, continues to power our growth and we are optimistic about our outlook for 2013 based on our strong business momentum entering the year.”

Fourth Quarter 2012 Business Highlights:

 

   

Recorded the 31st consecutive quarter of sequential growth in revenue and cumulative ending members.

 

   

Added approximately 198,000 gross new members in the fourth quarter of 2012 and ended the quarter with approximately 2.5 million members.

 

   

Improved retention rate to 87.1% for the fourth quarter of 2012, compared with 82.7% for the fourth quarter of 2011.

 

   

Increased monthly average revenue per member to $9.68 for the fourth quarter of 2012 from $8.67 for the fourth quarter of 2011.

 

   

Awarded first place overall in the 6th annual Javelin Strategy and Research identity protection service scorecard. In addition, the awards recognized the proactive nature of LifeLock Ultimate by naming it Best in Detection.

 

   

Added to the Russell 2000, 3000, and Global Indexes.

Fiscal Year 2012 Financial Highlights:

 

   

Revenue: Total revenue was $276.4 million for 2012, up 43% from $193.9 million for 2011. Consumer revenue was $254.7 million for 2012, up 31% from $193.9 million for 2011. Enterprise revenue was $21.8 million for 2012.

 

   

Income from Operations: Income from operations was $13.1 million for 2012, up from $4.8 million for 2011.

 

   

Net Income: Net income was $23.5 million for 2012, up from a net loss of $4.3 million for 2011. Net income per diluted share was $0.09 for 2012 based on 62.2 million weighted-average shares outstanding, compared with a net loss of $1.24 per diluted share for 2011 based on 18.7 million weighted-average shares outstanding.

 

   

Adjusted Net Income: Adjusted net income was $22.0 million for 2012, up from $7.7 million for 2011. Adjusted net income per diluted share was $0.30 for 2012 based on 72.6 million weighted-average shares outstanding, compared with $0.15 per diluted share for 2011 based on 52.4 million weighted-average shares outstanding.

 

   

Adjusted EBITDA: Adjusted EBITDA was $30.3 million for 2012, up from $11.9 million for 2011.

 

   

Cash Flow: Cash flow from operations was $48.4 million for 2012, leading to free cash flow of $40.9 million after taking into consideration $7.5 million of capital expenditures. This compares with cash flow from operations of $24.3 million and free cash flow of $22.3 million, after taking into consideration $2.0 million of capital expenditures, for 2011.


A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Guidance:

As of February 20, 2013, we are initiating guidance for our first quarter of 2013 as well as the full year 2013.

 

   

First Quarter 2013 Guidance: Total revenue is expected to be in the range of $79.0 million to $81.0 million. Adjusted net income per share is expected to be in the range of $(0.02) to $0.00 based on approximately 97 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of $(0.5) million to $1.5 million.

 

   

Full Year 2013 Guidance: Total revenue is expected to be in the range of $335 million to $345 million. Adjusted net income per share is expected to be in the range of $0.30 to $0.35 based on approximately 99 million weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of $37.0 million to $42.0 million. Free cash flow is expected to be in the range of $42 million to $47 million.

Conference Call Details:

 

   

What: LifeLock fourth quarter and fiscal year 2012 financial results.

 

   

When: Wednesday, February 20, 2013 at 2PM PT (5PM ET).

 

   

Dial in: To access the call in the United States, please dial (866) 831-6247, and for international callers dial (617) 213-8856. Callers may provide confirmation number 16059559 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.

 

   

Webcast: http://investor.lifelock.com/ (live and replay)

 

   

Replay: A replay of the call will be available via telephone for seven days, beginning two hours after the call. To listen to the telephone replay in the U.S., please dial (888) 286-8010, and for international callers dial (617) 801-6888 and enter access code 95505038.

