CommerceHub Announces Second Quarter 2017 Financial Results
August 02 2017 - 4:02PM
Revenue of $25.2 million increases 9%,
$0.05 GAAP EPS, and $0.08 adjusted EPSSigns Top 10
U.S. Retailer and First U.K. Drop-Ship Retailer
CommerceHub, Inc. (NASDAQ:CHUBA) (NASDAQ:CHUBK)
(“CommerceHub,” “we,” “us,” “our” or the “Company”), a leading
distributed commerce network for retailers and brands, today
announced financial results for the quarter ended June 30, 2017.
“We are pleased with the solid second quarter results we
announced today, including continued revenue growth and expanding
profitability,” said Frank Poore, CommerceHub’s Founder, President
and CEO. “We are excited to announce the addition of two strategic
retailer customer wins during the quarter, making four year-to-date
and delivering on the high-end of our goal of 2-4 new retailer
customers per year. One is a top 10 U.S. retailer, and the other
marks our first retail drop-ship customer in the U.K. The U.S. win
demonstrates our market leadership and our ability to deliver
high-volume drop-ship fulfillment at scale. The U.K. win
establishes a beachhead for our drop-ship offerings and should help
to further unlock the U.K. market for CommerceHub.”
“In addition to $2.2 million of net income for the quarter, we
generated $8.6 million in adjusted EBITDA, representing 34 percent
of revenue for the quarter and a 7 percentage point improvement
over the same period last year. We also delivered strong free cash
flow and continued to pay down debt, strengthening our net cash
balance,” said Mark Greenquist, CommerceHub’s CFO. “We are pleased
with our recent customer wins and believe this new U.S. retailer
could eventually become a top 10 customer for CommerceHub.”
Second Quarter 2017 Financial Highlights
- Revenue was $25.2 million, a 9% year-over-year
increase from $23.1 million in 2016. Core drop-ship revenue, which
excludes revenue from our demand channel solutions, increased
14%.
- Gross margin was 78%, compared to 77% in
2016.
- Adjusted gross margin was 78%, compared to 75%
in 2016.
- Net income was $2.2 million, or $0.05 per
diluted share, compared to $4.4 million, or $0.10 per diluted
share, in 2016.
- Adjusted net income was $3.7 million, or $0.08
per diluted share, compared to $2.6 million, or $0.06 per diluted
share, in 2016.
- Adjusted EBITDA was $8.6 million, compared to
$6.3 million in 2016.
- Operating cash flow was a positive $7.1
million, compared to a negative $73.3 million in 2016, which was
impacted by a non-recurring cash payment of $78.5 million in
share-based compensation related to our spin-off from Liberty
Interactive.
- Free cash flow was a positive $6.5 million,
compared to a negative $76.5 million in 2016.
- Cash at quarter end was $6.8 million and the
total amount outstanding under our credit facility was $6.0
million.
An explanation of the non-GAAP financial measures discussed
above is included below under the heading "Statement Regarding
Non-GAAP Financial Measures." A reconciliation of these
non-GAAP financial measures to the closest comparable GAAP
financial measures has also been provided in the financial tables
included at the end of this press release.
Other Recent Highlights
- Total customer count at June 30, 2017 was 11,274, up
from 9,730 at June 30, 2016, or 16% year-over-year.
- Drop-ship order volume growth was 17% in the second
quarter.
- We expanded our CommerceHub for Retailers
network with the signing of a top 10 U.S. retailer that we
believe has the potential to become a top 10 customer for
CommerceHub. This win is a conversion of an existing in-house
drop-ship program, which we believe demonstrates the complexity of
such programs and the value CommerceHub can deliver through
increased operational efficiencies, improved customer service and
capital-efficient expansion of product assortments.
- We signed our first U.K. retailer drop-ship customer. This is a
mid-sized U.K. retailer seeking to expand its ecommerce business by
leveraging CommerceHub’s drop-ship model, while reducing inventory
risk and operating costs.
