HOLON, Israel, May 14, 2020 /PRNewswire/ -- Sapiens
International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading
global provider of software solutions for the insurance industry,
and a member of the Formula Group (NASDAQ: FORTY) (TASE: FORT),
today announced its financial results for the first quarter ended
March 31, 2020.
Summary Results for First
Quarter 2020 (USD in millions, except per share
data)
|
|
GAAP
|
|
Non-GAAP
|
|
|
March 31,
2020
|
March 31,
2019
|
%
Change
|
March 31,
2020
|
March 31,
2019
|
%
Change
|
Revenue
|
$90.5
|
$76.8
|
17.9%
|
$90.5
|
$76.8
|
17.9%
|
Gross
Profit
|
$36.3
|
$29.8
|
21.7%
|
$39.8
|
$33.1
|
20.2%
|
Gross
Margin
|
40.1%
|
38.8%
|
130 bps
|
44.0%
|
43.1%
|
90 bps
|
Operating
Income
|
$10.3
|
$8.1
|
27.3%
|
$14.6
|
$11.8
|
24.4%
|
Operating
Margin
|
11.4%
|
10.5%
|
90 bps
|
16.1%
|
15.3%
|
80 bps
|
Net Income
(*)
|
$6.8
|
$5.2
|
32.3%
|
$10.4
|
$8.4
|
24.1%
|
Diluted
EPS
|
$0.13
|
$0.10
|
30%
|
$0.20
|
$0.17
|
17.6%
|
|
(*) Attributable to
Sapiens' shareholders
|
"Sapiens' first-quarter performance reflects our continued focus
on supporting our existing customers and closing new business,"
said Roni Al-Dor, president and CEO,
Sapiens. "On a non-GAAP basis, we reported 17.9% revenue growth and
increased operating margins by 80 basis points to 16.1%, with both
P&C and L&A contributing to growth in the quarter."
"In March, we responded to the COVID-19 global outbreak per
country, controlling expenses where appropriate, while maintaining
productivity. I'm incredibly proud of my teams' accomplishments in
this unique and challenging environment, and impressed by our
customers' rapid shift to remote work, while they remained
committed to their customers and their own digital transformation
projects. As a result, Sapiens maintained momentum through the
quarter," said Al-Dor.
Continued Al-Dor: "Across all our product lines, we see a
growing demand for managed services, which is a testament to our
delivery model – it allows carriers to focus on running their
business. The current business disruption highlights the need for
legacy insurance companies to migrate their platforms and increase
their relevancy with more digital solutions. Our recent acquisition
in Germany, sum.cumo, expands our
digital offerings, helping us become even more competitive. While
there continues to be uncertainty resulting from COVID-19, we
remain focused on executing our long-term strategy. I am confident
that as the global economy recovers, Sapiens will emerge stronger
and well- positioned for continued growth."
"Strong demand for our digital products, combined with high
recurring revenue and a solid balance sheet, position us for
success in this challenging environment. We've taken appropriate
actions to provide the necessary flexibility for revenue growth and
operating efficiency within the current circumstances. While our
business remains strong, due to macro events there could be
delays in closing new deals, which could slightly impact our
revenue. Therefore, we are slightly revising our annual revenue
guidance for 2020 to the range of $368
million to $377 million, as
compared to our prior range of $377
million to $383 million.
Overall, we changed the mid-point of the revenue guidance by 2.0%.
Sapiens' guidance for annual operating margin remains
unchanged at 16.0% to 16.5%," said Al-Dor.
"Furthermore, Sapiens remains committed to returning value to
shareholders," concluded Al-Dor. "Despite the condition in the
market, we announce a dividend of $0.14 per share – approximately $7 million – reflecting our continued confidence
in our business and Sapiens' ability to generate cash."
The dividend will be paid on June 10,
2020 to Sapiens Shareholders of record as of May 27, 2020. The prospective dividend is subject
to withholding tax at source, under the Israeli Tax law, at the
rate of 25% of the dividend amount payable to each shareholders of
record.
Quarterly Results Conference Call
Management will host a conference call and webcast on
May 14, 2020 at 9:30 a.m. Eastern Time (4:30 p.m. in Israel) to review and discuss Sapiens'
results.
Please call the following numbers (at least 10 minutes before
the scheduled time) to participate:
North America (toll-free): +
1-888-407-2553; International: +972-3-918-0610; UK:
0-800-917-9141
The live webcast of the call can be viewed on Sapiens' website
at:
https://www.sapiens.com/investor-relations/ir-events-presentations/
If you are unable to join live, a replay of the call will be
accessible until May 23, 2020, as
follows:
North America: 1-888-326-9310;
International: +972-3-925-5925
A recorded version of the webcast will also be available via the
Sapiens website, for three months at the same location.
