Textura Announces 42% Revenue Growth in Second Quarter 2015

Q2 2015 Results

- Revenue of $21.3 million, up 42% y/y

- Billings of $24.9 million, up 36% y/y

- Adjusted EBITDA profit of $2.3 million

- Adjusted EPS of $0.05

- Cash generated from operations of $4.6 million

Jul 30, 2015, 16:01 ET from Textura Corporation

CHICAGO, July 30, 2015 /PRNewswire/ -- Textura Corporation (NYSE: TXTR), a leading provider of collaboration solutions for the construction industry, today announced financial results for the quarter ended June 30, 2015.

"Once again we delivered strong results in the June quarter. We added large general contractors to our growing list of customers, introduced another new product to the market, and launched our first EPP customers this quarter," said Dave Habiger, interim CEO. "With each passing quarter, we are demonstrating the exceptional nature of our financial model and extending our leading position in the industry."

Q2 2015 Key Business Highlights

  • Textura was named the fifth fastest-growing company in Chicago in Crain's Chicago Business "Fast Fifty" based on revenue growth from 2009 to 2014 of 1,887 percent and was the second fastest-growing technology company on the list.
  • Textura launched PerformanceTracker™, expanding its suite of solutions. PerformanceTracker transforms the performance evaluation process for general contractors to yield data-driven, actionable insights and full visibility into the performance of subcontractors and other project partners.
  • Webcor Builders was announced as joining the growing list of large general contractors on CPM. Webcor is a $1.2 billion full service general contractor ranking No. 50 on Engineering News-Record's 2015 ENR 400 listing of top general contractors.

Q2 2015 Results

  • Revenue: Revenue was $21.3 million, a year-over-year increase of 42%. Activity-driven revenue increased 48% to $17.2 million and organization-driven revenue increased 21% to $4.1 million. Billings of $24.9 million increased 36% year over year.
  • Gross Margin: Adjusted gross margin improved to 83.8% and GAAP gross margin was 82.4% for the quarter, compared with 80.8% and 79.8%, respectively, in the quarter ended June 30, 2014.
  • Adjusted EBITDA and Net Loss: Adjusted EBITDA was $2.3 million, compared with a loss of ($2.2) million in the quarter ended June 30, 2014. GAAP net loss was ($2.9) million, an improvement from a loss of ($6.1) million in the prior-year period. Adjusted EPS was $0.05 compared with a loss of ($0.12) in the quarter ended June 30, 2014. GAAP net loss per share was ($0.11) compared with a loss of ($0.24) in the prior-year period.
  • Operating Metrics: Total active construction projects increased 20% year over year to 9,123, representing approximately $200 billion of construction value. New projects added totaled 2,280, representing $25.8 billion in construction value, which increased 46% 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 25% to 19,877.
  • Total Cash and Cash Equivalents: As of June 30, 2015, total cash and cash equivalents was $68.0 million. Cash generated by operations during the quarter was $4.6 million. Free cash flow was negative for the quarter ended June 30, 2015, due to Textura's capital investments in its downtown office location and the purchase of certain leased assets.
  • Deferred Revenue: Deferred revenue at June 30, 2015 was $41.5 million, up 9% from $37.9 million at March 31, 2015 and up 33% from $31.1 million at June 30, 2014.

Outlook

For the quarter ending September 30, 2015

  • Revenue in the range of $22.4 to $23.4 million
  • Year-over-year revenue growth in the range of 37 - 43%
  • Adjusted EPS in the range of $0.05 - $0.07, excluding stock-based compensation expenses of $3.0 million and amortization of acquired intangible assets of $1.1 million, and assuming approximately 25.9 million weighted-average common shares outstanding
  • GAAP net loss per share in the range of ($0.11) - ($0.09)

For the full year ending December 31, 2015

  • Revenue in the range of $88 to $92 million
  • Year-over-year revenue growth in the range of 40 - 46%
  • Adjusted EPS in the range of $0.18 - $0.21, excluding stock-based compensation expenses of $10.6 million and amortization of acquired intangible assets of $4.2 million, and assuming approximately 25.9 million weighted-average common shares outstanding
  • GAAP net loss per share in the range of ($0.40) - ($0.37)
  • Cash flow from operations in the range of $17 to $21 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 ended June 30, 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 August 6, 2015, at 1-877-870-5176, or for international callers, 1-858-384-5517, conference ID #13614359. A webcast of the conference call will also be available on the Investor Relations page of Textura's website at investors.texturacorp.com.  

