CommerceHub Announces Fourth Quarter and Full Year 2017 Financial Results
February 28 2018 - 4:01PM
Revenue for the fourth quarter and full
year grows 12% and 11%, respectivelyNet income of
$3.2 million and adjusted EBITDA of $19.6 million in
seasonally strong fourth quarterSigns Macy’s as a
retail drop-ship customer
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 fourth quarter and full year ended December 31, 2017.
“We had another strong financial performance in the quarter,
with core drop-ship revenue increasing 14%, but we are most excited
about the January 2018 signing of Macy’s as a new drop-ship retail
customer,” said Frank Poore, CommerceHub’s Founder, President and
CEO. “Macy’s is a storied retail brand with a significant online
presence. This new relationship is yet another validation of
CommerceHub’s role as strategic partner to many of the largest and
most successful retailers online. Drop-shipping and virtual
inventory are strategic initiatives at leading retailers, and
CommerceHub’s superior platform, solutions and supplier network
power our market-leading position.”
“The power of our business model was again on display in the
fourth quarter, generating $10.7 million of operating cash flow and
$10.5 million of free cash flow on $3.2 million of net income and
$19.6 million of adjusted EBITDA, while adjusted EBITDA margin
expanded to 53%,” said Michael Trimarchi, CommerceHub’s CFO.
“Full-year 2017 total revenue of $111.1 million grew 11%
year-over-year, while net income rose 8% and adjusted EBITDA
increased 20%,” he continued.
Fourth Quarter 2017 Financial Highlights
- Revenue was $36.7 million, a 12% increase from
$32.9 million in 2016. Core drop-ship revenue was $34.4 million, a
14% increase from $30.2 million in 2016.
- Gross margin was 85%, compared to 82% in
2016.
- Adjusted gross margin was 86%, compared to 83%
in 2016.
- Net income was $3.2 million, or $0.07 per
diluted share, compared to $6.0 million, or $0.13 per diluted
share, in 2016.
- Adjusted net income was $10.7 million, or
$0.23 per diluted share, compared to $8.7 million, or $0.20 per
diluted share, in 2016.
- Adjusted EBITDA was $19.6 million, compared to
$16.8 million in 2016.
- Operating cash flow was $10.7 million,
compared to $4.3 million in 2016.
- Free cash flow was $10.5 million, compared to
$3.3 million in 2016.
- Net cash and cash equivalents at quarter end
was $19.8 million.
Full Year 2017 Financial Highlights
- Revenue was $111.1 million in 2017, an 11%
increase from $100.6 million in 2016. Core drop-ship revenue was
$102.1 million, a 13% increase from $90.4 million in 2016.
- Gross margin was 81% in 2017, compared to 77%
in 2016.
- Adjusted gross margin was 81% in 2017,
compared to 78% in 2016.
- Net income was $9.9 million, or $0.22 per
diluted share, in 2017, compared to $9.1 million, or $0.21 per
diluted share, in 2016.
- Adjusted net income was $22.0 million, or
$0.49 per diluted share in 2017, compared to $17.6 million, or
$0.40 per diluted share, in 2016.
- Adjusted EBITDA was $45.4 million in 2017,
compared to $37.8 million in 2016.
- Operating cash flow was $38.1 million in 2017,
compared to negative $48.1 million in 2016.
- Free cash flow was $35.5 million in 2017,
compared to negative $57.7 million in 2016.
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 December 31, 2017 was
approximately 11,600, up 15% year-over-year from approximately
10,100 at December 31, 2016.
- Drop-ship order volume grew 15% in the fourth quarter of 2017
and 16% for the full year of 2017, compared to the same periods in
2016.
- We expanded our CommerceHub for Retailers
network with the signing of Macy’s, a top 10 online retailer,
as a new drop-ship customer in January 2018. 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.
