EX-99.2 3 q42012earningsslidedeckf.htm 2012 EARNINGS SLIDE DECK q42012earningsslidedeckf
Velti FY 2012 1


 
This presentation contains forward-looking information about the Company’s business and financial outlook, including statements regarding financial guidance for the first quarter and fiscal year 2013; our expectations for revenue growth through 2016; and our expectations relating to free cash flow generation and growth rates through 2016. The achievement or success of the matters covered by such forward-looking statements involve risks and uncertainties that could cause our results to differ materially from these forward looking statements, including - but not limited to – risks concerning the timing of contingent payments to its acquired companies and achieve the benefits of our acquisitions, and our ability to manage our cash, obtain a waiver of its covenant violation on its credit facility, reduce DSOs and operating expenses, obtain a waiver of its covenant violation on its credit facility, add new and expand existing customer relationships, and expand into new markets and verticals. WWW.VELTI.COM SAFE HARBOR STATEMENT 2 FY 2012


 
Revenue, Margin, Adjusted EBITDA Revenue Breakdown by Type and Geography GAAP, Adjusted EBITDA & Adjusted Net Income reconciliation Comprehensive Receivables Q1 2013 and FY 2013 Guidance FY 2013-2016 Revenue Growth Guidance Free Cash Flow Contents 3 FY 2012


 
4 Q4 & FY 2012 Revenue Growth FY 2012 $189.2 $270.3 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 FY2011 FY2012 Revenue FY 2011 vs. FY 2012 ($ millions) + 43% $87.1 $97.5 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 Q4 2011 Q4 2012 Revenue Q4 2011 vs. Q4 20 2 ($ millions) + 12%


 
5 FY 2012 Revenue & Revenue Less 3rd Party Costs Mix FY 2012 $159.4 $216.0 $29.8 $54.3 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 FY2011 FY2012 Revenue Mix FY 2011 vs. FY 2012 ($ millions) Marketing Advertising 16% 20% 84% 80% $270.3 $189.2 $130.5 $165.7 $4.8 $13.3 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 FY2011 FY2012 R venue Less 3rd Party Costs Mix FY 2011 vs. FY 2012 ($ millions) Marketing Advertising 4% 7% 96% 93% $135.3 $178.9 Note: Totals may not add due to rounding


 
6 Q4 & FY 2012 Adjusted EBITDA FY 2012 $43.1 $25.1 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q4 2011 Q4 2012 Adjusted EBITDA Q4 2011 vs. Q4 2012 ($ millions) (42%) $53.1 $42.6 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 FY2011 FY2012 Adjusted EBITDA FY 201 vs. FY 2012 ($ millions) (20%) Note: Adjusted EBITDA defined as net income (loss) plus (i) income tax expense (benefit) (ii), interest expense, (iii) loss (gain) from equity method investments, (iv) foreign exchange (gains) losses, (v) depreciation and amortization, (vi) non-cash share based compensation, (vii) non-recurring and acquisition related expenses and (viii) “other” income or expense.


 
7 Annual Growth Summary Note: Adjusted EBITDA defined as net income (loss) plus (i) income tax expense (benefit), (ii) interest expense, (iii) loss from equity method investments, (iv) foreign exchange (gains) losses, (v) depreciation and amortization, (vi) non-cash share based compensation, (vii) non-recurring expenses and (viii) “other” income or expense. FY 2012 $49.5 $90.0 $116.3 $189.2 $270.3 $16.7 $62.3 $79.6 $135.3 $178.9 $5.8 $24.7 $27.2 $53.1 $42.6 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 2008 2009 2010 2011 2012 Key Annual Metrics ($ millions) Revenue Revenue Less 3rd Party Costs Adj EBITDA


