Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Epicor Software Corp | d925896d8k.htm |
Exhibit 99.1
Epicor Software Corporation
Reconciliation of Net Loss to Adjusted EBITDA
| Twelve Months Ended | ||||||||||||
| (Unaudited, in thousands) | March 31, 2015 | September 30, 2014 | September 30, 2013 | |||||||||
| Net loss |
$ | (11,319 | ) | $ | (20,849 | ) | $ | (31,958 | ) | |||
| Acquisition-related costs |
9,364 | 8,780 | 8,561 | |||||||||
| Deferred revenue and other purchase accounting adjustments |
708 | 590 | 6,341 | |||||||||
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| Adjusted net loss |
(1,247 | ) | (11,479 | ) | (17,056 | ) | ||||||
| Interest expense |
84,799 | 87,108 | 92,669 | |||||||||
| Income tax benefit |
(14,033 | ) | (5,037 | ) | (13,177 | ) | ||||||
| Depreciation and amortization |
186,229 | 183,131 | 160,865 | |||||||||
| Non-cash charges (share-based compensation expense) |
6,569 | 7,878 | 4,773 | |||||||||
| Management fees paid to Apax |
2,071 | 2,033 | 1,995 | |||||||||
| Restructuring costs |
11,656 | 3,896 | 4,890 | |||||||||
| Other expense and one-time related items |
8,744 | 4,066 | 11,875 | |||||||||
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| Adjusted EBITDA |
$ | 284,788 | $ | 271,596 | $ | 246,834 | ||||||
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Epicor Software Corporation
Retail Solutions Group Non-GAAP Standalone Adjusted EBITDA Reconciliation
For the twelve months September 30, 2013
(Unaudited, in thousands)
| GAAP | NonGAAP | |||||||||||||||||||
| Epicor Software Corporation |
Adjustments | Epicor Software Corporation |
RemainCo | Retail Solutions Group |
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| Software license |
$ | 141,522 | $ | 771 | $ | 142,293 | $ | 127,386 | $ | 14,907 | ||||||||||
| Software and cloud subscriptions |
81,552 | 12 | 81,564 | 73,736 | 7,828 | |||||||||||||||
| Software support |
414,850 | 4,400 | 419,250 | 378,169 | 41,081 | |||||||||||||||
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| Total software & software related services |
637,924 | 5,183 | 643,107 | 579,291 | 63,816 | |||||||||||||||
| Professional services |
234,604 | 733 | 235,337 | 185,258 | 50,079 | |||||||||||||||
| Hardware and other |
89,203 | 414 | 89,617 | 60,866 | 28,751 | |||||||||||||||
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| Total revenues |
961,731 | 6,330 | 968,061 | 825,415 | 142,646 | |||||||||||||||
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| Cost of software & software related services |
144,748 | (111 | ) | 144,637 | 129,887 | 14,750 | ||||||||||||||
| Cost of professional services |
180,129 | (449 | ) | 179,680 | 147,459 | 32,221 | ||||||||||||||
| Cost of hardware and other |
69,619 | (42 | ) | 69,577 | 46,494 | 23,083 | ||||||||||||||
| Sales and marketing |
165,240 | (2,454 | ) | 162,786 | 151,191 | 11,595 | ||||||||||||||
| Product development |
102,573 | (1,168 | ) | 101,405 | 83,785 | 17,620 | ||||||||||||||
| General & administrative |
76,580 | (13,502 | ) | 63,078 | 63,580 | (502 | ) | |||||||||||||
| Depreciation and amortization |
160,865 | (160,865 | ) | — | — | — | ||||||||||||||
| Acquisition-related costs |
8,561 | (8,561 | ) | — | — | — | ||||||||||||||
| Restructuring costs |
4,890 | (4,890 | ) | — | — | — | ||||||||||||||
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| Total operating expenses |
913,205 | (192,042 | ) | 721,163 | 622,396 | 98,767 | ||||||||||||||
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| Operating income |
48,526 | 198,372 | 246,898 | 203,019 | 43,879 | |||||||||||||||
| Acquisition run rate adjustments |
— | — | — | — | (1,847 | ) | ||||||||||||||
| Run rate savings adjustments |
— | — | — | — | 1,772 | |||||||||||||||
| Diligence adjustments |
— | — | — | — | (30 | ) | ||||||||||||||
