HOLON, Israel, May 3, 2022
/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,
2022.
Summary Results for First Quarter 2022 (USD in
millions, except per share data)
|
GAAP
|
|
Non-GAAP
|
|
|
Q1
2022
|
Q1
2021
|
%
Change
|
Q1
2022
|
Q1
2021
|
%
Change
|
Revenue
|
$117.7
|
$109.6
|
7.4%
|
$117.7
|
$110.2
|
6.8%
|
Gross Profit
|
$49.4
|
$44.3
|
11.7%
|
$52.9
|
$49.2
|
7.5%
|
Gross Margin
|
42.0%
|
40.4%
|
160 bps
|
45.0%
|
44.7%
|
30 bps
|
Operating
Income
|
$16.5
|
$12.4
|
33.8%
|
$20.8
|
$19.0
|
9.3%
|
Operating
Margin
|
14.1%
|
11.3%
|
280
bps
|
17.6%
|
17.2%
|
40 bps
|
Net Income
(*)
|
$13.9
|
$9.8
|
41.6%
|
$17.3
|
$14.9
|
16.0%
|
Diluted EPS
|
$0.25
|
$0.18
|
38.9%
|
$0.31
|
$0.27
|
14.8%
|
|
(*) Attributable to
Sapiens' shareholders
|
"Sapiens started 2022 with solid results in our first quarter
that showed non-GAAP revenue of $117.7
million and non-GAAP operating profit margin of 17.6%. This
is a reflection of our ability to keep growing while improving
profitability," stated Roni Al-Dor,
President and CEO of Sapiens.
"Europe and APAC continue to
experience growth with new exciting prospects and customers. In
North America, we see a positive
improvement. We continue to invest in our products, which is
reflected in our market brand and pipeline," continued Mr.
Al-Dor.
Sapiens reiterated today its revenue guidance of $495 million to $500
million for 2022, along with an increase in its profit
margin from a range of 17.0% to 17.3%, to a range of 17.4% to
17.6%.
"Furthermore, Sapiens remains committed to returning value to
shareholders," stated Al-Dor.
"We announced today that the board of directors has
approved the distribution of a cash dividend of $0.47 per share, or $25.9
million in total – reflecting our continued confidence in
our business and Sapiens' ability to generate cash."
The dividend is in line with the Company's policy of
distributing up to 40% of its annual non-GAAP net income. The
dividend will be paid on May 25, 2022
to Sapiens' shareholders of record as of May
17, 2022.
The dividend is subject to withholding of Israeli tax at source
at the rate of 25% of the dividend amount payable to Israeli
individual, and to non-Israeli, shareholders of record.
"Moving forward, we have approved a change to our dividend
policy, whereby we will pay out dividends on a semi-annual basis,
reflecting our confidence in recurring positive cash flow
generation," concluded Roni Al-Dor,
President & CEO of Sapiens.
Quarterly Results Conference Call
Management will host
a conference call and webcast today, May 3,
2022 at 9:30 a.m. Eastern Time
(4:30 pm. 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 viewed 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 link 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 gross margin, non-GAAP
operating income, non-GAAP operating margin, 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 to
eliminate valuation adjustment on acquired deferred revenue,
stock-based compensation expense, depreciation and amortization,
capitalization 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 as well, in order 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
(NASDAQ and TASE: SPNS) empowers the financial sector, with a focus
on insurance, to transform and become digital, innovative and
agile. Backed by more than 35 years of industry expertise, Sapiens
offers a complete insurance platform, with pre-integrated, low-code
solutions and a cloud-first approach that accelerates customers'
digital transformation. Serving over 600 customers in 30 countries,
Sapiens offers insurers across property and casualty, workers
compensation and life markets the most comprehensive set of
solutions, from core to complementary, including Reinsurance,
Financial & Compliance, Data & Analytics, Digital, and
Decision Management. For more information
visit www.sapiens.com or follow us on LinkedIn.
