Textura Announces 33% Revenue Growth in Fourth Quarter 2015

Q4 2015 Results

- Revenue of $23.7 million, up 33% y/y

- Billings (including contractual backlog) of $26.5 million, up 34% y/y

- Adjusted EBITDA profit of $3.9 million

- Adjusted Basic and Diluted EPS of $0.09

- Cash generated from operations of $6.1 million

Fiscal Year 2015 Results

- Revenue of $86.7 million, up 38% y/y

- Billings (including contractual backlog) of $99.0 million, up 36% y/y

- Adjusted EBITDA profit of $10.2 million

- Adjusted Basic EPS of $0.21; Adjusted Diluted EPS of $0.20

- Cash generated from operations of $20.3 million

24 Feb, 2016, 16:01 ET from Textura Corporation

CHICAGO, Feb. 24, 2016 /PRNewswire/ -- Textura Corporation (NYSE: TXTR), a leading provider of collaboration solutions for the construction industry, today announced financial results for the quarter and year ended December 31, 2015.

"The fourth quarter capped a solid year for Textura as we made progress towards our strategic goals. With growing demand for our solutions, evidenced by the addition of several large general contractors in the U.S., we are extending our leading position and market share," said Dave Habiger, interim CEO. "Our proven model of strong revenue growth, Adjusted EBITDA and cash generation further strengthened our ability to continue to invest in our solution roadmap and return value to our shareholders."

Q4 2015 Results

  • Revenue: Revenue was $23.7 million, a year-over-year increase of 33%. Activity-driven revenue increased 37% to $19.5 million and organization-driven revenue increased 17% to $4.3 million. Billings and contractual backlog, otherwise known as bookings, totaled $26.5 million in the fourth quarter, an increase of 34% year over year.
  • Gross Margin: Adjusted gross margin improved to 84.3% and GAAP gross margin was 82.8% for the quarter, compared with 82.4% and 79.8%, respectively, in the quarter ended December 31, 2014.
  • Adjusted EBITDA and Net Loss: Adjusted EBITDA improved to $3.9 million from $0.4 million in the quarter ended December 31, 2014. GAAP net loss was ($8.2) million, compared with a loss of ($3.9) million in the prior-year period. Adjusted Basic and Diluted EPS was $0.09, compared with an Adjusted Basic and Diluted net loss per share of ($0.02) in the quarter ended December 31, 2014. GAAP basic and diluted net loss per share was ($0.31) compared with a net loss per share of ($0.15) in the prior-year period.
  • Operating Metrics: Total active construction projects during the quarter increased 23% year over year to 10,358, representing approximately $202 billion in construction value. New projects added totaled 2,175, representing $24.5 billion in construction value, a 46% increase from the prior-year period. The increase was driven largely by CPM general contractor implementations as well as overall growth in the construction industry. Total number of organizations utilizing Textura's organization-driven solutions increased 20% to 20,884.
  • Liquidity: Cash generated from operations during the quarter was $6.1 million, and free cash flow was $3.9 million for the quarter.

Fiscal Year 2015 Results

  • Revenue: Revenue was $86.7 million, a year-over-year increase of 38%. Activity-driven revenue increased 42% to $70.0 million and organization-driven revenue increased 23% to $16.7 million. Billings and contractual backlog, otherwise known as bookings, totaled $99.0 million for the year, an increase of 36%.
  • Gross Margin: Adjusted gross margin improved to 83.7% and GAAP gross margin was 82.4% for the year, compared with 81.5% and 79.6%, respectively, in the year ended December 31, 2014.
  • Adjusted EBITDA and Net Loss: Adjusted EBITDA improved to $10.2 million from a loss of ($6.1) million in the year ended December 31, 2014. GAAP net loss was ($16.6) million, compared to a loss of ($24.9) million in the prior year. Adjusted Basic EPS was $0.21, compared with an Adjusted Basic net loss per share of ($0.37) in the year ended December 31, 2014. Adjusted Diluted EPS was $0.20 for the year ended December 31, 2015. GAAP basic and diluted net loss per share was ($0.64) compared with a net loss per share of ($0.99) in the prior year.
  • Operating Metrics: Total active construction projects during the year increased 21% year over year to 15,152, representing approximately $256 billion in construction value. New projects added totaled 8,451, representing $100 billion in construction value, which increased 39% from the prior year. Total number of organizations utilizing Textura's organization-driven solutions increased 27% to 24,669.
  • Liquidity: As of December 31, 2015, total cash and cash equivalents was $78.7 million. Cash generated from operations during the year was $20.3 million, and free cash flow was $7.0 million for the year.
  • Deferred Revenue: As of December 31, 2015, deferred revenue was $43.8 million, up 23% from $35.6 million as of December 31, 2014.

