Altair (Nasdaq:ALTR), a global technology company providing
solutions in product development, high-performance computing and
data intelligence, today released its financial results for the
second quarter ended June 30, 2019.
“We had a very strong second quarter and remain
excited about the future of our industry and company.” said James
Scapa, founder, chairman and chief executive officer.
Second Quarter 2019 Financial Highlights
- Software product revenue was $84.4 million, an increase of 20%
from $70.6 million for the second quarter of 2018.
- Non-GAAP software product revenue was $86.6 million, an
increase of 23% from $70.6 million for the second quarter of
2018. Non-GAAP software product revenue includes revenue not
recognized under GAAP due to acquisition accounting adjustments
associated with the accounting for deferred revenue in significant
business combinations.
- Total revenue was $106.8 million, an increase of 14% from $93.4
million for the second quarter of 2018.
- Non-GAAP total revenue was $109.0 million, an increase of 17%
from $93.4 million for the second quarter of 2018. Non-GAAP
total revenue includes revenue not recognized under GAAP due to
acquisition accounting adjustments associated with the accounting
for deferred revenue in significant business combinations.
- Net loss was ($3.1) million, compared to net loss of ($1.1)
million for the second quarter of 2018. Diluted net loss per share
was ($0.04) based on 71.4 million diluted weighted average common
shares outstanding, compared to diluted net loss per share of
($0.02) for the second quarter of 2018, based on 65.6 million
diluted weighted average common shares outstanding.
- Adjusted EBITDA was $5.2 million, compared to $5.3 million for
the second quarter of 2018. Adjusted EBITDA represents net
income adjusted for income tax expense, interest expense, interest
income and other, depreciation and amortization, stock-based
compensation expense, restructuring charges, asset impairment
charges and other special items as identified by management and
described elsewhere in this press release.
- Modified Adjusted EBITDA was $7.4 million, compared to $5.3
million for the second quarter of 2018. Modified Adjusted
EBITDA represents Adjusted EBITDA adjusted for revenue not
recognized under GAAP due to acquisition accounting adjustments
associated with the accounting for deferred revenue in significant
business combinations.
- Non-GAAP net income was $4.5 million, compared to $2.1 million
for the second quarter of 2018. Non-GAAP diluted net income per
share was $0.06 based on 77.7 million non-GAAP diluted common
shares outstanding, compared to non-GAAP diluted net income per
share of $0.03 for the second quarter of 2018, based on 77.0
million non-GAAP diluted common shares outstanding. Non-GAAP
net income excludes stock-based compensation, amortization of
intangible assets related to acquisitions, revenue not recognized
under GAAP due to acquisition accounting and special items as
identified by management and described elsewhere in this press
release.
- Free cash flow, which consists of cash flow from operations
less capital expenditures, was $4.5 million, compared to $9.2
million for the second quarter of 2018.
Business Outlook Based on information available
as of today, Altair is issuing guidance for the third quarter and
full year 2019.
|
(Unaudited) |
(in millions) |
Third Quarter 2019 |
Full Year 2019 |
Software Product Revenue |
$ |
79.0 |
to |
$ |
81.0 |
$ |
366.0 |
to |
$ |
370.0 |
Non-GAAP Software Product Revenue |
$ |
81.2 |
|
$ |
83.2 |
$ |
375.0 |
|
$ |
379.0 |
Total Revenue |
$ |
103.0 |
|
$ |
105.0 |
$ |
460.0 |
|
$ |
464.0 |
Non-GAAP Total Revenue |
$ |
105.2 |
|
$ |
107.2 |
$ |
469.0 |
|
$ |
473.0 |
Net (Loss) Income |
$ |
(6.8) |
|
$ |
(5.5) |
$ |
10.5 |
|
$ |
13.1 |
Non-GAAP Net Income |
$ |
3.4 |
|
$ |
4.7 |
$ |
45.2 |
|
$ |
47.8 |
Adjusted EBITDA |
$ |
0.8 |
|
$ |
2.8 |
$ |
53.0 |
|
$ |
57.0 |
Modified Adjusted EBITDA |
$ |
3.0 |
|
$ |
5.0 |
$ |
62.0 |
|
$ |
66.0 |
|
|
|
|
|
|
|
|
|
|
|
(All figures in millions) |
|
|
|
|
|
|
|
|
|
|
Conference Call Information |
What: |
Altair’s
Second Quarter 2019 Financial Results Conference Call |
When: |
Thursday, August 8, 2019 |
Time: |
4:30 p.m. ET |
Live Call: |
(866) 754-5204, Domestic |
|
(636) 812-6621, International |
Replay: |
(855) 859-2056, Conference ID 4996438, Domestic |
|
(404) 537-3406, Conference ID 4996438, International |
Webcast: |
http://investor.altair.com (live & replay) |
*** |
Non-GAAP Financial Measures This
press release contains the following non-GAAP financial measures:
Non-GAAP Software Product Revenue, Non-GAAP Total Revenue, Adjusted
EBITDA, Modified Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net
Income Per Share and Free Cash Flow.
