RETAILMENOT INC AUSTIN, Texas, Feb. 14, 2017 /PRNewswire/ -- RetailMeNot, Inc. (NASDAQ:SALE), a leading savings destination connecting consumers with retailers, restaurants and brands, both online and in-store, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2016. In addition to this release, the company has also provided a prepared remarks document, which is available on the Investor Relations section of our website.
"During 2016 we continued to make strides toward our long-term goal of becoming a leading savings destination for consumers," said Cotter Cunningham, CEO & Founder, RetailMeNot, Inc. "While the year had its challenges, we closed out the fourth quarter on a positive note and believe we are well positioned to capitalize on our initiatives in 2017 and beyond."
Fourth Quarter 2016 Financial Results Highlights and Key Operating Metrics
(All comparisons are made to the fourth quarter of 2015 unless otherwise noted. Amounts may not compute due to rounding.)
-- Core Segment
-- Total net revenues $78.3 million, down 6%.
-- In-store & advertising net revenues were up 23%, representing
34% of total core net revenues.
-- Mobile online transaction net revenues were up 8%, representing
12% of total core net revenues.
-- Desktop online transaction net revenues declined 20%,
representing 53% of total core net revenues.
-- Segment operating income ("SOI") was $30.6 million, representing SOI
margins of 39%.
-- Total website visits were 189.8 million, down 12%.
-- Mobile visits in the quarter declined 2% to 91.8 million,
representing 48% of total visits.
-- Desktop visits in the quarter declined 19% to 98.0 million.
-- Mobile unique visitors were flat at 23.1 million.
-- Gift Card Segment
-- Net revenues were $18.6 million.
-- Gross profit was $0.9 million, representing gross profit margins of
5%.
-- Consolidated Results (Core + Gift Card Segments)
-- Net revenues grew 17% to $96.9 million.
-- Net revenues from international markets were $14.8 million,
representing 15% and 19% of consolidated and core segment total net
revenues, respectively.
-- GAAP net income was $2.4 million, compared to GAAP net income of
$9.0 million.
-- Non-GAAP net income was $18.3 million, compared to non-GAAP net
income of $19.1 million.
-- GAAP EPS was $0.05 per share, based on 49.3 million fully-diluted,
weighted-average shares outstanding, compared to GAAP EPS of $0.17
per share, based on 52.4 million fully-diluted, weighted-average
shares outstanding.
-- Non-GAAP EPS was $0.37 per share, based on 49.3 million
fully-diluted, weighted-average shares outstanding, compared to
$0.36 per share, based on 52.4 million fully-diluted,
weighted-average shares outstanding.
-- Adjusted EBITDA was $29.7 million, representing adjusted EBITDA
margins of 31%, inclusive of our gift card segment, compared to
adjusted EBITDA of $30.8 million, or adjusted EBITDA margins of 37%.
Full Year 2016 Financial Results Highlights and Key Operating Metrics
(All comparisons are made to the full year 2015 unless otherwise noted. Amounts may not compute due to rounding.)
-- Core Segment
-- Total net revenues were $236.9 million, down 5%.
-- In-store & advertising net revenues were up 29%, representing
28% of total core net revenues.
-- Mobile online transaction net revenues were up 11%, representing
11% of total core net revenues.
-- Desktop online transaction net revenues declined 17%,
representing 61% of total core net revenues.
-- Segment operating income ("SOI") was $63.1 million, representing SOI
margins of 27%.
-- Total website visits were 650.1 million, down 10%.
-- Mobile visits increased slightly to 298.3 million, representing
46% of total visits.
-- Desktop visits declined 16% to 351.8 million.
-- Gift Card Segment
-- Net revenues were $43.5 million.
-- Gross profit was $2.6 million, representing gross profit margins of
6%.
-- Consolidated Results (Core + Gift Card Segments)
-- Net revenues grew 13% to $280.4 million.
-- Net revenues from international markets were $48.7 million,
representing 17% and 21% of consolidated and core segment total net
revenues, respectively.