About LifeLock

LifeLock, Inc. (NYSE:LOCK) is a leading provider of proactive identity theft protection services for consumers and identity risk assessment and fraud protection services for enterprises. Since 2005, LifeLock has been relentlessly protecting identities by providing consumers with the tools and confidence they need to help protect themselves from identity theft. In October 2012, Javelin Strategy & Research named LifeLock Ultimate™ a “Best in Class Overall” identity theft protection solution and also named it “Best in Detection”. In March 2012, LifeLock further demonstrated its commitment to combating identity fraud with the purchase of ID Analytics, Inc., a leader in enterprise identity risk management that provides visibility into identity risk and credit worthiness. ID Analytics, Inc. currently operates as a wholly owned subsidiary of LifeLock, Inc.


Forward-Looking Statements

This press release contains “forward-looking” statements, as that term is defined under the federal securities laws, including statements regarding our brand, our product portfolio, the success of our LifeLock Ultimate service, our growth, our outlook for 2013, the identity theft protection industry, market awareness of the growing risk of identity theft and fraud, and our expected total revenue, adjusted net income and adjusted net income per share, adjusted EBITDA, and free cash flow for the first quarter of 2013 and for fiscal year 2013. These forward-looking statements are based on our current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to, risks associated with our ability to achieve or maintain profitability on an annual basis; our ability to protect our customers’ confidential information; our ability to maintain and enhance our brand recognition and reputation; the competitive nature of the industries in which we conduct our business; our ability to maintain access to data sources; our ability to retain our existing customers and attract new customers; our ability to improve our services and develop and introduce new services with broad appeal; our ability to maintain existing and secure new relationships with strategic partners; the effects of laws, regulations, and enforcement; the outcome of any litigation or regulatory proceeding; our ability to protect our intellectual property and not infringe on the intellectual property of others; and other “Risk Factors” set forth in our most recent filings with the Securities and Exchange Commission (the “SEC”).

Further information on these and other factors that could affect our financial results and the forward-looking statements in this press release is included in the filings we make with the SEC from time to time, including our Registration Statement on Form S-1, as amended, and our Form 10-Q for the quarter ended September 30, 2012, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Copies of these documents may be obtained by visiting our Investor Relations website at http://investor.lifelock.com/ or the SEC’s website at www.sec.gov.

We assume no obligation and do not intend to update these forward-looking statements, except as required by law.

Non-GAAP Financial Measures

Our reported results include certain non-GAAP financial measures, including adjusted net income (loss), adjusted net income (loss) per share, adjusted EBITDA, and free cash flow. We defined adjusted net income (loss) as net income (loss) excluding amortization of intangible assets, change in fair value of warrant liabilities, change in fair value of embedded derivatives, income tax benefits resulting from the


acquisition of ID Analytics, and share-based compensation. We define adjusted net income (loss) per share as adjusted net income per share of stock assuming all preferred stock converted into common stock at the later of the start of the period or the date of issuance and excluding the impact of warrants to purchase Series E and Series E-2 preferred stock. We define adjusted EBITDA as net income (loss) excluding depreciation and amortization, interest expense, interest income, change in fair value of warrant liabilities, change in fair value of embedded derivative, other income (expense), provision for income taxes, and share-based compensation. We define free cash flow as net cash provided by (used in) operating activities less net cash used in investing activities for acquisitions of property and equipment.

We have included adjusted net income (loss), adjusted net income (loss) per share, and adjusted EBITDA in this press release because they are key measures used by us to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted net income (loss) and adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, adjusted EBITDA is a key financial measure used in determining management’s incentive compensation.