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, LEED® 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 and Free Cash Flow Definitions."

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

Adjusted EBITDA represents loss before interest, taxes, depreciation and amortization, share-based compensation 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 EPS is calculated as Adjusted Net Loss divided by the number of 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, and acquisition-related and other expenses recognized during the period. We believe the use of Adjusted EPS 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 EPS is not a measurement under GAAP and should not be considered an alternative to net loss per share.  The Adjusted EPS measurement has limitations as an analytical tool and the method 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, 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 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.

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 Form10-K filed on March 6, 2015, 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)

June 30,  2015

December 31,  2014

Assets

Current assets

Cash and cash equivalents

$

67,980

$

66,758

Accounts receivable, net of allowance for doubtful accounts of $207 at June 30, 2015 and $254 at December 31, 2014

9,520

8,274

Prepaid expenses and other current assets

1,282

1,163

Total current assets

78,782

76,195

Property and equipment, net

32,161

26,103

Restricted cash

2,180

1,780

Goodwill

52,848

52,848

Intangible assets, net

10,025

12,132

Other assets

1,331

226

Total assets

$

177,327

$

169,284

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

1,874

$

1,699

Accrued expenses

10,520

9,874

Deferred revenue, short-term

37,133

31,923

Leases payable, short-term

4

412

Total current liabilities

49,531

43,908

Deferred revenue, long-term

4,364

3,660

Other long-term liabilities

1,155

1,028

Total liabilities

55,050

48,596

Stockholders' equity

Common stock, $.001 par value; 90,000 shares authorized; 26,516 and 26,247 shares issued and 25,860 and 25,588 shares outstanding at June 30, 2015 and December 31, 2014, respectively

26

26

Additional paid in capital

348,031

340,344

Treasury stock, at cost; 656 and 659 shares at June 30, 2015 and December 31, 2014, respectively

(10,013)

(9,923)

Accumulated other comprehensive loss

(428)

(340)

Accumulated deficit

(215,339)

(209,419)

Total stockholders' equity

122,277

120,688

Total liabilities and stockholders' equity

$

177,327

$

169,284

 

Textura Corporation Consolidated Statements of Operations (unaudited) (in thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

Revenues

$

21,283

$

14,965

$

40,484

$

28,752

Operating expenses

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

3,750

3,028

7,328

5,910

General and administrative

7,649

6,473

14,481

12,528

Sales and marketing

5,379

4,663

10,572

9,506

Technology and development

5,190

4,819

9,899

10,175

Depreciation and amortization

2,089

1,962

3,965

3,848

Total operating expenses

24,057

20,945

46,245

41,967

Loss from operations

(2,774)

(5,980)

(5,761)

(13,215)

Other income (expense), net

Interest income and other expense, net

5

27

20

45

Interest expense

(4)

(35)

(15)

(78)

Total other income (expense), net

1

(8)

5

(33)

Loss before income taxes

(2,773)

(5,988)

(5,756)

(13,248)

Income tax provision

80

80

164

160

Net loss

$

(2,853)

$

(6,068)

$

(5,920)

$

(13,408)

Less: Net loss attributable to non-controlling interest

(94)

(169)

Net loss attributable to Textura Corporation

(2,853)

(5,974)

(5,920)

(13,239)

Accretion of redeemable non‑controlling interest

105

199

Net loss available to Textura Corporation common stockholders

$

(2,853)

$

(6,079)

$

(5,920)

$

(13,438)

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

$

(0.11)

$

(0.24)

$

(0.23)

$

(0.54)

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

25,774

25,001

25,707

24,908

 

