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): August 6, 2014
FLEETMATICS GROUP PLC
(Exact name of registrant as specified in its charter)
Ireland | 001-35678 | 27-3112485 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Block C, Cookstown Court Belgard Road Tallaght Dublin 24 Ireland |
||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: +353 (1) 413 1250
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:
¨ | 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.
Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for the registrant for the second quarter of fiscal year 2014 and forward-looking statements relating to 2014, as presented in a press release dated as of August 6, 2014. The information in this Current Report on Form 8-K is furnished under Item 2.02 - Results of Operations and Financial Condition. Such information, including the exhibits attached hereto, shall not be deemed filed for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
Press release dated as of August 6, 2014 (Exhibit 99.1).
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, thereunto duly authorized.
FLEETMATICS GROUP PLC | ||||||
Date: August 6, 2014 | By: | /s/ Stephen Lifshatz | ||||
Name: | Stephen Lifshatz | |||||
Title: | Chief Financial Officer Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer) |
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Press Release dated August 6, 2014 |
Exhibit 99.1
Fleetmatics Announces Second Quarter 2014 Financial Results
Reports record revenue of $55.3 million, up 30% year-over-year
| GAAP EPS of $0.08; non-GAAP adjusted EPS of $0.18 |
| Adjusted EBITDA of $15.0 million |
| Generated operating cash flow of $13.6 million, free cash flow of $2.4 million |
| Over 499,000 total subscribed vehicles attained |
Dublin, Ireland and Boston, Massachusetts, August 6, 2014 Fleetmatics Group PLC (NYSE: FLTX), a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as software-as-a-service (SaaS), today announced financial results for its second quarter ended June 30, 2014.
We are pleased to report another solid quarter and a great first half of the year, growing our revenues by 30% and our subscriber base by 29% year-over-year, while continuing to be a market leader in the fleet management space, stated Jim Travers, Chairman and Chief Executive Officer of Fleetmatics. During the quarter, our ability to meet or exceed our revenue and profitability expectations was driven by solid execution by our team, particularly to SMB customers. The combination of the recent introduction of our new platform, new product offering, and our international expansion positions Fleetmatics to increase market share worldwide.
Second Quarter 2014 Financial Highlights
| Revenue: Total revenue for the second quarter was $55.3 million, an increase of 30.0% compared to $42.5 million for the second quarter of 2013. |
| Gross Profit: GAAP gross profit for the second quarter was $40.7 million, compared to $31.7 million for the second quarter of 2013. GAAP gross margin was 73.7% compared to 74.5% for the same period in 2013. Non-GAAP gross profit, which excludes share-based compensation and amortization of intangible assets, was $41.2 million for the quarter compared to $31.8 million in the year ago period. Non-GAAP gross margin was 74.5% for the second quarter of 2014, compared to 74.9% during the same period last year. |
| Operating Income: GAAP operating income for the second quarter was $4.6 million, compared to $8.6 million for the second quarter of 2013. Non-GAAP operating income, which excludes share-based compensation, amortization of intangible assets and other items as defined in Non-GAAP Financial Measures, was $8.9 million, compared to $10.9 million for the second quarter of 2013. |
| Net Income: GAAP net income for the second quarter was $3.2 million, compared to $5.7 million for the same period last year. GAAP net income per share for the second quarter was $0.08 based on 38.4 million weighted-average diluted shares outstanding, compared to $0.16 for the same period last year, based on 36.4 million weighted-average diluted shares outstanding, for the same period last year. |
Non-GAAP adjusted earnings, which excludes share-based compensation, amortization of intangible assets and other items as defined below in Non-GAAP Financial Measures, was $6.8 million for the second quarter, compared to $8.3 million for the second quarter of 2013. Non-GAAP adjusted earnings per share for the second quarter was $0.18 per share based on 38.4 million weighted-average diluted shares outstanding compared to $0.23 per share, based on 36.4 million weighted-average diluted shares outstanding for the same period last year.
