|
27.04.2018 13:00:00
|
Monotype Announces First Quarter 2018 Results
Monotype Imaging Holdings Inc. (Nasdaq: TYPE) today announced financial results for the first quarter ended March 31, 2018.
First quarter 2018 highlights
- Revenue for the quarter was $56.7 million, an increase of 8% year over year.
- Creative Professional revenue was $35.0 million, up 29% year over year.
- Net loss was $1.2 million; Non-GAAP net adjusted EBITDA was $11.0 million, or 19% of revenue.
- Operating cash flow was $7.5 million, an increase of 34% year over year; cash and cash equivalents stood at $85.4 million.
"We had a solid start to 2018, driven by the continued execution of our enterprise sales strategy,” said Scott Landers, president and CEO of Monotype. "Global 2000 brands clearly see the value in our solutions, as this marks the fourth consecutive quarter of more than 20% year-over-year growth in Creative Professional.”
Tony Callini, executive vice president and chief financial officer of Monotype, said, "We remain focused on improving our margins and operating cash flow, as well as carrying the growth momentum we’ve experienced over the past several quarters.”
First quarter 2018 operating results
Revenue for the quarter
increased 8% to $56.7 million, compared to $52.5 million for the first
quarter of 2017. Creative Professional revenue was $35.0 million, a 29%
increase from the first quarter of 2017. OEM revenue was $21.7 million,
a decrease of 15% from the same period in 2017.
Gross margin for the quarter of 76.5% included a one-time royalty cost of $2.2 million related to the adoption of the new revenue recognition standards. Excluding this non-recurring cost, gross margin in the first quarter was 80.4% as compared to 81.6% in the prior year quarter.
Net loss was $1.2 million, compared to a net loss of $1.1 million in the first quarter of 2017. Loss per diluted share was $0.03, the same as the prior year quarter.
Non-GAAP net income, which excludes the amortization of intangible assets, stock-based compensation expense, acquisition-related compensation expense, and non-recurring expenses, net of taxes, was $8.9 million, compared to $6.5 million in the first quarter of 2017. Non-GAAP earnings per diluted share were $0.22 compared to $0.16 in the prior year period.
The company’s effective tax rate in the quarter was 67%, as compared to 9% in the prior year period. The change was primarily due to the effects of the new tax reform legislation.
Non-GAAP net adjusted EBITDA was $11.0 million, or 19% of revenue, compared to $9.4 million in the first quarter of 2017.
Beginning in the first quarter of 2018, Monotype has updated its definition of non-GAAP net adjusted EBITDA to be calculated as GAAP income (loss) from operations and adding back depreciation, amortization of acquired intangible assets, stock-based compensation expense, acquisition-related compensation and non-recurring expenses.
Cash and cash flow
Monotype had cash and cash equivalents of
$85.4 million as of March 31, 2018, compared to $82.8 million as of
December 31, 2017 and $86.9 million as of March 31, 2017. The company
generated $7.5 million of cash from operations in the first quarter of
2018, an increase of 34% year over year. During the first quarter of
2018, the company repaid $3.0 million on its outstanding revolving line
of credit.
Quarterly Dividend
Monotype’s most recent dividend payment
of $0.116 per share was paid on April 20, 2018, to shareholders of
record as of the close of business on April 2, 2018. A dividend of
$0.116 cents per share will be paid on July 20, 2018, to shareholders of
record as of the close of business on July 2, 2018.
Financial outlook
Monotype is updating its full-year
operating expense and earnings per share guidance to reflect
non-recurring expenses incurred in the first quarter and a higher than
anticipated effective tax rate, which is now expected to be 65%.