Altair believes that these non-GAAP measures of financial
results provide useful information to management and investors
regarding certain financial and business trends relating to its
financial condition and results of operations. The Company’s
management uses these non-GAAP measures to compare the Company’s
performance to that of prior periods for trend analysis, for
purposes of determining executive and senior management incentive
compensation and for budgeting and planning purposes. The Company
also believes that the use of these non-GAAP financial measures
provides an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing the Company’s
financial measures with other software companies, many of which
present similar non-GAAP financial measures to investors.
Company management does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of these non-GAAP
financial measures is that they exclude significant expenses and
income that are required by GAAP to be recorded in the Company’s
financial statements. In addition, they are subject to inherent
limitations as they reflect the exercise of judgment by management
about which expenses and income are excluded or included in
determining these non-GAAP financial measures. Altair urges
investors to review the reconciliation of its non-GAAP financial
measures to the comparable GAAP financial measures, which it
includes in press releases announcing quarterly financial results,
including this press release, and not to rely on any single
financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial
measures to the non-GAAP financial measures used in this press
release are included with the financial tables at the end of this
release.
About Altair Altair is a global technology
company that provides software and cloud solutions in the areas of
product design and development, high-performance computing (HPC)
and data intelligence. Altair enables organizations across broad
industry segments to compete more effectively in a connected world
while creating a more sustainable future. To learn more, please
visit www.altair.com.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, our guidance for the third quarter and full year 2019,
statements regarding our anticipated success, expected expansion of
our footprint, positioning for growth and convergence of
technologies, and our reconciliations of projected non-GAAP
financial measures. These forward-looking statements are made
as of the date of this release and are based on current
expectations, estimates, forecasts and projections as well as the
beliefs and assumptions of management. Words such as “expect,”
“anticipate,” “should,” “believe,” “hope,” “target,” “project,”
“goals,” “estimate,” “potential,” “predict,” “may,” “will,”
“might,” “could,” “intend,” variations of these terms or the
negative of these terms and similar expressions are intended to
identify these forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties, many
of which involve factors or circumstances that are beyond Altair’s
control. Altair’s actual results could differ materially from those
stated or implied in forward-looking statements due to a number of
factors, including but not limited to, risks detailed in Altair’s
quarterly and annual reports filed with the Securities and Exchange
Commission as well as other documents that may be filed by the
Company from time to time with the Securities and Exchange
Commission. Past performance is not necessarily indicative of
future results. The forward-looking statements included in this
press release represent Altair’s views as of the date of this press
release. The Company anticipates that subsequent events and
developments will cause its views to change. Altair undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. These forward-looking statements should not be relied
upon as representing Altair’s views as of any date subsequent to
the date of this press release.
