0001193125-13-418543.txt : 20131030 0001193125-13-418543.hdr.sgml : 20131030 20131030161200 ACCESSION NUMBER: 0001193125-13-418543 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20131030 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20131030 DATE AS OF CHANGE: 20131030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACTIVE NETWORK INC CENTRAL INDEX KEY: 0001163932 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 330884962 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35187 FILM NUMBER: 131179417 BUSINESS ADDRESS: STREET 1: 10182 TELESIS COURT STREET 2: SUITE 300 CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 858-964-3800 MAIL ADDRESS: STREET 1: 10182 TELESIS COURT STREET 2: STE 300 CITY: SAN DIEGO STATE: CA ZIP: 92121 8-K 1 d609328d8k.htm 8-K 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2013

 

 

THE ACTIVE NETWORK, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35187   33-0884962

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

10182 Telesis Court

San Diego, California

   92121
(Address of principal executive offices)   (Zip Code)

(858) 964-3800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ 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

The information in this Item 2.02 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission.

On October 30, 2013, The Active Network, Inc. (the “Company”) issued a press release announcing its financial results for the third fiscal quarter. A copy of the press release is attached as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1    Press Release, dated October 30, 2013.*

 

* Exhibit 99.1 is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  THE ACTIVE NETWORK, INC.
Date: October 30, 2013  

/s/ Scott Mendel

  Scott Mendel
 

Chief Financial Officer

(principal financial and accounting officer)

EXHIBIT INDEX

 

Exhibit
Number

   

Description

99.1    Press Release, dated October 30, 2013
 EX-99.1 2 d609328dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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ACTIVE Network Reports Third Quarter 2013 Financial Results

 

  •   Third Quarter Revenue of $117.5 Million

 

  •   Third Quarter Adjusted EBITDA of $16.4 Million

SAN DIEGO, CALIF. – October 30, 2013 – ACTIVE Network (NYSE: ACTV), the leader in cloud-based activity and participant management™ solutions, today announced its financial results for the third quarter ended September 30, 2013.

Q3 2013 Financial Highlights:

(All comparisons are made to the third quarter of 2012)

 

  •   Total net revenue up 8% to $117.5 million.

 

  •   Technology revenue increased 9% and constituted 89%, or $104.4 million, of total net revenue.

 

  •   Net registration revenue increased 9% to $79.0 million; registrations grew 6% and revenue per registration was up 2%.

 

  •   Marketing services revenue constituted 11%, or $13.1 million, of total net revenue.

 

  •   Net loss was $5.3 million, compared to net loss of $6.0 million.

 

  •   Adjusted EBITDA, a non-GAAP financial measure, was $16.4 million.

 

  •   Excluding charges related to transaction costs associated with ACTIVE Network entering into a definitive agreement to be acquired by Vista Equity Partners and management changes, Adjusted EBITDA was $19.5 million, up 27%.

“I am pleased with our third quarter results,” said Jon Belmonte, Interim CEO of ACTIVE Network. “During the quarter, we entered into a definitive agreement to be acquired by Vista Equity Partners, which we believe will be a very positive event for stockholders and will help position us to further capitalize on the market opportunity.”

Q3 2013 Key Business Highlights

 

  •   Marquee customer highlights included wins from Run or Dye, Kentucky Derby Festival Marathon, Monterey County Parks (CA), Arkansas State Parks, and Informatica World 2014 and 2015.

 

  •   ACTIVE Network launched a new version of ACTIVE RegOnline™, the Company’s entry-level online event-management solution. The new ACTIVE RegOnline makes it easier for event planners from Small and Mid-sized Businesses (SMBs) and associations, to plan, promote, and manage events of all sizes.

 

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  •   ACTIVE Network saw a 5% increase in summer camping across U.S. Federal parks, 30+ states, and regional and private partners. Through ReserveAmerica.com, ACTIVE Network provides consumers with the ability to search and reserve from more than 210,000 campsites.

