WOBURN, Mass.--(BUSINESS WIRE)--Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leader in helping to empower expression and engagement through type, technology and expertise, today announced financial results for the fourth quarter and full year ended December 31, 2016.
Fourth quarter 2016 highlights
- Revenue for the quarter was $52.6 million, an increase of 4%, year over year. Pro Forma non-GAAP revenue for the quarter was $55.1 million.
- Creative Professional revenue was $27.2 million, up 11%, year over year.
- Net income was $0.5 million. Non-GAAP net adjusted EBITDA was $10.6 million, or 20% of revenue. Pro Forma non-GAAP net adjusted EBITDA was $13.1 million, or 24% of Pro Forma non-GAAP revenue. Both non-GAAP and Pro Forma non-GAAP net adjusted EBITDA include $2.2 million of non-recurring costs, primarily related to restructuring activities.
Full year 2016 highlights
- Revenue for the year was $203.4 million, an increase of 6%, year over year. Pro Forma non-GAAP revenue for the year was $215.9 million.
- Creative Professional revenue was $102.4 million, up 16%, year over year.
- Net income was $14.9 million. Non-GAAP net adjusted EBITDA was $59.8 million, or 29% of revenue. Pro Forma non-GAAP net adjusted EBITDA was $52.7 million, or 24% of Pro Forma non-GAAP revenue.
- Cash and cash equivalents were $91.4 million at December 31, 2016.
“Continued strong performance in our Creative Professional business helped push full year results over the $200 million mark for the first time in our history,” said Scott Landers, president and chief executive officer of Monotype. “2016 was a transformational year for Monotype, where we saw the emergence of new digital use cases, such as HTML5-based digital advertising, as well as significantly expanded opportunities in new markets with the acquisition of Olapic. We believe there is a substantial opportunity ahead for Monotype to provide comprehensive value to brands, and we are well positioned to take advantage of it.”
Tony Callini, chief financial officer of Monotype, said, “I’m pleased to join Monotype during such an exciting period in the company’s history. Our recent acquisitions and execution on expanded growing product offerings helped fuel double-digit year-over-year growth in Creative Professional for the 14th quarter in a row. And even as we invest for long-term growth, we’re keenly focused on execution and profitability. Further, during this investment cycle, we are still committed to returning value to our shareholders as evidenced by the fifth annual increase to our dividend.”
Fourth quarter 2016 operating results
Revenue for the
quarter increased 4% to $52.6 million, compared to $50.6 million for the
fourth quarter of 2015. Fourth quarter revenue was reduced by a $2.5
million purchase accounting adjustment related to Olapic deferred
revenue. Creative Professional revenue was $27.2 million, a 11% increase
from the fourth quarter of 2015. OEM revenue was $25.4 million, a
decrease of 3% from the same period in 2015.
Net income was $0.5 million, compared to $4.9 million in the fourth quarter of 2015. Earnings per diluted share were $0.01, compared to $0.12 in the prior year quarter. The company’s effective tax rate in the quarter of 59% was impacted by $1.6 million of acquisition-related compensation expense, which is not deductible for income tax purposes.
Non-GAAP net income, which excludes the amortization of intangible assets, stock-based compensation expense and acquisition-related compensation expense, net of taxes, was $4.8 million, compared to $12.0 million in the fourth quarter of 2015. Non-GAAP earnings per diluted share were $0.12 compared to $0.30 in the prior year period.
Non-GAAP net adjusted EBITDA was $10.6 million, or 20% of revenue, compared to $20.7 million in the fourth quarter of 2015. Non-GAAP net adjusted EBITDA includes $2.2 million of non-recurring costs, primarily related to restructuring activities.
Full year 2016 operating results
Revenue for the year was
$203.4 million, an increase of 6% compared to $192.4 million for 2015.
2016 GAAP revenue was reduced by a $3.2 million purchase accounting
adjustment related to Olapic deferred revenue. Creative Professional
revenue was $102.4 million, an increase of 16% year over year. OEM
revenue was $101.0 million, down 3% year over year.
Net income for 2016 was $14.9 million, compared to net income of $26.2 million for the prior year. Earnings per diluted share were $0.36, compared to earnings per diluted share of $0.65 in 2015. The company’s 2016 effective tax rate of 41% was impacted by $3.9 million of acquisition-related compensation expense, which is not deductible for income tax purposes.
Non-GAAP net income, which excludes the amortization of intangible assets, stock-based compensation expense, and acquisition-related compensation expense, net of taxes, was $33.7 million, compared to $44.1 million in 2015. Non-GAAP earnings per diluted share were $0.85, compared to $1.12 in 2015.
Non-GAAP net adjusted EBITDA was $59.8 million, or 29% of revenue, compared to non-GAAP net adjusted EBITDA of $71.0 million in 2015. Included in non-GAAP net adjusted EBITDA are the aforementioned $2.2 million of non-recurring costs.
A reconciliation of GAAP measures to non-GAAP measures for the three and 12 months ended December 31, 2016 and 2015 is provided in the financial tables that accompany this release.
Pro Forma operating results
Pro Forma results assume the
company had owned Olapic for the full periods presented, and exclude the
impact of purchase accounting related adjustments, as well as
transaction costs.
Pro Forma non-GAAP revenue in the fourth quarter was $55.1 million and Pro Forma non-GAAP net adjusted EBITDA was $13.1 million. Pro Forma non-GAAP net adjusted EBITDA includes $2.2 million of non-recurring costs, primarily related to restructuring activities.
Pro Forma non-GAAP revenue for the full year was $215.9 million and Pro Forma non-GAAP net adjusted EBITDA was $52.7 million, which again includes $2.2 million of non-recurring costs.
Cash and cash flow
Monotype had cash and cash equivalents of
$91.4 million as of December 31, 2016, compared to $97.6 million as of
September 30, 2016 and $87.5 million as of December 31, 2015. The
company generated $8.8 million of cash from operations in the fourth
quarter of 2016 and $40.7 million for the full year 2016. During the
fourth quarter of 2016, the company repaid $5.0 million on its
outstanding revolving line of credit.
