EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

Media Contact:

Erica Ryan

Sr. Marketing Communications Manager

A.D.A.M., Inc.

(404) 604-2757

marketing@adamcorp.com

Investor Relations Contact:

Lippert/Heilshorn & Associates

(212) 838-3777

investorrelations@adamcorp.com

A.D.A.M., Inc. Announces Fourth Quarter and Year-End 2009 Financial Results

Fourth Quarter license revenues increase 5%;

2009 Adjusted operating income of 20%

ATLANTA - March 16, 2010 - A.D.A.M., Inc. (Nasdaq: ADAM), a leading provider of health information and benefit technology solutions, today announced its financial results for the fourth quarter ended December 31, 2009.

Highlights

 

   

License revenues for the fourth quarter of 2009 were $6.7 million, up 5% over fourth quarter of 2008 due to increased health solutions license revenues.

 

   

Adjusted operating income margin for the fourth quarter of 2009 was 22% of revenues, and raised the 2009 full year ratio to 20%.

 

   

Adjusted net income was a $1.6 million profit for the fourth quarter of 2009, GAAP net income was a loss of $1.1 million, which included charges for a deferred tax asset write-down and severance costs.

 

   

Adjusted EBITDA was $2.3 million for the fourth quarter of 2009, up 15% from fourth quarter of 2008.

“In the fourth quarter, we generated a 15% increase in cash flow compared to 2008 and an operating margin of 22%,” said Mark Adams, president and chief executive officer of A.D.A.M., Inc. “Our results demonstrate the multiple strengths of A.D.A.M.’s business model: high recurring revenues, multiple year contracts, high customer retention rates, and strong cash generation. Our priorities in 2010 include expanding our product offerings, enhancing client service delivery, improving product development processes, and sharpening our focus on execution. These and other steps over time will lead to revenue growth in both businesses and allow us to further leverage our highly scalable business model.”


Financial Results:

Fourth Quarter Highlights

License revenues for the fourth quarter ended December 31, 2009 were $6.7 million, compared to $6.4 million in the fourth quarter of 2008, an increase of 5%. The increase from the prior year reflects a 14% increase in health solutions license revenue, the result of new client contracts, strong retention rates and solid results from distribution partners.

Total revenues were $7.4 million for the fourth quarter 2009 and 2008. This reflects the previously mentioned increase in health solutions license revenue, which was offset by lower revenues and utilization of Benergy services in 2009.

Adjusted operating income was $1.7 million, compared to $1.6 million for the fourth quarter ended December 31, 2009 and 2008, respectively. Both amounts were 22% of revenues for the period. Adjusted operating income reflected the company’s strong operating model of profitability.

Cash flow, as measured by Adjusted EBITDA rose 15% to $2.3 million, or 31% of revenues, for the fourth quarter ended December 31, 2009, as compared to $2.0 million or 27% of revenues for the same period a year ago.

Net income (loss) for the fourth quarter ended December 31, 2009 was a loss of $1.1 million as compared to net loss of $2.0 million for the fourth quarter of 2008. Included in the fourth quarter 2009 were charges for the write-down of the deferred tax asset of $1.2 million and severance costs of $1.1 million related to the employment agreement of the previous CEO. Included in the fourth quarter, 2008 were restructuring costs of $2.2 million related to the facility consolidation program.

Non-GAAP net income was $1.6 million, an increase of 8% from the same period a year ago, and excludes charges for stock-based compensation, amortization of purchased intangibles, write-down of the deferred tax asset, and severance costs.

2009 Highlights

License revenues for year ended December 31, 2009, were $26.1 million, an increase of 3% from $25.4 million in the same period last year. The increase from the prior year reflects the growth in health solutions revenues.

Adjusted operating income was $5.6 million, compared to $5.7 million, for the year ended December 31, 2009 and 2008, respectively. Both amounts were 20% of revenues for the period.

Net income (loss) for the year ended December 31, 2009 was a loss of $13.3 million as compared to net income of $38,000 for the year ended December 31, 2008. Included in 2009, among other items, were non-cash charges for goodwill impairment of $13.9 million, restructuring costs of $1.4 million, write-down of the deferred tax asset of $1.2 million, and severance costs of $1.1 million.


