LogMeIn, Inc. (NASDAQ: LOGM), a leading provider of cloud-based
connectivity, today announced its results for the fourth quarter
and fiscal year ended December 31, 2018.
Fourth quarter 2018 highlights include:
- GAAP revenue was $310.2 million and non-GAAP revenue was $310.7
million
- GAAP net income was $25.4 million or $0.49 per diluted share
and non-GAAP net income was $75.5 million or $1.47 per diluted
share
- EBITDA was $97.4 million or 31.4% of GAAP revenue and Adjusted
EBITDA was $118.7 million or 38.2% of non-GAAP revenue
- Cash flow from operations was $73.2 million or 23.5% of
non-GAAP revenue, and Adjusted cash flow from operations was $86.8
million or 27.9% of non-GAAP revenue
- Total GAAP deferred revenue was $379.3 million
- The Company closed the quarter with cash and cash equivalents
of $148.7 million and $200.0 million of borrowings under its
existing credit agreement
Fiscal year 2018 highlights include:
- GAAP revenue was $1.204 billion and non-GAAP revenue was $1.208
billion
- GAAP net income was $74.4 million or $1.42 per diluted share
and non-GAAP net income was $283.0 million or $5.39 per diluted
share
- EBITDA was $387.1 million or 32.2% of GAAP revenue and Adjusted
EBITDA was $446.1 million or 36.9% of Non-GAAP revenue
- Cash flow from operations was $404.0 million or 33.5% of
non-GAAP revenue and Adjusted cash flow from operations was $443.0
million or 36.7% of non-GAAP revenue
- $309.3 million returned to stockholders; $247.1 million of
share repurchases and $62.2 million of dividends
“LogMeIn had a strong fourth quarter with all key metrics
exceeding guidance, and perhaps more importantly, we closed the
year with significant momentum in each of our growth markets,” said
Bill Wagner, President and CEO of LogMeIn. “As we enter 2019,
we believe we are poised to enter a new era of growth in which
LogMeIn can achieve leadership positions in Unified Communications
& Collaboration, Identity and Access Management, and Customer
Engagement and Support. We are now embarking on an investment
plan designed to accelerate growth in ways that we expect will
allow us to exit 2019 growing more rapidly and give us a line of
sight to double-digit organic growth.”
Chairman Succession Plan The Company is
announcing a board succession plan whereby the Company’s co-founder
and Chairman, Michael K. Simon, will resign from the board,
effective upon the conclusion of the Company’s Annual Meeting of
Stockholders on May 30, 2019 and his position as Chairman effective
March 1, 2019. The Board has named Robert Calderoni, who is
currently serving as a member of the Board, to succeed Mr. Simon as
the Company’s Chairman.
“The success of LogMeIn is one of the brightest spots of my
career in technology, and it has been my privilege to work with
such an amazing group of talented people around the world. As
I step down to pursue a new personal business interest, I leave
with the utmost confidence in the executive leadership team,” said
Michael Simon, co-founder of LogMeIn. “I fully support our
strategic plans to invest in growth and believe they will lead to
the creation of long-term enduring value”.
Restructuring PlanIn order to help fund these
growth initiatives, the Company will undertake a global
restructuring plan designed to streamline our organization and
reallocate resources to better align with our growth acceleration
goals. The Company expects to substantially complete this
restructuring by the end of fiscal year 2019. Upon completion
of the plan, the Company expects to achieve annualized cost savings
of approximately $26 million.
DividendIn accordance with its previously
announced capital return plan, the Company will pay a $0.325 per
share dividend on March 12, 2019 to stockholders of record as of
February 25, 2019. The Company currently has approximately
50.8 million shares of common stock outstanding.
Business OutlookBased on information available
as of February 14, 2019, the Company is issuing guidance for the
first quarter 2019 and fiscal year 2019.
First Quarter 2019: The Company expects first quarter non-GAAP
revenue to be in the range of $304 million to $306 million.
The Company expects first quarter GAAP revenue to be in the range
of $303 million to $305 million. Non-GAAP revenue adds back
$1 million for the impact of an acquisition accounting adjustment
recorded to reduce acquired deferred revenue to the fair value of
the remaining obligation.
EBITDA is expected to be in the range of $65 million to $67
million, or approximately 22% of GAAP revenue. Adjusted
EBITDA is expected to be in the range of $94 million to $96
million, or approximately 31% of non-GAAP revenue.
Non-GAAP net income is expected to be in the range of $57
million to $59 million, or $1.12 to $1.15 per diluted share.
