COSTAR GROUP, INC. |
(Exact name of registrant as specified in its charter) |
Delaware | 0-24531 | 52-2091509 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1331 L Street, NW, Washington, DC | 20005 |
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
(Former name or former address, if changed since last report.) |
Exhibit No. | Description |
10.1 | Securities Purchase Agreement, dated as of September 11, 2017, among CoStar Realty Information, Inc., CoStar Group, Inc., LTM Company Dominion, LLC, Dominion Enterprises, and Landmark Media Enterprises, LLC (Incorporated by reference to Exhibit 10.1 to CoStar’s Current Report on Form 8-K, filed September 13, 2017). |
99.1 | CoStar Group, Inc. Press Release dated February 21, 2018 (filed herewith). |
COSTAR GROUP, INC. | |
By: | |
Date: February 21, 2018 | /s/ Scott T. Wheeler |
Name: Scott T. Wheeler | |
Title: Chief Financial Officer | |
Securities Purchase Agreement, dated as of September 11, 2017, among CoStar Realty Information, Inc., CoStar Group, Inc., LTM Company Dominion, LLC, Dominion Enterprises, and Landmark Media Enterprises, LLC (Incorporated by reference to Exhibit 10.1 to CoStar’s Current Report on Form 8-K, filed September 13, 2017). | |
CoStar Group, Inc. Press Release dated February 21, 2018 (filed herewith). |
Year 2016-2017 Quarterly Results - Unaudited | |||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||
Revenues | $ | 200 | $ | 207 | $ | 213 | $ | 218 | $ | 227 | $ | 237 | $ | 248 | $ | 254 | |||||||||
Net income | 17 | 16 | 23 | 30 | 22 | 22 | 34 | 44 | |||||||||||||||||
Net income per share - diluted | 0.52 | 0.48 | 0.72 | 0.91 | 0.68 | 0.68 | 1.04 | 1.22 | |||||||||||||||||
Weighted average outstanding shares - diluted | 32.4 | 32.4 | 32.4 | 32.5 | 32.6 | 32.7 | 32.8 | 36.1 | |||||||||||||||||
EBITDA | 48 | 46 | 58 | 64 | 55 | 44 | 73 | 66 | |||||||||||||||||
Adjusted EBITDA | 58 | 56 | 67 | 75 | 64 | 54 | 84 | 78 | |||||||||||||||||
Non-GAAP net income | 31 | 29 | 36 | 42 | 34 | 28 | 46 | 45 | |||||||||||||||||
Non-GAAP net income per share - diluted | 0.95 | 0.91 | 1.11 | 1.29 | 1.05 | 0.86 | 1.41 | 1.25 |
CoStar Group, Inc. | ||||||||||||||||||
Condensed Consolidated Statements of Operations - Unaudited | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Revenues | $ | 253,991 | $ | 218,311 | $ | 965,230 | $ | 837,630 | ||||||||||
Cost of revenues | 58,301 | 46,013 | 220,403 | 173,814 | ||||||||||||||
Gross profit | 195,690 | 172,298 | 744,827 | 663,816 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Selling and marketing (excluding customer base amortization) | 77,529 | 65,397 | 318,362 | 296,483 | ||||||||||||||
Software development | 21,796 | 19,861 | 88,850 | 76,400 | ||||||||||||||
General and administrative | 41,578 | 35,022 | 146,128 | 123,297 | ||||||||||||||
Customer base amortization | 4,029 | 5,129 | 17,671 | 22,731 | ||||||||||||||
144,932 | 125,409 | 571,011 | 518,911 | |||||||||||||||
Income from operations | 50,758 | 46,889 | 173,816 | 144,905 | ||||||||||||||
Interest and other income | 2,455 | 1,186 | 4,044 | 1,773 | ||||||||||||||
Interest and other expense | (734) | (2,554) | (9,014) | (10,016) | ||||||||||||||
Loss on debt extinguishment | (3,788) | — | (3,788) | — | ||||||||||||||