Non-GAAP net income for the year ended December 31, 2009, which excludes charges for stock-based compensation, amortization of purchased intangibles, and items listed on the reconciliation schedule such as goodwill impairment, restructuring and severance costs, and write-down of the deferred tax asset, was $5.7 million, an increase of 22% from the same period a year ago.

Cash flow, as measured by Adjusted EBITDA was $8.3 million, or 29% of revenues, for the year ended December 31, 2009, as compared to $7.9 million or 27% of revenues for the same period a year ago.

At December 31, 2009, the company had cash and cash equivalents of $5.4 million as compared to $1.4 million at December 31, 2008. Long-term debt was also reduced by $2.0 million during 2009.

Conference Call

A.D.A.M. will conduct its fourth quarter earnings conference call today, at 10:00 AM ET. To access the call in the U.S., please dial 866-900-2647 and for international callers, dial 706-758-3362 approximately 10 minutes prior to the start of the conference call. The pass code is 55044405. The conference call will also be broadcast live over the Internet and available for replay for 90 days at http://www.adam.com. In addition, a replay of the call will be available via telephone for one week, beginning two hours after the call. To listen to the telephone replay in the U.S. please dial 800-642-1687 and for international callers, dial 706-645-9291. The pass code is the same as above.

Use of Non-GAAP Measures

To supplement our consolidated financial statements presented in accordance with GAAP, we present investors with certain non-GAAP operational measures, including adjusted operating income, adjusted net income, adjusted earnings per share and adjusted EBITDA, all of which primarily exclude the effects of amortization of intangible assets, stock-based compensation, acquisition related expenses, facility consolidation charges, debt refinancing costs, and a goodwill impairment charge.

Our management considers the total return of an investment we have made in an acquisition (i.e., operating profit generated as compared to the purchase price paid) without taking into consideration any allocations made for accounting purposes. Thus, because the purchase price for an acquisition does not necessarily reflect the accounting value assigned to intangible assets, including customer lists and goodwill, when analyzing the return provided by the acquisition in subsequent periods, our management, for planning and evaluation purposes, excludes the GAAP impact of acquired intangible assets, goodwill impairment charges and other acquisition related expenses to our financial results. We believe that such an approach is useful in understanding the long-term return provided by an acquisition and that our investors benefit from a supplemental non-GAAP financial measure that adjusts for the accounting expense associated with acquired intangible assets.


Similarly, we believe that excluding stock-based compensation expense provides supplemental information and an alternative presentation useful to investors’ understanding of our operating results and trends, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods.

We also believe that, in excluding stock-based compensation, amortization of intangible assets, facility consolidation and the other listed items in the GAAP to Non-GAAP reconciliation schedules, our non-GAAP financial measures provide investors with transparency into the information and basis used by management and our board of directors to measure and forecast our results of operations, to compare on a consistent basis our results of operations for the current period to that of prior periods, to compare our results of operations on a more consistent basis against that of other companies in making financial and operating decisions, and to establish targets for management incentive compensation.

We believe that the presentation of non-GAAP operational measures of adjusted operating income, adjusted net income, adjusted earnings per share and adjusted EBITDA provide important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. These non-GAAP operational measures have historically been used as key performance metrics by our senior management as they evaluate the performance of the consolidated financial results. These non-GAAP operational measures are reviewed individually as well as in total in measuring our performance against internal and external expectations for the period. The expectations for such key non-GAAP operational measures are the basis for any financial guidance provided by management for future periods. Management believes that the use of each of these non-GAAP financial measures provides enhanced consistency and comparability with our past financial reports. We provide this information to investors to enable them to perform additional analyses of past, present and future operating performance.

We believe that each of these operational measures is useful to investors in their assessment of our operating performance and the valuation of our company. Adjusted operating income, non-GAAP net income, adjusted earnings per share and adjusted EBITDA are significant measures used by management for:

 

   

Reporting our financial results and forecasts to our board of directors;

 

   

Evaluating the operating performance of our company;

 

   

Managing and comparing performance internally and externally against our peers; and

 

   

Establishing internal operating targets.


