COMVERSE, INC. |
(Exact name of registrant as specified in its charter) |
Delaware | 001-35572 | 04-3398741 |
(State or other jurisdiction | (Commission | (IRS Employer |
of incorporation) | File Number) | Identification No.) |
Exhibit No. | Description |
99.1 | Press Release of Comverse, Inc., dated April 15, 2014. |
COMVERSE, INC. | ||
Date: April 15, 2014 | By: | /s/ Thomas B. Sabol |
Name: | Thomas B. Sabol | |
Title: | Senior Vice President, Chief Financial Officer |
Exhibit No. | Description |
99.1 | Press release of Comverse, Inc. dated April 15, 2014 |
Comverse, Inc.: | Three Months Ended January 31, | Fiscal Years Ended January 31, | |||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Total revenue | $ | 166,514 | $ | 183,587 | $ | 652,501 | $ | 677,763 | |||||||
Costs and expenses | |||||||||||||||
Cost of revenue | 112,140 | 114,872 | 402,476 | 431,644 | |||||||||||
Research and development, net | 17,036 | 17,218 | 67,512 | 76,461 | |||||||||||
Selling, general and administrative | 30,689 | 41,087 | 134,031 | 160,340 | |||||||||||
Other operating expenses | 2,924 | 4,821 | 10,783 | 11,510 | |||||||||||
Total costs and expenses | 162,789 | 177,998 | 614,802 | 679,955 | |||||||||||
Income (loss) from operations (1) | 3,725 | 5,589 | 37,699 | (2,192 | ) | ||||||||||
Expense adjustments | 8,730 | 11,313 | 18,950 | 37,607 | |||||||||||
Comverse performance (2) | 12,455 | 16,902 | 56,649 | 35,415 | |||||||||||
Income (loss) before income tax benefit (expense) | 1,514 | 5,205 | 27,875 | (6,768 | ) | ||||||||||
Income tax benefit (expense) | 14,263 | 5,572 | (9,189 | ) | (13,526 | ) | |||||||||
Net income (loss) from continuing operations | 15,777 | 10,777 | 18,686 | (20,294 | ) | ||||||||||
Basic earnings (loss) per share from continuing operations | $ | 0.71 | $ | 0.49 | $ | 0.84 | $ | (0.93 | ) | ||||||
Diluted earnings (loss) per share from continuing operations | $ | 0.70 | $ | 0.49 | $ | 0.83 | $ | (0.93 | ) | ||||||
Interest expense | (282 | ) | (307 | ) | (847 | ) | (901 | ) | |||||||
Depreciation | $ | (4,267 | ) | $ | (5,996 | ) | $ | (16,267 | ) | $ | (17,741 | ) | |||
Amortization | $ | (695 | ) | $ | (2,076 | ) | $ | (2,765 | ) | $ | (14,124 | ) | |||
Operating Margin | 2.2 | % | 3.0 | % | 5.8 | % | (0.3 | )% | |||||||
Comverse performance margin (2) | 7.5 | % | 9.2 | % | 8.7 | % | 5.2 | % | |||||||
Net cash provided by operating activities - continuing operations (1) | $ | 12,008 | $ | 57,597 | $ | 6,621 | $ | 28,190 |
Three Months Ended January 31, | Fiscal Years Ended January 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
SEGMENT RESULTS | |||||||||||||||
BSS | |||||||||||||||
Segment revenue | $ | 78,239 | $ | 86,457 | $ | 299,561 | $ | 295,803 | |||||||
Gross margin | 32.6 | % | 33.5 | % | 37.0 | % | 33.3 | % | |||||||
Income from operations | 9,316 | 10,907 | 44,636 | 18,675 | |||||||||||
Operating margin | 11.9 | % | 12.6 | % | 14.9 | % | 6.3 | % | |||||||
Segment performance | 10,017 | 12,983 | 47,557 | 39,283 | |||||||||||
Segment performance margin | 12.8 | % | 15.0 | % | 15.9 | % | 13.3 | % | |||||||
Digital Services | |||||||||||||||
Segment revenue | $ | 88,275 | $ | 97,130 | $ | 352,940 | $ | 378,918 | |||||||
Gross margin | 39.6 | % | 46.6 | % | 44.7 | % | 45.4 | % | |||||||
Income from operations | 28,098 | 38,158 | 127,008 | 130,890 | |||||||||||
Operating margin | 31.8 | % | 39.3 | % | 36.0 | % | 34.5 | % | |||||||