Income before income taxes | 48,691 | 45,521 | 165,058 | 136,662 | ||||||||||||||
Income tax expense | 4,487 | 15,948 | 42,363 | 51,591 | ||||||||||||||
Net income | $ | 44,204 | $ | 29,573 | $ | 122,695 | $ | 85,071 | ||||||||||
Net income per share - basic | $ | 1.24 | $ | 0.92 | $ | 3.70 | $ | 2.64 | ||||||||||
Net income per share - diluted | $ | 1.22 | $ | 0.91 | $ | 3.66 | $ | 2.62 | ||||||||||
Weighted average outstanding shares - basic | 35,675 | 32,213 | 33,200 | 32,167 | ||||||||||||||
Weighted average outstanding shares - diluted | 36,119 | 32,473 | 33,559 | 32,436 |
CoStar Group, Inc. | ||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures - Unaudited | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income | ||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Net income | $ | 44,204 | $ | 29,573 | $ | 122,695 | $ | 85,071 | ||||||||||||
Income tax expense | 4,487 | 15,948 | 42,363 | 51,591 | ||||||||||||||||
Income before income taxes | 48,691 | 45,521 | 165,058 | 136,662 | ||||||||||||||||
Amortization of acquired intangible assets | 8,660 | 10,829 | 37,391 | 45,550 | ||||||||||||||||
Stock-based compensation expense | 9,827 | 9,368 | 39,030 | 36,349 | ||||||||||||||||
Acquisition and integration related costs | 1,990 | — | 4,061 | 2,258 | ||||||||||||||||
Restructuring and related costs | — | 1,779 | — | 1,845 | ||||||||||||||||
Settlements and impairments | — | — | (760) | — | ||||||||||||||||
Loss on debt extinguishment | 3,788 | — | 3,788 | — | ||||||||||||||||
Non-GAAP income before income taxes | 72,956 | 67,497 | 248,568 | 222,664 | ||||||||||||||||
Assumed rate for income tax expense * | 38 | % | 38 | % | 38 | % | 38 | % | ||||||||||||
Assumed provision for income tax expense | (27,723) | (25,649) | (94,456) | (84,612) | ||||||||||||||||
Non-GAAP net income | $ | 45,233 | $ | 41,848 | $ | 154,112 | $ | 138,052 | ||||||||||||
Net income per share - diluted | $ | 1.22 | $ | 0.91 | $ | 3.66 | $ | 2.62 | ||||||||||||
Non-GAAP net income per share - diluted | $ | 1.25 | $ | 1.29 | $ | 4.59 | $ | 4.26 | ||||||||||||
Weighted average outstanding shares - basic | 35,675 | 32,213 | 33,200 | 32,167 | ||||||||||||||||
Weighted average outstanding shares - diluted | 36,119 | 32,473 | 33,559 | 32,436 | ||||||||||||||||
* A 38% tax rate is assumed, which approximates our statutory corporate tax rate. | ||||||||||||||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Net income | $ | 44,204 | $ | 29,573 | $ | 122,695 | $ | 85,071 | ||||||||||||
Amortization of acquired intangible assets in cost of revenues | 4,618 | 5,700 | 19,707 | 22,819 | ||||||||||||||||
Amortization of acquired intangible assets in operating expenses | 4,042 | 5,129 | 17,684 | 22,731 | ||||||||||||||||
Depreciation and other amortization | 6,706 | 6,295 | 26,252 | 24,615 | ||||||||||||||||
Interest and other income | (2,455) | (1,186) | (4,044) | (1,773) | ||||||||||||||||
Interest and other expense | 734 | 2,554 | 9,014 | 10,016 | ||||||||||||||||
Loss on debt extinguishment | 3,788 | — | 3,788 | — | ||||||||||||||||
Income tax expense | 4,487 | 15,948 | 42,363 | 51,591 | ||||||||||||||||
EBITDA | $ | 66,124 | $ | 64,013 | $ | 237,459 | $ | 215,070 | ||||||||||||
