Innodata Reports Third Quarter 2016 Results
(Thomson Reuters ONE) -
NEW YORK - November 1, 2016 - INNODATA INC. (NASDAQ: INOD) today reported
results for the third quarter and the nine months ended September 30, 2016.
* Total revenue was $16.1 million in the third quarter of 2016, a 3% increase
from $15.6 million in the second quarter of 2016. Total revenue was $15.1
million in the third quarter of 2015.
* In the third quarter of 2016 the Company incurred a net loss of $2.8
million, or $(0.11) per diluted share, compared to a net loss of $1.8
million, or $(0.07) per diluted share, in the second quarter of 2016. Net
income in the third quarter of 2015 was $0.4 million, or $0.02 per diluted
share. The third quarter 2016 results were impacted by $1.6 million in one-
time costs and charges, consisting of a $1.0 million charge for an amendment
to potential supplemental purchase price payments under the MediaMiser share
purchase agreement, $220,000 in costs associated with an internal
investigation by the Company's audit committee that was reported by the
Company in its Form 10-Q for the second quarter, and $360,000 in costs
associated with the reorganization and integration of Agility within the
Company's Media Intelligence Solutions segment. Third quarter revenue was
benefited by $240,000 of one-time revenue that relates to the acquisition of
Agility.
* For the first nine months of 2016, total revenue was $47.4 million, an
increase of 10% from $43.0 million in the first nine months of 2015. Net
loss was $4.5 million, or $(0.18) per diluted share, in the first nine
months of 2016, compared to a net loss of $2.2 million, or $(0.09) per
diluted share, for the same period in 2015.
* Adjusted EBITDA (as defined below) was $(0.4) million in the third quarter
of 2016, compared to $(0.7) million in the second quarter of 2016. Adjusted
EBITDA was $1.7 million in the third quarter of 2015.
* Cash, cash equivalents and investments were $17.3 million at September
30, 2016 compared to $24.9 million at December 31, 2015. Cash used in the
third quarter includes $4.1 million paid for the acquisition of Agility.
Jack Abuhoff, Chairman and CEO, said, "Revenue for our Digital Data Solutions
(formerly Content Services) segment was $12.1 million compared to $13.2 million
in the second quarter, primarily as a result of a key client for our eBook
services reducing its requirements for certain eBook services and pricing
concessions extended to another key client. In our IADS Synodex business, we
commenced production for an additional insurance company. Revenue for the entire
segment was $1 million compared to $1,170,000 last quarter primarily on account
of a $160,000 decrease in docGenix revenue. Revenue in our Media Intelligence
Solutions (MIS) segment was $3 million in the third quarter, of which $1.8
million is attributable to Agility.
"We achieved our targeted 10% Adjusted EBITDA this quarter in MIS before
considering one-time integration and restructuring costs, and are combining the
Agility and MediaMiser businesses in order to compete in the estimated $1
billion combined market for media contact management and media monitoring
solutions. Except for $240,000 of revenue that relates to the acquisition of
Agiity, we regard almost all of the revenue in our MIS business as recurring. In
this quarter we regard approximately 80% of our total revenue as recurring."
Abuhoff concluded, "We anticipate third quarter revenue to be in the range of
$14.7 - $15.8 million, consisting of DDS revenue in the range of $11.3 - $12.0
million, IADS revenue in the range of $1.0 - $1.2 million and MIS revenue in the
range of $2.4 - $2.6 million."
Non-GAAP Financial Measures
This press release and the accompanying tables include references to Adjusted
EBITDA, which is a non-GAAP financial measure. We define Adjusted EBITDA as net
income (loss) attributable to Innodata Inc. and subsidiaries in accordance with
GAAP before income taxes, depreciation, amortization of intangible assets,
changes in fair value of contingent consideration, stock-based compensation,
loss attributable to non-controlling interests and interest income (expense). We
believe Adjusted EBITDA is useful to our management and investors in evaluating
our operating performance and for financial and operational decision-making
purposes. In particular, it facilitates comparisons of the core operating
performance of our company from period to period on a consistent basis and helps
us identify underlying trends in our business. We believe it provides useful
information about our operating results, enhances the overall understanding of
our past performance and future prospects, and allows for greater transparency
with respect to key metrics used by management in our financial and operational
decision making. We use this measure to establish operational goals for managing
our business and evaluating our performance.