Monotype’s second quarter and updated full-year financial guidance are
set forth in the following tables:
| (in $ millions, except for per share data) | Q2 2018 |
Full-Year 2018 |
||||
| Revenue | $57.0 – 61.0 | $243.0 – $251.0 | ||||
| Non-GAAP net adjusted EBITDA | $11.0 – $14.0 | $59.5 – $66.5 | ||||
| Operating expenses |
$43.5 – $46.5 |
$177.0 – $180.0 |
||||
| GAAP earnings per diluted share |
$0.00 – $0.03 |
$0.10 – $0.15 |
||||
| Non-GAAP earnings per diluted share |
$0.09 – $0.12 |
$0.47 – $0.52 |
||||
Conference call details
Monotype will host a conference call
on Friday, April 27, 2018, at 8:30 a.m. EDT to discuss the company’s
first quarter 2018 results and business outlook for 2018. Individuals
who are interested in listening to the audio webcast should log on to
the Investors portion of the Company section of the Monotype website at www.monotype.com.
The live call can also be accessed by dialing (855) 312-5713 (domestic)
or (703) 925-2611 (international) using passcode 5485309. If individuals
are unable to listen to the live call, the audio webcast will be
archived in the Investors portion of the company’s website for one year.
Non-GAAP financial measures
This press release contains
non-GAAP financial measures under the rules of the U.S. Securities and
Exchange Commission. This non-GAAP information supplements and is not
intended to represent a measure of performance in accordance with
disclosures required by generally accepted accounting principles.
Non-GAAP financial measures are used internally to manage the business,
such as in establishing an annual operating budget and in reporting to
lenders. Non-GAAP financial measures are used by Monotype management in
its operating and financial decision-making because management believes
these measures reflect ongoing business in a manner that allows
meaningful period-to-period comparisons. Accordingly, Monotype believes
it is useful for investors and others to review both GAAP and non-GAAP
measures in order to (a) understand and evaluate current operating
performance and future prospects in the same manner as management does,
and (b) compare in a consistent manner the company’s current financial
results with past financial results. The primary limitations associated
with the use of non-GAAP financial measures are that these measures may
not be directly comparable to the amounts reported by other companies
and they do not include all items of income and expense that affect
operations. Monotype management compensates for these limitations by
considering the company’s financial results and outlook as determined in
accordance with GAAP and by providing a detailed reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP
measures in the tables attached to this press release.
Forward-Looking Statements
This release may contain
forward-looking statements including those related to future revenues
and operating results, the growth of the company’s business, the impact
of the company’s revenue recognition policy, the impact of federal tax
reform legislation, the execution of the company’s capital allocation
and funding strategies and anticipated business momentum that involve
risks and uncertainties that could cause the company’s actual results to
differ materially. Factors that might cause or contribute to such
differences include, but are not limited to: risks associated with
changes in the economic climate including decreased demand for the
company’s products or products that incorporate the company’s solutions;
risks associated with the company’s ability to adapt its products or
services to new markets and to anticipate and quickly respond to
evolving technologies and customer requirements; risks associated with
the company’s development of and the market acceptance of new products,
product features or services; risks associated with the company’s
ability to expand products and services offered through acquired
companies; risks associated with increased competition in markets the
company serves, including the risks that increased competition may
result in the company’s inability to gain new customers, retain existing
customers or may force the company to reduce prices; risks associated
with the ownership and enforcement of the company’s intellectual
property; and risks associated with geopolitical conditions and changes
in the financial markets. Additional disclosure regarding these and
other risks faced by the company is available in the company’s public
filings with the Securities and Exchange Commission, including the risk
factors included in the company’s Annual Report on Form 10-K for the
year ended December 31, 2017 and subsequent filings. The forward-looking
financial information set forth in this release reflects estimates based
on information available at this time. These amounts could differ from
actual reported amounts to be included in the company’s future earnings
releases and public filings. While the company may elect to update
forward-looking statements at some point in the future, the company
specifically disclaims any obligation to do so, even if an estimate
changes.
About Monotype
Monotype provides the design assets,
technology and expertise that help create beautiful, authentic and
impactful brands that customers will engage with and value, wherever
they experience the brand, now and in the future. Further information is
available at www.monotype.com.
Follow Monotype on Twitter,
Instagram
and LinkedIn.