Stock-based compensation expense | 9,827 | 9,368 | 39,030 | 36,349 | ||||||||||||||||
Acquisition and integration related costs | 1,990 | — | 4,061 | 2,258 | ||||||||||||||||
Settlements and impairments | — | — | (760) | — | ||||||||||||||||
Restructuring and related costs | — | 1,779 | — | 1,845 | ||||||||||||||||
Adjusted EBITDA | $ | 77,941 | $ | 75,160 | $ | 279,790 | $ | 255,522 |
CoStar Group, Inc. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
December 31, 2017 | December 31, 2016 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 1,211,463 | $ | 567,223 | ||||||
Accounts receivable, net | 60,900 | 48,537 | ||||||||
Income tax receivable | — | 129 | ||||||||
Prepaid expenses and other current assets | 15,572 | 11,602 | ||||||||
Total current assets | 1,287,935 | 627,491 | ||||||||
Long-term investments | 10,070 | 9,952 | ||||||||
Deferred income taxes, net | 5,431 | 7,273 | ||||||||
Property and equipment, net | 84,496 | 87,568 | ||||||||
Goodwill | 1,283,457 | 1,254,866 | ||||||||
Intangible assets, net | 182,892 | 195,965 | ||||||||
Deposits and other assets | 6,179 | 1,948 | ||||||||
Income tax receivable | 12,981 | — | ||||||||
Total assets | $ | 2,873,441 | $ | 2,185,063 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 100,980 | $ | 83,916 | ||||||
Current portion of long-term debt | — | 31,866 | ||||||||
Deferred revenue | 45,686 | 39,164 | ||||||||
Total current liabilities | 146,666 | 154,946 | ||||||||
Long-term debt, less current portion | — | 306,473 | ||||||||
Deferred gain on sale of building | 16,192 | 18,715 | ||||||||
Deferred rent | 33,909 | 31,589 | ||||||||
Deferred income taxes, net | 12,070 | 18,386 | ||||||||
Income taxes payable | 13,354 | 741 | ||||||||
Stockholders' equity | 2,651,250 | 1,654,213 | ||||||||
Total liabilities and stockholders' equity | $ | 2,873,441 | $ | 2,185,063 |
CoStar Group, Inc. | |||||||||
Condensed Consolidated Statements of Cash Flows - Unaudited | |||||||||
(in thousands, unaudited) | |||||||||
Twelve Months Ended December 31, | |||||||||
2017 | 2016 | ||||||||
Operating activities: | |||||||||
Net income | $ | 122,695 | $ | 85,071 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 63,643 | 70,165 | |||||||
Amortization of debt issuance costs | 2,303 | 3,227 | |||||||
Debt extinguishment loss | 3,788 | — | |||||||
Impairment loss | — | 23 | |||||||
Realized gain on investments | — | (808) | |||||||
Property and equipment write-off | 129 | 839 | |||||||
Stock-based compensation expense | 39,030 | 36,349 | |||||||
Deferred income tax (benefit) expense, net | (2,903) | 15,635 | |||||||
Bad debt expense | 5,690 | 7,358 | |||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||
Accounts receivable | (17,524) | (16,044) | |||||||
Prepaid expenses and other current assets | (3,672) | (1,157) | |||||||
Income tax receivable | (12,981) | — | |||||||
Accounts payable and other liabilities | 11,525 | (1,520) | |||||||
Income taxes payable | 16,937 | 2,816 | |||||||
Deferred revenue | 6,004 | (2,070) | |||||||
Deposits and other assets | 39 | 758 | |||||||
Net cash provided by operating activities | 234,703 | 200,642 | |||||||
Investing activities: | |||||||||
Proceeds from sale and settlement of investments | — | 5,950 | |||||||
