Stamps.com® (Nasdaq: STMP), the leading provider of postage
online and shipping software, today announced results for the
quarter ended June 30, 2019.
Second Quarter 2019 Financial Highlights
- Total revenue was $138.8 million, down 1% compared to $139.6
million in the second quarter of 2018.
- GAAP net income was $14.0 million, down 69% compared to $45.5
million in the second quarter of 2018.
- GAAP net income per fully diluted share was $0.79, down 67%
compared to $2.41 in the second quarter of 2018.
- Non-GAAP adjusted EBITDA was $39.3 million, down 38% compared
to $63.6 million in the second quarter of 2018.
- Non-GAAP adjusted income per fully diluted share was $1.25,
down 54% compared to $2.75 in the second quarter of 2018.
“During the second quarter we continued to make progress on our
efforts to evolve our strategy to more fully embrace a global
multi-carrier business model,” said Ken McBride, Stamps.com's
Chairman and CEO. “Our financial results for the second quarter
were in-line with our expectations in light of our new strategic
direction.”
Second Quarter 2019 Detailed Results
Second quarter 2019 total revenue was $138.8 million, down 1%
compared to the second quarter of 2018. Second quarter 2019 Mailing
and Shipping revenue (which includes service, product and insurance
revenue but excludes Customized Postage and Other revenue) was
$135.6 million, up 1% versus the second quarter of 2018. Second
quarter 2019 Customized Postage revenue was $3.1 million, down 40%
versus the second quarter of 2018.
Second quarter 2019 GAAP income from operations was $22.4
million, GAAP net income was $14.0 million, and GAAP net income per
share was $0.79 based on 17.8 million fully diluted shares
outstanding. This compares to second quarter 2018 GAAP income from
operations of $46.9 million, GAAP net income of $45.5 million, and
GAAP net income per share of $2.41 based on 18.9 million fully
diluted shares outstanding. Second quarter 2019 GAAP income from
operations, GAAP net income, and GAAP income per fully diluted
share decreased by 52%, 69%, and 67% year-over-year,
respectively.
Second quarter 2019 GAAP income from operations included $9.8
million of non-cash stock-based compensation expense and $5.6
million of non-cash amortization of acquired intangibles. Second
quarter 2019 GAAP net income included $93 thousand of non-cash
amortization of debt issuance costs. Second quarter 2019 GAAP
income tax expense was $7.7 million and non-GAAP income tax expense
was $14.9 million, resulting in a $7.2 million non-GAAP tax expense
adjustment. The higher non-GAAP tax expense reflects the tax impact
on the non-GAAP pre-tax income at a non-GAAP effective tax rate of
40.0% for the second quarter. See the section later in this release
entitled, “About Non-GAAP Financial Measures” for more information
on how non-GAAP taxes are calculated. Excluding the non-cash
stock-based compensation expense and non-cash amortization of
acquired intangibles, second quarter 2019 non-GAAP income from
operations was $37.8 million. Also excluding non-cash amortization
of debt issuance costs and including the non-GAAP tax expense
adjustment, second quarter 2019 non-GAAP adjusted income was $22.3
million or $1.25 per share based on 17.8 million fully diluted
shares outstanding.
Second quarter 2018 GAAP income from operations included $9.9
million of non-cash stock-based compensation expense, $4.0 million
of non-cash amortization of acquired intangibles, and $1.6 million
of transaction expenses related to the MetaPack acquisition and
legal settlement expense related to the class action wage and hours
case filed against us in February 2018. Second quarter 2018 GAAP
net income included $93 thousand of non-cash amortization of debt
issuance costs. Second quarter 2018 GAAP income tax expense was
$0.7 million and non-GAAP income tax expense was $9.9 million,
resulting in a $9.2 million non-GAAP tax expense adjustment. The
higher non-GAAP tax expense reflected the tax impact on the
non-GAAP pre-tax income at a non-GAAP effective tax rate of 16.0%.
Excluding the non-cash stock-based compensation expense, non-cash
amortization of acquired intangibles, transaction expenses related
to the MetaPack acquisition, and legal settlement expense, second
quarter 2018 non-GAAP income from operations was $62.3 million.
