Attached files
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8-K - FORM 8-K - BLUCORA, INC. | d350130d8k.htm |
EX-99.1 - PRESS RELEASE - BLUCORA, INC. | d350130dex991.htm |
Exhibit 99.2
InfoSpace, Inc.
Q1 2012 Earnings
Supplemental Information
Table of Contents
Financial Information |
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Summary - Consolidated Financial Results |
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Reconciliation of Non-GAAP Financial Measures |
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Operating Metrics |
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Search |
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Tax Preparation |
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Pro-Forma Information |
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Q1 year-over-year Tax Preparation |
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Last 12 Months - Pro Forma Results |
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Last 12 Months - Levered Free Cash Flow |
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Reconciliation Pro Forma Non-GAAP Financial Measures |
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1
InfoSpace Consolidated Financial Results
(in thousands except earnings per share, rounding differences may exist)
2010 | 2011 | 2012 | ||||||||||||||||||||||||||
FYE 12/31 | 1Q11 | 2Q11 | 3Q11 | 4Q11 | FYE 12/31 | 1Q12 | ||||||||||||||||||||||
Segment Revenue |
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Search |
$ | 214,343 | $ | 51,650 | $ | 54,292 | $ | 56,257 | $ | 66,615 | $ | 228,814 | $ | 75,294 | ||||||||||||||
Tax Preparation (1) |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 40,401 | ||||||||||||||
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Total |
$ | 214,343 | $ | 51,650 | $ | 54,292 | $ | 56,257 | $ | 66,615 | $ | 228,814 | $ | 115,695 | ||||||||||||||
Segment Income (2) |
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Search |
$ | 49,266 | $ | 11,095 | $ | 11,534 | $ | 10,809 | $ | 12,768 | $ | 46,206 | $ | 13,373 | ||||||||||||||
Tax Preparation (1) |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 22,134 | ||||||||||||||
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Total |
$ | 49,266 | $ | 11,095 | $ | 11,534 | $ | 10,809 | $ | 12,768 | $ | 46,206 | $ | 35,507 | ||||||||||||||
Segment Income % of Revenue |
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Search |
23 | % | 21 | % | 21 | % | 19 | % | 19 | % | 20 | % | 18 | % | ||||||||||||||
Tax Preparation |
na | na | na | na | na | na | 55 | % | ||||||||||||||||||||
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Total |
23 | % | 21 | % | 21 | % | 19 | % | 19 | % | 20 | % | 31 | % | ||||||||||||||
Unallocated Corporate Operating Expense |
$ | 16,801 | $ | 2,130 | $ | 2,543 | $ | 2,307 | $ | 2,603 | $ | 9,583 | $ | 3,805 | (3) | |||||||||||||
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Adjusted EBITDA |
$ | 32,465 | $ | 8,965 | $ | 8,991 | $ | 8,502 | $ | 10,165 | $ | 36,623 | $ | 31,702 | ||||||||||||||
Other Unallocated Corporate |
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Depreciation |
$ | 6,596 | $ | 1,451 | $ | 1,376 | $ | 1,115 | $ | 919 | $ | 4,861 | $ | 951 | ||||||||||||||
Amortization of Intangibles |
$ | 9,197 | $ | 958 | $ | 772 | $ | 518 | $ | 347 | $ | 2,595 | $ | 3,624 | (4) | |||||||||||||
Stock Compensation |
$ | 13,919 | $ | 2,033 | $ | 1,338 | $ | 3,049 | (5) | $ | 1,267 | $ | 7,687 | $ | 6,708 | (5) | ||||||||||||
Other (Income) Expense |
-$ | 15,244 | -$ | 75 | -$ | 107 | $ | 455 | $ | 972 | $ | 1,245 | $ | 1,555 | ||||||||||||||
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Total |
