Stamps.com® (Nasdaq: STMP), the leading provider of postage
online and shipping software, today announced results for the
quarter ended September 30, 2020.
Third Quarter 2020 Financial Highlights
- Total revenue was $193.9 million, up 42% compared to $136.2
million in the third quarter of 2019.
- GAAP net income was $64.0 million, up 599% compared to $9.1
million in the third quarter of 2019.
- GAAP net income per fully diluted share was $3.30, up 528%
compared to $0.52 in the third quarter of 2019.
- Non-GAAP adjusted EBITDA was $71.2 million, up 107% compared to
$34.5 million in the third quarter of 2019.
- Non-GAAP adjusted income per fully diluted share was $3.83, up
243% compared to $1.12 in the third quarter of 2019.
”Our third quarter results continued to demonstrate the value of
our best-in-class shipping technology utilized by our eCommerce
shipping customers throughout the world. Our technology solutions
serve a broad variety of eCommerce customers, and facilitate their
operations at a critical time as they adapt to new consumer
purchasing behaviors and demands. We are extraordinarily proud of
our employees around the world who have adapted so well to various
new workplace dynamics while also driving innovation and excellence
under very difficult circumstances. We continue to believe we are
well positioned in our pursuit of becoming the leading worldwide
multi-carrier eCommerce shipping software company,” said Ken
McBride, Stamps.com’s Chairman and CEO.
Third Quarter 2020 Detailed Results
Third quarter 2020 total revenue was $193.9 million, up 42%
compared to the third quarter of 2019. Third quarter 2020 Mailing
and Shipping revenue (which includes service, product and insurance
revenue but excludes Customized Postage) was $193.9 million, up 46%
compared to the third quarter of 2019. Third quarter 2020
Customized Postage revenue was $0 million, down 100% compared to
the third quarter of 2019 as the USPS terminated its customized
postage program effective June 16, 2020.
Third quarter 2020 GAAP income from operations was $54.6
million, GAAP net income was $64.0 million, and GAAP net income per
share was $3.30 based on 19.4 million fully diluted shares
outstanding. This compares to third quarter 2019 GAAP income from
operations of $15.7 million, GAAP net income of $9.1 million, and
GAAP net income per share of $0.52 based on 17.4 million fully
diluted shares outstanding. Third quarter 2020 GAAP income from
operations, GAAP net income, and GAAP income per fully diluted
share increased by 249%, 599%, and 528% year-over-year,
respectively.
Third quarter 2020 GAAP income from operations included $10.2
million of non-cash stock-based compensation expense and $5.5
million of non-cash amortization of acquired intangibles. Third
quarter 2020 GAAP net income included $95 thousand of non-cash
amortization of debt issuance costs. Third quarter 2020 GAAP income
tax benefit was $9.5 million and non-GAAP income tax benefit was
$4.1 million, resulting in a $5.4 million non-GAAP tax expense
adjustment. The lower non-GAAP tax benefit reflects the tax impact
on the non-GAAP pre-tax income at a non-GAAP effective tax rate of
-5.8% for the third 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, third quarter 2020 non-GAAP income from
operations was $70.3 million. Also excluding non-cash amortization
of debt issuance costs and including the non-GAAP tax expense
adjustment, third quarter 2020 non-GAAP adjusted income was $74.3
million or $3.83 per share based on 19.4 million fully diluted
shares outstanding.
Third quarter 2019 GAAP income from operations included $11.8
million of non-cash stock-based compensation expense and $5.5
million of non-cash amortization of acquired intangibles. Third
quarter 2019 GAAP net income included $93 thousand of non-cash
amortization of debt issuance costs. Third quarter 2019 GAAP income
tax expense was $5.9 million and non-GAAP income tax expense was
$13.0 million, resulting in a $7.1 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 40.0% for the third quarter. Excluding the non-cash
stock-based compensation expense and non-cash amortization of
acquired intangibles, third quarter 2019 non-GAAP income from
operations was $33.0 million. Also excluding non-cash amortization
of debt issuance costs and including the non-GAAP tax expense
adjustment, third quarter 2019 non-GAAP adjusted income was $19.5
million or $1.12 per share based on 17.4 million fully diluted
shares outstanding.
