[August 06, 2014] |
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Fleetmatics Announces Second Quarter 2014 Financial Results
Dublin, Ireland and Boston, Massachusetts --(Business Wire)--
Fleetmatics Group PLC (NYSE: FLTX), a leading global provider of mobile
workforce solutions for service-based businesses of all sizes delivered
as software-as-a-service (SaaS), today announced financial results for
its second quarter ended June 30, 2014.
"We are pleased to report another solid quarter and a great first half
of the year, growing our revenues by 30% and our subscriber base by 29%
year-over-year, while continuing to be a market leader in the fleet
management space," stated Jim Travers, Chairman and Chief Executive
Officer of Fleetmatics. "During the quarter, our ability to meet or
exceed our revenue and profitability expectations was driven by solid
execution by our team, particularly to SMB customers. The combination of
the recent introduction of our new platform, new product offering, and
our international expansion positions Fleetmatics to increase market
share worldwide."
Second Quarter 2014 Financial Highlights
-
Revenue: Total revenue for the second quarter was $55.3
million, an increase of 30.0% compared to $42.5 million for the second
quarter of 2013.
-
Gross Profit: GAAP gross profit for the second quarter was
$40.7 million, compared to $31.7 million for the second quarter of
2013. GAAP gross margin was 73.7% compared to 74.5% for the same
period in 2013. Non-GAAP gross profit, which excludes share-based
compensation and amortization of intangible assets, was $41.2 million
for the quarter compared to $31.8 million in the year ago period.
Non-GAAP gross margin was 74.5% for the second quarter of 2014,
compared to 74.9% during the same period last year.
-
Operating Income: GAAP operating income for the second quarter
was $4.6 million, compared to $8.6 million for the second quarter of
2013. Non-GAAP operating income, which excludes share-based
compensation, amortization of intangible assets and other items as
defined in "Non-GAAP Financial Measures", was $8.9 million, compared
to $10.9 million for the second quarter of 2013.
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Net Income: GAAP net income for the second quarter was $3.2
million, compared to $5.7 million for the same period last year. GAAP
net income per share for the second quarter was $0.08 based on 38.4
million weighted-average diluted shares outstanding, compared to $0.16
for the same period last year, based on 36.4 million weighted-average
diluted shares outstanding, for the same period last year.
Non-GAAP
adjusted earnings, which excludes share-based compensation,
amortization of intangible assets and other items as defined below in
"Non-GAAP Financial Measures", was $6.8 million for the second
quarter, compared to $8.3 million for the second quarter of 2013.
Non-GAAP adjusted earnings per share for the second quarter was $0.18
per share based on 38.4 million weighted-average diluted shares
outstanding compared to $0.23 per share, based on 36.4 million
weighted-average diluted shares outstanding for the same period last
year.
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Adjusted EBITDA: Adjusted EBITDA for the second quarter was
$15.0 million, compared to $14.2 million for the second quarter of
2013. Adjusted EBITDA margin was 27.2% for the second quarter of 2014,
compared to a 33.5% margin for the same period last year. Adjusted
EBITDA is defined as net income (loss) plus (benefit) provision for
income taxes; interest (income) expense, net; foreign currency
transaction (gain) loss, net; depreciation and amortization of
property and equipment; amortization of capitalized in-vehicle devices
owned by customers; amortization of intangible assets; share-based
compensation; and other items as defined below in "Non-GAAP Financial
Measures."
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial statement tables included in this press
release. An explanation of these measures is also included below under
the heading "Non-GAAP Financial Measures."
-
Balance Sheet: As of June 30, 2014, Fleetmatics had cash of
$155.5 million, an increase of $7.3 million since March 31, 2014.
During the second quarter of 2014, the Company generated $13.6 million
in net cash from operations and invested $11.2 million in purchases of
property and equipment and capitalization of internally developed
software, resulting in free cash flow of positive $2.4 million. During
the second quarter of 2013, the Company generated $11.1 million in net
cash from operations and invested $9.5 million in capital expenditures
and capitalization of software, resulting in free cash flow of positive
$1.6 million.