| Other adjustments |
— | — | — | — | (109 | ) | ||||||||||||||
| Standalone costs |
— | — | — | — | (7,531 | ) | ||||||||||||||
| Interest expense |
92,669 | (92,669 | ) | — | — | — | ||||||||||||||
| Other (income)/expense, net |
992 | (928 | ) | 64 | — | — | ||||||||||||||
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| Loss before income taxes |
(45,135 | ) | $ | 291,969 | 246,834 | — | — | |||||||||||||
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| Income tax benefit |
(13,177 | ) | — | — | — | |||||||||||||||
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| Net loss |
$ | (31,958 | ) | — | — | — | ||||||||||||||
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| Pro forma Standalone adjusted EBITDA |
$ | 246,834 | — | $ | 36,134 | |||||||||||||||
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Epicor Software Corporation
Retail Solutions Group Non-GAAP Standalone Adjusted EBITDA Reconciliation
For the twelve months September 30, 2014
(Unaudited, in thousands)
| GAAP | NonGAAP | |||||||||||||||||||
| Epicor Software Corporation |
Adjustments | Epicor Software Corporation |
RemainCo | Retail Solutions Group |
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| Software license |
$ | 152,891 | $ | — | $ | 152,891 | $ | 139,540 | $ | 13,351 | ||||||||||
| Software and cloud subscriptions |
87,591 | — | 87,591 | 78,645 | 8,946 | |||||||||||||||
| Software support |
432,249 | 147 | 432,396 | 390,331 | 42,065 | |||||||||||||||
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| Total software & software related services |
672,731 | 147 | 672,878 | 608,516 | 64,362 | |||||||||||||||
| Professional services |
233,390 | 273 | 233,663 | 188,320 | 45,343 | |||||||||||||||
| Hardware and other |
88,835 | 215 | 89,050 | 64,654 | 24,396 | |||||||||||||||
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| Total revenues |
994,956 | 635 | 995,591 | 861,490 | 134,101 | |||||||||||||||
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| Cost of software & software related services |
147,709 | (86 | ) | 147,623 | 133,368 | 14,255 | ||||||||||||||
| Cost of professional services |
177,974 | (140 | ) | 177,834 | 146,710 | 31,124 | ||||||||||||||
| Cost of hardware and other |
65,501 | (59 | ) | 65,442 | 46,518 | 18,924 | ||||||||||||||
| Sales and marketing |
170,667 | (2,648 | ) | 168,019 | 155,400 | 12,619 | ||||||||||||||
| Product development |
104,696 | (1,305 | ) | 103,391 | 85,455 | 17,936 | ||||||||||||||
| General & administrative |
70,469 | (8,895 | ) | 61,574 | 62,183 | (609 | ) | |||||||||||||
| Depreciation and amortization |
183,131 | (183,131 | ) | — | — | — | ||||||||||||||
| RSG reallocation of expenses |
— | — | — | 1,389 | (1,389 | ) | ||||||||||||||
| Acquisition-related costs |
8,780 | (8,780 | ) | — | — | — | ||||||||||||||
| Restructuring costs |
3,896 | (3,896 | ) | — | — | — | ||||||||||||||
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| Total operating expenses |
932,823 | (208,940 | ) | 723,883 | 631,023 | 92,860 | ||||||||||||||
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| Operating income |
62,133 | 209,575 | 271,708 | 230,467 | 41,241 | |||||||||||||||
| Acquisition run rate adjustments |
— | — | — | — | 925 | |||||||||||||||
| Run rate savings adjustments |
— | — | — | — | 1,772 | |||||||||||||||
| Diligence adjustments |
— | — | — | — | (1,459 | ) | ||||||||||||||
| Other adjustments |
— | — | — | — | (193 | ) | ||||||||||||||
| Standalone costs |
— | — | — | — | (7,133 | ) | ||||||||||||||
| Interest expense |
87,108 | (87,108 | ) | — | — | — | ||||||||||||||
| Other (income)/expense, net |
911 | (799 | ) | 112 | — | — | ||||||||||||||
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| Loss before income taxes |
(25,886 | ) | $ | 297,482 | 271,596 | — | — | |||||||||||||
