Exhibit 99.1
Patriot National’s Special Committee of the Board Closes in on Strategic
Opportunity Decision; Company Reports Second Quarter 2016 Results
FORT LAUDERDALE, FL., August 15, 2016 –Patriot National, Inc. (NYSE: PN), (“Patriot National or “the Company”) a leading provider of technology and outsourcing solutions, today announced its financial results for the quarter ended June 30, 2016, and confirmed that the special committee of its Board of Directors (the “Special Committee”) is in the final stages of its consideration of possible strategic opportunities.
Strategic Opportunities Consideration
The Special Committee, which is comprised of independent directors, is working collaboratively with Ebix, Inc. to explore the possible combination of the two businesses, while continuing to explore other available strategic opportunities for Patriot National to maximize value for shareholders. Ebix is expected to complete its due diligence by August 31, 2016, as the Special Committee nears the conclusion of its evaluation of the prospects it has received and expects to make a recommendation to the Board of Directors soon on whether the Company should enter into any transaction or pursue another alternative. As announced August 1, 2016, Ebix made an improved offer to acquire 100% of the outstanding stock of the Company.
Financial Highlights:
For the quarter ended June 30, 2016:
(Comparisons to the corresponding prior-year period)
| • | Total Revenues increased 19% to $56.5 million |
| • | Total Fee Income increased 19% to $56.5 million |
| • | GAAP Net Income was $14.2 million, or $0.45 per diluted share |
| • | Adjusted Earnings1 of $2.8 million, or $0.11 per diluted share |
| • | Adjusted EBITDA1 of $10.7 million, down 6% |
| • | Operating Cash Flow1of $8.5 million, down 7% |
| • | Launched operating efficiency initiatives that will generate an additional $5.3 million annualized savings |
| 1 | See Reconciliation of GAAP net income to Adjusted EBITDA, Adjusted Earnings and Operating Cash Flow in the accompanying financial tables. |
Management Commentary
“During the second quarter, we continued to execute on our strategy of becoming the leading end-to-end technology-enabled services provider to the insurance industry. While the second quarter is always a seasonably low quarter for our company, we continue to be extremely optimistic about our ability to drive significant organic revenue and EBITDA growth through the second half of 2016, as well as full year 2017,” saidSteven M. Mariano, Chief Executive Officer of Patriot National. “Our sales pipeline remains strong and we are focused on driving top-line growth and profitability by expediting new carrier agreements and technology wins as well as significantly reducing our cost structure.”
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“We have built a powerful operating platform to support our long-term growth, with comprehensive technology and outsourcing solutions that are highly valued by our customers. Our roadmap for the future focuses on leveraging our deep customer relationships and broad product portfolio to serve a greater share of our customers’ needs. We are also focused on continuing to deliver innovative technology solutions such as our InsurePay automated payroll solution and our Insurance Expert software platform.”
Operating Results
Three Months Ended June 30, 2016
Total fee income was $56.5 million for the second quarter of 2016, an increase of 19.2% compared with $47.4 million in the second quarter of 2015. The increase in fee income during the second quarter of 2016 was primarily due to the Company’s acquisitions in the trailing twelve months ended June 30, 2016. Organic fee income of $47.3 million did not change significantly year-over-year.
Total expenses for the second quarter of 2016 were $52.3 million, compared with $46.0 million in the second quarter of 2015. The increase was largely attributable to the acquisitions closed during the trailing twelve months ended June 30, 2016.
Second quarter 2016 GAAP net income was $14.2 million, or $0.45 per diluted share, which included an income tax benefit as a result of the release of the valuation adjustment for Deferred Tax Asset of $12.5 million. This compares with $1 million, or $0.04 per diluted share, in the second quarter of 2015. The weighted average diluted shares were 31.6 million on a GAAP basis, which includes 5.0 million shares relating to the warrants associated with the PIPE financing as discussed in the Company’s previous 10-Q (the “Warrants”); and 26.6 million shares excluding the Warrants on a non-GAAP basis respectively. It is important to note that pursuant to the Back-to-Back Agreement between the Company and Mr. Mariano, Mr. Mariano has agreed to tender any shares back to the Company for any shares delivered by the Company pursuant to the Warrant Agreement.