Segment performance | 28,134 | 38,382 | 127,224 | 133,053 | |||||||||||
Segment performance margin | 31.9 | % | 39.5 | % | 36.0 | % | 35.1 | % | |||||||
All Other | |||||||||||||||
Segment revenue | $ | — | $ | — | $ | — | $ | 3,042 | |||||||
Loss from operations | (33,689 | ) | (43,476 | ) | (133,945 | ) | (151,757 | ) | |||||||
Segment performance | (25,696 | ) | (34,463 | ) | (118,132 | ) | (136,921 | ) |
As of January 31, | |||||||
(In millions) | 2014 | 2013 | |||||
Cash and cash equivalents | $ | 254.6 | $ | 262.9 | |||
Restricted cash (including long-term restricted cash) and bank time deposits | 68.2 | 42.5 | |||||
Total | $ | 322.8 | $ | 305.4 |
Three Months Ended January 31, | Fiscal Years Ended January 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Revenue: | ||||||||||||||
Product revenue | $ | 61,359 | $ | 71,639 | $ | 220,167 | $ | 242,104 | ||||||
Service revenue | 105,155 | 111,948 | 432,334 | 435,659 | ||||||||||
Total revenue | 166,514 | 183,587 | 652,501 | 677,763 | ||||||||||
Costs and expenses: | ||||||||||||||
Product costs | 36,323 | 34,852 | 116,259 | 123,152 | ||||||||||
Service costs | 75,817 | 80,020 | 286,217 | 308,492 | ||||||||||
Research and development, net | 17,036 | 17,218 | 67,512 | 76,461 | ||||||||||
Selling, general and administrative | 30,689 | 41,087 | 134,031 | 160,340 | ||||||||||
Other operating expenses: | — | — | ||||||||||||
Impairment of goodwill | — | — | — | 5,605 | ||||||||||
Restructuring expenses | 2,924 | 4,821 | 10,783 | 5,905 | ||||||||||
Total other operating expenses | 2,924 | 4,821 | 10,783 | 11,510 | ||||||||||
Total costs and expenses | 162,789 | 177,998 | 614,802 | 679,955 | ||||||||||
Income (loss) from operations | 3,725 | 5,589 | 37,699 | (2,192 | ) | |||||||||
Interest income | 178 | 223 | 614 | 829 | ||||||||||
Interest expense | (282 | ) | (307 | ) | (847 | ) | (901 | ) | ||||||
Interest expense on notes payable to CTI | — | — | — | (455 | ) | |||||||||
Other expense, net | (2,107 | ) | (300 | ) | (9,591 | ) | (4,049 | ) | ||||||
Income (loss) income before income tax expense | 1,514 | 5,205 | 27,875 | (6,768 | ) | |||||||||
Income tax expense | 14,263 | 5,572 | (9,189 | ) | (13,526 | ) | ||||||||
Net income (loss) from continuing operations | 15,777 | 10,777 | 18,686 | (20,294 | ) | |||||||||
Income from discontinued operations, net of tax | — | — | — | 26,542 | ||||||||||
Net income (loss) | 15,777 | 10,777 | 18,686 | 6,248 | ||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (1,167 | ) | |||||||||
Net income (loss) attributable to Comverse, Inc. | $ | 15,777 | $ | 10,777 | $ | 18,686 | $ | 5,081 | ||||||
Weighted average common shares outstanding: | — | — | ||||||||||||
Basic | 22,240,517 | 21,926,187 | 22,164,131 | 21,923,981 | ||||||||||
Diluted | 22,555,426 | 22,122,815 | 22,382,234 | 21,923,981 | ||||||||||
Net income (loss) attributable to Comverse, Inc. | ||||||||||||||
Net income (loss) from continuing operations | $ | 15,777 | $ | 10,777 | $ | 18,686 | $ | (20,294 | ) | |||||
Income from discontinued operations, net of tax | — | — | — | 25,375 | ||||||||||
Net income (loss) attributable to Comverse, Inc. | $ | 15,777 | $ | 10,777 | $ | 18,686 | $ | 5,081 | ||||||
Earnings (loss) per share attributable to Comverse, Inc.’s stockholders: | ||||||||||||||
Basic earnings (loss) per share | ||||||||||||||
Continuing operations | $ | 0.71 | $ | 0.49 | $ | 0.84 | $ | (0.93 | ) | |||||
