Attached files
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8-K - 8-K - ADVENT SOFTWARE INC /DE/ | a15-3205_18k.htm |
EX-10.1 - EX-10.1 - ADVENT SOFTWARE INC /DE/ | a15-3205_1ex10d1.htm |
EX-99.2 - EX-99.2 - ADVENT SOFTWARE INC /DE/ | a15-3205_1ex99d2.htm |
ADVENT SOFTWARE REPORTS FOURTH QUARTER AND FULL YEAR 2014 RESULTS
· Record Full-Year GAAP Operating Income of $84 Million, up 82%
· Record Full-Year Operating Cash Flow of $115 Million, up 17%
SAN FRANCISCO February 2, 2015 Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the fourth quarter and fiscal year ended December 31, 2014.
FOURTH QUARTER AND FULL YEAR 2014 RESULTS
GAAP Results for Continuing Operations
The Company reported quarterly revenue of $100.7 million for the fourth quarter of 2014, compared to $97.6 million in the fourth quarter of 2013, a 3% increase. Revenue for the year ended December 31, 2014 was $396.8 million, compared to $383.0 million recorded in 2013, a 4% increase.
Operating income for the fourth quarter of 2014 was $22.4 million, or 22.3% of revenue, compared to $18.4 million or 18.9% of revenue for the fourth quarter of 2013. Operating income for the year ended December 31, 2014 was $83.7 million, or 21.1% of revenue, compared to $46.1 million, or 12.0% of revenue, for 2013. Advents operating income for fiscal year 2013 included recapitalization charges of $6.0 million and stock compensation expense of $48.2 million, of which $26.7 million was due to the modification of equity awards.
Net income for the fourth quarter of 2014 was $14.7 million compared to $11.0 million in the fourth quarter of 2013, a 33% increase. Net income for the year ended December 31, 2014 was $50.3 million compared to $28.8 million for 2013, a 75% increase. On a fully diluted basis, earnings per share in the fourth quarter of 2014 were $0.27, compared to $0.20 in the fourth quarter of 2013. On a fully diluted basis, earnings per share for the year ended December 31, 2014 were $0.94, compared to $0.54 for 2013.
Operating cash flow in the fourth quarter of 2014 was $43.6 million, compared with $36.7 million in the fourth quarter of 2013, a 19% increase. Operating cash flow for the year ended December 31, 2014 totaled $115.2 million, compared with $98.6 million in 2013, a 17% increase.
Cash, cash equivalents, and marketable securities totaled $38.0 million as of December 31, 2014, compared to $33.8 million as of December 31, 2013. Total outstanding debt as of December 31, 2014 was $220 million compared to $305 million as of December 31, 2013. Deferred revenue as of December 31, 2014 was $204 million, compared to $194 million as of December 31, 2013.
Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the fourth quarter of 2014 was $31.2 million, or 31.0% of revenue. This represents an 8% increase compared to $28.9 million, or 29.6% of revenue, in the fourth quarter of 2013. Non-GAAP operating income for the year ended December 31, 2014 was $125.8 million, or 31.7% of revenue. This represents a 9% increase compared to $115.3 million of non-GAAP operating income, or 30.1% of revenue, for 2013.
On a fully diluted basis, non-GAAP earnings per share were $0.36 in the fourth quarter of 2014 and represent a 13% increase from non-GAAP diluted net income per share of $0.32 in the fourth quarter of 2013. On a fully diluted basis, non-GAAP earnings per share were $1.44 for the year ended December 31, 2014, a 9% increase compared to $1.32 per share for 2013.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
FOURTH QUARTER AND FULL YEAR 2014 HIGHLIGHTS
Strong Performance Across Key Metrics: Annualized recurring run rate was $383.4 million as of December 31, 2014, an increase of 7% over the prior year. The average full year renewal rate for the year ended December 31, 2014 was 98%, compared with 97% in 2013, an increase of 80 basis points. The Annual Contract Value (ACV) of our new contract bookings in the fourth quarter of 2014 will contribute $10.1 million in annual revenue once the contracts are fully implemented. This represents a 15% increase compared to $8.8 million of ACV in the fourth quarter of 2013.
