Delaware
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001-35895
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13-2740040
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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2200 West Airfield Drive
P.O. Box 619810
DFW Airport, Texas
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75261
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(Address of Principal Executive Offices)
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(Zip Code)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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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, $0.01 par value
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THRY
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Nasdaq Capital Market
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Item 2.02. |
Results of Operations and Financial Condition.
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Item 7.01. |
Regulation FD Disclosure.
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Item 9.01. |
Financial Statements and Exhibits.
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Exhibit Number
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Description
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Press release, dated May 13, 2021, issued by Thryv Holdings, Inc.
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Investor Supplement.
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THRYV HOLDINGS, INC.
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|||
Date: May 13, 2021
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By:
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/s/ Paul D. Rouse
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Name: Paul D. Rouse
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|||
Title: Chief Financial Officer, Executive Vice
President and Treasurer
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● |
U.S. SaaS revenue was $37.3 million, a 17% increase year-over-year
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● |
U.S. Marketing Services revenue was $227.9 million
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● |
Thryv International Marketing Services revenue was $15.4 million
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● |
Consolidated total revenue was $280.6 million
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● |
Consolidated net income was $36.5 million
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● |
Consolidated adjusted EBITDA was $104.9 million, representing an adjusted EBITDA margin of 37.4%
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● |
Consolidated gross profit was $182.4 million
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● |
Consolidated adjusted gross profit was $193.8 million
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(1) |
Consolidated results include Sensis results subsequent to the March 1, 2021 acquisition date.
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● |
SaaS ARPU increased to $304 for the first quarter of 2021, compared to $240 in the first quarter of 2020
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● |
Total SaaS clients increased sequentially to 44.5 thousand for the first quarter of 2021
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● |
SaaS monthly churn was 2.5% for the first quarter of 2021, compared to 3.4% in the first quarter of 2020
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● |
Net Dollar Retention improved 16 percentage points to 89% at end of the first quarter of 2021, when compared to the first quarter of 2020
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● |
SaaS active users and usage frequency reached new all-time high as daily and weekly active users increased 44% year-over-year
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● |
SaaS average time-in-app reaches new all-time high and increases 103% year-over-year
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● |
On March 1st, the Company acquired Sensis Holdings, the leading Australian marketing services company
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• |
U.S SaaS revenue guidance range raised to $151 – $153 million, up from the previously announced $140 - $145 million
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• |
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• |
Thryv International, which reflects the acquisition of Sensis Holdings, expects revenue in the range of AUD $180 to $200 million for the 10 months of 2021 ownership (Sensis Holdings acquired March 1, 2021)
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Three Months Ended March 31,
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||||||
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2021
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|
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2020
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|
|||
Revenue
|
|
$
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280,606
|
|
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$
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318,570
|
|
Cost of services
|
|
|
98,160
|
|
|
|
117,976
|
|
Gross profit
|
|
|
182,446
|
|
|
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200,594
|
|
|
|
|
|
|
|
|
||
Operating expenses:
|
|
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Sales and marketing
|
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76,540
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|
|
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89,292
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General and administrative
|
|
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41,279
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|
|
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49,562
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Impairment charges
|
|
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—
|
|
|
|
98
|
|
Total operating expenses
|
|
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117,819
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|
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138,952
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|
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|||
Operating income
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|
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64,627
|
|
|
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61,642
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Other income (expense):
|
|
|
|
|
|
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||
Interest expense
|
|
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(11,607
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)
|
|
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(14,780
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)
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Interest expense, related party
|
|
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(4,065
|
)
|
|
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(5,150
|
)
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Other components of net periodic pension cost
|
|
|
453
|
|
|
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(201
|
)
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Other expense
|
|
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(1,093