-- GAAP net income was $2.0 million, compared to GAAP net income of
$11.8 million.
-- Non-GAAP net income was $34.2 million, compared to non-GAAP net
income of $41.2 million.
-- GAAP EPS was $0.04 per share, based on 49.8 million fully-diluted,
weighted-average shares outstanding, compared to GAAP EPS of $0.22
per share, based on 54.1 million fully-diluted, weighted-average
shares outstanding.
-- Non-GAAP EPS was $0.69 per share, based on 49.8 million
fully-diluted, weighted-average shares outstanding, compared to
$0.76 per share, based on 54.1 million fully-diluted,
weighted-average shares outstanding.
-- Adjusted EBITDA was $61.3 million, representing adjusted EBITDA
margins of 22%, inclusive of our gift card segment, compared to
adjusted EBITDA of $71.9 million, or adjusted EBITDA margins of 29%.
BUSINESS OUTLOOK
(All comparisons are made to the first quarter or full year of 2016, respectively, unless otherwise noted. Amounts may not compute due to rounding.)
First Quarter 2017 (ending March 31, 2017)
With respect to our core segment, we expect:
-- Total net revenues to be in the range of $49.0 to $53.0 million,
reflecting a decline of 7% at the mid-point.
-- Segment operating income to be in the range of $8.5 to $12.5 million,
representing SOI margins of 21% at the midpoint.
With respect to our gift card segment, we expect:
-- Net revenues to be in the range of $13.5 to $18.5 million.
-- Gross profit to be in the range of $700 to $970 thousand, or gross
profit margins of 5% at the midpoint.
On a consolidated basis (Core + Gift Card Segments), we expect:
-- Net revenues to be in the range of $62.5 to $71.5 million.
-- Adjusted EBITDA to be in the range of $7.5 to $11.5 million, or adjusted
EBITDA margins of 14% at the midpoint.
Full Year 2017 (ending December 31, 2017)
With respect to the core segment, we expect:
-- Total net revenues to be in the range of $223.5 to $238.5 million,
reflecting a decline of 2% at the mid-point.
-- Segment operating income to be in the range of $54.0 to $65.0 million,
representing SOI margins of 26% at the midpoint.
With respect to the gift card segment, we expect:
-- Net revenues to be in the range of $72.5 to $87.5 million.
-- Gross profit to be in the range of $4.0 to $4.8 million, or gross profit
margins of 6% at the midpoint.
On a consolidated basis, we expect:
-- Net revenues to be in the range of $296.0 to $326.0 million.
-- Adjusted EBITDA to be in the range of $50.5 to $60.5 million, or
adjusted EBITDA margins of 18% at the midpoint.
The above statements are based on current expectations and actual results may differ materially as explained under the caption "Forward-looking Statements" below. Information about RetailMeNot's use of non-GAAP financial measures, including adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, is provided below under the caption "Use of Non-GAAP Financial Measures."
Quarterly Conference Call
RetailMeNot will host a webcast to discuss its fourth quarter & fiscal year 2016 financial results and key operating metrics and its first quarter and fiscal year 2017 business outlook today at 7:00 a.m. Central Time (8:00 a.m. Eastern Time).
A live webcast of the conference call can be accessed within the investor relations section of the RetailMeNot website at http://investor.retailmenot.com. This webcast will contain forward-looking statements and other material information regarding the company's financial and operating results.
Following completion of the call, a replay of the call will be available beginning at 9:30 a.m. Eastern Time on February 14, 2076. To listen to the telephone replay, call (877) 344-7529 within the US, or (412) 317-0088 if calling internationally. Access Code 10100598.
RetailMeNot uses its investor relations website (http://investor.retailmenot.com) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the investor relations website, in addition to following press releases, SEC filings, public conference calls and webcasts.
About RetailMeNot, Inc.
