Jersey, Channel Islands
|
Not applicable | ||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
||||
Friars House, 160 Blackfriars Road
London SE1 8EZ
United Kingdom
(Address of principal executive offices)
|
Not applicable
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
Ordinary shares | CLVT | New York Stock Exchange |
Large accelerated filer |
☒
|
Accelerated filer |
☐
|
|||||||||||||||||
Non-accelerated filer |
☐
|
Smaller reporting company |
☐
|
|||||||||||||||||
Emerging growth company |
☐
|
(in thousands, except per share data) | Year ended December 31, | ||||||||||
2020 | 2019 | ||||||||||
Net income | $ | (205,559) | $ | (47,656) | |||||||
Basic and diluted earnings per ordinary share | $ | (0.48) | $ | (0.17) |
(in thousands, except per share data) | September 30, 2020 | June 30, 2020 | March 31, 2020 | ||||||||||||||||||||||||||
9 months ended | 3 months ended | 6 months ended | 3 months ended | 3 months ended | |||||||||||||||||||||||||
Net income | $ | (224,175) | $ | (144,753) | $ | (79,422) | $ | (23,790) | $ | (55,632) | |||||||||||||||||||
Basic earnings per ordinary share | $ | (0.61) | $ | (0.37) | $ | (0.22) | $ | (0.06) | (0.16) | ||||||||||||||||||||
Diluted earnings per ordinary share | $ | (0.61) | $ | (0.37) | $ | (0.22) | $ | (0.06) | (0.16) |
(in thousands, except per share data) | September 30, 2019 | June 30, 2019 | |||||||||||||||||||||
9 months ended | 3 months ended | 6 months ended | 3 months ended | ||||||||||||||||||||
Net income | $ | (48,022) | $ | (21,836) | $ | (26,187) | $ | (26,187) | |||||||||||||||
Basic earnings per ordinary share | (0.18) | (0.07) | (0.11) | (0.10) | |||||||||||||||||||
Diluted earnings per ordinary share | (0.18) | (0.07) | (0.11) | (0.10) |
(in thousands) | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||
Warrant liabilities | $ | (23,237) | $ | 144,753 | $ | 23,790 | $ | 55,632 | $ | 111,813 | $ | 21,836 | $ | 90,343 | ||||||||||||||||||||||||||||||
Shareholders' equity ordinary shares | $ | 4,124 | $ | — | $ | — | $ | — | $ | (64,157) | $ | — | $ | (64,157) | ||||||||||||||||||||||||||||||
Accumulated deficit | $ | 18,616 | $ | (144,753) | $ | (23,790) | $ | (55,632) | $ | (47,656) | $ | (21,836) | $ | (26,187) |
PART I
|
|||||
Part II
|
|||||
Index to Financial Statements
|
|||||
Part III
|
|||||
Item 13. Certain Relationships and Related Transactions, and Director Independence
|
|||||
PART IV
|
|||||
Product Line | Academic | Life Sciences | ||||||
Product Description | Used to navigate scientific and academic research discoveries, conduct analysis and evaluate research impact | Used by life sciences and healthcare firms for drug research and medical device research | ||||||
Curated Information Set |
Database of 1.9B+ citations, 176mm+ index records
|
80,000+ drug program records, 435,000 clinical trial records
|
||||||
Customers |
7,000+ leading academic institutions and governments and research intensive corporations use Web of Science and its Journal Impact Factor
|
Trusted by the top 30 pharma companies and hundreds of research groups
|
||||||
Notable Products and Offerings |
Web of Science
InCites ScholarOne |
Cortellis Drug Discovery Intelligence (formerly Integrity)
Cortellis Generic Intelligence (formerly Newport) |
Product Line | Patents | Trademarks | Domains | IP | ||||||||||
Product Description | Used to search and analyze patents | Used to monitor trademarks on an ongoing basis | Used to register and manage portions of web domains | Used for renewal and validation of intellectual property rights on behalf of customers | ||||||||||
Curated Information Set |
Database of 93 million + patent filings across 50+ patent offices
|
180+ patent and trademark offices |
Database of 1.4 million corporate domain names
|
Database of 3.4 million patent and trademark renewals performed annually with over 200+ patent and trademark offices across the world
|
||||||||||
Customers |
Used by 50+ patent offices, large R&D organizations of Fortune 1000 companies and various universities
|
65 industrial databases, 70 Pharma in-use databases |
MarkMonitor manages 38% of the top 50 most trafficked corporate website domain portfolios
|
12,000 direct and indirect customers including 47 out of 50 top R&D spenders globally
|
||||||||||
Notable Products and Offerings |
Derwent
Innography IncoPat |
Compmark Watch
Compumark Saegis Compumark Search |
MarkMonitor
Domain Management Brand Protection |
CPA Global
Renewals, Filing and Prosecution, Patent Search and IPMS Solutions
|
Accelerate Revenue Growth |
2020 Earnings Progress Report(1)
|
||||||||||||||||
~ | Product and pricing enhancement strategies | 1. |
Revenue growth 28.7%(2)
|
||||||||||||||
~ | Increased pipeline of new products | 2. |
Subscription revenue growth 7.7%
|
||||||||||||||
~ | Build strength in Asia Pacific | 3. |
Transactional revenue growth 74.2%
|
||||||||||||||
~ | Optimizing pricing and cross-sell | 4. |
ACV growth (at constant currency) 14.2%(3)
|
||||||||||||||
5. |
91.2% retention rate(4)
|
||||||||||||||||
Enhance Margins | 6. |
Net loss $(311,869) (Net loss margin and margin improvement not meaningful; reduction in Net loss of 20.6%) (2)
|
|||||||||||||||
~ | Benefit from top-line initiatives | 7. |
Adjusted EBITDA margin 38.1%(2)
|
||||||||||||||
~ | Simplifying Selling, General and Administrative ("SG&A") cost structure | 8. |
Adjusted EBITDA margin improvement 793.3 bps(2)
|
||||||||||||||
~ | Consolidating footprint | 9. |
Adjusted EBITDA growth 65.5%(2)
|
||||||||||||||
~ | Increase automation and cloud infrastructure | ||||||||||||||||
Location | Space Leased | Lease Expiration | ||||||||||||
Philadelphia, Pennsylvania, USA | 78,778 square feet | October 2029 | ||||||||||||
Bangalore, India (Location #1) | 57,850 square feet | February 2022 | ||||||||||||
Bangalore, India (Location #2) | 56,891 square feet | March 2027 | ||||||||||||
Hyderabad, India | 54,064 square feet | July 2021 | ||||||||||||
Belgrade, Serbia | 53,841 square feet | August 2027 | ||||||||||||
London, UK | 52,321 square feet | December 2028 | ||||||||||||
Chennai, India | 47,522 square feet | June 2021 | ||||||||||||
Boston, Massachusetts, USA | 35,600 square feet | October 2024 | ||||||||||||
Barcelona, Spain | 32,000 square feet | September 2023 | ||||||||||||
Jersey | 30,784 square feet | September 2028 | ||||||||||||
Bangalore, India | 30,122 square feet | March 2027 | ||||||||||||
Chandler, Arizona, USA | 30,000 square feet | November 2027 | ||||||||||||
Tokyo, Japan | 29,788 square feet | May 2022 | ||||||||||||
Antwerp, Belgium | 27,896 square feet | December 2023 | ||||||||||||
Alexandria, Virginia, USA | 24,660 square feet | December 2026 | ||||||||||||
Milwaukee, Wisconsin, USA | 24,016 square feet | May 2027 | ||||||||||||
Penang, Malaysia | 23,639 square feet | September 2023 | ||||||||||||
Beijing, China | 20,526 square feet | March 2022 | ||||||||||||
Burlington, Massachusetts, USA | 20,026 square feet | December 2027 | ||||||||||||
San Francisco, California, USA | 18,889 square feet | October 2025 | ||||||||||||
Gurugram, India | 18,718 square feet | November 2021 | ||||||||||||
Toronto, Canada | 16,786 square foot | May 2025 |
Year ended December 31, | |||||||||||||||||||||||
(in thousands except per share data) |
2020 (1)(2)
(As Restated)
|
2019 (3)(4)
(As Restated)
|
2018 (5)(6)
|
2017 (7)
|
|||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||
Revenues, net | $ | 1,254,047 | $ | 974,345 | $ | 968,468 | $ | 917,634 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenues | (429,297) | (352,000) | (430,326) | (413,030) | |||||||||||||||||||
Selling, general and administrative costs | (523,581) | (475,014) | (413,004) | (422,931) | |||||||||||||||||||
Depreciation | (12,709) | (9,181) | (9,422) | (6,997) | |||||||||||||||||||
Amortization | (290,441) | (191,361) | (227,803) | (221,466) | |||||||||||||||||||
Impairment on assets held for sale | — | (18,431) | — | — | |||||||||||||||||||
Restructuring and impairment | (47,595) | (15,670) | — | — | |||||||||||||||||||
Other operating income (expense), net | 52,381 | 4,826 | 6,379 | (237) | |||||||||||||||||||
Total operating expenses | (1,251,242) | (1,056,831) | (1,074,176) | (1,064,661) | |||||||||||||||||||
Income (loss) from operations | 2,805 | (82,486) | (105,708) | (147,027) | |||||||||||||||||||
Mark to market adjustment on financial instruments (13)
|
(205,062) | (47,656) | |||||||||||||||||||||
Legal settlement | — | 39,399 | — | — | |||||||||||||||||||
Income (loss) before interest expense and income tax | (202,257) | (90,743) | (105,708) | (147,027) | |||||||||||||||||||
Interest expense and amortization of debt discount, net | (111,914) | (157,689) | (130,805) | (138,196) | |||||||||||||||||||
Income (loss) before income tax | (314,171) | (248,432) | (236,513) | (285,223) | |||||||||||||||||||
Benefit (provision) for income taxes(14)
|
2.302 | (10,201) | (5,649) | 21,293 | |||||||||||||||||||
Net loss | $ | (311,869) | $ | (258,633) | $ | (242,162) | $ | (263,930) | |||||||||||||||
Per share: | |||||||||||||||||||||||
Basic and diluted | $ | (0.73) | $ | (0.94) | $ | (1.11) | $ | (1.22) | |||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||
Statement of Cash Flows data: | |||||||||||||||||||||||
Net cash provided by (used in) | |||||||||||||||||||||||
Operating activities | $ | 263,500 | $ | 117,580 | $ | (26,100) | $ | 6,667 | |||||||||||||||
Investing activities | (2,992,168) | (140,885) | 11,934 | (40,205) | |||||||||||||||||||
Financing activities | 2,926,580 | 75,215 | (32,605) | 22,818 | |||||||||||||||||||
Other Financial Data: | |||||||||||||||||||||||
Capital expenditures | (107,713) | (69,836) | (45,410) | (37,804) | |||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
(in thousands) |
2020(1)(2)(8)(9)
(As Restated)
|
2019(3)(10)(11)
(12)
(As Restated)
|
2018 (5)
|
2017 (7)
|
|||||||||||||||||||
Balance Sheet data: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 257,730 | $ | 76,130 | $ | 25,575 | $ | 53,186 | |||||||||||||||
Accounts receivable, net | 737,733 | 333,858 | 331,295 | 317,808 | |||||||||||||||||||
Computer hardware and other property, net | 36,267 | 18,042 | 20,641 | 23,010 | |||||||||||||||||||
Total assets (15)
|
15,196,847 | 3,791,371 | 3,709,674 | 4,005,111 | |||||||||||||||||||
Total long term liabilities(14)
|
4,346,357 | 1,891,774 | 2,015,353 | 2,057,932 | |||||||||||||||||||
Total long term debt | 3,457,900 | 1,628,611 | 1,930,177 | 1,967,735 | |||||||||||||||||||
Total shareholders' equity | 9,280,723 | 1,248,599 | 1,050,607 | 1,286,106 | |||||||||||||||||||
December 31, | Change | Change | |||||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | 2018 | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||
Annualized Contract Value | $ | 906,554 | $ | 793,727 | $ | 767,021 | 14.2 | % | 3.5 | % |
Year Ended December 31, |
Change
2020 vs. 2019 |
Change
2019 vs. 2018 |
|||||||||||||||||||||||||||
(in thousands, except percentages) |
2020
(As Restated) |
2019 (As Restated) | 2018 | % | % | ||||||||||||||||||||||||
Revenues, net | $ | 1,254,047 | $ | 974,345 | $ | 968,468 | 28.7 | % | 0.6 | % | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues | (429,297) | (352,000) | (430,326) | 22.0 | % | (18.2) | % | ||||||||||||||||||||||
Selling, general and administrative costs | (523,581) | (475,014) | (413,004) | 10.2 | % | 15.0 | % | ||||||||||||||||||||||
Depreciation | (12,709) | (9,181) | (9,422) | 38.4 | % | (2.6) | % | ||||||||||||||||||||||
Amortization | (290,441) | (191,361) | (227,803) | 51.8 | % | (16.0) | % | ||||||||||||||||||||||
Impairment on assets held for sale | — | (18,431) | — | N/M | 100% | ||||||||||||||||||||||||
Restructuring and impairment | (47,595) | (15,670) | — | N/M | 100% | ||||||||||||||||||||||||
Other operating income, net | 52,381 | 4,826 | 6,379 | N/M | (24.3) | % | |||||||||||||||||||||||
Total operating expenses | (1,251,242) | (1,056,831) | (1,074,176) | 18.4 | % | (1.6) | % | ||||||||||||||||||||||
Income (loss) from operations | 2,805 | (82,486) | (105,708) | N/M | (22.0) | % | |||||||||||||||||||||||
Mark to market adjustment on financial instruments (1)
|
(205,062) | (47,656) | — | 330.3 | % | 100 | % | ||||||||||||||||||||||
Legal settlement | — | 39,399 | — | N/M | 100% | ||||||||||||||||||||||||
Income (loss) before interest expense and income tax | (202,257) | (90,743) | (105,708) | N/M | 14.2 | % | |||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (111,914) | (157,689) | (130,805) | (29.0) | % | 20.6 | % | ||||||||||||||||||||||
Loss before income tax | (314,171) | (248,432) | (236,513) | 26.5 | % | 5.0 | % | ||||||||||||||||||||||
Benefit (provision) for income taxes | 2,302 | (10,201) | (5,649) | N/M | 80.6 | % | |||||||||||||||||||||||
Net loss | $ | (311,869) | $ | (258,633) | $ | (242,162) | 20.6 | % | 6.8 | % |
Variance 2020 vs. 2019 | |||||||||||
(in thousands, except percentages) | $ | % | |||||||||
Revenue change driver | |||||||||||
Decrease due to deferred revenues adjustment | $ | (22,663) | (2.3) | % | |||||||
Decrease due to disposals | (64,815) | (6.7) | % | ||||||||
Increase from acquisitions | 353,195 | 36.2 | % | ||||||||
Foreign currency translation | 3,526 | 0.4 | % | ||||||||
Revenue increase from organic business | 10,459 | 1.1 | % | ||||||||
Revenues, net (total change) | $ | 279,702 | 28.7 | % |
Variance 2019 vs. 2018 | |||||||||||
(in thousands, except percentages) | $ | % | |||||||||
Revenue change driver | |||||||||||
Increase due to deferred revenues adjustment | $ | 2,714 | 0.3 | % | |||||||
Decrease due to disposals | (20,450) | (2.1) | % | ||||||||
Foreign currency translation | (5,929) | (0.6) | % | ||||||||
Revenue increase from organic business | 29,542 | 3.1 | % | ||||||||
Revenues, net (total change) | $ | 5,877 | 0.6 | % | |||||||
Variance Increase/(Decrease)
|
Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||||||||
Year Ended
December 31, |
Total Variance (Dollars)
|
Total Variance (Percentage)
|
Acquisitions |
Disposals
|
FX Impact
|
Organic
|
||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
Subscription revenues | $ | 867,731 | $ | 805,518 | $ | 62,213 | 7.7 | % | 12.1 | % | (7.4) | % | 0.3 | % | 2.7 | % | ||||||||||||||||||||||
Transactional revenues | 294,889 | 169,265 | 125,624 | 74.2 | % | 83.3 | % | (3.0) | % | 0.4 | % | (6.5) | % | |||||||||||||||||||||||||
Re-occurring revenues | 114,528 | — | 114,528 | N/M | 100.0 | % | — | % | — | % | — | % | ||||||||||||||||||||||||||
Deferred revenues adjustment (1)
|
(23,101) | (438) | (22,663) | N/M | N/M | — | % | — | % | 69.2 | % | |||||||||||||||||||||||||||
Revenues, net | $ | 1,254,047 | $ | 974,345 | $ | 279,702 | 28.7 | % | 33.9 | % | (6.7) | % | 0.4 | % | 1.1 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1)
|
23,101 | 438 | 22,663 | N/M | N/M | — | % | — | % | (69.2) | % | |||||||||||||||||||||||||||
Adjusted revenues, net | $ | 1,277,148 | $ | 974,783 | $ | 302,365 | 31.0 | % | 36.2 | % | (6.7) | % | 0.4 | % | 1.2 | % | ||||||||||||||||||||||
Variance Increase/(Decrease)
|
Percentage of Factors Increase/(Decrease) | ||||||||||||||||||||||||||||||||||
Year Ended
December 31, |
Total Variance (Dollars)
|
Total Variance (Percentage)
|
Acquisitions |
Disposals
|
FX Impact
|
Organic
|
|||||||||||||||||||||||||||||
(in thousands, except percentages) | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Subscription revenues | $ | 805,518 | $ | 794,097 | $ | 11,421 | 1.4 | % | — | % | (2.2) | % | (0.6) | % | 4.2 | % | |||||||||||||||||||
Transactional revenues | 169,265 | 177,523 | (8,258) | (4.7) | % | — | % | (1.6) | % | (0.8) | % | (2.3) | % | ||||||||||||||||||||||
Deferred revenues adjustment (1)
|
(438) | (3,152) | 2,714 | 86.1 | % | — | % | — | % | — | % | 86.1 | % | ||||||||||||||||||||||
Revenues, net | $ | 974,345 | $ | 968,468 | $ | 5,877 | 0.6 | % | — | % | (1.9) | % | (0.6) | % | 3.1 | % | |||||||||||||||||||
Deferred revenues adjustment (1)
|
438 | 3,152 | (2,714) | (86.1) | % | — | % | — | % | — | % | (86.1) | % | ||||||||||||||||||||||
IPM Product Line (2)
|
— | (20,450) | 20,450 | (100) | % | — | % | (100.0) | % | — | % | — | % | ||||||||||||||||||||||
Adjusted revenues, net | $ | 974,783 | $ | 951,170 | $ | 23,613 | 2.5 | % | — | % | — | % | (0.6) | % | 3.1 | % | |||||||||||||||||||
Variance Increase/(Decrease)
|
Percentage of Factors Increase/(Decrease) | ||||||||||||||||||||||||||||||||||
Year Ended
December 31,
|
Total Variance (Dollars)
|
Total Variance (Percentage)
|
Acquisitions |
Disposals
|
FX Impact
|
Organic
|
|||||||||||||||||||||||||||||
(in thousands, except percentages)
|
2020 | 2019 | |||||||||||||||||||||||||||||||||
Americas
|
$ | 631,222 | $ | 463,041 |
|
$ | 168,181 | 36.3 | % | 46.4 | % | (9.4) | % | — | % | (0.7) | % | ||||||||||||||||||
Europe/Middle East/Africa
|
365,599 | 278,738 |
|
86,861 | 31.2 | % | 35.3 | % | (5.9) | % | 0.7 | % | 1.0 | % | |||||||||||||||||||||
Asia Pacific
|
280,327 | 233,004 |
|
47,323 | 20.3 | % | 17.2 | % | (2.1) | % | 0.6 | % | 4.6 | % | |||||||||||||||||||||
Deferred revenues adjustment (1)
|
(23,101) | (438) | (22,663) | (5,174.2) | % | N/M | — | % | — | % | 69.2 | % | |||||||||||||||||||||||
Revenues, net
|
$ | 1,254,047 | $ | 974,345 | $ | 279,702 | 28.7 | % | 33.9 | % | (6.7) | % | 0.4 | % | 1.1 | % | |||||||||||||||||||
Deferred revenues adjustment (1)
|
23,101 | 438 | 22,663 | — | N/M | — | % | — | % | (69.2) | % | ||||||||||||||||||||||||
Adjusted revenues, net | $ | 1,277,148 | $ | 974,783 | $ | 302,365 | 31.0 | % | 36.2 | % | (6.7) | % | 0.4 | % | 1.2 | % | |||||||||||||||||||
Year Ended December 31, |
Change 2020 vs. 2019
|
Change 2019 vs. 2018 | |||||||||||||||||||||||||||
(in thousands, except percentages) | 2020 | 2019 | 2018 | % | % | ||||||||||||||||||||||||
Revenues, net | $ | 1,254,047 | $ | 974,345 | $ | 968,468 | 28.7 | % | 0.6 | % | |||||||||||||||||||
Deferred revenues adjustment | 23,101 | 438 | 3,152 | N/M | (86.1) | % | |||||||||||||||||||||||
Revenue attributable to IPM Product Line | — | — | (20,450) | — | (100.0) | % | |||||||||||||||||||||||
Adjusted revenues, net | $ | 1,277,148 | $ | 974,783 | $ | 951,170 | 31.0 | % | 2.5 | % |
Year Ended December 31, | |||||||||||||||||
(in thousands, except percentages) |
2020
(As Restated) |
2019
(As Restated) |
2018 | ||||||||||||||
Net loss (As Restated) | $ | (311,869) | $ | (258,633) | $ | (242,162) | |||||||||||
Provision for income taxes | (2,302) | 10,201 | 5,649 | ||||||||||||||
Depreciation and amortization | 303,150 | 200,542 | 237,225 | ||||||||||||||
Interest, net | 111,914 | 157,689 | 130,805 | ||||||||||||||
Transition services agreement costs(1)
|
650 | 10,481 | 55,764 | ||||||||||||||
Transition, transformation and integration expense(2)
|
3,440 | 24,372 | 69,185 | ||||||||||||||
Deferred revenues adjustment(3)
|
23,101 | 438 | 3,152 | ||||||||||||||
Transaction related costs(4)
|
97,499 | 46,214 | 2,457 | ||||||||||||||
Share-based compensation expense | 41,650 | 51,383 | 13,715 | ||||||||||||||
Gain on sale of IPM Product Line | — | — | (36,072) | ||||||||||||||