Monotype is a trademark of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. ©2018 Monotype Imaging Holdings Inc. All rights reserved.
|
MONOTYPE IMAGING HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands) |
||||||||||
|
March 31, 2018 |
December 31, 2017 |
|||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 85,351 | $ | 82,822 | ||||||
| Restricted cash | 10,000 | 11,987 | ||||||||
| Accounts receivable, net of allowance for doubtful accounts | 34,064 | 34,461 | ||||||||
| Income tax refunds receivable | 1,920 | 1,204 | ||||||||
| Prepaid expenses and other current assets | 6,455 | 5,714 | ||||||||
| Total current assets | 137,790 | 136,188 | ||||||||
| Property and equipment, net | 16,454 | 16,763 | ||||||||
| Goodwill | 280,454 | 279,131 | ||||||||
| Intangible assets, net | 83,503 | 84,856 | ||||||||
| Restricted cash | 6,000 | 6,000 | ||||||||
| Other assets | 4,750 | 3,112 | ||||||||
| Total assets | $ | 528,951 | $ | 526,050 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 2,943 | $ | 1,467 | ||||||
| Accrued expenses and other current liabilities | 38,127 | 43,096 | ||||||||
| Accrued income taxes payable | 440 | 522 | ||||||||
| Deferred revenue | 15,889 | 15,102 | ||||||||
| Total current liabilities | 57,399 | 60,187 | ||||||||
| Revolving line of credit | 90,000 | 93,000 | ||||||||
| Other long-term liabilities | 5,830 | 6,428 | ||||||||
| Deferred income taxes | 27,135 | 28,004 | ||||||||
| Reserve for income taxes | 2,811 | 2,783 | ||||||||
| Accrued pension benefits | 6,507 | 6,280 | ||||||||
| Stockholders’ equity: | ||||||||||
|
Common stock |
44 | 44 | ||||||||
| Additional paid-in capital | 305,023 | 298,113 | ||||||||
| Treasury stock, at cost | (65,294 | ) | (64,083 | ) | ||||||
| Retained earnings | 100,673 | 97,815 | ||||||||
| Accumulated other comprehensive loss | (1,177 | ) | (2,521 | ) | ||||||
| Total stockholders’ equity | 339,269 | 329,368 | ||||||||
| Total liabilities and stockholders’ equity | $ | 528,951 | $ | 526,050 | ||||||
|
MONOTYPE IMAGING HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except share and per share data) |
||||||||||
|
Three Months Ended March 31, |
||||||||||
| 2018 | 2017 | |||||||||
| Revenue | $ | 56,683 | $ | 52,465 | ||||||
| Cost of revenue | 12,436 | 8,778 | ||||||||
| Cost of revenue—amortization of acquired technology | 864 | 878 | ||||||||
| Total cost of revenue | 13,300 | 9,656 | ||||||||
| Gross profit | 43,383 | 42,809 | ||||||||
| Operating expenses: | ||||||||||
| Marketing and selling | 20,065 | 21,242 | ||||||||
| Research and development | 9,442 | 9,554 | ||||||||
| General and administrative | 15,690 | 10,927 | ||||||||
| Amortization of other intangible assets | 1,024 | 1,011 | ||||||||
| Total operating expenses | 46,221 | 42,734 | ||||||||
|
(Loss) income from operations |
(2,838 | ) | 75 | |||||||
| Other (income) expense: | ||||||||||
| Interest expense, net | 728 | 631 | ||||||||
| Other expense | 98 | 620 | ||||||||
| Total other expense | 826 | 1,251 | ||||||||
| Loss before benefit from income taxes | (3,664 | ) | (1,176 | ) | ||||||
| Benefit from income taxes | (2,465 | ) | (101 | ) | ||||||
| Net loss | $ | (1,199 | ) | $ | (1,075 | ) | ||||
| Net loss available to common stockholders—basic and diluted | $ | (1,199 | ) | $ | (1,075 | ) | ||||
| Net loss per common share—basic and diluted | $ | (0.03 | ) | $ | (0.03 | ) | ||||
| Weighted-average number of shares outstanding—basic and diluted | 40,005,789 | 39,476,439 | ||||||||
| Dividends declared per common share | $ | 0.116 | $ | 0.113 | ||||||