| Adjusted EBITDA: Adjusted EBITDA for the second quarter was $15.0 million, compared to $14.2 million for the second quarter of 2013. Adjusted EBITDA margin was 27.2% for the second quarter of 2014, compared to a 33.5% margin for the same period last year. Adjusted EBITDA is defined as net income (loss) plus (benefit) provision for income taxes; interest (income) expense, net; foreign currency transaction (gain) loss, net; depreciation and amortization of property and equipment; amortization of capitalized in-vehicle devices owned by customers; amortization of intangible assets; share-based compensation; and other items as defined below in Non-GAAP Financial Measures. |
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading Non-GAAP Financial Measures.
| Balance Sheet: As of June 30, 2014, Fleetmatics had cash of $155.5 million, an increase of $7.3 million since March 31, 2014. |
During the second quarter of 2014, the Company generated $13.6 million in net cash from operations and invested $11.2 million in purchases of property and equipment and capitalization of internally developed software, resulting in free cash flow of positive $2.4 million. During the second quarter of 2013, the Company generated $11.1 million in net cash from operations and invested $9.5 million in capital expenditures and capitalization of software, resulting in free cash flow of positive $1.6 million.
Second Quarter 2014 Operating Highlights
| Fleetmatics ended the second quarter of 2014 with over 499,000 active vehicles under subscription, up 28.6% compared to over 388,000 during the second quarter of 2013. |
| Quarterly net churn during the second quarter of 2014 was 1.1%, compared to 1.3% during the second quarter of 2013, which excludes the impact of a large enterprise customer. An explanation of this measure is included below under the heading Non-GAAP Financial Measures. |
| Fleetmatics acquired Florence, Italy-based KKT Srl, the developer of Routist, a SaaS-based, intelligent vehicle routing solution for businesses looking to optimize the utilization of their fleets and mobile resources. |
Financial Outlook
As of August 6, 2014, Fleetmatics is providing guidance for the third quarter of 2014 and full year 2014 as follows:
Third Quarter 2014 Guidance: Total revenue is expected to be in the range of $58.2 million to $59.5 million. Adjusted EBITDA is expected to be in the range of $16.0 million to $17.0 million. Non-GAAP adjusted earnings per share is expected to be in the range of $0.21 to $0.23 based on approximately 38.7 million weighted-average diluted shares outstanding.
Full Year 2014 Guidance: Total revenue is expected to be in the range of $228.0 million to $230.0 million, which represents growth of 29.1% year-over-year at the midpoint. Adjusted EBITDA is expected to be in the range of $62.8 million to $65.3 million. Non-GAAP diluted adjusted earnings per share is expected to be in the range of $0.82 to $0.87 based on approximately 38.7 million weighted-average diluted shares outstanding.
Quarterly Conference Call
Fleetmatics will host a conference call today at 5:00 p.m. EDT to discuss the Companys financial results for the second quarter 2014, its business outlook and other matters. To access this call, dial +1-888-481-2864 (United States), or +1-719-325-2381 (international), with conference ID #8681119. A live webcast of this conference call will also be available on the investor relations portion of the Companys website at ir.fleetmatics.com, and a replay will be archived on the website as well. A replay of this conference call will also be available through August 20, 2014, by dialing +1-877-870-5176 (United States), or +1-858-384-5517 (international). The recording access code is #8681119.
About Fleetmatics Group PLC
Fleetmatics Group PLC is a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as software-as-a-service (SaaS). Our solutions enable businesses to meet the challenges associated with managing local fleets, and improve the productivity of their mobile workforces, by extracting actionable business intelligence from real-time and historical vehicle and driver behavioral data.
Fleetmatics Groups intuitive, cost-effective Web-based solutions provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce, enabling them to reduce operating and capital costs, as well as increase revenue. An integrated, full-featured mobile workforce management product provides additional efficiencies related to job management by empowering the field worker and speeding the job completion process quote through payment. As of June 30, 2014, Fleetmatics served over 23,000 customers, with over 499,000 subscribed vehicles worldwide.
To learn more about Fleetmatics, visit www.fleetmatics.com.
