Endurance International Group Reports 2019 Second Quarter Results

Date : 08/01/2019 @ 12:05PM
Source : GlobeNewswire Inc.
Stock : Endurance International Group Holdings Inc (EIGI)
Quote : 5.69  -0.37 (-6.11%) @ 11:00PM

Endurance International Group Reports 2019 Second Quarter Results

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Endurance International Group Holdings, Inc. (NASDAQ: EIGI), a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online, today reported financial results for its second quarter ended June 30, 2019.

“We are pleased with our progress simplifying our operations and executing our 2019 plans across the company,” commented Jeffrey H. Fox, president and chief executive officer of Endurance International Group. “The team is focused on delivering increasing solution value to the customers of our two scale businesses, email marketing and web presence.  We are pleased with the progress in our net customer trends and remain focused on executing our transition to revenue growth in the second half of 2019.”

Second Quarter 2019 Financial Highlights

  • Revenue for the second quarter of 2019 was $278.2 million, a decrease of 3.3 percent compared to $287.8 million for the second quarter of 2018.
  • Net loss for the second quarter of 2019 was $26.2 million, or $(0.18) per diluted share, compared to net income of $0.6 million, or $0.00 per diluted share, for the second quarter of 2018.
  • Adjusted EBITDA for the second quarter of 2019 was $76.3 million, a decrease of 10.2 percent compared to $85.0 million for the second quarter of 2018.
  • Cash flow from operations for the second quarter of 2019 was $59.7 million, an increase of 99.7 percent compared to $29.9 million for the second quarter of 2018.
  • Free cash flow, defined as cash flow from operations less capital expenditures and financed equipment obligations, for the second quarter of 2019 was $47.6 million, an increase of 137.2 percent compared to $20.1 million for the second quarter of 2018.

Second Quarter Operating Highlights

  • Total subscribers on platform at June 30, 2019 were approximately 4.769 million, compared to approximately 4.918 million subscribers at June 30, 2018 and approximately 4.802 million subscribers at December 31, 2018.  See “Total Subscribers” below.
  • Average revenue per subscriber, or ARPS, for the second quarter of 2019 was $19.42, compared to $19.32 for the second quarter of 2018 and $19.50 for the fourth quarter of 2018.  See “Average Revenue Per Subscriber” below.

Fiscal 2019 Guidance

For the full year ending December 31, 2019, and as of the date of this release, August 1, 2019, the Company continues to expect:

 2018 Actualas Reported Guidance(as of August 1, 2019) 
GAAP revenue$1.145 billion $1.120 to $1.140 billion
Adjusted EBITDA$338 million $300 to $320 million
Free cash flow$129 million $110 to $120 million

Adjusted EBITDA and free cash flow are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to their most comparable measure calculated in accordance with GAAP is provided in the financial statement tables included at the end of this press release.

First and Second Quarter 2018 Income Tax Expense Revision

As originally disclosed in third quarter of 2018, the Company revised its deferred income tax provision for the first and second quarter of 2018 to reflect a revision that favorably impacted net income (loss) for these periods.  This revision did not impact the previously reported figures for Adjusted EBITDA, Cash Flow from Operations or Free Cash Flow.

Conference Call and Webcast Information

Endurance International Group’s second quarter 2019 financial results teleconference and webcast is scheduled to begin at 8:00 a.m. EDT on Thursday, August 1, 2019. To participate on the live call, analysts and investors should dial (888) 734-0328 at least ten minutes prior to the call. Endurance International Group will also offer a live and archived webcast of the conference call, accessible from the Investor Relations section of the Company’s website at http://ir.endurance.com.

Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, we use adjusted EBITDA and free cash flow, which are non-GAAP financial measures, to evaluate the operating and financial performance of our business, identify trends affecting our business, develop projections and make strategic business decisions.  A non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flow that excludes amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP or includes amounts that are excluded from the most directly comparable measure calculated and presented in accordance with GAAP.

Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and exclude expenses that may have a material impact on our reported financial results. For example, adjusted EBITDA excludes interest expense, which has been and will continue to be for the foreseeable future a significant recurring expense in our business. The presentation of non-GAAP financial information is not meant to be considered in isolation from, or as a substitute for, the most directly comparable financial measures prepared in accordance with GAAP. We urge you to review the additional information about adjusted EBITDA and free cash flow shown below, including the reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net (loss) income, excluding the impact of interest expense (net), income tax expense (benefit), depreciation, amortization of other intangible assets, stock-based compensation, restructuring expenses, transaction expenses and charges, (gain) loss of unconsolidated entities, impairment of other long-lived assets, SEC investigations reserve, and shareholder litigation reserve. We view adjusted EBITDA as a performance measure and believe it helps investors evaluate and compare our core operating performance from period to period.

Free Cash Flow, or FCF, is a non-GAAP financial measure that we calculate as cash flow from operations less capital expenditures and financed equipment obligations. We believe that FCF provides investors with an indicator of our ability to generate positive cash flows after meeting our obligations with regard to capital expenditures (including financed equipment obligations).

Key Operating Metrics

Total Subscribers - We define total subscribers as the approximate number of subscribers that, as of the end of a period, are identified as subscribing directly to our products on a paid basis, excluding accounts that access our solutions via resellers or that purchase only domain names from us. Subscribers of more than one brand, and subscribers with more than one distinct billing relationship or subscription with us, are counted as separate subscribers. Total subscribers for a period reflects adjustments to add or subtract subscribers as we integrate acquisitions and/or are otherwise able to identify subscribers that meet, or do not meet, this definition of total subscribers. In the second quarter of 2019, these adjustments had a negligible impact on our total subscriber count.

Average Revenue Per Subscriber (ARPS) - We calculate ARPS as the amount of revenue we recognize in a period, including marketing development funds and other revenue not received from subscribers, divided by the average of the number of total subscribers at the beginning of the period and at the end of the period, which we refer to as average subscribers for the period, divided by the number of months in the period. See definition of “Total Subscribers” above. ARPS does not represent an exact measure of the average amount a subscriber spends with us each month, since our calculation of ARPS is impacted by revenues generated by non-subscribers.

Forward-Looking StatementsThis press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements addressing or reflecting our expectation of a transition back to revenue growth in the second half of 2019, our financial guidance for fiscal year 2019, the expected outcome of our investment and operational plans, including our focus on simplifying our business and delivering increased customer value, and our expectations of future growth and financial and operational performance in general. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, and statements identified by words such as “expects,” "anticipates," “believes,” “estimates,” “may,” “continue,” “positions,” “confident,” and variations of such words or words of similar meaning and the use of future dates. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that these plans, intentions, expectations, strategies or prospects will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: the possibility that our financial guidance or our actual financial results may differ from expectations; the possibility that we may not be able to execute our investment or operational plans or that these plans will not result in the anticipated benefits to our business; the possibility that we will continue to experience decreases in our subscriber base; an adverse impact on our business from litigation or regulatory proceedings; an adverse impact on our business from our substantial indebtedness and the cost of servicing our debt; the rate of growth of the Small and Medium Business (“SMB”) market for our solutions; our inability to increase sales to our existing subscribers, or retain our existing subscribers; data breaches; system or Internet failures; our inability to maintain or improve our competitive position or market share; and other risks and uncertainties discussed in our filings with the SEC, including those set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2018 filed with the SEC on February 21, 2019 and other reports we file with the SEC.

We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

About Endurance International GroupEndurance International Group Holdings, Inc. (NASDAQ:EIGI) helps millions of small businesses worldwide with products and technology to enhance their online web presence, email marketing, business solutions, and more. The Endurance family of brands includes: Constant Contact, Bluehost, HostGator and Domain.com, among others. Headquartered in Burlington, Massachusetts, Endurance employs over 3,800 people across the United States, Brazil, India and the Netherlands. For more information, visit: www.endurance.com.

