Delaware | 001-35956 | 26-1212370 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
1405 Lake Cook Road, Deerfield, IL | 60015 | |||
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TEXTURA CORPORATION | ||||
November 5, 2014 | By: | /s/ Jillian Sheehan | ||
Name: | Jillian Sheehan | |||
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release, dated November 5, 2014 |
• | Net loss per share of $0.30 - loss of $0.24 in the prior quarter, primarily due to non-recurring severance expense |
• | Revenue: Revenue was $16.4 million, a year-over-year increase of 51%, and organic revenue increased by 43% year over year. Activity-driven revenue for the quarter was positively impacted by growth in active projects and construction value managed on our solutions as well as increased CPM subscription fee revenue. Organization-driven revenue was positively impacted by an increase in the number of organizations using our PlanSwift solution. |
• | Operating Metrics: Total active construction projects increased 29% year over year to 8,030, representing approximately $155 billion of construction value. New projects added totaled 1,792, representing $18.2 billion in construction value, a decrease of 23% year over year, primarily due to the timing of large general contractor implementations and larger-scale projects. Latista had 289 active projects and added 70 new projects, contributing $1.6 billion of the quarter's construction value added. Total number of organizations increased by 65% year over year to 16,694. |
• | Deferred Revenue: Deferred revenue at September 30, 2014 was $33.6 million, up 8% from $31.1 million at June 30, 2014 and up 54% from $21.9 million at September 30, 2013. |
• | Net Loss: Adjusted EBITDA loss was $1.0 million and GAAP net loss was $7.5 million, an improvement from losses of $4.5 million and $8.3 million, respectively, in the quarter ended September 30, 2013. Adjusted EPS loss was $0.07 and GAAP net loss per share was $0.30, an improvement from losses of $0.23 and $0.36, respectively, in the quarter ended September 30, 2013, driven primarily by higher revenue and a higher share count in the current year, partially offset by higher costs to support our growth and strategic initiatives. |
• | Total Cash and Cash Equivalents: As of September 30, 2014, total cash and cash equivalents was $66.0 million. Cash provided by operations during the quarter was $1.2 million, resulting in positive year-to-date cash from operations. Operating cash flow improvement over the prior-year period was driven primarily by the leverage we continue to see in our business model, with revenue growing at 51%, deferred revenue growing by 54%, operating expenses growing at 26% and adjusted operating expenses growing at 14%. Other uses of cash during the quarter included capitalized software development costs and other capital expenditures, as well as an increase in restricted cash. |
• | LATISTA: The Latista acquisition closed on December 2, 2013 and contributed revenue of $0.8 million in the quarter ended September 30, 2014. The impact of Latista included in the consolidated results was Adjusted EBITDA loss and GAAP net loss of $1.0 million and $1.5 million, respectively, and Adjusted EPS loss and GAAP net loss per share of $0.04 and $0.06, respectively. |
Three Months Ended September 30, 2014 | |||||||||||
Pre-LATISTA | LATISTA | Total | |||||||||
Revenue (in millions) | $ | 15.6 | $ | 0.8 | $ | 16.4 | |||||
Year-over-year revenue growth | 43 | % | - | 51 | % | ||||||
Adjusted EPS loss | $ | 0.03 | $ | 0.04 | $ | 0.07 | |||||
GAAP net loss per share | $ | 0.24 | $ | 0.06 | $ | 0.30 |
• | Revenue in the range of $17.4 to $17.8 million |