In the fourth quarter and the full year, Monotype repurchased 287,250 shares of common stock on the open market at prevailing market prices for a total consideration of $5.6 million as part of the stock repurchase program announced in August 2016.
Quarterly dividend
Monotype’s most recent dividend payment
of $0.11 per share was paid on January 20, 2017, to shareholders of
record as of January 2, 2017. The Board has approved a 3% increase to
the company’s quarterly dividend payment. As a result, a dividend of
$0.113 cents per share will be paid on April 21, 2017, to shareholders
of record as of the close of business on April 3, 2017. The total
dividend payments for 2016 were $17.5 million.
Financial outlook
Monotype’s first quarter and full year
financial guidance are set forth in the following tables:
| (in $ millions) | Q1 2017 | Full Year 2017 | ||||||||
| Revenue | $51.5-$55.5 | $229.0-$237.0 | ||||||||
| Non-GAAP net adjusted EBITDA |
$8.5-$11.5 |
$47.5-$54.1 |
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Operating expenses |
$41.5-$44.5 | $178.0-$182.0 | ||||||||
| GAAP earnings per diluted share |
$(0.03)-$0.01 |
$0.04-$0.12 |
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| Non-GAAP earnings per diluted share |
$0.09-$0.13 |
$0.54-$0.62 |
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| Q1 2017 | Full Year 2017 | |||||
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Pro Forma revenue |
$52.9-$56.9 | $232.3-$240.3 | ||||
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Pro Forma non-GAAP net adjusted EBITDA |
$9.9-$12.9 |
$50.8-$57.4 |
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Conference call details
Monotype will host a conference call
on Friday, Feb. 17, 2016, at 8:30 a.m. EST to discuss the company’s
fourth quarter and full year 2016 results and business outlook for 2017.
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 844-229-7594 (domestic) or
314-888-4259 (international) using passcode 66064087. 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 press release may contain
forward-looking statements including those related to future revenues
and operating results, the financial impact of the Olapic acquisition,
the growth of the company’s Creative Professional business and OEM
business, the execution of the company’s product, growth and expansion
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 its 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 company’s integration of
the Olapic acquisition; risks associated with the company’s ability to
expand products and services offered through acquired companies; 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, 2015 and subsequent filings. The forward-looking financial
information set forth in this press 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 is a leader in empowering expression
and engagement through a combination of type, technology and expertise.
Headquartered in Woburn, Mass., Monotype provides customers worldwide
with typeface solutions for a broad range of creative applications and
consumer devices. The company’s libraries and e-commerce sites are home
to many of the most widely used typefaces – including the Helvetica®,
Frutiger®
and Univers®
families – as well as the next generation of type designs. Further
information is available at www.monotype.com.
Follow Monotype on Twitter,
Instagram
and LinkedIn.
Monotype, Helvetica and Frutiger are trademarks of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. Univers is a trademark of Monotype GmbH registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. All other trademarks are the property of their respective owners. ©2017 Monotype Imaging Holdings Inc. All rights reserved.
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MONOTYPE IMAGING HOLDINGS INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited and in thousands) |
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December 31, 2016 |
December 31, 2015 |
|||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 91,434 | $ | 87,520 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 26,549 | 15,179 | ||||||||
| Income tax refunds receivable | 2,967 | 2,558 | ||||||||
| Prepaid expense and other current assets | 4,631 | 3,846 | ||||||||
| Total current assets | 125,581 | 109,103 | ||||||||
| Property and equipment, net | 14,166 | 15,204 | ||||||||
| Goodwill | 273,489 | 185,735 | ||||||||
| Intangible assets, net | 90,717 | 69,264 | ||||||||
| Restricted cash | 17,992 | 9,304 | ||||||||
| Other assets | 3,075 | 3,177 | ||||||||
| Total assets | $ | 525,020 | $ | 391,787 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 2,170 | $ | 1,385 | ||||||
| Accrued expenses and other current liabilities | 28,762 | 21,422 | ||||||||
| Accrued income taxes payable | 1,473 | 2,395 | ||||||||
| Deferred revenue | 16,081 | 10,086 | ||||||||
| Total current liabilities | 48,486 | 35,288 | ||||||||
| Revolving line of credit | 105,000 | — | ||||||||
| Other long-term liabilities | 11,752 | 6,914 | ||||||||
| Deferred income taxes | 37,780 | 35,159 | ||||||||
| Reserve for income taxes, net of current portion | 2,727 | 2,316 | ||||||||
| Accrued pension benefits | 5,297 | 4,928 | ||||||||
| Stockholders’ equity: | ||||||||||
| Common stock | 43 | 42 | ||||||||
| Additional paid-in capital | 274,946 | 256,215 | ||||||||
| Treasury stock, at cost | (56,232 | ) | (50,455 | ) | ||||||
| Retained earnings | 105,718 | 108,908 | ||||||||
| Accumulated other comprehensive loss | (10,497 | ) | (7,528 | ) | ||||||
| Total stockholders’ equity | 313,978 | 307,182 | ||||||||
| Total liabilities and stockholders’ equity | $ | 525,020 | $ | 391,787 | ||||||
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MONOTYPE IMAGING HOLDINGS INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited and in thousands, except share and per share data) |
