Performant Financial Corporation (Nasdaq:PFMT), a leading provider
of technology-enabled recovery and related analytics services in
the United States, today reported the following financial results
for its fourth quarter and full year ended December 31, 2017:
Fourth Quarter Financial Highlights
- Total revenues of $33.3 million, compared to $33.8 million in
the prior year period, down 1.5%
- Net income of $0.5 million or $0.01 per diluted share, compared
to net loss of $12.3 million, or $(0.24) per diluted share, in the
prior year period
- Adjusted EBITDA of $2.0 million, compared to $4.9 million in
the prior year period
- Adjusted net income of $1.3 million, or $0.02 per diluted
share, compared to adjusted net loss of $1.5 million or $(0.03) per
diluted share, in the prior year period
Full Year 2017 Financial Highlights
- Total revenues of $132.0 million, compared to $141.4 million in
2016, 6.6%
- Net loss of $12.7 million, or $(0.25) per diluted share,
compared to net loss of $11.5 million, or $(0.23) per diluted
share, in 2016
- Adjusted EBITDA of $9.2 million, compared to $25.9 million in
2016, Adjusted net loss of $7.5 million, or $(0.15) per diluted
share, compared to adjusted net income of $4.1 million, or $0.08
per diluted share, in 2016
Fourth Quarter 2017 Results
Student lending revenues in the fourth quarter were $22.5
million, a decrease of 17.9% from $27.4 million in the prior year
period. The Guaranty Agencies and U.S. Department of Education
accounted for student lending revenues of $21.3 million and $1.2
million, respectively, in the fourth quarter of 2017, compared to
$23.7 million and $3.7 million the prior year period. Student
loan placement volume (defined below) during the quarter totaled
$0.5 billion, compared to $0.6 billion in the prior year period. On
January 11, 2018, the Department of Education announced that the
Company was awarded one of two unrestricted contracts to provide
debt collection services on defaulted federal student loans.
Healthcare revenues in the fourth quarter were $3.6 million, up
from $2.3 million in the prior year period. Medicare audit recovery
revenues were $0.5 million in the fourth quarter, a decrease of
$0.1 million from the prior year period. The Company began work on
the CMS Recovery Audit programs in Regions 1 and 5 during Q2 of
2017 and while the Company has begun to recognize some revenue from
these contracts, claim volumes for the RAC program remain at low
levels due to document request limits. Commercial healthcare
clients contributed revenues of $3.2 million in the fourth quarter
of 2017, an increase of $1.4 million from the prior year
period.
Other revenues in the fourth quarter were $7.2 million, up from
$4.1 million in the prior year period. This increase is due to the
growth in our customer care contract work.
Net income for the fourth quarter of 2017 was $0.5 million,
or $0.01 per share on a fully diluted basis, compared to net
loss of $12.3 million or $(0.24) per share on a fully
diluted basis in the prior year period. Adjusted EBITDA for
the fourth quarter of 2017 was $2.0 million as compared to $4.9
million in the prior year period. Adjusted net income for the
fourth quarter of 2017 was $1.3 million, resulting in $0.02
per share on a fully diluted basis. This compares to adjusted net
loss of $1.5 million or $(0.03) per fully diluted
share in the prior year period.
As of December 31, 2017, the Company had cash, cash equivalents
and restricted cash of approximately $23.5 million.
Full Year 2017 Results
Revenues for the full year ended December 31, 2017
were $132.0 million, a decrease of 6.6% compared
to $141.4 million in 2016. Student lending revenues
declined 14.0% to $94.3 million from $109.6 million in
2016. Student Loan Placement Volume totaled $2.8 billion as
compared to $3.2 billion in 2016. Healthcare revenues declined
12.3% to $10.0 million from $11.4 million in the prior
year. Other revenues increased 35.8% to $27.7 million from
$20.4 million in 2016.
Net loss for the full year was $12.7 million, or $(0.25)
per share on a fully diluted basis, compared to net loss of
$11.5 million or $(0.23) per share on a fully diluted
basis in 2016. Adjusted EBITDA for 2017 was $9.2 million as
compared to $25.9 million in 2016. Adjusted net loss
for 2017 was $7.5 million, resulting in adjusted earnings per
share of $(0.15) on a fully diluted basis. This compares to
adjusted net income of $4.1 million or $0.08 per
fully diluted share in 2016.
