bnft-8k_20211103.htm
false 0001576169 0001576169 2021-11-03 2021-11-03

 

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) November 3, 2021

 

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 November 3, 2021, Benefitfocus, Inc. issued a press release announcing its operating results for the quarter ended September 30, 2021.  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 November 3, 2021.

          104                 Cover Page Interactive Data File (embedded within the Inline XBRL document).


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: November 3, 2021

 

/s/ Alpana Wegner

 

 

Alpana Wegner

 

 

Chief Financial Officer

(Principal financial and accounting officer)

 

bnft-ex991_33.htm

 

Exhibit 99.1

 

Benefitfocus, Inc.

843-981-8898

pr@benefitfocus.com

 

Investor Relations:

Patti Leahy

843-981-8899

ir@benefitfocus.com   

 

 

 

Benefitfocus Announces Third Quarter 2021 Financial Results 

Delivers on third quarter financial commitments

Focused on providing service excellence to deliver enhanced stakeholder value

 

 

Charleston, S.C. – November 3, 2021 – Benefitfocus, Inc. (NASDAQ: BNFT), an industry-leading benefits technology platform that simplifies benefits administration for employers, health plans and brokers, today announces its third quarter 2021 financial results.  

 

Third quarter financial highlights:  

 

Revenue of $62.0 million exceeds guidance

 

GAAP EPS of ($0.59) vs. ($0.19) in third quarter 2020

 

Non-GAAP EPS of ($0.19) exceeds guidance

 

GAAP net loss of ($18.1) million vs. ($4.4) million in third quarter 2020

 

Adjusted EBITDA of $6.7 million, above midpoint of guidance

 

Operating cash flow of $9.4 million and free cash flow of $6.9 million

 

De-levered balance sheet and improved capital structure through convertible note repurchase

 

Cash and marketable securities of $94.5 million, down $98.7 million from prior quarter primarily reflecting repurchase of convertible notes

 

Other recent highlights:

 

Selected by State of Wisconsin Department of Employee Trust Funds for Employee Insurance Administration Modernization for 239,000 members

 

Selected by State of Nevada Public Employees’ Benefits Program (PEBM) for Employee Enrollment Benefits Management System Modernization for 72,000 members

 

Achieved HITRUST CSF® Certification to Enhance Third-Party Privacy, Security and Compliance for Customer Data

 

Added Full Suite of Voluntary Insurance Offerings from American Public Life to Benefit Catalog

 

 

“Our entire team is working with a great sense of urgency and discipline to deliver enhanced service excellence for our customers during this year’s open enrollment,” said Matt Levin, president and chief executive officer

. “I expect this heightened focus, combined with the commitment and deep experience of our team, will result in stellar performance for our stakeholders including our customers, partners and shareholders.”

 

“I am pleased with our performance this quarter as we again delivered on our financial commitments,” said Alpana Wegner, chief financial officer. “Our strong cash position enabled us to opportunistically de-lever the balance sheet while preserving flexibility to invest strategically and advance our growth strategy.”

 

 


 

 

Third Quarter 2021 Financial Highlights

Revenue

 

Total revenue was $62.0 million, down 2% compared to the third quarter of 2020.

 

Software services was $50.9 million, up 1% compared to the third quarter of 2020. Software services is comprised of subscription and platform revenue.

 

o

Subscription revenue was $44.8 million, relatively flat compared to the third quarter of 2020.

 

o

Platform revenue was $6.2 million, up 10% compared to the third quarter of 2020.

 

Professional services revenue was $11.1 million, down 15% compared to the third quarter of 2020.

Net Loss

 

GAAP net loss available to common stockholders was ($19.7) million, compared to ($6.0) million in the third quarter of 2020. GAAP net loss per share was ($0.59), based on 33.4 million basic and diluted weighted average common shares outstanding, compared to ($0.19) for the third quarter of 2020, based on 32.3 million basic and diluted weighted average common shares outstanding.

Non-GAAP Net Loss, Adjusted EBITDA and Free Cash Flow

 

Non-GAAP net loss available to common stockholders was ($6.3) million compared to ($2.7) million in the third quarter of 2020. Non-GAAP net loss per share was ($0.19) based on 33.4 million basic and diluted weighted average common shares outstanding, compared to ($0.08) in the third quarter of 2020, based on 32.3 million basic and diluted weighted average common shares outstanding.

