UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 21, 2015
Constant Contact, Inc.
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
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001- 33707 |
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04-3285398 |
(State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
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1601 Trapelo Road
Waltham, Massachusetts |
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02451 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (781) 472-8100
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On July 23, 2015, Constant Contact, Inc. (the Company) announced its financial results for the second quarter of 2015. The full text of the
press release issued by the Company on July 23, 2015 in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 5.02(e). |
Compensatory Arrangements of Certain Officers. |
On July 21, 2015, the Compensation Committee of the
Companys Board of Directors adopted the quarterly corporate financial targets under the Companys 2015 Executive Cash Incentive Bonus Plan (the 2015 Bonus Plan) for the second half of 2015. The quarterly corporate financial
targets under the 2015 Bonus Plan are based on corporate financial metrics, including quarterly consolidated revenue growth (QRG), which are derived from the Companys budget approved by the Board of Directors. In connection
with the adoption of the quarterly corporate financial targets under the 2015 Bonus Plan, the Compensation Committee amended the 2015 Bonus Plan by revising the scale on which bonus payments related to the QRG metric will be based in the second half
of 2015.
For the second half of 2015, bonus payments related to the QRG metric will be based on the following levels of achievement, as a percentage of
the quarterly QRG target bonus:
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Quarterly QRG Achievement |
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<60% |
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60% |
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80% |
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100% |
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120% |
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150% |
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180% |
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210% |
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240% |
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270% |
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>270% |
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Quarterly Percentage Payout |
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0 |
% |
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50 |
% |
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65 |
% |
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80 |
% |
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100 |
% |
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125 |
% |
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150 |
% |
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180 |
% |
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210 |
% |
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250 |
% |
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250 |
% |
Bonus payments for achievement between the levels described above will be made on a pro rata basis.
The levels of achievement that determined the quarterly percentage bonus payout during the first half of 2015 under the 2015 Bonus Plan were previously
disclosed in the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission (the SEC) on December 4, 2014 and in the Companys proxy statement for the 2015 Annual Meeting of Stockholders filed
with the SEC on April 23, 2015.
Item 9.01. Financial Statements and Exhibits.
The following exhibit shall be deemed to be furnished and not filed with
this Current Report on Form 8-K:
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99.1 |
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Press release entitled Constant Contact Announces Second Quarter 2015 Financial Results, issued by the Company on July 23, 2015. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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CONSTANT CONTACT, INC. |
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Date: July 23, 2015 |
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By: |
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/s/ Harpreet S. Grewal |
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Harpreet S. Grewal |
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Executive Vice President, Chief Financial Officer and Treasurer |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Press release entitled Constant Contact Announces Second Quarter 2015 Financial Results, issued by the Company on July 23, 2015. |
Exhibit 99.1
Constant Contact Announces Second Quarter 2015 Financial Results
Quarterly revenue of $91.5 million increased 13% year-over-year
Adjusted EBITDA of $16.8 million increased 26% year-over-year
WALTHAM, MA July 23, 2015 Constant Contact®, Inc. (Nasdaq: CTCT), which helps more than 650,000 small organizations find
new customers and grow relationships with their existing customers through its online marketing suite, today announced its financial results for the second quarter ended June 30, 2015.
We delivered revenue in line with expectations and profitability that meaningfully exceeded our guidance for the quarter, said Gail Goodman, chief
executive officer of Constant Contact. We made good progress on multiple fronts in the second quarter, and we are excited about the opportunities ahead. We remain confident in our strategy and ability to deliver continued revenue growth, while
improving margins and expanding profitability.
Second Quarter 2015 Financial Metrics
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Revenue was $91.5 million, an increase of 12.6% compared to revenue of $81.3 million for the comparable period in 2014. |
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Gross margin was 73.3%, compared to 72.8% for the comparable period in 2014. |
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Adjusted EBITDA was $16.8 million, compared to adjusted EBITDA of $13.3 million for the comparable period in 2014. Adjusted EBITDA margin was 18.4%, compared to 16.4% for the comparable period in 2014.
