bnft-8k_20200303.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March 3, 2020

 

BENEFITFOCUS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

(State or other jurisdiction of incorporation)

 

 

 

 

001-36061

 

46-2346314

(Commission File Number)

 

(IRS Employer Identification No.)

100 Benefitfocus Way, Charleston, South Carolina 29492

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (843) 849-7476

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.001 Par Value

 

BNFT

 

Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this Chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this Chapter).

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 



Item 2.02.   Results of Operations and Financial Condition.

On March 3, 2020, Benefitfocus, Inc. issued a press release announcing its operating results for the quarter ended December 31, 2019.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.   Financial Statements and Exhibits.

(d)   Exhibits

         Exhibit No.     Description                                  

          99.1                Press release dated March 3, 2020


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

BENEFITFOCUS, INC.

 

 

 

Date: March 3, 2020

 

/s/ Stephen M. Swad

 

 

Stephen M. Swad

 

 

Chief Financial Officer

(Principal financial and accounting officer)

 

bnft-ex991_9.htm

 

Exhibit 99.1

Benefitfocus, Inc.

843-981-8898

pr@benefitfocus.com

 

Investor Relations:

Michael Bauer

843-981-8899

michael.bauer@benefitfocus.com  

 

 

Benefitfocus Announces Fourth Quarter and Full Year 2019 Financial Results

Driven by its leading AI-powered platform, Benefitfocus grew Q4 total revenue 17% year-over-year;

Announces stock repurchase program

 

Charleston, S.C. – March 3, 2020 – Benefitfocus, Inc. (NASDAQ: BNFT), a leading cloud-based benefits management platform and services provider, today announced its fourth quarter 2019 financial results. Recent highlights include:  

 

Grew net benefit eligible lives to 17.3 million at the end of the fourth quarter, up from 16.8 million at the end of the prior quarter and 13.3 million at the end of the prior year period.

 

Signed three seven-figure MarketPlace for Carriers transactions.

 

Meaningfully improved GAAP net loss and exceeded high-end of Q4 Adjusted EBITDA guidance by 20%.

 

Announces stock repurchase program for the potential repurchase by the Company of up to $20 million worth of its outstanding common stock.

 

“Benefitfocus delivered solid fourth quarter results. We continue to make meaningful progress on our platform transformation as evidenced by continued strong lives growth and BenefitsPlace traction with both employer and carrier customers,” said Ray August, President and Chief Executive Officer of Benefitfocus.

 

August added, “We remain focused on creating long-term shareholder value. The repurchase program demonstrates the Board of Directors’ and management’s confidence in our business and our commitment to all of our stakeholders.”

 

Fourth Quarter 2019 Financial Highlights

Revenue

 

Total revenue was $87.1 million, an increase of 17% compared to the fourth quarter of 2018.

 

Software services was $68.4 million, an increase of 16% compared to the fourth quarter of 2018. Software services is comprised of subscription and platform revenue.

 

o

Subscription revenue was $49.4 million, an increase of 10% compared to the fourth quarter of 2018.

 

o

Platform revenue was $19.0 million, an increase of 34% compared to the fourth quarter of 2018.

 

Professional services revenue was $18.7 million, an increase of 19% compared to the fourth quarter of 2018.

Net Loss

 

GAAP net loss was ($3.8) million, compared to ($13.0) million in the fourth quarter of 2018. GAAP net loss per share was ($0.12), based on 32.8 million basic and diluted weighted average common shares outstanding, compared to ($0.41) for the fourth quarter of 2018, based on 32.0 million basic and diluted weighted average common shares outstanding.


 

Non-GAAP Net Income and Adjusted EBITDA

 

Non-GAAP net income was $1.9 million, compared to $4.7 million in the fourth quarter of 2018. Non-GAAP net income per share was $0.06, based on 33.2 million fully diluted weighted average common shares outstanding, compared to $0.14 for the fourth quarter of 2018, based on 33.0 million fully diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $12.5 million, compared to $12.0 million in the fourth quarter of 2018.