Endurance International Group and the compass logo are trademarks of The Endurance International Group, Inc.  Constant Contact, the Constant Contact logo and other brand names of Endurance International Group are trademarks of The Endurance International Group, Inc. or its subsidiaries.

Investor Contact:Angela WhiteEndurance International Group(781) 852-3450ir@endurance.com

Press Contact:Kristen AndrewsEndurance International Group(781) 418-6716press@endurance.com

Endurance International Group Holdings, Inc.Consolidated Balance Sheets(in thousands, except share and per share amounts)

 December 31, 2018 June 30, 2019
Assets  (unaudited)
Current assets:   
Cash and cash equivalents$88,644  $90,818 
Restricted cash1,932  1,832 
Accounts receivable12,205  12,989 
Prepaid domain name registry fees56,779  57,326 
Prepaid commissions41,458  41,704 
Prepaid and refundable taxes7,235  6,517 
Prepaid expenses and other current assets27,855  26,411 
Total current assets236,108  237,597 
Property and equipment—net92,275  88,700 
Operating lease right-of-use assets  104,210 
Goodwill1,849,065  1,848,949 
Other intangible assets—net352,516  292,191 
Deferred financing costs—net2,656  2,221 
Investments15,000  15,000 
Prepaid domain name registry fees, net of current portion11,207  11,281 
Prepaid commissions, net of current portion42,472  45,160 
Other assets5,208  2,778 
Total assets$2,606,507  $2,648,087 
Liabilities and stockholders’ equity   
Current liabilities:   
Accounts payable$12,449  $14,933 
Accrued expenses79,279  64,774 
Accrued taxes2,498  2,418 
Accrued interest25,259  24,483 
Deferred revenue371,758  376,046 
Operating lease liabilities—short term  22,483 
Current portion of notes payable31,606  31,606 
Current portion of financed equipment8,379  4,583 
Deferred consideration—short term2,425  1,408 
Other current liabilities3,147  2,319 
Total current liabilities536,800  545,053 
Long-term deferred revenue96,140  99,249 
Operating lease liabilities—long term  90,989 
Notes payable—long term, net of original issue discounts of $21,349 and $19,151 and deferred financing costs of $31,992 and $28,919, respectively1,770,055  1,725,326 
Deferred tax liability16,457  18,785 
Deferred consideration—long term1,364   
Other liabilities11,237  6,460 
Total liabilities2,432,053  2,485,862 
Stockholders’ equity:   
Preferred Stock—par value $0.0001; 5,000,000 shares authorized; no shares issued or outstanding   
Common Stock—par value $0.0001; 500,000,000 shares authorized; 143,444,515 and 145,741,251 shares issued at December 31, 2018 and June 30, 2019, respectively; 143,444,178 and 145,741,251 outstanding at December 31, 2018 and June 30, 2019, respectively14  14 
Additional paid-in capital961,235  979,626 
Accumulated other comprehensive loss(3,211) (4,115)
Accumulated deficit(783,584) (813,300)
Total stockholders’ equity174,454  162,225 
Total liabilities and stockholders’ equity$2,606,507  $2,648,087 

Endurance International Group Holdings, Inc.Consolidated Statements of Operations and Comprehensive Income (Loss)(unaudited)(in thousands, except share and per share amounts)