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GAAP net income was $3.8 million, or $0.11 per diluted share, compared to GAAP net income of $2.0 million, or $0.06 per diluted share, for the comparable period in 2014. |
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Non-GAAP net income was $9.6 million, compared to non-GAAP net income of $7.3 million for the comparable period in 2014. Non-GAAP net income per diluted share was $0.29, compared to $0.22 for the comparable period in
2014. |
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Cash flow from operations was $12.6 million, compared to $11.9 million for the comparable period in 2014. |
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Capital expenditures were $10.5 million, compared to $8.1 million for the comparable period in 2014. |
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Free cash flow was $2.1 million, compared to $3.7 million for the comparable period in 2014. |
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The company had $180.7 million in cash, cash equivalents and marketable securities at June 30, 2015, compared to $179.1 million at March 31, 2015. |
Second Quarter 2015 Operating Metrics
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Added 50,000 gross new unique customers in the second quarter, compared to 55,000 in the first quarter of 2015 and 50,000 in the second quarter of 2014. (*) |
Page 1
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Ended the second quarter with 650,000 unique customers, an increase from 645,000 unique customers at the end of the first quarter of 2015 and 615,000 unique customers at the end of the second quarter of 2014. (*)
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Average monthly revenue per unique customer (ARPU) in the second quarter was $47.12, up from $47.09 in the first quarter of 2015 and up from $44.40 in the second quarter of 2014. |
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Monthly retention rate of unique paying customers remained in its historical range of 97.8%, plus or minus 0.5%, for each month during the second quarter. |
(*) |
Unique customers are rounded to the nearest 5,000. We define unique customers as customers of all of our products and services, inclusive of both subscription and transaction-based products. Transactional customers
are included in the customer count for the period if they transacted within the prior 12-month period. A customer of multiple products and services is counted as one unique customer. |
Other Recent Highlights
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Announced two new appointments to the companys board of directors: |
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Julie M.B. Bradley is senior vice president and chief financial officer of the worlds largest travel site, TripAdvisor (NASDAQ: TRIP). In that role, Bradley has guided the company through a spin-off and played a
critical role in developing and executing its global growth strategy. |
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Lisa Weinstein is president of global digital, data, and analytics at Starcom MediaVest Group (SMG) where she has been instrumental in pioneering new ways to leverage online, mobile, social, and search, as well as the
data those media generate. She serves as the digital guide for some of the biggest marketers in the world, including Coca-Cola, P&G, and Kraft. |
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Announced a $50 million share repurchase program. Under the previously announced share repurchase program, Constant Contact is authorized to repurchase up to $50 million of the companys common stock pursuant to a
10b5-1 trading plan through July 2016. The company expects to fund the share repurchase program from its cash and cash equivalents. The full announcement is available via http://investor.constantcontact.com. |
Trends in both revenue and operating metrics were generally in-line with our expectations, and we were quite pleased by our ability to drive meaningful
year-over-year margin expansion and growth in profitability, said Harpreet Grewal, chief financial officer of Constant Contact. Our focus remains on delivering revenue growth consistent with our guidance range, delivering strong
profitability and free cash flow while showing strengthening trends as we enter 2016.
