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NASDAQ: TYPE 17.81 +0.05 (+0.28%)
Volume 200,554
11/14/18 04:00 PM Pricing delayed 20 minutes More Stock quote and chart

Monotype Announces Third Quarter 2018 Results

11/02/2018

Net Adjusted EBITDA Increases 13%

Raises Full-Year Profit Expectations for Second Straight Quarter

WOBURN, Mass.--(BUSINESS WIRE)-- Monotype Imaging Holdings Inc. (Nasdaq: TYPE) today announced financial results for the third quarter ended September 30, 2018.

Third quarter 2018 highlights

  • Revenue for the quarter was $58.0 million, a decrease of 4% year over year.
  • Creative Professional revenue was $36.1 million, up 5% year over year.
  • Net income was $3.3 million; Non-GAAP net adjusted EBITDA was $18.3 million, a 13% increase year over year, or 31.5% of revenue.
  • Cash and cash equivalents stood at $70.1 million.

“We exceeded the high end of our guidance for net adjusted EBITDA this quarter, demonstrating our ability to drive profitability across the organization,” said Scott Landers, president and CEO of Monotype. “Our top-line performance continues to be driven by our enterprise sales initiatives as we help the world’s largest brands solve their biggest design and marketing challenges.”

Tony Callini, executive vice president and chief financial officer of Monotype, said, “Our results this quarter demonstrate Monotype’s commitment to improving profitability and focusing on the solutions that have the greatest impact on our customers. We also repurchased a significant number of shares over the last few months, demonstrating our commitment to returning value to shareholders. We will continue to take a disciplined approach to capital investment in an effort to sustainably grow revenue, further improve margins and continue driving shareholder value.”

Third quarter 2018 operating results
Revenue for the quarter decreased 4% to $58.0 million, compared to $60.5 million for the third quarter of 2017. Creative Professional revenue was $36.1 million, a 5% increase from the third quarter of 2017. OEM revenue was $21.9 million, a decrease of 16% from the same period in 2017.

Gross margin for the quarter was 82.3% compared to 82.5% in the prior year quarter.

Net income was $3.3 million, compared to net income of $1.3 million in the third quarter of 2017. Earnings per diluted share was $0.08, compared to earnings per diluted share of $0.03 in the prior year.

Non-GAAP net income, which excludes the amortization of intangible assets, stock-based compensation expense, acquisition-related compensation expense, and non-recurring expenses, net of taxes, was $9.0 million, compared to $4.9 million in the third quarter of 2017. Non-GAAP earnings per diluted share were $0.22 compared to $0.12 in the prior year period.

Non-GAAP net adjusted EBITDA was $18.3 million, or 31.5% of revenue, compared to $16.1 million in the third quarter of 2017. In the first quarter of 2018, Monotype updated its definition of non-GAAP net adjusted EBITDA to include the add back of non-recurring expense to GAAP income (loss) from operations. Accordingly, all non-GAAP financial measures have been recast for the three and nine months ended September 30, 2017, to add back certain advisor fees included in non-recurring expenses.

Cash and cash flow
Monotype had cash and cash equivalents of $70.1 million as of September 30, 2018, compared to $75.8 million as of June 30, 2018 and $79.5 million as of September 30, 2017. The company generated $8.1 million of cash from operations in the third quarter of 2018, a decrease from $9.1 million generated in the prior year quarter primarily due to the payment of certain non-recurring obligations. During the third quarter of 2018, the company repaid $5.0 million on its outstanding revolving line of credit.

In the third quarter, Monotype repurchased approximately 282,000 shares of common stock on the open market at prevailing market prices, for a total consideration of $5.7 million, and another approximately 315,000 shares of common stock for incremental consideration of $6.3 million in October 2018.

Quarterly dividend
Monotype’s most recent dividend payment of $0.116 per share was paid on October 19, 2018, to shareholders of record as of the close of business on October 1, 2018. A dividend of $0.116 cents per share will be paid on January 22, 2019, to shareholders of record as of the close of business on January 2, 2019.

