| (1) | The twelve months ended December 31, 2020, includes $1.0 million of proceeds from settlements related to a historical acquisition and $0.6 million of severance expense. The twelve months ended December 31, 2019, includes $1.0 million of impairment charges for royalty contracts, $0.6 million of acquisition related costs and $0.4 million of severance expense. |
The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:
| (Unaudited) | |||||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, | ||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||
| Net cash provided by operating activities | 5,503 | 1,388 | 32,882 | 31,393 | |||||||||||
| Capital expenditures | (2,087 | ) | (1,540 | ) | (6,093 | ) | (9,660 | ) | |||||||
| Free Cash Flow | $ | 3,416 | $ | (152 | ) | $ | 26,789 | $ | 21,733 | ||||||
Business Outlook
Starting with the 2021 guidance presented in this press release (including the reconciliations provided below) and going forward, our definition of Non-GAAP net income now excludes non-cash interest expense and assumes a non-GAAP income tax rate, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period. There are no other changes from our prior definition. We’ve made these changes to reflect how management reviews results of the business and to be more consistent with our peers.
The following table provides a reconciliation of projected Non-GAAP net income to projected net loss, the most comparable GAAP financial measure:
| (Unaudited) | |||||||||||||||
|
Three Months Ending
March 31, 2021 |
Year Ending
December 31, 2021 | ||||||||||||||
| (in thousands) | Low | High | Low | High | |||||||||||
| Net loss | $ | (5,400 | ) | $ | (4,500 | ) | $ | (44,000 | ) | $ | (38,300 | ) | |||
| Stock-based compensation expense | 11,900 | 11,900 | 44,500 | 44,500 | |||||||||||
| Amortization of intangible assets | 4,400 | 4,400 | 17,800 | 17,800 | |||||||||||
| Non-cash interest expense | 2,800 | 2,800 | 11,400 | 11,400 | |||||||||||
| Special adjustments and other | 4,000 | 5,000 | 5,000 | 7,000 | |||||||||||
| Impact of non-GAAP tax rate | (1,400 | ) | (1,800 | ) | 2,200 | 400 | |||||||||
| Non-GAAP net income | $ | 16,300 | $ | 17,800 | $ | 36,900 | $ | 42,800 | |||||||