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Three Months Ended December 31, |
Year Ended December 31, |
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2016 |
2015 | 2016 | 2015 | |||||||||||||||
| Revenue | $ | 52,637 | $ | 50,616 | $ | 203,441 | $ | 192,419 | ||||||||||
| Costs and expenses: | ||||||||||||||||||
| Cost of revenue | 8,463 | 7,967 | 32,904 | 30,281 | ||||||||||||||
| Cost of revenue—amortization of acquired technology | 1,083 | 1,133 | 4,672 | 4,448 | ||||||||||||||
| Total cost of revenue | 9,546 | 9,100 | 37,576 | 34,729 | ||||||||||||||
| Gross profit | 43,091 | 41,516 | 165,865 | 157,690 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Marketing and selling | 19,298 | 14,317 | 64,571 | 57,297 | ||||||||||||||
| Research and development | 7,807 | 5,233 | 28,915 | 21,477 | ||||||||||||||
| General and administrative | 13,755 | 11,263 | 42,595 | 33,343 | ||||||||||||||
| Amortization of other intangible assets | 975 | 775 | 3,393 | 3,129 | ||||||||||||||
| Total operating expenses | 41,835 | 31,588 | 139,474 | 115,246 | ||||||||||||||
| Income from operations | 1,256 | 9,928 | 26,391 | 42,444 | ||||||||||||||
| Other (income) expense: | ||||||||||||||||||
| Interest expense, net | 678 | 144 | 1,227 | 919 | ||||||||||||||
| Loss on extinguishment of debt | — | — | — | 112 | ||||||||||||||
| Other (income) expense, net | (514 | ) | 326 | (35 | ) | 938 | ||||||||||||
| Total other expense | 164 | 470 | 1,192 | 1,969 | ||||||||||||||
| Income before provision for income taxes | 1,092 | 9,458 | 25,199 | 40,475 | ||||||||||||||
| Provision for income taxes | 642 | 4,561 | 10,313 | 14,278 | ||||||||||||||
| Net income | $ | 450 | $ | 4,897 | $ | 14,886 | $ | 26,197 | ||||||||||
| Net income available to common shareholders—basic | $ | 455 | $ | 4,779 | $ | 14,395 | $ | 25,575 | ||||||||||
| Net income available to common shareholders—diluted | $ | 450 | $ | 4,780 | $ | 14,394 | $ | 25,579 | ||||||||||
| Net income per common share: | ||||||||||||||||||
| Basic | $ | 0.01 | $ | 0.12 | $ | 0.37 | $ | 0.66 | ||||||||||
| Diluted | $ | 0.01 | $ | 0.12 | $ | 0.36 | $ | 0.65 | ||||||||||
| Weighted average number of shares: | ||||||||||||||||||
| Basic | 39,576,243 | 38,934,008 | 39,405,700 | 38,840,094 | ||||||||||||||
| Diluted | 40,059,101 | 39,381,559 | 39,731,923 | 39,382,566 | ||||||||||||||
| Dividends declared per common share | $ | 0.11 | $ | 0.10 | $ | 0.44 | $ | 0.40 | ||||||||||
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MONOTYPE IMAGING HOLDINGS INC. |
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OTHER INFORMATION |
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(Unaudited and in thousands) |
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RECONCILIATION OF GAAP REVENUE TO PRO FORMA NON-GAAP REVENUE |
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Three Months Ended December 31, 2016 |
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| Monotype | Olapic | Combined | |||||||||||
| GAAP revenue | $ | 50,245 | $ | 2,392 | $ | 52,637 | |||||||
| Pre-acquisition revenue (1) | — | — | — | ||||||||||
| Deferred revenue impairment | — | 2,456 | 2,456 | ||||||||||
| Pro Forma non-GAAP revenue | $ | 50,245 | $ | 4,848 | $ | 55,093 | |||||||
(1) Pro Forma non-GAAP revenue has no pre-acquisition revenue adjustments in the three months ended December 31, 2016. We acquired Olapic on August 9, 2016.
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Year Ended |
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| Monotype | Olapic | Combined | ||||||||||||||||||||||
| GAAP revenue | $ | 199,086 | $ | 4,355 | $ | 203,441 | ||||||||||||||||||
| Pre-acquisition revenue(1) | — | 9,344 | 9,344 | |||||||||||||||||||||
| Deferred revenue impairment | — | 3,159 | 3,159 | |||||||||||||||||||||
| Pro Forma non-GAAP revenue | $ | 199,086 | $ | 16,858 | $ | 215,944 | ||||||||||||||||||
(1) Pro Forma non-GAAP revenue includes $0, $9.3 million and $9.3 million, respectively, of Olapic revenue recognized during the period of January 1, 2016 to August 8, 2016. We acquired Olapic on August 9, 2016.
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET ADJUSTED EBITDA |
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Three Months Ended December 31, |
Year Ended December 31, |
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2016(1) |
2015(2) |
2016(1) |
2015(2) |
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| GAAP net income | $ | 450 | $ | 4,897 | $ | 14,886 | $ | 26,197 | |||||||||||||
| Interest expense, net | 678 | 144 | 1,227 | 919 | |||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 112 | |||||||||||||||||
| Other (income) expense, net | (514 | ) | 326 | (35 | ) | 938 | |||||||||||||||
| Provision for income taxes | 642 | 4,561 | 10,313 | 14,278 | |||||||||||||||||
| Income from operations | 1,256 | 9,928 | 26,391 | 42,444 | |||||||||||||||||
| Depreciation and amortization | 3,165 | 2,913 | 12,279 | 10,819 | |||||||||||||||||
| Share based compensation | 4,566 | 3,742 | 17,271 | 13,583 | |||||||||||||||||
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Acquisition-related compensation |
1,636 | 4,164 | 3,869 | 4,164 | |||||||||||||||||
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Net adjusted EBITDA |
$ | 10,623 | $ | 20,747 | $ | 59,810 | $ | 71,010 | |||||||||||||
(1) For the three months and year ended December 31, 2016, the amount includes $0.7 million and $2.5 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement and $0.9 million and $1.4 million, respectively, of expense associated with the deferred compensation arrangements with the founders of Olapic in connection with the acquisition.
(2) For the three months and year ended December 31, 2015, the amount includes $4.2 million and $4.2 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement.