Adjusted EBITDA has limitations as an analytical tool and should not be
considered in isolation or as a substitute for results reported under GAAP. Some
of these limitations are:
* Adjusted EBITDA does not reflect tax payments, and such payments reflect a
reduction in cash available to us;
* Adjusted EBITDA does not reflect changes in, or cash requirements for, our
working capital needs or for our cash expenditures or future requirements
for capital expenditures or contractual commitments;
* Adjusted EBITDA excludes the potential dilutive impact of stock-based
compensation expense related to our workforce, interest income (expense) and
net loss attributable to non-controlling interests, and these items may
represent a reduction or increase in cash available to us;
* Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the future, and
Adjusted EBITDA does not reflect cash capital expenditure requirements for
such replacements or for new capital expenditure requirements; and
* Other companies, including companies in our own industry, may calculate
Adjusted EBITDA differently than we do, limiting its usefulness as a
comparative measure.
Because of these limitations, Adjusted EBITDA should be considered alongside
other financial performance measures, including various cash flow metrics, net
income (loss) and our other GAAP results.
A reconciliation from net loss to Adjusted EBITDA is attached to this release.
Timing of Conference Call with Q&A
Innodata will conduct an earnings conference call, including a question-and-
answer period, at 11:00 AM eastern time today. You can participate in this call
by dialing the following call-in numbers:
The call-in numbers for the conference call are:
1-800-894-5910 (Domestic)
1-785-424-1052 (International)
1-888-203-1112 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on both: 6808319
Investors are also invited to access a live Webcast of the conference call at
the Investor Relations section of www.innodata.com. Please note that the
Webcast feature will be in listen-only mode.
Call-in or Webcast replay will be available for 30 days following the conference
call.
About Innodata
Innodata (NASDAQ: INOD) is a global digital services and solutions company.
Innodata's technology and services power leading information products and
online retail destinations around the world. Innodata's solutions help
prestigious enterprises harness the power of digital data to re-imagine how they
operate and drive performance. Innodata serves publishers, media and information
companies, digital retailers, banks, insurance companies, government agencies
and many other industries.
Founded in 1988, Innodata comprises a team of 5,000 diverse people in 8
countries who are dedicated to delivering services and solutions that help the
world's businesses make better decisions.
Recent Innodata honors include EContent Magazine's EContent 100, KMWorld
Magazine's 100 Companies That Matter in Knowledge Management, the International
Association of Outsourcing Professionals' (IAOP) Global Outsourcing Top 100, D&B
India's Leading ITeS and BPO Companies and the Black Book of Outsourcing's Top
List of Leading Outsourcing Providers to the Printing and Publishing Business.
Forward Looking Statement
This release contains forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The words "project," "head start," "believe," "expect," "should," "anticipate,"
"indicate," "point to," "forecast," "likely," "goals," "optimistic," "foster"
and other similar expressions generally identify forward-looking statements,
which speak only as of their dates.
These forward-looking statements are based largely on our current expectations
and are subject to a number of risks and uncertainties, including without
limitation, that contracts may be terminated by clients; projected or committed
volumes of work may not materialize; our Innodata Advanced Data Solutions
("IADS") segment is a venture formed in 2011 that has incurred losses since
inception and has recorded impairment charges for all of its fixed assets; we
currently intend to continue to invest in IADS; the primarily at-will nature of
contracts with our Digital Data Solutions clients and the ability of these
clients to reduce, delay or cancel projects; continuing Digital Data Solutions
segment revenue concentration in a limited number of clients; continuing Digital
Data Solutions segment reliance on project-based work; inability to replace
projects that are completed, canceled or reduced; difficulty in integrating and
deriving synergies from acquisitions, joint venture and strategic investments;
potential undiscovered liabilities of companies and businesses that we may
acquire; depressed market conditions; changes in external market factors; the
ability and willingness of our clients and prospective clients to execute
business plans which give rise to requirements for our services; changes in our
business or growth strategy; the emergence of new or growing competitors;
various other competitive and technological factors; and other risks and
uncertainties indicated from time to time in our filings with the Securities and
Exchange Commission.
Our actual results could differ materially from the results referred to in the
forward-looking statements. In light of these risks and uncertainties, there can
be no assurance that the results referred to in the forward-looking statements
will occur.
We undertake no obligation to update or review any guidance or other forward-
looking information, whether as a result of new information, future developments
or otherwise.
Company Contact
Raj Jain
Vice President
Innodata Inc.