Non-GAAP Financial Measures
This press release contains the following non-GAAP
financial measures: non-GAAP revenue, non-GAAP gross profit,
non-GAAP operating income, non-GAAP net income attributed to
Sapiens shareholders, non-GAAP basic and diluted earnings per
share, Adjusted EBITDA and Adjusted Free Cash-Flow.
Sapiens believes that these non-GAAP measures of financial
results provide useful information to management and investors
regarding certain financial and business trends relating to
Sapiens' 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 analyses,
for purposes of determining executive and senior management
incentive compensation and for budgeting and planning purposes.
These measures are used in financial reports prepared for
management and in quarterly financial reports presented to the
Company's board of directors. The Company 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.
Non-GAAP financial measures consist of GAAP financial
measures adjusted to exclude: Valuation adjustment on acquired
deferred revenue, amortization of capitalized software development
and other intangible assets, capitalization of software
development, stock-based compensation, restructuring and cost
reduction costs, tax adjustments related to non-GAAP adjustments,
and acquisition-related costs, which pertain to charges on behalf
of M&A agreements related to future performance targets and
retention criteria as determined upon acquisition date of the
respective acquired company, as well as third-party services, such
as, tax, accounting and legal rendered until the acquisition
date.
Management of the Company 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.
To compensate for these limitations, management presents
non-GAAP financial measures in connection with GAAP results.
Sapiens 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 of this
release.
The Company defines Adjusted EBITDA as net profit,
adjusted for stock-based compensation expense, depreciation and
amortization, capitalized of software development costs,
compensation expenses related to acquisition and
acquisition-related costs, financial and other expenses, and
provision for income taxes. These amounts are often excluded by
other companies to help investors understand the operational
performance of their business.
The Company defines Adjusted EBITDA as net profit, adjusted for
valuation adjustment on acquired deferred revenue, stock-based
compensation expense, depreciation and amortization, capitalized of
software development costs, compensation expenses related to
acquisition and acquisition-related costs, restructuring and cost
reduction costs, financial expense (income), provision for income
taxes and other income (expenses). These amounts are often excluded
by other companies to help investors understand the operational
performance of their business.
The Company uses Adjusted Free Cash-Flow as a measurement of its
operating performance, and reconciles cash-flow from operating
activities to Adjusted Free Cash-Flow, while reducing the amounts
for capitalization of software development costs and capital
expenditures. The Company adds back payments related to investment
in the new campus in India, cash
payments made for former acquisitions in respect of future
performance targets and retention criteria as determined upon
acquisition date of the respective acquired company, which were
included in the cash-flow from operating activities. We believe
that Adjusted Free Cash-Flow is useful in evaluating our business,
because Adjusted Free Cash-Flow reflects the cash surplus available
to fund the expansion of our business.
About Sapiens
Sapiens International Corporation empowers insurers to succeed
in an evolving industry. The company offers digital software
platforms, solutions and services for the property and casualty,
life, pension and annuity, reinsurance, financial and compliance,
workers' compensation and financial markets. With more than 35
years of experience delivering to over 450 organizations globally,
Sapiens has a proven ability to satisfy customers' core, data and
digital requirements. For more information: www.sapiens.com
Forward Looking Statement
Some of the statements in this press release may constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities and
Exchange Act of 1934 and the United States Private Securities
Litigation Reform Act of 1995. Words such as "will," "expects,"
"believes" and similar expressions are used to identify these
forward-looking statements (although not all forward-looking
statements include such words). These forward-looking statements,
which may include, without limitation, projections regarding our
future performance and financial condition, are made on the basis
of management's current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement.
These statements speak only as of the date they were made, and
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. We operate in a changing environment. New risks
emerge from time to time and it is not possible for us to predict
all risks that may affect us. For more information regarding these
risks and uncertainties, as well as certain additional risks that
we face, please refer to the Risk Factors detailed in Item 3 of
Part III of our Annual Report on Form 20-F for the year ended
December 31, 2018, and subsequent
reports and registration statements filed from time to time with
the Securities and Exchange
Commission.