 

Adjusted EBITDA was $6.7 million, compared to $10.5 million in the third quarter of 2020.

 

Free cash flow was $6.9 million, compared to $11.3 million in the third quarter of 2020.

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

Balance Sheet

 

Cash and cash equivalents and marketable securities at September 30, 2021 totaled $94.5 million, compared to $193.2 million at the end of the second quarter of 2021 primarily reflecting the repurchase of approximately $100.2 million worth of our convertible notes

 

The full $50.0 million line of credit remains available to the company.

Business Outlook

Based on information available as of November 3, 2021, Benefitfocus is providing guidance for the fourth quarter and full year as indicated below.

Fourth Quarter 2021

 

Total revenue is expected to be in the range of $66 million to $72 million.

 

Adjusted EBITDA is expected to be in the range of $13 million to $19 million.

 

Non-GAAP net (loss) income available to common stockholders is expected to be between ($0.7) million and $5.3 million, or between ($0.02) per share based on 33.4 million basic and diluted weighted average shares outstanding and $0.15 per share based on 34.6 million diluted weighted average shares outstanding.

Full Year 2021


 

The company is reiterating guidance previously provided for Full Year 2021 as follows:

 

Total revenue is expected to be in the range of $254 million to $260 million.

 

Adjusted EBITDA is expected to be in the range of $44 million to $50 million.

 

Free cash flow is expected to be in the range of $20 million to $26 million.

Adjusted EBITDA and free cash flow guidance excludes the impact of restructuring and impairment charges.

Management has not reconciled forward-looking non-GAAP net loss, adjusted EBITDA or free cash flow to their most directly comparable GAAP measure of GAAP net loss or GAAP operating cash flows. 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 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 to discuss the company’s financial results and business outlook on Wednesday, November 3, 2021, at 5:00 p.m. ET. To access this call, dial (877) 407-9208 (domestic) or +1 (201) 493-6784 (international). A live webcast 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 November 10, 2021, and can be accessed by dialing (844) 512-2921 (domestic) or +1 (412) 317-6671 (international) with passcode 13724236.

About Benefitfocus

Benefitfocus (NASDAQ: BNFT) unifies the entire benefits industry through innovative technology solutions that bring efficiency, cost savings and simplicity to employee benefits administration. Our powerful cloud-based software, data-driven insights and thoughtfully designed services help employers, insurance brokers, health plans and suppliers address the complexity of benefits enrollment and engagement, while bringing easier access to health, wealth and lifestyle products through a world-class benefits experience. Our mission is simple: to improve lives with benefits. 

 

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in this release, including non-GAAP gross profit, operating income/loss, net loss/income, net loss/income per common share, adjusted EBITDA and free cash flow. 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 income/loss, 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, expense related to the impairment of goodwill, intangible assets and long-lived assets, gain or loss on extinguishment of debt, and costs not core to our business. 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, intangible assets and long-lived assets, transaction and acquisition-related costs expensed, restructuring costs, gain or loss on extinguishment of debt, and costs not core to our business. We define free cash flow as cash provided by or used in operating activities less capital expenditures, adjusted to eliminate restructuring costs. 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; our ability to maintain our culture and recruit, integrate and retain qualified personnel, including on our board of directors; our ability to compete effectively and implement our growth strategy; the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; management of growth; volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic; 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.

Unaudited Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

62,026

 

 

$

63,583

 

 

$

187,993

 

 

$

191,911

 

Cost of revenue(1)(2)

 

 

31,247

 

 

 

30,113

 

 

 

87,870

 

 

 

94,422

 

Gross profit

 

 

30,779

 

 

 

33,470

 

 

 

100,123

 

 

 

97,489

 

Operating expenses:(1)(2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

12,669

 

 

 

12,405

 

 

 

34,481

 

 

 

39,863

 

Research and development

 

 

11,062

 

 

 

11,439

 

 

 

32,997

 

 

 

34,252

 

General and administrative

 

 

12,156

 

 

 

9,424

 

 

 

39,592

 

 

 

29,320

 

Restructuring costs

 

 

 

 

 

 

 

 

4,127

 

 

 

5,616

 

Total operating expenses

 

 

35,887

 

 

 

33,268

 

 

 

111,197

 

 

 

109,051

 

Loss from operations

 

 

(5,108

)

 