Non-GAAP net income adds back the non-GAAP revenue adjustment
described above and excludes an estimated $16 million in
stock-based compensation expense, $3 million in acquisition and
litigation-related costs, $61 million of amortization expense of
acquired intangible assets, and $9 million of restructuring
charges, as well as the income tax effect of the above items.
Non-GAAP net income for the first quarter assumes an effective
tax rate of approximately 25% and GAAP net income assumes a tax
benefit of approximately $2 million for the first quarter. Non-GAAP
net income per diluted share is based on an estimated 51.1 million
fully-diluted weighted average shares outstanding. GAAP net
loss per share is based on an estimated 50.7 million weighted
average shares outstanding.
Including stock-based compensation expense, acquisition-related
costs and amortization, litigation-related expense, and
restructuring charges, the Company expects to report GAAP net loss
in the range of $11 million to $9 million, or $0.21 to $0.17 per
share.
Fiscal year 2019: The Company expects full year 2019 non-GAAP
revenue to be in the range of $1.250 billion to $1.260
billion. The Company expects full year 2019 GAAP revenue to
be in the range of $1.249 billion to $1.259 billion. Non-GAAP
revenue adds back $1 million for the impact of an acquisition
accounting adjustment recorded to reduce acquired deferred revenue
to the fair value of the remaining obligation.
EBITDA is expected to be in the range of $300 million to $305
million, or approximately 24% of GAAP revenue. Adjusted
EBITDA is expected to be in the range of $407 million to $412
million, or approximately 33% of non-GAAP revenue.
Non-GAAP net income is expected to be in the range of $248
million to $252 million, or $4.90 to $4.97 per diluted share.
Non-GAAP net income adds back the non-GAAP revenue adjustment
described above and excludes an estimated $77 million in
stock-based compensation expense, $13 million in acquisition and
litigation-related costs, $244 million of amortization expense of
acquired intangible assets, and $16 million of restructuring
charges, as well as the income tax effect of the above items.
Non-GAAP net income for the fiscal year assumes an effective tax
rate of approximately 25% and GAAP net income for the fiscal year
assumes a tax benefit of approximately $1 million. Non-GAAP
net income per diluted share is based on an estimated 50.6 million
fully-diluted weighted average shares outstanding. GAAP net
loss per share is based on an estimated 49.9 million weighted
average shares outstanding.
Including stock-based compensation expense, acquisition-related
costs and amortization, litigation-related expense, and
restructuring charges, the Company expects to report GAAP net loss
in the range of $17 million to $13 million, or $0.34 to $0.25 per
share.
Conference Call Information for Today, Thursday,
February 14, 2019The Company will host a corresponding
conference call and live webcast at 5:00 p.m. Eastern Time
today. To access the conference call, dial 888-378-4398 and
enter passcode 963505. A live webcast will be available on
the Investor Relations section of the Company’s corporate website
at https://www.logmeininc.com and via replay beginning
approximately two hours after the completion of the call until the
Company’s announcement of its financial results for the next
quarter. Please note that we have also added a presentation
to our investor relations website to accompany this call. An
audio replay of the call will also be available to investors
beginning at approximately 8:00 p.m. Eastern Time on February 14,
2019 until 8:00 p.m. Eastern Time on February 21, 2019, by dialing
888-203-1112 and entering passcode 9493618.
Non-GAAP Financial MeasuresThis press release
contains non-GAAP financial measures including non-GAAP revenue,
EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin,
non-GAAP operating income, non-GAAP income before provision for
income taxes, non-GAAP provision for income taxes, non-GAAP net
income, non-GAAP net income per diluted share and adjusted cash
flow from operations.
- Non-GAAP revenue is GAAP revenue excluding the impact of fair
value acquisition accounting adjustment on acquired deferred
revenue.
- EBITDA is GAAP net income excluding provision for income taxes,
interest income, interest expense, and other (expense) income, net,
and depreciation and amortization.
- EBITDA margin is calculated by dividing EBITDA by
revenue.
- Adjusted EBITDA is EBITDA excluding the impact of fair value
acquisition accounting adjustment on acquired deferred revenue,
acquisition-related costs, gain on disposition of non-core assets,
stock-based compensation expense, restructuring charges, and
litigation-related expense.
- Adjusted EBITDA margin is calculated by dividing adjusted
EBITDA by non-GAAP revenue, or GAAP revenue if not different.
