Altair Announces First Quarter 2019 Financial Results
May 09 2019 - 4:05PM
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
first quarter ended March 31, 2019.
“Altair delivered an excellent first quarter, with
financial results above guidance,” said James Scapa, founder,
chairman and chief executive officer. “We look forward to
continued success throughout 2019 as we expand our footprint within
our user base, industries and geographies. Our
simulation-centric portfolio for design, data, cloud and AI is
uniquely positioned for growth as these technologies converge.”
First Quarter 2019 Financial
Highlights
- Software product revenue was $103.3 million.
- Non-GAAP software product revenue was $105.5 million.
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 $127.9 million.
- Non-GAAP total revenue was $130.1 million. 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 income was $13.0 million. Diluted net income per share was
$0.17 based on 76.7 million diluted weighted average common shares
outstanding.
- Adjusted EBITDA was $24.0 million. 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 determined by
management.
- Modified Adjusted EBITDA was $26.2 million. 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 $20.2 million. Non-GAAP diluted net
income per share was $0.26 based on 77.7 million non-GAAP diluted
common shares outstanding. Non-GAAP net income excludes stock-based
compensation, amortization of intangible assets related to
acquisitions, non-recurring adjustments, revenue not recognized
under GAAP due to acquisition accounting and certain tax
adjustments.
- Free cash flow, which consists of cash flow from operations
less capital expenditures, was $20.7 million.
Business Outlook
Based on information available as of today, Altair
is issuing guidance for the second quarter and full year
2019.
|
Second Quarter 2019 |
Full Year 2019 |
Software Product Revenue |
$ |
83.0 |
|
to |
$ |
85.0 |
|
$ |
373.0 |
to |
$ |
377.0 |
Non-GAAP Software Product Revenue |
$ |
85.2 |
|
|
$ |
87.2 |
|
$ |
382.0 |
|
$ |
386.0 |
Total Revenue |
$ |
106.0 |
|
|
$ |
108.0 |
|
$ |
470.0 |
|
$ |
474.0 |
Non-GAAP Total Revenue |
$ |
108.2 |
|
|
$ |
110.2 |
|
$ |
479.0 |
|
$ |
483.0 |
Net (Loss) Income |
$ |
(2.9 |
) |
|
$ |
(0.9 |
) |
$ |
14.6 |
|
$ |
18.6 |
Non-GAAP Net Income |
$ |
5.6 |
|
|
$ |
7.6 |
|
$ |
47.8 |
|
$ |
51.8 |
Adjusted EBITDA |
$ |
3.8 |
|
|
$ |
5.8 |
|
$ |
53.0 |
|
$ |
57.0 |
Modified Adjusted EBITDA |
$ |
6.0 |
|
|
$ |
8.0 |
|
$ |
62.0 |
|
$ |
66.0 |
(All figures in millions)
Conference Call Information
What: |
Altair’s First Quarter 2019 Financial Results Conference Call |
When: |
Thursday, May 9, 2019 |
Time: |
4:30 p.m. ET |
Live Call: |
(866) 754-5204, Domestic (636)
812-6621, International |
Replay: |
(855) 859-2056, Conference ID
6894064, Domestic(404) 537-3406, Conference ID 6894064,
International |
Webcast: |
http://investor.altair.com
(live & replay) |
Non-GAAP Financial MeasuresThis
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 second 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. 332pr@altair.com
Altair Engineering Inc. and Subsidiaries |
|
