Delaware
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001-36219
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37-1744624
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(State or other jurisdiction of
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(Commission
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(IRS Employer
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incorporation)
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File Number)
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Identification No.)
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500 W. 5th Street
Suite 900
Austin, TX
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78701
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(Address of principal executive offices)
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(Zip Code)
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits
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99.1
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Press Release dated May 10, 2016.
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SIZMEK INC.
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|||
Date: May 10, 2016
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By:
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/s/ Kenneth J. Saunders
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Name: Kenneth J. Saunders
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Title: Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press Release dated May 10, 2016
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●
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First Quarter Revenues Grow 10% to $40.5 million; Increasing 12% on an FX Adjusted Basis
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● |
Core Revenues Increase 32%, Driven by 395% Growth in Mobile Revenue
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·
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Core product revenues including mobile, video, data driven products and programmatic solutions grew 32% year over year:
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·
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Mobile product (including HTML5 formats) revenues grew 395% from the first quarter of 2015;
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·
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Data driven product revenue, such as Peer39, dynamic creative optimization, verification and viewability, grew 32% from the first quarter of 2015;
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·
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In stream video revenue increased 23% from the first quarter of 2015; and
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·
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Programmatic revenues grew 58% over the prior year with self service revenues now accounting for nearly 22% of segment revenues.
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·
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As anticipated, flash based rich media continues its trend, declining 75% from the first quarter of 2015.
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·
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At March 31, 2016, the Company had $40.3 million of cash and cash equivalents on hand and no long-term debt. Sizmek purchased $1.3 million of shares under its $30 million repurchase plan in the first quarter of 2016.
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· Revenues for 2016 are expected to be between $182 million and $190 million.
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· Adjusted EBITDA for 2016 is expected to be between $16 million and $18 million.
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Three Months Ended
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||||||||
March 31,
|
||||||||
2016
|
2015
|
|||||||
Revenues
|
$ | 40,525 | $ | 36,759 | ||||
Cost of revenues
|
18,199 | 13,610 | ||||||
Selling and marketing
|
14,641 | 13,997 | ||||||
Research and development
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3,128 | 2,807 | ||||||
General and administrative
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5,003 | 4,060 | ||||||
Operating expenses, excluding depreciation and amortization; share-based compensation; and merger, integration and other expenses
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40,971 | 34,474 | ||||||
Adjusted EBITDA
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(446 | ) | 2,285 | |||||
Depreciation and amortization
|
2,922 | 7,439 | ||||||
Share-based compensation
|
867 | 846 | ||||||
Merger, integration and other expenses
|
2,768 | 834 | ||||||
Loss from operations
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(7,003 | ) | (6,834 | ) | ||||
Other (income) expense, net
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(526 | ) | 979 | |||||
Loss before income taxes
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(6,477 | ) | (7,813 | ) | ||||
Provision for income taxes
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475 | 132 | ||||||
Net loss
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$ | (6,952 | ) | $ | (7,945 | ) | ||
Basic and diluted loss per common share
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$ | (0.24 | ) | $ | (0.27 | ) | ||
Weighted average common shares outstanding:
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||||||||
Basic and diluted
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29,034 | 29,783 |
March 31,
2016
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December 31,
2015
|
||||||||
(unaudited)
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|||||||||
Assets
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|||||||||
CURRENT ASSETS:
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|||||||||
Cash and cash equivalents
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$ | 40,288 | $ | 42,046 | |||||
Accounts receivable (less allowances of $1,736 as of March 31, 2016 and $1,795 as of December 31, 2015)
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52,210 | 64,595 | |||||||
Restricted cash
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1,581 | 1,538 | |||||||
Other current assets
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3,908 | 4,568 | |||||||
Current assets of TV business
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284 | 678 | |||||||
Total current assets
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98,271 | 113,425 | |||||||
Property and equipment, net
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32,115 | 29,410 | |||||||
Goodwill