- Non-GAAP operating income excludes the impact of fair value
acquisition accounting adjustment on acquired deferred revenue,
acquisition related costs and amortization, gain on disposition of
non-core assets, stock-based compensation expense, restructuring
charges, and litigation-related expense and includes amortization
expense for GoTo’s internally capitalized software development
costs that were adjusted in acquisition accounting to fair
value.
- Non-GAAP provision for income taxes excludes the tax impact of
the fair value acquisition accounting adjustment on acquired
deferred revenue, acquisition-related costs and amortization, gain
on disposition of non-core assets, stock-based compensation
expense, restructuring charges, litigation-related expense,
discrete integration related tax impacts, and the tax impact
related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017,
and includes the tax impact of amortization expense for GoTo’s
internally capitalized software development costs that were
adjusted in acquisition accounting to fair value.
- Non-GAAP net income and non-GAAP net income per diluted share
reflects the adjustments noted in non-GAAP operating income and
non-GAAP provision for income taxes above.
- Adjusted cash flow from operations excludes acquisition,
restructuring, disposition and litigation related payments.
The exclusion of certain expenses in the calculation of non-GAAP
financial measures should not be construed as an inference that
these costs are unusual or infrequent. We anticipate excluding
these expenses in the future presentation of our non-GAAP financial
measures. The Company believes that these non-GAAP measures of
financial results provide useful information to management and
investors regarding certain financial and business trends relating
to the Company's financial condition and results of operations. The
Company's management uses these non-GAAP measures to compare the
Company's performance to that of prior periods and uses these
measures in financial reports prepared for management and the
Company's board of directors. The Company 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 the Company's financial measures with other
software-as-a-service companies, many of which present similar
non-GAAP financial measures to investors. The Company does not
consider these non-GAAP measures in isolation or as an alternative
to financial measures determined in accordance with GAAP. The
principal limitation of these non-GAAP financial measures is that
they exclude significant elements that are required by GAAP to be
recorded in the Company's financial statements. In addition,
they are subject to inherent limitations as they reflect the
exercise of judgment by management in determining these non-GAAP
financial measures. In order to compensate for these
limitations, management of the Company presents its non-GAAP
financial measures in connection with its GAAP results. The
Company urges investors to review the reconciliation of its
non-GAAP financial measures to the comparable GAAP financial
measures, which it includes in press releases announcing quarterly
financial results, and not to rely on any single financial measure
to evaluate the Company's business. Reconciliation tables of the
most comparable GAAP financial measures to the non-GAAP measures
used in this press release are included in this release.
About LogMeIn, Inc.LogMeIn, Inc. (NASDAQ:LOGM)
simplifies how people connect with each other and the world around
them to drive meaningful interactions, deepen relationships, and
create better outcomes for individuals and businesses. One of the
world’s top 10 public SaaS companies, and a market leader in
unified communications and collaboration, identity and access, and
customer engagement and support solutions, LogMeIn has millions of
customers spanning virtually every country across the globe.
LogMeIn is headquartered in Boston, Massachusetts with additional
locations in North America, South America, Europe, Asia and
Australia.
Cautionary Language Concerning Forward-Looking
StatementsThis press release contains "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, including but
not limited to, statements regarding the Company’s plans and
investments to accelerate revenue growth, the Company’s global
restructuring plan and the cost savings expected to result from the
restructuring, the performance of the Company’s key growth areas,
including Customer Engagement, Identity and Unified Communications
and the Company's financial guidance for the first quarter of 2019
and fiscal year 2019. These forward-looking statements are
made as of the date they were first issued and were based on
current expectations, estimates, forecasts and projections as well
as the beliefs and assumptions of management. Words such as
"expect," "anticipate," "should," "believe," "hope," "target,"
"project," "goals," "estimate," "potential," "predict," "may,"
"will," "might," "could," "intend," variations of these terms or
the negative of these terms and similar expressions are intended to
identify these forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties, many
of which involve factors or circumstances that are beyond the
Company's control. The Company's actual results could differ
materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited
to, customer adoption of the Company's solutions, the Company’s
ability to execute on its strategic initiatives, the Company’s
ability to integrate acquired products or companies, the Company's
ability to attract new customers and retain existing customers,
adverse economic conditions in general and adverse economic
conditions specifically affecting the markets in which the Company
operates, the effectiveness of the Company’s cybersecurity
measures, the Company's ability to continue to promote and maintain
its brand in a cost-effective manner, the Company's ability to
compete effectively, the Company's ability to develop and introduce
new products and add-ons or enhancements to existing products, the
Company's ability to manage growth, the Company's ability to
attract and retain key personnel, the Company's ability to protect
its intellectual property and other proprietary rights, the result
of any pending litigation including intellectual property
litigation, and other risks detailed in the Company's other
publicly available filings with the Securities and Exchange
Commission. Past performance is not necessarily indicative of
future results. The forward-looking statements included in
this press release represent the Company's views as of the date of
this press release. The Company anticipates that subsequent
events and developments will cause its views to change. The Company
undertakes no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. These forward-looking statements
should not be relied upon as representing the Company's views as of
any date subsequent to the date of this press release.