Purchases of property and equipment and other assets | (24,499) | (18,766) | |||||||
Acquisitions, net of cash acquired | (47,768) | (10,443) | |||||||
Net cash used in investing activities | (72,267) | (23,259) | |||||||
Financing activities: | |||||||||
Payments of long-term debt | (345,000) | (20,000) | |||||||
Payments of debt issuance costs | (3,467) | — | |||||||
Repurchase of restricted stock to satisfy tax withholding obligations | (14,902) | (16,424) | |||||||
Proceeds from equity offering, net of transaction costs | 833,911 | — | |||||||
Proceeds from exercise of stock options and employee stock purchase plan | 9,888 | 5,861 | |||||||
Net cash provided by (used) in financing activities | 480,430 | (30,563) | |||||||
Effect of foreign currency exchange rates on cash and cash equivalents | 1,374 | (1,415) | |||||||
Net increase in cash and cash equivalents | 644,240 | 145,405 | |||||||
Cash and cash equivalents at the beginning of period | 567,223 | 421,818 | |||||||
Cash and cash equivalents at the end of period | $ | 1,211,463 | $ | 567,223 |
CoStar Group, Inc. | |||||||||||||||
Results of Segments - Unaudited | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
North America | $ | 245,760 | $ | 210,735 | $ | 934,464 | $ | 809,492 | |||||||
International | |||||||||||||||
External customers | 8,231 | 7,576 | 30,766 | 28,138 | |||||||||||
Intersegment revenues * | 15 | 16 | 42 | 40 | |||||||||||
Total International revenues | 8,246 | 7,592 | 30,808 | 28,178 | |||||||||||
Intersegment eliminations | (15) | (16) | (42) | (40) | |||||||||||
Total revenues | $ | 253,991 | $ | 218,311 | $ | 965,230 | $ | 837,630 | |||||||
EBITDA | |||||||||||||||
North America | $ | 66,842 | $ | 62,605 | $ | 236,906 | $ | 210,901 | |||||||
International | (718) | 1,408 | 553 | 4,169 | |||||||||||
Total EBITDA | $ | 66,124 | $ | 64,013 | $ | 237,459 | $ | 215,070 | |||||||
* Intersegment revenues recorded were attributable to services performed for the Company's wholly owned subsidiary, CoStar Portfolio Strategy by Grecam S.A.S. (“Grecam”), a wholly owned subsidiary of CoStar Limited, the Company’s wholly owned U.K. holding company. Intersegment revenues are recorded at an amount the Company believes approximates fair value. North America EBITDA includes a corresponding cost for the services performed by Grecam for CoStar Portfolio Strategy. |
CoStar Group, Inc. | ||||||||||||||||
Revenues by Services - Unaudited | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Information and analytics | ||||||||||||||||
CoStar Suite | $ | 122,098 | $ | 106,487 | $ | 463,185 | $ | 408,456 | ||||||||
Information services | 17,254 | 18,842 | 72,618 | 77,178 | ||||||||||||
Online marketplaces | ||||||||||||||||
Multifamily | 75,531 | 60,083 | 279,855 | 224,835 | ||||||||||||
Commercial property and land | 39,108 | 32,899 | 149,572 | 127,161 | ||||||||||||
Total revenues | $ | 253,991 | $ | 218,311 | $ | 965,230 | $ | 837,630 |
CoStar Group, Inc. Reconciliation of Non-GAAP Financial Measures with 2016-2017 Quarterly Results - Unaudited | ||||||||||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||||||||||
Reconciliation of Net Income to Non-GAAP Net Income | ||||||||||||||||||||||||||||||||||
