HOLON, Israel, May 4, 2021 /PRNewswire/ -- Sapiens International
Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading global provider
of software solutions for the insurance industry, today announced
its financial results for the first quarter ended March 31, 2021.
Summary Results for First
Quarter 2021 (USD in millions, except per share
data)
|
|
|
|
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
|
Q1
2021
|
Q1
2020
|
%
Change
|
Q1
2021
|
Q1
2020
|
%
Change
|
Revenue
|
$109.6
|
$90.5
|
21.1%
|
$110.2
|
$90.5
|
21.7%
|
Gross
Profit
|
$44.3
|
$36.3
|
22.0%
|
$49.2
|
$39.8
|
23.7%
|
Gross
Margin
|
40.4%
|
40.1%
|
30 bps
|
44.7%
|
44.0%
|
70
bps
|
Operating
Income
|
$12.4
|
$10.3
|
20.3%
|
$19.0
|
$14.6
|
30.0 %
|
Operating
Margin
|
11.3%
|
11.4%
|
(10)
bps
|
17.2%
|
16.1%
|
110
bps
|
Net Income
(*)
|
$9.8
|
$6.8
|
44.2%
|
$14.9
|
$10.4
|
43.2%
|
Diluted
EPS
|
$0.18
|
$0.13
|
38.5%
|
$0.27
|
$0.20
|
35.0%
|
(*) Attributable to Sapiens' shareholders.
"Our revenue growth in the first quarter validates our strategy
of building global diversity with a broad business portfolio, which
provides the foundation for Sapiens' performance and growth. Solid
execution in the first quarter delivered 22% non-GAAP revenue
growth, with non-GAAP revenues reaching a record $110 million and non-GAAP operating margin
increasing to 17.2% from 16.1%. Our growth in the first quarter
originated primarily from Europe
and Rest-of-the-World. Operating a global company across multiple
insurance markets and deploying a diversified product offering
allows us to balance our growth, resources, investments, and risks
across regions and markets. With a strategic focus and the
increasing global market demand for digital insurance solutions and
transformations, Sapiens is well positioned for continued financial
performance," said Roni Al-Dor,
Sapiens president and CEO.
"We are increasing our 2021 revenue guidance to a range of
$459 to $464
million from our prior range of $457 to $463
million. We are also updating our operating profit margin
guidance, due to our plan initiated this quarter to manage our
growth and investment in delivery capabilities in the North
American P&C CoreSuite business, and following the recent spike
in COVID-19 in India, which will
increase our labor costs in the short term. As a result of these
two factors, operating margin in 2021 is expected to be in the
range of 17.0% to 17.4%, compared to the previous range of 17.7% to
18.0%. I would like to highlight that Sapiens remains committed to
increasing its profitability and margins, as we have done year
after year."
Quarterly Results Conference Call
Management
will host a conference call and webcast today, May 4, 2021 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- 642-5032; International: +972-3-918-0609; UK:
0-800-917-5108.
The live webcast of the call can be accessed on Sapiens' website
at
https://www.sapiens.com/investor-relations/ir-events-presentations/.
A replay of the call will be available one business day following
the completion of the event at the same location for 90 days.
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 understanding of factors and
trends affecting its 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 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 more than 600 organizations
globally, Sapiens has a proven ability to satisfy customers' core,
data and digital requirements. For more information:
www.sapiens.com.
Forward Looking Statements
Certain matters discussed in this press release that are
incorporated herein and therein by reference are forward-looking
statements within the meaning of Section 27A of the Securities Act,
Section 21E of the Exchange Act and the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995, that are
based on our beliefs, assumptions and expectations, as well as
information currently available to us. Such forward-looking
statements may be identified by the use of the words "anticipate,"
"believe," "estimate," "expect," "may," "will," "plan" and similar
expressions. Such statements reflect our current views with respect
to future events and are subject to certain risks and
uncertainties. There are important factors that could cause our
actual results, levels of activity, performance or achievements to
differ materially from the results, levels of activity, performance
or achievements expressed or implied by the forward-looking
statements, including, but not limited to: the COVID-19
(coronavirus) pandemic, which may last longer than expected and
materially adversely affect our results of operations; the degree
of our success in our plans to leverage our global footprint to
grow our sales; the degree of our success in integrating the
companies that we have acquired through the implementation of our
M&A growth strategy; the lengthy development cycles for our
solutions, which may frustrate our ability to realize revenues
and/or profits from our potential new solutions; our lengthy and
complex sales cycles, which do not always result in the realization
of revenues; the degree of our success in retaining our existing
customers or competing effectively for greater market share;
difficulties in successfully planning and managing changes in the
size of our operations; the frequency of the long-term, large,
complex projects that we perform that involve complex estimates of
project costs and profit margins, which sometimes change
mid-stream; the challenges and potential liability that heightened
privacy laws and regulations pose to our business; occasional
disputes with clients, which may adversely impact our results of
operations and our reputation; various intellectual property issues
related to our business; potential unanticipated product
vulnerabilities or cybersecurity breaches of our or our customers'
systems; risks related to the insurance industry in which our
clients operate; risks associated with our global sales and
operations, such as changes in regulatory requirements, wide-spread
viruses and epidemics like the recent novel coronavirus outbreak,
or fluctuations in currency exchange rates; and risks related to
our principal location in Israel
and our status as a Cayman Islands
company.
