Q4 Non-GAAP Operating Income increases 46% from prior year
Q4 Non-GAAP Margin increases to 21%
Full Year Revenue of $341 Million, Up 22% from prior year
HERNDON, Va. — (BUSINESS WIRE) — February 9, 2012 — Deltek, Inc. (Nasdaq: PROJ), the leading global provider of enterprise software and information solutions for professional services firms and government contractors, today announced financial results for the quarter and year ended December 31, 2011.
Q4 product revenue was $28.9 million, up 12% from Q4 2010. Total revenue for Q4 was $87.4 million, up 2% from the fourth quarter of 2010.
Q4 product bookings were $36.6 million, a 24% increase from the prior quarter and an 11% increase from the fourth quarter of 2010. Product bookings consist of the aggregate contract value of the Company’s products sold during the quarter through its various licensing models including perpetual, term and subscription.
Q4 subscription and term license revenue was $11.5 million, up 130% from the same quarter a year ago. Maintenance revenue was $40.7 million, up from $36.1 million in the fourth quarter of 2010, an increase of 13%. Consulting and other revenue was $17.8 million, compared to $24.2 million in Q4 2010.
Non-GAAP operating income for the fourth quarter of 2011 was $18.6 million, compared to $12.8 million in Q4 2010, an increase of 46%. Q4 Non-GAAP operating margin was 21%, compared to 14% in Q4 2010. Non-GAAP net income for the fourth quarter of 2011 was $9.7 million, or $0.15 per diluted share, compared to $5.3 million, or $0.08 per diluted share, in Q4 2010.
Q4 GAAP operating income was $7.7 million, compared to a GAAP operating loss of $5.3 million in the prior-year period. Q4 GAAP operating margin was 9%, compared to a GAAP operating margin deficit of 6% in Q4 2010. Q4 GAAP net income was $3 million, or $0.05 per diluted share, compared to a net loss of $7.9 million, or ($0.12) per diluted share, in Q4 2010.
“We had another excellent quarter with record bookings, record product revenue and strong profitability with margins over 20%. Overall, 2011 was a great year with total revenue increasing 22% to $341 million, clearly demonstrating the global market leadership position that Deltek has built over the last several years,” said Kevin Parker, president and CEO of Deltek. “Looking back at the year, we significantly expanded our presence within the broad professional services market, drove strong sales in our core government contracting and A&E markets, grew internationally, launched new solutions and increased our recurring revenue streams by adding additional software delivery models.
“We successfully completed our acquisition integration plan, delivering revenue synergies, improving our cost structure and significantly expanding our margins throughout the year. We enter 2012 with the best portfolio of solutions in the marketplace and flexible delivery mechanisms, positioning us very well for profitable growth in the coming years.”
Comparison of GAAP and Non-GAAP Measurements
Non-GAAP operating income and margin exclude the pre-tax impact of stock-based compensation, amortization of acquired intangible assets, purchase accounting impacts relating to acquisitions, acquisition-related costs, restructuring charges and impairment of certain intangible assets. Non-GAAP net income excludes the same items on a net-of-tax basis as well as loss on extinguishment of debt.
A reconciliation of GAAP to non-GAAP financial measures is provided in the tables at the end of this press release.
Recent Highlights
- Deltek released Costpoint 7, a world-class ERP platform that helps government contractors improve efficiency, increase cash flow, and drive greater profitability. Costpoint 7 delivers new accounting, project management, materials management, content management, security, and payroll capabilities through a next generation service-oriented architecture. Costpoint 7’s web-services based architecture allows customers and partners to integrate with any Costpoint module in real-time from any location, enables the solution to scale for the needs of multi-billion dollar enterprises, and delivers the flexibility to be delivered through a public or private cloud environment.
- Deltek released Deltek Maconomy Business Performance Management. Developed as a seamless extension of the Deltek Maconomy enterprise management system, the new business intelligence solution delivers key business insight through reports, dashboards, and analytics. The solution uniquely empowers individuals across all levels of the organization to view and utilize data to make better, faster decisions.
- Deltek continues to penetrate the Accounting industry within the United States, a key market for its professional services solutions. Key new customers include Smart Devine, a fast-growing accounting and advisory firm, and Blue & Co., one of the Top 100 accounting firms in the nation.