Conference Call DetailsThe Company will offer a
live conference call, and a live, listen-only webcast of the call
via the CommerceHub Investor Relations website at 4:30 p.m., E.T.,
today, Wednesday, August 2, 2017. See
http://ir.commercehub.com/events.cfm, where supporting materials,
including a presentation and supplemental financial data, have been
posted.
Live Call: |
U.S./Canada Toll-Free Participants Dial-in Number: (800)
219-6912International Toll Participants Dial-in Number: (574)
990-1026Conference ID/Passcode: 55684519 |
Webcast (live and replay): |
http://ir.commercehub.com/events.cfm |
About CommerceHub:CommerceHub
is a distributed commerce network connecting supply, demand and
delivery that helps retailers and brands increase sales by
expanding product assortments, promoting products on the channels
that perform, and enabling rapid, on-time customer delivery. With
its robust platform and proven scalability, CommerceHub helped over
10,000 retailers, brands, and distributors achieve an estimated
$13+ billion in Gross Merchandise Value in 2016.
Important Information Regarding Forward-Looking
StatementsThis press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements about future business
strategies, future financial performance, market conditions and
potential, future growth of ecommerce, customer growth, sales
channel expansion, international expansion and other matters that
are not historical facts. These statements involve many risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements, including,
without limitation, market acceptance and performance of our
products and services, competitive issues, general market
conditions, regulatory matters affecting our business and changes
in law. These forward-looking statements speak only as of the date
of this presentation, and we expressly disclaim any obligation or
undertaking to disseminate any updates or revisions to any such
statement contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
There can be no assurance that any expectation or belief expressed
in a forward-looking statement will occur, and you should not place
undue reliance on any forward-looking statements. Please refer to
our public filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the fiscal year ended
December 31, 2016, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, for additional information about us and the
risks and uncertainties we face that may affect the forward-looking
statements made in this press release.
Statement Regarding Non-GAAP Financial
MeasuresIn addition to reporting financial measures
calculated in accordance with U.S. generally accepted accounting
principles (“GAAP”), we provide non-GAAP financial measures that
management considers in reviewing our financial performance because
we feel they are relevant measures of the overall efficiency of our
business model. These non-GAAP financial measures are not a
substitute for, or superior to, and should be considered only in
addition to, financial measures calculated in accordance with GAAP.
They are subject to inherent limitations and exclude significant
expenses and income that are required by GAAP to be recorded in our
financial statements. Certain of these adjustments are based on
estimates and assumptions of management and do not purport to
reflect actual historical results. In addition, you should be aware
that our computation of these non-GAAP financial measures may not
be comparable to other similarly titled measures computed by other
companies, because all companies do not calculate these measures in
the same fashion. We define “adjusted gross profit” as gross profit
plus share-based compensation and acquisition-related intangible
amortization. We define “adjusted gross margin” as adjusted gross
profit divided by revenue. We define “adjusted operating expenses”
as total operating expenses less share-based compensation and
acquisition-related intangible amortization. We define “adjusted
EBITDA” as net income or loss plus interest expense, income tax
expense, depreciation of property and equipment, amortization of
capitalized software costs and intangible assets and share-based
compensation expense, less interest income and income tax
benefit. We define “adjusted net income” as net income or
loss plus share-based compensation, acquisition-related intangible
amortization and the tax effect of these adjustments. We define
“adjusted earnings per diluted share” or “adjusted EPS” as earnings
per diluted share plus the diluted per share effects of share-based
compensation, acquisition-related intangible amortization and the
tax effect of these adjustments. We define “free cash flow”
as net cash provided by, or used in, operating activities less
purchases of property and equipment and additions to capitalized
software. A reconciliation of these non-GAAP financial measures to
the closest comparable GAAP financial measures has been provided in
the financial tables included at the end of this press release.