RetailMeNot, Inc. (http://www.retailmenot.com/corp/) is a leading savings destination connecting consumers with retailers, restaurants and brands, both online and in-store. The company enables consumers across the globe to find hundreds of thousands of digital offers to save money while they shop or dine out. During the 12 months ended December 31, 2016, RetailMeNot, Inc. experienced over 650 million visits to its websites. It also averaged 23.1 million mobile unique visitors per month during the three months ended December 31, 2016. RetailMeNot, Inc. estimates that approximately $4.4 billion in retailer sales were attributable to consumer transactions from paid digital offers in its marketplace in 2016, more than $600 million of which were attributable to its in-store solution. The RetailMeNot, Inc. portfolio of websites and mobile applications includes RetailMeNot.com in the United States; RetailMeNot.ca in Canada; VoucherCodes.co.uk in the United Kingdom; ma-reduc.com and Poulpeo.com in France; and GiftCardZen.com and Deals2Buy.com in North America. RetailMeNot, Inc. is listed on the NASDAQ stock exchange under the ticker symbol "SALE."
Key Operating Metrics
Visits. RetailMeNot defines a visit as a group of interactions that take place on one of RetailMeNot Inc.'s websites from computers, smartphones, tablets or other mobile devices within a given time frame as measured by Google Analytics, a product that provides digital marketing intelligence. A single visit can contain multiple page views, events, social interactions and e-commerce transactions. A single visitor can open multiple visits. Visits can occur on the same day, or over several days, weeks or months. As soon as one visit ends, there is then an opportunity to start a new visit. A visit ends either through the passage of time or a campaign change, with a campaign generally meaning arrival via search engine, referring site or campaign-tagged information. A visit ends through passage of time either after 30 minutes of inactivity or at midnight Pacific Time. A visit ends through a campaign change if a visitor arrives via one campaign or source, leaves the site, and then returns via another campaign or source. Visits for the period do not include interactions through our mobile applications or interactions with giftcardzen.com.
Mobile Unique Visitors. This amount represents the average number of mobile unique visitors per month for the three month period ended December 31, 2016. RetailMeNot counts each of the following as a mobile unique visitor: (i) the first time a specific mobile device accesses one of our mobile applications during a calendar month, and (ii) the first time a specific mobile device accesses one of our mobile websites using a specific web browser during a calendar month. If a mobile device accesses more than one of our mobile websites or mobile applications in a single calendar month, the first access to each such mobile website or mobile application is counted as a mobile unique visitor as they are tracked separately for each mobile domain. We measure mobile unique visitors with a combination of internal data sources and Google Analytics data.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this document includes references to adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, each of which is a non-GAAP financial measure. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the tables provided below in this release.
RetailMeNot has not reconciled adjusted EBITDA guidance to net income (loss) guidance because we do not provide guidance for third party acquisition-related costs or other operating expense, net interest income/expense, other non-operating income and expenses and income taxes, net of any foreign exchange income or expense. As these items cannot be reasonably predicted at this time, we are unable to provide such guidance. Accordingly a reconciliation to net income (loss) guidance is not available without unreasonable effort.
RetailMeNot defines adjusted EBITDA as net income (loss) plus depreciation, amortization of intangible assets, stock-based compensation expense, third-party acquisition-related costs, other operating expenses (including non-cash impairments and compensation arrangements entered into in connection with acquisitions), net interest expense, other non-operating income or expense (including net foreign exchange gains and losses) and income taxes.
RetailMeNot discloses adjusted EBITDA on a consolidated basis because it is a key measure used by RetailMeNot and its board of directors to understand and evaluate RetailMeNot's financial and operating performance, establish budgets and operational goals and as an element in determining compensation of certain of its executives. RetailMeNot believes adjusted EBITDA facilitates period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in this non-GAAP financial measure and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
RetailMeNot's presentation of non-GAAP net income (loss) and non-GAAP net income (loss) per share excludes the impact of amortization of purchased intangible assets, stock-based compensation expense, third party acquisition-related costs, other non-cash operating expenses (including non-cash impairments and compensation arrangements entered into in connection with acquisitions) and income taxes, net of the tax effect of the adjustments above. These measures are not key metrics used by RetailMeNot or its board of directors to measure financial or operating performance or otherwise manage the business. However, RetailMeNot provides non-GAAP net income (loss) and non-GAAP net income (loss) per share as supplemental information for investors, as they facilitate period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in these non-GAAP financial measures and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share have limitations as analytical tools, and you should not consider these measures in isolation or as substitutes for analysis of RetailMeNot's results as reported under GAAP. Because of these limitations, you should consider adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share alongside other financial performance measures, including various cash flow metrics, operating income (loss), net income (loss) and RetailMeNot's other GAAP results.
