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IntraLinks Announces Fourth Quarter and Full Year 2010 Results
Fourth Quarter Results Exceed Expectations Across All Key Metrics; 2010 Revenue Grows by 31%
NEW YORK, NY – February 17, 2011 – IntraLinks Holdings, Inc. (NYSE: IL), a leading provider of critical information exchange solutions, today announced results for its fourth quarter and full year of 2010.
Financial highlights for the fourth quarter include:
| | § | Total revenue of $52.1 million, up 33% year-over-year |
| | § | Enterprise revenue of $23.0 million, up 39% year-over-year |
| | § | M&A revenue of $20.0 million, up 46% year-over-year |
| | § | GAAP net income of $1.0 million or $0.02 per share, compared to GAAP net loss of ($4.6) million or ($2.53) per share, in the prior year |
| | § | Non-GAAP adjusted net income of $7.4 million or $0.14 per share, compared to non-GAAP net income of $0.4 million or $0.01 per share, in the prior year |
| | § | Non-GAAP adjusted EBITDA of $19.9 million, an increase of 93%, compared to $10.3 million in the prior year |
| | § | Cash flow from operations of $19.4 million, an increase of 131%, compared to $8.4 million in the prior year |
| | § | Further repayment of $32.7 million of debt as a result of the follow-on stock offering during the fourth quarter |
“The fourth quarter represented a strong finish to a record year for IntraLinks,” said Andrew Damico, IntraLinks’ President and CEO. “The company’s momentum and profitability during 2010 was driven by significant growth in our Enterprise and Mergers and Acquisitions businesses. The increasing recognition of the value of our cloud-based solutions puts us in a strong position for 2011 and beyond.”
“The successful completion of our follow-on stock offering during the fourth quarter enabled IntraLinks to further improve its capital structure, leading to a lower debt balance and reduced interest expense moving forward,” said Anthony Plesner, IntraLinks’ CFO. “We believe that IntraLinks has the market opportunity, leadership position and infrastructure to build a large and highly profitable company, as reflected by our increased 2011 guidance.”
Fourth Quarter 2010
Total revenue was $52.1 million, an increase of 33%, compared to $39.2 million for the same period last year
| | § | Enterprise revenue was $23.0 million compared to $16.5 million last year, up 39% year-over-year |
| | § | M&A revenue was $20.0 million compared to $13.7 million last year, up 46% year-over-year |
GAAP gross margin was 75.9%, an increase of 460 basis points (“bps”) compared to 71.3% for the same period last year.
Non-GAAP gross margin was 82.4%, an increase of 260 bps compared to 79.8% for the same period last year.
GAAP operating income was $6.3 million, compared to a GAAP operating loss of ($0.6) million for the same period a year ago. GAAP operating income in the fourth quarter of 2010 included one-time costs of $0.2 million related to the company’s follow-on stock offering.
Non-GAAP adjusted operating income was $15.0 million, compared to $7.3 million for the same period a year ago. Non-GAAP adjusted operating income was adjusted for one-time costs of $0.2 million described in the previous paragraph.
GAAP net income was $1.0 million, compared to a GAAP net loss of ($4.6) million for the same period a year ago. GAAP net income for the fourth quarter of 2010 included one-time costs of $1.6 million associated with the company’s follow-on stock offering and the subsequent debt repayment. Basic and diluted GAAP net income per share for the fourth quarter was $0.02 on the basis of 50.1 million and 51.8 million shares outstanding, respectively. In the prior year comparable period, basic and diluted GAAP net loss per share was ($2.53) on the basis of 1.8 million shares outstanding.
The company generated non-GAAP adjusted net income of $7.4 million, compared to non-GAAP net income of $0.4 million for the same period a year ago. Non-GAAP adjusted net income in the fourth quarter of 2010 was adjusted to exclude one-time costs of $1.6 million described in the previous paragraph. Non-GAAP adjusted net income per share was $0.14 on the basis of 53.4 million shares outstanding. In the prior year comparable period, non-GAAP net income per share was $0.01 on the basis of 52.1 million shares outstanding. Shares outstanding are on a diluted, pro forma basis, assuming that the conversion of outstanding preferred stock to common stock and the initial and follow-on offerings of common stock occurred at the beginning of each respective period.
