Exhibit 99.1
Solera Holdings, Inc. Reports Third Quarter 2014 Results
Third Quarter Revenue of $262.4 Million, up 22.3% on a GAAP Basis and up 21.9% on a Constant Currency Basis; Adjusted EBITDA Margin of 41.8% on a Reported Basis and 42.0% on a Constant Currency Basis;
Company Updates Guidance and Announces Quarterly Dividend
WESTLAKE, Texas, May 7, 2014/PRNewswire/ – Solera Holdings, Inc. (NYSE: SLH), a leading global provider of software and services to the automobile insurance claims processing and decision support industries, today reported results for the third quarter of fiscal year 2014.
Results for the Third Quarter Ended March 31, 2014:
GAAP Results
| |
| • | Revenue for the third quarter was $262.4 million, a 22.3% increase over the prior year third quarter revenue of $214.6 million. After adjusting for changes in foreign currency exchange rates (“FX Changes”), revenue for the third quarter increased by approximately 21.9% over the prior year third quarter revenue; |
| |
| • | Net income attributable to Solera Holdings, Inc. for the third quarter was $19.9 million, a 7.4% decrease over prior year third quarter net income attributable to Solera Holdings, Inc. of $21.5 million; |
| |
| • | Diluted net income attributable to Solera Holdings, Inc. per common share for the third quarter was $0.28, a 9.7% decrease over prior year third quarter diluted net income attributable to Solera Holdings, Inc. per common share of $0.31. |
“Solera reported solid third quarter results that were highlighted by total constant currency revenue growth of 21.9% and constant currency organic revenue growth of 5.6%, which represents the third consecutive quarter of accelerating organic growth,” said Tony Aquila, Solera's founder, Chairman and Chief Executive Officer. “Our performance reflects early momentum in our Service, Maintenance and Repair investments, strong performance in our Driver Behavior and Monitoring platform and improving conditions in many of our markets. Additionally, we generated strong Adjusted EBITDA margins even as we continue to invest in Mission 2020 execution and integrate recently acquired businesses."
Non-GAAP Results
| |
| • | Adjusted EBITDA for the third quarter was $109.8 million, a 15.1% increase over the prior year third quarter Adjusted EBITDA of $95.4 million. After adjusting for FX Changes, Adjusted EBITDA for the third quarter increased by 15.3% over the prior year third quarter Adjusted EBITDA; |
| |
| • | Adjusted EBITDA margin for the third quarter was 41.8%, a 259 basis point decrease over the prior year third quarter Adjusted EBITDA margin of 44.4%. After adjusting for FX Changes, Adjusted EBITDA margin for the third quarter was 42.0%, a 241 basis point decrease over the prior year third quarter Adjusted EBITDA margin; |
| |
| • | Adjusted Net Income for the third quarter was $55.8 million, a 13.2% increase over the prior year third quarter Adjusted Net Income of $49.2 million; |
| |
| • | Adjusted Net Income per diluted common share for the third quarter was $0.80, a 12.7% increase over the prior year third quarter Adjusted Net Income per diluted common share of $0.71. |
Business Statistics
| |
| • | EMEA revenues were $132.6 million for the third quarter, representing a 7.9% increase over the prior year third quarter. After adjusting for FX Changes, EMEA revenues for the third quarter increased 5.0% over the prior year third quarter; |
| |
| • | Americas revenues were $129.8 million for the third quarter, representing a 41.6% increase over the prior year third quarter. After adjusting for FX Changes, Americas revenues for the third quarter increased 44.7% over the prior year third quarter. After excluding the revenues of Service Repair Solutions, Inc. ("SRS"), Americas revenues increased 9.6% over the prior year third quarter and, after adjusting for FX Changes, increased 12.7% over the prior year third quarter; |
| |
| • | Revenues from insurance company customers were $96.1 million for the third quarter, representing a 4.4% increase over the prior year third quarter. After adjusting for FX Changes, revenues from insurance company customers for the third quarter increased 5.1% over the prior year third quarter; |
| |
| • | Revenues from collision repair facility customers were $74.6 million for the third quarter, representing a 9.1% increase over the prior year third quarter. After adjusting for FX Changes, revenues from collision repair facility customers for the third quarter increased 8.6% over the prior year third quarter; |
| |
