Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and
innovator in cloud, messaging, digital and IoT platforms and
products, today announced financial results for its fourth quarter
and year ended December 31, 2019. Synchronoss is also announced
this morning that AT&T is set to deploy the Synchronoss
Personal Cloud Solution for AT&T Mobility wireless
customers.
Financial highlights:
- Revenue for the quarter was $90.6 million. For the full
year, revenue was $308.7 million.
- GAAP net loss for the quarter was $14.7
million. For the full year, GAAP net loss was $136.7
million.
- Synchronoss delivered $6.5 million of adjusted EBITDA
for the quarter. For the full year, adjusted EBITDA was $27.6
million.
- Total costs and expenses were down 13 percent year over
year in the fourth quarter and 15 percent for the
year.
- Synchronoss ended the year with $39.0 million of cash
on the balance sheet, and no debt.
Three Months Ended December 31, |
$000s |
2019 |
|
2018 |
|
% Change |
Revenues |
$ |
90,588 |
|
|
$ |
82,102 |
|
|
10.3 |
% |
|
|
|
|
|
|
Net Loss Attributable to
Synchronoss |
(14,671 |
) |
|
(101,909 |
) |
|
85.6 |
% |
Non-GAAP Net Loss From Cont.
Ops. Attributable to Synchronoss |
(2,502 |
) |
|
(80,837 |
) |
|
96.9 |
% |
Adjusted EBITDA |
6,486 |
|
|
15,436 |
|
|
(58.0 |
)% |
Twelve Months Ended December 31, |
$000s |
2019 |
|
2018 |
|
% Change |
Revenues |
$ |
308,749 |
|
|
$ |
325,839 |
|
|
(5.2 |
)% |
|
|
|
|
|
|
Net Loss Attributable to
Synchronoss |
(136,720 |
) |
|
(243,748 |
) |
|
(43.9 |
)% |
Non-GAAP Net Loss From Cont.
Ops. Attributable to Synchronoss |
(53,777 |
) |
|
(176,914 |
) |
|
(69.6 |
)% |
Adjusted EBITDA |
27,584 |
|
|
14,023 |
|
|
96.7 |
% |
Glenn Lurie, president and chief executive
officer, stated “Synchronoss finished 2019 on a strong note, with
our highest revenue quarter in two years. And 2020 is off to a good
start, as we have already launched two new cloud customers -
TracFone and Assurant - and we are launching AT&T this week. In
addition, our advanced messaging work with the CCMI joint venture
of AT&T, Sprint, T-Mobile, and Verizon is well underway, and we
are already seeing upside to the original contract in the form of
additional technology integration and professional services
work.”
Mr. Lurie added, “With the new business wins we
closed in 2019, we have the business in hand along with the quality
of our sales funnel to energize profitable growth for the next
several years. We have worked hard to right size our expense base
and see additional opportunities to reduce costs and grow operating
margins in the new year."
David Clark, chief financial officer, added,
“Synchronoss ended the year with $39 million of cash, up from
$20 million at the end of the third quarter. In 2019, we reduced
total costs and expenses 13 percent, which drove a significant
improvement in financial results. For the full year, Adjusted
EBITDA was $27.6 million, up from $14.0 million in 2018. We believe
we can deliver approximately $15 million of additional cost savings
in 2020.”
New Business Update
New customer agreements and partnerships that
the company has completed since the last earnings announcement
include:
- AT&T Mobility is launching the Synchronoss Personal Cloud
solution for its wireless customers. The Synchronoss Personal Cloud
solution will fully integrate into a suite of AT&T services,
leveraging the cloud to vastly improve the subscriber’s overall
experience. It will also give AT&T the ability to provide and
monetize new value-added services to its wireless customers.
- Synchronoss’ Personal Cloud Solution has been fully integrated
with Pocket Geek by Assurant to provide an enhanced device and
content protection solution to a leading North American
carrier.
- In November, the company was selected by the Cross-Carrier
Messaging Initiative (CCMI), a joint venture of AT&T, Sprint,
T-Mobile, and Verizon, to deliver an advanced mobile messaging
experience across all four mobile networks.