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
|
|
Three
months ended
|
|
|
|
March
31,
|
|
|
|
2020
|
|
2019
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
90,534
|
|
76,787
|
Cost of
revenue
|
|
54,270
|
|
46,980
|
|
|
|
|
|
|
Gross
profit
|
|
36,264
|
|
29,807
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
|
10,526
|
|
8,777
|
|
Selling,
marketing, general and administrative
|
|
15,460
|
|
12,953
|
Total operating
expenses
|
|
25,986
|
|
21,730
|
|
|
|
|
|
|
Operating
income
|
|
10,278
|
|
8,077
|
|
|
|
|
|
|
Financial and
other expenses, net
|
|
1,487
|
|
1,054
|
Taxes on
income
|
|
1,901
|
|
1,847
|
|
|
|
|
|
|
Net
income
|
|
6,890
|
|
5,176
|
|
|
|
|
|
|
Attributed to
non-controlling interest
|
|
70
|
|
21
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
6,820
|
|
5,155
|
|
|
Basic earnings per
share
|
|
0.14
|
|
0.10
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
0.13
|
|
0.10
|
|
|
|
|
|
|
Weighted
average number of shares outstanding used
to
compute basic earnings per share (in thousands)
|
|
50,175
|
|
49,986
|
|
|
|
|
|
Weighted
average number of shares outstanding used
to compute
diluted earnings per share (in thousands)
|
|
51,083
|
|
50,329
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED NON-GAAP STATEMENTS OF INCOME
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
|
|
Three
months ended
|
|
|
|
March
31,
|
|
|
|
2020
|
|
2019
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
90,534
|
|
76,787
|
Cost of
revenue
|
|
50,743
|
|
43,683
|
|
|
|
|
|
|
Gross
profit
|
|
39,791
|
|
33,104
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
|
11,963
|
|
10,169
|
|
Selling,
marketing, general and administrative
|
|
13,214
|
|
11,185
|
Total operating
expenses
|
|
25,177
|
|
21,354
|
|
|
|
|
|
|
Operating
income
|
|
14,614
|
|
11,750
|
|
|
|
|
|
|
Financial and
other expenses, net
|
|
1,487
|
|
1,054
|
Taxes on
income
|
|
2,645
|
|
2,285
|
|
|
|
|
|
|
Net
income
|
|
10,482
|
|
8,411
|
|
|
|
|
|
|
Attributable to
non-controlling interest
|
|
70
|
|
21
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
10,412
|
|
8,390
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
0.21
|
|
0.17
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
0.20
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used
to compute basic earnings per share (in thousands)
|
|
50,175
|
|
49,986
|
|
|
|
|
|
Weighted average
number of shares outstanding used
to compute diluted earnings per share (in thousands)
|
|
51,083
|
|
50,329
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2020
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
GAAP gross
profit
|
|
36,264
|
|
29,807
|
Amortization of
capitalized software
|
|
1,496
|
|
1,341
|
Amortization of other
intangible assets
|
|
2,031
|
|
1,956
|
Non-GAAP gross
profit
|
|
39,791
|
|
33,104
|
|
|
|
|
|
GAAP operating
income
|
|
10,278
|
|
8,077
|
Gross profit
adjustments
|
|
3,527
|
|
3,297
|
Capitalization of
software development
|
|
(1,437)
|
|
(1,392)
|
Amortization of other
intangible assets
|
|
589
|
|
535
|
Stock-based
compensation
|
|
622
|
|
453
|
Acquisition-related
costs *)
|
|
1,035
|
|
780
|
Non-GAAP operating
income
|
|
14,614
|
|
11,750
|
|
|
|
|
|
GAAP net
income attributable to Sapiens' shareholders
|
|
6,820
|
|
5,155
|
Operating
income adjustments
|
|
4,336
|
|
3,673
|
Taxes on
income
|
|
(744)
|
|
(438)
|
Non-GAAP
net income attributable to Sapiens' shareholders
|
|
10,412
|
|
8,390
|
|
(*)
Acquisition-related costs pertain to charges on behalf of M&A
agreements related to future performance targets and
retention
criteria, as well as third-party services, such as, tax, accounting
and legal rendered until the acquisition date.