- Deerns, a leading consulting engineering company based in the Netherlands with significant operations in Germany, selected Deltek Vision. Deerns is implementing Deltek Vision across its offices around the globe to increase resource utilization, improve project planning processes and achieve maximum financial and operational insight. Deerns is another in a series of recent Deltek Vision wins in the European marketplace.
- Deltek closed a number of significant deals in the government contracting sector. Key new customers include Guident, a fast growing company that is implementing Deltek’s cloud-based Deltek First solution; Aleut Management Services, an Alaskan native corporation that is using Deltek Costpoint to lower costs, accelerate cash flow, and drive profitability; and Three Saints Bay, a government contractor that purchased Deltek Costpoint to transform its collection of successful but discrete businesses into a single, unified, high-performing organization.
- Cognosante, a healthcare information solutions provider, completed its implementation of GovWin CRM and Deltek Costpoint in less than a year. The fast-growing company is using Deltek to win new business, streamline operations and deliver more profitable projects.
- Deltek has been selected as a winner of the 2012 Washington SmartCEO/Clifton Gunderson Future 50 award. This award recognizes Deltek as one of the Washington, DC area’s 50 fastest-growing companies based on employee and revenue growth over the past three years.
Conference Call Information
Deltek will host a conference call at 5:00 p.m. Eastern Time today to discuss the Company’s fourth quarter and full year 2011 results. The dial-in number for the conference call is 1-877-381-6419 in North America and 1-706-643-9496 outside North America (passcode: 435195587). The conference call also can be accessed through the Investor Relations section of Deltek’s website ( http://investor.deltek.com). Those unable to participate in the live call may hear a replay through February 16, 2012 by dialing 1-855-859-2056 in North America and 1-404-537-3406 outside North America (passcode: 43519587). The replay also will be available through February 23, 2012 on Deltek’s website.
About Deltek
Deltek (Nasdaq: PROJ) is the leading global provider of enterprise software and information solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 15,000 organizations and more than 1.9 million users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable projects. Deltek – Know more. Do more.® www.deltek.com
Use of Non-GAAP Financial Measures
This press release and the related conference call described above contain certain non-GAAP financial measures, including non-GAAP net income, non-GAAP operating income and margin, adjusted EBITDA, and non-GAAP revenue. The Company defines non-GAAP net income as GAAP net income (loss) before the net-of-tax impact of stock-based compensation, amortization of acquired intangible assets, purchase accounting impacts relating to acquisitions, acquisition-related costs, loss on extinguishment of debt, restructuring charges, and impairment of certain intangible assets. Non-GAAP operating income and margin is defined as GAAP operating income (loss) before the pre-tax impact of stock-based compensation, amortization of acquired intangible assets, purchase accounting impacts relating to acquisitions, acquisition-related costs, restructuring charges, and impairment of certain intangible assets. Adjusted EBITDA is defined as GAAP net income (loss) before interest expense (net of interest income), provision for income taxes, depreciation, stock-based compensation, amortization, purchase accounting impacts relating to acquisitions, acquisition-related costs, loss on extinguishment of debt, restructuring charges, and impairment of certain intangible assets. Non-GAAP revenue is defined as revenue before the net impact of acquisition-related fair value adjustments to deferred revenue.
The Company believes that the presentation of these measures provides useful information to its investors and lenders because these measures allow for more accurate comparisons of results from period-to-period, enhance the overall understanding of the Company’s performance and provide greater insight into the prospects for the Company’s ongoing business operations. Moreover, the Company also believes it is appropriate to exclude costs associated with restructuring charges because these charges are excluded from management’s assessment of the Company’s operating performance and are not related to the Company’s ongoing business operations. In addition, the Company excludes the items from EBITDA described above in its calculations to determine compliance with its debt covenants and to assess its ability to borrow additional funds to finance or expand its operations.
The Company believes that by reporting these measures, it provides insight and consistency in its financial reporting and presents a basis for comparison of its business operations between current, past and future periods. In addition, the measures provide a basis for the Company to compare its financial results to those of other comparable publicly traded companies and are used by its management team to plan and forecast its business.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance which are prepared in accordance with U.S. GAAP and may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review the reconciliations of our GAAP to non-GAAP net income, operating income and margin, adjusted EBITDA and revenue, which are set forth below.