A reconciliation of GAAP to non-GAAP results has
been provided in the financial statement tables included in this
press release. An explanation of these measures is included below
under the heading "Non-GAAP Financial Measures."
Conference Call Details
Synchronoss will host a conference call on
Monday, March 9, 2020, at 5:00 p.m. (ET) to discuss the
company’s financial results. To access this call, dial
1-201-493-6784. Additionally, a live web cast of the conference
call will be available on the Investor Relations page on the
company’s web site at www.synchronoss.com.
Following the conference call, a replay will be
available for a limited time at 1-412-317-6671. The replay pass
code is 13698084. An archived web cast of this conference call will
also be available on the Investor Relations page of the company’s
web site, www.synchronoss.com.
Non-GAAP Financial Measures
Synchronoss has provided in this release
selected financial information that has not been prepared in
accordance with GAAP. This information includes historical non-GAAP
revenues, gross profit, operating income (loss), net income (loss),
effective tax rate, earnings (loss) per share and cash flows from
operating activities. Synchronoss uses these non-GAAP financial
measures internally in analyzing its financial results and believes
they are useful to investors, as a supplement to GAAP measures, in
evaluating Synchronoss’ ongoing operational performance.
Synchronoss 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
its financial results with other companies in Synchronoss’
industry, many of which present similar non-GAAP financial measures
to investors. As noted, the non-GAAP financial results discussed
above add back fair value stock-based compensation expense,
acquisition-related costs which includes integration costs,
restructuring and cease-use lease expense, deferred compensation
expense related to earn outs and amortization of intangibles
associated with acquisitions as well as certain non-recurring
adjustments.
Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measures as
detailed above. As previously mentioned, a reconciliation of GAAP
to non-GAAP results has been provided in the financial statement
tables included in this press release.
About Synchronoss Technologies,
Inc.
Synchronoss transforms the way companies create
new revenue, reduce costs and delight their subscribers with cloud,
messaging, digital and IoT products, supporting hundreds of
millions of subscribers across the globe. Synchronoss’ secure,
scalable and groundbreaking new technologies, trusted partnerships,
and talented people change the way TMT customers grow their
businesses. For more information, visit us at
www.synchronoss.com.
Forward-looking Statements
This press release includes statements
concerning Synchronoss and its future expectations, plans and
prospects that constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
For this purpose, any statements contained herein that are not
statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words “may,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“believes,” “potential” or “continue” or other similar expressions
are intended to identify forward-looking statements. Synchronoss
has based these forward-looking statements largely on its current
expectations and projections about future events and financial
trends that it believes may affect its business, financial
condition and results of operations. These forward-looking
statements speak only as of the date of this press release and are
subject to a number of risks, uncertainties and assumptions
including, without limitation, risks relating to the Company’s
ability to sustain or increase revenue from its larger customers
and generate revenue from new customers, the Company’s expectations
regarding expenses and revenue, the Company’s growth strategies,
the anticipated trends and challenges in the business and the
market in which the Company operates, the Company’s expectations
regarding federal, state and foreign regulatory requirements, the
pending lawsuits against the Company described in its most recent
SEC filings, and other risks and factors that are described in the
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the
Company’s Annual Report on Form 10-K for the year ended December
31, 2018, which is on file with the SEC and available on the SEC’s
website at www.sec.gov. The company does not undertake any
obligation to update any forward-looking statements contained in
this press release as a result of new information, future events or
otherwise.