Consolidated Statement of
Operations |
(in thousands except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Revenue |
$ |
25,208 |
|
|
$ |
23,103 |
|
|
$ |
49,776 |
|
|
$ |
45,193 |
|
|
Cost of revenue |
|
5,639 |
|
|
|
5,320 |
|
|
|
11,155 |
|
|
|
11,425 |
|
|
Gross
profit |
|
19,569 |
|
|
|
17,783 |
|
|
|
38,621 |
|
|
|
33,768 |
|
|
Gross
margin |
|
78 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
6,396 |
|
|
|
3,444 |
|
|
|
12,311 |
|
|
|
8,314 |
|
|
Sales and
marketing |
|
2,387 |
|
|
|
2,384 |
|
|
|
4,318 |
|
|
|
6,001 |
|
|
General and
administrative |
|
6,945 |
|
|
|
4,675 |
|
|
|
13,884 |
|
|
|
15,199 |
|
|
Operating
expenses |
|
15,728 |
|
|
|
10,503 |
|
|
|
30,513 |
|
|
|
29,514 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
3,841 |
|
|
|
7,280 |
|
|
|
8,108 |
|
|
|
4,254 |
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income, net |
|
(229 |
) |
|
|
63 |
|
|
|
(456 |
) |
|
|
229 |
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income |
|
3,612 |
|
|
|
7,343 |
|
|
|
7,652 |
|
|
|
4,483 |
|
|
Income tax expense |
|
1,367 |
|
|
|
2,919 |
|
|
|
2,948 |
|
|
|
2,049 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
2,245 |
|
|
$ |
4,424 |
|
|
$ |
4,704 |
|
|
$ |
2,434 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
$ |
0.06 |
|
|
Diluted |
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
Share count (1): |
|
|
|
|
|
|
|
|
Basic |
|
43,155 |
|
|
|
42,703 |
|
|
|
43,068 |
|
|
|
42,703 |
|
|
Diluted |
|
44,957 |
|
|
|
42,703 |
|
|
|
44,842 |
|
|
|
42,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share
counts for pre-spin periods represent the shares issued at spin-off
on July 22, 2016. |
|
|
|
|
|
|
|
|
|
|
|
CommerceHub, Inc. |
Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2017 |
|
12/31/2016 |
|
Assets |
|
|
|
|
Cash and cash
equivalents |
$ |
6,777 |
|
$ |
6,471 |
|
Accounts receivable,
net of allowances |
|
11,721 |
|
|
18,109 |
|
Prepaid income
taxes |
|
3,012 |
|
|
4,311 |
|
Prepaid expenses |
|
1,533 |
|
|
1,549 |
|
Total
current assets |
|
23,043 |
|
|
30,440 |
|
|
|
|
|
|
Capitalized software,
net |
|
5,053 |
|
|
6,716 |
|
Deferred services
costs |
|
4,837 |
|
|
4,989 |
|
Property and equipment,
net |
|
7,283 |
|
|
7,629 |
|
Goodwill |
|
21,410 |
|
|
21,410 |
|
Deferred income
taxes |
|
8,639 |
|
|
7,714 |
|
Other long-term
assets |
|
1,524 |
|
|
1,122 |
|
Total
assets |
$ |
71,789 |
|
$ |
80,020 |
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
Accounts payable and
accrued expenses |
$ |
2,223 |
|
$ |
2,135 |
|
Accrued payroll and
related expenses |
|
6,165 |
|
|
7,435 |
|
Income taxes
payable |
|
8 |
|
|
7 |
|
Deferred revenue |
|
5,589 |
|
|
5,149 |
|
Total
current liabilities |
|
13,985 |
|
|
14,726 |
|
Deferred revenue,
long-term |
|
7,965 |
|
|
7,581 |
|
Other long-term
liabilities |
|
1,995 |
|
|
1,135 |
|
Long-term debt |
|
6,000 |
|
|
26,000 |
|
Total
liabilities |
|
29,945 |
|
|
49,442 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Total