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| Income tax benefit |
(5,037 | ) | — | — | — | |||||||||||||||
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| Net loss |
$ | (20,849 | ) | — | — | — | ||||||||||||||
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| Pro forma Standalone adjusted EBITDA |
$ | 271,596 | — | $ | 35,153 | |||||||||||||||
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Epicor Software Corporation
Retail Solutions Group Non-GAAP Standalone Adjusted EBITDA Reconciliation
For the last twelve months March 31, 2015
(Unaudited, in thousands)
| GAAP | NonGAAP | |||||||||||||||||||
| Epicor Software Corporation |
Adjustments | Epicor Software Corporation |
RemainCo | Retail Solutions Group |
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| Software license |
$ | 147,335 | $ | 92 | $ | 147,427 | $ | 131,464 | $ | 15,963 | ||||||||||
| Software and cloud subscriptions |
92,924 | 53 | 92,977 | 82,476 | 10,501 | |||||||||||||||
| Software support |
434,746 | 167 | 434,913 | 392,706 | 42,207 | |||||||||||||||
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| Total software & software related services |
675,005 | 312 | 675,317 | 606,646 | 68,671 | |||||||||||||||
| Professional services |
235,185 | 257 | 235,442 | 187,498 | 47,944 | |||||||||||||||
| Hardware and other |
82,678 | — | 82,678 | 59,857 | 22,821 | |||||||||||||||
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| Total revenues |
992,868 | 569 | 993,437 | 854,001 | 139,436 | |||||||||||||||
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| Cost of software & software related services |
147,683 | (185 | ) | 147,498 | 131,592 | 15,906 | ||||||||||||||
| Cost of professional services |
176,814 | (338 | ) | 176,476 | 144,128 | 32,348 | ||||||||||||||
| Cost of hardware and other |
60,751 | (35 | ) | 60,716 | 42,689 | 18,027 | ||||||||||||||
| Sales and marketing |
168,510 | (2,279 | ) | 166,231 | 152,100 | 14,131 | ||||||||||||||
| Product development |
99,354 | (2,012 | ) | 97,342 | 79,310 | 18,032 | ||||||||||||||
| General & administrative |
70,634 | (10,363 | ) | 60,271 | 60,512 | (241 | ) | |||||||||||||
| Depreciation and amortization |
186,229 | (186,229 | ) | — | — | — | ||||||||||||||
| RSG reallocation of expenses |
— | — | — | 947 | (947 | ) | ||||||||||||||
| Acquisition-related costs |
9,364 | (9,364 | ) | — | — | — | ||||||||||||||
| Restructuring costs |
11,656 | (11,656 | ) | — | — | — | ||||||||||||||
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| Total operating expenses |
930,995 | (222,461 | ) | 708,534 | 611,278 | 97,256 | ||||||||||||||
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| Operating income |
61,873 | 223,030 | 284,903 | 242,723 | 42,180 | |||||||||||||||
| Acquisition run rate adjustments |
— | — | — | — | 656 | |||||||||||||||
| Run rate savings adjustments |
— | — | — | — | 1,772 | |||||||||||||||
| Diligence adjustments |
— | — | — | — | (757 | ) | ||||||||||||||
| Other adjustments |
— | — | — | — | (143 | ) | ||||||||||||||
| Standalone costs |
— | — | — | — | (7,165 | ) | ||||||||||||||
| Interest expense |
84,799 | (84,799 | ) | — | — | — | ||||||||||||||
| Other (income)/expense, net |
2,426 | (2,311 | ) | 115 | — | — | ||||||||||||||
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| Loss before income taxes |
(25,352 | ) | $ | 310,140 | 284,788 | — | — | |||||||||||||
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| Income tax benefit |
(14,033 | ) | — | — | — | |||||||||||||||
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| Net loss |
$ | (11,319 | ) | — | — | — | ||||||||||||||
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| Pro forma adjusted EBITDA |
$ | 284,788 | — | $ | 36,543 | |||||||||||||||
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