Textura Corporation Consolidated Statements of Cash Flows (unaudited) (in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

Cash flows from operating activities

Net loss

$

(2,853)

$

(6,068)

$

(5,920)

$

(13,408)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

2,089

1,962

3,965

3,848

Deferred income taxes

80

80

160

160

Non-cash interest expense

(1)

Share‑based compensation

2,649

1,830

4,620

3,766

Changes in operating assets and liabilities:

Accounts receivable

(1,906)

102

(1,247)

(1,618)

Prepaid expenses and other assets

(162)

(314)

(202)

105

Deferred revenue, including long-term portion

3,580

3,314

5,914

5,317

Accounts payable

49

712

(13)

582

Accrued expenses and other

1,076

683

517

220

Net cash provided by (used in) operating activities

4,602

2,301

7,794

(1,029)

Cash flows from investing activities

Increase in restricted cash and escrow funds

(826)

(1,226)

Purchases of property and equipment

(5,001)

(2,073)

(7,890)

(3,625)

Net cash used in investing activities

(5,827)

(2,073)

(9,116)

(3,625)

Cash flows from financing activities

Principal payments on loan payable

(95)

(99)

Payments on capital leases

(182)

(202)

(408)

(397)

Proceeds from exercise of options and warrants

1,947

957

3,067

1,552

Buyout of non-controlling interest

(1,563)

(1,563)

Net issuance (repurchase) of common shares (treasury)

(147)

(4,096)

(91)

(4,096)

Net cash provided by (used in) financing activities

1,618

(4,999)

2,568

(4,603)

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

97

(5)

(24)

5

Net increase (decrease) in cash and cash equivalents

490

(4,776)

1,222

(9,252)

Cash and cash equivalents

Beginning of period

67,490

72,654

$

66,758

$

77,130

End of period

$

67,980

$

67,878

$

67,980

$

67,878

 

Textura Corporation Operating Metrics (unaudited) (dollars in thousands and where otherwise indicated)

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

Activity‑driven revenue

$

17,172

$

11,581

$

32,165

$

22,238

Organization‑driven revenue

4,111

3,384

8,319

6,514

Total revenue

$

21,283

$

14,965

$

40,484

$

28,752

Activity‑driven revenue:

    Number of projects added

2,280

1,729

4,074

3,441

Client‑reported construction value added (billions)

$

25.8

$

17.7

$

49.9

$

37.2

Active projects during period

9,123

7,578

10,857

8,961

Organization‑driven revenue:

Number of organizations

19,877

15,922

20,820

16,497

 

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

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

(in thousands)

Net loss

$

(2,853)

$

(6,068)

$

(5,920)

$

(13,408)

Total other (income) expense, net

(1)

8

(5)

33

Income tax provision

80

80

164

160

Depreciation and amortization

2,089

1,962

3,965

3,848

EBITDA

(685)

(4,018)

(1,796)

(9,367)

Share‑based compensation expense

2,649

1,830

4,620

3,766

Acquisition‑related and other expenses*

339

339

74

Adjusted EBITDA

$

2,303

$

(2,188)

$

3,163

$

(5,527)

* In 2015, acquisition-related and other expenses represent certain tax-related costs and certain legal costs related to the previously disclosed CEO transition and securities litigation. In 2014, acquisition-related and other expenses represent costs related to the Latista acquisition.

 

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

Three Months Ended March 31,

Three Months Ended June 30,

2015

2014

2015

2014

(dollars in thousands)

Revenue

$

19,201

$

13,787

$

21,283

$

14,965

Operating expenses

22,188

21,022

24,057

20,945

Operating income (loss)

$

(2,987)

$

(7,235)

$

(2,774)

$

(5,980)

Operating margin

(16)

%

(52)

%

(13)

%

(40)

%

Adjustments:

Depreciation and amortization as % of revenue

10

%

14

%

10

%

13

%

Share-based compensation expense as % of revenue

10

%

14

%

12

%

12

%

Acquisition‑related and other expenses as % of revenue*

%

%

2

%

%

Adjusted EBITDA Margin

4

%

(24)

%

11

%

(15)

%

* In 2015, acquisition-related and other expenses represent certain tax-related costs and certain legal costs related to the previously disclosed CEO transition and securities litigation. In 2014, acquisition-related and other expenses represent costs related to the Latista acquisition.