equity |
|
41,844 |
|
|
30,578 |
|
Total
liabilities and equity |
$ |
71,789 |
|
$ |
80,020 |
|
|
|
|
|
CommerceHub, Inc. |
Consolidated Statements of Cash
Flows |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
Net
income |
$ |
2,245 |
|
|
$ |
4,424 |
|
|
$ |
4,704 |
|
|
$ |
2,434 |
|
|
Adjustments to net income: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
2,182 |
|
|
|
2,539 |
|
|
|
4,276 |
|
|
|
4,862 |
|
|
Amortization of debt issuance costs |
|
55 |
|
|
|
- |
|
|
|
111 |
|
|
|
- |
|
|
Share-based compensation |
|
2,617 |
|
|
|
(3,477 |
) |
|
|
4,977 |
|
|
|
6,560 |
|
|
Deferred
income taxes |
|
(283 |
) |
|
|
21,585 |
|
|
|
(925 |
) |
|
|
19,214 |
|
|
Bad debt
expense |
|
187 |
|
|
|
222 |
|
|
|
591 |
|
|
|
255 |
|
|
Accrued
interest income |
|
- |
|
|
|
(107 |
) |
|
|
- |
|
|
|
(273 |
) |
|
Loss on
disposal of long-term assets |
|
17 |
|
|
|
160 |
|
|
|
17 |
|
|
|
160 |
|
|
Working
capital changes: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
621 |
|
|
|
1,315 |
|
|
|
5,796 |
|
|
|
5,919 |
|
|
Prepaid
expenses and other assets |
|
(245 |
) |
|
|
(11 |
) |
|
|
(488 |
) |
|
|
(420 |
) |
|
Income
taxes, net |
|
(2,376 |
) |
|
|
(738 |
) |
|
|
1,300 |
|
|
|
(738 |
) |
|
Deferred
costs |
|
(29 |
) |
|
|
(103 |
) |
|
|
152 |
|
|
|
(295 |
) |
|
Deferred
revenue |
|
490 |
|
|
|
(249 |
) |
|
|
824 |
|
|
|
(31 |
) |
|
Accounts
payable and accrued expenses |
|
256 |
|
|
|
(1,827 |
) |
|
|
593 |
|
|
|
231 |
|
|
Accrued
payroll and related expenses |
|
1,373 |
|
|
|
(1,973 |
) |
|
|
(1,247 |
) |
|
|
(867 |
) |
|
Share-based compensation liability payments |
|
- |
|
|
|
(78,494 |
) |
|
|
- |
|
|
|
(85,930 |
) |
|
Parent
receivables and payables, net |
|
- |
|
|
|
(16,603 |
) |
|
|
- |
|
|
|
(16,346 |
) |
|
Net cash
provided by (used in) operating activities |
|
7,110 |
|
|
|
(73,337 |
) |
|
|
20,681 |
|
|
|
(65,265 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Purchases
of property and equipment |
|
(257 |
) |
|
|
(1,845 |
) |
|
|
(949 |
) |
|
|
(4,136 |
) |
|
Additions
to capitalized software |
|
(353 |
) |
|
|
(1,321 |
) |
|
|
(984 |
) |
|
|
(3,504 |
) |
|
Collections on note receivable - Parent |
|
- |
|
|
|
36,380 |
|
|
|
- |
|
|
|
36,380 |
|
|
Net cash
(used in) provided by investing activities |
|
(610 |
) |
|
|
33,214 |
|
|
|
(1,933 |
) |
|
|
28,740 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Borrowings on note payable - Parent |
|
- |
|
|
|
28,664 |
|
|
|
- |
|
|
|
28,664 |
|
|
Payments
on revolver |
|
(4,000 |
) |
|
|
- |
|
|
|
(20,000 |
) |
|
|
- |
|
|
Cash paid
for debt issuance costs |
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
|
|
(1,000 |
) |
|
Cash
received from exercise of stock options |
|
233 |
|
|
|
21 |
|
|
|
1,557 |
|
|
|
73 |
|
|
Purchase
of treasury stock |
|
- |
|
|
|
(3,600 |
) |
|
|
- |
|
|
|
(3,600 |
) |
|
Net cash
(used in) provided by financing activities |
|
(3,767 |
) |
|
|
24,085 |
|
|
|
(18,443 |
) |
|
|
24,137 |
