HOLON, Israel, Aug. 4, 2020 /PRNewswire/ -- Sapiens
International Corporation, (NASDAQ: SPNS) and (TASE: SPNS), a
leading global provider of software solutions for the insurance
industry, and a member of the Formula Group (NASDAQ: FORTY) and
(TASE: FORT), today announced its financial results for the second
quarter ended June 30, 2020.
Summary Results for Second Quarter 2020
(USD in millions, except per share data)
|
GAAP
|
|
Non-GAAP
|
|
|
June 30,
2020
|
June 30,
2019
|
%
Change
|
June 30,
2020
|
June 30,
2019
|
%
Change
|
Revenue
|
$93.1
|
$79.5
|
17.0%
|
$93.1
|
$79.5
|
17.0%
|
Gross
Profit
|
$38.3
|
$31.5
|
21.6%
|
$41.9
|
$34.8
|
20.4%
|
Gross
Margin
|
41.1%
|
39.6%
|
150 bps
|
45.0%
|
43.8%
|
120 bps
|
Operating
Income
|
$12.4
|
$9.5
|
31.2%
|
$16.8
|
$12.6
|
33.4%
|
Operating
Margin
|
13.3%
|
11.9%
|
140 bps
|
18.0%
|
15.8%
|
220 bps
|
Net Income
(*)
|
$9.3
|
$6.8
|
35.9%
|
$13.3
|
$9.5
|
39.8%
|
Diluted
EPS
|
$0.18
|
$0.14
|
28.6%
|
$0.26
|
$0.19
|
36.8%
|
(*) Attributable to Sapiens' shareholders.
"Our second quarter growth was driven by North America and Europe and reached a growth rate of
17.0%. Non-Gaap Operating income grew 33.4%, lifting
operating margin by 220 basis points to a record
18.0%, primarily due to cost saving steps we
implemented as COVID-19 appeared," said Roni Al-Dor, Sapiens president and CEO.
"Our outlook for 2020 has improved despite COVID-19. We
continue to sign new business and increase our revenue from
existing customers with upselling opportunities. "In addition
the recent Delphi acquisition enhances our position as a leading
solutions provider in the MPL market in North America As such, we
are raising our 2020 revenue guidance range," concluded
Roni Al-Dor. "Our revised 2020
revenue range is now $376 million to
$381 million, as compared to our
prior range of $368 million to
$377 million. The Delphi business
acquisition which we completed at the end of July is currently
in loss position, partially offsetting our operational improvement
in 2020. That being said we are increasing our guidance to 16.5% to
16.9% from prior range of 16.0% to 16.5%."
Quarterly Results Conference Call
Management will host a conference call and webcast on
August 4, 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): +
1-888-668-9141; International: +972-3-918-0609; 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 August 13, 2020, as
follows:
North America: +1-877-456-0009;
International: +972-3-9255901
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, compensation related to acquisition and
acquisition-related costs, restructuring and cost reduction costs,
and tax adjustments related to non-GAAP adjustments.
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
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 EBITDA as a measurement of its
operating performance, because it assists in comparing the
operating performance on a consistent basis by removing the impact
of certain non-cash and non-operating items. Adjusted EBITDA
reflects an additional way of viewing aspects of the operations
that the Company believes, when viewed with the GAAP results and
the accompanying reconciliations to corresponding GAAP financial
measures, provide a more complete 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 500 organizations globally,
Sapiens has a proven ability to satisfy customers' core, data and
digital requirements. For more information: www.sapiens.com
Forward Looking Statements
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, 2019, and subsequent
reports and registration statements filed from time to time with
the Securities and Exchange Commission.