Page 2
Business Outlook
Based on information available as of July 23, 2015, Constant Contact is issuing guidance for the third quarter and full year 2015 as follows:
Third Quarter 2015:
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Current Guidance (7/23/2015) |
Total revenue |
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$92.6 m - $93.3 m |
Adjusted EBITDA margin |
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21.8% - 22.1% |
Adjusted EBITDA |
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$20.2 m - $20.6 m |
Stock-based compensation expense |
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$4.8 m |
GAAP net income |
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$5.4 m - $5.6 m |
GAAP net income per share |
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$0.16 - $0.17 |
Non-GAAP net income per share* |
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$0.37 - $0.39 |
Diluted weighted average shares outstanding |
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33.3 m |
Full Year 2015:
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Prior Guidance (4/30/2015) |
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Current Guidance (7/23/2015) |
Total revenue |
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$371.0 m - $377.0 m |
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$371.0 m - $373.0 m |
Adjusted EBITDA margin |
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19.6% - 20.0% |
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19.7% - 20.1% |
Adjusted EBITDA |
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~$73.0 m - $75.0 m |
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$73.0 m - $75.0 m |
Stock-based compensation expense |
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$18.5 m |
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$18.5 m |
GAAP net income |
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$17.7 m - $19.4 m |
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$18.0 - $19.2 m |
GAAP net income per share |
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$0.53 - $0.59 |
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$0.54 - $0.58 |
Non-GAAP net income per share* |
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$1.29 - $1.38 |
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$1.31 - 1.36 |
Diluted weighted average shares outstanding |
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33.2 m |
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33.2 m |
Estimated effective tax rate |
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40% |
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40% |
Estimated cash tax rate |
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12% - 15% |
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12% - 15% |
* |
Non-GAAP net income per share calculated using an estimated cash tax rate. |
Non-GAAP Financial Measures and
Other Financial Information
This press release contains the following non-GAAP financial measures: Adjusted EBITDA, adjusted EBITDA margin, non-GAAP
net income, non-GAAP net income per share, estimated cash tax rate and free cash flow.
Adjusted EBITDA is a non-GAAP financial measure that is defined as
GAAP net income before income taxes, interest and other income (expense), net, depreciation and amortization, stock-based compensation, and litigation contingency accruals. Adjusted EBITDA margin is a non-GAAP financial measure that is calculated by
dividing adjusted EBITDA by revenue.
Non-GAAP net income is a non-GAAP financial measure that is defined as GAAP net income before the non-cash portion
of income taxes, stock-based compensation expense, and litigation contingency accruals. Non-GAAP net income per share is a non-GAAP financial measure that is calculated by dividing non-GAAP net income by the weighted average shares outstanding.
Estimated cash tax rate is calculated by dividing estimated taxes to be paid by estimated full year income before taxes.
Page 3
Free cash flow is calculated by subtracting cash paid for the acquisition of property and equipment from net
cash provided by operating activities.
Constant Contact believes that these non-GAAP measures of financial results provide useful information to
management and investors regarding certain financial and business trends relating to Constant Contacts financial condition and results of operations. The companys management uses these non-GAAP measures to compare the companys
performance to that of prior periods for trend analyses, for purposes of determining certain components of executive and senior management incentive compensation, and for budgeting and planning purposes. These measures are used in monthly financial
reports prepared for management and in monthly and quarterly financial reports presented to the companys 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 companys financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors.
Management of 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 Adjusted EBITDA, adjusted EBITDA margin and non-GAAP net income is that these non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in the companys
financial statements. In addition, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP
financial measures. In order to compensate for these limitations, management presents these non-GAAP financial measures in connection with GAAP results. Constant Contact 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, including this press release, and not to rely on any single financial measure to evaluate the companys business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the
financial tables at the end of this release.
Conference Call Information
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What: |
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Constant Contact second quarter 2015 financial results conference call |
When: |
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Thursday, July 23, 2015 |
Time: |
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5:00 p.m. ET |
Live Call: |
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(877) 334-1974, domestic |
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(760) 666-3590, international |
Replay: |
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(855) 859-2056, domestic |
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(404) 537-3406, international |
Webcast: |
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http://investor.constantcontact.com/ (live and replay) |
Live and replay conference ID code: 77023395
The webcast will be archived on Constant Contacts website for a period of three months.
Page 4
About Constant Contact, Inc.