Merger Agreement with Vista Equity Partners

On September 28, 2013, ACTIVE Network entered into a definitive agreement to be acquired by affiliates of Vista Equity Partners (“Vista”), a leading private equity firm focused on investments in software, data and technology-enabled businesses, in a transaction valued at approximately $1.05 billion. Pursuant to the agreement, Vista has commenced a tender offer to acquire all of the outstanding shares of ACTIVE Network’s common stock for $14.50 per share, in cash, payable without interest and less any applicable withholding taxes. Any shares not tendered in the offer will be acquired in a second-step merger at the same cash price as paid in the tender offer. The transaction is expected to close before the end of the fourth quarter of 2013. Upon the completion of the transaction, ACTIVE Network will become a privately held company.

Conference Call Information

Due to the previously announced merger agreement with Vista, ACTIVE Network will not host a conference call in conjunction with today’s release of its third quarter 2013 results and will not be updating prior financial guidance or providing financial guidance for future periods.

About ACTIVE Network

ACTIVE Network (NYSE: ACTV) is on a mission to make the world a more active place. With deep expertise in activity and participant management™, our ACTIVE Works® cloud technology helps organizations transform and grow their businesses. We do this through technology solutions that power the world’s activities, as well as online destinations such as ACTIVE.com® that connect people with the things they love to do. Serving ~55,000 global business customers and driving ~90 million transactions annually, we help organizations get participants, manage their events and build communities. ACTIVE Network is headquartered in San Diego, California and has over 30 offices worldwide. Learn more at ACTIVEnetwork.com or ACTIVE.com and engage with us on Twitter @ACTIVEnetwork, @ACTIVE and on Facebook.

Note With Respect to Non-GAAP Financial Measures

In addition to using GAAP financial results, the Company’s management measures and reports non-GAAP financial measures including Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share. The most directly comparable GAAP financial results for these non-GAAP

 

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financial measures are Net income (loss), Net income (loss) and Net income (loss) per share, respectively. Management uses these non-GAAP financial measures to evaluate the Company’s performance and operations. Management also uses these non-GAAP financial measures for business planning, to evaluate acquisition opportunities and as a measurement to create incentives and to compensate the Company’s management team. In addition, management believes the exclusion or inclusion of certain amounts in calculating these non-GAAP financial measures can provide a useful measure to investors for period-to-period comparisons. These non-GAAP financial measures, however, should be used in addition to, and in conjunction with, the Company’s financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company’s results with other companies’ non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP financial measures.

Forward-Looking Statements

The Active Network, Inc. cautions you that the statements included in this press release that are not a description of historical facts are forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to substantial risks and uncertainties, including the Company’s ability to generate revenue and control expenses in order to achieve and maintain profitability, the Company’s ability to maintain an adequate rate of growth and improve its operations, including growing its registrations and revenue from registrations, and the Company’s ability to successfully manage its acquisitions and investments in businesses, applications and technologies, the effects of the Company’s recent management change, and the Company’s ability to successfully consider and evaluate its strategic alternatives, as well as the other risks detailed from time to time in the reports it files with the Securities and Exchange Commission. As a result of these risks and uncertainties, the Company’s actual results may differ materially from those expressed in any forward-looking statements. This press release also contains forward-looking statements with respect to the tender offer and related transactions, including the benefits expected from the acquisition and the expected timing of the completion of the transaction. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risks, including uncertainties regarding the timing of the closing of the transaction, uncertainties as to the number of the Company’s stockholders who may tender their stock in the tender offer, the possibility that various closing conditions for the transaction may not be satisfied or waived, and general economic and business conditions. Factors that could cause actual results of the tender offer to differ materially include the following: the risk of failing to satisfy conditions to the transaction, the risk that Vista is unable to obtain adequate financing, the risk that the transaction will not close or that closing will be delayed, the risk that the Company’s business will suffer due to uncertainty related to the transaction, the competitive environment in the Company’s industry and competitive responses to the transaction. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

###

© 2013 The Active Network, Inc. All rights reserved. ACTIVE.com, ACTIVE Works and StarCite are registered trademarks of The Active Network, Inc. ACTIVE Network is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.