We have included free cash flow in this press release because it typically presents a more conservative measure of cash flow as purchases of property and equipment are necessary components of ongoing operations. We believe that this non-GAAP financial measure is useful in evaluating our business because free cash flow reflects the cash surplus available to fund the expansion of our business after payment of capital expenditures relating to the necessary components of ongoing operations. We also believe that the use of free cash flow provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Although adjusted net income (loss), adjusted EBITDA, and free cash flow are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

We have not reconciled adjusted net income per share guidance to net income per share guidance or adjusted EBITDA guidance to net income guidance because we do not provide guidance for share-based compensation expense, provision for income taxes, interest income, interest expense, change in fair value of warrant liabilities, change in fair value of embedded derivatives, other income and expenses, depreciation expense or amortization of intangible assets, which are reconciling items between net income (loss) and adjusted net income and net income (loss) and adjusted EBITDA. As items that impact net income (loss) are out of our control and/or cannot be reasonably predicted, we are unable to provide such guidance. Accordingly, reconciliation to net income (loss) is not available without unreasonable effort. For a reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see the reconciliation tables included in this press release.


Media Contact:

Media@lifelock.com

480-457-2032

Investor Relations Contact:

Greg Kleiner

ICR for LifeLock

Investor.relations@lifelock.com

480-457-5000


Supplemental Financial Information

LifeLock, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012     2011     2012     2011  

Revenue

        

Consumer revenue

   $ 70,775      $ 52,955      $ 254,678      $ 193,949   

Enterprise revenue

     8,041        —          21,750        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     78,816        52,955        276,428        193,949   

Cost of services

     22,189        16,151        79,916        62,630   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     56,627        36,804        196,512        131,319   

Expenses:

        

Sales and marketing

     31,558        21,025        122,989        91,217   

Technology and development

     8,607        4,382        29,543        17,749   

General and administrative

     8,795        4,397        24,629        17,510   

Amortization of acquired intangible assets

     1,967        —          6,258        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     50,927        29,804        183,419        126,476   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     5,700        7,000        13,093        4,843   

Other income (expense):

        

Interest expense

     (1,538     (16     (3,677     (231

Interest income

     24        1        30        8   

Change in fair value of warrant liabilities

     —         
(4,534

    3,117        (8,658

Change in fair value of embedded derivative

     —          —          (2,785     —     

Other

     (2     (5     (5     (5
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

     (1,516     (4,554     (3,320     (8,886
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before provision for income taxes

     4,184        2,446        9,773        (4,043

Income tax (benefit) expense

     104        118        (13,730     214   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     4,080        2,328        23,503        (4,257

Accretion of convertible redeemable preferred stock

     (419     (2,922     (9,378     (18,926

Beneficial conversion feature on convertible redeemable preferred stock

     (2,452     —          (2,452     —     

Net income allocable to convertible redeemable preferred stockholders

     (55     —          (5,504     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available (loss attributable) to common stockholders

   $ 1,154      $ (594   $ 6,169      $ (23,183
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available (loss attributable) per share to common stockholders:

        

Basic

   $ 0.01      $ (0.03   $ 0.18      $ (1.24

Diluted

   $ 0.01      $ (0.03   $ 0.09      $ (1.24

Weighted-average common shares outstanding:

        

Basic

     85,458        18,925        35,082        18,725   

Diluted

     90,839        18,925        62,191        18,725   


LifeLock, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

     December 31,  
     2012     2011  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 134,197      $ 28,850   

Restricted cash

     —          398   

Trade and other receivables, net

     7,560        1,446   

Prepaid expenses and other current assets

     5,753        5,637   
  

 

 

   

 

 

 

Total current assets

     147,510        36,331   

Property and equipment, net

     9,701        4,049   

Goodwill

     129,428        —     

Intangible assets, net

     51,242        —     

Other non-current assets

     1,707        1,680   
  

 

 

   

 

 

 

Total assets

   $ 339,588      $ 42,060   
  

 

 

   

 

 

 

Liabilities, convertible redeemable preferred stock and stockholders’ equity (deficit)

    

Current liabilities:

    

Accounts payable

   $ 1,151      $ 4,084   

Accrued expenses and other liabilities

     27,329        18,300   

Deferred revenue

     90,877        70,020   
  

 

 

   

 

 

 