Recognition as Market Leader in Investment Management Software: Advents solutions received many industry awards and global honors during the fourth quarter. Advent was named Best Fund Accounting and Reporting Software at the HFM US Hedge Fund Services Awards 2014. Advents Geneva® was named Best Buy-Side Portfolio Accounting Platform, and Advent Portfolio Exchange® (APX) in conjunction with Advent Direct® Investor Management was named Best Buy-Side CRM Platform in the Buy-Side Technology Awards 2014. Internationally, Advent was recognized as Best Technology Provider at the Investment Week Fund Services Awards 2014 and as Best Portfolio Management Solution and Best Client Communications and Reporting Solution at the inaugural WealthBriefing Gulf Co-operation Council (GCC) Region Awards 2014 ceremony held in Dubai.
Product Upgrades Across the Advent Portfolio: Advent announced global availability of new releases to several key products that include compelling new functionality for asset and wealth management firms, alternative managers, family offices, and administrators. The updated products include Geneva®, Black DiamondSM, Advent Portfolio Exchange® (APX), Moxy®, Advent Rules Manager®, and Advent Revenue Center®. In 2014, Advent introduced Advent Direct® Investor Management, the first solution to be released to selected clients on the Advent Direct® cloud platform.
INVESTOR CALL
Advent Software, Inc. has cancelled its Q4 and full year 2014 earnings conference call originally scheduled for 5:30 p.m. Eastern time today. The Company will be participating in a conference call hosted by SS&C Technologies Holdings, Inc. this afternoon at 5:00 p.m. ET. Dial (877) 312-8798 (US and Canada) or (253) 237-1193 (International), and request the SS&C to Acquire Advent Software conference call; conference ID# 77079438. Alternatively a live audio webcast can be accessed via http://investor.ssctech.com. To expedite the registration process, you may pre-register for the event by clicking here. A replay of the conference call will be available one hour after the conference call, for 48 hours. The dial-in number is (855) 859-2056 (US and Canada) or (404) 537-3406 (International); access code# 77079438.
ABOUT ADVENT
Over the last 30 years of industry change, our core mission to help our clients focus on their unique strategies and deliver exceptional investor service has never wavered. With unparalleled precision and ahead of the curve solutions, weve helped over 4,300 firms in more than 50 countries - from established global institutions to small start-up practices to grow their business and thrive. Advent technology helps firms minimize risk, work together seamlessly, and discover new opportunities in a constantly evolving world. Together with our clients, we are shaping the future of investment management. For more information on Advent products visit http://www.advent.com.
ABOUT NON-GAAP FINANCIAL INFORMATION
This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), please see the accompanying tables entitled Reconciliation of Selected Continuing Operations GAAP Measures to Non-GAAP Measures.
FORWARD-LOOKING STATEMENTS
Any forward-looking statements included herein reflect managements best judgment based on factors currently known and involve risks and uncertainties; our actual results may differ materially from those discussed here. These risks and uncertainties include: potential fluctuations in new contract bookings, renewal rates, operating results and future growth rates; continued market acceptance of our products; the successful development, release and market acceptance of new products and product enhancements; uncertainties and fluctuations in the financial markets; the Companys ability to declare future dividends; the Companys ability to satisfy contractual performance requirements and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2013 Annual Report on Form 10-K. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Advent, the Advent logo, Advent Software, Geneva®, Advent Portfolio Exchange®, Moxy®, Advent Revenue Center®, Advent Rules Manager® and Advent Direct® are registered trademarks, and Black Diamond is a mark, of Advent Software, Inc. Any other company names or marks mentioned herein are those of their respective owners.
CONTACTS
Media Contact:
Kendall Reischl
Advent Software, Inc.
(415) 645-1771
kendall.reischl@advent.com
Investor Relations Contact:
Justin Ritchie
Advent Software, Inc.
