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8-K - 8-K - E2open Parent Holdings, Inc.etwo-8k_20210518.htm

Exhibit 99.1

 

 

E2open Announces Fiscal Fourth Quarter and Fiscal Year 2021 Financial Results

Exceeded Guidance for Fiscal Year 2021

Raises Fiscal Year 2022 Guidance

 

AUSTIN, Texas – May 18, 2021 – E2open Parent Holdings, Inc. (NYSE: ETWO), a leading network-based provider of 100% cloud-based, mission-critical, end-to-end supply chain management software, today announced financial results for its fiscal fourth quarter and fiscal year ended February 28, 2021.

 

“We are pleased to report a strong fourth quarter and full fiscal 2021 as we begin a new chapter as a publicly traded company. We are excited to start off by beating our fiscal 2021 guidance and we are raising our fiscal 2022 guidance,” said Michael Farlekas, president and chief executive officer at E2open.

 

In addition to our strong financial results, E2open is pleased to report significant progress in all three previously identified categories to further the Company’s organic growth: the formation of the new logo sales team, new strategic partnerships, and to further monetize E2open’s data network,” Farlekas continued. “This gives the Company increased confidence that our long-term revenue growth will be in excess of our 10% organic revenue growth target.”

 

Fiscal Fourth Quarter 2021 Financial Highlights

 

 

Revenue: Total revenue for the combined Successor and Predecessor periods in the fourth quarter of fiscal year 2021 reached $81.0 million, a decrease of 3.8% from $84.2 million in the fiscal fourth quarter of 2020. Total non-GAAP revenue was $88.8 million, an increase of 5.5% compared to $84.2 million in the fiscal fourth quarter of 2020.

 

Subscription revenue for the combined Successor and Predecessor periods in fiscal fourth quarter of 2021 was $64.8 million compared to $67.5 million in the prior year period.  This decline in subscription revenue was largely due to purchase accounting adjustments to reduce the carrying value of deferred revenue to its fair value on the date of the CCNB1 combination.  Fiscal fourth quarter 2021 non-GAAP subscription revenue, adjusted for this fair value reduction, was up 7.6% to $72.6 million compared to $67.5 million from the prior fiscal fourth quarter.

 

 

Gross Profit: Gross profit for the combined Successor and Predecessor periods in the fiscal fourth quarter of 2021 was $42.6 million, a decrease of 15.1% compared with $50.2 million in the same quarter of 2020. This decrease in gross profit was largely due to the purchase accounting adjustment noted above.  Non-GAAP gross profit for the fiscal fourth quarter of 2021 was $63.4 million, an increase of 8.6% compared with the prior year's fourth quarter.

 

Gross Margin: Gross margin was 53% versus 60% in the combined Successor and Predecessor periods for the fiscal fourth quarter of 2021 versus 2020, respectively. Non-GAAP gross margin was 71% compared to 69% in the fiscal fourth quarter of 2020.


 

 

EBITDA: EBITDA for the fiscal fourth quarter of 2021 was $34.6 million compared with $10.3 million in the same quarter of 2020. Adjusted EBITDA was $28.2 million with a margin of 32%, an increase of 42.9% from $19.7 million in the fiscal fourth quarter 2020.

 

 

Net Income: Net income for the combined Successor and Predecessor periods for the fiscal fourth quarter of 2021 was $33.3 million, compared with a net loss of $20.9 million in the same quarter of 2020.

 

Recent Business Highlights

E2open has achieved substantial progress on value levers to sustainably increase organic revenue growth:

 

 

Formation of a new account logo sales team will augment E2open’s current enterprise sales team which historically focused almost exclusively on the current customer base.  

 

 

Strategic partnership with Dun & Bradstreet will identify new data solutions and grow E2open’s market reach.

 

 

Strategic partnership with Maersk to create NeoNav, which will leverage each company’s unique capabilities to bring customers improved supply chain performance.

 

Fiscal Year 2021 Financial Highlights

 

 

Revenue: Total revenue for the combined Successor and Predecessor periods in fiscal year 2021 reached $330.0 million, an increase of 8.1% from $305.1 million in fiscal year 2020. Total revenue was up in part due to the acquisition of Amber Road, partially offset by the negative impact of COVID-19 on the fiscal 2021 results.  Non-GAAP revenue was up 10.7% in fiscal year 2021 to $337.8 million compared to $305.1 million in fiscal year 2020.

