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| 8-K - MONOTYPE IMAGING HOLDINGS INC. 8-K - Monotype Imaging Holdings Inc. | a51892365.htm |
Exhibit 99.1
Monotype Announces Third Quarter 2018 Results
Net Adjusted EBITDA Increases 13%
Raises Full-Year Profit Expectations for Second Straight Quarter
WOBURN, Mass.--(BUSINESS WIRE)--November 2, 2018--Monotype Imaging Holdings Inc. (Nasdaq: TYPE) today announced financial results for the third quarter ended September 30, 2018.
Third quarter 2018 highlights
- Revenue for the quarter was $58.0 million, a decrease of 4% year over year.
- Creative Professional revenue was $36.1 million, up 5% year over year.
- Net income was $3.3 million; Non-GAAP net adjusted EBITDA was $18.3 million, a 13% increase year over year, or 31.5% of revenue.
- Cash and cash equivalents stood at $70.1 million.
“We exceeded the high end of our guidance for net adjusted EBITDA this quarter, demonstrating our ability to drive profitability across the organization,” said Scott Landers, president and CEO of Monotype. “Our top-line performance continues to be driven by our enterprise sales initiatives as we help the world’s largest brands solve their biggest design and marketing challenges.”
Tony Callini, executive vice president and chief financial officer of Monotype, said, “Our results this quarter demonstrate Monotype’s commitment to improving profitability and focusing on the solutions that have the greatest impact on our customers. We also repurchased a significant number of shares over the last few months, demonstrating our commitment to returning value to shareholders. We will continue to take a disciplined approach to capital investment in an effort to sustainably grow revenue, further improve margins and continue driving shareholder value.”
Third quarter 2018 operating results
Revenue for the quarter
decreased 4% to $58.0 million, compared to $60.5 million for the third
quarter of 2017. Creative Professional revenue was $36.1 million, a 5%
increase from the third quarter of 2017. OEM revenue was $21.9 million,
a decrease of 16% from the same period in 2017.
Gross margin for the quarter was 82.3% compared to 82.5% in the prior year quarter.
Net income was $3.3 million, compared to net income of $1.3 million in the third quarter of 2017. Earnings per diluted share was $0.08, compared to earnings per diluted share of $0.03 in the prior year.
Non-GAAP net income, which excludes the amortization of intangible assets, stock-based compensation expense, acquisition-related compensation expense, and non-recurring expenses, net of taxes, was $9.0 million, compared to $4.9 million in the third quarter of 2017. Non-GAAP earnings per diluted share were $0.22 compared to $0.12 in the prior year period.
Non-GAAP net adjusted EBITDA was $18.3 million, or 31.5% of revenue, compared to $16.1 million in the third quarter of 2017. In the first quarter of 2018, Monotype updated its definition of non-GAAP net adjusted EBITDA to include the add back of non-recurring expense to GAAP income (loss) from operations. Accordingly, all non-GAAP financial measures have been recast for the three and nine months ended September 30, 2017, to add back certain advisor fees included in non-recurring expenses.
Cash and cash flow
Monotype had cash and cash equivalents of
$70.1 million as of September 30, 2018, compared to $75.8 million as of
June 30, 2018 and $79.5 million as of September 30, 2017. The company
generated $8.1 million of cash from operations in the third quarter of
2018, a decrease from $9.1 million generated in the prior year quarter
primarily due to the payment of certain non-recurring obligations.
During the third quarter of 2018, the company repaid $5.0 million on its
outstanding revolving line of credit.
In the third quarter, Monotype repurchased approximately 282,000 shares of common stock on the open market at prevailing market prices, for a total consideration of $5.7 million, and another approximately 315,000 shares of common stock for incremental consideration of $6.3 million in October 2018.
Quarterly dividend
Monotype’s most recent dividend payment of
$0.116 per share was paid on October 19, 2018, to shareholders of record
as of the close of business on October 1, 2018. A dividend of $0.116
cents per share will be paid on January 22, 2019, to shareholders of
record as of the close of business on January 2, 2019.