Investor and Media RelationsDave
SimonAltair248-614-2400 ext. 332ir@altair.com
|
|
|
|
ALTAIR ENGINEERING INC. AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
June 30, 2019 |
|
|
December 31, 2018 |
|
(In
thousands) |
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
251,828 |
|
|
$ |
35,345 |
|
Accounts receivable, net |
|
|
85,758 |
|
|
|
96,803 |
|
Income tax receivable |
|
|
8,515 |
|
|
|
4,431 |
|
Prepaid expenses and other current assets |
|
|
18,262 |
|
|
|
17,455 |
|
Total current assets |
|
|
364,363 |
|
|
|
154,034 |
|
Property and equipment,
net |
|
|
34,050 |
|
|
|
30,153 |
|
Operating lease right of use
assets |
|
|
28,878 |
|
|
|
— |
|
Goodwill |
|
|
212,087 |
|
|
|
210,532 |
|
Other intangible assets,
net |
|
|
64,874 |
|
|
|
69,836 |
|
Deferred tax assets |
|
|
5,901 |
|
|
|
5,354 |
|
Other long-term assets |
|
|
19,567 |
|
|
|
17,288 |
|
TOTAL ASSETS |
|
$ |
729,720 |
|
|
$ |
487,197 |
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’
EQUITY |
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
472 |
|
|
$ |
331 |
|
Accounts payable |
|
|
6,462 |
|
|
|
8,357 |
|
Accrued compensation and benefits |
|
|
29,155 |
|
|
|
31,740 |
|
Current portion of operating lease liabilities |
|
|
9,412 |
|
|
|
— |
|
Other accrued expenses and current liabilities |
|
|
27,979 |
|
|
|
27,039 |
|
Deferred revenue |
|
|
67,587 |
|
|
|
59,765 |
|
Total current liabilities |
|
|
141,067 |
|
|
|
127,232 |
|
Long-term debt, net of current
portion |
|
|
173,157 |
|
|
|
31,417 |
|
Operating lease liabilities,
net of current portion |
|
|
20,722 |
|
|
|
— |
|
Deferred revenue,
non-current |
|
|
6,219 |
|
|
|
6,754 |
|
Other long-term
liabilities |
|
|
26,362 |
|
|
|
25,756 |
|
TOTAL LIABILITIES |
|
|
367,527 |
|
|
|
191,159 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
MEZZANINE EQUITY |
|
|
2,352 |
|
|
|
2,352 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
Preferred stock ($0.0001 par
value), authorized 45,000 shares, none issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock ($0.0001 par
value) |
|
|
|
|
|
|
|
|
Class A common stock, authorized 513,797 shares, issued and
outstanding 39,672 and 38,349 shares as of June 30, 2019 and
December 31, 2018, respectively |
|
|
4 |
|
|
|
4 |
|
Class B common stock, authorized 41,203 shares, issued and
outstanding 31,901 and 32,171 shares as of June 30, 2019 and
December 31, 2018, respectively |
|
|
3 |
|
|
|
3 |
|
Additional paid-in
capital |
|
|
433,902 |
|
|
|
379,832 |
|
Accumulated deficit |
|
|
(64,964 |
) |
|
|
(74,863 |
) |
Accumulated other
comprehensive loss |
|
|
(9,104 |
) |
|
|
(11,290 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
359,841 |
|
|
|
293,686 |
|
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
|
$ |
729,720 |
|
|
$ |
487,197 |
|
|
|
|
|
|
|
|
|
|
ALTAIR ENGINEERING INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(in thousands, except
per share data) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License |
|
$ |
56,653 |
|
|
$ |
46,700 |
|
|
$ |
133,274 |
|
|
$ |
113,635 |
|
Maintenance and other services |
|
|
27,755 |
|
|
|
23,907 |
|
|
|
54,425 |
|
|
|
46,641 |
|
Total software |
|
|
84,408 |
|
|
|
70,607 |
|
|
|
187,699 |
|
|
|
160,276 |
|
Software related services |
|
|
7,907 |
|
|
|
8,707 |
|
|
|
17,679 |
|
|
|
18,180 |
|
Total software and related services |
|
|
92,315 |
|
|
|
79,314 |
|
|
|
205,378 |
|
|
|
178,456 |
|
Client engineering services |
|
|
12,412 |
|
|
|
12,417 |
|
|
|
24,462 |
|
|
|