 

Fiscal year 2021 subscription revenue for the combined Successor and Predecessor periods was $273.8 million compared to $244.0 million in fiscal 2020.  Non-GAAP subscription revenue for the combined Successor and Predecessor periods was up 15.4% to $281.6 million compared to $244.0 million the prior fiscal year.  A portion of this increase was attributable to the Amber Road acquisition which was completed in the first part of fiscal 2020.

 

 

Gross Profit: Gross profit for the combined Successor and Predecessor periods in fiscal year 2021 was $198.8 million, an increase of 8.0% compared with $184.0 million in fiscal year 2020. Non-GAAP gross profit for the combined Successor and Predecessor periods in fiscal year 2021 was $240.8 million, an increase of 14.5% compared with the prior year of $210.3 million.  This increase was due in part to the acquisition of Amber Road in the first part of fiscal 2020.

 

 

Gross Margin: Gross margin was 60% in both the combined Successor and Predecessor periods in fiscal year 2021, as well as fiscal year 2020.  Non-GAAP gross margin improved to 71% compared to 69% in fiscal year 2020.

 


 

 

EBITDA: EBITDA for the combined Successor and Predecessor periods in fiscal year 2021 was $94.4 million compared with $18.0 million in fiscal year 2020. Adjusted EBITDA was $109.5 million with a margin of 32% for the combined Successor and Predecessor periods in fiscal year 2021, an increase of 59.8% from $68.5 million in fiscal year 2020.

 

 

Net Loss: Net loss for the combined Successor and Predecessor periods in fiscal year 2021 was $35.1 million, compared with a loss of $101.4 million in fiscal year 2020.

 

 

Cash flow and Net debt: Net cash provided by operating activities was $14.5 million for the combined Successor and Predecessor periods for fiscal year 2021, compared to cash used in operating activities of $55.8 million in fiscal year 2020.  Net debt as of February 28, 2021, as defined in the non-GAAP reconciliation Table III, was $323.9 million.  E2open’s net debt forward leverage ratio is approximately 2.7 times adjusted EBITDA as of February 28, 2021 based on projected 2022 adjusted EBITDA.

 

Financial Outlook for Fiscal Year 2022

 

As of May 18, 2021, E2open is providing guidance for its full fiscal year 2022, which ends February 28, 2022, as follows:

 

 

Total non-GAAP revenue is expected to be in the range of $369 million to $371 million.

 

Non-GAAP gross profit is expected to be in the range of $268 million to $270 million.

 

Adjusted EBITDA is expected to be in the range of $120 million to $122 million.

 

These estimates reflect approximately 10% organic subscription revenue growth and an adjusted gross margin in the range of 72 to 73%.


Financial Highlights and Guidance

 

 

Variance

 

FY22

FY22

(in millions)

FY21(a)

Guidance

$

 

Guidance

Growth

 

(unaudited)

 

 

 

 

 

     Subscription Revenue

$273.8

-

-

 

-

-

Business Combination Adjustment (b)

$7.8

-

-

 

-

-

Non-GAAP Subscription Revenue

$281.6

$277.7

$3.9

-

-

    Professional Services Revenue

$56.2

$56.9

$(0.7)

-

-

Non-GAAP Revenue

$337.8

$334.6

$3.2

 

$369 – 371

~10%

 

 

 

 

 

 

 

Gross Profit

$198.8

-

-

 

-

-

Gross Profit Margin

59%

-

 

 

 

 

Non-GAAP Gross Profit

$240.8

$241.5

$(0.7)

 

$268 – 270

~10%

Non-GAAP Gross Profit Margin (c)

71%

72%

 

 

72%

 

 

 

 

 

 

 

 

Adjusted EBITDA

$109.5

$104.6

$4.9

 

$120 – 122

~11%

Adjusted EBITDA Margin (d)

32%

31%

 

 

32%

 

Net Income

$(35.1)

-

-

 

-

-

 

 

 

 

 

 

 

 

 

Footnotes (see reconciliation table for GAAP to non-GAAP metrics)

(a)

Reflects the summation of the periods of our Predecessor from March 1, 2020 through February 3, 2021, and the Successor for the period from February 4, 2021 through February 28, 2021 for the full fiscal 2021.

(b)

Adjustment related to the fair value reduction of deferred revenue as a result of the CCNB1 combination.

(c)

Calculated utilizing non-GAAP gross profit as a percentage of non-GAAP revenue.

(d)

Calculated utilizing adjusted EBITDA as a percentage of non-GAAP revenue.