$ | 14,468 | $ | 4,367 | $ | 3,379 | $ | 5,137 | $ | 3,505 | $ | 16,388 | $ | 12,838 | ||||||||||||||
Income Before Taxes |
$ | 17,997 | $ | 4,598 | $ | 5,612 | $ | 3,365 | $ | 6,660 | $ | 20,235 | $ | 18,864 | ||||||||||||||
Income Tax |
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Cash |
$ | 196 | $ | 113 | $ | 133 | $ | 68 | $ | 1,398 | $ | 1,712 | $ | 861 | ||||||||||||||
Non-cash (6) |
$ | 8,530 | $ | 1,589 | $ | 1,803 | $ | 1,221 | -$ | 17,613 | -$ | 13,000 | $ | 6,597 | ||||||||||||||
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Total |
$ | 8,726 | $ | 1,702 | $ | 1,936 | $ | 1,289 | -$ | 16,215 | (7) | -$ | 11,288 | $ | 7,458 | |||||||||||||
Income from Continuing Operations |
$ | 9,271 | $ | 2,896 | $ | 3,676 | $ | 2,076 | $ | 22,875 | $ | 31,523 | $ | 11,406 | ||||||||||||||
Discontinued Operations Loss (8) |
-$ | 4,593 | -$ | 1,573 | -$ | 8,354 | $ | 0 | $ | 0 | -$ | 9,927 | $ | 0 | ||||||||||||||
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GAAP Net Income (Loss) |
$ | 4,678 | $ | 1,323 | -$ | 4,678 | $ | 2,076 | $ | 22,875 | $ | 21,596 | $ | 11,406 | ||||||||||||||
GAAP Earnings Per Share |
$ | 0.13 | $ | 0.04 | -$ | 0.12 | $ | 0.05 | $ | 0.57 | $ | 0.56 | $ | 0.28 | ||||||||||||||
Non-GAAP Net Income |
$ | 40,557 | $ | 7,433 | $ | 7,590 | $ | 6,846 | $ | 6,896 | $ | 28,765 | $ | 28,517 | ||||||||||||||
Non-GAAP Earnings Per Share |
$ | 1.10 | $ | 0.20 | $ | 0.20 | $ | 0.17 | $ | 0.17 | $ | 0.74 | $ | 0.70 | ||||||||||||||
Outstanding Shares |
36,089 | 36,502 | 37,964 | 39,323 | 39,534 | 39,534 | 39,804 | |||||||||||||||||||||
Basic Shares |
35,886 | 36,339 | 37,422 | 38,568 | 39,448 | 37,954 | 39,692 | |||||||||||||||||||||
Fully-diluted Shares |
36,829 | 37,084 | 38,128 | 39,158 | 40,074 | 38,621 | 40,978 | |||||||||||||||||||||
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Cash & Short-term Investment |
$ | 253,736 | $ | 249,765 | $ | 263,402 | $ | 279,276 | $ | 293,551 | $ | 293,551 | $ | 129,868 | ||||||||||||||
Outstanding Debt |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 85,000 | ||||||||||||||
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Net Cash |
$ | 253,736 | $ | 249,765 | $ | 263,402 | $ | 279,276 | $ | 293,551 | $ | 293,551 | $ | 44,868 |
(1) | On January 31, 2012, the Company acquired TaxACT Holdings, Inc. and its wholly-owned subsidiary, 2nd Story Software, Inc., which operates the TaxACT tax preparation software and online service and software business. The TaxACT business consists of an online tax preparation service for individuals, tax preparation software for individuals and professional tax preparers, and ancillary data storage and financial services. The majority of the TaxACT businesss revenue is generated by the online service at www.taxact.com. As a highly seasonal business, almost all of the TaxACT revenue is generated in the first four months of the calendar year. Amounts represent the results of operations for the TaxACT business from February 1, 2012 to March 31, 2012. |
(2) | Amounts do not include amortization of acquired technology and costs associated with the operation of the Companys data center that serves its tax preparation and search businesses, including depreciation, personnel expenses, (including stock-based compensation expense), energy, and bandwidth costs, and personnel costs associated with customer service. |
(3) | Amount for the quarter ended March 31, 2012 includes $1.1 million in transaction costs related to the TaxACT acquisition. |
(4) | Amount for the quarter ended March 31, 2012 includes $3.4 million related to amortization of acquired intangible assets related to the TaxACT acquisition. |