Financial outlook
Monotype is updating its full-year financial
outlook to reflect higher expected non-GAAP net adjusted EBITDA, GAAP
earnings per diluted share and non-GAAP earnings per diluted share, and
lower operating expenses. Monotype’s fourth quarter and updated
full-year financial guidance are set forth in the following tables:
| (in $ millions, except for per share data) | Q4 2018 | Full-Year 2018 | |||||
| Revenue | $63.7 – $67.7 | $239.0 – $243.0 | |||||
| Non-GAAP net adjusted EBITDA | $18.7 – $22.0 |
$65.3 – $68.7 |
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| Operating expenses | $40.0 – $42.0 | $171.7 – $173.7 | |||||
| GAAP earnings per diluted share | $0.08 – $0.11 | $0.14 – $0.17 | |||||
| Non-GAAP earnings per diluted share | $0.22 – $0.25 | $0.94 – $0.97 |
Conference call details
Monotype will host a conference call
on Friday, November 2, 2018, at 8:30 a.m. EDT to discuss the company’s
third quarter 2018 results and business outlook for 2018. Individuals
who are interested in listening to the audio webcast should log on to
the Investors portion of the Company section of the Monotype website at www.monotype.com.
The live call can also be accessed by dialing (855) 312-5713 (domestic)
or (703) 925-2611 (international) using passcode 7753149. If individuals
are unable to listen to the live call, the audio webcast will be
archived in the Investors portion of the company’s website for one year.
Non-GAAP financial measures
This press release contains
non-GAAP financial measures under the rules of the U.S. Securities and
Exchange Commission. This non-GAAP information supplements and is not
intended to represent a measure of performance in accordance with
disclosures required by generally accepted accounting principles.
Non-GAAP financial measures are used internally to manage the business,
such as in establishing an annual operating budget and in reporting to
lenders. Non-GAAP financial measures are used by Monotype management in
its operating and financial decision-making because management believes
these measures reflect ongoing business in a manner that allows
meaningful period-to-period comparisons. Accordingly, Monotype believes
it is useful for investors and others to review both GAAP and non-GAAP
measures in order to (a) understand and evaluate current operating
performance and future prospects in the same manner as management does,
and (b) compare in a consistent manner the company’s current financial
results with past financial results. The primary limitations associated
with the use of non-GAAP financial measures are that these measures may
not be directly comparable to the amounts reported by other companies
and they do not include all items of income and expense that affect
operations. Monotype management compensates for these limitations by
considering the company’s financial results and outlook as determined in
accordance with GAAP and by providing a detailed reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
measures in the tables attached to this press release.
Forward-Looking Statements
This release may contain
forward-looking statements including those related to future revenues
and operating results; the growth of the company’s business; anticipated
savings, costs and expenses resulting from the company’s restructuring
actions and changes to the company’s product portfolio; the impact of
the company’s revenue recognition policy; the impact of federal tax
reform legislation; the execution of the company’s capital allocation
and funding strategies; and anticipated business momentum that involve
risks and uncertainties that could cause the company’s actual results to
differ materially. Factors that might cause or contribute to such
differences include, but are not limited to risks associated with
changes in the economic climate including decreased demand for the
company’s products or products that incorporate the company’s solutions;
risks associated with the company’s ability to adapt products or
services to new markets and to anticipate and quickly respond to
evolving technologies and customer requirements; risks associated with
the company’s development of and the market acceptance of new products,
product features or services; risks associated with the anticipated cost
savings and expenses from the company’s restructuring actions and wind
down of certain of the company’s products including that such savings
and expenses are not as predicted; risks associated with increased
competition in markets the company serves, including the risks that
increased competition may result in the company’s inability to gain new
customers, retain existing customers or may force the company to reduce
prices; risks associated with the ownership and enforcement of the
company’s intellectual property; and risks associated with geopolitical
conditions and changes in the financial markets. Additional disclosure
regarding these and other risks faced by the company is available in the
company’s public filings with the Securities and Exchange Commission,
including the risk factors included in the company’s Annual Report on
Form 10-K for the year ended December 31, 2017 and subsequent filings.