Second Quarter 2014 Operating Highlights
-
Fleetmatics ended the second quarter of 2014 with over 499,000 active
vehicles under subscription, up 28.6% compared to over 388,000 during
the second quarter of 2013.
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Quarterly net churn during the second quarter of 2014 was 1.1%,
compared to 1.3% during the second quarter of 2013, which excludes the
impact of a large enterprise customer. An explanation of this measure
is included below under the heading "Non-GAAP Financial Measures."
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Fleetmatics acquired Florence, Italy-based KKT Srl, the developer of
Routist, a SaaS-based, intelligent vehicle routing solution for
businesses looking to optimize the utilization of their fleets and
mobile resources.
Financial Outlook
As of August 6, 2014, Fleetmatics is providing guidance for the third
quarter of 2014 and full year 2014 as follows:
Third Quarter 2014 Guidance: Total revenue is expected to be in
the range of $58.2 million to $59.5 million. Adjusted EBITDA is expected
to be in the range of $16.0 million to $17.0 million. Non-GAAP adjusted
earnings per share is expected to be in the range of $0.21 to $0.23
based on approximately 38.7 million weighted-average diluted shares
outstanding.
Full Year 2014 Guidance: Total revenue is expected to be in the
range of $228.0 million to $230.0 million, which represents growth of
29.1% year-over-year at the midpoint. Adjusted EBITDA is expected to be
in the range of $62.8 million to $65.3 million. Non-GAAP diluted
adjusted earnings per share is expected to be in the range of $0.82 to
$0.87 based on approximately 38.7 million weighted-average diluted
shares outstanding.
Quarterly Conference Call
Fleetmatics will host a conference call today at 5:00 p.m. EDT to
discuss the Company's financial results for the second quarter 2014, its
business outlook and other matters. To access this call, dial
+1-888-481-2864 (United States), or +1-719-325-2381 (international),
with conference ID #8681119. A live webcast of this conference call will
also be available on the investor relations portion of the Company's
website at ir.fleetmatics.com,
and a replay will be archived on the website as well. A replay of this
conference call will also be available through August 20, 2014, by
dialing +1-877-870-5176 (United States), or +1-858-384-5517
(international). The recording access code is #8681119.
About Fleetmatics Group PLC
Fleetmatics Group PLC is a leading global provider of mobile workforce
solutions for service-based businesses of all sizes delivered as
software-as-a-service (SaaS). Our solutions enable businesses to meet
the challenges associated with managing local fleets, and improve the
productivity of their mobile workforces, by extracting actionable
business intelligence from real-time and historical vehicle and driver
behavioral data.
Fleetmatics Group's intuitive, cost-effective Web-based solutions
provide fleet operators with visibility into vehicle location, fuel
usage, speed and mileage, and other insights into their mobile
workforce, enabling them to reduce operating and capital costs, as well
as increase revenue. An integrated, full-featured mobile workforce
management product provides additional efficiencies related to job
management by empowering the field worker and speeding the job
completion process - quote through payment. As of June 30, 2014,
Fleetmatics served over 23,000 customers, with over 499,000 subscribed
vehicles worldwide.
To learn more about Fleetmatics, visit www.fleetmatics.com.
Non-GAAP Financial Measures
In this release, Fleetmatics' non-GAAP gross profit, non-GAAP gross
margin, non-GAAP operating income, non-GAAP adjusted earnings, non-GAAP
diluted adjusted earnings per share, adjusted EBITDA and adjusted EBITDA
margin are not presented in accordance with generally accepted
accounting principles (GAAP) and are not intended to be used in lieu of
GAAP presentations of results of operations. Non-GAAP gross profit and
non-GAAP gross margin exclude share-based compensation and amortization
of intangible assets. Non-GAAP operating income, non-GAAP adjusted
earnings and non-GAAP diluted adjusted earnings per share exclude
share-based compensation; amortization of intangible assets; foreign
currency transaction (gain) loss; certain non-recurring litigation and
settlement costs; certain non-recurring secondary public offering costs;
acquisition-related transaction costs; the tax effects related to these
items, and the tax reserve component of the income tax provision.
