Delaware
|
000-26427
|
77-0454966
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
1990 E. Grand Avenue, El Segundo, CA
|
90245
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code: | (310) 482-5800 |
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Stamps.com Inc.
|
||
(Registrant)
|
||
February 29, 2016
|
/s/ Kenneth McBride
|
|
Date
|
(Signature)
|
|
Kenneth McBride,
|
||
Chief Executive Officer
|
Exhibit
Number
|
Description
|
Press Release of Stamps.com Inc. dated February 25, 2016 announcing Stamps.com Inc.'s financial results for its fourth quarter and fiscal year ended December 31, 2015.
|
Investor Contact:
|
Press Contact:
|
Jeff Carberry
|
Eric Nash
|
Stamps.com Investor Relations
|
Stamps.com Public Relations
|
(310) 482-5830
|
(310) 482-5942
|
invrel@stamps.com
|
enash@stamps.com
|
· | Total revenue was $69.9 million, up 67% compared to the fourth quarter of 2014. |
· | Adjusted EBITDA was $30.2 million, up 136% compared to the fourth quarter of 2014. |
· | Non-GAAP net income per fully-diluted share was $1.57, up 119% compared to the fourth quarter of 2014. |
Fourth Quarter Fiscal 2015
All amounts in millions except
per share or margin data:
|
Non-GAAP
Amounts
|
Stock-Based
Compensation
Expense
|
Intangible
Amortization
Expense
|
Non-Recurring
Expenses
|
Contingent
Consideration
Charge
|
Debt
Amortization
|
Income Tax
Benefit
(Expense)
|
GAAP
Amounts
|
||||||||||||||||||||||||
Cost of Revenues
|
$
|
12.78
|
$
|
0.41
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
13.18
|
||||||||||||||||
Research & Development
|
5.65
|
1.34
|
-
|
-
|
-
|
-
|
-
|
6.99
|
||||||||||||||||||||||||
Sales & Marketing
|
16.04
|
2.21
|
-
|
-
|
-
|
-
|
-
|
18.25
|
||||||||||||||||||||||||
General & Administrative
|
6.29
|
4.17
|
1.47
|
0.47
|
-
|
-
|
-
|
12.39
|
||||||||||||||||||||||||
Contingent Consideration Charge
|
-
|
-
|
-
|
-
|
20.06
|
-
|
-
|
20.06
|
||||||||||||||||||||||||
Total Expenses
|
40.76
|
8.12
|
1.47
|
0.47
|
20.06
|
-
|
-
|
70.88
|
||||||||||||||||||||||||
Gross Margin
|
81.7
|
%
|
(0.6
|
%)
|
-
|
-
|
-
|
-
|
-
|
81.1
|
%
|
|||||||||||||||||||||
Income (Loss) from Operations
|
29.12
|
(8.12
|
)
|
(1.47
|
)
|
(0.47
|
)
|
(20.06
|
)
|
-
|
-
|
(1.00
|
)
|
|||||||||||||||||||
Operating Margin
|
41.7
|
%
|
(11.6
|
%)
|
(2.1
|
%)
|
(0.7
|
%)
|
(28.7
|
%)
|
-
|
-
|
(1.4
|
%)
|
||||||||||||||||||
Interest and Other Income
|
(0.32
|
)
|
-
|
-
|
-
|
-
|
(0.03
|
)
|
-
|
(0.35
|
)
|
|||||||||||||||||||||
Pre-Tax Income (Loss)
|
28.80
|
(8.12
|
)
|
(1.47
|
)
|
(0.47
|
)
|
(20.06
|
)
|
(0.03
|
)
|
-
|
(1.35
|
)
|
||||||||||||||||||
Benefit (Expense) for Income Taxes
|
(0.66
|
)
|
-
|
-
|
-
|
-
|
-
|
1.94
|
1.28
|
|||||||||||||||||||||||
Net Income (Loss)
|
28.14
|
(8.12
|
)
|
(1.47
|
)
|
(0.47
|
)
|
(20.06
|
)
|
(0.03
|
)
|
1.94
|
(0.07
|
)
|
||||||||||||||||||
On a diluted per share basis
|
$
|
1.57
|
$
|
(0.49
|
)
|
$
|
(0.09
|
)
|
$
|
(0.03
|
)
|
$
|
(1.21
|
)
|
$
|
(0.00
|
)
|
$
|
0.12
|
$
|
(0.00
|
)
|
||||||||||
Shares used in per share calculation
|
17.88
|
16.64
|
16.64
|
16.64
|
16.64
|
16.64
|
16.64
|
16.64
|
*
|
Common equivalent shares are excluded from the GAAP diluted earnings per share calculation as their effect is anti-dillutive
|
Fiscal Year 2015
All amounts in millions except
per share or margin data:
|
Non-GAAP
Amounts
|
Stock-Based
Compensation
Expense
|
Intangible
Amortization
Expense
|
Non-Recurring