• | Year-over-year revenue growth in the range of 45 - 48% |
• | Year-over-year organic revenue growth in the range of 40 - 43% |
• | Adjusted EPS in the range of $(0.02) - $(0.04), excluding stock-based compensation expenses of $2.0 million and amortization of acquired intangible assets of $1.1 million, and assuming approximately 25.5 million weighted-average common shares outstanding |
• | GAAP net loss per share in the range of $(0.14) - $(0.16) |
• | Revenue in the range of $62.5 to $62.9 million |
• | Year-over-year revenue growth in the range of 53 - 54% |
• | Year-over-year organic revenue growth in the range of 45 - 46% |
• | Adjusted EPS in the range of $(0.37) - $(0.39), excluding stock-based compensation expenses of $8.5 million and amortization of acquired intangible assets of $5.0 million, and assuming approximately 25.2 million weighted-average common shares outstanding |
• | GAAP net loss per share in the range of $(0.98) - $(1.00) |
• | for planning purposes, including the preparation of the annual budget; and |
• | to evaluate the effectiveness of business strategies. |
September 30, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 66,035 | $ | 77,130 | |||
Accounts receivable, net of allowance for doubtful accounts of $148 | 7,114 | 5,516 | |||||
Prepaid expenses and other current assets | 1,683 | 2,631 | |||||
Total current assets | 74,832 | 85,277 | |||||
Property and equipment, net | 24,532 | 21,070 | |||||
Restricted cash | 1,780 | 530 | |||||
Goodwill | 52,848 | 52,848 | |||||
Intangible assets, net | 13,262 | 17,108 | |||||
Other assets | 231 | 1,217 | |||||
Total assets | $ | 167,485 | $ | 178,050 | |||
Liabilities, Redeemable Securities and Stockholders’ Equity | |||||||
Liabilities | |||||||
Accounts payable | $ | 1,626 | $ | 1,522 | |||
Accrued expenses | 9,771 | 8,053 | |||||
Deferred revenue, short-term | 30,219 | 22,482 | |||||
Notes and leases payable, short-term | 645 | 842 | |||||
Total current liabilities | 42,261 | 32,899 | |||||
Deferred revenue, long-term | 3,428 | 3,349 | |||||
Notes and leases payable, long-term | 125 | 638 | |||||
Other long-term liabilities | 849 | 2,324 | |||||
Total liabilities | 46,663 | 39,210 | |||||
Redeemable non‑controlling interest | — | 355 | |||||
Stockholders’ equity | |||||||
Common stock, $.001 par value; 90,000 shares authorized; 26,105 and 25,247 shares issued and 25,447 and 24,785 shares outstanding at September 30, 2014 and December 31, 2013, respectively | 25 | 25 | |||||
Additional paid in capital | 336,306 | 329,073 | |||||
Treasury stock, at cost; 658 and 462 shares at September 30, 2014 and December 31, 2013, respectively | (9,899 | ) | (5,831 | ) | |||
Accumulated other comprehensive loss | (98 | ) | (49 | ) | |||
Accumulated deficit | (205,512 | ) | (184,733 | ) | |||
Total stockholders’ equity | 120,822 | 138,485 | |||||
Total liabilities, redeemable securities and stockholders’ equity | $ | 167,485 | $ | 178,050 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues | $ | 16,354 | $ | 10,853 | $ | 45,106 | $ | 28,763 | |||||||
Operating expenses | |||||||||||||||
Cost of services (exclusive of depreciation and amortization shown separately below) | 3,335 | 3,532 | 9,245 | 10,066 | |||||||||||
General and administrative | 6,232 | 6,405 | 18,760 | 19,774 | |||||||||||
Sales and marketing | 5,869 | 3,172 | 15,375 | 10,889 | |||||||||||
Technology and development | 6,366 | 4,445 | 16,541 | 15,153 | |||||||||||
Depreciation and amortization | 1,990 | 1,358 | 5,838 | 3,765 | |||||||||||
Total operating expenses | 23,792 | 18,912 | 65,759 | 59,647 | |||||||||||
Loss from operations | (7,438 | ) | (8,059 | ) | (20,653 | ) | (30,884 | ) | |||||||
Other expense, net | |||||||||||||||