| • | Revenues from independent assessors were $19.3 million for the third quarter, representing a 5.2% increase over the prior year third quarter. After adjusting for FX Changes, revenues from independent assessors for the third quarter increased 3.7% over the prior year third quarter; |
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| • | Revenues from service, maintenance and repair facilities customers, representing revenue contributions from SRS, were $29.3 million for the third quarter. No revenues from service, maintenance and repair facilities customers were recognized in the prior year third quarter. |
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| • | Revenues from automotive recycling, salvage, dealership and other customers were $43.1 million for the third quarter, representing a 20.3% increase over the prior year third quarter. After adjusting for FX Changes, revenues from automotive recycling, salvage, dealership and other customers for the third quarter increased 18.1% over the prior year third quarter. |
Fiscal Year 2014 Outlook:
We are updating our previous outlook for our full fiscal year ending June 30, 2014 announced on February 5, 2014 and updated on February 19, 2014 with respect to Adjusted EBITDA, as follows:
|
| | | | |
| | | Previous Fiscal Year 2014 Outlook | | Current Fiscal Year 2014 Outlook |
| Revenues | | $981 million — $987 million | | $981 million — $987 million |
| Net income attributable to Solera Holdings, Inc.(1) | | $58 million — $65 million | | $63 million — $69 million |
| Adjusted EBITDA | | $412 million — $418 million | | $412 million — $418 million |
| Adjusted Net Income | | $192 million — $198 million | | $196 million — $201 million |
| Adjusted Net Income per diluted common share | | $2.78 — $2.86 | | $2.83 — $2.90 |
| |
| (1) | Net income attributable to Solera Holdings, Inc. does not reflect the following: (i) a one-time charge associated with the November 2013 redemption of our 2018 Senior Notes of $39.1 million, which is net of the related income tax benefit of $21.1 million, (ii) a one-time charge associated with the repayment of the outstanding term loans under our amended credit facility of $3.1 million, and (iii) establishing a valuation allowance on our U.S. deferred tax assets of $26.8 million, all of which were charged against earnings during the nine months ended March 31, 2014. After considering these one-time charges, projected net income attributable to Solera Holdings, Inc. for fiscal year 2014 will be a net income (loss) of between $(5.5 million) and $0.5 million (versus a net income (loss) of between $(14 million) and $(7 million) per our February 5, 2014 fiscal year outlook). |
The current fiscal year 2014 outlook above assumes constant currency exchange rates from those currently prevailing, no acquisitions of businesses, no repurchases of our common stock and an assumed 26% tax rate to calculate Adjusted Net Income.
Exchange rates between most of the major foreign currencies we use to transact our business and the U.S. dollar have fluctuated significantly over the last few years and we expect that they will continue to fluctuate. The majority of our revenues and costs are denominated in Euros, Pound Sterling, Swiss francs, Canadian dollars and other international currencies. The following table provides the average quarterly exchange rates for the Euro and Pound Sterling since the beginning of fiscal year 2013:
|
| | | | | | | | |
| Period | | Average Euro-to- U.S. Dollar Exchange Rate | | Average Pound Sterling-to-U.S. Dollar Exchange Rate |
| Quarter ended September 30, 2012 | | $ | 1.25 |
| | $ | 1.58 |
|
| Quarter ended December 31, 2012 | | 1.30 |
| | 1.61 |
|
| Quarter ended March 31, 2013 | | 1.32 |
| | 1.55 |
|
| Quarter ended June 30, 2013 | | 1.31 |
| | 1.54 |
|
| Quarter ended September 30, 2013 | | 1.32 |
| | 1.55 |
|
| Quarter ended December 31, 2013 | | 1.36 |
| | 1.62 |
|
| Quarter ended March 31, 2014 | | 1.37 |
| | 1.65 |
|
During the three months ended March 31, 2014 as compared to the three months ended March 31, 2013, the U.S. dollar weakened against most major foreign currencies we use to transact our business. Relative to the Euro and the Pound Sterling, the average U.S. dollar weakened by 3.7% and 6.5%, respectively, which increased our revenues and expenses for the three
months ended March 31, 2014 relating to the Euro markets in which we transact business and the United Kingdom. A hypothetical 5% increase or decrease in the U.S. dollar versus other currencies in which we transact our business would have resulted in an increase or decrease, as the case may be, to our revenues of $7.9 million and $22.9 million during the three and nine months ended March 31, 2014, respectively.