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, February 28, 2018. 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)
219-6912 |
|
International Toll Participants Dial-in Number: (574)
990-1026 |
|
Conference ID/Passcode: 5492517 |
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
11,500 retailers, brands, and distributors achieve an estimated $16
billion in Gross Merchandise Value in 2017. 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, cost savings, market conditions and potential, future
growth of ecommerce, customer growth and performance, sales channel
expansion and other matters that are not historical facts. These
statements involve risks, uncertainties, estimates and assumptions,
many of which are beyond our control, 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 and changes in law
affecting our business and the risk factors described in our most
recent Annual Report on Form 10-K under Item 1A "Risk Factors.”
Further, we operate in a very competitive and rapidly changing
environment, and new risks emerge from time to time. It is not
possible for our management to predict all potential risks or
assess their potential effects on our business. These
forward-looking statements speak only as of the date of this press
release, 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
Reports on Form 10-K, 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, acquisition-related intangible
amortization and restructuring charges. 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, acquisition-related intangible
amortization and restructuring charges. 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, share-based compensation and
restructuring charges, 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, restructuring charges and the tax effects of these
adjustments, federal tax reform and other deferred charges. 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, restructuring charges and the tax effects of these
adjustments, federal tax reform and other deferred charges.
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. Certain of these non-GAAP
financial measures exclude restructuring charges, the elimination
of which does not result in a reduction of operating expenses
necessary to conduct our business. By excluding these
charges, we believe these non-GAAP financial measures provide
supplemental information that enables us and investors to better
analyze our operating performance and the sustainability of our
results and to compare our performance on a more consistent basis
from period to period. 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.
CommerceHub Investor Relations ContactSara
Leggat investor@commercehub.com
|
CommerceHub, Inc. |
Consolidated Statements of Operations |
(in thousands except per share data) |
(unaudited) |
|
|
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Revenue |
$ |
36,731 |
|
|
$ |
32,881 |
|
|
$ |
111,121 |
|
|
$ |
100,552 |
|
|
Cost of revenue |
|
5,417 |
|
|
|
5,895 |
|
|
|
21,600 |
|
|
|
23,057 |
|
|
Gross
profit |
|
31,314 |
|
|
|
26,986 |
|
|
|
89,521 |
|
|
|
77,495 |
|
|
Gross
margin |
|
85 |
% |
|
|
82 |
% |
|
|
81 |
% |
|
|
77 |
% |
|
|
|
|
|
|
|
|
|
Research
and development |
|
6,814 |
|
|
|
5,796 |
|
|
|
25,559 |
|
|
|
19,187 |
|
|
Sales
and marketing |
|
1,826 |
|
|
|
2,310 |
|
|
|
8,576 |
|
|
|