LogMeIn is a registered trademark of LogMeIn,
Inc. in the US and other countries around the world.
Contact Information:Investors Rob
Bradley LogMeIn,
Inc.781-897-1301rbradley@LogMeIn.com
PressCraig VerColenLogMeIn,
Inc.781-897-0696Press@LogMeIn.com
|
LogMeIn, Inc. |
Condensed Consolidated Balance Sheets
(unaudited) |
(In thousands) |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
ASSETS |
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
252,402 |
|
|
$ |
148,652 |
|
Accounts
receivable, net |
|
93,949 |
|
|
|
95,354 |
|
Prepaid expenses
and other current assets |
|
52,473 |
|
|
|
83,887 |
|
Total current assets |
|
398,824 |
|
|
|
327,893 |
|
Property and equipment,
net |
|
92,154 |
|
|
|
98,238 |
|
Restricted cash, net of
current portion |
|
1,795 |
|
|
|
1,840 |
|
Intangibles, net |
|
1,149,597 |
|
|
|
1,059,988 |
|
Goodwill |
|
2,208,725 |
|
|
|
2,400,390 |
|
Other assets |
|
6,483 |
|
|
|
41,545 |
|
Deferred tax
assets |
|
530 |
|
|
|
6,059 |
|
Total assets |
$ |
3,858,108 |
|
|
$ |
3,935,953 |
|
|
|
|
|
LIABILITIES AND EQUITY |
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
22,232 |
|
|
$ |
35,447 |
|
Accrued
liabilities |
|
82,426 |
|
|
|
119,379 |
|
Deferred
revenue, current portion |
|
340,570 |
|
|
|
369,780 |
|
Total current liabilities |
|
445,228 |
|
|
|
524,606 |
|
Long-term debt |
|
- |
|
|
|
200,000 |
|
Deferred revenue, net
of current portion |
|
6,735 |
|
|
|
9,518 |
|
Deferred tax
liabilities |
|
221,407 |
|
|
|
201,212 |
|
Other long-term
liabilities |
|
20,997 |
|
|
|
25,929 |
|
Total liabilities |
|
694,367 |
|
|
|
961,265 |
|
Equity: |
|
|
|
Common
stock |
|
560 |
|
|
|
567 |
|
Additional
paid-in capital |
|
3,276,891 |
|
|
|
3,316,603 |
|
Accumulated
earnings |
|
50,445 |
|
|
|
84,043 |
|
Accumulated
other comprehensive income |
|
15,570 |
|
|
|
2,133 |
|
Treasury
stock |
|
(179,725 |
) |
|
|
(428,658 |
) |
Total equity |
|
3,163,741 |
|
|
|
2,974,688 |
|
Total liabilities and
equity |
$ |
3,858,108 |
|
|
$ |
3,935,953 |
|
|
|
|
|
LogMeIn, Inc. |
Condensed Consolidated Statements of
Operations (unaudited) |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
276,036 |
|
|
$ |
310,198 |
|
|
$ |
989,786 |
|
|
$ |
1,203,992 |
|
Cost of revenue |
|
55,423 |
|
|
|
72,854 |
|
|
|
203,203 |
|
|
|
281,481 |
|
Gross profit |
|
220,613 |
|
|
|
237,344 |
|
|
|
786,583 |
|
|
|
922,511 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and
development |
|
40,296 |
|
|
|
40,153 |
|
|
|
156,731 |
|
|
|
169,409 |
|
Sales and
marketing |
|
88,345 |
|
|
|
100,399 |
|
|
|
346,961 |
|
|
|
382,997 |
|
General and
administrative |
|
39,906 |
|
|
|
33,462 |
|
|
|
160,366 |
|
|
|
145,453 |
|
Gain on
disposition of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33,910 |
) |
Amortization of
acquired intangibles |
|
37,155 |
|
|
|
43,841 |
|
|
|
134,342 |
|
|
|
172,539 |
|
Total operating expenses |
|
205,702 |
|
|
|
217,855 |
|
|
|
798,400 |
|
|
|
836,488 |
|
Income (loss) from
operations |
|
14,911 |
|
|
|
19,489 |
|
|
|
(11,817 |
) |
|
|
86,023 |
|
Interest
income |
|
465 |
|
|
|
337 |
|
|
|
1,389 |
|
|
|
1,671 |
|
Interest
expense |
|
(320 |
) |
|
|
(2,128 |
) |
|
|
(1,408 |
) |
|
|
(6,342 |
) |
Other income
(expense), net |
|
(114 |
) |
|
|
(153 |
) |
|
|
(141 |
) |
|
|
(556 |
) |