Constant Contact introduced the first email marketing tool for small businesses, nonprofits, and associations in 1998. Today, the company helps more than
650,000 customers worldwide find marketing success through the only all-in-one online marketing platform for small organizations. Anchored by our world-class email marketing tool, Constant Contact helps small businesses drive repeat business and
find new customers. It features multi-channel marketing campaigns (newsletters/announcements, offers/promotions, online listings, events/registration, and feedback) combined with shared content, contacts, and reporting; free award-winning coaching
and product support; and integrations with critical business tools all from a single login. The companys extensive network of educators, consultants/resellers, technology providers, franchises, and national associations offer further
support to help small organizations succeed and grow. Through its Innovation Loft, Constant Contact is fueling the next generation of small business technology.
Constant Contact and the Constant Contact Logo are registered trademarks of Constant Contact, Inc. All Constant Contact product names and other brand names
mentioned herein are trademarks or registered trademarks of Constant Contact, Inc. All other company and product names may be trademarks or service marks of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
This 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 companys strategy for offering an integrated marketing suite for smaller businesses and organizations, improving margins, revenue growth, expanding
profitability, free cash flow expectations, improving trend lines, and the financial guidance for the third quarter of 2015 and the full year 2015, including higher guidance on profit margins. 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, suggest, might,
could, intend, variations of these terms or the negative of these terms and similar expressions that are not statements of historical fact 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 Constant Contacts control. Constant Contacts 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, the companys ability to attract new customers and retain existing customers, the companys dependence on the market for email marketing services for
small organizations, the success of Constant Contacts integrated online marketing suite, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the company operates, the
companys ability to successfully develop and introduce new offerings or enhancements to existing products and integrate its products in an effective manner, adverse regulatory or legal developments, litigation risk and expense, the
companys ability to continue to promote and maintain its brand in a cost-effective manner, changes in the competitive environment, the companys ability to compete effectively, the companys ability to attract and retain key
personnel, the companys ability to protect its intellectual property and other proprietary rights, and other risks detailed in Constant Contacts most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission
as well as other documents that may be filed by the company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future
Page 5
results. The forward-looking statements included in this press release represent Constant Contacts views as of the date of this press release. The company anticipates that subsequent events
and developments will cause its views to change. Constant Contact 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 Constant Contacts views as of any date subsequent to the date of this press release.
###
(CTCT-F)
Media Contact:
Erika Tower
Constant Contact
(781) 482-7039
pr@constantcontact.com
Investor Contact:
Jeremiah Sisitsky
Constant Contact
(339) 222-5740
ir@constantcontact.com
Page 6
Constant Contact, Inc.
Consolidated Condensed Statements of Operations (unaudited)
(In thousands, except per share data)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Revenue |
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$ |
91,531 |
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$ |
81,256 |
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$ |
181,948 |
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$ |
160,130 |
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Cost of revenue |
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24,462 |
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22,100 |
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48,893 |
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43,827 |
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Gross profit |
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67,069 |
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59,156 |
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133,055 |
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116,303 |
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Operating expenses: |
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Research and development |
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14,129 |
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12,850 |
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27,954 |
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25,924 |
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Sales and marketing |
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35,440 |
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33,113 |
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71,508 |
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65,913 |
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General and administrative |
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11,452 |
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10,186 |
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23,245 |
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20,306 |
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Total operating expenses |
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61,021 |
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56,149 |
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122,707 |
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112,143 |
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Income from operations |
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6,048 |
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|
3,007 |
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10,348 |
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4,160 |
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Interest income and other income (expense), net |
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168 |
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25 |
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111 |
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48 |
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Income before income taxes |
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6,216 |
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3,032 |
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10,459 |
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4,208 |
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Income tax expense |
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(2,390 |
) |
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(1,011 |
) |
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(3,083 |
) |
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(1,339 |
) |
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Net income |
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$ |
3,826 |
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$ |
2,021 |
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$ |
7,376 |
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$ |
2,869 |
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Net income per share: |
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Basic |
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$ |
0.12 |
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$ |
0.06 |
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$ |
0.23 |
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$ |
0.09 |
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Diluted |
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$ |
0.11 |
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$ |
0.06 |
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$ |
0.22 |
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$ |
0.09 |
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Weighted average shares outstanding used in computing per share amounts: |
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Basic |
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32,132 |
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31,484 |
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32,112 |
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31,387 |
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Diluted |
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33,290 |
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32,620 |
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33,473 |
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32,532 |
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Page 7
Constant Contact, Inc.