 

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Notice to Investors

This press release is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of ACTIVE Network’s common stock. The solicitation and the offer to purchase shares of ACTIVE Network’s common stock described in this press release will be made only pursuant to the offer to purchase and related materials that Vista has filed on Schedule TO with the SEC. In addition, ACTIVE Network has filed its recommendation of the tender offer on Schedule 14D-9 with the SEC. Additionally, ACTIVE Network and Vista will file other relevant materials in connection with the proposed acquisition of ACTIVE Network by Vista pursuant to the terms of the merger agreement. INVESTORS AND STOCKHOLDERS OF ACTIVE NETWORK ARE ADVISED TO READ THE SCHEDULE TO (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND OTHER OFFER DOCUMENTS) AND THE SCHEDULE 14D-9, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BEFORE MAKING ANY DECISION WITH RESPECT TO THE TENDER OFFER, BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES THERETO.

Investors and stockholders may obtain free copies of the Schedule TO and Schedule 14D-9, as each may be amended or supplemented from time to time, and other documents filed by the parties (when available), at the SEC’s web site at www.sec.gov or by contacting the investor relations department of ACTIVE Network at 10182 Telesis Court, San Diego, California 92121, by telephone at (858) 964-3834 or by email at PR@activenetwork.com.

 

Media Contact:    Investor Contact:
Kristin Carroll, ACTIVE Network    Brinlea Johnson, The Blueshirt Group
PR@ACTIVEnetwork.com    Brinlea@blueshirtrgroup.com
1- 858- 964-3834    1-212-331-8424
   Allise Furlani, The Blueshirt Group
   allise@blueshirtgroup.com
   212-331-8433

 

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THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013     2012     2013     2012  

Net Revenue:

         

Technology revenue

    $ 104,407      $ 96,170      $ 318,870      $ 288,445   

Marketing services revenue

      13,128        13,049        37,036        36,776   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenue

      117,535        109,219        355,906        325,221   

Cost of net revenue:

         

Cost of technology revenue

      50,896        45,571        156,355        142,038   

Cost of marketing services revenue

      916        1,826        3,131        5,257   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total cost of net revenue

      51,812        47,397        159,486        147,295   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      65,723        61,822        196,420        177,926   

Operating expenses:

         

Sales and marketing

      25,307        24,154        79,281        73,462   

Research and development

      20,703        20,624        63,375        62,954   

General and administrative

      20,441        15,862        61,980        49,309   

Amortization of intangibles

      3,956        5,492        12,396        16,780   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      70,407        66,132        217,032        202,505   
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss from operations

      (4,684 )      (4,310 )      (20,612 )      (24,579 ) 

Interest income

      13        23        44        73   

Interest expense

      (151 )      (239 )      (486 )      (480 ) 

Other income (expense), net

      431        486        (592 )      1,363   
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss before provision for income taxes

      (4,391 )      (4,040 )      (21,646 )      (23,623 ) 

Provision for income taxes

      904        1,982        3,349        5,062   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss

    $ (5,295 )    $ (6,022 )    $ (24,995 )    $ (28,685 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss per share:

         

Basic and diluted

    $ (0.08 )    $ (0.10 )    $ (0.40 )    $ (0.49 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average shares:

         

Basic and diluted

      62,757        59,444        61,718        58,259   
  

 

 

    

 

 

    

 

 

    

 

 

  

THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     September 30,
2013		     December 31,
2012		  
     (Unaudited)        

Assets

     

Current assets:

     

Cash and cash equivalents

    $ 103,330      $ 58,493   

Restricted cash

      308        1,145   

Registration receivable

      22,580        16,260   

Accounts receivable, net

      51,774        51,363   

Inventories

      3,918        4,809   

Prepaid expenses and other current assets

      10,548        8,922   
  

 

 

    

 

 

  

Total current assets

      192,458        140,992   

Property and equipment, net

      42,500        41,236   

Software development costs, net

      49,073        51,151   

Goodwill

      242,869        243,716   

Intangible assets, net

      46,564        62,806   

Other long-term assets

      2,600        2,569   
  

 

 

    

 

 

  

Total assets

    $ 576,064      $ 542,470   
  

 

 

    

 

 

  

Liabilities and stockholders’ equity

     

Current liabilities:

     

