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EX-99.1 - EX-99.1 - Diligent Corpa16-5440_1ex99d1.htm

Exhibit 99.2

 

 

Diligent Corporation Fourth Quarter and Fiscal Year 2015 Financial Results

 

Fourth Quarter total revenue of $US 27.5 million, up 24% year-over-year

Fiscal Year 2015 total revenue of $US 99.3 million, up 20% year-over-year

 

February 29, 2016 —Diligent Corporation (NZX: DIL) (www.diligent.com), the leading provider of secure online collaboration and document sharing solutions for boards, committees and leadership teams, today announced financial results for the fourth quarter and fiscal year ended December 31, 2015.

 

Fourth Quarter 2015 Financial Highlights

 

·                  Revenue: For the quarter ended December 31, 2015, total revenue was $US 27.5 million, an increase of 24% compared with $US 22.2 million in the fourth quarter of 2014. Fourth quarter 2015 revenue was negatively impacted by $US 0.5 million due to the strengthening of the U.S. dollar as compared to most non-U.S. currencies in which Diligent operates. On a constant currency basis, revenue in the fourth quarter increased 26% compared to the fourth quarter of 2014.

 

·                  Americas: For the quarter ended December 31, 2015, revenue from the Americas region was $19.2 million, an increase of 22% compared with $15.7 million in the prior year period. The Americas represented 70% of total revenue in the fourth quarter.

 

·                  EMEA: Revenue from the EMEA region was $5.7 million in the fourth quarter of 2015, an increase of 27% compared with $4.5 million in the prior year period. EMEA represented 21% of total revenue in the fourth quarter.

 

·                  Asia Pacific: The Asia Pacific region contributed $2.6 million of revenue in the fourth quarter, representing an increase of 30% compared with $2.0 million in the prior year period. Asia Pacific represented 9% of total revenue in the quarter.

 

·                  Gross Profit: Gross profit for the fourth quarter was $US 20.5 million, an increase of 18% compared with $US 17.4 million in the fourth quarter of 2014. Gross margin was 74.6% compared with 78.4% in the fourth quarter of 2014.

 

·                  EBITDA: For the quarter ended December 31, 2015, EBITDA was $US 2.8 million compared with $US 4.2 million in the fourth quarter of 2014.

 

·                  Adjusted EBITDA: For the quarter ended December 31, 2015, Adjusted EBITDA was $US 5.6 million compared with $US 5.5 million in the fourth quarter of 2014. Adjusted EBITDA margin was 20.6% compared with 24.6% in the fourth quarter of 2014.

 

·                  Net Income: For the quarter ended December 31, 2015, net income was $US 1.5 million compared with $US 1.8 million in the fourth quarter of 2014. Diluted earnings per share were $US 0.01, compared with $US 0.01 in the fourth quarter of 2014.

 



 

·                  Adjusted Net Income: Adjusted Net Income in the fourth quarter of 2015 was $US 3.5 million, or $0.03 per diluted share, compared with $US 2.5 million, or $0.02 per diluted share, in the prior year period.

 

Fourth Quarter and Recent Business Highlights

 

·                  Customer Agreements and Diligent Boards Users: At December 31, 2015, total customer agreements were approximately 3,900 (net of cancellations) compared with approximately 3,000 at December 31, 2014. At December 31, 2015, the number of contracted Diligent Boards users was over 120,000 users compared to over 92,000 users at December 31, 2014.

 

·                  Revenue Retention Rate: In the fourth quarter, Diligent’s annual revenue retention rate, excluding upsells into the existing customer base, continued to exceed 95%. Diligent’s annual revenue retention rate, including upsells into the existing customer base, exceeded 100%(1).  Customers being acquired, where there was a resultant dissolution of the Board of Directors, was the most significant driver of customer attrition in the fourth quarter of 2015.

 

·                  Diligent D&O solution: As of December 31, 2015, Diligent had 80 customers signed to its Diligent D&O premium add-on solution, almost all who were signed in the fourth quarter.  Diligent began offering the Diligent D&O solution to customers in early September 2015.