 
8 FY 2012 Geographic Breakdown of Revenue FY 2012 $86.3 $97.8 $37.8 $74.7$41.1 $63.6 $24.0 $34.2 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 FY 2011 FY 2012 Revenue by Region FY 2011 vs. FY 2012 ($ millions) Europe w/o UK UK Americas Asia/Africa + 43% + 55% + 98% $189.2 $270.3 + 13% 36% 28% 23% 13% % Contribution to Revenue by Region FY 2012 Europe w/o UK UK Americas Asia/Africa


 
9 FY 2012 Breakdown of Revenue by Revenue Type FY 2012 74% 19% 7% FY 2011 SaaS License Revenue Managed Services 76% 8% 16% FY 2012 SaaS License Revenu Managed Services Note: Results may not add to 100% due to rounding.


 
10 Q4/FY 2012 US GAAP To Pro Forma Reconciliation FY 2012 in (000's) GAAP Share- Based Comp Excluding Share-Based Comp Other Pro Forma items Pro Forma GAAP Share-Based Comp Excluding Share-Based Comp Other Pro Forma items Pro Forma GAAP Share-Based Comp Excluding Share-Based Comp Other Pro Forma items Pro Forma GAAP Share-Based Comp Excluding Share-Based Comp Other Pro Forma items Pro Forma Software as a service (SaaS) revenue $ 46,768 $ - $ 46,768 $ - $ 46,768 $ 48,946 $ - $ 48,946 $ - $ 48,946 $ 48,540 $ - $ 48,540 $ - $ 48,540 $ 59,956 $ - $ 59,956 $ - $ 59,956 License revenue 1,505 - 1,505 - 1,505 2,898 - 2,898 - 2,898 5,229 - 5,229 - 5,229 12,581 - 12,581 - 12,581 Managed Services 3,520 - 3,520 - 3,520 6,847 - 6,847 - 6,847 8,624 - 8,624 - 8,624 24,930 - 24,930 - 24,930 Total revenue 51,793 - 51,793 - 51,793 58,691 - 58,691 - 58,691 62,393 - 62,393 - 62,393 97,467 - 97,467 - 97,467 Costs and expenses: Third-party costs 16,862 - 16,862 - 16,862 20,979 - 20,979 - 20,979 22,701 - 22,701 - 22,701 30,862 - 30,862 - 30,862 Datacenter and direct project costs 7,892 (972) 6,920 (100) 6,820 7,585 (778) 6,807 (100) 6,707 6,894 (775) 6,119 (100) 6,019 7,595 (1,196) 6,399 (100) 6,299 General and administrative expenses 15,132 (3,660) 11,472 (1,075) 10,397 16,140 (3,113) 13,027 (1,247) 11,780 15,516 (2,601) 12,915 (1,307) 11,608 21,408 (2,549) 18,859 (645) 18,214 Sales and marketing expenses 12,753 (2,392) 10,361 (195) 10,166 12,520 (2,117) 10,403 (195) 10,208 13,193 (1,925) 11,268 (195) 11,073 16,041 (2,811) 13,230 (495) 12,735 Research and development expenses 4,684 (1,584) 3,100 (160) 2,940 4,336 (1,336) 3,000 (160) 2,840 5,724 (1,277) 4,447 (160) 4,287 6,492 (2,110) 4,382 (160) 4,222 Acquisition related and other charges 2,197 - 2,197 (2,197) - 2,131 - 2,131 (2,131) - 5,622 - 5,622 (5,622) - - - - - Impairment of intangible assets - - - - - - - - - - - - - - - 16,902 - 16,902 (16,902) - Loss from disposal of assets - - - - - - - - - - 9,626 - 9,626 (9,626) - 906 - 906 (906) - Depreciation and amortization 7,269 - 7,269 (2,637) 4,632 