24,497 |
|
Other |
|
|
2,046 |
|
|
|
1,629 |
|
|
|
4,792 |
|
|
|
3,664 |
|
Total revenue |
|
|
106,773 |
|
|
|
93,360 |
|
|
|
234,632 |
|
|
|
206,617 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License * |
|
|
2,954 |
|
|
|
4,068 |
|
|
|
8,775 |
|
|
|
7,798 |
|
Maintenance and other services * |
|
|
9,430 |
|
|
|
7,915 |
|
|
|
17,961 |
|
|
|
15,107 |
|
Total software |
|
|
12,384 |
|
|
|
11,983 |
|
|
|
26,736 |
|
|
|
22,905 |
|
Software related services |
|
|
6,612 |
|
|
|
6,512 |
|
|
|
13,130 |
|
|
|
13,221 |
|
Total software and related services |
|
|
18,996 |
|
|
|
18,495 |
|
|
|
39,866 |
|
|
|
36,126 |
|
Client engineering services |
|
|
10,033 |
|
|
|
9,960 |
|
|
|
19,833 |
|
|
|
20,160 |
|
Other |
|
|
1,994 |
|
|
|
1,001 |
|
|
|
4,209 |
|
|
|
2,212 |
|
Total cost of revenue |
|
|
31,023 |
|
|
|
29,456 |
|
|
|
63,908 |
|
|
|
58,498 |
|
Gross profit |
|
|
75,750 |
|
|
|
63,904 |
|
|
|
170,724 |
|
|
|
148,119 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development * |
|
|
29,829 |
|
|
|
24,744 |
|
|
|
57,345 |
|
|
|
47,447 |
|
Sales and marketing * |
|
|
26,221 |
|
|
|
19,979 |
|
|
|
52,672 |
|
|
|
38,606 |
|
General and administrative * |
|
|
19,851 |
|
|
|
17,412 |
|
|
|
40,180 |
|
|
|
34,402 |
|
Amortization of intangible assets |
|
|
3,600 |
|
|
|
1,986 |
|
|
|
7,128 |
|
|
|
3,926 |
|
Other operating income |
|
|
(549 |
) |
|
|
(392 |
) |
|
|
(1,166 |
) |
|
|
(2,583 |
) |
Total operating expenses |
|
|
78,952 |
|
|
|
63,729 |
|
|
|
156,159 |
|
|
|
121,798 |
|
Operating (loss) income |
|
|
(3,202 |
) |
|
|
175 |
|
|
|
14,565 |
|
|
|
26,321 |
|
Interest expense |
|
|
590 |
|
|
|
45 |
|
|
|
860 |
|
|
|
61 |
|
Other income, net |
|
|
(505 |
) |
|
|
(176 |
) |
|
|
(115 |
) |
|
|
(1,076 |
) |
(Loss) income before income taxes |
|
|
(3,287 |
) |
|
|
306 |
|
|
|
13,820 |
|
|
|
27,336 |
|
Income tax (benefit)
expense |
|
|
(167 |
) |
|
|
1,386 |
|
|
|
3,921 |
|
|
|
3,732 |
|
Net (loss) income |
|
$ |
(3,120 |
) |
|
$ |
(1,080 |
) |
|
$ |
9,899 |
|
|
$ |
23,604 |
|
Income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share attributable to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, basic |
|
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.14 |
|
|
$ |
0.37 |
|
Net (loss) income per share attributable to common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.13 |
|
|
$ |
0.32 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net (loss) income per share, basic |
|
|
71,373 |
|
|
|
65,580 |
|
|
|
71,081 |
|
|
|
64,614 |
|
Weighted average number of shares used in computing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net (loss) income per share, diluted |
|
|
71,373 |
|
|
|
65,580 |
|
|
|
77,017 |
|
|
|
72,881 |
|
_________________*
Amounts include stock-based compensation expense as follows
(in thousands) (unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Cost of revenue – software |
|
$ |
279 |
|
$ |
8 |
|
$ |
343 |
|
$ |
16 |
Research and development |
|
|
579 |
|
|
108 |
|
|
937 |
|
|
155 |
Sales and marketing |
|
|
475 |
|
|
134 |
|
|
937 |
|
|
175 |
General and
administrative |
|
|
747 |
|
|
184 |
|
|
1,075 |
|
|
304 |
Total stock-based compensation expense |
|
$ |
2,080 |
|
$ |
434 |
|
$ |
3,292 |
|
$ |
650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ALTAIR ENGINEERING INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOW |
(Unaudited) |
|
|
|
Six Months Ended June 30, |
|
(In
thousands) |
|
2019 |
|
|
2018 |
|
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