Outlook

For the quarter ending March 31, 2016

  • Revenue in the range of $23.7 to $24.7 million
  • Year-over-year revenue growth in the range of 23 - 29%
  • Adjusted Basic and Diluted EPS in the range of $0.07 - $0.11, excluding stock-based compensation expenses of $3.2 million and amortization of acquired intangible assets of $0.8 million, and assuming approximately 26.2 million and 27.2 million weighted-average common shares outstanding, respectively, for the Adjusted Basic and Diluted EPS calculations
  • GAAP basic and diluted net loss per share in the range of ($0.08) - ($0.04), assuming approximately 26.2 million weighted-average common shares outstanding

For the full year ending December 31, 2016

  • Revenue in the range of $106.0 to $111.0 million
  • Year-over-year revenue growth in the range of 22 - 28%
  • Adjusted Basic EPS in the range of $0.35 - $0.50, excluding stock-based compensation expenses of $10.6 million and amortization of acquired intangible assets of $2.7 million, and assuming approximately 26.6 million weighted-average common shares outstanding
  • Adjusted Diluted EPS in the range of $0.33 - $0.48, excluding stock-based compensation expenses of $10.6 million and amortization of acquired intangible assets of $2.7 million, and assuming approximately 27.8 million weighted-average shares outstanding
  • GAAP basic and diluted net loss per share in the range of ($0.15) - $0.00, assuming approximately 26.6 million weighted-average common shares outstanding
  • Cash flow from operations in the range of $25 - $30 million

Conference Call and Webcast Information

Textura plans to host a conference call today at 4:00 p.m. Central Time / 5:00 p.m. Eastern Time to review its financial results for the quarter and year ended December 31, 2015, and to discuss its financial outlook. Interested parties are invited to listen to the conference call by dialing 1-877-407-9039, or for international callers, 1-201-689-8470. Replays of the entire call will be available through March 3, 2016, at 1-877-870-5176, or for international callers, 1-858-384-5517, conference ID #13629008. A webcast of the conference call will also be available on the Investor Relations page of Textura's website at investors.texturacorp.com.

2016 Annual Meeting and Record Dates

Textura will hold its 2016 Annual Meeting of Stockholders on Monday, May 2, 2016 at 8:30 a.m. Central Time at its executive offices located at 1405 Lake Cook Road, Deerfield, IL 60015. The record date for voting eligibility at the Annual Meeting is March 10, 2016.

About Textura

Textura is a leading provider of collaboration and productivity tools for the construction industry. Our solutions serve construction industry professionals across the project lifecycle - from takeoff, estimating, design, pre-qualification and bid management to submittals, field management, performance management and payment. With award winning technology, world-class customer support and consistent growth, Textura is leading the construction industry's technology transformation.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to Textura's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Operating Expenses, Adjusted Gross Margin, Free Cash Flow and Bookings Definitions."

