Date of Report (Date of earliest event reported) | September 30, 2013 |
Delaware | 001-34832 | 20-8915510 |
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Identification No.) |
150 East 42nd Street, 8th Floor, New York, NY | 10017 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code | (212) 543-7700 |
(d) | Exhibits: | |||
99.1 | Press Release issued by Intralinks Holdings, Inc. on November 7, 2013. |
INTRALINKS HOLDINGS, INC. | ||
By: | /s/ Derek Irwin | |
Derek Irwin | ||
Chief Financial Officer |
Exhibit | |
Number | Description |
99.1 | Press Release issued by Intralinks Holdings, Inc. on November 7, 2013. |
▪ | M&A revenue was $28.7 million, compared to $23.9 million for the corresponding quarter last year. |
▪ | Enterprise revenue was $23.2 million, compared to $23.8 million for the corresponding quarter last year. |
▪ | DCM revenue was $7.2 million, compared to $7.0 million for the corresponding quarter last year. |
• | Non-GAAP gross profit represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense and (2) amortization of intangible assets, if any. |
• | Non-GAAP adjusted operating income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, (3) impairment charges or asset write-offs and (4) costs related to public stock offerings, if any. |
• | Non-GAAP adjusted net income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, (3) impairment charges or asset write-offs, (4) costs related to debt repayments and (5) costs related to public stock offerings, if any. Non-GAAP adjusted net income is calculated using an estimated long-term effective tax rate. |
• | Non-GAAP net income per share represents non-GAAP adjusted net income (defined above) divided by fully diluted weighted average shares outstanding. |
• | Non-GAAP adjusted EBITDA represents net (loss) income adjusted to exclude (1) interest expense, (2) income tax provision (benefit), (3) depreciation and amortization, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) amortization of debt issuance costs, (7) other (income) expense, net, (8) impairment charges or asset write-offs and (9) costs related to public stock offerings, if any. |
• | Free cash flow represents net cash provided by operating activities less capital expenditures and capitalized software development costs. |
September 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 44,643 | $ | 43,798 | ||||
Accounts receivable, net of allowances of $3,370 and $2,927, respectively | 37,868 | 37,667 | ||||||
Investments | 34,721 | 31,549 | ||||||
Deferred taxes | 10,484 | 7,469 | ||||||
Restricted cash | 2,442 | — | ||||||
Prepaid expenses and other current assets | 11,127 | 8,992 | ||||||
Total current assets | 141,285 | 129,475 | ||||||
Fixed assets, net | 12,293 | 10,645 | ||||||
Capitalized software, net | 31,558 | 26,295 | ||||||
Goodwill | 215,869 | 215,478 | ||||||
Other intangibles, net | 89,514 | 106,750 | ||||||
Other assets | 823 | 1,111 | ||||||
Total assets | $ | 491,342 | $ | 489,754 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,021 | $ | 4,451 | ||||
Accrued expenses and other current liabilities | 21,111 | 20,320 | ||||||
Deferred revenue | 47,346 | 40,719 | ||||||
Current portion of long-term debt | 75,328 | 1,030 | ||||||
Total current liabilities | 151,806 | 66,520 | ||||||
Long-term debt | 153 | 75,238 | ||||||
Deferred taxes | 17,644 | 21,135 | ||||||
Other long-term liabilities | 4,072 | 4,809 | ||||||
Total liabilities | 173,675 | 167,702 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Undesignated Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2013 and December 31, 2012 | — | — | ||||||
Common Stock, $0.001 par value; 300,000,000 shares authorized; 55,933,403 and 55,486,651 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 56 | 55 | ||||||
Additional paid-in capital | 426,998 | 419,618 | ||||||
Accumulated deficit | (108,865 | ) | (97,436 | ) | ||||
Accumulated other comprehensive loss | (522 | ) | (185 | ) | ||||
Total stockholders' equity | 317,667 | 322,052 | ||||||