 

 

Quarterly Conference Call

E2open will host a conference call and live webcast today at 5:00 p.m. ET to discuss fiscal fourth quarter and fiscal year 2021 financial results, in addition to discussing the Company’s outlook for the full fiscal year 2022. To access the conference call, dial 866-757-0071 (U.S. domestic) or 236-714-3680 (international). The conference ID is 2788490. The webcast will be available live on the Investor Relations section of the Company's website at www.e2open.com.

 

An audio replay of the call can also be accessed through Tuesday, May 25, 2021 at 800-585-8367 (U.S. domestic) or 416-621-4642 (international). The replay pass code is 2788490. In addition, an archived webcast will be available an hour after the completion of the call on the Investor Relations section of the Company's website at www.e2open.com.

 

About E2open

 

At E2open, we’re creating a more connected, intelligent supply chain. It starts with sensing and responding to real-time demand, supply and delivery constraints. Bringing together data from clients, distribution channels, suppliers, contract manufacturers and logistics partners, our collaborative and agile supply chain platform


enables companies to use data in real time, with artificial intelligence and machine learning to drive smarter decisions. All this complex information is delivered in a single view that encompasses your demand, supply and logistics ecosystems. E2open is changing everything. Demand. Supply. Delivered.TM Visit www.e2open.com.

 

E2open and the E2open logo are registered trademarks of E2open, LLC. Demand. Supply. Delivered. is a trademark of E2open, LLC.

 

Non-GAAP Financial Measures

 

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including non-GAAP revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, non-GAAP net income, net debt, and non-GAAP gross margin. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies.

 

The Company believes this non-GAAP measure of financial results provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures.

 

Safe Harbor Statement

 

Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.

 

Please see the Company's documents filed or to be filed with the Securities and Exchange Commission, including the annual report filed on Form 10-K, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this press release. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and


projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Investor Contacts

 

J. Adam Rogers

E2open

adam.rogers@e2open.com

515-556-1162

 

Media Contacts

 

WE Communications for E2open

e2open@we-worldwide.com

512-527-7029

 



 

E2OPEN PARENT HOLDINGS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except share amounts)

 

 

 

Three Months Ended

 

 

Successor

 

 

 

Predecessor

 

 

 

February 28, 2021

 

 

February 29, 2020

 

 

February 4, 2021

through

February 28, 2021

 

 

 

March 1, 2020

through

February 3, 2021

 

 

Fiscal Year

Ended February 29, 2020

 

 

Fiscal Year

Ended February 28, 2019

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription revenue

 

$

64,811

 

 

$

67,500

 

 

$

14,117

 

 

 

$

259,707

 

 

$

243,981

 

 

$

153,634

 

Professional services

 

 

16,179

 

 

 

16,674

 

 

 

7,248

 

 

 

 

48,940

 

 

 

61,121

 

 

 

47,573

 

Total revenue

 

 

80,990

 

 

 

84,174

 

 

 

21,365

 

 

 

 

308,647

 

 

 

305,102

 

 

 

201,207

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscriptions

 

 

18,859

 

 

 

15,502

 

 

 

7,823

 

 

 

 

55,602

 

 

 

59,113

 

 

 

33,537

 

Professional services and other

 

 

11,999

 

 

 

12,445

 

 

 

4,324

 

 

 

 

40,466

 

 

 

42,414

 

 

 

31,673

 

Amortization of acquired intangible assets

 

 

7,505

 

 

 

6,033

 

 

 

4,037

 

 

 

 

18,921

 

 

 

19,538

 

 

 

8,350

 

Total cost of revenue

 

 

38,363

 

 

 

33,980

 

 

 

16,184

 

 

 

 

114,989

 

 

 

121,065

 

 

 

73,560

 

Gross Profit

 

 

42,627

 

 

 

50,194

 

 

 

5,181

 

 

 

 

193,658

 

 

 

184,037

 

 

 

127,647

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

21,034

 

 

 

16,862

 

 

 

10,458

 

 

 

 

53,788

 

 

 

61,882

 

 

 

42,523

 

Sales and marketing

 

 

17,547

 

 

 

15,825

 

 

 

8,788

 

 

 

 

46,034

 

 

 

53,605

 

 

 

34,398

 

General and administrative

 

 

30,441

 

 

 

11,458

 

 

 

23,123

 

 

 

 

37,355

 

 

 

51,799

 

 

 

28,001

 

Acquisition-related expenses

 

 

7,311

 

 

 

3,204

 

 

 

4,317

 

 

 

 

14,348

 

 

 

26,709

 

 

 

15,577

 

