Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and
innovator in cloud, messaging, digital and IoT platforms and
products, today announced financial results for fourth quarter and
full year ended December 31, 2018.
Fourth quarter highlights include:
- Revenue was $82.1 million, including 83 percent recurring
revenue.
- GAAP net loss for the quarter was $101.9 million, or $2.56 per
share, which included $109.1 million of pretax non-cash asset
impairments.
- Synchronoss delivered $15.4 million of adjusted EBITDA, up 64.9
percent from $9.4 million in the third quarter. Adjusted EBITDA
margin in the fourth quarter reached 18.8 percent, up 67.3 percent
from 11.2 percent in the third quarter.
- Cash flow provided by operations during the quarter was $29.3
million.
Glenn Lurie, president and chief executive officer, stated, “Our
fourth quarter financial results show that Synchronoss continues to
meet its financial and operational commitments to shareholders. We
delivered positive adjusted EBITDA for the second straight quarter
and the third straight quarter of improvement, adjusted EBITDA
margins reached their highest level of the year, and we delivered
nearly $30 million of cash flow from operations. In addition, thus
far in early 2019 we are winning a growing number of new customers
while expanding engagements with existing customers. Our
success is being driven by the significant value our platforms
deliver in solving some of the most complex challenges facing the
Telecommunications Media and Technology (TMT) industry, including
the risk of disintermediation from Over-The-Top (OTT) applications,
managing the increasing complexity to deliver a true digital
consumer experiences and journeys that end-users expect while
reducing costs and driving incremental revenue.”
Today, Synchronoss is announcing a new Cloud agreement with
Assurant, Inc. which will white-label our Synchronoss cloud
platform for its Pocket Geek solution which is offered in their
device protection bundles.
This announcement builds on several important customer
agreements and partnerships that the company won earlier in the
quarter, including:
- A deal and partnership with Rackspace, which will utilize the
DXP platform to enhance its internal operational efficiencies and
journeys, as well as resell the entire Synchronoss DXP platform and
product suite to its global customer portfolio.
- The renewal of its agreement to power the BT Cloud. BT has been
a Synchronoss cloud services and storage partner since 2015, and
the contract renewal signifies a deepening relationship between
Synchronoss and BT.
- The continued expansion and development of our advanced
messaging initiative with the 3 major Japanese mobile
operators.
Full year financial highlights include:
- Synchronoss delivered $325.8 million of revenue for the year.
In addition, Synchronoss successfully migrated to over 79 percent
recurring revenue in 2018, from 75 percent in 2017.
- GAAP net loss for the year was $243.7 million, or $6.05 per
share, which included $127.3 million of pretax non-cash asset
impairments.
- Adjusted EBITDA for the full year was $14.0 million.
- Synchronoss generated $24.8 million of adjusted EBITDA in the
second half of the year, after adjusting for $4.9 million of first
quarter expenses that were recognized in the third quarter.
- Synchronoss achieved $20 million of annualized cost savings in
2018 with another $25 million annualized run rate expected to be
realized in 2019.
- Synchronoss retired over 50% of its convertible debt and paid
its third and fourth-quarter quarter dividend on its convertible
preferred stock in cash instead of additional shares.
David Clark, chief financial officer, added, “During 2018, we
stabilized and reset our core business, aligned the entire team
towards our key priorities and core values, and evolved our
platforms and product roadmaps to meet customer needs. As a result
of those actions, we made a great deal of progress to improve
operating leverage and profitability, drive free cash flow, and
reduce debt. We believe there is additional cost savings
opportunity, and going forward, we will continue to focus on
delivering profitable revenue growth and cost efficiencies.
Finally, demonstrating our confidence in our cash-generating
abilities, in early 2019 we again paid the quarterly dividend on
our preferred stock in cash instead of shares, and we repurchased
an additional $11.5 million of our convertible debt.”
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 DetailsSynchronoss will host a
conference call on Tuesday, March 12, 2019, 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 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 13687208.
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 MeasuresSynchronoss 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, changes in the contingent
consideration obligation, deferred compensation expense related to
earn outs and amortization of intangibles associated with
acquisitions.