IPM adjusted operating margin(5)
|
— | — | (5,897) | ||||||||||||||
Gain on sale of Techstreet | (28,140) | — | — | ||||||||||||||
Tax indemnity asset(6)
|
— | — | 33,819 | ||||||||||||||
Restructuring and impairment(7)
|
47,595 | 15,670 | — | ||||||||||||||
Legal Settlement | — | (39,399) | — | ||||||||||||||
Impairment on assets held for sale | — | 18,431 | — | ||||||||||||||
Mark to market adjustment on financial instruments(9)
|
205,062 | 47,656 | — | ||||||||||||||
Other(8)
|
(5,150) | 9,021 | 5,221 | ||||||||||||||
Adjusted EBITDA | $ | 486,600 | $ | 294,066 | $ | 272,861 | |||||||||||
Adjusted EBITDA margin | 38.1 | % | 30.2 | % | 28.7 | % |
Year Ended December 31,
|
|||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 263,500 | $ | 117,580 | $ | (26,100) | |||||||||||||||||
Net cash used in investing activities | (2,992,168) | (140,885) | 11,934 | ||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,926,580 | 75,215 | (32,605) | ||||||||||||||||||||
Effect of exchange rates
|
(5,043) |
|
(971) | (5,193) | |||||||||||||||||||
Increase (Decrease) in cash and cash equivalents
|
192,869 |
|
50,939 | (51,964) | |||||||||||||||||||
Cash and cash equivalents, and restricted cash beginning of the year | 76,139 |
|
25,584 | 77,548 | |||||||||||||||||||
Less: Cash included in assets held for sale, end of period
|
— | (384) | — | ||||||||||||||||||||
Cash and cash equivalents, and restricted cash end of the year | $ | 269,008 |
|
$ | 76,139 | $ | 25,584 |
Year Ended December 31, | |||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 263,500 | $ | 117,580 | (26,100) | ||||||||||||||||||
Capital expenditures | (107,713) | (69,836) | (45,410) | ||||||||||||||||||||
Free cash flow | $ | 155,787 | $ | 47,744 | $ | (71,510) |
Year Ended December 31, | |||||||||||||||||
2020
(As Restated) |
2019
(As Restated) |
2018 | |||||||||||||||
(in thousands) | |||||||||||||||||
Net loss (As Restated) | $ | (311,869) | $ | (258,633) | $ | (242,162) | |||||||||||
Provision for income taxes | (2,799) | 10,201 | 5,649 | ||||||||||||||
Depreciation and amortization | 303,150 | 200,542 | 237,225 | ||||||||||||||
Interest, net | 111,914 | 157,689 | 130,805 | ||||||||||||||
Transition services agreement costs(1)
|
650 | 10,481 | 55,764 | ||||||||||||||
Transition, transformation and integration expense(2)
|
3,440 | 24,372 | 69,185 | ||||||||||||||
Deferred revenues adjustment(3)
|
23,101 | 438 | 3,152 | ||||||||||||||
Transaction related costs(4)
|
97,499 | 46,214 | 2,457 | ||||||||||||||
Share-based compensation expense | 41,650 | 51,383 | 13,715 | ||||||||||||||
Gain on sale of IPM Product Line | — | — | (36,072) | ||||||||||||||
IPM adjusted operating margin(5)
|
— | — | (5,897) | ||||||||||||||
Gain on sale of Techstreet | (28,140) | — | — | ||||||||||||||
Tax indemnity asset(6)
|
— | — | 33,819 | ||||||||||||||
Restructuring and impairment(7)
|
47,595 | 15,670 | — | ||||||||||||||
Legal Settlement | — | (39,399) | — | ||||||||||||||
Impairment on assets held for sale | — | 18,431 | — | ||||||||||||||
Mark to market adjustment on financial instruments(12)
|
205,062 | 47,656 | — | ||||||||||||||
Other(8)
|
(5,150) | 9,021 | 5,221 | ||||||||||||||
Adjusted EBITDA | 486,103 | 294,066 | 272,861 | ||||||||||||||
Realized foreign exchange gain | (2,431) | (3,500) | — | ||||||||||||||
DRG Adjusted EBITDA impact(9)
|
(2,668) | — | — | ||||||||||||||
CPA Adjusted EBITDA impact(9)
|
193,930 | — | — | ||||||||||||||
IncoPat Adjusted EBITDA impact(9)
|
(459) | — | — | ||||||||||||||
Hanlim Adjusted EBITDA impact(9)
|
479 | — | — | ||||||||||||||
Cost savings(10)
|
86,659 | 15,500 | 12,700 | ||||||||||||||
Excess standalone costs(11)
|
— | 30,000 | 25,407 | ||||||||||||||
Standalone Adjusted EBITDA | $ | 761,613 | $ | 336,066 | $ | 310,968 |
Year Ended December 31, | |||||||||||||||||
(in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Actual standalone company infrastructure costs | $ | — | $ | 162,000 | 153,607 | ||||||||||||
Steady state standalone cost estimate | — | (132,000) | (128,200) | ||||||||||||||
Excess standalone costs | $ | — | $ | 30,000 | $ | 25,407 |
Payments Due by Period | |||||||||||||||||||||||||||||
Less than 1 Year | 1 to 3 Years | 3 to 5 Years | More than 5 Years | Total | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Long-term debt, including interest (1)
|
181,017 | 326,926 | 324,254 | 3,526,841 | 4,359,038 | ||||||||||||||||||||||||
Operating leases (2)
|
35,963 | 57,768 | 37,024 | 29,142 | 159,897 | ||||||||||||||||||||||||
Purchase obligations (3)
|
58,061 | 62,162 | 38,460 | — | 158,683 | ||||||||||||||||||||||||
Total | $ | 275,041 | $ | 446,856 | $ | 399,738 | $ | 3,555,983 | $ | 4,677,618 | |||||||||||||||||||
As of December 31, | |||||||||||
As Restated | |||||||||||
2020 |
|
2019 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 257,730 | $ | 76,130 | |||||||
Restricted cash | 11,278 | 9 | |||||||||
Accounts receivable, net of allowance of $8,745 and $16,511 at December 31, 2020 and December 31, 2019, respectively
|
737,733 | 333,858 | |||||||||
Prepaid expenses | 58,273 | 40,710 | |||||||||
Other current assets | 262,494 | 11,750 | |||||||||
Assets held for sale | — | 30,619 | |||||||||
Total current assets | 1,327,508 | 493,076 | |||||||||
Property and equipment, net | 36,267 | 18,042 | |||||||||
Other intangible assets, net | 7,370,350 | 1,828,640 | |||||||||
Goodwill | 6,252,636 | 1,328,045 | |||||||||
Other non-current assets | 47,944 | 18,632 | |||||||||
Deferred income taxes | 29,786 | 19,488 | |||||||||
Operating lease right-of-use assets | 132,356 | 85,448 | |||||||||
Total Assets | $ | 15,196,847 | $ | 3,791,371 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 82,038 | $ | 26,458 | |||||||
Accrued expenses and other current liabilities | 716,356 | 159,217 | |||||||||
Current portion of deferred revenues | 707,318 | 407,325 | |||||||||
Current portion of operating lease liability | 35,455 | 22,130 | |||||||||
Current portion of long-term debt | 28,600 | 9,000 | |||||||||
Liabilities held for sale | — |
|
26,868 | ||||||||
Total current liabilities | 1,569,767 | 650,998 | |||||||||
Long-term debt | 3,457,900 | 1,628,611 | |||||||||
Warrant liabilities | 312,751 | 111,813 | |||||||||
Non-current portion of deferred revenues | 41,399 | 19,723 | |||||||||
Other non-current liabilities | 67,722 | 18,891 | |||||||||
Deferred income taxes | 362,261 | 48,547 | |||||||||
Operating lease liabilities | 104,324 | 64,189 | |||||||||
Total liabilities | 5,916,124 | 2,542,772 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Ordinary Shares, no par value; unlimited shares authorized at December 31, 2020 and December 31, 2019; 606,329,598 and 306,874,115 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively
|
9,989,284 | 2,144,372 | |||||||||
Accumulated other comprehensive income (loss) | 503,521 | (4,879) | |||||||||
Accumulated deficit | (1,212,082) | (890,894) | |||||||||
Total shareholders’ equity | 9,280,723 | 1,248,599 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 15,196,847 | $ | 3,791,371 |
Year ended December 31, | |||||||||||||||||
As Restated | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenues, net | $ | 1,254,047 | $ | 974,345 | $ | 968,468 | |||||||||||
Operating expenses: | |||||||||||||||||
Cost of revenues | (429,297) | (352,000) | (430,326) | ||||||||||||||
Selling, general and administrative costs | (523,581) | (475,014) | (413,004) | ||||||||||||||
Depreciation | (12,709) | (9,181) | (9,422) | ||||||||||||||
Amortization | (290,441) | (191,361) | (227,803) | ||||||||||||||
Impairment on assets held for sale | — | (18,431) | — | ||||||||||||||
Restructuring and impairment | (47,595) | (15,670) | — | ||||||||||||||
Other operating income, net | 52,381 | 4,826 | 6,379 | ||||||||||||||
Total operating expenses | (1,251,242) | (1,056,831) | (1,074,176) | ||||||||||||||
Income (loss) from operations | 2,805 | (82,486) | (105,708) | ||||||||||||||
Mark to market adjustment on financial instruments | (205,062) | (47,656) | — | ||||||||||||||
Legal settlement | — | 39,399 | — | ||||||||||||||
Loss before interest expense and income tax | (202,257) | (90,743) | (105,708) | ||||||||||||||
Interest expense and amortization of debt discount, net | (111,914) | (157,689) | (130,805) | ||||||||||||||
Loss before income tax | (314,171) | (248,432) | (236,513) | ||||||||||||||
Benefit (provision) for income taxes | 2,302 | (10,201) | (5,649) | ||||||||||||||
Net loss | $ | (311,869) | $ | (258,633) | $ | (242,162) | |||||||||||
Per share: | |||||||||||||||||
Basic and diluted | $ | (0.73) | $ | (0.94) | $ | (1.11) | |||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||
Basic and diluted | 428,600,690 | 273,883,342 | 217,472,870 | ||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
As Restated | |||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||
Net loss | $ | (311,869) | $ | (258,633) | $ | (242,162) | |||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Interest rate swaps, net of $0 tax in all periods
|
(978) | (6,422) | 2,537 | ||||||||||||||||||||
Defined benefit pension plans, net of tax (benefit) provision of $(65), $683 and $(91), respectively
|
(659) | (1,041) | (17) | ||||||||||||||||||||
Foreign currency translation adjustment | 510,037 | (2,774) | (11,146) | ||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 508,400 | (10,237) | (8,626) | ||||||||||||||||||||
Comprehensive income (loss) | $ | 196,531 | $ | (268,870) | $ | (250,788) |
As Restated | |||||||||||||||||||||||||||||
Share Capital |
Accumulated
Other Comprehensive Income (Loss) |
Accumulated
Deficit |
Total
Shareholders’ Equity |
||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
Balance at December 31, 2017 as originally reported | 1,644,720 | $ | 1,662,221 | $ | 13,984 | $ | (390,099) | $ | 1,286,106 | ||||||||||||||||||||
Conversion of units of share capital | 215,683,103 | — | — | — | — | ||||||||||||||||||||||||
Balance at December 31, 2017, as recasted | 217,327,823 | 1,662,221 | 13,984 | (390,099) | 1,286,106 | ||||||||||||||||||||||||
Issuance of ordinary shares, net | 198,602 | 1,574 | — | — | 1,574 | ||||||||||||||||||||||||
Share-based award activity | — | 13,715 | — | — | 13,715 | ||||||||||||||||||||||||
Net loss | — | — | — | (242,162) | (242,162) | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | (8,626) | — | (8,626) | |||||||||||||||||||||||||
Balance at December 31, 2018 | 217,526,425 | $ | 1,677,510 | $ | 5,358 | $ | (632,261) | $ | 1,050,607 | ||||||||||||||||||||
Balance at December 31, 2018, as originally reported | 1,646,223 | $ | 1,677,510 | $ | 5,358 | $ | (632,261) | $ | 1,050,607 | ||||||||||||||||||||
Conversion of units of share capital | 215,880,202 | — | — | — | — | ||||||||||||||||||||||||
Balance at December 31, 2018, as recasted | 217,526,425 | 1,677,510 | 5,358 | (632,261) | 1,050,607 | ||||||||||||||||||||||||
Shares subject to redemption (As Restated) | — | (64,157) | — | — | (64,157) | ||||||||||||||||||||||||
Tax Receivable Agreement | — | (264,000) | — | — | (264,000) | ||||||||||||||||||||||||
Settlement of Tax Receivable Agreement | — | 64,000 | — | — | 64,000 | ||||||||||||||||||||||||
Issuance of ordinary shares, net | 1,597,691 | 1,582 | — | — | 1,582 | ||||||||||||||||||||||||
Merger recapitalization | 87,749,999 | 678,054 | — | — | 678,054 | ||||||||||||||||||||||||
Share-based award activity | — | 51,383 | — | — | 51,383 | ||||||||||||||||||||||||
Net loss (As Restated) | — | — | — | (258,633) | (258,633) | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (10,237) | — | (10,237) | ||||||||||||||||||||||||
Balance at December 31, 2019 (As Restated) | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | ||||||||||||||||||||
Balance at December 31, 2019 (As Restated) | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | ||||||||||||||||||||
Adjustment to opening Accumulated deficit related to adoption of ASC Topic 326 | — | — | — | (9,319) | (9,319) | ||||||||||||||||||||||||
Exercise of public warrants | 28,880,098 | 277,526 | — | — | 277,526 | ||||||||||||||||||||||||
Exercise of Private Placement Warrants (As Restated) | 274,000 | 4,124 | — | — | 4,124 | ||||||||||||||||||||||||
Exercise of stock options | 12,042,862 | 2,122 | — | — | 2,122 | ||||||||||||||||||||||||
Vesting of restricted stock units | 289,641 | — | — | — | — | ||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (7,297,396) | (33,056) | — | — | (33,056) | ||||||||||||||||||||||||
Issuance of ordinary shares, net | 265,266,278 | 7,558,774 | — | — | 7,558,774 | ||||||||||||||||||||||||
Share-based award activity | — | 35,422 | — | — | 35,422 | ||||||||||||||||||||||||
Net loss (As Restated) | — | — | — | (311,869) | (311,869) | ||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 508,400 | — | 508,400 | ||||||||||||||||||||||||
Balance at December 31, 2020 (As Restated) | 606,329,598 | $ | 9,989,284 | $ | 503,521 | $ | (1,212,082) | $ | 9,280,723 |
Year Ended December 31, | |||||||||||||||||||||||
As Restated
|
|||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||||||||
Net loss | $ | (311,869) | $ | (258,633) | $ | (242,162) | |||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 303,150 | 200,542 | 237,225 | ||||||||||||||||||||
Bad debt expense | 3,332 | 1,331 | 6,507 | ||||||||||||||||||||
Deferred income tax benefit | (45,105) | 357 | (14,103) | ||||||||||||||||||||
Share-based compensation | 35,422 | 51,383 | 13,715 | ||||||||||||||||||||
Restructuring and impairment | 5,288 | — | — | ||||||||||||||||||||
Gain on foreign currency forward contracts | (2,903) | — | — | ||||||||||||||||||||
Mark to market adjustment on contingent and phantom shares | 24,218 | — | — | ||||||||||||||||||||
Mark to market adjustment on financial instruments | 205,062 | 47,656 | — | ||||||||||||||||||||
Loss on extinguishment of debt | — | 50,676 | — | ||||||||||||||||||||
Gain on disposal of business
|
(29,192) | — | (39,104) | ||||||||||||||||||||
Impairment on assets held for sale | — | 18,431 | — | ||||||||||||||||||||
Deferred finance charges | 5,752 | 2,496 | 9,182 | ||||||||||||||||||||
Tax indemnity write-off | — | — | 33,819 | ||||||||||||||||||||
Other operating activities | 2,611 | (374) | (3,979) | ||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | 29,947 | (593) | (50,906) | ||||||||||||||||||||
Prepaid expenses | 5,742 | (10,224) | (2,936) | ||||||||||||||||||||
Other assets | 43,058 | (975) | 578 | ||||||||||||||||||||
Accounts payable | (2,851) | (13,838) | (18,091) | ||||||||||||||||||||
Accrued expenses and other current liabilities | (90,568) | 1,095 | 9,842 | ||||||||||||||||||||
Deferred revenues | 80,683 | 33,480 | 33,539 | ||||||||||||||||||||
Operating lease right of use assets | 5,329 | 11,365 | — | ||||||||||||||||||||
Operating lease liabilities | (6,064) | (11,251) | — | ||||||||||||||||||||
Other liabilities | 2,458 | (5,344) | 774 | ||||||||||||||||||||
Net cash provided by operating activities | 263,500 | 117,580 | (26,100) | ||||||||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||||||||
Capital expenditures | (107,713) | (69,836) | (45,410) | ||||||||||||||||||||
Acquisitions, net of cash acquired | (2,919,871) | (68,424) | (23,539) | ||||||||||||||||||||
Acquisition of intangible assets | (5,982) | (2,625) | — | ||||||||||||||||||||
Proceeds from sale of product line, net of restricted cash | 41,398 | — | 80,883 | ||||||||||||||||||||
Net cash used in investing activities | (2,992,168) | (140,885) | 11,934 | ||||||||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||||||||
Proceeds from revolving credit facility | 60,000 | 70,000 | 45,000 | ||||||||||||||||||||
Principal payments on term loan | (12,600) | (641,509) | (46,709) | ||||||||||||||||||||
Repayments of revolving credit facility | (125,000) | (50,000) | (30,000) | ||||||||||||||||||||
Payment of debt issuance costs | (38,340) | (41,923) | — | ||||||||||||||||||||
Contingent purchase price payment | (7,816) | (2,371) | (2,470) | ||||||||||||||||||||
Proceeds from reverse recapitalization | — | 682,087 | — | ||||||||||||||||||||
Proceeds from issuance of debt | 1,960,000 | 1,600,000 | — | ||||||||||||||||||||
Extinguishment of debt | — | (1,342,651) | — | ||||||||||||||||||||
Tax receivable agreement payout | — | (200,000) | — | ||||||||||||||||||||
Proceeds from issuance of ordinary shares | 843,744 | — | — | ||||||||||||||||||||
Proceeds from warrant exercises | 277,526 | — | — | ||||||||||||||||||||
Proceeds from stock options exercised | 2,122 | 1,582 | 1,574 |
Year Ended December 31, | |||||||||||||||||||||||
As Restated
|
|||||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | (33,056) | — | — | ||||||||||||||||||||
Net cash provided by (used in) financing activities | 2,926,580 | 75,215 | (32,605) | ||||||||||||||||||||
Effects of exchange rates | (5,043) | (971) | (5,193) | ||||||||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 192,869 | 50,939 | (51,964) | ||||||||||||||||||||
Beginning of period: | |||||||||||||||||||||||
Cash and cash equivalents | 76,130 | 25,575 | 53,186 | ||||||||||||||||||||
Restricted cash | 9 | 9 | 24,362 | ||||||||||||||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | 76,139 | 25,584 | 77,548 | ||||||||||||||||||||
Less: Cash included in assets held for sale, end of period | — | (384) | — | ||||||||||||||||||||
Cash and cash equivalents, and restricted cash, end of period | 269,008 | 76,139 | 25,584 | ||||||||||||||||||||
End of period: | |||||||||||||||||||||||
Cash and cash equivalents | 257,730 | 76,130 | 25,575 | ||||||||||||||||||||
Restricted cash | 11,278 | 9 | 9 | ||||||||||||||||||||
Total cash and cash equivalents, and restricted cash, end of period | $ | 269,008 | $ | 76,139 | $ | 25,584 | |||||||||||||||||
Supplemental Cash Flow Information | |||||||||||||||||||||||
Cash paid for interest | $ | 97,510 | $ | 101,164 | $ | 121,916 | |||||||||||||||||
Cash paid for income tax | $ | 27,621 | $ | 29,204 | $ | 13,210 | |||||||||||||||||
Capital expenditures included in accounts payable | $ | 7,783 | $ | 8,762 | $ | 5,166 | |||||||||||||||||
Assets received as reverse recapitalization capital | $ | — | $ | 1,877 | $ | — | |||||||||||||||||
Liabilities assumed as reduction of reverse recapitalization capital | $ | — | $ | 5,910 | $ | — |
Computer hardware | 3 years | |||||||
Furniture, fixtures and equipment |
5-7 years
|
|||||||
Leasehold improvements | Lesser of lease term or estimated useful life |
Customer relationships |
2 – 23 years
|
||||
Databases and content |
2 – 20 years
|
||||
Developed technology |
3 – 14 years
|
||||
Computer software | 5 years | ||||
Finite-lived trade names |
2 - 18 years
|
||||
Non-compete agreements | 5 years | ||||
Backlog | 4 years | ||||
Indefinite-lived trade names | Indefinite |
Year ended
December 31, 2020
|
|||||
Revenues, net (1)
|
$ | 186,428 | |||
Net income attributable to the Company's stockholders | $ | 4,999 | |||
(1) Includes $7,157 of a deferred revenue haircut recognized during the year ended December 31, 2020.