Investor Contact:
ICR Inc. on behalf of Fleetmatics
Seth Potter, (646) 277-1230
fleetmatics@icrinc.com
Non-GAAP Financial Measures
In this release, Fleetmatics non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP adjusted earnings, non-GAAP diluted adjusted earnings per share, adjusted EBITDA and adjusted EBITDA margin are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Non-GAAP gross profit and non-GAAP gross margin exclude share-based compensation and amortization of intangible assets. Non-GAAP operating income, non-GAAP adjusted earnings and non-GAAP diluted adjusted earnings per share exclude share-based compensation; amortization of intangible assets; foreign currency transaction (gain) loss; certain non-recurring litigation and settlement costs; certain non-recurring secondary public offering costs; acquisition-related transaction costs; the tax effects related to these items, and the tax reserve component of the income tax provision.
Adjusted EBITDA is defined as net income (loss) plus (benefit) provision for income taxes; interest (income) expense, net; foreign currency transaction (gain) loss, net; depreciation and amortization of property and equipment; amortization of capitalized in-vehicle devices owned by customers; amortization of intangible assets; share-based compensation; certain non-recurring litigation and settlement costs; certain non-recurring secondary public offering costs; and acquisition-related transaction costs.
We calculate our net churn for a period by dividing (i) the number of vehicles under subscription added from existing customers less vehicles under subscription lost from existing customers over that period by (ii) the total vehicles under subscription at the beginning of that period. A positive net churn in each period means we added more vehicles from existing customers than we lost from those customers during the particular period.
Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the companys performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the companys financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
The Companys earnings press releases containing such non-GAAP reconciliations can be found on the Investors section of the Companys web site at ir.fleetmatics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our future market share and our expected financial results for the third quarter of 2014 and the full year of 2014. These forward-looking statements include, but are not limited to: plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as expects, anticipates, intends, plans, believes, seeks, estimates or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks associated with our ability to effectively and efficiently attract, sell to and retain SMB customers; our ability to attract customers on a cost-effective basis; our dependence on various lead generation programs; our ability to retain and increase sales to our existing customers; our ability to successfully complete and integrate acquisitions; expectations regarding the widespread adoption of fleet management solutions; our ability to expand the sales of our products to customers located outside the U.S.; our ability to continue to compete in a highly fragmented market and the risk of future competitors by way of recent and future acquisitions or otherwise; keeping up with the rapid technological change required to remain competitive in our industry; our ability to migrate customers to newer technologies; and the impact of adverse economic conditions on information technology spending by SMB business, collection of our accounts receivable and other risks set forth under the caption Risk Factors in the Companys annual report on Form 10-K filed with the Securities and Exchange Commission on March 17, 2014, as updated by our subsequently filed quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
FLEETMATICS GROUP PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Subscription revenue |
$ | 55,268 | $ | 42,529 | $ | 107,165 | $ | 80,948 | ||||||||
Cost of subscription revenue |
14,534 | 10,834 | 27,280 | 20,831 | ||||||||||||
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Gross profit |
40,734 | 31,695 | 79,885 | 60,117 | ||||||||||||
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Operating expenses: |
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Sales and marketing |
22,049 | 13,600 | 40,411 | 26,201 | ||||||||||||
Research and development |
4,613 | 2,461 | 8,790 | 4,555 | ||||||||||||
General and administrative |
9,486 | 7,080 | 20,758 | 15,020 | ||||||||||||
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Total operating expenses |
