Carbonite Inc

CIK:0001340127|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Services	$ 118,824	$ 70,290	$ 304,758	$ 193,678
Product	6,772	7,392	23,563	25,764
Total revenue	125,596	77,682	328,321	219,442
Services	30,355	17,094	71,413	50,782
Product	540	417	1,363	1,348
Amortization of intangible assets	9,072	4,317	21,447	11,067
Total cost of revenue	39,967	21,828	94,223	63,197
Gross profit	85,629	55,854	234,098	156,245
Operating expenses:
Research and development	28,753	14,914	72,439	43,152
General and administrative	16,226	11,159	54,782	39,079
Sales and marketing	37,417	21,184	96,127	63,130
Amortization of intangible assets	10,134	3,924	24,199	8,515
Restructuring charges	0	357	702	1,260
Total operating expenses	92,530	51,538	248,249	155,136
(Loss) income from operations	(6,901)	4,316	(14,151)	1,109
Interest expense	(10,795)	(2,873)	(26,650)	(8,894)
Interest income	212	390	1,595	803
Other income (expense), net	587	(147)	974	48
(Loss) income before income taxes	(16,897)	1,686	(38,232)	(6,934)
(Benefit) provision for income taxes	(2,941)	1,100	(15,005)	(13,777)
Net (loss) income	$ (13,956)	$ 586	$ (23,227)	$ 6,843
Earnings Per Share, Basic	$ (0.40)	$ 0.02	$ (0.67)	$ 0.23
Earnings Per Share, Diluted	$ (0.40)	$ 0.02	$ (0.67)	$ 0.21
Weighted Average Number of Shares Outstanding, Basic	34,639,762	32,876,529	34,423,099	29,965,390
Weighted Average Number of Shares Outstanding, Diluted	34,639,762	36,454,443	34,423,099	32,762,302

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net (loss) income	$ (23,227)	$ 6,843
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	57,685	29,622
Amortization of right-of-use assets	5,776	0
Amortization of deferred costs	2,224	1,521
Gain on disposal of equipment	(114)	(245)
Impairment of intangible assets	6,000	0
Impairment of other long-lived assets	126	653
Stock-based compensation expense	15,005	13,461
Benefit for deferred income taxes	(15,131)	(16,228)
Non-cash interest expense related to amortization of debt discount	6,260	4,712
Other non-cash items, net	(618)	136
Changes in assets and liabilities:
Accounts receivable	6,586	(7,001)
Prepaid expenses and other current assets	(1,004)	(2,281)
Other assets	(2,125)	(4,655)
Accounts payable	4,665	(5,811)
Accrued expenses and other current liabilities	(1,745)	3,341
Other long-term liabilities	(9,129)	(38)
Deferred revenue	17,054	9,784
Net cash provided by operating activities	68,288	33,814
Investing activities
Purchases of property and equipment	(9,510)	(9,927)
Proceeds from sale of property and equipment and businesses	138	657
Proceeds from maturities of derivatives	1,809	2,596
Purchases of derivatives	(6)	(1,403)
Payment for intangibles	0	(5,750)
Payment for acquisition, net of cash acquired	(621,703)	(144,597)
Net cash used in investing activities	(629,272)	(158,424)
Financing activities
Proceeds from exercise of stock options	340	1,139
Proceeds from issuance of common stock for secondary offering	0	199,302
Proceeds from issuance of treasury stock under employee stock purchase plan	1,582	1,215
Payments of withholding taxes in connection with restricted stock unit vesting	(905)	(2,154)
Proceeds from long-term borrowings, net of debt issuance costs	528,980	88,068
Payments on long-term borrowings	(65,000)	(90,000)
Net cash provided by financing activities	464,997	197,570
Effect of currency exchange rate changes on cash	(1,124)	(210)
Net (decrease) increase in cash, cash equivalents and restricted cash	(97,111)	72,750
Cash, cash equivalents and restricted cash, beginning of period	198,087	128,231
Cash, cash equivalents and restricted cash, end of period	100,976	200,981
Supplemental disclosure of cash flow information
Cash paid for income taxes, net	3,370	292
Cash paid for interest	13,292	2,965
Supplemental disclosure of non-cash investing and financing activities:
Capitalization of stock-based compensation	27	53
Acquisition of property and equipment included in accounts payable and accrued expenses	$ 323	$ 360

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 98,537	$ 198,087
Trade accounts receivable, less allowances for doubtful accounts of $1,713 and $892	43,407	31,569
Prepaid expenses and other current assets	22,854	10,409
Total current assets	164,798	240,065
Property and equipment, net	44,199	34,101
Right-of-use lease assets	44,826	0
Other assets	24,519	13,876
Acquired intangible assets, net	391,786	117,963
Goodwill	543,957	155,086
Total assets	1,214,085	561,091
Current liabilities:
Accounts payable	7,355	2,114
Accrued compensation	20,388	11,620
Accrued expenses and other current liabilities	32,499	15,844
Current portion of deferred revenue	183,361	121,553
Total current liabilities	243,603	151,131
Long-term debt	590,789	118,305
Long-term lease liabilities	43,404	0
Deferred revenue, net of current portion	41,638	29,151
Long-term deferred tax liabilities	40,343	1,456
Other long-term liabilities	8,171	3,838
Total liabilities	967,948	303,881
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $0.01 par value; 6,000,000 shares authorized; no shares issued	0	0
Common stock, $0.01 par value; 45,000,000 shares authorized; 37,401,321 shares issued and 34,732,535 shares outstanding at September 30, 2019; 36,641,317 shares issued and 33,923,135 shares outstanding at December 31, 2018	374	366
Additional paid-in capital	466,738	451,618
Treasury stock, at cost (2,668,786 and 2,718,182 shares as of September 30, 2019 and December 31, 2018, respectively)	(47,593)	(48,522)
Accumulated other comprehensive (loss) income	(2,253)	1,650
Accumulated deficit	(171,129)	(147,902)
Total stockholders’ equity	246,137	257,210
Total liabilities and stockholders’ equity	$ 1,214,085	$ 561,091