|
Total | |||||
Accounts receivable | $ | 52,193 | |||
Prepaid expenses | 4,295 | ||||
Other current assets | 68,001 | ||||
Property and equipment, net | 4,136 | ||||
Other intangible assets(1)
|
491,366 | ||||
Other non-current assets | 2,960 | ||||
Operating lease right-of-use assets | 25,099 | ||||
Total assets | $ | 648,050 | |||
Accounts payable | 3,474 | ||||
Accrued expenses and other current liabilities | 88,561 | ||||
Current portion of deferred revenue | 35,126 | ||||
Current portion of operating lease liabilities | 5,188 | ||||
Deferred income taxes | 47,467 | ||||
Non-current portion of deferred revenue | 936 | ||||
Operating lease liabilities | 20,341 | ||||
Total liabilities | 201,093 | ||||
Fair value of acquired identifiable assets and liabilities | $ | 446,957 | |||
Purchase price, net of cash(2)
|
944,220 | ||||
Less: Fair value of acquired identifiable assets and liabilities | 446,957 | ||||
Goodwill | $ | 497,263 | |||
(1) Includes $3,966 of internally developed software in progress acquired.
|
|||||
(2) The Company acquired cash of $20,777.
|
Fair Value as of February 28, 2020 |
Remaining
Range of Years |
||||||||||
Customer relationships | $ | 381,000 |
10-21
|
||||||||
Database and content | 50,200 |
2-7
|
|||||||||
Trade names | 5,200 |
4-7
|
|||||||||
Purchased software | 23,000 |
3-8
|
|||||||||
Backlog | 28,000 | 4 | |||||||||
Total identifiable intangible assets | $ | 487,400 |
As Restated | |||||||||||
Year ended December 31,
|
|||||||||||
2020 | 2019 | ||||||||||
Pro forma revenues, net | $ | 1,284,419 | $ | 1,174,295 | |||||||
Pro forma net loss attributable to the Company's stockholders - (As Restated) | (303,457) | (304,846) |
Issuance of 218,183,778 shares
|
$ | 6,761,515 | ||||||
Cash paid for repayment of CPA Global's parent company debt and related interest rate swap termination charge | 2,078,084 | |||||||
Total purchase price | 8,839,599 | |||||||
Cash acquired | (98,610) | |||||||
Total purchase price, net of cash acquired | $ | 8,740,989 |
Total | |||||
Accounts receivable | $ | 373,124 | |||
Prepaid expenses | 27,595 | ||||
Other current assets | 215,364 | ||||
Property and equipment, net | 12,288 | ||||
Other intangible assets | 4,920,317 | ||||
Deferred income taxes | 19,310 | ||||
Other non-current assets | 24,613 | ||||
Operating lease right-of-use assets | 30,649 | ||||
Total assets | $ | 5,623,260 | |||
Accounts payable | 53,501 | ||||
Accrued expenses and other current liabilities | 414,063 | ||||
Current portion of deferred revenue | 180,376 | ||||
Current portion of operating lease liabilities | 7,738 | ||||
Non-current portion of deferred revenue | 16,786 | ||||
Deferred income taxes | 301,946 | ||||
Other non-current liabilities | 43,785 | ||||
Operating lease liabilities | 23,615 | ||||
Total liabilities | 1,041,810 | ||||
Fair value of acquired identifiable assets and liabilities | $ | 4,581,450 | |||
Purchase price, net of cash(1)
|
$ | 8,740,989 | |||
Less: Fair value of acquired identifiable assets and liabilities | 4,581,450 | ||||
Goodwill | $ | 4,159,539 | |||
(1) The Company acquired cash of $98,610.
|
Fair Value as of October 1, 2020 |
Remaining
Range of Years |
||||||||||
Customer relationships | $ | 4,643,306 |
17-23
|
||||||||
Technology | 266,224 |
6-14
|
|||||||||
Trademarks | 10,787 |
2-17
|
|||||||||
Total identifiable intangible assets | $ | 4,920,317 |
As Restated | |||||||||||
Year ended December 31,
|
|||||||||||
2020 | 2019 | ||||||||||
Pro forma revenues, net | $ | 1,709,312 | $ | 1,498,485 | |||||||
Pro forma net loss attributable to the Company's stockholders - (As Restated) | (349,913) | (403,653) |
Total | |||||
Accounts receivable | $ | 1,132 | |||
Prepaid expenses | 168 | ||||
Other current assets | 100 | ||||
Property and equipment, net | 354 | ||||
Other intangible assets | 21,957 | ||||
Other non-current assets | 283 | ||||
Total assets | $ | 23,994 | |||
Accounts payable | 73 | ||||
Accrued expenses and other current liabilities | 843 | ||||
Current portion of deferred revenue | 6,334 | ||||
Deferred income taxes | 4,802 | ||||
Other non-current liabilities | 283 | ||||
Total liabilities | $12,335 | ||||
Fair value of acquired identifiable assets and liabilities | $ | 11,659 | |||
Purchase price, net of cash(1)
|
52,133 | ||||
Less: Fair value of acquired identifiable assets and liabilities | 11,659 | ||||
Goodwill | $ | 40,474 | |||
(1) The Company acquired cash of $844.
|
Fair Value as of October 26, 2020 |
Remaining
Amortization Period (in years) |
||||||||||
Customer relationships | $ | 19,989 | 11 | ||||||||
Existing technology | $ | 1,892 | 6 | ||||||||
Trade names | $ | 76 | 2 | ||||||||
Total identifiable intangible assets | $ | 21,957 |
Total | |||||
Accounts receivable | $ | 44 | |||
Prepaid expenses | 7 | ||||
Other current assets | 844 | ||||
Property and equipment, net | 75 | ||||
Other intangible assets | 8,805 | ||||
Other non-current assets | 94 | ||||
Total assets | $ | 9,869 | |||
Accounts payable | 27 | ||||
Accrued expenses and other current liabilities | 1,512 | ||||
Deferred income taxes | 1,937 | ||||
Total liabilities | 3,476 | ||||
Fair value of acquired identifiable assets and liabilities | $ | 6,393 | |||
Purchase price, net of cash(1)
|
9,254 | ||||
Less: Fair value of acquired identifiable assets and liabilities | 6,393 | ||||
Goodwill | $ | 2,861 | |||
(1)The Company acquired cash of $2,191.
|
Fair Value as of November 23, 2020 |
Remaining
Range of Years |
||||||||||
Customer relationships | $ | 7,832 |
11-13
|
||||||||
Trade name | 15 | 2 | |||||||||
Non-compete agreements | 958 | 5 | |||||||||
Total identifiable intangible assets | $ | 8,805 |
2020 |
2019(1)
|
2018 | |||||||||||||||
Current assets | $ | 742,867 | $ | 2,137 | $ | 706 | |||||||||||
Property and equipment, net | 16,853 | 86 | — | ||||||||||||||
Finite-lived intangible assets | 5,442,445 | 38,719 | 7,928 | ||||||||||||||
Goodwill | 4,700,137 | 44,779 | 21,527 | ||||||||||||||
Other non-current assets | 103,008 | 2 | 38 | ||||||||||||||
Total assets | $ | 11,005,310 | $ | 85,723 | $ | 30,199 | |||||||||||
Current liabilities | 798,753 | 4,366 | 491 | ||||||||||||||
Non-current liabilities | 459,961 | 8,920 | 2,054 | ||||||||||||||
Total liabilities | 1,258,714 | 13,286 | 2,545 | ||||||||||||||
Net assets acquired | $ | 9,746,596 | $ | 72,437 | $ | 27,654 | |||||||||||
(1) Net assets acquired includes $3,500 related to the SequenceBase acquisition.
|
As of December 31, | |||||
2019 | |||||
Assets: | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 384 | |||
Prepaid expenses | 1,692 | ||||
Other current assets | 198 | ||||
Total current assets | 2,274 | ||||
Computer hardware and other property, net | 2,961 | ||||
Other intangible assets, net | 18,957 | ||||
Other non-current assets | 1,993 | ||||
Operating lease right-of-use assets | 4,434 | ||||
Total Assets held for sale | $ | 30,619 | |||
Liabilities: | |||||
Current liabilities: | |||||
Accounts payable | $ | 25 | |||
Accrued expenses and other current liabilities | 1,764 | ||||
Current portion of deferred revenues | 18,067 | ||||
Current portion of operating lease liabilities | 1,314 | ||||
Total current liabilities | 21,170 | ||||
Non-current portion of deferred revenues | 834 | ||||
Other non-current liabilities | 163 | ||||
Operating lease liabilities | 4,701 | ||||
Total Liabilities held for sale | $ | 26,868 |
Year ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Accounts receivable | $ | 746,478 | $ | 350,369 | |||||||
Less: Accounts receivable allowance | (8,745) | (16,511) | |||||||||
Accounts receivable, net | $ | 737,733 | $ | 333,858 |
Year ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of year | $ | 16,511 | $ | 14,076 | $ | 8,495 | |||||||||||
Additional provisions | 4,339 | 4,662 | 6,469 | ||||||||||||||
Write-offs | (22,205) | (2,321) | (870) | ||||||||||||||
Opening balance sheet adjustment- ASU 2016 -13 adoption | 10,097 | — | — | ||||||||||||||
Exchange differences | 3 | 94 | (18) | ||||||||||||||
Balance at the end of year | $ | 8,745 | $ | 16,511 | $ | 14,076 |
December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Operating lease cost | $ | 24,438 | $ | 27,812 | |||||||||||||||||||
Short-term lease cost | 701 | 296 | |||||||||||||||||||||
Variable lease cost | 1,317 | 1,213 | |||||||||||||||||||||
Total lease cost | $ | 26,456 | $ | 29,321 |
December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Other information | |||||||||||||||||
Cash Paid for amounts included in measurement of lease liabilities | |||||||||||||||||
Operating cash flows from operating leases | $31,841 | $24,303 | |||||||||||||||
Right-of-use assets obtained in exchange for lease obligations | |||||||||||||||||
Operating leases | $8,542 | $6,386 | |||||||||||||||
Weighted-average remaining lease term - operating leases | 6 | 6 | |||||||||||||||
Weighted-average discount rate - operating leases | 5.2 | % | 5.8 | % |
Year ending December 31, | ||||||||||||||
2021 | $ | 35,963 | ||||||||||||
2022 | 30,808 | |||||||||||||
2023 | 26,960 | |||||||||||||
2024 | 21,976 | |||||||||||||
2025 | 15,048 | |||||||||||||
2026 & Thereafter | 29,142 | |||||||||||||
Total operating lease commitments | 159,897 | |||||||||||||
Less imputed interest | (21,624) | |||||||||||||
Total | $ | 138,273 |
Year ended December 31, | |||||
2019 | $ | 22,140 | |||
2020 | 19,531 | ||||
2021 | 17,240 | ||||
2022 | 15,333 | ||||
2023 | 14,944 | ||||
Thereafter | 40,367 | ||||
Total operating lease commitments | $ | 129,555 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Computer hardware | $ | 38,253 | $ | 24,620 | |||||||
Leasehold improvements | 21,614 | 12,496 | |||||||||
Furniture, fixtures and equipment | 13,201 | 4,412 | |||||||||
Total property and equipment, gross | 73,068 | 41,528 | |||||||||
Accumulated depreciation | (36,801) | (23,486) | |||||||||
Total property and equipment, net | $ | 36,267 | $ | 18,042 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 5,598,175 | $ | (261,350) | $ | 5,336,825 | $ | 280,493 | $ | (180,571) | $ | 99,922 | |||||||||||||||||||||||
Databases and content | 1,848,041 | (464,683) | 1,383,358 | 1,755,323 | (342,385) | 1,412,938 | |||||||||||||||||||||||||||||
Computer software | 658,976 | (209,611) | 449,365 | 285,701 | (135,919) | 149,782 | |||||||||||||||||||||||||||||
Trade names | 18,606 | (2,360) | 16,246 | 1,570 | — | 1,570 | |||||||||||||||||||||||||||||
Backlog | 29,216 | (5,905) | 23,311 | — | — | — | |||||||||||||||||||||||||||||
Finite-lived intangible assets | 8,153,014 | (943,909) | 7,209,105 | 2,323,087 | (658,875) | 1,664,212 | |||||||||||||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Trade names | 161,245 | — | 161,245 | 164,428 | — | 164,428 | |||||||||||||||||||||||||||||
Total intangible assets | $ | 8,314,259 | $ | (943,909) | $ | 7,370,350 | $ | 2,487,515 | $ | (658,875) | $ | 1,828,640 |
Remaining Weighted - Average Amortization Period (in years) | |||||
Customer relationships | 22.22 | ||||
Databases and content | 13.68 | ||||
Computer software | 9.62 | ||||
Trade names | 5.39 | ||||
Backlog | 4.04 | ||||
Total | 19.73 |
2021 | $ | 503,174 | |||
2022 | 466,526 | ||||
2023 | 422,536 | ||||
2024 | 400,836 | ||||
2025 | 392,076 | ||||
Thereafter | 5,002,280 | ||||
Subtotal finite-lived intangible assets | 7,187,428 | ||||
Internally developed software projects in process | 21,677 | ||||
Total finite-lived intangible assets | 7,209,105 | ||||
Intangibles with indefinite lives | 161,245 | ||||
Total intangible assets | $ | 7,370,350 |
Science Segment | Intellectual Property Segment | Consolidated Total | |||||||||||||||
Balance as of December 31, 2018 | $ | 908,406 | $ | 374,513 | $ | 1,282,919 | |||||||||||
Acquisition | — | 44,779 | 44,779 | ||||||||||||||
Transferred to Assets held for sale | — | (468) | (468) | ||||||||||||||
Impact of foreign currency fluctuations and other | 1,531 | (716) | 815 | ||||||||||||||
Balance as of December 31, 2019 | $ | 909,937 | $ | 418,108 | $ | 1,328,045 | |||||||||||
Acquisition | 497,263 | 4,202,875 | 4,700,138 | ||||||||||||||
Divestiture | — | (9,129) | (9,129) | ||||||||||||||
Impact of foreign currency fluctuations and other | 607 | 232,975 | 233,582 | ||||||||||||||
Balance as of December 31, 2020 | $ | 1,407,807 | $ | 4,844,829 | $ | 6,252,636 | |||||||||||
AOCI Balance at December 31, 2017 | $ | 1,107 | |||||||||
Derivative gains recognized in Other comprehensive loss | 2,313 | ||||||||||
Amount reclassified out of Other comprehensive loss to Net loss | 224 | ||||||||||
AOCI Balance at December 31, 2018 | $ | 3,644 | |||||||||
Derivative losses recognized in Other comprehensive loss | (7,107) | ||||||||||
Amount reclassified out of Other comprehensive loss to Net loss | 685 | ||||||||||
AOCI Balance at December 31, 2019 | $ | (2,778) | |||||||||
Derivative losses recognized in Other comprehensive loss | (4,432) | ||||||||||
Amount reclassified out of Other comprehensive loss to Net loss | 3,454 | ||||||||||
AOCI Balance at December 31, 2020 | $ | (3,756) |
Balance at December 31, 2018 | $ | — | |||||||||
Merger recapitalization | 64,157 | ||||||||||
Mark to market adjustment on financial instruments | 47,656 | ||||||||||
Exercise of Private Placement Warrants | — | ||||||||||
Balance at December 31, 2019 | $ | 111,813 | |||||||||
Mark to market adjustment on financial instruments | 205,062 | ||||||||||
Exercise of Private Placement Warrants | (4,124) | ||||||||||
Balance at December 31, 2020 | $ | 312,751 |
As Restated | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 |
Level 3
(As Restated) |
Total Fair Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Forward contracts asset | $ | — | $ | 8,574 | $ | — | $ | 8,574 | |||||||||||||||
Employee phantom share receivable asset | — | 188,770 | — | 188,770 | |||||||||||||||||||
— | 197,344 | — | 197,344 | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Warrant liability (As Restated) | — | — | 312,751 | 312,751 | |||||||||||||||||||
Employee phantom share liability - current | — | 193,162 | — | 193,162 | |||||||||||||||||||
Employee phantom share liability - non-current | — | 18,670 | — | 18,670 | |||||||||||||||||||
Forward contracts liability | — | 106 | — | 106 | |||||||||||||||||||
Interest rate swap liability | — | 5,159 | — | 5,159 | |||||||||||||||||||
Earn-out liability | — | — | — | — | |||||||||||||||||||
Contingent stock liability | — | 130,594 | — | 130,594 | |||||||||||||||||||
Total | $ | — | $ | 347,691 | $ | 312,751 | $ | 660,442 | |||||||||||||||
As Restated | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Level 1 | Level 2 |
Level 3
(As Restated) |
Total Fair Value | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest rate swap liability | $ | — | $ | 2,778 | $ | — | $ | 2,778 | |||||||||||||||
Warrant liability (As Restated) | — | — | 111,813 | 111,813 | |||||||||||||||||||
Earn-out liability | — | — | 11,100 | 11,100 | |||||||||||||||||||
Total | $ | — | $ | 2,778 | $ | 122,913 | $ | 125,691 | |||||||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Employee phantom share plan liability (1)
|
$ | 193,162 | $ | — | |||||||
Contingent stock liability(2)
|
130,594 | — | |||||||||
Employee related accruals(3)
|
98,481 | 55,155 | |||||||||
Accrued professional fees(4)
|
67,628 | 46,161 | |||||||||
Tax related accruals (5)
|
45,119 | 6,994 | |||||||||
Other accrued expenses and other current liabilities(6)
|
181,372 | 50,907 | |||||||||
Total accrued expenses and other current liabilities | $ | 716,356 | $ | 159,217 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Obligation and funded status: | |||||||||||
Change in benefit obligation | |||||||||||
Projected benefit obligation at beginning of year | $ | 16,563 | $ | 14,486 | |||||||
Service costs | 1,136 | 870 | |||||||||
Interest cost | 292 | 311 | |||||||||
Plan participant contributions | 124 | 114 | |||||||||
Actuarial losses | 695 | 1,492 | |||||||||
Acquisition/Business Combination/Divestiture | 2,393 | — | |||||||||
Benefit payments | (357) | (312) | |||||||||
Expenses paid from assets | (40) | (36) | |||||||||
Settlements | — | (89) | |||||||||
Curtailment | (510) | — | |||||||||
Effect of foreign currency translation | 1,319 | (273) | |||||||||
Projected benefit obligation at end of year | $ | 21,615 | $ | 16,563 | |||||||
Change in plan assets | |||||||||||
Fair value of plan assets at beginning of year | $ | 5,487 | $ | 5,184 | |||||||
Actual return on plan assets | 213 | 198 | |||||||||
Settlements | — | (89) | |||||||||
Plan participant contributions | 124 | 113 | |||||||||
Acquisition/Business Combination/Divestiture | 99 | — | |||||||||
Employer contributions | 583 | 533 | |||||||||
Benefit payments | (357) | (312) | |||||||||
Expenses paid from assets | (40) | (36) | |||||||||
Effect of foreign currency translation | 556 | (104) | |||||||||
Fair value of plan assets at end of year | 6,665 | 5,487 | |||||||||
Unfunded status | $ | (14,950) | $ | (11,076) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Current liabilities | $ | (902) | $ | (635) | |||||||
