Glowpoint Announces Second Quarter 2019 Results
August 14 2019 - 4:10PM
Glowpoint, Inc. (NYSE American: GLOW) (“Glowpoint” or the
“Company”), a managed service provider of video collaboration and
network applications, today announced financial results for the
second quarter ended June 30, 2019.
Second Quarter Financial
Results:
- Revenue of $2.4 million, net loss of $0.9 million, and adjusted
EBITDA (“AEBITDA”) of negative $0.3 million. AEBITDA is a
non-GAAP financial measure. See “Non-GAAP Financial Information”
below for additional information regarding this non-GAAP financial
measure, and “GAAP to Non-GAAP Reconciliation” later in this
release for a reconciliation of this non-GAAP financial measure to
net loss.
- Working capital of $2.0 million, cash of $1.0 million and no
debt as of June 30, 2019.
Second Quarter and Recent
Highlights:
- In July 2019 the Company appointed Jason Adelman and Richard
Ramlall to its Board of Directors.
- In April 2019 the Company regained full compliance with the
NYSE American's continued listing standards.
- In April 2019 the Company and SharedLabs, Inc. mutually agreed
to terminate the parties previously announced Merger Agreement. As
previously discussed, the Company is continuing to pursue its
available remedies in connection with the termination of the Merger
Agreement, including the payment by SharedLabs of fees and expenses
in connection therewith.
“We maintain a clean balance sheet with $1.0
million in cash and no debt as of June 30, 2019. While the Company
continues to implement certain right-sizing initiatives, the
primary goal of sourcing and executing a complementary transaction
remains at the forefront of our objectives. We are actively
exploring a number of potential business development initiatives,
including initiatives to leverage our existing service platform
into market opportunities that complement our core services while
offering expanded value for our current and potential customers,”
said Peter Holst, Chairman and CEO of Glowpoint.
Glowpoint’s results from operations and
financial condition are more fully discussed in our Quarterly
Report on Form 10-Q for the three and six months ended June 30,
2019 on file with the Securities and Exchange Commission (the
“SEC”). Investors are encouraged to carefully review the
Company’s Form 10-Q for a complete analysis of its results from
operations and financial condition.
About Glowpoint
Glowpoint, Inc. (NYSE American: GLOW) is a
managed service provider of video collaboration and network
applications. Our services are designed to provide a comprehensive
suite of automated and concierge applications to simplify the user
experience and expedite the adoption of video as the primary means
of collaboration. Our customers include Fortune 1000 companies,
along with small and medium sized enterprises in a variety of
industries. To learn more please visit www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”), a non-GAAP
financial measure, is defined as net loss before depreciation and
amortization, income tax expense, stock-based compensation,
impairment charges, merger expenses and interest and other expense,
net. AEBITDA is not intended to replace operating loss, net
loss, cash flow or other measures of financial performance reported
in accordance with generally accepted accounting principles (GAAP).
Rather, AEBITDA is an important measure used by management to
assess the operating performance of the Company and is used in
determining achievement of performance-based stock awards. AEBITDA
as defined here may not be comparable to similarly titled measures
reported by other companies due to differences in accounting
policies. Therefore, AEBITDA should be considered in conjunction
with net loss and other performance measures prepared in accordance
with GAAP, such as operating loss or cash flow provided by (used
in) operating activities, and should not be considered in isolation
or as a substitute for GAAP measures, such as net loss, operating
loss or any other GAAP measure of liquidity or financial
performance. A reconciliation of AEBITDA to net loss is shown in
the attached schedules.
Forward looking and cautionary
statements
This press release and any oral statements made
regarding the subject of this release contain forward-looking
statements as defined under Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and are made under the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, that address
activities that Glowpoint assumes, plans, expects, believes,
intends, projects, estimates or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. Glowpoint’s actual results may differ
materially from its expectations, estimates and projections, and
consequently you should not rely on these forward-looking
statements as predictions of future events. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release include statements regarding the Company’s
financial performance, the effect of the termination of the Merger
Agreement, the pursuit by Glowpoint for the payment of damages by
SharedLabs as a result thereof, the Company’s future compliance
with the NYSE American’s continued listing standards, and
opportunities for increasing shareholder value. The forward-looking
statements are based on management’s current belief, based on
currently available information, as to the outcome and timing of
future events, and involve factors, risks, and uncertainties that
may cause actual results in future periods to differ materially
from such statements. A list and description of these and other
risk factors can be found in the Company’s Annual Report on Form
10-K for the year ending December 31, 2018 and in other filings
made by the Company with the SEC from time to time, including the
Company’s Quarterly Report on Form 10-Q for the three and six
months ended June 30, 2019. Any of these factors could cause
Glowpoint’s actual results and plans to differ materially from
those in the forward-looking statements. Therefore, Glowpoint can
give no assurance that its future results will be as estimated.