rjain(at)innodata.com
(201) 371-8024
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except per-share amounts)
Three Months Ended Nine Months Ended
---------------------------- ---------------------------
September 30, September 30,
---------------------------- ---------------------------
2016 2015 2016 2015
---------------- ----------- -------------- ------------
Revenues $ 16,060 $ 15,135 $ 47,400 $ 43,000
---------------- ----------- -------------- ------------
Operating costs and
expenses:
Direct operating
costs 12,422 10,452 35,572 32,567
Selling and
administrative
expenses 5,105 3,941 14,469 12,354
Change in fair value
of contingent
consideration 1,038 * 1,038 *
Interest expense
(income), net 15 6 44 (39)
---------------- ----------- -------------- ------------
Totals 18,580 14,399 51,123 44,882
---------------- ----------- -------------- ------------
Income (loss) before
income taxes (2,520) 736 (3,723) (1,882)
Provision for income
taxes 352 462 1,128 763
---------------- ----------- -------------- ------------
Net income (loss) (2,872) 274 (4,851) (2,645)
Loss attributable to
non-controlling
interests 106 132 310 412
---------------- ----------- -------------- ------------
Net income (loss)
attributable to
Innodata Inc. and
Subsidiaries $ (2,766) $ 406 $ (4,541) $ (2,233)
---------------- ----------- -------------- ------------
Income (loss) per
share attributable to
Innodata Inc. and
Subsidiaries:
Basic and Diluted $ (0.11) $ 0.02 $ (0.18) $ (0.09)
---------------- ----------- -------------- ------------
Weighted average
shares outstanding:
Basic and Diluted 25,651 25,455 25,514 25,377
---------------- ----------- -------------- ------------
Comprehensive loss:
Net income (loss) $ (2,872) $ 274 $ (4,851) $ (2,645)
---------------- ----------- -------------- ------------
Pension liability
adjustment, net of
taxes (83) 10 (247) 30
Change in fair values
of derivatives, net of
taxes (39) (426) 207 57
Foreign currency
translation
adjustment, net of
taxes (118) (393) 246 (813)
---------------- ----------- -------------- ------------
Other Comprehensive
income (loss) (240) (809) 206 (726)
---------------- ----------- -------------- ------------
Total Comprehensive
loss (3,112) (535) (4,645) (3,371)
Comprehensive loss
attributed to non-
controlling interest 106 132 310 412
---------------- ----------- -------------- ------------
Comprehensive loss
attributable to
Innodata Inc. and
Subsidiaries $ (3,006) $ (403) $ (4,335) $ (2,959)
---------------- ----------- -------------- ------------
Supplemental Financial Data:
Adjusted EBITDA $ (384) $ 1,660 $ 288 $ 992
----------- ----------- --------- -------
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
September 30, December 31,
-----------------------------
2016 2015
--------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 17,277 $ 24,908
Accounts receivable, net 9,695 9,249
Prepaid expenses and other current assets 3,081 2,900
Deferred income taxes 418 282
--------------- -------------
Total current assets 30,471 37,339
Property and equipment, net 5,384 4,723
Other assets 2,349 2,330
Deferred income taxes 1,379 1,382
Intangibles, net 8,582 3,987
Goodwill 2,748 1,476
--------------- -------------
Total assets $ 50,913 $ 51,237
--------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 6,248 $ 4,562
Accrued salaries, wages and related benefits 5,955 4,905
Income and other taxes 1,320 1,255
Current portion of long term obligations 1,421 1,582
Deferred income taxes * 76
--------------- -------------
Total current liabilities 14,944 12,380
Deferred income taxes 701 716
Long term obligations 4,045 3,436
Non-controlling interests (3,557) (3,507)
--------------- -------------
STOCKHOLDERS' EQUITY: 34,780 38,212
--------------- -------------
Total liabilities and stockholders' equity $ 50,913 $ 51,237
--------------- -------------
INNODATA INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Dollars in thousands)
Adjusted EBITDA
Three Months Ended Nine Months Ended
--------------------------- ----------------------------
September 30, September 30,
--------------------------- ----------------------------
2016 2015 2016 2015
------------- ------------- ------------- --------------
Net income (loss)
attributable to
Innodata Inc. and
Subsidiaries $ (2,766) $ 406 $ (4,541) $ (2,233)
Depreciation and
amortization 876 677 2,200 2,113
Stock-based
compensation 207 241 729 800
Provision for income
taxes 352 462 1,128 763
Change in fair value
of contingent
consideration 1,038 - 1,038 -
Interest expense
(income), net 15 6 44 (39)
Non-controlling
interests (106) (132) (310) (412)
------------- ------------- ------------- --------------
Adjusted EBITDA $ (384) $ 1,660 $ 288 $ 992
------------- ------------- ------------- --------------
Adjusted EBITDA (by
segment)
Three Months Ended Nine Months Ended
--------------------------- ----------------------------
September 30, September 30,
--------------------------- ----------------------------
2016 2015 2016 2015
------------- ------------- ------------- --------------
Digital Data
Solutions $ (40) $ 2,675 $ 2,461 $ 4,196
IADS (551) (856) (1,610) (2,759)
MIS 207 (159) (563) (445)
------------- ------------- ------------- --------------
Adjusted EBITDA $ (384) $ 1,660 $ 288 $ 992
------------- ------------- ------------- --------------
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Innodata Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 01.11.2016 - 13:31 Uhr
Sprache: Deutsch
News-ID 504147
Anzahl Zeichen: 24193
contact information:
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Kategorie:
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