Adjusted earnings for the second quarter of 2016 were $2.8 million, or $0.11 per diluted share, compared with Adjusted earnings of $4.5 million, or $0.17 per diluted share, in the second quarter of 2015. In calculating the weighted average diluted shares, the Warrants mentioned above have been excluded. Patriot National defines Adjusted earnings and Adjusted earnings per share as net income (loss) adjusted for cost for debt payoff, non-cash stock compensation costs, net realized gains (losses) on investments, increase (decrease) in fair value of warrant redemption liability, acquisition costs, severance expense, public offering costs and the income tax effect related to reconciling items.
Adjusted EBITDA for the second quarter of 2016 was $10.7 million, compared to Adjusted EBITDA of $11.4 million for the second quarter of 2015. Patriot National defines Adjusted EBITDA as net income (loss) adjusted for income tax, interest, depreciation and amortization, net realized gains (losses) on investments, increase (decrease) in fair value of warrant redemption liability, costs for debt payoff, non-cash stock compensation costs, acquisition costs, severance expense and public offering costs.
Operating Cash Flow for the second quarter of 2016 was $8.5 million, compared to $9.2 million for the second quarter of 2015. Patriot National defines Operating Cash Flow as Adjusted EBITDA less income tax expense, interest expense and capital expenditures.
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Summary Financial Results
Financial Summary
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended June 30, | ||||||||||||
In thousands, except per share amounts | 2016 | 2015 | Change | |||||||||
Total Revenues GAAP | $ | 56,470 | $ | 47,332 | 19.3 | % | ||||||
Total Fee Income | $ | 56,470 | $ | 47,388 | 19.2 | % | ||||||
Organic | $ | 47,267 | $ | 47,388 | (0.3 | %) | ||||||
Acquisitions | $ | 9,203 | $ | — | n/a | |||||||
Net Income (Loss) GAAP | $ | 14,159 | $ | 1,020 | n/a | |||||||
Earnings (Loss) per diluted share | $ | 0.45 | $ | 0.04 | n/a | |||||||
Adjusted EBITDA | $ | 10,681 | $ | 11,381 | (6.2 | %) | ||||||
Adjusted EBITDA margins | 18.9 | % | 24.0 | % | (21.2 | %) | ||||||
Adjusted Earnings | $ | 2,798 | $ | 4,490 | (37.7 | %) | ||||||
Adjusted Earnings Diluted EPS | $ | 0.11 | $ | 0.17 | (35.3 | %) | ||||||
Operating Cash Flow | $ | 8,478 | $ | 9,152 | (7.4 | %) | ||||||
Reconciliation of GAAP to Non-GAAP Financial Measures is provided in the following financial tables.
Balance Sheet and Liquidity
At June 30, 2016, the Company had liquidity of $58.2 million, comprised of $12.1 million in cash on hand and $6.1 million available under the revolving credit facility. Additionally, the Company’s credit facility provides for an incremental $40 million term loan through an accordion feature.
At June 30, 2016, the Company had total debt of $138.7 million inclusive of capital lease obligations and deferred financing charges. The Company’s leverage ratio, comprised of total debt to trailing 12 months Adjusted EBITDA (including the proforma effect from acquisitions), was 2.4x.
On March 3, 2016, Patriot National’s board approved a $15 million share repurchase program for the Company’s common stock. To date, the Company has repurchased 1.4 million shares.
