Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand
HRMS/payroll, compensation and talent management solutions, today
announced financial results for its fourth quarter and fiscal year,
which ended March 31, 2009.
Revenue in the fourth quarter was $11.3 million, an increase of
21% over the fourth quarter of fiscal 2008. Bookings were $12.3
million, an increase of 18% over the fourth quarter of fiscal 2008.
Non-GAAP operating cash flow, which excludes cash payments for
severance, narrowed to an outflow of $0.6 million in the fourth
quarter. GAAP operating cash flow narrowed to an outflow of $1.8
million in the fourth quarter. For the full year, revenue was $42.5
million, up 23% from fiscal 2008.
Kent Plunkett, founder and chief executive officer, stated, "The
fourth quarter marks Salary.com's 32nd quarter of consecutive
revenue growth. Investments the company made in 2009 paid off in
the fourth quarter and we expect new products and technology as
well as our expanded sales pipeline to continue to fuel growth in
fiscal 2010. At the same time, the cost reductions we implemented
in January helped reduce our cash outflow to the lowest level in
four quarters. Furthermore, we remain on track to return to
positive operating cash flow in fiscal 2010."
Plunkett continued, "Fiscal 2010 is off to a promising start as
we are beginning to realize the benefits of our broadened product
suite which provides us with an increasing number of cross-selling
and up-selling opportunities. We believe our combination of strict
cost discipline, combined with a rich, best-in-breed product
portfolio, positions us as a leader in the on-demand human capital
management space."
Fourth Quarter 2009 Financial Summary
-- Fourth quarter revenue was $11.3 million, an increase of 21% over the
fourth quarter of fiscal 2008.
-- On a GAAP basis, for the fourth quarter of fiscal 2009, Salary.com
reported a net loss of $8.8 million, or ($0.55) per diluted share, compared
to a net loss of $3.6 million, or ($0.26) per diluted share, in the fourth
quarter of fiscal 2008.
-- On a non-GAAP basis, excluding the impact of restructuring expenses,
stock-based compensation expense and amortization of intangibles,
Salary.com reported a net loss of $2.8 million, or ($0.18) per diluted
share, for the fourth quarter of fiscal 2009, compared to a net loss of
$1.2 million, or ($0.09) per diluted share, in the fourth quarter of fiscal
2008.
-- Cash and cash equivalents as of March 31, 2009 were $21.1 million,
compared to $23.5 million as of December 31, 2008.
-- Current deferred revenue grew to $26.5 million as of March 31, 2009,
an increase from $25.3 million as of December 31, 2008. Total deferred
revenue was $28.3 million as of March 31, 2009, an increase from $27.3
million as of December 31, 2008.
-- Excluding non-recurring cash payments for severance, non-GAAP cash
flow from operations was a net outflow of $0.6 million in the fourth
quarter of fiscal 2009. Including the non-recurring payments, GAAP cash
flow from operations was a net outflow of $1.8 million.
Fiscal Year 2009 Financial Summary
-- Fiscal year 2009 revenue was $42.5 million, an increase of 23% over
fiscal year 2008.
-- On a GAAP basis, for the fiscal year 2009, Salary.com reported a net
loss of $26.5 million, or ($1.73) per diluted share, compared to a net loss
of $10.6 million, or ($0.77) per diluted share, in the fiscal year 2008.
-- On a non-GAAP basis, excluding the impact of restructuring expenses,
stock-based compensation expense and amortization of intangibles,
Salary.com reported a net loss of $11.8 million, or ($0.77) per diluted
share, for the fiscal year 2009, compared to a net loss of $3.7 million, or
($0.27) per diluted share, in the fiscal year 2008.
-- Excluding non-recurring cash payments for severance, non-GAAP cash
flow from operations was a net outflow of $7.4 million in the fiscal year
2009. Including the non-recurring payments, GAAP cash flow from operations
was a net outflow of $8.6 million.
Additional Fourth Quarter and Fiscal 2009 Business
Highlights
-- Salary.com added over 700 new enterprise customers in fiscal 2009,
increasing enterprise customer count by 25% to over 3,500 at the end of the
fiscal year (including 29% of the Fortune 500).
-- New customer additions in the fourth quarter of fiscal 2009 included
Adams Golf, ADS Alliance Data Systems, Inc., BP America Inc., Coach USA,
NEC Corporation and Nii Holdings Inc.