All percentage amounts and ratios were calculated using the underlying data in whole dollars. We measure constant currency, or the effects on our results that are attributable to FX Changes, by measuring the incremental difference between translating the prior period and the current results at the monthly average rates for the same period from the prior year. When we refer to consensus, we mean the consensus results, on an actual currency basis, of certain analysts that cover us, as reported on Thompson First Call.
Quarterly Dividend:
The Audit Committee of our Board of Directors approved the payment of a quarterly dividend of $0.17 per share of outstanding common stock and per outstanding restricted stock unit. The dividends are payable on June 3, 2014 to stockholders and restricted stock unit holders of record at the close of business on May 22, 2014.
Earnings Conference Call:
We will host our third quarter ended March 31, 2014 earnings call today at 5:00 p.m. (Eastern Time) – May 7, 2014. The conference call will be webcast live in listen-only mode and can be accessed by visiting the Investor Center section of the Solera website: www.solerainc.com. A webcast replay will be available on the website until 11:59 p.m. EST on May 21, 2014. A live audiocast will also be accessible to the public by calling (877) 280-4959 or from outside the U.S., (857) 244-7316. When prompted, the following access code is required: 37637854. Callers should dial in approximately 10 minutes before the call begins. For those unable to participate in the live audiocast, a replay will be available until 11:59 p.m. EST on May 21, 2014. To access the replay, dial (888) 286-8010 or from outside the U.S., (617) 801-6888, and enter the following access code when prompted: 27572216.
SOLERA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2014 AND 2013
(In thousands, except per share amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | Nine Months Ended March 31, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| Revenues | | $ | 262,416 |
| | $ | 214,625 |
| | $ | 719,360 |
| | $ | 619,577 |
|
| Cost of revenues: | | | | | | | | |
| Operating expenses | | 57,524 |
| | 45,966 |
| | 162,033 |
| | 133,407 |
|
| Systems development and programming costs | | 25,094 |
| | 20,871 |
| | 66,302 |
| | 59,271 |
|
| Total cost of revenues (excluding depreciation and amortization) | | 82,618 |
| | 66,837 |
| | 228,335 |
| | 192,678 |
|
| Selling, general and administrative expenses | | 69,987 |
| | 52,861 |
| | 186,783 |
| | 150,667 |
|
| Share-based compensation expense | | 8,697 |
| | 7,645 |
| | 28,095 |
| | 18,764 |
|
| Depreciation and amortization | | 33,960 |
| | 26,360 |
| | 88,657 |
| | 76,140 |
|
| Restructuring charges, asset impairments, and other costs associated with exit and disposal activities | | 3,347 |
| | 1,708 |
| | 4,457 |
| | 4,901 |
|
| Acquisition and related costs | | 10,824 |
| | 6,069 |
| | 28,307 |
| | 18,048 |
|
| Interest expense | | 25,634 |
| | 17,270 |
| | 81,093 |
| | 52,056 |
|
| Other (income) expense, net(1) | | (159 | ) | | 225 |
| | 62,061 |
| | 962 |
|
| | | 234,908 |
| | 178,975 |
| | 707,788 |
| | 514,216 |
|
| Income before provision for income taxes | | 27,508 |
| | 35,650 |
| | 11,572 |
| | 105,361 |
|
| Income tax provision | | 7,209 |
| | 10,939 |
| | 22,418 |
| | 21,792 |
|
| Net income (loss) | | 20,299 |
| | 24,711 |
| | (10,846 | ) | | 83,569 |
|
| Less: Net income attributable to noncontrolling interests | | 406 |
| | 3,235 |
| | 6,623 |
| | 8,684 |
|
| Net income (loss) attributable to Solera Holdings, Inc.(1) | | $ | 19,893 |
| | $ | 21,476 |
| | $ | (17,469 | ) | | $ | 74,885 |
|
| Net income (loss) attributable to Solera Holdings, Inc. per common share: | | | | | | | | |
| Basic | | $ | 0.29 |
| | $ | 0.31 |
| | $ | (0.26 | ) | | $ | 1.08 |
|
| Diluted | | $ | 0.28 |
| | $ | 0.31 |
| | $ | (0.26 | ) | | $ | 1.07 |
|
| Dividends paid per share | | $ | 0.17 |
| | $ | 0.125 |
| | $ | 0.51 |
| | $ | 0.375 |
|
| Weighted-average shares used in the calculation of net income (loss) attributable to Solera Holdings, Inc. per common share: | | | | | | | | |