11,334 |
|
|
General
and administrative |
|
7,634 |
|
|
|
7,075 |
|
|
|
28,920 |
|
|
|
30,282 |
|
|
Operating
expenses |
|
16,274 |
|
|
|
15,181 |
|
|
|
63,055 |
|
|
|
60,803 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
15,040 |
|
|
|
11,805 |
|
|
|
26,466 |
|
|
|
16,692 |
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
(128 |
) |
|
|
(302 |
) |
|
|
(732 |
) |
|
|
(434 |
) |
|
|
|
|
|
|
|
|
|
Pre-tax
income |
|
14,912 |
|
|
|
11,503 |
|
|
|
25,734 |
|
|
|
16,258 |
|
|
Income
tax expense |
|
11,746 |
|
|
|
5,551 |
|
|
|
15,876 |
|
|
|
7,162 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
3,166 |
|
|
$ |
5,952 |
|
|
$ |
9,858 |
|
|
$ |
9,096 |
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.23 |
|
|
$ |
0.21 |
|
|
Diluted |
$ |
0.07 |
|
|
$ |
0.13 |
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
Share count: |
|
|
|
|
|
|
|
|
Basic |
|
43,391 |
|
|
|
42,876 |
|
|
|
43,204 |
|
|
|
42,831 |
|
|
Diluted |
|
45,864 |
|
|
|
44,408 |
|
|
|
45,230 |
|
|
|
44,343 |
|
|
|
|
|
|
|
|
|
|
CommerceHub, Inc. |
Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
12/31/17 |
|
12/31/16 |
|
Assets |
|
|
|
|
Cash and
cash equivalents |
$ |
19,841 |
|
$ |
6,471 |
|
Accounts
receivable, net of allowances |
|
21,310 |
|
|
18,109 |
|
Prepaid
income taxes |
|
- |
|
|
4,311 |
|
Prepaid
expenses |
|
1,652 |
|
|
1,549 |
|
Total
current assets |
|
42,803 |
|
|
30,440 |
|
|
|
|
|
|
Capitalized software, net |
|
2,850 |
|
|
6,716 |
|
Deferred
services costs |
|
4,853 |
|
|
4,989 |
|
Property
and equipment, net |
|
6,066 |
|
|
7,629 |
|
Goodwill |
|
21,410 |
|
|
21,410 |
|
Deferred
income taxes |
|
5,798 |
|
|
7,714 |
|
Other
long-term assets |
|
1,339 |
|
|
1,122 |
|
Total
assets |
$ |
85,119 |
|
$ |
80,020 |
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
Accounts payable and
accrued expenses |
$ |
3,360 |
|
$ |
2,135 |
|
Accrued
payroll and related expenses |
|
9,429 |
|
|
7,435 |
|
Income
taxes payable |
|
962 |
|
|
7 |
|
Deferred
revenue |
|
5,339 |
|
|
5,149 |
|
Total
current liabilities |
|
19,090 |
|
|
14,726 |
|
Deferred
revenue, long-term |
|
8,272 |
|
|
7,581 |
|
Other
long-term liabilities |
|
3,210 |
|
|
1,135 |
|
Long-term debt |
|
- |
|
|
26,000 |
|
Total
liabilities |
|
30,572 |
|
|
49,442 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Total
equity |
|
54,547 |
|
|
30,578 |
|
Total
liabilities and equity |
$ |
85,119 |
|
$ |
80,020 |
|
|
|
|
|
CommerceHub, Inc. |
Consolidated Statements of Cash Flows |
(in thousands) |
(unaudited) |
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
Net
income |
$ |
3,166 |
|
|
$ |
5,952 |
|
|
$ |
9,858 |
|
|
$ |
9,096 |
|
|
Adjustments to net income: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,754 |
|
|
|
2,488 |
|
|
|
8,032 |
|
|
|
9,803 |
|
|
Amortization of debt issuance costs |
|
55 |
|
|
|
56 |
|
|
|
221 |
|
|
|
111 |
|
|
Share-based compensation |
|
1,643 |
|
|
|
2,537 |
|
|
|
8,629 |
|
|
|
11,290 |
|
|
Deferred
income taxes |
|
5,307 |
|
|
|
4,311 |
|
|
|
3,571 |
|
|
|
21,326 |
|
|
Bad debt
expense |
|
338 |
|
|
|
(66 |
) |
|
|
1,269 |
|
|
|
629 |
|
|
Accrued
interest income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(273 |
) |
|
Impairment and loss on disposal of long-term assets |
|
100 |
|
|
|
19 |
|
|
|
310 |
|
|
|
179 |
|
|
Working
capital changes: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