See important disclosures about non-GAAP measures, and a reconciliation of them to GAAP, below.

Full Year 2019 Financial Highlights

Revenue

 

Total revenue was $295.7 million, an increase of 14% compared to the full year 2018.

 

Software services was $228.7 million, an increase of 13% compared to the full year 2018. Software services is comprised of subscription and platform revenue.

 

o

Subscription revenue was $195.0 million, an increase of 9% compared to the full year 2018.

 

o

Platform revenue was $33.7 million, an increase of 47% compared to the full year 2018.

 

Professional services revenue was $67.0 million, an increase of 19% compared to the full year 2018.

Net Loss

 

GAAP net loss was ($45.5) million, compared to ($52.6) million in the full year 2018. GAAP net loss per share was ($1.40), based on 32.5 million basic and diluted weighted average common shares outstanding, compared to ($1.66) for the full year 2018, based on 31.8 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss and Adjusted EBITDA

 

Non-GAAP net loss was ($22.3) million, compared to ($18.3) million in the full year 2018. Non-GAAP net loss per share was ($0.69), based on 32.5 million basic and diluted weighted average common shares outstanding, compared to ($0.57) for the full year 2018, based on 31.8 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $19.0 million, compared to $10.3 million in the full year 2018.

See important disclosures about non-GAAP measures, and a reconciliation of them to GAAP, below.

Balance Sheet

 

Cash and cash equivalents at December 31, 2019 totaled $131.0 million, compared to $130.7 million at the end of the third quarter of 2019.  

Stock Repurchase Program

The Board of Directors has approved a stock repurchase program for the potential repurchase by the Company of up to $20 million worth of its outstanding common stock.

Under the stock repurchase program, Benefitfocus is authorized to purchase shares of its common stock through various means, including open market or privately negotiated transactions. The program has no time limit and may be suspended for periods or discontinued at any time by the Board of Directors. Repurchases under the program will be funded by Benefitfocus’ existing cash and cash equivalents or future cash flow. Any shares acquired will be available for general corporate purposes.


 

Updated Business Outlook

Based on information available as of March 3, 2020, Benefitfocus is providing guidance for the first quarter and full year 2020 as indicated below. Reflected in the full year guidance is an approximate $16 million reduction of revenue from one large private exchange customer.

First Quarter 2020:

 

Total revenue is expected to be in the range of $67.5 million to $69.5 million.

 

Non-GAAP net loss is expected to be in the range of ($10.0) million to ($8.0) million, or ($0.30) to ($0.24) per share, based on 32.8 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $0.5 million to $2.5 million.

Full Year 2020:

 

Total revenue is expected to be in the range of $310.0 million to $320.0 million.

 

Non-GAAP net loss is expected to be in the range of ($23.0) million to ($18.0) million, or ($0.69) to ($0.54) per share, based on 33.2 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA is expected to be in the range of $22.0 million to $27.0 million.

Management has not reconciled forward-looking non-GAAP net loss/income and Adjusted EBITDA to their most directly comparable GAAP measure of GAAP net loss. This is because we cannot predict with reasonable certainty the ultimate outcome of the various necessary GAAP components of such reconciliations, including, for example, those related to compensation, acquisition transactions and integration, or others that may arise during the year, without unreasonable effort. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts. See below for additional important disclosures regarding our non-GAAP financial measures.

Conference Call Details:

In conjunction with this announcement, Benefitfocus will host a conference call today, March 3, 2020, at 5:00 p.m. Eastern Time to discuss the company’s financial results. To access this call, dial (877) 407-9208 (domestic) or (201) 493-6784 (international). A live webcast, as well as the replay, of the conference call will be available on the Investor Relations page of the company’s website at http://investor.benefitfocus.com/. After the conference call, a replay will be available until March 10, 2020, and can be accessed by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) with passcode 13699438.