Financial outlook
Monotype is updating its full-year financial outlook to reflect higher expected non-GAAP net adjusted EBITDA, GAAP earnings per diluted share and non-GAAP earnings per diluted share, and lower operating expenses. Monotype’s fourth quarter and updated full-year financial guidance are set forth in the following tables:

(in $ millions, except for per share data)       Q4 2018     Full-Year 2018
Revenue $63.7 – $67.7 $239.0 – $243.0
Non-GAAP net adjusted EBITDA $18.7 – $22.0

$65.3 – $68.7

Operating expenses $40.0 – $42.0 $171.7 – $173.7
GAAP earnings per diluted share $0.08 – $0.11 $0.14 – $0.17
Non-GAAP earnings per diluted share $0.22 – $0.25 $0.94 – $0.97

Conference call details
Monotype will host a conference call on Friday, November 2, 2018, at 8:30 a.m. EDT to discuss the company’s third quarter 2018 results and business outlook for 2018. Individuals who are interested in listening to the audio webcast should log on to the Investors portion of the Company section of the Monotype website at www.monotype.com. The live call can also be accessed by dialing (855) 312-5713 (domestic) or (703) 925-2611 (international) using passcode 7753149. If individuals are unable to listen to the live call, the audio webcast will be archived in the Investors portion of the company’s website for one year.

Non-GAAP financial measures
This press release contains non-GAAP financial measures under the rules of the U.S. Securities and Exchange Commission. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget and in reporting to lenders. Non-GAAP financial measures are used by Monotype management in its operating and financial decision-making because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, Monotype believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does, and (b) compare in a consistent manner the company’s current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. Monotype management compensates for these limitations by considering the company’s financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release.

Forward-Looking Statements
This release may contain forward-looking statements including those related to future revenues and operating results; the growth of the company’s business; anticipated savings, costs and expenses resulting from the company’s restructuring actions and changes to the company’s product portfolio; the impact of the company’s revenue recognition policy; the impact of federal tax reform legislation; the execution of the company’s capital allocation and funding strategies; and anticipated business momentum that involve risks and uncertainties that could cause the company’s actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to risks associated with changes in the economic climate including decreased demand for the company’s products or products that incorporate the company’s solutions; risks associated with the company’s ability to adapt products or services to new markets and to anticipate and quickly respond to evolving technologies and customer requirements; risks associated with the company’s development of and the market acceptance of new products, product features or services; risks associated with the anticipated cost savings and expenses from the company’s restructuring actions and wind down of certain of the company’s products including that such savings and expenses are not as predicted; risks associated with increased competition in markets the company serves, including the risks that increased competition may result in the company’s inability to gain new customers, retain existing customers or may force the company to reduce prices; risks associated with the ownership and enforcement of the company’s intellectual property; and risks associated with geopolitical conditions and changes in the financial markets. Additional disclosure regarding these and other risks faced by the company is available in the company’s public filings with the Securities and Exchange Commission, including the risk factors included in the company’s Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent filings. The forward-looking financial information set forth in this release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts to be included in the company’s future earnings releases and public filings. While the company may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so, even if an estimate changes.

About Monotype
Monotype empowers creative minds to build and express authentic brands through design, technology and expertise. Further information is available at www.monotype.com. Follow Monotype on Twitter, Instagram and LinkedIn.

Monotype is a trademark of Monotype Imaging Inc. registered in the U.S. Patent and Trademark Office and may be registered in certain jurisdictions. ©2018 Monotype Imaging Holdings Inc. All rights reserved.