Business Outlook
“Looking ahead to 2018, we have several large opportunities,
although these opportunities will require investment during 2018.
These opportunities include the new Department of Education
contract, which is currently in protest process, the Medicare as
Secondary Payer Commercial Repayment Center contract, and our two
new Medicare Recovery Audit Contracts with CMS, for Regions 1 and
5, which are still in their early contract stage. We expect that
these contracts that we are implementing in 2018 will have strong
financial contribution as we look forward from 2018, but
implementation expenses during 2018 will bring down margins. With
that in mind, we are providing full year 2018 revenue and adjusted
EBITDA guidance of $123 to $150 million and $2 to $6 million,
respectively. This guidance does not include the new Department of
Education contract which would require additional investment in
2018, and the balance sheet impact of closing out our old Region A
CMS contract,” concluded Im.
Note Regarding Use of Non-GAAP Financial
Measures
In this press release, to supplement our consolidated financial
statements, the Company presents adjusted EBITDA and adjusted net
income. These measures are not in accordance with generally
accepted accounting principles (GAAP) and accordingly
reconciliations of adjusted EBITDA and adjusted net income to net
income determined in accordance with GAAP are included in the
“Reconciliation of Non-GAAP Results” table at the end of this press
release. We have included adjusted EBITDA and adjusted net income
in this press release because they are key measures used by our
management and board of directors to understand and evaluate our
core operating performance and trends and to prepare and approve
our annual budget. Accordingly, we believe that adjusted EBITDA and
adjusted net income provide useful information to investors and
analysts in understanding and evaluating our operating results in
the same manner as our management and board of directors. Our use
of adjusted EBITDA and adjusted net income has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for analysis of our results as reported under GAAP. In
particular, many of the adjustments to our GAAP financial measures
reflect the exclusion of items, specifically interest, tax and
depreciation and amortization expenses, equity-based compensation
expense and certain other non-operating expenses, that are
recurring and will be reflected in our financial results for the
foreseeable future. In addition, these measures may be calculated
differently from similarly titled non-GAAP financial measures used
by other companies, limiting their usefulness for comparison
purposes.
Terms used in this Press Release
Student Loan Placement Volume refers to the dollar volume of
defaulted student loans first placed with us during the specified
period by public and private clients for recovery. Placement Volume
allows us to measure and track trends in the amount of inventory
our clients in the student lending market are placing with us
during any period. The revenue associated with the recovery of a
portion of these loans may be recognized in subsequent accounting
periods, which assists management in estimating future revenues and
in allocating resources necessary to address current Placement
Volumes.
Earnings Conference Call
The Company will hold a conference call to discuss its fourth
quarter and full year 2017 results today at 5:00 p.m.
Eastern. A live webcast of the call may be accessed on the
Investor Relations section of the Company’s website at
investors.performantcorp.com. The conference call is also available
by dialing 877-705-6003 (domestic) or 201-493-6725
(international).
A replay of the call will be available on the Company's website
or by dialing 844-512-2921 (domestic) or 412-317-6671
(international) and entering the passcode 13677044. The telephonic
replay will be available approximately three hours after the call,
through March 13, 2018.
About Performant Financial Corporation
Performant helps government and commercial organizations enhance
revenue and contain costs by preventing, identifying and recovering
waste, improper payments and defaulted assets. Performant is a
leading provider of these services in several industries, including
healthcare, student loans and government. Performant has been
providing recovery audit services for more than nine years to both
commercial and government clients, including serving as a Recovery
Auditor for the Centers for Medicare and Medicaid Services.