Discontinued operations | — | — | — | 1.16 | ||||||||||
Basic earnings (loss) per share | $ | 0.71 | $ | 0.49 | $ | 0.84 | $ | 0.23 | ||||||
Diluted earnings (loss) per share | ||||||||||||||
Continuing operations | $ | 0.70 | $ | 0.49 | $ | 0.83 | $ | (0.93 | ) | |||||
Discontinued operations | — | — | — | 1.16 | ||||||||||
Diluted earnings (loss) per share | $ | 0.70 | $ | 0.49 | $ | 0.83 | $ | 0.23 |
January 31, | |||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 254,580 | $ | 262,921 | |||
Restricted cash and bank time deposits | 34,343 | 28,484 | |||||
Accounts receivable, net of allowance of $6,867 and $8,841, respectively | 89,361 | 123,612 | |||||
Inventories | 16,166 | 24,800 | |||||
Deferred cost of revenue | 14,500 | 34,031 | |||||
Deferred income taxes | 2,329 | 17,938 | |||||
Prepaid expenses | 17,000 | 25,196 | |||||
Other current assets | 1,680 | 9,923 | |||||
Total current assets | 429,959 | 526,905 | |||||
Property and equipment, net | 41,541 | 37,442 | |||||
Goodwill | 150,346 | 149,987 | |||||
Intangible assets, net | 5,153 | 7,909 | |||||
Deferred cost of revenue | 45,717 | 72,121 | |||||
Deferred income taxes | 1,720 | 9,421 | |||||
Long-term restricted cash | 33,815 | 14,030 | |||||
Other assets | 40,586 | 39,975 | |||||
Total assets | $ | 748,837 | $ | 857,790 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 168,406 | $ | 185,611 | |||
Deferred revenue | 239,902 | 320,347 | |||||
Deferred income taxes | 514 | 7,689 | |||||
Income taxes payable | 2,102 | 8,538 | |||||
Total current liabilities | 410,924 | 522,185 | |||||
Deferred revenue | 113,426 | 143,725 | |||||
Deferred income taxes | 43,735 | 41,767 | |||||
Other long-term liabilities | 147,942 | 168,876 | |||||
Total liabilities | 716,027 | 876,553 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Comverse, Inc. stockholders’ equity: | |||||||
Common stock, $0.01 par value - authorized, 100,000,000 shares; issued, 22,286,123 and 21,934,569 shares, respectively; outstanding, 22,251,226 and 21,933,427 shares, respectively | 223 | 219 | |||||
Treasury stock, at cost, 34,897 and 1,142 shares, respectively | (1,024 | ) | (33 | ) | |||
Accumulated deficit | (24,251 | ) | (42,937 | ) | |||
Additional paid-in-capital | 34,530 | 2,237 | |||||
Accumulated other comprehensive income | 23,332 | 21,751 | |||||
Total equity | 32,810 | (18,763 | ) | ||||
Total liabilities and equity | $ | 748,837 | $ | 857,790 |
Fiscal Years Ended January 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 18,686 | $ | 6,248 | $ | (12,887 | ) | ||||
Net income from discontinued operations | — | (26,542 | ) | (7,761 | ) | ||||||
Non-cash items | |||||||||||
Depreciation and amortization | 19,032 | 31,865 | 34,165 | ||||||||
Impairment of goodwill | — | 5,605 | — | ||||||||
Provision for doubtful accounts | 1,293 | 518 | 4,811 | ||||||||
Stock-based compensation expense | 10,208 | 7,517 | 3,660 | ||||||||
Deferred income taxes | 17,345 | (11,724 | ) | 2,807 | |||||||
Inventory write-downs | 4,239 | 6,097 | 4,456 | ||||||||
Other non-cash items, net | (765 | ) | 1,244 | (91 | ) | ||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 32,498 | 9,538 | 22,150 | ||||||||
Inventories | 374 | (7,085 | ) | (2,788 | ) | ||||||
Deferred cost of revenue | 45,882 | 36,124 | 37,760 | ||||||||
Prepaid expense and other current assets | 12,845 | 14,881 | 4,852 | ||||||||