Media
Contact
Shay Assaraf
Chief Marketing Officer,
Sapiens Shay.assaraf@sapiens.com
|
Investors
Contact
Brett Maas
Managing Partner, Hayden IR
+1 646-536-7331 Brett.Maas@HaydenIR.com
Kimberly Rogers
Managing Director, Hayden IR
+1 541-904-5075 kim@HaydenIR.com
|
Forward Looking Statements
Certain matters discussed in this press release 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, and 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
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 pandemic,
which adversely affected our results of operations, 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, which we filed with the SEC on March 31, 2022, 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.
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME U.S. dollars in
thousands (except per share amounts)
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
|
117,695
|
|
109,592
|
|
Cost of
revenue
|
|
68,278
|
|
65,336
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
49,417
|
|
44,256
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development, net
|
|
14,150
|
|
13,088
|
|
|
Selling,
marketing, general and administrative
|
|
18,719
|
|
18,803
|
|
Total operating
expenses
|
|
32,869
|
|
31,891
|
|
|
|
|
|
|
|
|
Operating
income
|
|
16,548
|
|
12,365
|
|
|
|
|
|
|
|
|
Financial and
other expenses (income), net
|
|
(348)
|
|
515
|
|
Taxes on
income
|
|
2,938
|
|
1,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
13,958
|
|
9,902
|
|
|
|
|
|
|
|
|
Attributable to
non-controlling interest
|
|
32
|
|
67
|
|
|
|
|
|
|
|
|
Net income
attributable to Sapiens' shareholders
|
|
13,926
|
|
9,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
per share
|
|
0.25
|
|
0.18
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
0.25
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding used
to compute basic earnings per share (in thousands)
|
|
55,093
|
|
54,689
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding used
to compute diluted earnings per share (in thousands)
|
|
55,630
|
|
55,567
|
|
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,
|
|
|
|
2022
|
|
2021
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
GAAP revenue
|
|
117,695
|
|
109,592
|
|
Valuation adjustment on
acquired deferred revenue
|
|
23
|
|
630
|
|
Non-GAAP
revenue
|
|
117,718
|
|
110,222
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
49,417
|
|
44,256
|
|
Revenue
adjustment
|
|
23
|
|
630
|
|
Amortization of
capitalized software
|
|
1,471
|
|
1,784
|
|
Amortization of other
intangible assets
|
|
2,032
|
|
2,559
|
|
Non-GAAP gross
profit
|
|
52,943
|
|
49,229
|
|
|
|
|
|
|
|
GAAP operating
income
|
|
16,548
|
|
12,365
|
|
Gross profit
adjustments
|
|
3,526
|
|
4,973
|
|
Capitalization of
software development
|
|
(1,746)
|
|
(1,632)
|
|
Amortization of other
intangible assets
|
|
1,244
|
|
1,366
|
|
Stock-based
compensation
|
|
931
|
|
1,399
|
|
Acquisition-related
costs (*)
|
|
267
|
|
529
|
|
Non-GAAP operating
income
|
|
20,770
|
|
19,000
|
|
|
|
|
|
|
|
GAAP net income
attributable to Sapiens' shareholders
|
|
13,926
|
|
9,835
|
|
Operating income
adjustments
|
|
4,222
|
|
6,635
|
|
Tax effect on
NON-GAAP adjustment
|
|
(850)
|
|
(1,562)
|
|
Non-GAAP net
income attributable to Sapiens' shareholders
|
|
17,298
|
|
14,908
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
0.31
|
|
0.27
|
|
|
|
|
|
|
|
Weighted average number
of shares
outstanding used to
compute diluted earnings
per share (in
thousands)
|
|
55,630
|
|
55,567
|
|
|
|
|
|
|
|
(*) 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.