While we believe such forward-looking statements are based on
reasonable assumptions, should one or more of the underlying
assumptions prove incorrect, or these risks or uncertainties
materialize, our actual results may differ materially from those
expressed or implied by the forward-looking statements. Please read
the risks discussed under the heading "Risk Factors" in our most
recent Annual Report on Form 20-F, in order to review conditions
that we believe could cause actual results to differ materially
from those contemplated by the forward-looking statements. You
should not rely upon forward-looking statements as predictions of
future events. Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot
guarantee that future results, levels of activity, performance and
events and circumstances reflected in the forward-looking
statements will be achieved or will occur. Except as required by
law, we undertake no obligation to update publicly any
forward-looking statements for any reason, to conform these
statements to actual results or to changes in our expectations.
Investors and Media Contact
Sapiens
Daphna Golden
Vice President, Head of Investor Relations
Email: ir@sapiens.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
|
|
|
|
March
31,
|
|
|
|
2021
|
|
2020
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
109,592
|
|
90,534
|
Cost of
revenue
|
|
65,336
|
|
54,270
|
|
|
|
|
|
|
Gross
profit
|
|
44,256
|
|
36,264
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
|
13,088
|
|
10,526
|
|
Selling,
marketing, general and administrative
|
|
18,803
|
|
15,460
|
Total operating
expenses
|
|
31,891
|
|
25,986
|
|
|
|
|
|
|
Operating
income
|
|
12,365
|
|
10,278
|
|
|
|
|
|
|
Financial and
other expenses, net
|
|
515
|
|
1,487
|
Taxes on
income
|
|
1,948
|
|
1,901
|
|
|
|
|
|
|
Net
income
|
|
9,902
|
|
6,890
|
|
|
|
|
|
|
Attributed to
non-controlling interest
|
|
67
|
|
70
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
9,835
|
|
6,820
|
Basic earnings per
share
|
|
0.18
|
|
0.14
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
0.18
|
|
0.13
|
|
|
|
|
|
|
Weighted
average number of shares outstanding used
to
compute basic earnings per share (in thousands)
|
|
54,689
|
|
50,175
|
|
|
|
|
|
Weighted
average number of shares outstanding used
to compute
diluted earnings per share (in thousands)
|
|
55,567
|
|
51,083
|
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,
|
|
|
|
2021
|
|
2020
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Revenue
|
|
110,222
|
|
90,534
|
Cost of
revenue
|
|
60,993
|
|
50,743
|
|
|
|
|
|
|
Gross
profit
|
|
49,229
|
|
39,791
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
|
14,720
|
|
11,963
|
|
Selling,
marketing, general and administrative
|
|
15,509
|
|
13,214
|
Total operating
expenses
|
|
30,229
|
|
25,177
|
|
|
|
|
|
|
Operating
income
|
|
19,000
|
|
14,614
|
|
|
|
|
|
|
Financial and
other expenses, net
|
|
515
|
|
1,487
|
Taxes on
income
|
|
3,510
|
|
2,645
|
|
|
|
|
|
|
Net
income
|
|
14,975
|
|
10,482
|
|
|
|
|
|
|
Attributable to
non-controlling interest
|
|
67
|
|
70
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
14,908
|
|
10,412
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
0.27
|
|
0.21
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
0.27
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used
to compute basic earnings per share (in thousands)
|
|
54,689
|
|
50,175
|
|
|
|
|
|
Weighted average
number of shares outstanding used
to compute diluted earnings per share (in thousands)
|
|
55,567
|
|
51,083
|
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,
|
|
|
2021
|
|
2020
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
GAAP
revenue
|
|
109,592
|
|
90,534
|
Valuation adjustment
on acquired deferred revenue
|
|
630
|
|
-
|
Non-GAAP
revenue
|
|
110,222
|
|
90,534
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
44,256
|
|
36,264
|
Revenue
adjustment
|
|
630
|
|
-
|