Accounts payable and accrued expenses | (12,926 | ) | (19,806 | ) | (35,989 | ) | |||||
Income tax payable | (7,237 | ) | 37,828 | (2,582 | ) | ||||||
Deferred revenue | (110,828 | ) | (85,036 | ) | (70,894 | ) | |||||
Tax contingencies | (24,036 | ) | 17,889 | 5,194 | |||||||
Other assets and liabilities | 11 | 3,029 | (224 | ) | |||||||
Net cash provided by (used in) operating activities - continuing operations | 6,621 | 28,190 | (13,361 | ) | |||||||
Net cash (used in) provided by operating activities - discontinued operations | — | (1,277 | ) | 11,807 | |||||||
Net cash provided by (used in) operating activities | 6,621 | 26,913 | (1,554 | ) | |||||||
Cash flows from investing activities: | |||||||||||
Purchase of other assets | — | (1,131 | ) | — | |||||||
Proceeds from sale of Starhome B.V., net of cash sold of $30.9 million | — | 6,340 | — | ||||||||
Purchase of property and equipment | (12,341 | ) | (5,402 | ) | (5,371 | ) | |||||
Net change in restricted cash and bank time deposits | (26,918 | ) | (4,678 | ) | (4,432 | ) | |||||
Other, net | 962 | 389 | 1,068 | ||||||||
Net cash used in investing activities | (38,297 | ) | (4,482 | ) | (8,735 | ) | |||||
Cash flows from financing activities: | |||||||||||
Decrease in net investment by CTI | — | 1,052 | (7,861 | ) | |||||||
Borrowings under note payable to CTI | — | 9,500 | 1,500 | ||||||||
CTI capital contribution | 25,000 | 38,500 | — | ||||||||
Repayment of line of credit and other financing obligations | — | — | (6,031 | ) | |||||||
Repurchase of common stock | (991 | ) | (33 | ) | — | ||||||
Proceeds from exercises of stock options | 1,108 | 233 | — | ||||||||
Other, net | 1 | — | (25 | ) | |||||||
Net cash provided by (used in) financing activities | 25,118 | 49,252 | (12,417 | ) | |||||||
Effects of exchange rates on cash and cash equivalents | (1,783 | ) | (1,954 | ) | 2,860 | ||||||
Net (decrease) increase in cash and cash equivalents | (8,341 | ) | 69,729 | (19,846 | ) | ||||||
Cash and cash equivalents, beginning of year including cash from discontinued operations | 262,921 | 193,192 | 213,038 | ||||||||
Cash and cash equivalents, end of year including cash from discontinued operations | 254,580 | 262,921 | 193,192 | ||||||||
Less: cash and cash equivalents of discontinued operations, end of year | — | — | (32,466 | ) | |||||||
Cash and cash equivalents, end of year | $ | 254,580 | $ | 262,921 | $ | 160,726 |
Table of Reconciliation from GAAP Income (loss) from operations to Non GAAP Comverse Performance | Three Months Ended January 31, | Fiscal Years Ended January 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Income (loss) from operations | $ | 3,725 | $ | 5,589 | $ | 37,699 | $ | (2,192 | ) | ||||||
Expense Adjustments: | |||||||||||||||
Stock-based compensation expense | 2,197 | 2,005 | 10,208 | 7,517 | |||||||||||
Amortization of intangible assets | 695 | 2,076 | 2,765 | 14,124 | |||||||||||
Compliance-related professional fees | 594 | 56 | 2,144 | 245 | |||||||||||
Compliance-related compensation and other expenses | 36 | 257 | 199 | 2,098 | |||||||||||
Spin-off professional fees | — | 933 | — | 933 | |||||||||||
Italian VAT recovery recorded within operating expense | — | — | (10,861 | ) | — | ||||||||||
Impairment of goodwill | — | — | — | 5,605 | |||||||||||
Impairment of property and equipment | 231 | 354 | 482 | 404 | |||||||||||