The forward-looking financial information set forth in this release
reflects estimates based on information available at this time. These
amounts could differ from actual reported amounts to be included in the
company’s future earnings releases and public filings. While the company
may elect to update forward-looking statements at some point in the
future, the company specifically disclaims any obligation to do so, even
if an estimate changes.
About Monotype
Monotype empowers creative minds to build and
express authentic brands through design, technology and
expertise. Further information is available at www.monotype.com.
Follow Monotype on Twitter, Instagram and LinkedIn.
Monotype is a trademark of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. ©2018 Monotype Imaging Holdings Inc. All rights reserved.
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MONOTYPE IMAGING HOLDINGS INC. |
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September 30, |
December 31, |
||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 70,120 | $ | 82,822 | |||||||
| Restricted cash | 6,000 | 11,987 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts | 38,571 | 34,461 | |||||||||
| Income tax refunds receivable | 2,107 | 1,204 | |||||||||
| Prepaid expenses and other current assets | 7,062 | 5,714 | |||||||||
| Total current assets | 123,860 | 136,188 | |||||||||
| Property and equipment, net | 14,830 | 16,763 | |||||||||
| Goodwill | 276,798 | 279,131 | |||||||||
| Intangible assets, net | 76,539 | 84,856 | |||||||||
| Restricted cash | — | 6,000 | |||||||||
| Other assets | 7,374 | 3,112 | |||||||||
| Total assets | $ | 499,401 | $ | 526,050 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 2,830 | $ | 1,467 | |||||||
| Accrued expenses and other current liabilities | 32,408 | 43,096 | |||||||||
| Accrued income taxes payable | 304 | 522 | |||||||||
| Deferred revenue | 11,766 | 15,102 | |||||||||
| Total current liabilities | 47,308 | 60,187 | |||||||||
| Revolving line of credit | 80,000 | 93,000 | |||||||||
| Other long-term liabilities | 3,014 | 6,428 | |||||||||
| Deferred income taxes | 29,958 | 28,004 | |||||||||
| Reserve for income taxes | 2,344 | 2,783 | |||||||||
| Accrued pension benefits | 6,201 | 6,280 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 44 | 44 | |||||||||
| Additional paid-in capital | 313,354 | 298,113 | |||||||||
| Treasury stock, at cost | (72,611 | ) | (64,083 | ) | |||||||
| Retained earnings | 94,940 | 97,815 | |||||||||
| Accumulated other comprehensive loss | (5,151 | ) | (2,521 | ) | |||||||
| Total stockholders’ equity | 330,576 | 329,368 | |||||||||
| Total liabilities and stockholders’ equity | $ | 499,401 | $ | 526,050 | |||||||
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MONOTYPE IMAGING HOLDINGS INC. |
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Three Months Ended |
Nine Months Ended |
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| 2018 | 2017 | 2018 | 2017 | ||||||||||||||
| Revenue | $ | 57,969 | $ | 60,507 | $ | 175,339 | $ | 170,773 | |||||||||
| Cost of revenue | 9,395 | 9,719 | 31,787 | 28,638 | |||||||||||||
| Cost of revenue—amortization of acquired technology | 859 | 885 | 2,583 | 2,644 | |||||||||||||
| Total cost of revenue | 10,254 | 10,604 | 34,370 | 31,282 | |||||||||||||
| Gross profit | 47,715 | 49,903 | 140,969 | 139,491 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Marketing and selling | 18,212 | 22,453 | 58,382 | 66,417 | |||||||||||||
| Research and development | 7,680 | 8,997 | 25,432 | 27,778 | |||||||||||||
| General and administrative | 10,786 | 11,291 | 38,262 | 34,032 | |||||||||||||
| Restructuring | 244 | — | 6,814 | — | |||||||||||||
| Amortization of other intangible assets | 851 | 1,021 | 2,840 | 3,051 | |||||||||||||