Income (loss) before
income taxes |
|
14,942 |
|
|
|
17,545 |
|
|
|
(11,977 |
) |
|
|
80,796 |
|
(Provision for) benefit
from income taxes |
|
78,379 |
|
|
|
7,843 |
|
|
|
111,500 |
|
|
|
(6,425 |
) |
Net income (loss) |
$ |
93,321 |
|
|
$ |
25,388 |
|
|
$ |
99,523 |
|
|
$ |
74,371 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
Basic |
$ |
1.77 |
|
|
$ |
0.50 |
|
|
$ |
1.97 |
|
|
$ |
1.44 |
|
Diluted |
$ |
1.74 |
|
|
$ |
0.49 |
|
|
$ |
1.93 |
|
|
$ |
1.42 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
52,615 |
|
|
|
50,995 |
|
|
|
50,433 |
|
|
|
51,814 |
|
Diluted |
|
53,614 |
|
|
|
51,353 |
|
|
|
51,463 |
|
|
|
52,496 |
|
|
|
|
|
|
|
|
|
LogMeIn, Inc. |
Calculation of Non-GAAP Revenue
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
GAAP
Revenue |
$ |
276,036 |
|
|
$ |
310,198 |
|
|
$ |
989,786 |
|
|
$ |
1,203,992 |
|
|
Add Back: |
|
|
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
3,887 |
|
|
|
533 |
|
|
|
34,314 |
|
|
|
3,718 |
|
Non-GAAP
Revenue |
$ |
279,923 |
|
|
$ |
310,731 |
|
|
$ |
1,024,100 |
|
|
$ |
1,207,710 |
|
|
|
|
|
|
|
|
|
|
Calculation of Non-GAAP Operating Income,
Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
(In thousands, except per share data) |
|
(In thousands, except per share data) |
GAAP Net
income (loss) from operations |
$ |
14,911 |
|
|
$ |
19,489 |
|
|
$ |
(11,817 |
) |
|
$ |
86,023 |
|
|
Add Back: |
|
|
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
3,887 |
|
|
|
533 |
|
|
|
34,314 |
|
|
|
3,718 |
|
|
Stock-based
compensation expense |
|
18,037 |
|
|
|
16,914 |
|
|
|
67,292 |
|
|
|
65,734 |
|
|
Acquisition related
costs |
|
8,410 |
|
|
|
3,806 |
|
|
|
59,802 |
|
|
|
22,880 |
|
|
Litigation related
expenses |
|
988 |
|
|
|
107 |
|
|
|
2,348 |
|
|
|
584 |
|
|
Amortization of
acquired intangibles |
|
50,415 |
|
|
|
62,158 |
|
|
|
183,018 |
|
|
|
245,244 |
|
|
Gain on disposition of
assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33,910 |
) |
|
Effect of acquisition
accounting on internally capitalized software development
costs |
|
(4,067 |
) |
|
|
(749 |
) |
|
|
(20,092 |
) |
|
|
(8,385 |
) |
Non-GAAP
Operating income |
|
92,581 |
|
|
|
102,258 |
|
|
|
314,865 |
|
|
|
381,888 |
|
|
Interest and other
income (expense), net |
|
31 |
|
|
|
(1,944 |
) |
|
|
(160 |
) |
|
|
(5,227 |
) |
Non-GAAP
Income before income taxes |
|
92,612 |
|
|
|
100,314 |
|
|
|
314,705 |
|
|
|
376,661 |
|
|
Non-GAAP Provision for
income taxes (1) |
|
(28,108 |
) |
|
|
(24,828 |
) |
|
|
(95,513 |
) |
|
|
(93,637 |
) |
Non-GAAP
Net income |
$ |
64,504 |
|
|
$ |
75,486 |
|
|
$ |
219,192 |
|
|
$ |
283,024 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net income per diluted share |
$ |
1.20 |
|
|
$ |
1.47 |
|
|
$ |
4.26 |
|
|
$ |
5.39 |
|
Diluted
weighted average shares outstanding used in |
|
|
|
|
|
|
|
computing per share amounts |
|
53,614 |
|
|
|
51,353 |
|
|
|
51,463 |
|
|
|
52,496 |
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Non-GAAP provision for income taxes excludes a net tax benefit
of $86 million related to the U.S. Tax Act recorded in the fourth
quarter of 2017 and a net tax benefit of $11 million related to an
integration-related realignment of some of the Company's
intellectual property recorded in the fourth quarter of
2018. |
|
|
|
|
|
|
|
|