 

·                  Diligent Teams: As expected, in the fourth quarter Diligent continued to make the Diligent Teams product available to customers on a limited basis. Diligent continues to add feature enhancements to the solution based on feedback from early adopters.

 

·                  Proposed Acquisition of Diligent by Insight Venture Partners: On February 15, 2016 Diligent entered into a definitive agreement to be acquired by affiliates of funds managed by Insight Venture Partners. On the terms and subject to the conditions set forth in the agreement, Diligent common stockholders will receive $US 4.90 in cash for each share of Diligent common stock. The transaction is subject to the approval of a majority of the outstanding shares of Diligent common stock and preference shares, voting as one class; the approval of at least 60% of the outstanding Diligent preference shares, voting separately; regulatory approvals and other customary closing conditions, including that the existing directors will resign upon closing. The holders of Diligent’s preference shares, including Spring Street Partners, L.P., Diligent’s largest shareholder, have entered into voting agreements in support of the transaction.

 

Fiscal Year 2015 Financial Highlights

 

·                  Revenue: For the year ended December 31, 2015, total revenue was $US 99.3 million, an increase of 20% compared with $US 83.1 million in fiscal 2014. On a constant currency basis, fiscal year 2015 revenue increased 23% over the prior year.

 


(1)  Calculated as of a period end by starting with the annual contract value (ACV) from customers as of 12 months prior to such period end (Prior Period ACV) and a subscription term of at least 12 months. We then calculate ACV from the same customers as of the current period end (Current Period ACV). Finally, we divide the aggregate Current Period ACV for the trailing 12-month period by the aggregate Prior Period ACV for the trailing 12-month period to arrive at our annual revenue retention rate.

 



 

·                  Americas: For the year ended December 31, 2015, revenue from the Americas region was $69.4 million, an increase of 18% compared with $58.9 million in the prior year. The Americas represented 70% of total revenue in fiscal 2015.

 

·                  EMEA: Revenue from the EMEA region was $20.8 million in fiscal 2015, an increase of 22% compared with $17.1 million in the prior year. EMEA represented 21% of total revenue in fiscal 2015.

 

·                  Asia Pacific: Revenue from the Asia Pacific region was $9.1 million in fiscal 2015, an increase of 28% compared with $7.1 million in the prior year. Asia Pacific represented 9% of total revenue in fiscal 2015.

 

·                  Gross Profit: Gross profit for the year ended December 31, 2015, was $US 77.9 million, an increase of 19% compared with $US 65.4 million in the prior year. Gross margin was 78.5% compared with 78.8% in fiscal 2014.

 

·                  EBITDA: For the year ended December 31, 2015, EBITDA was $US 15.8 million compared with $US 17.9 million in the prior year.

 

·                  Adjusted EBITDA: For the year ended December 31, 2015, Adjusted EBITDA was $US 24.3 million compared with $US 24.6 million in the prior year. Adjusted EBITDA margin was 24.5% for fiscal year 2015, compared with 29.6% in the prior year.

 

·                  Net Income: For the year ended December 31, 2015, net income was $US 8.1 million compared with $US 8.9 million in prior year. Diluted earnings per share were $US 0.06, compared with $US 0.07 in the prior year.

 

·                  Adjusted Net Income: Adjusted Net Income the year ended December 31, 2015, was $US 14.2 million, compared with $US 12.9 million in the prior year. Adjusted Net Income per diluted share was $US 0.12, compared with $0.11 in fiscal 2014.

 

·                  Balance Sheet and Cash Flow: As of December 31, 2015, Diligent had $US 70.2 million in cash and cash equivalents and no external debt, an increase of approximately $US 1.4 million compared with cash and cash equivalents on September 30, 2015, and a decrease of approximately $US 0.6 million compared with cash and cash equivalents as of December 31, 2014.

 

The Company generated $US 21.2 million in cash from operations and invested $US 19.3 million in capital expenditures including $US 10.0 million for the acquisition of BoardLink.

 

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.”

 



 

Additional Information and Where to Find It

 

This press release does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communications relates to Diligent’s Fourth Quarter and Fiscal Year 2015 financial results.