   

MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands)

     

September 30,
2018

December 31,
2017

Assets
Current assets:
Cash and cash equivalents $ 70,120 $ 82,822
Restricted cash 6,000 11,987
Accounts receivable, net of allowance for doubtful accounts 38,571 34,461
Income tax refunds receivable 2,107 1,204
Prepaid expenses and other current assets   7,062     5,714  
Total current assets 123,860 136,188
Property and equipment, net 14,830 16,763
Goodwill 276,798 279,131
Intangible assets, net 76,539 84,856
Restricted cash 6,000
Other assets   7,374     3,112  
Total assets $ 499,401   $ 526,050  
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 2,830 $ 1,467
Accrued expenses and other current liabilities 32,408 43,096
Accrued income taxes payable 304 522
Deferred revenue   11,766     15,102  
Total current liabilities 47,308 60,187
Revolving line of credit 80,000 93,000
Other long-term liabilities 3,014 6,428
Deferred income taxes 29,958 28,004
Reserve for income taxes 2,344 2,783
Accrued pension benefits 6,201 6,280
Stockholders’ equity:
Common stock 44 44
Additional paid-in capital 313,354 298,113
Treasury stock, at cost (72,611 ) (64,083 )
Retained earnings 94,940 97,815
Accumulated other comprehensive loss   (5,151 )   (2,521 )
Total stockholders’ equity   330,576     329,368  
Total liabilities and stockholders’ equity $ 499,401   $ 526,050  
 

 

MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)

         

Three Months Ended
September 30,

Nine Months Ended
September 30,

2018   2017 2018   2017
Revenue $ 57,969 $ 60,507 $ 175,339 $ 170,773
Cost of revenue 9,395 9,719 31,787 28,638
Cost of revenue—amortization of acquired technology   859   885   2,583     2,644  
Total cost of revenue   10,254   10,604   34,370     31,282  
Gross profit 47,715 49,903 140,969 139,491
Operating expenses:
Marketing and selling 18,212 22,453 58,382 66,417
Research and development 7,680 8,997 25,432 27,778
General and administrative 10,786 11,291 38,262 34,032
Restructuring 244 6,814
Amortization of other intangible assets   851   1,021   2,840     3,051  
Total operating expenses   37,773   43,762   131,730     131,278  
Income from operations 9,942 6,141 9,239 8,213
Other (income) expense:
Interest expense, net 826 699 2,353 2,056
Other expense (income), net   361   1,444   (174 )   4,858  
Total other expense   1,187   2,143   2,179     6,914  
Income before provision for income taxes 8,755 3,998 7,060 1,299
Provision for income taxes   5,434   2,737   4,243     1,609  
Net income (loss) $ 3,321 $ 1,261 $ 2,817   $ (310 )
Net income (loss) available to common stockholders—basic $ 3,143 $ 1,196 $ 2,226   $ (310 )

Net income (loss) available to common stockholders—diluted

$ 3,143 $ 1,195 $ 2,226   $ (310 )

Net income (loss) per common share—basic and diluted

Basic $ 0.08 $ 0.03 $ 0.06   $ (0.01 )
Diluted $ 0.08 $ 0.03 $ 0.06   $ (0.01 )
Weighted-average number of shares outstanding:
Basic 40,512,837 39,594,130 40,314,169 39,576,312
Diluted 40,609,643 39,798,779 40,454,518 39,576,312
Dividends declared per common share $ 0.116 $ 0.113 $ 0.348   $ 0.339  
 

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited and in thousands)

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET ADJUSTED EBITDA

 
      Three Months Ended
September 30,
    Nine Months Ended
September 30,
2018  

2017 (1)

2018  

2017 (1)

Net income (loss) $ 3,321 $ 1,261 $ 2,817 $ (310 )
Interest expense, net 826 699 2,353 2,056
Other expense (income), net 361 1,444 (174 ) 4,858
Provision for income taxes   5,434   2,737     4,243     1,609  
Income from operations 9,942 6,141 9,239 8,213
Depreciation and amortization 3,101 3,098 9,548 9,271
Stock based compensation(2) 4,326 5,271 13,163 15,294
Acquisition-related compensation(3) 661 1,407 2,934 4,221
Non-recurring expenses(4)   244   210     11,734     210  
Net adjusted EBITDA $ 18,274 $ 16,127   $ 46,618   $ 37,209  
 
(1)   Net adjusted EBITDA has been recast for the three and nine months ended September 30, 2017 to conform to the current definition by adding back certain advisor fees included in non-recurring expenses.
 