Contact:
Investors:Joe CrivelliVice President, Investor
Relations908-566-3131investor@synchronoss.com
Media:
CCgroupUS: Diane Rose, +1 727-238-7567 or International: Anais
Merlin, +44 20 3824
9219
synchronoss@ccgrouppr.com
SYNCHRONOSS
TECHNOLOGIES, INC.CONSOLIDATED BALANCE
SHEETS(Unaudited) (In thousands)
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
38,990 |
|
|
$ |
103,771 |
|
Restricted cash |
11 |
|
|
6,089 |
|
Marketable securities, current |
11 |
|
|
28,230 |
|
Accounts receivable, net of allowances for bad debt of $1,864 and
$4,599 at December 31, 2019 and December 31, 2018,
respectively |
65,863 |
|
|
102,798 |
|
Prepaid expenses |
24,224 |
|
|
45,058 |
|
Other current assets |
4,792 |
|
|
8,508 |
|
Total current assets |
133,891 |
|
|
294,454 |
|
Marketable securities, non-current |
— |
|
|
6,658 |
|
Property and equipment, net |
26,525 |
|
|
67,937 |
|
Operating lease right-of-use assets |
53,965 |
|
|
— |
|
Goodwill |
222,969 |
|
|
224,899 |
|
Intangible assets, net |
77,613 |
|
|
98,706 |
|
Other assets |
8,054 |
|
|
8,982 |
|
Equity method investment |
— |
|
|
1,619 |
|
Total assets |
$ |
523,017 |
|
|
$ |
703,255 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
21,551 |
|
|
13,576 |
|
Accrued expenses |
56,810 |
|
|
59,545 |
|
Deferred revenues, current |
65,858 |
|
|
57,101 |
|
Short-term convertible debt, net of debt issuance costs |
— |
|
|
113,542 |
|
Total current liabilities |
144,219 |
|
|
243,764 |
|
Lease financing obligation |
— |
|
|
9,494 |
|
Operating lease liabilities, non-current |
60,976 |
|
|
— |
|
Deferred tax liabilities |
1,098 |
|
|
1,347 |
|
Deferred revenues, non-current |
21,941 |
|
|
59,841 |
|
Other non-current liabilities |
4,588 |
|
|
10,797 |
|
Redeemable noncontrolling interest |
12,500 |
|
|
12,500 |
|
Commitments and contingencies |
|
|
|
Series A Convertible Participating Perpetual Preferred Stock,
$0.0001 par value; 10,000 shares authorized; 217 shares issued and
outstanding at December 31, 2019 |
200,865 |
|
|
176,603 |
|
Stockholders’ equity: |
|
|
|
Common stock, $0.0001 par value; 100,000 shares authorized, 51,704
and 49,836 shares issued; 44,542 and 42,674 outstanding at December
31, 2019 and December 31, 2018, respectively |
5 |
|
|
5 |
|
Treasury stock, at cost (7,162 and 7,162 shares at December 31,
2019 and December 31, 2018, respectively) |
(82,087 |
) |
|
(82,087 |
) |
Additional paid-in capital |
525,739 |
|
|
534,673 |
|
Accumulated other comprehensive loss |
(32,515 |
) |
|
(30,383 |
) |
Accumulated deficit |
(334,312 |
) |
|
(233,299 |
) |
Total stockholders’ equity |
76,830 |
|
|
188,909 |
|
Total liabilities and stockholders’ equity |
$ |
523,017 |
|
|
$ |
703,255 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(In
thousands, except per share data)
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
90,588 |
|
|
$ |
82,102 |
|
|
$ |
308,749 |
|
|
$ |