| Basic | | 68,887 |
| | 68,842 |
| | 68,848 |
| | 68,852 |
|
| Diluted | | 69,455 |
| | 69,245 |
| | 68,848 |
| | 69,148 |
|
| |
| (1) | For the nine months ended March 31, 2014, we incurred a net loss attributable to Solera Holdings, Inc. which is primarily due to one-time charges associated with the redemption of our 2018 Senior Notes in November 2013 of $63.3 million. |
Non-GAAP Financial Measures
We use a number of non-GAAP financial measures that are not intended to be used in lieu of GAAP presentations, but are provided because management believes that they provide additional information with respect to the performance of our fundamental business activities and are also frequently used by securities analysts, investors and other interested parties to facilitate the evaluation of our business on a comparable basis to other companies. The three primary non-GAAP financial measures that we use are Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted common share. We believe that Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted common share are useful to investors in providing information regarding our operating results. We rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team in connection with our executive compensation and bonus plans. Adjusted EBITDA also allows us to compare our current operating results with corresponding prior periods as well as to the operating results of other companies in our industry. We present Adjusted Net Income and Adjusted Net Income per diluted common share because we believe both of these measures provide useful information regarding our operating results in addition to our GAAP measures. We believe that Adjusted Net Income and Adjusted Net Income per diluted common share provide investors with valuable insight into our profitability exclusive of unusual adjustments, and provide further insight into the cash impact resulting from the different treatments of goodwill for financial reporting and tax purposes.
Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted common share have limitations as analytical tools, and should not be considered in isolation or as a substitute for net income, net income per share and other consolidated income statement data prepared in accordance with accounting principles generally accepted in the United States. Because of these limitations, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted common share should not be considered as a replacement for net income. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per diluted common share as supplemental information.
| |
| • | Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income (loss) excluding (i) interest expense, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) restructuring charges, asset impairments, and other costs associated with exit and disposal activities, (vi) other (income) expense, net, (vii) litigation related expenses, and (viii) acquisition and related costs. Acquisition and related costs include legal and professional fees and other transaction costs associated with completed and contemplated business combinations and asset acquisitions, costs associated with integrating acquired businesses, including costs incurred to eliminate workforce redundancies and for product rebranding, and other charges incurred as a direct result of our acquisition efforts. These other charges include changes to the fair value of contingent purchase consideration, acquired assets and assumed liabilities subsequent to the completion of the purchase price allocation, purchase price that is deemed to be compensatory in nature and incentive compensation arrangements with continuing employees of acquired companies. Acquisition and related costs also include the legal and other professional fees associated with the Federal Trade Commission's investigation of our acquisition of Actual Systems and the divestiture of Actual Systems' U.S. and Canadian businesses. A reconciliation of our Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, is provided in the attached table. |
SOLERA HOLDINGS, INC.