(9,120 |
) |
|
|
(7,993 |
) |
|
|
(4,470 |
) |
|
|
(2,326 |
) |
|
Prepaid
expenses and other assets |
|
255 |
|
|
|
357 |
|
|
|
(532 |
) |
|
|
(599 |
) |
|
Income
taxes, net |
|
4,008 |
|
|
|
(5,114 |
) |
|
|
5,266 |
|
|
|
(4,304 |
) |
|
Deferred
costs |
|
45 |
|
|
|
168 |
|
|
|
136 |
|
|
|
(33 |
) |
|
Deferred
revenue |
|
(366 |
) |
|
|
442 |
|
|
|
883 |
|
|
|
708 |
|
|
Accounts
payable and accrued expenses |
|
811 |
|
|
|
(313 |
) |
|
|
2,210 |
|
|
|
166 |
|
|
Accrued
payroll and related expenses |
|
2,722 |
|
|
|
1,485 |
|
|
|
2,718 |
|
|
|
1,901 |
|
|
Share-based compensation liability payments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(86,684 |
) |
|
Parent
receivables and payables, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(9,112 |
) |
|
Net cash
provided by (used in) operating activities |
|
10,718 |
|
|
|
4,329 |
|
|
|
38,101 |
|
|
|
(48,122 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Purchases
of property and equipment |
|
(156 |
) |
|
|
(482 |
) |
|
|
(1,315 |
) |
|
|
(4,995 |
) |
|
Additions
to capitalized software |
|
(109 |
) |
|
|
(582 |
) |
|
|
(1,247 |
) |
|
|
(4,545 |
) |
|
Collections on note receivable - Parent |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
36,380 |
|
|
Net cash
(used in) provided by investing activities |
|
(265 |
) |
|
|
(1,064 |
) |
|
|
(2,562 |
) |
|
|
26,840 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Borrowings on revolver |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
50,000 |
|
|
Repayments on revolver |
|
- |
|
|
|
(15,000 |
) |
|
|
(26,000 |
) |
|
|
(24,000 |
) |
|
Cash paid
for debt issuance costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,100 |
) |
|
Purchase
of treasury stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,600 |
) |
|
Cash
received from exercise of stock options |
|
872 |
|
|
|
598 |
|
|
|
3,289 |
|
|
|
846 |
|
|
Cash
received from employee stock purchase plan |
|
- |
|
|
|
- |
|
|
|
464 |
|
|
|
- |
|
|
Cash
received from deferred stock units |
|
75 |
|
|
|
- |
|
|
|
75 |
|
|
|
- |
|
|
Borrowings on note payable - Parent |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
28,664 |
|
|
Payments
on note payable - Parent |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(28,664 |
) |
|
Contributions from Parent |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,000 |
|
|
Dividends
paid to Parent and others |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(19,730 |
) |
|
Net cash
provided by (used in) financing activities |
|
947 |
|
|
|
(14,402 |
) |
|
|
(22,172 |
) |
|
|
8,416 |
|
|
Currency
effect on cash and cash equivalents |
|
3 |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
Net
increase (decrease) in cash and cash equivalents |
|
11,403 |
|
|
|
(11,137 |
) |
|
|
13,370 |
|
|
|
(12,866 |
) |
|
|
|
|
|
|
|
|
|
|
Beginning cash and cash
equivalents |
|
8,438 |
|
|
|
17,608 |
|
|
|
6,471 |
|
|
|
19,337 |
|
|
Ending cash and cash
equivalents |
$ |
19,841 |
|
|
$ |
6,471 |
|
|
$ |
19,841 |
|
|
$ |
6,471 |
|
|
|
|
CommerceHub, Inc. |
|
Supplemental Information |
|
(in thousands) |
|
(unaudited) |
|
|
|
3 months ended: |
|
12 months ended: |
|
|
12/31/17 |
|
12/31/16 |
|
% Inc (Dec) |
|
12/31/17 |
|
12/31/16 |
|
% Inc (Dec) |
|
|
Revenue by type:
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core drop-ship
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Order fee