|
Summary of
NON-GAAP Financial Information
|
U.S. dollars in
thousands (except per share amounts)
|
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
2019
|
|
Q2
2019
|
|
Q1
2019
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
90,534
|
|
86,715
|
|
82,643
|
|
79,529
|
|
76,787
|
Gross
profit
|
39,791
|
|
38,402
|
|
36,712
|
|
34,794
|
|
33,104
|
Operating
income
|
14,614
|
|
14,345
|
|
13,530
|
|
12,581
|
|
11,750
|
Net income to
Sapiens' shareholders
|
10,412
|
|
10,553
|
|
10,412
|
|
9,541
|
|
8,390
|
Adjusted
EBITDA
|
15,724
|
|
15,271
|
|
14,523
|
|
13,358
|
|
12,524
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
0.21
|
|
0.21
|
|
0.21
|
|
0.19
|
|
0.17
|
Diluted earnings per
share
|
0.20
|
|
0.21
|
|
0.21
|
|
0.19
|
|
0.17
|
Non-GAAP Revenues
by Geographic Breakdown
|
U.S. dollars in
thousands
|
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
2019
|
|
Q2
2019
|
|
Q1
2019
|
|
|
|
|
|
|
|
|
|
|
North
America
|
44,567
|
|
41,787
|
|
44,413
|
|
39,216
|
|
38,149
|
Europe
|
40,232
|
|
37,504
|
|
30,273
|
|
33,881
|
|
32,193
|
Rest of the
world
|
5,735
|
|
7,424
|
|
7,957
|
|
6,432
|
|
6,445
|
|
|
|
|
|
|
|
|
|
|
Total
|
90,534
|
|
86,715
|
|
82,643
|
|
79,529
|
|
76,787
|
Adjusted Free
Cash-Flow
|
U.S. dollars in
thousands
|
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
2019
|
|
Q2
2019
|
|
Q1
2019
|
|
|
|
|
|
|
|
|
|
|
Cash-flow from
operating activities
|
5,759
|
|
21,429
|
|
18,671
|
|
15,507
|
|
10,550
|
Increase in
capitalized software development costs
|
(1,437)
|
|
(1,162)
|
|
(1,541)
|
|
(1,570)
|
|
(1,392)
|
Capital
expenditures
|
(552)
|
|
(2,456)
|
|
(973)
|
|
(1,079)
|
|
(641)
|
Capital expenditures
related to new campus in India
|
-
|
|
-
|
|
(6,325)
|
|
-
|
|
-
|
Free
cash-flow
|
3,770
|
|
17,811
|
|
9,832
|
|
12,858
|
|
8,517
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
related to new campus in India
|
-
|
|
-
|
|
6,325
|
|
-
|
|
-
|
Cash payments
attributed to acquisition-related costs(*)
(**)
|
737
|
|
200
|
|
100
|
|
1,692
|
|
1,608
|
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash-flow
|
4,507
|
|
18,011
|
|
16,257
|
|
14,550
|
|
10,125
|
|
(*) Included in
cash-flow from operating activities
|
|
(**) Acquisition-related
payments pertain to payments on behalf of M&A agreements
related to future performance targets
and retention criteria, as well as
third-party services, such as, tax, accounting and legal rendered
until the acquisition date.
|
Adjusted EBITDA
Calculation
|
U.S. dollars in
thousands
|
|
|
|
Three months
ended
|
|
|
March 31,
|
|
|
2020
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
GAAP operating
income
|
|
10,278
|
|
8,077
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
Amortization of
capitalized software
|
|
1,496
|
|
1,341
|
Amortization of other
intangible assets
|
|
2,620
|
|
2,491
|
Capitalization of
software development
|
|
(1,437)
|
|
(1,392)
|
Stock-based
compensation
|
|
622
|
|
453
|
Compensation related
to acquisition and acquisition-related
costs
|
|
1,035
|
|
780
|
|
|
|
|
|
Non-GAAP operating
income
|
|
14,614
|
|
11,750
|
|
|
|
|
|
Depreciation
|
|
1,110
|
|
773
|
|
|
|
|
|
Adjusted
EBITDA
|
|
15,724
|
|
12,523
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
79,557
|
|
66,295
|
|
Trade receivables,
net and unbilled receivables
|
|
59,958
|
|
50,221
|
|
Investment in
restricted deposit
|
|
-
|
|
22,890
|
|
Other receivables and
prepaid expenses
|
|
8,105
|
|
7,817
|
|
|
|
|
|
|
|
Total current
assets
|
|
147,620
|
|
147,223
|
|
|
|
|
|
|
LONG-TERM
ASSETS
|
|
|
|
|
|
Property and
equipment, net
|
|
16,657
|
|
16,601
|
|
Severance pay
fund
|
|
4,949
|
|
5,106
|
|
Goodwill and
intangible assets, net
|
|
246,676
|
|
228,691
|
|
Operating lease
right-of-use assets
|
|
45,872
|
|
49,539
|
|
Other long-term
assets
|
|
6,549
|
|
5,261
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
320,703
|
|
305,198
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
468,323
|
|
452,421
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Trade
payables
|
|
5,650
|
|
5,107
|
|
Current maturities of
Series B Debentures
|
|
9,898
|
|
9,898
|
|
Short-term bank
loan
|
|
20,000
|
|
-
|
|
Accrued expenses and
other liabilities