(415) 645-1683
jritchie@advent.com
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(GAAP, Unaudited)
|
|
December 31 |
|
December 31 |
| ||
|
|
2014 |
|
2013 |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
28,784 |
|
$ |
33,828 |
|
Short-term marketable securities |
|
7,298 |
|
|
| ||
Accounts receivable, net |
|
61,870 |
|
58,717 |
| ||
Deferred taxes, current |
|
28,275 |
|
24,898 |
| ||
Prepaid expenses and other |
|
24,984 |
|
30,114 |
| ||
Current assets of discontinued operation |
|
|
|
100 |
| ||
Total current assets |
|
151,211 |
|
147,657 |
| ||
Property and equipment, net |
|
27,995 |
|
31,698 |
| ||
Goodwill |
|
202,290 |
|
207,818 |
| ||
Other intangibles, net |
|
18,803 |
|
27,392 |
| ||
Long-term marketable securities |
|
1,874 |
|
|
| ||
Deferred taxes, long-term |
|
18,358 |
|
23,020 |
| ||
Other assets |
|
13,245 |
|
17,372 |
| ||
Noncurrent assets of discontinued operation |
|
1,093 |
|
1,337 |
| ||
|
|
|
|
|
| ||
Total assets |
|
$ |
434,869 |
|
$ |
456,294 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS DEFICIT |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
|
$ |
12,041 |
|
$ |
5,348 |
|
Dividends payable |
|
6,750 |
|
|
| ||
Accrued liabilities |
|
36,541 |
|
41,625 |
| ||
Deferred revenues |
|
197,144 |
|
186,107 |
| ||
Income taxes payable |
|
132 |
|
|
| ||
Current portion of long-term debt |
|
20,000 |
|
20,000 |
| ||
Current liabilities of discontinued operation |
|
572 |
|
600 |
| ||
Total current liabilities |
|
273,180 |
|
253,680 |
| ||
Deferred revenues, long-term |
|
6,972 |
|
7,809 |
| ||
Long-term income taxes payable |
|
9,513 |
|
7,667 |
| ||
Long-term debt |
|
200,000 |
|
285,000 |
| ||
Other long-term liabilities |
|
7,821 |
|
11,171 |
| ||
Noncurrent liabilities of discontinued operation |
|
2,170 |
|
2,782 |
| ||
|
|
|
|
|
| ||
Total liabilities |
|
499,656 |
|
568,109 |
| ||
|
|
|
|
|
| ||
Stockholders deficit: |
|
|
|
|
| ||
Common stock |
|
519 |
|
513 |
| ||
Additional paid-in capital |
|
61,455 |
|
42,533 |
| ||
Accumulated deficit |
|
(130,234 |
) |
(165,870 |
) | ||
Accumulated other comprehensive income |
|
3,473 |
|
11,009 |
| ||
Total stockholders deficit |
|
(64,787 |
) |
(111,815 |
) | ||
|
|
|
|
|
| ||
Total liabilities and stockholders deficit |
|
$ |
434,869 |
|
$ |
456,294 |
|
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(GAAP, Unaudited)
|
|
Three Months Ended December 31 |
|
Twelve Months Ended December 31 |
| ||||||||
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
Net revenues: |
|
|
|
|
|
|
|
|
| ||||
Recurring revenues |
|
$ |
92,937 |
|
$ |
89,019 |
|
$ |
365,290 |
|
$ |
349,881 |
|
Non-recurring revenues |
|
7,727 |
|
8,560 |
|
31,530 |
|
33,078 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total net revenues |
|
100,664 |
|
97,579 |
|
396,820 |
|
382,959 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cost of revenues (1): |
|
|
|
|
|
|
|
|
| ||||
Recurring revenues |
|
21,065 |
|
18,417 |
|
80,369 |
|
70,590 |
| ||||
Non-recurring revenues |
|
6,705 |
|
8,956 |
|
30,380 |
|
40,044 |
| ||||
Amortization of developed technology |
|
1,594 |
|
1,682 |
|
6,772 |
|
9,087 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total cost of revenues |
|
29,364 |
|
29,055 |
|
117,521 |
|
119,721 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross margin |
|
71,300 |
|
68,524 |
|
279,299 |
|