(5) | In the quarter ended September 30, 2011, $1.9 million in stock-based compensation expense was recorded in association with issuance of a warrant. In the quarter ended March 31, 2011, $5.2 million in stock-based compensation expense was recorded in association with the modification of the terms of a warrant and the vesting of a non-employee performance-based equity award, which were both triggered by the acquisition of the TaxACT business. |
(6) | Amounts represent the non-cash portion of income tax expense from continuing operations. The Company excludes the non-cash portion of income tax expense because of its ability to offset a substantial portion of its cash tax liabilities by using these deferred tax assets. The majority of these deferred tax assets will expire if unutilized in 2020. |
(7) | Amount includes a tax benefit of $19.6 million, due to the release of the valuation allowance on deferred tax assets. |
(8) | In the quarter ended June 30, 2011, the Company completed the sale of its Mercantila e-commerce business. The operating results of that business have been presented as discontinued operations for all periods presented. |
2
InfoSpace Non-GAAP Reconciliation (1)
(in thousands except earnings per share, rounding differences may exist)
2010 | 2011 | 2012 | ||||||||||||||||||||||||||
FYE 12/31 | 1Q11 | 2Q11 | 3Q11 | 4Q11 | FYE 12/31 | 1Q12 | ||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||||
Net Income (2) |
$ | 4,678 | $ | 1,323 | $ | (4,678 | ) | $ | 2,076 | $ | 22,875 | $ | 21,596 | $ | 11,406 | |||||||||||||
Discontinued operations |
4,593 | 1,573 | 8,354 | | | 9,927 | | |||||||||||||||||||||
Depreciation |
6,596 | 1,451 | 1,376 | 1,115 | 919 | 4,861 | 951 | |||||||||||||||||||||
Amortization of intangible assets |
9,197 | 958 | 772 | 518 | 347 | 2,595 | 3,624 | |||||||||||||||||||||
Stock-based compensation |
13,919 | 2,033 | 1,338 | 3,049 | 1,267 | 7,687 | 6,708 | |||||||||||||||||||||
Other (income) expense (3) |
(15,244 | ) | (75 | ) | (107 | ) | 455 | 972 | 1,245 | 1,555 | ||||||||||||||||||
Income tax expense (benefit) |
8,726 | 1,702 | 1,936 | 1,289 | (16,215 | ) | (11,288 | ) | 7,458 | |||||||||||||||||||
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Adjusted EBITDA |
$ | 32,465 | $ | 8,965 | $ | 8,991 | $ | 8,502 | $ | 10,165 | $ | 36,623 | $ | 31,702 | ||||||||||||||
Non-GAAP Net Income | ||||||||||||||||||||||||||||
Net Income (2) |
$ | 4,678 | $ | 1,323 | $ | (4,678 | ) | $ | 2,076 | $ | 22,875 | $ | 21,596 | $ | 11,406 | |||||||||||||
Discontinued operations |
4,593 | 1,573 | 8,354 | | | 9,927 | | |||||||||||||||||||||
Amortization of acquired intangible assets |
9,197 | 958 | 772 | 518 | 347 | 2,595 | 3,624 | |||||||||||||||||||||
Stock-based compensation |
13,919 | 2,033 | 1,338 | 3,049 | 1,267 | 7,687 | 6,708 | |||||||||||||||||||||
Loss on derivative |
| | | | | | 272 | |||||||||||||||||||||
Cash tax impacts of GAAP adjustments |
(360 | ) | (43 | ) | 1 | (18 | ) | 20 | (40 | ) | (90 | ) | ||||||||||||||||
Non-cash income tax expenses (benefit) from continuing operations (1) |
8,530 | 1,589 | 1,803 | 1,221 | (17,613 | ) | (13,000 | ) | 6,597 | |||||||||||||||||||
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Non-GAAP net income (4) |
$ | 40,557 | $ | 7,433 | $ | 7,590 | $ | 6,846 | $ | 6,896 | $ | 28,765 | $ | 28,517 | ||||||||||||||
Non-GAAP Earnings Per Share | ||||||||||||||||||||||||||||
Non-GAAP Net Income |
$ | 40,557 | $ | 7,433 | $ | 7,590 | $ | 6,846 | $ | 6,896 | $ | 28,765 | $ | 28,517 | ||||||||||||||
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Non-GAAP Earnings Per Share (4) |
$ | 1.10 | $ | 0.20 | $ | 0.20 | $ | 0.17 | $ | 0.17 | $ | 0.74 | $ | 0.70 | ||||||||||||||