Forward-Looking Statements
This press release and related conference call contain forward-looking statements that involve substantial risks and uncertainties. You can identify forward-looking statements by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “would” or similar words. You should consider these statements carefully because they discuss our plans, targets, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There will be events in the future, however, that we are not able to predict accurately or control. Our actual results may differ materially from the expectations we describe in our forward-looking statements. Factors or events that could cause our actual results to materially differ may emerge from time to time, and it is not possible for us to accurately predict all of them. Before you invest in our common stock, you should be aware that the occurrence of any such event or of any of the additional events described as risk factors in the Company’s filings with the Securities and Exchange Commission could have a material adverse effect on our business, results of operation and financial position. Any forward-looking statement made by us in this press release or related conference call speaks only as of the date on which we make it. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| DELTEK, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Product revenues | ||||||||||||||||
| Perpetual licenses | $ | 17,356 | $ | 20,830 | $ | 62,772 | $ | 64,787 | ||||||||
| Subscription and term licenses | 11,495 | 4,994 | 39,170 | 5,258 | ||||||||||||
| Total product revenues | 28,851 | 25,824 | 101,942 | 70,045 | ||||||||||||
| Maintenance and support services | 40,737 | 36,136 | 158,822 | 135,350 | ||||||||||||
| Consulting services and other revenues | 17,817 | 24,184 | 79,777 | 74,253 | ||||||||||||
| Total revenues | 87,405 | 86,144 | 340,541 | 279,648 | ||||||||||||
| COST OF REVENUES: | ||||||||||||||||
| Cost of product revenues | ||||||||||||||||
| Cost of perpetual licenses | 1,633 | 2,551 | 6,604 | 6,234 | ||||||||||||
| Cost of subscription and term licenses | 5,265 | 3,630 | 20,086 | 4,301 | ||||||||||||
| Total cost of product revenues | 6,898 | 6,181 | 26,690 | 10,535 | ||||||||||||
| Cost of maintenance and support services | 5,819 | 6,961 | 25,041 | 25,594 | ||||||||||||
| Cost of consulting services and other revenues | 16,407 | 21,295 | 72,616 | 66,991 | ||||||||||||
| Total cost of revenues | 29,124 | 34,437 | 124,347 | 103,120 | ||||||||||||
| GROSS PROFIT | 58,281 | 51,707 | 216,194 | 176,528 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Research and development | 14,777 | 16,089 | 63,263 | 52,591 | ||||||||||||
| Sales and marketing | 21,712 | 24,363 | 86,620 | 62,382 | ||||||||||||
| General and administrative | 11,349 | 15,887 | 50,011 | 50,371 | ||||||||||||
| Restructuring charge | 2,780 | 672 | 12,191 | 1,590 | ||||||||||||
| Total operating expenses | 50,618 | 57,011 | 212,085 | 166,934 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 7,663 | (5,304 | ) | 4,109 | 9,594 | |||||||||||
| Interest income | 52 | 22 | 153 | 62 | ||||||||||||
| Interest expense | (2,709 | ) | (2,844 | ) | (11,282 | ) | (10,182 | ) | ||||||||
| Other (expense) income , net | (105 | ) | 289 | (276 | ) | (9 | ) | |||||||||
| Loss on extinguishment of debt | - | (1,744 | ) | - | (1,744 | ) | ||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 4,901 | (9,581 | ) | (7,296 | ) | (2,279 | ) | |||||||||