Non-GAAP adjusted EBITDA was $19.9 million, or 38.1% of revenue representing an increase of 93%, compared to $10.3 million or 26.3% of revenue for the same period a year ago.
Cash flow from operations was $19.4 million, an increase of 131%, compared to $8.4 million in the prior year.
Full Year 2010
Total revenue was $184.3 million, an increase of 31%, compared to $140.7 million in the prior year
| | § | Enterprise revenue was $82.8 million compared to $55.4 million last year, up 49% year-over-year |
| | § | M&A revenue was $68.6 million compared to $50.7 million last year, up 35% year-over-year |
GAAP gross margin was 74.2%, an increase of 880 bps compared to 65.4% in the prior year.
Non-GAAP gross margin was 81.5%, an increase of 240 bps compared to 79.1% in the prior year.
GAAP operating income was $11.2 million, compared to a GAAP operating loss of ($3.4) million in the prior year. GAAP operating income for 2010 included one-time costs of $1.4 million associated with the company’s initial public and follow-on offerings.
Non-GAAP adjusted operating income was $45.6 million, compared to $33.5 million in the prior year. Non-GAAP adjusted operating income for 2010 was adjusted for one-time costs of $1.4 million described in the previous paragraph.
GAAP net loss was ($12.4) million, compared to ($24.8) million in the prior year. Basic and diluted GAAP net loss per share for the full year 2010 was ($0.58) on the basis of 21.3 million shares outstanding, compared to ($15.38) on the basis of 1.6 million shares outstanding in the prior year. GAAP net loss for 2010 included one-time costs totaling $8.4 million associated with the company’s initial public and follow-on offerings and the subsequent debt repayments.
The company generated non-GAAP adjusted net income of $13.7 million in 2010, compared to a non-GAAP net loss of ($3.8) million in 2009. Non-GAAP adjusted net income for 2010 was adjusted to exclude one-time costs of $8.4 million, described in the previous paragraph. Non-GAAP adjusted net income per share in 2010 was $0.26 on the basis of 53.0 million shares outstanding, compared to a non-GAAP net loss per share of ($0.08) in the prior year on the basis of 50.6 million shares outstanding in the prior year. Shares outstanding are on a diluted, pro forma basis, assuming that the conversion of outstanding preferred stock to common stock and the initial and follow-on offerings of common stock occurred at the beginning of each respective period.
Non-GAAP adjusted EBITDA was $62.6 million, or 33.9% of revenue, representing an increase of 39%, compared to $45.1 million, or 32.0% of revenue, for the prior year.
Cash flow from operations was $ 35.4 million, an increase of $ 10.3 million, or 41%, compared to $ 25.1 million in the prior year.
Deferred revenue on the balance sheet at December 31, 2010 was $ 38.0 million, an increase of 42% on a year-over-year basis.
During the fourth quarter the company identified an adjustment to its income-tax benefit for the three months ended September 30, 2010, resulting in a $1.5 million overstatement of the benefit. The company will reflect this adjustment in the quarterly information in its Form 10-K for the year ended December 31, 2010, and for the relevant prior year period in its Form 10-Q for the quarter ending September 30, 2011.