RECONCILIATION TO ADJUSTED EBITDA
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2014 AND 2013
(In thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | Nine Months Ended March 31, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| Net income (loss) | | 20,299 |
| | 24,711 |
| | (10,846 | ) | | 83,569 |
|
| Add: Income tax provision | | 7,209 |
| | 10,939 |
| | 22,418 |
| | 21,792 |
|
| Net income before income tax provision | | 27,508 |
| | 35,650 |
| | 11,572 |
|
| 105,361 |
|
| Add: Depreciation and amortization | | 33,960 |
| | 26,360 |
| | 88,657 |
| | 76,140 |
|
| Add: Restructuring charges, asset impairments, and other costs associated with exit and disposal activities | | 3,347 |
| | 1,708 |
| | 4,457 |
| | 4,901 |
|
| Add: Acquisition and related costs | | 10,824 |
| | 6,069 |
| | 28,307 |
| | 18,048 |
|
| Add: Litigation related expenses | | — |
| | 450 |
| | 586 |
| | 1,429 |
|
| Add: Interest expense | | 25,634 |
| | 17,270 |
| | 81,093 |
| | 52,056 |
|
| Add: Other (income) expense, net | | (159 | ) | | 225 |
| | 62,061 |
| | 962 |
|
| Add: Stock-based compensation expense | | 8,697 |
| | 7,645 |
| | 28,095 |
| | 18,764 |
|
| Adjusted EBITDA | | $ | 109,811 |
| | $ | 95,377 |
| | $ | 304,828 |
| | $ | 277,661 |
|
| |
| • | Adjusted Net Income is a non-GAAP financial measure that represents GAAP net income (loss) attributable to Solera Holdings, Inc. excluding (i) provision for income taxes, (ii) amortization of acquired intangible assets, (iii) stock-based compensation expense, (iv) restructuring charges, asset impairments, and other costs associated with exit and disposal activities, (v) other (income) expense, net excluding interest income, (vi) litigation related expenses, and (vii) acquisition and related costs. From this amount, we subtract an assumed provision for income taxes to arrive at Adjusted Net Income. During the three and nine months ended March 31, 2014 and 2013, we assumed a 26% and 28% income tax rate, respectively, as an approximation of our long-term effective corporate income tax rate, which is a non-GAAP financial measure that includes certain benefits from net operating loss carryforwards, tax credits, tax deductible goodwill and amortization, and certain holding companies in low tax-rate jurisdictions. A reconciliation of our Adjusted Net Income to GAAP net income (loss) attributable to Solera Holdings, Inc., the most directly comparable GAAP measure, is provided in the attached table. |
| |
| • | Adjusted Net Income per diluted common share is a non-GAAP financial measure that represents Adjusted Net Income (as defined above) divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income (loss) attributable to Solera Holdings, Inc. per diluted common share. A reconciliation of our Adjusted Net Income per diluted common share to GAAP net income (loss) attributable to Solera Holdings, Inc. per diluted common share, the most directly comparable GAAP measure, is provided in the attached table. |
SOLERA HOLDINGS, INC.
RECONCILIATION TO ADJUSTED NET INCOME
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2014 AND 2013
(In thousands, except per share amounts)
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | Nine Months Ended March 31, |
| | | 2014 | | 2013 | 2014 | | 2013 |
| Net income (loss) attributable to Solera Holdings, Inc. | | 19,893 |
| | 21,476 |
| (17,469 | ) | | 74,885 |
|
| Add: Income tax provision | | 7,209 |
| | 10,939 |
| 22,418 |
| | 21,792 |
|
| Net income attributable to Solera Holdings, Inc. before income tax provision | | 27,102 |
| | 32,415 |
| 4,949 |
| | 96,677 |
|
| Add: Amortization of acquisition-related intangibles | | 25,383 |