36,148 | 23,141 | 69,959 | 45,776 | ||||||||||||
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Income from operations |
4,586 | 8,554 | 9,926 | 14,341 | ||||||||||||
Interest income (expense), net |
(210 | ) | (372 | ) | (373 | ) | (738 | ) | ||||||||
Foreign currency transaction gain (loss), net |
402 | (300 | ) | 354 | (656 | ) | ||||||||||
Other income (expense), net |
| | 41 | | ||||||||||||
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Income before income taxes |
4,778 | 7,882 | 9,948 | 12,947 | ||||||||||||
Provision for income taxes |
1,545 | 2,200 | 3,087 | 4,305 | ||||||||||||
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Net income |
$ | 3,233 | $ | 5,682 | $ | 6,861 | $ | 8,642 | ||||||||
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Net income per share: |
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Basic |
$ | 0.09 | $ | 0.16 | $ | 0.18 | $ | 0.25 | ||||||||
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Diluted |
$ | 0.08 | $ | 0.16 | $ | 0.18 | $ | 0.24 | ||||||||
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Weighted average ordinary shares outstanding: |
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Basic |
37,411,223 | 34,990,936 | 37,271,047 | 34,802,543 | ||||||||||||
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Diluted |
38,360,498 | 36,441,602 | 38,376,232 | 36,353,988 | ||||||||||||
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FLEETMATICS GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, 2014 |
December 31, 2013 |
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(Unaudited) | ||||||||
Assets |
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Current assets: |
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Cash |
$ | 155,473 | $ | 137,171 | ||||
Restricted cash |
| 64 | ||||||
Accounts receivable, net of allowances of $1,827 and $1,395 at June 30, 2014 and December 31, 2013, respectively |
14,717 | 20,240 | ||||||
Deferred tax assets |
6,746 | 6,505 | ||||||
Prepaid expenses and other current assets |
20,752 | 13,675 | ||||||
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Total current assets |
197,688 | 177,655 | ||||||
Property and equipment, net |
72,744 | 61,732 | ||||||
Goodwill |
30,161 | 28,706 | ||||||
Intangible assets, net |
7,714 | 7,765 | ||||||
Deferred tax assets, net |
1,009 | 1,282 | ||||||
Other assets |
10,561 | 9,399 | ||||||
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Total assets |
$ | 319,877 | $ | 286,539 | ||||
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Liabilities and Shareholders Equity |
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Current liabilities: |
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Accounts payable |
$ | 10,586 | $ | 9,952 | ||||
Accrued expenses and other current liabilities |
20,882 | 14,855 | ||||||
Deferred revenue |
24,099 | 21,163 | ||||||
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Total current liabilities |
55,567 | 45,970 | ||||||
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Deferred revenue |
10,931 | 9,029 | ||||||
Accrued income taxes |
3,245 | 2,094 | ||||||
Long-term debt |
23,750 | 23,750 | ||||||
Other liabilities |
4,758 | 3,888 | ||||||
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Total liabilities |
98,251 | 84,731 | ||||||
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Total shareholders equity |
221,626 | 201,808 | ||||||
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Total liabilities and shareholders equity |
$ | 319,877 | $ | 286,539 | ||||
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FLEETMATICS GROUP PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended June 30, |
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2014 | 2013 | |||||||
Cash flows from operating activities: |
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Net income |
$ | 6,861 | $ | 8,642 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization of property and equipment |
10,116 | 6,065 | ||||||
Amortization of capitalized in-vehicle devices owned by customers |
658 | 446 | ||||||
Amortization of intangible assets |
1,221 | 934 | ||||||
Amortization of deferred commissions, other deferred costs and debt discount |
3,791 | 2,989 | ||||||
Provision for (benefit from) deferred tax assets |
(284 | ) | (73 | ) | ||||
Provision for accounts receivable allowances |
985 | 697 | ||||||
Unrealized foreign currency transaction (gain) loss |
(388 | ) | 640 | |||||
Loss on disposal of property and equipment and other assets |
778 | 1,499 | ||||||
Share-based compensation |
6,427 | 2,205 | ||||||