(2) For the nine months ended September 30, 2018, the amount excludes a $1.4 million non-recurring reduction for forfeitures of awards by employees included in the restructuring plan. This amount is included in non-recurring expenses.
 
(3) For the three months ended September 30, 2018, the amount includes $0.7 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition. For the three months ended September 30, 2017, the amount includes $0.9 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2018, the amount includes $2.4 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2017, the amount includes $2.6 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $1.6 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement.
 
(4) For the three months ended September 30, 2018, the amount includes $0.2 million of restructuring expenses. For the three months ended September 30, 2017, the amount includes $0.2 million of certain advisor fees related to shareholder activities. For the nine months ended September 30, 2018, the amount includes $2.7 million of certain advisor fees related to shareholder activities, $2.2 million of royalty expenses, recorded in cost of sales, associated with revenue that was not recognized under ASC 606 and $6.8 million of restructuring expenses. For the nine months ended September 30, 2017, the amount includes $0.2 million of certain advisor fees related to shareholder activities.
 

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited and in thousands)

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME

             
Three Months Ended
September 30,
Nine Months Ended
September 30,
2018

2017 (1)

2018

2017 (1)

GAAP net income (loss) available to common stockholders ─ diluted $ 3,321 $ 1,261 $ 2,817 $ (310 )
Amortization, net of tax of $397, $1,319, $1,258 and $4,619, respectively 1,313 587 4,165 1,076
Stock based compensation, net of tax of $849, $3,648, $2,275 and $12,403, respectively(2) 3,477 1,623 10,888 2,891
Acquisition-related compensation, net of tax of $0, $0, $0 and $0, respectively(3) 661 1,407 2,934 4,221
Non-recurring expenses, net of tax of $57, $145, $2,722 and $170, respectively(4)   187   65     9,012   40  
Non-GAAP net income $ 8,959 $ 4,943   $ 29,816 $ 7,918  
 
(1)   Non-GAAP net income has been recast for the three and nine months ended September 30, 2017 to conform to the current definition by adding back certain advisor fees included in non-recurring expenses.
 
(2) For the nine months ended September 30, 2018, the amount excludes a $1.2 million, net of tax, non-recurring reduction for forfeitures of awards by employees included in the restructuring plan. This amount is included in non-recurring expenses.
 
(3) For the three months ended September 30, 2018, the amount includes $0.7 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition. For the three months ended September 30, 2017, the amount includes $0.9 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2018, the amount includes $2.4 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2017, the amount includes $2.6 million of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $1.6 million of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement.
 
(4) For the three months ended September 30, 2018, the amount includes $0.2 million, net of tax, of restructuring expenses. For the three months ended September 30, 2017, the amount includes $65 thousand, net of tax, of certain advisor fees related to shareholder activities. For the nine months ended September 30, 2018, the amount includes $2.1 million, net of tax, of certain advisor fees related to shareholder activities, $1.7 million, net of tax, of royalty expenses, recorded in cost of sales, associated with revenue that was not recognized under ASC 606 and $5.2 million, net of tax, of restructuring expenses. For the nine months ended September 30, 2017, the amount includes $40 thousand, net of tax, of certain advisor fees related to shareholder activities.
 