 

202

 

 

 

(11,074

)

 

 

(11,562

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

52

 

 

 

40

 

 

 

163

 

 

 

563

 

Interest expense

 

 

(5,556

)

 

 

(5,771

)

 

 

(16,757

)

 

 

(17,524

)

(Loss) gain on repurchase of convertible senior notes

 

 

(7,520

)

 

 

1,138

 

 

 

(7,520

)

 

 

1,138

 

Other income

 

 

120

 

 

 

1

 

 

 

142

 

 

 

8

 

Total other expense, net

 

 

(12,904

)

 

 

(4,592

)

 

 

(23,972

)

 

 

(15,815

)

Loss before income taxes

 

 

(18,012

)

 

 

(4,390

)

 

 

(35,046

)

 

 

(27,377

)

Income tax expense

 

 

42

 

 

 

6

 

 

 

125

 

 

 

17

 

Net loss

 

 

(18,054

)

 

 

(4,396

)

 

 

(35,171

)

 

 

(27,394

)

Preferred dividends

 

 

(1,600

)

 

 

(1,600

)

 

 

(4,800

)

 

 

(2,062

)

Net loss available to common stockholders

 

$

(19,654

)

 

$

(5,996

)

 

$

(39,971

)

 

$

(29,456

)

Comprehensive loss

 

$

(18,054

)

 

$

(4,396

)

 

$

(35,171

)

 

$

(27,394

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.59

)

 

$

(0.19

)

 

$

(1.21

)

 

$

(0.91

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

33,354,624

 

 

 

32,263,876

 

 

 

32,978,394

 

 

 

32,320,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

511

 

 

$

1,304

 

 

$

1,475

 

 

$

2,604

 

Sales and marketing

 

 

963

 

 

 

766

 

 

 

2,470

 

 

 

2,240

 

Research and development

 

 

589

 

 

 

785

 

 

 

1,210

 

 

 

1,717

 

General and administrative

 

 

2,532

 

 

 

1,004

 

 

 

5,339

 

 

 

4,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Amortization of acquired intangible assets included in above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

332

 

 

$

321

 

 

$

1,005

 

 

$

961

 

Sales and marketing

 

 

78

 

 

 

82

 

 

 

231

 

 

 

256

 

Research and development

 

 

110

 

 

 

119

 

 

 

336

 

 

 

342

 

General and administrative

 

 

48

 

 

 

46

 

 

 

133

 

 

 

146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Transaction and acquisition-related costs expensed included in above line items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

80

 

 

$

18

 

 

$

240

 

 

$

425

 

 



 

 

Benefitfocus, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

As of

September 30,

2021

 

 

As of

December 31,

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

12,589

 

 

$

90,706

 

Marketable securities

 

 

81,899

 

 

 

95,085

 

Accounts receivable, net

 

 

20,368

 

 

 

22,240

 

Contract, prepaid and other current assets

 

 

17,239

 

 

 

21,354

 

Total current assets

 

 

132,095

 

 

 

229,385

 

Property and equipment, net

 

 

27,259

 

 

 

29,701

 

Financing lease right-of-use assets

 

 

58,503

 

 

 

68,670

 

Operating lease right-of-use assets

 

 

925

 

 

 

1,107

 

Intangible assets, net

 

 

8,688

 

 

 

10,393

 

Goodwill

 

 

12,857

 

 

 

12,857

 

Deferred contract costs and other non-current assets

 

 

12,078

 

 

 

10,259

 

Total assets

 

$

252,405

 

 

$

362,372

 

Liabilities, redeemable preferred stock and stockholders' deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

7,729

 

 

$

2,160

 

Accrued expenses

 

 

8,155

 

 

 

6,262

 

Accrued compensation and benefits

 

 

16,993

 

 

 

19,129

 

Deferred revenue, current portion

 

 

26,113

 

 

 

27,782

 

Lease liabilities and financing obligations, current portion

 

 

7,226

 

 

 

5,959

 

Total current liabilities

 

 

66,216

 

 

 

61,292

 

Deferred revenue, net of current portion

 

 

2,651

 

 

 

4,422

 

Convertible senior notes

 

 

105,637

 

 

 

184,308

 

Lease liabilities and financing obligations, net current portion

 

 

77,265

 

 

 

79,282

 

Other non-current liabilities

 

 

2,661

 

 