| Total operating expenses | 37,773 | 43,762 | 131,730 | 131,278 | |||||||||||||
| Income from operations | 9,942 | 6,141 | 9,239 | 8,213 | |||||||||||||
| Other (income) expense: | |||||||||||||||||
| Interest expense, net | 826 | 699 | 2,353 | 2,056 | |||||||||||||
| Other expense (income), net | 361 | 1,444 | (174 | ) | 4,858 | ||||||||||||
| Total other expense | 1,187 | 2,143 | 2,179 | 6,914 | |||||||||||||
| Income before provision for income taxes | 8,755 | 3,998 | 7,060 | 1,299 | |||||||||||||
| Provision for income taxes | 5,434 | 2,737 | 4,243 | 1,609 | |||||||||||||
| Net income (loss) | $ | 3,321 | $ | 1,261 | $ | 2,817 | $ | (310 | ) | ||||||||
| Net income (loss) available to common stockholders—basic | $ | 3,143 | $ | 1,196 | $ | 2,226 | $ | (310 | ) | ||||||||
|
Net income (loss) available to common stockholders—diluted |
$ | 3,143 | $ | 1,195 | $ | 2,226 | $ | (310 | ) | ||||||||
|
Net income (loss) per common share—basic and diluted |
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| Basic | $ | 0.08 | $ | 0.03 | $ | 0.06 | $ | (0.01 | ) | ||||||||
| Diluted | $ | 0.08 | $ | 0.03 | $ | 0.06 | $ | (0.01 | ) | ||||||||
| Weighted-average number of shares outstanding: | |||||||||||||||||
| Basic | 40,512,837 | 39,594,130 | 40,314,169 | 39,576,312 | |||||||||||||
| Diluted | 40,609,643 | 39,798,779 | 40,454,518 | 39,576,312 | |||||||||||||
| Dividends declared per common share | $ | 0.116 | $ | 0.113 | $ | 0.348 | $ | 0.339 | |||||||||
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MONOTYPE IMAGING HOLDINGS INC. |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2018 |
2017 (1) |
2018 |
2017 (1) |
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| Net income (loss) | $ | 3,321 | $ | 1,261 | $ | 2,817 | $ | (310 | ) | |||||||||
| Interest expense, net | 826 | 699 | 2,353 | 2,056 | ||||||||||||||
| Other expense (income), net | 361 | 1,444 | (174 | ) | 4,858 | |||||||||||||
| Provision for income taxes | 5,434 | 2,737 | 4,243 | 1,609 | ||||||||||||||
| Income from operations | 9,942 | 6,141 | 9,239 | 8,213 | ||||||||||||||
| Depreciation and amortization | 3,101 | 3,098 | 9,548 | 9,271 | ||||||||||||||
| Stock based compensation(2) | 4,326 | 5,271 | 13,163 | 15,294 | ||||||||||||||
| Acquisition-related compensation(3) | 661 | 1,407 | 2,934 | 4,221 | ||||||||||||||
| Non-recurring expenses(4) | 244 | 210 | 11,734 | 210 | ||||||||||||||
| Net adjusted EBITDA | $ | 18,274 | $ | 16,127 | $ | 46,618 | $ | 37,209 | ||||||||||
| (1) | Net adjusted EBITDA has been recast for the three and nine months ended September 30, 2017 to conform to the current definition by adding back certain advisor fees included in non-recurring expenses. | |
| (2) | For the nine months ended September 30, 2018, the amount excludes a $1.4 million non-recurring reduction for forfeitures of awards by employees included in the restructuring plan. This amount is included in non-recurring expenses. | |
| (3) | For the three months ended September 30, 2018, the amount includes $0.7 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition. For the three months ended September 30, 2017, the amount includes $0.9 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2018, the amount includes $2.4 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2017, the amount includes $2.6 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $1.6 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. | |