Investors and Media Contact
Brett Mass
Managing Partner
Hayden IR
Phone: +1-646-536-7331
Email: Brett.Masss@HaydenIR.com
|
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
|
|
Six months
ended
|
|
|
|
June
30
|
|
June
30
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
93,063
|
|
79,529
|
|
183,597
|
|
156,316
|
Cost of
revenue
|
|
54,804
|
|
48,075
|
|
109,074
|
|
95,055
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
38,259
|
|
31,454
|
|
74,523
|
|
61,261
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
9,328
|
|
8,923
|
|
19,854
|
|
17,700
|
|
Selling,
marketing, general and administrative
|
|
16,528
|
|
13,077
|
|
31,988
|
|
26,030
|
Total operating
expenses
|
|
25,856
|
|
22,000
|
|
51,842
|
|
43,730
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
12,403
|
|
9,454
|
|
22,681
|
|
17,531
|
|
|
|
|
|
|
|
|
|
|
Financial and
other expenses, net
|
|
63
|
|
434
|
|
1,550
|
|
1,488
|
Taxes on
income
|
|
3,010
|
|
2,154
|
|
4,911
|
|
4,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
9,330
|
|
6,866
|
|
16,220
|
|
12,042
|
|
|
|
|
|
|
|
|
|
|
Attributable to
non-controlling interest
|
|
33
|
|
26
|
|
103
|
|
47
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
9,297
|
|
6,840
|
|
16,117
|
|
11,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
0.19
|
|
0.14
|
|
0.32
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
0.18
|
|
0.14
|
|
0.32
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to compute basic earnings per
share (in thousands)
|
|
50,297
|
|
50,002
|
|
50,236
|
|
49,994
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to compute diluted earnings per
share (in thousands)
|
|
51,173
|
|
50,530
|
|
51,128
|
|
50,430
|
|
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
|
|
Six months
ended
|
|
|
|
June
30
|
|
June
30
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
93,063
|
|
79,529
|
|
183,597
|
|
156,316
|
Cost of
revenue
|
|
51,163
|
|
44,735
|
|
101,906
|
|
88,418
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
41,900
|
|
34,794
|
|
81,691
|
|
67,898
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
10,579
|
|
10,493
|
|
22,542
|
|
20,662
|
|
Selling,
marketing, general and administrative
|
|
14,538
|
|
11,720
|
|
27,752
|
|
22,905
|
Total operating
expenses
|
|
25,117
|
|
22,213
|
|
50,294
|
|
43,567
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
16,783
|
|
12,581
|
|
31,397
|
|
24,331
|
|
|
|
|
|
|
|
|
|
|
Financial and
other expenses, net
|
|
63
|
|
434
|
|
1,550
|
|
1,488
|
Taxes on
income
|
|
3,347
|
|
2,580
|
|
5,992
|
|
4,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
13,373
|
|
9,567
|
|
23,855
|
|
17,978
|
|
|
|
|
|
|
|
|
|
|
Attributable to
non-controlling interest
|
|
33
|
|
26
|
|
103
|
|
47
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
13,340
|
|
9,541
|
|
23,752
|
|
17,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
0.27
|
|
0.19
|
|
0.47
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
0.26
|
|
0.19
|
|
0.46
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to compute basic earnings per
share (in thousands)
|
|
50,297
|
|
50,002
|
|
50,236
|
|
49,994
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to compute diluted earnings per
share (in thousands)
|
|
51,173
|
|
50,530
|
|
51,128
|
|
50,430
|
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
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
38,259
|
|
31,454
|
|
74,523
|
|
61,261
|
|
|
|
|
|
|
|
|
|
Amortization of
capitalized software
|
|
1,531
|
|
1,390
|
|
3,027
|
|
2,731
|
Amortization of other
intangible assets
|
|
2,110
|
|
1,950
|
|
4,141
|
|
3,906
|
Non-GAAP gross
profit
|
|
41,900
|
|
34,794
|
|
81,691
|
|
67,898
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
12,403
|
|
9,454
|
|
22,681
|
|
17,531
|
Gross profit
adjustments
|
|
3,641
|
|
3,340
|
|
7,168
|
|
6,637
|
Capitalization of
software development
|
|
(1,251)
|
|
(1,570)
|
|
(2,688)
|
|
(2,962)
|
Amortization of other
intangible assets
|
|
698
|
|
540
|
|
1,287
|
|
1,075
|
Stock-based
compensation
|
|
764
|
|
288
|
|
1,386
