OPEN TEXT CORP - FORM 8-K - EX-99.1 - January 5, 2015

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Exhibit 99.1

Disclosures Regarding OpenText

The following chart provides unaudited financial data for the last twelve months (“LTM”) ended September 30, 2014 for Open Text Corporation and its consolidated subsidiaries (“OpenText” or “the “Company”).

 

     LTM Ended
September 30, 2014		  
(In thousands)    (Unaudited)  

Revenue

    $ 1,754,026   

EBITDA(1)

    $ 540,922   

EBITDA Margin(1)(2)

      30.8 % 

Adjusted EBITDA(1)

    $ 600,275   

Adjusted EBITDA Margin(1)(3)

      34.2 % 

Net cash provided by operating activities

    $ 475,734   

The following chart provides unaudited financial metrics that are not calculated in accordance with U.S. GAAP (“Non-GAAP”) for OpenText.

 

     Fiscal Year Ended June 30,     Three Months Ended September 30,  
(In thousands)    2012     2013     2014     2013     2014  
Other Financial Data (Unaudited):           

EBITDA(1)

    $ 312,394      $ 382,043      $ 490,697      $ 99,234      $ 149,459   

EBITDA Margin(1)(2)

      25.9 %      28.0 %      30.2 %      30.6 %      32.9 % 

Adjusted EBITDA(1)

    $ 351,465      $ 424,125      $ 537,976      $ 105,651      $ 167,950   

Adjusted EBITDA Margin(1)(3)

      29.1 %      31.1 %      33.1 %      32.6 %      37.0 % 

 

(1) In addition to those Non-GAAP measures included, and reconciled, in OpenText’s reports filed under the Securities Exchange Act of 1934, as amended, this disclosure contains the following Non-GAAP financial metrics: earnings (loss) before interest, taxes, depreciation and amortization (“EBITDA”); Adjusted EBITDA (“Adjusted EBITDA”), which further adjusts EBITDA to exclude stock-based compensation, other income (expense), net and special charges related to restructurings and acquisitions; and EBITDA Margin and Adjusted EBITDA Margin which are calculated as EBITDA or Adjusted EBITDA, as applicable, divided by revenues as determined in accordance with U.S. GAAP.

This disclosure provides reconciliations of these measures to the most directly comparable measure under U.S. GAAP. OpenText believes that EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin improve comparability from period to period by excluding the distorting effect of certain non-operational charges. The use of the term “non-operational charge” is defined for this purpose as an expense that does not impact the ongoing operating decisions taken by the Company’s management. OpenText believes that EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin are measures widely used by securities analysts, investors and others to evaluate the financial performance of companies in OpenText’s industry. Other companies may calculate EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin differently, and, therefore, OpenText’s measures may not be comparable to similarly titled measures of other companies. EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin are not measures of financial performance or liquidity under U.S. GAAP and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with U.S. GAAP. Items excluded from EBITDA and Adjusted EBITDA, as noted in the following table, are significant and necessary components of the operations of OpenText’s business. Given the foregoing limitations, EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin should only be used as supplemental measures of OpenText’s operating performance.

The following chart provides unaudited reconciliations of EBITDA and Adjusted EBITDA to net income for the following periods presented:

 

     Fiscal Year Ended June 30,     Three Months Ended
September 30,		      LTM Ended
September 30,		  
(In thousands)    2012     2013      2014     2013     2014      2014  

Net income attributable to OpenText

    $ 125,174      $ 148,520       $ 218,125      $ 30,630      $ 64,626       $ 252,121   

Add:

               

Income tax

      12,171        29,690         58,461        18,954        17,402         56,909   

Interest expense, net

      15,564        16,982         27,934        4,385        11,099         34,648   

Amortization of intangible assets

      137,898        162,355         150,940        38,807        44,090         156,223   

Depreciation

      21,587        24,496         35,237        6,458        12,242         41,021   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

EBITDA

    $ 312,394      $ 382,043       $ 490,697      $ 99,234      $ 149,459       $ 540,922   

Add:

               

Stock-based compensation

      18,097        15,575         19,906        4,612        4,449         19,743   

Special charges(a)

      24,523        24,034         31,314        3,731        4,169         31,752   

Other expense (income)(b)

      (3,549 )      2,473         (3,941 )      (1,926 )      9,873         7,858   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Adjusted EBITDA

    $ 351,465      $ 424,125       $ 537,976      $ 105,651      $ 167,950       $ 600,275   

 

(a) See the note entitled “Special Charges” to OpenText’s audited consolidated financial statements and OpenText’s unaudited condensed consolidated financial statements for the periods presented.
(b) See the note entitled “Other Income (Expense)” to OpenText’s audited consolidated financial statements for the periods presented.

 

(2) EBITDA Margin is calculated as EBITDA divided by revenues as determined in accordance with U.S. GAAP.
(3) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenues as determined in accordance with U.S. GAAP.

OPEN TEXT CORP Reports