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 StatementsThis 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 sufficiency of the
Company’s cash resources and its ability to satisfy or refinance
its existing debt obligations, 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/A for the year ended December
31, 2017 and Quarterly Report on Form 10-Q/A for the quarter ended
September 30, 2018, which are 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
9219synchronoss@ccgrouppr.com
SYNCHRONOSS TECHNOLOGIES,
INC.CONSOLIDATED BALANCE
SHEETS(In
thousands)(Unaudited)
|
|
|
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
|
|
ASSETS |
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
103,771 |
|
|
$ |
156,299 |
|
Restricted cash |
6,089 |
|
|
89,826 |
|
Marketable securities, current |
28,230 |
|
|
3,111 |
|
Accounts
receivable, net of allowances of $4,599 and $3,107 at December 31,
2018 and December 31, 2017, respectively |
102,798 |
|
|
78,186 |
|
Prepaid
expenses |
45,058 |
|
|
33,957 |
|
Other
current assets |
8,508 |
|
|
9,600 |
|
Total current
assets |
294,454 |
|
|
370,979 |
|
Marketable securities, non-current |
6,658 |
|
|
— |
|
Property
and equipment, net |
67,937 |
|
|
111,825 |
|
Goodwill |
223,090 |
|
|
237,303 |
|
Intangible assets, net |
98,706 |
|
|
132,167 |
|
Other
assets |
8,982 |
|
|
5,236 |
|
Note
receivable from related party |
— |
|
|
73,984 |
|
Equity
method investment |
1,619 |
|
|
33,917 |
|
Total assets |
$ |
701,446 |
|
|
$ |
965,411 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
13,576 |
|
|
$ |
5,959 |
|
Accrued
expenses |
59,545 |
|
|
72,739 |
|
Deferred
revenues, current |
57,101 |
|
|
75,829 |
|
Short-term convertible debt, net of debt issuance costs |
113,542 |
|
|
— |
|
Mandatorily redeemable financial instrument |
— |
|
|
37,959 |
|
Total current
liabilities |
243,764 |
|
|
192,486 |
|
Lease
financing obligation |
9,494 |
|
|
11,183 |
|
Long-term
convertible debt, net of debt issuance costs |
— |
|
|
227,704 |
|
Deferred
tax liabilities |
1,347 |
|
|
13,735 |
|
Deferred
revenues, non-current |
59,841 |
|
|
25,241 |
|
Other
liabilities |
10,797 |
|
|
6,195 |
|
Commitments and
contingencies |
|
|
|
Redeemable noncontrolling interest |
12,500 |
|
|
25,280 |
|
Series A
Convertible Participating Perpetual Preferred Stock, $0.0001 par
value; 10,000 shares authorized; 195 shares issued and outstanding
at December 31, 2018 |
176,603 |
|
|
— |
|
Stockholders’ equity: |
|
|
|
Common
stock, $0.0001 par value; 100,000 shares authorized, 49,836 and
52,024 shares issued; 42,674 and 46,965 outstanding at December 31,
2018 and December 31, 2017, respectively |
5 |
|
|
5 |
|
Treasury
stock, at cost (7,162 and 5,059 shares at December 31, 2018 and
December 31, 2017, respectively) |
(82,087 |
) |
|
(105,584 |
) |
Additional paid-in capital |
534,673 |
|
|
597,553 |
|
Accumulated other comprehensive loss |
(32,192 |
) |
|
(23,373 |
) |
Accumulated deficit |
(233,299 |
) |
|
(5,014 |
) |
Total stockholders’
equity |
187,100 |
|
|
463,587 |
|
Total liabilities and
stockholders’ equity |
$ |
701,446 |