Non-current liabilities | $ | (14,048) | $ | (10,441) | |||||||
AOCI | $ | 1,195 | $ | 470 | |||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Plans with accumulated benefit obligation in excess of plan assets: | |||||||||||
Accumulated benefit obligation | $ | 18,991 | $ | 15,465 | |||||||
Fair value of plan assets | $ | 6,665 | $ | 5,487 | |||||||
Plans with projected benefit obligation in excess of plan assets: | |||||||||||
Projected benefit obligation | $ | 21,615 | $ | 16,563 | |||||||
Fair value of plan assets | $ | 6,665 | $ | 5,487 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Service cost | $ | 1,136 | $ | 870 | $ | 888 | |||||||||||
Interest cost | 292 | 311 | 283 | ||||||||||||||
Expected return on plan assets | (178) | (157) | (150) | ||||||||||||||
Amortization of actuarial gains | (46) | (76) | (78) | ||||||||||||||
Settlement/(Curtailment) | (499) | 7 | — | ||||||||||||||
Net periodic benefit cost | $705 | $ | 955 | $ | 943 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Discount rate | 1.60 | % | 2.26 | % | |||||||
Expected return on plan assets | 3.00 | % | 3.00 | % | |||||||
Rate of compensation increase | 3.78 | % | 3.68 | % | |||||||
Social Security increase rate | 2.50 | % | 2.50 | % | |||||||
Pension increase rate | 1.80 | % | 1.80 | % | |||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Discount rate | 1.66 | % | 1.60 | % | |||||||
Rate of compensation increase | 5.18 | % | 3.77 | % | |||||||
Social Security increase rate | 2.50 | % | 2.50 | % | |||||||
Pension increase rate | 1.80 | % | 1.80 | % |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||
Fair value measurement of pension plan assets: | Level 1 | Level 2 | Level 3 | Total Assets | Level 1 | Level 2 | Level 3 | Total Assets | |||||||||||||||||||||
Insurance contract | $ | — | — | 6,665 | $ | 6,665 | $ | — | — | 5,487 | $ | 5,487 | |||||||||||||||||
2021 | $ | 1,005 | |||
2022 | 1,284 | ||||
2023 | 1,240 | ||||
2024 | 1,397 | ||||
2025 | 1,510 | ||||
2026 to 2030 | 6,985 | ||||
Total | $ | 13,421 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Type | Maturity |
Effective
Interest Rate |
Carrying
Value |
Effective
Interest Rate |
Carrying
Value |
|||||||||||||||||||||||||||
Senior Secured Notes (2026) | 2026 | 4.500 | % | $ | 700,000 | 4.500 | % | $ | 700,000 | |||||||||||||||||||||||
Term Loan Facility (2026) | 2026 | 3.626 | % | 2,847,400 | 5.049 | % | 900,000 | |||||||||||||||||||||||||
The Revolving Credit Facility | 2024 | — | % | — | 5.049 | % | 65,000 | |||||||||||||||||||||||||
Total debt outstanding | 3,547,400 | 1,665,000 | ||||||||||||||||||||||||||||||
Debt issuance costs | (51,309) | (25,205) | ||||||||||||||||||||||||||||||
Term Loan Facility, discount | (9,591) | (2,184) | ||||||||||||||||||||||||||||||
Short-term debt, including current portion of long-term debt | (28,600) | (9,000) | ||||||||||||||||||||||||||||||
Long-term debt, net of current portion and debt issuance costs | $ | 3,457,900 | $ | 1,628,611 |
Period |
Redemption Price
(as a percentage of principal) |
||||
2022 | 102.250 | % | |||
2023 | 101.125 | % | |||
2024 and thereafter | 100.000 | % |
2021 | $ | 28,600 | |||
2022 | 28,600 | ||||
2023 | 28,600 | ||||
2024 | 28,600 | ||||
2025 | 28,600 | ||||
Thereafter | 3,404,400 | ||||
Total maturities | 3,547,400 | ||||
Less: capitalized debt issuance costs and original issue discount | (60,900) | ||||
Total debt outstanding as of December 31, 2020 | $ | 3,486,500 |
Year ended December 31,
|
|||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Subscription revenues | $ | 867,731 | $ | 805,518 | $ | 794,097 | |||||||||||
Transactional revenues | 294,889 | 169,265 | 177,523 | ||||||||||||||
Re-occurring revenues | 114,528 | — | — | ||||||||||||||
Total revenues, gross | 1,277,148 | 974,783 | 971,620 | ||||||||||||||
Deferred revenues adjustment(1)
|
(23,101) | (438) | (3,152) | ||||||||||||||
Total revenues, net | $ | 1,254,047 | $ | 974,345 | $ | 968,468 | |||||||||||
(1) Reflects the deferred revenue adjustment as a result of purchase accounting.
|
Accounts receivable, net | Current portion of deferred revenues | Non-current portion of deferred revenues | |||||||||||||||
Opening (1/1/2020) | $ | 333,858 | $ | 407,325 | $ | 19,723 | |||||||||||
Closing (12/31/2020) | 737,733 | 707,318 | 41,399 | ||||||||||||||
(Increase)/decrease | $ | (403,875) | $ | (299,993) | $ | (21,676) | |||||||||||
Opening (1/1/2019) | $ | 331,295 | $ | 391,102 | $ | 17,112 | |||||||||||
Closing (12/31/2019) | 333,858 | 407,325 | 19,723 | ||||||||||||||
(Increase)/decrease | $ | (2,563) | $ | (16,223) | $ | (2,611) | |||||||||||
Opening (1/1/2018) | $ | 317,808 | $ | 361,260 | $ | 15,796 | |||||||||||
Closing (12/31/2018) | 331,295 | 391,102 | 17,112 | ||||||||||||||
(Increase)/decrease | $ | (13,487) | $ | (29,842) | $ | (1,316) |
Number of
Options |
Weighted
Average Exercise Price per Share |
Weighted-Average
Remaining Contractual Life (in years) |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Balance at December 31, 2019 | 20,880,225 | $ | 12.18 | 7.3 | $ | 105,119 | |||||||||||||||||
Granted | — | — | 0 | — | |||||||||||||||||||
Expired | (3,964) | 29.33 | 0 | — | |||||||||||||||||||
Forfeited | (972,781) | 12.07 | 0 | — | |||||||||||||||||||
Exercised | (12,042,862) | 11.67 | 0 | — | |||||||||||||||||||
Outstanding as of December 31, 2020 | 7,860,618 | $ | 12.95 | 6.2 | $ | 131,956 | |||||||||||||||||
Vested and exercisable at December 31, 2020 | 7,860,618 | $ | 12.95 | 6.2 | $ | 131,956 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Weighted-average expected dividend yield | — | — | — | % | |||||||||||||
Expected volatility |
34.05% - 39.43%
|
19.52% - 20.26%
|
21.00% - 23.05%
|
||||||||||||||
Weighted-average expected volatility | 34.79 % | 19.87 | % | 21.86 | % | ||||||||||||
Weighted-average risk-free interest rate | 0.14 % | 2.43 | % | 3.02 | % | ||||||||||||
Expected life (in years) | 1 | 7.3 | 8.5 |
Number of Shares | Weighted Average Grant Date Fair Value per Share | ||||||||||
Outstanding as of December 31, 2019 | 293,182 | $ | 16.75 | ||||||||
Granted | 1,918,288 | 22.12 | |||||||||
Vested | (289,641) | 17.17 | |||||||||
Forfeited | (111,283) | 21.19 | |||||||||
Outstanding as of December 31, 2020 | 1,810,546 | $ | 19.30 |
Number
of
Shares (1)
|
Weighted
Average Grant Date Fair Value per Share |
||||||||||
Outstanding as of December 31, 2019 | — | $ | — | ||||||||
Granted - Original PSUs | 582,217 | 22.51 | |||||||||
Granted - TSR PSUs | 291,108 | $ | 30.46 | ||||||||
Outstanding as of December 31, 2020 | 873,325 | $ | 25.16 |
Number of Shares | Weighted Average Fair Value per Share | |||||||||||||
Outstanding at December 31, 2018 | — | $ | — | |||||||||||
Merger Recapitalization | 18,300,000 | 3.51 | ||||||||||||
Exercise of Private Placement Warrants | — | — | ||||||||||||
Outstanding at December 31, 2019 | 18,300,000 | $ | 6.11 | |||||||||||
Exercise of Private Placement Warrants | (274,000) | 15.05 | ||||||||||||
Outstanding at December 31, 2020 | 18,026,000 | $ | 17.35 |
Year ended December 31, | |||||||||||||||||
2020 | |||||||||||||||||
(As Restated) | 2019 | 2018 | |||||||||||||||
Current | |||||||||||||||||
U.K. | $ | 1,315 | $ | 677 | $ | 1,014 | |||||||||||
U.S. Federal | 17,514 | 6,917 | 6,395 | ||||||||||||||
U.S. State | 2,861 | 988 | 2,146 | ||||||||||||||
Other | 15,847 | 9,959 | 11,061 | ||||||||||||||
Total current | 37,537 | 18,541 | 20,616 | ||||||||||||||
Deferred | |||||||||||||||||
U.K. | (15,860) | — | 85 | ||||||||||||||
U.S. Federal | (15,018) | (824) | (5,465) | ||||||||||||||
U.S. State | (1,014) | (223) | (227) | ||||||||||||||
Other | (7,947) | (7,293) | (9,360) | ||||||||||||||
Total deferred
|
(39,839) | (8,340) | (14,967) | ||||||||||||||
Total provision (benefit) for income taxes | $ | (2,302) | $ | 10,201 | $ | 5,649 | |||||||||||
|
|||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(As Restated) | 2018 | ||||||||||||||||||||||
U.K. loss | $ | (317,417) | $ | (246,688) | $ | (222,043) | |||||||||||||||||
U.S. income (loss) | (38,817) | 3,733 | (11,880) | ||||||||||||||||||||
Other loss | 42,063 | (5,477) | (2,590) | ||||||||||||||||||||
Pre-tax loss | $ | (314,171) | $ | (248,432) | $ | (236,513) |
Year ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
As Restated | 2018 | ||||||||||||||||||||||
Loss before tax: | $ | (314,171) | $ | (248,432) | $ | (236,513) | |||||||||||||||||
Income tax (benefit) provision | (2,302) | 10,201 | 5,649 | ||||||||||||||||||||
Statutory rate | 19.0 | % | 19.0 | % | 19.0 | % | |||||||||||||||||
Effect of different tax rates | 2.0 | % | (4.0) | % | (1.2) | % | |||||||||||||||||
BEAT | (2.1) | % | (0.9) | % | — | % | |||||||||||||||||
Valuation Allowances | (22.4) | % | (17.6) | % | (18.0) | % | |||||||||||||||||
Share-based compensation | 7.4 | % | (0.2) | % | (0.3) | % | |||||||||||||||||
Other permanent differences | (1.2) | % | (0.9) | % | (0.4) | % | |||||||||||||||||
Non-deductible transaction costs | (1.6) | % | (1.7) | % | — | % | |||||||||||||||||
Withholding tax | (0.2) | % | (0.5) | % | (0.2) | % | |||||||||||||||||
Tax indemnity | — | % | 3.0 | % | (2.7) | % | |||||||||||||||||
Sale of Subsidiary | — | % | — | % | 2.2 | % | |||||||||||||||||
Other | (0.2) | % | (0.2) | % | (0.8) | % | |||||||||||||||||
Effective rate | 0.7 | % | (4.1) | % | (2.4) | % |
Year ended December 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
As Originally Reported | Restatement Impact | As Restated | As Originally Reported | Restatement Impact | As Restated | ||||||||||||||||||
Accounts receivable | $ | 1,564 | $ | — | $ | 1,564 | $ | 1,346 | $ | — | $ | 1,346 | |||||||||||
Accrued expenses | 4,271 | — | 4,271 | 4,461 | — | 4,461 | |||||||||||||||||
Deferred revenue | 12,020 | — | 12,020 | 2,679 | — | 2,679 | |||||||||||||||||
Other assets | 11,230 | — | 11,230 | 5,721 | — | 5,721 | |||||||||||||||||
Unrealized gain/loss | 208 | — | 208 | 94 | — | 94 | |||||||||||||||||
Fixed assets, net | 6,298 | — | 6,298 | — | — | — | |||||||||||||||||
Debt issuance costs | 14,879 | — | 14,879 | 3,176 | — | 3,176 | |||||||||||||||||
Goodwill | 125,880 | — | 125,880 | — | — | — | |||||||||||||||||
Operating losses and tax attributes | 355,334 | 4,946 | 360,280 | 177,853 | 8,102 | 185,955 | |||||||||||||||||
Total deferred tax assets | 531,684 | 4,946 | 536,630 | 195,330 | 8,102 | 203,432 | |||||||||||||||||
Valuation allowances | (354,409) | (4,946) | (359,355) | (165,157) | (8,102) | (173,259) | |||||||||||||||||
Net deferred tax assets | 177,275 | — | 177,275 | 30,173 | — | 30,173 | |||||||||||||||||
Other identifiable intangible assets, net | (437,540) | — | (437,540) | (32,834) | — | (32,834) | |||||||||||||||||
Other liabilities | (72,210) | — | (72,210) | (21,012) | — | (21,012) | |||||||||||||||||
Goodwill | — | — | — | (4,233) | — | (4,233) | |||||||||||||||||
Fixed assets, net | — | — | — | (1,153) | — | (1,153) | |||||||||||||||||
Total deferred tax liabilities | (509,750) | — | (509,750) | (59,232) | — | (59,232) | |||||||||||||||||
Net deferred tax liabilities | $ | (332,475) | $ | — | $ | (332,475) | $ | (29,059) | $ | — | $ | (29,059) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Deferred tax asset | $ | 29,786 | $ | 19,488 | |||||||
Deferred tax liability | (362,261) | (48,547) | |||||||||
Net deferred tax liability | $ | (332,475) | $ | (29,059) |
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
As Originally Reported | Restatement Impact | As Restated | As Originally Reported | Restatement Impact | As Restated | 2018 | |||||||||||||||||||||||||||||||||||||||||
Beginning Balance, January 1 | $ | 165,157 | $ | 8,102 | $ | 173,259 | $ | 133,856 | $ | — | $ | 133,856 | $ | 92,944 | |||||||||||||||||||||||||||||||||
Change Charged to Expense/(Income) | 49,984 | (3,156) | 46,828 | 30,854 | 8,102 | 38,956 | 41,629 | ||||||||||||||||||||||||||||||||||||||||
Change Charged to CTA | 1,667 | — | 1,667 | 447 | — | 447 | 381 | ||||||||||||||||||||||||||||||||||||||||
Change Charged to OCI | — | — | — | — | — | — | (1,098) | ||||||||||||||||||||||||||||||||||||||||
Change Charged to Goodwill | 137,601 | — | 137,601 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Ending Balance, December 31 | $ | 354,409 | $ | 4,946 | $ | 359,355 | $ | 165,157 | $ | 8,102 | $ | 173,259 | $ | 133,856 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at the Beginning of the year | $ | 1,145 | $ | 1,450 | $ | 91 | |||||||||||
Increases for tax positions taken in prior years | 12,098 | — | 1,339 | ||||||||||||||
Increases for tax positions taken in the current year | 518 | 412 | 72 | ||||||||||||||
Decreases due to statute expirations | (40) | — | (52) | ||||||||||||||
Decrease due to payment | — | (717) | — | ||||||||||||||
Balance at the End of the year | $ | 13,721 | $ | 1,145 | $ | 1,450 |
Year ended December 31, | |||||||||||||||||
As Restated | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Basic/Diluted EPS | |||||||||||||||||
Income (loss) available to ordinary stockholders | $ | (311,869) | $ | (258,633) | $ | (242,162) | |||||||||||
Basic and diluted weighted-average number of ordinary shares outstanding | 428,600,690 | 273,883,342 | 217,472,870 | ||||||||||||||
Basic and diluted EPS | $ | (0.73) | $ | (0.94) | $ | (1.11) |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net gain on sale of business and other assets (1)
|
$ | 28,140 | $ | — | $ | 36,072 | |||||||||||
Tax indemnity asset (2)
|
— | — | (33,819) | ||||||||||||||
Net foreign exchange gain (loss) | 19,771 | (191) | 3,574 | ||||||||||||||
Miscellaneous income, net | 4,470 | 5,017 | 552 | ||||||||||||||
Other operating income, net | $ | 52,381 | $ | 4,826 | $ | 6,379 |
Year ended December 31,
|
|||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Science Segment | $ | 736,765 | $ | 547,542 | $ | 526,164 | |||||||||||
Intellectual Property Segment (1)
|
517,282 | 426,803 | 442,304 | ||||||||||||||
Total Revenues | $ | 1,254,047 | $ | 974,345 | $ | 968,468 |
As Restated | ||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Science Segment Adjusted EBITDA
|
$ | 344,000 | $ | 240,602 | $ | 227,709 | ||||||||||||||
Intellectual Property Segment Adjusted EBITDA
|
142,600 | 53,463 | 45,152 | |||||||||||||||||
Total Adjusted EBITDA
|
$ | 486,600 | $ | 294,065 | $ | 272,861 | ||||||||||||||
Benefit (provision) for income taxes
|
2,302 | (10,201) | (5,649) | |||||||||||||||||
Depreciation and amortization
|
(303,150) | (200,542) | (237,225) | |||||||||||||||||
Interest, net
|
(111,914) | (157,689) | (130,805) | |||||||||||||||||
Transition services agreement costs
|
(650) | (10,481) | (55,764) | |||||||||||||||||
Mark to market on financial instruments | (205,062) | (47,656) | — | |||||||||||||||||
Transition, transformation and integration expense
|
(3,440) | (24,372) | (69,185) | |||||||||||||||||
Deferred revenues adjustment
|
(23,101) | (438) | (3,152) | |||||||||||||||||
Transaction related costs
|
(97,499) | (46,214) | (2,457) | |||||||||||||||||
Share-based compensation expense
|
(41,650) | (51,383) | (13,715) | |||||||||||||||||
Gain on sale of assets1
|
28,140 | — | 36,072 | |||||||||||||||||
Tax indemnity asset
|
— | — | (33,819) | |||||||||||||||||
IPM adjusted operating margin
|
— | — | 5,897 | |||||||||||||||||
Restructuring
|
(47,595) | (15,670) | — | |||||||||||||||||
Legal Settlement
|
— | 39,399 | — | |||||||||||||||||
Impairment on assets held for sale
|
— | (18,431) | — | |||||||||||||||||
Other
|
5,150 | (9,020) | (5,221) | |||||||||||||||||
Net income attributable to Clarivate
|
$ | (311,869) | $ | (258,633) | $ | (242,162) |
Year ended December 31,
|
|||||||||||||||||
Revenue: | 2020 | 2019 | 2018 | ||||||||||||||
Americas | $ | 631,222 | $ | 463,041 | $ | 475,897 | |||||||||||
Europe/Middle East/Africa | 365,599 | 278,738 | 273,744 | ||||||||||||||
APAC | 280,327 | 233,004 | 221,979 | ||||||||||||||
Deferred revenues adjustment | (23,101) | (438) | (3,152) | ||||||||||||||
Total | $ | 1,254,047 | $ | 974,345 | $ | 968,468 |
Year ended December 31,
|
|||||||||||
Assets: | 2020 | 2019 | |||||||||
Americas | $ | 3,252,695 | $ | 992,469 | |||||||
Europe/Middle East/Africa | 11,245,248 | 2,099,777 | |||||||||
APAC | 699,401 | 101,113 | |||||||||
Total Assets | $ | 15,197,344 | $ | 3,193,359 |
Year ending December 31, | |||||
2021 | 58,061 | ||||
2022 | 36,018 | ||||
2023 | 26,144 | ||||
2024 | 24,367 | ||||
Thereafter
|
14,093 | ||||
Total | $ | 158,683 |
DRG Acquisition Integration | Severance and Related Benefit Costs |
Costs Associated with Exit and Disposal Costs (1)
|
Total | |||||||||||||||||
Reserve Balance as of December 31, 2019 | $ | — | $ | — | $ | — | ||||||||||||||
Expenses recorded | 5,133 | 1,464 | 6,597 | |||||||||||||||||
Payments made | (4,392) | (850) | (5,242) | |||||||||||||||||
Noncash items and other adjustments (2)
|
$ | — | $ | (374) | $ | (374) | ||||||||||||||
Reserve Balance as of December 31, 2020 | $ | 741 | $ | 240 | $ | 981 | ||||||||||||||
(1) Relates primary to lease exit costs and legal and advisory fees.