These non-GAAP operational measures, including adjusted operating income, adjusted net income, adjusted earnings per share and adjusted EBITDA, are used by us as broad measures of financial performance that encompass our operating performance, cash, capital structure, investment management, and income tax planning effectiveness. These operational measures are not calculated in accordance with GAAP and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. These operational measures have limitations in that they do not reflect all of the costs or reductions to revenues associated with the operations of our business as determined in accordance with GAAP. In addition, these operational measures may not be comparable to non-GAAP financial measures reported by other companies. As a result, one should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to operational measures. The limitations in relying on our non-GAAP financial measures include the fact that the adjusted operating income, non-GAAP net income, adjusted earnings per share and adjusted EBITDA operational measures do not include the impact of stock-based compensation expense or the effects of amortization of intangible assets, acquisition related expenses and other charges. We expect to continue to incur expenses similar to the non-GAAP adjustments described above, and the exclusion or inclusion of these items from our non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent.

About A.D.A.M., Inc.

A.D.A.M. (Nasdaq: ADAM) is a leading provider of health information and benefits technology solutions to healthcare organizations, employers, consumers, and educational institutions. A.D.A.M.’s portfolio of products includes its award-winning Multimedia Encyclopedia and Benergy®, the leading benefits communication and healthcare decision support platform for small and mid-sized employers. A.D.A.M. content and technology solutions help consumers better understand their health, wellness and benefits, while helping healthcare organizations and employers reduce the costs of healthcare and benefits administration. For more information, visit http://www.adam.com or call 1-800-755-ADAM.

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 Act of 1934, as amended. The forward-looking statements are based on A.D.A.M.’s current intent, belief and expectations. These statements, especially revenue, net income, cash flow, are not guarantees of future performance and involve a number of risks and uncertainties that can be difficult to predict and that could cause actual results, performance or developments to differ materially. Factors that could affect the company’s actual results, performance or developments include general economic conditions, development of the Internet as a source of health information, pricing actions taken by competitors, demand for the company’s health information, regulatory changes in laws and regulations that impact how the company conducts its business and the other factors described in A.D.A.M.’s filings with the SEC. A.D.A.M. undertakes no obligation or duty to update or revise any of its forward-looking statements whether as a result of new information, future events, circumstances or otherwise.

# # #


A.D.A.M., Inc.

Consolidated Statements of Operations

Fourth Quarter and Year-End, 2009 and 2008

A.D.A.M., Inc.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures

Fourth Quarter and Year-End, 2009 and 2008

A.D.A.M., Inc.

Consolidated Balance Sheets

December 31, 2009 and 2008

A.D.A.M., Inc.

Consolidated Statements of Cash Flows

December 31, 2009 and 2008


A.D.A.M., Inc.

Consolidated Statements of Operations (Unaudited)

Fourth Quarter, 2009 and 2008

(numbers in thousands, except per share data)

 

     Three Months Ended December 31,        
     2009     % of
Revenues
    2008     % of
Revenues
    % Increase
(Decrease)
 

Revenues, net

          

Licensing

   $ 6,657      90   $ 6,367      86   5

Product

     297      4     257      3   16

Professional services and other

     475      6     782      11   -39
                              

Total revenues, net

     7,429      100     7,406      100   0

Cost of revenues

          

Cost of revenues

     1,122      15     1,218      16   -8

Cost of revenues - amortization

     547      7     261      4   110
                              

Total cost of revenues

     1,669      22     1,479      20   13
                              

Gross profit

     5,760      78     5,927      80   -3

Operating expenses

          

Product and content development

     1,481      20     1,209      16   22

Sales and marketing

     1,656      22     2,319      31   -29

General and administrative

     2,291      31     1,848      25   24

Restructuring costs

     —            2,193      30   -100
                              

Total operating expenses

     5,428      73     7,569      102   -28
                              

Operating income

     332      4     (1,642   -22   (a

Interest expense, net

     118      2     365      5   -68
                              

Income (loss) before income taxes

     214      3     (2,007   -27   (a

Income tax expense

     1,336      18     —        0   (a
                              

Net loss

   $ (1,122   -15   $ (2,007   -27   (a
                              

Earnings per share

          

Basic

   $ (0.11     $ (0.20    

Diluted

   $ (0.11     $ (0.20    

Weighted average number of common shares outstanding

          

Basic

     9,890          9,876       

Diluted

     9,890          9,876       

 

(a) not meaningful


A.D.A.M., Inc.