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Adjusted Operating Expenses, Adjusted Gross Margin, Free Cash Flow and Bookings Definitions

Adjusted EBITDA represents loss before interest, taxes, depreciation and amortization, share-based compensation expense, asset impairment expense, severance expense, and acquisition-related and other expenses. Adjusted EBITDA is not determined in accordance with accounting principles generally accepted in the United States (''GAAP''), and is a performance measure used by management in conjunction with traditional GAAP operating performance measures as part of the overall assessment of our performance including:

  • for planning purposes, including the preparation of the annual budget; and
  • to evaluate the effectiveness of business strategies.

We believe the use of Adjusted EBITDA as an additional operating performance metric provides greater consistency for period-to-period comparisons of our operations. For our internal analysis, Adjusted EBITDA removes fluctuations caused by changes in our capital structure (interest expense), non-cash items such as depreciation, amortization and share-based compensation, and infrequent charges.

These excluded amounts in any given period may not directly correlate to the underlying performance of the business or may fluctuate significantly from period to period due to acquisitions, fully amortized tangible or intangible assets, or the timing and pricing of new share-based awards. We also believe Adjusted EBITDA is useful to investors and securities analysts in evaluating our operating performance as it provides them an additional tool to compare business performance across companies and periods.

Adjusted EBITDA is not a measurement under GAAP and should not be considered an alternative to net loss or as an alternative to cash flow from operating activities. The Adjusted EBITDA measurement has limitations as an analytical tool and the method of calculation may vary from company to company.

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue. We believe the use of Adjusted EBITDA Margin as an additional operating performance metric provides greater consistency for period-to-period comparisons of our operations and greater comparability to our peer group.

Adjusted EBITDA Margin is not a measurement under GAAP and should not be considered an alternative to operating margin. The Adjusted EBITDA Margin measurement has limitations as an analytical tool and the method of calculation may vary from company to company.

Adjusted Basic EPS is calculated as Adjusted Net Loss divided by the number of basic weighted-average common shares outstanding during the period. Adjusted Diluted EPS is calculated as Adjusted Net Loss divided by the number of diluted weighted-average common shares outstanding during the period. Adjusted Net Loss is comprised of Textura's net loss adjusted for share-based compensation expense, amortization expense, asset impairment expense, severance expense, and acquisition-related and other expenses recognized during the period. We believe the use of Adjusted Basic and Diluted EPS as additional operating performance metrics provide greater consistency for period-to-period comparisons of our operations and greater comparability to our peer group.

Adjusted Basic and Diluted EPS are not measurements under GAAP and should not be considered alternatives to net loss per share. The Adjusted Basic and Diluted EPS measurements have limitations as analytical tools and the methods of calculation may vary from company to company.

Adjusted Operating Expenses is calculated as total operating expenses, adjusted for share-based compensation expense, amortization expense, asset impairment expense, severance expense, and acquisition-related and other expenses recognized during the period. We believe the use of Adjusted Operating Expenses as an additional operating performance metric provides greater consistency for period-to-period comparisons of our operations and greater comparability to our peer group.

Adjusted Operating Expenses is not a measurement under GAAP and should not be considered an alternative to operating expenses. The Adjusted Operating Expenses measurement has limitations as an analytical tool and the method of calculation may vary from company to company.

Adjusted Gross Margin is calculated as gross margin, adjusted for share-based compensation expense and acquisition-related and other expenses recognized during the period. We believe the use of Adjusted Gross Margin as an additional operating performance metric provides greater consistency for period-to-period comparisons of our operations and greater comparability to our peer group.

Adjusted Gross Margin is not a measurement under GAAP and should not be considered an alternative to gross margin. The Adjusted Gross Margin measurement has limitations as an analytical tool and the method of calculation may vary from company to company.

Free Cash Flow is calculated as net cash provided by operating activities, less purchases of property and equipment, as reflected on the Consolidated Statements of Cash Flow. Free Cash Flow is not a measurement under GAAP and should not be considered an alternative to cash flow from operating activities. The Free Cash Flow measurement has limitations as an analytical tool and the method of calculation may vary from company to company.