|
MONOTYPE IMAGING HOLDINGS INC. OTHER INFORMATION (Unaudited and in thousands) |
||||||||||
|
RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET ADJUSTED EBITDA |
||||||||||
|
Three Months Ended March 31, |
||||||||||
| 2018 | 2017 | |||||||||
| GAAP net loss | $ | (1,199 | ) | $ | (1,075 | ) | ||||
| Interest expense, net | 728 | 631 | ||||||||
| Other expense, net | 98 | 620 | ||||||||
| Benefit from income taxes | (2,465 | ) | (101 | ) | ||||||
|
(Loss) income from operations |
$ | (2,838 | ) | $ | 75 | |||||
| Depreciation and amortization | 3,249 | 3,051 | ||||||||
| Stock based compensation | 4,247 | 4,831 | ||||||||
| Acquisition-related compensation(1) | 1,189 | 1,407 | ||||||||
| Non-recurring expense(2) | 5,114 | — | ||||||||
|
Net adjusted EBITDA |
$ | 10,961 | $ | 9,364 | ||||||
(1) For the three months ended March 31, 2018, the amount includes
$0.9 million of expense associated with the deferred compensation
arrangement resulting from the Olapic acquisition and $0.3 million of
expense associated with the deferred compensation arrangement resulting
from the Amendment to the Swyft Merger Agreement. For the three months
ended March 31, 2017, the amount includes $0.9 million of expense
associated with the deferred compensation arrangement resulting from the
Olapic acquisition and $0.5 million of expense associated with the
deferred compensation arrangement resulting from the Amendment to the
Swyft Merger Agreement.
(2) For the three months ended March 31,
2018, the amount includes $2.7 million of advisor fees related to
shareholder activities, $2.2 million of royalty expense, recorded in
cost of sales, associated with revenue that is not recognized under ASC
606 and $0.2 million of restructuring expenses.
|
MONOTYPE IMAGING HOLDINGS INC. OTHER INFORMATION (Unaudited and in thousands, except share and per share amounts) |
||||||||||
|
RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP NET INCOME |
||||||||||
|
Three Months Ended March 31, |
||||||||||
| 2018 | 2017 | |||||||||
|
GAAP net loss available to common stockholders - diluted |
$ | (1,199 | ) | $ | (1,075 | ) | ||||
|
Amortization, net of tax of $440 and $162, respectively |
1,448 | 1,727 | ||||||||
|
Stock based compensation, net of tax of $710 and $415, respectively |
3,537 | 4,416 | ||||||||
| Acquisition-related compensation, net of tax of $0 and $0, respectively(1) | 1,189 | 1,407 | ||||||||
|
Non-recurring expense, net of tax of $1,192 and $0, respectively(2) |
3,922 | — | ||||||||
| Non-GAAP net income | $ | 8,897 | $ | 6,475 | ||||||
(1) For the three months ended March 31, 2018, the amount includes $0.9
million of expense associated with the deferred compensation arrangement
resulting from the Olapic acquisition and $0.3 million of expense
associated with the deferred compensation arrangement resulting from the
Amendment to the Swyft Merger Agreement. For the three months ended
March 31, 2017, the amount includes $0.9 million of expense associated
with the deferred compensation arrangement resulting from the Olapic
acquisition and $0.5 million of expense associated with the deferred
compensation arrangement resulting from the Amendment to the Swyft
Merger Agreement.
(2) For the three months ended March 31, 2018,
the amount includes $2.1 million of advisor fees related to shareholder
activities, $1.7 million of royalty expense, recorded in cost of sales,
associated with revenue that is not recognized under ASC 606 and $0.1
million of restructuring expenses.