About Benefitfocus

Benefitfocus (NASDAQ: BNFT) unifies the entire U.S. benefits industry on a single technology platform to protect consumers' health, wealth, property and lifestyle. Our powerful cloud-based software, data-driven insights and thoughtfully-designed services, enable employers, insurance brokers, carriers and suppliers to simplify the complexity of benefits administration and deliver a world-class benefits experience. Learn more at www.benefitfocus.com, LinkedIn and Twitter.

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in this release, including non-GAAP gross profit, operating loss, net loss/income, net loss/income per common share, and adjusted EBITDA. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. 

Non-GAAP gross profit, operating loss/income, net loss/income and net loss/income per common share exclude stock-based compensation expenses, amortization of acquisition-related intangible assets, transaction and acquisition-related


 

costs expensed, if any, and costs not core to our business, if any. We define adjusted EBITDA as net loss before net interest, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense, expense related to the impairment of goodwill and intangible assets, transaction and acquisition-related costs expensed, and costs not core to our business. Please note that other companies might define their non-GAAP financial measures differently than we do.

Management presents these non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, their inclusion should provide consistency in the company’s financial reporting.

Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release, including in the accompanying tables.

Safe Harbor Statement

Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: our continuing losses and need to achieve GAAP profitability; fluctuations in our financial results; the immature and volatile market for our products and services; risks related to changing healthcare and other applicable regulations; risks associated with acquisitions; our ability to maintain our culture, recruit and retain qualified personnel and effectively expand our sales force; cyber-security risks; the need to innovate and provide useful products and services; our ability to compete effectively; privacy, security and other risks associated with our business; volatility and uncertainty in the global economy and financial markets; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or upon request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Source: Benefitfocus, Inc.



 

 

Benefitfocus, Inc.

 

Consolidated Statements of Operations and Comprehensive Loss

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

Revenue

 

$

87,143

 

 

$

74,771

 

 

$

295,686

 

 

$

258,721

 

Cost of revenue (1)(2)

 

 

42,848

 

 

 

35,413

 

 

 

144,090

 

 

 

129,277

 

Gross profit

 

 

44,295

 

 

 

39,358

 

 

 

151,596

 

 

 

129,444

 

Operating expenses:(1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

18,585

 

 

 

22,201

 

 

 

76,049

 

 

 

78,179

 

Research and development

 

 

13,085

 

 

 

13,075

 

 

 

54,724

 

 

 

47,902

 

General and administrative

 

 

10,976

 

 

 

13,719

 

 

 

45,329

 

 

 

43,062

 

Total operating expenses

 

 

42,646

 

 

 

48,995

 

 

 

176,102

 

 

 

169,143

 

Income (loss) from operations

 

 

1,649

 

 

 

(9,637

)

 

 

(24,506

)

 

 

(39,699

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

518

 

 

 

51

 

 

 

2,613

 

 

 

250

 

Interest expense

 

 

(5,947

)

 

 

(1,495

)

 

 

(23,524

)

 

 

(5,685

)

Interest expense on building lease financing obligations (prior to adoption of ASC 842)

 

 

 

 

 

(1,870

)

 

 

 

 

 

(7,471

)

Other (expense) income

 

 

(10

)

 

 

(9

)

 

 

(71

)

 

 

6

 

Total other expense, net

 

 

(5,439

)

 

 

(3,323

)

 

 

(20,982

)

 

 

(12,900

)

Loss before income taxes

 

 

(3,790

)

 

 

(12,960

)

 

 

(45,488

)

 

 

(52,599

)

Income tax expense

 

 

1

 

 

 

6

 

 

 

27

 

 

 

28

 

Net loss

 

$

(3,791

)

 

$

(12,966

)

 

$

(45,515

)

 

$

(52,627

)

Comprehensive loss

 

$

(3,791

)

 

$

(12,966

)

 

$

(45,515

)

 

$

(52,627

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.12

)

 

$

(0.41

)

 

$

(1.40

)

 