2016 | 2017 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||
Net income | $ | 16.7 | $ | 15.6 | $ | 23.2 | $ | 29.6 | $ | 22.1 | $ | 22.2 | $ | 34.2 | $ | 44.2 | ||||||||||||||||||
Income tax expense | 11.2 | 10.2 | 14.2 | 16.0 | 13.3 | 3.6 | 21.0 | 4.5 | ||||||||||||||||||||||||||
Income before income taxes | 27.9 | 25.8 | 37.4 | 45.5 | 35.4 | 25.8 | 55.2 | 48.7 | ||||||||||||||||||||||||||
Amortization of acquired intangible assets | 11.9 | 11.5 | 11.3 | 10.8 | 10.9 | 9.3 | 8.5 | 8.7 | ||||||||||||||||||||||||||
Stock-based compensation expense | 8.3 | 9.3 | 9.3 | 9.4 | 9.4 | 10.1 | 9.7 | 9.8 | ||||||||||||||||||||||||||
Acquisition and integration related costs | 1.5 | 0.8 | — | — | 0.4 | 0.4 | 1.2 | 2.0 | ||||||||||||||||||||||||||
Restructuring and related costs | — | — | 0.1 | 1.8 | — | — | — | — | ||||||||||||||||||||||||||
Settlements and impairments | — | — | — | — | (0.8) | — | — | — | ||||||||||||||||||||||||||
Loss on debt extinguishment | — | — | — | — | — | — | — | 3.8 | ||||||||||||||||||||||||||
Non-GAAP income before income taxes | 49.6 | 47.5 | 58.1 | 67.5 | 55.3 | 45.6 | 74.6 | 73.0 | ||||||||||||||||||||||||||
Assumed rate for income tax expense * | 38 | % | 38 | % | 38 | % | 38 | % | 38 | % | 38 | % | 38 | % | 38 | % | ||||||||||||||||||
Assumed provision for income tax expense | (18.9) | (18.0) | (22.1) | (25.6) | (21.0) | (17.3) | (28.4) | (27.7) | ||||||||||||||||||||||||||
Non-GAAP net income | $ | 30.7 | $ | 29.4 | $ | 36.0 | $ | 41.8 | $ | 34.3 | $ | 28.3 | $ | 46.3 | $ | 45.2 | ||||||||||||||||||
Non-GAAP net income per share - diluted | $ | 0.95 | $ | 0.91 | $ | 1.11 | $ | 1.29 | $ | 1.05 | $ | 0.86 | $ | 1.41 | $ | 1.25 | ||||||||||||||||||
Weighted average outstanding shares - basic | 32.1 | 32.2 | 32.2 | 32.2 | 32.3 | 32.4 | 32.4 | 35.7 | ||||||||||||||||||||||||||
Weighted average outstanding shares - diluted | 32.4 | 32.4 | 32.4 | 32.5 | 32.6 | 32.7 | 32.8 | 36.1 | ||||||||||||||||||||||||||
* A 38% tax rate is assumed, which approximates our statutory corporate tax rate. | ||||||||||||||||||||||||||||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||||||||||||
2016 | 2017 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||
Net income | $ | 16.7 | $ | 15.6 | $ | 23.2 | $ | 29.6 | $ | 22.1 | $ | 22.2 | $ | 34.2 | $ | 44.2 | ||||||||||||||||||
Amortization of acquired intangible assets | 11.9 | 11.5 | 11.3 | 10.8 | 10.9 | 9.3 | 8.5 | 8.7 | ||||||||||||||||||||||||||
Depreciation and other amortization | 5.6 | 5.9 | 6.8 | 6.3 | 6.4 | 6.5 | 6.6 | 6.7 | ||||||||||||||||||||||||||
Interest and other income | (0.1) | (0.2) | (0.3) | (1.2) | (0.4) | (0.6) | (0.6) | (2.5) | ||||||||||||||||||||||||||
Interest and other expense | 2.5 | 2.5 | 2.5 | 2.6 | 2.7 | 2.7 | 2.9 | 0.7 | ||||||||||||||||||||||||||
Loss on debt extinguishment | — | — | — | — | — | — | — | 3.8 | ||||||||||||||||||||||||||
Income tax expense | 11.2 | 10.2 | 14.2 | 15.9 | 13.3 | 3.6 | 21.0 | 4.5 | ||||||||||||||||||||||||||
EBITDA | $ | 47.8 | $ | 45.6 | $ | 57.7 | $ | 64.0 | $ | 55.0 | $ | 43.7 | $ | 72.6 | $ | 66.0 | ||||||||||||||||||
Stock-based compensation expense | 8.3 | 9.3 | 9.3 | 9.4 | 9.4 | 10.1 | 9.7 | 9.8 | ||||||||||||||||||||||||||