|
|
62,886
|
|
60,574
|
|
Current maturities of
operating lease liabilities
|
|
7,920
|
|
8,312
|
|
Deferred
revenue
|
|
22,797
|
|
21,021
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
129,151
|
|
104,912
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Series B Debentures,
net of current maturities
|
|
48,985
|
|
58,850
|
|
Deferred tax
liabilities
|
|
7,094
|
|
5,082
|
|
Other long-term
liabilities
|
|
7,975
|
|
8,321
|
|
Long-term operating
lease liabilities
|
|
40,945
|
|
43,394
|
|
Accrued severance
pay
|
|
6,319
|
|
6,364
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
111,318
|
|
122,011
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
227,854
|
|
225,498
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
468,323
|
|
452,421
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENT OF CASH FLOW
|
U.S. dollars in
thousands
|
|
|
For the three
months ended March 31,
|
|
2020
|
2019
|
|
(unaudited)
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
Net income
|
6,890
|
5,176
|
Reconciliation of net
income to net cash provided by operating activities:
|
|
|
Depreciation and
amortization
|
5,226
|
4,605
|
Accretion of discount
on Series B Debentures
|
33
|
39
|
Stock-based
compensation related to options issued to employees
|
622
|
453
|
|
|
|
Net changes in
operating assets and liabilities, net of amount
acquired:
|
|
|
Trade receivables, net
and unbilled receivables
|
(9,009)
|
(4,194)
|
Deferred tax assets,
net
|
(1,257)
|
(855)
|
Other operating
assets
|
2,260
|
328
|
Trade
payables
|
(52)
|
(426)
|
Other operating
liabilities
|
(759)
|
1,247
|
Deferred
revenues
|
1,655
|
4,167
|
Accrued severance pay,
net
|
150
|
10
|
|
|
|
Net cash provided by
operating activities
|
5,759
|
10,550
|
|
|
|
Cash flows from
investing activities:
|
|
|
Purchase of property
and equipment
|
(552)
|
(641)
|
Investment in
deposit
|
(665)
|
(1,106)
|
Proceeds from
restricted deposit used for completed acquisition
|
22,890
|
-
|
Payments for business
acquisitions, net of cash acquired
|
(22,061)
|
-
|
Capitalized software
development costs
|
(1,437)
|
(1,392)
|
|
|
|
Net cash used in
investing activities
|
(1,825)
|
(3,139)
|
|
|
|
Cash flows from
financing activities:
|
|
|
Proceeds from employee
stock options exercised
|
600
|
17
|
Repayment of Series B
Debenture
|
(9,898)
|
(9,898)
|
Receipt of short-term
loan
|
20,000
|
-
|
Repayment of
loan
|
-
|
(2)
|
Payment of contingent
considerations
|
(538)
|
(58)
|
Dividend to
non-controlling interest
|
-
|
(66)
|
|
|
|
Net cash used in
financing activities
|
10,164
|
(10,007)
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(836)
|
1,352
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
13,262
|
(1,244)
|
Cash and cash
equivalents at the beginning of period
|
66,295
|
64,628
|
|
|
|
Cash and cash
equivalents at the end of period
|
79,557
|
63,384
|
Debentures Covenants
As of March 31, 20120, Sapiens was
in compliance with all of its financial covenants under the
indenture for the Series B Debentures that it issued in
September 2017, based on having
achieved the following in its consolidated financial results:
Covenant 1
- Target shareholders' equity (excluding minority interest):
above $120 million.
- Actual shareholders' equity equal to $226 million.
Covenant 2
- Target ratio of net financial indebtedness to net
capitalization (in each case, as defined under the indenture for
the Company's Series B Debentures) below 65%.
- Actual ratio of net financial indebtedness to net
capitalization equal to (0.08)%.
Covenant 3
- Target ratio of net financial indebtedness to EBITDA
(accumulated calculation for the four last quarters) is below
5.5.
- Actual ratio of net financial indebtedness to EBITDA
(accumulated calculation for the four last quarters) is equal to
(0.003).
Logo -
http://mma.prnewswire.com/media/585787/Sapiens_Logo.jpg
Investors and Media Contact
Brett Mass
Managing Partner
Hayden IR
Phone: +1 646-536-7331
Email: Brett.Masss@HaydenIR.com
View original
content:http://www.prnewswire.com/news-releases/sapiens-reports-first-quarter-2020-financial-results-and-announces-a-cash-dividend-of-0-14-per-share-301059249.html
SOURCE Sapiens International Corporation