2010 Business Highlights:
| | § | 104% dollar renewal rate on subscription contracts compared to 93% for the prior year |
| | § | Subscription business represented 59% of total revenues in 2010 |
| | § | Signed 461 new Enterprise customers in 2010 |
| | § | Signed 2,467 new M&A contracts in 2010 |
| | § | Credit rating upgrade by Standard and Poor’s (B to B+) and Moody’s (B2 to B1) |
Business Outlook:
Based on information available as of February 17, 2011, IntraLinks is providing guidance for the first quarter 2011 and full year 2011 as follows:
First Quarter 2011
Revenue: $52 million to $54 million
GAAP operating income: $0.5 million to $2.5 million
Non-GAAP operating income: $10 million to $11.5 million
Non-GAAP adjusted EBITDA: $15 million to $16.5 million
GAAP net (loss) income per share: ($0.01) to $0.01
Non-GAAP net income per share: $0.09 to $0.11
Full Year 2011
Revenue: $215 million to $225 million
GAAP operating income: $21 million to $23 million
Non-GAAP operating income: $52 million to $58 million
Non-GAAP adjusted EBITDA: $73 million to $78 million
GAAP net income per share: $0.12 to $0.14
Non-GAAP net income per share: $0.50 to $0.57
Quarterly Conference Call
IntraLinks will host a conference call today at 9:00 a.m. Eastern Time (ET) to discuss the company’s fourth quarter 2010 financial results and its business outlook for the first quarter and full year 2011, which may include guidance supplemental to the above. To access this call, dial 800-992-7413 (domestic) or 719-325-2483 (international). A passcode is not required. This presentation will also be webcast live on the investor relations section on the IntraLinks website at www.intralinks.com/ir. In conjunction with this call, there will also be accompanying slides with supplemental information available at the same website location.
Following the conference call, a replay will be available until February 24, 2011, at 877-870-5176 (domestic) or 858-384-5517 (international). The passcode for the replay is 2273502. An archived webcast of this conference call will also be available on the investor relations section on the IntraLinks website at www.intralinks.com/ir.
About IntraLinks
IntraLinks (NYSE: IL) is a leading global provider of Software-as-a-Service solutions for securely managing content, exchanging critical business information and collaborating within and among organizations. More than 1 million professionals in industries including financial services, pharmaceutical, biotechnology, consumer, energy, industrial, legal, insurance, real estate and technology, as well as government agencies, have utilized IntraLinks' easy-to-use, cloud-based solutions. IntraLinks users can accelerate information-intensive business processes and workflows, meet regulatory and risk management requirements and collaborate with customers, partners and counterparties in a secure, auditable and compliant manner. Professionals at more than 800 of the Fortune 1000 companies have used IntraLinks’ solutions. For more information, visit www.intralinks.com or http://blog.intralinks.com. You can also follow IntraLinks on Twitter at http://twitter.com/intralinks and Facebook at www.facebook.com/IntraLinks.
Non-GAAP Financial Measures
The Press Release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”), including non-GAAP gross profit and margin, non-GAAP adjusted operating income and margin, non-GAAP adjusted net income, non-GAAP adjusted net income per share and non-GAAP adjusted EBITDA and margin. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.
Management defines its non-GAAP financial measures as follows:
| | § | Non-GAAP gross profit represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense and (2) amortization of intangible assets. |
| | § | Non-GAAP adjusted operating income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets and (3) one-time costs related to initial public and follow-on offerings. |
| | § | Non-GAAP adjusted net income and non-GAAP adjusted net income per share represent the corresponding GAAP measures adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, (3) one-time costs related to our initial public and follow on offerings and (4) one-time costs related to debt repayments. Non-GAAP adjusted net income and non-GAAP adjusted net income per share are calculated using an estimated long-term effective tax rate. |
| | § | Non-GAAP per share measures are shown on a pro-forma basis, assuming the conversion of preferred shares and public offerings occurred at the beginning of the respective periods. |
| | § | Non-GAAP adjusted EBITDA represents net income (loss) adjusted to exclude (1) interest expense, net of interest income, (2) income tax provision (benefit), (3) depreciation and amortization, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) amortization of debt issuance costs, (7) loss on extinguishment of debt, (8) other (income) expense and (9) one-time costs related initial public and follow on offerings. |
| | § | The various non-GAAP margins represent the respective non-GAAP measures as a percentage of revenue. |
Management believes that these non-GAAP financial measures, when viewed with our results under U.S. GAAP and the accompanying reconciliations, provide useful information about our period-over-period growth and provide additional information that is useful for evaluating our operating performance. Additionally, management believes that these non-GAAP financial measures provide a more meaningful comparison of our operating results against those of other companies in our industry, as well as on a period-to-period basis, because these measures exclude items that are not representative of our operating performance, such as amortization of intangible assets, interest expense and fair value adjustments to the interest rate swap. Management believes that including these costs in our results of operations results in a lack of comparability between our operating results and those of our peers in the industry, the majority of which are not highly leveraged and do not have comparable amortization costs related to intangible assets. However, non-GAAP gross profit and margin, non-GAAP adjusted operating income and margin, non-GAAP adjusted net income, non-GAAP adjusted net income per share and non-GAAP adjusted EBITDA and margin are not measures of financial performance under U.S. GAAP and, accordingly, should not be considered as alternatives to gross profit and margin, operating income (loss) and margin, net income (loss) or net income (loss) per share as indicators of operating performance.
