Delaware 000-26427 77-0454966
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.001 per share
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STMP
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NASDAQ Global Select Market
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Stamps.com Inc.
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(Registrant)
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August 7, 2019
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/s/ Ken McBride
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Date
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(Signature)
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Ken McBride
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Chief Executive Officer
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•
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Total revenue was $138.8 million, down 1% compared to $139.6 million in the second quarter of 2018.
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•
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GAAP net income was $14.0 million, down 69% compared to $45.5 million in the second quarter of 2018.
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•
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GAAP net income per fully diluted share was $0.79, down 67% compared to $2.41 in the second quarter of 2018.
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•
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Non-GAAP adjusted EBITDA was $39.3 million, down 38% compared to $63.6 million in the second quarter of 2018.
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•
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Non-GAAP adjusted income per fully diluted share was $1.25, down 54% compared to $2.75 in the second quarter of 2018.
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Second Quarter Fiscal 2019
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Stock-Based
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Intangible
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Debt
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||||||||||||
All amounts in millions except
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GAAP
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Compensation
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Amortization
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Amortization
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Income Tax
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Non-GAAP
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||||||||||||
per share data:
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Amounts
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Expense
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Expense
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Expense
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Adjustments
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Amounts
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||||||||||||
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||||||||||||
Cost of Revenues
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$
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36.44
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$
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0.56
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$
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—
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$
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—
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$
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—
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$
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35.89
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Research & Development
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19.13
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2.49
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—
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—
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—
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16.64
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||||||
Sales & Marketing
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33.24
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2.28
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—
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—
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—
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30.96
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||||||
General & Administrative
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27.54
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4.49
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5.55
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—
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—
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17.49
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||||||
Total Expenses
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116.35
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9.82
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5.55
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—
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—
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100.97
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||||||
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Income (Loss) from Operations
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22.42
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(9.82
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)
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(5.55
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)
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—
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—
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37.8
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||||||
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Interest and Other Income (Loss)
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(0.75
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)
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—
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—
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(0.09
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)
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—
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(0.65
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)
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||||||
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Benefit (Expense) for Income Taxes
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(7.69
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)
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—
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—
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—
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7.17
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(14.86
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)
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||||||
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Adjusted Income (Loss)
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13.99
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(9.82
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)
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(5.55
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)
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(0.09
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)
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7.17
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22.29
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On a diluted per share basis
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$
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0.79
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$
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(0.55
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)
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$
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(0.31
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)
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$
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(0.01
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)
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$
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0.4
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$
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1.25
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Shares used in per share calculation
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17.81
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17.81
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17.81
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17.81
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17.81
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17.81
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Second Quarter Fiscal 2018
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Acquisition and
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All amounts in millions except
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Stock-Based
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Intangible
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Litigation
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Debt
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||||||||||||
per share data:
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GAAP
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Compensation
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Amortization
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Settlement
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Amortization
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Income Tax
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Non-GAAP
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||||||||||||
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Amounts
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Expense
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Expense
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Expenses
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Expense
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Adjustments
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Amounts
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||||||||||||
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||||||||||||
Cost of Revenues
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$
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29.44
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$
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0.73
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$
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—
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$
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—
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$
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—
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$
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—
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$ 28.71
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Research & Development
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12.34
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1.67
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—
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—
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—
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—
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10.67
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Sales & Marketing
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25.79
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1.48
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—
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—
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—
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—
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24.30
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||||||
General & Administrative
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25.19
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6.01
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3.99
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1.57
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—
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—
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13.62
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||||||
Total Expenses
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92.76
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9.89
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3.99
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1.57
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—
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—
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77.31
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||||||
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||||||||||||
Income (Loss) from Operations
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46.87
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(9.89
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)
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(3.99
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)
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(1.57
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)
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—
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—
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62.32
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||||||
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||||||||||||
Interest and Other Income (Loss)
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(0.61
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)
|
|
—
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|
|
—
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|
|
—
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(0.09
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)
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|
—
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|
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(0.51)
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||||||
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||||||||||||
Benefit (Expense) for Income Taxes
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(0.74
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)
|
|
—
|
|
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—
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—
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|
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—
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|
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9.15
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(9.89)
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||||||
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||||||||||||
Adjusted Income (Loss)
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45.52
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|
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(9.89
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)
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(3.99
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)
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(1.57
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)
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(0.09
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)
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9.15
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51.92
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||||||
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||||||||||||
On a diluted per share basis
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$
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2.41
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$
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(0.52
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)
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$
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(0.21
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)
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$
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(0.08
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)
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$
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—
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$
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0.48
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$ 2.75
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||||||||||||
Shares used in per share calculation
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18.91
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18.91
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18.91
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18.91
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18.91
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18.91
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18.91
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Six Months ended
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All amounts in millions
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June 30,
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||
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2019
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|
2018
|
|
|
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|
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GAAP Net Income (Loss)
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$13.99
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|
$45.52
|
|
|
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Depreciation and Amortization expense
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$7.03
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$5.28
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Interest & Other Expense (Income), net
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$0.75
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$0.61
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Income Tax Expense (Benefit), net
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$7.69
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$0.74
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|
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Stock-based Compensation Expense
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$9.82
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$9.89
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Acquisition Related and Litigation Settlement Expenses
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$—
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1.57
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|
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Adjusted EBITDA
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$39.28
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$63.61
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•
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We expect total revenue to be in a range of approximately $520 million to $560 million; this compares to previous guidance of $510 million to $560 million.