Bookings is calculated as billings, defined as change in deferred revenue plus revenue recognized in the period, plus contractual backlog. Bookings is not a measurement under GAAP and should not be considered an alternative to revenue. The Bookings measurement has limitations as an analytical tool and the method of calculation may vary from company to company.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding Textura's future financial performance, market growth, total addressable market, demand for Textura's solutions, and general business conditions and outlook. Any forward-looking statements contained in this press release are based upon Textura's historical performance and its current expectations and projections about future events and financial trends affecting the financial condition of its business. These forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. These forward-looking statements are based on information available to Textura as of the date of this press release, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, trends in the global and domestic economy and the commercial construction industry; our ability to effectively manage our growth; our ability to develop the market for our solutions; competition with our business; abnormal severe winter weather conditions; our dependence on a limited number of client relationships for a significant portion of our revenues; our dependence on a single software solution for a substantial portion of our revenues; the length of the selling cycle to secure new enterprise relationships for our CPM solution, which requires significant investment of resources; our ability to cross-sell our solutions; the continued growth of the market for on-demand software solutions; our ability to develop and bring to market new solutions in a timely manner; our success in expanding our international business and entering new industries; and the availability of suitable acquisitions or partners and our ability to achieve expected benefits from such acquisitions or partnerships. Forward-looking statements speak only as of the date of this press release and we assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable laws.  If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Further information on potential factors that could affect actual results is included under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed on March 6, 2015, our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, which we expect to file on or about March 4, 2016, and our other reports filed with the SEC.

Investor Contact:

Media Contact:

Annie Leschin

Matt Scroggins

Textura Corporation, Investor Relations

matt.scroggins@texturacorp.com

annie@streetsmartir.com

224-254-6652

415-775-1788

or

ir@texturacorp.com

847-457-6553

 

Textura Corporation

Consolidated Balance Sheets (unaudited)

(in thousands, except per share amounts)

December 31,

December 31,

2015

2014

Assets

Current assets

Cash and cash equivalents   

$          78,669

$          66,758

Accounts receivable, net of allowance of $193 and $254 at December 31, 2015 and 2014, respectively

6,425

8,274

Prepaid expenses and other current assets   

1,225

1,163

Total current assets   

86,319

76,195

Property and equipment, net   

34,214

26,103

Restricted cash   

2,839

1,780

Goodwill   

52,848

52,848

Intangible assets, net   

7,965

12,132

Other assets   

157

226

Total assets   

$        184,342

$        169,284

Liabilities and Stockholders' Equity 

Current liabilities

Accounts payable   

$            2,701

$            1,699

Accrued expenses   

11,378

9,874

Deferred revenue, short-term

40,089

31,923

Leases payable, short-term

-

412

Total current liabilities   

54,168

43,908

Deferred revenue, long-term

3,724

3,660

Other long-term liabilities

2,040

1,028

Total liabilities   

59,932

48,596

Stockholders' equity

Common stock, $.001 par value; 90,000 shares authorized; 26,861 and 26,247 shares issued and 26,190 and 25,588 shares outstanding at December 31, 2015 and 2014, respectively

 

26

 

26

Additional paid in capital   

361,370

340,344

Treasury stock, at cost; 671 and 659 shares at December 31, 2015 and 2014, respectively 

(10,309)

(9,923)

Accumulated other comprehensive loss

(662)

(340)

Accumulated deficit   

(226,015)

(209,419)

Total Textura Corporation stockholders' equity 

124,410

120,688

Total liabilities and stockholders' equity

$        184,342

$        169,284

 

Textura Corporation

Consolidated Statements of Operations (unaudited)

(in thousands, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Revenues   

$ 23,732

$ 17,862

$  86,729

$  62,968

Operating expenses

Cost of services (exclusive of depreciation and amortization shown separately below)   