Expenses
|
Contingent
Consideration
Charge
|
Debt
Amortization
|
Litigation
Settlement
Expense
|
Income Tax
Benefit
(Expense)
|
GAAP
Amounts
|
|||||||||||||||||||||||||||
Cost of Revenues
|
$
|
42.94
|
$
|
0.99
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
43.94
|
||||||||||||||||||
Research & Development
|
17.56
|
3.15
|
-
|
-
|
-
|
-
|
-
|
-
|
20.71
|
|||||||||||||||||||||||||||
Sales & Marketing
|
51.60
|
4.55
|
-
|
-
|
-
|
-
|
-
|
-
|
56.14
|
|||||||||||||||||||||||||||
General & Administrative
|
23.04
|
8.53
|
3.60
|
7.22
|
-
|
-
|
-
|
-
|
42.40
|
|||||||||||||||||||||||||||
Contingent Consideration Charge
|
-
|
-
|
-
|
-
|
46.09
|
-
|
-
|
-
|
46.09
|
|||||||||||||||||||||||||||
Litigation Settlement
|
-
|
-
|
-
|
-
|
-
|
-
|
10.00
|
-
|
10.00
|
|||||||||||||||||||||||||||
Total Expenses
|
135.14
|
17.23
|
3.60
|
7.22
|
46.09
|
-
|
10.00
|
-
|
219.28
|
|||||||||||||||||||||||||||
Gross Margin
|
79.9
|
%
|
(0.5
|
%)
|
-
|
-
|
-
|
-
|
-
|
-
|
79.5
|
%
|
||||||||||||||||||||||||
Income (Loss) from Operations
|
78.82
|
(17.23
|
)
|
(3.60
|
)
|
(7.22
|
)
|
(46.09
|
)
|
-
|
(10.00
|
)
|
-
|
(5.32
|
)
|
|||||||||||||||||||||
Operating Margin
|
36.8
|
%
|
(8.1
|
%)
|
(1.7
|
%)
|
(3.4
|
%)
|
(21.5
|
%)
|
-
|
(4.7
|
%)
|
-
|
(2.5
|
%)
|
||||||||||||||||||||
Interest and Other Income
|
(0.22
|
)
|
-
|
-
|
-
|
-
|
(0.03
|
)
|
-
|
-
|
(0.25
|
)
|
||||||||||||||||||||||||
Pre-Tax Income (Loss)
|
78.60
|
(17.23
|
)
|
(3.60
|
)
|
(7.22
|
)
|
(46.09
|
)
|
(0.03
|
)
|
(10.00
|
)
|
-
|
(5.57
|
)
|
||||||||||||||||||||
Benefit (Expense) for Income Taxes
|
(1.44
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
2.82
|
1.37
|
||||||||||||||||||||||||||
Net Income (Loss)
|
77.15
|
(17.23
|
)
|
(3.60
|
)
|
(7.22
|
)
|
(46.09
|
)
|
(0.03
|
)
|
(10.00
|
)
|
2.82
|
(4.20
|
)
|
||||||||||||||||||||
On a diluted per share basis
|
$
|
4.43
|
$
|
(1.05
|
)
|
$
|
(0.22
|
)
|
$
|
(0.44
|
)
|
$
|
(2.80
|
)
|
$
|
(0.00
|
)
|
$
|
(0.61
|
)
|
$
|
0.17
|
$
|
(0.26
|
)
|
|||||||||||
Shares used in per share calculation
|
17.42
|
16.44
|
16.44
|
16.44
|
16.44
|
16.44
|
16.44
|
16.44
|
16.44
|
*
|
Common equivalent shares are excluded from the GAAP diluted earnings per share calculation as their effect is anti-dillutive
|
Fourth Quarter and Fiscal 2015
All amounts in millions except margin data
|
Three Months ended
December 31,
|
Twelve Months ended
December 31,
|
||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
GAAP Net Income (Loss)
|
$
|
(0.07
|
)
|
$
|
8.90
|
$
|
(4.20
|
)
|
$
|
36.88
|
||||||
Depreciation and Amortization expense
|
$
|
2.53
|
$
|
1.64
|
$
|
7.70
|
$
|
4.83
|
||||||||
Interest & Other Expense (Income), net
|
$
|
0.35
|
$
|
(0.14
|
)
|
$
|
(0.07
|
)
|
$
|
(0.65
|
)
|
|||||
Income Tax Expense (Benefit), net
|
$
|
(1.28
|
)
|
$
|
(9.32
|
)
|
$
|
(1.37
|
)
|
$
|
(12.70
|
)
|
||||
Stock-based Compensation Expense
|
$
|
8.12
|
$
|
2.73
|
$
|
17.23
|
$
|
5.13
|
||||||||
Contingent Consideration Charge
|
$
|
20.06
|
$
|
7.58
|
$
|
46.09
|
$
|
8.44
|
||||||||
Non-Recurring Expenses
|
$
|
0.47
|
$
|
1.39
|
$
|
17.22
|
$
|
2.31
|
||||||||
Adjusted EBITDA
|
$
|
30.18
|
$
|
12.78
|
$
|
82.59
|
$
|
44.24
|
||||||||
Adjusted EBITDA Margin
|
43.2
|
%
|
30.5
|
%
|
38.6
|
%
|
30.0
|
%
|
Three Months ended
December 31,
|
Twelve Months ended
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Revenues:
|
||||||||||||||||
Service
|
$
|