A reconciliation of GAAP to Non-GAAP financial measures has been provided in the financial statement tables included in the Press Release.
Forward Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements that are not based on historical information relating to, among other things, expectations and assumptions concerning management's forecast of financial performance, future business growth, and management's plans, objectives, and strategies. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: the uncertainty of our future profitability; our ability to sustain positive cash flow; periodic fluctuations in our operating results; risks related to our substantial debt balances; our ability to maintain the security and integrity of our systems; our ability to increase our penetration in our principal existing markets and expand into additional markets; our dependence on the volume of financial and strategic business transactions; our dependence on customer referrals; our ability to maintain and expand our direct sales capabilities; our ability to develop and maintain strategic relationships to sell and deliver our solutions; customer renewal rates; our ability to maintain the compatibility of our services with third-party applications; competition and our ability to maintain our average sales prices; our ability to adapt to changing technologies; interruptions or delays in our service; international risks; our ability to protect our intellectual property; costs of being a public company; and risks related to changes in laws, regulations or governmental policy including tax regulations. Further information on these and other factors that could affect the company’s financial results is contained in our public filings with the Securities and Exchange Commission (SEC) from time to time, including our Registration Statements, as amended, on Form S-1 (File Nos. 333-165991 and 333-170694), which were declared effective by the Securities and Exchange Commission on August 5, 2010 and December 6, 2010, respectively, and subsequent filings with the SEC. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
IntraLinks undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.
IntraLinks and the IntraLinks logo are registered trademarks of IntraLinks Holdings, Inc. All rights reserved.
Investor Contact:
David Roy
IntraLinks
212-342-7690
droy@intralinks.com
Media Relations Contact:
Radley Moss
IntraLinks
212-543-7717
rmoss@intralinks.com
IntraLinks | 150 East 42nd Street | New York, NY 10017 | + 1 212 342 7684 | Fax +1 212 208 2600 | |
____________________________________________
Created by Morningstar Document Research documentresearch.morningstar.comSource: IntraLinks Holdings, Inc., 8-K, October 07, 2010
INTRALINKS HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and per Share Data)
(unaudited)
| | | December 31, | |
| | | 2010 | | | 2009 | |
| ASSETS | | | | | | |
| | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 50,467 | | | $ | 30,481 | |
| Restricted cash | | | - | | | | 87 | |
| Accounts receivable, net of allowances of $2,418 and $2,470, respectively | | | 37,137 | | | | 25,898 | |
| Investments | | | - | | | | 3,414 | |
| Deferred taxes | | | 18,264 | | | | 6,979 | |
| Prepaid expenses and other current assets | | | 9,118 | | | | 6,355 | |
| Total current assets | | | 114,986 | | | | 73,214 | |
| | | | | | | | | |
| Fixed assets, net | | | 8,075 | | | | 7,064 | |
| Capitalized software, net | | | 25,676 | | | | 20,734 | |
| Goodwill | | | 215,478 | | | | 215,478 | |
| Other intangibles, net | | | 160,863 | | | | 189,604 | |
| Other assets | | | 2,022 | | | | 3,247 | |
| Total assets | | $ | 527,100 | | | $ | 509,341 | |
| | | | | | | | | |
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND | | | | | | | | |
| STOCKHOLDERS' EQUITY (DEFICIT) | | | | | | | | |