Consolidated Balance
Sheets |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
March 31, 2019 |
|
December 31, 2018 |
|
(In thousands) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
39,771 |
|
|
$ |
35,345 |
|
|
Accounts receivable, net |
|
|
88,358 |
|
|
|
96,803 |
|
|
Inventory, net |
|
|
3,389 |
|
|
|
1,964 |
|
|
Income tax receivable |
|
|
8,137 |
|
|
|
4,431 |
|
|
Prepaid expenses and other current assets |
|
|
15,976 |
|
|
|
15,491 |
|
|
Total current assets |
|
|
155,631 |
|
|
|
154,034 |
|
|
Property and equipment, net |
|
|
33,524 |
|
|
|
30,153 |
|
|
Operating lease right of use assets |
|
|
29,892 |
|
|
|
- |
|
|
Goodwill |
|
|
210,714 |
|
|
|
210,532 |
|
|
Other intangible assets, net |
|
|
68,469 |
|
|
|
69,836 |
|
|
Deferred tax assets |
|
|
1,978 |
|
|
|
1,373 |
|
|
Other long-term assets |
|
|
18,658 |
|
|
|
17,288 |
|
|
TOTAL ASSETS |
|
$ |
518,866 |
|
|
$ |
483,216 |
|
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’
EQUITY |
|
CURRENT LIABILITIES: |
|
|
|
|
|
Current portion of long-term debt |
|
$ |
453 |
|
|
$ |
331 |
|
|
Accounts payable |
|
|
6,569 |
|
|
|
8,357 |
|
|
Accrued compensation and benefits |
|
|
28,643 |
|
|
|
31,740 |
|
|
Current portion of operating lease liabilities |
|
|
9,464 |
|
|
|
- |
|
|
Other accrued expenses and current liabilities |
|
|
31,910 |
|
|
|
27,565 |
|
|
Deferred revenue |
|
|
66,030 |
|
|
|
59,765 |
|
|
Total current liabilities |
|
|
143,069 |
|
|
|
127,758 |
|
|
Long-term debt, net of current portion |
|
|
15,686 |
|
|
|
31,417 |
|
|
Operating lease liabilities, net of current portion |
|
|
21,744 |
|
|
|
- |
|
|
Deferred revenue, non-current |
|
|
6,511 |
|
|
|
6,754 |
|
|
Other long-term liabilities |
|
|
27,811 |
|
|
|
28,153 |
|
|
TOTAL LIABILITIES |
|
|
214,821 |
|
|
|
194,082 |
|
|
Commitments and contingencies |
|
|
|
|
|
MEZZANINE EQUITY |
|
|
2,352 |
|
|
|
2,352 |
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
Preferred stock ($0.0001 par value), authorized 45,000 shares, none
issued andoutstanding |
|
|
— |
|
|
|
— |
|
|
Common stock ($0.0001 par value) |
|
|
|
|
|
Class A common stock, authorized 513,797 shares, issued and
outstanding38,760 and 38,349 shares as of March 31, 2019 and
December 31, 2018,respectively |
|
|
4 |
|
|
|
4 |
|
|
Class B common stock, authorized 41,203 shares, issued and
outstanding32,171 and 32,171 shares as of March 31, 2019 and
December 31, 2018,respectively |
|
|
3 |
|
|
|
3 |
|
|
Additional paid-in capital |
|
|
381,159 |
|
|
|
379,832 |
|
|
Accumulated deficit |
|
|
(68,986 |
) |
|
|
(82,005 |
) |
|
Accumulated other comprehensive loss |
|
|
(10,487 |
) |
|
|
(11,052 |
) |
|
TOTAL STOCKHOLDERS’ EQUITY |
|
|
301,693 |
|
|
|
286,782 |
|
|
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
|
$ |
518,866 |
|
|
$ |
483,216 |
|
|
|
|
|
|
|
|
Altair Engineering Inc. and Subsidiaries |
|
Consolidated Statements of Operations |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
(in thousands, except per share data) |
|
|
2019 |
|
|
|
2018 |
|
|
|
Revenue |
|
|
|
|
|
|
License |
|
$ |
76,621 |
|
|
$ |
66,935 |
|
|
|
Maintenance and other services |
|
|
26,670 |
|
|
|
22,734 |
|
|