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Outlook for 2016 Financial Guidance
Patriot National has updated the Company’s prior financial guidance for 2016. For the full year ending December 31, 2016, Patriot National currently expects the following financial results.
| (millions) | 2016 Range | |||
Total Fee Income | $ | 258 - $269 | ||
GAAP Net Income | $ | 32 - $35 | ||
Adjusted Earnings | $ | 25 - $28 | ||
Adjusted EBITDA | $ | 66 - $71 | ||
Operating Cash Flows | $ | 45 - $48 | ||
Conference Call and Webcast
A conference call and audio webcast with analysts and investors will be held on Monday, August 15 at 9 a.m. Eastern Time, to discuss the results and answer questions.
| • | Live conference call: 844-881-0136 (domestic) or 412-317-6745 (international) |
| • | Conference call replay available through June 3, 2016: 877-344-7529 (domestic) or 412-317-0088 (international) |
| • | Replay access code: 10090984 |
| • | Live and archived webcast:ir.patnat.com |
About Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, this press release provides information regarding Adjusted earnings and earnings per share (non-GAAP adjusted), Operating Cash Flow and Adjusted EBITDA.
A reconciliation of GAAP net income (loss) to both Adjusted earnings and Adjusted EBITDA can be found in the accompanying table. Adjusted earnings and earnings per share, Operating Cash Flow and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. Patriot National compensates for these limitations by relying primarily on its GAAP results and using Adjusted earnings and earnings per share, Operating Cash Flow and Adjusted EBITDA only as a supplement.
We have presented Adjusted earnings and earnings per share, Operating Cash Flow and Adjusted EBITDA in this release because they are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted earnings and earnings per share, Operating Cash Flow
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and Adjusted EBITDA can provide useful measures for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted earnings and earnings per share, Operating Cash Flow and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Adjusted earnings and earnings per share, Operating Cash Flow and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:
| • | Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future; |
| • | Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs or tax payments that may represent a reduction in cash available to us; |
| • | Operating Cash Flow does not reflect changes in working capital that may represent a reduction in cash available to us; and |
| • | Other companies, including companies in our industry, may calculate Adjusted Earnings or Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure. |
About Patriot National
Patriot National, Inc. is a national provider of comprehensive technology and outsourcing solutions that help insurance companies and employers mitigate risk, comply with complex regulations and save time and money. Patriot National provides general agency services, technology outsourcing, software solutions, specialty underwriting and policyholder services, claims administration services, self-funded health plans and employment pre-screening services to its insurance carrier clients, employers and other clients. Patriot National is headquartered in Fort Lauderdale, Florida. For more information about Patriot National, please visitwww.patnat.com.
Forward Looking Statements
This press release may include statements that may be deemed to be forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “Guidance,” and similar expressions are used to identify these forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties, and there are important factors that could cause actual results to differ materially from those indicated in these statements, including the potential that revenue, net income or Adjusted EBITDA could finally be determined to be below the range discussed in this press release. For example, we may not be able to place insurance policies for our clients, our expenses may be higher than we expect, we may have difficulty integrating new acquisitions, new acquisitions may not perform as anticipated, as well as those matters contained in our filings with the Securities and Exchange Commission. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance or events and that results may differ materially from statements made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statement that we may make in this press release speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking statement or to publicly announce the results of any revision to any of those statements to reflect future events or developments.
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Media and Investor Contacts:
Cindy Campbell
Director of Investor Relations
Patriot National, Inc.
(954) 670-2907
CCampbell@patnat.com
Julie MacMedan
Financial Profiles, Inc.
(310) 622-8242
PatriotNational@finprofiles.com
# # #
FINANCIAL TABLES TO FOLLOW
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Patriot National, Inc.