Calculation of Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)
(In thousands)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Net income |
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$ |
3,826 |
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$ |
2,021 |
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$ |
7,376 |
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$ |
2,869 |
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Income tax expense |
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2,390 |
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|
1,011 |
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3,083 |
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|
1,339 |
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Interest income and other (income) expense, net |
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|
(168 |
) |
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(25 |
) |
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(111 |
) |
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(48 |
) |
Depreciation and amortization |
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6,162 |
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5,896 |
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12,215 |
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|
11,807 |
|
Stock-based compensation expense |
|
|
4,622 |
|
|
|
4,410 |
|
|
|
8,926 |
|
|
|
8,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
16,832 |
|
|
$ |
13,313 |
|
|
$ |
31,489 |
|
|
$ |
24,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divide by: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
91,531 |
|
|
$ |
81,256 |
|
|
$ |
181,948 |
|
|
$ |
160,130 |
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
18.4 |
% |
|
|
16.4 |
% |
|
|
17.3 |
% |
|
|
15.2 |
% |
Page 8
Constant Contact, Inc.
Calculation of Non-GAAP Net Income and Non-GAAP Net Income per Share (unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Net income |
|
$ |
3,826 |
|
|
$ |
2,021 |
|
|
$ |
7,376 |
|
|
$ |
2,869 |
|
|
|
|
|
|
Non-cash portion of income tax expense |
|
|
1,137 |
|
|
|
846 |
|
|
|
681 |
|
|
|
1,123 |
|
Stock-based compensation expense |
|
|
4,622 |
|
|
|
4,410 |
|
|
|
8,926 |
|
|
|
8,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
9,585 |
|
|
$ |
7,277 |
|
|
$ |
16,983 |
|
|
$ |
12,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: diluted |
|
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.51 |
|
|
$ |
0.38 |
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share amounts |
|
|
33,290 |
|
|
|
32,620 |
|
|
|
33,473 |
|
|
|
32,532 |
|
Constant Contact, Inc.
Calculation of Free Cash Flow (unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
12,592 |
|
|
$ |
11,869 |
|
|
$ |
32,813 |
|
|
$ |
22,960 |
|
|
|
|
|
|
Subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment |
|
|
10,531 |
|
|
|
8,126 |
|
|
|
15,781 |
|
|
|
14,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
2,061 |
|
|
$ |
3,743 |
|
|
$ |
17,032 |
|
|
$ |
8,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 9
Constant Contact, Inc.