| Accounts payable | | $ | 4,191 | | | $ | 8,870 | |
| Accrued expenses and other current liabilities | | | 23,189 | | | | 21,958 | |
| Deferred revenue | | | 38,043 | | | | 26,795 | |
| Total current liabilities | | | 65,423 | | | | 57,623 | |
| Long term debt | | | 125,886 | | | | 290,513 | |
| Deferred taxes | | | 46,103 | | | | 42,719 | |
| Other long term liabilities | | | 2,244 | | | | 4,040 | |
| Total liabilities | | | 239,656 | | | | 394,895 | |
| Commitments and contingencies | | | | | | | | |
| Redeemable convertible preferred stock: | | | | | | | | |
| Series A $0.001 par value, 10,000,000 shares authorized; 0 and 35,864,887 shares | | | | | | | | |
| issued and outstanding (liquidation preference of $0 and $176,604) as of December 31, | | | | | | | | |
| 2010 and December 31, 2009, respectively | | | - | | | | 176,478 | |
| Stockholders' equity (deficit) | | | | | | | | |
| Common stock, $0.001 par value; 300,000,000 shares authorized; 52,387,374 and 3,152,669 | | | | | | | | |
| shares issued and outstanding as of December 31, 2010 and December 31, 2009, respectively | | | 52 | | | | 3 | |
| Additional paid-in capital | | | 365,962 | | | | 4,302 | |
| Accumulated deficit | | | (78,813 | ) | | | (66,377 | ) |
| Accumulated other comprehensive income | | | 243 | | | | 40 | |
| Total stockholders' equity (deficit) | | | 287,444 | | | | (62,032 | ) |
| Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | | $ | 527,100 | | | $ | 509,341 | |
| | | | | | | | | |
INTRALINKS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share and per Share Data)
(unaudited)
| | | Three Months Ended | | | Years Ended | |
| | | December 31, | | | December 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| | | | | | | | | | | | | |
| Revenue | | $ | 52,118 | | | $ | 39,176 | | | $ | 184,332 | | | $ | 140,699 | |
| Cost of revenue | | | 12,549 | | | | 11,253 | | | | 47,496 | | | | 48,721 | |
| Gross profit | | | 39,569 | | | | 27,923 | | | | 136,836 | | | | 91,978 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Product development | | | 4,179 | | | | 5,442 | | | | 17,953 | | | | 14,222 | |
| Sales and marketing | | | 20,995 | | | | 15,985 | | | | 79,251 | | | | 59,058 | |
| General and administrative | | | 8,096 | | | | 5,916 | | | | 28,435 | | | | 20,556 | |
| Restructuring costs | | | - | | | | 1,156 | | | | - | | | | 1,494 | |
| Total operating expenses | | | 33,270 | | | | 28,499 | | | | 125,639 | | | | 95,330 | |
| Income (loss) from operations | | | 6,299 | | | | (576 | ) | | | 11,197 | | | | (3,352 | ) |
| Interest expense, net | | | 4,725 | | | | 7,505 | | | | 24,724 | | | | 28,935 | |
| Amortization of debt issuance costs | | | 1,059 | | | | 458 | | | | 3,084 | | | | 1,872 | |
| Loss on extinguishment of debt | | | - | | | | - | | | | 4,974 | | | | - | |
| Other (income) expense | | | (1,515 | ) | | | (1,299 | ) | | | (2,722 | ) | | | 9,027 | |
| Net income (loss) before income tax | | | 2,030 | | | | (7,240 | ) | | | (18,863 | ) | | | (43,186 | ) |
| Income tax provision (benefit) | | | 1,012 | | | | (2,608 | ) | | | (6,427 | ) | | | (18,415 | ) |
| Net income (loss) | | $ | 1,018 | | | $ | (4,632 | ) | | $ | (12,436 | ) | | $ | (24,771 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) per common share - basic | | $ | 0.02 | | | $ | (2.53 | ) | | $ | (0.58 | ) | | $ | (15.38 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) per common share - diluted | | $ | 0.02 | | | $ | (2.53 | ) | | $ | (0.58 | ) | | $ | (15.38 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted average number of shares | | | | | | | | | | | | | | | | |
| used in calculating net income (loss) per share - basic | | | 50,083,596 | | | | 1,832,743 | | | | 21,310,284 | | | | 1,611,090 | |
| | | | | | | | | | | | | | | | | |
| Weighted average number of shares | | | | | | | | | | | | | | | | |