Also excluding non-cash amortization of debt issuance costs and
including the non-GAAP tax expense adjustment, second quarter 2018
non-GAAP adjusted income was $51.9 million or $2.75 per share based
on 18.9 million fully diluted shares outstanding.
Therefore, second quarter 2019 non-GAAP income from operations,
non-GAAP adjusted income, and non-GAAP adjusted income per fully
diluted share decreased by 39%, 57%, and 54% year-over-year,
respectively.
Non-GAAP income from operations, non-GAAP adjusted income, and
non-GAAP adjusted income per share are described further in the
“About Non-GAAP Financial Measures” section of this press release
and are reconciled to the corresponding GAAP measures in the
following tables (unaudited):
Reconciliation of GAAP to Non-GAAP Financial Measures (Second
Quarter 2019)
Second Quarter Fiscal 2019
Stock-Based Intangible
Debt All amounts in millions except
GAAP
Compensation Amortization Amortization
Income Tax Non-GAAP per share data:
Amounts
Expense Expense Expense Adjustments
Amounts Cost of Revenues
$
36.44
$
0.56
$
-
$
-
$
-
$
35.89
Research & Development
19.13
2.49
-
-
-
16.64
Sales & Marketing
33.24
2.28
-
-
-
30.96
General & Administrative
27.54
4.49
5.55
-
-
17.49
Total Expenses
116.35
9.82
5.55
-
-
100.97
Income (Loss) from Operations
22.42
(9.82
)
(5.55
)
-
-
37.80
Interest and Other Income (Loss)
(0.75
)
-
-
(0.09
)
-
(0.65
)
Benefit (Expense) for Income Taxes
(7.69
)
-
-
-
7.17
(14.86
)
Adjusted Income (Loss)
13.99
(9.82
)
(5.55
)
(0.09
)
7.17
22.29
On a diluted per share basis
$
0.79
$
(0.55
)
$
(0.31
)
$
(0.01
)
$
0.40
$
1.25
Shares used in per share calculation
17.81
17.81
17.81
17.81
17.81
17.81
Reconciliation of GAAP to Non-GAAP Financial Measures (Second
Quarter 2018)
Second Quarter Fiscal 2018
Acquisition and All amounts in
millions except
Stock-Based Intangible
Litigation Debt per share data:
GAAP
Compensation Amortization Settlement
Amortization Income Tax Non-GAAP
Amounts Expense Expense Expenses
Expense Adjustments Amounts Cost of
Revenues
$
29.44
0.73
$
-
$
-
$
-
$
-
$
28.71
Research & Development
12.34
1.67
-
-
-
-
10.67
Sales & Marketing
25.79
1.48
-
-
-
-
24.30
General & Administrative
25.19
6.01
3.99
1.57
-
-
13.62
Total Expenses
92.76
9.89
3.99
1.57
-
-
77.31
Income (Loss) from Operations
46.87
(9.89
)
(3.99
)
(1.57
)
-
-
62.32
Interest and Other Income (Loss)
(0.61
)
-
-
-
(0.09
)
-
(0.51
)
Benefit (Expense) for Income Taxes
(0.74
)
-
-
-
-
9.15
(9.89
)
Adjusted Income (Loss)
45.52
(9.89
)
(3.99
)
(1.57
)
(0.09
)
9.15
51.92
On a diluted per share basis
$
2.41
$
(0.52
)
$
(0.21
)
$
(0.08
)
$
(0.00
)
$
0.48
$
2.75
Shares used in per share calculation
18.91
18.91
18.91
18.91
18.91
18.91
18.91
Second Quarter GAAP Net Income and Non-GAAP Adjusted
EBITDA
Second quarter 2019 GAAP net income was $14.0 million, down 69%
compared to $45.5 million in the second quarter of 2018.
Second quarter 2019 non-GAAP adjusted EBITDA was $39.3 million,
down 38% compared to $63.6 million in the second quarter of
2018.