Excess tax benefits on share-based awards |
(8,752 | ) | | |||||
Changes in operating assets and liabilities: |
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Accounts receivable |
4,677 | (3,094 | ) | |||||
Prepaid expenses and other current and long-term assets |
(3,219 | ) | (4,288 | ) | ||||
Accounts payable, accrued expenses and other current liabilities |
5,008 | 2,252 | ||||||
Accrued income taxes |
1,149 | 668 | ||||||
Deferred revenue |
4,822 | 3,614 | ||||||
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Net cash provided by operating activities |
33,850 | 23,196 | ||||||
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Cash flows from investing activities: |
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Purchases of property and equipment |
(18,390 | ) | (17,542 | ) | ||||
Capitalization of internal-use software costs |
(1,342 | ) | (904 | ) | ||||
Proceeds from sale of property and equipment |
41 | | ||||||
Payment for business acquired, net of cash acquired |
(2,228 | ) | | |||||
Net decrease in restricted cash |
64 | | ||||||
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Net cash used in investing activities |
(21,855 | ) | (18,446 | ) | ||||
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Cash flows from financing activities: |
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Payments of Term Loan |
| (625 | ) | |||||
Proceeds from exercise of stock options |
1,391 | 2,625 | ||||||
Taxes paid related to net share settlement of equity awards |
(3,150 | ) | | |||||
Excess tax benefits from share-based awards |
8,752 | | ||||||
Payments of previously accrued initial public offering costs |
| (1,329 | ) | |||||
Payments of capital lease obligations |
(365 | ) | (180 | ) | ||||
Payments of notes payable |
(179 | ) | | |||||
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Net cash provided by financing activities |
6,449 | 491 | ||||||
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Effect of exchange rate changes on cash |
(142 | ) | (119 | ) | ||||
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Net increase in cash |
18,302 | 5,122 | ||||||
Cash, beginning of period |
137,171 | 100,087 | ||||||
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Cash, end of period |
$ | 155,473 | $ | 105,209 | ||||
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Supplemental disclosure of cash flow information: |
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Cash paid for interest |
$ | 348 | $ | 658 | ||||
Cash paid (refunds received), net for income taxes |
$ | 742 | $ | 1,205 | ||||
Supplemental disclosure of non-cash financing and investing activities: |
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Acquisition of property and equipment and software through capital leases and note payable |
$ | 1,940 | $ | | ||||
Additions to property and equipment included in accounts payable or accrued expenses at the balance sheet dates |
$ | 2,433 | $ | 1,300 | ||||
Issuance of ordinary shares under employee share purchase plan |
$ | 441 | $ | |
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND OPERATING INCOME
(In thousands)
(Unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Gross Profit GAAP |
$ | 40,734 | $ | 31,695 | $ | 79,885 | $ | 60,117 | ||||||||
Share-based compensation |
172 | 101 | 319 | 143 | ||||||||||||
Amortization of intangible assets |
291 | 52 | 549 | 104 | ||||||||||||
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Gross Profit Non-GAAP |
$ | 41,197 | $ | 31,848 | $ | 80,753 | $ | 60,364 | ||||||||
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Subscription revenue |
$ | 55,268 | $ | 42,529 | $ | 107,165 | $ | 80,948 | ||||||||
Gross Margin Percentages: |
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GAAP |
73.7 | % | 74.5 | % | 74.5 | % | 74.3 | % | ||||||||
Non-GAAP |
74.5 | % | 74.9 | % | 75.4 | % | 74.6 | % | ||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating income GAAP |
$ | 4,586 | $ | 8,554 | $ | 9,926 | $ | 14,341 | ||||||||
Share-based compensation |
3,423 | 1,601 | 6,427 | 2,205 | ||||||||||||
Amortization of intangible assets |
627 | 467 | 1,221 | 934 | ||||||||||||
Secondary public offering costs |
| 256 | | 893 | ||||||||||||
Litigation and settlements |
97 | (72 | ) | 217 | 288 | |||||||||||
Acquisition-related transaction costs |
129 | 114 | 218 | 114 | ||||||||||||
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Operating income Non-GAAP |
$ | 8,862 | $ | 10,920 | $ | 18,009 | $ | 18,775 | ||||||||
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RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