|
||||||||||||||||||||
(2) Relates to a write-off of prepaid rent resulting from restructuring activities.
|
Year ended December 31, 2020
|
||||||||||||||
Severance and related benefit costs | $ | 5,133 | ||||||||||||
Costs associated with exit and disposal activities (1)
|
487 | |||||||||||||
Costs associated with lease exit costs including impairment (2)
|
977 | |||||||||||||
Total | $ | 6,597 | ||||||||||||
(1) Relates primary to lease exit costs and legal and advisory fees.
|
||||||||||||||
(2) Includes $977 of lease exit costs.
|
CPA Global Acquisition Integration and Optimization Program | Severance and Related Benefit Costs |
Costs Associated with Exit and Disposal Costs (1)
|
Total | |||||||||||||||||
Reserve Balance as of December 31, 2019 | $ | — | $ | — | $ | — | ||||||||||||||
Expenses recorded | 10,173 | 4,179 | 14,352 | |||||||||||||||||
Payments made | (591) | (251) | (842) | |||||||||||||||||
Noncash items and other adjustments (2)
|
1,478 | (286) | 1,192 | |||||||||||||||||
Reserve Balance as of December 31, 2020 | $ | 11,060 | $ | 3,642 | $ | 14,702 | ||||||||||||||
(1) Relates primary to lease exit costs and legal and advisory fees.
|
||||||||||||||||||||
(2) Includes a $1,200 bonus accrual for severed employees and $278 immaterial noncash items, offset by a $286 lease impairment charge.
|
Year ended December 31, 2020
|
||||||||||||||
Severance and related benefit costs | $ | 10,173 | ||||||||||||
Costs associated with exit and disposal activities (1)
|
3,472 | |||||||||||||
Costs associated with lease exit costs including impairment (2)
|
707 | |||||||||||||
Total | $ | 14,352 | ||||||||||||
(1) Relates primary to lease exit costs and legal and advisory fees.
|
||||||||||||||
(2) Includes $286 of charges related to impairment of leases and $421 of lease exit costs.
|
||||||||||||||
(As Restated) | |||||||||||||||||||||||
2020 | |||||||||||||||||||||||
First
Quarter |
Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||
Revenues | $ | 240,592 | $ | 273,500 | $ | 284,360 | $ | 455,595 | |||||||||||||||
Income (loss) from operations | $ | (28,308) | $ | 14,246 | $ | (12,664) | $ | 29,531 | |||||||||||||||
Net income (loss) - (As Restated) | $ | (129,633) | $ | (25,281) | $ | (181,986) | $ | 25,031 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic - (As Restated) | $ | (0.38) | $ | (0.07) | $ | (0.47) | $ | 0.04 | |||||||||||||||
Diluted - (As Restated) | $ | (0.38) | $ | (0.07) | $ | (0.47) | $ | 0.01 | |||||||||||||||
(As Restated) | |||||||||||||||||||||||
2019 | |||||||||||||||||||||||
First
Quarter (2)
|
Second Quarter |
Third Quarter (1)
|
Fourth Quarter | ||||||||||||||||||||
Revenues | $ | 234,025 | $ | 242,309 | $ | 242,998 | $ | 255,013 | |||||||||||||||
Loss from operations | $ | (25,920) | $ | (36,581) | $ | (3,555) | $ | (16,431) | |||||||||||||||
Net loss - (As Restated) | $ | (59,260) | $ | (103,948) | $ | (11,005) | $ | (84,421) | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic - (As Restated) | $ | (0.27) | $ | (0.39) | $ | (0.04) | $ | (0.28) | |||||||||||||||
Diluted - (As Restated) | $ | (0.27) | $ | (0.39) | $ | (0.04) | $ | (0.28) | |||||||||||||||
(1) In September 2019, the Company settled a confidential claim that resulted in a gain of $39,399. The net gain was recorded in Legal settlement within the Interim Condensed Consolidated Statement of Operations during the three months ended September 30, 2019 and the year ended December 31, 2019.
(2) The first quarter of 2019 is as reported without any changes as a result of the restatement given the consummation of the Churchill transaction in May of 2019.
|
|||||||||||||||||||||||
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||||||||||||||
As Restated | ||||||||||||||||||||||||||||||||
As of September 30, 2020 | As of June 30, 2020 | As of March 31, 2020 | As of September 30, 2019 | As of June 30, 2019 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 601,075 | $ | 608,522 | $ | 308,021 | $ | 88,812 | $ | 43,063 | ||||||||||||||||||||||
Restricted cash | 567 | 2,010 | 2,850 | 9 | 9 | |||||||||||||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $9,744, $11,074, $15,072, $16,392, $17,192 at September 30, 2020, June 30, 2020, March 31, 2020, September 30, 2019 and June 30, 2019, respectively
|
238,638 | 279,160 | 343,177 | 226,997 | 270,584 | |||||||||||||||||||||||||||
Prepaid expenses | 49,240 | 51,440 | 52,101 | 34,927 | 39,238 | |||||||||||||||||||||||||||
Other current assets | 18,672 | 18,960 | 22,099 | 10,528 | 12,577 | |||||||||||||||||||||||||||
Assets held for sale | 36,059 | — | — | — | — | |||||||||||||||||||||||||||
Total current assets | 944,251 | 960,092 | 728,248 | 361,273 | 365,471 | |||||||||||||||||||||||||||
Computer hardware and other property, net | 23,618 | 24,324 | 22,953 | 20,185 | 18,490 | |||||||||||||||||||||||||||
Other intangible assets, net | 2,217,227 | 2,261,549 | 2,282,348 | 1,856,346 | 1,884,521 | |||||||||||||||||||||||||||
Goodwill | 1,818,354 | 1,824,258 | 1,823,084 | 1,281,504 | 1,282,842 | |||||||||||||||||||||||||||
Other non-current assets | 21,836 | 22,178 | 22,818 | 19,368 | 23,890 | |||||||||||||||||||||||||||
Deferred income taxes | 25,520 | 17,161 | 15,646 | 19,808 | 18,072 | |||||||||||||||||||||||||||
Operating lease right-of-use assets | 99,908 | 100,622 | 103,995 | 91,809 | 94,950 | |||||||||||||||||||||||||||
Total Assets | $ | 5,150,714 | $ | 5,210,184 | $ | 4,999,092 | $ | 3,650,293 | $ | 3,688,236 | ||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | $ | 19,898 | $ | 22,068 | $ | 28,583 | $ | 27,908 | $ | 30,396 | ||||||||||||||||||||||
Accrued expenses and other current liabilities | 253,341 | 228,474 | 239,661 | 162,303 | 126,843 | |||||||||||||||||||||||||||
Current portion of deferred revenues | 326,098 | 424,187 | 472,101 | 330,786 | 404,753 | |||||||||||||||||||||||||||
Current portion of operating lease liabilities | 25,691 | 24,067 | 25,375 | 23,953 | 24,980 | |||||||||||||||||||||||||||
Current portion of long-term debt | 12,600 | 12,600 | 12,600 | 15,345 | 15,345 | |||||||||||||||||||||||||||
Liabilities held for sale | 25,048 | — | — | — | — | |||||||||||||||||||||||||||
Total current liabilities | 662,676 | 711,396 | 778,320 | 560,295 | 602,317 | |||||||||||||||||||||||||||
Long-term debt | 1,910,993 | 1,913,214 | 1,915,452 | 1,305,364 | 1,307,919 | |||||||||||||||||||||||||||
Warrant liabilities | 335,988 | 191,235 | 167,445 | 112,179 | 90,343 | |||||||||||||||||||||||||||
Tax receivable agreement | — | — | — | 264,000 | 264,000 | |||||||||||||||||||||||||||
Non-current portion of deferred revenues | 24,080 | 19,116 | 18,774 | 21,299 | 22,236 | |||||||||||||||||||||||||||
Other non-current liabilities | 19,990 | 16,959 | 18,553 | 17,278 | 19,719 | |||||||||||||||||||||||||||
Deferred income taxes | 95,527 | 86,247 | 94,638 | 39,256 | 42,582 | |||||||||||||||||||||||||||
Operating lease liabilities | 79,147 | 80,663 | 80,229 | 69,694 | 72,171 | |||||||||||||||||||||||||||
Total liabilities | 3,128,401 | 3,018,830 | 3,073,411 | 2,389,365 | 2,421,287 | |||||||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at September 30, 2020, June 30, 2020, March 31, 2020, September 30, 2019 and June 30, 2019; 389,220,967, 387,335,119, 364,938,052, 306,050,763 and 305,268,497 shares issued and outstanding at September 30, 2020, June 30, 2020, March 31, 2020, September 30, 2019 and June 30, 2019, respectively
|
3,264,619 | 3,262,110 | 2,968,876 | 2,074,360 | 2,064,652 | |||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (5,193) | (15,629) | (13,349) | (6,959) | (2,235) | |||||||||||||||||||||||||||
Accumulated deficit | (1,237,113) | (1,055,127) | (1,029,846) | (806,473) | (795,469) | |||||||||||||||||||||||||||
Total shareholders' equity | 2,022,313 | 2,191,354 | 1,925,681 | 1,260,928 | 1,266,949 | |||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 5,150,714 | $ | 5,210,184 | $ | 4,999,092 | $ | 3,650,293 | $ | 3,688,236 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
As Restated | As Restated | As Restated | |||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | |||||||||||||||||||||||||
Revenues, net | $ | 284,360 | $ | 798,452 | $ | 273,500 | $ | 514,092 | $ | 240,592 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (93,554) | (268,614) | (92,379) | (175,060) | (82,682) | ||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (131,526) | (368,247) | (103,665) | (236,721) | (133,055) | ||||||||||||||||||||||||
Depreciation | (2,918) | (8,151) | (2,904) | (5,233) | (2,329) | ||||||||||||||||||||||||
Amortization | (65,696) | (168,049) | (53,241) | (102,353) | (49,112) | ||||||||||||||||||||||||
Restructuring and impairment | (3,192) | (26,792) | (15,846) | (23,600) | (7,754) | ||||||||||||||||||||||||
Other operating income, net | (138) | 14,675 | 8,781 | 14,813 | 6,032 | ||||||||||||||||||||||||
Total operating expenses | (297,024) | (825,178) | (259,254) | (528,154) | (268,900) | ||||||||||||||||||||||||
Loss from operations | (12,664) | (26,726) | 14,246 | (14,062) | (28,308) | ||||||||||||||||||||||||
Mark to market on financial instruments | (144,753) | (224,175) | (23,790) | (79,422) | (55,632) | ||||||||||||||||||||||||
Interest expense, net | (20,244) | (72,306) | (21,122) | (52,062) | (30,940) | ||||||||||||||||||||||||
Loss before income tax | (177,661) | (323,207) | (30,666) | (145,546) | (114,880) | ||||||||||||||||||||||||
Provision for income taxes | (4,325) | (13,693) | 5,385 | (9,368) | (14,753) | ||||||||||||||||||||||||
Net loss | $ | (181,986) | $ | (336,900) | $ | (25,281) | $ | (154,914) | $ | (129,633) | |||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.47) | $ | (0.91) | $ | (0.07) | $ | (0.43) | $ | (0.38) | |||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 387,845,438 | 369,019,802 | 375,877,260 | 359,503,556 | 343,129,833 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||
As Restated | As Restated | ||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||
Revenues, net | $ | 242,998 | $ | 719,332 | $ | 242,309 | $ | 476,334 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (89,158) | (266,666) | (88,287) | (177,508) | |||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (115,515) | (376,611) | (154,147) | (261,096) | |||||||||||||||||||
Depreciation | (2,281) | (6,463) | (2,131) | (4,182) | |||||||||||||||||||
Amortization | (41,656) | (138,694) | (40,932) | (97,038) | |||||||||||||||||||
Other operating income, net | 2,057 | 3,047 | 6,607 | 990 | |||||||||||||||||||
Total operating expenses | (246,553) | (785,387) | (278,890) | (538,834) | |||||||||||||||||||
Income (loss) from operations | (3,555) | (66,055) | (36,581) | (62,500) | |||||||||||||||||||
Mark to market on financial instruments | (21,836) | (48,022) | (26,187) | (26,187) | |||||||||||||||||||
Legal settlement | 39,399 | 39,399 | — | — | |||||||||||||||||||
Interest expense, net | (23,369) | (93,938) | (37,468) | (70,569) | |||||||||||||||||||
Loss before income tax | (9,361) | (168,616) | (100,236) | (159,256) | |||||||||||||||||||
Provision for income taxes | (1,644) | (5,596) | (3,712) | (3,952) | |||||||||||||||||||
Net loss | $ | (11,005) | $ | (174,212) | $ | (103,948) | $ | (163,208) | |||||||||||||||
Per share: | |||||||||||||||||||||||
Basic | $ | (0.04) | $ | (0.66) | $ | (0.39) | $ | (0.68) | |||||||||||||||
Diluted | $ | (0.04) | $ | (0.66) | $ | (0.39) | $ | (0.68) | |||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||
Basic | 305,428,062 | 262,894,388 | 264,762,720 | 241,275,061 | |||||||||||||||||||
Diluted | 328,854,063 | 262,894,388 | 264,762,720 | 241,275,061 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) | |||||||||||||||||||||||||||||
As Restated | As Restated | As Restated | |||||||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | |||||||||||||||||||||||||
Net loss | $ | (181,986) | $ | (336,900) | $ | (25,281) | $ | (154,914) | $ | (129,633) | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||
Interest rate swaps | 1,092 | (2,052) | (254) | (3,144) | (2,890) | ||||||||||||||||||||||||
Actuarial gain (loss) | (15) | (57) | 25 | (42) | (67) | ||||||||||||||||||||||||
Foreign currency translation adjustments | 9,359 | 1,795 | (2,051) | (7,564) | (5,513) | ||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 10,436 | (314) | (2,280) | (10,750) | (8,470) | ||||||||||||||||||||||||
Comprehensive loss | $ | (171,550) | $ | (337,214) | $ | (27,561) | $ | (165,664) | $ | (138,103) |
As Restated | As Restated | ||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||
Net loss | $ | (11,005) | $ | (174,212) | $ | (103,948) | $ | (163,208) | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Interest rate swaps | (1,061) | (6,852) | (3,845) | (5,791) | |||||||||||||||||||
Actuarial gain | 19 | 49 | 11 | 30 | |||||||||||||||||||
Foreign currency translation adjustments | (3,682) | (5,514) | (8) | (1,832) | |||||||||||||||||||
Total other comprehensive loss, net of tax | (4,724) | (12,317) | (3,842) | (7,593) | |||||||||||||||||||
Comprehensive loss | $ | (15,729) | $ | (186,529) | $ | (107,790) | $ | (170,801) |
Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||||||||||||
As Restated | As Restated | As Restated | |||||||||||||||
Nine Months Ended September 30, 2020 | Six Months Ended June 30, 2020 | Three Months Ended March 31, 2020 | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net Loss | $ | (336,900) | $ | (154,914) | $ | (129,633) | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 176,200 | 107,586 | 51,441 | ||||||||||||||
Bad debt expense | 1,830 | 787 | — | ||||||||||||||
Gain on sale of line of business | — | (395) | — | ||||||||||||||
Deferred income tax benefit | (7,420) | (6,641) | 4,214 | ||||||||||||||
Share-based compensation | 26,344 | 20,824 | 16,502 | ||||||||||||||
Restructuring and impairment | 4,880 | 4,771 | — | ||||||||||||||
Gain on foreign currency forward contracts | (2,903) | — | — | ||||||||||||||
Mark to market adjustment on contingent and phantom shares (1)
|
30,839 | 5,763 | 1,187 | ||||||||||||||
Mark to market adjustment on warrant shares (As Restated) | 224,175 | 79,422 | 55,632 | ||||||||||||||
Gain on disposal of business | (1,052) | — | — | ||||||||||||||
Deferred finance charges | 3,140 | 2,072 | 1,008 | ||||||||||||||
Other operating activities | (3,902) | (8,568) | (7,015) | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | 129,398 | 93,036 | 29,279 | ||||||||||||||
Prepaid expenses | (13,335) | (6,693) | (7,349) | ||||||||||||||
Other assets | 62,818 | 58,218 | 54,644 | ||||||||||||||
Accounts payable | (8,394) | (5,851) | 758 | ||||||||||||||
Accrued expenses and other current liabilities (1)
|
(65,062) | (21,142) | (13,222) | ||||||||||||||
Deferred revenues | (93,926) | (6,073) | 40,726 | ||||||||||||||
Operating lease right of use assets | 5,826 | 4,698 | 5,919 | ||||||||||||||
Operating lease liabilities | (6,611) | (5,439) | (5,876) | ||||||||||||||
Other liabilities | 2,077 | (53,899) | (52,109) | ||||||||||||||
Net cash provided by operating activities | 128,022 | 107,562 | 46,106 | ||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures | (78,597) | (52,651) | (19,395) | ||||||||||||||
Acquisitions, net of cash acquired | (885,323) | (885,323) | (885,323) | ||||||||||||||
Acquisition of intangible assets | (5,982) | (5,982) | — | ||||||||||||||
Proceeds from sale of product line, net of restricted cash | 3,751 | 3,751 | 3,751 | ||||||||||||||
Net cash used in investing activities | (966,151) | (940,205) | (900,967) | ||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Principal payments on term loan | (9,450) | (6,300) | (3,150) | ||||||||||||||
Repayments of revolving credit facility | (65,000) | (65,000) | (65,000) | ||||||||||||||
Payment of debt issuance costs | (5,267) | (5,267) | (5,014) | ||||||||||||||
Contingent purchase price payment | (4,115) | (4,115) | (4,115) | ||||||||||||||
Proceeds from issuance of debt | 360,000 | 360,000 | 360,000 | ||||||||||||||
Proceeds from issuance of ordinary shares | 843,752 | 843,766 | 540,597 |
Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||||||||||||
As Restated | As Restated | As Restated | |||||||||||||||
Nine Months Ended September 30, 2020 | Six Months Ended June 30, 2020 | Three Months Ended March 31, 2020 | |||||||||||||||
Proceeds from warrant exercises (As Restated) | 277,526 | 277,526 | 277,526 | ||||||||||||||
Proceeds from stock options exercised | 1,307 | 1,182 | 1,182 | ||||||||||||||
Payments related to tax withholding for stock-based compensation | (28,674) | (25,538) | (10,420) | ||||||||||||||
Net cash provided by (used in) financing activities | 1,370,079 | 1,376,254 | 1,091,606 | ||||||||||||||
Effects of exchange rates | (6,447) | (9,218) | (2,013) | ||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 525,503 | 534,393 | 234,732 | ||||||||||||||
Beginning of period: | |||||||||||||||||
Cash and cash equivalents | 76,130 | 76,130 | 76,130 | ||||||||||||||
Restricted cash | 9 | 9 | 9 | ||||||||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | 76,139 | 76,139 | 76,139 | ||||||||||||||
Cash and cash equivalents, and restricted cash, end of period | 601,642 | 610,532 | 310,871 | ||||||||||||||
End of period: | |||||||||||||||||
Cash and cash equivalents | 601,075 | 608,522 | 308,021 | ||||||||||||||
Restricted cash | 567 | 2,010 | 2,850 | ||||||||||||||
Total cash and cash equivalents, and restricted cash, end of period | $ | 601,642 | $ | 610,532 | $ | 310,871 | |||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
Cash paid for interest | $ | 61,796 | $ | 42,187 | $ | 11,405 | |||||||||||