 

In connection with the Merger, Diligent intends to file relevant materials with the SEC, including a preliminary proxy statement on Schedule 14A. Following the filing of a definitive proxy statement with the SEC, Diligent will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting of stockholders relating to the Merger. STOCKHOLDERS ARE URGED TO CAREFULLY READ THESE MATERIALS IN THEIR ENTIRETY (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT DILIGENT WILL FILE WITH THE SEC AND NZX WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER. The proxy statement and other relevant materials (when available), and any and all documents filed by Diligent with the SEC, may also be obtained for free at the SEC’s website at www.sec.gov and documents filed with NZX, may also be obtained for free at the NZX’s website www.nzx.com/markets/NZSX/securities/DIL. In addition, stockholders may obtain free copies of the documents filed with the SEC by Diligent at the Investor Relations section of Diligent’s website at www.diligent.com or by contacting Diligent’s Investor Relations Department at 0800 995 082 (NZ toll free) or +64 4 894 6912 (International).

 

Diligent and its directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the transactions contemplated by the Merger Agreement. Information regarding Diligent’s directors and executive officers is contained in Diligent’s proxy statement for its 2015 Annual Meeting of Stockholders, which was filed with the SEC on March 19, 2015, and supplemented on April 10, 2015. Stockholders may obtain more detailed information regarding the direct and indirect interests of Diligent and its executive officers and directors in the Merger by reading the preliminary and definitive proxy statements regarding the Merger, which will be filed with the SEC.

 

About Diligent

 

Diligent is the leading provider of secure corporate governance and collaboration solutions for boards and senior executives. Approximately 3,900 clients in more than 60 countries and on all seven continents rely on Diligent to provide secure, intuitive access to their most time-sensitive and confidential information, ultimately helping them make better decisions. The Diligent Boards (formerly Diligent Boardbooks) solution speeds and simplifies how board materials are produced, delivered and collaborated on via any device, removing the security concerns of doing this by courier, email and file sharing. Diligent is a publicly listed company (NZX: DIL). Visit www.diligent.com to learn more.

 



 

Non-GAAP Financial Measures

 

This earnings release presents EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share information, which are provided to investors to supplement the results of operations reported in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We define these terms as follows:

 

·                  Adjusted EBITDA: operating income before depreciation and amortization expense, stock based compensation expense, costs associated with the investigation and restatement of our historical financial statements, acquisition related costs and non-recurring costs related to our former CEO’s performance cash awards and restatement bonuses.

 

·                  Adjusted Net Income: net income before costs relating to non-cash stock based compensation, costs associated with the investigation and restatement of our historical financial statements, costs associated with acquisitions and non-recurring costs related to our former CEO’s performance cash awards and restatement bonuses, net of tax.

 

These supplemental measures of the Company’s performance are not required by, or presented in accordance with GAAP. The Company’s management uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to the corresponding GAAP measures, in evaluating the Company’s ongoing operational performance and trends and in comparing its financial measures with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items the Company excludes from, or includes in, its non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. Non-GAAP financial measures should not be considered in isolation from, or a substitute for, financial information prepared in accordance with GAAP. For a quantitative reconciliation of EBITDA, Adjusted EBITDA and Adjusted Net Income to the most directly comparable GAAP financial performance measure see Schedule 4: Reconciliation of GAAP to Non-GAAP Operating Results in this earnings release.

 

Safe Harbor Statement

 

Statements made in this press release that state Diligent’s or management’s intentions, beliefs, expectations, or predictions for the future are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. All forward looking-statements are only as of the date of this press release and Diligent undertakes no obligation to update or revise them. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause Diligent’s actual results to differ materially from those projected in such forward-looking statements. For example, if we do not successfully develop or introduce new product offerings, or enhancements to our existing Diligent Boards offerings, or keep pace with technological changes that impact the use of our product offerings, or suffer security breaches or service interruptions, we may lose existing customers or fail to attract new customers and our financial performance and revenue growth may suffer. Factors which could cause our actual results to differ materially from those projected in forward-looking statements include, without limitation, economic, competitive, regulatory and technological factors affecting Diligent Corporation’s operations, markets, products, services and other factors set forth in the Company’s Risk Factors included in its Annual Report on Form 10-K filed with the SEC on March 16, 2015, its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015, filed with the SEC on November 9, 2015, and other

 



 

filings with the SEC which are available at www.sec.gov for an extended discussion of the risks confronting our business.