| (4) | For the three months ended September 30, 2018, the amount includes $0.2 million of restructuring expenses. For the three months ended September 30, 2017, the amount includes $0.2 million of certain advisor fees related to shareholder activities. For the nine months ended September 30, 2018, the amount includes $2.7 million of certain advisor fees related to shareholder activities, $2.2 million of royalty expenses, recorded in cost of sales, associated with revenue that was not recognized under ASC 606 and $6.8 million of restructuring expenses. For the nine months ended September 30, 2017, the amount includes $0.2 million of certain advisor fees related to shareholder activities. | |
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MONOTYPE IMAGING HOLDINGS INC. |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2018 |
2017 (1) |
2018 |
2017 (1) |
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| GAAP net income (loss) available to common stockholders ─ diluted | $ | 3,321 | $ | 1,261 | $ | 2,817 | $ | (310 | ) | ||||||||
| Amortization, net of tax of $397, $1,319, $1,258 and $4,619, respectively | 1,313 | 587 | 4,165 | 1,076 | |||||||||||||
| Stock based compensation, net of tax of $849, $3,648, $2,275 and $12,403, respectively(2) | 3,477 | 1,623 | 10,888 | 2,891 | |||||||||||||
| Acquisition-related compensation, net of tax of $0, $0, $0 and $0, respectively(3) | 661 | 1,407 | 2,934 | 4,221 | |||||||||||||
| Non-recurring expenses, net of tax of $57, $145, $2,722 and $170, respectively(4) | 187 | 65 | 9,012 | 40 | |||||||||||||
| Non-GAAP net income | $ | 8,959 | $ | 4,943 | $ | 29,816 | $ | 7,918 | |||||||||
| (1) | Non-GAAP net income has been recast for the three and nine months ended September 30, 2017 to conform to the current definition by adding back certain advisor fees included in non-recurring expenses. | |
| (2) | For the nine months ended September 30, 2018, the amount excludes a $1.2 million, net of tax, non-recurring reduction for forfeitures of awards by employees included in the restructuring plan. This amount is included in non-recurring expenses. | |
| (3) | For the three months ended September 30, 2018, the amount includes $0.7 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition. For the three months ended September 30, 2017, the amount includes $0.9 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2018, the amount includes $2.4 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2017, the amount includes $2.6 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $1.6 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. | |
| (4) | For the three months ended September 30, 2018, the amount includes $0.2 million, net of tax, of restructuring expenses. For the three months ended September 30, 2017, the amount includes $65 thousand, net of tax, of certain advisor fees related to shareholder activities. For the nine months ended September 30, 2018, the amount includes $2.1 million, net of tax, of certain advisor fees related to shareholder activities, $1.7 million, net of tax, of royalty expenses, recorded in cost of sales, associated with revenue that was not recognized under ASC 606 and $5.2 million, net of tax, of restructuring expenses. For the nine months ended September 30, 2017, the amount includes $40 thousand, net of tax, of certain advisor fees related to shareholder activities. | |
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MONOTYPE IMAGING HOLDINGS INC. |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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|
2018 |
2017 (1) |
2018 |
2017 (1) |
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| GAAP income (loss) per diluted share | $ | 0.08 | $ 0.03 |
$ |
0.06 |
$ | (0.01 | ) | |||||||||||
| Amortization, net of tax of $0.01, $0.03, $0.03 and $0.12, respectively | 0.03 | 0.01 | 0.11 | 0.03 | |||||||||||||||
| Stock based compensation, net of tax of $0.02, $0.09, $0.06 and $0.31, respectively(2) | 0.09 | 0.04 | 0.27 | 0.07 | |||||||||||||||