8,022 - 8,022 (2,587) 5,435 8,707 - 8,707 (2,717) 5,990 9,948 - 9,948 (3,031) 6,917 Total costs and expenses 66,789 (8,608) 58,181 (6,364) 51,817 71,713 (7,344) 64,369 (6,420) 57,949 87,983 (6,578) 81,405 (19,727) 61,678 110,154 (8,666) 101,488 (22,239) 79,249 Income (loss) from operations (14,996) 8,608 (6,388) 6,364 (24) (13,022) 7,344 (5,678) 6,420 742 (25,590) 6,578 (19,012) 19,727 715 (12,687) 8,666 (4,021) 22,239 18,218 Interest expense, net (743) - (743) (743) (416) - (416) - (416) (257) - (257) - (257) (414) - (414) - (414) Gain (loss) from foreign currency transactions 1,375 - 1,375 (1,375) - (2,449) - (2,449) 2,449 - 3,210 - 3,210 (3,210) - (141) - (141) 141 - Other Expense 6,174 - 6,174 (6,028) 146 (187) - (187) - (187) (33) - (33) - (33) (78) - (78) - (78) Income (loss) before income taxes, investment in associates and non-controlling interests (8,190) 8,608 418 (1,039) (621) (16,074) 7,344 (8,730) 8,869 139 (22,670) 6,578 (16,092) 16,517 425 (13,320) 8,666 (4,654) 22,380 17,726 Income tax (expense) benefit (278) - (278) - (278) (862) - (862) - (862) (46) - (46) - (46) 8,832 - 8,832 - 8,832 Gain or (loss) from equity investments (371) - (371) 133 (238) (785) - (785) 569 (216) (2,023) - (2,023) (151) (2,174) (576) - (576) 45 (531) Net income (loss) (8,839) 8,608 (231) (906) (1,137) (17,721) 7,344 (10,377) 9,438 (939) (24,739) 6,578 (18,161) 16,366 (1,795) (5,064) 8,666 3,602 22,425 26,027 Net loss attributable to non-controlling interest (21) - (21) - (21) (22) - (22) - (22) (23) - (23) - (23) 119 - 119 - 119 Net income (loss) attributable to Velti (8,818)$ 8,608$ (210)$ (906)$ (1,116)$ (17,699)$ 7,344$ (10,355)$ 9,438$ (917)$ (24,716)$ 6,578$ (18,138)$ 16,366$ (1,772)$ (5,183)$ 8,666$ 3,483$ 22,425$ 25,908$ Net income (loss) attributable to Velti per share: Basic (and Diluted if Net Loss) (0.14) 0.14 (0.00) (0.01) (0.02) (0.28) 0.11 (0.16) 0.15 (0.01) (0.38) 0.10 (0.28) 0.10 (0.18) (0.08) 0.13 0.06 0.34 0.40 Diluted (Assuming we have net income) (0.14) 0.13 (0.00) (0.01) (0.02) (0.27) 0.11 (0.16) 0.14 (0.01) (0.37) 0.10 (0.27) 0.10 (0.17) (0.08) 0.13 0.05 0.34 0.39 Weighted average number of shares outstanding: Basic (and Diluted if Net Loss) 61,816 61,816 61,816 61,816 61,816 63,916 63,916 63,916 63,916 63,916 64,684 64,684 64,684 64,684 64,684 65,223 65,223 65,223 65,223 65,223 Diluted 63,949 63,949 63,949 63,949 63,949 65,779 65,779 65,779 65,779 65,779 66,176 66,176 66,176 66,176 66,176 65,995 65,995 65,995 65,995 65,995 EBITDA (7,727)$ 8,608$ 881$ 3,727$ 4,608$ (5,000)$ 7,344$ 2,344$ 3,833$ 6,177$ (16,883)$ 6,578$ (10,305)$ 17,010$ 6,705$ (2,739)$ 8,666$ 5,927$ 19,208$ 25,135$ 3/31/2012 6/30/2012 9/30/2012 12/31/2012