$

(1.66

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

32,774,924

 

 

 

31,988,033

 

 

 

32,539,748

 

 

 

31,756,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation included in above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

1,181

 

 

$

3,011

 

 

$

3,569

 

 

$

5,164

 

Sales and marketing

 

 

1,202

 

 

 

3,794

 

 

 

3,799

 

 

 

6,764

 

Research and development

 

 

665

 

 

 

3,407

 

 

 

3,265

 

 

 

5,510

 

General and administrative

 

 

2,023

 

 

 

6,310

 

 

 

8,939

 

 

 

11,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Amortization of acquired intangible assets included in

       above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

317

 

 

$

 

 

$

1,029

 

 

$

81

 

Sales and marketing

 

 

91

 

 

 

 

 

 

337

 

 

 

31

 

Research and development

 

 

111

 

 

 

 

 

 

400

 

 

 

27

 

General and administrative

 

 

50

 

 

 

 

 

 

167

 

 

 

11

 

 



 

Benefitfocus, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

2019

 

 

2018

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

130,976

 

 

$

190,928

 

 

Accounts receivable, net

 

 

33,754

 

 

 

21,077

 

 

Contract, prepaid and other current assets

 

 

21,523

 

 

 

16,667

 

 

Total current assets

 

 

186,253

 

 

 

228,672

 

 

Property and equipment, net

 

 

28,669

 

 

 

69,965

 

 

Financing lease right-of-use assets

 

 

78,520

 

 

 

 

 

Operating lease right-of-use assets

 

 

1,715

 

 

 

 

 

Intangible assets, net

 

 

12,667

 

 

 

 

 

Goodwill

 

 

12,857

 

 

 

1,634

 

 

Deferred contract costs and other non-current assets

 

 

11,002

 

 

 

13,668

 

 

Total assets

 

$

331,683

 

 

$

313,939

 

 

Liabilities and stockholders' deficit

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,563

 

 

$

8,687

 

 

Accrued expenses

 

 

10,526

 

 

 

11,461

 

 

Accrued compensation and benefits

 

 

15,246

 

 

 

17,269

 

 

Deferred revenue, current portion

 

 

33,429

 

 

 

36,540

 

 

Lease liabilities and financing obligations, current portion

 

 

6,871

 

 

 

4,486

 

 

Total current liabilities

 

 

75,635

 

 

 

78,443

 

 

Deferred revenue, net of current portion

 

 

5,079

 

 

 

9,323

 

 

Convertible senior notes

 

 

187,949

 

 

 

176,692

 

 

Lease liabilities and financing obligations, net of current portion

 

 

88,572

 

 

 

57,116

 

 

Other non-current liabilities

 

 

92

 

 

 

2,575

 

 

Total liabilities

 

 

357,327

 

 

 

324,149

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001, 5,000,000 shares authorized,

   no shares issued and outstanding at December 31, 2019 and 2018

 

 

-

 

 

 

-

 

 

Common stock, par value $0.001, 50,000,000 shares authorized,

   32,788,980 and 32,017,773 shares issued and outstanding

   at December 31, 2019 and  2018, respectively

 

 

33

 

 

 

32

 

 

Additional paid-in capital

 

 

426,025

 

 

 

403,631

 

 

Accumulated deficit

 

 

(451,702

)

 

 

(413,873

)

 

Total stockholders' deficit

 

 

(25,644

)

 

 

(10,210

)

 

Total liabilities and stockholders' deficit

 

$

331,683

 

 

$

313,939

 

 

 



 

Benefitfocus, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

2019

 

 

 

2018

 

 

 

2017

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(45,515

)

 

$

(52,627

)

 

$

(50,294

)

Adjustments to reconcile net loss to net cash and cash equivalents

   used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

22,351

 

 

 

15,815

 

 

 

15,906

 

Stock-based compensation expense

 

 

19,572

 

 

 

28,868

 

 

 

16,137

 

Accretion of interest on convertible senior notes

 

 