Consolidated Condensed Statements of Cash Flows (unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,376 |
|
|
$ |
2,869 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
12,215 |
|
|
|
11,807 |
|
Amortization of premiums on investments |
|
|
217 |
|
|
|
107 |
|
Stock-based compensation expense |
|
|
8,926 |
|
|
|
8,324 |
|
Provision for bad debts |
|
|
3 |
|
|
|
10 |
|
Gain on sales of marketable securities |
|
|
|
|
|
|
(1 |
) |
Deferred income taxes |
|
|
(1,566 |
) |
|
|
|
|
Income tax benefit from the exercise of stock options |
|
|
(2,910 |
) |
|
|
(605 |
) |
Taxes paid related to net share settlement of restricted stock units |
|
|
(1,257 |
) |
|
|
(1,841 |
) |
Change in operating assets & liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(96 |
) |
|
|
13 |
|
Prepaid expenses and other current assets |
|
|
686 |
|
|
|
(1,224 |
) |
Other assets |
|
|
(670 |
) |
|
|
185 |
|
Accounts payable |
|
|
4,860 |
|
|
|
685 |
|
Accrued expenses |
|
|
2,663 |
|
|
|
814 |
|
Deferred revenue |
|
|
2,254 |
|
|
|
1,401 |
|
Other long-term liabilities |
|
|
112 |
|
|
|
416 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
32,813 |
|
|
|
22,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
|
(26,106 |
) |
|
|
(25,759 |
) |
Proceeds from maturities of marketable securities |
|
|
27,362 |
|
|
|
13,265 |
|
Proceeds from sales of marketable securities |
|
|
|
|
|
|
633 |
|
Acquisition of property and equipment |
|
|
(15,781 |
) |
|
|
(14,055 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(14,525 |
) |
|
|
(25,916 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Exercise of stock options and warrants |
|
|
10,912 |
|
|
|
6,616 |
|
Income tax benefit from the exercise of stock options |
|
|
2,910 |
|
|
|
605 |
|
Proceeds from issuance of common stock pursuant to employee stock purchase plan |
|
|
1,063 |
|
|
|
831 |
|
Repurchase of common stock |
|
|
(13,640 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
1,245 |
|
|
|
8,052 |
|
|
|
|
|
|
|
|
|
|
Effects of exchange rates on cash and cash equivalents |
|
|
4 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
19,537 |
|
|
|
5,100 |
|
Cash and cash equivalents, beginning of period |
|
|
104,301 |
|
|
|
82,478 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
123,838 |
|
|
$ |
87,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing and financing activities |
|
|
|
|
|
|
|
|
Capitalization of stock-based compensation |
|
$ |
144 |
|
|
$ |
100 |
|
Acquisition of property and equipment included in accounts payable and accrued expenses |
|
|
2,003 |
|
|
|
|
|
Page 10
Constant Contact, Inc.
Consolidated Condensed Balance Sheets (unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
|
December 31, 2014 |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
123,838 |
|
|
$ |
104,301 |
|
Marketable securities |
|
|
56,861 |
|
|
|
58,321 |
|
Accounts receivable, net |
|
|
358 |
|
|
|
265 |
|
Prepaid expenses and other current assets |
|
|
12,869 |
|
|
|
10,723 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
193,926 |
|
|
|
173,610 |
|
|
|
|
Property and equipment, net |
|
|
48,440 |
|
|
|
43,739 |
|
Restricted cash |
|
|
1,300 |
|
|
|
1,300 |
|
Goodwill |
|
|
95,505 |
|
|
|
95,505 |
|
Acquired intangible assets, net |
|
|
1,249 |
|
|
|
2,160 |
|
Deferred tax assets |
|
|
6,271 |
|
|
|
4,658 |
|
Other assets |
|
|
2,563 |
|
|
|
1,893 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
349,254 |
|
|
$ |
322,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
9,974 |
|
|
$ |
4,703 |
|
Accrued expenses |
|
|
14,563 |
|
|
|
12,230 |
|
Deferred revenue |
|
|
40,092 |
|
|
|
37,838 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
64,629 |
|
|
|
54,771 |
|
|
|
|
Other long-term liabilities |
|
|
3,895 |
|
|
|
3,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
68,524 |
|
|
|
58,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders Equity |
|
|
|
|
|
|
|
|
Common stock |
|
|
322 |
|
|
|
319 |
|
Additional paid-in capital |
|
|
258,617 |
|
|
|
249,599 |
|
Accumulated other comprehensive income (loss) |
|
|
12 |
|
|
|
(10 |
) |
Retained earnings |
|
|
21,779 |
|
|
|
14,403 |
|
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
|
280,730 |
|
|
|
264,311 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
349,254 |
|
|
$ |
322,865 |
|
|
|
|
|
|
|
|
|
|
Page 11
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