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) February
19, 2014
____________________
RealPage,
Inc.
(Exact name of registrant as specified in its charter)
Delaware |
001-34846 |
75-2788861 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
4000 International Parkway |
75007 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (972) 820-3000
________________________________________________________________________________
(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:
⃞ 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.
On February 24, 2014, RealPage, Inc. issued a press release reporting its financial results for its quarter ended December 31, 2013. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description |
99.1 | RealPage, Inc. Press Release dated February 24, 2014 |
The information furnished in this Current Report under Item 2.02 and the exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RealPage, Inc. |
||
(Registrant) |
||
February 19, 2014 |
/s/ TIMOTHY J. BARKER |
|
(Date) |
Timothy J. Barker |
EXHIBIT INDEX
Exhibit No. |
Description |
99.1 |
RealPage, Inc. Press Release dated February 24, 2014 |
Exhibit 99.1
RealPage Reports Full Year and Q4 2013 Financial Results
CARROLLTON, Texas--(BUSINESS WIRE)--February 24, 2014--RealPage, Inc. (NASDAQ:RP), a leading provider of on-demand software and software-enabled services to the rental housing industry, today announced financial results for its fourth quarter and year ended December 31, 2013.
“2013 was a solid year for RealPage,” said Steve Winn, Chairman and CEO of RealPage. “Non-GAAP total revenue growth was 18% compared to last year and profitability levels expanded 100 basis points. While fourth quarter revenue performance was below our expectations, we are taking steps to re-accelerate our revenue growth for 2014 and beyond.”
Fourth Quarter 2013 Financial Highlights
Full Year 2013 Financial Highlights
Financial Outlook
RealPage management expects to achieve the following results during its first quarter ended March 31, 2014:
RealPage management expects to achieve the following results during its calendar year ended December 31, 2014:
Please note that the above statements are forward looking and that Non-GAAP total revenue includes an adjustment for the effect of acquisition-related and other deferred revenue. In addition, the above statements also include the impact of acquisitions and exclude any costs resulting from the Yardi litigation (including settlement costs and related insurance litigation). Actual results may differ materially. Please reference the information under the caption "Non-GAAP Financial Measures" as well as reconciliation tables of GAAP financial measures to non-GAAP financial measures as set forth in this press release.
Conference Call and Webcast
The Company will host a conference call today at 5:00 p.m. EDT to discuss its financial results. Participants are encouraged to listen to the presentation via a live web broadcast at www.realpage.com on the Investor Relations section. In addition, a live dial-in is available domestically at 866-743-9666 and internationally at 760-298-5103. A replay will be available at 855-859-2056 or 404-537-3406, passcode 54561034, until March 2, 2014.
About RealPage
Located in Carrollton, Texas, a suburb of Dallas, RealPage provides on demand (also referred to as “Software-as-a-Service” or “SaaS”) products and services to apartment communities and single family rentals across the United States. Its on demand product lines include Asset Optimization Solutions for driving increased revenue and NOI, Enterprise Solutions to manage all aspects of property management and accounting and Digital Marketing Solutions to improve the quantity and quality of lead origination at lower advertising cost. RealPage supports all asset classes with special adaptations of it system to include convention, affordable, tax credit, student living, military housing senior assisted living, commercial and HOA/Condos. RealPage also support single family rentals, both long term rentals as well as short term vacation rentals.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements relating to RealPage, Inc.'s expected, possible or assumed future results of operations, growth, expenditures, tax rates, and outstanding shares. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “expects,” “believes,” “plans,” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the possibility that general economic conditions or uncertainty cause information technology spending, particularly in the rental housing industry, to be reduced or purchasing decisions to be delayed; (b) an increase in customer cancellations; (c) the inability to increase sales to existing customers and to attract new customers; (d) RealPage, Inc.'s failure to integrate acquired businesses and any future acquisitions successfully; (e) the timing and success of new product introductions by RealPage, Inc. or its competitors; (f) changes in RealPage, Inc.'s pricing policies or those of its competitors; (g) litigation; (h) inability to complete the integration of our LeaseStar products and deliver enhanced functionality on a timely basis and (i) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission ("SEC") by RealPage, including its Annual Report on Form 10-K previously filed with the SEC on February 27, 2013 and Form 10-Q filed with the SEC on November 12, 2013. All information provided in this release is as of the date hereof and RealPage undertakes no duty to update this information except as required by law.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. These measures differ from GAAP in that they include acquisition-related and other deferred revenue and exclude amortization of intangible assets, stock-based compensation expenses, any impact related to the Yardi litigation (including settlement costs and related insurance litigation), and acquisition related expenses (including any purchase accounting adjustments) and include income taxes at a sustainable effective rate, which excludes the reversal of valuation allowances due to expected or realization of deferred tax assets. Reconciliation tables comparing GAAP financial measures to non-GAAP financial measures are included at the end of this release.