Adjusted EBITDA is a non-GAAP financial measure which is
described further in the “About Non-GAAP Financial Measures”
section of this press release and is reconciled to GAAP net income
in the following table (unaudited):
Reconciliation of GAAP Net Income to Non-GAAP Adjusted
EBITDA
Three Months ended
All amounts in millions
June 30,
2019
2018
GAAP Net Income (Loss)
$13.99
$45.52
Depreciation and Amortization Expense
$7.03
$5.28
Interest & Other Expense (Income), net
$0.75
$0.61
Income Tax Expense (Benefit), net
$7.69
$0.74
Stock-based Compensation Expense
$9.82
$9.89
Acquisition Related and Litigation Settlement Expenses
$ --
$1.57
Adjusted EBITDA
$39.28
$63.61
Taxes
For the second quarter of 2019, the Company reported a GAAP
income tax expense of $7.7 million representing an effective tax
rate of 35.5%. As discussed below under the heading, “About
Non-GAAP Financial Measures,” we believe our effective tax rate for
2019 will be approximately 40%. Accordingly, the second quarter
2019 effective rate of 35.5% should not be assumed to apply for
2019 as a whole, and our after tax income during the remainder of
2019 will likely reflect a materially higher rate than is reflected
in our after tax results for the second quarter of 2019. Our second
quarter 2019 GAAP net income should also be understood to have been
positively impacted by the lower effective tax rate applicable
specifically to the quarter.
Share Repurchase and Debt Repayment
During the second quarter of 2019, the Company repurchased
approximately 296 thousand shares at a total cost of approximately
$20 million.
On March 8, 2019, our Board of Directors approved a $60 million
share repurchase plan which was scheduled to expire in September
2019. On May 1, 2019, the Board of Directors adjusted the
repurchase parameters of the plan, and on July 29, 2019, the Board
of Directors approved an extension of the current plan through
February 2020 from its prior expiration in September 2019. As of
August 7, 2019, we have repurchased approximately $30 million under
this plan.
During the second quarter of 2019, the Company made a required
principal repayment of $2.6 million against the borrowings under
the Company’s existing credit agreement related to the Endicia
acquisition. As of June 30, 2019, total debt under the credit
agreement, excluding debt issuance costs, was $56.2 million.
Summary of our Updated Business Outlook
For fiscal year 2019, the Company currently expects its GAAP
financial outlook to be as follows:
- We expect total revenue to be in a range of approximately $520
million to $560 million; this compares to previous guidance of $510
million to $560 million.
- We expect GAAP net income to be in a range of approximately $27
million to $45 million; this compares to previous guidance of $21
million to $45 million.
- We expect GAAP net income per fully diluted share to be in a
range of approximately $1.44 to $2.55; this compares to previous
guidance of $1.15 to $2.56.
- We expect our 2019 effective tax rate to be 40.0%; no change
from our previous guidance.
The above GAAP amounts, adjusted as detailed below, result in
the following non-GAAP financial outlook:
- We expect non-GAAP adjusted EBITDA to be in a range of
approximately $120 million to $150 million; this compares to
previous guidance of $110 million to $150 million.
- We expect non-GAAP adjusted income per fully diluted share to
be in a range of $3.60 to $4.85; this compares to previous guidance
of $3.35 to $4.85.
Detailed Discussion of our Business Outlook
As noted above, for 2019, the Company currently expects total
revenue to be in a range of approximately $520 million to $560
million; this compares to previous guidance of $510 million to $560
million.
Also, for 2019, the Company currently expects GAAP net income to
be in a range of approximately $27 million to $45 million; this
compares to previous guidance of $21 million to $45 million.
The expected GAAP net income range includes depreciation and
amortization expense of approximately $28 million, stock-based
compensation expense of approximately $45 million, interest and
other expense, net of approximately $3 million, and income tax
expense of approximately $18 million to $30 million. Excluding the
depreciation and amortization expense, stock-based compensation
expense, interest and other expense, net and income tax expense, we
expect non-GAAP adjusted EBITDA to be in a range of approximately
$120 million to $150 million; this compares to previous guidance of
$110 million to $150 million.