|
RECONCILIATION OF GAAP EARNINGS (LOSS) PER DILUTED SHARE TO NON-GAAP EARNINGS PER DILUTED SHARE |
||||||||||
|
Three Months Ended March 31, |
||||||||||
| 2018 | 2017 | |||||||||
| GAAP loss per diluted share | $ | (0.03 | ) | $ | (0.03 | ) | ||||
|
Amortization, net of tax of $0.01 and $0.00, respectively |
0.04 | 0.04 | ||||||||
|
Stock based compensation, net of tax of $0.02 and $0.01, respectively |
0.09 | 0.11 | ||||||||
| Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively(1) | 0.03 | 0.04 | ||||||||
| Non-recurring expense, net of tax of $0.03 and $0.00, respectively(2) | 0.09 | — | ||||||||
|
Non-GAAP earnings per diluted share |
$ | 0.22 | $ | 0.16 | ||||||
(1) For the three months ended March 31, 2018, the amount includes $0.9
million, or $0.02 per share, of expense associated with the deferred
compensation arrangement resulting from the Olapic acquisition and $0.3
million, or $0.01 per share, of expense associated with the deferred
compensation arrangement resulting from the Amendment to the Swyft
Merger Agreement. For the three months ended March 31, 2017, the amount
includes $0.9 million, or $0.02 per share, of expense associated with
the deferred compensation arrangement resulting from the Olapic
acquisition and $0.5 million, or $0.02 per share, of expense associated
with the deferred compensation arrangement resulting from the Amendment
to the Swyft Merger Agreement.
(2) For the three months ended
March 31, 2018, the amount includes $2.1 million, or $0.05 per share, of
advisor fees related to shareholder activities and $1.7 million, or
$0.04 per share, of royalty expense, recorded in cost of sales,
associated with revenue that is not recognized under ASC 606 and $0.1
million, or $0.00 per share, of restructuring expenses.
|
MONOTYPE IMAGING HOLDINGS INC. OTHER INFORMATION (Unaudited and in thousands) |
||||||||
|
OTHER INFORMATION |
||||||||
|
Stock based compensation is comprised of the following: |
||||||||
|
Three Months Ended March 31, |
||||||||
| 2018 | 2017 | |||||||
| Marketing and selling | $ | 1,734 | $ | 2,330 | ||||
| Research and development | 988 | 1,018 | ||||||
| General and administrative | 1,525 | 1,483 | ||||||
| Total expensed | 4,247 | 4,831 | ||||||
| Property and equipment | 14 | 22 | ||||||
| Total stock based compensation | $ | 4,261 | $ | 4,853 | ||||
|
MARKET INFORMATION |
||||||||
|
The following table presents revenue for our two major markets: |
||||||||
|
Three Months Ended March 31, |
||||||||
| 2018 | 2017 | |||||||
|
Creative Professional |
$ | 34,998 | $ | 27,071 | ||||
| OEM | 21,685 | 25,394 | ||||||
| Total | $ | 56,683 | $ | 52,465 | ||||
|
MONOTYPE IMAGING HOLDINGS INC. OTHER INFORMATION (Unaudited and in thousands, except share and per share data) |
||||||||
|
RECONCILIATION OF FORECAST GAAP EARNINGS PER DILUTED SHARE TO FORECAST NON-GAAP EARNINGS PER DILUTED SHARE |
||||||||
|
Low End of |
High End of |
|||||||
| Q2 2018 | Q2 2018 | |||||||
| GAAP net income | $ | - | $ |
1,100 |
||||
|
Amortization, net of tax of $1,300 and $1,300, respectively |
700 | 700 | ||||||
|
Share based compensation, net of tax of $3,200 and $3,200, respectively |
1,700 | 1,700 | ||||||
|
Non-recurring expense, net of tax of $0 and $0, respectively |
- | - | ||||||
|
Contingent consideration adjustment, net of tax of $0 and $0, respectively |
1,200 |
1,200 |
||||||
| Non-GAAP net income | $ | 3,600 | $ |
4,700 |
||||
| GAAP earnings per diluted share | $ | - | $ |
0.03 |
||||
|
Amortization, net of tax of $0.03 and $0.03, respectively, per diluted share |
0.02 |
0.02 |
||||||
|