Amortization of acquired intangible assets

 

 

7,159

 

 

 

8,354

 

 

 

1,249

 

 

 

 

31,275

 

 

 

31,129

 

 

 

20,061

 

Total operating expenses

 

 

83,492

 

 

 

55,703

 

 

 

47,935

 

 

 

 

182,800

 

 

 

225,124

 

 

 

140,560

 

(Loss) income from operations

 

 

(40,865

)

 

 

(5,509

)

 

 

(42,754

)

 

 

 

10,858

 

 

 

(41,087

)

 

 

(12,913

)

Other (expense) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other expense, net

 

 

(14,142

)

 

 

(19,911

)

 

 

(1,928

)

 

 

 

(65,469

)

 

 

(67,554

)

 

 

(20,846

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,604

)

Gain from change in fair value of warrant liability

 

 

23,187

 

 

 

 

 

 

23,187

 

 

 

 

 

 

 

 

 

 

 

Gain from change in fair value of contingent consideration

 

 

33,740

 

 

 

 

 

 

33,740

 

 

 

 

 

 

 

 

 

 

 

Total other income (expenses)

 

 

42,785

 

 

 

(19,911

)

 

 

54,999

 

 

 

 

(65,469

)

 

 

(67,554

)

 

 

(25,450

)

Income (loss) before income tax benefit

 

 

1,920

 

 

 

(25,420

)

 

 

12,245

 

 

 

 

(54,611

)

 

 

(108,641

)

 

 

(38,363

)

Income tax benefit

 

 

31,366

 

 

 

4,471

 

 

 

612

 

 

 

 

6,681

 

 

 

7,271

 

 

 

8,245

 

Net income (loss)

 

 

33,286

 

 

 

(20,949

)

 

 

12,857

 

 

 

$

(47,930

)

 

$

(101,370

)

 

$

(30,118

)

Less: Net income attributable to noncontrolling interest

 

 

2,057

 

 

 

 

 

 

2,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to E2open Parent Holdings, Inc.

 

$

31,229

 

 

$

(20,949

)

 

$

10,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

E2OPEN PARENT HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

February 28, 2021

 

 

 

February 29, 2020

 

 

 

(Unaudited)

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

194,717

 

 

 

$

19,494

 

Restricted cash

 

 

12,825

 

 

 

 

28,934

 

Accounts receivable - net

 

 

112,657

 

 

 

 

118,777

 

Prepaid expenses and other current assets

 

 

12,643

 

 

 

 

12,602

 

Total current assets

 

 

332,842

 

 

 

 

179,807

 

Long-term investments

 

 

224

 

 

 

 

179

 

Goodwill

 

 

2,628,646

 

 

 

 

752,756

 

Intangible assets, net

 

 

824,851

 

 

 

 

467,593

 

Property and equipment, net

 

 

44,198

 

 

 

 

25,232

 

Other noncurrent assets

 

 

7,416

 

 

 

 

14,445

 

Total Assets

 

$

3,838,177

 

 

 

$

1,440,012

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

70,233

 

 

 

$

58,451

 

Incentive program payable

 

 

12,825

 

 

 

 

28,934

 

Deferred revenue

 

 

89,691

 

 

 

 

142,027

 

Acquisition-related obligations

 

 

2,000

 

 

 

 

3,100

 

Current portion of notes payable and capital lease obligations

 

 

9,232

 

 

 

 

64,902

 

Total current liabilities

 

 

183,981

 

 

 

 

297,414

 

Long-term deferred revenue

 

 

482

 

 

 

 

2,656

 

Notes payable and capital lease obligations

 

 

509,388

 

 

 

 

886,806

 

Tax receivable agreement liability

 

 

50,114

 

 

 

 

 

Warrant liability

 

 

68,772

 

 

 

 

 

Contingent consideration

 

 

150,808

 

 

 

 

 

Deferred taxes

 

 

396,217

 

 

 

 

36,636

 

Other noncurrent liabilities

 

 

1,057

 

 

 

 

1,908

 

Total liabilities

 

 

1,360,819

 

 

 

 

1,225,420

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

 

Members' capital

 

 

 

 

 

 

433,992

 

Common Stock

 

 

19

 

 

 

 

 

Additional paid-in capital

 

 

2,071,206

 

 

 

 

 

Accumulated other comprehensive income (loss)

 

 

2,388

 

 

 

 

(898

)

Retained earnings (accumulated deficit)

 

 

10,800

 

 

 

 

(218,502

)

Total stockholders' equity

 