9,899 |
|
|
$ |
23,604 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
10,468 |
|
|
|
7,525 |
|
Provision for bad debt |
|
|
134 |
|
|
|
269 |
|
Amortization of debt discount and issuance costs |
|
|
459 |
|
|
|
12 |
|
Stock-based compensation expense |
|
|
3,292 |
|
|
|
650 |
|
Deferred income taxes |
|
|
(703 |
) |
|
|
1,312 |
|
Other, net |
|
|
(17 |
) |
|
|
(166 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
10,406 |
|
|
|
11,743 |
|
Prepaid expenses and other current assets |
|
|
(4,952 |
) |
|
|
(3,454 |
) |
Other long-term assets |
|
|
(2,300 |
) |
|
|
(276 |
) |
Accounts payable |
|
|
(2,187 |
) |
|
|
335 |
|
Accrued compensation and benefits |
|
|
(2,455 |
) |
|
|
73 |
|
Other accrued expenses and current liabilities |
|
|
1,887 |
|
|
|
(4,511 |
) |
Operating lease right-of-use assets and liabilities, net |
|
|
197 |
|
|
|
— |
|
Deferred revenue |
|
|
7,740 |
|
|
|
197 |
|
Net cash provided by operating activities |
|
|
31,868 |
|
|
|
37,313 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(6,667 |
) |
|
|
(3,130 |
) |
Payments for acquisition of developed technology |
|
|
(344 |
) |
|
|
(2,738 |
) |
Payments for acquisition of businesses, net of cash acquired |
|
|
(709 |
) |
|
|
(7,028 |
) |
Other investing activities, net |
|
|
16 |
|
|
|
38 |
|
Net cash used in investing activities |
|
|
(7,704 |
) |
|
|
(12,858 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from issuance of convertible senior notes, net of
underwriters' discount and commissions |
|
|
223,101 |
|
|
|
— |
|
Payments on revolving commitment |
|
|
(127,941 |
) |
|
|
— |
|
Borrowings under revolving commitment |
|
|
96,991 |
|
|
|
— |
|
Proceeds from the exercise of stock options |
|
|
1,270 |
|
|
|
1,668 |
|
Payments for issuance costs of convertible senior notes |
|
|
(1,018 |
) |
|
|
— |
|
Payments for follow-on public offering and initial public offering
costs |
|
|
— |
|
|
|
(468 |
) |
Proceeds from issuance of Class A common stock in follow-on public
offering, net of underwriters' discounts and commissions |
|
|
— |
|
|
|
135,572 |
|
Other financing activities |
|
|
(259 |
) |
|
|
(342 |
) |
Net cash provided by financing activities |
|
|
192,144 |
|
|
|
136,430 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
|
187 |
|
|
|
(877 |
) |
Net increase in cash, cash
equivalents and restricted cash |
|
|
216,495 |
|
|
|
160,008 |
|
Cash, cash equivalents and
restricted cash at beginning of year |
|
|
35,685 |
|
|
|
39,578 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
252,180 |
|
|
$ |
199,586 |
|
Supplemental disclosure of
cash flow: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
362 |
|
|
$ |
41 |
|
Income taxes paid |
|
$ |
4,054 |
|
|
$ |
3,660 |
|
Supplemental disclosure of
non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Finance leases |
|
$ |
566 |
|
|
$ |
1,010 |
|
Property and equipment in accounts payable |
|
$ |
417 |
|
|
$ |
935 |
|
Convertible senior notes issuance costs in accounts payable |
|
$ |
216 |
|
|
$ |
— |
|
Follow-on public offering costs in accounts payable |
|
$ |
— |
|
|
$ |
88 |
|
Promissory notes issued and deferred payment obligations for
acquisitions |
|
$ |
— |
|
|
$ |
278 |
|
|
|
|
|
|
|
|
|
|
Financial Results
The following table provides a reconciliation of Non-GAAP net
income and Non-GAAP diluted income per share to net (loss) income
and (loss) income per share – diluted, the most comparable GAAP
financial measures:
|
|