325,839 |
|
|
$ |
402,361 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
42,449 |
|
|
31,014 |
|
|
150,407 |
|
|
158,802 |
|
|
181,453 |
|
Research and development |
|
18,286 |
|
|
19,383 |
|
|
75,568 |
|
|
79,172 |
|
|
90,850 |
|
Selling, general and administrative |
|
29,909 |
|
|
22,744 |
|
|
112,771 |
|
|
122,112 |
|
|
154,037 |
|
Restructuring charges |
|
17 |
|
|
3,950 |
|
|
755 |
|
|
12,375 |
|
|
10,739 |
|
Depreciation and amortization |
|
18,116 |
|
|
47,324 |
|
|
77,036 |
|
|
117,654 |
|
|
94,884 |
|
Total costs and expenses |
|
108,777 |
|
|
124,415 |
|
|
416,537 |
|
|
490,115 |
|
|
531,963 |
|
Loss from continuing
operations |
|
(18,189 |
) |
|
(42,313 |
) |
|
(107,788 |
) |
|
(164,276 |
) |
|
(129,602 |
) |
Interest income |
|
542 |
|
|
252 |
|
|
1,258 |
|
|
7,770 |
|
|
12,502 |
|
Interest expense |
|
(104 |
) |
|
(976 |
) |
|
(1,355 |
) |
|
(4,911 |
) |
|
(55,771 |
) |
Gain (loss) on extinguishment of debt |
|
— |
|
|
1,760 |
|
|
822 |
|
|
1,760 |
|
|
(29,413 |
) |
Other Income (expense), net |
|
7,372 |
|
|
(65,737 |
) |
|
7,389 |
|
|
(74,917 |
) |
|
(17,678 |
) |
Equity method investment loss |
|
— |
|
|
(28,671 |
) |
|
(1,619 |
) |
|
(28,600 |
) |
|
(9,125 |
) |
Loss from continuing
operations, before taxes |
|
(10,379 |
) |
|
(135,685 |
) |
|
(101,293 |
) |
|
(263,174 |
) |
|
(229,087 |
) |
Benefit (provision) for income taxes |
|
4,446 |
|
|
16,290 |
|
|
(2,167 |
) |
|
17,894 |
|
|
34,863 |
|
Net loss from continuing
operations |
|
(5,933 |
) |
|
(119,395 |
) |
|
(103,460 |
) |
|
(245,280 |
) |
|
(194,224 |
) |
Net income from discontinued operations, net of tax |
|
— |
|
|
18,288 |
|
|
— |
|
|
18,288 |
|
|
75,495 |
|
Net loss |
|
(5,933 |
) |
|
(101,107 |
) |
|
(103,460 |
) |
|
(226,992 |
) |
|
(118,729 |
) |
Net (income) loss attributable to redeemable noncontrolling
interests |
|
(194 |
) |
|
6,715 |
|
|
(1,126 |
) |
|
8,837 |
|
|
9,291 |
|
Preferred stock dividend |
|
(8,544 |
) |
|
(7,517 |
) |
|
(32,134 |
) |
|
(25,593 |
) |
|
— |
|
Net loss attributable to
Synchronoss |
|
$ |
(14,671 |
) |
|
$ |
(101,909 |
) |
|
$ |
(136,720 |
) |
|
$ |
(243,748 |
) |
|
$ |
(109,438 |
) |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.36 |
) |
|
$ |
(3.01 |
) |
|
$ |
(3.36 |
) |
|
$ |
(6.51 |
) |
|
$ |
(4.14 |
) |
Discontinued operations |
|
— |
|
|
0.45 |
|
|
— |
|
|
0.46 |
|
|
1.69 |
|
|
|
$ |
(0.36 |
) |
|
$ |
(2.56 |
) |
|
$ |
(3.36 |
) |
|
$ |
(6.05 |
) |
|
$ |
(2.45 |
) |
Diluted: |
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.36 |
) |
|
$ |
(3.01 |
) |
|
$ |
(3.36 |
) |
|
$ |
(6.51 |
) |
|
$ |
(4.14 |
) |
Discontinued operations |
|
— |
|
|
0.45 |
|
|
— |
|
|
0.46 |
|
|
1.69 |
|
|
|
$ |
(0.36 |
) |
|
$ |
(2.56 |
) |
|
$ |
(3.36 |
) |
|
$ |
(6.05 |
) |
|
$ |
(2.45 |
) |
Weighted-average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
41,085 |
|
|
39,885 |
|
|
40,694 |
|
|
40,277 |
|
|
44,669 |
|