| used in calculating net income (loss) per share - diluted | | | 51,797,179 | | | | 1,832,743 | | | | 21,310,284 | | | | 1,611,090 | |
| | | | | | | | | | | | | | | | | |
INTRALINKS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(unaudited)
| | | Years Ended December 31, | |
| | | 2010 | | | 2009 | | | 2008 | |
| | | | | | | | | | |
| Net loss | | $ | (12,436 | ) | | $ | (24,771 | ) | | $ | (24,598 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | | |
| Depreciation and amortization | | | 16,982 | | | | 11,567 | | | | 4,643 | |
| Stock-based compensation expense | | | 4,215 | | | | 1,938 | | | | 3,792 | |
| Amortization of intangible assets | | | 28,741 | | | | 34,939 | | | | 44,585 | |
| Amortization of debt issuance cost | | | 3,084 | | | | 1,872 | | | | 1,803 | |
| Provision for bad debts and customer credits | | | 519 | | | | 539 | | | | 1,337 | |
| (Loss) gain on disposal of fixed assets, including insurance proceeds | | | (286 | ) | | | 75 | | | | 1,082 | |
| Change in deferred taxes | | | (7,901 | ) | | | (19,341 | ) | | | (16,529 | ) |
| (Gain) loss on interest rate swap | | | (2,778 | ) | | | 8,427 | | | | - | |
| Loss on extinguishment of debt | | | 4,974 | | | | - | | | | - | |
| Non-cash interest expense | | | 5,648 | | | | 8,878 | | | | 10,454 | |
| | | | | | | | | | | | | |
| Changes in operating assets and liabilities: | | | | | | | | | | | | |
| Restricted cash | | | 87 | | | | 509 | | | | 2,060 | |
| Accounts receivable | | | (11,754 | ) | | | (3,479 | ) | | | (155 | ) |
| Prepaid expenses and other current assets | | | (1,080 | ) | | | (2,418 | ) | | | 344 | |
| Other assets | | | (2,783 | ) | | | 89 | | | | 289 | |
| Accounts payable | | | (4,673 | ) | | | 4,685 | | | | (1,263 | ) |
| Accrued expenses and other liabilities | | | 3,436 | | | | (132 | ) | | | (5,437 | ) |
| Deferred revenue | | | 11,395 | | | | 1,695 | | | | 1,250 | |
| Net cash provided by operating activities | | | 35,390 | | | | 25,072 | | | | 23,657 | |
| | | | | | | | | | | | | |
| Cash flows from investing activities: | | | - | | | | - | | | | - | |
| Capital expenditures | | | (6,863 | ) | | | (5,755 | ) | | | (3,004 | ) |
| Capitalized software development costs | | | (16,128 | ) | | | (10,279 | ) | | | (12,391 | ) |
| Purchase of bank time deposits with maturities greater than three months | | | (4,320 | ) | | | - | | | | - | |
| Sale of investments and maturity of bank time deposits greater than three months | | | 7,770 | | | | 50 | | | | 1,000 | |
| Net cash used in investing activities | | | (19,541 | ) | | | (15,984 | ) | | | (14,395 | ) |
| | | | | | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | | | | | |
| Proceeds from exercise of stock options | | | 516 | | | | 94 | | | | 1 | |
| Offering costs paid in connection with initial public offering | | | (2,365 | ) | | | - | | | | - | |
| Capital lease payments | | | (27 | ) | | | (119 | ) | | | (307 | ) |
| Payment of financing costs | | | (1,513 | ) | | | - | | | | (230 | ) |
| Proceeds from initial public offering and follow on offering, including underwriters' overallotment | | | 182,838 | | | | - | | | | - | |
| Repayments of outstanding principal on long-term debt | | | (171,456 | ) | | | (3,210 | ) | | | (1,688 | ) |
| Prepayment penalty on PIK loan | | | (4,092 | ) | | | - | | | | - | |
| Net cash provided by (used in) financing activities | | | 3,901 | | | | (3,235 | ) | | | (2,224 | ) |
| Effect of foreign exchange rate changes on cash and cash equivalents | | | 236 | | | | (43 | ) | | | (38 | ) |
| Net increase in cash and cash equivalents | | | 19,986 | | | | 5,810 | | | | 7,000 | |
| Cash and cash equivalents at beginning of period | | | 30,481 | | | | 24,671 | | | | 17,671 | |
| Cash and cash equivalents at end of period | | $ | 50,467 | | | $ | 30,481 | | | $ | 24,671 | |
| | | | | | | | | | | | | |
INTRALINKS HOLDINGS, INC.