Forward-looking Statements
This release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding RetailMeNot's strategy, future operations, future financial position, future net revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would" or similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future net revenues, adjusted EBITDA, segment operating income, gross profit and other financial performance, visits, mobile unique visitors, e-mail subscribers, other consumer engagement metrics, new product and content offerings and other statements about management's beliefs, intentions or goals. RetailMeNot may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on RetailMeNot's forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, (1) RetailMeNot's ability to attract visitors to its websites from search engines, to attract and retain users and to maintain or increase users' engagement with its solutions; (2) the competitive environment for RetailMeNot's business; (3) RetailMeNot's ability to monetize digital offers through its mobile solutions; (4) RetailMeNot's ability to attract and retain paid retailers and maintain its relationships with performance marketing networks and suppliers of gift cards; (5) RetailMeNot's ability to obtain and maintain high quality digital offer content and maintain the positive perception of its brands, including with respect to its gift card business; (6) RetailMeNot's ability to have access to gift card inventory sufficient to meet consumer demand; (7) RetailMeNot's ability to manage the growth in scope and complexity of its business, including accurately planning and forecasting its financial results; (8) consumer adoption of the electronic sale of discount gift cards or the continued attractiveness of discount gift cards; (9) RetailMeNot's need to manage regulatory, tax and litigation risks, including regulations related to gift cards and imposing sales tax on e-commerce; (10) RetailMeNot's ability to retain its existing management team and other key employees; (11) RetailMeNot's ability to use and protect consumer data and to protect its intellectual property; (12) RetailMeNot's ability to manage international business uncertainties; (13) the impact and integration of current and future acquisitions; and (14) other risks and potential factors that could affect RetailMeNot's business and financial results identified in RetailMeNot's filings with the Securities and Exchange Commission (the "SEC"), including its quarterly report on Form 10-Q filed with the SEC on November 1, 2016. Additional information will also be set forth in RetailMeNot's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that RetailMeNot makes with the SEC. RetailMeNot does not intend or undertake any duty to release publicly any updates or revisions to any forward-looking statements contained herein.
Investor Contacts
Michael Magaro
RetailMeNot, Inc.
mmagaro@rmn.com
(512) 777-2899
Anne Bawden
RetailMeNot, Inc.
abawden@rmn.com
(415) 200-8654
Media Contact
Michelle Skupin
RetailMeNot, Inc.
mskupin@rmn.com
(808) 224-3215
RetailMeNot, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
Net revenues $96,885 $83,139 $280,421 $249,115
Cost of net revenues (1) 23,165 4,871 61,511 19,904
------ ----- ------ ------
Gross profit 73,720 78,268 218,910 229,211
Operating expenses:
Product development (1) 13,705 12,177 52,283 51,580
Sales and marketing (1) 27,975 33,173 98,209 99,380
General and administrative
(1) 12,288 10,906 42,731 39,813
Amortization of purchased
intangible assets 2,497 2,488 9,466 10,664
Other operating expenses 2,213 2,334 7,547 4,616
----- ----- ----- -----
Total operating expenses 58,678 61,078 210,236 206,053
------ ------ ------- -------
Income from operations 15,042 17,190 8,674 23,158
Other income (expense):
Interest expense, net (559) (539) (2,275) (1,988)
Other income (expense), net (344) (14) 288 (315)
---- --- --- ----
Income before income taxes 14,139 16,637 6,687 20,855
Provision for income taxes (11,778) (7,600) (4,719) (9,007)
------- ------ ------ ------
Net income $2,361 $9,037 $1,968 $11,848
====== ====== ====== =======
Net income per share:
Basic $0.05 $0.17 $0.04 $0.22
===== ===== ===== =====
Diluted $0.05 $0.17 $0.04 $0.22
===== ===== ===== =====
Weighted average number of common shares used in computing net
income per share:
Basic 48,202 51,782 48,724 53,076
====== ====== ====== ======
Diluted 49,331 52,406 49,824 54,099
====== ====== ====== ======
RetailMeNot, Inc.