Total liabilities and stockholders' equity | $ | 491,342 | $ | 489,754 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | 59,116 | $ | 54,753 | $ | 171,879 | $ | 159,303 | ||||||||
Cost of revenue | 15,919 | 15,209 | 47,709 | 46,935 | ||||||||||||
Gross profit | 43,197 | 39,544 | 124,170 | 112,368 | ||||||||||||
Operating expenses: | ||||||||||||||||
Product development | 4,878 | 5,359 | 14,236 | 15,073 | ||||||||||||
Sales and marketing | 27,122 | 23,526 | 79,310 | 70,659 | ||||||||||||
General and administrative | 13,844 | 12,453 | 41,701 | 38,812 | ||||||||||||
Impairment of capitalized software | — | — | — | 8,377 | ||||||||||||
Total operating expenses | 45,844 | 41,338 | 135,247 | 132,921 | ||||||||||||
Loss from operations | (2,647 | ) | (1,794 | ) | (11,077 | ) | (20,553 | ) | ||||||||
Interest expense | 1,242 | 1,171 | 3,516 | 5,245 | ||||||||||||
Amortization of debt issuance costs | 71 | 177 | 287 | 591 | ||||||||||||
Other (income) expense, net | (662 | ) | (689 | ) | 306 | (1,478 | ) | |||||||||
Net loss before income tax | (3,298 | ) | (2,453 | ) | (15,186 | ) | (24,911 | ) | ||||||||
Income tax benefit | (782 | ) | (1,194 | ) | (3,757 | ) | (9,039 | ) | ||||||||
Net loss | $ | (2,516 | ) | $ | (1,259 | ) | $ | (11,429 | ) | $ | (15,872 | ) | ||||
Net loss per common share | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.21 | ) | $ | (0.29 | ) | ||||
Diluted | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.21 | ) | $ | (0.29 | ) | ||||
Weighted average number of shares used in calculating net loss per share | ||||||||||||||||
Basic | 55,191,868 | 54,391,089 | 55,042,305 | 54,291,683 | ||||||||||||
Diluted | 55,191,868 | 54,391,089 | 55,042,305 | 54,291,683 |
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Net loss | $ | (11,429 | ) | $ | (15,872 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 15,142 | 13,502 | ||||||
Stock-based compensation expense | 6,225 | 4,831 | ||||||
Amortization of intangible assets | 17,778 | 19,928 | ||||||
Amortization of deferred costs | 1,160 | 1,335 | ||||||
Provision for bad debts and customer credits | 1,058 | 1,443 | ||||||
Loss on disposal of fixed assets | — | 16 | ||||||
Impairment of capitalized software | — | 8,377 | ||||||
Deferred taxes | (6,298 | ) | (11,537 | ) | ||||
Gain on interest rate swap | — | (1,455 | ) | |||||
Currency remeasurement (gain) loss | (107 | ) | 465 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,186 | ) | 330 | |||||
Prepaid expenses and other assets | (2,430 | ) | (3,362 | ) | ||||
Accounts payable | 3,550 | (1,612 | ) | |||||
Accrued expenses and other liabilities | 710 | 4,307 | ||||||
Deferred revenue | 5,960 | 486 | ||||||
Net cash provided by operating activities | 30,133 | 21,182 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (5,432 | ) | (6,882 | ) | ||||
Restricted cash | (2,443 | ) | — | |||||
Acquisition | (600 | ) | — | |||||
Capitalized software development costs | (16,575 | ) | (14,676 | ) | ||||
Purchase of short-term investments | (36,477 | ) | (31,346 | ) | ||||
Maturity of short-term investments | 32,596 | 31,820 | ||||||
Net cash used in investing activities | (28,931 | ) | (21,084 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options and issuance of common stock | 1,155 | 476 | ||||||
Repayments of outstanding financing arrangements | (631 | ) | (300 | ) | ||||
Repayments of outstanding principal on long-term debt | (616 | ) | (15,656 | ) | ||||
Net cash used in financing activities | (92 | ) | (15,480 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (265 | ) | (236 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 845 | (15,618 | ) | |||||
Cash and cash equivalents at beginning of period | 43,798 | 46,694 | ||||||
Cash and cash equivalents at end of period | $ | 44,643 | $ | 31,076 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Gross profit | $ | 43,197 | $ | 39,544 | $ | 124,170 | $ | 112,368 | ||||||||
Gross margin | 73.1 | % | 72.2 | % | 72.2 | % | 70.5 | % | ||||||||
Cost of revenue – stock-based compensation expense | 194 | 121 | 511 | 321 | ||||||||||||
Cost of revenue – amortization of intangible assets | 2,082 | 1,986 | 6,151 | 8,383 | ||||||||||||