Diluted |
|
41,085 |
|
|
39,885 |
|
|
40,694 |
|
|
40,277 |
|
|
44,669 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.CONSOLIDATED STATEMENTS OF
CASH FLOWS (In thousands)
(Unaudited)
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2017 |
Operating
activities: |
|
|
|
|
|
Net loss continuing operations |
$ |
(103,460 |
) |
|
$ |
(245,280 |
) |
|
$ |
(194,224 |
) |
Net loss from discontinued operations |
— |
|
|
— |
|
|
75,495 |
|
Gain (loss) on Sale of discontinued operations, net of tax |
— |
|
|
18,288 |
|
|
(122,842 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
77,037 |
|
|
97,092 |
|
|
93,924 |
|
Goodwill impairment |
— |
|
|
9,100 |
|
|
— |
|
Impairment of long-lived assets and capitalized software |
— |
|
|
11,462 |
|
|
960 |
|
Change in fair value of financial instruments |
(163 |
) |
|
(3,849 |
) |
|
4,367 |
|
Amortization of debt issuance costs |
285 |
|
|
1,294 |
|
|
12,771 |
|
(Gain) loss on extinguishment of debt |
(822 |
) |
|
(1,760 |
) |
|
29,413 |
|
Accrued PIK interest |
— |
|
|
(7,037 |
) |
|
(12,090 |
) |
Allowance for loan losses |
— |
|
|
84,314 |
|
|
14,562 |
|
Loss (earnings) from Equity method investments |
1,619 |
|
|
28,600 |
|
|
9,125 |
|
(Gain) loss on Disposals of fixed assets |
15 |
|
|
277 |
|
|
(4,947 |
) |
Discontinued operations non-cash and working capital
adjustments |
— |
|
|
— |
|
|
48,647 |
|
(Gain) loss on Disposals of intangible assets |
(5,429 |
) |
|
— |
|
|
— |
|
Amortization of bond premium |
(34 |
) |
|
107 |
|
|
244 |
|
Deferred income taxes |
(222 |
) |
|
(12,350 |
) |
|
19,243 |
|
Non-cash interest on leased facility |
— |
|
|
|
|
1,203 |
|
Stock-based compensation |
22,287 |
|
|
27,604 |
|
|
22,495 |
|
Contingent consideration obligation |
— |
|
|
— |
|
|
(2,711 |
) |
Cumulative adjustment to STI receivable |
26,044 |
|
|
— |
|
|
|
ROU Asset Impairment |
6,268 |
|
|
— |
|
|
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable, net of allowance for doubtful accounts |
10,891 |
|
|
(21,521 |
) |
|
29,283 |
|
Prepaid expenses and other current assets |
27,215 |
|
|
(5,315 |
) |
|
(5,513 |
) |
Other assets |
1,710 |
|
|
973 |
|
|
3,237 |
|
Accounts payable |
8,879 |
|
|
6,846 |
|
|
(9,098 |
) |
Accrued expenses |
(7,059 |
) |
|
(18,068 |
) |
|
(4,949 |
) |
Other liabilities |
(4,362 |
) |
|
(4,675 |
) |
|
(3,337 |
) |
Deferred revenues |
(28,856 |
) |
|
2,529 |
|
|
(23,506 |
) |
Net cash provided by
(used in) operating activities |
31,843 |
|
|
(31,369 |
) |
|
(18,248 |
) |
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
Purchases of fixed assets |
(8,183 |
) |
|
(11,656 |
) |
|
(12,151 |
) |
Purchases of intangible assets and capitalized software |
(13,008 |
) |
|
(14,372 |
) |
|
(9,119 |
) |
Proceeds from the sale of intangibles |
5,429 |
|
|
— |
|
|
— |
|
Proceeds from the sale of Speechcycle |
— |
|
|
— |
|
|
13,500 |
|
Purchases of marketable securities available for sale |