4,079

3,606

15,254

12,851

General and administrative   

13,848

6,489

36,661

25,249

Sales and marketing   

5,204

5,143

21,013

20,518

Technology and development   

5,326

4,490

20,404

21,031

Depreciation and amortization   

2,361

1,903

8,628

7,741

Asset impairment

1,070

-

1,070

-

Total operating expenses   

31,888

21,631

103,030

87,390

Loss from operations   

(8,156)

(3,769)

(16,301)

(24,422)

Other income (expense), net

Interest income and other expense, net

13

19

43

70

Interest expense   

(8)

(27)

(31)

(133)

Total other income (expense), net   

5

(8)

12

(63)

Loss before income taxes   

(8,151)

(3,777)

(16,289)

(24,485)

Income tax provision

63

130

307

370

Net loss   

$ (8,214)

$ (3,907)

$(16,596)

$(24,855)

Less: Net loss attributable to non-controlling interest 

-

-

-

(169)

Net loss attributable to Textura Corporation   

(8,214)

(3,907)

(16,596)

(24,686)

Accretion of redeemable non‑controlling interest   

-

-

-

199

Net loss attributable to Textura Corporation common stockholders   

$ (8,214)

$ (3,907)

$(16,596)

$(24,885)

Net loss per share attributable to Textura Corporation common stockholders, basic and diluted   

$  (0.31)

$  (0.15)

$    (0.64)

$    (0.99)

Weighted-average number of common shares outstanding, basic and diluted   

26,095

25,487

25,860

25,184

 

Textura Corporation

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Cash flows from operating activities

Net loss   

$ (8,214)

$ (3,907)

$(16,596)

$(24,855)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization   

2,361

1,903

8,628

7,741

Asset impairment charge

1,070

-

1,070

-

Deferred income taxes

80

80

320

320

Non-cash interest income

-

-

-

(1)

Share‑based compensation   

6,326

1,971

14,108

8,375

Changes in operating assets and liabilities:

  Accounts receivable   

3,546

(1,082)

1,807

(2,680)

  Prepaid expenses and other assets   

(361)

563

(223)

808

  Deferred revenue, including long-term portion   

(1,291)

1,946

8,246

9,762

  Accounts payable   

456

58

812

418

  Accrued expenses and other   

2,154

163

2,134

1,937

Net cash provided by operating activities   

6,127

1,695

20,306

1,825

Cash flows from investing activities

Increase in restricted cash and escrow funds

(466)

-

(1,060)

(1,250)

Purchases of property and equipment, including software development costs   

(2,222)

(2,339)

(13,301)

(8,133)

Net cash used in investing activities   

(2,688)

(2,339)

(14,361)

(9,383)

Cash flows from financing activities

Principal payments on loan payable

-

(141)

-

(246)

Payments on capital leases

-

(217)

(412)

(825)

Proceeds from exercise of options and warrants

2,455

1,922

6,919

4,135

Buyout of non-controlling interest

-

-

-

(1,563)

Net repurchase of common shares 

(326)

(24)

(386)

(4,092)

Net cash provided by (used in) financing activities   

2,129

1,540

6,121

(2,591)

Effect of changes in foreign exchange rates on cash and cash equivalents

(66)

(173)

(155)

(223)

Net increase (decrease) in cash and cash equivalents   

5,502

723

11,911

(10,372)

Cash and cash equivalents

Beginning of period   

73,167

66,035

66,758

77,130

End of period   

$ 78,669

$ 66,758

$  78,669

$  66,758

 

Textura Corporation

Operating Metrics (unaudited)

(dollars in thousands and where otherwise indicated)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

Activity-driven revenue

$  19,472

$  14,233

$  70,022

$  49,393

Organization-driven revenue

4,260

3,629

16,707

13,575

Total revenue

$  23,732

$  17,862

$  86,729

$  62,968

Activity-driven revenue:

Number of projects added

2,175

1,625

8,451

6,858

Client-reported construction value added (billions)

$      24.5

$     16.8

$   100.0

$     72.2

Active projects during period

10,358

8,450

15,152

12,521

Organization-driven revenue:

