[August 06, 2015] |
|
Fleetmatics Reports Strong Second Quarter Financial Results
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, 2015.
"Our strong second quarter results continue to reflect the powerful
leverage in our business model," said Jim Travers, Chairman and Chief
Executive Officer of Fleetmatics. "We are particularly pleased with the
addition of 31,000 new vehicle subscriptions in the second quarter, our
ability to secure important strategic wins in larger fleets, and in the
progress we are making to develop beachheads in key international
markets. Longer term, we remain well positioned to deliver on the
strategic and financial objectives we outlined at Fleetmatics Analyst
Day 2015."
Results for the Second Quarter of 2015 Total revenue for the
second quarter of 2015 was $68.6 million, an increase of 24% compared to
$55.3 million for the second quarter of 2014. GAAP net income for the
second quarter of 2015 was $5.4 million, or $0.14 per diluted share,
compared to $3.2 million, or $0.08 per diluted share, for the second
quarter of 2014. Non-GAAP1 adjusted earnings for the second
quarter of 2015 was $13.1 million, or $0.33 per diluted share, compared
to $6.8 million, or $0.18 per diluted share, for the second quarter of
2014. Adjusted EBITDA1 for the second quarter of 2015 was
$21.2 million, an increase of 41% compared to $15.0 million for the
second quarter of 2014. Adjusted EBITDA1 margin for the
second quarter of 2015 was 31.0% compared to 27.2% for the second
quarter of 2014. As of June 30, 2015, the Company had cash of $179.6
million compared to $172.2 million at March 31, 2015. During the second
quarter of 2015, the Company generated $21.7 million in net cash from
operations and invested $11.8 million in purchases of property and
equipment and capitalization of internally developed software, resulting
in free cash flow of $9.9 million. 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 $2.4 million.
Company Issues Third Quarter Guidance and Raises Full Year 2015
Guidance The Company today issued guidance for the third
quarter of 2015 and raised its previously issued guidance for the full
year of 2015. The Company's guidance is based on the current indications
for its business, which may change at any time.
-
Third Quarter 2015 Guidance: The Company expects total revenue
to be in the range of $72.5 million to $73.5 million. Adjusted EBITDA1
is expected to be in the range of $22.0 million to $23.0 million.
Non-GAAP1 adjusted earnings per share is expected to be in
the range of $0.33 to $0.34 based on approximately 39.6 million
weighted average diluted shares outstanding.
-
Full Year 2015 Guidance: The Company expects total revenue to
be in the range of $282.0 million to $284.0 million. Adjusted EBITDA1
is expected to be in the range of $88.0 million to $90.0 million.
Non-GAAP1 adjusted earnings per share is expected to be in
the range of $1.35 to $1.40 based on approximately 39.2 million
weighted average diluted shares outstanding.
Company to Host Live Conference Call and Webcast The
Company's management team plans to host a live conference call and
webcast at 5:00 p.m. Eastern Time today to discuss the financial results
as well as management's outlook for the business. The conference call
may be accessed in the United States by dialing 1.877.260.8898 and using
access code "FLTX". The conference call may be accessed outside of the
United States by dialing +1.612.332.0932 and using access code "FLTX".
The conference call will be simultaneously webcast on the Company's
investor relations website, which can be accessed at http://ir.fleetmatics.com.
A replay of the conference call will be available approximately two
hours after the call by dialing 1.800.475.6701 or +1.320.365.3844 and
using access code 363093 or by accessing the webcast replay on the
Company's investor relations website. The Company has used, and intends
to continue to use, the investor relations portion of its website as a
means of disclosing material non-public information and for complying
with disclosure obligations under Regulation FD.
About Fleetmatics Group PLC Fleetmatics Group PLC (NYSE:
FLTX) 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, 2015,
Fleetmatics served approximately 29,000 fleet management customers, with
approximately 625,000 subscribed vehicles worldwide. To learn more about
Fleetmatics, visit www.fleetmatics.com.
1Non-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 excludes share-based
compensation; amortization of intangible assets; certain non-recurring
litigation and settlement costs; and certain acquisition-related
transaction costs. 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
acquisition-related transaction costs; loss on extinguishment of debt;
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; loss on
extinguishment of debt; and certain acquisition-related transaction
costs.
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.