 
11 Consolidated Statement of Operations Q4 2012 3-Month Period Ended: 3-Month Period Ended: 3-Month Period Ended: March 31, 2010 June 30, 2010 Sept. 30, 2010 Dec. 31, 2010 FY 2010 March 31, 2011 June 30, 2011 Sept. 30, 2011 Dec. 31, 2011 FY 2011 March 31, 2012 June 30, 2012 Sept. 30, 2012 Dec. 31, 2012 FY 2012 Software as a service (SaaS) revenue $ 7,573 $ 13,788 $ 14,987 $ 40,854 $ 77,202 $ 23,279 $ 27,550 $ 25,545 $ 62,650 $ 139,024 $ 46,768 $ 48,946 $ 48,540 $ 59,956 $ 204,210 License revenue 4,881 5,540 3,883 12,282 26,586 2,791 4,077 10,091 19,746 36,705 1,505 2,898 5,229 12,581 22,213 Managed Services 3,777 2,601 1,752 4,351 12,481 3,480 2,731 2,552 4,710 13,473 3,520 6,847 8,624 24,930 43,921 Total revenue 16,231 21,929 20,622 57,487 116,269 29,550 34,358 38,188 87,106 189,202 51,793 58,691 62,393 97,467 270,344 Costs and expenses: Third-party costs 4,024 9,059 4,997 18,578 36,658 10,633 10,717 13,746 18,805 53,901 16,862 20,979 22,701 30,862 91,404 Datacenter and direct project costs (1) 1,333 1,467 1,570 1,942 6,312 2,951 5,140 4,127 5,734 17,952 7,892 7,585 6,894 7,595 29,966 General and administrative expenses (1) 5,371 3,909 5,882 7,322 22,484 9,468 14,409 10,260 11,121 45,258 15,132 16,140 15,516 21,408 68,196 Sales and marketing expenses (1) 4,689 6,263 6,179 5,918 23,049 7,993 11,586 7,785 10,369 37,733 12,753 12,520 13,193 16,041 54,507 Research and development expenses (1) 1,282 1,701 1,656 3,201 7,840 2,830 3,563 2,814 3,853 13,060 4,684 4,336 5,724 6,492 21,236 Acquisition related and other charges - - - 5,364 5,364 1,461 6,142 - 2,787 10,390 2,197 2,131 5,622 - 9,950 Impairment of intangible assets - - - 16,902 16,902 Loss from disposal of assets - - - - - - - - - - - - 9,626 906 10,532 Depreciation and amortization 2,569 2,684 2,843 4,035 12,131 3,754 4,108 5,788 7,250 20,900 7,269 8,022 8,707 9,948 33,946 Total costs and expenses 19,268 25,083 23,127 46,360 113,838 39,090 55,665 44,520 59,919 199,194 66,789 71,713 87,983 110,154 336,639 Income (loss) from operations (3,037) (3,154) (2,505) 11,127 2,431 (9,540) (21,307) (6,332) 27,187 (9,992) (14,996) (13,022) (25,590) (12,687) (66,295) Interest expense, net (1,062) (1,305) (2,826) (2,876) (8,069) (3,483) (1,398) (1,482) (1,026) (7,389) (743) (416) (257) (414) (1,830) Gain (loss) from foreign currency transactions (861) (1,195) 1,004 (674) (1,726) 378 (2,181) 8,777 (774) 6,200 1,375 (2,449) 3,210 (141) 1,995 Other Expense - - - - - (76) 162 (120) (15) (49) 6,174 (187) (34) (78) 5,875 Income (loss) before income taxes, investment in associates and non-controlling interests (4,960) (5,654) (4,327) 7,577 (7,364) (12,721) (24,724) 843 25,372 (11,230) (8,190) (16,074) (22,671) (13,320) (60,255) Income tax (expense) benefit 212 228 (1,110) (3,101) (3,771) (2,237) (721) (482) (368) (3,808) (278) (862) (46) 8,832 7,646 Gain or (loss) from equity investments (499) (978) (630) (2,508) (4,615) (965) 320 262 183 (200) (371) (785) (2,023) (576) (3,755) Net income (loss) (5,247) (6,404) (6,067) 1,968 (15,750) (15,923) (25,125) 623 25,187 (15,238) (8,839) (17,721) (24,740) (5,064) (56,364) Net loss attributable to non-controlling interest (24) (17) (19) (21) (81) (51) (49) 25 205 130 (21) (22) (23) 119 53 Net income (loss) attributable to Velti $ (5,223) $ (6,387) $ (6,048) $ 1,989 $ (15,669) $ (15,872) $ (25,076) $ 598 $ 24,982 $ (15,368) $ (8,818) $ (17,699) $ (24,717) $ (5,183) $ (56,417) Net income (loss) attributable to Velti per share: Basic (and Diluted if Net Loss) $ (0.14) $ (0.17) $ (0.16) $ 0.05 $ (0.41) $ (0.34) $ (0.47) $ 0.01 $ 0.40 $ (0.27) $ (0.14) $ (0.28) $ (0.38) $ (0.08) $ (0.88) Diluted (Assuming we have net income) $ (0.14) $ (0.17) $ (0.16) $ 0.05 $ (0.41) $ (0.34) $ (0.47) $ 0.01 $ 0.40 $ (0.27) $ (0.14) $ (0.28) $ (0.38) $ (0.08) $ (0.88) Weighted average number of shares outstanding: Basic 37,530 37,704 38,160 38,297 37,933 47,099 53,047 61,595 61,718 55,865 61,816 63,916 64,684 65,223 63,910 Diluted 37,530 37,704 38,160 39,551 37,933 47,099 53,047 63,926 62,921 56,748 63,949 65,779 66,176 65,995 65,475 (1) Includes share-based compensation as follows: Datacenter and direct project costs $ 67 $ 107 $ 183 $ 87 $ 443 $ 628 $ 1,751 $ 601 $ 568 $ 3,548 $ 972 $ 778 $ 775 $ 1,196 $ 3,721 General and administrative expenses 224 498 1,010 880 2,613 3,244 5,632 1,342 1,516 11,734 3,660 3,113 2,601 2,549 11,923 Sales and marketing expenses 485 678 1,388 (321) 2,231 1,876 4,019 1,127 1,266 8,288 2,392 2,117 1,925 2,811 9,245 Research and development expenses 149 199 339 299 985 814 1,889 703 650 4,056 1,584 1,336 1,277 2,110 6,307 Total Share-based compensation $ 925 $ 1,482 $ 2,920 $ 945 $ 6,272 $ 6,562 $ 13,291 $ 3,773 $ 4,000 $ 27,626 $ 8,608 $ 7,344 $ 6,578 $ 8,666 $ 31,196