(51,745 |
) |
|
(36,789 |
) |
|
(219 |
) |
Maturity of marketable securities available for sale |
86,884 |
|
|
4,865 |
|
|
12,371 |
|
Proceeds from the sale of discontinued operations |
— |
|
|
— |
|
|
928,171 |
|
Equity investment |
— |
|
|
404 |
|
|
608 |
|
Investing activities in discontinued operations |
— |
|
|
— |
|
|
(13,721 |
) |
Investment in note receivable |
— |
|
|
— |
|
|
(6,187 |
) |
Business acquired, net of cash |
— |
|
|
(9,734 |
) |
|
(815,008 |
) |
Net cash provided by
(used in) investing activities |
19,377 |
|
|
(67,282 |
) |
|
98,245 |
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
Share-based compensation-related proceeds, net of taxes paid on
withholding shares |
39 |
|
|
— |
|
|
2,584 |
|
Taxes paid on withholding shares |
(15 |
) |
|
— |
|
|
(442 |
) |
Payments on contingent consideration |
— |
|
|
— |
|
|
(122 |
) |
Debt issuance costs related to the Credit Facility |
— |
|
|
— |
|
|
(3,692 |
) |
Debt issuance costs related to long-term debt |
— |
|
|
— |
|
|
(19,887 |
) |
Debt amendment costs related to long-term debt |
— |
|
|
— |
|
|
(16,776 |
) |
Proceeds from issuance of convertible notes |
— |
|
|
— |
|
|
900,000 |
|
Retirement of Convertible Senior Notes & related costs |
(113,006 |
) |
|
(113,696 |
) |
|
— |
|
Repayment of long-term debt |
— |
|
|
— |
|
|
(900,000 |
) |
Borrowings on revolving line of credit |
2,000 |
|
|
— |
|
|
|
Repayment of revolving line of credit |
(2,000 |
) |
|
— |
|
|
(29,000 |
) |
Excess tax benefits from stock option exercises |
— |
|
|
— |
|
|
17 |
|
Proceeds from the sale of treasury stock in connection with an
employee stock purchase plan |
— |
|
|
— |
|
|
1,047 |
|
Proceeds from issuance of preferred stock |
— |
|
|
86,220 |
|
|
— |
|
Preferred dividend payment |
(7,075 |
) |
|
(7,075 |
) |
|
— |
|
Proceeds from mandatorily redeemable financial instruments |
— |
|
|
— |
|
|
33,592 |
|
Payments on capital obligations |
(1,200 |
) |
|
(1,334 |
) |
|
(2,985 |
) |
Net cash used in
financing activities |
(121,257 |
) |
|
(35,885 |
) |
|
(35,664 |
) |
|
|
|
|
|
|
Effect of exchange rate changes on cash |
(822 |
) |
|
(1,729 |
) |
|
(9,641 |
) |
|
|
|
|
|
|
Net decrease in cash and cash
equivalents |
(70,859 |
) |
|
(136,265 |
) |
|
34,692 |
|
Cash and cash
equivalents, beginning of period |
109,860 |
|
|
246,125 |
|
|
211,433 |
|
Cash and cash
equivalents, end of period |
$ |
39,001 |
|
|
$ |
109,860 |
|
|
$ |
246,125 |
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
Cash paid for income taxes |
$ |
3,598 |
|
|
$ |
22,549 |
|
|
$ |
7,612 |
|
Cash refund for income taxes |
$ |
20,733 |
|
|
$ |
— |
|
|
$ |
— |
|
Cash paid for interest |
$ |
666 |
|
|
$ |
3,258 |
|
|
$ |
55,957 |
|
|
|
|
|
|
|
Supplemental
disclosures of non-cash investing and financing
activities: |
|
|
|
|
|
Supplemental disclosures of non-cash investing and financing
activities: |
|
|