| | 19,784 |
| 63,792 |
| | 55,032 |
|
| Add: Restructuring charges, asset impairments, and other costs associated with exit and disposal activities | | 3,347 |
| | 1,708 |
| 4,457 |
| | 4,901 |
|
| Add: Acquisition and related costs | | 10,824 |
| | 6,069 |
| 28,307 |
| | 18,048 |
|
| Add: Litigation related expenses | | — |
| | 450 |
| 586 |
| | 1,429 |
|
| Add: Other (income) expense, net excluding interest income | | (15 | ) | | 313 |
| 62,585 |
| | 1,468 |
|
| Add: Stock-based compensation expense | | 8,697 |
| | 7,645 |
| 28,095 |
| | 18,764 |
|
| Adjusted Net Income before income tax provision | | 75,338 |
| | 68,384 |
| 192,771 |
| | 196,319 |
|
| Less: Assumed provision for income taxes | | (19,588 | ) | | (19,148 | ) | (50,120 | ) | | (54,969 | ) |
| Adjusted Net Income | | $ | 55,750 |
| | $ | 49,236 |
| $ | 142,651 |
| | $ | 141,350 |
|
| Adjusted Net Income per share: | | | | | | | |
| Basic | | $ | 0.81 |
| | $ | 0.72 |
| $ | 2.07 |
| | $ | 2.05 |
|
| Diluted | | $ | 0.80 |
| | $ | 0.71 |
| $ | 2.06 |
| | $ | 2.04 |
|
| Weighted-average shares used in the calculation of net income (loss) attributable to Solera Holdings, Inc. and Adjusted Net Income per share: | | | | | | | |
| Basic | | 68,887 |
| | 68,842 |
| 68,848 |
| | 68,852 |
|
| Diluted | | 69,455 |
| | 69,245 |
| 69,332 |
| | 69,148 |
|
SOLERA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2014 AND JUNE 30, 2013
(In thousands, except per share amounts)
(Unaudited)
|
| | | | | | | |
| | March 31, 2014 | | June 30, 2013 |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 745,209 |
| | $ | 464,239 |
|
| Accounts receivable, net of allowance for doubtful accounts of $4,569 and $3,005 at March 31, 2014 and June 30, 2013, respectively | 146,251 |
| | 140,395 |
|
| Other receivables | 22,080 |
| | 18,014 |
|
| Other current assets | 34,956 |
| | 28,296 |
|
| Deferred income tax assets | 12,247 |
| | 7,108 |
|
| Total current assets | 960,743 |
| | 658,052 |
|
| Property and equipment, net | 69,999 |
| | 61,739 |
|
| Goodwill | 1,560,392 |
| | 1,099,221 |
|
| Intangible assets, net | 577,347 |
| | 352,589 |
|
| Other noncurrent assets | 13,072 |
| | 23,633 |
|
| Noncurrent deferred income tax assets | 86,004 |
| | 62,307 |
|
| Total assets | $ | 3,267,557 |
| | $ | 2,257,541 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 25,197 |
| | $ | 28,068 |
|
| Accrued expenses and other current liabilities | 229,720 |
| | 174,081 |
|
| Income taxes payable | 24,115 |
| | 7,628 |
|
| Deferred income tax liabilities | 3,581 |
| | 3,925 |
|
| Current portion of long-term debt | — |
| | 2,924 |
|
| Total current liabilities | 282,613 |
| | 216,626 |
|
| Long-term debt | 1,708,456 |
| | 1,144,462 |
|
| Other noncurrent liabilities | 62,819 |
| | 42,634 |
|
| Noncurrent deferred income tax liabilities | 104,557 |
| | 20,843 |
|
| Total liabilities | 2,158,445 |
| | 1,424,565 |
|
| Redeemable noncontrolling interests | 406,897 |
| | 84,737 |
|
| Stockholders’ equity: | | | |
| Solera Holdings, Inc. stockholders’ equity: | | | |
| Common shares, $0.01 par value: 150,000 shares authorized; 68,751 and 68,764 issued and outstanding as of March 31, 2014 and June 30, 2013, respectively | 601,581 |
| | 602,613 |
|
| Retained earnings | 94,311 |
| | 177,335 |
|
| Accumulated other comprehensive loss | (3,978 | ) | | (43,147 | ) |
| Total Solera Holdings, Inc. stockholders’ equity | 691,914 |
| | 736,801 |
|
| Noncontrolling interests | 10,301 |
| | 11,438 |
|
| Total stockholders’ equity | 702,215 |
| | 748,239 |
|
| Total liabilities and stockholders’ equity | $ | 3,267,557 |
| | $ | 2,257,541 |
|
SOLERA HOLDINGS, INC.