(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(in thousands, except
per share amounts) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net (loss) income |
|
$ |
(3,120 |
) |
|
$ |
(1,080 |
) |
|
$ |
9,899 |
|
|
$ |
23,604 |
|
Stock-based compensation
expense |
|
|
2,080 |
|
|
|
434 |
|
|
|
3,292 |
|
|
|
650 |
|
Amortization of intangible
assets |
|
|
3,600 |
|
|
|
1,986 |
|
|
|
7,128 |
|
|
|
3,926 |
|
Acquisition related deferred
revenue (1) |
|
|
2,250 |
|
|
|
— |
|
|
|
4,500 |
|
|
|
— |
|
Special adjustments (2) |
|
|
776 |
|
|
|
929 |
|
|
|
1,004 |
|
|
|
(223 |
) |
Income tax effect of non-GAAP
adjustments |
|
|
(1,057 |
) |
|
|
(124 |
) |
|
|
(1,827 |
) |
|
|
(199 |
) |
Non-GAAP net income |
|
$ |
4,529 |
|
|
$ |
2,145 |
|
|
$ |
23,996 |
|
|
$ |
27,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per share -
diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.13 |
|
|
$ |
0.32 |
|
Non-GAAP income per share -
diluted |
|
$ |
0.06 |
|
|
$ |
0.03 |
|
|
$ |
0.31 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares
outstanding: |
|
|
71,373 |
|
|
|
65,580 |
|
|
|
77,017 |
|
|
|
72,881 |
|
Non-GAAP diluted shares
outstanding: |
|
|
77,700 |
|
|
|
77,000 |
|
|
|
77,700 |
|
|
|
77,000 |
|
(1) Represents revenue not recognized under GAAP due to
acquisition accounting adjustments associated with the accounting
for deferred revenue in significant business combinations.(2)
Includes an impairment charge for royalty contracts resulting in
$0.8 million and $0.9 million of expense for the three months ended
June 30, 2019 and 2018, respectively, and $1.0 million and $1.8
million of expense for the six months ended June 30, 2019 and 2018,
respectively. Includes a non-recurring adjustment for a change in
estimated legal expenses resulting in $2.0 million of income for
the six months ended June 30, 2018.
|
The following
table provides a reconciliation of Adjusted EBITDA and Modified
Adjusted EBITDA to net (loss) income, the most comparable GAAP
financial measure: |
|
|
|
(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(in
thousands) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net (loss) income |
|
$ |
(3,120 |
) |
|
$ |
(1,080 |
) |
|
$ |
9,899 |
|
|
$ |
23,604 |
|
Income tax (benefit)
expense |
|
|
(167 |
) |
|
|
1,386 |
|
|
|
3,921 |
|
|
|
3,732 |
|
Stock-based compensation
expense |
|
|
2,080 |
|
|
|
434 |
|
|
|
3,292 |
|
|
|
650 |
|
Interest expense |
|
|
590 |
|
|
|
45 |
|
|
|
860 |
|
|
|
61 |
|
Interest income and other
(1) |
|
|
508 |
|
|
|
536 |
|
|
|
709 |
|
|
|
(719 |
) |
Depreciation and
amortization |
|
|
5,274 |
|
|
|
3,982 |
|
|
|
10,468 |
|
|
|
7,525 |
|
Adjusted EBITDA |
|
|
5,165 |
|
|
|
5,303 |
|
|
|
29,149 |
|
|
|
34,853 |
|
Acquisition related deferred
revenue (2) |
|
|
2,250 |
|
|
|
— |
|
|
|
4,500 |
|
|
|
— |
|
Modified Adjusted EBITDA |
|
$ |
7,415 |
|
|
$ |
5,303 |
|
|
$ |
33,649 |
|
|
$ |
34,853 |
|
(1) Includes an impairment charge for royalty contracts
resulting in $0.8 million and $0.9 million of expense for the three
months ended June 30, 2019 and 2018, respectively, and $1.0 million
and $1.8 million of expense for the six months ended June 30, 2019
and 2018, respectively. Includes a non-recurring adjustment for a
change in estimated legal expenses resulting in $2.0 million of
income for the six months ended June 30, 2018.(2) Represents
revenue not recognized under GAAP due to acquisition accounting
adjustments associated with the accounting for deferred revenue in
significant business combinations.