11,256

 

 

 

 

 

 

 

Interest accrual on finance lease liabilities

 

 

33

 

 

 

 

 

 

 

Interest accrual on financing obligations (prior to adoption of ASC 842)

 

 

 

 

 

7,521

 

 

 

7,500

 

Rent payments in excess of expense

 

 

(16

)

 

 

 

 

 

 

Loss on disposal or impairment of property and equipment

 

 

9

 

 

 

7

 

 

 

157

 

Provision for doubtful accounts

 

 

111

 

 

 

364

 

 

 

75

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(11,875

)

 

 

8,650

 

 

 

2,800

 

Accrued interest on short-term investments

 

 

 

 

 

 

 

 

7

 

Contract, prepaid and other current assets

 

 

(3,642

)

 

 

(570

)

 

 

4,519

 

Deferred costs and other non-current assets

 

 

2,893

 

 

 

3,137

 

 

 

5,538

 

Accounts payable and accrued expenses

 

 

426

 

 

 

6,566

 

 

 

(3,015

)

Accrued compensation and benefits

 

 

161

 

 

 

649

 

 

 

(3,097

)

Deferred revenue

 

 

(14,047

)

 

 

(9,165

)

 

 

(1,922

)

Other non-current liabilities

 

 

(92

)

 

 

(234

)

 

 

(248

)

Net cash and cash equivalents (used in) provided by operating activities

 

 

(18,375

)

 

 

8,981

 

 

 

(5,937

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Business combination, net of cash acquired

 

 

(20,914

)

 

 

 

 

 

 

Proceeds from short-term investments held to maturity

 

 

 

 

 

 

 

 

2,000

 

Purchases of property and equipment

 

 

(13,248

)

 

 

(8,290

)

 

 

(8,279

)

Net cash and cash equivalents used in investing activities

 

 

(34,162

)

 

 

(8,290

)

 

 

(6,279

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

 

 

 

115,000

 

 

 

105,000

 

Payments on revolving line of credit

 

 

 

 

 

(171,246

)

 

 

(89,000

)

Proceeds from issuance of convertible notes

 

 

 

 

 

240,000

 

 

 

 

Payments of debt issuance costs

 

 

(357

)

 

 

(6,000

)

 

 

 

Purchase of convertible note capped call hedge

 

 

 

 

 

(33,024

)

 

 

 

Proceeds from exercises of stock options and ESPP

 

 

453

 

 

 

712

 

 

 

3,715

 

Payments on capital lease and financing obligations

 

 

(1,627

)

 

 

(10,540

)

 

 

(9,017

)

Payments of principal on finance lease liabilities

 

 

(5,884

)

 

 

 

 

 

 

Net cash and cash equivalents (used in) provided by financing activities

 

 

(7,415

)

 

 

134,902

 

 

 

10,698

 

Net (decrease) increase in cash and cash equivalents

 

 

(59,952

)

 

 

135,593

 

 

 

(1,518

)

Cash and cash equivalents, beginning of year

 

 

190,928

 

 

 

55,335

 

 

 

56,853

 

Cash and cash equivalents, end of year

 

$

130,976

 

 

$

190,928

 

 

$

55,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts

   payable and accrued expenses

 

$

154

 

 

$

244

 

 

$

389

 

Property and equipment purchased with financing

   and capital lease obligations (prior to adoption of ASC 842)

 

$

-

 

 

$

4,810

 

 

$

-

 

Post contract support purchased with financing obligations

 

$

1,287

 

 

$

790

 

 

$

-

 

Debt issuance costs included in accounts payable and accrued expenses

 

$

-

 

 

$

358

 

 

$

-

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes paid

 

$

28

 

 

$

28

 

 

$

14

 

Interest paid

 

$

12,374

 

 

$

11,884

 

 

$

10,911

 

 



 

Benefitfocus, Inc.