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
(In Thousands, Except Share and per Share Data)
(unaudited)
| | | | Three Months Ended | | Years Ended |
| | | | December 31, | | December 31, |
| | | | | 2010 | | | 2009 | | | 2010 | | | 2009 |
| Non-GAAP gross profit | | | | | | | | | | | | |
| Gross profit | | | 39,569 | | | 27,923 | | | 136,836 | | | 91,978 |
| Gross margin | | | 75.9% | | | 71.3% | | | 74.2% | | | 65.4% |
| Cost of revenue - stock based compensation expense | | | 41 | | | 10 | | | 105 | | | 63 |
| Cost of revenue - amortization of intangible assets | | | 3,310 | | | 3,310 | | | 13,237 | | | 19,304 |
| Non-GAAP gross profit | | $ | 42,920 | | $ | 31,243 | | $ | 150,178 | | $ | 111,345 |
| Non-GAAP gross margin | | | 82.4% | | | 79.8% | | | 81.5% | | | 79.1% |
| | | | | | | | | | | | | | |
| Non-GAAP adjusted operating income | | | | | | | | | | | | |
| Income (loss) from operations | | $ | 6,299 | | $ | (576) | | $ | 11,197 | | $ | (3,352) |
| Stock-based compensation expense | | | 1,369 | | | 692 | | | 4,215 | | | 1,938 |
| Amortization of intangible assets | | | 7,158 | | | 7,218 | | | 28,741 | | | 34,939 |
| One-time costs related to initial public and follow on offerings | | | 195 | | | - | | | 1,416 | | | - |
| Non-GAAP adjusted operating income | | $ | 15,021 | | $ | 7,334 | | $ | 45,569 | | $ | 33,525 |
| Non-GAAP adjusted operating margin | | | 28.8% | | | 18.7% | | | 24.7% | | | 23.8% |
| | | | | | | | | | | | | | |
| Income (loss) from operations as a percentage of total revenue | | | 12.1% | | | -1.5% | | | 6.1% | | | -2.4% |
| | | | | | | | | | | | | | |
| Non-GAAP adjusted net income | | | | | | | | | | | | |
| Net income (loss) before income tax | | $ | 2,030 | | $ | (7,240) | | $ | (18,863) | | $ | (43,186) |
| Stock-based compensation expense | | | 1,369 | | | 692 | | | 4,215 | | | 1,938 |
| Amortization of intangible assets | | | 7,158 | | | 7,218 | | | 28,741 | | | 34,939 |
| One-time costs related to initial public and follow on offerings | | | 195 | | | - | | | 1,416 | | | - |
| One-time costs related to debt repayments | | | 1,402 | | | - | | | 7,011 | | | - |
| Non-GAAP net income (loss) before income tax | | | 12,154 | | | 670 | | | 22,520 | | | (6,309) |
| Non-GAAP income tax provision (benefit) | | | 4,740 | | | 261 | | | 8,783 | | | (2,461) |
| Non-GAAP adjusted net income (loss) | | $ | 7,414 | | $ | 409 | | $ | 13,737 | | $ | (3,848) |
| | | | | | | | | | | | | | |
| Non-GAAP adjusted EBITDA | | | | | | | | | | | | |
| Net income (loss) | | $ | 1,018 | | $ | (4,632) | | $ | (12,436) | | $ | (24,771) |
| Interest expense, net | | | 4,725 | | | 7,505 | | | 24,724 | | | 28,935 |
| Income tax provision (benefit) | | | 1,012 | | | (2,608) | | | (6,427) | | | (18,415) |
| Depreciation and amortization | | | 4,844 | | | 2,957 | | | 16,982 | | | 11,567 |
| Amortization of intangible assets | | | 7,158 | | | 7,218 | | | 28,741 | | | 34,939 |
| Stock-based compensation expense | | | 1,369 | | | 692 | | | 4,215 | | | 1,938 |
| Amortization of debt issuance costs | | | 1,059 | | | 458 | | | 3,084 | | | 1,872 |
| Loss on extinguishment of debt | | | - | | | - | | | 4,974 | | | - |
| Other (income) expense | | | (1,515) | | | (1,299) | | | (2,722) | | | 9,027 |
| One-time costs related to initial public and follow on offerings | | | 195 | | | - | | | 1,416 | | | - |
| Non-GAAP adjusted EBITDA | | $ | 19,865 | | $ | 10,291 | | $ | 62,551 | | $ | 45,092 |
| Non-GAAP adjusted EBITDA margin | | | 38.1% | | | 26.3% | | | 33.9% | | | 32.0% |
| | | | | | | | | | | | | | |
INTRALINKS HOLDINGS, INC.