We define Adjusted EBITDA as net (loss) income plus acquisition-related and other deferred revenue adjustment, depreciation and asset impairment, amortization of intangible assets, net interest expense, income tax expense (benefit), stock-based compensation expense, any impact related to Yardi litigation (including settlement costs and related insurance litigation), and acquisition-related expenses.
We believe that the use of Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. We believe that:
We use Adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of our overall assessment of our performance, for planning purposes, including the preparation of our annual operating budget, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance.
We do not place undue reliance on Adjusted EBITDA as our only measure of operating performance. Adjusted EBITDA should not be considered as a substitute for other measures of liquidity or financial performance reported in accordance with GAAP. There are limitations to using non-GAAP financial measures, including that other companies may calculate these measures differently than we do, that they do not reflect our capital expenditures or future requirements for capital expenditures and that they do not reflect changes in, or cash requirements for, our working capital. We compensate for the inherent limitations associated with using Adjusted EBITDA measures through disclosure of these limitations, presentation of our financial statements in accordance with GAAP and reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net (loss) income.
Condensed Consolidated Statements of Operations | ||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2013 and 2012 | ||||||||||||||||||||||
(unaudited, in thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||
On demand | $ | 92,081 | $ | 81,771 | $ | 362,312 | $ | 306,400 | ||||||||||||||
On premise | 892 | 1,313 | 3,691 | 5,216 | ||||||||||||||||||
Professional and other | 2,546 | 2,640 | 11,019 | 10,556 | ||||||||||||||||||
Total revenue | 95,519 | 85,724 | 377,022 | 322,172 | ||||||||||||||||||
Cost of revenue(1) | 37,506 | 33,204 | 148,321 | 128,562 | ||||||||||||||||||
Gross profit | 58,013 | 52,520 | 228,701 | 193,610 | ||||||||||||||||||
Operating expense: | ||||||||||||||||||||||
Product development(1) | 13,641 | 12,852 | 50,638 | 48,177 | ||||||||||||||||||
Sales and marketing(1) | 23,902 | 19,806 | 95,894 | 76,992 | ||||||||||||||||||
General and administrative(1) | 15,730 | 12,199 | 60,610 | 56,993 | ||||||||||||||||||
Total operating expense | 53,273 | 44,857 | 207,142 | 182,162 | ||||||||||||||||||
Operating income | 4,740 | 7,663 | 21,559 | 11,448 | ||||||||||||||||||
Interest expense and other income, net | (156 | ) | (426 | ) | (1,077 | ) | (2,046 | ) | ||||||||||||||
Income before income taxes | 4,584 | 7,237 | 20,482 | 9,402 | ||||||||||||||||||
Income tax expense | 2,406 | 3,515 | (210 | ) | 4,219 | |||||||||||||||||
Net income | $ | 2,178 | $ | 3,722 | $ | 20,692 | $ | 5,183 | ||||||||||||||
Net income per share | ||||||||||||||||||||||
Basic | $ | 0.03 | $ | 0.05 | $ | 0.28 | $ | 0.07 | ||||||||||||||
Diluted | $ | 0.03 | $ | 0.05 | $ | 0.27 | $ | 0.07 | ||||||||||||||
Weighted average shares used in computing net income per share |
||||||||||||||||||||||
Basic | 76,035 | 73,460 | 74,962 | 71,838 | ||||||||||||||||||
Diluted | 77,108 | 74,960 | 76,187 | 74,002 | ||||||||||||||||||
(1) |
Includes stock-based compensation expense as follows: |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