Adjusted EBITDA is defined as net income (loss) plus (benefit) provision
for income taxes; interest (income) expense, net; foreign currency
transaction (gain) loss, net; depreciation and amortization of property
and equipment; amortization of capitalized in-vehicle devices owned by
customers; amortization of intangible assets; share-based compensation;
certain non-recurring litigation and settlement costs; certain
non-recurring secondary public offering costs; and acquisition-related
transaction costs.
We calculate our net churn for a period by dividing (i) the number of
vehicles under subscription added from existing customers less vehicles
under subscription lost from existing customers over that period by (ii)
the total vehicles under subscription at the beginning of that period. A
positive net churn in each period means we added more vehicles from
existing customers than we lost from those customers during the
particular period.
Management presents these non-GAAP financial measures because it
considers them to be important supplemental measures of performance.
Management uses the non-GAAP financial measures for planning purposes,
including analysis of the company's performance against prior periods,
the preparation of operating budgets and to determine appropriate levels
of operating and capital investments. Management also believes that the
non-GAAP financial measures provide additional insight for analysts and
investors in evaluating the company's financial and operational
performance. However, these non-GAAP financial measures have limitations
as an analytical tool and are not intended to be an alternative to
financial measures prepared in accordance with GAAP. We intend to
provide these non-GAAP financial measures as part of our future earnings
discussions and, therefore, the inclusion of these non-GAAP financial
measures will provide consistency in our financial reporting. Investors
are encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measures. A
reconciliation of our non-GAAP financial measures to their most directly
comparable GAAP measures has been provided in the financial statement
tables included below in this press release.
The Company's earnings press releases containing such non-GAAP
reconciliations can be found on the Investors section of the Company's
web site at ir.fleetmatics.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements about our future market share and our expected
financial results for the third quarter of 2014 and the full year of
2014. These forward-looking statements include, but are not limited to:
plans, objectives, expectations and intentions and other statements
contained in this press release that are not historical facts and
statements identified by words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates" or words of similar
meaning. These forward-looking statements reflect our current views
about our plans, intentions, expectations, strategies and prospects,
which are based on the information currently available to us and on
assumptions we have made. Although we believe that our plans,
intentions, expectations, strategies and prospects as reflected in or
suggested by those forward-looking statements are reasonable, we can
give no assurance that the plans, intentions, expectations or strategies
will be attained or achieved. Furthermore, actual results may differ
materially from those described in the forward-looking statements and
will be affected by a variety of risks and factors that are beyond our
control including, without limitation, risks associated with our ability
to effectively and efficiently attract, sell to and retain SMB
customers; our ability to attract customers on a cost-effective basis;
our dependence on various lead generation programs; our ability to
retain and increase sales to our existing customers; our ability to
successfully complete and integrate acquisitions; expectations regarding
the widespread adoption of fleet management solutions; our ability to
expand the sales of our products to customers located outside the U.S.;
our ability to continue to compete in a highly fragmented market and the
risk of future competitors by way of recent and future acquisitions or
otherwise; keeping up with the rapid technological change required to
remain competitive in our industry; our ability to migrate customers to
newer technologies; and the impact of adverse economic conditions on
information technology spending by SMB business, collection of our
accounts receivable and other risks set forth under the caption "Risk
Factors" in the Company's annual report on Form 10-K filed with the
Securities and Exchange Commission on March 17, 2014, as updated by our
subsequently filed quarterly reports on Form 10-Q, annual reports on
Form 10-K and other filings that we make with the Securities and
Exchange Commission. We assume no obligation to update any
forward-looking statements contained in this document as a result of new
information, future events or otherwise.