Consolidated Statements of Operations (Unaudited)

Year-to-Date, 2009 and 2008

(numbers in thousands, except per share data)

 

     Twelve Months Ended December 31,        
     2009     % of
Revenues
    2008    % of
Revenues
    % Increase
(Decrease)
 

Revenues, net

           

Licensing

   $ 26,075      93   $ 25,395    88   3

Product

     1,047      4     1,182    4   -11

Professional services and other

     1,039      4     2,280    8   -54
                             

Total revenues, net

     28,161      100     28,857    100   -2

Cost of revenues

           

Cost of revenues

     4,141      15     4,201    15   -1

Cost of revenues - amortization

     2,174      8     1,699    6   28
                             

Total cost of revenues

     6,315      22     5,900    20   7
                             

Gross profit

     21,846      78     22,957    80   -5

Operating expenses

           

Product and content development

     5,261      19     4,297    15   22

Sales and marketing

     6,888      24     8,961    31   -23

General and administrative

     5,870      21     5,704    20   3

Goodwill impairment

     13,940      50     —      0   (a

Restructuring costs

     1,408      5     2,193    8   -36
                             

Total operating expenses

     33,367      118     21,155    73   58
                             

Operating income (loss)

     (11,521   -41     1,802    6   (a

Interest expense, net

     478      2     1,468    5   -67

Loss on sale of investments

     —        0     296    1   -100
                             

Income (loss) before income taxes

     (11,999   -43     38    0   (a

Income tax expense

     1,336      5     —      0   (a
                             

Net income (loss)

   $ (13,335   -47   $ 38    0   (a
                             

Earnings (loss) per share

           

Basic

   $ (1.35     $ 0.00     

Diluted

   $ (1.35     $ 0.00     

Weighted average number of common shares outstanding

           

Basic

     9,886          9,813     

Diluted

     9,886          10,642     

 

(a) not meaningful


A.D.A.M., Inc.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (Unaudited)

Fourth Quarter, 2009 and 2008

(numbers in thousands, except per share data)

 

     Three Months Ended December 31,  
     2009
GAAP
    2009
Non-GAAP
    2008
GAAP
    2008
Non-GAAP
    % Increase/
(Decrease)
 

Reconciliation of GAAP operating income, net income and EPS to non-GAAP measures:

          

GAAP operating income

   $ 332      $ 332      $ (1,642   $ (1,642  

Stock-based compensation expense (2)

       174          278     

Restructuring costs (4)

       —            2,193     

Severance expense (5)

       1,149          —       

Loan refinance (7)

       —            813     
                      

Non-GAAP operating income

     $ 1,655        $ 1,642      1
                      

GAAP net income

   $ (1,122   $ (1,122   $ (2,007   $ (2,007  

Stock-based compensation expense (2)

       174          278     

Amortization of purchased intangibles (3)

       146          188     

Restructuring costs (4)

       —            2,193     

Severance expense (5)

       1,149          —       

Non-cash deferred tax asset write-down (6)

       1,230          —       

Loan refinance (7)

       —            813     
                      

Non-GAAP net income

     $ 1,577        $ 1,465      8
                      

Diluted earnings per share

   $ (0.11   $ 0.15      $ (0.20   $ 0.14     

Diluted common shares outstanding

     9,890        10,412        9,876        10,390     

Reconciliation of GAAP net income to adjusted EBITDA is as follows:

          

GAAP net income

   $ (1,122   $ (1,122   $ (2,007   $ (2,007  

Depreciation

       129          121     

Amortization of software development

       401          72     

Interest expense, net

       118          365     

Income tax expense

       106          —       

Stock-based compensation expense (2)

       174          278     

Amortization of purchased intangibles (3)