|
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Cost of revenue |
$ |
900 | $ | 718 | 3,111 | $ | 2,806 | |||||||||||||||
Product development | 1,665 | 1,211 | 4,788 | 4,391 | ||||||||||||||||||
Sales and marketing | 3,102 | 368 | 10,993 | 4,790 | ||||||||||||||||||
General and administrative | 2,988 | 1,564 | 10,805 | 6,191 | ||||||||||||||||||
$ | 8,655 | $ | 3,861 | $ | 29,697 | $ | 18,178 |
Condensed Consolidated Balance Sheets | ||||||||||||
At December 31, 2013 and December 31, 2012 | ||||||||||||
(unaudited, in thousands except share data) | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 34,502 | $ | 33,804 | ||||||||
Restricted cash | 71,941 | 35,202 | ||||||||||
Accounts receivable, less allowance for doubtful accounts of $914 and $1,087 at December 31, 2013 and December 31, 2012, respectively |
66,635 | 51,937 | ||||||||||
Deferred tax asset, net | 3,284 | - | ||||||||||
Other current assets | 7,453 | 6,541 | ||||||||||
Total current assets | 183,815 | 127,484 | ||||||||||
Property, equipment and software, net | 54,775 | 32,487 | ||||||||||
Goodwill | 152,422 | 134,025 | ||||||||||
Identified intangible assets, net |
108,815 | 104,640 | ||||||||||
Other assets | 3,386 | 3,561 | ||||||||||
Total assets |
$ | 503,213 | $ | 402,197 | ||||||||
Liabilities and stockholders' equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 11,978 | $ | 9,805 | ||||||||
Accrued expenses and other current liabilities | 23,122 | 19,246 | ||||||||||
Current portion of deferred revenue | 66,085 | 60,633 | ||||||||||
Deferred tax liability, net | - | 2 | ||||||||||
Customer deposits held in restricted accounts | 71,910 | 35,171 | ||||||||||
Total current liabilities | 173,095 | 124,857 | ||||||||||
Deferred revenue | 5,671 | 9,446 | ||||||||||
Deferred tax liability, net | 1,379 | 10 | ||||||||||
Revolving credit facility | - | 10,000 | ||||||||||
Other long-term liabilities | 8,564 | 2,813 | ||||||||||
Total liabilities | 188,709 | 147,126 | ||||||||||
Stockholders' equity: | ||||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized and zero shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively |
- | - | ||||||||||
Common stock, $0.001 par value per share: 125,000,000 shares authorized, 80,511,791 and 77,012,925 shares issued and 78,433,626 and 75,826,615 shares outstanding at December 31, 2013 and December 31, 2012, respectively |
81 | 77 | ||||||||||
Additional paid-in capital | 390,854 | 347,203 | ||||||||||
Treasury stock, at cost: 2,078,165 and 1,186,310 shares at and December 31, 2013 and December 31, 2012, respectively |
(11,183 | ) | (6,323 | ) | ||||||||
Accumulated deficit | (65,086 | ) | (85,778 | ) | ||||||||
Accumulated other comprehensive loss | (162 | ) | (108 | ) | ||||||||
Total stockholders' equity | 314,504 | 255,071 | ||||||||||
Total liabilities and stockholders' equity | $ | 503,213 | $ | 402,197 |
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2013 and 2012 | |||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 2,178 | $ | 3,722 | $ | 20,692 | $ | 5,183 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||||||||||||||||||||
Depreciation and amortization | 8,922 | 8,787 | 31,745 | 32,469 | |||||||||||||||||||
Deferred tax expense (benefit) | 2,370 | 2,698 | (2,503 | ) | 2,624 | ||||||||||||||||||
Stock-based compensation | 8,655 | 3,861 | 29,697 | 18,178 | |||||||||||||||||||
Loss on disposal of assets | 4 | 181 | 314 | 568 | |||||||||||||||||||
Acquisition-related contingent consideration | (16 | ) | (300 | ) | 1,284 | (722 | ) | ||||||||||||||||