263,238 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses (1): |
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
|
19,309 |
|
20,098 |
|
74,996 |
|
79,065 |
| ||||
Product development |
|
17,727 |
|
17,464 |
|
69,532 |
|
69,718 |
| ||||
General and administrative |
|
10,894 |
|
10,842 |
|
43,010 |
|
54,737 |
| ||||
Amortization of other intangibles |
|
803 |
|
912 |
|
3,391 |
|
3,775 |
| ||||
Recapitalization costs |
|
|
|
|
|
|
|
6,041 |
| ||||
Restructuring charges |
|
135 |
|
811 |
|
4,628 |
|
3,770 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total operating expenses |
|
48,868 |
|
50,127 |
|
195,557 |
|
217,106 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations |
|
22,432 |
|
18,397 |
|
83,742 |
|
46,132 |
| ||||
Interest and other income (expense), net |
|
(1,365 |
) |
(2,603 |
) |
(6,961 |
) |
(7,213 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations before income taxes |
|
21,067 |
|
15,794 |
|
76,781 |
|
38,919 |
| ||||
Provision for income taxes |
|
6,369 |
|
4,777 |
|
26,518 |
|
10,167 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income from continuing operations |
|
$ |
14,698 |
|
$ |
11,017 |
|
$ |
50,263 |
|
$ |
28,752 |
|
|
|
|
|
|
|
|
|
|
| ||||
Discontinued operation: |
|
|
|
|
|
|
|
|
| ||||
Net income (loss) from discontinued operation (net of applicable taxes of $6, $(16), $(32) and $34, respectively) |
|
5 |
|
(18 |
) |
(51 |
) |
50 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
|
$ |
14,703 |
|
$ |
10,999 |
|
$ |
50,212 |
|
$ |
28,802 |
|
|
|
|
|
|
|
|
|
|
| ||||
Basic net income (loss) per share (2): |
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
|
$ |
0.28 |
|
$ |
0.22 |
|
$ |
0.98 |
|
$ |
0.56 |
|
Discontinued operation |
|
(0.00 |
) |
(0.00 |
) |
(0.00 |
) |
(0.00 |
) | ||||
Total operations |
|
$ |
0.28 |
|
$ |
0.22 |
|
$ |
0.97 |
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted net income (loss) per share (2): |
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
|
$ |
0.27 |
|
$ |
0.20 |
|
$ |
0.94 |
|
$ |
0.54 |
|
Discontinued operation |
|
(0.00 |
) |
(0.00 |
) |
(0.00 |
) |
(0.00 |
) | ||||
Total operations |
|
$ |
0.27 |
|
$ |
0.20 |
|
$ |
0.94 |
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
51,780 |
|
51,105 |
|
51,546 |
|
51,207 |
| ||||
Diluted |
|
54,072 |
|
53,844 |
|
53,608 |
|
53,378 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash dividends declared per common share |
|
$ |
0.13 |
|
$ |
|
|
$ |
0.39 |
|
$ |
9.00 |
|
(1) Includes stock-based employee compensation expense as follows: | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
Cost of recurring revenues |
|
$ |
780 |
|
$ |
844 |
|
$ |
3,250 |
|
$ |
3,491 |
|
Cost of non-recurring revenues |
|
314 |
|
563 |
|
1,335 |
|
3,253 |
| ||||
Total cost of revenues |
|
1,094 |
|
1,407 |
|
4,585 |
|
6,744 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
|
2,269 |
|
2,345 |
|
10,026 |
|
13,265 |
| ||||
Product development |
|
1,882 |
|
1,922 |
|
7,735 |
|
8,863 |
| ||||
General and administrative |
|
1,555 |
|
1,908 |
|
7,025 |
|
19,307 |
| ||||
Total operating expenses |
|
5,706 |
|
6,175 |
|
24,786 |
|
41,435 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total stock-based employee compensation expense |
|
$ |
6,800 |
|
$ |
7,582 |
|
$ |
29,371 |
|
$ |
48,179 |
|
(2) Net income (loss) per share is based on actual calculated values and totals may not sum due to rounding.