 
12 Consolidated Statement of Operations FY 2012 3-Month Period Ended: 3-Month Period Ended: 3-Month Period Ended: March 31, 2010 June 30, 2010 Sept. 30, 2010 Dec. 31, 2010 FY 2010 March 31, 2011 June 30, 2011 Sept. 30, 2011 Dec. 31, 2011 FY 2011 March 31, 2012 June 30, 2012 Sept. 30, 2012 Dec. 31, 2012 FY 2012 Adjusted Net Income (Loss) & Adjusted EBITDA Reconcilation Net loss before non-controlling interest $ (5,247) $ (6,404) $ (6,067) $ 1,968 $ (15,750) $ (15,923) $ (25,125) $ 623 $ 25,187 $ (15,238) $ (8,839) $ (17,721) $ (24,740) $ (5,064) $ (56,364) Adjustments: Foreign exchange (gains) losses 861 1,195 (1,004) 674 1,726 (378) 2,181 (8,777) 774 (6,200) (1,375) 2,449 (3,210) 141 (1,995) Non-cash share based compensation 925 1,482 2,920 945 6,272 6,562 13,291 3,773 4,000 27,626 8,608 7,344 6,578 8,666 31,196 Non-recurring and acquisition-related expenses - - - 6,364 6,364 2,282 6,995 2,404 3,141 14,822 (2,301) 3,833 7,384 1,400 10,316 Impairment of intangible assets 1,500 1,500 16,902 16,902 (Gain) Loss from equity method investments - - - 2,776 2,776 1,458 (169) 109 490 1,888 133 569 (151) 45 596 Loss from disposal of assets - 9,626 906 10,532 Depreciation and amortization - acquisition related 276 280 295 784 1,635 795 797 795 2,220 4,607 2,637 2,587 2,717 3,031 10,972 Adjusted net income (loss) $ (3,185) $ (3,447) $ (3,856) $ 13,511 $ 3,023 $ (5,204) $ (2,030) $ (1,073) $ 37,312 $ 29,005 $ (1,137) $ (939) $ (1,796) $ 26,027 $ 22,155 (Gain) loss from equity method investments - other 499 978 630 (268) 1,839 (493) (151) (371) (673) (1,688) 238 216 2,174 531 3,159 Depreciation and amortization - other 2,293 2,404 2,548 3,251 10,496 2,959 3,311 4,993 5,030 16,293 4,632 5,435 5,990 6,917 22,974 Income tax expense (benefit) (212) (228) 1,110 3,101 3,771 2,237 721 482 368 3,808 278 862 46 (8,832) (7,646) Interest expense, net 1,062 1,305 2,826 2,876 8,069 1,704 1,398 1,482 1,026 5,610 743 416 257 414 1,830 Other (income) expense - - - - - 76 (162) 120 15 49 (146) 187 34 77 152 Adjusted EBITDA $ 457 $ 1,012 $ 3,258 $ 22,471 $ 27,198 $ 1,279 $ 3,087 $ 5,633 $ 43,078 $ 53,077 $ 4,608 $ 6,177 $ 6,705 $ 25,134 $ 42,624 Summary Data Total Revenue 16,231 21,929 20,622 57,487 116,269 29,550 34,358 38,188 87,106 189,202 51,793 58,691 62,393 97,467 270,344 Third-party costs 4,024 9,059 4,997 18,578 36,658 10,633 10,717 13,746 18,805 53,901 16,862 20,979 22,701 30,862 91,404 Total revenue less: third party costs 12,207 12,870 15,625 38,909 79,611 18,917 23,641 24,442 68,301 135,301 34,931 37,712 39,692 66,605 178,940 % Margin 75% 59% 76% 68% 68% 64% 69% 64% 78% 72% 67% 64% 64% 68% 66% Pro Forma Operating Expenses Datacenter and direct project costs 1,266$ 1,360$ 1,387$ 1,785$ 5,798$ 2,390$ 3,389$ 3,526$ 5,166$ 14,471$ 6,820$ 6,707$ 6,019$ 6,299$ 25,845$ General and administrative expenses 5,147$ 3,411$ 4,872$ 6,031$ 19,461$ 6,617$ 7,924$ 6,514$ 8,178$ 29,233$ 10,397$ 11,780$ 11,608$ 18,214$ 51,999$ Sales and marketing expenses 4,204$ 5,585$ 4,791$ 5,879$ 20,459$ 6,462$ 7,567$ 6,658$ 8,847$ 29,534$ 10,166$ 10,208$ 11,073$ 12,735$ 44,182$ Research and development expenses 1,133$ 1,502$ 1,317$ 2,743$ 6,695$ 2,169$ 1,674$ 2,111$ 3,032$ 8,986$ 2,940$ 2,840$ 4,287$ 4,222$ 14,289$ Total 11,750$ 11,858$ 12,367$ 16,438$ 52,413$ 17,638$ 20,554$ 18,809$ 25,223$ 82,224$ 30,323$ 31,535$ 32,987$ 41,470$ 136,315$ Adjusted EBITDA Margin 3% 5% 16% 39% 23% 4% 9% 15% 49% 28% 9% 11% 11% 26% 16%