 

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

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

(in thousands, except per share amounts)

Net loss available to Textura Corporation common shareholders

$

(2,853)

$

(6,079)

$

(5,920)

$

(13,438)

Accretion of redeemable non-controlling interest

105

199

Net loss attributable to non-controlling interest

(94)

(169)

Net loss

$

(2,853)

$

(6,068)

$

(5,920)

$

(13,408)

Share-based compensation expense

2,649

1,830

4,620

3,766

Amortization of intangible assets

1,053

1,282

2,106

2,564

Acquisition-related and other expenses*

339

339

74

Adjusted net loss

$

1,188

$

(2,956)

$

1,145

$

(7,004)

Weighted-average common shares used in basic and diluted EPS

25,774

25,001

25,707

24,908

Adjusted EPS

$

0.05

$

(0.12)

$

0.04

$

(0.28)

Net loss per share

$

(0.11)

$

(0.24)

$

(0.23)

$

(0.54)

Accretion of redeemable non-controlling interest

0.01

Share-based compensation expense

0.11

0.07

0.18

0.15

Amortization of intangible assets

0.04

0.05

0.08

0.10

Acquisition-related and other expenses*

0.01

0.01

Adjusted EPS

$

0.05

$

(0.12)

$

0.04

$

(0.28)

* In 2015, acquisition-related and other expenses represent certain tax-related costs and certain legal costs related to the previously disclosed CEO transition and securities litigation. In 2014, acquisition-related and other expenses represent costs related to the Latista acquisition.

 

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

Three Months Ended June 30, 2015

GAAP Operating Expenses

Share-Based Compensation and Amortization of Intangible Assets

Acquisition-related and other expenses*

Adjusted Operating Expenses

(in thousands)

Cost of services

$

3,750

$

180

$

136

$

3,434

General and administrative

7,649

2,030

203

5,416

Sales and marketing

5,379

233

5,146

Technology and development

5,190

206

4,984

Depreciation and amortization

2,089

1,053

1,036

Total

$

24,057

$

3,702

$

339

$

20,016

* In 2015, acquisition-related and other expenses represent certain tax-related costs and certain legal costs related to the previously disclosed CEO transition and securities litigation.

 

Three Months Ended June 30, 2014

GAAP Operating Expenses

Share-Based Compensation and Amortization of Intangible Assets

Adjusted Operating Expenses

(in thousands)

Cost of services

$

3,028

$

156

$

2,872

General and administrative

6,473

1,049

5,424

Sales and marketing

4,663

324

4,339

Technology and development

4,819

301

4,518

Depreciation and amortization

1,962

1,282

680

Total

$

20,945

$

3,112

$

17,833

 

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

Three Months Ended June 30,

2015

2014

(dollars in thousands)

Revenue

$

21,283

$

14,965

Cost of services

3,750

3,028

Gross profit

17,533

11,937

Gross margin

82.4

%

79.8

%

Adjustments:

Share-based compensation expense as % of revenue

0.8

%

1.0

%

Other non-recurring expenses as % of revenue*

0.6

%

Adjusted Gross Margin

83.8

%

80.8

%

* Other non-recurring expenses include certain tax-related costs.

 

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

Three Months Ended

September, 2015

Twelve Months Ended December 31, 2015

High End

Low End

High End

Low End

Net loss per share

$

(0.09)

$

(0.11)

$

(0.37)

$

(0.40)

Share-based compensation expense

0.12

0.12

0.41

0.41

Amortization of intangible assets

0.04

0.04

0.16

0.16

Acquisition-related and other expenses*

0.01

0.01

Adjusted EPS

$

0.07

$

0.05

$

0.21

$

0.18

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

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SOURCE Textura Corporation



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