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In thousands, except per share amounts | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | ||||||||||||||||
Total Fee Income | $ | 56,470 | $ | 47,388 | $ | 121,337 | $ | 90,380 | ||||||||
Net investment income | — | 35 | 35 | 36 | ||||||||||||
Net losses on investments | — | (91 | ) | (295 | ) | (91 | ) | |||||||||
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Total Revenues | 56,470 | 47,332 | 121,077 | 90,325 | ||||||||||||
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Expenses | ||||||||||||||||
Salaries and related expenses | 22,341 | 17,765 | 45,981 | 32,233 | ||||||||||||
Commission expense | 10,991 | 8,494 | 24,127 | 17,383 | ||||||||||||
Outsourced services | 3,625 | 2,792 | 7,195 | 5,254 | ||||||||||||
Other operating expenses | 9,501 | 6,954 | 19,298 | 13,285 | ||||||||||||
Acquisition costs | 411 | 2,315 | 1,025 | 2,919 | ||||||||||||
Interest expense, including deferred loan fees | 1,376 | 605 | 2,788 | 1,863 | ||||||||||||
Depreciation and amortization | 4,700 | 3,392 | 9,417 | 5,695 | ||||||||||||
Stock compensation expense | 1,277 | 3,670 | 2,701 | 6,205 | ||||||||||||
Costs related to extinguishment of debt | — | — | — | 13,681 | ||||||||||||
Decrease in fair value of warrant redemption liability | — | — | — | (1,385 | ) | |||||||||||
Decrease in fair value of earn-out liability | (1,932 | ) | — | (1,932 | ) | — | ||||||||||
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Total Expenses | 52,290 | 45,987 | 110,600 | 97,133 | ||||||||||||
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Net income (loss) before income tax expense | 4,180 | 1,345 | 10,477 | (6,808 | ) | |||||||||||
Income tax (benefit) expense | (10,007 | ) | 288 | (7,148 | ) | (3,064 | ) | |||||||||
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Net Income (Loss) Including Non-Controlling Interest in Subsidiary | 14,187 | 1,057 | 17,625 | (3,744 | ) | |||||||||||
Net income attributable to non-controlling interest in subsidiary | 28 | 37 | 65 | 52 | ||||||||||||
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Net Income (Loss) | $ | 14,159 | $ | 1,020 | $ | 17,560 | $ | (3,796 | ) | |||||||
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Earnings (Loss) Per Common Share | ||||||||||||||||
Basic | $ | 0.46 | $ | 0.04 | $ | 0.60 | $ | (0.15 | ) | |||||||
Diluted | 0.45 | 0.04 | 0.59 | (0.15 | ) | |||||||||||
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Weighted Average Common Shares | ||||||||||||||||
Basic | 30,903 | 26,390 | 29,155 | 25,601 | ||||||||||||
Diluted | 31,640 | 26,793 | 29,807 | 25,601 | ||||||||||||
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Consolidated Balance Sheets
(In thousands)
(Unaudited)
| June 30, | December 31, | |||||||
In thousands | 2016 | 2015 | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | $ | 12,117 | $ | 8,372 | ||||
Short term investments | — | 3,173 | ||||||
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Total cash and investments | 12,117 | 11,545 | ||||||
Restricted cash | 20,769 | 16,055 | ||||||
Fee income receivable | 8,408 | 8,159 | ||||||
Fee income receivable from related party | 27,239 | 27,036 | ||||||
Net receivable from related parties | 1,622 | 499 | ||||||
Other current assets | 2,450 | 2,046 | ||||||
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Total current assets | 72,605 | 65,340 | ||||||
Fixed assets, net | 5,018 | 5,092 | ||||||
Goodwill | 121,688 | 118,141 | ||||||
Intangible assets | 78,859 | 75,681 | ||||||
Forward purchase asset | 51,883 | 28,120 | ||||||
Deferred tax asset, net | 12,529 | — | ||||||
Advance on facilitation agreement | 1,770 | 2,000 | ||||||
Other long term assets | 11,337 | 11,428 | ||||||
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Total Assets | $ | 355,689 | $ | 305,802 | ||||
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Liabilities and Stockholders’ Equity (Deficit) | ||||||||
