EX-99.1 2 ex99-1.htm EX-99.1 ex99-1.htm
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Exhibit 99.1

 

Globalscape® Announces Financial Results for Fourth Quarter 2014 and Fiscal 2014
 
Quarter and Annual Revenue the Highest in Company History; Quarterly Dividend Program Announced
 
SAN ANTONIO — February 5, 2015 — GlobalSCAPE, Inc. (NYSE MKT: GSB), a leading developer of secure information exchange solutions, announced today its financial results for the three months and fiscal year ended December 31, 2014, and the initiation of a quarterly dividend program.
 
Revenue for the fourth quarter of 2014 was $7.9 million, which is the highest quarterly revenue in Globalscape’s history. This result is an increase of 27 percent when compared with revenue of $6.2 million for the fourth quarter of 2013.
 
Revenue for the year ended December 31, 2014, was $26.8 million, which is the highest annual revenue in Globalscape’s history. This result is an increase of 10 percent when compared with revenue of $24.3 million for the year ended December 31, 2013.
 
Deferred revenue, which can be an indicator of future revenue trends, was $14.8 million at December 31, 2014, compared with $10.8 million at December 31, 2013, or an increase of 37 percent.
 
For the fourth quarter of 2014, the Company had net income of $1.2 million compared with net income of $655,000 for the fourth quarter of 2013. Earnings per share was $0.06 for the fourth quarter of 2014 compared with $0.03 for the fourth quarter of 2013.
 
For the year ended December 31, 2014, the Company had net income of $3.0 million compared with net income of $3.8 million for the year ended December 31, 2013. Earnings per share was $0.15 for the year ended December 31, 2014, compared with $0.21 for the year ended December 31, 2013.
 
Net income for the year ended December 31, 2013, included infrequent items resulting from the TappIn intangible impairment and earnout liability elimination which occurred in the third quarter of fiscal 2013.  Net income excluding infrequent items for the year ended December 31, 2013, was $2.5 million. Basic and diluted earnings per share excluding infrequent items for the year ended December 31, 2013, was $0.13.
 
Adjusted EBITDA Excluding Infrequent Items was $5.4 million for the year ended December 31, 2014, compared with $5.2 million for the year ended December 31, 2013.
 
Net income excluding infrequent items and adjusted EBITDA excluding infrequent items are not measures of financial performance under GAAP and have limitations as analytical tools and when assessing the Company’s operating performance. These measures should not be considered in isolation from or as a substitute for net income or other income statement data prepared in accordance with GAAP.
 
 
 
 
 
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Net cash provided by operating activities was $8.5 million for the year ended December 31, 2014, compared to $4.5 million for the year ended December 31, 2013. Cash, cash equivalents and long-term investments were $14.5 million at December 31, 2014.  During the third quarter of 2014, the Company repaid all its notes payable and no longer has any notes payable or long term debt.
 
“We are pleased with the progress we made in the 2014 that established a solid foundation for long-term growth,” said James Bindseil, Globalscape’s President and Chief Executive Officer. “I am confident that the plans in place will lead us to even higher returns in the future.” 
 
Globalscape Fourth Quarter and Fiscal 2014 Financial Statements
 
·  
Financial Statements (PDF)
 
Conference Call February 5, 2015 at 4:30 p.m. ET
 
Globalscape management will hold a conference call Thursday, February 5, 2015, at 4:30 p.m. Eastern Time/3:30 p.m. Central Time to discuss financial results and other corporate matters for the fourth quarter and fiscal 2014. Those wanting to join should call 888-430-8691 or 719-325-2452 and use Conference ID # 8818285. A live webcast of the conference call will also be available in the investor relations page of the company's website at www.Globalscape.com. A webcast replay of the conference call will be available on the Company’s website for approximately 30 days after this call.
 
About Globalscape
 
San Antonio, Texas-based GlobalSCAPE, Inc. (NYSE MKT: GSB) ensures the reliability of mission-critical operations by securing sensitive data and intellectual property. Globalscape’s suite of solutions features the EFT platform, the industry-leading enterprise file transfer solution that delivers military-grade security and a customizable platform for achieving best-in-class control and visibility of data in motion or at rest, across multiple locations. Founded in 1996, Globalscape is a leading enterprise solution provider of secure information exchange software and services to thousands of customers, including global enterprises, governments, and small businesses. For more information, visit www.Globalscape.com or follow the blog and Twitter updates.
 
Safe Harbor Statement
 
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "would," "exceed," "should," "anticipates," "believe," "steady," "dramatic," and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s Annual Report on Form 10-K for the 2013 calendar year, filed with the Securities and Exchange Commission on March 27, 2014.
 
 
 
 
 
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INVESTOR RELATIONS CONTACT
Contact: Jim Fanucchi
Phone Number: (408) 404-5400
Email: ir@globalscape.com

PRESS CONTACT
Contact: Christen Gentile
Phone Number: (210) 308-8267
Email: PR@globalscape.com

 
 
 
 
 
 
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GlobalSCAPE, Inc.
Consolidated Balance Sheets
(in thousands)
 
   
December 31,
    
December 31,
  
   
2014
    
2013
  
Assets
            
Current assets:
            
 Cash and cash equivalents
   $ 11,358     $ 9,455  
 Accounts receivable (net of allowance for doubtful accounts
       of $511 and $154 in 2014 and 2013, respectively)
     5,938       3,765  
 Federal income tax receivable
     -       113  
 Current deferred tax asset
     285       184  
 Prepaid expenses
     488       349  
 Total current assets
     18,069       13,866  
                 