|
|
741
|
Acquisition-related
costs *)
|
|
528
|
|
529
|
|
1,563
|
|
1,309
|
Non-GAAP operating
income
|
|
16,783
|
|
12,581
|
|
31,397
|
|
24,331
|
|
|
|
|
|
|
|
|
|
GAAP net
income attributable to Sapiens' shareholders
|
|
9,297
|
|
6,840
|
|
16,117
|
|
11,995
|
Operating
income adjustments
|
|
4,380
|
|
3,127
|
|
8,716
|
|
6,800
|
Taxes on
income
|
|
(337)
|
|
(426)
|
|
(1,081)
|
|
(864)
|
Non-GAAP net
income attributable to Sapiens' shareholders
|
|
13,340
|
|
9,541
|
|
23,752
|
|
17,931
|
|
|
|
|
|
|
|
|
|
|
(*) 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)
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
2019
|
|
Q2
2019
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
93,063
|
|
90,534
|
|
86,715
|
|
82,643
|
|
79,529
|
Gross
profit
|
41,900
|
|
39,791
|
|
38,402
|
|
36,712
|
|
34,794
|
Operating
income
|
16,783
|
|
14,614
|
|
14,345
|
|
13,530
|
|
12,581
|
Net income to
Sapiens' shareholders
|
13,340
|
|
10,412
|
|
10,553
|
|
10,412
|
|
9,541
|
Adjusted
EBITDA
|
17,854
|
|
15,724
|
|
15,271
|
|
14,523
|
|
13,358
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
0.27
|
|
0.21
|
|
0.21
|
|
0.21
|
|
0.19
|
Diluted earnings per
share
|
0.26
|
|
0.20
|
|
0.21
|
|
0.21
|
|
0.19
|
Non-GAAP Revenues
by Geographic Breakdown
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
2019
|
|
Q2
2019
|
|
|
|
|
|
|
|
|
|
|
North
America
|
46,610
|
|
44,567
|
|
41,787
|
|
44,413
|
|
39,216
|
Europe
|
41,030
|
|
40,232
|
|
37,504
|
|
30,273
|
|
33,881
|
Rest of the
world
|
5,423
|
|
5,735
|
|
7,424
|
|
7,957
|
|
6,432
|
|
|
|
|
|
|
|
|
|
|
Total
|
93,063
|
|
90,534
|
|
86,715
|
|
82,643
|
|
79,529
|
Adjusted Free
Cash-Flow
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
Q2
2020
|
|
Q1
2020
|
|
Q4
2019
|
|
Q3
2019
|
|
Q2
2019
|
|
|
|
|
|
|
|
|
|
|
Cash-flow from
operating activities
|
14,761
|
|
5,759
|
|
21,429
|
|
18,671
|
|
15,507
|
Increase in
capitalized software development costs
|
(1,251)
|
|
(1,437)
|
|
(1,162)
|
|
(1,541)
|
|
(1,570)
|
Capital
expenditures
|
(393)
|
|
(552)
|
|
(2,456)
|
|
(973)
|
|
(1,079)
|
Capital expenditures
related to new campus in India
|
-
|
|
-
|
|
-
|
|
(6,325)
|
|
-
|
Free
cash-flow
|
13,117
|
|
3,770
|
|
17,811
|
|
9,832
|
|
12,858
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
related to new campus in India
|
-
|
|
-
|
|
-
|
|
6,325
|
|
-
|
Cash payments
attributed to acquisition-related costs(*) (**)
|
1,562
|
|
737
|
|
200
|
|
100
|
|
1,692
|
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash-flow
|
14,679
|
|
4,507
|
|
18,011
|
|
16,257
|
|
14,550
|
|
|
|
|
|
|
|
|
|
|
(*) 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
|
|
Six months
ended
|
|
|
June
30
|
|
June
30
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
GAAP operating
profit
|
|
12,403
|
|
9,454
|
|
22,681
|
|
17,531
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Amortization of
capitalized software
|
|
1,531
|
|
1,390
|
|
3,027
|
|
2,731
|
Amortization of other
intangible assets
|
|
2,808
|
|
2,490
|
|
5,428
|
|
4,981
|
Capitalization of
software development
|
|
(1,251)
|
|
(1,570)
|
|
(2,688)
|
|
(2,962)
|
Stock-based
compensation
|
|
764
|
|
288
|
|
1,386
|
|
741
|
Compensation related
to acquisition and acquisition-related costs
|
|
528
|
|
529
|
|
1,563
|
|
1,310
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
profit
|
|
16,783
|
|
12,581
|
|
31,397
|
|
24,332
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
1,071
|
|
777
|
|
2,182
|
|
1,550
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
17,854
|
|
13,358
|
|
33,579
|
|
25,882
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2020
|
|
2019
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
127,978
|
|
66,295
|
|
Trade receivables,
net and unbilled receivables
|
|
62,969
|
|
50,221
|
|
Investment in
restricted deposit
|
|
-
|
|
22,890
|
|
Other receivables and
prepaid expenses
|
|
9,041
|
|
7,817
|
|
|
|
|
|
|
|
Total current
assets
|
|
199,988
|
|
147,223
|
LONG-TERM
ASSETS
|
|
|
|
|
|
Property and
equipment, net
|
|
16,486
|
|
16,601
|
|
Severance pay