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)
|
|
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—
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Income before (provision) for income taxes
|
|
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48,315
|
|
|
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41,511
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(Provision) for income taxes
|
|
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(11,809
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)
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|
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(13,409
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)
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Net income
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$
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36,506
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|
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$
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28,102
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|||
Net income per common share:
|
|
|
|
|
|
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||
Basic
|
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$
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1.10
|
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$
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0.86
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Diluted
|
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$
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1.07
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$
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0.80
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|||
Weighted-average shares used in computing basic and diluted net income per common share:
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|
|
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Basic
|
|
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33,108,422
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|
|
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32,578,286
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Diluted
|
|
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34,013,480
|
|
|
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35,026,526
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March 31, 2021
|
December 31, 2020
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|||||||
Assets
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||||||||
Current assets
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||||||||
Cash and cash equivalents
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$
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29,841
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$
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2,406
|
||||
Accounts receivable, net of allowance of $34,557 and $33,030
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354,737
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296,570
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||||||
Contract assets, net of allowance of $244 and $338
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9,285
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10,975
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||||||
Taxes receivable
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9,154
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9,229
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||||||
Prepaid expenses and other current assets
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36,277
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26,172
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||||||
Indemnification asset
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24,346
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24,346
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||||||
Total current assets
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463,640
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369,698
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||||||
Fixed assets and capitalized software, net
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123,281
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89,044
|
||||||
Goodwill
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679,559
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609,457
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||||||
Intangible assets, net
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145,647
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31,777
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||||||
Deferred tax assets
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97,941
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93,099
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||||||
Other assets
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34,410
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21,902
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||||||
Total assets
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$
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1,544,478
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$
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1,214,977
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||||
Liabilities and Stockholders' Equity
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||||||||
Current liabilities
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||||||||
Accounts payable
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$
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19,981
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$
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8,927
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||||
Accrued liabilities
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157,537
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139,613
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||||||
Current portion of unrecognized tax benefits
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30,417
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30,022
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||||||
Contract liabilities
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47,909
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18,942
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||||||
New Term Loan, current
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70,000
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—
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||||||
Other current liabilities
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20,324
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9,896
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||||||
Total current liabilities
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346,168
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207,400
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||||||
New Term Loan, net
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372,454
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—
|
||||||
New Term Loan, related party
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234,098
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—
|
||||||
Senior Term Loan, net