Powered by a proprietary analytic platform and workflow
technology, Performant also provides professional services related
to the recovery effort, including reporting capabilities, support
services, customer care and stakeholder training programs meant to
mitigate future instances of improper payments. Founded in 1976,
Performant is headquartered in Livermore, California.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding our outlook for revenues,
net income and adjusted EBITDA in 2018. These forward-looking
statements are based on current expectations, estimates,
assumptions and projections that are subject to change and actual
results may differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially
include, but are not limited to, the high level of revenue
concentration among the Company's largest customers and any
termination in the Company’s relationship with any of our
significant clients would result in a material decline in our
revenues, that many of the Company's customer contracts are subject
to periodic renewal, are not exclusive, do not provide for
committed business volumes and may be changed or terminated
unilaterally and on short notice, that there can be no assurance
that the Company is able to retain its new contract with the
Department of Education as the result of the protests filed by
unsuccessful bidders, that continuing limitations on the scope of
our audit activity under our RAC contracts have significantly
reduced our revenue opportunities with this client, that the
Company faces significant competition in all of its markets, that
the U.S. federal government accounts for a significant portion of
the Company's revenues, that future legislative and regulatory
changes may have significant effects on the Company's business,
that failure of the Company's or third parties' operating systems
and technology infrastructure could disrupt the operation of the
Company's business and the threat of breach of the Company's
security measures or failure or unauthorized access to confidential
data that the Company possesses. More information on potential
factors that could affect the Company's financial condition and
operating results is included from time to time 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, 2016 and
subsequently filed reports on Forms 10-Q and 8-K. The
forward-looking statements are made as of the date of this press
release and the Company does not undertake to update any
forward-looking statements to conform these statements to actual
results or revised expectations.
Contact InformationRichard ZubekInvestor
Relations925-960-4988investors@performantcorp.com
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIES |
Consolidated Balance Sheets |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
Assets |
December 31, 2017 |
|
December 31, 2016 |
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
21,731 |
|
|
$ |
32,982 |
|
Restricted cash |
1,788 |
|
|
7,502 |
|
Trade
accounts receivable, net of allowance for doubtful accounts of $35
and $224, respectively |
12,494 |
|
|
11,484 |
|
Deferred
income taxes |
— |
|
|
5,331 |
|
Prepaid
expenses and other current assets |
12,678 |
|
|
12,686 |
|
Income
tax receivable |
6,839 |
|
|
2,027 |
|
Total
current assets |
55,530 |
|
|
72,012 |
|
Property, equipment,
and leasehold improvements, net |
20,944 |
|
|
23,735 |
|
Identifiable intangible
assets, net |
4,864 |
|
|
5,895 |
|
Goodwill |
81,572 |
|
|
82,522 |
|
Deferred income
taxes |
468 |
|
|
— |
|
Other assets |
1,058 |
|
|
914 |
|
Total
assets |
$ |
164,436 |
|
|
$ |