Cash paid for income tax | $ | 20,147 | $ | 8,028 | $ | 4,797 | |||||||||||
Capital expenditures included in accounts payable | $ | 922 | $ | 1,819 | $ | 9,528 |
Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||||||
As Restated | As Restated | ||||||||||
Nine Months Ended September 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||
Net increase in cash and cash equivalents, and restricted cash | 63,237 | 17,488 | |||||||||
Beginning of period: | |||||||||||
Cash and cash equivalents | 25,575 | 25,575 | |||||||||
Restricted cash | 9 | 9 | |||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | 25,584 | 25,584 | |||||||||
Cash and cash equivalents, and restricted cash, end of period | 88,821 | 43,072 | |||||||||
End of period: | |||||||||||
Cash and cash equivalents | 88,812 | 43,063 | |||||||||
Restricted cash | 9 | 9 | |||||||||
Total cash and cash equivalents, and restricted cash, end of period | $ | 88,821 | $ | 43,072 | |||||||
Supplemental Cash Flow Information | |||||||||||
Cash paid for interest | $ | 69,711 | $ | 57,551 | |||||||
Cash paid for income tax | $ | 21,128 | $ | 14,573 | |||||||
Capital expenditures included in accounts payable | $ | 9,759 | $ | 7,697 | |||||||
Tax receivable agreement included in liabilities | $ | 264,000 | $ | 264,000 | |||||||
Assets received as reverse recapitalization capital | $ | 1,877 | $ | 1,877 | |||||||
Liabilities assumed as reduction of reverse recapitalization capital | $ | 5,910 | $ | 5,910 |
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||||||||
As Originally Reported | Restatement Impacts | Restatement Reference | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 601,075 | $ | — | $ | 601,075 | ||||||||||||||||||||
Restricted cash | 567 | — | 567 | |||||||||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $9,744 at September 30, 2020
|
238,638 | — | 238,638 | |||||||||||||||||||||||
Prepaid expenses | 49,240 | — | 49,240 | |||||||||||||||||||||||
Other current assets | 18,672 | — | 18,672 | |||||||||||||||||||||||
Assets held for sale | 36,059 | — | 36,059 | |||||||||||||||||||||||
Total current assets | 944,251 | — | 944,251 | |||||||||||||||||||||||
Computer hardware and other property, net | 23,618 | — | 23,618 | |||||||||||||||||||||||
Other intangible assets, net | 2,217,227 | — | 2,217,227 | |||||||||||||||||||||||
Goodwill | 1,818,354 | — | 1,818,354 | |||||||||||||||||||||||
Other non-current assets | 21,836 | — | 21,836 | |||||||||||||||||||||||
Deferred income taxes | 25,520 | — | 25,520 | |||||||||||||||||||||||
Operating lease right-of-use assets | 99,908 | — | 99,908 | |||||||||||||||||||||||
Total Assets | $ | 5,150,714 | $ | — | $ | 5,150,714 | ||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | $ | 19,898 | $ | — | $ | 19,898 | ||||||||||||||||||||
Accrued expenses and other current liabilities | 253,341 | — | 253,341 | |||||||||||||||||||||||
Current portion of deferred revenues | 326,098 | — | 326,098 | |||||||||||||||||||||||
Current portion of operating lease liabilities | 25,691 | — | 25,691 | |||||||||||||||||||||||
Current portion of long-term debt | 12,600 | — | 12,600 | |||||||||||||||||||||||
Liabilities held for sale | 25,048 | — | 25,048 | |||||||||||||||||||||||
Total current liabilities | 662,676 | — | 662,676 | |||||||||||||||||||||||
Long-term debt | 1,910,993 | — | 1,910,993 | |||||||||||||||||||||||
Warrant liabilities | — | 335,988 | (a) | 335,988 | ||||||||||||||||||||||
Non-current portion of deferred revenues | 24,080 | — | 24,080 | |||||||||||||||||||||||
Other non-current liabilities | 19,990 | — | 19,990 | |||||||||||||||||||||||
Deferred income taxes | 95,527 | — | 95,527 | |||||||||||||||||||||||
Operating lease liabilities | 79,147 | — | 79,147 | |||||||||||||||||||||||
Total liabilities | 2,792,413 | 335,988 | 3,128,401 | |||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at September 30, 2020; 389,220,967 shares issued and outstanding at September 30, 2020
|
3,328,776 | (64,157) | (a) | 3,264,619 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (5,193) | — | (5,193) | |||||||||||||||||||||||
Accumulated deficit | (965,282) | (271,831) | (a) | (1,237,113) | ||||||||||||||||||||||
Total shareholders' equity | 2,358,301 | (335,988) | 2,022,313 | |||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 5,150,714 | $ | — | $ | 5,150,714 |
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||||||||
As of June 30, 2020 | ||||||||||||||||||||||||||
As Originally Reported | Restatement Impacts | Restatement Reference | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 608,522 | $ | — | $ | 608,522 | ||||||||||||||||||||
Restricted cash | 2,010 | — | 2,010 | |||||||||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $11,074 at June 30, 2020
|
279,160 | — | 279,160 | |||||||||||||||||||||||
Prepaid expenses | 51,440 | — | 51,440 | |||||||||||||||||||||||
Other current assets | 18,960 | — | 18,960 | |||||||||||||||||||||||
Assets held for sale | — | — | — | |||||||||||||||||||||||
Total current assets | 960,092 | — | 960,092 | |||||||||||||||||||||||
Computer hardware and other property, net | 24,324 | — | 24,324 | |||||||||||||||||||||||
Other intangible assets, net | 2,261,549 | — | 2,261,549 | |||||||||||||||||||||||
Goodwill | 1,824,258 | — | 1,824,258 | |||||||||||||||||||||||
Other non-current assets | 22,178 | — | 22,178 | |||||||||||||||||||||||
Deferred income taxes | 17,161 | — | 17,161 | |||||||||||||||||||||||
Operating lease right-of-use assets | 100,622 | — | 100,622 | |||||||||||||||||||||||
Total Assets | $ | 5,210,184 | $ | — | $ | 5,210,184 | ||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | $ | 22,068 | $ | — | $ | 22,068 | ||||||||||||||||||||
Accrued expenses and other current liabilities | 228,474 | — | 228,474 | |||||||||||||||||||||||
Current portion of deferred revenues | 424,187 | — | 424,187 | |||||||||||||||||||||||
Current portion of operating lease liabilities | 24,067 | — | 24,067 | |||||||||||||||||||||||
Current portion of long-term debt | 12,600 | — | 12,600 | |||||||||||||||||||||||
Liabilities held for sale | — | — | — | |||||||||||||||||||||||
Total current liabilities | 711,396 | — | 711,396 | |||||||||||||||||||||||
Long-term debt | 1,913,214 | — | 1,913,214 | |||||||||||||||||||||||
Warrant liabilities | — | 191,235 | (a) | 191,235 | ||||||||||||||||||||||
Non-current portion of deferred revenues | 19,116 | — | 19,116 | |||||||||||||||||||||||
Other non-current liabilities | 16,959 | — | 16,959 | |||||||||||||||||||||||
Deferred income taxes | 86,247 | — | 86,247 | |||||||||||||||||||||||
Operating lease liabilities | 80,663 | — | 80,663 | |||||||||||||||||||||||
Total liabilities | 2,827,595 | 191,235 | 3,018,830 | |||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at June 30, 2020; 387,335,119 shares issued and outstanding at June 30, 2020, respectively;
|
3,326,267 | (64,157) | (a) | 3,262,110 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (15,629) | — | (15,629) | |||||||||||||||||||||||
Accumulated deficit | (928,049) | (127,078) | (a) | (1,055,127) | ||||||||||||||||||||||
Total shareholders' equity | 2,382,589 | (191,235) | 2,191,354 | |||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 5,210,184 | $ | — | $ | 5,210,184 |
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||||||||
As of March 31, 2020 | ||||||||||||||||||||||||||
As Originally Reported | Restatement Impacts | Restatement Reference | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 308,021 | $ | — | $ | 308,021 | ||||||||||||||||||||
Restricted cash | 2,850 | — | 2,850 | |||||||||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $15,072 at March 31, 2020
|
343,177 | — | 343,177 | |||||||||||||||||||||||
Prepaid expenses | 52,101 | — | 52,101 | |||||||||||||||||||||||
Other current assets | 22,099 | — | 22,099 | |||||||||||||||||||||||
Assets held for sale | — | — | — | |||||||||||||||||||||||
Total current assets | 728,248 | — | 728,248 | |||||||||||||||||||||||
Computer hardware and other property, net | 22,953 | — | 22,953 | |||||||||||||||||||||||
Other intangible assets, net | 2,282,348 | — | 2,282,348 | |||||||||||||||||||||||
Goodwill | 1,823,084 | — | 1,823,084 | |||||||||||||||||||||||
Other non-current assets | 22,818 | — | 22,818 | |||||||||||||||||||||||
Deferred income taxes | 15,646 | — | 15,646 | |||||||||||||||||||||||
Operating lease right-of-use assets | 103,995 | — | 103,995 | |||||||||||||||||||||||
Total Assets | $ | 4,999,092 | $ | — | $ | 4,999,092 | ||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | $ | 28,583 | $ | — | $ | 28,583 | ||||||||||||||||||||
Accrued expenses and other current liabilities | 239,661 | — | 239,661 | |||||||||||||||||||||||
Current portion of deferred revenues | 472,101 | — | 472,101 | |||||||||||||||||||||||
Current portion of operating lease liabilities | 25,375 | — | 25,375 | |||||||||||||||||||||||
Current portion of long-term debt | 12,600 | — | 12,600 | |||||||||||||||||||||||
Liabilities held for sale | — | — | — | |||||||||||||||||||||||
Total current liabilities | 778,320 | — | 778,320 | |||||||||||||||||||||||
Long-term debt | 1,915,452 | — | 1,915,452 | |||||||||||||||||||||||
Warrant liabilities | — | 167,445 | (a) | 167,445 | ||||||||||||||||||||||
Non-current portion of deferred revenues | 18,774 | — | 18,774 | |||||||||||||||||||||||
Other non-current liabilities | 18,553 | — | 18,553 | |||||||||||||||||||||||
Deferred income taxes | 94,638 | — | 94,638 | |||||||||||||||||||||||
Operating lease liabilities | 80,229 | — | 80,229 | |||||||||||||||||||||||
Total liabilities | 2,905,966 | 167,445 | 3,073,411 | |||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at March 31, 2020; 364,938,052 shares issued and outstanding at March 31, 2020
|
3,033,033 | (64,157) | (a) | 2,968,876 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (13,349) | — | (13,349) | |||||||||||||||||||||||
Accumulated deficit | (926,558) | (103,288) | (a) | (1,029,846) | ||||||||||||||||||||||
Total shareholders' equity | 2,093,126 | (167,445) | 1,925,681 | |||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 4,999,092 | $ | — | $ | 4,999,092 |
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||||||||
As of September 30, 2019 | ||||||||||||||||||||||||||
As Originally Reported | Restatement Impacts | Restatement Reference | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 88,812 | $ | — | $ | 88,812 | ||||||||||||||||||||
Restricted cash | 9 | — | 9 | |||||||||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $16,392 at September 30, 2019
|
226,997 | — | 226,997 | |||||||||||||||||||||||
Prepaid expenses | 34,927 | — | 34,927 | |||||||||||||||||||||||
Other current assets | 10,528 | — | 10,528 | |||||||||||||||||||||||
Total current assets | 361,273 | — | 361,273 | |||||||||||||||||||||||
Computer hardware and other property, net | 20,185 | — | 20,185 | |||||||||||||||||||||||
Other intangible assets, net | 1,856,346 | — | 1,856,346 | |||||||||||||||||||||||
Goodwill | 1,281,504 | — | 1,281,504 | |||||||||||||||||||||||
Other non-current assets | 19,368 | — | 19,368 | |||||||||||||||||||||||
Deferred income taxes | 19,808 | — | 19,808 | |||||||||||||||||||||||
Operating lease right-of-use assets | 91,809 | — | 91,809 | |||||||||||||||||||||||
Total Assets | $ | 3,650,293 | $ | — | $ | 3,650,293 | ||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | $ | 27,908 | $ | — | $ | 27,908 | ||||||||||||||||||||
Accrued expenses and other current liabilities | 162,303 | — | 162,303 | |||||||||||||||||||||||
Current portion of deferred revenues | 330,786 | — | 330,786 | |||||||||||||||||||||||
Current portion of operating lease liabilities | 23,953 | — | 23,953 | |||||||||||||||||||||||
Current portion of long-term debt | 15,345 | — | 15,345 | |||||||||||||||||||||||
Total current liabilities | 560,295 | — | 560,295 | |||||||||||||||||||||||
Long-term debt | 1,305,364 | — | 1,305,364 | |||||||||||||||||||||||
Tax receivable agreement | 264,000 | — | 264,000 | |||||||||||||||||||||||
Warrant liabilities | — | 112,179 | (a) | 112,179 | ||||||||||||||||||||||
Non-current portion of deferred revenues | 21,299 | — | 21,299 | |||||||||||||||||||||||
Other non-current liabilities | 17,278 | — | 17,278 | |||||||||||||||||||||||
Deferred income taxes | 39,256 | — | 39,256 | |||||||||||||||||||||||
Operating lease liabilities | 69,694 | — | 69,694 | |||||||||||||||||||||||
Total liabilities | 2,277,186 | 112,179 | 2,389,365 | |||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at September 30, 2019; 306,050,763 shares issued and outstanding at September 30, 2019
|
2,138,517 | (64,157) | (a) | 2,074,360 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (6,959) | — | (6,959) | |||||||||||||||||||||||
Accumulated deficit | (758,451) | (48,022) | (a) | (806,473) | ||||||||||||||||||||||
Total shareholders' equity | 1,373,107 | (112,179) | 1,260,928 | |||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 3,650,293 | $ | — | $ | 3,650,293 |
Condensed Consolidated Balance Sheets (unaudited) | ||||||||||||||||||||||||||
As of June 30, 2019 | ||||||||||||||||||||||||||
As Originally Reported | Restatement Impacts | Restatement Reference | As Restated | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 43,063 | $ | — | $ | 43,063 | ||||||||||||||||||||
Restricted cash | 9 | — | 9 | |||||||||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of $17,192 at June 30, 2019
|
270,584 | — | 270,584 | |||||||||||||||||||||||
Prepaid expenses | 39,238 | — | 39,238 | |||||||||||||||||||||||
Other current assets | 12,577 | — | 12,577 | |||||||||||||||||||||||
Total current assets | 365,471 | — | 365,471 | |||||||||||||||||||||||
Computer hardware and other property, net | 18,490 | — | 18,490 | |||||||||||||||||||||||
Other intangible assets, net | 1,884,521 | — | 1,884,521 | |||||||||||||||||||||||
Goodwill | 1,282,842 | — | 1,282,842 | |||||||||||||||||||||||
Other non-current assets | 23,890 | — | 23,890 | |||||||||||||||||||||||
Deferred income taxes | 18,072 | — | 18,072 | |||||||||||||||||||||||
Operating lease right-of-use assets | 94,950 | — | 94,950 | |||||||||||||||||||||||
Total Assets | $ | 3,688,236 | $ | — | $ | 3,688,236 | ||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Accounts payable | $ | 30,396 | $ | — | $ | 30,396 | ||||||||||||||||||||
Accrued expenses and other current liabilities | 126,843 | — | 126,843 | |||||||||||||||||||||||
Current portion of deferred revenues | 404,753 | — | 404,753 | |||||||||||||||||||||||
Current portion of operating lease liabilities | 24,980 | — | 24,980 | |||||||||||||||||||||||
Current portion of long-term debt | 15,345 | — | 15,345 | |||||||||||||||||||||||
Total current liabilities | 602,317 | — | 602,317 | |||||||||||||||||||||||
Long-term debt | 1,307,919 | — | 1,307,919 | |||||||||||||||||||||||
Tax receivable agreement | 264,000 | — | 264,000 | |||||||||||||||||||||||
Warrant liabilities | — | 90,343 | (a) | 90,343 | ||||||||||||||||||||||
Non-current portion of deferred revenues | 22,236 | — | 22,236 | |||||||||||||||||||||||
Other non-current liabilities | 19,719 | — | 19,719 | |||||||||||||||||||||||
Deferred income taxes | 42,582 | — | 42,582 | |||||||||||||||||||||||
Operating lease liabilities | 72,171 | — | 72,171 | |||||||||||||||||||||||
Total liabilities | 2,330,944 | 90,343 | 2,421,287 | |||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at June 30, 2019; 305,268,497 shares issued and outstanding at June 30, 2019
|
2,128,809 | (64,157) | (a) | 2,064,652 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (2,235) | — | (2,235) | |||||||||||||||||||||||
Accumulated deficit | (769,282) | (26,187) | (a) | (795,469) | ||||||||||||||||||||||
Total shareholders' equity | 1,357,292 | (90,343) | 1,266,949 | |||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 3,688,236 | $ | — | $ | 3,688,236 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 798,452 | $ | — | $ | — | $ | 798,452 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (265,063) | (3,551) | — | (268,614) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (266,749) | (101,498) | — | (368,247) | |||||||||||||||||||||||||
Share-based compensation expense | (31,121) | 31,121 | — | — | |||||||||||||||||||||||||
Depreciation | (8,151) | — | — | (8,151) | |||||||||||||||||||||||||
Amortization | (168,049) | — | — | (168,049) | |||||||||||||||||||||||||
Transaction expenses | (70,154) | 70,154 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (3,774) | 3,774 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (26,792) | — | — | (26,792) | |||||||||||||||||||||||||
Other operating income, net | 14,675 | — | — | 14,675 | |||||||||||||||||||||||||
Total operating expenses | (825,178) | — | — | (825,178) | |||||||||||||||||||||||||
Loss from operations | (26,726) | — | — | (26,726) | |||||||||||||||||||||||||
Mark to market adjustment on financial instruments | — | — | (224,175) | (b) | (224,175) | ||||||||||||||||||||||||
Interest expense, net | (72,306) | — | — | (72,306) | |||||||||||||||||||||||||
Loss before income tax | (99,032) | — | (224,175) | (b) | (323,207) | ||||||||||||||||||||||||
Provision for income taxes | (13,693) | — | — | (13,693) | |||||||||||||||||||||||||
Net (loss) | $ | (112,725) | $ | — | $ | (224,175) | (b) | $ | (336,900) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.31) | $ | (0.61) | $ | (0.91) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 369,019,802 | 369,019,802 | 369,019,802 | ||||||||||||||||||||||||||
(a) Reclassifications - The reclassifications are needed to conform to the current financial statement line items on the Condensed Consolidated Statements of Operations.