 Three Months Ended June 30, Six Months Ended June 30,
 2018 2019 2018 2019
Revenue$287,770  $278,204  $579,126  $558,887 
Cost of revenue130,746  139,587  264,652  263,441 
Gross profit157,024  138,617  314,474  295,446 
Operating expense:       
Sales and marketing66,546  65,490  133,902  132,078 
Engineering and development21,959  25,348  41,876  49,042 
General and administrative30,744  31,124  69,519  62,517 
Total operating expense119,249  121,962  245,297  243,637 
Income from operations37,775  16,655  69,177  51,809 
Other income (expense):       
Interest income227  314  431  605 
Interest expense(38,346) (37,037) (74,396) (74,251)
Total other expense—net(38,119) (36,723) (73,965) (73,646)
Loss before income taxes and equity earnings of unconsolidated entities(344) (20,068) (4,788) (21,837)
Income tax (benefit) expense(946) 6,160  (2,889) 7,879 
Income (loss) before equity earnings of unconsolidated entities602  (26,228) (1,899) (29,716)
Equity (income) loss of unconsolidated entities, net of tax(25)   2   
Net income (loss)$627  $(26,228) $(1,901) $(29,716)
Comprehensive income (loss):       
Foreign currency translation adjustments(2,425) 348  (1,845) (53)
Unrealized gain (loss) on cash flow hedge, net of tax (expense) benefit of ($45) and ($370) for the three and six months ended June 30, 2018, respectively, and ($35) and $269 for the three and six months ended June 30, 2019, respectively144  110  1,184  (851)
Total comprehensive loss$(1,654) $(25,770) $(2,562) $(30,620)
Basic net income (loss) per share attributable to Endurance International Group Holdings, Inc.$0.00  $(0.18) $(0.01) $(0.21)
Diluted net income (loss) per share attributable to Endurance International Group Holdings, Inc.$0.00  $(0.18) $(0.01) $(0.21)
Weighted-average common shares used in computing net income (loss) per share:       
Basic142,340,561  145,308,823  141,356,567  144,414,929 
Diluted144,702,002  145,308,823  141,356,567  144,414,929 

Endurance International Group Holdings, Inc.Consolidated Statements of Cash Flows(unaudited)(in thousands)

 Three Months Ended June 30, Six Months Ended June 30,
 2018 2019 2018 2019
Cash flows from operating activities:       
Net income (loss)$627  $(26,228) $(1,901) $(29,716)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:       
Depreciation of property and equipment12,796  10,899  24,864  22,105 
Amortization of other intangible assets25,978  21,349  51,713  42,469 
Impairment of long lived assets  17,892    17,892 
Amortization of deferred financing costs1,092  1,776  2,986  3,509 
Amortization of net present value of deferred consideration123  59  251  120 
Amortization of original issue discounts1,068  1,111  2,126  2,198 
Stock-based compensation7,390  9,354  14,382  18,370 
Deferred tax expense (benefit)(416) 3,533  (4,484) 2,627 
Loss on sale of assets213  110  261  136 
Loss from unconsolidated entities(25)   2   
Financing costs expensed1,228    1,228   
Loss on early extinguishment of debt331    331   
Changes in operating assets and liabilities, net of acquisitions:       
Accounts receivable1,292  590  3,740  (793)
Prepaid expenses and other current assets(5,857) 4,620  (8,668) 2,328 
Prepaid and refundable taxes(1,461) 1,316  (1,102) 725 
Leases right-of-use asset, net  80    653 
Accounts payable and accrued expenses(12,020) 16,377  (11,670) (15,135)
Deferred revenue(2,467) (3,158) 8,193  7,241 
Net cash provided by operating activities29,892  59,680  82,252  74,729 
Cash flows from investing activities:       
Purchases of property and equipment(8,127) (10,741) (13,381) (16,164)
Net cash used in investing activities(8,127) (10,741) (13,381) (16,164)
Cash flows from financing activities:       
Proceeds from issuance of term loan and notes, net of original issue discounts1,580,305    1,580,305   
Repayments of term loans(1,605,207) (25,000) (1,630,693) (50,000)
Payment of financing costs(1,295)   (1,295)  
Payment of deferred consideration(4,196) (2,500) (4,196) (2,500)
Principal payments on financed equipment(1,679) (1,291) (3,909) (3,861)
Proceeds from exercise of stock options431  17  456  22 
Net cash used in financing activities(31,641) (28,774) (59,332) (56,339)
Net effect of exchange rate on cash and cash equivalents and restricted cash(1,405) 470  (1,488) (152)
Net increase (decrease) in cash and cash equivalents and restricted cash(11,281) 20,635  8,051  2,074 
Cash and cash equivalents and restricted cash:       
Beginning of period88,450  72,015  69,118  90,576 
End of period$77,169  $92,650  $77,169  $92,650 
Supplemental cash flow information:       
Interest paid$30,370  $24,094  $72,461  $68,353 
Income taxes paid (received)$1,519  $(1,142) $2,122  $724 