Amortization of
capitalized software
|
|
1,784
|
|
1,496
|
Amortization of other
intangible assets
|
|
2,559
|
|
2,031
|
Non-GAAP gross
profit
|
|
49,229
|
|
39,791
|
|
|
|
|
|
GAAP operating
income
|
|
12,365
|
|
10,278
|
Gross profit
adjustments
|
|
4,973
|
|
3,527
|
Capitalization of
software development
|
|
(1,632)
|
|
(1,437)
|
Amortization of other
intangible assets
|
|
1,366
|
|
589
|
Stock-based
compensation
|
|
1,399
|
|
622
|
Acquisition-related
costs *)
|
|
529
|
|
1,035
|
Non-GAAP operating
income
|
|
19,000
|
|
14,614
|
|
|
|
|
|
GAAP net
income attributable to Sapiens' shareholders
|
|
9,835
|
|
6,820
|
Operating
income adjustments
|
|
6,635
|
|
4,336
|
Taxes on
income
|
|
(1,562)
|
|
(744)
|
Non-GAAP
net income attributable to Sapiens'
shareholders
|
|
14,908
|
|
10,412
|
(*) 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
2021
|
|
Q4
2020
|
|
Q3
2020
|
|
Q2
2020
|
|
Q1
2020
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
110,222
|
|
102,936
|
|
97,968
|
|
93,063
|
|
90,534
|
Gross
profit
|
49,229
|
|
47,044
|
|
44,206
|
|
41,900
|
|
39,791
|
Operating
income
|
19,000
|
|
18,666
|
|
17,859
|
|
16,783
|
|
14,614
|
Net income to
Sapiens' shareholders
|
14,908
|
|
14,461
|
|
13,746
|
|
13,340
|
|
10,412
|
Adjusted
EBITDA
|
20,120
|
|
20,032
|
|
19,010
|
|
17,854
|
|
15,724
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
0.27
|
|
0.27
|
|
0.27
|
|
0.27
|
|
0.21
|
Diluted earnings per
share
|
0.27
|
|
0.27
|
|
0.27
|
|
0.26
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Revenues
by Geographic Breakdown
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2021
|
|
Q4
2020
|
|
Q3
2020
|
|
Q2
2020
|
|
Q1
2020
|
|
|
|
|
|
|
|
|
|
|
North
America
|
44,754
|
|
47,303
|
|
49,979
|
|
46,610
|
|
44,567
|
Europe
|
57,642
|
|
49,225
|
|
42,394
|
|
41,030
|
|
40,232
|
Rest of the
world
|
7,826
|
|
6,408
|
|
5,595
|
|
5,423
|
|
5,735
|
|
|
|
|
|
|
|
|
|
|
Total
|
110,222
|
|
102,936
|
|
97,968
|
|
93,063
|
|
90,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free
Cash-Flow
|
U.S. dollars in
thousands
|
|
|
Q1
2021
|
|
Q4
2020
|
|
Q3
2020
|
|
Q2
2020
|
|
Q1
2020
|
|
|
|
|
|
|
|
|
|
|
Cash-flow from
operating activities
|
11,755
|
|
21,030
|
|
16,705
|
|
14,761
|
|
5,759
|
Increase in
capitalized software development costs
|
(1,632)
|
|
(1,604)
|
|
(1,506)
|
|
(1,251)
|
|
(1,437)
|
Capital
expenditures
|
(821)
|
|
(725)
|
|
(963)
|
|
(393)
|
|
(552)
|
Free
cash-flow
|
9,302
|
|
18,701
|
|
14,236
|
|
13,117
|
|
3,770
|
|
|
|
|
|
|
|
|
|
|
Cash payments
attributed to acquisition-related costs(*)
(**)
|
1,280
|
|
2,363
|
|
242
|
|
1,562
|
|
737
|
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash-flow
|
10,582
|
|
21,064
|
|
14,478
|
|
14,679
|
|
4,507
|
(*) 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,
|
|
|
2021
|
|
2020
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
GAAP operating
income
|
|
12,365
|
|
10,278
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
Valuation adjustment
on acquired deferred revenue
|
|
630
|
|
-
|
Amortization of
capitalized software
|
|
1,784
|
|
1,496
|
Amortization of other
intangible assets
|
|
3,925
|
|
2,620
|
Capitalization of
software development
|
|
(1,632)
|
|
(1,437)
|
Stock-based
compensation
|
|
1,399
|
|
622
|
Compensation related
to acquisition and acquisition-related costs
|
|
529
|
|
1,035
|
|
|
|
|
|
Non-GAAP operating
income
|
|
19,000
|
|
14,614
|
|
|
|
|
|
Depreciation
|
|
1,120
|
|
1,110
|
|
|
|
|
|
Adjusted
EBITDA
|
|
20,120
|
|
15,724
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
142,184
|
|
152,561
|
|
Short-term bank
deposit
|
|
30,000
|
|
30,000
|
|
Trade receivables,
net and unbilled receivables
|
|
74,762
|
|
65,409
|
|
Other receivables and
prepaid expenses
|
|
16,494
|
|
19,388
|
|
|
|
|
|
|
|
Total current
assets
|
|
263,440
|
|
267,358
|
|
|
|
|
|
|
LONG-TERM
ASSETS
|
|
|
|
|
|
Property and
equipment, net
|
|
16,585
|
|
16,970
|
|
Severance pay
fund
|
|
6,604