58,175
|
$
|
33,075
|
$
|
176,672
|
$
|
115,696
|
||||||||
Product
|
5,077
|
4,440
|
18,283
|
16,883
|
||||||||||||
Insurance
|
3,926
|
2,817
|
11,732
|
9,217
|
||||||||||||
Customized postage
|
2,684
|
1,510
|
7,229
|
5,450
|
||||||||||||
Other
|
14
|
11
|
41
|
23
|
||||||||||||
Total revenues
|
69,876
|
41,853
|
213,957
|
147,269
|
||||||||||||
Cost of revenues:
|
||||||||||||||||
Service
|
8,192
|
5,746
|
27,967
|
19,687
|
||||||||||||
Product
|
1,571
|
1,397
|
5,971
|
5,516
|
||||||||||||
Insurance
|
1,238
|
962
|
3,984
|
3,210
|
||||||||||||
Customized postage
|
2,182
|
1,196
|
6,013
|
4,493
|
||||||||||||
Total cost of revenues
|
13,183
|
9,301
|
43,935
|
32,906
|
||||||||||||
Gross profit
|
56,693
|
32,552
|
170,022
|
114,363
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
18,246
|
12,110
|
56,144
|
43,659
|
||||||||||||
Research and development
|
6,991
|
3,950
|
20,711
|
13,309
|
||||||||||||
General and administrative
|
12,395
|
9,409
|
42,399
|
25,147
|
||||||||||||
Contingent consideration charges
|
20,061
|
7,578
|
46,088
|
8,438
|
||||||||||||
Litigation settlement
|
-
|
-
|
10,000
|
-
|
||||||||||||
Total operating expenses
|
57,693
|
33,047
|
175,342
|
90,553
|
||||||||||||
(Loss) income from operations
|
(1,000
|
)
|
(495
|
)
|
(5,320
|
)
|
23,810
|
|||||||||
Interest expense, net
|
(397
|
)
|
-
|
(397
|
)
|
-
|
||||||||||
Interest income and other income, net
|
43
|
79
|
146
|
375
|
||||||||||||
(Loss) income before income taxes
|
(1,354
|
)
|
(416
|
)
|
(5,571
|
)
|
24,185
|
|||||||||
Income tax benefit
|
(1,283
|
)
|
(9,318
|
)
|
(1,373
|
)
|
(12,697
|
)
|
||||||||
Net (loss) income
|
$
|
(71
|
)
|
$
|
8,902
|
$
|
(4,198
|
)
|
$
|
36,882
|
||||||
Net (loss) income per share:
|
||||||||||||||||
Basic
|
$
|
(0.00
|
)
|
$
|
0.56
|
$
|
(0.26
|
)
|
$
|
2.30
|
||||||
Diluted
|
$
|
(0.00
|
)
|
$
|
0.54
|
$
|
(0.26
|
)
|
$
|
2.25
|
||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
16,642
|
15,952
|
16,436
|
16,011
|
||||||||||||
Diluted
|
16,642
|
(1) |
16,372
|
16,436
|
(1) |
16,417
|
(1) -
|
Common equivalent shares are excluded from the diluted (loss) earnings per share calculation as their effect is anti-dilutive
|
December 31,
2015
|
December 31,
2014
|
|||||||
ASSETS
|
||||||||
Cash and investments
|
$
|
75,208
|
$
|
57,630
|
||||
Accounts receivable
|
55,052
|
12,325
|
||||||
Other current assets
|
8,345
|
6,071
|
||||||
Property and equipment, net
|
31,707
|
30,427
|
||||||
Goodwill and intangible assets, net
|
293,757
|
86,463
|
||||||
Deferred tax
|
57,224
|
53,816
|
||||||
Other assets
|
7,321
|
7,999
|
||||||
Total assets
|
$
|
528,614
|
$
|
254,731
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities:
|
||||||||
Accounts payable and accrued expenses
|
$
|
60,816
|
$
|
22,521
|
||||
Debt, net of capitalized debt issuance costs
|
161,620
|
-
|
||||||
Contingent consideration
|
63,209
|
25,015
|
||||||
Deferred revenue
|
4,000
|
2,164
|
||||||
Total liabilities
|
289,645
|
49,700
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
52
|
51
|
||||||
Additional paid-in capital
|
716,253
|
678,075
|
||||||
Treasury stock
|
(172,410
|
)
|
(172,410
|
)
|
||||
Accumulated deficit
|
(304,944
|
)
|
(300,746
|
)
|
||||
Accumulated other comprehensive income
|
18
|
61
|
||||||
Total stockholders' equity
|
238,969
|
205,031
|
||||||
Total liabilities and stockholders' equity
|
$
|
528,614
|
$
|
254,731
|