Total current liabilities

     119,357        92,404   

Other non-current liabilities

     265        521   

Preferred stock warrant liabilities

     —          18,195   
  

 

 

   

 

 

 

Total liabilities

     119,622        111,120   

Commitments and contingencies

    

Convertible redeemable preferred stock

     —          145,207   

Stockholders’ deficit:

    

Common stock

     87        19   

Additional paid-in capital

     439,883        17,391   

Accumulated deficit

     (220,004     (231,677
  

 

 

   

 

 

 

Total stockholders’ equity (deficit )

     219,966        (214,267
  

 

 

   

 

 

 

Total liabilities, convertible redeemable preferred stock and stockholders’ equity (deficit)

   $ 339,588      $ 42,060   
  

 

 

   

 

 

 


LifeLock, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

     Twelve Months Ended
December 31,
 
     2012     2011  

Operating activities

    

Net income (loss)

   $ 23,503      $ (4,257

Adjustment to reconcile net income (loss) to net cash provided by operating activities:

    

Depreciation and amortization

     10,427        3,740   

Write-off of deferred financing costs from early payoff of debt

     1,443        —     

Share-based compensation

     6,758        3,285   

Provision for doubtful accounts

     46        (28

Change in fair value of warrant liabilities

     (3,117     8,658   

Change in fair value of embedded derivative

     2,785        —     

Deferred income tax benefit

     (14,185     —     

Other

     5        5   

Change in operating assets and liabilities:

    

Trade and other receivables

     (2,766     (1,067

Prepaid expenses and other current assets

     1,334        (901

Other non-current assets

     (1,305     (287

Accounts payable

     (2,945     1,677   

Accrued expenses and other liabilities

     5,913        542   

Deferred revenue

     20,782        13,440   

Other non-current liabilities

     (255     (463
  

 

 

   

 

 

 

Net cash provided by operating activities

     48,423        24,344   

Investing activities

    

Acquisition of ID Analytics, net of cash acquired

     (157,430     —     

Acquisition of property and equipment

     (7,498     (2,031

Decrease in restricted cash

     1,748        500   
  

 

 

   

 

 

 

Net cash used in investing activities

     (163,180     (1,531

Financing activities

    

Proceeds from:

    

Term loan

     68,000        —     

Initial public offering, net of offering costs

     125,663        —     

Issuance of convertible redeemable preferred stock, net of offering costs

     102,165        —     

Issuance of warrants

     4,373        —     

Stock option exercises

     298        1,752   

Payments for:

    

Term loan

     (68,000     —     

Revolving line of credit

     —          (13,010

Obligations under capital lease

     —          (154

Distribution to Series E-1 Preferred Stock Holders on IPO

     (10,719     —     

Debt issuance costs

     (1,676     (132
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     220,104        (11,544
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     105,347        11,269   

Cash and cash equivalents at beginning of period

     28,850        17,581   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 134,197      $ 28,850   
  

 

 

   

 

 

 


Share Based Compensation

(in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2012      2011      2012      2011  

Cost of services

   $ 211       $ 75       $ 648       $ 309   

Sales and marketing

     341         207         1,053         655   

Technology and development

     503         223         1,711         783   

General and administrative

     1,709         418         3,346         1,538   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total share-based compensation expense

   $ 2,764       $ 923       $ 6,758       $ 3,285   
  

 

 

    

 

 

    

 

 

    

 

 

 

Key Financial Metrics

(in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2012      2011      2012      2011  

Revenue

           

Consumer revenue

   $ 70,775       $ 52,955       $ 254,678       $ 193,949   

Enterprise revenue

     8,041         —           21,750         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     78,816         52,955         276,428         193,949   

Adjusted net income

     8,936         7,785         22,002         7,686   

Adjusted EBITDA

     11,404         8,927         30,278         11,868   

Free cash flow

     3,710         5,546         40,925         22,313   

Key Operating Metrics

(in thousands, except percentages and per member data)

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012     2011     2012     2011  

