EVERYDAY HEALTH INC NEW YORK, March 1, 2016 /PRNewswire/ -- Everyday Health, Inc. (NYSE: EVDY), a leading provider of digital health marketing and communications solutions, today announced financial results for the fourth quarter and full year ended December 31, 2015.
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For the full year 2015:
-- Total revenue grew 26% year-over-year.
-- Revenue from the top 30 strategic advertisers increased 30%
year-over-year.
-- Pharma revenue grew 30% year-over-year.
-- Adjusted EBITDA increased 27% year-over-year.
For the fourth quarter:
-- Total revenue grew 30% year-over-year.
-- Revenue from the top 30 strategic advertisers increased 42%
year-over-year.
-- Pharma revenue grew 28% year-over-year.
-- Adjusted EBITDA increased 39% year-over-year.
"In 2015, we made great strides in building the leading marketing platform for the healthcare sector," said Ben Wolin, Co-Founder and CEO of Everyday Health. "We dramatically expanded our market opportunity, diversified our customer base and invested in our sales capabilities to better serve our customers. We now provide innovative solutions to pharma companies, CPG marketers, hospital systems and health insurers, and we can help all of these customers achieve their most important strategic objectives."
Financial Highlights
For the twelve months ended December 31, 2015:
-- Total revenue was $232.0 million, a 26% increase from the prior year
period.
-- Advertising and sponsorship revenue was $209.1 million, a 26%
increase from the prior year period.
-- Premium services revenue, which now includes SaaS fees from hospital
systems, was $22.9 million, a 28% increase from the prior year
period.
-- Adjusted EBITDA was $45.6 million, a 27% increase from the prior year
period.
-- Net income on a non-GAAP basis was $20.0 million, compared to non-GAAP
net income of $17.4 million in the prior year period. Earnings per share
on a non-GAAP basic and diluted basis was $0.63 and $0.60, compared to
$0.72 and $0.65, respectively, in 2014. A description of the non-GAAP
calculations and reconciliation to comparable GAAP measures is provided
in the accompanying tables entitled "Adjusted EBITDA Reconciliation" and
"Reconciliation of Non-GAAP Net Income."
-- Net loss on a GAAP basis was $(11.6) million, compared to net income of
$12.7 million in the prior year period before the impact of the
non-cash, one-time deemed dividend of $8.1 million associated with the
conversion of the Company's Series G preferred stock at the time of its
initial public offering. Loss per share on a GAAP basic and diluted
basis was $(0.36), compared to earnings per share of $0.52 and $0.47,
respectively, in 2014 before the Series G deemed dividend.
-- Cash flow from operations was $20.9 million, up from $20.0 million in
2014.
For the three months ended December 31, 2015:
-- Total revenue was $81.7 million, a 30% increase from the prior year
period.
-- Advertising and sponsorship revenue was $72.9 million, a 24%
increase from the prior year period.
-- Premium services revenue, including SaaS fees, was $8.8 million, a
116% increase from the prior year period.
-- Adjusted EBITDA was $26.1 million, a 39% increase from the prior year
period.
-- Net income on a non-GAAP basis was $19.5 million, compared to non-GAAP
net income of $13.9 million in the prior year period. Earnings per share
on a non-GAAP basic and diluted basis was $0.60 and $0.59, respectively,
compared to $0.45 and $0.42, respectively, in the fourth quarter of
2014. A description of the non-GAAP calculations and reconciliation to
comparable GAAP measures is provided in the accompanying tables entitled
"Adjusted EBITDA Reconciliation" and "Reconciliation of Non-GAAP Net
Income."
-- Net income on a GAAP basis was $7.5 million, compared to net income of
$21.2 million in the prior year period. Earnings per share on both a
GAAP basic and diluted basis was $0.23, compared to $0.68 and $0.64,
respectively, in the fourth quarter of 2014.
"We delivered record results in 2015, with total revenue and Adjusted EBITDA each growing in excess of 25% over 2014," said Brian Cooper, CFO of Everyday Health. "The strategic investments we have made will drive further growth in 2016, and we remain confident in our ability to achieve our long term growth and profitability targets."