Fully-diluted Shares |
36,829 | 37,084 | 38,128 | 39,158 | 40,074 | 38,621 | 40,978 |
(1) | For definitions of these non-GAAP financial measures and their relationship to the Companys GAAP financial statements, please see Note 1 to the Companys Reconciliations of Non-GAAP financial Measures to the Nearest Comparable GAAP Measure for the three months ended March 31, 2012 and 2011 in exhibit 99.1 to this Current Report on Form 8-K filed on March 9, 2012. |
(2) | As presented in the Preliminary Condensed Consolidated Statements of Operations (unaudited). |
(3) | Other loss (income), net includes such items as interest expense, interest income, derivative instrument gains or losses, foreign currency gains or losses, gains or losses from the disposal of assets, adjustments to the fair values of contingent liabilities related to business combinations, gains on resolutions of contingencies and litigation settlements. |
(4) | Amounts previously disclosed have been revised to reflect the effect of classifying the Companys Mercantila e-commerce business as discontinued operations. |
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InfoSpace Operating MetricsSearch
2010 | 2011 | 2012 | ||||||||||||||||||||||||||
FYE 12/31 | 1Q11 | 2Q11 | 3Q11 | 4Q11 | FYE 12/31 | 1Q12 | ||||||||||||||||||||||
Revenue by Source |
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Owned & Operated (B2C) |
31 | % | 27 | % | 22 | % | 19 | % | 16 | % | 21 | % | 13 | % | ||||||||||||||
Distribution (B2B) |
69 | % | 73 | % | 78 | % | 81 | % | 84 | % | 79 | % | 87 | % |
* | Owned & Operated includes revenue from the Make The Web Better acquisition in 2Q 2010; the installed base has experienced attrition since the acquisition. Owned & Operated also includes other development-stage initiatives. |
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InfoSpace Operating MetricsTax Preparation
(in thousands, rounding differences may exist)
2011 Season through: | 2012 Season through: | % Change Year over Year | ||||||||||||||||||||||
3/31/11 | 4/19/11 | 3/31/12 | 4/18/12 | 3/31/12 | 4/18/12 | |||||||||||||||||||
Consumer (DDIY) e-files |
3,626 | 4,654 | 3,913 | 5,025 | 8 | % | 8 | % |
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Tax Preparation SegmentPro Forma 1Q Year-over-Year Results
(in thousands, rounding differences may exist)
(a) 1Q12 |
1Q11 | Growth | ||||||||||||||
Pro Forma Revenue |
$ | 61,944 | $ | 56,758 | 9 | % | ||||||||||
Pro Forma Segment Income |
(b | ) | $ | 30,577 | $ | 28,564 | 7 | % | ||||||||
Segment Margin |
49 | % | 50 | % |
(a) | Includes $650,000 of revenue not reported on a GAAP basis due to purchase accounting in February and March 2012, and revenue of $20.9 million for January 2012 (prior to acquisition). |
(b) | Excludes $120,000 and $1.1 million of non-operational expenses related to a non-consummated sales transaction for 1Q 2012 and 1Q 2011. |
Tax Preparation SegmentPro Forma Calendar Quarter Historical Performance
(in thousands, rounding differences may exist)
2Q11 | 3Q11 | 4Q11 | FY 2011 | |||||||||||||||||
Pro Forma Revenue |
$ | 17,815 | $ | 2,004 | $ | 2,204 | $ | 78,782 | ||||||||||||
Pro Forma Segment Income |
(c | ) | $ | 10,556 | $ | (435 | ) | $ | (1,134 | ) | $ | 37,551 | ||||||||
Segment Margin |
59 | % | -22 | % | -51 | % | 48 | % |
(c) | Excludes $1.8 million, $3.6 million, $2.9 million and $9.3 million of non-operational expenses related to a non-consummated sales transaction for 2Q 2011, 3Q 2011, 4Q 2011 and full-year 2011. |
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Pro FormaConsolidated Financial Performance
twelve months ending 3/31/2012
(in thousands, rounding differences may exist)