-- During the fourth quarter, Salary.com repurchased approximately
169,000 shares at an average purchase price of $1.84 per share. To date,
the Company has repurchased approximately 878,000 shares at an average
price of $1.61 per share. The company remains active in repurchasing
shares, and recently increased its authorization from $2.5 million to $7.5
million.
Business Outlook
Bryce Chicoyne, Salary.com's chief financial officer, said, "We
are pleased to show continued revenue growth despite the macro
environment. At the same time, the cost reductions we recently
implemented are having a positive impact on our bottom line
results. We anticipate that the combination of our growing sales
pipeline, our recent success in bundling payroll, compensation
management, and talent management products and continued diligence
with respect to expense management will result in positive
operating cash flow for the company in fiscal 2010."
For the first quarter of fiscal 2010, Salary.com expects total
revenue in the range of $11.0 million to $11.5 million. Non-GAAP
net loss, which excludes non-cash stock-based compensation expenses
of approximately $1.7 million, and amortization of intangibles of
approximately $1.1 million, is expected to be in the range of $2.5
million to $3.0 million. GAAP net loss for the first quarter of
fiscal 2010 is expected to be in the range of $5.4 million to $5.9
million. Weighted average diluted shares for the quarter are
estimated to be approximately 16.3 million shares.
Salary.com expects fiscal 2010 revenue to be in the range of
$46.0 million to $50.0 million and cash flow from operations is
expected to be a positive $1.0 million to $2.0 million. Non-GAAP
net loss, which excludes non-cash impact of stock-based
compensation expense of approximately $10.0 million, and
amortization of intangibles of approximately $4.5 million, is
expected to be in the range of $5.0 million to $9.0 million. On a
GAAP basis, net loss for fiscal 2010 is expected to be in the range
of $19.5 million to $23.5 million. Weighted average diluted shares
for the year are estimated to be approximately 16.5 million
shares.
Conference call
What: Salary.com fourth quarter financial results and business
overview conference call and webcast
When: Thursday, May 14, 2009
Time: 5:00 PM ET
Live Call: (877) 660-8922, domestic
(719) 325-4872, international
Replay: (888) 203-1112, conference ID 2245821, domestic
(719) 457-0820, conference ID 2245821, international
Webcast: http://investor.salary.com/events.cfm (live and replay)
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures in the text of this press
release and accompanying non-GAAP supplemental information
represent financial measures used by Salary.com's management to
evaluate the operating performance of the Company and to conduct
its business operations. Non-GAAP financial measures discussed in
the press release relate to the Company's net income and operating
expenses and exclude amortization of intangible assets, stock-based
compensation, and restructuring charges. This press release also
discusses operating cash flows excluding non-recurring severance
costs as well. By excluding these items and by providing
information on the Company's bookings in addition to its GAAP
revenues, Salary.com can evaluate its operations and can compare
its results on a more consistent basis to the results of other
companies in the industry. Management uses the non-GAAP financial
measures for planning purposes, including the preparation of
operating budgets and to determine appropriate levels of operating
and capital investments. Management also believes that the non-GAAP
financial measures provide additional insight for analysts and
investors in evaluating the Company's financial and operational
performance and in assisting investors in comparing the Company's
financial performance to those of other companies in the Company's
industry, many of which present similar non-GAAP financial measures
to investors. However, these non-GAAP financial measures are not
intended to be an alternative to financial measures prepared in
accordance with GAAP and should not be considered in isolation from
our GAAP results of operations. Pursuant to the requirements of the
SEC Regulation G, a detailed reconciliation between the Company's
GAAP and non-GAAP financial results is provided in this press
release and investors are advised to carefully review and consider
this information as well as the GAAP financial results that are
disclosed in the Company's SEC filings.
About Salary.com, Inc.
Salary.com is a leading provider of on-demand HRMS/payroll
compensation and talent management solutions helping businesses and
individuals manage pay and performance. Salary.com's highly
configurable software applications, proprietary data and consulting
services help HR and compensation professionals automate,
streamline and optimize critical talent management processes
including: market pricing, compensation planning, performance
management, competency management, learning and development,
payroll, and succession planning. Built with compensation and
competency data at the core, Salary.com solutions provide
businesses of all sizes with the most productive and cost-effective
way to manage and inspire their most important asset -- their
people. For more information, visit www.salary.com.
Safe Harbor Statement
This release contains "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These are statements
that are predictive in nature, that depend upon or refer to future
events or conditions, or that include words such as "may," "will,"
"expects," "projects," "anticipates," "estimates," "believes,"
"intends," "plans," "should," "seeks," and similar expressions.