 

On February 12, 2016 we entered into a definitive agreement and plan of merger to be acquired by affiliates of funds managed by Insight Venture Management LLC (“Insight”).  On the terms and subject to the conditions set forth in the merger agreement, Diligent stockholders will receive US $4.90 per share in cash for each share of Diligent common stock upon consummation of the acquisition.  Diligent’s entry into the merger agreement, its obligations thereunder, and the conditions to completion of the acquisition give rise to risks and uncertainties that could cause actual results and the timing of events to differ materially from those anticipated by the forward-looking statements in this press release, including:

 

·                  The effect of the announcement or pendency of the merger on our business relationships, employee retention and recruitment, operating results and business generally;

 

·                  Risks that the merger could divert management’s or employees’ attention from our ongoing business operations;

 

·                  The outcome of or expenses relating to any legal proceedings that may be instituted against Diligent and others related to the merger agreement;

 

·                  The amount of the costs, fees, expenses and charges related to the merger agreement or the merger;

 

·                  The risk that the merger agreement may be terminated in circumstances that require Diligent to pay Insight a termination fee of US$19,463,000;

 

·                  The failure by Insight to obtain the necessary equity and debt financing set forth in the commitments entered into in connection with the merger;

 

·                  Despite Insight’s obligation to use reasonable best efforts to obtain the financing contemplated by its debt commitment letter, there is a risk that the debt financing might not be obtained and that, in certain instances, Diligent’s only viable recourse would be the USD$33,365,000 termination fee payable by Insight to Diligent;

 

·                  The merger may not be consummated within the expected time period or at all because of a number of factors, including the failure to obtain stockholder approval; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; or the failure to satisfy closing conditions to the merger, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions; and

 

·                  Diligent’s stock price may decline significantly if the merger is not completed.

 

Investor inquiries:

 

Media inquiries:

 

 

 

Sonya Fynmore
NZ toll free: 0800 995 082
International: +64 4 894 6912
sfynmore@diligent.com

 

Geoff Senescall
Ph: + 64 21 481 234

 



 

Diligent Corporation

Schedule 1: Unaudited Condensed Consolidated Statements of Income

(in $US thousands, except per share amounts)

 

 

 

Quarter ended December 31,

 

Year ended December 31,

 

 

 

2015

 

2014

 

2015

 

2014

 

Revenues

 

$

27,459

 

$

22,161

 

$

99,309

 

$

83,054

 

Cost of revenues (excluding depreciation and amortization)

 

6,966

 

4,794

 

21,399

 

17,641

 

Gross profit

 

20,493

 

17,367

 

77,910

 

65,413

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing

 

6,490

 

4,307

 

21,995

 

13,849

 

General and administrative

 

8,068

 

5,560

 

27,396

 

23,135

 

Research and development

 

3,489

 

3,313

 

13,096

 

9,605

 

Depreciation and amortization

 

1,129

 

831

 

3,873

 

2,784

 

Restatement

 

 

 

 

916

 

Total operating expenses

 

19,176

 

14,011

 

66,360

 

50,289

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

1,317

 

3,356

 

11,550

 

15,124

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

3

 

(75

)

(1

)

(45

)

Other income

 

(3

)

 

68

 

 

Foreign exchange transaction loss

 

64

 

(50

)

(266

)

(75

)

Total other income (expense), net

 

64

 

(125

)

(199

)

(120

)

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

1,381

 

3,231

 

11,351

 

15,004

 

Income tax expense

 

(100

)

1,456

 

3,247

 

6,078

 

Net income

 

$

1,481

 

$

1,775

 

$

8,104

 

$

8,926

 

 

 

 

 

 

 

 

 

 

 

Accrued preferred stock dividends

 