GAAP to Non-GAAP Reconciliation - Adjusted EBITDA

The following table presents a reconciliation of net income (loss) calculated in accordance with GAAP to adjusted EBITDA (all data in thousands):

 Three Months Ended June 30, Six Months Ended June 30,
 2018 2019 2018 2019
Net income (loss)$627  $(26,228) $(1,901) $(29,716)
Interest expense, net(1)38,119  36,723  73,965  73,646 
Income tax (benefit) expense(946) 6,160  (2,889) 7,879 
Depreciation12,796  10,899  24,864  22,105 
Amortization of other intangible assets25,978  21,349  51,713  42,469 
Stock-based compensation7,390  9,354  14,382  18,370 
Restructuring expenses1,295  183  2,824  2,198 
(Gain) loss from unconsolidated entities(25)   2   
Impairment of other long-lived assets  17,892    17,892 
Shareholder litigation reserve(240)   8,260   
Adjusted EBITDA$84,994  $76,332  $171,220  $154,843 

(1) Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.

GAAP to Non-GAAP Reconciliation – Free Cash Flow

The following table reflects the reconciliation of cash flow from operations to free cash flow (“FCF”) (all data in thousands):

 Three Months Ended June 30, Six Months Ended June 30,
 2018  2019  2018  2019 
Cash flows from operations$29,892  $59,680  $82,252  $74,729 
Less:       
Capital expenditures and financed equipment(1)(9,806) (12,032) (17,290) (20,025)
Free cash flow$20,086  $47,648  $64,962  $54,704 

(1)Capital expenditures during the three months ended June 30, 2018 and 2019 includes $1.7 million and $1.3 million, respectively, of principal payments under a three year agreement for equipment financing. Capital expenditures during the six months ended June 30, 2018 and 2019 includes $3.9 million and $3.9 million, respectively, of principal payments under a three year agreement for equipment financing. The remaining balance on the equipment financing is $4.6 million as of June 30, 2019.
  

Average Revenue Per Subscriber - Calculation and Segment Detail

We present our financial results in the following three segments.

  • Web presence. The web presence segment consists primarily of our web hosting brands, including Bluehost and HostGator. This segment also includes related products such as domain names, website security, website design tools and services, and e-commerce products.
  • Email marketing. The email marketing segment consists of Constant Contact email marketing tools and related products and the SinglePlatform digital storefront solution. This segment also generates revenue from sales of our Constant Contact-branded website builder tool.
  • Domain. The domain segment consists of domain-focused brands such as Domain.com, ResellerClub and LogicBoxes as well as certain web hosting brands that are under common management with our domain-focused brands. This segment sells domain names and domain management services to resellers and end users, as well as premium domain names, and also generates advertising revenue from domain name parking. It also resells domain names and domain management services to our web presence segment.

The following table presents the calculation of ARPS, on a consolidated basis and by segment (all data in thousands, except ARPS data):

 Three Months Ended June 30, Six Months Ended June 30,
 2018 2019 2018 2019
Consolidated revenue$287,770  $278,204  $579,126  $558,887 
Consolidated total subscribers4,918  4,769  4,918  4,769 
Consolidated average subscribers for the period4,965  4,776  4,985  4,786 
Consolidated ARPS$19.32  $19.42  $19.36  $19.46 
        
Web presence revenue$152,715  $144,197  $307,732  $290,157 
Web presence subscribers3,737  3,588  3,737  3,588 
Web presence average subscribers for the period3,774  3,600  3,793  3,614 
Web presence ARPS$13.49  $13.35  $13.52  $13.38 
        
Email marketing revenue$102,154  $102,479  $204,601  $205,219 
Email marketing subscribers504  492  504  492 
Email marketing average subscribers for the period511  493  512  494 
Email marketing ARPS$66.60  $69.28  $66.64  $69.21 
        
