Innodata Reports Second Quarter 2017 Results
(Thomson Reuters ONE) -
NEW YORK - August 3, 2017 - INNODATA INC. (NASDAQ: INOD) today reported results
for the second quarter and the six months ended June 30, 2017.
* Total revenue was $15.3 million in the second quarter of 2017, a 2%
sequential increase from $15.0 million in the first quarter of 2017. Total
revenue was $15.6 million in the second quarter of 2016.
* Net loss was $0.2 million in the second quarter of 2017 or $(0.01) per
diluted share, compared to a net loss of $1.7 million in the first quarter
of 2017 or ($0.07) per diluted share. Net loss in the second quarter of
2016 was $1.8 million, or $(0.07) per diluted share.
* For the first six months of 2017, total revenue was $30.3 million, a decline
of 3% from $31.3 million in the first six months of 2016. Net loss was $1.9
million, or $(0.07) per diluted share, in the first six months of 2017,
compared to a net loss of $1.8 million, or $(0.07) per diluted share, for
the same period in 2016.
* Adjusted EBITDA (as defined below) was $1.0 million in the second quarter of
2017, compared to a loss of $0.2 million in the first quarter of 2017.
Adjusted EBITDA was a loss of $0.7 million in the second quarter of 2016.
* Cash, cash equivalents and investments were $15.3 million at June 30, 2017
compared to $14.2 million at December 31, 2016.
Jack Abuhoff, Chairman and CEO, said, "At the consolidated level both our
revenue and Adjusted EBITDA performance were higher this quarter. In our Digital
Data Solutions (DDS) segment, our second quarter revenue was $11.8 million
compared to $11.4 million in the first quarter. This includes $1.1 million of
previously deferred revenue that was recognized in the second quarter when we
received payment.
"The opportunity landscape in our DDS business continues to evolve rapidly as a
result of changes taking place within our core publishing and information market
segment and new ways businesses are consuming digital data. To grow revenue and
increase earnings, we are repositioning our service capabilities to expand our
addressable market, and we are driving efficiencies by lowering our cost
structure and driving increased automation."
Abuhoff continued, "In our Innodata Advanced Data Solutions (IADS) segment,
revenue was $1.2 million compared to $1.0 million last quarter. Higher revenue
was driven by new work from existing clients. We continued to increase
productivity in our Synodex business and we reduced production costs by $100,000
this quarter.
"Revenue in our Media Intelligence Solutions (MIS) segment was $2.3 million
compared to $2.6 million last quarter. We experienced a lower renewal rate for
US customers acquired in our Agility acquisition than for UK customers in the
acquisition. We are putting into place enhanced account management and support
processes that we think will improve the US renewal rate. MIS results for the
quarter were also affected by seasonality in the Bulldog Reporter awards
business."
Abuhoff concluded, "We anticipate third quarter revenue to be in the range of
$14.5 - $15.5 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 $2.2 - $2.3 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 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:
1-888-632-3381 (Domestic)
1-785-424-1678 (International)
1-866-375-1919 (Domestic Replay)
1-719-457-0820 (International Replay)
Pass code on both: 3318282
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 4,500 diverse people in 8
countries who are dedicated to delivering services and solutions that help the
world's businesses make better decisions.
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,"
"estimate" 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; our dependency on content
providers in our Media Intelligence Solutions segment; 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 Six Months Ended
June 30, June 30,
------------------------------ --------------------------
2017 2016 2017 2016
-------------- --------------- ------------- ------------
Revenues $ 15,300 $ 15,642 $ 30,253 $ 31,340
-------------- --------------- ------------- ------------
Operating costs and
expenses:
Direct operating
costs 11,399 11,685 23,122 23,150
Selling and
administrative
expenses 4,043 5,553 8,668 9,364
Interest expense
(income), net 1 16 (11) 29
-------------- --------------- ------------- ------------
Totals 15,443 17,254 31,779 32,543
-------------- --------------- ------------- ------------
Loss before income
taxes (143) (1,612) (1,526) (1,203)
Provision for income
taxes 94 258 539 776
-------------- --------------- ------------- ------------
Net loss (237) (1,870) (2,065) (1,979)
Loss attributable to
non-controlling
interests 71 92 169 204
-------------- --------------- ------------- ------------
Net loss attributable
to Innodata Inc. and
Subsidiaries $ (166) $ (1,778) $ (1,896) $ (1,775)
-------------- --------------- ------------- ------------
Loss per share
attributable to
Innodata Inc.