 Fixed assets, net
     616       744  
 Long term investments
     3,185       3,122  
 Intangible assets, net
     3,298       1,028  
 Goodwill
     12,712       12,712  
 Deferred tax asset
     407       1,476  
 Other assets
     100       144  
 Total assets
   $ 38,387     $ 33,092  
                 
 Liabilities and Stockholders’ Equity
                
 Current liabilities:
                
 Accounts payable
   $ 1,111     $ 655  
 Accrued expenses
     1,590       898  
 Deferred revenue
     11,411       9,092  
 Income taxes payable
     2       -  
 Long term debt, current portion
     -       1,397  
 Total current liabilities
     14,114       12,042  
                 
 Deferred revenue, non-current portion
     3,393       1,708  
 Long term debt, non-current portion
     -       2,989  
 Other long term liabilities
     52       60  
 Commitments and contingencies
                
                 
 Stockholders’ equity:
                
 Preferred stock, par value $0.001 per share, 10,000,000
     authorized, no shares issued or outstanding
     -       -  
 Common stock, par value $0.001 per share, 40,000,000
     authorized, 20,989,267  and 19,592,117 shares issued
     at December 31, 2014 and December 31, 2013, respectively
     25       20  
 Additional paid-in capital
     18,367       15,834  
 Treasury stock, 403,581 shares, at cost, at
     December 31, 2014 and December 31, 2013
     (1,452 )     (1,452 )
 Retained earnings
     3,888       1,891  
 Total stockholders’ equity
     20,828       16,293  
 Total liabilities and stockholders’ equity
   $ 38,387     $ 33,092  
 
 
 
 

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GlobalSCAPE, Inc.
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share amounts)
 
   
Year Ended December 31,
  
   
2014
    
2013
  
             
Operating Revenues:
            
Software licenses
   $ 10,292     $ 9,210  
Maintenance and support
     15,033       13,650  
Professional services
     1,445       1,479  
Total revenues
     26,770       24,339  
Operating Expenses:
                
Cost of revenues
     1,018       1,011  
Selling, general and administrative
     15,224       14,881  
Research and development
     5,030       3,766  
TappIn intangible asset impairment and
  earnout liability elimination
     -       (128 )
Depreciation and amortization
     883       908  
Total operating expenses
     22,155       20,438  
Income (loss) from operations
     4,615       3,901  
                 
Other income (expense):
                
Interest expense
     (105 )     (227 )
Interest income
     63       62  
Total other income (expense)
     (42 )     (165 )
Income before income taxes
     4,573       3,736  
Provision for income taxes
     1,547       (104 )
Net income
   $ 3,026     $ 3,840  
Comprehensive income
   $ 3,026     $ 3,840  
                 
Net income per common share - basic
   $ 0.15     $ 0.21  
                 
Net income per common share - diluted
   $ 0.15     $ 0.20  
                 
Weighted average shares outstanding:
                
Basic
     20,163       18,626  
                 
Diluted
     20,693       19,082  
 
 
 
 
 
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GlobalSCAPE, Inc.
Consolidated Statements of Cash Flows
(in thousands)
 
   
For the Year Ended December 31,
  
   
2014
    
2013
  
Operating Activities:
            
Net income (loss)
   $ 3,026     $ 3,840  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
  
Bad debt expense
     426       29  
Depreciation and amortization
     883       908  
Stock-based compensation
     521       666  
Deferred taxes
     968       (948 )
Excess tax deficiency from exercise of share based compensation
     227       156  
TappIn intangible asset impairment and
 earnout liability elimination
     -       (128 )
Other
     74       -  
Changes in operating assets and liabilities:
                
Accounts receivable
     (2,600 )     (444 )
Prepaid expenses
     (139 )     77  
Federal income taxes
     (112 )     (315 )
Other assets
     44       (103 )
Accounts payable
     456       223  
Accrued expenses
     693       (455 )
Deferred revenues
     4,004       1,027  
Other long-term liabilities
     (8 )     (2 )
Net cash provided by operating activities
     8,463       4,531  
Investing Activities:
                
Software development costs
     (2,847 )     (899 )
Purchase of property and equipment
     (252 )     (139 )
Purchase of TappIn, Inc. and earnout payments
     -       (500 )
Interest on long term investments
     (63 )     (62 )
Net cash provided by (used in) investing activities
     (3,162 )     (1,600 )
Financing Activities:
                
Proceeds from exercise of stock options
     2,243       890  
Tax deficiency (benefit) from stock-based compensation
     (227 )     (156 )
Notes payable principle payments
     (4,386 )     (1,338 )
Dividends paid
     (1,028 )     (951 )
Net cash provided by (used in)  financing activities
     (3,398 )     (1,555 )
Net increase in cash
     1,903       1,376  
Cash at beginning of period
     9,455       8,079  
Cash at end of period
   $ 11,358     $ 9,455  
                 
Supplemental disclosure of cash flow information:
                
Cash paid during the period for:
                
Interest
   $ 117     $ 234  
Income taxes
   $ 701     $ 1,161  
 
 
 
 
 
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GlobalSCAPE, Inc.
Adjusted EBITDA Excluding Infrequent Items
(In Thousands)
 
   
Year Ended December 31,
  
   
2014
    
2013
  
Income (loss) from operations (before interest and taxes)
   $ 4,615     $ 3,901  
Add (subtract):
                
Depreciation and amortization:
                
Total depreciation and amortization
     883       908  
Amortization of capitalized software development costs
     (577 )     (174 )
Stock-based compensation expense
     521       666  
Infrequent item:
                
TappIn intangible asset impairment and earnout liability elimination
     -       (128 )
Adjusted EBITDA Excluding Infrequent Items
   $ 5,442     $ 5,173