Financial Outlook
For the first quarter of 2016 and the full year 2016, the Company anticipates achieving financial results as set forth below:
First Quarter of 2016
---------------------
Total Revenue $47.0 million - $51.0 million
Advertising & Sponsorship
Revenue $43.0 million - $47.0 million
Adjusted EBITDA $(0.5) million - $0.5 million
Full Year 2016
--------------
Total Revenue $250.0 million - $260.0 million
Advertising & Sponsorship
Revenue $233.0 million - $243.0 million
Adjusted EBITDA $43.6 million - $47.6 million
Earnings Teleconference Information
The Company will discuss its fourth quarter and full year 2015 financial results and business outlook during a teleconference today, March 1, 2016, at 4:30 PM ET. The conference call can be accessed at (877) 201-0168 or (647) 788-4901 (International), conference ID# 49703128 or via live webcast at http://ir.everydayhealth.com.
Following completion of the call, a recorded replay of the webcast will be available on Everyday Health's website. To listen to the telephone replay, call toll-free (855) 859-2056 or (404) 537-3406 (International), conference ID# 49703128. The telephone replay will be available from 7:30 PM ET March 1, 2016 through 11:59 PM ET March 8, 2016. Additional investor information can be accessed at http://ir.everydayhealth.com.
About Everyday Health, Inc.
Everyday Health, Inc. (NYSE: EVDY) is a leading provider of digital health marketing and communications solutions. Everyday Health attracts a large and engaged audience of consumers and healthcare professionals to its premier health and wellness properties, and utilizes its data and analytics expertise to deliver highly personalized content experiences and efficient and effective marketing and engagement solutions. Everyday Health enables consumers to manage their daily health and wellness needs, healthcare professionals to stay informed and make better decisions for their patients, and marketers, health payers and providers to communicate and engage with consumers and healthcare professionals to drive better health outcomes. Everyday Health's content and solutions are delivered through multiple channels, including desktop, mobile web, and mobile phone and tablet applications, as well as video and social media.
Safe Harbor Provision
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "enable," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding our future financial performance set forth under the heading "Financial Outlook." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: our ability to attract and retain users to our properties; our ability to attract and retain customers; the timing and amount of advertising spending by our current and future customers; our ability to effectively integrate the acquisitions that we make; our ability to enter into new, or extend existing, partnership arrangements; our ability to successfully pursue opportunities in the broader health and wellness sectors; as well as those factors contained in the "Risk Factors" section of our SEC filings. All information in this release is as of March 1, 2016. Except as required by law, we undertake no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in our expectations.
Use of Non-GAAP Financial Measures
To supplement the financial measures presented in the Company's press release and related conference call or webcast in accordance with accounting principles generally accepted in the United States ("GAAP"), we also present the following non-GAAP measures of financial performance: Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per share ("EPS").
A "non-GAAP financial measure" refers to a numerical measure of the Company's historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements. The Company provides certain non-GAAP measures as additional information relating to its operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of the Company's liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company's performance to that of other companies.
The Company has presented Adjusted EBITDA, non-GAAP net income and non-GAAP EPS as non-GAAP financial measures in this press release. We define Adjusted EBITDA as net income (loss) plus: interest expense, net; income tax provision (benefit); depreciation and amortization expense; stock-based compensation expense; compensation expense related to acquisition earnout and retention bonus arrangements; write-offs of unamortized deferred financing and other debt extinguishment costs; executive transition and reduction in force charges; contract settlement charges; asset impairment and other charges; and preferred stock warrant mark-to-market adjustments. We define non-GAAP net income as net income (loss), plus non-cash stock-based compensation expense, compensation expense related to acquisition earnout and retention bonus arrangements, income tax provision (benefit), and other unusual or significant adjustments such as the write-off of deferred financing costs and other debt extinguishment costs, executive transition and reduction in force charges, contract settlement charges, asset impairment and other charges, and the preferred stock warrant mark-to-market adjustment. We define non-GAAP EPS as non-GAAP net income, divided by weighted-average shares outstanding, which reflects the issuance of the shares sold in the Company's IPO, which closed on April 2, 2014, as well as the conversion of all outstanding shares of preferred stock into common stock in connection with the IPO.
The Company believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of the Company's core operations or do not require a cash outlay, such as stock-based compensation. Our management uses these non-GAAP financial measures when evaluating the Company's operating performance and for internal planning and forecasting purposes. The Company believes that these non-GAAP financial measures help indicate underlying trends in the Company's business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company's operating performance.