(a) Tax Preparation |
Search | Corporate | Consolidated | |||||||||||||||||
Revenue |
$ | 83,968 | $ | 252,458 | $ | | $ | 336,426 | ||||||||||||
Segment income |
$ | 39,564 | (b | ) | $ | 48,484 | $ | | $ | 88,048 | ||||||||||
Unallocated Corporate expenses |
$ | | $ | | $ | (11,260 | ) | $ | (11,260 | ) | ||||||||||
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Adjusted EBITDA |
$ | 76,788 | ||||||||||||||||||
Non-GAAP Net Income |
$ | 64,345 | ||||||||||||||||||
Non-GAAP Earnings Per Share |
$ | 1.63 | ||||||||||||||||||
Diluted Shares for the twelve-month period ended March 31, 2012 |
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39,586 |
(a) | Includes $650,000 of revenue not reported on a GAAP basis due to purchase accounting in February and March 2012, and $42.9 million of revenue prior to the acquisition (April 2011 - January 2012). |
(b) | Includes $650,000 of revenue not reported on a GAAP basis due to purchase accounting in February and March 2012 and excludes $8.4 million of non-operational expenses related to a non-consummated sales transaction. |
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Pro-Forma Free Cash Flow (FCF)
twelve months ending 3/31/2012
(in thousands, rounding differences may exist)
Pro Forma Adjusted EBITDA |
$ | 76,788 | ||||||
LessPro Forma Capital Expenditures |
$ | (2,100 | ) | |||||
LessPro Forma Cash Taxes |
$ | (800 | ) | |||||
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Unlevered FCF |
$ | 73,888 | ||||||
LessPro Forma Cash Interest Expense |
$ | (5,000 | ) | (a | ) | |||
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Levered FCF |
$ | 68,888 | ||||||
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(a) | Interest expense estimated at initial debt amount of $100 million and assumes a 5% interest rate, and as of March 31, 2012, $85 million of debt is outstanding. |
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InfoSpace Pro Forma Non-GAAP Reconciliation
twelve months ending 3/31/2012
(in thousands except rates, rounding differences may exist)
Pro Forma Adjusted EBITDA |
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Pro forma income from continuing operations |
$ | 18,108 | ||
Pro forma depreciation |
4,971 | |||
Pro forma amortization of intangible assets |
22,033 | |||
Pro forma stock-based compensation |
13,373 | |||
Pro forma other expense, net |
7,034 | |||
Pro forma income tax expense |
11,269 | |||
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Pro Forma Adjusted EBITDA |
$ | 76,788 | ||
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Pro Forma Non-GAAP Net Income |
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Pro forma income from continuing operations |
$ | 18,108 | ||
Pro forma amortization of acquired intangible assets |
22,033 | |||
Pro forma stock-based compensation |
13,373 | |||
Loss on derivative |
272 | |||
Pro forma cash tax impact of GAAP adjustments |
90 | |||
Pro forma non-cash income tax expense from continuing operations |
10,469 | |||
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Pro forma non-GAAP net income |
$ | 64,345 | ||
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Pro forma non-GAAP Earnings per sharediluted |
$ | 1.63 | ||
Weighted average diluted shares |
39,586 |
(1) | For definitions of these non-GAAP financial measures and their relationship to the Companys GAAP financial statements, please see Note 1 to the Companys Reconciliations of Non-GAAP financial Measures to the Nearest Comparable GAAP Measure for the three months ended March 31, 2012 and 2011 in exhibit 99.1 to this Current Report on Form 8-K filed on March 9, 2012. |
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