WALTHAM, Mass., Feb. 11, 2016 /PRNewswire/ -- Lionbridge
Technologies, Inc. (Nasdaq: LIOX), today announced financial
results for the fourth quarter and year ended December 31,
2015.
Financial highlights for FY 2015 include:
- Revenue of $560.0 million, an
increase of $69.4 million or 14% from
the year ended December 31, 2014. In constant currency
revenue, the Company grew $88.9
million or 18% year-on-year.
- GAAP net income of $14.2 million
or $0.23 per share based on 62.4
million fully diluted shares outstanding. GAAP net income grew
$6.1 million or $0.10 per diluted share in FY 2015, reflecting
76% year-on-year growth, despite spending an incremental
$6.5 million in restructuring and
other charges during the year, primarily related to the integration
of CLS Communication, which is now largely complete.
- Adjusted earnings of $39.1
million or $0.63 per share.
The Company defines adjusted earnings, a non-GAAP measure, as net
income (loss) excluding restructuring and other charges,
stock-based compensation, and amortization of acquisition-related
intangible assets. Please see the section of this release entitled
"Non-GAAP Financial Measures" and the attached table for details
and reconciliations of this measure to the comparable GAAP
measure.
- Adjusted EBITDA of $48.6 million.
The Company defines adjusted EBITDA, a non-GAAP measure, as income
from operations excluding depreciation and amortization,
amortization of acquisition-related intangible assets,
restructuring and other charges and stock-based compensation.
Please see the section of this release entitled "Non-GAAP Financial
Measures" and the attached table for details and reconciliations of
this measure to the comparable GAAP measure.
- Cash flow from operations of $21.3
million.
- Ending cash balance of $27.8
million.
- During the year, the Company acquired 1.4 million shares of its
common stock under its share repurchase program for an
aggregate purchase price of $7.4
million.
Business highlights for FY 2015 include:
- Secured more than 36 new enterprise engagements with
world-leading brands across industry sectors including industrial
and manufacturing, retail, aerospace, automotive, entertainment,
and life sciences industries.
- Continued to successfully scale its global marketing offering
aimed at helping global marketing executives manage and optimize
digital marketing campaigns in international markets. Lionbridge
estimates that revenue from its global marketing services grew
approximately 14% year on year and accounted for approximately
$85 million of the Company's revenue
in 2015.
- Scaled Lionbridge onDemand™, a new, online revenue and delivery
channel. In only its second year of operation, Lionbridge onDemand
delivered projects for 665 clients in 2015 and grew revenue more
than 60% year-on-year to approximately $5.2
million.
- Successfully integrated CLS Communication, a market-leader in
translation solutions to clients in the financial services,
industrial and public sector end markets. Lionbridge acquired CLS
Communication in January 2015 and has
now completed the majority of its planned integration and cost
synergies related to the business combination.
- Continued to grow its revenue with clients in new vertical
markets. Most notably, in 2015 the Company grew its life
sciences, manufacturing and automotive verticals each more than 20%
year-on-year in constant currency. In November 2015 the Company also added expertise in
the legal vertical with the acquisition of Geotext, a niche
provider of translation services to law firms and
corporations. These achievements reflect the Company's
ongoing strategy to diversify its revenue into verticals outside of
its traditional technology sector. In 2015 non-technology
verticals accounted for approximately 47% of total company revenue,
as compared to 37% of total revenue in 2014.
"In 2015, we delivered our strongest financial performance in
history with record revenue, ongoing margin expansion and record
earnings despite currency and customer concentration headwinds,"
said Rory Cowan, CEO,
Lionbridge. "As we enter 2016, we have positive momentum
across our business. Revenue from our largest client has remained
stable for the past several quarters. Our CLS integration and
restructuring process is largely complete. Demand for our
marketing and translation services continues to grow. I am
proud of our end market growth and continued customer
diversification, a strategy we committed to three years ago. These
achievements provide a strong foundation for ongoing revenue and
earnings growth in 2016."
Highlights for the fourth quarter ended December 31, 2015
include:
- Revenue of $140.8 million, an
increase of $21.1 million, or 18%
from the fourth quarter of 2014.
- GAAP net income of $2.9 million
or $0.05 per share, based on 62.5
million weighted average diluted shares outstanding. This compares
to a GAAP net loss of $1.2 million or
$0.02 per share in the fourth quarter
of 2014.
- Adjusted earnings of $9.8 million
or $0.16 per share.
- Adjusted EBITDA of $11.8
million.
- Acquired 1.2 million shares of its common stock in the
quarter for an aggregate purchase price of $6.0 million as part of its new share repurchase
program announced in November 2015.