and Subsidiaries:
Basic and Diluted $ (0.01) $ (0.07) $ (0.07) $ (0.07)
-------------- --------------- ------------- ------------
Weighted average
shares outstanding:
Basic and Diluted 25,877 25,445 25,753 25,445
-------------- --------------- ------------- ------------
Comprehensive loss:
Net loss $ (237) $ (1,870) $ (2,065) $ (1,979)
-------------- --------------- ------------- ------------
Pension liability
adjustment, net of
taxes (61) (82) (123) (164)
Change in fair values
of derivatives, net
of taxes (175) (193) 136 246
Foreign currency
translation
adjustment, net of
taxes 274 8 298 364
-------------- --------------- ------------- ------------
Other Comprehensive
income (loss) 38 (267) 311 446
-------------- --------------- ------------- ------------
Total Comprehensive
loss (199) (2,137) (1,754) (1,533)
Comprehensive loss
attributed to non-
controlling interest 71 92 169 204
-------------- --------------- ------------- ------------
Comprehensive loss
attributable to
Innodata Inc. and
Subsidiaries $ (128) $ (2,045) $ (1,585) $ (1,329)
-------------- --------------- ------------- ------------
Supplemental Financial Data:
Adjusted EBITDA $ 956 $ (681) $ 792 $ 672
---------- ----------- --------- -------
INNODATA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
June 30, December 31,
2017 2016
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 15,275 $ 14,172
Accounts receivable, net 9,230 9,952
Prepaid expenses and other current assets 3,771 3,124
------------ -------------
Total current assets 28,276 27,248
Property and equipment, net 7,262 5,397
Other assets 3,240 2,377
Deferred income taxes 1,910 1,641
Intangibles, net 7,897 8,191
Goodwill 2,776 2,734
------------ -------------
Total assets $ 51,361 $ 47,588
------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 7,237 $ 5,351
Accrued salaries, wages and related benefits 5,601 5,040
Income and other taxes 1,879 1,330
Current portion of long term obligations 1,997 1,120
------------ -------------
Total current liabilities 16,714 12,841
Deferred income taxes 682 680
Long term obligations 4,567 3,917
Non-controlling interests (3,803) (3,634)
STOCKHOLDERS' EQUITY 33,201 33,784
------------ -------------
Total liabilities and stockholders' equity $ 51,361 $ 47,588
------------ -------------
INNODATA INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Dollars in thousands)
Adjusted EBITDA - IADS
Segment Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -------------------------
2017 2016 2017 2016
----------- ----------- ----------- -------------
Net loss attributable to
Innodata Inc. and
Subsidiaries $ (79) $ (454) $ (493) $ (1,125)
Stock-based compensation * 2 2 (14)
----------- ----------- ----------- -------------
Adjusted EBITDA - IADS
Segment $ (79) $ (452) $ (491) $ (1,139)
----------- ----------- ----------- -------------
Adjusted EBITDA - MIS Segment Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -------------------------
2017 2016 2017 2016
----------- ----------- ------------ ------------
Net loss attributable to
Innodata Inc. and
Subsidiaries $ (531) $ (598) $ (681) $ (1,047)
Depreciation and amortization 337 152 666 291
Benefit from income taxes (10) (14) (12) (27)
Interest expense, net 3 * 3 *
----------- ----------- ------------ ------------
Adjusted EBITDA - MIS Segment $ (201) $ (460) $ (24) $ (783)
----------- ----------- ------------ ------------
Adjusted EBITDA - DDS Segment Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ----------------------
2017 2016 2017 2016
----------- ------------ ----------- ----------
Net income (loss) attributable
to Innodata Inc. and
Subsidiaries $ 444 $ (726) $ (722) $ 397
Depreciation and amortization 572 520 1,186 1,033
Stock-based compensation 189 241 475 536
Provision for income taxes 104 272 551 803
Interest expense (income), net (2) 16 (14) 29
Non-controlling interests (71) (92) (169) (204)
----------- ------------ ----------- ----------
Adjusted EBITDA - DDS Segment $ 1,236 $ 231 $ 1,307 $ 2,594
----------- ------------ ----------- ----------
Adjusted EBITDA Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ---------------------------
2017 2016 2017 2016
----------- -------------- ------------- -------------
Net loss attributable to
Innodata Inc. and
Subsidiaries $ (166) $ (1,778) $ (1,896) $ (1,775)
Depreciation and
amortization 909 672 1,852 1,324
Stock-based compensation 189 243 477 522
Provision for income
taxes 94 258 539 776
Interest expense
(income), net 1 16 (11) 29
Non-controlling
interests (71) (92) (169) (204)
----------- -------------- ------------- -------------
Adjusted EBITDA $ 956 $ (681) $ 792 $ 672
----------- -------------- ------------- -------------
INNODATA INC. AND SUBSIDIARIES
REVENUE
(Unaudited)
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- --------------------------
2017 2016 2017 2016
-------------- ------------ ------------- ------------
Digital Data Solutions $ 11,800 $ 13,232 $ 23,155 $ 26,876
IADS 1,211 1,165 2,213 2,062
MIS 2,289 1,245 4,885 2,402
-------------- ------------ ------------- ------------
Adjusted EBITDA $ 15,300 $ 15,642 $ 30,253 $ 31,340
-------------- ------------ ------------- ------------
Revenue (by segment)
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: 03.08.2017 - 14:30 Uhr
Sprache: Deutsch
News-ID 555246
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