revenue |
$ |
22,573 |
|
|
$ |
19,569 |
|
|
15 |
% |
|
$ |
59,788 |
|
|
$ |
52,095 |
|
|
15 |
% |
|
|
Subscription and other platform revenue |
|
9,797 |
|
|
|
9,195 |
|
|
7 |
% |
|
|
35,224 |
|
|
|
32,617 |
|
|
8 |
% |
|
|
Set-up
and professional services revenue |
|
1,987 |
|
|
|
1,387 |
|
|
43 |
% |
|
|
7,047 |
|
|
|
5,692 |
|
|
24 |
% |
|
|
Total
core drop-ship revenue |
|
34,357 |
|
|
|
30,151 |
|
|
14 |
% |
|
|
102,059 |
|
|
|
90,404 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
channel revenue |
|
2,374 |
|
|
|
2,730 |
|
|
-13 |
% |
|
|
9,062 |
|
|
|
10,148 |
|
|
-11 |
% |
|
|
Total |
$ |
36,731 |
|
|
$ |
32,881 |
|
|
12 |
% |
|
$ |
111,121 |
|
|
$ |
100,552 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drop-ship order count
growth |
|
15 |
% |
|
|
16 |
% |
|
|
|
|
16 |
% |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the fourth quarter of 2017, we updated the way in which
we present revenue by type. To provide additional clarity over this
change, we have provided supplemental revenue disclosures at the
end of this earnings release to disclose our historical revenue by
type for the periods presented above, as well as amounts previously
reported that conform to our current presentation of revenue by
type. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
|
|
12 months ended: |
|
|
|
|
12/31/17 |
|
12/31/16 |
|
|
|
12/31/17 |
|
12/31/16 |
|
|
Share-based
compensation: |
|
|
|
|
|
|
|
|
|
Cost of
revenue |
$ |
97 |
|
|
$ |
105 |
|
|
|
|
$ |
396 |
|
|
$ |
(102 |
) |
|
|
|
|
Research
and development |
|
341 |
|
|
|
564 |
|
|
|
|
|
1,728 |
|
|
|
2,261 |
|
|
|
|
|
Sales and
marketing |
|
5 |
|
|
|
130 |
|
|
|
|
|
553 |
|
|
|
834 |
|
|
|
|
|
General
and administrative |
|
1,200 |
|
|
|
1,738 |
|
|
|
|
|
5,952 |
|
|
|
8,297 |
|
|
|
|
|
Total |
$ |
1,643 |
|
|
$ |
2,537 |
|
|
|
|
$ |
8,629 |
|
|
$ |
11,290 |
|
|
|
|
|
CommerceHub, Inc. |
GAAP to Non-GAAP Reconciliations |
(in thousands) |
(unaudited) |
|
|
Reconciliation of GAAP gross profit to adjusted gross
profit: |
|
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Gross
profit |
$ |
31,314 |
|
|
$ |
26,986 |
|
|
$ |
89,521 |
|
|
$ |
77,495 |
|
|
Share-based
compensation |
|
97 |
|
|
|
105 |
|
|
|
396 |
|
|
|
(102 |
) |
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
188 |
|
|
|
- |
|
|
|
750 |
|
|
Restructuring charges
(1) |
|
246 |
|
|
|
- |
|
|
|
486 |
|
|
|
- |
|
|
Adjusted
gross profit |
$ |
31,657 |
|
|
$ |
27,279 |
|
|
$ |
90,403 |
|
|
$ |
78,143 |
|
|
|
|
|
|
|
|
|
|
Adjusted gross
margin |
|
86 |
% |
|
|
83 |
% |
|
|
81 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to adjusted
operating expenses: |
|
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Operating expenses |
$ |
16,274 |
|
|
$ |
15,181 |
|
|
$ |
63,055 |
|
|
$ |
60,803 |
|
|
Share-based
compensation |
|
(1,546 |
) |
|
|
(2,432 |
) |
|
|
(8,233 |
) |
|
|
(11,392 |
) |
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
(250 |
) |
|
|
- |
|
|
|
(1,000 |
) |
|
Restructuring charges
(1) |
|
(957 |
) |
|
|
- |
|
|
|
(1,793 |
) |
|
|
- |
|
|
Adjusted
operating expenses |
$ |
13,771 |
|
|
$ |
12,499 |
|
|
$ |
53,029 |
|
|
$ |
48,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to adjusted
EBITDA: |
|
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Net
income |
$ |
3,166 |
|
|
$ |
5,952 |
|
|
$ |
9,858 |