Cumulative ending members

     2,480        2,075        2,480        2,075   

Gross new members

     198        206        762        704   

Member retention rate

     87.1     82.7     87.1     82.7

Average cost of acquisition per member

   $ 142      $ 103      $ 150      $ 130   

Monthly average revenue per member

   $ 9.68      $ 8.67      $ 9.28      $ 8.54   

Enterprise transactions

     64,265        56,421        227,039        184,012   


Reconciliation of Net Income (Loss) to Adjusted Net Income

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2012      2011      2012     2011  

Net income (loss)

   $ 4,080       $ 2,328       $ 23,503      $ (4,257

Amortization of acquired intangible assets

     1,967         —           6,258        —     

Change in fair value of warrant liabilities

     —           4,534         (3,117     8,658   

Change in fair value of embedded derivative

     —           —           2,785        —     

Tax benefit from acquisition

     125         —           (14,185     —     

Share-based compensation

     2,764         923         6,758        3,285   
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted net income

   $ 8,936       $ 7,785       $ 22,002      $ 7,686   
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted net income available per share to common stockholders:

          

Non-GAAP Basic

   $ 0.10       $ 0.16       $ 0.33      $ 0.16   

Non-GAAP Diluted

   $ 0.10       $ 0.15       $ 0.30      $ 0.15   

Weighted average common shares outstanding:

          

Non-GAAP Basic

     85,458         48,165         66,381        47,965   

Non-GAAP Diluted

     92,174         53,064         72,575        52,410   

Reconciliation of Diluted Shares to Non-GAAP Diluted Shares

(in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
     Twelve Months Ended
December 31,
 
     2012      2011      2012     2011  

Diluted shares

     90,839         18,925         62,191        18,725   

Assumed preferred stock conversion

     1,335         29,240         8,770        29,240   

Dilutive securities excluded due to net loss

     —           4,899         3,586        4,445   

Other dilutive equity awards excluded

     —           —           (1,972     —     
  

 

 

    

 

 

    

 

 

   

 

 

 

Non-GAAP diluted shares

     92,174         53,064         72,575        52,410   
  

 

 

    

 

 

    

 

 

   

 

 

 

Reconciliation of Diluted EPS to Non-GAAP Diluted EPS

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012      2011     2012     2011  

GAAP diluted earnings (loss) per share

   $ 0.01       $ (0.03   $ 0.09      $ (1.24

Net income attributable to participating securities

     0.03         0.06        0.25        0.36   

Non-GAAP adjustments to net income

     0.06         0.10        (0.02     0.23   

Non-GAAP adjustments to diluted shares

     —           0.02        (0.02     0.80   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP diluted adjusted net income per share

   $ 0.10       $ 0.15      $ 0.30      $ 0.15   
  

 

 

    

 

 

   

 

 

   

 

 

 


Reconciliation of Net Income (Loss) to Adjusted EBITDA

(in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012     2011     2012     2011  

Net income (loss)

   $ 4,080      $ 2,328      $ 23,503      $ (4,257

Depreciation and amortization

     2,940        1,004        10,427        3,740   

Interest expense

     1,538        16        3,677        231   

Interest income

     (24     (1     (30     (8

Change in fair value of warrant liabilities

     —          4,534        (3,117     8,658   

Change in fair value of embedded derivative

     —          —          2,785        —     

Other income and expense

     2        5        5        5   

Income tax (benefit) expense

     104        118        (13,730     214   

Share-based compensation

     2,764        923        6,758        3,285   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 11,404      $ 8,927      $ 30,278      $ 11,868   
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

(in thousands)

(Unaudited)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012     2011     2012     2011  

Net cash provided by operating activities

   $ 7,702      $ 6,103      $ 48,423      $ 24,344   

Acquisitions of property and equipment

     (3,992     (557     (7,498     (2,031
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ 3,710      $ 5,546      $ 40,925      $ 22,313