|
|
$ |
965,411 |
|
|
|
|
|
|
|
|
|
SYNCHRONOSS TECHNOLOGIES,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share
data)(Unaudited)
|
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
Net revenues |
|
$ |
325,839 |
|
|
$ |
402,361 |
|
|
$ |
426,294 |
|
Costs and
expenses: |
|
|
|
|
|
|
Cost of
revenues |
|
158,802 |
|
|
181,453 |
|
|
194,684 |
|
Research
and development |
|
79,172 |
|
|
90,850 |
|
|
114,493 |
|
Selling,
general and administrative |
|
122,112 |
|
|
154,037 |
|
|
126,228 |
|
Net
change in contingent consideration obligation |
|
— |
|
|
— |
|
|
1,194 |
|
Restructuring charges |
|
12,375 |
|
|
10,739 |
|
|
6,333 |
|
Depreciation and amortization |
|
117,654 |
|
|
94,884 |
|
|
105,966 |
|
Total costs and
expenses |
|
490,115 |
|
|
531,963 |
|
|
548,898 |
|
Loss from continuing
operations |
|
(164,276 |
) |
|
(129,602 |
) |
|
(122,604 |
) |
Interest
income |
|
7,770 |
|
|
12,502 |
|
|
1,907 |
|
Interest
expense |
|
(4,911 |
) |
|
(55,771 |
) |
|
(7,414 |
) |
Gain
(loss) on extinguishment of debt |
|
1,760 |
|
|
(29,413 |
) |
|
— |
|
Other
(expense) income, net |
|
(74,917 |
) |
|
(17,678 |
) |
|
1,022 |
|
Equity
method investment loss, net |
|
(28,600 |
) |
|
(9,125 |
) |
|
— |
|
Loss from continuing
operations, before taxes |
|
(263,174 |
) |
|
(229,087 |
) |
|
(127,089 |
) |
Benefit
for income taxes |
|
17,894 |
|
|
34,863 |
|
|
33,220 |
|
Net loss from
continuing operations |
|
(245,280 |
) |
|
(194,224 |
) |
|
(93,869 |
) |
Net
income from discontinued operations, net of tax |
|
18,288 |
|
|
75,495 |
|
|
90,560 |
|
Net loss |
|
(226,992 |
) |
|
(118,729 |
) |
|
(3,309 |
) |
Net loss
attributable to redeemable noncontrolling interests |
|
8,837 |
|
|
9,291 |
|
|
15,203 |
|
Preferred
stock dividend |
|
(25,593 |
) |
|
— |
|
|
— |
|
Net loss attributable
to Synchronoss |
|
$ |
(243,748 |
) |
|
$ |
(109,438 |
) |
|
$ |
11,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
Continuing operations |
|
$ |
(6.51 |
) |
|
$ |
(4.14 |
) |
|
$ |
(1.81 |
) |
Discontinued operations |
|
0.46 |
|
|
1.69 |
|
|
2.08 |
|
|
|
$ |
(6.05 |
) |
|
$ |
(2.45 |
) |
|
$ |
0.27 |
|
Diluted: |
|
|
|
|
|
|
Continuing operations |
|
$ |
(6.51 |
) |
|
$ |
(4.14 |
) |
|
$ |
(1.81 |
) |
Discontinued operations |
|
0.46 |
|
|
1.69 |
|
|
2.08 |
|
|
|
$ |
(6.05 |
) |
|
$ |
(2.45 |
) |
|
$ |
0.27 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
40,277 |
|
|
44,669 |
|
|
43,551 |
|
Diluted |
|
40,277 |
|
|
44,669 |
|
|
43,551 |
|
|
|
|
|
|
|
|
|
|
|
SYNCHRONOSS TECHNOLOGIES,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share
data)(Unaudited)
|
|
Three Months Ended December 31, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Net revenues |
|
$ |
82,102 |
|
|
$ |
106,259 |
|
Costs and
expenses: |
|
|
|
|
Cost of
revenues |
|
31,014 |
|
|
42,067 |
|
Research
and development |
|
19,383 |
|
|
23,616 |
|
Selling,
general and administrative |
|
22,744 |
|
|
50,988 |
|
Restructuring charges |
|
3,950 |
|
|
(976 |
) |
Depreciation and amortization |
|
47,324 |
|
|
23,786 |
|
Total costs and
expenses |
|
124,415 |
|
|
139,481 |
|
Loss from continuing