(82

)

(82

)

(330

)

(335

)

Net income attributable to common stockholders

 

$

1,399

 

$

1,693

 

$

7,774

 

$

8,591

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

0.01

 

$

0.07

 

$

0.07

 

Diluted

 

$

0.01

 

$

0.01

 

$

0.06

 

$

0.07

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

117,840

 

117,791

 

117,386

 

117,109

 

Diluted

 

122,477

 

122,160

 

121,928

 

121,117

 

 



 

Diligent Corporation

Schedule 2: Unaudited Condensed Consolidated Balance Sheets

(in $US thousands, except share and per share amounts)

 

 

 

December 31,

 

December 31,

 

 

 

2015

 

2014

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

70,220

 

$

70,809

 

Accounts receivable, net

 

6,102

 

1,754

 

Deferred commissions

 

2,289

 

1,353

 

Prepaid expenses and other current assets

 

3,913

 

3,233

 

Income taxes receivable

 

713

 

 

Deferred tax assets

 

3,761

 

2,768

 

Total current assets

 

86,998

 

79,917

 

 

 

 

 

 

 

Property and equipment, net

 

12,697

 

12,203

 

Intangible assets, net

 

13,501

 

260

 

Deferred tax assets

 

7,667

 

6,804

 

Security deposits

 

815

 

801

 

Goodwill

 

498

 

 

Other non-current assets

 

309

 

436

 

Total assets

 

$

122,485

 

$

100,421

 

 

 

 

 

 

 

LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

3,681

 

$

2,197

 

Accrued expenses and other liabilities

 

12,491

 

11,468

 

Income taxes payable

 

 

1,552

 

Deferred revenue

 

39,545

 

32,238

 

Obligations under capital leases

 

62

 

623

 

Total current liabilities

 

55,779

 

48,078

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Deferred revenue, less current portion

 

12,734

 

12,138

 

Obligations under capital leases

 

 

34

 

Other non-current liabilities

 

2,750

 

3,899

 

Total non-current liabilities

 

15,484

 

16,071

 

Total liabilities

 

71,263

 

64,149

 

Commitments and contingencies

 

 

 

Redeemable preferred stock:

 

 

 

 

 

Series A convertible redeemable preferred stock, $.001 par value, 50,000,000 shares authorized 30,000,000 shares issued and outstanding (liquidation value $4,830)

 

3,000

 

3,000

 

Stockholders’ equity:

 

 

 

 

 

Common Stock, $.001 par value, 250,000,000 shares authorized, 87,457,954 and 86,895,778 shares issued and outstanding

 

87

 

87

 

Additional paid-in capital

 

40,181

 

32,631

 

Retained earnings

 

9,810

 

1,706

 

Accumulated other comprehensive loss

 

(1,856

)

(1,152

)

Total stockholders’ equity

 

48,222

 

33,272

 

Total liabilities, redeemable preferred stock and stockholders’ equity

 

$

122,485

 

$

100,421

 

 



 

Diligent Corporation

Schedule 3: Unaudited Condensed Consolidated Statements of Cash Flows

(In $US thousands)

 

 

 

Year ended December 31,

 

 

 

2015

 

2014

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

8,104

 

$

8,926

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Deferred taxes

 

(2,122

)

(2,855

)

Depreciation and amortization

 

4,200

 

2,784

 

Share-based compensation

 

7,854

 

3,033

 

Allowance for doubtful accounts

 

100

 

 

Excess tax benefits realized from share-based compensation

 

(170

)

(154

)

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(3,588

)

(3

)

Deferred commissions

 

(991

)

180

 

Prepaid expenses and other current assets

 

(469

)

(1,297

)

Other non-current assets

 

123

 

(436

)

Accounts payable and accrued expenses

 

2,919

 

3,293

 

Income taxes receivable/payable

 

(1,950

)

3,135

 

Deferred revenue

 

8,374

 

6,477

 

Other non-current liabilities

 

(1,177

)

1,344

 

Net cash provided by operating activities

 

21,207

 

24,427

 

Cash flows from investing activities:

 

 

 

 

 