The Company provided an outlook for the first quarter of 2016
with revenue of $137-141 million,
reflecting traditional Q1 seasonality. The Company also affirmed
its expectations for FY 2016 revenue growth of approximately 5-8%
and adjusted EBITDA growth of approximately 20-30% year on year,
depending on fluctuations in exchange rates as well as the timing
of the benefits related to recent cost actions.
Lionbridge management will conduct a conference call at
9:00 a.m. ET this morning to discuss
financial performance for the quarter and other matters, including
matters related to its future performance. To participate, callers
within the United States can dial
800-988-9535 and international callers can dial 312-470-7395. The
pass code for the call is Lionbridge. The conference call will also
be available on the financial events page of the investor relations
section of the Lionbridge website at www.lionbridge.com.
Non-GAAP Financial Measures
In this release, the Company's adjusted earnings, adjusted
earnings per share and adjusted EBITDA are not presented in
accordance with generally accepted accounting principles
(GAAP) and are not intended to be used in lieu of GAAP
presentations of results of operations. These measures are
presented because management believes they provide additional
information to investors with respect to the performance of our
fundamental business activities. "Adjusted earnings" and "Adjusted
EBITDA" as well as "Adjusted Earnings per Share (EPS)" are non-GAAP
financial measures and should not be viewed as alternatives to GAAP
measures of performance. Management believes the most directly
comparable GAAP financial measure for these measures are net income
and diluted net income per share, respectively, and has provided a
reconciliation of GAAP net income to adjusted earnings, adjusted
earnings per share and adjusted EBITDA at the end of this
release.
The Company includes the impact of changes in foreign currency
in its reporting of GAAP revenue. In addition, the Company provides
revenue growth and growth rates in constant currency to exclude the
impact of foreign currency translation, in order to facilitate an
evaluation of our current revenue performance and a comparison to
our past revenue performance. To calculate historical revenue and
revenue growth rates in constant currency, we convert actual net
sales from local currency to U.S. dollars using constant foreign
currency exchange rates in the current and prior period. Revenue
growth rates that exclude the impact of sales from changes in
foreign currency exchange rates are not in accordance with U.S.
GAAP and should not be considered in isolation from or as a
replacement for GAAP reporting.
About Lionbridge
Lionbridge enables more than 800 world-leading brands to
increase international market share, speed adoption of products and
effectively engage their customers in local markets worldwide.
Using our innovative cloud technology platforms and our global
crowd of more than 100,000 professional cloud workers, we provide
translation, online marketing, global content management and
application testing solutions that ensure global brand consistency,
local relevancy and technical usability across all touch points of
the customer lifecycle. Based in Waltham,
Mass., Lionbridge maintains solution centers in 28
countries. To learn more, visit http://www.lionbridge.com.
Forward Looking Statements.
This press release contains forward-looking statements that
involve risks and uncertainties, including anticipated customer
demand for the Company's services, expected financial performance,
expected revenue, adjusted EBITDA and profit growth, and the
momentum, pace and strengthening of such growth in FY 2016. These
forward-looking statements reflect management's current views and
Lionbridge does not undertake to update any of these
forward-looking statements to reflect a change in its views or
events or circumstances that occur after the date hereof except as
required by law. Lionbridge's actual experiences, actions,
financial and operating results may differ materially from those
discussed in the forward-looking statements. Factors that might
cause such a difference include Lionbridge's ability to provide and
maintain high quality services at a competitive price and related
customer satisfaction with such service delivery; the loss of or
reduction in demand from one or more major client or customer,
which would materially affect Lionbridge's business; reorganization
or restructuring initiatives of one or more major clients or
customers, which may impact such customer's demand or requirements
for Lionbridge's services; Lionbridge's ability to expand its
relationships with existing clients, including by offering its
expanded range of services to existing customers; Lionbridge's
ability to broaden its client base; the Company's dependence on
clients' product releases, production schedules and procurement
strategies to generate revenues; the anticipated benefits of
expansion of global language workflow technologies; the anticipated
growth of its Lionbridge OnDemand and digital marketing service
offerings; the impact of competing technologies and platforms on
the Company's existing customer relationships and ability to secure
new customers; the ability of Lionbridge to realize the expected
benefits of its technology initiatives and acquisitions, and the
timing of the realization of such benefits; errors, interruptions
or delays in cloud-based technology; breaches of security measures;
the termination of customer contracts or engagements prior to the
end of their term; the size, timing and recognition of revenue from
clients; the ability of Lionbridge to integrate acquisitions,
including CLS and Geotext, and maintain and expand its customer
relationships and the timing and success of such activities; the
impact of foreign currency fluctuations on revenue, margins, costs,
operating results and profitability and the Company's ability to
successfully manage this exposure through hedge instruments and
other strategies; the portion of the Company's service engagements
that are subject to the impact of foreign currency fluctuations;
continued uncertainty and volatility in global economic conditions
that could negatively affect demand for the Company's services and
technologies; risks associated with conducting business outside of
the United States, including
compliance with changing and potentially conflicting laws and
regulations and expenses and delays associated with any such
activities; longer collection cycles in particular jurisdictions;
risks associated with competition; Lionbridge's ability to forecast
revenue, profitability, technology adoption, customer demand and
operating results; changes in tax rates applicable to the Company
and changes to the interpretations of applicable tax rates in the
jurisdictions in which the Company conducts business; changes in
interpretation of statutory and regulatory positions by
international tax authorities in countries in which Lionbridge
conducts business; changes in interpretation of employment and tax
positions by U.S. state and federal authorities and governmental
authorities outside of the United
States; the risk of claims by third parties of intellectual
property claims; the ability of Lionbridge to respond to
fluctuations in the complexity, timing and mix of services required
by customers; network outages; security breaches; and Lionbridge
being held liable for defects or errors resulting from its services
or technologies; For a more detailed description of the risk
factors associated with Lionbridge, please refer to the Company's
Annual Report on Form 10-K for the year ended December 31,
2014 and subsequent filings with the SEC (copies of which may be
accessed through the SEC's website at http://www.sec.gov.