Acquisition and integration related costs | 1.5 | 0.8 | — | — | 0.4 | 0.4 | 1.2 | 2.0 | ||||||||||||||||||||||||||
Restructuring and related costs | — | — | 0.1 | 1.8 | — | — | — | — | ||||||||||||||||||||||||||
Settlements and impairments | — | — | — | — | (0.8) | — | — | — | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 57.6 | $ | 55.7 | $ | 67.1 | $ | 75.2 | $ | 63.9 | $ | 54.3 | $ | 83.6 | $ | 77.9 |
CoStar Group, Inc. | |||||||||||||||||
Reconciliation of Forward-Looking Guidance - Unaudited | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income | |||||||||||||||||
Guidance Range | Guidance Range | ||||||||||||||||
For the Three Months | For the Twelve Months | ||||||||||||||||
Ended March 31, 2018 | Ended December 31, 2018 | ||||||||||||||||
Low | High | Low | High | ||||||||||||||
Net income | $ | 28,000 | $ | 32,000 | $ | 166,000 | $ | 178,000 | |||||||||
Income tax expense | 9,000 | 11,000 | 56,000 | 60,000 | |||||||||||||
Income before income taxes | 37,000 | 43,000 | 222,000 | 238,000 | |||||||||||||
Amortization of acquired intangible assets | 11,000 | 11,000 | 53,000 | 53,000 | |||||||||||||
Stock-based compensation expense | 11,000 | 10,000 | 45,000 | 42,000 | |||||||||||||
Acquisition and integration related costs | 5,000 | 4,000 | 20,000 | 17,000 | |||||||||||||
Restructuring and related costs | — | — | 1,000 | 1,000 | |||||||||||||
Non-GAAP income before income taxes | 64,000 | 68,000 | 341,000 | 351,000 | |||||||||||||
Assumed rate for income tax expense * | 25 | % | 25 | % | 25 | % | 25 | % | |||||||||
Assumed provision for income tax expense | (16,000) | (17,000) | (85,300) | (87,800) | |||||||||||||
Non-GAAP net income | $ | 48,000 | $ | 51,000 | $ | 255,700 | $ | 263,200 | |||||||||
Net income per share - diluted | $ | 0.77 | $ | 0.88 | $ | 4.55 | $ | 4.88 | |||||||||
Non-GAAP net income per share - diluted | $ | 1.32 | $ | 1.40 | $ | 7.01 | $ | 7.21 | |||||||||
Weighted average outstanding shares - diluted | 36,300 | 36,300 | 36,500 | 36,500 | |||||||||||||
* A 25% tax rate is assumed, which approximates our statutory corporate tax rate. | |||||||||||||||||
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA | |||||||||||||||||
Guidance Range | Guidance Range | ||||||||||||||||
For the Three Months | For the Twelve Months | ||||||||||||||||
Ended March 31, 2018 | Ended December 31, 2018 | ||||||||||||||||
Low | High | Low | High | ||||||||||||||
Net income | $ | 28,000 | $ | 32,000 | $ | 166,000 | $ | 178,000 | |||||||||
Amortization of acquired intangible assets | 11,000 | 11,000 | 53,000 | 53,000 | |||||||||||||
Depreciation and other amortization | 7,000 | 7,000 | 26,000 | 26,000 | |||||||||||||
Interest and other expense, net | (1,000) | (1,000) | (2,000) | (2,000) | |||||||||||||
Income tax expense | 9,000 | 11,000 | 56,000 | 60,000 | |||||||||||||
Stock-based compensation expense | 11,000 | 10,000 | 45,000 | 42,000 | |||||||||||||
Acquisition and integration related costs | 5,000 | 4,000 | 20,000 | 17,000 | |||||||||||||
Restructuring and related costs | — | — | 1,000 | 1,000 | |||||||||||||
Adjusted EBITDA | $ | 70,000 | $ | 74,000 | $ | 365,000 | $ | 375,000 |
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