 

Reconciliation of GAAP to Non-GAAP Measures

 

(unaudited, dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

44,295

 

 

$

39,358

 

 

$

151,596

 

 

$

129,444

 

Amortization of acquired intangible assets

 

 

317

 

 

 

 

 

 

1,029

 

 

 

81

 

Stock-based compensation expense

 

 

1,181

 

 

 

3,011

 

 

 

3,569

 

 

 

5,164

 

Total net adjustments

 

 

1,498

 

 

 

3,011

 

 

 

4,598

 

 

 

5,245

 

Non-GAAP gross profit

 

$

45,793

 

 

$

42,369

 

 

$

156,194

 

 

$

134,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Operating Loss to Non-GAAP Operating Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

$

1,649

 

 

$

(9,637

)

 

$

(24,506

)

 

$

(39,699

)

Amortization of acquired intangible assets

 

 

569

 

 

 

 

 

 

1,933

 

 

 

150

 

Stock-based compensation expense

 

 

5,071

 

 

 

16,522

 

 

 

19,572

 

 

 

28,868

 

Transaction and acquisition-related costs expensed

 

 

30

 

 

 

250

 

 

 

1,035

 

 

 

507

 

Costs not core to our business

 

 

 

 

 

921

 

 

 

649

 

 

 

4,843

 

Total net adjustments

 

 

5,670

 

 

 

17,693

 

 

 

23,189

 

 

 

34,368

 

Non-GAAP operating income (loss)

 

$

7,319

 

 

$

8,056

 

 

$

(1,317

)

 

$

(5,331

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,791

)

 

$

(12,966

)

 

$

(45,515

)

 

$

(52,627

)

Depreciation

 

 

3,783

 

 

 

2,857

 

 

 

15,288

 

 

 

11,721

 

Amortization of software development costs

 

 

1,370

 

 

 

1,046

 

 

 

5,130

 

 

 

3,944

 

Amortization of acquired intangible assets

 

 

569

 

 

 

 

 

 

1,933

 

 

 

150

 

Interest income

 

 

(518

)

 

 

(51

)

 

 

(2,613

)

 

 

(250

)

Interest expense

 

 

5,947

 

 

 

1,495

 

 

 

23,524

 

 

 

5,685

 

Interest expense on building lease financing obligations (prior to adoption of ASC 842)

 

 

 

 

 

1,870

 

 

 

 

 

 

7,471

 

Income tax expense

 

 

1

 

 

 

6

 

 

 

27

 

 

 

28

 

Stock-based compensation expense

 

 

5,071

 

 

 

16,522

 

 

 

19,572

 

 

 

28,868

 

Transaction and acquisition-related costs expensed

 

 

30

 

 

 

250

 

 

 

1,035

 

 

 

507

 

Costs not core to our business

 

 

 

 

 

921

 

 

 

649

 

 

 

4,843

 

Total net adjustments

 

 

16,253

 

 

 

24,916

 

 

 

64,545

 

 

 

62,967

 

Adjusted EBITDA

 

$

12,462

 

 

$

11,950

 

 

$

19,030

 

 

$

10,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,791

)

 

$

(12,966

)

 

$

(45,515

)

 

$

(52,627

)

Amortization of acquired intangible assets

 

 

569

 

 

 

 

 

 

1,933

 

 

 

150

 

Stock-based compensation expense

 

 

5,071

 

 

 

16,522

 

 

 

19,572

 

 

 

28,868

 

Transaction and acquisition-related costs expensed

 

 

30

 

 

 

250

 

 

 

1,035

 

 

 

507

 

Costs not core to our business

 

 

 

 

 

921

 

 

 

649

 

 

 

4,843

 

Total net adjustments

 

 

5,670

 

 

 

17,693

 

 

 

23,189

 

 

 

34,368

 

Non-GAAP net income (loss)

 

$

1,879

 

 

$

4,727

 

 

$

(22,326

)

 

$

(18,259

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss)

 

$

1,879

 

 

$

4,727

 

 

$

(22,326

)

 

$

(18,259