operations |
|
(42,313 |
) |
|
(33,222 |
) |
Interest
income |
|
252 |
|
|
3,345 |
|
Interest
expense |
|
(976 |
) |
|
(7,755 |
) |
Gain
(loss) on extinguishment of debt |
|
1,760 |
|
|
(29,413 |
) |
Other
expense, net |
|
(65,737 |
) |
|
(20,052 |
) |
Equity
method investment loss, net |
|
(28,671 |
) |
|
(10,751 |
) |
Loss from continuing
operations, before taxes |
|
(135,685 |
) |
|
(97,848 |
) |
Benefit
for income taxes |
|
16,290 |
|
|
16,890 |
|
Net loss from
continuing operations |
|
(119,395 |
) |
|
(80,958 |
) |
Net
income from discontinued operations, net of tax |
|
18,288 |
|
|
89,562 |
|
Net (loss) income |
|
(101,107 |
) |
|
8,604 |
|
Net loss
attributable to redeemable noncontrolling interests |
|
6,715 |
|
|
2,311 |
|
Preferred
stock dividend |
|
(7,517 |
) |
|
— |
|
Net (loss) income
attributable to Synchronoss |
|
$ |
(101,909 |
) |
|
$ |
10,915 |
|
|
|
|
|
|
Basic: |
|
|
|
|
Continuing operations |
|
$ |
(3.01 |
) |
|
$ |
(1.75 |
) |
Discontinued operations |
|
0.45 |
|
|
1.99 |
|
|
|
$ |
(2.56 |
) |
|
$ |
0.24 |
|
Diluted: |
|
|
|
|
Continuing operations |
|
$ |
(3.01 |
) |
|
$ |
(1.75 |
) |
Discontinued operations |
|
0.45 |
|
|
1.99 |
|
|
|
$ |
(2.56 |
) |
|
$ |
0.24 |
|
Weighted-average common shares outstanding: |
|
|
|
|
Basic |
|
39,885 |
|
|
45,039 |
|
Diluted |
|
39,885 |
|
|
45,039 |
|
|
|
|
|
|
|
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
Non-GAAP
financial measures and reconciliation: |
|
|
|
|
GAAP
Revenue |
|
$ |
325,839 |
|
|
$ |
402,361 |
|
Less:
Cost of revenues |
|
158,802 |
|
|
181,453 |
|
Gross
Profit |
|
167,037 |
|
|
220,908 |
|
Add /
(Less): |
|
|
|
|
Stock-based compensation expense |
|
4,370 |
|
|
4,602 |
|
Acquisition costs |
|
— |
|
|
(2 |
) |
Integration |
|
— |
|
|
1,744 |
|
Adjusted Gross
Profit |
|
$ |
171,407 |
|
|
$ |
227,252 |
|
Adjusted Gross
Margin |
|
52.6 |
% |
|
56.5 |
% |
|
|
|
|
|
GAAP Net loss
from continuing operations |
|
(164,276 |
) |
|
(129,602 |
) |
Add /
(Less): |
|
|
|
|
Stock-based compensation expense |
|
27,604 |
|
|
22,495 |
|
Acquisition costs |
|
258 |
|
|
13,023 |
|
Restructuring |
|
12,375 |
|
|
10,739 |
|
Amortization expense |
|
53,717 |
|
|
34,695 |
|
Integration |
|
— |
|
|
7,804 |
|
One-Time
Expenses due to Restatement, etc. |
|
20,408 |
|
|
37,197 |
|
Non-GAAP Net
loss from continuing operations |
|
$ |
(49,914 |
) |
|
$ |
(3,649 |
) |
|
|
|
|
|
GAAP Net loss
attributable to Synchronoss |
|
$ |
(243,748 |
) |
|
$ |
(109,438 |
) |
Less: Net
income from discontinued operations, net of taxes |
|
(18,288 |
) |
|
(75,495 |
) |
Net loss from
continuing operations attributable to Synchronoss |
|
(262,036 |
) |
|
(184,933 |
) |
Add /
(Less): |
|
|
|
|
Stock-based compensation expense |
|
27,604 |
|
|
22,495 |
|
Acquisition costs |
|
258 |
|
|
13,023 |
|
Restructuring |
|
12,375 |
|
|
10,739 |
|
Amortization expense |
|
53,717 |
|
|
34,695 |
|
Loss on
Extinguishment of Debt |
|
— |
|
|
29,413 |
|
Non-GAAP
Expenses attributable to Non-Controlling Interest |
|
(8,673 |
) |
|
(1,955 |
) |
One-Time
Expenses due to Restatement, etc. |
|
20,408 |
|
|
37,197 |