|
Adjusted EBITDA
Calculation
U.S. dollars in thousands
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
GAAP operating
profit
|
|
16,548
|
|
12,365
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
Valuation adjustment on
acquired deferred revenue
|
|
23
|
|
630
|
|
Amortization of
capitalized software
|
|
1,471
|
|
1,784
|
|
Amortization of other
intangible assets
|
|
3,276
|
|
3,925
|
|
Capitalization of
software development
|
|
(1,746)
|
|
(1,632)
|
|
Stock-based
compensation
|
|
931
|
|
1,399
|
|
Compensation related to
acquisition and acquisition-related costs
|
|
267
|
|
529
|
|
|
|
|
|
|
|
Non-GAAP operating
profit
|
|
20,770
|
|
19,000
|
|
|
|
|
|
|
|
Depreciation
|
|
1,140
|
|
1,120
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
21,910
|
|
20,120
|
|
|
|
|
|
|
|
Summary
of NON-GAAP Financial Information
U.S. dollars in thousands (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2022
|
|
Q4
2021
|
|
Q3
2021
|
|
Q2
2021
|
|
Q1
2021
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
117,718
|
|
119,854
|
|
118,442
|
|
115,036
|
|
110,222
|
Gross profit
|
52,943
|
|
53,933
|
|
53,413
|
|
51,720
|
|
49,229
|
Operating
income
|
20,770
|
|
21,590
|
|
21,019
|
|
19,795
|
|
19,000
|
Adjusted
EBITDA
|
21,910
|
|
23,579
|
|
22,144
|
|
20,920
|
|
20,120
|
Net income to Sapiens'
shareholders
|
17,298
|
|
17,681
|
|
16,976
|
|
15,975
|
|
14,908
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
0.31
|
|
0.32
|
|
0.31
|
|
0.29
|
|
0.27
|
Non-GAAP Revenues by
Geographic Breakdown
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2022
|
|
Q4
2021
|
|
Q3
2021
|
|
Q2
2021
|
|
Q1
2021
|
|
|
|
|
|
|
|
|
|
|
North
America
|
49,009
|
|
48,872
|
|
48,952
|
|
46,767
|
|
44,754
|
Europe
|
59,267
|
|
62,416
|
|
59,707
|
|
59,718
|
|
57,642
|
Rest of the
World
|
9,442
|
|
8,566
|
|
9,783
|
|
8,551
|
|
7,826
|
|
|
|
|
|
|
|
|
|
|
Total
|
117,718
|
|
119,854
|
|
118,442
|
|
115,036
|
|
110,222
|
Adjusted Free
Cash-Flow
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2022
|
|
Q4
2021
|
|
Q3
2021
|
|
Q2
2021
|
|
Q1
2021
|
|
|
|
|
|
|
|
|
|
|
Cash-flow from
operating activities
|
18,330
|
|
27,386
|
|
14,556
|
|
26,845
|
|
11,755
|
Increase in capitalized
software development costs
|
(1,746)
|
|
(2,256)
|
|
(2,064)
|
|
(1,959)
|
|
(1,632)
|
Capital
expenditures
|
(453)
|
|
(801)
|
|
(1,082)
|
|
(1,082)
|
|
(821)
|
Free
cash-flow
|
16,131
|
|
24,329
|
|
11,410
|
|
23,804
|
|
9,302
|
|
|
|
|
|
|
|
|
|
|
Cash payments
attributed to acquisition-related costs(*)
(**)
|
-
|
|
407
|
|
477
|
|
-
|
|
1,280
|
|
|
|
|
|
|
|
|
|
|
Adjusted free
cash-flow
|
16,131
|
|
24,736
|
|
11,887
|
|
23,804
|
|
10,582
|
|
|
|
|
|
|
|
|
|
|
(*) 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.