Domain revenue$32,901  $31,528  $66,793  $63,511 
Domain subscribers677  689  677  689 
Domain average subscribers for the period680  683  680  678 
Domain ARPS$16.13  $15.39  $16.36  $15.62 

The following table presents revenue, gross profit, and a reconciliation by segment of net income (loss) calculated in accordance with GAAP to adjusted EBITDA (all data in thousands):

 Three Months Ended June 30, 2018
 Web presence Email marketing Domain Total
Revenue$152,715  $102,154  $32,901  $287,770 
Gross profit$75,702  $71,376  $9,946  $157,024 
        
Net (loss) income$(6,876) $10,395  $(2,892) $627 
Interest expense, net(1)18,385  17,329  2,405  38,119 
Income tax (benefit) expense(497) (333) (116) (946)
Depreciation8,391  3,406  999  12,796 
Amortization of other intangible assets11,863  13,239  876  25,978 
Stock-based compensation5,424  1,288  678  7,390 
Restructuring expenses788  420  87  1,295 
(Gain) loss of unconsolidated entities(25)     (25)
Impairment of other long-lived assets       
Shareholder litigation reserve(197)   (43) (240)
Adjusted EBITDA$37,256  $45,744  $1,994  $84,994 
        
 Three Months Ended June 30, 2019
 Web presence Email marketing Domain Total
Revenue$144,197  $102,479  $31,528  $278,204 
Gross profit$73,217  $73,589  $(8,189) $138,617 
        
Net (loss) income$(10,262) $4,164  $(20,130) $(26,228)
Interest expense, net(1)17,093  19,110  520  36,723 
Income tax (benefit) expense3,193  2,269  698  6,160 
Depreciation7,767  2,229  903  10,899 
Amortization of other intangible assets9,210  11,408  731  21,349 
Stock-based compensation5,042  3,222  1,090  9,354 
Restructuring expenses155  23  5  183 
(Gain) loss of unconsolidated entities       
Impairment of other long-lived assets    17,892  17,892 
Shareholder litigation reserve       
Adjusted EBITDA$32,198  $42,425  $1,709  $76,332 

 Six Months Ended June 30, 2018
 Web presence Email marketing Domain Total
Revenue$307,732  $204,601  $66,793  $579,126 
Gross profit$150,075  $143,553  $20,846  $314,474 
        
Net (loss) income$(12,984) $15,754  $(4,671) $(1,901)
Interest expense, net(1)35,371  33,738  4,856  73,965 
Income tax (benefit) expense(5,176) 3,830  (1,543) (2,889)
Depreciation16,368  6,552  1,944  24,864 
Amortization of other intangible assets23,871  26,332  1,510  51,713 
Stock-based compensation10,497  2,696  1,189  14,382 
Restructuring expenses1,600  582  642  2,824 
(Gain) loss of unconsolidated entities2      2 
Impairment of other long-lived assets       
Shareholder litigation reserve5,548  1,500  1,212  8,260 
Adjusted EBITDA$75,097  $90,984  $5,139  $171,220 
        
 Six Months Ended June 30, 2019
 Web presence Email marketing Domain Total
Revenue$290,157  $205,219  $63,511  $558,887 
Gross profit$145,458  $147,636  $2,352  $295,446 
        
Net (loss) income$(16,804) $10,102  $(23,014) $(29,716)
Interest expense, net(1)34,188  36,504  2,954  73,646 
Income tax (benefit) expense4,088  2,897  894  7,879 
Depreciation15,716  4,553  1,836  22,105 
Amortization of other intangible assets18,289  22,691  1,489  42,469 
Stock-based compensation9,935  6,305  2,130  18,370 
Restructuring expenses789  1,377  32  2,198 
(Gain) loss of unconsolidated entities       
Impairment of other long-lived assets    17,892  17,892 
Shareholder litigation reserve       
Adjusted EBITDA$66,201  $84,429  $4,213  $154,843 

(1) Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.