|
|
$ |
9,096 |
|
|
Interest expense,
net |
|
128 |
|
|
|
302 |
|
|
|
732 |
|
|
|
434 |
|
|
Income tax expense |
|
11,746 |
|
|
|
5,551 |
|
|
|
15,876 |
|
|
|
7,162 |
|
|
Depreciation and
amortization |
|
1,754 |
|
|
|
2,488 |
|
|
|
8,032 |
|
|
|
9,803 |
|
|
Share-based
compensation |
|
1,643 |
|
|
|
2,537 |
|
|
|
8,629 |
|
|
|
11,290 |
|
|
Restructuring charges
(1) |
|
1,203 |
|
|
|
- |
|
|
|
2,279 |
|
|
|
- |
|
|
Adjusted
EBITDA |
$ |
19,640 |
|
|
$ |
16,830 |
|
|
$ |
45,406 |
|
|
$ |
37,785 |
|
|
Adjusted
EBITDA margin |
|
53 |
% |
|
|
51 |
% |
|
|
41 |
% |
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Restructuring charges include termination and retention
benefits and the impairment of certain capitalized software
projects in connection with our 2017 Seattle restructuring
plan. |
|
|
|
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: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Net
income |
$ |
3,166 |
|
|
$ |
5,952 |
|
|
$ |
9,858 |
|
|
$ |
9,096 |
|
|
Share-based
compensation |
|
1,643 |
|
|
|
2,537 |
|
|
|
8,629 |
|
|
|
11,290 |
|
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
438 |
|
|
|
- |
|
|
|
1,750 |
|
|
Restructuring charges
(1) |
|
1,203 |
|
|
|
- |
|
|
|
2,279 |
|
|
|
- |
|
|
Tax effect of
adjustments (2) |
|
(1,794 |
) |
|
|
(240 |
) |
|
|
(5,218 |
) |
|
|
(4,557 |
) |
|
Tax effects of federal
tax reform and other deferred tax charges (3) |
|
6,437 |
|
|
|
- |
|
|
|
6,437 |
|
|
|
- |
|
|
Adjusted
net income |
$ |
10,655 |
|
|
$ |
8,687 |
|
|
$ |
21,985 |
|
|
$ |
17,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP earnings per diluted share to
adjusted earnings per diluted share: |
|
|
|
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
GAAP
earnings per diluted share |
$ |
0.07 |
|
|
$ |
0.13 |
|
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
Share-based
compensation |
|
0.04 |
|
|
|
0.06 |
|
|
|
0.19 |
|
|
|
0.25 |
|
|
Acquisition-related
intangible amortization |
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
0.04 |
|
|
Restructuring charges
(1) |
|
0.03 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
- |
|
|
Tax effect of
adjustments (2) |
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.12 |
) |
|
|
(0.10 |
) |
|
Tax effects of federal
tax reform (3) |
|
0.14 |
|
|
|
- |
|
|
|
0.14 |
|
|
|
- |
|
|
Adjusted
earnings per diluted share |
$ |
0.23 |
|
|
$ |
0.20 |
|
|
$ |
0.49 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
Diluted share
count |
|
45,864 |
|
|
|
44,408 |
|
|
|
45,230 |
|
|
|
44,343 |
|
|
|
|
|
(1) Restructuring charges include termination and retention
benefits and the impairment of certain capitalized software
projects in connection with our 2017 Seattle restructuring
plan. |
|
(2) Adjusted earnings per diluted share assumes a tax rate of
40%. |
|
(3) Represents the effects from the change in federal
effective tax rate from 35% to 21%, which resulted in a charge to
deferred tax expense, as well as the effect of a deferred tax
charge associated with a 162(m) adjustment recorded in the fourth
quarter of 2017. |
|
|
Reconciliation of GAAP net cash provided by (used in)
operating activities to free cash flow: |
|
|
|
|
3 months ended: |
|
12 months ended: |
|
12/31/17 |
|
12/31/16 |
|
12/31/17 |
|
12/31/16 |
|
Net cash
provided by (used in) operating activities |
$ |
10,718 |
|
|
$ |
4,329 |
|
|
$ |