 

2,084,413

 

 

 

 

214,592

 

Noncontrolling interest

 

 

392,945

 

 

 

 

 

Total equity

 

 

2,477,358

 

 

 

 

214,592

 

Total Liabilities and Stockholders' Equity

 

$

3,838,177

 

 

 

$

1,440,012

 

 

 


 

E2OPEN PARENT HOLDINGS, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

February 4, 2021

through

February 28, 2021

 

 

 

March 1, 2020

through

February 3, 2021

 

 

Fiscal Year

Ended February 29, 2020

 

 

Fiscal Year

Ended February 28, 2019

 

 

 

(Unaudited)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

12,857

 

 

 

$

(47,930

)

 

$

(101,370

)

 

$

(30,118

)

Adjustments to reconcile net income (loss) to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,394

 

 

 

 

63,263

 

 

 

60,416

 

 

 

34,348

 

Amortization of deferred commissions

 

 

34

 

 

 

 

3,937

 

 

 

2,238

 

 

 

 

Amortization of debt issuance costs

 

 

206

 

 

 

 

4,007

 

 

 

3,519

 

 

 

1,296

 

Unit-based compensation

 

 

33,000

 

 

 

 

7,277

 

 

 

8,222

 

 

 

8,166

 

Gain from change in fair value of warrant liability

 

 

(23,187

)

 

 

 

 

 

 

-

 

 

 

-

 

Gain from change in fair value of earn-out liability

 

 

 

 

 

 

 

 

 

(146

)

 

 

(77

)

Gain from change in fair value of contingent consideration

 

 

(33,740

)

 

 

 

 

 

 

-

 

 

 

-

 

Gain on sale of short-term investment

 

 

 

 

 

 

 

 

 

 

 

 

(2,246

)

Loss on disposal of property and equipment

 

 

9

 

 

 

 

33

 

 

 

142

 

 

 

47

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

4,604

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

11,514

 

 

 

 

(5,395

)

 

 

(49,992

)

 

 

(7,958

)

Prepaid expenses and other current assets

 

 

3,622

 

 

 

 

(3,611

)

 

 

(1,276

)

 

 

726

 

Other noncurrent assets

 

 

11,017

 

 

 

 

(5,410

)

 

 

(9,113

)

 

 

(472

)

Accounts payable and accrued liabilities

 

 

(6,648

)

 

 

 

12,456

 

 

 

5,493

 

 

 

(6,284

)

Incentive program payable

 

 

1,328

 

 

 

 

(17,437

)

 

 

(1,581

)

 

 

15,815

 

Deferred revenue

 

 

(8,733

)

 

 

 

4,808

 

 

 

36,770

 

 

 

1,406

 

Changes in other liabilities

 

 

(1,872

)

 

 

 

(7,344

)

 

 

(9,169

)

 

 

(9,370

)

Net cash provided by (used in) operating activities

 

 

5,801

 

 

 

 

8,654

 

 

 

(55,847

)

 

 

9,883

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds withdrawn from Trust Account

 

 

414,053

 

 

 

 

 

 

 

 

 

 

 

Payments for acquisitions - net of cash acquired

 

 

(879,907

)

 

 

 

 

 

 

(431,399

)

 

 

(244,449

)

Capital expenditures

 

 

(1,470

)

 

 

 

(13,990

)

 

 

(11,563

)

 

 

(2,712

)

Proceeds from disposal of property and equipment

 

 

49

 

 

 

 

 

 

 

 

 

 

 

Sale of marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

11,419

 

Net cash used in investing activities

 

 

(467,275

)

 

 

 

(13,990

)

 

 

(442,962

)

 

 

(235,742

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from PIPE Investment

 

 

 

 

 

 

627,500

 

 

 

 

 

 

 

Proceeds from sale of membership units

 

 

 

 

 

 

3,501

 

 

 

63

 

 

 

85

 

Repurchase of membership units, net

 

 

 

 

 

 

 

 

 

(115

)

 

 

(1,564

)

Proceeds from indebtedness

 

 

 

 

 

 

23,377

 

 

 

492,588

 

 

 

480,000

 

Repayments of indebtedness

 

 

 

 

 

 

(21,891

)

 

 

(5,529

)

 

 

(197,979

)

Debt extinguishment costs

 

 

 

 

 

 

 

 

 

 

 

 

(3,085

)

Repayments of capital lease obligations

 

 

(468

)

 

 

 

(6,038

)

 

 

(6,449

)

 

 

(5,245

)