Glowpoint does not intend to, and disclaims any obligation to,
correct, update or revise any information contained herein.
INVESTOR CONTACT:
Investor RelationsGlowpoint, Inc.+1
303-640-3840investorrelations@glowpoint.com www.glowpoint.com
GLOWPOINT, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(In thousands, except
par value, stated value, and shares)
|
June 30, 2019 |
|
December 31, 2018 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
987 |
|
|
$ |
2,007 |
|
Accounts receivable, net |
1,474 |
|
|
1,371 |
|
Prepaid expenses and other current assets |
473 |
|
|
547 |
|
Total current assets |
2,934 |
|
|
3,925 |
|
Property and equipment,
net |
492 |
|
|
728 |
|
Goodwill |
2,342 |
|
|
2,795 |
|
Intangibles, net |
437 |
|
|
499 |
|
Other assets |
63 |
|
|
15 |
|
Total assets |
$ |
6,268 |
|
|
$ |
7,962 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
308 |
|
|
$ |
222 |
|
Accrued expenses and other liabilities |
604 |
|
|
910 |
|
Total current liabilities |
912 |
|
|
1,132 |
|
Stockholders’ equity: |
|
|
|
Preferred stock Series A-2, convertible; $.0001 par value; $7,500
stated value; 7,500 shares authorized, 32 shares issued and
outstanding and liquidation preference of $327 and $308 at June 30,
2019 and December 31, 2018, respectively |
— |
|
|
— |
|
Preferred stock Series B, convertible; $.0001 par value; $1,000
stated value; 2,800 shares authorized, no shares issued and
outstanding and liquidation preference of $0 at June 30, 2019 and
75 shares issued and outstanding and liquidation preference of $75
at December 31, 2018 |
— |
|
|
— |
|
Preferred stock Series C, convertible; $.0001 par value; $1,000
stated value; 1,750 shares authorized, 475 shares issued and
outstanding and liquidation preference of $475 at June 30, 2019 and
525 shares issued and outstanding and liquidation preference of
$525 at December 31, 2018 |
— |
|
|
— |
|
Common stock, $.0001 par value; 150,000,000 shares authorized;
5,173,900 issued and 5,092,100 outstanding at June 30, 2019 and
5,113,700 issued and 4,981,200 outstanding at December 31,
2018 |
1 |
|
|
1 |
|
Treasury stock, 81,800 and 132,500 shares at June 30, 2019 and
December 31, 2018, respectively |
(149 |
) |
|
(496 |
) |
Additional paid-in capital |
184,650 |
|
|
184,998 |
|
Accumulated deficit |
(179,146 |
) |
|
(177,673 |
) |
Total stockholders’ equity |
5,356 |
|
|
6,830 |
|
Total liabilities and stockholders’ equity |
$ |
6,268 |
|
|
$ |
7,962 |
|
|
GLOWPOINT, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND GAAP to Non-GAAP
Reconciliation(In thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Revenue |
$ |
2,439 |
|
|
$ |
3,293 |
|
|
$ |
5,033 |
|
|
$ |
6,767 |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization) |
1,644 |
|
|
1,930 |
|
|
3,319 |
|
|
4,077 |
|
Research and development |
249 |
|
|
225 |
|
|
462 |
|
|
475 |
|
Sales and marketing |
40 |
|
|
43 |
|
|
73 |
|
|
220 |
|
General and administrative |
770 |
|
|
1,064 |
|
|
1,882 |
|
|
1,962 |
|
Impairment charges |
453 |
|
|
1,525 |
|
|
453 |
|
|
2,175 |
|
Depreciation and amortization |
157 |
|
|
185 |
|
|
316 |
|
|
417 |
|
Total operating expenses |