This press release contains forward-looking statements relating to,
among other things, Salary.com's expectations and assumptions
concerning future performance and growth, including expectations of
financial performance in the first quarter of 2010 and the full
fiscal year 2010. Forward-looking statements involve known and
unknown risks and uncertainties that may cause actual future
results to differ materially from those projected or contemplated
in the forward-looking statements. The risks and uncertainties
referred to above include, but are not limited to, the impact of a
global economic recession and uncertainty in the information
technology spending environment, potential disruption to our
business from our workforce reduction, risks associated with
possible fluctuations in our operating results and rate of growth,
integration and performance of acquired businesses, our history of
operating losses, the possibility that we will not achieve GAAP
profitability or our expectations for Non-GAAP net loss, our
ability to expand our customer base and product and service
offerings, interruptions or delays in our service or our Web
hosting, our business model, breach of our security measures, the
emerging market in which we operate, our ability to hire, retain
and motivate our employees and manage our growth, our ability to
generate additional revenues from our investments in sales and
marketing, competition, our ability to continue to release and gain
customer acceptance of new and improved versions of our service,
successful customer deployment and utilization of our services,
fluctuations in the number of shares outstanding and general
economic factors, as well as those risks and uncertainties
described in Salary.com's filings with the Securities and Exchange
Commission, including the Company's Form 10-K for the year ended
March 31, 2008. Salary.com expressly disclaims any obligation to
update any forward-looking statements.
(SLRY-F)
Exhibit 1
Salary.com, Inc.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
March 31, March 31,
ASSETS 2009 2008
----------- -----------
Current assets:
Cash and cash equivalents $ 21,085 $ 37,727
Accounts receivable, net of allowance for doubtful
accounts 6,040 4,734
Prepaid expenses and other current assets 1,558 1,922
----------- -----------
Total current assets before funds held for clients 28,683 44,383
Funds held for clients 12,964 -
----------- -----------
Total current assets 41,647 44,383
----------- -----------
Property, equipment and software, net 3,025 1,566
Goodwill and intangible assets, net 32,350 19,091
Other assets 1,679 1,169
----------- -----------
Total assets $ 78,701 $ 66,209
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued compensation $ 2,343 $ 4,681
Accrued expenses and other current liabilities 3,300 3,146
Revolving credit facility 8,125 -
Deferred revenue, current portion 26,556 20,523
----------- -----------
Total current liabilities before client funds
obligations 40,324 28,350
Client funds obligations 12,964 -
----------- -----------
Total current liabilities 53,288 28,350
----------- -----------
Deferred revenue, net of current portion 1,729 1,510
Long term liabilities 1,742 181
----------- -----------
Total liabilities 56,759 30,041
----------- -----------
Total stockholders' equity
Total stockholders' equity 21,942 36,168
----------- -----------
Total liabilities and stockholders' equity $ 78,701 $ 66,209
=========== ===========
Exhibit 2
Salary.com, Inc.
Consolidated Statements of Operations
(in thousands, unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenues:
Subscription revenues $ 10,515 $ 8,508 $ 39,630 $ 31,552
Advertising revenues 777 806 2,825 2,955
--------- --------- --------- ---------
Total revenues 11,292 9,314 42,455 34,507
Cost of revenues (1) 3,826 2,516 13,157 8,229
--------- --------- --------- ---------
Gross profit 7,466 6,798 29,298 26,278
--------- --------- --------- ---------
Operating expenses:
Research and development (1) 2,529 1,464 8,846 4,941
Sales and marketing (1) 5,782 5,395 26,139 18,963
General and administrative (1) 3,995 3,355 15,723 13,499
Amortization of intangible
assets 701 389 1,988 1,126
Restructuring charges (1) 3,081 - 3,081 -
--------- --------- --------- ---------
Total operating expenses 16,088 10,603 55,777 38,529
--------- --------- --------- ---------
Loss from operations (8,622) (3,805) (26,479) (12,251)