Condensed Consolidated Statements of Operations (continued)
(Unaudited, in thousands)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
(1) Includes stock-based compensation as follows:
Cost of net revenues $482 $568 $1,846 $2,211
Product development 2,301 2,200 8,367 8,667
Sales and marketing 1,518 1,598 5,360 6,254
General and administrative 2,952 2,437 10,608 9,762
----- ----- ------ -----
Total $7,253 $6,803 $26,181 $26,894
====== ====== ======= =======
RetailMeNot, Inc.
Reconciliation of Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
Net income $2,361 $9,037 $1,968 $11,848
Depreciation and
amortization 4,908 4,389 18,146 17,131
Stock-based
compensation
expense 7,253 6,803 26,181 26,894
Third party
acquisition-
related costs 239 36 727 91
Other operating
expenses 2,213 2,334 7,547 4,616
Interest expense,
net 559 539 2,275 1,988
Other (income)
expense, net 344 14 (288) 315
Provision for
income taxes 11,778 7,600 4,719 9,007
------ ----- ----- -----
Adjusted EBITDA $29,655 $30,752 $61,275 $71,890
======= ======= ======= =======
RetailMeNot, Inc.
Reconciliation of Non-GAAP Net Income and Non-GAAP Diluted EPS
(Unaudited, in thousands, except per share data and percentage rates)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
GAAP Income before
income taxes $14,139 $16,637 6,687 20,855
GAAP Provision for
income taxes (11,778) (7,600) (4,719) (9,007)
------- ------ ------ ------
GAAP Net income $2,361 $9,037 $1,968 $11,848
Non-GAAP adjustments to net income:
Amortization of
purchased intangibles 2,497 2,488 9,466 10,664
Stock-based
compensation expense 7,253 6,803 26,181 26,894
Third party
acquisition-related
costs 239 36 727 91
Other operating
expenses 2,213 2,334 7,547 4,616
Less: Tax effect of
adjustments above 3,693 (1,622) (11,730) (12,947)
----- ------ ------- -------
Total non-GAAP net
income $18,256 $19,076 $34,159 $41,166
======= ======= ======= =======
Diluted net income per share:
GAAP $0.05 $0.17 $0.04 $0.22
----- ----- ----- -----
Non-GAAP $0.37 $0.36 $0.69 $0.76
----- ----- ----- -----
Shares used in non-GAAP diluted EPS calculation:
Weighted-average
shares outstanding
used in calculating
GAAP diluted EPS 49,331 52,406 49,824 54,099
Additional dilutive
securities for non-
GAAP diluted EPS - - - -
Weighted-average
shares outstanding
used in calculating
non-GAAP diluted EPS 49,331 52,406 49,824 54,099
====== ====== ====== ======
Reconciliation of non-GAAP effective tax rate:
GAAP Effective tax rate 83.3% 45.7% 70.6% 43.2%
Tax effect of non-GAAP
adjustments to net
income -52.6% -13.1% -38.1% -8.4%
Non-GAAP effective tax
rate 30.7% 32.6% 32.5% 34.8%
==== ==== ==== ====
RetailMeNot, Inc.