The following table is provided to facilitate a reconciliation
of 2019 expected non-GAAP adjusted EBITDA to expected GAAP net
income:
Fiscal Year 2019
Guidance
All amounts in millions
Low End
of Range
High End
of Range
GAAP net income
$26.9
$44.9
Adjustments to reconcile adjusted EBITDA to
GAAP net income:
Depreciation and amortization expense
$27.5
$27.5
Stock-based compensation expense
$45.0
$45.0
Interest and other expense (income), net
$2.6
$2.6
Income tax expense
$18.0
$30.0
Total adjustments excluded from adjusted EBITDA
$93.1
$105.1
Adjusted EBITDA
$120.0
$150.0
As noted above, for 2019, the Company currently expects GAAP net
income per fully diluted share to be in a range of approximately
$1.44 to $2.55; this compares to previous guidance of $1.15 to
$2.56. The expected GAAP net income per fully diluted share range
includes non-cash stock-based compensation expense of approximately
$45 million, non-cash amortization of acquired intangibles expense
of approximately $22 million, and non-cash amortization of debt
issuance costs of approximately $0.4 million. Excluding the
stock-based compensation expense, amortization of acquired
intangibles expense, and amortization of debt issuance costs, and
including higher expected non-GAAP income taxes of approximately
$27 million from the expected tax effects of these adjustments at
an assumed 40% effective full-year tax rate, non-GAAP adjusted
income per fully diluted share is expected to be in a range of
$3.60 to $4.85; this compares to previous guidance of $3.35 to
$4.85.
The following table is provided to facilitate a reconciliation
of 2019 expected non-GAAP adjusted income per fully diluted share
to expected GAAP net income per fully diluted share:
Fiscal Year 2019
Guidance
All amounts in millions except percentages and per share data
Low End
of Range
High End
of Range
GAAP net income per fully diluted share
$1.44
$2.55
Adjustments to reconcile non-GAAP to
GAAP:
Stock-based compensation expense
$45.0
$45.0
Amortization of acquired intangibles
$22.0
$22.0
Amortization of debt issuance costs
$0.4
$0.4
Total adjustments excluded from non-GAAP
$67.4
$67.4
Projected effective tax rate
40.0%
40.0%
Increased tax expense from non-GAAP
adjustments
$27.0
$27.0
Total tax affected adjustments excluded from non-GAAP
$40.4
$40.4
Fully diluted shares
18.7
17.6
Total adjustments excluded from non-GAAP adjusted income per fully
diluted share
$2.16
$2.30
Non-GAAP adjusted income per fully diluted share
$3.60
$4.85
This business outlook does not include the impact from potential
future acquisitions, including acquisition costs or related
financings, or unanticipated events. This business outlook also
does not include the impact of foreign currency fluctuations, or
other geopolitical events, such as trade negotiations or Brexit.
This business outlook also does not include the impact of employee
stock option exercises and any associated tax effects. This
business outlook and the related assumptions are forward-looking
statements subject to the safe harbor statement contained at the
end of this press release, and reflect our views of current and
future market conditions as of the date of this press release.
Ranges reflect our business assumptions, but actual results could
fall outside the range presented. Only a few of our assumptions
underlying our guidance are disclosed above, and our actual results
will be affected by known and unknown risks, trends, uncertainties
and other factors, some of which are beyond our control or ability
to predict. Although we believe that the assumptions underlying our
guidance are reasonable, they are not guarantees of future
performance and some of them will inevitably prove to be incorrect.
As a result, our actual future results can be expected to differ
from our expectations, and those differences could be material. We
do not undertake any obligation to release publicly any revisions
to our business outlook or other forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
Company Metrics and Conference Call
2019 Company metrics, updated to include the second quarter, is
available at http://investor.stamps.com (under a tab on the left
side called “Company Information, Metrics”). These metrics are not
incorporated into this press release.
The Stamps.com financial results conference call will be webcast
today at 5:00 p.m. Eastern Time and may be accessed at
http://investor.stamps.com. The Company plans to discuss its
business outlook during the conference call. Following the
conclusion of the webcast, a replay of the call will be available
at the same website.