--------- --------- --------- ---------
Other income:
Interest income 19 336 537 1,906
Other expense, net (191) (104) (308) (48)
--------- --------- --------- ---------
Total other (expense) income (172) 232 229 1,858
--------- --------- --------- ---------
Loss before provision for
income taxes (8,794) (3,573) (26,250) (10,393)
Provision for income taxes 36 66 208 205
--------- --------- --------- ---------
Net loss $ (8,830) $ (3,639) $ (26,458) $ (10,598)
========= ========= ========= =========
Net loss per share - basic and
diluted $ (0.55) $ (0.26) $ (1.73) $ (0.77)
========= ========= ========= =========
Weighted average shares
outstanding - basic and
diluted 15,942 14,227 15,297 13,792
(1) Amounts include stock-based compensation expense, as follows:
Three Months Ended Tweleve Months Ended
March 31, March 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Cost of revenues $ 150 $ 288 $ 1,255 $ 800
Research and development 306 201 1,376 459
Sales and marketing 692 504 2,703 1,778
General and administrative 660 660 2,616 2,092
Stock-based compensation
related to restructuring 1,813 - 1,813 -
--------- --------- --------- ---------
$ 3,621 $ 1,653 $ 9,763 $ 5,129
========= ========= ========= =========
Exhibit 3
Salary.com, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Cash flows from operating
activities:
Net loss $ (8,830) $ (3,639) $ (26,458) $ (10,598)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating
activities:
Depreciation and
amortization 1,594 933 5,033 2,786
Stock-based compensation 3,621 1,654 9,763 5,129
Other non-cash items 15 (9) 411 304
Change in operating assets
and liabilities 1,843 4,076 2,690 10,807
--------- --------- --------- ---------
Net cash (used in)
provided by operating
activities (1,757) 3,015 (8,561) 8,428
--------- --------- --------- ---------
Cash flows from investing
activities:
Cash paid for acquisition of
business (32) (700) (12,693) (16,366)
Cash paid for intangible
assets (475) (22) (507) (2,405)
Increase in restricted cash (3) (7) (386) (739)
Purchases of property and
equipment (525) (36) (2,058) (252)
Capitalization of software
development costs (56) (108) (153) (390)
Net increase in assets held to
satisfy client funds
obligations (381) - (7,890) -
--------- --------- --------- ---------
Net cash used in
investing activities (1,472) (873) (23,687) (20,152)
--------- --------- --------- ---------
Cash flows from financing
activities:
Net proceeds from (buyback)
exercise of common stock
options and warrants (340) (24) (198) 439
Net proceeds from line of
credit and notes payable 761 - 7,932 -
Net increase in client funds
obligation 381 - 7,890 -
--------- --------- --------- ---------
Net cash provided by
(used in) financing
activities 802 (24) 15,624 439
--------- --------- --------- ---------
Effect of exchange rate changes
on cash and cash equivalents 38 (1) (18) (4)
--------- --------- --------- ---------
Decrease (increase) in cash and
cash equivalents (2,389) 2,117 (16,642) (11,289)
Cash and cash equivalents,
beginning of period 23,474 35,610 37,727 49,016
--------- --------- --------- ---------
Cash and cash equivalents, end
of period $ 21,085 $ 37,727 $ 21,085 $ 37,727
========= ========= ========= =========
Exhibit 4
Salary.com, Inc.
Reconciliation of Non-GAAP Measures
(in thousands, unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Reconciliation of GAAP loss
from operations to non-GAAP
loss from operations:
Loss from operations $ (8,622) $ (3,805) $ (26,479) $ (12,251)
Amortization of intangible
assets 701 389 1,988 1,126
Amortization of intangible
assets (included in cost of
revenues) 408 365 1,633 672
Stock-based compensation 1,808 1,653 7,950 5,129
Stock-based compensation
(included in restructuring) 1,813 - 1,813 -
Restructuring charges 1,268 - 1,268 -
--------- --------- --------- ---------
Non-GAAP loss from operations $ (2,624) $ (1,398) $ (11,827) $ (5,324)
========= ========= ========= =========
Reconciliation of GAAP net loss
to non-GAAP net loss:
GAAP net loss $ (8,830) $ (3,639) $ (26,458) $ (10,598)
Amortization of intangible
assets 701 389 1,988 1,126
Amortization of intangible
assets (included in cost of
revenues) 408 365 1,633 672
Stock-based compensation 1,808 1,653 7,950 5,129
Stock-based compensation
(included in restructuring) 1,813 - 1,813 -
Restructuring charges 1,268 - 1,268 -
--------- --------- --------- ---------