       146          188     

Restructuring costs (4)

       —            2,193     

Severance expense (5)

       1,149          —       

Non-cash deferred tax asset write-down (6)

       1,230          —       

Loan refinance (7)

       —            813     
                      

Adjusted EBITDA

     $ 2,331        $ 2,023      15
                      

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered as a substitute for comparable GAAP measures and should be read only in conjunction with our financial statements prepared in accordance with GAAP and our press release, which explains our use of non-GAAP measures.
(2) Stock-based compensation expense related to non-cash charges for stock options, excluding $126,000 related to prior CEO, which is included in severance expense.
(3) Amortization of purchased intangibles, including customer lists and software acquired with Online Benefits.
(4) Restructuring costs related to the consolidation of facilities and support services into Atlanta.
(5) Severance costs related to the employment agreement of the prior Chief Executive Officer.
(6) Non-cash valuation allowance adjustment to the deferred income tax asset.
(7) Costs to refinance long-term debt.


A.D.A.M., Inc.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (Unaudited)

Year-to-Date, 2009 and 2008

(numbers in thousands, except per share data)

 

     Twelve Months Ended December 31,  
     2009
GAAP
    2009
Non-GAAP
    2008
GAAP
   2008
Non-GAAP
   % Increase/
(Decrease)
 
            

Reconciliation of GAAP operating income (loss), net income (loss) and EPS to non-GAAP measures:

            

GAAP operating income (loss)

   $ (11,521   $ (11,521   $ 1,802    $ 1,802   

Stock-based compensation expense (2)

       651           903   

Goodwill impairment (4)

       13,940           —     

Restructuring costs (5)

       1,408           2,193   

Severance expense (6)

       1,149           —     

Loan refinance (8)

       —             813   
                      

Non-GAAP operating income

     $ 5,627         $ 5,711    -1
                      

GAAP net income (loss)

   $ (13,335   $ (13,335   $ 38    $ 38   

Stock-based compensation expense (2)

       651           903   

Amortization of purchased intangibles (3)

       689           753   

Goodwill impairment (4)

       13,940           —     

Restructuring costs (5)

       1,408           2,193   

Severance expense (6)

       1,149           —     

Non-cash deferred tax asset write-down (7)

       1,230           —     

Loan refinance (8)

       —             813   
                      

Non-GAAP net income

     $ 5,732         $ 4,700    22
                      

Diluted earnings per share

   $ (1.35   $ 0.56      $ 0.00    $ 0.44   

Diluted common shares outstanding

     9,886        10,296        10,642      10,642   

Reconciliation of GAAP net income (loss) to adjusted EBITDA is as follows:

            

GAAP net income (loss)

   $ (13,335   $ (13,335   $ 38    $ 38   

Depreciation

       469           450   

Amortization of software development

       1,485           946   

Interest expense, net

       478           1,468   

Income tax expense

       106           —     

Stock-based compensation expense (2)

       651           903   

Amortization of purchase intangibles (3)

       689           753   

Goodwill impairment (4)

       13,940           —     

Restructuring costs (5)

       1,408           2,193   

Severance expense (6)

       1,149           —     

Non-cash deferred tax asset write-down (7)

       1,230           —     

Loan refinance (8)

       —             813   

Loss on sale of investments (9)

       —             296   
                      

Adjusted EBITDA

     $ 8,270         $ 7,860    5
                      

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered as a substitute for comparable GAAP measures and should be read only in conjunction with our financial statements prepared in accordance with GAAP and our press release, which explains our use of non-GAAP measures.
(2) Stock-based compensation expense related to non-cash charges for stock options, excluding $126,000 related to prior CEO, which is included in severance expense.
(3) Amortization of purchased intangibles, including customer lists and software acquired with Online Benefits.
(4) Goodwill impairment related to the acquisition of Online Benefits.
(5) Restructuring costs related to the consolidation of facilities and support services into Atlanta.
(6) Severance costs related to the employment agreement of the prior Chief Executive Officer.
(7) Non-cash valuation allowance adjustment to the deferred income tax asset.
(8) Costs to refinance long-term debt.
(9) Recognition of loss from the sale of interest bearing short term investments.