|
|
|
Calculation of EBITDA and Adjusted EBITDA
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
GAAP Net
income (loss) |
$ |
93,321 |
|
|
$ |
25,388 |
|
|
$ |
99,523 |
|
|
$ |
74,371 |
|
|
Add Back: |
|
|
|
|
|
|
|
|
Interest and other
(income) expense, net |
|
(31 |
) |
|
|
1,944 |
|
|
|
160 |
|
|
|
5,227 |
|
|
Income tax provision
(benefit) |
|
(78,379 |
) |
|
|
(7,843 |
) |
|
|
(111,500 |
) |
|
|
6,425 |
|
|
Amortization of
acquired intangibles |
|
50,415 |
|
|
|
62,158 |
|
|
|
183,018 |
|
|
|
245,244 |
|
|
Depreciation and
amortization expense |
|
12,146 |
|
|
|
15,732 |
|
|
|
38,303 |
|
|
|
55,827 |
|
EBITDA |
|
77,472 |
|
|
|
97,379 |
|
|
|
209,504 |
|
|
|
387,094 |
|
|
Add Back: |
|
|
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
3,887 |
|
|
|
533 |
|
|
|
34,314 |
|
|
|
3,718 |
|
|
Stock-based
compensation expense |
|
18,037 |
|
|
|
16,914 |
|
|
|
67,292 |
|
|
|
65,734 |
|
|
Gain on disposition of
assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33,910 |
) |
|
Acquisition related
costs |
|
8,410 |
|
|
|
3,806 |
|
|
|
59,802 |
|
|
|
22,880 |
|
|
Litigation related
expenses |
|
988 |
|
|
|
107 |
|
|
|
2,348 |
|
|
|
584 |
|
Adjusted
EBITDA |
$ |
108,794 |
|
|
$ |
118,739 |
|
|
$ |
373,260 |
|
|
$ |
446,100 |
|
EBITDA Margin |
|
28.1 |
% |
|
|
31.4 |
% |
|
|
21.2 |
% |
|
|
32.2 |
% |
Adjusted EBITDA Margin |
|
38.9 |
% |
|
|
38.2 |
% |
|
|
36.4 |
% |
|
|
36.9 |
% |
|
|
|
|
|
|
|
|
|
Stock-Based Compensation Expense
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
Cost
of revenue |
$ |
1,311 |
|
|
$ |
1,242 |
|
|
$ |
5,222 |
|
|
$ |
4,997 |
|
Research and development |
|
6,061 |
|
|
|
4,637 |
|
|
|
22,103 |
|
|
|
18,869 |
|
Sales and marketing |
|
4,047 |
|
|
|
4,207 |
|
|
|
16,155 |
|
|
|
15,995 |
|
General and administrative |
|
6,618 |
|
|
|
6,828 |
|
|
|
23,812 |
|
|
|
25,873 |
|
Total stock based-compensation |
$ |
18,037 |
|
|
$ |
16,914 |
|
|
$ |
67,292 |
|
|
$ |
65,734 |
|
|
|
|
|
|
|
|
|
|
LogMeIn, Inc. |
Calculation of Projected 2019 Non-GAAP Revenue
(unaudited) |
(In millions) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
March 31, 2019 |
|
December 31, 2019 |
|
|
|
|
|
GAAP
Revenue |
$303 -
$305 |
|
$1,249
- $1,259 |
|
Add Back: |
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
1 |
|
1 |
Non-GAAP
Revenue |
$304 - $306 |
|
$1,250 - $1,260 |
|
|
|
|
|
Calculation of Projected 2019 Non-GAAP Net
Income and Non-GAAP Net Income per Diluted Share
(unaudited) |
(In millions, except per share
data) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
March 31, 2019 |
|
December 31, 2019 |
|
|
|
|
|
GAAP Net
loss |
$(11)
- $(9) |
|
$(17)
- $(13) |
|
Add Back: |
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
1 |
|
1 |
|
Stock-based
compensation expense |
16 |
|
77 |
|
Acquisition and
litigation related costs |
3 |
|
13 |
|
Amortization of
acquired intangibles |
61 |
|
244 |
|
Restructuring
charges |
9 |
|
16 |
|
Income tax effect of
non-GAAP items |
(22) |
|
(86) |
Non-GAAP
Net income |
$57 - $59 |
|
$248 - $252 |
|
|
|
|
|
GAAP net
loss per share |
$(0.21) - $(0.17) |
|
$(0.34) - $(0.25) |
Non-GAAP
net income per diluted share |
$1.12
- $1.15 |
|
$4.90
- $4.97 |
Weighted
average shares outstanding used in computing net loss per
share |
50.7 |
|
49.9 |
Diluted