| Income tax expense (benefit) | 1,900 | (1,633 | ) | (3,906 | ) | 2,821 | ||||||||||
| NET INCOME (LOSS) | 3,001 | (7,948 | ) | (3,390 | ) | (5,100 | ) | |||||||||
| Net loss attributable to noncontrolling interests | - | 17 | - | 178 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO DELTEK, INC. | $ | 3,001 | $ | (7,931 | ) | $ | (3,390 | ) | $ | (4,922 | ) | |||||
| EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO DELTEK, INC. | ||||||||||||||||
| Basic | $ | 0.05 | $ | (0.12 | ) | $ | (0.05 | ) | $ | (0.08 | ) | |||||
| Diluted | $ | 0.05 | $ | (0.12 | ) | $ | (0.05 | ) | $ | (0.08 | ) | |||||
| COMMON SHARES AND EQUIVALENTS OUTSTANDING | ||||||||||||||||
| Basic weighted average shares | 65,029 | 65,078 | 65,380 | 64,768 | ||||||||||||
| Diluted weighted average shares | 66,567 | 65,078 | 65,380 | 64,768 | ||||||||||||
| DELTEK, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 35,243 | $ | 76,619 | ||||
|
Accounts receivable, net of allowance of $1,714 and $1,600 at December 31, 2011 and December 31, 2010, respectively |
58,899 | 57,915 | ||||||
| Deferred income taxes | 5,383 | 4,405 | ||||||
| Prepaid expenses and other current assets | 10,760 | 8,799 | ||||||
| Income taxes receivable | - | 2,475 | ||||||
| TOTAL CURRENT ASSETS | 110,285 | 150,213 | ||||||
| PROPERTY AND EQUIPMENT, NET | 25,620 | 12,916 | ||||||
| LONG-TERM DEFERRED INCOME TAXES | 9,653 | 4,214 | ||||||
| INTANGIBLE ASSETS, NET | 54,994 | 69,083 | ||||||
| GOODWILL | 175,771 | 150,899 | ||||||
| OTHER ASSETS | 6,156 | 4,790 | ||||||
| TOTAL ASSETS | $ | 382,479 | $ | 392,115 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt | $ | 528 | $ | 1,659 | ||||
| Accounts payable and accrued expenses | 45,420 | 46,343 | ||||||
| Deferred revenues | 104,835 | 87,888 | ||||||
| Income taxes payable | 465 | - | ||||||
| TOTAL CURRENT LIABILITIES | 151,248 | 135,890 | ||||||
| LONG-TERM DEBT | 166,894 | 195,897 | ||||||
| OTHER TAX LIABILITIES | 3,214 | 2,553 | ||||||
| OTHER LONG-TERM LIABILITIES | 18,180 | 6,389 | ||||||
| TOTAL LIABILITIES | 339,536 | 340,729 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
|
Preferred stock, $0.001 par value—authorized, 5,000,000 shares; none issued or outstanding at December 31, 2011 and December 31, 2010 |
– | – | ||||||
|
Common stock, $0.001 par value—authorized, 200,000,000 shares; 70,398,889 issued and 68,272,271 outstanding at December 31, 2011 and 68,794,774 issued and outstanding at December 31, 2010 |
70 | 69 | ||||||
|
Class A common stock, $0.001 par value—authorized, 100 shares; issued and outstanding, 100 shares at December 31, 2011 and December 31, 2010 |
– | – | ||||||
| Additional paid-in capital | 273,496 | 261,837 | ||||||
| Accumulated deficit | (216,821 | ) | (213,431 | ) | ||||
| Accumulated other comprehensive income | 2,188 | 2,911 | ||||||
| Treasury stock, at cost— 2,126,618 shares at December 31, 2011 | (15,990 | ) | - | |||||
| TOTAL STOCKHOLDERS' EQUITY | 42,943 | 51,386 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 382,479 | $ | 392,115 | ||||
| DELTEK, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Twelve Months Ended December 31, | ||||||||
| 2011 | 2010 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (3,390 | ) | $ | (5,100 | ) | ||
| Adjustments: | ||||||||
| Provision for doubtful accounts | 767 | 324 | ||||||
| Depreciation and amortization | 25,592 | 15,515 | ||||||