Number of organizations

20,884

17,476

24,669

19,456

 

The following tables provide our calculations to arrive at Bookings:

Three Months Ended December 31, 2015

Twelve Months Ended December 31, 2015

(in thousands)

Deferred revenue, beginning of period

$                45,102

$              35,583

Deferred revenue, end of period

43,813

43,813

Net change

(1,289)

8,230

Revenue recognized during the period

23,732

86,729

Billings

22,443

94,959

Contractual backlog, end of period

4,043

4,043

Bookings

$                26,486

$              99,002

 

Three Months Ended December 31, 2014

Twelve Months Ended December 31, 2014

(in thousands)

Deferred revenue, beginning of period

$                    33,647

$                       25,831

Deferred revenue, end of period

35,583

35,583

Net change

1,936

9,752

Revenue recognized during the period

17,862

62,968

Billings

19,798

72,720

Contractual backlog, end of period

-

-

Bookings

$                      19,798

$                        72,720

 

The following table reconciles Adjusted EBITDA to the most directly comparable GAAP measure, net loss:

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands)

Net loss

$(8,214)

$(3,907)

$(16,596)

$(24,855)

Total other (income) expense, net

(5)

8

(12)

63

Income tax provision

63

130

307

370

Depreciation and amortization

2,361

1,903

8,628

7,741

EBITDA

(5,795)

(1,866)

(7,673)

(16,681)

Share-based compensation

6,326

1,971

14,108

8,375

Asset impairment charge

1,070

-

1,070

-

Severance expense

1,771

-

1,771

1,488

Acquisition-related and other expenses*

503

320

909

764

Adjusted EBITDA

$  3,875

$    425

$  10,185

$  (6,054)

* In the three months ended December 31, 2015, acquisition-related and other expenses represented certain strategic, CEO transition and tax-related costs as well as a lease exit cost. In the twelve months ended December 31, 2015, acquisition-related and other expenses also included certain legal costs related to the previously disclosed CEO transition and securities litigation. In 2014, acquisition-related and other expenses represented acquisition, strategic transaction and certain tax-related costs.

 

The following table reconciles Adjusted EBITDA Margin to the most directly comparable GAAP measure, operating margin:

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(dollars in thousands)

Revenue

$ 23,732

$ 17,862

$  86,729

$  62,968

Operating expenses

31,888

21,631

103,030

87,390

  Operating loss

$ (8,156)

$ (3,769)

$(16,301)

$(24,422)

  Operating margin

(34)%

(21)%

(19)%

(39)%

Adjustments, as a % of revenue:

Depreciation and amortization 

10%

11%

10%

12%

Share-based compensation 

27%

11%

17%

14%

Asset impairment charge

4%

-%

1%

-%

Severance expense

7%

-%

2%

2%

Acquisition‑related and other expenses*

2%

1%

1%

1%

  Adjusted EBITDA Margin

16%

2%

12%

(10)%

* In the three months ended December 31, 2015, acquisition-related and other expenses represented certain strategic, CEO transition and tax-related costs as well as a lease exit cost. In the twelve months ended December 31, 2015, acquisition-related and other expenses also included certain legal costs related to the previously disclosed CEO transition and securities litigation. In 2014, acquisition-related and other expenses represented acquisition, strategic transaction and certain tax-related costs.

 

The following table reconciles Adjusted EPS to the most directly comparable GAAP measure, net loss per share:

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands, except per share amounts)

Net loss attributable to Textura Corporation common shareholders

$  (8,214)

$  (3,907)

$  (16,596)

$  (24,885)

Accretion of redeemable non-controlling interest

-

-

-

199

Net loss attributable to non-controlling interest

-

-

-

(169)

Net loss

$(8,214)

$(3,907)

$(16,596)

$(24,855)

Share-based compensation

6,326

1,971

14,108

8,375

Amortization of intangible assets

1,007

1,131

4,166

4,977

Asset impairment charge

1,070

-

1,070

-

Severance expense

1,771

-

1,771

1,488

Acquisition-related and other expenses (1)