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2014 | 2013 | 2014 | 2013 | |||||||||||||
Reconciliation of Net Income to Adjusted EBITDA: |
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Net income |
$ | 3,233 | $ | 5,682 | $ | 6,861 | $ | 8,642 | ||||||||
Provision for income taxes |
1,545 | 2,200 | 3,087 | 4,305 | ||||||||||||
Interest (income) expense, net |
210 | 372 | 373 | 738 | ||||||||||||
Foreign currency transaction (gain) loss, net |
(402 | ) | 300 | (354 | ) | 656 | ||||||||||
Depreciation and amortization of property and equipment |
5,813 | 3,073 | 10,116 | 6,065 | ||||||||||||
Amortization of capitalized in-vehicle devices owned by customers |
372 | 233 | 658 | 446 | ||||||||||||
Amortization of intangible assets |
627 | 467 | 1,221 | 934 | ||||||||||||
Share-based compensation |
3,423 | 1,601 | 6,427 | 2,205 | ||||||||||||
Secondary public offering costs |
| 256 | | 893 | ||||||||||||
Litigation and settlements |
97 | (72 | ) | 217 | 288 | |||||||||||
Acquisition-related transaction costs |
129 | 114 | 218 | 114 | ||||||||||||
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Adjusted EBITDA |
$ | 15,047 | $ | 14,226 | $ | 28,824 | $ | 25,286 | ||||||||
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Subscription revenue |
$ | 55,268 | $ | 42,529 | $ | 107,165 | $ | 80,948 | ||||||||
Adjusted EBITDA margin |
27.2 | % | 33.5 | % | 26.9 | % | 31.2 | % |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS AND EPS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income |
$ | 3,233 | $ | 5,682 | $ | 6,861 | $ | 8,642 | ||||||||
Amortization of intangible assets |
627 | 467 | 1,221 | 934 | ||||||||||||
Share-based compensation |
3,423 | 1,601 | 6,427 | 2,205 | ||||||||||||
Foreign currency transaction (gain) loss, net |
(402 | ) | 300 | (354 | ) | 656 | ||||||||||
Secondary public offering costs |
| 256 | | 893 | ||||||||||||
Litigation and settlements |
97 | (72 | ) | 217 | 288 | |||||||||||
Acquisition-related transaction costs |
129 | 114 | 218 | 114 | ||||||||||||
Tax effect of non-GAAP adjustments above at 15% |
(581 | ) | (400 | ) | (1,159 | ) | (764 | ) | ||||||||
Tax reserve component of income tax provision |
262 | 391 | 525 | 821 | ||||||||||||
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Adjusted earnings |
$ | 6,788 | $ | 8,339 | $ | 13,956 | $ | 13,789 | ||||||||
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Weighted average ordinary shares outstanding diluted |
38,360,498 | 36,441,602 | 38,376,232 | 36,353,988 | ||||||||||||
Non-GAAP adjusted EPS |
$ | 0.18 | $ | 0.23 | $ | 0.36 | $ | 0.38 | ||||||||
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FLEETMATICS GROUP PLC
RECONCILIATION TO NON-GAAP INCOME
(In thousands)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of subscription revenue |
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Share-based compensation |
$ | 172 | $ | 101 | $ | 319 | $ | 143 | ||||||||
Amortization of intangible assets |
291 | 52 | 549 | 104 | ||||||||||||
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Subtotal cost of subscription revenue |
463 | 153 | 868 | 247 | ||||||||||||
Sales and marketing |
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Share-based compensation |
1,329 | 560 | 2,502 | 803 | ||||||||||||
Amortization of intangible assets |
336 | 415 | 672 | 830 | ||||||||||||
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Subtotal sales and marketing |
1,665 | 975 | 3,174 | 1,633 | ||||||||||||
Research and development |
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Share-based compensation |
468 | 256 | 865 | 308 | ||||||||||||
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Subtotal research and development |
468 | 256 | 865 | 308 | ||||||||||||
General and administrative |
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Share-based compensation |
1,454 | 684 | 2,741 | 951 | ||||||||||||
Secondary public offering costs |
| 256 | | 893 | ||||||||||||
Litigation and settlements |
97 | (72 | ) | 217 | 288 | |||||||||||
Acquisition-related transaction costs |
129 | 114 | 218 | 114 | ||||||||||||
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Subtotal general and administrative |
1,680 | 982 | 3,176 | 2,246 | ||||||||||||
Foreign currency transaction (gain) loss, net |
(402 | ) | 300 | (354 | ) | 656 | ||||||||||
Tax effect of non-GAAP adjustments, net of tax reserve component of income tax provision |
(319 | ) | (9 | ) | (634 | ) | 57 | |||||||||
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Total expense add-backs |
$ | 3,555 | $ | 2,657 | $ | 7,095 | $ | 5,147 | ||||||||
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