|
The following
table provides a reconciliation of Non-GAAP total revenue to total
revenue, the most comparable GAAP financial measure: |
|
|
|
(Unaudited) |
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
(in
thousands) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
Total revenue |
|
$ |
106,773 |
|
|
$ |
93,360 |
|
|
$ |
234,632 |
|
|
$ |
206,617 |
Acquisition related deferred
revenue(1) |
|
|
2,250 |
|
|
|
— |
|
|
|
4,500 |
|
|
|
— |
Non-GAAP total revenue |
|
$ |
109,023 |
|
|
$ |
93,360 |
|
|
$ |
239,132 |
|
|
$ |
206,617 |
(1) Adjustment for revenue not recognized under GAAP due to
acquisition accounting adjustments associated with the accounting
for deferred revenue in significant business combinations.
|
The following
table provides a reconciliation of Non-GAAP total software product
revenue to total software product revenue, the most comparable GAAP
financial measure: |
|
|
|
(Unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in
thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Total software product revenue |
|
$ |
84,408 |
|
$ |
70,607 |
|
$ |
187,699 |
|
$ |
160,276 |
Acquisition related deferred
revenue(1) |
|
|
2,250 |
|
|
— |
|
|
4,500 |
|
|
— |
Non-GAAP total software product revenue |
|
$ |
86,658 |
|
$ |
70,607 |
|
$ |
192,199 |
|
$ |
160,276 |
(1) Adjustment for revenue not recognized under GAAP due to
acquisition accounting adjustments associated with the accounting
for deferred revenue in significant business combinations.
|
|
The following
table provides a recompilation of Free Cash Flow to net cash
provided by operating activities, the most comparable GAAP
financial measure: |
|
|
|
|
|
(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(in
thousands) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net cash provided by operating activities |
|
$ |
6,553 |
|
|
$ |
10,624 |
|
|
$ |
31,868 |
|
|
$ |
37,313 |
|
Capital expenditures |
|
|
(2,084 |
) |
|
|
(1,446 |
) |
|
|
(6,667 |
) |
|
|
(3,130 |
) |
Free cash flow |
|
$ |
4,469 |
|
|
$ |
9,178 |
|
|
$ |
25,201 |
|
|
$ |
34,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective January 1, 2018, we adopted Accounting Standards
Update No. 2014-09, Revenue from Contracts with Customers (ASC
606). The following table sets forth selected quarterly information
under ASC 606 for 2018:
|
|
(Unaudited) |
|
|
|
Three months ended |
|
|
|
ASC 606 |
|
(in
thousands) |
|
March 31,2018 |
|
|
June 30,2018 |
|
|
September 30,2018 |
|
|
December 31,2018 |
|
Software product revenue |
|
$ |
89,670 |
|
|
$ |
70,606 |
|
|
$ |
64,182 |
|
|
$ |
79,903 |
|
Total revenue |
|
|
113,257 |
|
|
|
93,360 |
|
|
|
86,751 |
|
|
|
103,011 |
|
Net income (loss) |
|
|
24,684 |
|
|
|
(1,080 |
) |
|
|
934 |
|
|
|
(9,003 |
) |
Adjusted EBITDA |
|
|
29,550 |
|
|
|
5,303 |
|
|
|
2,399 |
|
|
|
12,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Outlook
The following table provides a reconciliation of projected
Non-GAAP net income to projected net (loss) income, the most
comparable GAAP financial measure:
|
|
(Unaudited) |
|
|
|
Three Months endingSeptember 30,
2019 |
|
|
Year EndingDecember 31, 2019 |
|
(in
thousands) |
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
Net (loss) income |
|
$ |
(6,750 |
) |
|
$ |
(5,450 |
) |
|
$ |
10,500 |
|
|
$ |
13,100 |
|
Stock-based compensation
expense |
|
|
2,100 |
|
|
|
2,100 |
|
|
|
7,500 |
|
|
|
7,500 |
|
Amortization of intangible
assets |
|
|
3,800 |
|
|
|
3,800 |
|
|
|
15,200 |
|
|
|
15,200 |
|
Acquisition related deferred
revenue(1) |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
9,000 |
|
|
|
9,000 |
|
Non-recurring adjustments |
|
|
2,000 |
|
|
|
2,000 |
|
|
|
3,000 |
|
|
|
3,000 |
|
Non-GAAP net income |
|
$ |
3,400 |
|
|
$ |
4,700 |
|
|
$ |
45,200 |
|
|
$ |
47,800 |
|
(1) Adjustment for revenue not recognized under GAAP due to
acquisition accounting adjustments associated with the accounting
for deferred revenue in significant business combinations.
