Glowpoint Announces First Quarter 2019 Results
May 15 2019 - 4:30PM
Glowpoint, Inc. (NYSE American: GLOW) (“Glowpoint” or the
“Company”), a managed service provider of video collaboration and
network applications, today announced financial results for the
first quarter ended March 31, 2019.
First Quarter Financial Results:
- Cash of $1.6 million, working capital of $2.3 million and no
debt as of March 31, 2019.
- Revenue of $2.6 million, net loss of $0.6 million, and adjusted
EBITDA (“AEBITDA”) of negative $0.1 million. AEBITDA is a
non-GAAP financial measure. See “Non-GAAP Financial Information”
below for additional information regarding this non-GAAP financial
measure, and “GAAP to Non-GAAP Reconciliation” later in this
release for a reconciliation of this non-GAAP financial measure to
net loss.
- Stockholders’ equity of $6.2 million as of March 31, 2019.
Recent Highlights:
- As previously announced, in April 2019 the Company regained
full compliance with the NYSE American’s continued listing
standards.
- As previously announced, in April 2019 the Company and
SharedLabs, Inc. mutually agreed to the terminate the previously
announced Merger Agreement. SharedLabs has agreed to work
with the Company in good faith to reach a resolution with respect
to the Company’s rights in connection with the termination of the
Merger Agreement, including the payment by SharedLabs of fees and
expenses in connection therewith. To the extent it is necessary,
the Company expects to utilize available legal remedies in order to
pursue the payment by SharedLabs of any such amounts.
“We are pleased to have recently regained full compliance with
the NYSE American’s continued listing standards. We maintain
a clean balance sheet with $1.6 million in cash and no debt as of
March 31, 2019. We remain focused on implementing certain
infrastructure cost reductions in our efforts to improve adjusted
EBITDA and operating cash flow. We are encouraged by recent
capital markets activity and heightened market awareness in both
video and unified communications and intend to use our expertise,
along with an excellent reputation for delivering managed services
to the Enterprise, to explore potential opportunities for growth in
this sector. We are actively exploring potential merger and
acquisition and/or business development initiatives and are
confident that we can leverage our strong reputation with our large
enterprise customers, our investments in R&D during the past
two years and our existing intellectual property to increase
shareholder value,” said Peter Holst, President and CEO of
Glowpoint.
Glowpoint’s results from operations and financial condition are
more fully discussed in our Quarterly Report on Form 10-Q for the
three months ended March 31, 2019 on file with the Securities and
Exchange Commission (the “SEC”). Investors are encouraged to
carefully review the Company’s Form 10-Q for a complete analysis of
its results from operations and financial condition.
About GlowpointGlowpoint, Inc. (NYSE American:
GLOW) is a managed service provider of video collaboration and
network applications. Our services are designed to provide a
comprehensive suite of automated and concierge applications to
simplify the user experience and expedite the adoption of video as
the primary means of collaboration. Our customers include
Fortune 1000 companies, along with small and medium sized
enterprises in a variety of industries. To learn more please
visit www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”), a non-GAAP financial measure, is
defined as net loss before depreciation and amortization, income
tax expense, stock-based compensation, impairment charges, merger
expenses and interest and other expense, net. AEBITDA is not
intended to replace operating loss, net loss, cash flow or other
measures of financial performance reported in accordance with
generally accepted accounting principles (GAAP). Rather,
AEBITDA is an important measure used by management to assess the
operating performance of the Company and is used in determining
achievement of performance-based stock awards. AEBITDA as
defined here may not be comparable to similarly titled measures
reported by other companies due to differences in accounting
policies. Therefore, AEBITDA should be considered in conjunction
with net loss and other performance measures prepared in accordance
with GAAP, such as operating loss or cash flow provided by (used
in) operating activities, and should not be considered in isolation
or as a substitute for GAAP measures, such as net loss, operating
loss or any other GAAP measure of liquidity or financial
performance. A reconciliation of AEBITDA to net loss is
shown in the attached schedules.
