Blueprint
Issuer Direct Reports Fourth Quarter and Full Year 2018 Financial
Results
2018 Total Revenue Increases 13% while Platform and Technology
Revenue Increases 21% Year Over Year to 60% of Total
Revenue
MORRISVILLE, NC / ACCESSWIRE / February 28, 2019 / Issuer Direct
Corporation (NYSE American: ISDR) (the "Company"), an
industry-leading communications and compliance
company, today reported its operating results for the three months
and full year ended December 31, 2018. The Company will host an
investor conference call today at 4:30 PM Eastern Time to discuss
its operating results.
Fourth Quarter 2018 Highlights:
●
Total
revenue was $3,648,000, a 7% increase from $3,399,000 in Q4 2017
and a 12% increase from $3,255,000 in Q3 2018.
●
Platform
and Technology revenue increased 24% from Q4 2017 and 7% from Q3
2018.
●
Overall
gross margin was 71%, compared to 73% in Q4 2017 and 70% in Q3
2018.
●
Platform
and Technology gross margin was 78%, down from 83% in Q4 2017 and
an increase from 77% in Q3 2018.
●
GAAP
earnings per diluted share was $0.02 compared to $0.24 in Q4 2017
and $0.02 in Q3 2018.
●
The
Company generated cash flows from operations of $716,000 compared
to $417,000 in Q4 2017 and $564,000 in Q3 2018.
Full Year 2018 and Recent Highlights:
●
Total
revenue was $14,232,000, a 13% increase from $12,628,000 in
2017.
●
Platform
and Technology revenue increased 21% from 2017.
●
Overall
gross margin was 71%, compared to 73% in 2017.
●
Platform
and Technology gross margin was 79%, down from 84% in
2017.
●
GAAP
earnings per diluted share was $0.24 compared to $0.62 in
2017.
●
The
Company generated cash flows from operations of $2,869,000 compared
to $2,512,000 in 2017.
●
On
July 3, 2018, the Company completed the acquisition of Filing
Services Canada Inc.
●
On
January 3, 2019, the Company completed the acquisition of the
VisualWebcaster platform from Onstream Media
Corporation.
Customer Count Metrics:
●
The
Company had 2,412 Platform and Technology customers during Q4 2018,
compared to 1,819 during Q4 2017 and 2,143 during Q3
2018.
●
The
Company had 687 Services customers during Q4 2018, compared to 579
during Q4 2017 and 679 during Q3 2018.
●
Included in the
numbers above, the Company had 504 customers using both our
platform and service offerings during Q4 2018, compared to 289
during Q4 2017 and 490 during Q3 2018.
Brian Balbirnie, CEO of Issuer Direct, commented, “We ended
the year with a strong fourth quarter. During the quarter, platform
customers grew 33% to 2,412, ARPU on new subscriptions of
Platform id.
increased to $11,300 and Platform and
Technology revenue increased 24% from the same period of
2017.”
Mr. Balbirnie continued, “We are an organization that is
investing for growth. During the fourth quarter we added new
leadership to our sales organization and we expect to expand our
sales force further in 2019. We have also continued to invest
heavily in development, which has resulted in two new modules added
to our platform. One of these was released in late 2018 and the
other will be released in Q1 2019, with further enhancements
targeted for release throughout the year. Furthermore, our plans to
increase our news distribution reach are on track for
2019.”
Mr. Balbirnie concluded, “Looking ahead, we remain focused on
integrating our recent acquisitions and growing our platform
customers. We believe the combination of increased investment and
increased client count will help accelerate growth in revenue and
ultimately drive our long-term earnings growth.”
Financial Results for the Fourth Quarter Ended December 31,
2018:
Total revenue for the fourth quarter of 2018 was $3,648,000,
compared to $3,399,000 for the same period of 2017, an increase of
$249,000, or 7%. Revenue from customers obtained from our recent
acquisition of Filing Services Canada Inc. (“FSCwire”)
was $157,000 during the fourth quarter of 2018.
Platform and Technology revenue increased $432,000 or 24%, during
the fourth quarter of 2018, as compared to the fourth quarter of
2017. The increase in Platform and Technology revenue is due
primarily to an increase in revenue from our ACCESSWIRE news
distribution offering, which increased 30% over the prior year.