503

320

909

764

Adjusted net income (loss)

$  2,463

$   (485)

$    5,428

$  (9,251)

Weighted-average number of common shares outstanding - basic and diluted

26,095

25,487

25,860

25,184

Dilutive equity awards (2)

1,542

-

1,708

-

Adjusted weighted-average number of common shares outstanding - diluted

27,637

25,487

27,568

25,184

Net loss per share

$  (0.31)

$  (0.15)

$    (0.64)

$    (0.99)

Adjusted Basic EPS (3)

$    0.09

$  (0.02)

$      0.21

$    (0.37)

Adjusted Diluted EPS (3)

$    0.09

$  (0.02)

$      0.20

$    (0.37)

1) In the three months ended December 31, 2015, acquisition-related and other expenses represented certain strategic, CEO transition and tax-related costs as well as a lease exit cost. In the twelve months ended December 31, 2015, acquisition-related and other expenses also included certain legal costs related to the previously disclosed CEO transition and securities litigation. In 2014, acquisition-related and other expenses represented acquisition, strategic transaction and certain tax-related costs.

2) In the three and twelve months ended December 31, 2015, dilutive equity awards totaled 1.5 million and 1.7 million shares, respectively. Dilutive equity awards represent potential common stock instruments such as stock options, unvested restricted stock units and warrants. Potential common stock instruments were excluded for the 2014 periods as their effect would have been anti-dilutive.

3) Adjusted Basic EPS is calculated using adjusted net income (loss) divided by the GAAP weighted-average number of common shares outstanding - basic and diluted. For the 2015 periods, Adjusted Diluted EPS was calculated using adjusted net income (loss) divided by the adjusted weighted-average number of common shares outstanding - diluted. For the 2014 periods, given the loss positions, Adjusted Diluted EPS equals Adjusted Basic EPS.

 

The following tables reconcile Adjusted Operating Expenses to the most directly comparable GAAP measure, operating expenses:

Three Months Ended December 31, 2015

Share-Based

Compensation

and

Acquisition-

GAAP

Amortization

Asset

related and

Adjusted

Operating

of Intangible

Impairment

Severance

Other

Operating

Expenses

Assets

Charge

Expense

Expenses*

Expenses

(in thousands)

Cost of services 

$     4,079

$               301

$              -

$             -

$             48

$     3,730

General and administrative 

13,848

5,569

-

1,771

455

6,053

Sales and marketing 

5,204

265

-

-

-

4,939

Technology and development 

5,326

191

-

-

-

5,135

Depreciation and amortization 

2,361

1,007

-

-

-

1,354

Asset impairment 

1,070

-

1,070

-

-

-

   Total 

$   31,888

$            7,333

$        1,070

$      1,771

$           503

$   21,211

* In the three months ended December 31, 2015, acquisition-related and other expenses represented certain strategic, CEO transition and tax-related costs as well as a lease exit cost.

 

Twelve Months Ended December 31, 2015

Share-Based

Compensation

and

Acquisition-

GAAP

Amortization

Asset

related and

Adjusted

Operating

of Intangible

Impairment

Severance

Other

Operating

Expenses

Assets

Charge

Expense

Expenses*

Expenses

(in thousands)

Cost of services 

$   15,254

$               946

$              -

$            -

$           184

$   14,124

General and administrative 

36,661

11,308

-

1,771

725

22,857

Sales and marketing 

21,013

1,035

-

-

-

19,978

Technology and development 

20,404

819

-

-

-

19,585

Depreciation and amortization 

8,628

4,166

-

-

-

4,462

Asset impairment 

1,070

-

1,070

-

-

-

   Total 

$  103,030

$           18,274

$        1,070

$      1,771

$           909

$   81,006

* In the twelve months ended December 31, 2015, acquisition-related and other expenses also included certain legal costs related to the previously disclosed CEO transition and securities litigation.