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited and in thousands)

RECONCILIATION OF GAAP EARNINGS (LOSS) PER DILUTED SHARE TO NON-GAAP EARNINGS PER DILUTED SHARE

           
Three Months Ended
September 30,
    Nine Months Ended
September 30,

2018

2017 (1)

2018

 

2017 (1)

GAAP income (loss) per diluted share $ 0.08 $ 0.03

$

 

0.06

$ (0.01 )
Amortization, net of tax of $0.01, $0.03, $0.03 and $0.12, respectively 0.03 0.01 0.11 0.03
Stock based compensation, net of tax of $0.02, $0.09, $0.06 and $0.31, respectively(2) 0.09 0.04 0.27 0.07
Acquisition-related compensation, net of tax of $0.00, $0.00, $0.00 and $0.00, respectively(3) 0.02 0.04 0.08 0.11
Non-recurring expenses, net of tax of $0.00, $0.00, $0.07 and $0.00, respectively(4)   0.00 0.00       0.22   0.00  
Non-GAAP earnings per diluted share $ 0.22 $ 0.12  

$

 

0.74

$ 0.20  
 
(1)   Non-GAAP earnings per share has been recast for the three and nine months ended September 30, 2017 to conform to the current definition by adding back certain advisor fees included in non-recurring expenses.
 
(2) For the nine months ended September 30, 2018, the amount excludes a $1.2 million, or $0.03 per share, net of tax, non-recurring reduction for forfeitures of awards by employees included in the restructuring plan. This amount is included in non-recurring expenses.
 
(3) For the three months ended September 30, 2018, the amount includes $0.7 million, or $0.02 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition. For the three months ended September 30, 2017, the amount includes $0.9 million, or $0.02 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million, or $0.01 per share, of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2018, the amount includes $2.4 million, or $0.07 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $0.5 million, or $0.01 per share, of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement. For the nine months ended September 30, 2017, the amount includes $2.6 million, or $0.07 per share, of expense associated with the deferred compensation arrangement resulting from the Olapic acquisition and $1.6 million, or $0.04 per share, of expense associated with the deferred compensation arrangement resulting from the Amendment to the Swyft Merger Agreement.
 
(4) For the three months ended September 30, 2018, the amount includes $0.2 million, or $0.00 per share, net of tax, of restructuring expenses. For the three months ended September 30, 2017, the amount includes $65 thousand, or $0.00 per share, net of tax, of certain advisor fees related to shareholder activities. For the nine months ended September 30, 2018, the amount includes $2.1 million, or $0.05 per share, net of tax, of certain advisor fees related to shareholder activities, $1.7 million, or $0.04 per share, net of tax, of royalty expenses, recorded in cost of sales, associated with revenue that was not recognized under ASC 606 and $5.2 million, or $0.13 per share, net of tax, of restructuring expenses. For the nine months ended September 30, 2017, the amount includes $40 thousand, or $0.00 per share, net of tax, of certain advisor fees related to shareholder activities.
 

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited and in thousands)

         

OTHER INFORMATION
Stock based compensation is comprised of the following:

Three Months Ended
September 30,
Nine Months Ended
September 30,
2018   2017 2018   2017
Marketing and selling $ 2,031 $ 2,455 $ 4,515 $ 7,348
Research and development 900 1,131 2,781 3,227
General and administrative   1,395   1,685   4,465   4,719
Total expensed $ 4,326 $ 5,271 $ 11,761 $ 15,294
Property and equipment   3   44   24   97
Total stock based compensation $ 4,329 $ 5,315 $ 11,785 $ 15,391
 
         

MARKET INFORMATION
The following table presents revenue for our two major markets:

Three Months Ended
September 30,
Nine Months Ended
September 30,
2018   2017 2018   2017
Creative Professional $ 36,114 $ 34,521 $ 109,529 $ 92,234
OEM   21,855   25,986   65,810   78,539
Total $ 57,969 $ 60,507 $ 175,339 $ 170,773
 

 

MONOTYPE IMAGING HOLDINGS INC.
OTHER INFORMATION
(Unaudited and in thousands, except share and per share data)

RECONCILIATION OF FORECAST GAAP EARNINGS PER DILUTED SHARE TO FORECAST NON-GAAP EARNINGS PER DILUTED SHARE

         