This increase is due partly to the acquisition of FSCwire and
partly due to new customers during the period. We also generated
increased revenue from licenses of our Platform id.
subscription. This quarter we entered
into 20 net new licenses with new or existing customers totaling an
annual contract value of $226,000. As a percentage of overall
revenue, Platform & Technology revenue increased to 61% of
total revenue for the three months ended December 31, 2018,
compared to 53% for the same period of 2017. It is important to
note, due to a newly adopted accounting principle, $133,000 of
revenue related to the electronic dissemination of a
customer’s annual report that was previously reported as
Service revenue has been reclassified as Platform and Technology
revenue for the three months ended December 31,
2017.
Services revenue decreased $183,000, or 11%, during the fourth
quarter of 2018, as compared to the same period of 2017. This
decrease was primarily due to continued customer attrition in our
legacy ARS business as companies elected to leave the service or
transitioned to our electronic delivery alternative (reflected as
Platform and Technology revenue). Additionally, revenue from our
compliance services decreased as we continue to face pricing
pressure in the market and due to a shift of some of this revenue
to the Platform and Technology stream.
Gross margin for the fourth quarter of 2018 was $2,577,000, or 71%
of revenue, compared to $2,480,000, or 73% of revenue, in the
fourth quarter of 2017. It is noted that a majority of the increase
in cost of revenues was due to an increase of $141,000 during the
quarter in amortization of capitalized software associated with
Platform id.
Operating income was $134,000 for the three months ended December
31, 2018, as compared to operating income of $440,000 during the
same period of the prior year. Despite the increase in gross margin
dollars noted above, the decrease in operating income is primarily
attributable to increases in general and administrative expenses
and sales and marketing expenses due to investments the Company is
making to grow its business. General and administrative expenses
increased due to an increase in acquisition related expenses as
well as increase in corporate headcount to position the Company for
growth. We also experienced an increase in bad debt expense over
the same period of the prior year. Sales and marketing expenses
increased as we added new leadership to the sales department and
continued to expand our news distribution capabilities.
Depreciation and amortization expense also increased due to higher
amortization associated with intangible assets acquired in the
FSCwire acquisition. During the fourth quarter of 2018, we recorded
tax expense of $127,000, compared to a benefit of $307,000 in the
same period of the prior year. The benefit during the fourth
quarter of 2017 related to the passage of the Tax Cuts and Jobs Act
of 2017 (the “2017 Act”) as well as a benefit related
to the adoption of a new accounting principle related to equity
compensation.
On a GAAP basis, we generated net income of $65,000, or $0.02 per
diluted share, during the three months ended December 31, 2018,
compared to $745,000, or $0.24 per diluted share, during the same
period of 2017. The decrease in earnings per share was primarily
due to the increase in operating expenses and income tax expense
noted above.
Fourth quarter EBITDA was $497,000, or 14% of revenue, compared to
$646,000, or 19% of revenue during the fourth quarter of 2017.
Non-GAAP net income was $437,000, or $0.10 per diluted share,
compared to $546,000, or $0.18 per diluted share, during the fourth
quarter of 2017. The Non-GAAP results exclude amortization of
intangible assets, stock-based compensation, integration and
acquisition costs, unusual, non-recurring gains and losses, the
impact of discrete items impacting income tax expense and tax
impact of adjustments. Please refer to the tables below for the
calculation of EBITDA and the reconciliation of GAAP income and
earnings per share to Non-GAAP income and earnings per
share.
Financial Results for the Full Year Ended December 31,
2018:
Total revenue was $14,232,000 for the year ended December 31, 2018,
compared to $12,628,000 for the same period of 2017, an increase of
$1,604,000, or 13%. Customers obtained from our acquisitions of
Interwest Transfer Company (October 2017) and FSCwire (July 2018)
contributed an additional $1,497,000 of revenue during the year
ended December 31, 2018 compared to 2017. Of this additional
revenue, $243,000 came from additional subscriptions to
Platform id.
and services cross sold to those
acquired customers.
Platform and Technology revenue increased $1,512,000 or 21%, during
the year ended December 31, 2018, as compared to the same period of
the prior year. The increase is due to an increase in revenue from
our ACCESSWIRE offering, the addition of Interwest and FSCwire
customers as well as increased subscriptions of Platform
id.