|
|
Currency
effect on cash |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
Net
increase (decrease) in cash and cash equivalents |
|
2,733 |
|
|
|
(16,038 |
) |
|
|
306 |
|
|
|
(12,388 |
) |
|
|
|
|
|
|
|
|
|
|
Beginning cash and cash
equivalents |
|
4,044 |
|
|
|
22,987 |
|
|
|
6,471 |
|
|
|
19,337 |
|
|
Ending cash and cash
equivalents |
$ |
6,777 |
|
|
$ |
6,949 |
|
|
$ |
6,777 |
|
|
$ |
6,949 |
|
|
|
|
|
|
|
|
|
|
CommerceHub, Inc. |
Supplemental Information |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
% Inc (Dec) |
|
6/30/2017 |
|
6/30/2016 |
|
% Inc (Dec) |
|
Revenue by type: |
|
|
|
|
|
|
|
|
|
|
|
|
Usage
revenue |
$ |
16,553 |
|
$ |
15,333 |
|
|
8 |
% |
|
$ |
32,412 |
|
$ |
29,875 |
|
|
8 |
% |
|
Subscription revenues |
|
6,943 |
|
|
6,228 |
|
|
11 |
% |
|
|
13,840 |
|
|
12,346 |
|
|
12 |
% |
|
Set-up
and professional services |
|
1,712 |
|
|
1,542 |
|
|
11 |
% |
|
|
3,524 |
|
|
2,972 |
|
|
19 |
% |
|
Total
revenue |
$ |
25,208 |
|
$ |
23,103 |
|
|
9 |
% |
|
$ |
49,776 |
|
$ |
45,193 |
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
|
|
6 months ended: |
|
|
|
|
6/30/2017 |
|
6/30/2016 |
|
|
|
6/30/2017 |
|
6/30/2016 |
|
|
|
Share-based
compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
$ |
89 |
|
$ |
(662 |
) |
|
|
|
$ |
199 |
|
$ |
(158 |
) |
|
|
|
Research
and development |
|
530 |
|
|
(747 |
) |
|
|
|
|
1,101 |
|
|
1,113 |
|
|
|
|
Sales and
marketing |
|
300 |
|
|
(383 |
) |
|
|
|
|
435 |
|
|
601 |
|
|
|
|
General
and administrative |
|
1,698 |
|
|
(1,685 |
) |
|
|
|
|
3,242 |
|
|
5,004 |
|
|
|
|
Total |
$ |
2,617 |
|
$ |
(3,477 |
) |
|
|
|
$ |
4,977 |
|
$ |
6,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CommerceHub, Inc. |
GAAP to Non-GAAP Reconciliations |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to adjusted gross
profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Gross profit |
$ |
19,569 |
|
|
$ |
17,783 |
|
|
$ |
38,621 |
|
|
$ |
33,768 |
|
|
Share-based
compensation |
|
89 |
|
|
|
(662 |
) |
|
|
199 |
|
|
|
(158 |
) |
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
187 |
|
|
|
- |
|
|
|
375 |
|
|
Adjusted
gross profit |
$ |
19,658 |
|
|
$ |
17,308 |
|
|
$ |
38,820 |
|
|
$ |
33,985 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
margin |
|
78 |
% |
|
|
75 |
% |
|
|
78 |
% |
|
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to adjusted
operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Operating expenses |
$ |
15,728 |
|
|
$ |
10,503 |
|
|
$ |
30,513 |
|
|
$ |
29,514 |
|
|
Share-based
compensation |
|
(2,528 |
) |
|
|
2,815 |
|
|
|
(4,778 |
) |
|
|
(6,718 |
) |
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
(250 |
) |
|
|
- |
|
|
|
(500 |
) |
|
Adjusted
operating expenses |
$ |
13,200 |
|
|
$ |
13,068 |
|
|
$ |
25,735 |
|
|
$ |
22,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Net income |
$ |
2,245 |
|
|
$ |
4,424 |
|
|
$ |
4,704 |
|
|
$ |
2,434 |
|
|
Interest expense
(income), net |
|
229 |
|
|
|