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FLEETMATICS GROUP PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
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Three Months Ended June 30,
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Six Months Ended June 30,
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2014
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2013
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2014
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2013
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Subscription revenue
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$
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55,268
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$
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42,529
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$
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107,165
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$
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80,948
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Cost of subscription revenue
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14,534
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10,834
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27,280
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20,831
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Gross profit
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40,734
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31,695
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79,885
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60,117
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Operating expenses:
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Sales and marketing
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22,049
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13,600
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40,411
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26,201
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Research and development
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4,613
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2,461
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8,790
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4,555
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General and administrative
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9,486
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7,080
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20,758
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15,020
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Total operating expenses
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36,148
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23,141
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69,959
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45,776
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Income from operations
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4,586
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8,554
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9,926
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14,341
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Interest income (expense), net
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(210
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)
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(372
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)
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(373
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)
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(738
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)
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Foreign currency transaction gain (loss), net
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402
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(300
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)
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354
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(656
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)
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Other income (expense), net
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-
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-
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41
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-
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Income before income taxes
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4,778
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7,882
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9,948
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12,947
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Provision for income taxes
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1,545
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|
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2,200
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3,087
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4,305
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Net income
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$
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3,233
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$
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5,682
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$
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6,861
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$
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8,642
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Net income per share:
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Basic
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$