During the year ended December 31,
2018, we entered into 109 net new Platform id.
subscriptions with new or existing
customers with an annual contract value of $1,134,000. As a
percentage of overall revenue, Platform & Technology revenue
increased to 60% of total revenue for the year ended December 31,
2018, compared to 56% for the same period of 2017. It is important
to note, due to a newly adopted accounting principle, $683,000 of
revenue related to the electronic dissemination of a
customer’s annual report that was previously reported as
Service revenue has been reclassified as Platform and Technology
revenue for the year ended December 31, 2017.
Services revenue increased $92,000, or 2% during the year ended
December 31, 2018, as compared to the same period of 2017. The
increase is due to an increase in revenue of our transfer agent
services due to the acquisition of Interwest as well as an increase
in corporate directives and actions of our longer-term Issuer
Direct transfer agent customers. These increases were partially
offset by declining revenue of our legacy ARS business as well as a
decline in revenue from our compliance services as the market for
these services commoditizes and we continue to experience pricing
pressure and or customers elect to utilize our cloud-based
platform.
Gross margin for the year ended December 31, 2018 was $10,129,000,
or 71% of total revenue, compared to $9,233,000, or 73% of revenue,
in the same period of 2017. It is noted that a majority of the
increase in cost of revenues was due to an increase of $514,000 for
the year ended December 31, 2018, in amortization of capitalized
software associated with Platform id.
Operating income was $1,163,000 for the year ended December 31,
2018, as compared to operating income of $2,028,000 during the same
period of the prior year. The decrease in operating income is due
to the increase in general and administrative expenses, sales and
marketing expenses, product development and depreciation and
amortization expenses explained for the three months ended December
31, 2018. During 2018 we recorded income tax expense of $373,000
compared to $131,000 for the same period of the prior year. Tax
expense for 2018 included additional tax expense associated with an
adjustment to the Company’s original provisional charges
recorded in connection with the one-time transition tax and the
current year impact of taxes associated with the 2017 Act. During
the year ended December 31, 2017, the Company recognized an income
tax benefit of $351,000 related to the passage of the 2017 Act as
well as a benefit of $156,000 related to the adoption of a new
accounting principle related to equity compensation.
On a GAAP basis, we generated net income of $837,000, or $0.24 per
diluted share, during the year ended December 31, 2018, compared to
$1,871,000, or $0.62 per diluted share, during the same period of
2017. The decrease in earnings per share was primarily due to the
increase in operating expenses and income tax expense noted
above.
EBITDA for the year ended December 31, 2018 was $2,560,000, or 18%
of revenue, compared to $2,739,000, or 22% of revenue during the
same period of 2017. Non-GAAP net income was $1,969,000, or $0.57
per diluted share, compared to $1,987,000, or $0.65 per diluted
share, during the same period of the prior year. The decrease in
Non-GAAP net income per diluted share despite similar Non-GAAP net
income is the result of more shares outstanding as a result of our
secondary offering completed in August 2018. The Non-GAAP results
exclude amortization of intangible assets, stock-based
compensation, integration and acquisition costs, unusual,
non-recurring gains and losses, the impact of discrete items
impacting income tax expense and tax impact of adjustments. Please
refer to the tables below for the calculation of EBITDA and the
reconciliation of GAAP income and earnings per share to Non-GAAP
income and earnings per share.
Non-GAAP Information
Certain Non-GAAP financial measures are included in this press
release. In the calculation of these measures, the Company
generally excludes certain items, such as amortization of
intangible assets, stock-based compensation, integration and
acquisition costs, unusual, non-recurring gains and losses, the
impact of discrete items impacting income tax expense and tax
impact of adjustments. The Company believes that excluding such
items provides investors and management with a representation of
the Company's core operating performance and with information
useful in assessing its prospects for the future and underlying
trends in the Company's operating expenditures and continuing
operations. Management uses such Non-GAAP measures to evaluate
financial results and manage operations. The release and the
attachments to this release provide a reconciliation of each of the
Non-GAAP measures referred to in this release to the most directly
comparable GAAP measure. The Non-GAAP financial measures are not
meant to be considered a substitute for the corresponding GAAP
financial statements and investors should evaluate them carefully.
These Non-GAAP financial measures may differ materially from the
Non-GAAP financial measures used by other companies.