|
Integration |
|
— |
|
|
7,804 |
|
Income
Tax Effect at Statutory Tax Rates |
|
(17,894 |
) |
|
(34,863 |
) |
Non-GAAP Net
loss from continuing operations attributable to
Synchronoss |
|
$ |
(174,241 |
) |
|
$ |
(66,385 |
) |
|
|
|
|
|
Diluted Non-GAAP Net
loss from continuing operations per share |
|
$ |
(4.33 |
) |
|
$ |
(1.49 |
) |
|
|
|
|
|
Weighted shares
outstanding - Basic |
|
40,277 |
|
|
44,669 |
|
|
|
|
|
|
|
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
Net loss
attributable to Synchronoss |
|
$ |
(243,748 |
) |
|
$ |
(109,438 |
) |
Add /
(Less): |
|
|
|
|
Restructuring |
|
12,375 |
|
|
10,739 |
|
Depreciation and amortization |
|
117,654 |
|
|
94,884 |
|
Interest
income |
|
(7,770 |
) |
|
(12,502 |
) |
Interest
Expense |
|
4,911 |
|
|
55,771 |
|
Loss on
Extinguishment of debt |
|
(1,760 |
) |
|
29,413 |
|
Other
Income (expense), net |
|
74,917 |
|
|
17,678 |
|
Equity
method investment income (loss), net |
|
28,600 |
|
|
9,125 |
|
Benefit
for income taxes |
|
(17,894 |
) |
|
(34,863 |
) |
Net
(loss) income attributable to noncontrolling interests |
|
(8,837 |
) |
|
(9,291 |
) |
Preferred
dividend |
|
25,593 |
|
|
— |
|
Stock-based compensation expense |
|
27,604 |
|
|
22,495 |
|
Acquisition costs |
|
258 |
|
|
13,023 |
|
Integration |
|
— |
|
|
7,804 |
|
One-Time
Expenses due to Restatement, etc. |
|
20,408 |
|
|
37,197 |
|
Net
income from discontinued operations, net of taxes |
|
(18,288 |
) |
|
(75,495 |
) |
Adjusted EBITDA
(non-GAAP) |
|
$ |
14,023 |
|
|
$ |
56,540 |
|
|
|
|
|
|
|
|
|
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Three Months Ended December 31, |
|
|
2018 |
|
2017 |
Non-GAAP
financial measures and reconciliation: |
|
|
|
|
GAAP
Revenue |
|
$ |
82,102 |
|
|
$ |
106,259 |
|
Less:
Cost of revenues |
|
31,014 |
|
|
42,067 |
|
Gross
Profit |
|
51,088 |
|
|
64,192 |
|
Add /
(Less): |
|
|
|
|
Stock-based compensation expense |
|
923 |
|
|
1,276 |
|
Integration |
|
— |
|
|
253 |
|
Adjusted Gross
Profit |
|
$ |
52,011 |
|
|
$ |
65,721 |
|
Adjusted Gross
Margin |
|
63.3 |
% |
|
61.8 |
% |
|
|
|
|
|
GAAP Net loss
from continuing operations |
|
(42,313 |
) |
|
(33,222 |
) |
Add /
(Less): |
|
|
|
|
Stock-based compensation expense |
|
5,566 |
|
|
8,067 |
|
Acquisition costs |
|
109 |
|
|
10,499 |
|
Restructuring |
|
3,950 |
|
|
(976 |
) |
Amortization expense |
|
28,595 |
|
|
8,634 |
|
Integration |
|
— |
|
|
944 |
|
One-Time
Expenses due to Restatement, etc. |
|
800 |
|
|
21,920 |
|
Non-GAAP Net
(loss) income from continuing operations |
|
$ |
(3,293 |
) |
|
$ |
15,866 |
|
|
|
|
|
|
GAAP Net (loss)
income attributable to Synchronoss |
|
$ |
(101,909 |
) |
|
$ |
10,915 |
|
Less: Net
income from discontinued operations, net of taxes |
|
(18,288 |
) |
|
(89,562 |
) |
Net loss from
continuing operations attributable to Synchronoss |
|
(120,197 |
) |
|
(78,647 |
) |
Add /
(Less): |
|
|
|
|
Stock-based compensation expense |
|
5,566 |
|
|
8,067 |
|
Acquisition costs |
|
109 |
|
|
10,499 |
|
Restructuring |
|
3,950 |
|
|
(976 |
) |
Amortization expense |
|
28,595 |
|
|
8,634 |
|
Loss on
Extinguishment of Debt |
|