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MONOTYPE IMAGING HOLDINGS INC. |
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OTHER INFORMATION |
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(Unaudited and in thousands, except share and per share amounts) |
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME |
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Three Months Ended December 31, |
Year Ended December 31, |
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2016(1) |
2015(2) |
2016(1) |
2015(2) |
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| GAAP net income available to common stockholders ─ diluted | $ | 450 | $ | 4,897 | $ | 14,886 | $ | 26,197 | |||||||||||||
| Amortization, net of tax of $1,210, $920, $3,299 and $2,675, respectively | 848 | 988 | 4,766 | 4,902 | |||||||||||||||||
| Share based compensation, net of tax of $2,685, $1,804, $7,064 and $4,795, respectively | 1,881 | 1,938 | 10,207 | 8,788 | |||||||||||||||||
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Acquisition-related compensation, net of tax of $0, $0, $0 and $0, respectively |
1,636 | 4,164 | 3,869 | 4,164 | |||||||||||||||||
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Non-GAAP net income |
$ | 4,815 | $ | 11,987 | $ | 33,728 | $ | 44,051 | |||||||||||||
(1) For the three months and year ended December 31, 2016, the amount includes $0.7 million and $2.5 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement and $0.9 million and $1.4 million, respectively, of expense associated with the deferred compensation arrangements with the founders of Olapic in connection with the acquisition.
(2) For the three months and year ended December 31, 2015, the amount includes $4.2 million and $4.2 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement.
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RECONCILIATION OF GAAP EARNINGS PER DILUTED SHARE TO NON-GAAP EARNINGS PER DILUTED SHARE |
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Three Months Ended December 31, |
Year Ended December 31, |
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2016(1) |
2015 |
2016(1) |
2015 | ||||||||||||||||
| GAAP earnings per diluted share | $ | 0.01 | $ | 0.12 | $ | 0.36 | $ | 0.65 | |||||||||||
| Amortization, net of tax of $0.03, $0.02, $0.08 and $0.07, respectively | 0.02 | 0.02 | 0.12 | 0.13 | |||||||||||||||
| Share based compensation, net of tax of $0.07, $0.05, $0.18 and $0.12, respectively | 0.05 | 0.05 | 0.27 | 0.23 | |||||||||||||||
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Acquisition-related compensation, net of tax of $0.00, $0.00, $0.00 and $0.00, respectively |
0.04 | 0.11 | 0.10 | 0.11 | |||||||||||||||
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Non-GAAP earnings per diluted share |
$ | 0.12 | $ | 0.30 | $ | 0.85 | $ | 1.12 | |||||||||||
(1) For the three months and year ended December 31, 2016, the amount includes $0.7 million and $2.5 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement and $0.9 million and $1.4 million, respectively, of expense associated with the deferred compensation arrangements with the founders of Olapic in connection with the acquisition.
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MONOTYPE IMAGING HOLDINGS INC. |
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OTHER INFORMATION |
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(Unaudited and in thousands) |
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RECONCILIATION OF GAAP NET INCOME TO PRO FORMA NON-GAAP NET ADJUSTED EBITDA |
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Three Months Ended December 31, 2016 |
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| Monotype | Olapic | Combined | |||||||||||||||
| GAAP net income (loss) | $ 4,282 | $ (3,832 | ) | $ | 450 | ||||||||||||
| Interest expense, net | 678 | — | 678 | ||||||||||||||
| Other (income) expense, net | (1,262 | ) | 748 | (514 | ) | ||||||||||||
| Provision (benefit) for income taxes(1) | 4,846 | (4,204 | ) | 642 | |||||||||||||
| Income (loss) from operations(1) | 8,544 | (7,288 | ) | 1,256 | |||||||||||||
| Pre-acquisition net adjusted EBITDA(2) | — | — | — | ||||||||||||||
| Deferred revenue impairment(3) | — | 2,456 | 2,456 | ||||||||||||||
| Depreciation and amortization | 2,492 | 673 | 3,165 | ||||||||||||||
| Share based compensation | 3,593 | 973 | 4,566 | ||||||||||||||
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Acquisition-related compensation(4) |
761 | 875 | 1,636 | ||||||||||||||
| Transaction costs(5) | — | — | — | ||||||||||||||
| Pro Forma non-GAAP net adjusted EBITDA | $ 15,390 | $ (2,311 | ) | $ | 13,079 | ||||||||||||
(1) Olapic Pro Forma provision (benefit) for income taxes and income (loss) from operations includes unaudited estimated pre-acquisition tax impact.
(2) Pro Forma non-GAAP net adjusted EBITDA has no pre-acquisition non-GAAP net adjusted EBITDA adjustments in the three months ended December 31, 2016. We acquired Olapic on August 9, 2016.
(3) Pro Forma non-GAAP net adjusted EBITDA includes $0, $2.5 million and $2.5 million, respectively, to add back the estimated purchase accounting adjustment for the impairment of deferred revenue.
(4) Acquisition-related compensation includes $0.7 million, $0.9 million and $1.6 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement and expense associated with the deferred compensation arrangements with the founders of Olapic in connection with the acquisition.
(5) In the three months ended December 31, 2016, the Company did not incur any transaction expenses for the Olapic acquisition. Consequently, there is no adjustment to Pro Forma non-GAAP net adjusted EBITDA for these type of costs.
|
RECONCILIATION OF GAAP NET INCOME TO PRO FORMA NON-GAAP NET ADJUSTED EBITDA |
||||||||||||||||
|
|
Year Ended
December 31, 2016 |
|||||||||||||||
| Monotype | Olapic | Combined | ||||||||||||||
| GAAP net income (loss) | $ | 23,293 | $ | (8,407 | ) | $ | 14,886 | |||||||||
| Interest expense, net | 1,227 | — | 1,227 | |||||||||||||
| Other (income) expense, net | (772 | ) | 737 | (35 | ) | |||||||||||
| Provision (benefit) for income taxes(1) | 14,458 | (4,145 | ) | 10,313 | ||||||||||||
| Income (loss) from operations(1) | 38,206 | (11,815 | ) | 26,391 | ||||||||||||
| Pre-acquisition net adjusted EBITDA(2) | — | (11,390 | ) | (11,390 | ) | |||||||||||
| Deferred revenue impairment(3) | — | 3,159 | 3,159 | |||||||||||||
| Depreciation and amortization | 11,168 | 1,111 | 12,279 | |||||||||||||
| Share based compensation | 15,689 | 1,582 | 17,271 | |||||||||||||
|
Acquisition-related compensation(4) |
2,495 | 1,374 | 3,869 | |||||||||||||
| Transaction costs(5) | 1,125 | — | 1,125 | |||||||||||||
| Pro Forma non-GAAP net adjusted EBITDA | $ | 68,683 | $ | (15,979 | ) | $ | 52,704 | |||||||||
(1) Olapic Pro Forma provision (benefit) for income taxes and income (loss) from operations includes unaudited estimated pre-acquisition tax impact.