CALCULATION OF EBITDA
($
in ‘000’s)
|
Three Months
ended December 31,
|
|
|
|
|
|
|
|
|
|
Net
income:
|
$65
|
$745
|
Adjustments:
|
|
|
Depreciation and
amortization
|
363
|
203
|
Interest expense
(income)
|
(58)
|
(5)
|
Income tax
expense
|
127
|
(307)
|
EBITDA:
|
$497
|
$646
|
|
|
|
|
|
|
|
|
|
|
|
Net
income:
|
$837
|
$1,871
|
Adjustments:
|
|
|
Depreciation and
amortization
|
1,397
|
735
|
Interest expense
(income)
|
(47)
|
2
|
Income tax
expense
|
373
|
131
|
EBITDA:
|
$2,560
|
$2,739
|
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP
MEASURES
($
in ‘000’s, except per share amounts)
|
Three Months
ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income:
|
$65
|
$0.02
|
$745
|
$0.24
|
Adjustments:
|
|
|
|
|
Amortization of
intangible assets (1)
|
130
|
0.03
|
126
|
0.04
|
Stock-based
compensation (2)
|
140
|
0.05
|
151
|
0.05
|
Integration and
acquisition costs (3)
|
66
|
0.01
|
44
|
0.01
|
Tax impact of
adjustments (5)
|
(71)
|
(0.02)
|
(109)
|
(0.03)
|
Impact of discrete
items impacting income tax expense (6)
|
107
|
0.01
|
(411)
|
(0.13)
|
Non-GAAP net income
(7):
|
$437
|
$0.10
|
$546
|
$0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income:
|
$837
|
$0.24
|
$1,871
|
$0.62
|
Adjustments:
|
|
|
|
|
Amortization of
intangible assets (1)
|
520
|
0.15
|
375
|
0.12
|
Stock-based
compensation (2)
|
629
|
0.18
|
516
|
0.17
|
Integration and
acquisition costs (3)
|
114
|
0.03
|
64
|
0.02
|
Unusual,
non-recurring loss (4)
|
—
|
—
|
28
|
0.01
|
Tax impact of
adjustments (5)
|
(265)
|
(0.07)
|
(334)
|
(0.11)
|
Impact of discrete
items impacting income tax expense (6)
|
134
|
0.04
|
(533)
|
(0.18)
|
Non-GAAP net
income(7)
|
$1,969
|
$0.57
|
$1,987
|
$0.65
|
1)
The adjustments
represent the amortization of intangible assets related to acquired
assets and companies.
2)
The adjustments
represent stock-based compensation expense related to awards of
stock options, restricted stock units or common stock in exchange
for services. Although the Company expects to continue to award
stock to employees or in exchange for services, the amount of
stock-based compensation is excluded as it is subject to change as
a result of one-time or non-recurring projects.
3)
The adjustments
represent legal and accounting fees and other non-recurring costs
in connection with the acquisition of Filing Services Canada Inc.
and the VisualWebcaster platform during the three months and year
ended December 31, 2018 and Interwest Transfer Company during the
three months and year ended December 31, 2017.
4)
The adjustment
removes gains or losses during the period that are unusual,
non-recurring or infrequent in nature and don’t relate to the
core business of the Company. For the year ended December 31, 2017,
these losses include a loss on the change in fair value of stock
received, in lieu of cash, related to the settlement of a
receivable.
5)
This adjustment
gives effect to the tax impact of all non-GAAP adjustments at the
current Federal rate of 21% for the three months and year ended
December 31, 2018 and 34% for the three months and year ended
December 31, 2017.
6)
The adjustments
eliminate discrete items impacting income tax expense. For the
three months and year ended December 31, 2018, the discrete items
are primarily related to additional expense recognized as a result
of finalizing the impact of the Tax Cuts and Jobs Act of 2017 (the
“2017 Act”) and return to provision and other
adjustments made to income tax expense during the periods. For the
three months and year ended December 31, 2017, the discrete items
relate to the re-measurement of deferred tax liabilities related to
the 2017 Act and the excess stock-based compensation tax benefit
recognized in income tax expense during the periods.
7)
Non-GAAP net income
for the three months and year ended December 31, 2018, reflects the
calculation of income tax computed using the current federal
statutory rate of 21%. Had the federal statutory rate remained at
34% for 2018, non-GAAP net income for the three months and year
ended December 31, 2018, would have been lower by approximately
$44,000, or $0.01 per diluted share, and $164,000, or $0.05 per
diluted share, respectively.
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes
before the beginning of the call.