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0.09
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$
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0.16
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$
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0.18
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$
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0.25
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Diluted
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$
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0.08
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$
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0.16
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$
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0.18
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$
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0.24
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Weighted average ordinary shares outstanding:
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Basic
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37,411,223
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34,990,936
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37,271,047
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34,802,543
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Diluted
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38,360,498
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36,441,602
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38,376,232
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36,353,988
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FLEETMATICS GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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June 30, 2014
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December 31, 2013
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(Unaudited)
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Assets
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Current assets:
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Cash
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$
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155,473
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$
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137,171
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Restricted cash
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-
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64
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Accounts receivable, net of allowances of $1,827 and $1,395 at June
30, 2014 and December 31, 2013, respectively
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14,717
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20,240
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Deferred tax assets
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6,746
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6,505
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Prepaid expenses and other current assets
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20,752
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13,675
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Total current assets
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197,688
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177,655
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Property and equipment, net
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72,744
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61,732
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Goodwill
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30,161
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28,706
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Intangible assets, net
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7,714
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7,765
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Deferred tax assets, net
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1,009
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1,282
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Other assets
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|
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10,561
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9,399
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Total assets
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$
|
319,877
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$
|
286,539
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Liabilities and Shareholders' Equity
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Current liabilities:
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Accounts payable
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$
|
10,586
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|
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$
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9,952
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Accrued expenses and other current liabilities
|
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20,882
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|
14,855
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Deferred revenue
|
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|
|
|
24,099
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|
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|
21,163
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Total current liabilities
|
|
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|
55,567
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|
|
|
45,970
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Deferred revenue
|
|
|
|
|
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10,931
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|