|
Total software |
|
|
103,291 |
|
|
|
89,669 |
|
|
|
Software related services |
|
|
9,772 |
|
|
|
9,473 |
|
|
|
Total software and related services |
|
|
113,063 |
|
|
|
99,142 |
|
|
|
Client engineering services |
|
|
12,050 |
|
|
|
12,080 |
|
|
|
Other |
|
|
2,746 |
|
|
|
2,035 |
|
|
|
Total revenue |
|
|
127,859 |
|
|
|
113,257 |
|
|
|
Cost of revenue |
|
|
|
|
|
|
License * |
|
|
5,821 |
|
|
|
3,730 |
|
|
|
Maintenance and other services * |
|
|
8,531 |
|
|
|
7,192 |
|
|
|
Total software |
|
|
14,352 |
|
|
|
10,922 |
|
|
|
Software related services |
|
|
6,518 |
|
|
|
6,709 |
|
|
|
Total software and related services |
|
|
20,870 |
|
|
|
17,631 |
|
|
|
Client engineering services |
|
|
9,800 |
|
|
|
10,200 |
|
|
|
Other |
|
|
2,215 |
|
|
|
1,211 |
|
|
|
Total cost of revenue |
|
|
32,885 |
|
|
|
29,042 |
|
|
|
Gross profit |
|
|
94,974 |
|
|
|
84,215 |
|
|
|
Operating expenses: |
|
|
|
|
|
|
Research and development* |
|
|
27,516 |
|
|
|
22,703 |
|
|
|
Sales and marketing* |
|
|
26,451 |
|
|
|
18,627 |
|
|
|
General and administrative* |
|
|
20,329 |
|
|
|
16,990 |
|
|
|
Amortization of intangible assets |
|
|
3,528 |
|
|
|
1,940 |
|
|
|
Other operating income |
|
|
(617 |
) |
|
|
(2,191 |
) |
|
|
Total operating expenses |
|
|
77,207 |
|
|
|
58,069 |
|
|
|
Operating income |
|
|
17,767 |
|
|
|
26,146 |
|
|
|
Interest expense |
|
|
270 |
|
|
|
16 |
|
|
|
Other expense (income), net |
|
|
390 |
|
|
|
(900 |
) |
|
|
Income before income taxes |
|
|
17,107 |
|
|
|
27,030 |
|
|
|
Income tax expense |
|
|
4,088 |
|
|
|
2,346 |
|
|
|
Net income |
|
$ |
13,019 |
|
|
$ |
24,684 |
|
|
|
Income per share: |
|
|
|
|
|
|
Net income per share attributable to common stockholders,
basic |
|
$ |
0.18 |
|
|
$ |
0.39 |
|
|
|
Net income per share attributable to common stockholders,
diluted |
|
$ |
0.17 |
|
|
$ |
0.34 |
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
Weighted average number of shares used in computing net income per
share,basic |
|
|
70,786 |
|
|
|
63,638 |
|
|
|
Weighted average number of shares used in computing net income per
share,diluted |
|
|
76,720 |
|
|
|
72,390 |
|
|
|
|
|
|
|
|
|
|
*Amounts include
stock-based compensation expense as follows (in
thousands): |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Three Months Ended March 31, |
|
|
|
2019 |
|
|
2018 |
Cost of revenue – software |
|
$ |
64 |
|
$ |
8 |
Research and development |
|
|
358 |
|
|
47 |
Sales and marketing |
|
|
462 |
|
|
41 |
General and administrative |
|
|
328 |
|
|
120 |
Total stock-based compensation expense |
|
$ |
1,212 |
|
$ |
216 |
|
|
|
|
|
Altair Engineering Inc. and Subsidiaries |
|
Consolidated Statements of Cash Flows |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
(In thousands) |
|
|
2019 |
|
|
|
2018 |
|
|
OPERATING ACTIVITIES: |
|
|
|
|
|
Net income |
|
$ |
13,019 |
|
|
$ |
24,684 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
5,194 |
|
|
|
3,543 |
|
|
Provision for bad debt |
|
|
120 |
|
|
|
65 |
|
|
Stock-based compensation expense |
|
|
1,212 |
|
|
|
216 |
|
|
Deferred income taxes |
|
|
(654 |
) |
|
|
271 |
|
|
Other, net |
|
|
4 |
|
|
|