About Stamps.com, Endicia, ShipStation, ShipWorks,
ShippingEasy and MetaPack
Stamps.com (Nasdaq: STMP) is the leading provider of postage
online and shipping software solutions to customers, including
consumers, small businesses, e-commerce shippers, enterprises, and
high volume shippers. Stamps.com offers solutions that help
businesses run their shipping operations more smoothly and function
more successfully under the brand names Stamps.com, Endicia,
ShipStation, ShipWorks, ShippingEasy and MetaPack. Stamps.com’s
family of brands provides seamless access to mailing and shipping
services through integrations with more than 500 unique partner
applications.
Endicia is a leading brand for high volume shipping technologies
and services for U.S. Postal Service shipping. Under this brand we
offer solutions that help businesses run their shipping operations
more smoothly and function more successfully. Our Endicia branded
solutions also provide seamless access to USPS shipping services
through integrations with partner applications.
ShipStation is a leading web-based shipping solution that helps
e-commerce retailers import, organize, process, package, and ship
their orders quickly and easily from any web browser. ShipStation
features the most integrations of any e-commerce web-based solution
with more than 325 shopping carts, marketplaces, package carriers,
and fulfillment services. Integration partners include eBay,
PayPal, Amazon, Etsy, Square, Shopify, BigCommerce, Volusion,
Magento, Squarespace, and carriers such as USPS, UPS, FedEx and
DHL. ShipStation has sophisticated automation features such as
automated order importing, custom hierarchical rules, product
profiles, and fulfillment solutions that enable its customers to
complete their orders, wherever they sell, and however they
ship.
ShipWorks is a leading brand for client-based shipping solutions
that help high volume shippers import, organize, process, fulfill,
and ship their orders quickly and easily from any standard PC. With
integrations to more than 100 shopping carts, marketplaces, package
carriers, and fulfillment services, ShipWorks has the most
integrations of any high-volume client shipping solution. Package
carriers include USPS, UPS, FedEx, DHL, OnTrac and many more.
Marketplace and shopping cart integrations include eBay, PayPal,
Amazon, Etsy, Shopify, BigCommerce, Volusion, ChannelAdvisor,
Magento, and many more. ShipWorks has sophisticated automation
features such as a custom rules engine, automated order importing,
automatic product profile detection, and fulfillment automation,
which enable high volume shippers to complete their orders quickly
and efficiently.
ShippingEasy provides a single platform for e-commerce merchants
to automate order imports and shipping, manage inventory, and
increase sales through customer email marketing and online reviews.
Powerful integrations with leading online channels such as Amazon,
eBay, Etsy, Walmart, Shopify, Magento, WooCommerce and many others
allow merchants to manage orders from everywhere they sell all in
one place. The inclusion of email marketing and inventory
management solutions plus award-winning support from real humans
via phone, email, and chat lets online merchants streamline their
businesses and increase orders through a single integrated platform
that provides more than best-in-class shipping solutions.
MetaPack helps e-commerce and delivery professionals to meet
with the consumer’s growing expectations of delivery, while
maintaining and optimizing operational efficiency. MetaPack’s SaaS
solution offers a wide range of personalized delivery services,
from global order tracking to simplified return procedures, through
a catalog of more than 450 carriers and 5,000 services available
that span every country in the world.
About Non-GAAP Financial Measures
To supplement the Company’s condensed consolidated balance
sheets and consolidated statements of income presented in
accordance with GAAP, the Company uses non-GAAP measures of certain
components of financial performance. These non-GAAP measures
include non-GAAP income from operations, non-GAAP adjusted income,
non-GAAP adjusted income per fully diluted share and adjusted
EBITDA.
Non-GAAP financial measures are provided to enhance investors’
overall understanding of the Company’s financial performance and
prospects for the future and as a means to evaluate
period-to-period comparisons. The Company believes the non-GAAP
measures, which: (1) exclude certain non-cash items including
stock-based compensation expense, amortization of acquired
intangibles, amortization of debt issuance costs, and contingent
consideration charges; (2) exclude certain expenses and gains such
as acquisition related expenses, litigation settlement expenses,
executive consulting expenses, and insurance proceeds; and (3)
include income tax adjustments, provide meaningful supplemental
information regarding financial performance by excluding certain
expenses and benefits that may not be reflective of our underlying
operating performance.
Non-GAAP adjusted income is calculated as GAAP net income plus
the cumulative impact of the adjustments outlined in the paragraph
immediately above.