185,078 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Current
maturities of notes payable, net of unamortized debt issuance costs
of $171 and $1,294, respectively |
$ |
2,029 |
|
|
$ |
9,738 |
|
Accrued
salaries and benefits |
4,569 |
|
|
4,315 |
|
Accounts
payable |
1,518 |
|
|
628 |
|
Other
current liabilities |
3,347 |
|
|
4,409 |
|
Estimated
liability for appeals |
18,817 |
|
|
19,305 |
|
Net
payable to client |
12,800 |
|
|
13,074 |
|
Total
current liabilities |
43,080 |
|
|
51,469 |
|
Notes payable, net of
current portion and unamortized debt issuance costs of $3,245 and
$272, respectively |
38,555 |
|
|
43,878 |
|
Deferred income
taxes |
— |
|
|
1,130 |
|
Other liabilities |
2,476 |
|
|
2,356 |
|
Total
liabilities |
84,111 |
|
|
98,833 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
Common
stock, $0.0001 par value. Authorized, 500,000 shares at
December 31, 2017 and 2016, respectively; issued and
outstanding, 51,085 and 50,234 shares at December 31, 2017 and
2016, respectively |
5 |
|
|
5 |
|
Additional paid-in capital |
72,459 |
|
|
65,650 |
|
Retained
earnings |
7,861 |
|
|
20,590 |
|
Total
stockholders’ equity |
80,325 |
|
|
86,245 |
|
Total
liabilities and stockholders’ equity |
$ |
164,436 |
|
|
$ |
185,078 |
|
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIES |
Consolidated Statements of Operations |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenues |
$ |
33,289 |
|
|
$ |
33,812 |
|
|
$ |
132,049 |
|
|
$ |
141,360 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Salaries
and benefits |
20,551 |
|
|
18,756 |
|
|
82,191 |
|
|
78,863 |
|
Other
operating expenses |
13,925 |
|
|
14,584 |
|
|
55,863 |
|
|
54,985 |
|
Impairment of goodwill and intangible assets |
— |
|
|
15,438 |
|
|
1,081 |
|
|
15,438 |
|
Total
operating expenses |
34,476 |
|
|
48,778 |
|
|
139,135 |
|
|
149,286 |
|
Loss from
operations |
(1,187 |
) |
|
(14,966 |
) |
|
(7,086 |
) |
|
(7,926 |
) |
Interest expense |
(1,289 |
) |
|
(1,761 |
) |
|
(6,972 |
) |
|
(7,897 |
) |
Interest income |
4 |
|
|
— |
|
|
4 |
|
|
— |
|
Loss
before benefit from income taxes |
(2,472 |
) |
|
(16,727 |
) |
|
(14,054 |
) |
|
(15,823 |
) |
Benefit from income
taxes |
(2,993 |
) |
|
(4,432 |
) |
|
(1,325 |
) |
|
(4,370 |
) |
Net
income (loss) |
$ |
521 |
|
|
$ |
(12,295 |
) |
|
$ |
(12,729 |
) |
|
$ |
(11,453 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per
share |
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
(0.24 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.23 |
) |
Diluted |
$ |
0.01 |
|
|
$ |
(0.24 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.23 |
) |
Weighted average
shares |
|
|
|
|
|
|
|
Basic |
51,004 |
|
|
50,230 |
|
|
50,688 |
|
|
50,038 |
|
Diluted |
51,599 |
|
|
50,230 |
|
|
50,688 |
|
|
50,038 |
|
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIES |
|
|
Consolidated Statements of Cash Flows |
|
|
(In thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
|
2017 |
|
2016 |
|
|
Cash flows from
operating activities: |
|
|
|
|
|
Net
loss |
$ |
(12,729 |
) |
|
$ |
(11,453 |
) |
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
Loss on
disposal of assets |
67 |
|
|
12 |
|
|
|
Impairment of goodwill and intangible assets |
1,081 |
|
|
15,438 |
|
|
|
Depreciation and amortization |
10,888 |
|
|
13,380 |
|
|
|
Deferred
income taxes |
3,733 |
|
|
(6,912 |
) |
|
|
Stock-based compensation |
3,740 |
|
|
4,713 |
|
|
|
Interest
expense from debt issuance costs |
1,336 |
|
|
1,264 |
|
|
|
Write-off
of unamortized debt issuance costs |
1,049 |
|
|
468 |
|
|
|
Interest
expense paid in kind |
331 |
|
|
— |
|