(7 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
7,678 |
|
|
|
4,492 |
|
|
Prepaid expenses and other current assets |
|
|
(5,755 |
) |
|
|
(1,091 |
) |
|
Other long-term assets |
|
|
(1,516 |
) |
|
|
116 |
|
|
Accounts payable |
|
|
(1,792 |
) |
|
|
510 |
|
|
Accrued compensation and benefits |
|
|
(2,815 |
) |
|
|
(1,560 |
) |
|
Other accrued expenses and current liabilities |
|
|
4,093 |
|
|
|
(3,545 |
) |
|
Operating lease right-of-use assets and liabilities, net |
|
|
286 |
|
|
|
- |
|
|
Deferred revenue |
|
|
6,241 |
|
|
|
(1,005 |
) |
|
Net cash provided by operating activities |
|
|
25,315 |
|
|
|
26,689 |
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
Capital expenditures |
|
|
(4,583 |
) |
|
|
(1,684 |
) |
|
Payments for acquisition of developed technology |
|
|
(344 |
) |
|
|
(353 |
) |
|
Payments for acquisition of businesses, net of cash acquired |
|
|
— |
|
|
|
(1,199 |
) |
|
Other investing activities, net |
|
|
2 |
|
|
|
23 |
|
|
Net cash used in investing activities |
|
|
(4,925 |
) |
|
|
(3,213 |
) |
|
FINANCING ACTIVITIES: |
|
|
|
|
|
Payments on revolving commitment |
|
|
(68,395 |
) |
|
|
— |
|
|
Borrowings under revolving commitment |
|
|
52,289 |
|
|
|
— |
|
|
Proceeds from the exercise of stock options |
|
|
458 |
|
|
|
302 |
|
|
Payments for initial public offering costs |
|
|
— |
|
|
|
(186 |
) |
|
Other financing activities |
|
|
(119 |
) |
|
|
(111 |
) |
|
Net cash (used in) provided by financing
activities |
|
|
(15,767 |
) |
|
|
5 |
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
|
(176 |
) |
|
|
495 |
|
|
Net increase in cash, cash equivalents and restricted cash |
|
|
4,447 |
|
|
|
23,976 |
|
|
Cash, cash equivalents and restricted cash at beginning of
year |
|
|
35,685 |
|
|
|
39,578 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
40,132 |
|
|
$ |
63,554 |
|
|
Supplemental disclosure of cash flow: |
|
|
|
|
|
Interest paid |
|
$ |
225 |
|
|
$ |
10 |
|
|
Income taxes paid |
|
$ |
2,327 |
|
|
$ |
2,143 |
|
|
Supplemental disclosure of non-cash investing and financing
activities: |
|
|
|
|
|
Finance leases |
|
$ |
488 |
|
|
$ |
565 |
|
|
Property and equipment in accounts payable |
|
$ |
295 |
|
|
$ |
736 |
|
|
|
|
|
|
|
|
Financial Results
The following table provides a reconciliation of Non-GAAP net
income and Non-GAAP diluted income per share to net income and
income per share - diluted, the most comparable GAAP financial
measures (in thousands, except per share amounts): |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
Net
income |
|
$ |
13,019 |
|
|
$ |
24,684 |
|
|
Stock-based
compensation expense |
|
|
1,212 |
|
|
|
216 |
|
|
Amortization of
intangible assets |
|
|
3,528 |
|
|
|
1,940 |
|
|
Acquisition related deferred revenue (1) |
|
|
2,250 |
|
|
|
- |
|
|
Special adjustments (2) |
|
|
228 |
|
|
|
(1,152 |
) |
|
|
Income tax effect of non-GAAP adjustments (3) |
|
|
(54 |
) |
|
|
- |
|
|
|
Non-GAAP net income |
|
$ |
20,183 |
|
|
$ |
25,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share -
diluted |
|
$ |
0.17 |
|
|
$ |
0.34 |
|
|
Non-GAAP income
per share - diluted |
|
$ |
0.26 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
GAAP diluted