A.D.A.M., Inc.

Consolidated Balance Sheets

December 31, 2009 and 2008

(numbers in thousands)

 

     December 31, 2009
(unaudited)
    December 31, 2008  

Assets

    

Current assets

    

Cash and cash equivalents

   $ 5,446      $ 1,377   

Accounts receivable, net

     2,516        3,986   

Restricted cash

     —          47   

Inventories, net

     30        33   

Prepaids and other assets

     208        597   

Deferred income tax asset

     678        558   
                

Total current assets

     8,878        6,598   

Non-current assets

    

Property and equipment, net

     1,543        1,592   

Intangible assets, net

     9,375        9,979   

Goodwill

     13,690        27,617   

Other assets

     206        206   

Deferred financing costs, net

     52        92   

Deferred income tax asset

     5,712        7,062   
                

Total non-current assets

     30,578        46,548   
                

Total assets

   $ 39,456      $ 53,146   
                

Liabilities and shareholders’ equity

    

Current liabilities

    

Accounts payables and accrued expenses

   $ 4,895      $ 3,880   

Deferred revenue

     5,796        5,995   

Current portion of long-term debt

     2,000        2,000   

Current portion of capital lease obligations

     22        44   
                

Total current liabilities

     12,713        11,919   

Non-current liabilities

    

Capital lease obligations, net of current portion

     90        112   

Other liabilities

     1,385        1,293   

Long-term debt, net of current portion

     6,000        8,000   
                

Total non-current liabilities

     7,475        9,405   

Stockholders’ equity

    

Common stock

     102        102   

Treasury stock

     (1,088     (1,088

Additional paid-in capital

     59,256        58,475   

Accumulated deficit

     (39,002     (25,667
                

Total stockholders’ equity

     19,268        31,822   
                

Total liabilities and stockholders’ equity

   $ 39,456      $ 53,146   
                


A.D.A.M., Inc.

Consolidated Statements of Cash Flows

Year-to-Date, 2009 and 2008

(numbers in thousands)

 

     Twelve Months Ended
December 31, 2009
(unaudited)
    Twelve Months Ended
December 31, 2008
 

Cash flows from operating activities

    

Net income (loss)

   $ (13,335   $ 38   

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

    

Goodwill impairment

     13,940        —     

Depreciation and amortization

     2,643        2,149   

Restructuring costs

     1,408        2,193   

Payments for restructuring costs

     (1,620     (656

Deferred income tax expense

     1,230        —     

Stock-based compensation expense

     777        903   

Deferred financing cost amortization

     40        852   

Provisions for bad debt expense

     22        53   

Common stock warrants expense

     —          366   

Loss on sale of investments

     —          296   

Loss on sale of assets

     —          249   

Changes in assets and liabilities:

    

Accounts receivable

     1,448        (99

Accounts payable and accrued expenses

     754        (771

Other liabilities

     565        (150

Prepaids and other assets

     389        188   

Deferred revenue

     (199     319   

Inventories

     3        32   
                

Net cash provided by operating activities

     8,065        5,962   

Cash flows from investing activities

    

Software product and content development costs

     (1,570     (1,725

Purchases of property and equipment

     (420     (1,426

Net change in restricted cash

     47        (1

Goodwill, additional cost of previous acquisition from earn out payments

     (13     (149

Proceeds from sale of investments

     —          2,716   

Purchase of investments

     —          (37

Proceeds from sales of property and equipment

     —          2   
                

Net cash used in investing activities

     (1,956     (620

Cash flows from financing activities

    

Payment on long-term debt

     (2,000     (20,000

Repayments on capital leases

     (44     (100

Proceeds from exercise of common stock options

     4        802   

Proceeds from issuance of term note

     —          10,000   

Payment of deferred financing costs

     —          (92
                

Net cash used in financing activities

     (2,040     (9,390

Increase (decrease) in cash and cash equivalents

     4,069        (4,048

Cash and cash equivalents, beginning of period

     1,377        5,425   
                

Cash and cash equivalents, end of period

   $ 5,446      $ 1,377