Non-GAAP adjusted income per fully diluted share is calculated
as non-GAAP adjusted income divided by fully diluted shares. Prior
to the third quarter 2016, the Company referred to non-GAAP
adjusted income as non-GAAP net income.
Non-GAAP income tax expense for the first, second and third
quarters of our fiscal year are calculated by multiplying the
projected annual effective tax rate in that quarter by the non-GAAP
adjusted income before taxes for the quarter. The projected annual
effective tax rate does not reflect potential future employee
option exercises in the remaining quarters of the fiscal year due
to the inherent difficulty in forecasting employee option
exercises. The projected annual effective tax rate also considers
other factors including the Company’s tax structure and its tax
positions in various jurisdictions where the Company operates. The
actual annual effective tax rate realized for the fiscal year could
differ materially from our projected annual effective tax rate used
in the first, second and third quarters.
Non-GAAP income tax expense for the fourth quarter of the fiscal
year is calculated by multiplying the actual effective tax rate for
the fiscal year by the non-GAAP adjusted income before taxes for
the fiscal year and subtracting the non-GAAP income tax expense or
benefit reported in the first, second and third quarters. As a
result, the fourth quarter reflects the tax impact of reconciling
the first, second and third quarter projected annual effective
rates to the actual effective tax rate for the fiscal year.
The projected non-GAAP full-year tax rate for 2019 is 40%. The
increase in our estimated effective tax rate for 2019 was primarily
driven by an increase in projected non-deductible expenses related
to executive compensation coupled with a reduction in projected
pre-tax book income.
Adjusted EBITDA as calculated in this press release represents
earnings before interest and other expense, net, interest and other
income, net, income tax expense or benefit, depreciation and
amortization and excludes certain items, such as stock-based
compensation expense.
The presentation of non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for, or superior
to, the financial information prepared and presented in accordance
with GAAP. These non-GAAP financial measures may differ from
similarly titled measures used by other companies. Reconciliation
of non-GAAP financial measures included in this press release to
the corresponding GAAP measures can be found in the financial
tables of this press release.
The Company believes that non-GAAP financial measures, when
viewed with GAAP results and the accompanying reconciliation,
enhance the comparability of operating results against prior
periods and allow for greater transparency of operating results.
Management uses non-GAAP financial measures in making financial,
operating, compensation and planning decisions. The Company
believes non-GAAP financial measures facilitate management and
investors in comparing the Company’s financial performance to that
of prior periods as well as in performing trend analysis over
time.
Share Repurchase Timing
The timing of share repurchases, if any, and the number of
shares to be bought at any one time will depend on factors
including market conditions and the Company’s compliance with the
covenants in its Credit Agreement. Share repurchases may be made
from time to time on the open market or in negotiated transactions
at the Company's discretion in compliance with Rule 10b-18 of the
United States Securities and Exchange Commission. The Company's
purchase of any of its shares may be subject to limitations imposed
on such purchases by applicable securities laws and regulations and
the rules of the Nasdaq Stock Market.
"Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are statements that are not historical
facts, and may relate to future events or the company’s anticipated
results, business strategies or capital requirements, among other
things, all of which involve risks and uncertainties. You can
identify many (but not all) such forward-looking statements by
looking for words such as “assumes,” “approximates,” “believes,”
“expects,” “anticipates,” “estimates,” “projects,” “seeks,”
“intends,” “plans,” “could,” “would,” “may” or other similar
expressions. Important factors which could cause actual results to
differ materially from those in the forward-looking statements,
include (i) potential short and long term adverse amendments,
renegotiations, changes, or termination of certain contracts
between the USPS and certain of our strategic partners who are part
of the USPS’s reseller program through which we derive material
revenues and profits, as well as significant uncertainty as to
whether, how and when such changes may be implemented, (ii) the
Company's ability to successfully integrate and realize the
benefits of its past or future strategic acquisitions or
investments, (iii) the Company’s ability to monetize its customers’
transactions with carriers, (iv) the impact of foreign exchange
fluctuations and geopolitical risks, and (v) other important
factors that are detailed in filings with the Securities and
Exchange Commission made from time to time by Stamps.com, including
its Annual Report on Form 10-K for the year ended December 31,
2018, Quarterly Reports on Form 10-Q, and Current Reports on Form
8-K. Matters described in forward-looking statements may also be
affected by other known and unknown risks, trends, uncertainties
and factors, many of which are beyond the company’s ability to
control or predict. Stamps.com undertakes no obligation to release
publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Trademarks
Stamps.com, the Stamps.com logo, Endicia, ShipStation, ShipWorks
and ShippingEasy are registered trademarks of Stamps.com Inc. and
its subsidiaries, and MetaPack is a trade mark of MetaPack
registered in the UK Intellectual Property Office. All other brands
and names used in this release are the property of their respective
owners.