Accounts payable

    $ 3,107      $ 8,174   

Registration fees payable

      88,125        61,272   

Accrued expenses

      51,669        38,865   

Deferred revenue

      69,715        66,846   

Capital lease obligations, current portion

      2,278        2,774   

Other current liabilities

      3,495        4,373   
  

 

 

    

 

 

  

Total current liabilities

      218,389        182,304   

Capital lease obligations, net of current portion

      1,088        2,462   

Other long-term liabilities

      5,690        6,192   

Deferred tax liability

      21,427        19,065   
  

 

 

    

 

 

  

Total liabilities

      246,594        210,023   

Stockholders’ equity:

     

Common stock

      64        62   

Treasury stock

      (11,959 )      (11,959 ) 

Additional paid-in capital

      676,592        653,694   

Accumulated other comprehensive income

      8,052        8,934   

Accumulated deficit

      (343,279 )      (318,284 ) 
  

 

 

    

 

 

  

Total stockholders’ equity

      329,470        332,447   
  

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 576,064      $ 542,470   
  

 

 

    

 

 

  

THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Nine Months Ended
September 30,		  
     2013     2012  

Operating activities

     

Net loss

    $ (24,995 )    $ (28,685 ) 

Adjustments to reconcile net loss to net cash provided by operating activities:

     

Depreciation and amortization of property and equipment

      30,311        23,995   

Amortization of intangible assets

      15,970        21,132   

Stock-based compensation expense

      19,086        11,992   

Deferred tax liability

      2,391        3,046   

Other non-cash items

      (935 )      (2,431 ) 

Change in operating assets and liabilities, net of effect of acquisitions:

     

Restricted cash

      837        627   

Registration receivable

      (6,321 )      (4,274 ) 

Accounts receivable

      (453 )      (2,483 ) 

Inventories

      891        (1,831 ) 

Prepaid expenses and other assets

      (1,680 )      (2,692 ) 

Accounts payable and accrued expenses

      10,884        3,416   

Registration fees payable

      26,854        252   

Deferred revenue

      3,105        13,914   

Other liabilities

      (329 )      1,170   
  

 

 

    

 

 

  

Net cash provided by operating activities

      75,616        37,148   

Investing activities

     

Purchases of property and equipment

      (16,690 )      (12,665 ) 

Capitalized software development

      (16,266 )      (17,194 ) 

Cash paid for acquisitions, net of cash acquired

      —          (38,037 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

      (32,956 )      (67,896 ) 

Financing activities

     

Proceeds from issuance of common stock

      5,444        9,247   

Payments on capital lease obligations

      (1,869 )      (3,552 ) 

Payments of employee tax withholdings from equity transactions

      (1,896 )      —     

Proceeds (repayment) of long-term debt

      —          (5,000 ) 
  

 

 

    

 

 

  

Net cash provided by financing activities

      1,679        695   

Effect of exchange rates on cash

      498        (147 ) 
  

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      44,837        (30,200 ) 

Cash and cash equivalents at beginning of period

      58,493        108,699   
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 103,330      $ 78,499   
  

 

 

    

 

 

  

THE ACTIVE NETWORK, INC.

SUPPLEMENTARY DATA

(In thousands, except revenue per registration)

(Unaudited)

 

     Three Months Ended           Nine Months Ended        
     September 30,     %
change		     September 30,     %
change		  
     2013     2012       2013     2012    
Operational Data:             

Net registration revenue

    $ 78,957      $ 72,703        9 %    $ 241,768      $ 220,076        10 % 

Registrations

      26,840        25,207        6 %      74,716        71,466        5 % 

Net registration revenue per registration

    $ 2.94      $ 2.88        2 %    $ 3.24      $ 3.08        5 % 
     Three Months Ended     % or
bps
change		     Nine Months Ended     % or
bps
change		  
     September 30,       September 30,    
     2013     2012       2013     2012    

GAAP and Non-GAAP Gross Profit Margin:

             

Total net revenue

    $ 117,535      $ 109,219        8 %    $ 355,906      $ 325,221        9 % 

GAAP gross profit

    $ 65,723      $ 61,822        6 %    $ 196,420      $ 177,926        10 % 

Add back: stock-based compensation

      174        222          457        474     

Add back: depreciation & amortization

      10,166        8,060          29,766        23,728     
  

 