fund
|
|
5,839
|
|
5,106
|
|
Goodwill and
intangible assets, net
|
|
248,733
|
|
228,691
|
|
Operating lease
right-of-use assets
|
|
50,231
|
|
49,539
|
|
Other long-term
assets
|
|
6,017
|
|
5,261
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
327,306
|
|
305,198
|
TOTAL
ASSETS
|
|
527,294
|
|
452,421
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Trade
payables
|
|
5,738
|
|
5,107
|
|
Current maturities of
Series B Debentures
|
|
19,796
|
|
9,898
|
|
Accrued expenses and
other liabilities
|
|
64,443
|
|
60,574
|
|
Current maturities of
operating lease liabilities
|
|
9,073
|
|
8,312
|
|
Deferred
revenue
|
|
25,061
|
|
21,021
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
124,111
|
|
104,912
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Series B Debentures,
net of current maturities
|
|
98,434
|
|
58,850
|
|
Deferred tax
liabilities
|
|
7,235
|
|
5,082
|
|
Other long-term
liabilities
|
|
8,312
|
|
8,321
|
|
Long-term operating
lease liabilities
|
|
44,319
|
|
43,394
|
|
Accrued severance
pay
|
|
7,367
|
|
6,364
|
|
Total long-term
liabilities
|
|
165,667
|
|
122,011
|
|
|
|
|
|
|
REDEEMABLE
NON-CONTROLLING INTEREST
|
|
458
|
|
-
|
EQUITY
|
|
|
237,058
|
|
225,498
|
TOTAL LIABILITIES
AND EQUITY
|
|
527,294
|
|
452,421
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONSOLIDATED
STATEMENT OF CASH FLOW U.S. dollars in thousands
|
|
|
For the six months
ended June 30,
|
|
2020
|
2019
|
|
(unaudited)
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
Net income
|
16,220
|
12,042
|
Reconciliation of net
income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
10,637
|
9,262
|
Accretion of discount
on Series B Debentures
|
77
|
84
|
Capital gain from sale
of property and equipment
|
-
|
(129)
|
Stock-based
compensation related to options issued to employees
|
1,386
|
741
|
|
|
|
Net changes in
operating assets and liabilities, net of amount
acquired:
|
|
|
Trade receivables, net
and unbilled receivables
|
(11,554)
|
712
|
Deferred tax assets,
net
|
(1,146)
|
(1,435)
|
Other operating
assets
|
3,286
|
(356)
|
Trade
payables
|
(275)
|
190
|
Other operating
liabilities
|
(2,187)
|
152
|
Deferred
revenues
|
4,008
|
4,760
|
Accrued severance pay,
net
|
68
|
34
|
|
|
|
Net cash provided by
operating activities
|
20,520
|
26,057
|
|
|
|
Cash flows from
investing activities:
|
|
|
Purchase of property
and equipment
|
(945)
|
(1,720)
|
Investment in
deposit
|
(379)
|
(1,119)
|
Proceeds from
restricted deposit used for completed acquisition
|
22,890
|
-
|
Payments for business
acquisitions, net of cash acquired
|
(22,483)
|
821
|
Capitalized software
development costs
|
(2,688)
|
(2,962)
|
|
|
|
Net cash used in
investing activities
|
(3,605)
|
(4,980)
|
|
|
|
Cash flows from
financing activities:
|
|
|
Proceeds from employee
stock options exercised
|
2,334
|
78
|
Distribution of
dividend
|
(6,632)
|
-
|
Repayment of Series B
Debenture
|
(9,898)
|
(9,898)
|
Issuance of Series B
Debentures, net of issuance expenses of $863
|
60,155
|
-
|
Receipt of short-term
loan
|
20,000
|
-
|
Repayment of
loan
|
(20,000)
|
(4)
|
Payment of contingent
considerations
|
(538)
|
(120)
|
Dividend to
non-controlling interest
|
-
|
(66)
|
|
|
|
Net cash provided by
(used in) financing activities
|
45,421
|
(10,010)
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(652)
|
1,587
|
|
|
|
Increase in cash and
cash equivalents
|
61,684
|
12,654
|
Cash and cash
equivalents at the beginning of period
|
66,295
|
64,628
|
|
|
|
Cash and cash
equivalents at the end of period
|
127,979
|
77,282
|
Debentures Covenants
As of June 30, 2020, Sapiens was
in compliance with all of its financial covenants under the
indenture for the Series B Debentures, 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 $237 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 (3.4)%.
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
(0.1).
View original
content:http://www.prnewswire.com/news-releases/sapiens-reports-second-quarter-2020-financial-results-301105459.html
SOURCE Sapiens International Corporation