Interest income and other expense, net | 6 | 18 | 51 | 27 | |||||||||||
Interest expense | (28 | ) | (212 | ) | (106 | ) | (2,614 | ) | |||||||
Change in fair value of conversion option liability | — | — | — | 151 | |||||||||||
Total other expense, net | (22 | ) | (194 | ) | (55 | ) | (2,436 | ) | |||||||
Loss before income taxes | (7,460 | ) | (8,253 | ) | (20,708 | ) | (33,320 | ) | |||||||
Income tax provision | 80 | 68 | 240 | 259 | |||||||||||
Net loss | $ | (7,540 | ) | $ | (8,321 | ) | $ | (20,948 | ) | $ | (33,579 | ) | |||
Less: Net loss attributable to non-controlling interest | — | (95 | ) | (169 | ) | (1,692 | ) | ||||||||
Net loss attributable to Textura Corporation | (7,540 | ) | (8,226 | ) | (20,779 | ) | (31,887 | ) | |||||||
Accretion of redeemable Series A-1 preferred stock | — | — | — | 3,384 | |||||||||||
Accretion of redeemable non‑controlling interest | — | 103 | 199 | 249 | |||||||||||
Dividends on Series A-2 preferred stock | — | — | — | 215 | |||||||||||
Beneficial conversion of Series A-2 preferred stock | — | — | — | 7,161 | |||||||||||
Net loss available to Textura Corporation common stockholders | $ | (7,540 | ) | $ | (8,329 | ) | $ | (20,978 | ) | $ | (42,896 | ) | |||
Net loss per share available to Textura Corporation common stockholders, basic and diluted | $ | (0.30 | ) | $ | (0.36 | ) | $ | (0.84 | ) | $ | (2.83 | ) | |||
Weighted average number of common shares outstanding, basic and diluted | 25,426 | 22,918 | 25,083 | 15,147 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (7,540 | ) | $ | (8,321 | ) | $ | (20,948 | ) | $ | (33,579 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 1,990 | 1,374 | 5,838 | 3,765 | |||||||||||
Deferred income taxes | 80 | 68 | 240 | 259 | |||||||||||
Non-cash interest expense | — | 11 | (1 | ) | 1,708 | ||||||||||
Change in fair value of conversion option liability | — | — | — | (152 | ) | ||||||||||
Share‑based compensation | 2,638 | 1,400 | 6,404 | 11,967 | |||||||||||
Issuance of warrants for referral fees | — | 202 | — | 202 | |||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||
Accounts receivable | 20 | (951 | ) | (1,598 | ) | (1,979 | ) | ||||||||
Prepaid expenses and other assets | 140 | (186 | ) | 245 | (607 | ) | |||||||||
Deferred revenue, including long-term portion | 2,499 | 3,126 | 7,816 | 7,260 | |||||||||||
Accounts payable | (222 | ) | (1,700 | ) | 360 | (1,759 | ) | ||||||||
Accrued expenses and other | 1,554 | 4,416 | 1,774 | 3,177 | |||||||||||
Net cash provided by (used in) operating activities | 1,159 | (561 | ) | 130 | (9,738 | ) | |||||||||
Cash flows from investing activities | |||||||||||||||
Decrease in restricted cash | (1,250 | ) | (300 | ) | (1,250 | ) | (530 | ) | |||||||
Purchases of property and equipment | (2,169 | ) | (1,029 | ) | (5,794 | ) | (1,767 | ) | |||||||
Acquisitions of businesses, net of cash acquired | — | — | — | (989 | ) | ||||||||||
Net cash used in investing activities | (3,419 | ) | (1,329 | ) | (7,044 | ) | (3,286 | ) | |||||||
Cash flows from financing activities | |||||||||||||||
Partner’s investment in joint venture | — | — | — | 199 | |||||||||||
Principal payments on loan payable | (6 | ) | (251 | ) | (105 | ) | (502 | ) | |||||||
Payments on capital leases | (211 | ) | (145 | ) | (608 | ) | (238 | ) | |||||||
Proceeds from debt issuances | — | — | — | 6,930 | |||||||||||
Repayment of debt | — | — | — | (7,964 | ) | ||||||||||
Proceeds from exercise of options and warrants | 661 | 1,815 | 2,213 | 2,226 | |||||||||||
Buyout of non-controlling interest | — | — | (1,563 | ) | — | ||||||||||
Deferred finance and offering costs | — | (5 | ) | — | (404 | ) | |||||||||