(2) Pro Forma non-GAAP net adjusted EBITDA includes $0, ($11.4) million and ($11.4) million, respectively, of estimated Olapic non-GAAP net adjusted EBITDA recognized during the period of January 1, 2016 to August 8, 2016. We acquired Olapic on August 9, 2016.
(3) Pro Forma non-GAAP net adjusted EBITDA includes $0, $3.2 million and $3.2 million, respectively, to add back the estimated purchase accounting adjustment for the impairment of deferred revenue.
(4) Acquisition-related compensation includes $2.5 million, $1.4 million and $3.9 million, respectively, of expense associated with the deferred compensation arrangements resulting from an amendment to the Swyft Merger Agreement and expense associated with the deferred compensation arrangements with the founders of Olapic in connection with the acquisition.
(5) Pro Forma non-GAAP net adjusted EBITDA excludes $1.1 million, $0 and $1.1 million, respectively, of transaction expenses incurred with the Olapic acquisition.
|
MONOTYPE IMAGING HOLDINGS INC. |
|||||||||||||||||
|
OTHER INFORMATION |
|||||||||||||||||
|
(Unaudited and in thousands) |
|||||||||||||||||
|
OTHER INFORMATION |
|||||||||||||||||
|
Share based compensation is comprised of the following: |
|||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Marketing and selling | $ | 2,028 | $ | 1,744 | $ | 7,377 | $ | 6,312 | |||||||||
| Research and development | 1,218 | 639 | 4,087 | 2,458 | |||||||||||||
| General and administrative | 1,320 | 1,359 | 5,807 | 4,813 | |||||||||||||
| Total expensed | $ | 4,566 | $ | 3,742 | $ | 17,271 | $ | 13,583 | |||||||||
| Property and equipment | — | — | — | 82 | |||||||||||||
| Total share based compensation | $ | 4,566 | $ | 3,742 | $ | 17,271 | $ | 13,665 | |||||||||
|
MARKET INFORMATION |
|||||||||||||||||
|
The following table presents revenue for our two major markets: |
|||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Creative Professional | $ | 27,211 | $ | 24,420 | $ | 102,381 | $ | 88,074 | |||||||||
| OEM | 25,426 | 26,196 | 101,060 | 104,345 | |||||||||||||
| Total | $ | 52,637 | $ | 50,616 | $ | 203,441 | $ | 192,419 | |||||||||
|
MONOTYPE IMAGING HOLDINGS INC. |
|||||||||||||
|
RECONCILIATION OF FORECAST GAAP REVENUE TO |
|||||||||||||
|
FORECAST PRO FORMA NON-GAAP REVENUE |
|||||||||||||
|
(Unaudited and in thousands) |
|||||||||||||
| Low End of Guidance | |||||||||||||
| Q1 2017 | |||||||||||||
| Monotype | Olapic | Combined | |||||||||||
| GAAP revenue | $ | 48,000 | $ | 3,500 | $ | 51,500 | |||||||
| Deferred revenue impairment | - | 1,400 | 1,400 | ||||||||||
|
Pro Forma non-GAAP revenue |
$ | 48,000 | $ | 4,900 | $ | 52,900 | |||||||
| High End of Guidance | ||||||||||
| Q1 2017 | ||||||||||
| Monotype | Olapic | Combined | ||||||||
| GAAP revenue | $ 51,000 | $ 4,500 | $ 55,500 | |||||||
| Deferred revenue impairment | - | 1,400 | 1,400 | |||||||
|
Pro Forma non-GAAP revenue |
$ 51,000 | $ 5,900 | $ 56,900 | |||||||
| Low End of Guidance | |||||||||||||
| 2017 | |||||||||||||
| Monotype | Olapic | Combined | |||||||||||
| GAAP revenue | $ | 206,500 | $ | 22,500 | $ | 229,000 | |||||||
| Deferred revenue impairment | - | 3,300 | 3,300 | ||||||||||
|
Pro Forma non-GAAP revenue |
$ | 206,500 | $ | 25,800 | $ | 232,300 | |||||||
| High End of Guidance | |||||||||||||
| 2017 | |||||||||||||
| Monotype | Olapic | Combined | |||||||||||
| GAAP revenue | $ | 211,500 | $ | 25,500 | $ | 237,000 | |||||||
| Deferred revenue impairment | - | 3,300 | 3,300 | ||||||||||
|
Pro Forma non-GAAP revenue |
$ | 211,500 | $ | 28,800 | $ | 240,300 | |||||||
|
MONOTYPE IMAGING HOLDINGS INC. |
|||||||||||||||
|
RECONCILIATION OF FORECAST GAAP NET INCOME TO |
|||||||||||||||
|
FORECAST NON-GAAP NET ADJUSTED EBITDA |
|||||||||||||||
|
(Unaudited and in thousands) |
|||||||||||||||
| Low End of Guidance | |||||||||||||||
|
|
Q1 2017 | ||||||||||||||
| Monotype | Olapic | Combined | |||||||||||||
| GAAP net income (loss) | $ | 2,900 | $ | (4,000 | ) | $ | (1,100 | ) | |||||||
| Interest expense, net | 900 | - | 900 | ||||||||||||
| Other (income) expense, net | 300 | - | 300 | ||||||||||||
| Provision (benefit) for income taxes | 2,900 | (4,100 | ) | (1,200 | ) | ||||||||||
| Income (loss) from operations | 7,000 | (8,100 | ) | (1,100 | ) | ||||||||||