| Amortization of debt issuance costs and original issue discount | 988 | 1,045 | ||||||
| Loss on extinguishment of debt | – | 1,744 | ||||||
| Impairment of assets | – | 1,933 | ||||||
| Stock-based compensation expense | 12,613 | 11,941 | ||||||
| Employee stock purchase plan expense | 264 | 273 | ||||||
| Restructuring charge, net | 2,170 | 537 | ||||||
| Loss (gain) on disposal of fixed assets | 189 | (9 | ) | |||||
| Other noncash activity | 431 | (124 | ) | |||||
| Deferred income taxes | (7,494 | ) | (5,752 | ) | ||||
| Change in assets and liabilities, net of effects from acquisitions: | ||||||||
| Accounts receivable, net | 84 | (4,397 | ) | |||||
| Prepaid expenses and other assets | (4,120 | ) | 3,474 | |||||
| Accounts payable and accrued expenses | (1,121 | ) | 3,122 | |||||
| Income taxes receivable/payable | 3,313 | (2,061 | ) | |||||
| Excess tax benefit from stock awards | (164 | ) | (641 | ) | ||||
| Other tax liabilities | 716 | 669 | ||||||
| Other long-term liabilities | 11,271 | (715 | ) | |||||
| Deferred revenues | 13,574 | 41,261 | ||||||
| Net Cash Provided by Operating Activities | 55,683 | 63,039 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of WMG, Inc., net of cash acquired | (25,664 | ) | - | |||||
| Acquisition of Maconomy A/S, net of cash acquired | (1,629 | ) | (66,303 | ) | ||||
| Acquisition of assets of S.I.R.A., Inc., net of cash acquired | (1,039 | ) | (6,109 | ) | ||||
| Acquisition of INPUT, Inc., net of cash acquired | (602 | ) | (59,374 | ) | ||||
| Purchase of property and equipment | (20,067 | ) | (4,925 | ) | ||||
| Capitalized software development costs | (732 | ) | - | |||||
| Net Cash Used in Investing Activities | (49,733 | ) | (136,711 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from exercise of stock options | 935 | 1,129 | ||||||
| Excess tax benefit from stock awards | 164 | 641 | ||||||
| Proceeds from issuance of stock under employee stock purchase plan | 745 | 791 | ||||||
| Shares withheld for minimum tax withholding on vested restricted stock awards | (2,388 | ) | (1,537 | ) | ||||
| Proceeds from issuance of debt, net of original issue discount | – | 198,000 | ||||||
| Payments for deferred financing costs | (241 | ) | (3,077 | ) | ||||
| Purchase of treasury stock | (15,990 | ) | - | |||||
| Repayment of debt | (30,553 | ) | (179,483 | ) | ||||
| Net Cash (Used in) Provided by Financing Activities | (47,328 | ) | 16,464 | |||||
| IMPACT OF FOREIGN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 2 | 1,191 | ||||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (41,376 | ) | (56,017 | ) | ||||
| CASH AND CASH EQUIVALENTS––Beginning of period | 76,619 | 132,636 | ||||||
| CASH AND CASH EQUIVALENTS––End of period | $ | 35,243 | $ | 76,619 | ||||
| DELTEK, INC. | |||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||
| Net Income (Loss) (GAAP Basis) | $ | 3,001 | $ | (7,931 | ) | $ | (3,390 | ) | $ | (4,922 | ) | ||||
| Income Tax Expense (Benefit) | 1,900 | (1,633 | ) | (3,906 | ) | 2,821 | |||||||||
| Pre-Tax Income (Loss), Net of Noncontrolling Interests Loss (GAAP Basis) | $ | 4,901 | $ | (9,581 | ) | $ | (7,296 | ) | $ | (2,279 | ) | ||||
| Adjustments: | |||||||||||||||
| Amortization of Acquired Intangibles | 4,360 | 4,461 | 18,326 | 9,254 | |||||||||||
| Stock-based Compensation | 3,650 | 3,722 | 12,877 | 12,214 | |||||||||||
| Restructuring Charge, Including Stock-based | |||||||||||||||
|