— |
|
|
29,413 |
|
Non-GAAP
Expenses attributable to Non-Controlling Interest |
|
(7,404 |
) |
|
(465 |
) |
One-Time
Expenses due to Restatement, etc. |
|
800 |
|
|
21,920 |
|
Integration |
|
— |
|
|
944 |
|
Income
Tax Effect at Statutory Tax Rates |
|
(10,655 |
) |
|
(16,619 |
) |
Non-GAAP Net
loss from continuing operations attributable to
Synchronoss |
|
$ |
(99,236 |
) |
|
$ |
(17,230 |
) |
|
|
|
|
|
Diluted Non-GAAP Net
loss from continuing operations per share |
|
$ |
(2.49 |
) |
|
$ |
(0.38 |
) |
|
|
|
|
|
Weighted shares
outstanding - Basic |
|
39,885 |
|
|
45,039 |
|
|
|
|
|
|
|
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share data)(Unaudited)
|
|
Three Months Ended December 31, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Net (loss)
income attributable to Synchronoss |
|
$ |
(101,909 |
) |
|
$ |
10,915 |
|
Add /
(Less): |
|
|
|
|
Restructuring |
|
3,950 |
|
|
(976 |
) |
Depreciation and amortization |
|
47,324 |
|
|
23,786 |
|
Interest
income |
|
(252 |
) |
|
(3,345 |
) |
Interest
Expense |
|
976 |
|
|
7,755 |
|
Loss on
Extinguishment of debt |
|
(1,760 |
) |
|
29,413 |
|
Other
Income (expense), net |
|
65,737 |
|
|
20,052 |
|
Equity
method investment income (loss), net |
|
28,671 |
|
|
10,751 |
|
Benefit
for income taxes |
|
(16,290 |
) |
|
(16,890 |
) |
Net
(loss) income attributable to noncontrolling interests |
|
(6,715 |
) |
|
(2,311 |
) |
Preferred
dividend |
|
7,517 |
|
|
— |
|
Stock-based compensation expense |
|
5,566 |
|
|
8,067 |
|
Acquisition costs |
|
109 |
|
|
10,499 |
|
Integration |
|
— |
|
|
944 |
|
One-Time
Expenses due to Restatement, etc. |
|
800 |
|
|
21,920 |
|
Net
income from discontinued operations, net of taxes |
|
(18,288 |
) |
|
(89,562 |
) |
Adjusted EBITDA
(non-GAAP) |
|
$ |
15,436 |
|
|
$ |
31,018 |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES(In thousands, except per share
data)(Unaudited)
|
|
Three Months Ended September 30, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Net (loss)
income attributable to Synchronoss |
|
$ |
(54,529 |
) |
|
$ |
(35,088 |
) |
Add /
(Less): |
|
|
|
|
Restructuring |
|
4,539 |
|
|
2,312 |
|
Depreciation and amortization |
|
23,658 |
|
|
23,459 |
|
Interest
income |
|
(203 |
) |
|
(3,274 |
) |
Interest
Expense |
|
1,370 |
|
|
25,555 |
|
Other
Income (expense), net |
|
13,439 |
|
|
256 |
|
Equity
method investment income (loss), net |
|
(283 |
) |
|
(645 |
) |
Benefit
for income taxes |
|
(2,308 |
) |
|
(12,825 |
) |
Net
(loss) income attributable to noncontrolling interests |
|
422 |
|
|
(1,276 |
) |
Preferred
dividend |
|
7,463 |
|
|
— |
|
Stock-based compensation expense |
|
7,216 |
|
|
3,678 |
|
Acquisition costs |
|
38 |
|
|
30 |
|
Integration |
|
— |
|
|
1,569 |
|
One-Time
Expenses due to Restatement, etc. |
|
3,638 |
|
|
9,438 |
|
Net
income from discontinued operations, net of taxes |
|
— |
|
|
(8,842 |
) |
Adjusted EBITDA
(non-GAAP) |
|
$ |
4,460 |
|
|
$ |
4,347 |
|
|
|
|
|
|
|
|
|
|
SYNCHRONOSS TECHNOLOGIES,
INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(In thousands, except per share
data)(Unaudited)
|