Proceeds from issuance of common stock in IPO, net of underwriting discounts and commissions | — | 59,575 | — | 139,252 | |||||||||||
Repurchase of common shares (treasury) | 28 | — | (4,068 | ) | (600 | ) | |||||||||
Net cash provided by (used in) financing activities | 472 | 60,989 | (4,131 | ) | 138,899 | ||||||||||
Effect of changes in foreign exchange rates on cash and cash equivalents | (55 | ) | 2 | (50 | ) | (37 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,843 | ) | 59,101 | (11,095 | ) | 125,838 | |||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of period | $ | 67,878 | $ | 68,627 | $ | 77,130 | $ | 1,890 | |||||||
End of period | $ | 66,035 | $ | 127,728 | $ | 66,035 | $ | 127,728 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Activity‑driven revenue | $ | 12,922 | $ | 8,361 | $ | 35,160 | $ | 22,148 | |||||||
Organization‑driven revenue | 3,432 | 2,492 | 9,946 | 6,615 | |||||||||||
Total revenue | $ | 16,354 | $ | 10,853 | $ | 45,106 | $ | 28,763 | |||||||
Activity‑driven revenue: | |||||||||||||||
Number of projects added | 1,792 | 1,511 | 5,233 | 4,223 | |||||||||||
Client‑reported construction value added (billions) | $ | 18.2 | $ | 23.7 | $ | 55.4 | $ | 47.9 | |||||||
Active projects during period | 8,030 | 6,225 | 11,874 | 9,418 | |||||||||||
Organization‑driven revenue: | |||||||||||||||
Number of organizations | 16,694 | 10,114 | 17,819 | 10,616 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Net loss | $ | (7,540 | ) | $ | (8,321 | ) | $ | (20,948 | ) | $ | (33,579 | ) | $ | (6,068 | ) | ||||
Net interest expense | 22 | 194 | 55 | 2,587 | 8 | ||||||||||||||
Income tax provision | 80 | 68 | 240 | 259 | 80 | ||||||||||||||
Depreciation and amortization | 1,990 | 1,358 | 5,838 | 3,765 | 1,962 | ||||||||||||||
EBITDA | (5,448 | ) | (6,701 | ) | (14,815 | ) | (26,968 | ) | (4,018 | ) | |||||||||
Share‑based compensation expense | 2,638 | 1,400 | 6,404 | 11,967 | 1,830 | ||||||||||||||
Severance expense | 1,488 | — | 1,488 | — | — | ||||||||||||||
Acquisition‑related and other expenses * | 370 | 758 | 444 | 1,016 | — | ||||||||||||||
Offering-related expenses ** | — | 93 | — | 3,104 | — | ||||||||||||||
Adjusted EBITDA | $ | (952 | ) | $ | (4,450 | ) | $ | (6,479 | ) | $ | (10,881 | ) | $ | (2,188 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||
Net loss available to Textura Corporation common shareholders | $ | (7,540 | ) | $ | (8,329 | ) | $ | (20,978 | ) | $ | (42,896 | ) | $ | (6,079 | ) | ||||
Accretion of redeemable Series A-1 preferred stock | — | — | — | 3,384 | — | ||||||||||||||
Accretion of redeemable non-controlling interest | — | 103 | 199 | 249 | 105 | ||||||||||||||
Dividends on Series A-2 preferred stock | — | — | — | 215 | — | ||||||||||||||
Beneficial conversion of Series A-2 preferred stock | — | — | — | 7,161 | — | ||||||||||||||
Net loss attributable to non-controlling interest | — | (95 | ) | (169 | ) | (1,692 | ) | (94 | ) | ||||||||||
Net loss | $ | (7,540 | ) | $ | (8,321 | ) | $ | (20,948 | ) | $ | (33,579 | ) | $ | (6,068 | ) | ||||
Share-based compensation expense | 2,638 | 1,400 | 6,404 | 11,967 | 1,830 | ||||||||||||||
Amortization of intangible assets | 1,282 | 840 | 3,846 | 2,405 | 1,282 | ||||||||||||||
Severance expense | 1,488 | — | 1,488 | — | — | ||||||||||||||
Acquisition-related and other expenses | 370 | 758 | 444 | 1,016 | — | ||||||||||||||
Offering-related expenses | — | 93 | — | 3,104 | — | ||||||||||||||
Adjusted net loss | $ | (1,762 | ) | $ | (5,230 | ) | $ | (8,766 | ) | $ | (15,087 | ) | $ | (2,956 | ) | ||||
Weighted-average common shares used in basic and diluted EPS | 25,426 | 22,918 | 25,083 | 15,147 | 25,001 | ||||||||||||||