Certain litigation settlements and related costs | (1 | ) | (830 | ) | (16 | ) | (660 | ) | |||||||
Restructuring expenses | 2,924 | 4,821 | 10,783 | 5,905 | |||||||||||
Gain on sale of fixed assets | (9 | ) | (185 | ) | (41 | ) | (185 | ) | |||||||
Other | 2,063 | 1,826 | 3,287 | 1,621 | |||||||||||
Total expense adjustments | $ | 8,730 | $ | 11,313 | $ | 18,950 | $ | 37,607 | |||||||
Comverse performance | $ | 12,455 | $ | 16,902 | $ | 56,649 | $ | 35,415 |
BSS | Digital Services | All Other | Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||
Total revenue | $ | 78,239 | $ | 88,275 | $ | — | $ | 166,514 | |||||||
Total costs and expenses | $ | 68,923 | $ | 60,177 | $ | 33,689 | $ | 162,789 | |||||||
Income (loss) from operations | $ | 9,316 | $ | 28,098 | $ | (33,689 | ) | $ | 3,725 | ||||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 78,239 | $ | 88,275 | $ | — | |||||||||
Total costs and expenses | $ | 68,923 | $ | 60,177 | $ | 33,689 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 2,197 | ||||||||||||
Amortization of acquisition-related intangibles | 695 | — | — | ||||||||||||
Compliance-related professional fees | — | — | 594 | ||||||||||||
Compliance-related compensation and other expenses | — | 36 | — | ||||||||||||
Impairment of property and equipment | — | — | 231 | ||||||||||||
Litigation settlements and related costs | — | — | (1 | ) | |||||||||||
Restructuring and integration charges | — | — | 2,924 | ||||||||||||
Gain on sale of fixed assets | — | — | (9 | ) | |||||||||||
Other | 6 | — | 2,057 | ||||||||||||
Segment expense adjustments | 701 | 36 | 7,993 | ||||||||||||
Segment expenses | 68,222 | 60,141 | 25,696 | ||||||||||||
Segment performance | $ | 10,017 | $ | 28,134 | $ | (25,696 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (282 | ) | $ | (282 | ) | |||||
Depreciation | $ | (1,259 | ) | $ | (1,328 | ) | $ | (1,680 | ) | $ | (4,267 | ) |
BSS | Digital Services | All Other | Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended January 31, 2013 | |||||||||||||||
Total revenue | $ | 86,457 | $ | 97,130 | $ | — | $ | 183,587 | |||||||
Total costs and expenses | $ | 75,550 | $ | 58,972 | $ | 43,476 | $ | 177,998 | |||||||
Income (loss) from operations | $ | 10,907 | $ | 38,158 | $ | (43,476 | ) | $ | 5,589 | ||||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 86,457 | $ | 97,130 | $ | — | |||||||||
Total costs and expenses | $ | 75,550 | $ | 58,972 | $ | 43,476 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 2,005 | ||||||||||||
Amortization of acquisition-related intangibles | 2,076 | — | — | ||||||||||||
Compliance-related professional fees | — | — | 56 | ||||||||||||
Compliance-related compensation and other expenses | — | 224 | 33 | ||||||||||||
Strategic evaluation related cost | — | — | 933 | ||||||||||||
Impairment of property and equipment | — | — | 354 | ||||||||||||
Litigation settlements and related costs | — | — | (830 | ) | |||||||||||
Restructuring and integration charges | — | — | 4,821 | ||||||||||||
Gain on sale of fixed assets | — | — | (185 | ) | |||||||||||
Other | — | — | 1,826 | ||||||||||||
Segment expense adjustments | 2,076 | 224 | 9,013 | ||||||||||||
Segment expenses | 73,474 | 58,748 | 34,463 | ||||||||||||
Segment performance | $ | 12,983 | $ | 38,382 | $ | (34,463 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (307 | ) | $ | (307 | ) | |||||