Payments of debt issuance costs

 

 

 

 

 

 

 

 

 

(12,941

)

 

 

(11,538

)

Net cash (used in) provided by financing activities

 

 

(468

)

 

 

 

626,449

 

 

 

467,617

 

 

 

260,674

 

Effect of exchange rate changes on cash and cash equivalents

 

 

41

 

 

 

 

(98

)

 

 

232

 

 

 

(112

)

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(461,901

)

 

 

 

621,015

 

 

 

(30,960

)

 

 

34,703

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

669,443

 

 

 

 

48,428

 

 

 

79,388

 

 

 

44,685

 

Cash, cash equivalents and restricted cash at end of period

 

$

207,542

 

 

 

$

669,443

 

 

$

48,428

 

 

$

79,388

 

 

 

 

 


 

E2open Parent Holdings, Inc.

RECONCILIATION OF NON-GAAP INFORMATION TABLE I

(in millions)

 

 

Quarterly

Variance

 

Annual

Variance

 

Q4 - FY21 (a)

Q4 - FY20

%

 

FY21 (a)

FY20

%

 

(unaudited)

(unaudited)

 

 

(unaudited)

 

 

Subscription revenue

              64.8

            67.5

-4.0%

 

        273.8

        244.0

12.2%

Business Combination adjustment (b)

                7.8

               -  

n/m

 

            7.8

             -  

n/m

Non-GAAP subscription revenue

              72.6

            67.5

7.6%

 

        281.6

        244.0

15.4%

 

 

Footnotes

 

 

 

 

 

 

(a)

 

Reflects the summation of the periods of our Predecessor from March 1, 2020 through February 3, 2021, and the Successor for the period from February 4, 2021 through February 28, 2021 for the full fiscal 2021 and the period of our Predecessor from December 1, 2020 through February 3, 2021 and the Successor period from February 4, 2021 through February 28, 2021 for the fiscal fourth quarter 2021.

(b)

 

Adjustment related to the fair value reduction of deferred revenue as a result of the CCNB1 combination.

 

 

 



 

E2open Parent Holdings, Inc.

RECONCILIATION OF NON-GAAP INFORMATION TABLE II

(in millions)

 

 

 

 

 

 

 

 

 

 

Quarterly

Variance

 

Annual

Variance

 

Q4 - FY21(a)

Q4 - FY20

%

 

FY21(a)

FY20

%

 

(unaudited)

(unaudited)

 

 

(unaudited)

 

 

Subscription revenue

              64.8

            67.5

-4.0%

 

        273.8

        244.0

12.2%

Professional services revenue

              16.2

            16.7

-2.9%

 

          56.2

          61.1

-8.1%

Revenue

              81.0

            84.2

-3.8%

 

        330.0

        305.1

8.1%

Business combination adjustment (b)

                7.8

 

n/m

 

            7.8

             -  

n/m

Non-GAAP Revenue

              88.8

            84.2

5.5%

 

       337.8

       305.1

10.7%

 

 

 

 

 

 

 

 

Gross Profit

              42.6

            50.2

-15.1%

 

        198.8

        184.0

8.0%

Adjustments

 

 

 

 

 

 

 

Business Combination Adjustment (b)

                7.8

               -  

n/m

 

            7.8

             -  

n/m

Depreciation expenses

                2.0

              1.5

33.5%

 

            6.9

            5.5

25.9%

Amortization of intangible assets

                7.5

              6.0

25.1%

 

          23.0

          19.5

17.2%

Share - based compensation (c)

                3.3

              0.7

n/m

 

            3.8

            1.2

n/m

Non-recurring/non-operating costs (d)

                0.2

              0.0

n/m

 

            0.7

            0.0

n/m

Non-GAAP Gross Profit

             63.4

            58.4

8.6%

 

       240.8

         210.3

14.5%

Gross profit margin

53%

60%

 

 

60%

60%

 

Non-GAAP Gross profit margin (e)

71%

69%

 

 

71%

69%

 

EBITDA

              34.6

         10.3

235.6%

 

          94.4

          18.0

421.4%

Adjustments

 

 

 

 

 

 

 

Business Combination adjustment (b)

7.8

               -  

n/m

 

7.8

             -  

n/m

Change in fair value of financial instruments (f)

            (56.9)

               -  

n/m

 

        (56.9)

             -  

n/m

Acquisition-related adjustments (g)

                7.3

              2.8

n/m

 

            18.7

          25.0

-25.3%

Non-recurring/non-operating costs (d)