Compensation of $0 and $547 for the three and twelve months ended December 31, 2011 |
2,780 | 672 | 12,191 | 1,590 | |||||||||||
| Intangibles Impairment | - | 1,471 | - | 1,471 | |||||||||||
| Net Impact of Acquisition-Related Deferred | |||||||||||||||
| Revenue before Fair Value Adjustment | 195 | 5,637 | 4,111 | 8,275 | |||||||||||
| Acquisition-Related Costs | - | 2,589 | 1,381 | 8,138 | |||||||||||
| Loss on Extinguishment of Debt | - | 1,744 | - | 1,744 | |||||||||||
| Net Impact of Acquisition-Related Deferred | |||||||||||||||
| Commissions before Fair Value Adjustment | - | (482 | ) | (570 | ) | (482 | ) | ||||||||
| Adjusted Pre-Tax Income | 15,886 | 10,233 | 41,020 | 39,925 | |||||||||||
| Less: Adjusted Income Tax Expense | 6,140 | 4,929 | 14,744 | 15,554 | |||||||||||
| Non-GAAP Net Income | $ | 9,746 | $ | 5,304 | $ | 26,276 | $ | 24,371 | |||||||
| Non-GAAP Earnings Per Share (diluted) | $ | 0.15 | $ | 0.08 | $ | 0.39 | $ | 0.37 | |||||||
| Weighted Average Shares | 66,567 | 66,278 | 66,667 | 66,042 | |||||||||||
| RECONCILIATION OF GAAP OPERATING INCOME (LOSS) AND OPERATING MARGIN (DEFICIT) TO NON-GAAP | |||||||||||||||||||||||||||
| OPERATING INCOME AND OPERATING MARGIN | |||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||
| Operating Income (Loss) and Margin (Deficit)- GAAP | $ | 7,663 | 9 | % | $ | (5,304 | ) | -6 | % | $ | 4,109 | 1 | % | $ | 9,594 | 3 | % | ||||||||||
| Amortization of Acquired Intangibles | 4,360 | 4,461 | 18,326 | 9,254 | |||||||||||||||||||||||
| Stock-based Compensation | 3,650 | 3,722 | 12,877 | 12,214 | |||||||||||||||||||||||
| Restructuring Charge, Including Stock-based | |||||||||||||||||||||||||||
|
Compensation of $0 and $547 for the three and twelve months ended December 31, 2011 |
2,780 | 672 | 12,191 | 1,590 | |||||||||||||||||||||||
| Intangibles Impairment | - | 1,471 | - | 1,471 | |||||||||||||||||||||||
| Net impact of Acquisition-Related Deferred | |||||||||||||||||||||||||||
| Revenue before Fair Value Adjustment | 195 | 5,637 | 4,111 | 8,275 | |||||||||||||||||||||||
| Acquisition-Related Costs | - | 2,589 | 1,381 | 8,138 | |||||||||||||||||||||||
| Net Impact of Acquisition-Related Deferred | |||||||||||||||||||||||||||
| Commissions before Fair Value Adjustment | - | (482 | ) | (570 | ) | (482 | ) | ||||||||||||||||||||
| Operating Income and Margin - Non-GAAP | $ | 18,648 | 21 | % | $ | 12,766 | 14 | % | $ | 52,425 | 15 | % | $ | 50,054 | 17 | % | |||||||||||
| Total Revenues | $ | 87,405 | $ | 86,144 | $ | 340,541 | $ | 279,648 | |||||||||||||||||||
| Total Revenues (Non-GAAP) | $ | 87,600 | $ | 91,781 | $ | 344,652 | $ | 287,923 | |||||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net Income (Loss) (GAAP Basis) | $ | 3,001 | $ | (7,931 | ) | $ | (3,390 | ) | $ | (4,922 | ) | |||||
| Amortization | 4,422 | 4,522 | 18,524 | 9,606 | ||||||||||||
| Income Tax Expense (Benefit) | 1,900 | (1,633 | ) | (3,906 | ) | 2,821 | ||||||||||
| Loss on Extinguishment of Debt | - | 1,744 | - | 1,744 | ||||||||||||
| Stock-based Compensation | 3,650 | 3,722 | 12,877 | 12,214 | ||||||||||||
| Restructuring Charge, Including Stock-based | ||||||||||||||||
|
Compensation of $0 and $547 for the three and twelve months ended December 31, 2011 |
2,780 | 672 | 12,191 | 1,590 | ||||||||||||
| Intangibles Impairment | - | 1,471 | - | 1,471 | ||||||||||||
| Interest Expense, net | 2,657 | 2,822 | 11,129 | 10,120 | ||||||||||||
| Net Impact of Acquisition-Related Deferred | ||||||||||||||||