|
SAPIENS
INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
171,309
|
|
190,243
|
|
Short-term bank
deposit
|
|
35,000
|
|
20,000
|
|
Trade receivables, net
and unbilled receivables
|
|
82,473
|
|
76,261
|
|
Other receivables and
prepaid expenses
|
|
14,354
|
|
13,841
|
|
|
|
|
|
|
|
Total current
assets
|
|
303,136
|
|
300,345
|
|
|
|
|
|
|
LONG-TERM
ASSETS
|
|
|
|
|
|
Property and equipment,
net
|
|
13,889
|
|
14,458
|
|
Severance pay
fund
|
|
5,802
|
|
5,954
|
|
Goodwill and intangible
assets, net
|
|
336,593
|
|
343,283
|
|
Operating lease
right-of-use assets
|
|
41,256
|
|
43,665
|
|
Other long-term
assets
|
|
7,207
|
|
7,288
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
404,747
|
|
414,648
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
707,883
|
|
714,993
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Trade
payables
|
|
5,264
|
|
5,008
|
|
Current maturities of
Series B Debentures
|
|
19,796
|
|
19,796
|
|
Accrued expenses and
other liabilities
|
|
77,101
|
|
76,450
|
|
Current maturities of
operating lease liabilities
|
|
10,626
|
|
10,827
|
|
Deferred
revenue
|
|
45,272
|
|
39,614
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
158,059
|
|
151,695
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Series B Debentures,
net of current maturities
|
|
59,208
|
|
78,986
|
|
Deferred tax
liabilities
|
|
14,617
|
|
15,360
|
|
Other long-term
liabilities
|
|
12,160
|
|
12,144
|
|
Long-term operating
lease liabilities
|
|
36,916
|
|
38,751
|
|
Redeemable
non-controlling interest
|
|
99
|
|
101
|
|
Accrued severance
pay
|
|
9,067
|
|
9,236
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
132,067
|
|
154,578
|
|
|
|
|
|
|
EQUITY
|
|
|
417,757
|
|
408,720
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
707,883
|
|
714,993
|
|
|
|
|
|
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,
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
13,958
|
|
9,902
|
Reconciliation of net
income to net cash provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
5,887
|
|
6,829
|
Accretion of discount
on Series B Debentures
|
18
|
|
26
|
Capital loss from sale
of property and equipment
|
7
|
|
5
|
Stock-based
compensation related to options issued to employees
|
931
|
|
1,399
|
|
|
|
|
Net changes in
operating assets and liabilities, net of amount
acquired:
|
|
|
|
Trade receivables, net
and unbilled receivables
|
(7,357)
|
|
(10,541)
|
Deferred tax
liabilities, net
|
(471)
|
|
(1,913)
|
Other operating
assets
|
959
|
|
6,116
|
Trade
payables
|
(34)
|
|
609
|
Other operating
liabilities
|
(1,136)
|
|
(7,774)
|
Deferred
revenues
|
5,526
|
|
6,995
|
Accrued severance pay,
net
|
42
|
|
102
|
|
|
|
|
Net cash provided by
operating activities
|
18,330
|
|
11,755
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property
and equipment
|
(453)
|
|
(821)
|
Proceeds from
(Investment in) deposits
|
(15,033)
|
|
-
|
Proceeds from sale of
property and equipment
|
-
|
|
154
|
Capitalized software
development costs
|
(1,746)
|
|
(1,632)
|
|
|
|
|
Net cash used in
investing activities
|
(17,232)
|
|
(2,299)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from employee
stock options exercised
|
-
|
|
413
|
Repayment of Series B
Debenture
|
(19,796)
|
|
(19,796)
|
Payment of contingent
considerations
|
-
|
|
(537)
|
Dividend to
non-controlling interest
|
-
|
|
(31)
|
|
|
|
|
Net cash used in
financing activities
|
(19,796)
|
|
(19,951)
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(236)
|
|
118
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(18,934)
|
|
(10,377)
|
Cash and cash
equivalents at the beginning of period
|
190,243
|
|
152,561
|
|
|
|
|
Cash and cash
equivalents at the end of period
|
171,309
|
|
142,184
|
Debentures Covenants
As of March 31, 2022, 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 non-controlling
interest): above $120 million.
- Actual shareholders' equity (excluding non-controlling
interest) equal to $415.6 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 (42.75)%.
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
(1.41).
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SOURCE Sapiens International Corporation