Depreciation | $ | (977 | ) | $ | (1,240 | ) | $ | (3,779 | ) | $ | (5,996 | ) |
BSS | Digital Services | All Other | Consolidated | ||||||||||||
(In thousands) | |||||||||||||||
Fiscal Year Ended January 31, 2014 | |||||||||||||||
Total revenue | $ | 299,561 | $ | 352,940 | $ | — | $ | 652,501 | |||||||
Total costs and expenses | $ | 254,925 | $ | 225,932 | $ | 133,945 | $ | 614,802 | |||||||
Income (loss) from operations | $ | 44,636 | $ | 127,008 | $ | (133,945 | ) | $ | 37,699 | ||||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 299,561 | $ | 352,940 | $ | — | |||||||||
Total costs and expenses | $ | 254,925 | $ | 225,932 | $ | 133,945 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 10,208 | ||||||||||||
Amortization of intangible assets | 2,765 | — | — | ||||||||||||
Compliance-related professional fees | — | — | 2,144 | ||||||||||||
Compliance-related compensation and other expenses | 122 | 216 | (139 | ) | |||||||||||
Italian VAT recovery recorded within operating expense | — | — | (10,861 | ) | |||||||||||
Impairment of property and equipment | 28 | — | 454 | ||||||||||||
Certain litigation settlements and related cost | — | — | (16 | ) | |||||||||||
Restructuring expenses | — | — | 10,783 | ||||||||||||
Gain on sale of fixed assets | — | — | (41 | ) | |||||||||||
Other | 6 | — | 3,281 | ||||||||||||
Segment expense adjustments | 2,921 | 216 | 15,813 | ||||||||||||
Segment expenses | 252,004 | 225,716 | 118,132 | ||||||||||||
Segment performance | $ | 47,557 | $ | 127,224 | $ | (118,132 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (847 | ) | $ | (847 | ) | |||||
Depreciation | $ | (3,738 | ) | $ | (5,040 | ) | $ | (7,489 | ) | $ | (16,267 | ) |
BSS | Digital Services | All Other | Combined | ||||||||||||
(In thousands) | |||||||||||||||
Fiscal Year Ended January 31, 2013 | |||||||||||||||
Total revenue | $ | 295,803 | $ | 378,918 | $ | 3,042 | $ | 677,763 | |||||||
Total costs and expenses | $ | 277,128 | $ | 248,028 | $ | 154,799 | $ | 679,955 | |||||||
Income (loss) from operations | $ | 18,675 | $ | 130,890 | $ | (151,757 | ) | $ | (2,192 | ) | |||||
Computation of segment performance: | |||||||||||||||
Segment revenue | $ | 295,803 | $ | 378,918 | $ | 3,042 | |||||||||
Total costs and expenses | $ | 277,128 | $ | 248,028 | $ | 154,799 | |||||||||
Segment expense adjustments: | |||||||||||||||
Stock-based compensation expense | — | — | 7,517 | ||||||||||||
Amortization of intangible assets | 14,124 | — | — | ||||||||||||
Compliance-related professional fees | — | — | 245 | ||||||||||||
Compliance-related compensation and other expenses | 877 | 2,314 | (1,093 | ) | |||||||||||
Strategic evaluation related costs | — | — | 933 | ||||||||||||
Impairment of goodwill | 5,605 | — | — | ||||||||||||
Impairment of property and equipment | 2 | — | 402 | ||||||||||||
Certain litigation settlements and related costs | — | (151 | ) | (509 | ) | ||||||||||
Restructuring expenses | — | — | 5,905 | ||||||||||||
Gain on sale of fixed assets | — | — | (185 | ) | |||||||||||
Other | — | — | 1,621 | ||||||||||||
Segment expense adjustments | 20,608 | 2,163 | 14,836 | ||||||||||||
Segment expenses | 256,520 | 245,865 | 139,963 | ||||||||||||
Segment performance | $ | 39,283 | $ | 133,053 | $ | (136,921 | ) | ||||||||
Interest expense | $ | — | $ | — | $ | (901 | ) | $ | (901 | ) | |||||
Depreciation | $ | (3,757 | ) | $ | (4,999 | ) | $ | (8,985 | ) | $ | (17,741 | ) |