LIONBRIDGE
TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
$
|
140,812
|
|
|
$
|
119,678
|
|
|
$
|
559,984
|
|
|
$
|
490,612
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and amortization included
below)
|
93,824
|
|
|
80,978
|
|
|
371,649
|
|
|
334,537
|
|
Sales and
marketing
|
12,649
|
|
|
10,861
|
|
|
47,812
|
|
|
40,230
|
|
General and
administrative
|
22,641
|
|
|
19,563
|
|
|
91,665
|
|
|
80,150
|
|
Research and
development
|
1,872
|
|
|
1,751
|
|
|
7,932
|
|
|
6,945
|
|
Depreciation and
amortization
|
3,045
|
|
|
2,080
|
|
|
9,967
|
|
|
7,851
|
|
Amortization of
acquisition-related intangible assets
|
1,145
|
|
|
864
|
|
|
4,124
|
|
|
3,317
|
|
Restructuring and
other charges
|
3,724
|
|
|
4,797
|
|
|
13,083
|
|
|
6,624
|
|
Total operating
expenses
|
138,900
|
|
|
120,894
|
|
|
546,232
|
|
|
479,654
|
|
Income (loss) from
operations
|
1,912
|
|
|
(1,216)
|
|
|
13,752
|
|
|
10,958
|
|
Non-operating expense
(income), net
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Interest on
outstanding debt
|
498
|
|
|
134
|
|
|
1,937
|
|
|
547
|
|
Amortization of
deferred financing charges
|
94
|
|
|
21
|
|
|
373
|
|
|
100
|
|
Interest expense
(income)
|
(18)
|
|
|
(16)
|
|
|
(68)
|
|
|
(75)
|
|
Other expense
(income), net
|
(438)
|
|
|
(944)
|
|
|
(2,773)
|
|
|
(1,097)
|
|
Total non-operating
expense (income), net
|
136
|
|
|
(805)
|
|
|
(531)
|
|
|
(525)
|
|
Income (loss) before
income taxes
|
1,776
|
|
|
(411)
|
|
|
14,283
|
|
|
11,483
|
|
(Benefit from)
provision for income taxes
|
(1,135)
|
|
|
796
|
|
|
46
|
|
|
3,376
|
|
Net income
(loss)
|
$
|
2,911
|
|
|
$
|
(1,207)
|
|
|
$
|
14,237
|
|
|
$
|
8,107
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.05
|
|
|
$
|
(0.02)
|
|
|
$
|
0.24
|
|
|
$
|
0.13
|
|
Diluted
|
$
|
0.05
|
|
|
$
|
(0.02)
|
|
|
$
|
0.23
|
|
|
$
|
0.13
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
60,446
|
|
|
59,798
|
|
|
60,547
|
|
|
60,149
|
|
Diluted
|
62,511
|
|
|
59,798
|
|
|
62,449
|
|
|
63,040
|
|
LIONBRIDGE
TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
|
(In
thousands)
|
December 31,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
27,831
|
|
|
$
|
36,893
|
|
Accounts receivable,
net of allowance of $250 at December 31, 2015 and December 31,
2014
|
86,645
|
|
|
66,479
|
|
Unbilled
receivables
|
23,250
|
|
|
25,843
|
|
Other current
assets
|
12,440
|
|
|
12,090
|
|
Total current
assets
|
150,166
|
|
|
141,305
|
|
Property and
equipment, net
|
25,259
|
|
|
23,622
|
|
Goodwill
|
65,305
|
|
|
21,937
|
|
Acquisition-related
intangible assets, net
|
48,991
|
|
|
12,232
|
|
Other
assets
|
10,539
|
|
|
5,677
|
|
Total
assets
|
$
|
300,260
|
|
|
$
|
204,773
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Debt, current
portion
|
$
|
4,375
|
|
|
$
|
—
|
|
Accounts
payable
|
28,101
|
|
|
21,885
|
|
Accrued compensation
and benefits
|
21,242
|
|
|
17,249
|