EVERYDAY HEALTH, INC.
Consolidated Balance Sheets
(in thousands, except share and per share data)
December 31,
------------
2015 (unaudited) 2014
--------------- ----
Assets
Current assets:
Cash and cash equivalents $30,097 $50,729
Accounts receivable, net of allowance for doubtful accounts of $909 and $637
as of December 31, 2015 and 2014, respectively 90,356 68,007
Prepaid expenses and other current assets 4,662 5,529
----- -----
Total current assets 125,115 124,265
Property and equipment, net 28,565 25,502
Goodwill 165,271 127,115
Intangible assets, net 43,746 30,716
Other assets 6,901 5,237
----- -----
Total assets $369,598 $312,835
-------- --------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $38,563 $31,722
Deferred revenue 8,655 6,740
Current portion of long-term debt 6,775 3,000
Other current liabilities 11,890 965
------ ---
Total current liabilities 65,883 42,427
Long-term debt 104,281 87,000
Deferred tax liabilities 7,570 6,017
Other long-term liabilities 11,595 4,105
Stockholders' equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized at December 31,
2015 and 2014; no shares issued and outstanding at December
31, 2015 and 2014 - -
Common stock, $0.01 par value: 90,000,000 shares authorized at December 31,
2015 and 2014; 32,707,606 and 31,489,196 shares issued and
outstanding at December 31, 2015 and 2014, respectively 327 314
Treasury stock (55) (55)
Additional paid-in capital 310,727 292,117
Accumulated deficit (130,730) (119,090)
-------- --------
Total stockholders' equity 180,269 173,286
------- -------
Total liabilities and stockholders' equity $369,598 $312,835
------------------------------------------ -------- --------
EVERYDAY HEALTH, INC.
Consolidated Statements of Operations
(in thousands, except share and per share data, unaudited)
Three months ended December 31, Twelve months ended December 31,
------------------------------- --------------------------------
2015 2014 2015 2014
---- ---- ---- ----
Revenues:
Advertising and sponsorship
revenues $72,900 $58,981 $209,093 $166,465
Premium services revenues 8,798 4,068 22,898 17,860
----- ------ ------
Total revenues 81,698 63,049 231,991 184,325
------ ------ ------- -------
Operating expenses:
Cost of revenues 23,284 15,908 66,923 49,296
Sales and marketing 22,464 13,956 74,761 48,605
Product development 16,968 12,088 55,920 44,541
General and administrative 9,608 8,816 39,487 30,041
----- ----- ------ ------
Total operating expenses 72,324 50,768 237,091 172,483
Income (loss) from
operations 9,374 12,281 (5,100) 11,842
Interest expense, net (1,428) (763) (5,236) (3,711)
Other expense - - - (4,114)
--- --- --- ------
Income (loss) from
operations before
(provision) benefit for
income taxes 7,946 11,518 (10,336) 4,017
(Provision) benefit for
income taxes (494) 9,669 (1,304) 8,666
---- ----- ------ -----
Net income (loss) 7,452 21,187 (11,640) 12,683
Series G preferred stock
deemed dividend - - - (8,079)
--- --- --- ------
Net income (loss)
attributable to common
stockholders $7,452 $21,187 $(11,640) $4,604
====== ======= ======== ======
Net income (loss)
attributable to common
stockholders per common
share:
Basic $0.23 $0.68 $(0.36) $0.19
Diluted $0.23 $0.64 $(0.36) $0.17
Weighted-average common
shares outstanding:
Basic 32,482,159 31,076,588 31,977,246 24,259,395
Diluted 32,904,143 32,977,544 31,977,246 26,911,782
------- ---------- ---------- ---------- ----------
EVERYDAY HEALTH, INC.