Therefore, third quarter 2020 non-GAAP income from operations,
non-GAAP adjusted income, and non-GAAP adjusted income per fully
diluted share increased by 113%, 281%, and 243% 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 (Third
Quarter 2020)
Third Quarter Fiscal 2020
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
$
43.95
$
0.93
$
-
$
-
$
-
$
43.02
Research & Development
24.74
3.11
-
-
-
21.63
Sales & Marketing
41.75
2.47
-
-
-
39.28
General & Administrative
28.86
3.65
5.48
-
-
19.73
Total Expenses
139.30
10.16
5.48
-
-
123.66
Income (Loss) from Operations
54.62
(10.16
)
(5.48
)
-
-
70.26
Interest and Other Income (Loss)
(0.14
)
-
-
(0.10
)
-
(0.04
)
Benefit (Expense) for Income Taxes
9.48
-
-
-
5.41
4.07
Adjusted Income (Loss)
63.97
(10.16
)
(5.48
)
(0.10
)
5.41
74.29
On a diluted per share basis
$
3.30
$
(0.52
)
$
(0.28
)
$
(0.00
)
$
0.28
$
3.83
Shares used in per share calculation
19.41
19.41
19.41
19.41
19.41
19.41
Reconciliation of GAAP to Non-GAAP Financial Measures (Third
Quarter 2019)
Third 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
$
38.20
$
0.86
$
-
$
-
$
-
$
37.34
Research & Development
20.28
2.87
-
-
-
17.41
Sales & Marketing
33.06
2.69
-
-
-
30.37
General & Administrative
28.98
5.33
5.55
-
-
18.10
Total Expenses
120.52
11.75
5.55
-
-
103.22
Income (Loss) from Operations
15.65
(11.75
)
(5.55
)
-
-
32.95
Interest and Other Income (Loss)
(0.57
)
-
-
(0.09
)
-
(0.48
)
Benefit (Expense) for Income Taxes
(5.93
)
-
-
-
7.06
(12.99
)
Adjusted Income (Loss)
9.15
(11.75
)
(5.55
)
(0.09
)
7.06
19.48
On a diluted per share basis
$
0.52
$
(0.67
)
$
(0.32
)
$
(0.01
)
$
0.40
$
1.12
Shares used in per share calculation
17.44
17.44
17.44
17.44
17.44
17.44
Third Quarter GAAP Net Income and Non-GAAP Adjusted
EBITDA
Third quarter 2020 GAAP net income was $64.0 million, up 599%
compared to $9.1 million in the third quarter of 2019.
Third quarter 2020 non-GAAP adjusted EBITDA was $71.2 million,
up 107% compared to $34.5 million in the third quarter of 2019.
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
September
30,
2020
2019
GAAP Net Income (Loss)
$63.97
$9.15
Depreciation and Amortization Expense
$6.46
$7.08
Interest & Other Expense (Income), net
$0.14
$0.57
Income Tax Expense (Benefit), net
($9.48)
$5.93
Stock-based Compensation Expense
$10.16
$11.75
Adjusted EBITDA
$71.24
$34.49
Taxes
For the third quarter of 2020, the Company reported a GAAP
income tax benefit of $9.5 million representing an effective tax
rate of -17.4%. For the third quarter of 2019, the Company reported
a GAAP income tax expense of $5.9 million representing an effective
tax rate of 39.3%. As discussed below under the heading, “About
Non-GAAP Financial Measures,” we believe our effective annual tax
rate for 2020 will be approximately 12%. Accordingly, the third
quarter 2020 effective rate of -17.4% should not be assumed to
apply for 2020 as a whole, and our after tax income during the
remainder of 2020 will likely reflect a materially higher rate than
is reflected in our after tax results for the third quarter of
2020. Our third quarter 2020 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 third quarter of 2020, the Company repurchased
approximately 67 thousand shares at a total cost of approximately
$15.9 million.
The current Board-approved share repurchase program, which
expires in February 2021, remains in effect with a remaining
authorization of approximately $20 million as of November 4,
2020.
Summary of our Business Outlook
For fiscal year 2020, the Company currently expects its GAAP
financial outlook to be as follows:
- We expect total revenue to be in a range of approximately $705
million to $735 million; this compares to previous guidance of $650
million to $725 million.
- We expect GAAP net income to be in a range of approximately
$140 million to $157 million; this compares to previous guidance of
$79 million to $122 million.
- We expect GAAP net income per fully diluted share to be in a
range of approximately $7.30 to $8.27; this compares to previous
guidance of $3.93 to $6.70.