Adjusted EPS | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.35 | ) | $ | (1.00 | ) | $ | (0.12 | ) | ||||
Net loss per share | $ | (0.30 | ) | $ | (0.36 | ) | $ | (0.84 | ) | $ | (2.83 | ) | $ | (0.24 | ) | ||||
Accretion of redeemable Series A-1 preferred stock | — | — | — | 0.22 | — | ||||||||||||||
Accretion of redeemable non-controlling interest | — | — | 0.01 | 0.02 | — | ||||||||||||||
Dividends on Series A-2 preferred stock | — | — | — | 0.01 | — | ||||||||||||||
Beneficial conversion of Series A-2 preferred stock | — | — | — | 0.47 | — | ||||||||||||||
Net loss attributable to non-controlling interest | — | — | (0.01 | ) | (0.11 | ) | — | ||||||||||||
Share-based compensation expense | 0.10 | 0.06 | 0.26 | 0.79 | 0.07 | ||||||||||||||
Amortization of intangible assets | 0.05 | 0.04 | 0.15 | 0.16 | 0.05 | ||||||||||||||
Severance expense | 0.06 | — | 0.06 | — | — | ||||||||||||||
Acquisition-related and other expenses * | 0.02 | 0.03 | 0.02 | 0.07 | — | ||||||||||||||
Offering-related expenses ** | — | — | — | 0.20 | — | ||||||||||||||
Adjusted EPS | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.35 | ) | $ | (1.00 | ) | $ | (0.12 | ) |
Three Months Ended September 30, 2014 | |||||||||||||||
GAAP Operating Expenses | Share Based Compensation and Amortization of Intangible Assets | Other Non-Recurring Expenses * | Adjusted Operating Expenses | ||||||||||||
(in thousands) | |||||||||||||||
Cost of services | $ | 3,335 | $ | 90 | $ | 344 | $ | 2,901 | |||||||
General and administrative | 6,232 | 1,049 | 120 | 5,063 | |||||||||||
Sales and marketing | 5,869 | 586 | 592 | 4,691 | |||||||||||
Technology and development | 6,366 | 913 | 802 | 4,651 | |||||||||||
Depreciation and amortization | 1,990 | 1,282 | — | 708 | |||||||||||
Total | $ | 23,792 | $ | 3,920 | $ | 1,858 | $ | 18,014 |
Three Months Ended September 30, 2013 | |||||||||||||||
GAAP Operating Expenses | Share Based Compensation and Amortization of Intangible Assets | Other Non-Recurring Expenses * | Adjusted Operating Expenses | ||||||||||||
(in thousands) | |||||||||||||||
Cost of services | $ | 3,532 | $ | 160 | $ | 550 | $ | 2,822 | |||||||
General and administrative | 6,405 | 922 | 301 | 5,182 | |||||||||||
Sales and marketing | 3,172 | 142 | — | 3,030 | |||||||||||
Technology and development | 4,445 | 176 | — | 4,269 | |||||||||||
Depreciation and amortization | 1,358 | 840 | — | 518 | |||||||||||
Total | $ | 18,912 | $ | 2,240 | $ | 851 | $ | 15,821 |
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Three Months Ended June 30, 2014 | |||||||||
(dollars in thousands) | |||||||||||
Revenue | $ | 16,354 | $ | 10,853 | $ | 14,965 | |||||
Cost of services | 3,335 | 3,532 | 3,028 | ||||||||
Gross profit | 13,019 | 7,321 | 11,937 | ||||||||
Gross margin | 80 | % | 67 | % | 80 | % | |||||
Adjustments: | |||||||||||
Share-based compensation expense as % of revenue | 1 | % | 2 | % | 1 | % | |||||
Other non-recurring expenses as % of revenue* | 1 | % | 5 | % | — | % | |||||
Adjusted Gross Margin | 82 | % | 74 | % | 81 | % |
Three Months Ended December 31, 2014 | Twelve Months Ended December 31, 2014 | ||||||||||||||
High End | Low End | High End | Low End | ||||||||||||
Net loss per share | $ | (0.14 | ) | $ | (0.16 | ) | $ | (0.98 | ) | $ | (1.00 | ) | |||
Accretion of redeemable non-controlling interest | — | — | 0.01 | 0.01 | |||||||||||
Share-based compensation expense | 0.08 | 0.08 | 0.33 | 0.33 | |||||||||||
Amortization of intangible assets | 0.04 | 0.04 | 0.19 | 0.19 | |||||||||||
Acquisition-related and other expenses* | — | — | 0.02 | 0.02 | |||||||||||
Severance expense | — | — | 0.06 | 0.06 | |||||||||||
Adjusted EPS | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.37 | ) | $ | (0.39 | ) |