Forward looking and cautionary statementsThis
press release and any oral statements made regarding the subject of
this release contain forward-looking statements as defined under
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and are
made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of historical facts, that address activities that
Glowpoint assumes, plans, expects, believes, intends, projects,
estimates or anticipates (and other similar expressions) will,
should or may occur in the future are forward-looking
statements. Glowpoint’s actual results may differ materially
from its expectations, estimates and projections, and consequently
you should not rely on these forward-looking statements as
predictions of future events. Without limiting the generality of
the foregoing, forward-looking statements contained in this press
release include statements regarding the Company’s financial
performance, the effect of the termination of the Merger Agreement,
the pursuit by Glowpoint for the payment of damages by SharedLabs
as a result thereof, the Company’s future compliance with the NYSE
American’s continued listing standards, and opportunities for the
Company’s future growth. The forward-looking statements are based
on management’s current belief, based on currently available
information, as to the outcome and timing of future events, and
involve factors, risks, and uncertainties that may cause actual
results in future periods to differ materially from such
statements. A list and description of these and other risk
factors can be found in the Company’s Annual Report on Form 10-K
for the year ending December 31, 2018 and in other filings made by
the Company with the SEC from time to time, including the Company’s
Quarterly Report on Form 10-Q for the three months ended March 31,
2019. Any of these factors could cause Glowpoint’s actual
results and plans to differ materially from those in the
forward-looking statements. Therefore, Glowpoint can give no
assurance that its future results will be as estimated.
Glowpoint does not intend to, and disclaims any obligation to,
correct, update or revise any information contained herein.
INVESTOR CONTACT: Investor Relations Glowpoint,
Inc. +1 303-640-3840 investorrelations@glowpoint.com
www.glowpoint.com
GLOWPOINT, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS(In thousands, except
par value, stated value and shares)
|
March 31, 2019 (unaudited) |
|
December 31, 2018 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
1,589 |
|
|
$ |
2,007 |
|
Accounts receivable, net |
1,442 |
|
|
1,371 |
|
Prepaid expenses and other current assets |
619 |
|
|
547 |
|
Total current assets |
3,650 |
|
|
3,925 |
|
Property and equipment,
net |
610 |
|
|
728 |
|
Goodwill |
2,795 |
|
|
2,795 |
|
Intangibles, net |
467 |
|
|
499 |
|
Other assets |
89 |
|
|
15 |
|
Total assets |
$ |
7,611 |
|
|
$ |
7,962 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
207 |
|
|
$ |
222 |
|
Accrued expenses and other liabilities |
1,159 |
|
|
910 |
|
Total current liabilities |
1,366 |
|
|
1,132 |
|
Stockholders’ equity: |
|
|
|
Preferred stock, Series A-2, convertible; $.0001 par value; $7,500
stated value; 7,500 shares authorized, 32 shares issued and
outstanding and liquidation preference of $323 and $308 at March
31, 2019 and December 31, 2018, respectively |
— |
|
|
— |
|
Preferred stock, Series B, convertible; $.0001 par value; $1,000
stated value; 2,800 shares authorized, no shares issued and
outstanding and liquidation preference of $0 at March 31, 2019 and
75 shares issued and outstanding and liquidation preference of $75
at December 31, 2018 |
— |
|
|
— |
|
Preferred stock, Series C, convertible; $.0001 par value; $1,000
stated value; 1,750 shares authorized, 475 shares issued and
outstanding and liquidation preference of $475 at March 31, 2019