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations: |
(4,513 | ) | (1,692 | ) | (12,020 | ) | 112 | ||||||||||||||||
Net cash provided by operating activities | 17,600 | 17,257 | 69,209 | 58,412 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property, equipment and software, net | (10,762 | ) | (3,173 | ) | (32,952 | ) | (18,774 | ) | |||||||||||||||
Acquisition of businesses, net of cash acquired | (17,887 | ) | (2,693 | ) | (28,229 | ) | (10,627 | ) | |||||||||||||||
Intangible asset additions | (327 | ) | (150 | ) | (927 | ) | (3,375 | ) | |||||||||||||||
Net cash used by investing activities | (28,976 | ) | (6,016 | ) | (62,108 | ) | (32,776 | ) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Payments on and proceeds from debt, net | (137 | ) | (15,000 | ) | (10,548 | ) | (40,377 | ) | |||||||||||||||
Payments of deferred acquisition-related consideration | (4 | ) | - | (1,549 | ) | (11,557 | ) | ||||||||||||||||
Issuance of common stock | 3,754 | 2,191 | 10,608 | 12,065 | |||||||||||||||||||
Purchase of treasury stock | (1,697 | ) | (797 | ) | (4,860 | ) | (3,185 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 1,916 | (13,606 | ) | (6,349 | ) | (43,054 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (9,460 | ) | (2,365 | ) | 752 | (17,418 | ) | ||||||||||||||||
Effect of exchange rate on cash | (18 | ) | (51 | ) | (54 | ) | (51 | ) | |||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Beginning of period | 43,980 | 36,220 | 33,804 | 51,273 | |||||||||||||||||||
End of period | $ | 34,502 | $ | 33,804 | $ | 34,502 | $ | 33,804 |
Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2013 and 2012 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Non-GAAP revenue: | ||||||||||||||||||||
Revenue (GAAP) | $ | 95,519 | $ | 85,724 | $ | 377,022 | $ | 322,172 | ||||||||||||
Acquisition-related and other deferred revenue | 922 | 3 | 2,717 | 89 | ||||||||||||||||
Non-GAAP revenue | $ | 96,441 | $ | 85,727 | $ | 379,739 | $ | 322,261 | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Adjusted gross profit: | ||||||||||||||||||||
Gross profit (GAAP) | $ | 58,013 | $ | 52,520 | $ | 228,701 | $ | 193,610 | ||||||||||||
Acquisition-related and other deferred revenue | 922 | 3 | 2,717 | 89 | ||||||||||||||||
Depreciation | 1,800 | 1,598 | 6,567 | 6,515 | ||||||||||||||||
Amortization of intangible assets | 2,062 | 2,560 | 7,713 | 9,560 | ||||||||||||||||
Stock-based compensation expense | 900 | 718 | 3,111 | 2,806 | ||||||||||||||||
Adjusted gross profit | $ | 63,697 | $ | 57,399 | $ | 248,809 | $ | 212,580 | ||||||||||||
Adjusted gross profit margin | 66.0 | % | 67.0 | % | 65.5 | % | 66.0 | % | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||
Net income (GAAP) | $ | 2,178 | $ | 3,722 | $ | 20,692 | $ | 5,183 | ||||||||||||
Acquisition-related and other deferred revenue | 922 | 3 | 2,717 | 89 | ||||||||||||||||
Depreciation, asset impairment and loss on disposal of asset | 3,925 | 3,521 | 14,411 | 13,539 | ||||||||||||||||
Amortization of intangible assets | 5,001 | 5,447 | 17,648 | 19,498 | ||||||||||||||||
Interest expense, net | 228 | 426 | 1,427 | 2,160 | ||||||||||||||||
Income tax expense (benefit) | 2,406 | 3,515 | (210 | ) | 4,219 | |||||||||||||||
Litigation-related expense | 330 | 399 | 661 | 10,158 | ||||||||||||||||
Stock-based compensation expense | 8,655 | 3,861 | 29,697 | 18,178 | ||||||||||||||||
Acquisition related expense | 1,156 | (94 | ) | 3,269 | (350 | ) | ||||||||||||||