Liabilities | ||||||||
Deferred claims administration services income | $ | 9,743 | $ | 10,639 | ||||
Net advanced claims reimbursements | 3,723 | 1,835 | ||||||
Income taxes payable | 3,751 | 2,996 | ||||||
Current earn-out payable | 6,145 | 10,556 | ||||||
Accounts payable, accrued expenses and other liabilities | 39,198 | 32,809 | ||||||
Deferred purchase consideration | 500 | 6,128 | ||||||
Revolver borrowings outstanding | 33,932 | 18,032 | ||||||
Current portion of notes payable | 6,188 | 5,500 | ||||||
Current portion of capital lease obligation | 1,025 | 2,232 | ||||||
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Total current liabilities | 104,205 | 90,727 | ||||||
Earn-out payable | 6,837 | 1,827 | ||||||
Notes payable, net of deferred loan fees of $2,203 and $2,352 | 95,359 | 98,648 | ||||||
Warrant redemption liability | 51,883 | 28,120 | ||||||
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Total liabilities | 258,284 | 219,322 | ||||||
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Stockholders’ Equity (Deficit) | ||||||||
Total Patriot National, Inc. Stockholders’ Equity (Deficit) | 97,575 | 86,715 | ||||||
Less non-controlling interest | (170 | ) | (235 | ) | ||||
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Total Stockholders’ Equity (Deficit) | 97,405 | 86,480 | ||||||
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Total Liabilities and Stockholders’ Equity (Deficit) | $ | 355,689 | $ | 305,802 | ||||
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Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Reconciliation from Net Income (Loss) to Adjusted EBITDA: | ||||||||||||||||
Net Income (Loss) | $ | 14,159 | $ | 1,020 | $ | 17,560 | $ | (3,796 | ) | |||||||
Income tax (benefit) expense | (10,007 | ) | 288 | (7,148 | ) | (3,064 | ) | |||||||||
Interest expense | 1,376 | 605 | 2,788 | 1,863 | ||||||||||||
Depreciation and amortization | 4,700 | 3,392 | 9,417 | 5,695 | ||||||||||||
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EBITDA | 10,228 | 5,305 | 22,617 | 698 | ||||||||||||
Net losses on investments | — | 91 | 295 | 91 | ||||||||||||
Severance expense | 316 | — | 1,243 | — | ||||||||||||
Stock compensation expense | 1,277 | 3,670 | 2,701 | 6,205 | ||||||||||||
Acquisition costs | 411 | 2,315 | 1,025 | 2,919 | ||||||||||||
Non-recurring claims cost | 300 | — | 300 | — | ||||||||||||
Costs related to extinguishment of debt | — | — | — | 13,681 | ||||||||||||
Decrease in fair value of warrant redemption liability | — | — | — | (1,385 | ) | |||||||||||
Decrease in fair value of earn-out liability | (1,932 | ) | — | (1,932 | ) | — | ||||||||||
Public offering costs | 81 | — | 91 | — | ||||||||||||
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Adjusted EBITDA | $ | 10,681 | $ | 11,381 | $ | 26,340 | $ | 22,209 | ||||||||
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Calculation of Adjusted EBITDA margins: | ||||||||||||||||
Total Fee Income | $ | 56,470 | $ | 47,388 | $ | 121,337 | $ | 90,380 | ||||||||
Adjusted EBITDA | $ | 10,681 | $ | 11,381 | $ | 26,340 | $ | 22,209 | ||||||||
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Adjusted EBITDA margins | 18.9 | % | 24.0 | % | 21.7 | % | 24.6 | % | ||||||||
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In thousands, except per share amounts | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Reconciliation from Net Income (Loss) to Adjusted Earnings: | ||||||||||||||||
Net Income (Loss) | $ | 14,159 | $ | 1,020 | $ | 17,560 | $ | (3,796 | ) | |||||||
Net income attributable to non-controlling interest in subsidiary | 28 | 37 | 65 | 52 | ||||||||||||
Income tax (benefit) expense | (10,007 | ) | 288 | (7,148 | ) | (3,064 | ) | |||||||||
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Net income (loss) before income tax expense | 4,180 | 1,345 | 10,477 | (6,808 | ) | |||||||||||