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—
|
335,683
|
||||||
Senior Term Loan, related party
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—
|
113,482
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||||||
ABL Facility
|
43,682
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79,238
|
||||||
Leaseback obligations
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54,585
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54,798
|
||||||
Pension obligations, net
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184,642
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190,827
|
||||||
Deferred tax liabilities
|
30,706
|
508
|
||||||
Other liabilities
|
48,947
|
36,266
|
||||||
Total long-term liabilities
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969,114
|
810,802
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' equity
|
||||||||
Common stock - $0.01 par value, 250,000,000 shares authorized; 59,806,077, shares issued and 33,127,667 shares outstanding at March 31, 2021; and 59,590,422 shares issued and 32,912,012
shares outstanding at December 31, 2020
|
598
|
596
|
||||||
Additional paid-in capital
|
1,058,504
|
1,059,624
|
||||||
Treasury stock - 26,678,410 shares at March 31, 2021 and December 31, 2020
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(468,613
|
)
|
(468,613
|
)
|
||||
Accumulated other comprehensive income (loss)
|
(2,967
|
)
|
—
|
|||||
Accumulated deficit
|
(358,326
|
)
|
(394,832
|
)
|
||||
Total stockholders' equity
|
229,196
|
196,775
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,544,478
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$
|
1,214,977
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Three Months Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$
|
36,506
|
$
|
28,102
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
19,718
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37,823
|
||||||
Amortization of debt issuance costs
|
433
|
267
|
||||||
Deferred income taxes
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(13,249
|
)
|
(15,911
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)
|
||||
Provision for credit losses
|
2,018
|
10,588
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||||||
Provision for service credits
|
4,528
|
6,736
|
||||||
Stock-based compensation expense (benefit)
|
1,971
|
(6,064
|
)
|
|||||
Other components of net periodic pension cost
|
(453
|
)
|
201
|
|||||
Loss on early extinguishment of debt
|
299
|
—
|
||||||
Loss on disposal/write-off of fixed assets and capitalized software
|
15
|
2,962
|
||||||
Impairment charges
|
—
|
98
|
||||||
Non-cash loss from remeasurement of indemnification asset
|
—
|
3,801
|
||||||
Gain (loss) on foreign currency exchange rates
|
835
|
—
|
||||||
Other, net
|
6
|
—
|
||||||
Changes in working capital items, excluding acquisitions:
|
||||||||
Accounts receivable
|
26,846
|
(8,921
|
)
|
|||||
Contract assets
|
1,446
|
(522
|
)
|
|||||
Prepaid expenses and other assets
|
(10,998
|
)
|
(4,583
|
)
|
||||
Accounts payable and accrued liabilities
|
(67,458
|
)
|
(33,981
|
)
|
||||
Accrued income taxes, net
|
9,597
|
30,351
|
||||||
Operating lease liability
|
(403
|
)
|
(2,620
|
)
|
||||
Contract liabilities
|
2,547
|
(2,685
|
)
|
|||||
Net cash provided by operating activities
|
14,204
|
45,642
|
||||||
Cash Flows from Investing Activities
|
||||||||
Additions to fixed assets and capitalized software
|
(3,668
|
)
|
(9,122
|
)
|
||||
Proceeds from the sale of building and fixed assets
|
—
|
1,502
|
||||||
Acquisition of a business, net of cash acquired
|
(174,190
|
)
|
—
|
|||||
Net cash (used in) investing activities
|
(177,858
|
)
|
(7,620
|
)
|
||||
Cash Flows from Financing Activities
|
||||||||
Proceeds from New Term Loan
|
418,070
|
—
|
||||||
Proceeds from New Term Loan, related party
|
260,930
|
—
|
||||||
Payments of Senior Term Loan
|
(335,821
|
)
|
(23,445
|
)
|
||||
Payments of Senior Term Loan, related party
|
(113,789
|
)
|
(10,555
|
)
|
||||
Proceeds from ABL Facility
|
249,936
|
329,719
|
||||||
Payments of ABL Facility
|
(285,492
|
)
|
(312,624
|
)
|
||||
Purchase of treasury stock
|
—
|
(21,770
|
)
|
|||||
Other
|
(2,038
|
)
|
(56
|
)
|
||||
Net cash provided by (used in) financing activities
|
191,796
|
(38,731
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(707
|
)
|
—
|
|||||
Increase (decrease) in cash and cash equivalents
|
27,435
|
(709
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
2,406
|
1,912
|
||||||
Cash and cash equivalents, end of period
|
$
|
29,841
|
$
|
1,203
|
||||
Supplemental Information
|
||||||||
Cash paid for interest
|
$
|
17,286
|
$
|
20,802
|
||||
Cash paid (received) for income taxes, net
|
$
|
15,753
|
$
|
(1,031
|
)
|
Three Months Ended March 31, 2021
|
||||||||||||||||
Marketing
Services
|
SaaS
|
Thryv
International
|
Total
|
|||||||||||||
Revenue
|
$
|
227,933
|
$
|
37,251
|
$
|
15,422
|
$
|
280,606
|
||||||||
Segment EBITDA
|
98,631
|
316
|
5,986
|
104,933
|
Three Months Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
Reconciliation of Adjusted EBITDA
|
||||||||
Net income
|
$
|
36,506
|
$
|
28,102
|
||||
Interest expense
|
15,672
|
19,930
|
||||||
Provision for income taxes
|
11,809
|
13,409
|
||||||
Depreciation and amortization expense
|
19,718
|
37,823
|
||||||
Loss on early extinguishment of debt
|
299
|
—
|
||||||
Restructuring and integration expenses (1)
|
9,234
|
9,845
|
||||||
Transaction costs (2)
|
10,546
|
6,534
|
||||||
Stock-based compensation expense (benefit) (3)
|
1,971
|
(6,064
|
)
|
|||||
Other components of net periodic pension (benefit) cost (4)
|
(453
|
)
|
201
|
|||||
Non-cash loss from remeasurement of indemnification asset (5)
|
—
|
3,801
|
||||||
Impairment charges
|
—
|
98
|
||||||
Other (6)
|
(369
|
)
|
(900
|
)
|
||||
Adjusted EBITDA
|
$
|
104,933
|
$
|
112,779
|
(1)
|
For the three months ended March 31, 2021 and 2020, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, loss on disposal of fixed assets and capitalized software, and costs
associated with abandoned facilities and system consolidation.
|
(2) |
Expenses related to the Company's direct listing, Sensis acquisition and other transaction costs.
|
(3) |
Company records stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards. Additionally, stock-based compensation expense includes the remeasurement of these
awards at each period end.
|
(4) |
Other components of net periodic pension cost is from our non-contributory defined benefit pension plans that are currently frozen and incur no additional service costs. The most significant component of other components of net periodic
pension cost relates to the mark to market pension remeasurement.
|
(5) |
In connection with the YP Acquisition, the seller provided the Company indemnity for future potential losses associated with certain federal and state tax positions taken in tax returns filed by the seller prior to the Acquisition Date.
|
(6) |
Other primarily includes expenses related to potential non income-based tax liabilities. Additionally, during the three months ended March 31, 2021, other includes foreign exchange related expense of $0.8 million.
|
Three Months Ended March 31,
|
||||||||
2021
|
2020
|
|||||||
Reconciliation of Adjusted Gross Profit
|
||||||||
Gross profit
|
$
|
182,446
|
$
|
200,594
|
||||
Plus:
|
||||||||
Depreciation and amortization expense
|
11,244
|
18,355
|
||||||
Stock-based compensation expense (benefit)
|
81
|
(316
|
)
|
|||||
Adjusted Gross Profit
|
$
|
193,771
|
$
|
218,633
|