| Depreciation and amortization | 2,200 | 800 | 3,000 | ||||||||||||
| Share based compensation | 4,000 | 1,200 | 5,200 | ||||||||||||
|
Acquisition-related compensation(1) |
500 | 900 | 1,400 | ||||||||||||
| Non-GAAP net adjusted EBITDA | $ | 13,700 | $ | (5,200 | ) | $ | 8,500 | ||||||||
(1) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
| High End of Guidance | ||||||||||||||
|
|
Q1 2017 | |||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 3,900 | $ | (3,600 | ) | $ | 300 | |||||||
| Interest expense, net | 900 | - | 900 | |||||||||||
| Other (income) expense, net | 300 | - | 300 | |||||||||||
| Provision (benefit) for income taxes | 4,100 | (3,700 | ) | 400 | ||||||||||
| Income (loss) from operations | 9,200 | (7,300 | ) | 1,900 | ||||||||||
| Depreciation and amortization | 2,200 | 800 | 3,000 | |||||||||||
| Share based compensation | 4,000 | 1,200 | 5,200 | |||||||||||
|
Acquisition-related compensation(1) |
500 | 900 | 1,400 | |||||||||||
| Non-GAAP net adjusted EBITDA | $ | 15,900 | $ | (4,400 | ) | $ | 11,500 | |||||||
(1) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
|
MONOTYPE IMAGING HOLDINGS INC. |
||||||||||||||
|
RECONCILIATION OF FORECAST GAAP NET INCOME TO |
||||||||||||||
|
FORECAST NON-GAAP NET ADJUSTED EBITDA |
||||||||||||||
|
(Unaudited and in thousands) |
||||||||||||||
| Low End of Guidance | ||||||||||||||
|
|
2017 | |||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 16,700 | $ | (15,300 | ) | $ | 1,400 | |||||||
| Interest expense, net | 3,200 | - | 3,200 | |||||||||||
| Other (income) expense, net | 1,200 | - | 1,200 | |||||||||||
| Provision (benefit) for income taxes | 17,400 | (15,900 | ) | 1,500 | ||||||||||
| Income (loss) from operations | 38,500 | (31,200 | ) | 7,300 | ||||||||||
| Depreciation and amortization | 9,300 | 3,100 | 12,400 | |||||||||||
| Share based compensation | 17,100 | 5,100 | 22,200 | |||||||||||
|
Acquisition-related compensation(1) |
2,100 | 3,500 | 5,600 | |||||||||||
| Non-GAAP net adjusted EBITDA | $ | 67,000 | $ | (19,500 | ) | $ | 47,500 | |||||||
(1) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
|
|
High End of Guidance | |||||||||||||
|
|
2017 | |||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 18,800 | $ | (14,100 | ) | $ | 4,700 | |||||||
| Interest expense, net | 3,200 | - | 3,200 | |||||||||||
| Other (income) expense, net | 1,200 | - | 1,200 | |||||||||||
| Provision (benefit) for income taxes | 19,500 |
(14,700 |
) |
4,800 |
||||||||||
| Income (loss) from operations | 42,700 |
(28,800 |
) |
13,900 |
||||||||||
| Depreciation and amortization | 9,300 | 3,100 | 12,400 | |||||||||||
| Share based compensation | 17,100 | 5,100 | 22,200 | |||||||||||
|
Acquisition-related compensation(1) |
2,100 | 3,500 | 5,600 | |||||||||||
| Non-GAAP net adjusted EBITDA | $ | 71,200 | $ |
(17,100 |
) | $ |
54,100 |
|||||||
(1) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
|
MONOTYPE IMAGING HOLDINGS INC. |
|||||||||||||||
|
RECONCILIATION OF FORECAST GAAP NET INCOME TO |
|||||||||||||||
|
FORECAST PRO FORMA NON-GAAP NET ADJUSTED EBITDA |
|||||||||||||||
|
(Unaudited and in thousands) |
|||||||||||||||
| Low End of Guidance | |||||||||||||||
|
|
Q1 2017 | ||||||||||||||
| Monotype | Olapic | Combined | |||||||||||||
| GAAP net income (loss) | $ 2,900 | $ | (4,000 | ) | $ | (1,100 | ) | ||||||||
| Interest expense, net | 900 | - | 900 | ||||||||||||
| Other (income) expense, net | 300 | - | 300 | ||||||||||||
| Provision (benefit) for income taxes | 2,900 | (4,100 | ) | (1,200 | ) | ||||||||||
| Income (loss) from operations | 7,000 | (8,100 | ) | (1,100 | ) | ||||||||||
| Deferred revenue impairment(1) | - | 1,400 | 1,400 | ||||||||||||
| Depreciation and amortization | 2,200 | 800 | 3,000 | ||||||||||||
| Share based compensation | 4,000 | 1,200 | 5,200 | ||||||||||||
|
Acquisition-related compensation(2) |
500 | 900 | 1,400 | ||||||||||||
|
Pro Forma non-GAAP net adjusted EBITDA |
$ 13,700 | $ | (3,800 | ) | $ | 9,900 | |||||||||
(1) Pro Forma non-GAAP net adjusted EBITDA includes $0, $1.4 million and $1.4 million, respectively, to add back the estimated purchase accounting adjustment for the impairment of deferred revenue.