| Revenue before Fair Value Adjustment | 195 | 5,637 | 4,111 | 8,275 | ||||||||||||
| Depreciation | 1,433 | 1,886 | 7,068 | 5,909 | ||||||||||||
| Acquisition-Related Costs | - | 2,589 | 1,381 | 8,138 | ||||||||||||
| Net Impact of Acquisition-Related Deferred | ||||||||||||||||
| Commissions before Fair Value Adjustment | - | (482 | ) | (570 | ) | (482 | ) | |||||||||
| Adjusted EBITDA | $ | 20,038 | $ | 15,019 | $ | 59,415 | $ | 56,484 | ||||||||
| REVENUES | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Total Revenues (GAAP) | $ | 87,405 | $ | 86,144 | $ | 340,541 | $ | 279,648 | ||||||||
| Net Impact of Maconomy Acquisition-Related | ||||||||||||||||
| Deferred Revenue before Fair Value Adjustment | - | 2,209 | 427 | 4,847 | ||||||||||||
| Net Impact of INPUT Acquisition-Related | ||||||||||||||||
| Deferred Revenue before Fair Value Adjustment | 113 | 3,428 | 3,306 | 3,428 | ||||||||||||
| Net Impact of WMG Acquisition-Related | ||||||||||||||||
| Deferred Revenue before Fair Value Adjustment | 82 | - | 378 | - | ||||||||||||
| Total Revenues (Non-GAAP) | $ | 87,600 | $ | 91,781 | $ | 344,652 | $ | 287,923 | ||||||||
| STOCK-BASED COMPENSATION EXPENSE | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Cost of Perpetual Licenses | $ | 6 | $ | 5 | $ | 17 | $ | 10 | ||||||||
| Cost of Subscription and Term Licenses | 86 | 40 | 255 | 40 | ||||||||||||
| Cost of Maintenance and Support Services | 290 | 284 | 1,091 | 946 | ||||||||||||
| Cost of Consulting Services and Other Revenues | 417 | 456 | 1,531 | 1,300 | ||||||||||||
| Research and Development | 683 | 882 | 2,630 | 2,775 | ||||||||||||
| Sales and Marketing | 904 | 900 | 2,819 | 2,817 | ||||||||||||
| General and Administrative | 1,264 | 1,155 | 4,534 | 4,326 | ||||||||||||
| Restructuring Charge | - | - | 547 | - | ||||||||||||
| Total | $ | 3,650 | $ | 3,722 | $ | 13,424 | $ | 12,214 | ||||||||
| AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS | |||||||||||||
| (in thousands) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Cost of Perpetual Licenses | $ | 709 | $ | 879 | $ | 3,300 | $ | 1,788 | |||||
| Cost of Subscription and Term Licenses | 1,083 | 990 | 4,500 | 1,628 | |||||||||
| Cost of Consulting Services and Other Revenues | 19 | 19 | 78 | 78 | |||||||||
| Sales and Marketing | 2,547 | 2,570 | 10,437 | 5,748 | |||||||||
| General and Administrative | 2 | 3 | 11 | 12 | |||||||||
| Total | $ | 4,360 | $ | 4,461 | $ | 18,326 | $ | 9,254 | |||||
| AMORTIZATION AND DEPRECIATION EXPENSES | |||||||||||||
| (in thousands) | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Cost of Perpetual Licenses | $ | 768 | $ | 944 | $ | 3,511 | $ | 2,154 | |||||
| Cost of Subscription and Term Licenses | 1,168 | 1,000 | 4,812 | 1,638 | |||||||||
| Cost of Maintenance and Support Services | 179 | 352 | 1,045 | 1,138 | |||||||||
| Cost of Consulting Services and Other Revenues | 365 | 353 | 1,439 | 1,447 | |||||||||
| Research and Development | 412 | 392 | 1,819 | 1,334 | |||||||||
| Sales and Marketing | 2,645 | 2,998 | 11,617 | 6,769 | |||||||||
| General and Administrative | 318 | 369 | 1,349 | 1,035 | |||||||||
| Total | $ | 5,855 | $ | 6,408 | $ | 25,592 | $ | 15,515 | |||||
Contact:
Investor Relations Contact:
Deltek, Inc.
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or
Media Relations Contact:
Deltek, Inc.
Patrick Smith, 703-885-9062
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