(63 |
) |
|
|
456 |
|
|
|
(229 |
) |
|
Income tax expense |
|
1,367 |
|
|
|
2,919 |
|
|
|
2,948 |
|
|
|
2,049 |
|
|
Depreciation and
amortization |
|
2,182 |
|
|
|
2,539 |
|
|
|
4,276 |
|
|
|
4,862 |
|
|
Share-based
compensation |
|
2,617 |
|
|
|
(3,477 |
) |
|
|
4,977 |
|
|
|
6,560 |
|
|
Adjusted
EBITDA |
$ |
8,640 |
|
|
$ |
6,342 |
|
|
$ |
17,361 |
|
|
$ |
15,676 |
|
|
|
|
|
|
|
|
|
|
CommerceHub,
Inc. |
GAAP to Non-GAAP Reconciliations,
continued |
(in thousands except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to adjusted net
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Net income |
$ |
2,245 |
|
|
$ |
4,424 |
|
|
$ |
4,704 |
|
|
$ |
2,434 |
|
|
Share-based
compensation |
|
2,617 |
|
|
|
(3,477 |
) |
|
|
4,977 |
|
|
|
6,560 |
|
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
437 |
|
|
|
- |
|
|
|
875 |
|
|
Tax effect of
adjustments (1) |
|
(1,125 |
) |
|
|
1,198 |
|
|
|
(2,104 |
) |
|
|
(2,718 |
) |
|
Adjusted
net income |
$ |
3,737 |
|
|
$ |
2,582 |
|
|
$ |
7,577 |
|
|
$ |
7,151 |
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjusted net income assumes a long-term projected tax rate of
40% |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP earnings per diluted share to
adjusted earnings per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
GAAP earnings per
diluted share |
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.06 |
|
|
Share-based
compensation |
|
0.06 |
|
|
|
(0.08 |
) |
|
|
0.11 |
|
|
|
0.15 |
|
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
0.02 |
|
|
Tax effect of
adjustments (1) |
|
(0.03 |
) |
|
|
0.03 |
|
|
|
(0.05 |
) |
|
|
(0.06 |
) |
|
Adjusted
earnings per diluted share |
$ |
0.08 |
|
|
$ |
0.06 |
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
Diluted share
count |
|
44,957 |
|
|
|
42,703 |
|
|
|
44,842 |
|
|
|
42,703 |
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjusted earnings per diluted share assumes a long-term projected
tax rate of 40% |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net cash provided by (used in)
operating activities to free cash flow: |
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
6 months ended: |
|
|
6/30/2017 |
|
6/30/2016 |
|
6/30/2017 |
|
6/30/2016 |
|
Net cash provided by
(used in) operating activities |
$ |
7,110 |
|
|
$ |
(73,337 |
) |
|
$ |
20,681 |
|
|
$ |
(65,265 |
) |
|
Purchases of property
and equipment |
|
(257 |
) |
|
|
(1,845 |
) |
|
|
(949 |
) |
|
|
(4,136 |
) |
|
Additions to
capitalized software |
|
(353 |
) |
|
|
(1,321 |
) |
|
|
(984 |
) |
|
|
(3,504 |
) |
|
Free cash
flow (1) |
$ |
6,500 |
|
|
$ |
(76,503 |
) |
|
$ |
18,748 |
|
|
$ |
(72,905 |
) |
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation liability payments of: |
|
- |
|
|
|
(78,494 |
) |
|
|
- |
|
|
|
(85,930 |
) |
|
|
|
|
|
|
|
|
|
CommerceHub Investor Relations Contact
Sara Leggat
investor@commercehub.com
Commercehub Inc (NASDAQ:CHUBA)
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