|
|
|
Accrued dividends on Series A Convertible Participating Perpetual
Preferred Stock |
$ |
22,005 |
|
|
$ |
7,075 |
|
|
$ |
— |
|
Issuance of common stock in connection with Intralinks
acquisition |
$ |
— |
|
|
$ |
— |
|
|
$ |
4,700 |
|
|
|
|
|
|
|
Cash and cash equivalents per Consolidated Balance Sheets |
$ |
38,990 |
|
|
$ |
103,771 |
|
|
$ |
156,299 |
|
Restricted cash |
$ |
11 |
|
|
$ |
6,089 |
|
|
$ |
89,826 |
|
Total cash, cash
equivalents and restricted cash |
$ |
39,001 |
|
|
$ |
109,860 |
|
|
$ |
246,125 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Three Months Ended Dec 31, |
|
Twelve Months Ended Dec 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Non-GAAP financial
measures and reconciliation: |
|
|
|
|
|
|
|
|
GAAP Revenue |
|
$ |
90,588 |
|
|
$ |
82,102 |
|
|
$ |
308,749 |
|
|
$ |
325,839 |
|
Less: Cost of revenues |
|
42,449 |
|
|
31,014 |
|
|
150,407 |
|
|
158,802 |
|
Gross
Profit |
|
48,139 |
|
|
51,088 |
|
|
158,342 |
|
|
167,037 |
|
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
782 |
|
|
1,035 |
|
|
2,928 |
|
|
3,447 |
|
Restructuring and cease-use lease expense |
|
— |
|
|
|
|
405 |
|
|
|
Cumulative adjustment to STI receivable |
|
— |
|
|
|
|
26,044 |
|
|
|
Adjusted Gross
Profit |
|
$ |
48,921 |
|
|
$ |
52,123 |
|
|
$ |
187,719 |
|
|
$ |
170,484 |
|
Adjusted Gross
Margin |
|
54.0 |
% |
|
63.5 |
% |
|
60.8 |
% |
|
52.3 |
% |
|
|
|
|
|
|
|
|
|
GAAP Net loss
attributable to Synchronoss |
|
$ |
(14,671 |
) |
|
$ |
(101,909 |
) |
|
$ |
(136,720 |
) |
|
$ |
(243,748 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
5,222 |
|
|
7,216 |
|
|
22,250 |
|
|
22,038 |
|
Acquisition costs |
|
— |
|
|
38 |
|
|
(230 |
) |
|
149 |
|
Restructuring and cease-use lease expense |
|
17 |
|
|
4,539 |
|
|
7,446 |
|
|
8,425 |
|
Amortization expense |
|
5,610 |
|
|
8,472 |
|
|
24,683 |
|
|
25,122 |
|
Non-GAAP Expenses attributable to Non-Controlling Interest |
|
— |
|
|
(523 |
) |
|
(76 |
) |
|
(1,269 |
) |
One-Time Expenses due to Restatement, etc. |
|
1,320 |
|
|
3,638 |
|
|
2,826 |
|
|
19,608 |
|
Cumulative adjustment to STI receivable |
|
— |
|
|
|
|
26,044 |
|
|
|
Income Tax Effect at Statutory Tax Rates |
|
— |
|
|
(2,308 |
) |
|
— |
|
|
(7,239 |
) |
Non-GAAP Net loss from
continuing operations attributable to Synchronoss |
|
$ |
(2,502 |
) |
|
$ |
(80,837 |
) |
|
$ |
(53,777 |
) |
|
$ |
(176,914 |
) |
|
|
|
|
|
|
|
|
|
Diluted Non-GAAP Net loss from
continuing operations per share |
|
$ |
(0.06 |
) |
|
$ |
(2.04 |
) |
|
$ |
(1.32 |
) |
|
$ |
(4.39 |
) |
|
|
|
|
|
|
|
|
|
Weighted shares outstanding -
Basic |
|
41,085 |
|
|
39,612 |
|
|
40,694 |
|
|
40,277 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2019 |
|
Dec 31, 2019 |
|
Dec 31, 2019 |
|
Dec 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Synchronoss |
|
$ |
(101,909 |
) |
|
$ |
(27,587 |
) |
|
$ |
(25,030 |
) |
|
$ |
(69,432 |
) |
|
$ |