3,313 |
|
|
4,972 |
|
|
6,505 |
|
|
9,326 |
|
Loss from operations |
(874 |
) |
|
(1,679 |
) |
|
(1,472 |
) |
|
(2,559 |
) |
Interest and other expense,
net |
(1 |
) |
|
(10 |
) |
|
(1 |
) |
|
(415 |
) |
Net loss |
(875 |
) |
|
(1,689 |
) |
|
(1,473 |
) |
|
(2,974 |
) |
Preferred stock dividends |
4 |
|
|
3 |
|
|
19 |
|
|
6 |
|
Net loss attributable to
common stockholders |
$ |
(879 |
) |
|
$ |
(1,692 |
) |
|
$ |
(1,492 |
) |
|
$ |
(2,980 |
) |
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders per share: |
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ |
(0.17 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.64 |
) |
|
|
|
|
|
|
|
|
GAAP to Non-GAAP
Reconciliation: |
|
|
|
|
|
|
|
Net loss |
$ |
(875 |
) |
|
$ |
(1,689 |
) |
|
$ |
(1,473 |
) |
|
$ |
(2,974 |
) |
Depreciation and amortization |
157 |
|
|
185 |
|
|
316 |
|
|
417 |
|
Interest and other expense, net |
1 |
|
|
10 |
|
|
1 |
|
|
415 |
|
EBITDA |
(717 |
) |
|
(1,494 |
) |
|
(1,156 |
) |
|
(2,142 |
) |
Stock-based compensation |
24 |
|
|
110 |
|
|
53 |
|
|
159 |
|
Merger expenses (recovery) |
(87 |
) |
|
— |
|
|
174 |
|
|
— |
|
Impairment charges |
453 |
|
|
1,525 |
|
|
453 |
|
|
2,175 |
|
Adjusted
EBITDA |
$ |
(327 |
) |
|
$ |
141 |
|
|
$ |
(476 |
) |
|
$ |
192 |
|
|
GLOWPOINT, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited
and in thousands)
|
Six Months Ended June 30, |
|
2019 |
|
2018 |
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(1,473 |
) |
|
$ |
(2,974 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
316 |
|
|
417 |
|
Bad debt expense |
9 |
|
|
14 |
|
Amortization of debt discount, net of gain on extinguishment |
— |
|
|
104 |
|
Stock-based compensation expense |
53 |
|
|
159 |
|
Impairment charges |
453 |
|
|
2,175 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
(112 |
) |
|
(268 |
) |
Prepaid expenses and other current assets |
73 |
|
|
168 |
|
Other assets |
50 |
|
|
— |
|
Accounts payable |
86 |
|
|
(34 |
) |
Accrued expenses and other liabilities |
(423 |
) |
|
(450 |
) |
Net cash used in operating activities |
(968 |
) |
|
(689 |
) |
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
(17 |
) |
|
(222 |
) |
Net cash used in investing activities |
(17 |
) |
|
(222 |
) |
Cash flows from financing
activities: |
|
|
|
Principal payments under borrowing arrangements |
— |
|
|
(1,832 |
) |
Proceeds from Series C Preferred Stock issuance, net of expenses of
$223 |
— |
|
|
1,527 |
|
Purchase of treasury stock |
(35 |
) |
|
(52 |
) |
Net cash used in financing activities |
(35 |
) |
|
(357 |
) |
Decrease in cash and cash
equivalents |
(1,020 |
) |
|
(1,268 |
) |
Cash at beginning of
period |
2,007 |
|
|
3,946 |
|
Cash at end of period |
$ |
987 |
|
|
$ |
2,678 |
|
|
|
|
|
Supplemental disclosures of
cash flow information: |
|
|
|
Cash paid during the period for interest |
$ |
— |
|
|
$ |
318 |
|
|
|
|
|
Non-cash investing and
financing activities: |
|
|
|
Accrued preferred stock dividends |
$ |
19 |
|
|
$ |
6 |
|
Issuance of common stock for vested restricted stock units |
$ |
382 |
|
|
$ |
— |
|
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