weighted average shares outstanding used in computing net income
per share |
51.1 |
|
50.6 |
|
|
|
|
|
Calculation of Projected 2019 EBITDA and
Adjusted EBITDA (unaudited) |
(In millions) |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
March 31, 2019 |
|
December 31, 2019 |
|
|
|
|
|
GAAP Net
loss |
$(11)
- $(9) |
|
$(17)
- $(13) |
|
Add Back: |
|
|
|
|
Interest and other
(income) expense, net |
2 |
|
8 |
|
Income tax provision
(benefit) |
(2) |
|
(1) |
|
Amortization of
acquired intangibles |
61 |
|
244 |
|
Depreciation and
amortization expense |
15 |
|
66 |
EBITDA |
$65 -
$67 |
|
$300 -
$305 |
|
Add Back: |
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
1 |
|
1 |
|
Stock-based
compensation expense |
16 |
|
77 |
|
Acquisition and
litigation related costs |
3 |
|
13 |
|
Restructuring
charges |
9 |
|
16 |
Adjusted
EBITDA |
$94 - $96 |
|
$407 - $412 |
|
EBITDA
Margin |
22% |
|
24% |
|
Adjusted
EBITDA Margin |
31% |
|
33% |
|
|
|
|
|
LogMeIn, Inc. |
Condensed Consolidated Statements of Cash
Flows (unaudited) |
(In thousands) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net
income |
$ |
93,321 |
|
|
$ |
25,388 |
|
|
$ |
99,523 |
|
|
$ |
74,371 |
|
Adjustments
to reconcile net income to net cash |
|
|
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
Stock-based compensation |
|
18,037 |
|
|
|
16,914 |
|
|
|
67,292 |
|
|
|
65,734 |
|
Depreciation and amortization |
|
62,560 |
|
|
|
77,889 |
|
|
|
221,321 |
|
|
|
301,071 |
|
Gain
on disposition of assets, excluding transaction costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(36,281 |
) |
Benefit from deferred income taxes |
|
(109,172 |
) |
|
|
(23,395 |
) |
|
|
(156,831 |
) |
|
|
(57,456 |
) |
Other, net |
|
660 |
|
|
|
490 |
|
|
|
2,266 |
|
|
|
1,771 |
|
Changes in assets and liabilities, excluding effect of acquisitions
and dispositions: |
|
|
|
|
|
|
|
Accounts receivable |
|
(10,138 |
) |
|
|
(8,551 |
) |
|
|
(16,618 |
) |
|
|
7,751 |
|
Prepaid expenses and other current assets |
|
(18,212 |
) |
|
|
(22,145 |
) |
|
|
(22,819 |
) |
|
|
(13,671 |
) |
Other assets |
|
578 |
|
|
|
(3,765 |
) |
|
|
1,569 |
|
|
|
(16,596 |
) |
Accounts payable |
|
(15,158 |
) |
|
|
(2,471 |
) |
|
|
(5,004 |
) |
|
|
11,104 |
|
Accrued liabilities |
|
(21,232 |
) |
|
|
5,697 |
|
|
|
15,354 |
|
|
|
26,811 |
|
Deferred revenue |
|
17,901 |
|
|
|
7,385 |
|
|
|
93,036 |
|
|
|
35,416 |
|
Other long-term liabilities |
|
13,792 |
|
|
|
(261 |
) |
|
|
17,108 |
|
|
|
4,014 |
|
Net cash provided by operating activities (1) |
|
32,937 |
|
|
|
73,175 |
|
|
|
316,197 |
|
|
|
404,039 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Proceeds
from sale or disposal or maturity of marketable securities |
|
13,995 |
|
|
|
- |
|
|
|
55,598 |
|
|
|
- |
|
Purchases
of property and equipment |
|
(13,313 |
) |
|
|
(9,375 |
) |
|
|
(36,635 |
) |
|
|
(30,965 |
) |
Intangible
asset additions |
|
(7,813 |
) |
|
|
(8,081 |
) |
|
|
(29,706 |
) |
|
|
(34,219 |
) |
Cash paid
for acquisition, net of cash acquired |
|
(3,188 |
) |
|
|
- |
|
|
|
(22,348 |
) |
|
|
(342,072 |
) |
Restricted
cash acquired through acquisitions |
|
202 |
|
|
|
- |
|
|
|
1,181 |
|
|
|
- |
|
Proceeds
from disposition of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
42,394 |
|
Net cash used in investing activities |