Participant:
877.407.8133 | 201.689.8040
Live Webcast via Investor Network - https://www.investornetwork.com/event/presentation/44332
Conference Call Replay Information
The replay will be available beginning approximately 1 hour after
the completion of the live event at https://www.issuerdirect.com/company/earnings-calls-transcripts
International:
919.882.2331
About Issuer Direct Corporation
Issuer Direct®
is an
industry-leading communications and compliance company
focusing on the needs of corporate issuers. Issuer Direct's
principal platform, Platform id., empowers users by thoughtfully integrating the
most relevant tools, technologies, and services, thus eliminating
the complexity associated with producing and distributing financial
and business communications. Headquartered in RTP, NC, Issuer
Direct serves more than 4,000 public and private companies in more
than 18 countries on an annual basis. For more information, please
visit www.issuerdirect.com.
Learn more about Issuer Direct today: Investor Tear
Sheet.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended
(the "Exchange Act") (which Sections were adopted as part of the
Private Securities Litigation Reform Act of 1995). Statements
preceded by, followed by or that otherwise include the words
"believe," "anticipate," "estimate," "expect," "intend," "plan,"
"project," "prospects," "outlook," and similar words or
expressions, or future or conditional verbs, such as "will,"
"should," "would," "may," and "could," are generally
forward-looking in nature and not historical facts. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the Company's
actual results, performance, or achievements to be materially
different from any anticipated results, performance, or
achievements. The Company disclaims any intention to, and
undertakes no obligation to, revise any forward-looking statements,
whether as a result of new information, a future event, or
otherwise. For additional risks and uncertainties that could impact
the Company's forward-looking statements, please see the Company's
Annual Report on Form 10-K for the year ended December 31, 2018,
including but not limited to the discussion under "Risk Factors"
therein, which the Company will file with the SEC and which may be
viewed at http://www.sec.gov/.
For Further Information:
Issuer Direct Corporation
Brian R. Balbirnie
(919)-481-4000
brian.balbirnie@issuerdirect.com
Hayden IR
Brett Maas
(646)-536-7331
brett@haydenir.com
Hayden IR
James Carbonara
(646)-755-7412
james@haydenir.com
SOURCE: Issuer Direct
Corporation
ISSUER DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2018 AND 2017
(in
thousands, except share and per share amounts)
|
|
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$17,222
|
$4,917
|
Accounts receivable
(net of allowance for doubtful accounts of $534 and $425,
respectively)
|
1,593
|
1,275
|
Income tax
receivable
|
90
|
725
|
Other current
assets
|
89
|
193
|
Total current
assets
|
18,994
|
7,110
|
Capitalized
software (net of accumulated amortization of $1,310 and $497,
respectively)
|
1,957
|
2,749
|
Fixed assets (net
of accumulated depreciation of $452 and $388,
respectively)
|
132
|
145
|
Other long-term
assets
|
35
|
18
|
Goodwill
|
5,032
|
4,070
|
Intangible assets
(net of accumulated amortization of $4,219 and $3,699,
respectively)
|
2,802
|
2,858
|
Total
assets
|
$28,952
|
$16,950
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$371
|
$666
|
Accrued
expenses
|
577
|
613
|
Current portion of
note payable (See Note 4)
|
320
|
288
|
Income taxes
payable
|
83
|
65
|
Deferred
revenue
|
1,249
|
887
|
Total current
liabilities
|
2,600
|
2,519
|
Note payable
– long-term (net of discount of $45 and $70, respectively)
(See Note 4)
|
276
|
570
|
Deferred income tax
liability
|
413
|
573
|
Other long-term
liabilities
|
—
|
77
|
Total
liabilities
|
3,289
|
3,739
|
Commitments and
contingencies (see Note 9)
|
|
|
Stockholders'
equity:
|
|
|
Preferred stock,
$0.001 par value, 1,000,000 shares authorized, no shares issued and
outstanding as of December 31, 2018 and 2017,
respectively.
|
—
|
—
|
Common stock $0.001
par value, 20,000,000 shares authorized, 3,829,572 and 3,014,494
shares issued and outstanding as of December 31, 2018 and 2017,
respectively.