Proceeds from maturity of short-term investments

 

 

12,497

 

Cash paid in connection with acquisitions

 

(10,000

)

 

Restricted cash-security deposits

 

11

 

(124

)

Purchases of property and equipment

 

(4,319

)

(6,964

)

Capitalized software development costs

 

(4,949

)

 

Purchase of intangible assets

 

 

(275

)

Net cash (used in) provided by investing activities

 

(19,257

)

5,134

 

Cash flows from financing activities:

 

 

 

 

 

Payment of preferred stock dividend

 

(335

)

(359

)

Proceeds from exercise of stock options and purchases of shares under stock purchasing plan

 

105

 

19

 

Excess tax benefits realized from share-based compensation

 

170

 

154

 

Payments of obligations under capital leases

 

(595

)

(956

)

Funding of withholding taxes for share-based compensation

 

(203

)

 

Payments of obligations under software licensing agreements

 

 

(82

)

Net cash used in financing activities

 

(858

)

(1,224

)

Effect of exchange rates on cash and cash equivalents

 

(1,681

)

(1,111

)

Net (decrease) increase in cash and cash equivalents

 

(589

)

27,226

 

Cash and cash equivalents at beginning of year

 

70,809

 

43,583

 

Cash and cash equivalents at end of year

 

$

70,220

 

$

70,809

 

 



 

Diligent Corporation

Schedule 4: Reconciliation of GAAP to Non-GAAP Operating Results

(in $US thousands, except per share amounts)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31, 2015

 

 

 

2015

 

2014

 

2015

 

2014

 

Operating Income

 

$

1,317

 

$

3,356

 

$

11,550

 

$

15,124

 

(+) D&A

 

1,456

 

831

 

4,200

 

2,784

 

EBITDA

 

$

2,773

 

$

4,187

 

$

15,750

 

$

17,908

 

(+) Restatement

 

 

 

 

916

 

(+) CEO Replacement Awards and Restatement Bonuses

 

 

 

 

2,756

 

(+) Stock Based Compensation

 

2,310

 

1,265

 

7,808

 

3,033

 

(+) Acquisition related costs

 

563

 

 

778

 

 

Adjusted EBITDA (1)

 

$

5,646

 

$

5,452

 

$

24,336

 

$

24,613

 

 

 

 

 

 

 

 

 

 

 

Adjusted Ebitda Margin

 

20.6

%

24.6

%

24.5

%

29.6

%

 


(1)         Adjusted EBITDA is calculated as operating income plus depreciation and amortization expense, stock based compensation, costs associated with the restatement of our historical financial statements, acquisition related costs and our former CEO’s performance cash awards and restatement bonuses.

 

 

 

Three Months Ended December 31,

 

Year Ended December 31, 2015

 

 

 

2015

 

2014

 

2015

 

2014

 

Net Income

 

$

1,481

 

$

1,775

 

$

8,104

 

$

8,926

 

(+) Restatement

 

 

 

 

916

 

(+) CEO Replacement Awards and Restatement Bonuses

 

 

 

 

2,756

 

(+) Stock Based Compensation

 

2,310

 

1,265

 

7,808

 

3,033

 

(+) Acquisition related costs

 

563

 

 

778

 

 

(-) Income tax effect of adjustments

 

(822

)

(512

)

(2,456

)

(2,714

)

Adjusted Net Income (1)

 

$

3,532

 

$

2,528

 

$

14,234

 

$

12,917

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding Basic

 

117,840

 

117,791

 

117,386

 

117,109

 

Weighted average shares outstanding Diluted

 

122,477

 

122,160

 

121,928

 

121,117

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income per share Basic:

 

$

0.03

 

$

0.02

 

$

0.12

 

$

0.11

 

Adjusted Net Income per share Diluted:

 

$

0.03

 

$

0.02

 

$

0.12

 

$

0.11

 

 


(1)         Adjusted net income is calculated as GAAP net income excluding the impacts of non-cash stock based compensation, costs associated with the restatement of our historical financial statements, acquisition related costs and our former CEO’s performance cash awards and restatement bonuses, net of tax.