38,101 |
|
|
$ |
(48,122 |
) |
|
Purchases of property and equipment |
|
(156 |
) |
|
|
(482 |
) |
|
|
(1,315 |
) |
|
|
(4,995 |
) |
|
Additions to capitalized software |
|
(109 |
) |
|
|
(582 |
) |
|
|
(1,247 |
) |
|
|
(4,545 |
) |
|
Free cash
flow (1) |
$ |
10,453 |
|
|
$ |
3,265 |
|
|
$ |
35,539 |
|
|
$ |
(57,662 |
) |
|
|
(1) Includes
share-based compensation liability payments of: |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(86,684 |
) |
|
|
|
|
CommerceHub, Inc. |
Supplemental Revenue Information |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical presentation of revenue by
type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
12 months ended: |
|
|
|
|
|
|
|
|
|
|
|
|
12/31/17 |
|
12/31/16 |
|
% Inc (Dec) |
|
12/31/17 |
|
12/31/16 |
|
% Inc (Dec) |
|
|
|
|
|
|
|
|
|
|
|
Revenue by type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Usage
revenue |
$ |
27,751 |
|
|
$ |
24,661 |
|
|
|
13 |
% |
|
$ |
75,996 |
|
|
$ |
69,098 |
|
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue |
|
6,933 |
|
|
|
6,737 |
|
|
|
3 |
% |
|
|
27,759 |
|
|
|
25,503 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Set-up
and professional services revenue |
|
2,047 |
|
|
|
1,483 |
|
|
|
38 |
% |
|
|
7,366 |
|
|
|
5,951 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total
revenue |
$ |
36,731 |
|
|
$ |
32,881 |
|
|
|
12 |
% |
|
$ |
111,121 |
|
|
$ |
100,552 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by type for previously reported periods under
current presentation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months ended: |
|
|
9/30/17 |
|
6/30/17 |
|
3/31/17 |
|
12/31/16 |
|
9/30/16 |
|
6/30/16 |
|
3/31/16 |
|
12/31/15 |
|
9/30/15 |
|
6/30/15 |
|
3/31/15 |
|
Revenue by type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core drop-ship
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Order fee
revenue |
$ |
12,276 |
|
|
$ |
12,901 |
|
|
$ |
12,038 |
|
|
$ |
19,569 |
|
|
$ |
10,900 |
|
|
$ |
11,227 |
|
|
$ |
10,399 |
|
|
$ |
17,070 |
|
$ |
9,414 |
|
$ |
9,683 |
|
$ |
9,102 |
|
Subscription and other platform revenue |
|
8,544 |
|
|
|
8,432 |
|
|
|
8,451 |
|
|
|
9,195 |
|
|
|
8,053 |
|
|
|
7,827 |
|
|
|
7,542 |
|
|
|
7,728 |
|
|
6,767 |
|
|
6,529 |
|
|
6,474 |
|
Set-up
and professional services revenue |
|
1,713 |
|
|
|
1,622 |
|
|
|
1,725 |
|
|
|
1,387 |
|
|
|
1,431 |
|
|
|
1,491 |
|
|
|
1,383 |
|
|
|
1,238 |
|
|
1,106 |
|
|
1,055 |
|
|
894 |
|
Total
core drop-ship revenue |
|
22,533 |
|
|
|
22,955 |
|
|
|
22,214 |
|
|
|
30,151 |
|
|
|
20,384 |
|
|
|
20,545 |
|
|
|
19,324 |
|
|
|
26,036 |
|
|
17,287 |
|
|
17,267 |
|
|
16,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
channel revenue |
|
2,081 |
|
|
|
2,253 |
|
|
|
2,354 |
|
|
|
2,730 |
|
|
|
2,094 |
|
|
|
2,558 |
|
|
|
2,766 |
|
|
|
3,235 |
|
|
2,408 |
|
|
2,591 |
|
|
2,320 |
|
Total |
$ |
24,614 |
|
|
$ |
25,208 |
|
|
$ |
24,568 |
|
|
$ |
32,881 |
|
|
$ |
22,478 |
|
|
$ |
23,103 |
|
|
$ |
22,090 |
|
|
$ |
29,271 |
|
$ |
19,695 |
|
$ |
19,858 |
|
$ |
18,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drop-ship order count
growth |
|
15 |
% |
|
|
17 |
% |
|
|
18 |
% |
|
|
16 |
% |
|
|
16 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercehub Inc (NASDAQ:CHUBA)
Historical Stock Chart
From May 2024 to Jun 2024
Commercehub Inc (NASDAQ:CHUBA)
Historical Stock Chart
From Jun 2023 to Jun 2024