(2) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
| High End of Guidance | ||||||||||||||
|
|
Q1 2017 | |||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 3,900 | $ | (3,600 | ) | $ | 300 | |||||||
| Interest expense, net | 900 | - | 900 | |||||||||||
| Other (income) expense, net | 300 | - | 300 | |||||||||||
| Provision (benefit) for income taxes | 4,100 | (3,700 | ) | 400 | ||||||||||
| Income (loss) from operations | 9,200 | (7,300 | ) | 1,900 | ||||||||||
| Deferred revenue impairment(1) | - | 1,400 | 1,400 | |||||||||||
| Depreciation and amortization | 2,200 | 800 | 3,000 | |||||||||||
| Share based compensation | 4,000 | 1,200 | 5,200 | |||||||||||
|
Acquisition-related compensation(2) |
500 | 900 | 1,400 | |||||||||||
|
Pro Forma non-GAAP net adjusted EBITDA |
$ | 15,900 | $ | (3,000 | ) | $ | 12,900 | |||||||
(1) Pro Forma non-GAAP net adjusted EBITDA includes $0, $1.4 million and $1.4 million, respectively, to add back the estimated purchase accounting adjustment for the impairment of deferred revenue.
(2) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
|
MONOTYPE IMAGING HOLDINGS INC. |
||||||||||||||
|
RECONCILIATION OF FORECAST GAAP NET INCOME TO |
||||||||||||||
|
FORECAST PRO FORMA NON-GAAP NET ADJUSTED EBITDA |
||||||||||||||
|
(Unaudited and in thousands) |
||||||||||||||
| Low End of Guidance | ||||||||||||||
|
|
2017 | |||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 16,700 | $ | (15,300 | ) | $ | 1,400 | |||||||
| Interest expense, net | 3,200 | - | 3,200 | |||||||||||
| Other (income) expense, net | 1,200 | - | 1,200 | |||||||||||
| Provision (benefit) for income taxes | 17,400 | (15,900 | ) | 1,500 | ||||||||||
| Income (loss) from operations | 38,500 | (31,200 | ) | 7,300 | ||||||||||
|
Deferred revenue impairment(1) |
- | 3,300 | 3,300 | |||||||||||
| Depreciation and amortization | 9,300 | 3,100 | 12,400 | |||||||||||
| Share based compensation | 17,100 | 5,100 | 22,200 | |||||||||||
|
Acquisition-related compensation(2) |
2,100 | 3,500 | 5,600 | |||||||||||
|
Pro Forma non-GAAP net adjusted EBITDA |
$ | 67,000 | $ | (16,200 | ) | $ | 50,800 | |||||||
(1) Pro Forma non-GAAP net adjusted EBITDA includes $0, $3.3 million and $3.3 million, respectively, to add back the estimated purchase accounting adjustment for the impairment of deferred revenue.
(2) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
|
|
High End of Guidance | |||||||||||||
|
|
2017 | |||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 18,800 | $ | (14,100 | ) | $ | 4,700 | |||||||
| Interest expense, net | 3,200 | - | 3,200 | |||||||||||
| Other (income) expense, net | 1,200 | - | 1,200 | |||||||||||
| Provision (benefit) for income taxes | 19,500 |
(14,700 |
) |
4,800 |
||||||||||
| Income (loss) from operations | 42,700 |
(28,800 |
) |
13,900 |
||||||||||
|
Deferred revenue impairment(1) |
- | 3,300 | 3,300 | |||||||||||
| Depreciation and amortization | 9,300 | 3,100 | 12,400 | |||||||||||
| Share based compensation | 17,100 | 5,100 | 22,200 | |||||||||||
|
Acquisition-related compensation(2) |
2,100 | 3,500 | 5,600 | |||||||||||
|
Pro Forma non-GAAP net adjusted EBITDA |
$ | 71,200 | $ |
(13,800 |
) |
$ |
57,400 |
|||||||
(1) Pro Forma non-GAAP net adjusted EBITDA includes $0, $3.3 million and $3.3 million, respectively, to add back the estimated purchase accounting adjustment for the impairment of deferred revenue.
(2) Includes charges to operations for portions of merger consideration accounted for as compensation expense under GAAP.
|
MONOTYPE IMAGING HOLDINGS INC. |
|||||||||||||||
|
RECONCILIATION OF FORECAST GAAP EARNINGS PER DILUTED SHARE TO |
|||||||||||||||
|
FORECAST NON-GAAP EARNINGS PER DILUTED SHARE |
|||||||||||||||
|
(Unaudited and in thousands, except share and per share data) |
|||||||||||||||
| Low End of Guidance | |||||||||||||||
| Q1 2017 | |||||||||||||||
| Monotype | Olapic | Combined | |||||||||||||
| GAAP net income (loss) | $ | 2,900 | $ | (4,000 | ) | $ | (1,100 | ) | |||||||
| Amortization, net of tax of $700, $400 and $1,100, respectively | 600 | 300 | 900 | ||||||||||||
|
Share based compensation, net of tax of $2,100, $600 and $2,700, respectively |
1,900 |
600 |
2,500 |
||||||||||||
|
Acquisition-related compensation, net of tax of $0, $0 and $0, respectively(1) |
500 |
900 |
1,400 |
||||||||||||
| Non-GAAP net income (loss) | $ | 5,900 | $ | (2,200 | ) | $ | 3,700 | ||||||||
| GAAP earnings (loss) per diluted share | $ | 0.07 | $ | (0.10 | ) | $ | (0.03 | ) | |||||||
| Amortization, net of tax of $0.02, $0.01 and $0.03, respectively, per diluted share |
0.02 |
0.01 |
0.03 |
||||||||||||
|
Share based compensation, net of tax of $0.05, $0.02 and $0.07, respectively, per diluted share |
0.04 |
0.02 |
0.06 |
||||||||||||
|
Acquisition-related compensation, net of tax of $0.00, $0.00 and $0.00, respectively, per diluted share(1) |
0.02 |
0.01 |
0.03 |
||||||||||||
| Non-GAAP earnings (loss) per diluted share | $ | 0.15 | $ | (0.06 | ) | $ | 0.09 | ||||||||
| Weighted average diluted shares used to compute earnings per share | 39,700,000 | 39,700,000 | 39,700,000 | ||||||||||||
Assumes 51% effective tax rate.