 
13 Comprehensive Receivables FY 2012 Quarter Ended December 31, 2012 Quarter Ended September 30, 2012 Quarter Ended June 30, 2012 Actuals, Incl. Divested Assets (1) Adjustments (2) Pro Forma Actuals (3) Adjustments (4) Pro Forma Actuals Adjustments Pro Forma Accrued Contract Receivables $ 133 $ (27) $ 106 ## $ 72 $ (10) $ 62 ## $ 75 $ (16) $ 59 Trade Receivables $ 150 $ (22) $ 128 ## $ 110 $ (13) $ 96 ## $ 108 $ (9) $ 99 Other Receivables & Current Assets $ 8 $ (8) $ 0 ## $ 58 $ (36) $ 22 ## $ 54 $ (19) $ 35 Comprehensive Receivables $ 291 $ (57) $ 234 $ 239 $ (59) $ 180 $ 237 $ (44) $ 193 ÷ Trailing Twelve Months Revenue (5) $ 270 $ 268 $ 261 X Days in Period 360 360 360 = Comprehensive Days Sales Outstanding 311 242 266 (1) Actuals for the quarter ended December 31, 2012 are per U.S. GAAP and include receivables associated w/divested assets; (2) Adjustments for the quarter ended December 31, 2012 include customary adjustments to exclude VAT receivables, government grant receivables, income tax receivables, and other current assets not associated with revenue, and also exclude all receivables associated with the divested assets; note also that "checks receivable" have been re-classified from other receivables & current assets to trade receivables in Q4 2012; (3) Actuals for the quarter ended September 30, 2012 are per U.S. GAAP; all components of comprehensive receivables associated with the divested assets are contained within assets held for sale, which is not a component of comprehensive receivables; (4) Adjustments include customary adjustments to exclude VAT receivables, government grant receivables, income tax receivables, and other current assets not associated with revenue, and also exclude $5.1 million of receivables associated with the termination of our factoring arrangement; (5) Includes revenue of acquired companies as though they had been consolidated for the entire period.