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
Net Cash (used
in) provided by operating activities |
|
$ |
(31,369 |
) |
|
$ |
(18,248 |
) |
Add / (Less): |
|
|
|
|
Software
Capitalization |
|
(14,372 |
) |
|
(9,119 |
) |
Fixed
Assets |
|
(11,656 |
) |
|
(12,151 |
) |
Free
Cashflow |
|
$ |
(57,397 |
) |
|
$ |
(39,518 |
) |
Add:
One-Time Restatement Expenses |
|
20,408 |
|
|
37,197 |
|
Adjusted Free
Cashflow |
|
$ |
(36,989 |
) |
|
$ |
(2,321 |
) |
|
|
Three Months Ended December 31, |
|
|
2018 |
|
2017 |
Net Cash (used
in) provided by operating activities |
|
$ |
29,293 |
|
|
$ |
(17,155 |
) |
Add / (Less): |
|
|
|
|
Software
Capitalization |
|
(3,360 |
) |
|
(1,271 |
) |
Fixed
Assets |
|
(3,091 |
) |
|
(1,836 |
) |
Free
Cashflow |
|
$ |
22,842 |
|
|
$ |
(20,262 |
) |
Add:
One-Time Restatement Expenses |
|
800 |
|
|
21,920 |
|
Adjusted Free
Cashflow |
|
$ |
23,642 |
|
|
$ |
1,658 |
|
|
|
|
|
|
|
|
|
|
SYNCHRONOSS TECHNOLOGIES,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)(Unaudited)
|
Twelve Months Ended December 31, |
|
2018 |
|
2017 |
|
2016 |
|
|
|
|
|
|
Operating
activities: |
|
|
|
|
|
Net loss
from continuing operations |
$ |
(245,280 |
) |
|
$ |
(194,224 |
) |
|
$ |
(93,869 |
) |
Net
income from discontinued operations |
— |
|
|
75,495 |
|
|
90,560 |
|
Gain
(loss) on sale of discontinued operations, net of tax |
18,288 |
|
|
(122,842 |
) |
|
(113,129 |
) |
|
|
|
|
|
|
Adjustments to
reconcile Net Loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization expense |
97,092 |
|
|
93,924 |
|
|
94,911 |
|
Goodwill
impairment |
9,100 |
|
|
— |
|
|
— |
|
Impairment of long-lived assets and capitalized software |
11,462 |
|
|
960 |
|
|
11,055 |
|
Change in
fair value of financial instruments |
(3,849 |
) |
|
4,367 |
|
|
— |
|
Amortization of debt issuance costs |
1,294 |
|
|
12,771 |
|
|
1,607 |
|
(Gain)
loss on extinguishment of debt |
(1,760 |
) |
|
29,413 |
|
|
— |
|
Accrued
PIK interest |
(7,037 |
) |
|
(12,090 |
) |
|
(34 |
) |
Allowance
for loan losses |
84,314 |
|
|
14,562 |
|
|
— |
|
(Earnings) loss from equity method investments |
28,600 |
|
|
9,125 |
|
|
— |
|
Loss
(Gain) on disposals |
277 |
|
|
(4,947 |
) |
|
(122 |
) |
Discontinued operations non-cash and working capital
adjustments |
— |
|
|
48,647 |
|
|
371 |
|
Amortization of bond premium |
107 |
|
|
244 |
|
|
1,416 |
|
Deferred
income taxes |
(12,350 |
) |
|
19,243 |
|
|
17,148 |
|
Non-cash
interest on leased facility |
— |
|
|
1,203 |
|
|
1,392 |
|
Stock-based compensation |
27,604 |
|
|
22,495 |
|
|
34,178 |
|
Contingent consideration obligation |
— |
|
|
(2,711 |
) |
|
1,194 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
Accounts
receivable, net of allowance for doubtful accounts |
(21,521 |
) |
|
29,283 |
|
|
(13,650 |
) |
Prepaid
expenses and other current assets |
(5,315 |
) |
|
(5,513 |
) |
|
31,648 |
|
Other
assets |
973 |
|
|
3,237 |
|
|
8,880 |
|
Accounts
payable |
6,846 |
|
|
(9,098 |
) |
|
(10,089 |
) |
Accrued
expenses |
(18,068 |
) |
|
(4,949 |
) |
|
(7,523 |
) |
Other
liabilities |
(4,675 |
) |
|
(3,337 |
) |
|
(6,558 |
) |
Deferred
revenues |
2,529 |
|