Segment Results
(Unaudited, in thousands)
Three Months Ended December 31, 2016
------------------------------------
Core Gift Cards Unallocated Total
---- ---------- ----------- -----
Net revenues $78,261 $18,624 $ - $96,885
Cost of net revenues 4,983 17,682 500 23,165
----- ------ --- ------
Gross profit 73,278 942 (500) 73,720
Operating expenses:
Product development 9,722 399 3,584 13,705
Sales and marketing 25,746 683 1,546 27,975
General and administrative 7,164 851 4,273 12,288
Amortization of purchased
intangible assets - - 2,497 2,497
Other operating expenses - - 2,213 2,213
--- --- ----- -----
Total operating expenses 42,632 1,933 14,113 58,678
------ ----- ------ ------
Income (loss) from
operations $30,646 $(991) $(14,613) $15,042
======= ===== ======== =======
Three Months Ended December 31, 2015
------------------------------------
Core Gift Cards Unallocated Total
---- ---------- ----------- -----
Net revenues $83,139 $ - $ - $83,139
Cost of net revenues 4,163 - 708 4,871
----- --- --- -----
Gross profit 78,976 - (708) 78,268
Operating expenses:
Product development 8,903 - 3,274 12,177
Sales and marketing 31,210 - 1,963 33,173
General and administrative 8,111 - 2,795 10,906
Amortization of purchased
intangible assets - - 2,488 2,488
Other operating expenses - - 2,334 2,334
--- --- ----- -----
Total operating expenses 48,224 - 12,854 61,078
------ --- ------ ------
Income (loss) from
operations $30,752 $ - $(13,562) $17,190
======= =================== ======== =======
Year Ended December 31, 2016
----------------------------
Core Gift Cards Unallocated Total
---- ---------- ----------- -----
Net revenues $236,874 $43,547 $ - $280,421
Cost of net revenues 18,426 40,922 2,163 61,511
------ ------ ----- ------
Gross profit 218,448 2,625 (2,163) 218,910
Operating expenses:
Product development 38,123 944 13,216 52,283
Sales and marketing 90,658 1,477 6,074 98,209
General and administrative 26,563 2,033 14,135 42,731
Amortization of purchased
intangible assets - - 9,466 9,466
Other operating expenses - - 7,547 7,547
--- --- ----- -----
Total operating expenses 155,344 4,454 50,438 210,236
------- ----- ------ -------
Income (loss) from
operations $63,104 $(1,829) $(52,601) $8,674
======= ======= ======== ======
Year Ended December 31, 2015
----------------------------
Core Gift Cards Unallocated Total
---- ---------- ----------- -----
Net revenues $249,115 $ - $ - $249,115
Cost of net revenues 17,170 - 2,734 19,904
------ --- ----- ------
Gross profit 231,945 - (2,734) 229,211
Operating expenses:
Product development 39,409 - 12,171 51,580
Sales and marketing 91,772 - 7,608 99,380
General and administrative 28,874 - 10,939 39,813
Amortization of purchased
intangible assets - - 10,664 10,664
Other operating expenses - - 4,616 4,616
--- --- -----
Total operating expenses 160,055 - 45,998 206,053
------- --- ------ -------
Income (loss) from
operations $71,890 $ - $(48,732) $23,158
======= =================== ======== =======
RetailMeNot, Inc.