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
Twelve Months Ended December 31 |
| ||||
|
|
2014 |
|
2013 |
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income |
|
$ |
50,212 |
|
$ |
28,802 |
|
Adjustment to net income for discontinued operation net loss (income) |
|
51 |
|
(50 |
) | ||
Net income from continuing operations |
|
50,263 |
|
28,752 |
| ||
|
|
|
|
|
| ||
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: |
|
|
|
|
| ||
Stock-based compensation |
|
29,371 |
|
48,179 |
| ||
Excess tax benefit from stock-based compensation |
|
(10,257 |
) |
(7,477 |
) | ||
Depreciation and amortization |
|
21,201 |
|
24,393 |
| ||
Amortization of debt issuance costs |
|
1,446 |
|
947 |
| ||
Loss on disposal of fixed assets |
|
2,786 |
|
|
| ||
(Reduction of) provision for doubtful accounts |
|
(30 |
) |
278 |
| ||
Reduction of sales reserves |
|
(521 |
) |
(306 |
) | ||
Deferred income taxes |
|
11,439 |
|
4,589 |
| ||
Other |
|
(1,226 |
) |
29 |
| ||
Effect of statement of operations adjustments |
|
54,209 |
|
70,632 |
| ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Accounts receivable |
|
(3,123 |
) |
2,074 |
| ||
Prepaid and other assets |
|
7,910 |
|
(1,762 |
) | ||
Accounts payable |
|
5,938 |
|
27 |
| ||
Accrued liabilities |
|
(11,492 |
) |
(6,089 |
) | ||
Deferred revenues |
|
10,720 |
|
11,047 |
| ||
Income taxes payable |
|
733 |
|
(6,117 |
) | ||
Effect of changes in operating assets and liabilities |
|
10,686 |
|
(820 |
) | ||
|
|
|
|
|
| ||
Net cash provided by operating activities from continuing operations |
|
115,158 |
|
98,564 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Purchases of property and equipment |
|
(8,973 |
) |
(5,616 |
) | ||
Capitalized software development costs |
|
(1,873 |
) |
(1,995 |
) | ||
Change in restricted cash |
|
(173 |
) |
|
| ||
Purchases of marketable securities |
|
(9,240 |
) |
(57,863 |
) | ||
Sales and maturities of marketable securities |
|
100 |
|
228,619 |
| ||
|
|
|
|
|
| ||
Net cash (used in) provided by investing activities from continuing operations |
|
(20,159 |
) |
163,145 |
| ||
|
|
|
|
|
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
Proceeds from common stock issued from exercises of stock options |
|
4,562 |
|
19,495 |
| ||
Proceeds from common stock issued under the employee stock purchase plan |
|
6,362 |
|
6,293 |
| ||
Excess tax benefits from stock-based compensation |
|
10,257 |
|
7,477 |
| ||
Withholding taxes related to equity award net share settlement |
|
(6,619 |
) |
(11,833 |
) | ||
Proceeds from debt |
|
|
|
375,000 |
| ||
Repayment of debt |
|
(85,000 |
) |
(165,000 |
) | ||
Payment of cash dividend |
|
(13,405 |
) |
(470,133 |
) | ||
Repurchase of common stock |
|
(15,141 |
) |
(41,256 |
) | ||
Debit issuance costs |
|
|
|
(5,725 |
) | ||
|
|
|
|
|
| ||
Net cash used in financing activities from continuing operations |
|
(98,984 |
) |
(285,682 |
) | ||
|
|
|
|
|
| ||
Net cash transferred to discontinued operation |
|
(347 |
) |
(375 |
) | ||
|
|
|
|
|
| ||
Effect of exchange rate changes on cash and cash equivalents |
|
(712 |
) |
(41 |
) | ||
|
|
|
|
|
| ||
Net change in cash and cash equivalents from continuing operations |
|
(5,044 |
) |
(24,389 |
) | ||
Cash and cash equivalents of continuing operations at beginning of period |
|
33,828 |
|
58,217 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents of continuing operations at end of period |
|
$ |
28,784 |
|
$ |
33,828 |
|
|
|
Twelve Months Ended December 31 |
| ||||
|
|
2014 |
|
2013 |
| ||
Supplemental disclosure of cash flow information: |
|
|
|
|
| ||
Noncash investing activities: |
|
|
|
|
| ||
Capital expenditures included in accounts payable |
|
$ |
887 |
|
$ |
131 |
|
|
|
|
|
|
| ||
Cash flows from discontinued operation of MicroEdge, Inc.: |
|
|
|
|
| ||
Net cash used in operating activities |
|
$ |
(347 |
) |
$ |
(375 |
) |
Net cash transferred from continuing operations |
|
347 |
|
375 |
|
ADVENT SOFTWARE, INC.