|
(10,117 |
) |
|
|
(17,456 |
) |
|
|
(31,910 |
) |
|
|
(364,862 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
Borrowings
under credit facility |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
200,000 |
|
Repayments
under credit facility |
|
- |
|
|
|
- |
|
|
|
(30,000 |
) |
|
|
- |
|
Proceeds
from issuance of common stock upon option exercises |
|
148 |
|
|
|
- |
|
|
|
6,511 |
|
|
|
3,831 |
|
Payments of
withholding taxes in connection with restricted stock unit
vesting |
|
(2,285 |
) |
|
|
(1,126 |
) |
|
|
(34,474 |
) |
|
|
(30,617 |
) |
Payment of
debt issuance costs |
|
(39 |
) |
|
|
- |
|
|
|
(2,032 |
) |
|
|
- |
|
Dividends
paid on common stock |
|
(13,151 |
) |
|
|
(15,302 |
) |
|
|
(52,269 |
) |
|
|
(62,202 |
) |
Purchase of
treasury stock |
|
(18,154 |
) |
|
|
(56,914 |
) |
|
|
(69,229 |
) |
|
|
(247,144 |
) |
Net
cash used in financing activities |
|
(33,481 |
) |
|
|
(73,342 |
) |
|
|
(181,493 |
) |
|
|
(136,132 |
) |
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
1,012 |
|
|
|
(1,336 |
) |
|
|
8,080 |
|
|
|
(6,762 |
) |
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
(9,649 |
) |
|
|
(18,959 |
) |
|
|
110,874 |
|
|
|
(103,717 |
) |
Cash, cash
equivalents and restricted cash, beginning of period |
|
263,930 |
|
|
|
169,451 |
|
|
|
143,335 |
|
|
|
254,209 |
|
Cash, cash
equivalents and restricted cash, end of period |
$ |
254,281 |
|
|
$ |
150,492 |
|
|
$ |
254,209 |
|
|
$ |
150,492 |
|
|
|
|
|
|
|
|
|
(1) Cash flows from operating activities includes the
following acquisition, disposition, and litigation-related
payments: |
(a) Cash flows from operating activities includes transaction,
transition, and integration-related payments, including
retention-based bonus payments, for acquisitions and dispositions
of $8.7 million and $1.9 million for the three months ended
December 31, 2017 and 2018, respectively and $53.0 million and
$18.7 million for the twelve months ended December 31, 2017 and
2018, respectively. |
(b) Cash flows from operating activities includes
acquisition-related retention-based bonus payments of $11.4 million
and $0.6 million for the three months ended December 31, 2017 and
2018, respectively, and $11.7 million and $3.7 million for the
twelve months ended December 31, 2017 and 2018, respectively. |
(c) Cash flows from operating activities includes
litigation-related payments of $1.1 million and $0.3 million for
the three months ended December 31, 2017 and 2018, respectively,
and $1.6 million and $1.5 million for the twelve months ended
December 31, 2017 and 2018, respectively. |
(d) Cash flows from operating activities includes tax payments
from the gain on the Xively disposition and an integration-related
realignment of some of the Company's intellectual property of $10.9
million for the three months ended December 31, 2018 and $15.1
million for the twelve months ended December 31, 2018. |
Adjusted cash flows from operations adds back the items in
(a), (b), (c), and (d) above and sums to $54.1 million and $86.8
million for the three months ended December 31, 2017 and
2018, respectively, and $382.5 million and $443.0 million for
the twelve months ended December 31, 2017 and 2018,
respectively. |
|
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