SAN ANTONIO, April 29, 2019 /PRNewswire/ -- GlobalSCAPE,
Inc. (NYSE American: GSB), a worldwide leader in the secure
movement and integration of data, today announced financial results
for its fiscal first quarter ended March 31,
2019.
Revenue for the first quarter of 2019 was $9.4 million, a 22% increase when compared with
revenue of $7.7 million for the first
quarter of 2018. The revenue increase is attributable to the
company-wide focus on our flagship EFT platform product. Gross
profit was $8.0 million, or 85% of
total revenue, compared to $6.1
million, or 79% of total revenue in the same quarter a year
ago.
Operating expenses for the first quarter of 2019 decreased 34%
to $4.8 million, compared to
$7.3 million in the same period a
year ago.
Net income for the first quarter of 2019 was $2.4 million compared with a net loss of
$935,000 for the first quarter of
2018. Earnings per share were $0.14
for the first quarter of 2019 compared to a per share loss of
$0.04 for the first quarter of
2018.
Adjusted EBITDA for the first quarter of 2019 was $4.4 million compared to $22,000 for the first quarter of 2018.
The Company had no debt and cash and cash equivalents totaled
$14 million at March 31, 2019. As a result of the 68,558 shares
repurchased in the first quarter of 2019, the Company had
17,218,849 shares outstanding as of March
31, 2019.
The Company also announced a special dividend of $0.50 per share of common stock. The dividend is
payable May 27, 2019 to shareholders
of record at the close of business at 5 p.m.
Eastern Time on May 13,
2019.
"Earlier this month we announced the sudden passing of
Matt Goulet, President and CEO,"
said Robert Alpert, Chairman of
GlobalSCAPE's Board of Directors and Interim CEO. "Although deeply
saddened, the employees, management team and board of directors are
committed to carrying out his vision. The experienced and talented
leadership team is continuing to execute on a strategy to deliver
improved shareholder value. The momentum we saw in the fourth
quarter of 2018 continued in the first quarter of 2019 with record
financial performance. With a fortress balance sheet as a solid
foundation for growth, we delivered double-digit revenue growth
while maintaining strong margins. Operating expenses decreased 34%
year over year while adjusted EBITDA increased from $22,000 in the first quarter of 2018 to
$4.4 million in the first quarter of
2019. Although we repurchased a small number of shares in the
quarter, we will continue to monitor capital markets for
opportunities to repurchase shares and consider other actions
designed to enhance shareholder value. We are also pleased to
report the declaration of a special dividend demonstrating the
Board of Director's confidence in our operating model and ability
to generate significant free cash flow."
About Globalscape
GlobalSCAPE, Inc. (NYSE American:
GSB) is a pioneer in securing and automating the movement and
integration of data seamlessly in, around and outside your
business, between applications, people and places, in and out of
the cloud. GlobalSCAPE provides cloud services that automate your
work, secure your data, and integrate your applications – while
giving visibility to those who need it. GlobalSCAPE makes business
flow brilliantly. Visit www.globalscape.com.
Safe Harbor Statement
This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. The words "would," "exceed," "should," "anticipates,"
"believe," "expect," and variations of such words and similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not a forward-looking statement.
These forward-looking statements are based upon the Company's
current expectations and are subject to a number of risks,
uncertainties and assumptions. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. Among the important
factors that could cause the actual results of the operations or
financial condition of the Company to differ materially from those
expressed or implied by forward-looking statements include, but are
not limited to, the overall level of consumer spending on our
products; general economic conditions and other factors affecting
consumer confidence; disruption and volatility in the global
capital and credit markets; the Company's ability to protect
patents, trademarks and other intellectual property rights; any
breaches of, or interruptions in, our information systems; legal,
regulatory, political and economic risks in international markets;
the results of our reduction in force; the discovery of additional
information relevant to the internal investigation; the possibility
that additional errors relevant to the recently completed
restatement may be identified; pending litigation and other
proceedings and the possibility of further legal proceedings
adverse to the Company resulting from the restatement or related
matters; the costs associated with the restatement and the
investigation, pending litigation and other proceedings and
possible future legal proceedings; and our decreased "public float"
(the number of shares owned by non-affiliate stockholders and
available for trading in the securities markets) as a result of
share repurchases. More information on potential risks and other
factors that could affect the Company's financial results is
included from time to time in the Company's public reports filed
with the SEC, including the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
All forward-looking statements included in this press release are
based upon information available to the Company as of the date of
this press release and speak only as of the date hereof.
Use of Non-GAAP Measures
The Company uses
Adjusted EBITDA (Earnings Before Interest, Taxes, Total Other
Income/Expense, Depreciation, Amortization, and Share-Based
Compensation Expense) to provide a view of income and expenses that
is supplemental and secondary to the primary assessment of net
income (loss) as presented in the consolidated statement of
operations and comprehensive income.
Prior to 2018, we did not add back the amortization of
capitalized software development costs in our Adjusted EBITDA
computation. In 2018, after researching the methods used by other
software companies, we changed our method of computing Adjusted
EBITDA to include the amortization of capitalized software
development cost in order to enhance the comparability of the
computation to that of our peers. A reconciliation of Adjusted
EBITDA previously reported to the current presentation is provided
at the end of this release.
Adjusted EBITDA is not a measure of financial performance under
GAAP. It should not be considered as a substitute for net income
(loss) presented on our condensed consolidated statement of
operations and comprehensive income. Adjusted EBITDA has
limitations as an analytical tool and when assessing our operating
performance. Adjusted EBITDA should not be considered in isolation
or without a simultaneous reading and consideration of our
financial statements prepared in accordance with GAAP. A
reconciliation of net income (loss) to Adjusted EBITDA is provided
at the end of this release.
Adjusted
EBITDA
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2019
|
|
2018
|
Net Income
(loss)
|
$ 2,420
|
|
$(935)
|
Add (subtract) items
to determine Adjusted EBITDA:
|
|
|
|
Income tax expense
(benefit)
|
747
|
|
(232)
|
Interest (income)
expense, net
|
(24)
|
|
(76)
|
Depreciation and
amortization:
|
|
|
|
Total depreciation
and amortization
|
410
|
|
594
|
Share-based
compensation expense
|
875
|
|
671
|
|
Adjusted
EBITDA
|
$ 4,428
|
|
$
22
|
Previously Reported
EBITDA Reconciliation
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
Adjusted EBITDA as
previously reported
|
$
(512)
|
Amortization of
capitalized software development costs
|
534
|
Adjusted EBITDA as
now reported
|
$
22
|
GlobalSCAPE Investor Relations Contact:
ir@GlobalSCAPE.com
GlobalSCAPE Public Relations Contact:
Zintel Public Relations
Matthew Zintel
matthew.zintel@zintelpr.com
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SOURCE GlobalSCAPE, Inc.