| Acquisition-related compensation, net of tax of $0.00, $0.00, $0.00 and $0.00, respectively(3) | 0.02 | 0.04 | 0.08 | 0.11 | |||||||||||||||
| Non-recurring expenses, net of tax of $0.00, $0.00, $0.07 and $0.00, respectively(4) | 0.00 | 0.00 | 0.22 | 0.00 | |||||||||||||||
| Non-GAAP earnings per diluted share | $ | 0.22 | $ 0.12 |
$ |
0.74 |
$ | 0.20 | ||||||||||||
| (1) | Non-GAAP earnings per share has been recast for the three and nine months ended September 30, 2017 to conform to the current definition by adding back certain advisor fees included in non-recurring expenses. | |
| (2) | For the nine months ended September 30, 2018, the amount excludes a $1.2 million, or $0.03 per share, net of tax, non-recurring reduction for forfeitures of awards by employees included in the restructuring plan. This amount is included in non-recurring expenses. | |
| (3) | For the three months ended September 30, 2018, the amount includes $0.7 million, or $0.02 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition. For the three months ended September 30, 2017, the amount includes $0.9 million, or $0.02 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million, or $0.01 per share, of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2018, the amount includes $2.4 million, or $0.07 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million, or $0.01 per share, of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2017, the amount includes $2.6 million, or $0.07 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $1.6 million, or $0.04 per share, of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. | |
| (4) | For the three months ended September 30, 2018, the amount includes $0.2 million, or $0.00 per share, net of tax, of restructuring expenses. For the three months ended September 30, 2017, the amount includes $65 thousand, or $0.00 per share, net of tax, of certain advisor fees related to shareholder activities. For the nine months ended September 30, 2018, the amount includes $2.1 million, or $0.05 per share, net of tax, of certain advisor fees related to shareholder activities, $1.7 million, or $0.04 per share, net of tax, of royalty expenses, recorded in cost of sales, associated with revenue that was not recognized under ASC 606 and $5.2 million, or $0.13 per share, net of tax, of restructuring expenses. For the nine months ended September 30, 2017, the amount includes $40 thousand, or $0.00 per share, net of tax, of certain advisor fees related to shareholder activities. | |
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MONOTYPE IMAGING HOLDINGS INC. |
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OTHER INFORMATION |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Marketing and selling | $ | 2,031 | $ | 2,455 | $ | 4,515 | $ | 7,348 | |||||||
| Research and development | 900 | 1,131 | 2,781 | 3,227 | |||||||||||
| General and administrative | 1,395 | 1,685 | 4,465 | 4,719 | |||||||||||
| Total expensed | $ | 4,326 | $ | 5,271 | $ | 11,761 | $ | 15,294 | |||||||
| Property and equipment | 3 | 44 | 24 | 97 | |||||||||||
| Total stock based compensation | $ | 4,329 | $ | 5,315 | $ | 11,785 | $ | 15,391 | |||||||
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MARKET INFORMATION |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Creative Professional | $ | 36,114 | $ | 34,521 | $ | 109,529 | $ | 92,234 | |||||||
| OEM | 21,855 | 25,986 | 65,810 | 78,539 | |||||||||||
| Total | $ | 57,969 | $ | 60,507 | $ | 175,339 | $ | 170,773 | |||||||
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MONOTYPE IMAGING HOLDINGS INC. |
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|
Low End of |
High End of |
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| Q4 2018 | Q4 2018 | ||||||||
| GAAP net income | $ | 3,250 | $ | 4,450 | |||||