|
4
|
3
|
Additional paid-in
capital
|
22,525
|
10,400
|
Other accumulated
comprehensive income (loss)
|
(17)
|
34
|
Retained
earnings
|
3,151
|
2,774
|
Total stockholders'
equity
|
25,663
|
13,211
|
Total
liabilities and stockholders’ equity
|
$28,952
|
$16,950
|
ISSUER DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share amounts)
|
For the three
months ended
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$3,648
|
$3,399
|
$14,232
|
$$12,628
|
Cost of
revenue
|
1,071
|
919
|
4,103
|
3,395
|
Gross
profit
|
2,577
|
2,480
|
10,129
|
9,233
|
Operating costs and
expenses:
|
|
|
|
|
General and
administrative
|
1,189
|
859
|
4,085
|
3,384
|
Sales and
marketing
|
730
|
684
|
3,002
|
2,604
|
Product
Development
|
360
|
353
|
1,276
|
763
|
Depreciation and
amortization
|
164
|
144
|
603
|
454
|
Total operating
costs and expenses
|
2,463
|
2,040
|
8,966
|
7,205
|
Operating
income
|
134
|
440
|
1,163
|
2,028
|
Other income
(expense):
|
|
|
|
|
Other income
(expense), net
|
—
|
4
|
—
|
(24
|
Interest income
(expense), net
|
58
|
(6
|
47
|
(2
|
Total other
income (expense)
|
58
|
(2
|
47
|
(26
|
Income before
taxes
|
192
|
438
|
1,210
|
2,002
|
Income
tax (benefit) expense
|
127
|
(307
|
373
|
131
|
Net
income
|
$65
|
$745
|
$837
|
$$1,871
|
Income per share
– basic
|
$0.02
|
$0.25
|
$0.25
|
$$0.63
|
Income per share -
fully diluted
|
$0.02
|
$0.24
|
$0.24
|
$$0.62
|
Weighted average
number of common shares outstanding - basic
|
3,984
|
2,993
|
3,415
|
2,947
|
Weighted average
number of common shares outstanding - fully diluted
|
4,017
|
3,094
|
3,463
|
3,033
|
ISSUER DIRECT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands, except share and per share amounts)
|
|
|
|
|
Cash
flows from operating activities
|
|
|
Net
income
|
$837
|
$1,871
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Bad debt
expense
|
359
|
181
|
Depreciation and
amortization
|
1,397
|
735
|
Deferred income
taxes
|
(336)
|
(50)
|
Non-cash interest
expense
|
25
|
6
|
Stock-based
compensation expense
|
629
|
516
|
Changes in
operating assets and liabilities:
|
|
|
Decrease (increase)
in accounts receivable
|
(645)
|
(66)
|
Decrease (increase)
in deposits and prepaid assets
|
743
|
(711)
|
Increase (decrease)
in accounts payable
|
(322)
|
309
|
Increase (decrease)
in deferred revenue
|
296
|
12
|
Increase (decrease)
in accrued expenses
|
(114)
|
(291)
|
Net cash provided
by operating activities
|
2,869
|
2,512
|
|
|
|
Cash
flows from investing activities
|
|
|
Purchase of
acquired businesses, net of cash received (See Note 4)
|
(1,123)
|
(1,872)
|
Capitalized
software
|
(21)
|
(934)
|
Purchase of fixed
assets
|
(51)
|
(11)
|
Net cash used in
investing activities
|
(1,195)
|
(2,817)
|
|
|
|
Cash
flows from financing activities
|
|
|
Proceeds from
secondary stock offering (see Note 7)
|
13,323
|
—
|
Proceeds from
exercise of stock options, net of income taxes
|
747
|
389
|
Payment for stock
repurchase and retirement (see Note 7)
|
(2,635)
|
—
|
Payment on notes
payable (See Note 4)
|
(288)
|
—
|
Payment of
dividend
|
(460)
|
(588)
|
Net cash provided
by (used in) financing activities
|
10,687
|
(199)
|
|
|
|
Net change in
cash
|
12,361
|
(504)
|
Cash-
beginning
|
4,917
|
5,339
|
Currency
translation adjustment
|
(56)
|
82
|
Cash-
ending
|
$17,222
|
$4,917
|
|
|
|
Supplemental disclosures:
|
|
|
Cash paid for
income taxes
|
$66
|
$943
|
Non-cash
activities:
|
|
|
Stock-based
compensation - capitalized software
|
$—
|
$57
|
Purchase of
Interwest in exchange of note payable
|
$—
|
$851
|