|
|
9,029
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Accrued income taxes
|
|
|
|
|
|
3,245
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|
|
|
2,094
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Long-term debt
|
|
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|
|
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23,750
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23,750
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Other liabilities
|
|
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|
|
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4,758
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|
|
3,888
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Total liabilities
|
|
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|
|
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98,251
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|
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84,731
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Total shareholders' equity
|
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|
|
221,626
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|
|
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201,808
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Total liabilities and shareholders' equity
|
|
|
|
|
$
|
319,877
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|
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$
|
286,539
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FLEETMATICS GROUP PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
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Six Months Ended June 30,
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2014
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2013
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Cash flows from operating activities:
|
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Net income
|
|
|
|
|
$
|
6,861
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|
|
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$
|
8,642
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Adjustments to reconcile net income to net cash provided by
operating activities:
|
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Depreciation and amortization of property and equipment
|
|
|
|
|
|
10,116
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|
|
|
|
6,065
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Amortization of capitalized in-vehicle devices owned by customers
|
|
|
|
|
|
658
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|
|
|
|
446
|
|
Amortization of intangible assets
|
|
|
|
|
|
1,221
|
|
|
|
|
934
|
|
Amortization of deferred commissions, other deferred costs and debt
discount
|
|
|
|
|
|
3,791
|
|
|
|
|
2,989
|
|
Provision for (benefit from) deferred tax assets
|
|
|
|
|
|
(284
|
)
|
|
|
|
(73
|
)
|
Provision for accounts receivable allowances
|
|
|
|
|
|
985
|
|
|
|
|
697
|
|
Unrealized foreign currency transaction (gain) loss
|
|
|
|
|
|
(388
|
)
|
|
|
|
640
|
|
Loss on disposal of property and equipment and other assets
|
|
|
|
|
|
778
|
|
|
|
|
1,499
|
|
Share-based compensation
|
|
|
|
|
|
6,427
|
|
|
|
|
2,205
|
|
Excess tax benefits on share-based awards
|
|
|
|
|
|
(8,752
|
)
|
|
|
|
-
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
4,677
|
|
|
|
|
(3,094
|
)
|
Prepaid expenses and other current and long-term assets
|
|
|
|
|
|
(3,219
|
)
|
|
|
|
(4,288
|
)
|
Accounts payable, accrued expenses and other current liabilities
|
|
|
|
|
|
5,008
|
|
|
|
|
2,252
|
|
Accrued income taxes
|
|
|
|
|
|
1,149
|
|
|
|
|
668
|
|
Deferred revenue
|
|
|
|
|
|
4,822
|
|
|
|
|
3,614
|
|
Net cash provided by operating activities
|
|
|
|
|
|
33,850
|
|
|
|
|
23,196
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
|
(18,390
|
)
|
|
|
|
(17,542
|
)
|
Capitalization of internal-use software costs
|
|
|
|
|
|
(1,342
|
)
|
|
|
|
(904
|
)
|
Proceeds from sale of property and equipment
|
|
|
|
|
|
41
|
|
|
|
|
-
|
|
Payment for business acquired, net of cash acquired
|
|
|
|
|
|
(2,228
|
)
|
|
|
|
-
|
|
Net decrease in restricted cash
|
|
|
|
|
|
64
|
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
|
|
|
(21,855
|
)
|
|
|
|
(18,446
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Payments of Term Loan
|
|
|
|
|
|
-
|
|
|
|
|
(625
|
)
|
Proceeds from exercise of stock options
|
|
|
|
|
|
1,391
|
|
|
|
|
2,625
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
|
|
(3,150
|
)
|
|
|
|
-
|
|
Excess tax benefits from share-based awards
|
|
|
|
|
|
8,752
|
|
|
|
|
-
|
|
Payments of previously accrued initial public offering costs
|
|
|
|
|
|
-
|
|
|
|
|
(1,329
|
)
|
Payments of capital lease obligations
|
|
|
|
|
|
(365
|
)
|
|
|
|
(180
|
)
|
Payments of notes payable
|
|
|
|
|
|
(179
|
)
|
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
|
|
|
6,449
|
|
|
|
|
491
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
|
(142
|
)
|
|
|
|
(119
|
)
|
Net increase in cash
|
|
|
|
|
|
18,302
|
|
|
|
|
5,122
|
|
Cash, beginning of period
|
|
|
|
|
|
137,171
|
|
|
|
|
100,087
|
|
Cash, end of period
|
|
|
|
|
$
|
155,473
|
|
|
|
$
|
105,209
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
|
|
|
$
|
348
|
|
|
|
$
|
658
|
|
Cash paid (refunds received), net for income taxes
|
|
|
|
|
$
|
742
|
|
|
|
$
|
1,205
|
|
Supplemental disclosure of non-cash financing and investing
activities:
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment and software through capital
leases and note payable
|
|
|
|
|
$
|
1,940
|
|
|
|
$
|
-
|
|
Additions to property and equipment included in accounts payable or
accrued expenses at the balance sheet dates
|
|
|
|
|
$
|
2,433
|
|
|
|
$
|
1,300
|
|
Issuance of ordinary shares under employee share purchase plan
|
|
|
|
|
$
|
441
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND OPERATING
INCOME
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit GAAP
|
|
|
|
|
$
|
40,734