Stock registration costs | - | 7 | - | 675 | ||||||||||||||||
Adjusted EBITDA | $ | 24,801 | $ | 20,807 | $ | 90,312 | $ | 73,349 | ||||||||||||
Adjusted EBITDA margin | 25.7 | % | 24.3 | % | 23.8 | % | 22.8 | % | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Non-GAAP total product development: | ||||||||||||||||||||
Product development (GAAP) | $ | 13,641 | $ | 12,852 | $ | 50,638 | $ | 48,177 | ||||||||||||
Less: Amortization of intangible assets | 2 | - | 3 | - | ||||||||||||||||
Stock-based compensation expense | 1,665 | 1,211 | 4,788 | 4,391 | ||||||||||||||||
Non-GAAP total product development: | $ | 11,974 | $ | 11,641 | $ | 45,847 | $ | 43,786 | ||||||||||||
Non-GAAP total product development as % of non-GAAP revenue: | 12.4 | % | 13.6 | % | 12.1 | % | 13.6 | % |
Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2013 and 2012 | ||||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Non-GAAP total sales and marketing: | ||||||||||||||||||||||
Sales and marketing (GAAP) | $ | 23,902 | $ | 19,806 | $ | 95,894 | $ | 76,992 | ||||||||||||||
Less: Amortization of intangible assets | 2,939 | 2,887 | 9,935 | 9,938 | ||||||||||||||||||
Stock-based compensation expense | 3,102 | 368 | 10,993 | 4,790 | ||||||||||||||||||
Non-GAAP total sales and marketing: | $ | 17,861 | $ | 16,551 | $ | 74,966 | $ | 62,264 | ||||||||||||||
Non-GAAP total sales and marketing as % of non-GAAP revenue: | 18.5 | % | 19.3 | % | 19.7 | % | 19.3 | % | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Non-GAAP total general and administrative: | ||||||||||||||||||||||
General and administrative (GAAP) | $ | 15,730 | $ | 12,199 | $ | 60,610 | $ | 56,993 | ||||||||||||||
Less: Acquisition related expense | 1,156 | (94 | ) | 3,269 | (350 | ) | ||||||||||||||||
Stock-based compensation expense | 2,988 | 1,564 | 10,805 | 6,191 | ||||||||||||||||||
Litigation related expense | 330 | 399 | 661 | 10,158 | ||||||||||||||||||
Stock registration costs | - | 7 | - | 675 | ||||||||||||||||||
Non-GAAP total general and administrative: | $ | 11,256 | $ | 10,323 | $ | 45,875 | $ | 40,319 | ||||||||||||||
Non-GAAP total general and administrative as % of non-GAAP revenue: | 11.7 | % | 12.0 | % | 12.1 | % | 12.5 | % | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Non-GAAP total operating expense: | ||||||||||||||||||||||
Operating expense (GAAP) | $ | 53,273 | $ | 44,857 | $ | 207,142 | $ | 182,162 | ||||||||||||||
Less: Amortization of intangible assets | 2,939 | 2,887 | 9,935 | 9,938 | ||||||||||||||||||
Acquisition related expense |
1,156 | (94 | ) | 3,269 | (350 | ) | ||||||||||||||||
Stock-based compensation expense | 7,755 | 3,143 | 26,586 | 15,372 | ||||||||||||||||||
Litigation related expense | 330 | 399 | 661 | 10,158 | ||||||||||||||||||
Stock registration costs | - | 7 | - | 675 | ||||||||||||||||||
Non-GAAP total operating expense: | $ | 41,093 | $ | 38,515 | $ | 166,691 | $ | 146,369 | ||||||||||||||
Non-GAAP total operating expense as % of non-GAAP revenue: | 42.6 | % | 44.9 | % | 43.9 | % | 45.4 | % | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Non-GAAP operating income: | ||||||||||||||||||||||
Operating income (GAAP) | $ | 4,740 | $ | 7,663 | $ | 21,559 | $ | 11,448 | ||||||||||||||
Acquisition-related and other deferred revenue | 922 | 3 | 2,717 | 89 | ||||||||||||||||||
Amortization of intangible assets | 5,001 | 5,447 | 17,648 | 19,498 | ||||||||||||||||||
Stock-based compensation expense | 8,655 | 3,861 | 29,697 | 18,178 | ||||||||||||||||||
Acquisition related expense | 1,156 | (94 | ) | 3,269 | (350 | ) | ||||||||||||||||