RECONCILIATION OF SELECTED CONTINUING OPERATIONS' GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States of America (or GAAP), Advent uses non-GAAP measures of continuing operations' gross margin, operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses and income we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advents underlying operational results and trends and our marketplace performance. In addition, these non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP.
|
|
Three Months Ended December 31 |
| ||||||||
|
|
2014 |
|
2013 |
| ||||||
|
|
Amount |
|
% of Net |
|
Amount |
|
% of Net |
| ||
|
|
|
|
|
|
|
|
|
| ||
GAAP gross margin |
|
$ |
71,300 |
|
70.8 |
% |
$ |
68,525 |
|
70.2 |
% |
Amortization of acquired intangibles |
|
1,070 |
|
|
|
1,177 |
|
|
| ||
Stock-based compensation |
|
1,094 |
|
|
|
1,406 |
|
|
| ||
Non-GAAP gross margin |
|
$ |
73,464 |
|
73.0 |
% |
$ |
71,108 |
|
72.9 |
% |
|
|
|
|
|
|
|
|
|
| ||
GAAP operating income |
|
$ |
22,432 |
|
22.3 |
% |
$ |
18,397 |
|
18.9 |
% |
Amortization of acquired intangibles |
|
1,874 |
|
|
|
2,089 |
|
|
| ||
Stock-based compensation |
|
6,800 |
|
|
|
7,581 |
|
|
| ||
Restructuring charges |
|
135 |
|
|
|
811 |
|
|
| ||
Non-GAAP operating income |
|
$ |
31,241 |
|
31.0 |
% |
$ |
28,878 |
|
29.6 |
% |
|
|
|
|
|
|
|
|
|
| ||
GAAP net income |
|
$ |
14,698 |
|
|
|
$ |
11,017 |
|
|
|
Amortization of acquired intangibles |
|
1,873 |
|
|
|
2,089 |
|
|
| ||
Stock-based compensation |
|
6,800 |
|
|
|
7,581 |
|
|
| ||
Restructuring charges |
|
135 |
|
|
|
811 |
|
|
| ||
Income tax adjustment (1) |
|
(4,087 |
) |
|
|
(4,420 |
) |
|
| ||
Non-GAAP net income |
|
$ |
19,419 |
|
|
|
$ |
17,078 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
GAAP net income |
|
$ |
14,698 |
|
|
|
$ |
11,017 |
|
|
|
Net interest |
|
1,499 |
|
|
|
2,510 |
|
|
| ||
Provision for income taxes |
|
6,369 |
|
|
|
4,778 |
|
|
| ||
Depreciation expense |
|
2,666 |
|
|
|
2,895 |
|
|
| ||
Amortization expense |
|
2,398 |
|
|
|
2,594 |
|
|
| ||
Stock-based compensation |
|
6,800 |
|
|
|
7,581 |
|
|
| ||
Adjusted EBITDA |
|
$ |
34,430 |
|
|
|
$ |
31,375 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Diluted net income per share |
|
|
|
|
|
|
|
|
| ||
GAAP |
|
$ |
0.27 |
|
|
|
$ |
0.20 |
|
|
|
Non-GAAP |
|
$ |
0.36 |
|
|
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Shares used to compute diluted net income per share |
|
54,072 |
|
|
|
53,844 |
|
|
|
(1) The estimated non-GAAP effective tax rate was 35% for the three months ended December 31, 2014 and 2013, respectively, and has been used to adjust the provision for income taxes for non-GAAP net income and non-GAAP diluted net income per share purposes.