|
|
|
$
|
31,695
|
|
|
|
$
|
79,885
|
|
|
$
|
60,117
|
|
Share-based compensation
|
|
|
|
|
|
172
|
|
|
|
101
|
|
|
|
|
319
|
|
|
|
143
|
|
Amortization of intangible assets
|
|
|
|
|
|
291
|
|
|
|
52
|
|
|
|
|
549
|
|
|
|
104
|
|
Gross Profit Non-GAAP
|
|
|
|
|
$
|
41,197
|
|
|
$
|
31,848
|
|
|
|
$
|
80,753
|
|
|
$
|
60,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
|
|
$
|
55,268
|
|
|
$
|
42,529
|
|
|
|
$
|
107,165
|
|
|
$
|
80,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
73.7
|
%
|
|
|
74.5
|
%
|
|
|
|
74.5
|
%
|
|
|
74.3
|
%
|
Non-GAAP
|
|
|
|
|
|
74.5
|
%
|
|
|
74.9
|
%
|
|
|
|
75.4
|
%
|
|
|
74.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income GAAP
|
|
|
|
|
$
|
4,586
|
|
$
|
8,554
|
|
|
|
$
|
9,926
|
|
$
|
14,341
|
Share-based compensation
|
|
|
|
|
|
3,423
|
|
|
1,601
|
|
|
|
|
6,427
|
|
|
2,205
|
Amortization of intangible assets
|
|
|
|
|
|
627
|
|
|
467
|
|
|
|
|
1,221
|
|
|
934
|
Secondary public offering costs
|
|
|
|
|
|
-
|
|
|
256
|
|
|
|
|
-
|
|
|
893
|
Litigation and settlements
|
|
|
|
|
|
97
|
|
|
(72
|
)
|
|
|
|
217
|
|
|
288
|
Acquisition-related transaction costs
|
|
|
|
|
|
129
|
|
|
114
|
|
|
|
|
218
|
|
|
114
|
Operating income Non-GAAP
|
|
|
|
|
$
|
8,862
|
|
$
|
10,920
|
|
|
|
$
|
18,009
|
|
$
|
18,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Reconciliation of Net Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
3,233
|
|
|
$
|
5,682
|
|
|
|
$
|
6,861
|
|
|
$
|
8,642
|
|
Provision for income taxes
|
|
|
|
|
|
1,545
|
|
|
|
2,200
|
|
|
|
|
3,087
|
|
|
|
4,305
|
|
Interest (income) expense, net
|
|
|
|
|
|
210
|
|
|
|
372
|
|
|
|
|
373
|
|
|
|
738
|
|
Foreign currency transaction (gain) loss, net
|
|
|
|
|
|
(402
|
)
|
|
|
300
|
|
|
|
|
(354
|
)
|
|
|
656
|
|
Depreciation and amortization of property and equipment
|
|
|
|
|
|
5,813
|
|
|
|
3,073
|
|
|
|
|
10,116
|
|
|
|
6,065
|
|
Amortization of capitalized in-vehicle devices owned by customers
|
|
|
|
|
|
372
|
|
|
|
233
|
|
|
|
|
658
|
|
|
|
446
|
|
Amortization of intangible assets
|
|
|
|
|
|
627
|
|
|
|
467
|
|
|
|
|
1,221
|
|
|
|
934
|
|
Share-based compensation
|
|
|
|
|
|
3,423
|
|
|
|
1,601
|
|
|
|
|
6,427
|
|
|
|
2,205
|
|
Secondary public offering costs
|
|
|
|
|
|
-
|
|
|
|
256
|
|
|
|
|
-
|
|
|
|
893
|
|
Litigation and settlements
|
|
|
|
|
|
97
|
|
|
|
(72
|
)
|
|
|
|
217
|
|
|
|
288
|
|
Acquisition-related transaction costs
|
|
|
|
|
|
129
|
|
|
|
114
|
|
|
|
|
218
|
|
|
|
114
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
15,047
|
|
|
$
|
14,226
|
|
|
|
$
|
28,824
|
|
|
$
|
25,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
|
|
$
|
55,268
|
|
|
$
|
42,529
|
|
|
|
$
|
107,165
|
|
|
$
|
80,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
27.2
|
%
|
|
|
33.5
|
%
|
|
|
|
26.9
|
%
|
|
|
31.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS
AND EPS
(In thousands, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
3,233
|
|
|
$
|
5,682
|
|
|
|
$
|
6,861
|
|
|
$
|
8,642
|
|
Amortization of intangible assets
|
|
|
|
|
|
627
|
|
|
|
467
|
|
|
|
|
1,221
|
|
|
|
934
|
|
Share-based compensation
|
|
|
|
|
|
3,423
|
|
|
|
1,601
|
|
|
|
|
6,427
|
|
|
|
2,205
|
|
Foreign currency transaction (gain) loss, net
|
|
|
|
|
|
(402
|
)
|
|
|
300
|
|
|
|
|
(354
|
)
|
|
|
656
|
|
Secondary public offering costs
|
|
|
|
|
|
-
|
|
|
|
256
|
|
|
|
|
-
|
|
|
|
893
|
|
Litigation and settlements
|
|
|
|
|
|
97
|
|
|
|
(72
|
)
|
|
|
|
217
|
|
|
|
288
|
|
Acquisition-related transaction costs
|
|
|
|
|
|
129
|
|
|
|
114
|
|
|
|
|
218
|
|
|
|
114
|
|
Tax effect of non-GAAP adjustments above at 15%
|
|
|
|
|
|
(581
|
)
|
|
|
(400
|
)
|
|
|
|
(1,159
|
)
|
|
|
(764
|
)
|
Tax reserve component of income tax provision
|
|
|
|
|
|
262
|
|
|
|
391
|
|
|
|
|
525
|
|
|
|
821
|
|
Adjusted earnings
|
|
|
|
|
$
|
6,788
|
|
|
$
|
8,339
|
|
|
|
$
|
13,956
|
|
|
$
|
13,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding - diluted
|
|
|
|
|
|
38,360,498
|
|
|
|
36,441,602
|
|
|
|
|
38,376,232
|
|
|
|
36,353,988
|
|
Non-GAAP adjusted EPS
|
|
|
|
|
$
|
0.18
|
|
|
$
|
0.23
|
|
|
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLEETMATICS GROUP PLC
RECONCILIATION TO NON-GAAP INCOME
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
|
2013
|
Cost of subscription revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
$
|
172
|
|
|
$
|
101
|
|
|
|
$
|
319
|
|
|
|
$
|
143
|
Amortization of intangible assets
|
|
|
|
|
|
291
|
|
|
|
52
|
|
|
|
|
549
|
|
|
|
|
104
|
Subtotal cost of subscription revenue
|
|
|
|
|
|
463
|
|
|
|
153
|
|
|
|
|
868
|
|
|
|
|
247
|
Sales and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
1,329
|
|
|
|
560
|
|
|
|
|
2,502
|
|
|
|
|
803
|
Amortization of intangible assets
|
|
|
|
|
|
336
|
|
|
|
415
|
|
|
|
|
672
|
|
|
|
|
830
|
Subtotal sales and marketing
|
|
|
|
|
|
1,665
|
|
|
|
975
|
|
|
|
|
3,174
|
|
|
|
|
1,633
|
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
468
|
|
|
|
256
|
|
|
|
|
865
|
|
|
|
|
308
|
Subtotal research and development
|
|
|
|
|
|
468
|
|
|
|
256
|
|
|
|
|
865
|
|
|
|
|
308
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
1,454
|
|
|
|
684
|
|
|
|
|
2,741
|
|
|
|
|
951
|
Secondary public offering costs
|
|
|
|
|
|
-
|
|
|
|
256
|
|
|
|
|
-
|
|
|
|
|
893
|
Litigation and settlements
|
|
|
|
|
|
97
|
|
|
|
(72
|
)
|
|
|
|
217
|
|
|
|
|
288
|
Acquisition-related transaction costs
|
|
|
|
|
|
129
|
|
|
|
114
|
|
|
|
|
218
|
|
|
|
|
114
|
Subtotal general and administrative
|
|
|
|
|
|
1,680
|
|
|
|
982
|
|
|
|
|
3,176
|
|
|
|
|
2,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction (gain) loss, net
|
|
|
|
|
|
(402
|
)
|
|
|
300
|
|
|
|
|
(354
|
)
|
|
|
|
656
|
Tax effect of non-GAAP adjustments, net of tax reserve component of
income tax provision
|
|
|
|
|
|
(319
|
)
|
|
|
(9
|
)
|
|
|
|
(634
|
)
|
|
|
|
57
|
Total expense add-backs
|
|
|
|
|
$
|
3,555
|
|
|
$
|
2,657
|
|
|
|
$
|
7,095
|
|
|
|
$
|
5,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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