(1) Includes charges to
operations for portions of merger consideration accounted for as
compensation expense under GAAP.
|
|
High End of Guidance | |||||||||||||
| Q1 2017 | ||||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 3,900 | $ | (3,600 | ) | $ | 300 | |||||||
| Amortization, net of tax of $700, $400 and $1,100, respectively | 600 | 300 | 900 | |||||||||||
|
Share based compensation, net of tax of $2,100, $600 and $2,700, respectively |
1,900 |
600 |
2,500 |
|||||||||||
|
Acquisition-related compensation, net of tax of $0, $0 and $0, respectively(1) |
500 |
900 |
1,400 |
|||||||||||
| Non-GAAP net income (loss) | $ | 6,900 | $ | (1,800 | ) | $ | 5,100 | |||||||
| GAAP earnings (loss) per diluted share | $ | 0.10 | $ | (0.09 | ) | $ | 0.01 | |||||||
| Amortization, net of tax of $0.02, $0.01 and $0.03, respectively, per diluted share |
0.02 |
0.01 |
0.03 |
|||||||||||
|
Share based compensation, net of tax of $0.05, $0.02 and $0.07, respectively, per diluted share |
0.04 |
0.02 |
0.06 |
|||||||||||
|
Acquisition-related compensation, net of tax of $0.00, $0.00 and $0.00, respectively, per diluted share(1) |
0.02 |
0.01 |
0.03 |
|||||||||||
| Non-GAAP earnings (loss) per diluted share | $ | 0.18 | $ | (0.05 | ) | 0.13 | ||||||||
| Weighted average diluted shares used to compute earnings per share | 39,700,000 | 39,700,000 | 39,700,000 | |||||||||||
Assumes 51% effective tax rate.
(1) Includes charges to
operations for portions of merger consideration accounted for as
compensation expense under GAAP.
|
MONOTYPE IMAGING HOLDINGS INC. |
||||||||||||||
|
RECONCILIATION OF FORECAST GAAP EARNINGS PER DILUTED SHARE TO |
||||||||||||||
|
FORECAST NON-GAAP EARNINGS PER DILUTED SHARE |
||||||||||||||
|
(Unaudited and in thousands, except share and per share data) |
||||||||||||||
| Low End of Guidance | ||||||||||||||
| 2017 | ||||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 16,700 | $ | (15,300 | ) | $ | 1,400 | |||||||
| Amortization, net of tax of $2,600, $1,400 and $3,000, respectively | 2,500 | 1,400 | 3,900 | |||||||||||
| Share based compensation, net of tax of $8,700, $2,600 and $11,300, respectively |
8,400 |
2,500 |
10,900 |
|||||||||||
|
Acquisition-related compensation, net of tax of $0, $0 and $0, respectively(1) |
2,100 |
3,500 |
5,600 |
|||||||||||
| Non-GAAP net income (loss) | $ | 29,700 | $ | (7,900 | ) | $ | 21,800 | |||||||
| GAAP earnings (loss) per diluted share | $ | 0.42 | $ | (0.38 | ) | $ | 0.04 | |||||||
| Amortization, net of tax of $0.06, $0.03 and $0.09, respectively, per diluted share |
0.06 |
0.03 |
0.09 |
|||||||||||
| Share based compensation, net of tax of $0.22, $0.06 and $0.28, respectively, per diluted share |
0.21 |
0.06 |
0.27 |
|||||||||||
|
Acquisition-related compensation, net of tax of $0.00, $0.00 and $0.00, respectively, per diluted share(1) |
0.05 |
0.09 |
0.14 |
|||||||||||
| Non-GAAP earnings (loss) per diluted share | $ | 0.74 | $ | (0.20 | ) | $ | 0.54 | |||||||
| Weighted average diluted shares used to compute earnings per share | 40,100,000 | 40,100,000 | 40,100,000 | |||||||||||
Assumes 51% effective tax rate.
(1) Includes charges to
operations for portions of merger consideration accounted for as
compensation expense under GAAP.
|
|
High End of Guidance | |||||||||||||
| 2017 | ||||||||||||||
| Monotype | Olapic | Combined | ||||||||||||
| GAAP net income (loss) | $ | 18,800 | $ | (14,100 | ) | $ | 4,700 | |||||||
| Amortization, net of tax of $2,600, $1,400 and $3,000, respectively | 2,500 | 1,400 | 3,900 | |||||||||||
| Share based compensation, net of tax of $8,700, $2,600 and $11,300, respectively |
8,400 |
2,500 |
10,900 |
|||||||||||
|
Acquisition-related compensation, net of tax of $0, $0 and $0, respectively (1) |
2,100 |
3,500 |
5,600 |
|||||||||||
|
Non-GAAP net income (loss) |
$ | 31,800 | $ | (6,700 | ) | $ | 25,100 | |||||||
| GAAP earnings (loss) per diluted share | $ | 0.47 | $ | (0.35 | ) | $ | 0.12 | |||||||
| Amortization, net of tax of $0.06, $0.03 and $0.09, respectively, per diluted share |
0.06 |
0.03 |
0.09 |
|||||||||||
| Share based compensation, net of tax of $0.22, $0.06 and $0.28, respectively, per diluted share |
0.21 |
0.06 |
0.27 |
|||||||||||
|
Acquisition-related compensation, net of tax of $0.00, $0.00 and $0.00, respectively, per diluted share (1) |
0.05 |
0.09 |
0.14 |
|||||||||||
| Non-GAAP earnings (loss) per diluted share | $ | 0.79 | $ | (0.17 | ) | $ | 0.62 | |||||||
| Weighted average diluted shares used to compute earnings per share | 40,100,000 | 40,100,000 | 40,100,000 | |||||||||||
Assumes 51% effective tax rate.
(1) Includes charges to
operations for portions of merger consideration accounted for as
compensation expense under GAAP.