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
position in key international markets, our ability to deliver on
long-term and strategic objectives, and our expected financial results
for the third quarter of 2015 and the full year of 2015. 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 the fluctuations of foreign
currency exchange rates and the impact on our revenue and expenses;
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 enterprise
customers; 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; our ability to keep 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 businesses, 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 February 27, 2015, 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.
|
FLEETMATICS GROUP PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Subscription revenue
|
|
|
|
|
$
|
68,588
|
|
|
$
|
55,268
|
|
|
$
|
134,059
|
|
|
$
|
107,165
|
|
Cost of subscription revenue
|
|
|
|
|
|
17,753
|
|
|
|
14,534
|
|
|
|
34,938
|
|
|
|
27,280
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
50,835
|
|
|
|
40,734
|
|
|
|
99,121
|
|
|
|
79,885
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
|
|
24,192
|
|
|
|
22,049
|
|
|
|
47,461
|
|
|
|
40,411
|
|
Research and development
|
|
|
|
|
|
5,201
|
|
|
|
4,613
|
|
|
|
9,798
|
|
|
|
8,790
|
|
General and administrative
|
|
|
|
|
|
12,885
|
|
|
|
9,486
|
|
|
|
24,570
|
|
|
|
20,758
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
42,278
|
|
|
|
36,148
|
|
|
|
81,829
|
|
|
|
69,959
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
8,557
|
|
|
|
4,586
|
|
|
|
17,292
|
|
|
|
9,926
|
|
Interest income (expense), net
|
|
|
|
|
|
(225
|
)
|
|
|
(210
|
)
|
|
|
(494
|
|
)
|
|
(373
|
)
|
Foreign currency transaction gain (loss), net
|
|
|
|
|
|
(1,900
|
)
|
|
|
402
|
|
|
|
3,069
|
|
|
|
354
|
|
Loss on extinguishment of debt
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(107
|
|
)
|
|
-
|
|
Other income (expense), net
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
6,432
|
|
|
|
4,778
|
|
|
|
19,760
|
|
|
|
9,948
|
|
Provision for income taxes
|
|
|
|
|
|
1,037
|
|
|
|
1,545
|
|
|
|
2,614
|
|
|
|
3,087
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
5,395
|
|
|
$
|
3,233
|
|
|
$
|
17,146
|
|
|
$
|
6,861
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.14
|
|
|
$
|
0.09
|
|
|
$
|
0.45
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
$
|
0.14
|
|
|
$
|
0.08
|
|
|
$
|
0.44
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
38,322,263
|
|
|
|
37,411,223
|
|
|
|
38,156,595
|
|
|
|
37,271,047
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
39,212,404
|
|
|
|
38,360,498
|
|
|
|
39,034,834
|
|
|
|
38,376,232
|
|
|
FLEETMATICS GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
$
|
179,608
|
|
$
|
175,400
|
Restricted cash
|
|
|
|
|
|
142
|
|
|
-
|
Accounts receivable, net of allowances of $2,673 and $2,200 at June
30, 2015 and December 31, 2014, respectively
|
|
|
|
|
|
19,940
|
|
|
16,876
|
Deferred tax assets
|
|
|
|
|
|
7,449
|
|
|
7,458
|
Prepaid expenses and other current assets
|
|
|
|
|
|
14,661
|
|
|
13,379
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
|
221,800
|
|
|
213,113
|
Property and equipment, net
|
|
|
|
|
|
93,697
|
|
|
79,734
|
Goodwill
|
|
|
|
|
|
38,835
|
|
|
30,207
|
Intangible assets, net
|
|
|
|
|
|
7,247
|
|
|
6,460
|
Deferred tax assets, net
|
|
|
|
|
|
6,322
|
|
|
6,353
|
Other assets
|
|
|
|
|
|
10,179
|
|
|
10,829
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