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
Trade
accounts receivable |
(1,010 |
) |
|
6,481 |
|
|
|
Prepaid
expenses and other current assets |
8 |
|
|
247 |
|
|
|
Income
tax receivable |
(4,812 |
) |
|
(2,027 |
) |
|
|
Other
assets |
(148 |
) |
|
(740 |
) |
|
|
Accrued
salaries and benefits |
254 |
|
|
(446 |
) |
|
|
Accounts
payable |
890 |
|
|
(301 |
) |
|
|
Other
current liabilities |
(1,062 |
) |
|
(656 |
) |
|
|
Income
taxes payable |
— |
|
|
(895 |
) |
|
|
Estimated
liability for appeals |
(488 |
) |
|
187 |
|
|
|
Net
payable to client |
(274 |
) |
|
(1,326 |
) |
|
|
Other
liabilities |
120 |
|
|
350 |
|
|
|
Net cash
provided by operating activities |
2,974 |
|
|
17,784 |
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Proceeds
from sale of property, equipment, and leasehold improvements |
— |
|
|
— |
|
|
|
Purchase
of property, equipment, and leasehold improvements |
(7,259 |
) |
|
(7,866 |
) |
|
|
Net cash
used in investing activities |
(7,259 |
) |
|
(7,866 |
) |
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Repayment
of notes payable |
(55,513 |
) |
|
(39,076 |
) |
|
|
Debt
issuance costs paid |
(934 |
) |
|
(1,181 |
) |
|
|
Taxes
paid related to net share settlement of stock awards |
(385 |
) |
|
(266 |
) |
|
|
Proceeds
from exercise of stock options |
155 |
|
|
337 |
|
|
|
Borrowings from notes payable |
44,000 |
|
|
— |
|
|
|
Income
tax benefit from employee stock awards |
— |
|
|
103 |
|
|
|
Payment
of purchase obligation |
— |
|
|
(554 |
) |
|
|
Net cash
used in financing activities |
(12,677 |
) |
|
(40,637 |
) |
|
|
Effect of
foreign currency exchange rate changes on cash |
(3 |
) |
|
21 |
|
|
|
Net
decrease in cash, cash equivalents and restricted cash |
(16,965 |
) |
|
(30,698 |
) |
|
|
Cash, cash equivalents
and restricted cash at beginning of year |
40,484 |
|
|
71,182 |
|
|
|
Cash, cash equivalents
and restricted cash at end of year |
$ |
23,519 |
|
|
$ |
40,484 |
|
|
|
Non-cash
financing activities: |
|
|
|
|
|
Recognition of warrant issued in debt financing |
$ |
3,302 |
|
|
$ |
— |
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
Cash paid
(received) for income taxes |
$ |
(353 |
) |
|
$ |
5,273 |
|
|
|
Cash paid
for interest |
$ |
4,284 |
|
|
$ |
6,156 |
|
|
|
PERFORMANT FINANCIAL CORPORATION AND
SUBSIDIARIES |
Reconciliation of Non-GAAP Results |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Adjusted
Earnings Per Diluted Share: |
|
|
|
|
|
|
|
Net loss |
$ |
521 |
|
|
$ |
(12,295 |
) |
|
$ |
(12,729 |
) |
|
$ |
(11,453 |
) |
Plus: Adjusted items
per reconciliation of adjusted net income |
760 |
|
|
10,771 |
|
|
5,208 |
|
|
15,569 |
|
Adjusted Net Income
(Loss) |
$ |
1,281 |
|
|
$ |
(1,524 |
) |
|
$ |
(7,521 |
) |
|
$ |
4,116 |
|
|
|
|
|
|
|
|
|
Adjusted
Earnings Per Diluted Share |
0.02 |
|
|
(0.03 |
) |
|
(0.15 |
) |
|
0.08 |
|
Diluted average shares
outstanding (7) |
51,599 |
|
|
50,230 |
|
|
50,688 |
|
|
50,674 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Adjusted
EBITDA: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
521 |
|
|
$ |
(12,295 |
) |
|
$ |
(12,729 |
) |
|
$ |
(11,453 |
) |
Provision for (benefit
from) income taxes |
(2,993 |
) |
|
(4,432 |
) |
|
(1,325 |
) |
|
(4,370 |
) |
Interest expense |
1,289 |
|
|
1,761 |
|
|
6,972 |
|
|
7,897 |
|
Interest income |
(4 |
) |
|
— |
|
|
(4 |
) |
|
— |
|
Transaction expenses
(1) |
— |
|
|
— |
|
|
576 |
|
|
— |
|
Restructuring and other
expenses (4) |
— |
|
|
20 |
|
|
— |
|
|
329 |
|
Depreciation and
amortization |
2,507 |
|
|
3,282 |
|
|
10,888 |
|
|
13,380 |
|
Impairment of goodwill
and customer relationship (6) |
— |
|
|
15,438 |