Reconciliation of Unallocated Expenses
(Unaudited, in thousands)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
Depreciation
expense $2,411 $1,901 $8,680 $6,467
Stock-based
compensation
expense 7,253 6,803 26,181 26,894
Third party
acquisition-
related costs 239 36 727 91
Amortization of
purchased
intangible assets 2,497 2,488 9,466 10,664
Other operating
expenses 2,213 2,334 7,547 4,616
----- ----- ----- -----
Total Unallocated
expenses $14,613 $13,562 $52,601 $48,732
------- ------- ------- -------
RetailMeNot, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
As of December 31, As of December 31,
2016 2015
---- ----
Assets
Current assets:
Cash and cash equivalents $216,858 $259,769
Accounts receivable, net 66,424 67,504
Inventory 9,529 -
Prepaids and other current
assets, net 10,485 9,959
------ -----
Total current assets 303,296 337,232
Property and equipment, net 24,800 21,382
Intangible assets, net 55,046 61,245
Goodwill 190,882 174,725
Other assets, net 7,983 8,040
----- -----
Total assets $582,007 $602,624
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $9,372 $8,713
Accrued compensation and
benefits 13,104 10,136
Accrued expenses and other
current liabilities 5,104 7,155
Income taxes payable 7,564 5,109
Current maturities of long
term debt 10,000 10,000
------ ------
Total current liabilities 45,144 41,113
Deferred tax liability--
noncurrent 1,027 1,498
Long term debt 51,106 60,872
Other noncurrent
liabilities 9,121 7,752
----- -----
Total liabilities 106,398 111,235
Stockholders' equity:
Common stock 48 51
Additional paid-in capital 480,333 495,151
Accumulated other
comprehensive loss (7,810) (4,883)
Retained earnings 3,038 1,070
Total stockholders' equity 475,609 491,389
------- -------
Total liabilities and
stockholders' equity $582,007 $602,624
======== ========
RetailMeNot, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2016 2015 2016 2015
---- ---- ---- ----
Cash flows from operating activities:
Net income $2,361 $9,037 $1,968 $11,848
Adjustments to reconcile net income to cash provided by
operating activities:
Depreciation and
amortization expense 4,908 4,389 18,146 17,131
Stock based
compensation expense 7,253 6,803 26,181 26,894
Excess income tax
benefit from stock-
based compensation (25) (41) (160) (1,374)
Deferred income tax
benefit (1,882) (1,087) (291) (849)
Non-cash interest
expense 116 102 440 407
Impairment of assets 786 2,340 1,620 2,340
Amortization of
deferred compensation 1,435 - 5,944 2,297
Other non-cash (gains)
losses, net 361 (746) (1,355) 223
Provision for doubtful
accounts receivable 1,085 867 1,344 783
Changes in operating assets and liabilities: - -
Accounts receivable,
net (26,775) (28,081) (1,761) 161
Inventory (6,363) - (8,796) -
Prepaid expenses and
other current assets,
net 8,210 3,823 (1,104) (1,123)
Accounts payable 3,145 4,881 667 4,035
Accrued expenses and
other current
liabilities 2,792 6,839 (3,242) (3,222)
Other noncurrent assets
and liabilities (1,922) (895) (712) 938
------ ---- ---- ---
Net cash (used in)
provided by operating
activities (4,515) 8,231 38,889 60,489
Cash flows from investing activities:
Payments for
acquisition of
businesses, net of
acquired cash 239 - (20,729) -
Proceeds from sale of
property and equipment 8 9 30 23
Purchase of other
assets - (35) (44) (4,337)
Purchase of non-
marketable investment - - - (4,000)
Purchase of property
and equipment (2,980) (2,162) (12,192) (10,903)
------ ------ ------- -------
Net cash used in
investing activities (2,733) (2,188) (32,935) (19,217)
Cash flows from financing activities:
Proceeds from notes
payable, net of
issuance costs - - - 29,950
Payments on notes
payable (2,500) (2,500) (10,000) (7,500)
Payment of offering
costs related to
public offerings - - - -
Excess income tax
benefit from stock-
based compensation and
other 25 41 160 1,374
Payments of principal
on capital lease
arrangements - - (67) (7)
Payments for repurchase
of common stock (7,775) (14,065) (36,209) (52,873)
Proceeds from issuance
of common stock, net
of tax payments
related to net share
settlement of equity
awards (330) (164) (1,899) 4,166
---
Net cash used in
financing activities (10,580) (16,688) (48,015) (24,890)
Effect of foreign
currency exchange rate
on cash (581) (291) (850) (1,095)
---- ---- ---- ------
Change in cash and cash
equivalents (18,409) (10,936) (42,911) 15,287
Cash and cash
equivalents, beginning
of period 235,267 270,705 259,769 244,482
------- ------- ------- -------
Cash and cash
equivalents, end of
period $216,858 $259,769 $216,858 $259,769
======== ======== ======== ========
-- RMNSALE-F -
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/retailmenot-inc-announces-fourth-quarter--fiscal-year-2016-financial-results-300406745.html
SOURCE RetailMeNot, Inc.