|
Accrued
outsourcing
|
9,874
|
|
|
10,429
|
|
Accrued
restructuring
|
4,612
|
|
|
3,492
|
|
Income taxes
payable
|
5,164
|
|
|
2,123
|
|
Accrued expenses and
other current liabilities
|
9,878
|
|
|
10,485
|
|
Deferred
revenue
|
9,398
|
|
|
11,866
|
|
Total current
liabilities
|
92,644
|
|
|
77,529
|
|
Long-term debt, net
of current portion
|
87,485
|
|
|
27,000
|
|
Deferred income
taxes, net of current portion
|
5,360
|
|
|
704
|
|
Other long-term
liabilities
|
21,634
|
|
|
13,786
|
|
Total
liabilities
|
207,123
|
|
|
119,019
|
|
Stockholders'
equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
637
|
|
|
635
|
|
Additional paid-in
capital
|
270,225
|
|
|
272,252
|
|
Accumulated
deficit
|
(189,660)
|
|
|
(203,897)
|
|
Accumulated other
comprehensive income
|
11,935
|
|
|
16,764
|
|
Total stockholders'
equity
|
93,137
|
|
|
85,754
|
|
Total liabilities and
stockholders' equity
|
$
|
300,260
|
|
|
$
|
204,773
|
|
Reconciliation of
GAAP Net Income to Adjusted EBITDA
and GAAP Net
Income to Non-GAAP Adjusted Earnings (Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended December
31,
|
(In
thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
(loss)
|
$
|
2,911
|
|
|
$
|
(1,207)
|
|
|
$
|
14,237
|
|
|
$
|
8,107
|
|
Depreciation and
amortization
|
3,045
|
|
|
2,080
|
|
|
9,967
|
|
|
7,851
|
|
Amortization of
acquisition-related intangible assets
|
1,145
|
|
|
864
|
|
|
4,124
|
|
|
3,317
|
|
Stock-based
compensation
|
2,017
|
|
|
1,670
|
|
|
7,680
|
|
|
7,484
|
|
Restructuring and
other charges
|
3,724
|
|
|
4,797
|
|
|
13,083
|
|
|
6,624
|
|
Non-operating expense
(income), net
|
136
|
|
|
(805)
|
|
|
(531)
|
|
|
(525)
|
|
(Benefit from)
provision for income taxes
|
(1,135)
|
|
|
796
|
|
|
46
|
|
|
3,376
|
|
Adjusted
EBITDA
|
$
|
11,843
|
|
|
$
|
8,195
|
|
|
$
|
48,606
|
|
|
$
|
36,234
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended December
31,
|
(In thousands, except
per share amounts)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
(loss)
|
$
|
2,911
|
|
|
$
|
(1,207)
|
|
|
$
|
14,237
|
|
|
$
|
8,107
|
|
Amortization of
acquisition-related intangible assets
|
1,145
|
|
|
864
|
|
|
4,124
|
|
|
3,317
|
|
Stock-based
compensation
|
2,017
|
|
|
1,670
|
|
|
7,680
|
|
|
7,484
|
|
Restructuring and
other charges
|
3,724
|
|
|
4,797
|
|
|
13,083
|
|
|
6,624
|
|
Adjusted
earnings
|
$
|
9,797
|
|
|
$
|
6,124
|
|
|
$
|
39,124
|
|
|
$
|
25,532
|
|
Fully diluted
weighted-average number of common shares outstanding
|
62,511
|
|
|
59,798
|
|
|
62,449
|
|
|
63,040
|
|
Adjusted
EPS
|
$
|
0.16
|
|
|
$
|
0.10
|
|
|
$
|
0.63
|
|
|
$
|
0.41
|
|
Contact:
Sara Buda
Lionbridge
+1-978-964-1404
sara.buda@lionbridge.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lionbridge-announces-fy-2015-results-with-revenue-of-560-million-gaap-eps-of-023-and-non-gaap-eps-of-063-300218777.html
SOURCE Lionbridge Technologies, Inc.