 
14 1st Quarter and Fiscal Year 2013 Guidance FY 2012 Qtr. End. March 31 st FYE Dec. 31st ($ in millions) Low High Low High Revenue Guidance $ 40.0 $ 44.0 $ 255.0 $ 280.0 Adjusted EBITDA Guidance $ (17.0) $ (15.0) $ 5.0 $ 15.0 Free Cash Flow Guidance, Exclusive of Acquisition-related Payments N/A N/A $ 5.0 $ 15.0


 
15 Forward Growth Rates FY 2012 $267.5 $347.8 $452.1 $587.7 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 2013 2014 2015 2016 Revenue Growth Forecast 2012- 2016 ($ millions) • 2013 revenue is midpoint of guidance • Average revenue growth rate of 25 – 35 percent per year through 2016


 
FY 2012 FCF and FY 2013 FCF Growth Summary FY 2012 • 2013 FCF represents midpoint of guidance • 2012 Investing cash flow of $60.4M is exclusive of $9.5M of cash acquisition-related payments • +$58.9M FCF swing from 2012 to 2013 16 $11.5 ($60.4) ($48.9) $30.0 ($20.0) $10.0 -100.0 -80.0 -60.0 -40.0 -20.0 0.0 20.0 40.0 2012: Op. CF Investing CF 2012: FCF 2013: Op. CF Investing CF 2013: FCF FCF Growth 2012 - 2013 +$58.9 FCF Growth


 
FY 2012 – 2016 FCF Growth Summary FY 2012 • FCF generation guidance of approximately $40M in 2014 • FCF growth rate of approximately 40% per year through 2016 -$48.9 $10.0 $40.0 $56.0 $78.4 -$60.0 -$40.0 -$20.0 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 2012 2013 2014 2015 2016 FCF Growth 2012 - 2016 17