Non-GAAP net loss $ (2,832) $ (1,232) $ (11,806) $ (3,671)
========= ========= ========= =========
Non-GAAP net loss per share $ (0.18) $ (0.09) $ (0.77) $ (0.27)
========= ========= ========= =========
Weighted average shares
outstanding - basic and
diluted 15,942 13,976 15,297 13,792
Exhibit 5
SALARY.COM
Reconciliation of Certain GAAP to Non-GAAP Financial Measures
(In thousands, unaudited)
Three months ended March 31, 2009
---------------------------------------------------------
Amortization Stock-based Restruct-
US GAAP of Intangible Compensation uring Non-GAAP
Results Assets Expense Charges Results
----------- ---------- ---------- ---------- ---------
Cost of revenues $ 3,826 $ (408) $ (150) $ - $ 3,268
Research and
development
expenses 2,529 - (306) - 2,223
Sales and marketing
expenses 5,782 - (692) - 5,090
General and
administrative
expenses 3,995 - (660) - 3,335
Amortization of
intangible assets 701 (701) - - -
Restructuring
charges 3,081 - (1,813) (1,268) -
----------- ---------- ---------- ---------- ---------
Total operating
expenses $ 16,088 $ (701) $ (3,471) $ (1,268) $ 10,648
=========== ========== ========== ========== =========
Three months ended March 31, 2008
---------------------------------------------------------
Amortization Stock-based Restruct-
US GAAP of Intangible Compensation uring Non-GAAP
Results Assets Expense Charges Results
----------- ---------- ---------- ---------- ---------
Cost of revenues $ 2,516 $ (365) $ (288) $ - $ 1,863
Research and
development
expenses 1,464 - (201) - 1,263
Sales and marketing
expenses 5,395 - (504) - 4,891
General and
administrative
expenses 3,355 - (660) - 2,695
Amortization of
intangible assets 389 (389) - - -
----------- ---------- ---------- ---------- ---------
Total operating
expenses $ 10,603 $ (389) $ (1,365) $ - $ 8,849
=========== ========== ========== ========== =========
Twelve months ended March 31, 2009
--------------------------------------------------------
Amortization Stock-based Restruct-
US GAAP of Intangible Compensation uring Non-GAAP
Results Assets Expense Charges Results
----------- ---------- ---------- ---------- ---------
Cost of revenues $ 13,157 $ (1,633) $ (1,255) $ - $ 10,269
Research and
development
expenses 8,846 - (1,376) - 7,470
Sales and marketing
expenses 26,139 - (2,703) - 23,436
General and
administrative
expenses 15,723 - (2,616) - 13,107
Amortization of
intangible assets 1,988 (1,988) - - -
Restructuring
charges 3,081 - (1,813) (1,268) -
----------- ---------- ---------- ---------- ---------
Total operating
expenses $ 55,777 $ (1,988) $ (8,508) $ (1,268) $ 44,013
=========== ========== ========== ========== =========
Twelve months ended March 31, 2008
--------------------------------------------------------
Amortization Stock-based Restruct-
US GAAP of Intangible Compensation uring Non-GAAP
Results Assets Expense Charges Results
----------- ---------- ---------- ---------- ---------
Cost of revenues $ 8,229 $ (672) $ (800) $ - $ 6,757
Research and
development
expenses 4,941 - (459) - 4,482
Sales and marketing
expenses 18,963 - (1,778) - 17,185
General and
administrative
expenses 13,499 - (2,092) - 11,407
Amortization of
intangible assets 1,126 (1,126) - - -
----------- ---------- ---------- ---------- ---------
Total operating
expenses $ 38,529 $ (1,126) $ (4,329) $ - $ 33,074
=========== ========== ========== ========== =========
Exhibit 6
Salary.com, Inc.
Reconciliation of Non-GAAP Measures
(in thousands, unaudited)
Three Months Ended
March 31,
-----------------------
2009 2008
----------- -----------
Calculated bookings:
Revenue $ 11,292 $ 9,314
Change in deferred revenue 982 1,124
----------- -----------
Calculated bookings $ 12,274 $ 10,438
=========== ===========
Exhibit 7
Salary.com, Inc.
Reconciliation of Non-GAAP Measures
(in thousands, unaudited)
Three Months Twelve Months
Ended Ended
March 31, March 31,
---------- ----------
2009 2009
---------- ----------
Net cash used in operating activities $ (1,757) $ (8,561)
Payments of severance related expenses 1,150 1,150
---------- ----------
Non-GAAP cash used in operating activities $ (607) $ (7,411)
========== ==========
Contact: ICR, LLC for Salary.com Garo Toomajanian (781) 851-8540
Email Contact
Salary.Com (MM) (NASDAQ:SLRY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Salary.Com (MM) (NASDAQ:SLRY)
Historical Stock Chart
From Jul 2023 to Jul 2024