ADVENT SOFTWARE, INC.
RECONCILIATION OF SELECTED CONTINUING OPERATIONS GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States of America (or GAAP), Advent uses non-GAAP measures of continuing operations gross margin, operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses and income we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advents underlying operational results and trends and our marketplace performance. In addition, these non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP.
|
|
Twelve Months Ended December 31 |
| ||||||||
|
|
2014 |
|
2013 |
| ||||||
|
|
Amount |
|
% of Net |
|
Amount |
|
% of Net |
| ||
|
|
|
|
|
|
|
|
|
| ||
GAAP gross margin |
|
$ |
279,299 |
|
70.4 |
% |
$ |
263,238 |
|
68.7 |
% |
Amortization of acquired intangibles |
|
4,642 |
|
|
|
6,841 |
|
|
| ||
Stock-based compensation |
|
4,585 |
|
|
|
6,743 |
|
|
| ||
Non-GAAP gross margin |
|
$ |
288,526 |
|
72.7 |
% |
$ |
276,822 |
|
72.3 |
% |
|
|
|
|
|
|
|
|
|
| ||
GAAP operating income |
|
$ |
83,742 |
|
21.1 |
% |
$ |
46,132 |
|
12.0 |
% |
Amortization of acquired intangibles |
|
8,033 |
|
|
|
10,616 |
|
|
| ||
Stock-based compensation |
|
29,371 |
|
|
|
48,178 |
|
|
| ||
Restructuring charges |
|
4,629 |
|
|
|
3,770 |
|
|
| ||
Recapitalization costs |
|
|
|
|
|
6,041 |
|
|
| ||
Transaction related fees |
|
|
|
|
|
565 |
|
|
| ||
Non-GAAP operating income |
|
$ |
125,775 |
|
31.7 |
% |
$ |
115,302 |
|
30.1 |
% |
|
|
|
|
|
|
|
|
|
| ||
GAAP net income |
|
$ |
50,263 |
|
|
|
$ |
28,752 |
|
|
|
Amortization of acquired intangibles |
|
8,033 |
|
|
|
10,616 |
|
|
| ||
Stock-based compensation |
|
29,371 |
|
|
|
48,178 |
|
|
| ||
Restructuring charges |
|
4,628 |
|
|
|
3,770 |
|
|
| ||
Recapitalization costs |
|
|
|
|
|
6,692 |
|
|
| ||
Transaction related fees |
|
|
|
|
|
565 |
|
|
| ||
Income tax adjustment (1) |
|
(15,067 |
) |
|
|
(27,892 |
) |
|
| ||
Non-GAAP net income |
|
$ |
77,228 |
|
|
|
$ |
70,681 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
GAAP net income |
|
$ |
50,263 |
|
|
|
$ |
28,752 |
|
|
|
Net interest |
|
7,251 |
|
|
|
6,949 |
|
|
| ||
Provision for income taxes |
|
26,518 |
|
|
|
10,237 |
|
|
| ||
Depreciation expense |
|
11,037 |
|
|
|
11,531 |
|
|
| ||
Amortization expense |
|
10,164 |
|
|
|
12,862 |
|
|
| ||
Stock-based compensation |
|
29,371 |
|
|
|
48,178 |
|
|
| ||
Adjusted EBITDA |
|
$ |
134,604 |
|
|
|
$ |
118,509 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Diluted net income per share |
|
|
|
|
|
|
|
|
| ||
GAAP |
|
$ |
0.94 |
|
|
|
$ |
0.54 |
|
|
|
Non-GAAP |
|
$ |
1.44 |
|
|
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Shares used to compute diluted net income per share |
|
53,608 |
|
|
|
53,378 |
|
|
|
(1) The estimated non-GAAP effective tax rate was 35% for the twelve months ended December 31, 2014 and 2013, respectively, and has been used to adjust the provision for income taxes for non-GAAP net income and non-GAAP diluted net income per share purposes.