shares outstanding: |
|
|
76,720 |
|
|
|
72,390 |
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
shares outstanding: |
|
|
77,700 |
|
|
|
72,800 |
|
|
|
|
|
|
|
|
|
(1 |
) |
Represents revenue not recognized under GAAP due to acquisition
accounting adjustment associated with the accounting for deferred
revenue in significant business combinations. |
|
(2 |
) |
Includes an impairment charge for royalty contracts resulting in
$0.2 million and $0.9 million of expense for the three months ended
March 31, 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 three months ended March 31,
2018. |
|
(3 |
) |
The income tax effect of non-GAAP adjustments for 2018 is affected
by the U.S. valuation allowance. |
|
The following table provides a reconciliation of Adjusted EBITDA
and Modified Adjusted EBITDA to net income, the most comparable
GAAP financial measure (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
2019 |
|
|
2018 |
|
|
|
Net income |
|
$ |
13,019 |
|
$ |
24,684 |
|
|
|
Income tax expense |
|
|
4,088 |
|
|
2,346 |
|
|
|
Stock-based compensation expense |
|
|
1,212 |
|
|
216 |
|
|
|
Interest expense |
|
|
270 |
|
|
16 |
|
|
|
Interest income and other(1) |
|
|
201 |
|
|
(1,255 |
) |
|
|
Depreciation and amortization |
|
|
5,194 |
|
|
3,543 |
|
|
|
Adjusted EBITDA |
|
$ |
23,984 |
|
$ |
29,550 |
|
|
|
|
|
|
|
|
|
|
|
Acquisition related deferred revenue (2) |
|
$ |
2,250 |
|
$ |
- |
|
|
|
Modified Adjusted EBITDA |
|
$ |
26,234 |
|
$ |
29,550 |
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Includes an impairment charge for royalty contracts resulting in
$0.2 million and $0.9 million of expense for the three months ended
March 31, 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 three months ended March 31,
2018. |
|
|
|
(2 |
) |
Represents revenue not recognized under GAAP due to acquisition
accounting adjustment associated with the accounting for deferred
revenue in significant business combinations. |
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of Free Cash Flow to
net cash provided by operating activities, the most comparable GAAP
financial measure (in thousands): |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Three Months Ended March 31, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
Net cash provided by operating activities |
|
$ |
25,315 |
|
|
$ |
26,689 |
|
|
Capital expenditures |
|
|
(4,583 |
) |
|
|
(1,684 |
) |
|
Free cash flow |
|
$ |
20,732 |
|
|
$ |
25,005 |
|
|
|
|
|
|
|
|
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 (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Three months ending |
|
Year ending |
|
|
June 30, 2019 |
|
December 31, 2019 |
|
|
low |
|
high |
|
low |
|
high |
Net (loss)
income |
$ |
(2,900 |
) |
|
$ |
(900 |
) |
|
$ |
14,600 |
|
$ |
18,600 |
Stock-based
compensation expense |
|
2,000 |
|
|
|
2,000 |
|
|
|
7,000 |
|
|
7,000 |
Amortization of
intangible assets |
|
3,800 |
|
|
|
3,800 |
|
|
|
15,200 |
|
|
15,200 |
Software licenses deferred revenue fair value adjustment (1) |
|
2,200 |
|
|
|
2,200 |
|
|
|
9,000 |
|
|
9,000 |
Non-recurring
adjustments |
|
500 |
|
|
|
500 |
|
|
|
2,000 |
|
|