(b) Mark to market adjustment on financial instruments - The correction of these misstatements resulted in an adjustment of $(224,175) that was recorded through the Statement of Operations, increasing the Net (loss).
|
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 284,360 | $ | — | $ | — | $ | 284,360 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (91,805) | (1,749) | — | (93,554) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (91,319) | (40,207) | — | (131,526) | |||||||||||||||||||||||||
Share-based compensation expense | (6,796) | 6,796 | — | — | |||||||||||||||||||||||||
Depreciation | (2,918) | — | — | (2,918) | |||||||||||||||||||||||||
Amortization | (65,696) | — | — | (65,696) | |||||||||||||||||||||||||
Transaction expenses | (34,938) | 34,938 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (222) | 222 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (3,192) | — | — | (3,192) | |||||||||||||||||||||||||
Other operating income, net | (138) | — | — | (138) | |||||||||||||||||||||||||
Total operating expenses | (297,024) | — | — | (297,024) | |||||||||||||||||||||||||
Loss from operations | (12,664) | — | — | (12,664) | |||||||||||||||||||||||||
Mark to market adjustment on financial instruments | — | — | (144,753) | (b) | (144,753) | ||||||||||||||||||||||||
Interest expense, net | (20,244) | — | — | (20,244) | |||||||||||||||||||||||||
Loss before income tax | (32,908) | — | (144,753) | (b) | (177,661) | ||||||||||||||||||||||||
Provision for income taxes | (4,325) | — | — | (4,325) | |||||||||||||||||||||||||
Net (loss) | $ | (37,233) | $ | — | $ | (144,753) | (b) | $ | (181,986) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.10) | $ | (0.37) | $ | (0.47) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 387,845,438 | 387,845,438 | 387,845,438 | ||||||||||||||||||||||||||
(a) Reclassifications - The reclassifications are needed to conform to the current financial statement line items on the Condensed Consolidated Statements of Operations.
(b) Mark to market adjustment on financial instruments - The correction of these misstatements resulted in an adjustment of $(144,753) that was recorded through the Statement of Operations, increasing the Net loss.
|
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 514,092 | $ | — | $ | — | $ | 514,092 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (173,258) | (1,802) | — | (175,060) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (175,430) | (61,291) | — | (236,721) | |||||||||||||||||||||||||
Share-based compensation expense | (24,325) | 24,325 | — | — | |||||||||||||||||||||||||
Depreciation | (5,233) | — | — | (5,233) | |||||||||||||||||||||||||
Amortization | (102,353) | — | — | (102,353) | |||||||||||||||||||||||||
Transaction expenses | (35,216) | 35,216 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (3,552) | 3,552 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (23,600) | — | — | (23,600) | |||||||||||||||||||||||||
Other operating income, net | 14,813 | — | — | 14,813 | |||||||||||||||||||||||||
Total operating expenses | (528,154) | — | — | (528,154) | |||||||||||||||||||||||||
Loss from operations | (14,062) | — | — | (14,062) | |||||||||||||||||||||||||
Mark to market on financial instruments | — | (79,422) | (b) | (79,422) | |||||||||||||||||||||||||
Interest expense, net | (52,062) | — | — | (52,062) | |||||||||||||||||||||||||
Loss before income tax | (66,124) | — | (79,422) | (b) | (145,546) | ||||||||||||||||||||||||
Provision for income taxes | (9,368) | — | — | (9,368) | |||||||||||||||||||||||||
Net loss | $ | (75,492) | $ | — | $ | (79,422) | (b) | $ | (154,914) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.21) | $ | (0.22) | $ | (0.43) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 359,503,556 | 359,503,556 | 359,503,556 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 273,500 | $ | — | $ | — | $ | 273,500 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (90,859) | (1,520) | — | (92,379) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (88,482) | (15,183) | — | (103,665) | |||||||||||||||||||||||||
Share-based compensation expense | (6,856) | 6,856 | — | — | |||||||||||||||||||||||||
Depreciation | (2,904) | — | — | (2,904) | |||||||||||||||||||||||||
Amortization | (53,241) | — | — | (53,241) | |||||||||||||||||||||||||
Transaction expenses | (8,527) | 8,527 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (1,320) | 1,320 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (15,846) | — | — | (15,846) | |||||||||||||||||||||||||
Other operating income, net | 8,781 | — | — | 8,781 | |||||||||||||||||||||||||
Total operating expenses | (259,254) | — | — | (259,254) | |||||||||||||||||||||||||
Income (loss) from operations | 14,246 | — | — | 14,246 | |||||||||||||||||||||||||
Mark to market on financial instruments | — | — | (23,790) | (b) | (23,790) | ||||||||||||||||||||||||
Interest expense, net | (21,122) | — | — | (21,122) | |||||||||||||||||||||||||
Loss before income tax | (6,876) | — | (23,790) | (b) | (30,666) | ||||||||||||||||||||||||
Provision for income taxes | 5,385 | — | — | 5,385 | |||||||||||||||||||||||||
Net loss | $ | (1,491) | $ | — | $ | (23,790) | (b) | $ | (25,281) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | — | $ | (0.06) | $ | (0.07) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 375,877,260 | 375,877,260 | 375,877,260 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 240,592 | $ | — | $ | — | $ | 240,592 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (82,399) | (283) | — | (82,682) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (86,948) | (46,107) | — | (133,055) | |||||||||||||||||||||||||
Share-based compensation expense | (17,469) | 17,469 | — | — | |||||||||||||||||||||||||
Depreciation | (2,329) | — | (2,329) | ||||||||||||||||||||||||||
Amortization | (49,112) | — | (49,112) | ||||||||||||||||||||||||||
Transaction expenses | (26,689) | 26,689 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (2,232) | 2,232 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (7,754) | — | (7,754) | ||||||||||||||||||||||||||
Other operating income, net | 6,032 | — | 6,032 | ||||||||||||||||||||||||||
Total operating expenses | (268,900) | — | — | (268,900) | |||||||||||||||||||||||||
Loss from operations | (28,308) | — | — | (28,308) | |||||||||||||||||||||||||
Mark to market on financial instruments | — | — | (55,632) | (b) | (55,632) | ||||||||||||||||||||||||
Interest expense, net | (30,940) | — | — | (30,940) | |||||||||||||||||||||||||
Loss before income tax | (59,248) | — | (55,632) | (b) | (114,880) | ||||||||||||||||||||||||
Provision for income taxes | (14,753) | — | — | (14,753) | |||||||||||||||||||||||||
Net loss | $ | (74,001) | $ | — | $ | (55,632) | (b) | $ | (129,633) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.22) | $ | (0.16) | $ | (0.38) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 343,129,833 | 343,129,833 | 343,129,833 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 719,332 | $ | — | $ | — | $ | 719,332 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (264,013) | (2,653) | — | (266,666) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (280,766) | (95,845) | — | (376,611) | |||||||||||||||||||||||||
Share-based compensation expense | (46,675) | 46,675 | — | — | |||||||||||||||||||||||||
Depreciation | (6,463) | — | — | (6,463) | |||||||||||||||||||||||||
Amortization | (138,694) | — | — | (138,694) | |||||||||||||||||||||||||
Transaction expenses | (42,073) | 42,073 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (9,750) | 9,750 | — | — | |||||||||||||||||||||||||
Legal settlement | 39,399 | (39,399) | — | — | |||||||||||||||||||||||||
Other operating income, net | 3,047 | — | — | 3,047 | |||||||||||||||||||||||||
Total operating expenses | (745,988) | (39,399) | — | (785,387) | |||||||||||||||||||||||||
Loss from operations | (26,656) | (39,399) | — | (66,055) | |||||||||||||||||||||||||
Mark to market on financial instruments | — | — | (48,022) | (b) | (48,022) | ||||||||||||||||||||||||
Legal settlement | — | 39,399 | — | 39,399 | |||||||||||||||||||||||||
Interest expense, net | (93,938) | — | — | (93,938) | |||||||||||||||||||||||||
Loss before income tax | (120,594) | — | (48,022) | (b) | (168,616) | ||||||||||||||||||||||||
Provision for income taxes | (5,596) | — | — | (5,596) | |||||||||||||||||||||||||
Net (loss) | $ | (126,190) | $ | — | $ | (48,022) | (b) | $ | (174,212) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.48) | $ | (0.18) | $ | (0.66) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 262,894,388 | 262,894,388 | 262,894,388 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 242,998 | $ | — | $ | — | $ | 242,998 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (87,117) | (2,041) | — | (89,158) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (96,017) | (19,498) | — | (115,515) | |||||||||||||||||||||||||
Share-based compensation expense | (9,567) | 9,567 | — | — | |||||||||||||||||||||||||
Depreciation | (2,281) | — | — | (2,281) | |||||||||||||||||||||||||
Amortization | (41,656) | — | — | (41,656) | |||||||||||||||||||||||||
Transaction expenses | (8,645) | 8,645 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (3,327) | 3,327 | — | — | |||||||||||||||||||||||||
Legal settlement | 39,399 | (39,399) | — | — | |||||||||||||||||||||||||
Other operating income (expense), net | 2,057 | — | — | 2,057 | |||||||||||||||||||||||||
Total operating expenses | (207,154) | (39,399) | — | (246,553) | |||||||||||||||||||||||||
Income (loss) from operations | 35,844 | (39,399) | — | (3,555) | |||||||||||||||||||||||||
Mark to market adjustment on financial instruments | — | — | (21,836) | (b) | (21,836) | ||||||||||||||||||||||||
Legal settlement | — | 39,399 | — | 39,399 | |||||||||||||||||||||||||
Interest expense, net | (23,369) | — | — | (23,369) | |||||||||||||||||||||||||
Income (loss) before income tax | 12,475 | — | (21,836) | (b) | (9,361) | ||||||||||||||||||||||||
Provision for income taxes | (1,644) | — | — | (1,644) | |||||||||||||||||||||||||
Net income (loss) | $ | 10,831 | $ | — | $ | (21,836) | (b) | $ | (11,005) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.04 | $ | (0.07) | $ | (0.04) | |||||||||||||||||||||||
Diluted | $ | 0.03 | $ | (0.07) | $ | (0.04) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic | 305,428,062 | 305,428,062 | 305,428,062 | ||||||||||||||||||||||||||
Diluted | 328,854,063 | 328,854,063 | 328,854,063 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 476,334 | $ | — | $ | — | $ | 476,334 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (176,896) | (612) | — | (177,508) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (184,749) | (76,347) | — | (261,096) | |||||||||||||||||||||||||
Share-based compensation expense | (37,108) | 37,108 | — | — | |||||||||||||||||||||||||
Depreciation | (4,182) | — | — | (4,182) | |||||||||||||||||||||||||
Amortization | (97,038) | — | — | (97,038) | |||||||||||||||||||||||||
Transaction expenses | (33,428) | 33,428 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (6,423) | 6,423 | — | — | |||||||||||||||||||||||||
Other operating income, net | 990 | — | — | 990 | |||||||||||||||||||||||||
Total operating expenses | (538,834) | — | — | (538,834) | |||||||||||||||||||||||||
Loss from operations | (62,500) | — | — | (62,500) | |||||||||||||||||||||||||
Mark to market adjustment on financial instruments | — | — | (26,187) | (b) | (26,187) | ||||||||||||||||||||||||
Interest expense, net | (70,569) | — | — | (70,569) | |||||||||||||||||||||||||
Loss before income tax | (133,069) | — | (26,187) | (b) | (159,256) | ||||||||||||||||||||||||
Provision for income taxes | (3,952) | — | — | (3,952) | |||||||||||||||||||||||||
Net loss | $ | (137,021) | $ | — | $ | (26,187) | (b) | $ | (163,208) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.57) | $ | (0.11) | $ | (0.68) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 241,275,061 | 241,275,061 | 241,275,061 |
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 242,309 | $ | — | $ | — | $ | 242,309 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues, excluding depreciation and amortization | (87,629) | (658) | — | (88,287) | |||||||||||||||||||||||||
Selling, general and administrative costs, excluding depreciation and amortization | (92,453) | (61,694) | — | (154,147) | |||||||||||||||||||||||||
Share-based compensation expense | (33,932) | 33,932 | — | — | |||||||||||||||||||||||||
Depreciation | (2,131) | — | — | (2,131) | |||||||||||||||||||||||||
Amortization | (40,932) | — | — | (40,932) | |||||||||||||||||||||||||
Transaction expenses | (23,158) | 23,158 | — | — | |||||||||||||||||||||||||
Transition, integration, and other related expenses | (5,262) | 5,262 | — | — | |||||||||||||||||||||||||
Other operating income, net | 6,607 | — | — | 6,607 | |||||||||||||||||||||||||
Total operating expenses | (278,890) | — | — | (278,890) | |||||||||||||||||||||||||
Income (loss) from operations | (36,581) | — | — | (36,581) | |||||||||||||||||||||||||
Mark to market adjustment on financial instruments | — | — | (26,187) | (b) | (26,187) | ||||||||||||||||||||||||
Interest expense, net | (37,468) | — | — | (37,468) | |||||||||||||||||||||||||
Loss before income tax | (74,049) | — | (26,187) | (b) | (100,236) | ||||||||||||||||||||||||
Provision for income taxes | (3,712) | — | — | (3,712) | |||||||||||||||||||||||||
Net loss | $ | (77,761) | $ | — | $ | (26,187) | (b) | $ | (103,948) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.29) | $ | (0.10) | $ | (0.39) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 264,762,720 | 264,762,720 | 264,762,720 |
Condensed Consolidated Statements of Changes in Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Restated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital |
Accumulated
Other Comprehensive Income (Loss) |
Accumulated
Deficit |
Total
Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restatement Reference | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018, as originally reported | 1,646,223 | $ | 1,677,510 | $ | 5,358 | $ | (632,261) | $ | 1,050,607 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of units of share capital | 215,880,202 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018, as recasted | 217,526,425 | 1,677,510 | 5,358 | (632,261) | 1,050,607 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 3,176 | — | — | 3,176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (59,260) | (59,260) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (3,751) | — | (3,751) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 217,526,427 | 1,680,686 | 1,607 | (691,521) | 990,772 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares subject to redemption (As Restated) | (a) | — | (64,157) | — | — | (64,157) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Receivable Agreement | — | (264,000) | — | — | (264,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary stock, net | (7,929) | 137 | — | — | 137 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger recapitalization | 87,749,999 | 678,054 | — | — | 678,054 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 33,932 | — | — | 33,932 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (103,948) | (103,948) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (3,842) | — | (3,842) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 (As Restated) | (a) (b) | 305,268,497 | 2,064,652 | (2,235) | (795,469) | 1,266,949 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1,254,662 | 141 | — | — | 141 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (472,396) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 9,567 | — | — | 9,567 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (As Restated) | (b) | — | — | — | (11,005) | (11,005) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (4,724) | — | (4,724) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 (As Restated) | (a) (b) | 306,050,763 | 2,074,360 | (6,959) | (806,473) | 1,260,928 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of Tax Receivable Agreement | — | 64,000 | — | — | 64,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary stock, net | 823,352 | 1,304 | — | — | 1,304 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 4,708 | — | — | 4,708 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (84,421) | (84,421) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 2,080 | — | 2,080 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 (As Restated) | (a) (b) | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 (As Restated) | (b) | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to opening Accumulated deficit related to adoption of ASC Topic 326 | — | — | — | (9,319) | (9,319) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of public warrants | 28,880,098 | 277,526 | — | — | 277,526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 3,715,455 | 1,182 | — | — | 1,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 169,842 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,301,458) | (10,302) | — | — | (10,302) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 27,600,000 | 539,714 | — | — | 539,714 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 16,384 | — | — | 16,384 |
Condensed Consolidated Statements of Changes in Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Restated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital |
Accumulated
Other Comprehensive Income (Loss) |
Accumulated
Deficit |
Total
Shareholders’ Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restatement Reference | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (129,633) | (129,633) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (8,470) | — | (8,470) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 (As Restated) | (a) (b) | 364,938,052 | 2,968,876 | (13,349) | (1,029,846) | 1,925,681 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 3,723,332 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 2,528 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,311,293) | (15,118) | — | — | (15,118) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 20,982,500 | 304,030 | — | — | 304,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 4,322 | — | — | 4,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (25,281) | (25,281) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (2,280) | — | (2,280) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 (As Restated) | (a) (b) | 387,335,119 | 3,262,110 | (15,629) | (1,055,127) | 2,191,354 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 4,068,307 | 125 | — | — | 125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 2,459 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,184,918) | (3,136) | — | — | (3,136) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 5,520 | — | — | 5,520 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (181,986) | (181,986) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 10,436 | — | 10,436 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 (As Restated) | (a) (b) | 389,220,967 | 3,264,619 | (5,193) | (1,237,113) | 2,022,313 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of Private Placement Warrants (As Restated) | (a) | 274,000 | 4,124 | — | — | 4,124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 535,768 | 815 | — | — | 815 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 114,812 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (499,727) | (4,500) | — | — | (4,500) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 216,683,778 | 6,715,030 | — | — | 6,715,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 9,196 | — | — | 9,196 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | 25,031 | 25,031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 508,714 | — | 508,714 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 (As Restated) | (a) (b) | 606,329,598 | $ | 9,989,284 | $ | 503,521 | $ | (1,212,082) | $ | 9,280,723 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
a) Warrant liabilities—The correction of these misstatements resulted in an increase to warrant share liabilities, a decrease to ordinary shares, an increase to ordinary shares upon exercise, and an increase to accumulated deficit. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b) Mark to market adjustment on financial instruments - The correction of these misstatements resulted in an adjustment that was recorded through the Statement of Operations. The change reflects a mark to market adjustment as a result of the restatement. |
Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As Originally Reported |
Restatement Impacts (1)
|
As Restated | As Originally Reported | Restatement Impacts | As Restated | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 257,730 | $ | — | $ | 257,730 | $ | 76,130 | $ | — | $ | 76,130 | |||||||||||||||||||||||
Restricted cash | 11,278 | — | 11,278 | 9 | — | 9 | |||||||||||||||||||||||||||||
Accounts receivable, net of allowance of $8,745 and $16,511 at December 31, 2020 and December 31, 2019, respectively
|