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•
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We expect GAAP net income to be in a range of approximately $27 million to $45 million; this compares to previous guidance of $21 million to $45 million.
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•
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We expect GAAP net income per fully diluted share to be in a range of approximately $1.44 to $2.55; this compares to previous guidance of $1.15 to $2.56.
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•
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We expect our 2019 effective tax rate to be 40.0%; no change from our previous guidance.
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•
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We expect non-GAAP adjusted EBITDA to be in a range of approximately $120 million to $150 million; this compares to previous guidance of $110 million to $150 million.
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•
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We expect non-GAAP adjusted income per fully diluted share to be in a range of $3.60 to $4.85; this compares to previous guidance of $3.35 to $4.85.
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Fiscal Year 2019 Guidance
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All amounts in millions
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Low End of Range
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High End of Range
|
|
|
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GAAP net income
|
$26.9
|
$44.9
|
|
|
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Adjustments to reconcile adjusted EBITDA to GAAP net income:
|
|
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Depreciation and amortization expense
|
$27.5
|
$27.5
|
Stock-based compensation expense
|
$45.0
|
$45.0
|
|
|
|
Interest and other expense (income), net
|
$2.6
|
$2.6
|
Income tax expense
|
$18.0
|
$30.0
|
Total adjustments excluded from adjusted EBITDA
|
$93.1
|
$105.1
|
|
|
|
Adjusted EBITDA
|
$120.0
|
$150.0
|
|
Fiscal Year 2019 Guidance
|
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All amounts in millions except percentages and per share data
|
Low End of Range
|
High End of Range
|
|
|
|
GAAP net income per fully diluted share
|
$1.44
|
$2.55
|
|
|
|
Adjustments to reconcile non-GAAP to GAAP:
|
|
|
Stock-based compensation expense
|
$45.0
|
$45.0
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Amortization of acquired intangibles
|
$22.0
|
$22.0
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Amortization of debt issuance costs
|
$0.4
|
$0.4
|
Total adjustments excluded from non-GAAP
|
$67.4
|
$67.4
|
Projected effective tax rate
|
40.0%
|
40.0%
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Increased tax expense from non-GAAP adjustments
|
$27.0
|
$27.0
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Total tax affected adjustments excluded from non-GAAP
|
$40.4
|
$40.4
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|
|
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Fully diluted shares
|
18.7
|
17.6
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Total adjustments excluded from non-GAAP adjusted income per fully diluted share
|
$2.16
|
$2.3
|
|
|
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Non-GAAP adjusted income per fully diluted share
|
$3.60
|
$4.85
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CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(in thousands, unaudited)
|
|||||
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||
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June 30,
|
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December 31,
|
||
|
2019
|
|
2018
|
||
|
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||
ASSETS
|
|
|
|
||
Cash and cash equivalents
|
$
|
109,713
|
|
|
$ 113,757
|
Accounts receivable, net
|
70,854
|
|
|
83,595
|
|
Current income taxes
|
127
|
|
|
8,465
|
|
Prepaid expenses and other current assets
|
33,487
|
|
|
23,794
|
|
Property and equipment, net
|
34,011
|
|
|
36,337
|
|
Goodwill and intangible assets, net
|
533,309
|
|
|
545,569
|
|
Deferred income taxes, net
|
29,874
|
|
|
29,874
|
|
Other assets
|
31,273
|
|
|
11,383
|
|
Total assets
|
$
|
842,648
|
|
|
$ 852,774
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||
Liabilities:
|
|
|
|
||
Accounts payable, accrued expenses, and other liabilities
|
$
|
146,448
|
|
|
$ 152,642
|
Debt, net of debt issuance costs
|
55,673
|
|
|
60,643
|
|
Deferred income taxes, net
|
18,575
|
|
|
18,665
|
|
Deferred revenue
|
8,324
|
|
|
7,159
|
|
Total liabilities
|
229,020
|
|
|
239,109
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
||
Common stock
|
56
|
|
|
56
|
|
Additional paid-in capital
|
1,073,087
|
|
|
1,049,669
|
|
Treasury stock
|
(580,807
|
)
|
|
(528,529)
|
|
Retained earnings
|
121,459
|
|
|
91,712
|
|
Accumulated other comprehensive income
|
(167
|
)
|
|
757
|
|
Total stockholders' equity
|
613,628
|
|
|
613,665
|
|
Total liabilities and stockholders' equity
|
$
|
842,648
|
|
|
$ 852,774
|