and 525 shares issued and outstanding and liquidation preference of
$525 at December 31, 2018 |
— |
|
|
— |
|
Common stock, $.0001 par value; 150,000,000 shares authorized;
5,173,900 shares issued and 5,040,500 outstanding at March 31, 2019
and 5,113,700 issued and 4,981,200 outstanding at December 31,
2018 |
5 |
|
|
5 |
|
Treasury stock, 133,400 and 132,500 shares at March 31, 2019 and
December 31, 2018, respectively |
(497 |
) |
|
(496 |
) |
Additional paid-in capital |
185,008 |
|
|
184,994 |
|
Accumulated deficit |
(178,271 |
) |
|
(177,673 |
) |
Total stockholders’ equity |
6,245 |
|
|
6,830 |
|
Total liabilities and stockholders’ equity |
$ |
7,611 |
|
|
$ |
7,962 |
|
|
|
|
|
|
|
|
|
GLOWPOINT, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS and GAAP to Non-GAAP
Reconciliation(In thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
March 31, |
|
2019 |
|
2018 |
Revenue |
$ |
2,594 |
|
|
$ |
3,474 |
|
Operating expenses: |
|
|
|
Cost of revenue (exclusive of depreciation and amortization) |
1,675 |
|
|
2,147 |
|
Research and development |
213 |
|
|
250 |
|
Sales and marketing |
33 |
|
|
177 |
|
General and administrative |
1,112 |
|
|
898 |
|
Impairment charges |
— |
|
|
650 |
|
Depreciation and amortization |
159 |
|
|
232 |
|
Total operating expenses |
3,192 |
|
|
4,354 |
|
Loss from operations |
(598 |
) |
|
(880 |
) |
Interest and other expense, net |
— |
|
|
(405 |
) |
Net loss |
(598 |
) |
|
(1,285 |
) |
Preferred stock dividends |
15 |
|
|
3 |
|
Net loss attributable to
common stockholders |
$ |
(613 |
) |
|
$ |
(1,288 |
) |
|
|
|
|
Net loss attributable to
common stockholders per share: |
|
|
|
Basic and diluted net loss per
share |
$ |
(0.12 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
GAAP to Non-GAAP
Reconciliation: |
|
|
|
Net loss |
$ |
(598 |
) |
|
$ |
(1,285 |
) |
Depreciation and amortization |
159 |
|
|
232 |
|
Interest and other expense, net |
— |
|
|
405 |
|
Income tax expense |
— |
|
|
— |
|
EBITDA |
(439 |
) |
|
(648 |
) |
Stock-based compensation |
29 |
|
|
50 |
|
Merger expenses |
261 |
|
|
— |
|
Impairment charges |
— |
|
|
650 |
|
Adjusted
EBITDA |
$ |
(149 |
) |
|
$ |
52 |
|
|
|
|
|
GLOWPOINT, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(598 |
) |
|
$ |
(1,285 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
159 |
|
|
232 |
|
Bad debt expense (recovery) |
(4 |
) |
|
5 |
|
Amortization of debt discount, net of gain on extinguishment |
— |
|
|
104 |
|
Stock-based compensation expense |
29 |
|
|
50 |
|
Impairment charges |
— |
|
|
650 |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
(67 |
) |
|
(80 |
) |
Prepaid expenses and other current assets |
(72 |
) |
|
19 |
|
Other assets |
24 |
|
|
— |
|
Accounts payable |
(15 |
) |
|
(28 |
) |
Accrued expenses and other liabilities |
136 |
|
|
(139 |
) |
Net cash used in operating activities |
(408 |
) |
|
(472 |
) |
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
(9 |
) |
|
(48 |
) |
Net cash used in investing activities |
(9 |
) |
|
(48 |
) |
Cash flows from financing
activities: |
|
|
|
Principal payments under borrowing arrangements |
— |
|
|
(1,832 |
) |
Proceeds from Series C preferred stock issuance, net of expenses of
$223 |
— |
|
|
1,527 |
|
Purchase of treasury stock |
(1 |
) |
|
(53 |
) |
Net cash used in financing activities |
(1 |
) |
|
(358 |
) |
Decrease in cash and cash
equivalents |
(418 |
) |
|
(878 |
) |
Cash at beginning of
period |
2,007 |
|
|
3,946 |
|
Cash at end of period |
$ |
1,589 |
|
|
$ |
3,068 |
|
|
|
|
|
Supplemental disclosures of
cash flow information: |
|
|
|
Cash paid during the period for interest |
$ |
— |
|
|
$ |
316 |
|
|
|
|
|
Non-cash investing and
financing activities: |
|
|
|
Accrued preferred stock dividends |
$ |
15 |
|
|
$ |
3 |
|
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