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES- GUIDANCE
(In Thousands)
(unaudited)
| | | | | Three Months Ending | | Year Ending | |
| | | | | March 31, | | December 31, | |
| | | | | 2011 | | 2011 | |
| Non-GAAP gross margin | | | | | | | |
| Gross profit | | $ | 38,653 | | $ | 166,612 | |
| Gross margin | | | 72.9% | | | 75.7% | |
| | | | | | | | | |
| Cost of revenue- stock-based compensation expense | | | 38 | | | 151 | |
| Cost of revenue- amortization of intangible assets | | | 3,309 | | | 13,237 | |
| Non-GAAP gross profit | | $ | 42,000 | | $ | 180,000 | |
| | | | | | | | | |
| Non-GAAP gross margin | | | 79.2% | | | 81.8% | |
| | | | | | | | | |
| Non-GAAP operating income | | | | | | | |
| Income from operations | | $ | 2,067 | | $ | 20,570 | |
| Stock-based compensation expense | | | 1,526 | | | 5,800 | |
| Amortization of intangible assets | | | 7,157 | | | 28,630 | |
| Non-GAAP operating income | | $ | 10,750 | | $ | 55,000 | |
| | | | | | | | | |
| Non-GAAP operating margin | | | 20.3% | | | 25.0% | |
| | | | | | | | | |
| Income from operations as a percentage of total revenue | | | 3.9% | | | 9.4% | |
| | | | | | | | | |
| Non-GAAP net income | | | | | | | |
| Net (loss) income before income tax | | $ | (250) | | $ | 11,665 | |
| Stock-based compensation expense | | | 1,526 | | | 5,800 | |
| Amortization of intangible assets | | | 7,157 | | | 28,630 | |
| Non-GAAP net income before income tax | | | 8,433 | | | 46,095 | |
| Non-GAAP income tax provision | | | 3,120 | | | 17,055 | |
| Non-GAAP net income | | $ | 5,313 | | $ | 29,040 | |
| | | | | | | | | |
| Non-GAAP adjusted EBITDA | | | | | | | |
| Net (loss) income | | $ | (158) | | $ | 7,349 | |
| Interest expense, net | | | 2,988 | | | 11,763 | |
| Income tax (benefit) provision | | | (93) | | | 4,316 | |
| Depreciation and amortization | | | 5,000 | | | 20,500 | |
| Amortization of intangible assets | | | 7,157 | | | 28,630 | |
| Stock-based compensation expense | | | 1,526 | | | 5,800 | |
| Amortization of debt issuance costs | | | 329 | | | 1,142 | |
| Other income | | | (1,000) | | | (4,000) | |
| Non-GAAP adjusted EBITDA | | $ | 15,750 | | $ | 75,500 | |
| | | | | | | | | |
| Non-GAAP adjusted EBITDA margin | | | 29.7% | | | 34.3% | |
| | | | | | | | | |
| Note: All forward-looking figures presented in this table are stated at the mid-point of the estimated range |