$
|
378,080
|
|
$
|
346,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
9,916
|
|
$
|
8,001
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
26,392
|
|
|
24,307
|
Deferred revenue
|
|
|
|
|
|
23,922
|
|
|
22,592
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
60,230
|
|
|
54,900
|
Deferred revenue
|
|
|
|
|
|
9,990
|
|
|
10,241
|
Accrued income taxes
|
|
|
|
|
|
4,021
|
|
|
3,164
|
Long-term debt, net of discount
|
|
|
|
|
|
22,946
|
|
|
23,750
|
Other liabilities
|
|
|
|
|
|
6,988
|
|
|
2,356
|
Total liabilities
|
|
|
|
|
|
104,175
|
|
|
94,411
|
Total shareholders' equity
|
|
|
|
|
|
273,905
|
|
|
252,285
|
Total liabilities and shareholders' equity
|
|
|
|
|
$
|
378,080
|
|
$
|
346,696
|
|
FLEETMATICS GROUP PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
17,146
|
|
|
$
|
6,861
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization of property and equipment
|
|
|
|
|
|
13,133
|
|
|
|
10,116
|
|
Amortization of capitalized in-vehicle devices owned by customers
|
|
|
|
|
|
517
|
|
|
|
658
|
|
Amortization of intangible assets
|
|
|
|
|
|
1,199
|
|
|
|
1,221
|
|
Amortization of deferred commissions, other deferred costs and debt
discount
|
|
|
|
|
|
5,055
|
|
|
|
3,791
|
|
Provision for (benefit from) deferred tax assets
|
|
|
|
|
|
-
|
|
|
|
(284
|
)
|
Provision for accounts receivable allowances
|
|
|
|
|
|
1,347
|
|
|
|
985
|
|
Unrealized foreign currency transaction (gain) loss
|
|
|
|
|
|
(3,166
|
)
|
|
|
(388
|
)
|
Loss on disposal of property and equipment and other assets
|
|
|
|
|
|
1,219
|
|
|
|
778
|
|
Share-based compensation
|
|
|
|
|
|
10,340
|
|
|
|
6,427
|
|
Excess tax benefits on share-based awards
|
|
|
|
|
|
(2,142
|
)
|
|
|
(8,752
|
)
|
Loss on extinguishment of debt
|
|
|
|
|
|
107
|
|
|
|
-
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
(4,155
|
)
|
|
|
4,677
|
|
Prepaid expenses and other current and long-term assets
|
|
|
|
|
|
(5,736
|
)
|
|
|
(3,219
|
)
|
Accounts payable, accrued expenses and other current liabilities
|
|
|
|
|
|
2,318
|
|
|
|
5,008
|
|
Accrued income taxes
|
|
|
|
|
|
863
|
|
|
|
1,149
|
|
Deferred revenue
|
|
|
|
|
|
951
|
|
|
|
4,822
|
|
Net cash provided by operating activities
|
|
|
|
|
|
38,996
|
|
|
|
33,850
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
|
(19,976
|
)
|
|
|
(18,390
|
)
|
Capitalization of internal-use software costs
|
|
|
|
|
|
(1,942
|
)
|
|
|
(1,342
|
)
|
Proceeds from sale of property and equipment
|
|
|
|
|
|
-
|
|
|
|
41
|
|
Payment for business acquired, net of cash acquired
|
|
|
|
|
|
(7,673
|
)
|
|
|
(2,228
|
)
|
Net (increase) decrease in restricted cash
|
|
|
|
|
|
(149
|
)
|
|
|
64
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
(29,740
|
)
|
|
|
(21,855
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Payments of borrowings under Revolving Credit Facility
|
|
|
|
|
|
(23,750
|
)
|
|
|
-
|
|
Proceeds from borrowings under Credit Facility
|
|
|
|
|
|
22,382
|
|
|
|
-
|
|
Proceeds from exercise of stock options
|
|
|
|
|
|
1,901
|
|
|
|
1,391
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
|
|
(6,220
|
)
|
|
|
(3,150
|
)
|
Excess tax benefits from share-based awards
|
|
|
|
|
|
2,142
|
|
|
|
8,752
|
|
Payments of capital lease obligations
|
|
|
|
|
|
(492
|
)
|
|
|
(365
|
)
|
Payments of notes payable
|
|
|
|
|
|
(330
|
)
|
|
|
(179
|
)
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
|
(4,367
|
)
|
|
|
6,449
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