|
|
6,582
|
|
Goodwill and
intangible assets, net
|
|
352,130
|
|
363,597
|
|
Operating lease
right-of-use assets
|
|
51,716
|
|
54,390
|
|
Other long-term
assets
|
|
6,078
|
|
5,264
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
433,113
|
|
446,803
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
696,553
|
|
714,161
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Trade
payables
|
|
6,057
|
|
5,389
|
|
Current maturities of
Series B Debentures
|
|
19,796
|
|
19,796
|
|
Accrued expenses and
other liabilities
|
|
68,750
|
|
75,119
|
|
Current maturities of
operating lease liabilities
|
|
10,719
|
|
9,924
|
|
Deferred
revenue
|
|
41,470
|
|
34,548
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
146,792
|
|
144,776
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Series B Debentures,
net of current maturities
|
|
78,906
|
|
98,676
|
|
Deferred tax
liabilities
|
|
14,704
|
|
16,010
|
|
Other long-term
liabilities
|
|
13,037
|
|
12,129
|
|
Long-term operating
lease liabilities
|
|
46,531
|
|
48,773
|
|
Redeemable
non-controlling interest
|
|
562
|
|
517
|
|
Accrued severance
pay
|
|
9,530
|
|
9,586
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
163,270
|
|
185,691
|
|
|
|
|
|
|
EQUITY
|
|
|
386,491
|
|
383,694
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
696,553
|
|
714,161
|
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,
|
|
|
2021
|
|
2020
|
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
9,902
|
|
6,890
|
Reconciliation of net
income to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
6,829
|
|
5,226
|
Accretion of discount
on Series B Debentures
|
|
26
|
|
33
|
Stock-based
compensation related to options issued to employees
|
|
1,399
|
|
622
|
Capital loss from sale
of property and equipment
|
|
5
|
|
-
|
|
|
|
|
|
Net changes in
operating assets and liabilities, net of amount
acquired:
|
|
|
|
|
Trade receivables, net
and unbilled receivables
|
|
(10,541)
|
|
(9,009)
|
Deferred tax assets,
net
|
|
(1,913)
|
|
(1,257)
|
Other operating
assets
|
|
6,116
|
|
2,260
|
Trade
payables
|
|
609
|
|
(52)
|
Other operating
liabilities
|
|
(7,774)
|
|
(759)
|
Deferred
revenues
|
|
6,995
|
|
1,655
|
Accrued severance pay,
net
|
|
102
|
|
150
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
11,755
|
|
5,759
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase of property
and equipment
|
|
(821)
|
|
(552)
|
Investment in
deposit
|
|
-
|
|
(665)
|
Proceeds from
restricted deposit used for completed acquisition
|
|
-
|
|
22,890
|
Payments for business
acquisitions, net of cash acquired
|
|
-
|
|
(22,061)
|
Proceeds from sale of
property and equipment
|
|
154
|
|
-
|
Capitalized software
development costs
|
|
(1,632)
|
|
(1,437)
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(2,299)
|
|
(1,825)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from employee
stock options exercised
|
|
413
|
|
600
|
Repayment of Series B
Debenture
|
|
(19,796)
|
|
(9,898)
|
Receipt of short-term
loan
|
|
-
|
|
20,000
|
Payment of contingent
considerations
|
|
(537)
|
|
(538)
|
Dividend to
non-controlling interest
|
|
(31)
|
|
-
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
|
(19,951)
|
|
10,164
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
118
|
|
(836)
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(10,377)
|
|
13,262
|
Cash and cash
equivalents at the beginning of period
|
|
152,561
|
|
66,295
|
|
|
|
|
|
Cash and cash
equivalents at the end of period
|
|
142,184
|
|
79,557
|
Debentures Covenants
As of March 31, 2021, 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 (excluding minority interest) equal
to $384 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 (22.55)%.
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
(0.92).
View original
content:http://www.prnewswire.com/news-releases/sapiens-reports-first-quarter-2021-financial-results-301283154.html
SOURCE Sapiens International Corporation