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9,337 | 8,411 | |||||||
Intangible assets, net
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16,158 | 16,931 | |||||||
Deferred income taxes
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511 | 523 | |||||||
Restricted cash
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4,208 | 4,478 | |||||||
Other non-current assets
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5,758 | 4,807 | |||||||
Total assets
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$ | 166,358 | $ | 177,985 | |||||
Liabilities and Stockholders’ Equity
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|||||||||
CURRENT LIABILITIES:
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|||||||||
Accounts payable
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$ | 5,732 | $ | 3,683 | |||||
Accrued liabilities
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33,127 | 39,037 | |||||||
Current liabilities of TV business
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424 | 1,203 | |||||||
Total current liabilities
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39,283 | 43,923 | |||||||
Deferred income taxes
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848 | 919 | |||||||
Other non-current liabilities
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8,239 | 7,613 | |||||||
Total liabilities
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48,370 | 52,455 | |||||||
STOCKHOLDERS’ EQUITY:
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|||||||||
Preferred stock, $0.001 par value—Authorized 15,000 shares; issued and outstanding—none
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— | — | |||||||
Common stock, $0.001 par value—Authorized 200,000 shares; 29,118 issued and outstanding at March 31, 2016; 29,584 issued and 29,228 outstanding at December 31, 2015
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29 | 30 | |||||||
Treasury stock, at cost (356 shares at December 31, 2015)
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— | (1,510 |
)
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|||||
Additional capital
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366,580 | 368,658 | |||||||
Accumulated deficit
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(245,241 | ) | (238,289 |
)
|
|
||||
Accumulated other comprehensive loss
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(3,380 | ) | (3,359 |
)
|
|
||||
Total stockholders’ equity
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117,988 | 125,530 | |||||||
Total liabilities and stockholders’ equity
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$ | 166,358 | $ | 177,985 |
Three Months Ended
March 31,
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||||||||
2016
|
2015
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
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$ | (6,952 | ) | $ | (7,945 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation of property and equipment
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1,458 | 3,553 | ||||||
Amortization of intangibles
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1,464 | 3,886 | ||||||
Share-based compensation
|
867 | 846 | ||||||
Deferred income taxes
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(75 | ) | (327 | ) | ||||
Benefit for accounts receivable recoveries
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(59 | ) | (60 | ) | ||||
Gain (loss) from recovery of TV business net assets
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149 | (114 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
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12,453 | 7,938 | ||||||
Other assets
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412 | (2,241 | ) | |||||
Accounts payable and other liabilities
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(4,071 | ) | (2,195 | ) | ||||
Net cash provided by operating activities
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5,646 | 3,341 | ||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
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(1,153 | ) | (2,321 | ) | ||||
Capitalized costs of developing software
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(3,564 | ) | (4,245 | ) | ||||
Other
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— | (29 | ) | |||||
Net cash used in investing activities
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(4,717 | ) | (6,595 | ) | ||||
Cash flows from financing activities:
|
||||||||
Purchases of treasury stock
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(1,277 | ) | (4,500 | ) | ||||
Payments of TV business liabilities
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(948 | ) | (139 | ) | ||||
Proceeds from TV business assets
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413 | 952 | ||||||
Payment of tax withholding obligation for shares tendered
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(159 | ) | (164 | ) | ||||
Payment of financing property and equipment
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(579 | ) | — | |||||
Net cash (used in) financing activities
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(2,550 | ) | (3,851 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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(137 | ) | (357 | ) | ||||
Net (decrease) in cash and cash equivalents
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(1,758 | ) | (7,462 | ) | ||||
Cash and cash equivalents at beginning of year
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42,046 | 90,672 | ||||||
Cash and cash equivalents at end of period
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$ | 40,288 | $ | 83,210 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid for income taxes
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$ | 89 | $ | 430 | ||||
Cash received for interest
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$ | — | $ | (27 | ) | |||
Extended payment obligations incurred to purchase equipment
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$ | — | $ | 960 |
Three Months Ended
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||||||||
March 31,
|
||||||||
2016
|
2015
|
|||||||
Net loss
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$ | (6,952 | ) | $ | (7,945 | ) | ||
Depreciation and amortization
|
2,922 | 7,439 | ||||||
Share-based compensation
|
867 | 846 | ||||||
Merger, integration and other expenses
|
2,768 | 834 | ||||||
Other expense, net
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(526 | ) | 979 | |||||
Provision (benefit) for income taxes
|
475 | 132 | ||||||
Adjusted EBITDA
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$ | (446 | )) | $ | 2,285 |