STAMPS.COM INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF INCOME (in thousands, except per share data:
unaudited)
Three Months endedJune 30, Six Months
endedJune 30,
2019
2018
2019
2018
Revenues: Service
$
127,429
$
125,206
$
251,336
$
246,122
Product
4,785
4,892
10,190
10,571
Insurance *
3,431
4,293
6,765
8,661
Customized postage
3,128
5,218
6,485
7,798
Other
-
18
-
40
Total revenues
138,773
139,627
274,776
273,192
Cost of revenues: Service
32,452
22,610
64,687
43,259
Product
1,549
1,480
3,222
3,231
Insurance *
-
1,014
-
2,012
Customized postage
2,440
4,338
4,871
6,467
Total cost of revenues
36,441
29,442
72,780
54,969
Gross profit
102,332
110,185
201,996
218,223
Operating expenses: Sales and marketing
33,242
25,789
66,123
51,537
Research and development
19,130
12,340
36,444
24,413
General and administrative
27,535
25,187
53,763
46,203
Total operating expenses
79,907
63,316
156,330
122,153
Income from operations
22,425
46,869
45,666
96,070
Foreign currency exchange gain (loss), net
(152
)
-
(247
)
-
Interest expense
(645
)
(650
)
(1,359
)
(1,240
)
Interest income and other income (loss), net
52
43
117
92
Income before income taxes
21,680
46,262
44,177
94,922
Income tax expense
7,688
738
14,430
2,354
Net income
$
13,992
$
45,524
$
29,747
$
92,568
Net income per share: Basic
$
0.81
$
2.53
$
1.71
$
5.19
Diluted
$
0.79
$
2.41
$
1.66
$
4.95
Weighted average shares outstanding: Basic
17,291
18,015
17,418
17,830
Diluted
17,809
18,906
17,911
18,709
*Beginning on October 1, 2018, insurance revenue represents the
amount we receive from customers net of the costs paid to our
insurance providers. For the periods presented prior to October 1,
2018, insurance revenue represented the gross amount charged to the
customer for purchasing insurance and the related cost represented
the amount paid to our insurance providers.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands,
unaudited)
June 30,
December 31,
2019
2018
ASSETS Cash and cash equivalents
$
109,713
$
113,757
Accounts receivable, net
70,854
83,595
Current income taxes
127
8,465
Prepaid expenses and other current assets
33,487
23,794
Property and equipment, net
34,011
36,337
Goodwill and intangible assets, net
533,309
545,569
Deferred income taxes, net
29,874
29,874
Other assets
31,273
11,383
Total assets
$
842,648
$
852,774
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities:
Accounts payable, accrued expenses, and other liabilities
$
146,448
$
152,642
Debt, net of debt issuance costs
55,673
60,643
Deferred income taxes, net
18,575
18,665
Deferred revenue
8,324
7,159
Total liabilities
229,020
239,109
Stockholders' equity: Common stock
56
56
Additional paid-in capital
1,073,087
1,049,669
Treasury stock
(580,807
)
(528,529
)
Retained earnings
121,459
91,712
Accumulated other comprehensive income (loss)
(167
)
757
Total stockholders' equity
613,628
613,665
Total liabilities and stockholders' equity
$
842,648
$
852,774
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005746/en/
Investor Contact: Suzanne Park
Stamps.com Investor Relations (310) 482-5830 invrel@stamps.com
Press Contact: Eric Nash Stamps.com
Public Relations (310) 482-5942 enash@stamps.com
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