- We expect our 2020 effective tax rate to be approximately 12%;
this compares to previous guidance of 28%.
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 $230 million to $250 million; this compares to
previous guidance of $180 million to $240 million.
- We expect non-GAAP adjusted income per fully diluted share to
be in a range of approximately $10.35 to $11.35; this compares to
previous guidance of $6.25 to $9.25.
Detailed Discussion of our Business Outlook
As noted above, for 2020, the Company currently expects total
revenue to be in a range of approximately $705 million to $735
million; this compares to previous guidance of $650 million to $725
million.
Also, for 2020, the Company currently expects GAAP net income to
be in a range of approximately $140 million to $157 million; this
compares to previous guidance of $79 million to $122 million.
The expected GAAP net income range includes depreciation and
amortization expense of approximately $26 million, stock-based
compensation expense of approximately $44 million, interest and
other expense, net of approximately $1 million, and income tax
expense of approximately $19 million to $21 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
$230 million to $250 million; this compares to previous guidance of
$180 million to $240 million.
The following table is provided to facilitate a reconciliation
of 2020 expected non-GAAP adjusted EBITDA to expected GAAP net
income:
Fiscal Year 2020 Guidance All amounts in millions
Low End of Range
High End of Range GAAP
net income
$139.5
$157.1
Adjustments to reconcile adjusted EBITDA to
GAAP net income:
Stock-based compensation expense
$44.0
$44.0
Depreciation and amortization expense
$26.0
$26.0
Interest and other expense (income), net
$1.4
$1.4
Income tax expense
$19.0
$21.4
Total adjustments excluded from adjusted EBITDA
$90.5
$92.9
Adjusted EBITDA
$230.0
$250.0
As noted above, for 2020, the Company currently expects GAAP net
income per fully diluted share to be in a range of approximately
$7.30 to $8.27; this compares to previous guidance of $3.93 to
$6.70. The expected GAAP net income per fully diluted share range
includes non-cash stock-based compensation expense of approximately
$44 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 $8
million from the expected tax effects of these adjustments at an
assumed 12% effective full-year tax rate, we expect non-GAAP
adjusted income per fully diluted share to be in a range of $10.35
to $11.35; this compares to previous guidance of $6.25 to
$9.25.
The following table is provided to facilitate a reconciliation
of 2020 expected non-GAAP adjusted income per fully diluted share
to expected GAAP net income per fully diluted share:
Fiscal Year 2020
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
$7.30
$8.27
Adjustments to reconcile non-GAAP to
GAAP:
Stock-based compensation expense
$44.0
$44.0
Amortization of acquired intangibles
$22.0
$22.0
Amortization of debt issuance costs
$0.4
$0.4
Total adjustments excluded from non-GAAP
$66.4
$66.4
Projected effective tax rate
12.0%
12.0%
Increased tax expense from non-GAAP
adjustments
$8.0
$8.0
Total tax affected adjustments excluded from non-GAAP
$58.4
$58.4
Fully diluted shares
19.1
19.0
Total adjustments excluded from non-GAAP adjusted income per fully
diluted share
$3.05
$3.08
Non-GAAP adjusted income per fully diluted share
$10.35
$11.35
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 ranges 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, many 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, as
a result of, among other things, the factors described under
“Forward-Looking Statements,” below. 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
2020 Company metrics, updated to include the third quarter, is
available at https://investor.stamps.com (in the subsection
“Investor Metrics” under the dropdown menu “Financial Info”). 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
https://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, ShipEngine 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, ShipEngine 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 350 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.
ShipEngine offers a multi-carrier shipping platform for
e-commerce stores, logistics and warehouse providers, systems
integrators, e-commerce application integrators, and new
application developers. ShipEngine APIs enable developers to build
custom workflows within their own platforms and streamline the
e-commerce fulfillment process with real-time label generation,
rate quoting, parcel tracking, and address validation. ShipEngine
supports more than 30 different carriers and includes integrations
with leading e-commerce service providers, shopping carts, and
marketplaces.
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 400 carriers and 4,500 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.
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. Among other things,
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 2020 is 12%. The
decrease in our estimated effective tax rate for 2020 was primarily
driven by an increase in projected pre-tax book income and employee
stock option exercises.