                1.0

              2.5

-61.0%

 

            4.4

            6.3

-30.1%

Share - based compensation (c)

              34.4

              4.1

n/m

 

          41.1

          19.2

n/m

Adjusted EBITDA

             28.2

           19.7

42.9%

 

       109.5

         68.5

59.8%

EBITDA Margin

43%

12%

 

 

29%

6%

 

       Adjusted EBITDA Margin (h)

32%

23%

 

 

32%

23%

 

 

 

 

 

 

 

 

 

 

 

Footnotes

 

 

 

 

 

 

 

(a)

 

Reflects the summation of the periods of our Predecessor from March 1, 2020 through February 3, 2021, and the Successor for the period from February 4, 2021 through February 28, 2021 for the full fiscal 2021 and the period of our Predecessor from December 1, 2020 through February 3, 2021 and the Successor period from February 4, 2021 through February 28, 2021 for the fiscal fourth quarter 2021.

 

 

 

(b)

 

Adjustment related to the fair value reduction of deferred revenue as a result of the CCNB1 combination.

 

 

 

(c)

 

Reflects non-cash, long-term unit-based compensation expense. Fiscal 2020 unit-based compensation includes expense attributable to the acceleration of certain unit-based awards that were accelerated in connection with the Amber Road acquisition. The fourth quarter and full year of 2021 includes $28.2 million in share-based compensation related to the acceleration of unvested options and restricted units of E2open Holdings in connection with the Business Combination and $4.7 million unit-based compensation expense for the restricted Series B-1 and B-2 common stock issued in connection with the Business Combination for the accelerated unvested options and restricted units.


 

 

 

(d)

 

Primarily includes foreign currency exchange gain and losses and other non-recurring expenses such as systems integrations, legal entity simplification, advisory fees and expenses related to retention of key employees from acquisitions.

 

 

 

(e)

 

Calculated utilizing non-GAAP gross profit as a percentage of non-GAAP revenue.

 

 

 

(f)

 

Represents the fair value adjustment at each balance sheet date of the warrant liability related to the public, private placement and forward purchase warrants and the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted Series B-1 and B-2 common stock issued in connection with the Business Combination of E2open Holdings, LLC and CCNB1.

 

 

 

(g)

 

Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with mergers and acquisitions activities, including related valuation, negotiation and integration costs and capital-raising activities, including costs related to the acquisition of Amber Road and the Business Combination.

 

 

.

(h)

 

Calculated utilizing adjusted EBITDA as a percentage of non-GAAP revenue.

 

 

 

 

 

 

 

 

 



E2open Parent Holdings, Inc.

RECONCILIATION OF NON-GAAP INFORMATION TABLE III

(in millions)

 

 

As of
February 28, 2021

 

(unaudited)

Current portion of notes payable and capital lease obligations

$9.2

Notes payable and capital lease obligations

509.4

Adjusted for:

 

Cash and cash equivalents

194.7

Net Debt as of Feb. 28, 2021

$323.9

 

 

Projected FY22 adjusted EBITDA

$120 - 122

 

 

Net Debt Forward Leverage Ratio (non-GAAP)

~2.7x

 

 



 

E2open Parent Holdings, Inc.

RECONCILIATION OF NON-GAAP INFORMATION TABLE IV

(in millions)

 

 

Fourth Fiscal Quarter 2021

 

 

Fiscal Year 2021

 

Successor

 

 

Predecessor

 

Successor

 

 

 

Predecessor

 

February 4, 2021

through

February 28, 2021

 

 

December 1, 2020

through

February 3, 2021

 

Combined (a)

 

February 4, 2021

through

February 28, 2021

 

 

March 1, 2020

through

February 3, 2021

 

Combined (a)

 

(unaudited)

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

(unaudited)

 

(unaudited)

Subscription revenue (a)

$14.1

 

 

$50.7

 

$64.8

 

$14.1

 

 

$259.7

 

$273.8

Professional services revenue (a)

7.3

 

 

8.9

 

16.2

 

7.3

 

 

48.9

 

56.2

Revenue

21.4

 

 

59.6

 

81.0

 

21.4

 

 

308.6

 

330.0

Business combination adjustment (b)

7.8

 

 

-

 

7.8

 

7.8

 

 

-

 

7.8

Non-GAAP Revenue

29.2

 

 

59.6

 

88.8

 

29.2

 

 

308.6

 

337.8

 

 

 

 

-

 

 

 

 

 

 

-

 

 

Gross Profit

5.2

 

 

37.4

 