|
(681
|
)
|
|
|
(142
|
)
|
|
|
|
|
|
|
|
|
Net increase in cash
|
|
|
|
|
|
4,208
|
|
|
|
18,302
|
|
Cash, beginning of period
|
|
|
|
|
|
175,400
|
|
|
|
137,171
|
|
|
|
|
|
|
|
|
|
Cash, end of period
|
|
|
|
|
$
|
179,608
|
|
|
$
|
155,473
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
|
|
|
$
|
411
|
|
|
$
|
348
|
|
Cash paid (refunds received), net for income taxes
|
|
|
|
|
$
|
173
|
|
|
$
|
742
|
|
Supplemental disclosure of non-cash financing and investing
activities:
|
|
|
|
|
|
|
|
Acquisition of property and equipment and software through capital
leases and notes payable
|
|
|
|
|
$
|
2,180
|
|
|
$
|
1,940
|
|
Additions to property and equipment included in accounts payable or
accrued expenses at the balance sheet dates
|
|
|
|
|
$
|
3,887
|
|
|
$
|
2,433
|
|
Leasehold improvements financed by landlord through lease incentives
|
|
|
|
|
$
|
2,258
|
|
|
$
|
-
|
|
Issuance of ordinary shares under employee share purchase plan
|
|
|
|
|
$
|
548
|
|
|
$
|
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,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit GAAP
|
|
|
|
|
$
|
50,835
|
|
$
|
40,734
|
|
$
|
99,121
|
|
$
|
79,885
|
Share-based compensation
|
|
|
|
|
|
308
|
|
|
172
|
|
|
559
|
|
|
319
|
Amortization of intangible assets
|
|
|
|
|
|
308
|
|
|
291
|
|
|
608
|
|
|
549
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit Non-GAAP
|
|
|
|
|
$
|
51,451
|
|
$
|
41,197
|
|
$
|
100,288
|
|
$
|
80,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
|
|
$
|
68,588
|
|
$
|
55,268
|
|
$
|
134,059
|
|
$
|
107,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin Percentages:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
74.1%
|
|
|
73.7%
|
|
|
73.9%
|
|
|
74.5%
|
Non-GAAP
|
|
|
|
|
|
75.0%
|
|
|
74.5%
|
|
|
74.8%
|
|
|
75.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income GAAP
|
|
|
|
|
$
|
8,557
|
|
$
|
4,586
|
|
$
|
17,292
|
|
$
|
9,926
|
Share-based compensation
|
|
|
|
|
|
5,797
|
|
|
3,423
|
|
|
10,340
|
|
|
6,427
|
Amortization of intangible assets
|
|
|
|
|
|
614
|
|
|
627
|
|
|
1,199
|
|
|
1,221
|
Litigation and settlements
|
|
|
|
|
|
(390)
|
|
|
97
|
|
|
(218)
|
|
|
217
|
Acquisition-related transaction costs
|
|
|
|
|
|
-
|
|
|
129
|
|
|
157
|
|
|
218
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income Non-GAAP
|
|
|
|
|
$
|
14,578
|
|
$
|
8,862
|
|
$
|
28,770
|
|
$
|
18,009
|
|
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation of Net Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
5,395
|
|
$
|
3,233
|
|
$
|
17,146
|
|
$
|
6,861
|
Provision for income taxes
|
|
|
|
|
|
1,037
|
|
|
1,545
|
|
|
2,614
|
|
|
3,087
|
Interest (income) expense, net
|
|
|
|
|
|
225
|
|
|
210
|
|
|
494
|
|
|
373
|
Foreign currency transaction (gain) loss, net
|
|
|
|
|
|
1,900
|
|
|
(402)
|
|
|
(3,069)
|
|
|
(354)
|
Depreciation and amortization of property and equipment
|
|
|
|
|
|
6,567
|
|
|
5,813
|
|
|
13,133
|
|
|
10,116
|
Amortization of capitalized in-vehicle devices owned by customers
|
|
|
|
|
|
91
|
|
|
372
|
|
|
517
|
|
|
658
|
Amortization of intangible assets
|
|
|
|
|
|
614
|
|
|
627
|
|
|
1,199
|
|
|
1,221
|
Share-based compensation
|
|
|
|
|
|
5,797
|
|
|
3,423
|
|
|
10,340
|
|
|
6,427
|
Litigation and settlements
|
|
|
|
|
|
(390)
|
|
|
97
|
|
|
(218)
|
|
|
217
|
Acquisition-related transaction costs
|
|
|
|
|
|
-
|
|
|
129
|
|
|
157
|
|
|
218
|
Loss on extinguishment of debt
|
|
|
|
|
|
-
|
|
|
-
|
|
|
107
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