SELECTED STATEMENT OF CASH FLOWS INFORMATION
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND 2013
(In thousands)
(Unaudited)
|
| | | | | | | |
| | Nine Months Ended March 31, |
| | 2014 | | 2013 |
| Net cash provided by operating activities | $ | 219,479 |
| | $ | 173,560 |
|
| Net cash used in investing activities | (369,279 | ) | | (169,292 | ) |
| Net cash provided by (used in) financing activities | 426,327 |
| | (68,161 | ) |
| Effect of foreign currency exchange rate changes on cash and cash equivalents | 4,443 |
| | 2,786 |
|
| Net change in cash and cash equivalents | 280,970 |
| | (61,107 | ) |
| Cash and cash equivalents, beginning of period | 464,239 |
| | 508,246 |
|
| Cash and cash equivalents, end of period | $ | 745,209 |
| | $ | 447,139 |
|
| | | | |
| Supplemental cash flow information: | | | |
| Cash paid for interest | $ | 61,538 |
| | $ | 36,427 |
|
| Cash paid for income taxes | $ | 33,271 |
| | $ | 35,086 |
|
| | | | |
| Supplemental disclosure of non-cash investing and financing activities: | | | |
| Capital assets financed | $ | 296 |
| | $ | 426 |
|
| Accrued contingent purchase consideration | $ | 1,469 |
| | $ | 21,051 |
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About Solera:
Solera is a leading global provider of software and services to the automobile insurance claims processing and decision support industries. Solera is active in over 65 countries across six continents. The Solera companies include: Audatex in the United States, Canada, and in more than 45 additional countries; Informex in Belgium and Greece; Sidexa in France; ABZ and Market Scan in the Netherlands; HPI and CarWeb in the United Kingdom; Hollander serving the North American recycling market; AUTOonline providing salvage disposition in a number of European and Latin American countries; IMS providing medical review services in North America; Explore providing data and analytics to United States property and casualty insurers; and Service Repair Solutions, a joint venture with Welsh, Carson, Anderson & Stowe, that provides solutions for the service, maintenance and repair market. For more information, please refer to the company's website at http://www.solerainc.com.
Cautions about Forward-Looking Statements:
This press release contains forward-looking statements, including statements about: momentum in our SMR and Driver Behavior platforms; our expectations regarding our prospects and business outlook for fiscal year 2014; our expectations and beliefs regarding changes in foreign currency exchange rates; our effective tax rate; execution of Mission 2020; and statements about our operating performance, including our Adjusted EBITDA margin, LDD strategy, dividends, acquisitions, investments, joint ventures, common stock repurchases, our effective tax rate and other historical results or performance that may suggest trends for our business. These statements are based on our current expectations, estimates and assumptions and are subject to many risks, uncertainties and unknown future events that could cause actual results to differ materially. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in our business, including, without limitation: our reliance on a limited number of customers for a substantial portion of our revenues; unpredictability and volatility of our operating results, which include the volatility associated with foreign currency exchange risks, our sales cycle, seasonality, global economic conditions, acquisitions and other factors; risks associated with and possible negative consequences of acquisitions, joint ventures, divestitures and similar transactions, including regulatory matters and our ability to successfully integrate our acquired businesses; we may not complete any subsequent acquisitions of additional equity interests of SRS; the failure to realize the expected benefits from our joint venture with Welsh, Carson or our investment in or subsequent acquisition of SRS; our inability to successfully integrate SRS's business, including SRS's existing employees, infrastructure and service offerings, with our existing businesses at reasonable cost, or at all; our inability to pay (or finance, as applicable) the call price or put prices at our expected cost, or at all, and the possible reduction in our cash balance or increase in outstanding debt after payment of the closing purchase price, call price or put prices; successful integration of acquired businesses that operate in industries outside of our core market; effects of competition on our software and service pricing and our business; time and expenses associated with customers switching from competitive software and services to our software and services; rapid technology changes in our industry; risks associated with operating in multiple countries; risks associated with a diversified business; effects of changes in or violations by us or our customers of government regulations; use of cash to service our debt and effects on our business of restrictive covenants in our bond indentures; our ability to obtain additional financing as necessary to support our operations, including Mission 2020; our reliance on third-party information for our software and services; costs and possible future losses or impairments relating to our acquisitions; the financial impact of future significant restructuring and severance charges; the impact of changes in our tax provision (benefit) or effective tax rate; our ability to pay dividends or repurchase shares in future periods; our dependence on a limited number of key personnel; effects of system failures or security breaches on our business and reputation; and any material adverse impact of current or future litigation on our results or business, including litigation with Mitchell International. For a discussion of these and other factors that could impact our operations or financial results and cause our results to differ materially from those in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, particularly our Quarterly Report on Form 10-Q for the Quarter Ended December 31, 2013. Solera is under no obligation to (and specifically disclaims any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Solera Holdings, Inc.
Kamal Hamid, Investor Relations of Solera Holdings, Inc.,
+1-858-946-1676,
kamal.hamid@solerainc.com