42.6

 

5.2

 

 

193.6

 

198.8

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Combination Adjustment (b)

7.8

 

 

-

 

7.8

 

7.8

 

 

-

 

7.8

Depreciation expenses

0.6

 

 

1.4

 

2.0

 

0.6

 

 

6.3

 

6.9

Amortization of intangible assets

4.0

 

 

3.5

 

7.5

 

4.0

 

 

18.9

 

22.9

Share - based compensation (c)

3.2

 

 

0.1

 

3.3

 

3.2

 

 

0.5

 

3.7

Non-recurring/non-operating costs (d)

0.1

 

 

0.1

 

0.2

 

0.1

 

 

0.6

 

0.6

Non-GAAP Gross Profit

20.9

 

 

42.5

 

63.4

 

20.9

 

 

220.0

 

240.8

Gross profit margin

24.2%

 

 

62.8%

 

52.6%

 

24.2%

 

 

62.7%

 

60.2%

Non-GAAP Gross profit margin

71.6%

 

 

71.3%

 

71.4%

 

71.6%

 

 

71.2%

 

71.3%

EBITDA

20.5

 

 

14.1

 

34.6

 

20.5

 

 

73.9

 

94.4

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Combination adjustment (b)

7.8

 

 

-

 

7.8

 

7.8

 

 

-

 

7.8

Change in fair value of financial instruments (f)

(56.9)

 

 

-

 

(56.9)

 

(56.9)

 

 

-

 

(56.9)

Acquisition-related adjustments (g)

4.3

 

 

3.0

 

7.3

 

4.3

 

 

14.4

 

18.7

Non-recurring/non-operating costs (d)

0.4

 

 

0.6

 

1.0

 

0.4

 

 

4.0

 

4.4

Share - based compensation (c)

33.0

 

 

1.4

 

34.4

 

33.0

 

 

8.1

 

41.1

Adjusted EBITDA

9.1

 

 

19.1

 

28.8

 

9.1

 

 

100.4

 

109.5

EBITDA Margin

95.8%

 

 

23.6%

 

42.7%

 

95.8%

 

 

23.9%

 

28.6%

Adjusted EBITDA Margin (h)

31.1%

 

 

32.0%

 

31.7%

 

31.1%

 

 

32.5%

 

32.4%

Net income

12.9

 

 

20.4

 

33.3

 

12.9

 

 

(48.0)

 

(35.1)

 

 

Footnotes

 

(a)

 

Reflects the summation of the periods of our Predecessor from March 1, 2020 through February 3, 2021, and the Successor for the period from February 4, 2021 through February 28, 2021 for the full fiscal 2021 and the period of our Predecessor from December 1, 2020 through February 3, 2021 and the Successor period from February 4, 2021 through February 28, 2021 for the fiscal fourth quarter 2021.

 

 

 

(b)

 

Adjustment related to the fair value reduction of deferred revenue as a result of the CCNB1 combination.

 

 

 

(c)

 

Reflects non-cash, long-term unit-based compensation expense. Fiscal 2020 unit-based compensation includes expense attributable to the acceleration of certain unit-based awards that were accelerated in connection with the Amber Road acquisition. The fourth quarter and full year of 2021 includes $28.2 million in share-based compensation related to the acceleration of unvested options and restricted units of E2open Holdings in connection with the Business Combination and $4.7 million unit-based compensation expense for the restricted Series B-1 and B-2 common stock issued in connection with the Business Combination for the accelerated unvested options and restricted units.

 

 

 

(d)

 

Primarily includes foreign currency exchange gain and losses and other non-recurring expenses such as systems integrations, legal entity simplification, advisory fees and expenses related to retention of key employees from acquisitions.


 

 

 

(e)

 

Calculated utilizing non-GAAP gross profit as a percentage of non-GAAP revenue.

 

 

 

(f)

 

Represents the fair value adjustment at each balance sheet date of the warrant liability related to the public, private placement and forward purchase warrants and the fair value adjustment at each balance sheet date of the contingent consideration liability related to the restricted Series B-1 and B-2 common stock issued in connection with the Business Combination of E2open Holdings, LLC and CCNB1.

(g)

 

Primarily includes advisory, consulting, accounting and legal expenses incurred in connection with mergers and acquisitions activities, including related valuation, negotiation and integration costs and capital-raising activities, including costs related to the acquisition of Amber Road and the Business Combination.

 

 

 

(h)

 

Calculated utilizing adjusted EBITDA as a percentage of non-GAAP revenue.