 

Three Months Ended December 31, 2014

Share-Based

Compensation

and

Acquisition-

GAAP

Amortization

related and

Adjusted

Operating

of Intangible

Other

Operating

Expenses

Assets

Expenses*

Expenses

(in thousands)

 Cost of services 

$     3,606

$               196

$           275

$     3,135

 General and administrative 

6,489

1,328

45

5,116

 Sales and marketing 

5,143

279

-

4,864

 Technology and development 

4,490

168

-

4,322

 Depreciation and amortization 

1,903

1,131

-

772

   Total 

$   21,631

$            3,102

$           320

$   18,209

* In the three months ended December 31, 2014, acquisition-related and other expenses represent strategic transaction and certain tax-related costs.

 

Twelve Months Ended December 31, 2014

Share-Based

Compensation

and

Acquisition-

GAAP

Amortization

related and

Adjusted

Operating

of Intangible

Other

Operating

Expenses

Assets

Expenses*

Expenses

(in thousands)

 Cost of services 

$   12,851

$               594

$           619

$   11,638

 General and administrative 

25,249

4,617

239

20,393

 Sales and marketing 

20,518

1,501

592

18,425

 Technology and development 

21,031

1,663

802

18,566

 Depreciation and amortization 

7,741

4,977

-

2,764

   Total 

$   87,390

$           13,352

$        2,252

$   71,786

* In the twelve months ended December 31, 2014, acquisition-related and other expenses represented acquisition, strategic transaction and certain tax-related costs.

 

The following table reconciles Adjusted Gross Margin to the most directly comparable GAAP measure, gross margin:

Three Months Ended

Twelve Months Ended

December,

December 31,

2015

2014

2015

2014

(dollars in thousands)

 Revenue 

$ 23,732

$       17,862

$ 86,729

$ 62,968

 Cost of services 

4,079

3,606

15,254

12,851

   Gross profit 

$ 19,653

$       14,256

$71,475

$50,117

   Gross margin 

82.8%

79.8%

82.4%

79.6%

 Adjustments: 

 Share-based compensation as % of revenue 

1.3%

1.1%

1.1%

0.9%

 Acquisition-related and other expenses as % of revenue* 

0.2%

1.5%

0.2%

1.0%

   Adjusted Gross Margin  

84.3%

82.4%

83.7%

81.5%

* Acquisition-related and other expenses represented certain tax-related costs.

 

The follow table reconciles Free Cash Flow to the most directly comparable GAAP measure, net cash from operating activities:

Three Months Ended December 31, 2015

Twelve Months Ended December 31, 2015

(in thousands)

Net cash provided by operating activities

$                     6,127

$                20,306

Purchases of property and equipment, including software development costs   

(2,222)

(13,301)

Free Cash Flow

$                     3,905

$                  7,005

 

The following tables reconcile Basic and Diluted Adjusted EPS guidance to the most directly comparable GAAP measure, net loss per share:

Three Months Ending

Twelve Months Ending

March 31, 2016

December 31, 2016

High End

Low End

High End

Low End

 Basic net loss per share 

$    (0.04)

$   (0.08)

$         -

$   (0.15)

 Share-based compensation 

0.12

0.12

0.40

0.40

 Amortization of intangible assets 

0.03

0.03

0.10

0.10

   Adjusted Basic EPS  

$      0.11

$     0.07

$      0.50

$     0.35

Three Months Ending

Twelve Months Ending

March 31, 2016

December 31, 2016

High End

Low End

High End

Low End

 Diluted net loss per share 

$    (0.04)

$   (0.08)

$         -

$   (0.15)

 Share-based compensation 

0.12

0.12

0.38

0.38

 Amortization of intangible assets 

0.03

0.03

0.10

0.10

   Adjusted Diluted EPS  

$      0.11

$     0.07

$      0.48

$     0.33

 

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SOURCE Textura Corporation



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