2,000 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
$ |
5,600 |
|
|
$ |
7,600 |
|
|
$ |
47,800 |
|
$ |
51,800 |
|
|
|
|
|
|
|
|
|
(1) Adjustments for revenue not recognized under GAAP due to
acquisition accounting adjustment associated with the accounting
for deferred revenue in significant business combinations. |
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of projected Adjusted
EBITDA to projected net (loss) income, the most comparable GAAP
financial measure (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Three months ending |
|
Year ending |
|
|
June 30, 2019 |
|
December 31, 2019 |
|
|
low |
|
high |
|
low |
|
high |
Net (loss)
income |
$ |
(2,900 |
) |
|
$ |
(900 |
) |
|
$ |
14,600 |
|
$ |
18,600 |
Income tax
expense |
|
(1,000 |
) |
|
|
(1,000 |
) |
|
|
7,200 |
|
|
7,200 |
Stock-based
compensation expense |
|
2,000 |
|
|
|
2,000 |
|
|
|
7,000 |
|
|
7,000 |
Interest
expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Depreciation and
amortization |
|
5,200 |
|
|
|
5,200 |
|
|
|
22,200 |
|
|
22,200 |
Interest income
and other non-recurring adjustments |
|
500 |
|
|
|
500 |
|
|
|
2,000 |
|
|
2,000 |
|
Adjusted EBITDA |
$ |
3,800 |
|
|
$ |
5,800 |
|
|
$ |
53,000 |
|
$ |
57,000 |
|
|
|
|
|
|
|
|
|
Software licenses deferred revenue fair value adjustment (1) |
|
2,200 |
|
|
|
2,200 |
|
|
|
9,000 |
|
|
9,000 |
|
Modified Adjusted EBITDA |
$ |
6,000 |
|
|
$ |
8,000 |
|
|
$ |
62,000 |
|
$ |
66,000 |
|
|
|
|
|
|
|
|
|
(1) Adjustments for revenue not recognized under GAAP due to
acquisition accounting adjustment 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 (in millions): |
|
|
(Unaudited) |
|
|
Three months ending |
|
Year ending |
|
|
June 30, 2019 |
|
December 31, 2019 |
|
|
low |
|
high |
|
low |
|
high |
Total Revenue (GAAP) |
$ |
106.0 |
|
|
$ |
108.0 |
|
|
$ |
470.0 |
|
$ |
474.0 |
Software licenses deferred revenue fair value adjustment (1) |
|
2.2 |
|
|
|
2.2 |
|
|
|
9.0 |
|
|
9.0 |
Non-GAAP Total Revenue |
$ |
108.2 |
|
|
$ |
110.2 |
|
|
$ |
479.0 |
|
$ |
483.0 |
|
|
|
|
|
|
|
|
|
(1) Adjustments for revenue not recognized under GAAP due to
acquisition accounting adjustment associated with the accounting
for deferred revenue in significant business combinations. |
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of Non-GAAP Software
Product Revenue to Total Software Product Revenue, the most
comparable GAAP financial measure (in millions): |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Three months ending |
|
Year ending |
|
|
June 30, 2019 |
|
December 31, 2019 |
|
|
low |
|
high |
|
low |
|
high |
Total Software Product Revenue (GAAP) |
$ |
83.0 |
|
|
$ |
85.0 |
|
|
$ |
373.0 |
|
$ |
377.0 |
Software licenses deferred revenue fair value adjustment (1) |
|
2.2 |
|
|
|
2.2 |
|
|
|
9.0 |
|
|
9.0 |
Non-GAAP Total Software Product Revenue |
$ |
85.2 |
|
|
$ |
87.2 |
|
|
$ |
382.0 |
|
$ |
386.0 |
|
|
|
|
|
|
|
|
|
(1) Adjustments for revenue not recognized under GAAP due to
acquisition accounting adjustment associated with the accounting
for deferred revenue in significant business combinations. |
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