Adjustments to Net income (loss) before income tax expense: | ||||||||||||||||
Net losses on investments | — | 91 | 295 | 91 | ||||||||||||
Severance expense | 316 | — | 1,243 | — | ||||||||||||
Stock compensation expense | 1,277 | 3,670 | 2,701 | 6,205 | ||||||||||||
Acquisition costs | 411 | 2,315 | 1,025 | 2,919 | ||||||||||||
Non-recurring claims cost | 300 | — | 300 | — | ||||||||||||
Costs related to extinguishment of debt | — | — | — | 13,681 | ||||||||||||
Decrease in fair value of warrant redemption liability | — | — | — | (1,385 | ) | |||||||||||
Decrease in fair value of earn-out liability | (1,932 | ) | — | (1,932 | ) | — | ||||||||||
Public offering costs | 81 | — | 91 | — | ||||||||||||
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Total | 453 | 6,076 | 3,723 | 21,511 | ||||||||||||
Adjusted net income before income tax expense | 4,633 | 7,421 | 14,200 | 14,703 | ||||||||||||
Income tax expense at statutory rate | 1,807 | 2,894 | 5,538 | 5,734 | ||||||||||||
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Adjusted Net Income Including Non-Controlling Interest in Subsidiary | 2,826 | 4,527 | 8,662 | 8,969 | ||||||||||||
Net income attributable to non-controlling interest in subsidiary | 28 | 37 | 65 | 52 | ||||||||||||
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Adjusted Earnings | $ | 2,798 | $ | 4,490 | $ | 8,597 | $ | 8,917 | ||||||||
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Calculation of Adjusted Earnings Per Common Share | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.17 | $ | 0.32 | $ | 0.35 | ||||||||
Diluted | 0.11 | 0.17 | 0.32 | 0.35 | ||||||||||||
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Weighted Average Common Shares Outsanding | ||||||||||||||||
Basic | 26,390 | 26,390 | 26,898 | 25,601 | ||||||||||||
Diluted | 26,639 | 26,793 | 27,063 | 25,601 | ||||||||||||
Statutory Tax Rate | 39.0 | % | 39.0 | % | 39.0 | % | 39.0 | % | ||||||||
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| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Reconciliation from Net Income (Loss) to Operating Cash Flow: | ||||||||||||||||
Net Income (Loss) | $ | 14,159 | $ | 1,020 | $ | 17,560 | $ | (3,796 | ) | |||||||
Income tax (benefit) expense | (10,007 | ) | 288 | (7,148 | ) | (3,064 | ) | |||||||||
Interest expense | 1,376 | 605 | 2,788 | 1,863 | ||||||||||||
Depreciation and amortization | 4,700 | 3,392 | 9,417 | 5,695 | ||||||||||||
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EBITDA | 10,228 | 5,305 | 22,617 | 698 | ||||||||||||
Net losses on investments | — | 91 | 295 | 91 | ||||||||||||
Severance expense | 316 | — | 1,243 | — | ||||||||||||
Stock compensation expense | 1,277 | 3,670 | 2,701 | 6,205 | ||||||||||||
Acquisition costs | 411 | 2,315 | 1,025 | 2,919 | ||||||||||||
Non-recurring claims cost | 300 | — | 300 | — | ||||||||||||
Costs related to extinguishment of debt | — | — | — | 13,681 | ||||||||||||
Decrease in fair value of warrant redemption liability | — | — | — | (1,385 | ) | |||||||||||
Decrease in fair value of earn-out liability | (1,932 | ) | — | (1,932 | ) | — | ||||||||||
Public offering costs | 81 | — | 91 | — | ||||||||||||
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Adjusted EBITDA | 10,681 | 11,381 | 26,340 | 22,209 | ||||||||||||
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Less: Income tax expense | — | (288 | ) | — | — | |||||||||||
Less: Cash interest expense | (1,216 | ) | (546 | ) | (2,476 | ) | (1,719 | ) | ||||||||
Less: Purchase of fixed assets and other long-term assets | (987 | ) | (1,395 | ) | (2,211 | ) | (2,824 | ) | ||||||||
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Operating Cash Flow(1) | $ | 8,478 | $ | 9,152 | $ | 21,653 | $ | 17,666 | ||||||||
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| (1) | Operating Cash Flow is defined as Adjusted EBITDA less income tax expense, interest expense, and capital expenditures |