|
(23,506 |
) |
|
55,173 |
|
Net cash used in
operating activities |
(31,369 |
) |
|
(18,248 |
) |
|
104,559 |
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
Purchases
of fixed assets |
(11,656 |
) |
|
(12,151 |
) |
|
(42,570 |
) |
Purchases
of intangible assets and capitalized software |
(14,372 |
) |
|
(9,119 |
) |
|
(7,677 |
) |
Proceeds
from the sale of SpeechCycle |
— |
|
|
13,500 |
|
|
— |
|
Purchases
of marketable securities available for sale |
(36,789 |
) |
|
(219 |
) |
|
(13,445 |
) |
Maturity
of marketable securities available for sale |
4,865 |
|
|
12,371 |
|
|
82,904 |
|
Proceeds
from the sale of discontinued operations |
— |
|
|
928,171 |
|
|
27,335 |
|
Equity
investment distributions |
404 |
|
|
608 |
|
|
— |
|
Investing
in discontinued operations |
— |
|
|
(13,721 |
) |
|
— |
|
Investment in note receivable |
— |
|
|
(6,187 |
) |
|
— |
|
Business
acquired, net of cash |
(9,734 |
) |
|
(815,008 |
) |
|
(86,322 |
) |
Net cash used in
investing activities |
(67,282 |
) |
|
98,245 |
|
|
(39,775 |
) |
Financing
activities: |
|
|
|
|
|
Proceeds
from the exercise of stock options |
— |
|
|
2,584 |
|
|
13,633 |
|
Taxes
paid on withholding shares |
— |
|
|
(442 |
) |
|
— |
|
Payments
on contingent consideration |
— |
|
|
(122 |
) |
|
— |
|
Debt
issuance costs related to the Credit Facility |
— |
|
|
(3,692 |
) |
|
(1,346 |
) |
Debt
issuance cost related to amendment |
— |
|
|
(16,776 |
) |
|
— |
|
Debt
issuance costs related to long-term debt |
— |
|
|
(19,887 |
) |
|
— |
|
Extinguishment of outstanding Convertible Senior Notes |
(113,696 |
) |
|
— |
|
|
— |
|
Proceeds
from issuance of long-term debt |
— |
|
|
900,000 |
|
|
— |
|
Repayment
of long-term debt |
— |
|
|
(900,000 |
) |
|
— |
|
Borrowings on revolving line of credit |
— |
|
|
— |
|
|
144,000 |
|
Repayment
of revolving line of credit |
— |
|
|
(29,000 |
) |
|
(115,000 |
) |
Excess
tax benefits from stock option exercises |
— |
|
|
17 |
|
|
— |
|
Repurchase of common stock |
— |
|
|
— |
|
|
(40,025 |
) |
Proceeds
from the sale of treasury stock in connection with an employee
stock purchase plan |
— |
|
|
1,047 |
|
|
2,183 |
|
Proceeds
from issuance of preferred stock |
86,220 |
|
|
— |
|
|
— |
|
Preferred
dividend payment |
(7,075 |
) |
|
— |
|
|
— |
|
Proceeds
from mandatorily redeemable financial instruments |
— |
|
|
33,592 |
|
|
— |
|
Payments
on capital obligations |
(1,334 |
) |
|
(2,985 |
) |
|
(3,815 |
) |
Net cash provided by
financing activities |
(35,885 |
) |
|
(35,664 |
) |
|
(370 |
) |
Effect of
exchange rate changes on cash |
(1,729 |
) |
|
(9,641 |
) |
|
(853 |
) |
Net decrease in cash,
restricted cash and cash equivalents |
(136,265 |
) |
|
34,692 |
|
|
63,561 |
|
Cash,
restricted cash and cash equivalents, beginning of
period |
246,125 |
|
|
211,433 |
|
|
147,872 |
|
Cash,
restricted cash and cash equivalents, end of period |
$ |
109,860 |
|
|
$ |
246,125 |
|
|
$ |
211,433 |
|
Synchronoss Technologies (NASDAQ:SNCR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Synchronoss Technologies (NASDAQ:SNCR)
Historical Stock Chart
From Apr 2023 to Apr 2024