The following table represents the impact of the income statement revision to the second quarter of 2018 due to the revised deferred income tax provision (in thousands, except per share data):

 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018
 Originally FiledAdjustmentRevised Originally FiledAdjustmentRevised
Loss before income taxes and equity earnings of unconsolidated subsidiaries$(344)$ $(344) $(4,788)$ $(4,788)
Income tax expense (benefit)1,650 (2,596)(946) 4,267 (7,156)(2,889)
(Loss) income before equity earnings of unconsolidated subsidiaries(1,994)2,596 602  (9,055)7,156 (1,899)
Equity (income) loss of unconsolidated subsidiaries(25) (25) 2  2 
Net income (loss)$(1,969)$2,596 $627  $(9,057)$7,156 $(1,901)
Comprehensive income (loss)       
Foreign currency translation(2,425) (2,425) (1,845) (1,845)
Unrealized (gain) loss on cash flow hedge, net of tax144  144  1,184  1,184 
Total comprehensive loss$(4,250)$2,596 $(1,654) $(9,718)$7,156 $(2,562)
Basic net income (loss) per share$(0.01)$0.01 $  $(0.06)$0.05 $(0.01)
Diluted net income (loss) per share$(0.01)$0.01 $  $(0.06)$0.05 $(0.01)
Weighted-average common shares used in computing net income (loss) per share       
Basic142,340,561  142,340,561  141,356,567  141,356,567 
Diluted142,340,561 2,361,441 144,702,002  141,356,567  141,356,567 

The following table represents the impact of the revised deferred income tax provision on the impacted balance sheet accounts as of the date shown (in thousands):

 June 30, 2018
 Originally FiledAdjustmentRevised
Deferred tax liability$29,897 $(7,156)$22,741 
Total liabilities2,490,106 (7,156)2,482,950 
Accumulated deficit(797,175)7,156 (790,019)
Total stockholders' equity147,759 7,156 154,915 
Total liabilities and stockholders' equity2,637,865  2,637,865 

The following table represents the impact of the revised deferred income tax provision on the impacted lines of the statement of cash flows for the periods shown (in thousands):

 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018
 Originally FiledAdjustmentRevised Originally FiledAdjustmentRevised
Net income (loss)$(1,969)$2,596 $627  $(9,057)$7,156 $(1,901)
Deferred tax expense2,180 (2,596)(416) 2,672 (7,156)(4,484)
Net cash provided by operating activities29,892  29,892  82,252  82,252 

GAAP to Non-GAAP Reconciliation of Fiscal Year 2019 Guidance (as of August 1, 2019) - Adjusted EBITDA

The following table reflects the reconciliation of fiscal year 2019 estimated net loss calculated in accordance with GAAP to fiscal year 2019 guidance for adjusted EBITDA. All figures shown are approximate.

($ in millions)Twelve Months EndingDecember 31, 2019
Estimated net loss$(39)$(32)
Estimated interest expense (net) 146  148 
Estimated income tax expense (benefit) 6  8 
Estimated depreciation 44  48 
Estimated amortization of acquired intangible assets 85  87 
Estimated stock-based compensation 36  38 
Estimated restructuring expenses 4  5 
Estimated transaction expenses and charges    
Estimated (gain) loss of unconsolidated entities    
Estimated impairment of other long-lived assets 18  18 
Adjusted EBITDA guidance$300 $320 

GAAP to Non-GAAP Reconciliation of Fiscal Year 2019 Guidance (as of August 1, 2019) - Free Cash Flow

The following table reflects the reconciliation of fiscal year 2019 estimated cash flow from operations calculated in accordance with GAAP to fiscal year 2019 guidance for free cash flow. All figures shown are approximate.

($ in millions)Twelve Months EndingDecember 31, 2019
Estimated cash flow from operations$160 $175 
Estimated capital expenditures and financed equipment obligations (50) (55)
Free cash flow guidance$110 $120 

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