 

    

 

 

      

 

 

    

 

 

    

Non-GAAP gross profit

    $ 76,063      $ 70,104        9 %    $ 226,643      $ 202,128        12 % 

Gross profit margin:

             

GAAP gross profit margin

      55.9 %      56.6 %      (70) bps        55.2 %      54.7 %      50 bps   

Non-GAAP gross profit margin

      64.7 %      64.2 %      50 bps        63.7 %      62.2 %      150 bps   
     Three Months Ended           Nine Months Ended        
     September 30,           September 30,        
     2013     2012           2013     2012        

Stock-Based Compensation Expense:

             

Cost of net revenue

    $ 174      $ 222        $ 457      $ 474     

Sales and marketing

      1,242        1,007          2,833        2,709     

Research and development

      674        662          1,683        1,782     

General and administrative

      3,544        2,770          14,113        7,027     
  

 

 

    

 

 

      

 

 

    

 

 

    

Total stock-based compensation (1)

    $ 5,634      $ 4,661        $ 19,086      $ 11,992     
  

 

 

    

 

 

      

 

 

    

 

 

    

 

(1) Management change costs included $0.6 million in stock-based compensation in the three months ended September 30, 2013, and $6.3 million in stock-based compensation in the nine months ended September 30, 2013 associated with the May and July 2013 separation agreements for the company’s former Executive Chairman and Chairman of the Board, Chief Executive Officer, and Chief Legal Officer.

THE ACTIVE NETWORK, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  
Non-GAAP Earnings:         

Non-GAAP net income (loss):

         

GAAP net loss

    $ (5,295 )    $ (6,022 )    $ (24,995 )    $ (28,685 ) 

Add back: stock-based compensation (1)

      5,634        4,661        19,086        11,992   

Add back: amortization of intangibles

      5,137        6,900        15,970        21,132   

Income tax effect

      (3,770 )      (4,046 )      (12,270 )      (11,593 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss)

    $ 1,706      $ 1,493      $ (2,209 )    $ (7,154 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Add back: management change and deal costs (1)

      3,100        —          4,800        —     

Income tax effect

      (1,085 )      —          (1,680 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss) excluding management change and deal costs

    $ 3,721      $ 1,493      $ 911      $ (7,154 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average shares:

         

Basic

      62,757        59,444        61,718        58,259   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      67,941        64,708        65,666        58,259   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss) per share:

         

Basic

    $ 0.03      $ 0.03      $ (0.04 )    $ (0.12 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.03      $ 0.02      $ (0.04 )    $ (0.12 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP net income (loss) per share excluding management change and deal costs:

         

Basic

    $ 0.06      $ 0.03      $ 0.01      $ (0.12 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.05      $ 0.02      $ 0.01      $ (0.12 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013     2012     2013     2012  
Adjusted EBITDA:         

Net loss

    $ (5,295 )    $ (6,022 )    $ (24,995 )    $ (28,685 ) 

Add back: interest expense, net

      138        216        442        407   

Add back: provision for income taxes

      904        1,982        3,349        5,062   

Add back: depreciation and amortization

      15,422        15,033        46,281        45,127   

Add back: stock-based compensation (1)

      5,634        4,661        19,086        11,992   

Add back: other (income) expense, net

      (431 )      (486 )      592        (1,363 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 16,372      $ 15,384      $ 44,755      $ 32,540   
  

 

 

    

 

 

    

 

 

    

 

 

  

Add back: management change and deal costs (1)

      3,100        —          4,800        —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA excluding management change and deal costs

    $ 19,472      $ 15,384      $ 49,555      $ 32,540   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Management change costs included $0.6 million in stock-based compensation and $0.4 million in other costs in the three months ended September 30, 2013, and $6.3 million in stock-based compensation and $1.9 million in other costs in the nine months ended September 30, 2013 associated with the May and July 2013 separation agreements for the company’s former Executive Chairman and Chairman of the Board, Chief Executive Officer, and Chief Legal Officer. Deal costs included $2.7 million for banking, accounting and legal costs in the three months ended September 30, 2013 and $2.9 million in the nine months ended September 30, 2013.
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