Non-GAAP Gross profit | $ | 45,473 | $ | 41,651 | $ | 130,832 | $ | 121,072 | ||||||||
Non-GAAP Gross margin | 76.9 | % | 76.1 | % | 76.1 | % | 76.0 | % | ||||||||
Loss from operations | $ | (2,647 | ) | $ | (1,794 | ) | $ | (11,077 | ) | $ | (20,553 | ) | ||||
Stock-based compensation expense | 2,097 | 1,795 | 6,225 | 4,831 | ||||||||||||
Amortization of intangible assets | 5,967 | 5,834 | 17,778 | 19,928 | ||||||||||||
Impairment of capitalized software | — | — | — | 8,377 | ||||||||||||
Non-GAAP adjusted Operating income | $ | 5,417 | $ | 5,835 | $ | 12,926 | $ | 12,583 | ||||||||
Net loss before income tax | $ | (3,298 | ) | $ | (2,453 | ) | $ | (15,186 | ) | $ | (24,911 | ) | ||||
Stock-based compensation expense | 2,097 | 1,795 | 6,225 | 4,831 | ||||||||||||
Amortization of intangible assets | 5,967 | 5,834 | 17,778 | 19,928 | ||||||||||||
Impairment of capitalized software | — | — | — | 8,377 | ||||||||||||
Costs related to debt repayments | — | — | — | 47 | ||||||||||||
Non-GAAP adjusted net income before tax | 4,766 | 5,176 | 8,817 | 8,272 | ||||||||||||
Non-GAAP income tax provision | 1,811 | 1,967 | 3,350 | 3,143 | ||||||||||||
Non-GAAP adjusted net income | $ | 2,955 | $ | 3,209 | $ | 5,467 | $ | 5,129 | ||||||||
Net loss | $ | (2,516 | ) | $ | (1,259 | ) | $ | (11,429 | ) | $ | (15,872 | ) | ||||
Interest expense | 1,242 | 1,171 | 3,516 | 5,245 | ||||||||||||
Income tax benefit | (782 | ) | (1,194 | ) | (3,757 | ) | (9,039 | ) | ||||||||
Depreciation and amortization | 5,290 | 4,732 | 15,142 | 13,502 | ||||||||||||
Amortization of intangible assets | 5,967 | 5,834 | 17,778 | 19,928 | ||||||||||||
Stock-based compensation expense | 2,097 | 1,795 | 6,225 | 4,831 | ||||||||||||
Impairment of capitalized software | — | — | — | 8,377 | ||||||||||||
Amortization of debt issuance costs | 71 | 177 | 287 | 591 | ||||||||||||
Other (income) expense, net | (662 | ) | (689 | ) | 306 | (1,478 | ) | |||||||||
Non-GAAP adjusted EBITDA | $ | 10,707 | $ | 10,567 | $ | 28,068 | $ | 26,085 | ||||||||
Non-GAAP adjusted EBITDA margin | 18.1 | % | 19.3 | % | 16.3 | % | 16.4 | % | ||||||||
Net cash flow provided by operating activities | $ | 10,376 | $ | 2,457 | $ | 30,133 | $ | 21,182 | ||||||||
Capital expenditures | (2,143 | ) | (963 | ) | (5,432 | ) | (6,882 | ) | ||||||||
Capitalized software development costs | (5,739 | ) | (4,324 | ) | (16,575 | ) | (14,676 | ) | ||||||||
Free cash flow | $ | 2,494 | $ | (2,830 | ) | $ | 8,126 | $ | (376 | ) |
Three Months Ending December 31, 2013 | Year Ending December 31, 2013 | |||||||
Gross profit | $ | 42,281 | $ | 166,451 | ||||
Gross margin | 72.9 | % | 72.4 | % | ||||
Cost of revenue - stock-based compensation expense | 165 | 676 | ||||||
Cost of revenue - amortization of intangible assets | 2,054 | 8,205 | ||||||
Non-GAAP gross profit | $ | 44,500 | $ | 175,332 | ||||
Non-GAAP gross margin | 76.7 | % | 76.3 | % | ||||
Loss from operations | $ | (4,329 | ) | $ | (15,406 | ) | ||
Stock-based compensation expense | 2,061 | 8,286 | ||||||
Amortization of intangible assets | 5,868 | 23,646 | ||||||
Non-GAAP adjusted operating income | $ | 3,600 | $ | 16,526 | ||||
Net loss before income tax | $ | (5,467 | ) | $ | (20,653 | ) | ||
Stock-based compensation expense | 2,061 | 8,286 | ||||||
Amortization of intangible assets | 5,868 | 23,646 | ||||||
Non-GAAP adjusted net income before tax | 2,462 | 11,279 | ||||||
Non-GAAP income tax provision | 936 | 4,286 | ||||||
Non-GAAP adjusted net income | $ | 1,526 | $ | 6,993 | ||||
Net loss | $ | (3,482 | ) | $ | (14,911 | ) | ||
Interest expense | 1,092 | 4,608 | ||||||
Income tax benefit | (1,985 | ) | (5,742 | ) | ||||
Depreciation and amortization | 5,400 | 20,542 | ||||||
Amortization of intangible assets | 5,868 | 23,646 | ||||||
Stock-based compensation expense | 2,061 | 8,286 | ||||||
Amortization of debt issuance costs | 71 | 358 | ||||||
Other (income) expense, net | (25 | ) | 281 | |||||
Non-GAAP adjusted EBITDA | $ | 9,000 | $ | 37,068 | ||||
Non-GAAP adjusted EBITDA margin | 15.5 | % | 16.1 | % |