751,446 | (13,713) | 737,733 | 333,858 | — | 333,858 | |||||||||||||||||||||||||||||
Prepaid expenses(2)
|
58,770 | (497) | 58,273 | 40,710 | — | 40,710 | |||||||||||||||||||||||||||||
Other current assets | 248,781 | 13,713 | 262,494 | 11,750 | — | 11,750 | |||||||||||||||||||||||||||||
Assets held for sale | — | — | — | 30,619 | — | 30,619 | |||||||||||||||||||||||||||||
Total current assets | 1,328,005 | (497) | 1,327,508 | 493,076 | — | 493,076 | |||||||||||||||||||||||||||||
Property and equipment, net | 36,267 | — | 36,267 | 18,042 | — | 18,042 | |||||||||||||||||||||||||||||
Other intangible assets, net | 7,370,350 | — | 7,370,350 | 1,828,640 | — | 1,828,640 | |||||||||||||||||||||||||||||
Goodwill | 6,252,636 | — | 6,252,636 | 1,328,045 | — | 1,328,045 | |||||||||||||||||||||||||||||
Other non-current assets | 47,944 | — | 47,944 | 18,632 | — | 18,632 | |||||||||||||||||||||||||||||
Deferred income taxes | 29,786 | — | 29,786 | 19,488 | — | 19,488 | |||||||||||||||||||||||||||||
Operating lease right-of-use assets | 132,356 | — | 132,356 | 85,448 | — | 85,448 | |||||||||||||||||||||||||||||
Total Assets | $ | 15,197,344 | $ | (497) | $ | 15,196,847 | $ | 3,791,371 | $ | — | $ | 3,791,371 | |||||||||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||||
Accounts payable | $ | 82,038 | $ | — | $ | 82,038 | $ | 26,458 | $ | — | $ | 26,458 | |||||||||||||||||||||||
Accrued expenses and other current liabilities | 716,356 | — | 716,356 | 159,217 | — | 159,217 | |||||||||||||||||||||||||||||
Current portion of deferred revenues | 707,318 | — | 707,318 | 407,325 | — | 407,325 | |||||||||||||||||||||||||||||
Current portion of long-term debt | 28,600 | — | 28,600 | 9,000 | — | 9,000 | |||||||||||||||||||||||||||||
Current portion of operating lease liability | 35,455 | — | 35,455 | 22,130 | — | 22,130 | |||||||||||||||||||||||||||||
Liabilities held for sale | — | — | — | 26,868 | — | 26,868 | |||||||||||||||||||||||||||||
Total current liabilities | 1,569,767 | — | 1,569,767 | 650,998 | — | 650,998 | |||||||||||||||||||||||||||||
Long-term debt | 3,457,900 | — | 3,457,900 | 1,628,611 | — | 1,628,611 | |||||||||||||||||||||||||||||
Warrant liabilities(2)
|
— | 312,751 | 312,751 | — | 111,813 | 111,813 | |||||||||||||||||||||||||||||
Non-current portion of deferred revenues | 41,399 | — | 41,399 | 19,723 | — | 19,723 | |||||||||||||||||||||||||||||
Other non-current liabilities | 67,722 | — | 67,722 | 18,891 | — | 18,891 | |||||||||||||||||||||||||||||
Deferred income taxes | 362,261 | — | 362,261 | 48,547 | — | 48,547 | |||||||||||||||||||||||||||||
Operating lease liabilities | 104,324 | — | 104,324 | 64,189 | — | 64,189 | |||||||||||||||||||||||||||||
Total liabilities | 5,603,373 | 312,751 | 5,916,124 | 2,430,959 | 111,813 | 2,542,772 | |||||||||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||||||
Shareholders’ equity: | |||||||||||||||||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at December 31, 2020 and December 31, 2019; 606,329,598 and 306,874,115 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively(2)
|
10,049,317 | (60,033) | 9,989,284 | 2,208,529 | (64,157) | 2,144,372 | |||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 503,521 | — | 503,521 | (4,879) | — | (4,879) | |||||||||||||||||||||||||||||
Accumulated deficit(2)
|
(958,867) | (253,215) | (1,212,082) | (843,238) | (47,656) | (890,894) | |||||||||||||||||||||||||||||
Total shareholders’ equity | 9,593,971 | (313,248) | 9,280,723 | 1,360,412 | (111,813) | 1,248,599 | |||||||||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 15,197,344 | $ | (497) | $ | 15,196,847 | $ | 3,791,371 | $ | — | $ | 3,791,371 |
Consolidated Statements of Operations | |||||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As Originally Reported |
Restatement Impacts (1)
|
As Restated | As Originally Reported | Restatement Impacts | As Restated | ||||||||||||||||||||||||||||||
Revenues, net | $ | 1,254,047 | $ | — | $ | 1,254,047 | $ | 974,345 | $ | — | $ | 974,345 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenues | (399,122) | (30,175) | (429,297) | (352,000) | — | (352,000) | |||||||||||||||||||||||||||||
Selling, general and administrative costs | (553,756) | 30,175 | (523,581) | (475,014) | — | (475,014) | |||||||||||||||||||||||||||||
Depreciation | (12,709) | — | (12,709) | (9,181) | — | (9,181) | |||||||||||||||||||||||||||||
Amortization | (290,441) | — | (290,441) | (191,361) | — | (191,361) | |||||||||||||||||||||||||||||
Impairment on assets held for sale | — | — | — | (18,431) | — | (18,431) | |||||||||||||||||||||||||||||
Restructuring and impairment | (47,595) | — | (47,595) | (15,670) | — | (15,670) | |||||||||||||||||||||||||||||
Other operating income, net | 52,381 | — | 52,381 | 4,826 | — | 4,826 | |||||||||||||||||||||||||||||
Total operating expenses | (1,251,242) | — | (1,251,242) | (1,056,831) | — | (1,056,831) | |||||||||||||||||||||||||||||
Income (loss) from operations | 2,805 | — | 2,805 | (82,486) | — | (82,486) | |||||||||||||||||||||||||||||
Mark to market adjustment on financial instruments(2)
|
— | (205,062) | (205,062) | — | (47,656) | (47,656) | |||||||||||||||||||||||||||||
Legal settlement | — | — | — | 39,399 | — | 39,399 | |||||||||||||||||||||||||||||
Income (loss) before interest expense and income tax(2)
|
2,805 | (205,062) | (202,257) | (43,087) | (47,656) | (90,743) | |||||||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (111,914) | — | (111,914) | (157,689) | — | (157,689) | |||||||||||||||||||||||||||||
Loss before income tax(2)
|
(109,109) | (205,062) | (314,171) | (200,776) | (47,656) | (248,432) | |||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 2,799 | (497) | 2,302 | (10,201) | — | (10,201) | |||||||||||||||||||||||||||||
Net loss(2)
|
$ | (106,310) | $ | (205,559) | $ | (311,869) | $ | (210,977) | $ | (47,656) | $ | (258,633) | |||||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||||||||
Basic and diluted | $ | (0.25) | $ | (0.48) | $ | (0.73) | $ | (0.77) | $ | (0.17) | $ | (0.94) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||||||||
Basic and diluted | 428,600,690 | 428,600,690 | 428,600,690 | 273,883,342 | 273,883,342 | 273,883,342 |
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | As Originally Reported | Restatement Impacts | As Restated | ||||||||||||||||||||||||||||||
Net loss(b)
|
$ | (106,310) | $ | (205,559) | $ | (311,869) | $ | (210,977) | $ | (47,656) | $ | (258,633) | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||||
Interest rate swaps, net of $0 tax in all periods | (978) | — | (978) | (6,422) | — | (6,422) | |||||||||||||||||||||||||||||
Defined benefit pension plans, net of tax (benefit) provision of $(65), $683 and $(91), respectively | (659) | — | (659) | (1,041) | — | (1,041) | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | 510,037 | — | 510,037 | (2,774) | — | (2,774) | |||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 508,400 | — | 508,400 | (10,237) | — | (10,237) | |||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 402,090 | $ | (205,559) | $ | 196,531 | $ | (221,214) | $ | (47,656) | $ | (268,870) |
Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||||||||||
As Restated | ||||||||||||||||||||||||||||||||
Share Capital |
Accumulated
Other Comprehensive Income (Loss) |
Accumulated
Deficit |
Total
Shareholders’ Equity |
|||||||||||||||||||||||||||||
Restatement Reference | Shares | Amount | ||||||||||||||||||||||||||||||
Balance at December 31, 2017 as originally reported | 1,644,720 | $ | 1,662,221 | $ | 13,984 | $ | (390,099) | $ | 1,286,106 | |||||||||||||||||||||||
Conversion of units of share capital | 215,683,103 | — | — | — | — | |||||||||||||||||||||||||||
Balance at December 31, 2017, as recasted | 217,327,823 | 1,662,221 | 13,984 | (390,099) | 1,286,106 | |||||||||||||||||||||||||||
Issuance of ordinary shares, net | 198,602 | 1,574 | — | — | 1,574 | |||||||||||||||||||||||||||
Share-based award activity | — | 13,715 | — | — | 13,715 | |||||||||||||||||||||||||||
Net loss | — | — | — | (242,162) | (242,162) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (8,626) | — | (8,626) | |||||||||||||||||||||||||||
Balance at December 31, 2018 | 217,526,425 | $ | 1,677,510 | $ | 5,358 | $ | (632,261) | $ | 1,050,607 | |||||||||||||||||||||||
Balance at December 31, 2018, as originally reported | 1,646,223 | $ | 1,677,510 | $ | 5,358 | $ | (632,261) | $ | 1,050,607 | |||||||||||||||||||||||
Conversion of units of share capital | 215,880,202 | — | — | — | — | |||||||||||||||||||||||||||
Balance at December 31, 2018, as recasted | 217,526,425 | 1,677,510 | 5,358 | (632,261) | 1,050,607 | |||||||||||||||||||||||||||
Tax Receivable Agreement | — | (264,000) | — | — | (264,000) | |||||||||||||||||||||||||||
Settlement of Tax Receivable Agreement | — | 64,000 | — | — | 64,000 | |||||||||||||||||||||||||||
Shares subject to redemption (As Restated) | (a) | — | (64,157) | — | — | (64,157) | ||||||||||||||||||||||||||
Issuance of ordinary shares, net | 1,597,691 | 1,582 | — | — | 1,582 | |||||||||||||||||||||||||||
Merger recapitalization | 87,749,999 | 678,054 | — | — | 678,054 | |||||||||||||||||||||||||||
Share-based award activity | — | 51,383 | — | — | 51,383 | |||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (258,633) | (258,633) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (10,237) | — | (10,237) | |||||||||||||||||||||||||||
Balance at December 31, 2019 (As Restated) | (a) (b) | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | ||||||||||||||||||||||
Balance at December 31, 2019 (As Restated) | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | |||||||||||||||||||||||
Adjustment to opening Accumulated deficit related to adoption of ASC Topic 326 | — | — | — | (9,319) | (9,319) | |||||||||||||||||||||||||||
Exercise of public warrants | 28,880,098 | 277,526 | — | — | 277,526 | |||||||||||||||||||||||||||
Exercise of Private Placement Warrants (As Restated) | (a) | 274,000 | 4,124 | — | — | 4,124 | ||||||||||||||||||||||||||
Exercise of stock options | 12,042,862 | 2,122 | — | — | 2,122 | |||||||||||||||||||||||||||
Vesting of restricted stock units | 289,641 | — | — | — | — | |||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (7,297,396) | (33,056) | — | — | (33,056) | |||||||||||||||||||||||||||
Issuance of ordinary shares, net | 265,266,278 | 7,558,774 | — | — | 7,558,774 | |||||||||||||||||||||||||||
Share-based award activity | — | 35,422 | — | — | 35,422 | |||||||||||||||||||||||||||
Net loss (As Restated) | (b) | — | — | — | (311,869) | (311,869) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 508,400 | — | 508,400 | |||||||||||||||||||||||||||
Balance at December 31, 2020 (As Restated) | (a) (b) | 606,329,598 | $ | 9,989,284 | $ | 503,521 | $ | (1,212,082) | $ | 9,280,723 | ||||||||||||||||||||||
a) Warrant liabilities—The correction of these misstatements resulted in an increase to warrant share liabilities, a decrease to ordinary shares, an increase to ordinary shares upon exercise, and a decrease to accumulated deficit. | ||||||||||||||||||||||||||||||||
b) Mark to market adjustment on financial instruments - The correction of these misstatements resulted in an adjustment that was recorded through the Statement of Operations. The change reflects a mark to market adjustment as a result of the restatement. |
Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As Originally Reported |
Restatement Impacts (1)
|
As Restated | As Originally Reported | Restatement Impacts | As Restated | ||||||||||||||||||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||||||||||||||||||||
Net loss(2)
|
$ | (106,310) | $ | (205,559) | $ | (311,869) | $ | (210,977) | $ | (47,656) | $ | (258,633) | |||||||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 303,150 | — | 303,150 | 200,542 | — | 200,542 | |||||||||||||||||||||||||||||
Bad debt expense | 3,332 | — | 3,332 | 1,331 | — | 1,331 | |||||||||||||||||||||||||||||
Deferred income tax benefit | (45,105) | — | (45,105) | 357 | — | 357 | |||||||||||||||||||||||||||||
Share-based compensation | 35,422 | — | 35,422 | 51,383 | — | 51,383 | |||||||||||||||||||||||||||||
Restructuring and impairment | 5,288 | — | 5,288 | — | — | — | |||||||||||||||||||||||||||||
Gain on foreign currency forward contracts | (2,903) | — | (2,903) | — | — | — | |||||||||||||||||||||||||||||
Mark to market adjustment on contingent and phantom shares | 24,218 | — | 24,218 | — | — | — | |||||||||||||||||||||||||||||
Mark to market adjustment on financial instruments (As Restated)(2)
|
— | 205,062 | 205,062 | — | 47,656 | 47,656 | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 50,676 | — | 50,676 | |||||||||||||||||||||||||||||
Gain on disposal of business | (29,192) | — | (29,192) | — | — | — | |||||||||||||||||||||||||||||
Impairment on assets held for sale | — | — | — | 18,431 | — | 18,431 | |||||||||||||||||||||||||||||
Deferred finance charges | 5,752 | — | 5,752 | 2,496 | — | 2,496 | |||||||||||||||||||||||||||||
Tax indemnity write-off | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other operating activities | 2,611 | — | 2,611 | (374) | — | (374) | |||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||
Accounts receivable (1)
|
16,234 | 13,713 | 29,947 | (593) | — | (593) | |||||||||||||||||||||||||||||
Prepaid expenses | 5,245 | 497 | 5,742 | (10,224) | — | (10,224) | |||||||||||||||||||||||||||||
Other assets (1)
|
56,771 | (13,713) | 43,058 | (975) | — | (975) | |||||||||||||||||||||||||||||
Accounts payable | (2,851) | — | (2,851) | (13,838) | — | (13,838) | |||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | (90,568) | — | (90,568) | 1,095 | — | 1,095 | |||||||||||||||||||||||||||||
Deferred revenues | 80,683 | — | 80,683 | 33,480 | — | 33,480 | |||||||||||||||||||||||||||||
Operating lease right of use assets | 5,329 | — | 5,329 | 11,365 | — | 11,365 | |||||||||||||||||||||||||||||
Operating lease liabilities | (6,064) | — | (6,064) | (11,251) | — | (11,251) | |||||||||||||||||||||||||||||
Other liabilities | 2,458 | — | 2,458 | (5,344) | — | (5,344) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | 263,500 | — | 263,500 | 117,580 | — | 117,580 | |||||||||||||||||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||||||||||||||||||||
Capital expenditures | (107,713) | — | (107,713) | (69,836) | — | (69,836) | |||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (2,919,871) | — | (2,919,871) | (68,424) | — | (68,424) | |||||||||||||||||||||||||||||
Acquisition of intangible assets | (5,982) | — | (5,982) | (2,625) | — | (2,625) | |||||||||||||||||||||||||||||
Proceeds from sale of product line, net of restricted cash | 41,398 | — | 41,398 | — | — | — | |||||||||||||||||||||||||||||
Net cash used in investing activities | (2,992,168) | — | (2,992,168) | (140,885) | — | (140,885) | |||||||||||||||||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||||||||||||||||||||
Proceeds from revolving credit facility | 60,000 | — | 60,000 | 70,000 | — | 70,000 | |||||||||||||||||||||||||||||
Principal payments on term loan | (12,600) | — | (12,600) | (641,509) | — | (641,509) | |||||||||||||||||||||||||||||
Repayments of revolving credit facility | (125,000) | — | (125,000) | (50,000) | — | (50,000) | |||||||||||||||||||||||||||||
Payment of debt issuance costs | (38,340) | — | (38,340) | (41,923) | — | (41,923) |
Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
As Originally Reported |
Restatement Impacts (1)
|
As Restated | As Originally Reported | Restatement Impacts | As Restated | ||||||||||||||||||||||||||||||
Contingent purchase price payment | (7,816) | — | (7,816) | (2,371) | — | (2,371) | |||||||||||||||||||||||||||||
Proceeds from reverse recapitalization | — | — | — | 682,087 | — | 682,087 | |||||||||||||||||||||||||||||
Proceeds from issuance of debt | 1,960,000 | — | 1,960,000 | 1,600,000 | — | 1,600,000 | |||||||||||||||||||||||||||||
Extinguishment of debt | — | — | — | (1,342,651) | — | (1,342,651) | |||||||||||||||||||||||||||||
Tax receivable agreement payout | — | — | — | (200,000) | — | (200,000) | |||||||||||||||||||||||||||||
Proceeds from issuance of ordinary shares | 843,744 | — | 843,744 | — | — | — | |||||||||||||||||||||||||||||
Proceeds from warrant exercises | 277,526 | — | 277,526 | — | — | — | |||||||||||||||||||||||||||||
Proceeds from stock options exercised | 2,122 | — | 2,122 | 1,582 | — | 1,582 | |||||||||||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | (33,056) | — | (33,056) | — | — | — | |||||||||||||||||||||||||||||
Net cash provided by financing activities | 2,926,580 | — | 2,926,580 | 75,215 | — | 75,215 | |||||||||||||||||||||||||||||
Effects of exchange rates | (5,043) | — | (5,043) | (971) | — | (971) | |||||||||||||||||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 192,869 | — | 192,869 | 50,939 | — | 50,939 | |||||||||||||||||||||||||||||
Beginning of period: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 76,130 | — | 76,130 | 25,575 | — | 25,575 | |||||||||||||||||||||||||||||
Restricted cash | 9 | — | 9 | 9 | — | 9 | |||||||||||||||||||||||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | 76,139 | — | 76,139 | 25,584 | — | 25,584 | |||||||||||||||||||||||||||||
Less: Cash included in assets held for sale, end of period | — | — | — | (384) | — | (384) | |||||||||||||||||||||||||||||
Cash and cash equivalents, and restricted cash, end of period | 269,008 | — | 269,008 | 76,139 | — | 76,139 | |||||||||||||||||||||||||||||
End of period: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 257,730 | — | 257,730 | 76,130 | — | 76,130 | |||||||||||||||||||||||||||||
Restricted cash | 11,278 | — | 11,278 | 9 | — | 9 | |||||||||||||||||||||||||||||
Total cash and cash equivalents, and restricted cash, end of period | $ | 269,008 | $ | — | $ | 269,008 | $ | 76,139 | $ | — | $ | 76,139 | |||||||||||||||||||||||
Supplemental Cash Flow Information | |||||||||||||||||||||||||||||||||||
Cash paid for interest | $ | 97,510 | $ | — | $ | 97,510 | $ | 101,164 | $ | — | $ | 101,164 | |||||||||||||||||||||||
Cash paid for income tax | $ | 27,621 | $ | — | $ | 27,621 | $ | 29,204 | $ | — | $ | 29,204 | |||||||||||||||||||||||
Capital expenditures included in accounts payable | $ | 7,783 | $ | — | $ | 7,783 | $ | 8,762 | $ | — | $ | 8,762 | |||||||||||||||||||||||
Assets received as reverse recapitalization capital | $ | — | $ | — | $ | — | $ | 1,877 | $ | — | $ | 1,877 | |||||||||||||||||||||||
Liabilities assumed as reduction of reverse recapitalization capital | $ | — | $ | — | $ | — | $ | 5,910 | $ | — | $ | 5,910 |
2.1 | |||||
2.2 | |||||
3.1 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
4.4 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 |
|
||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
10.8 | |||||
10.9 | |||||
10.10+ |
|
||||
10.11+ |
10.12+ | |||||
10.13+ | |||||
10.14+ | |||||
10.15+ | |||||
10.16+ | |||||
21.1** | |||||
23.1* | |||||
24.1* | |||||
31* | |||||
32* | |||||
101* | The following information from our Form 10-K for the fiscal year ended December 31, 2020, formatted in Inline eXtensible Business Reporting Language: (i) Consolidated Statement of Comprehensive Income, (ii) Consolidated Balance Sheet, (iii) Consolidated Statement of Changes in Equity, (iv) Consolidated Statement of Cash Flows, and (v) the Notes to the Consolidated Financial Statements. | ||||
104* | The cover page from the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, formatted in Inline XBRL |
CLARIVATE PLC | |||||
By: | /s/ Jerre Stead | ||||
Name: Jerre Stead | |||||
Title: Executive Chairman and Chief Executive Officer |
Name | Title | |||||||
/s/ Jerre Stead | Executive Chairman and Chief Executive Officer | |||||||
Jerre Stead | (Principal Executive Officer) | |||||||
/s/ Richard Hanks | Chief Financial Officer | |||||||
Richard Hanks | (Principal Financial Officer) | |||||||
/s/ Christie Archbold | Chief Accounting Officer | |||||||
Christie Archbold | (Principal Accounting Officer) | |||||||
/s/ Valeria Alberola | Director | |||||||
Valeria Alberola | ||||||||
/s/ Sheryl von Blucher | Director | |||||||
Sheryl von Blucher | ||||||||
/s/ Kosty Gilis | Director | |||||||
Kosty Gilis | ||||||||
/s/ Usama N Cortas | Director | |||||||
Usama N Cortas | ||||||||
/s/ Balakrishnan S. Iyer | Director | |||||||
Balakrishnan S. Iyer | ||||||||
/s/ Adam T. Levyn | Director | |||||||
Adam T. Levyn | ||||||||
/s/ Nicholas Macksey | Director | |||||||
Nicholas Macksey | ||||||||
/s/ Anthony Munk | Director | |||||||
Anthony Munk | ||||||||
/s/ Charles J. Neral | Director | |||||||
Charles J. Neral | ||||||||
/s/ Jane Okun Bomba | Director | |||||||
Jane Okun Bomba | ||||||||
/s/ Richard W. Roedel | Director | |||||||
Richard W. Roedel | ||||||||
/s/ Roxane White | Director | |||||||
Roxane White |
Date: May 10, 2021 | /s/ Jerre Stead | ||||
Jerre Stead | |||||
Executive Chairman and Chief Executive Officer
|
Date: May 10, 2021 | /s/ Richard Hanks | ||||
Richard Hanks | |||||
Chief Financial Officer |
Date: May 10, 2021 | /s/ Jerre Stead | ||||
Jerre Stead | |||||
Executive Chairman and Chief Executive Officer
|
Date: May 10, 2021 | /s/ Richard Hanks | ||||
Richard Hanks | |||||
Chief Financial Officer |