Litigation related expense | 330 | 399 | 661 | 10,158 | ||||||||||||||||||
Stock registration costs | - | 7 | - | 675 | ||||||||||||||||||
Non-GAAP operating income | $ | 20,804 | $ | 17,286 | $ | 75,551 | $ | 59,696 | ||||||||||||||
Non-GAAP operating margin | 21.6 | % | 20.2 | % | 19.9 | % | 18.5 | % |
Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||||||
For the Three and Twelve Months Ended December 31, 2013 and 2012 | |||||||||||||||||||||||
(unaudited, in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Non-GAAP net income: | |||||||||||||||||||||||
Net income (GAAP) | $ | 2,178 | $ | 3,722 | $ | 20,692 | $ | 5,183 | |||||||||||||||
Acquisition-related and other deferred revenue | 922 | 3 | 2,717 | 89 | |||||||||||||||||||
Amortization of intangible assets | 5,001 | 5,447 | 17,648 | 19,498 | |||||||||||||||||||
Stock-based compensation expense | 8,655 | 3,861 | 29,697 | 18,178 | |||||||||||||||||||
Acquisition related expense | 1,156 | (94 | ) | 3,269 | (350 | ) | |||||||||||||||||
Litigation related expense | 330 | 399 | 661 | 10,158 | |||||||||||||||||||
Loss on disposal of assets | 4 | 181 | 314 | 568 | |||||||||||||||||||
Stock registration costs | - | 7 | - | 675 | |||||||||||||||||||
Subtotal of tax deductible items | 16,068 | 9,804 | 54,306 | 48,816 | |||||||||||||||||||
Tax impact of tax deductible items(1) | (6,427 | ) | (3,922 | ) | (21,722 | ) | (19,526 | ) | |||||||||||||||
Tax expense resulting from applying effective tax rate(2) | 572 | 620 | (8,403 | ) | 458 | ||||||||||||||||||
Non-GAAP net income | $ | 12,391 | $ | 10,224 | $ | 44,873 | $ | 34,931 | |||||||||||||||
Non-GAAP net income per share - diluted | $ | 0.16 | $ | 0.14 | $ | 0.59 | $ | 0.47 | |||||||||||||||
Weighted average shares - diluted | 77,108 | 74,960 | 76,187 | 74,002 | |||||||||||||||||||
Weighted average effect of dilutive securities | - | - | - | - | |||||||||||||||||||
Non-GAAP weighted average shares - diluted | 77,108 | 74,960 | 76,187 | 74,002 | |||||||||||||||||||
(1) |
Reflects the removal of the tax benefit associated with the amortization of intangible assets, stock-based compensation expense, Acquisition related deferred revenue adjustment and Acquisition related expense. |
||||||||||||||||||||||
(2) |
Represents adjusting to a normalized effective tax rate of 40%. | ||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Annualized Non-GAAP on demand revenue per average on demand unit: | |||||||||||||||||||||||
On demand revenue (GAAP) | $ | 92,081 | $ | 81,771 | $ | 362,312 | $ | 306,400 | |||||||||||||||
Acquisition-related and other deferred revenue | 922 | 3 | 2,717 | 89 | |||||||||||||||||||
Non-GAAP on demand revenue | $ | 93,003 | $ | 81,774 | $ | 365,029 | $ | 306,489 | |||||||||||||||
Ending on demand units | 9,022 | 8,113 | 9,022 | 8,113 | |||||||||||||||||||
Average on demand units | 8,876 | 7,968 | 8,615 | 7,625 | |||||||||||||||||||
Annualized Non-GAAP on demand revenue per average on demand unit | $ | 41.91 | $ | 41.05 | $ | 56.50 | $ | 40.20 | |||||||||||||||
Annual customer value of on demand revenue(1) | $ | 378,131 | $ | 333,039 | |||||||||||||||||||
(1) |
This metric represents management's estimate for the current annual run-rate value of on demand customer relationships. This metric is calculated by multiplying ending on demand units times annualized Non-GAAP on demand revenue per average on demand unit for the periods presented. |
CONTACT:
RealPage, Inc.
Rhett Butler, 972-820-3773
rhett.butler@realpage.com