21,236
|
|
$
|
15,047
|
|
$
|
42,420
|
|
$
|
28,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription revenue
|
|
|
|
|
$
|
68,588
|
|
$
|
55,268
|
|
$
|
134,059
|
|
$
|
107,165
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
31.0%
|
|
|
27.2%
|
|
|
31.6%
|
|
|
26.9%
|
|
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,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
5,395
|
|
$
|
3,233
|
|
$
|
17,146
|
|
$
|
6,861
|
Amortization of intangible assets
|
|
|
|
|
|
614
|
|
|
627
|
|
|
1,199
|
|
|
1,221
|
Share-based compensation
|
|
|
|
|
|
5,797
|
|
|
3,423
|
|
|
10,340
|
|
|
6,427
|
Foreign currency transaction (gain) loss, net
|
|
|
|
|
|
1,900
|
|
|
(402)
|
|
|
(3,069)
|
|
|
(354)
|
Litigation and settlements
|
|
|
|
|
|
(390)
|
|
|
97
|
|
|
(218)
|
|
|
217
|
Acquisition-related transaction costs
|
|
|
|
|
|
-
|
|
|
129
|
|
|
157
|
|
|
218
|
Loss on extinguishment of debt
|
|
|
|
|
|
-
|
|
|
-
|
|
|
107
|
|
|
-
|
Tax effect of non-GAAP adjustments above at 8% in the three and six
months ended June 30, 2015 and 15% in the three and six months ended
June 30, 2014
|
|
|
|
|
|
(633)
|
|
|
(581)
|
|
|
(681)
|
|
|
(1,159)
|
Tax reserve component of income tax provision
|
|
|
|
|
|
440
|
|
|
262
|
|
|
863
|
|
|
525
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
|
|
|
|
|
$
|
13,123
|
|
$
|
6,788
|
|
$
|
25,844
|
|
$
|
13,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding - diluted
|
|
|
|
|
|
39,212,404
|
|
|
38,360,498
|
|
|
39,034,834
|
|
|
38,376,232
|
Non-GAAP adjusted EPS
|
|
|
|
|
$
|
0.33
|
|
$
|
0.18
|
|
$
|
0.66
|
|
$
|
0.36
|
|
FLEETMATICS GROUP PLC
RECONCILIATION TO NON-GAAP INCOME
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cost of subscription revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
$
|
308
|
|
$
|
172
|
|
$
|
559
|
|
$
|
319
|
Amortization of intangible assets
|
|
|
|
|
|
308
|
|
|
291
|
|
|
608
|
|
|
549
|
Subtotal cost of subscription revenue
|
|
|
|
|
|
616
|
|
|
463
|
|
|
1,167
|
|
|
868
|
Sales and marketing:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
1,960
|
|
|
1,329
|
|
|
3,784
|
|
|
2,502
|
Amortization of intangible assets
|
|
|
|
|
|
306
|
|
|
336
|
|
|
591
|
|
|
672
|
Subtotal sales and marketing
|
|
|
|
|
|
2,266
|
|
|
1,665
|
|
|
4,375
|
|
|
3,174
|
Research and development:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
788
|
|
|
468
|
|
|
1,461
|
|
|
865
|
Subtotal research and development
|
|
|
|
|
|
788
|
|
|
468
|
|
|
1,461
|
|
|
865
|
General and administrative:
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
2,741
|
|
|
1,454
|
|
|
4,536
|
|
|
2,741
|
Litigation and settlements
|
|
|
|
|
|
(390)
|
|
|
97
|
|
|
(218)
|
|
|
217
|
Acquisition-related transaction costs
|
|
|
|
|
|
-
|
|
|
129
|
|
|
157
|
|
|
218
|
Subtotal general and administrative
|
|
|
|
|
|
2,351
|
|
|
1,680
|
|
|
4,475
|
|
|
3,176
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction (gain) loss, net
|
|
|
|
|
|
1,900
|
|
|
(402)
|
|
|
(3,069)
|
|
|
(354)
|
Loss on extinguishment of debt
|
|
|
|
|
|
-
|
|
|
-
|
|
|
107
|
|
|
-
|
Tax effect of non-GAAP adjustments, net of tax reserve component of
income tax provision
|
|
|
|
|
|
(193)
|
|
|
(319)
|
|
|
182
|
|
|
(634)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expense add-backs
|
|
|
|
|
$
|
7,728
|
|
$
|
3,555
|
|
$
|
8,698
|
|
$
|
7,095
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150806006422/en/
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