(14,671 |
) |
|
$ |
(136,720 |
) |
|
$ |
(243,748 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and cease-use lease expense |
|
3,950 |
|
|
740 |
|
|
474 |
|
|
6,215 |
|
|
17 |
|
|
7,446 |
|
|
12,375 |
|
Depreciation and amortization |
|
47,324 |
|
|
20,143 |
|
|
20,269 |
|
|
18,508 |
|
|
18,116 |
|
|
77,036 |
|
|
117,654 |
|
Interest income |
|
(252 |
) |
|
(189 |
) |
|
(299 |
) |
|
(228 |
) |
|
(542 |
) |
|
(1,258 |
) |
|
(7,770 |
) |
Interest Expense |
|
976 |
|
|
585 |
|
|
463 |
|
|
203 |
|
|
104 |
|
|
1,355 |
|
|
4,911 |
|
Gain on Extinguishment of debt |
|
(1,760 |
) |
|
(387 |
) |
|
(430 |
) |
|
(5 |
) |
|
— |
|
|
(822 |
) |
|
(1,760 |
) |
Other Income (expense), net |
|
65,737 |
|
|
(463 |
) |
|
24 |
|
|
422 |
|
|
(7,372 |
) |
|
(7,389 |
) |
|
74,917 |
|
Equity method investment loss |
|
28,671 |
|
|
1,243 |
|
|
376 |
|
|
— |
|
|
— |
|
|
1,619 |
|
|
28,600 |
|
Provision (benefit) for income taxes |
|
(16,290 |
) |
|
(1,391 |
) |
|
(1,844 |
) |
|
9,849 |
|
|
(4,446 |
) |
|
2,168 |
|
|
(17,894 |
) |
Net (loss) income attributable to noncontrolling interests |
|
(6,715 |
) |
|
313 |
|
|
593 |
|
|
25 |
|
|
194 |
|
|
1,125 |
|
|
(8,837 |
) |
Preferred dividend |
|
7,517 |
|
|
7,537 |
|
|
7,859 |
|
|
8,194 |
|
|
8,544 |
|
|
32,134 |
|
|
25,593 |
|
Stock-based compensation expense |
|
5,566 |
|
|
5,554 |
|
|
5,474 |
|
|
6,000 |
|
|
5,222 |
|
|
22,250 |
|
|
27,604 |
|
Acquisition costs |
|
109 |
|
|
(188 |
) |
|
(42 |
) |
|
— |
|
|
— |
|
|
(230 |
) |
|
258 |
|
Cumulative adjustment to STI receivable |
|
|
|
|
|
|
|
26,044 |
|
|
— |
|
|
26,044 |
|
|
|
One-Time Expenses due to Restatement, etc. |
|
800 |
|
|
720 |
|
|
782 |
|
|
4 |
|
|
1,320 |
|
|
2,826 |
|
|
20,408 |
|
Net income from discontinued operations, net of taxes |
|
(18,288 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(18,288 |
) |
Adjusted EBITDA
(non-GAAP) |
|
$ |
15,436 |
|
|
$ |
6,630 |
|
|
$ |
8,669 |
|
|
$ |
5,799 |
|
|
$ |
6,486 |
|
|
$ |
27,584 |
|
|
$ |
14,023 |
|
|
|
Three Months Ended Dec 31, |
|
Twelve Months Ended Dec 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Net Cash (used in) provided by operating
activities |
|
$ |
20,004 |
|
|
$ |
29,293 |
|
|
$ |
31,843 |
|
|
$ |
(31,369 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
Capitalized software |
|
(3,719 |
) |
|
(3,360 |
) |
|
(13,008 |
) |
|
(14,372 |
) |
Property and equipment |
|
(1,106 |
) |
|
(3,091 |
) |
|
(8,183 |
) |
|
(11,656 |
) |
Free
Cashflow |
|
$ |
15,179 |
|
|
$ |
22,842 |
|
|
$ |
10,652 |
|
|
$ |
(57,397 |
) |
Add: One-Time Expenses due to Restatement, etc. |
|
1,320 |
|
|
800 |
|
|
2,826 |
|
|
20,408 |
|
Adjusted Free
Cashflow |
|
$ |
16,499 |
|
|
$ |
23,642 |
|
|
$ |
13,478 |
|
|
$ |
(36,989 |
) |
Synchronoss Technologies (NASDAQ:SNCR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Synchronoss Technologies (NASDAQ:SNCR)
Historical Stock Chart
From Sep 2023 to Sep 2024