Consolidated Statements of Cash Flows
(in thousands)
Twelve months ended December 31,
--------------------------------
2015 (unaudited) 2014
--------------- ----
Cash flows from operating
activities
Net income (loss) $(11,640) $12,683
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and amortization 20,408 14,943
Provision for doubtful
accounts 326 315
Stock-based compensation 10,936 9,100
Amortization and write-off
of financing costs 540 4,389
Asset impairment charge 1,416 -
(Benefit) provision for
deferred income taxes 952 (9,071)
Changes in operating assets
and liabilities:
Accounts receivable (17,490) (12,437)
Prepaid expenses and other
current assets 982 1,489
Accounts payable and accrued
expenses 5,420 (1,942)
Deferred revenue 1,183 (68)
Other current liabilities 154 58
Other long-term liabilities 7,759 581
----- ---
Net cash provided by
operating activities 20,946 20,040
Cash flows from investing
activities
Additions to property and
equipment, net (14,481) (14,754)
Proceeds from sale of
business - 400
Payment for businesses
purchased, net of cash
acquired (47,316) (65,000)
Payment of security deposits
and other assets (1,413) 131
------ ---
Net cash used in investing
activities (63,210) (79,223)
Cash flows from financing
activities
Net proceeds from common
stock issuance - 70,622
Proceeds from the exercise of
stock options 2,633 7,939
Repayments of principal under
former revolver credit
facility - (30,000)
Repayment of principal under
former term loan facility - (41,333)
Borrowings under revolver
credit facility 25,000 62,300
Repayment of principal under
revolver credit facility (10,000) (32,300)
Borrowings under term loan
facility 8,500 61,000
Repayment of principal under
term loan facility (2,444) (1,000)
Principal payments on capital
lease obligations (642) (659)
Tax withholdings related to
net share settlements of
restricted stock units (623) -
Payments of credit facility
financing costs (792) (2,899)
Net cash provided by
financing activities 21,632 93,670
------ ------
Net increase (decrease) in
cash and cash equivalents (20,632) 34,487
Cash and cash equivalents,
beginning of period 50,729 16,242
Cash and cash equivalents,
end of period $30,097 $50,729
-------------------------- ------- -------
EVERYDAY HEALTH, INC.
Adjusted EBITDA Reconciliation
(in thousands, unaudited)
Three months ended December 31, Twelve months ended December 31,
------------------------------- --------------------------------
2015 2014 2015 2014
---- ---- ---- ----
Adjusted EBITDA $26,132 $18,747 $45,644 $36,019
Less:
Interest expense, net 1,428 763 5,236 3,711
Income tax provision (benefit) 494 (9,669) 1,304 (8,666)
Depreciation and amortization
expense 5,251 4,114 20,408 14,943
Stock-based compensation expense 2,720 2,352 10,936 9,100
Warrant mark-to-market
adjustment - - - 252
Compensation expense related to
acquisition earnout and
retention bonuses 7,382 - 11,968 135
Write-off of unamortized
deferred financing costs - - - 3,861
Executive transition and
reduction in force severance
charges 769 - 3,655 -
Contract settlement charge - - 1,725 -
Asset impairment and other
charges 636 - 2,052 -
--- --- ----- ---
Net Income (loss) $7,452 $21,187 $(11,640) $12,683
---------------- ------ ------- -------- -------
EVERYDAY HEALTH, INC.
Reconciliation of Non-GAAP Net Income
(in thousands, except share and per share data, unaudited)
Three months ended December 31, Twelve months ended December 31,
------------------------------- --------------------------------
2015 2014 2015 2014
---- ---- ---- ----
Net Income (loss) $7,452 $21,187 $(11,640) $12,683
Stock-based compensation
expense 2,720 2,352 10,936 9,100
Income tax provision (benefit) 494 (9,669) 1,304 (8,666)
Warrant mark-to-market
adjustment - - - 252
Compensation expense related
to acquisition earnout and
retention bonuses 7,382 - 11,968 135
Write-off of unamortized
deferred financing costs - - - 3,861
Executive transition and
reduction in force severance
charges 769 - 3,655 -
Contract settlement charge - - 1,725 -
Asset impairment and other
charges 636 - 2,052 -
Non-GAAP net income $19,453 $13,870 $20,000 $17,365
Weighted-average common
shares outstanding-basic 32,482,159 31,076,588 31,977,246 24,259,395
Weighted-average common
shares outstanding-diluted 32,904,143 32,977,544 33,313,328 26,911,782
Non-GAAP net income
per common share-
basic $0.60 $0.45 $0.63 $0.72
Non-GAAP net income
per common share-
diluted $0.59 $0.42 $0.60 $0.65
------------------- ----- ----- ----- -----
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SOURCE Everyday Health, Inc.