| Amortization, net of tax of $350 and $350, respectively | 1,450 | 1,450 | |||||||
| Stock based compensation, net of tax of $800 and $800, respectively | 3,600 | 3,600 | |||||||
| Acquisition-related compensation, net of tax of $0 and $0, respectively |
500 |
500 |
|||||||
| Non-recurring expense, net of tax of $0 and $0, respectively |
— |
— |
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| Non-GAAP net income | $ | 8,800 | $ | 10,000 | |||||
| GAAP earnings per diluted share | $ | 0.08 | $ | 0.11 | |||||
| Amortization, net of tax of $0.01 and $0.01, respectively, per diluted share |
0.04 |
0.04 |
|||||||
| Stock based compensation, net of tax of $0.02 and $0.02, respectively, per diluted share |
0.09 |
0.09 |
|||||||
| Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively, per diluted share |
0.01 |
0.01 |
|||||||
| Non-recurring expense, net of tax of $0.00 and $0.00, respectively, per diluted share |
— |
— |
|||||||
| Non-GAAP earnings per diluted share | $ | 0.22 | $ | 0.25 | |||||
| Weighted average diluted shares used to compute earnings per share | 40,200,000 | 40,200,000 | |||||||
|
Assumes 64% effective tax rate. |
|||||||||
|
|
Low End of |
High End of |
|||||||
| 2018 | 2018 | ||||||||
| GAAP net income | $ | 5,750 | $ | 6,950 | |||||
| Amortization, net of tax of $1,700 and $1,700, respectively | 5,500 | 5,500 | |||||||
| Stock based compensation, net of tax of $3,150 and $3,150, respectively | 14,400 | 14,400 | |||||||
| Acquisition-related compensation, net of tax of $0 and $0, respectively | 3,400 | 3,400 | |||||||
| Non-recurring expense, net of tax of $2,750 and $2,750, respectively | 9,000 | 9,000 | |||||||
|
Non-GAAP net income |
38,050 | 39,250 | |||||||
| GAAP earnings per diluted share | $ | 0.14 | $ | 0.17 | |||||
| Amortization, net of tax of $0.04 and $0.04, respectively, per diluted share |
0.14 |
0.14 |
|||||||
| Stock based compensation, net of tax of $0.08 and $0.08, respectively, per diluted share |
0.36 |
0.36 |
|||||||
| Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively, per diluted share |
0.08 |
0.08 |
|||||||
| Non-recurring expense, net of tax of $0.07 and $0.07, respectively, per diluted share |
0.22 |
0.22 |
|||||||
| Non-GAAP earnings per diluted share | $ | 0.94 | $ | 0.97 | |||||
| Weighted average diluted shares used to compute earnings per share | 40,400,000 | 40,400,000 | |||||||
|
Assumes 64% effective tax rate. |
|||||||||
|
MONOTYPE IMAGING HOLDINGS INC. |
|||||||||
|
|
Low End of |
|
High End of |
||||||
|
|
Q4 2018 |
|
Q4 2018 |
||||||
| GAAP net income |
|
$ |
3,250 |
|
$ |
4,450 |
|||
| Interest, net |
|
1,200 |
|
1,200 |
|||||
| Other (income) expense, net |
|
500 |
|
500 |
|||||
| Provision for income taxes |
|
5,650 |
|
7,750 |
|||||
| Income from operations |
|
10,600 |
|
13,900 |
|||||
| Depreciation and amortization |
|
3,200 |
|
3,200 |
|||||
| Stock based compensation |
|
4,400 |
|
4,400 |
|||||
| Acquisition-related compensation |
|
500 |
|
500 |
|||||
| Non-recurring expense |
|
— |
|
— |
|||||
| Non-GAAP net adjusted EBITDA |
|
$ |
18,700 |
|
$ |
22,000 |
|||
|
Low End of |
High End of |
||||||||
| 2018 | 2018 | ||||||||
| GAAP net income | $ | 5,750 | $ | 6,950 | |||||
| Interest, net | 3,550 | 3,550 | |||||||
| Other (income) expense, net | 350 | 350 | |||||||
| Provision for income taxes | 10,200 | 12,350 | |||||||
| Income from operations | 19,850 | 23,200 | |||||||
| Depreciation and amortization | 12,750 | 12,750 | |||||||
| Stock based compensation | 17,550 | 17,550 | |||||||
| Acquisition-related compensation |
3,400 |
3,400 |
|||||||
| Non-recurring expense | 11,750 | 11,750 | |||||||
|
Non-GAAP net adjusted EBITDA |
$ |
65,300 |
$ |
68,650 |
|||||
CONTACT:
Investor Relations:
Monotype
Chris Brooks, 781-970-6120
ir@monotype.com