Low End of
Guidance

High End of
Guidance

Q4 2018 Q4 2018
GAAP net income $ 3,250 $ 4,450
Amortization, net of tax of $350 and $350, respectively 1,450 1,450
Stock based compensation, net of tax of $800 and $800, respectively 3,600 3,600
Acquisition-related compensation, net of tax of $0 and $0, respectively

500

500

Non-recurring expense, net of tax of $0 and $0, respectively  

 

Non-GAAP net income $ 8,800 $ 10,000
 
GAAP earnings per diluted share $ 0.08 $ 0.11
Amortization, net of tax of $0.01 and $0.01, respectively, per diluted share

0.04

0.04

Stock based compensation, net of tax of $0.02 and $0.02, respectively, per diluted share

0.09

0.09

Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively, per diluted share

0.01

0.01

Non-recurring expense, net of tax of $0.00 and $0.00, respectively, per diluted share  

 

Non-GAAP earnings per diluted share $ 0.22 $ 0.25
 
Weighted average diluted shares used to compute earnings per share 40,200,000 40,200,000

Assumes 64% effective tax rate.

 

 

Low End of
Guidance

High End of
Guidance

2018 2018
GAAP net income $ 5,750 $ 6,950
Amortization, net of tax of $1,700 and $1,700, respectively 5,500 5,500
Stock based compensation, net of tax of $3,150 and $3,150, respectively 14,400 14,400
Acquisition-related compensation, net of tax of $0 and $0, respectively 3,400 3,400
Non-recurring expense, net of tax of $2,750 and $2,750, respectively   9,000   9,000

Non-GAAP net income

  38,050   39,250
 
GAAP earnings per diluted share $ 0.14 $ 0.17
Amortization, net of tax of $0.04 and $0.04, respectively, per diluted share

0.14

0.14

Stock based compensation, net of tax of $0.08 and $0.08, respectively, per diluted share

0.36

0.36

Acquisition-related compensation, net of tax of $0.00 and $0.00, respectively, per diluted share

0.08

0.08

Non-recurring expense, net of tax of $0.07 and $0.07, respectively, per diluted share  

0.22

 

0.22

Non-GAAP earnings per diluted share $ 0.94 $ 0.97
 
Weighted average diluted shares used to compute earnings per share 40,400,000 40,400,000

Assumes 64% effective tax rate.

 

 

MONOTYPE IMAGING HOLDINGS INC.
RECONCILIATION OF FORECAST GAAP NET INCOME
TO FORECAST NON-GAAP NET ADJUSTED EBITDA
(Unaudited and in thousands)

         

 

Low End of
Guidance

 

High End of
Guidance

 

Q4 2018

 

Q4 2018

GAAP net income

 

$

3,250

 

$

4,450

Interest, net

 

1,200

 

1,200

Other (income) expense, net

 

500

 

500

Provision for income taxes

 

 

5,650

 

 

7,750

Income from operations

 

10,600

 

13,900

Depreciation and amortization

 

3,200

 

3,200

Stock based compensation

 

4,400

 

4,400

Acquisition-related compensation

 

500

 

500

Non-recurring expense

 

 

 

 

Non-GAAP net adjusted EBITDA

 

$

18,700

 

$

22,000

 

Low End of
Guidance

High End of
Guidance

2018 2018
GAAP net income $ 5,750 $ 6,950
Interest, net 3,550 3,550
Other (income) expense, net 350 350
Provision for income taxes   10,200   12,350
Income from operations 19,850 23,200
Depreciation and amortization 12,750 12,750
Stock based compensation 17,550 17,550
Acquisition-related compensation

3,400

3,400

Non-recurring expense   11,750   11,750

Non-GAAP net adjusted EBITDA

$

65,300

$

68,650

Investor Relations:
Monotype
Chris Brooks, 781-970-6120
ir@monotype.com

Source: Monotype Imaging Holdings Inc.

NASDAQ: TYPE

Price 17.81 +0.05 (+0.28%)
Volume 200,554
11/14/18 04:00 PM Pricing delayed 20 minutes More Stock quote and chart

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