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 Amended and Restated 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, and include statements that refer to future responses
to and effects of the COVID-19 pandemic. Important factors which
could cause actual results to differ materially from those in the
forward-looking statements, include (i) the Company’s ability to
monetize its customers’ transactions with carriers, including
uncertainties regarding the duration, renegotiation and ultimate
impact of existing and potential future arrangements with carriers
and partners and our success in implementing our strategy over the
long term, (ii) the significant and unprecedented uncertainty
regarding the business and economic impact of the ongoing COVID-19
pandemic (as well as the impact of efforts of governments,
businesses and individuals to mitigate the effects of such
pandemic) on the Company, its customers, its carrier and
integration partners and the global economy, which makes it
particularly difficult to predict the nature and extent of impacts
on demand for our products and services, making our business
outlook subject to considerable uncertainty, (iii) the Company's
ability to successfully integrate and realize the benefits of its
past or future strategic acquisitions or investments, (iv) the
Company’s ability to diversify its relationships with carriers, (v)
the impact of foreign exchange fluctuations and geopolitical risks,
and (vi) 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, 2019, Quarterly Reports on Form 10-Q
(particularly the “Risk Factors” sections of those reports), 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. Copies of these filings
may be obtained by visiting our investors relations website at
www.stamps.com or the SEC’s website at www.sec.gov. 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, MetaPack, PhotoStamps,
ShipEngine, ShippingEasy, ShipStation and ShipWorks are registered
trademarks of Stamps.com Inc. and its subsidiaries. All other
brands and names used in this release are the property of their
respective owners.
STAMPS.COM INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF OPERATIONS (in thousands, except per share data: unaudited)
Three Months ended
September 30,
Nine Months ended
September 30,
2020
2019
2020
2019
Revenues: Service
$
183,779
$
124,643
$
509,905
$
375,979
Product
5,816
5,116
18,599
15,306
Insurance
4,322
3,106
11,598
9,871
Customized postage*
-
3,307
11,891
9,792
Total revenues
193,917
136,172
551,993
410,948
Cost of revenues: Service
41,998
34,040
115,990
98,727
Product
1,954
1,602
6,103
4,824
Customized postage*
-
2,560
10,000
7,431
Total cost of revenues
43,952
38,202
132,093
110,982
Gross profit
149,965
97,970
419,900
299,966
Operating expenses: Sales and marketing
41,748
33,058
120,636
99,181
Research and development
24,739
20,281
68,946
56,725
General and administrative
28,856
28,980
90,339
82,743
Total operating expenses
95,343
82,319
279,921
238,649
Income from operations
54,622
15,651
139,979
61,317
Foreign currency exchange gain (loss), net
(67
)
(38
)
(238
)
(285
)
Interest expense
(96
)
(589
)
(1,019
)
(1,948
)
Interest income and other income (loss), net
27
53
59
170
Income before income taxes
54,486
15,077
138,781
59,254
Income tax (benefit) expense
(9,485
)
5,929
6,590
20,359
Net income
$
63,971
$
9,148
$
132,191
$
38,895
Net income per share: Basic
$
3.59
$
0.53
$
7.61
$
2.24
Diluted
$
3.30
$
0.52
$
7.02
$
2.19
Weighted average shares outstanding: Basic
17,826
17,144
17,376
17,326
Diluted
19,406
17,441
18,842
17,753
*The customized postage program was eliminated by the United
States Postal Service effective June 16, 2020. As a result, the
Company does not expect material customized postage revenue or cost
of revenue after June 2020.
CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, unaudited)
September 30,
December 31,
2020
2019
ASSETS Cash and cash equivalents
$
389,618
$
156,307
Accounts receivable, net
60,220
74,898
Current income taxes
17,696
300
Prepaid expenses and other current assets
70,277
43,178
Property and equipment, net
33,008
32,983
Goodwill and intangible assets, net
506,716
529,603
Deferred income taxes, net
27,056
27,056
Other assets
105,795
38,171
Total assets
$
1,210,386
$
902,496
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities:
Accounts payable and other liabilities
280,693
167,213
Debt, net of debt issuance costs
-
50,188
Deferred income taxes, net
11,159
11,455
Deferred revenue
9,895
8,015
Total liabilities
301,747
236,871
Stockholders' equity: Common stock
57
56
Additional paid-in capital
1,249,420
1,098,426
Treasury stock
(627,360
)
(593,511
)
Retained earnings
283,132
150,941
Accumulated other comprehensive income (loss)
3,390
9,713
Total stockholders' equity
908,639
665,625
Total liabilities and stockholders' equity
1,210,386
902,496
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105006042/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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