Share based compensation, net of tax of $0.08 and $0.08, respectively, per diluted share |
0.04 |
0.04 |
||||||
|
Non-recurring expense, net of tax of $0.00 and $0.00, respectively, per diluted share |
- |
- |
||||||
|
Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively, per diluted share |
0.03 |
0.03 |
||||||
| Non-GAAP earnings per diluted share | $ | 0.09 | $ |
0.12 |
||||
|
Weighted average diluted shares used to compute earnings per share |
40,600,000 | 40,600,000 | ||||||
|
Assumes 65% effective tax rate. |
||||||||
|
|
Low End of |
High End of |
||||||
| 2018 | 2018 | |||||||
| GAAP net income | $ | 3,800 | $ | 6,200 | ||||
|
Amortization, net of tax of $5,000 and $5,000, respectively |
2,600 | 2,600 | ||||||
|
Share based compensation, net of tax of $12,500 and $12,500, respectively |
6,700 | 6,700 | ||||||
|
Non-recurring expense, net of tax of $3,300 and $3,300, respectively |
1,800 | 1,800 | ||||||
| Contingent consideration adjustment, net of tax of $0 and $0, respectively | 4,000 | 4,000 | ||||||
|
Non-GAAP net income |
18,900 | 21,300 | ||||||
| GAAP earnings per diluted share | $ |
0.10 |
$ | 0.15 | ||||
|
Amortization, net of tax of $0.12 and $0.12, respectively, per diluted share |
0.06 |
0.06 |
||||||
|
Share based compensation, net of tax of $0.31 and $0.31, respectively, per diluted share |
0.17 |
0.17 |
||||||
|
Non-recurring expense, net of tax of $0.08 and $0.08, respectively, per diluted share |
0.04 |
0.04 |
||||||
|
Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively, per diluted share |
0.10 |
0.10 |
||||||
| Non-GAAP earnings per diluted share | $ | 0.47 | $ | 0.52 | ||||
| Weighted average diluted shares used to compute earnings per share | 40,600,000 | 40,600,000 | ||||||
|
Assumes 65% effective tax rate. |
||||||||
|
MONOTYPE IMAGING HOLDINGS INC. RECONCILIATION OF FORECAST GAAP NET INCOME TO FORECAST NON-GAAP NET ADJUSTED EBITDA (Unaudited and in thousands) |
||||||||
|
Low End of |
High End of |
|||||||
| Q2 2018 | Q2 2018 | |||||||
| GAAP net income | $ | - | $ |
1,100 |
||||
| Interest, net | 1,100 | 1,100 | ||||||
| Other (income) expense, net | 500 | 500 | ||||||
| Provision for income taxes | - | 1,900 | ||||||
| Income from operations | 1,600 |
4,600 |
||||||
| Depreciation and amortization | 3,400 | 3,400 | ||||||
| Share based compensation | 4,800 | 4,800 | ||||||
| Non-recurring expense | - | - | ||||||
|
Acquisition-related compensation |
1,200 | 1,200 | ||||||
| Non-GAAP net adjusted EBITDA | $ | 11,000 | $ |
14,000 |
||||
|
Low End of |
High End of Guidance |
|||||||
| 2018 | 2018 | |||||||
| GAAP net income | $ | 3,800 | $ | 6,200 | ||||
| Interest, net | 4,300 | 4,300 | ||||||
| Other (income) expense, net | 2,500 | 2,500 | ||||||
| Provision for income taxes | 7,000 | 11,600 | ||||||
| Income from operations | 17,600 | 24,600 | ||||||
| Depreciation and amortization | 13,600 | 13,600 | ||||||
| Share based compensation | 19,200 | 19,200 | ||||||
| Non-recurring expense | 5,100 | 5,100 | ||||||
|
Acquisition-related compensation |
4,000 | 4,000 | ||||||
| Non-GAAP net adjusted EBITDA | $ | 59,500 | $ | 66,500 | ||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180427005183/en/
Der finanzen.at Ratgeber für Aktien!
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!
Nachrichten zu Monotype Imaging Holdings IncShsmehr Nachrichten
| Keine Nachrichten verfügbar. |
Analysen zu Monotype Imaging Holdings IncShsmehr Analysen
Nachrichten
ETF-Sparplan
Oskar ist der einfache und intelligente ETF-Sparplan. Er übernimmt die ETF-Auswahl, ist steuersmart, transparent und kostengünstig.