|
|
1,081 |
|
|
15,438 |
|
Stock based
compensation |
713 |
|
|
1,167 |
|
|
3,740 |
|
|
4,713 |
|
Adjusted
EBITDA |
$ |
2,033 |
|
|
$ |
4,941 |
|
|
$ |
9,199 |
|
|
$ |
25,934 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Adjusted Net
Income (Loss): |
|
|
|
|
|
|
|
Net income (loss) |
$ |
521 |
|
|
$ |
(12,295 |
) |
|
$ |
(12,729 |
) |
|
$ |
(11,453 |
) |
Transaction expenses
(1) |
— |
|
|
— |
|
|
576 |
|
|
— |
|
Stock based
compensation |
713 |
|
|
1,167 |
|
|
3,740 |
|
|
4,713 |
|
Amortization of
intangibles (2) |
207 |
|
|
936 |
|
|
898 |
|
|
3,736 |
|
Impairment of goodwill
and customer relationship (6) |
— |
|
|
15,438 |
|
|
1,081 |
|
|
15,438 |
|
Deferred financing
amortization costs (3) |
346 |
|
|
390 |
|
|
2,385 |
|
|
1,732 |
|
Restructuring and other
expenses (4) |
— |
|
|
20 |
|
|
— |
|
|
329 |
|
Tax adjustments
(5) |
(506 |
) |
|
(7,180 |
) |
|
(3,472 |
) |
|
(10,379 |
) |
Adjusted Net Income
(Loss) |
$ |
1,281 |
|
|
$ |
(1,524 |
) |
|
$ |
(7,521 |
) |
|
$ |
4,116 |
|
|
|
|
|
|
|
|
|
We are providing the following preliminary estimates of our
financial results for the year ended December 31, 2018:
|
|
Year Ended |
|
|
December 31, 2017 |
|
December 31, 2018 |
|
|
Actual |
|
Estimate |
Adjusted
EBITDA: |
|
|
|
|
|
Net income (loss) |
|
$ |
(12,729 |
) |
|
435 to
1,486 |
|
Provision for (benefit
from) income taxes |
|
(1,325 |
) |
|
165 to
564 |
|
Interest expense |
|
6,972 |
|
|
4,200
to 4,900 |
|
Interest income |
|
(4 |
) |
|
— |
|
Transaction expenses
(1) |
|
576 |
|
|
— |
|
Restructuring and other
expenses (4) |
|
— |
|
|
— |
|
Depreciation and
amortization |
|
10,888 |
|
|
9,800
to 10,850 |
|
Impairment of goodwill
and customer relationship (6) |
|
1,081 |
|
|
— |
|
CMS Region A contract
termination (8) |
|
— |
|
|
(14,400 |
) |
Stock-based
compensation |
|
3,740 |
|
|
1,800
to 2,600 |
|
Adjusted
EBITDA |
|
$ |
9,199 |
|
|
2,000 to 6,000 |
|
(1) Represents costs
and expenses related to the refinancing of our existing
indebtedness. |
(2) Represents
amortization of capitalized expenses related to the acquisition of
Performant by an affiliate of Parthenon Capital Partners in 2004,
and also an acquisition in the first quarter of 2012 to enhance our
analytics capabilities. |
(3) Represents
amortization of capitalized financing costs related to our New
Credit Agreement, and the write-off of deferred financing costs
related to our Prior Credit Agreement in August 2017 and
amortization of capitalized financing costs related to financing
conducted in 2012 and costs related to the amendment of the terms
of the note payable in 2014 and 2016. |
(4) Represents
restructuring costs and severance and termination expenses incurred
in connection with termination of employees and consultants. |
(5) Represents tax
adjustments assuming a marginal tax rate of 40% for 2017, and 27.5%
for 2018 estimate. |
(6) Represents goodwill
and impairment charges related to our Performant Europe Ltd.
subsidiary in 2017, and an impairment expense was recognized
relating to the Department of Education customer relationship in
2016. |
(7) While net income
(loss) for the twelve months ended December 31, 2016 reflects a net
loss of $(11,453), the computation of adjusted net income results
in adjusted net income of $4,116. Therefore, the calculation
of the adjusted earnings per diluted share for the twelve months
ended December 31, 2016 includes dilutive common share equivalents
of 636 added to the basic weighted average shares of 50,038. |
(8) Estimated Q1 2018
impact of CMS contract wind-down. |
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