|
The following
table provides a reconciliation of projected Adjusted EBITDA and
Modified Adjusted EBITDA to projected net (loss) income, the most
comparable GAAP financial measure: |
|
|
|
(Unaudited) |
|
|
Three Months endingSeptember 30,
2019 |
|
|
Year EndingDecember 31, 2019 |
(in
thousands) |
|
Low |
|
|
High |
|
|
Low |
|
High |
Net (loss) income |
|
$ |
(6,750 |
) |
|
$ |
(5,450 |
) |
|
$ |
10,500 |
|
$ |
13,100 |
Income tax (benefit)
expense |
|
|
(3,600 |
) |
|
|
(2,900 |
) |
|
|
5,700 |
|
|
7,100 |
Stock-based compensation
expense |
|
|
2,100 |
|
|
|
2,100 |
|
|
|
7,500 |
|
|
7,500 |
Interest expense |
|
|
2,700 |
|
|
|
2,700 |
|
|
|
6,400 |
|
|
6,400 |
Depreciation and
amortization |
|
|
5,300 |
|
|
|
5,300 |
|
|
|
22,000 |
|
|
22,000 |
Interest income and other
non-recurring adjustments |
|
|
1,000 |
|
|
|
1,000 |
|
|
|
900 |
|
|
900 |
Adjusted EBITDA |
|
|
750 |
|
|
|
2,750 |
|
|
|
53,000 |
|
|
57,000 |
Acquisition related deferred
revenue(1) |
|
|
2,250 |
|
|
|
2,250 |
|
|
|
9,000 |
|
|
9,000 |
Modified Adjusted EBITDA |
|
$ |
3,000 |
|
|
$ |
5,000 |
|
|
$ |
62,000 |
|
$ |
66,000 |
(1) Adjustment for revenue not recognized under GAAP due
to acquisition accounting adjustments associated with the
accounting for deferred revenue in significant business
combinations.
|
The following
table provides a reconciliation of projected Non-GAAP total revenue
to projected total revenue, the most comparable GAAP financial
measure: |
|
|
|
(Unaudited) |
|
|
Three Months endingSeptember 30,
2019 |
|
Year EndingDecember 31, 2019 |
(in
millions) |
|
Low |
|
High |
|
Low |
|
High |
Total revenue |
|
$ |
103.0 |
|
$ |
105.0 |
|
$ |
460.0 |
|
$ |
464.0 |
Acquisition related deferred
revenue(1) |
|
|
2.2 |
|
|
2.2 |
|
|
9.0 |
|
|
9.0 |
Non-GAAP total revenue |
|
$ |
105.2 |
|
$ |
107.2 |
|
$ |
469.0 |
|
$ |
473.0 |
(1) Adjustment for revenue not recognized under GAAP due
to acquisition accounting adjustments associated with the
accounting for deferred revenue in significant business
combinations.
|
The following
table provides a reconciliation of projected Non-GAAP total
software product revenue to projected total software product
revenue, the most comparable GAAP financial measure: |
|
|
|
(Unaudited) |
|
|
|
Three Months endingSeptember 30,
2019 |
|
|
Year EndingDecember 31, 2019 |
|
(in
millions) |
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
Total software product
revenue |
|
$ |
79.0 |
|
|
$ |
81.0 |
|
|
$ |
366.0 |
|
|
$ |
370.0 |
|
Acquisition related deferred
revenue(1) |
|
|
2.2 |
|
|
|
2.2 |
|
|
|
9.0 |
|
|
|
9.0 |
|
Non-GAAP total software product revenue |
|
$ |
81.2 |
|
|
$ |
83.2 |
|
|
$ |
375.0 |
|
|
$ |
379.0 |
|
(1) Adjustment for revenue not recognized under GAAP due
to acquisition accounting adjustments associated with the
accounting for deferred revenue in significant business
combinations.
Altair Engineering (NASDAQ:ALTR)
Historical Stock Chart
From Feb 2024 to Mar 2024
Altair Engineering (NASDAQ:ALTR)
Historical Stock Chart
From Mar 2023 to Mar 2024