 

2,470

 

Total liabilities

 

 

254,430

 

 

 

331,774

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Redeemable preferred stock:

 

 

 

 

 

 

 

 

Series A preferred stock, par value $0.001, 5,000,000 shares

  authorized, 1,777,778 and 1,777,778 shares issued and outstanding

  at September 30, 2021 and December 31, 2020, respectively,

  liquidation preference $45 per share as of September 30, 2021 and December 31, 2020, respectively

 

 

79,193

 

 

 

79,193

 

Stockholders' deficit:

 

 

 

 

 

 

 

 

Common stock, par value $0.001, 95,000,000 and 50,000,000 shares authorized,

   33,386,994 and 32,327,439 issued and outstanding at September 30, 2021 and December 31, 2020, respectively

 

 

33

 

 

 

32

 

Additional paid-in capital

 

 

429,978

 

 

 

427,431

 

Accumulated deficit

 

 

(511,229

)

 

 

(476,058

)

Total stockholders' deficit

 

 

(81,218

)

 

 

(48,595

)

Total liabilities, redeemable preferred stock and stockholders' deficit

 

$

252,405

 

 

$

362,372

 

 



 

 

Benefitfocus, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(35,171

)

 

$

(27,394

)

Adjustments to reconcile net loss to net cash and cash

   equivalents provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

18,976

 

 

 

18,479

 

Stock-based compensation expense

 

 

10,494

 

 

 

10,859

 

Accretion of interest on convertible senior notes

 

 

8,590

 

 

 

8,834

 

Interest accrual on finance lease liabilities

 

 

3,259

 

 

 

71

 

Rent expense less than payments

 

 

(41

)

 

 

(24

)

Non-cash accretion income from investments

 

 

741

 

 

 

16

 

Impairment or loss on disposal of right-of-use assets and property and equipment

 

 

4,074

 

 

 

 

Loss (gain) on extinguishment of debt

 

 

7,520

 

 

 

(1,138

)

Provision for doubtful accounts

 

 

 

 

 

111

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

1,872

 

 

 

3,685

 

Accrued interest on investments

 

 

161

 

 

 

(38

)

Contract, prepaid and other current assets

 

 

4,009

 

 

 

7,502

 

Deferred costs and other non-current assets

 

 

1,238

 

 

 

1,014

 

Accounts payable and accrued expenses

 

 

6,960

 

 

 

(9,157

)

Accrued compensation and benefits

 

 

(2,136

)

 

 

490

 

Deferred revenue

 

 

(3,441

)

 

 

(5,726

)

Other non-current liabilities

 

 

191

 

 

 

3,490

 

Net cash and cash equivalents provided by operating activities

 

 

27,296

 

 

 

11,074

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of investments held to maturity

 

 

(91,361

)

 

 

(67,785

)

Proceeds from investments held to maturity

 

 

100,588

 

 

 

 

Purchases of property and equipment

 

 

(7,454

)

 

 

(9,739

)

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

 

 

1,773

 

 

 

(77,524

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Draws on revolving line of credit

 

 

 

 

 

10,000

 

Payments on revolving line of credit

 

 

 

 

 

(10,000

)

Repurchase of convertible senior notes

 

 

(98,678

)

 

 

(14,619

)

Payments of debt issuance costs

 

 

 

 

 

(154

)

Cancellation of convertible senior notes capped call hedge

 

 

98

 

 

 

26

 

Proceeds from issuance of preferred stock, net of issuance costs

 

 

 

 

 

79,192

 

Payments of preferred dividends

 

 

(4,800

)

 

 

(2,062

)

Repurchase of common stock

 

 

 

 

 

(9,667

)

Proceeds from exercises of stock options and ESPP

 

 

322

 

 

 

513

 

Payments on financing obligations

 

 

(226

)

 

 

(635

)

Payments of principal on finance lease liabilities

 

 

(3,902

)

 

 

(8,880

)

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

 

 

(107,186

)

 

 

43,714

 

Net decrease in cash and cash equivalents

 

 

(78,117

)

 

 

(22,736

)

Cash and cash equivalents, beginning of period

 

 

90,706

 

 

 

130,976

 

Cash and cash equivalents, end of period

 

$

12,589

 

 

$

108,240

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued expenses

 

$

945

 

 

$

 

 



 

 

Benefitfocus, Inc.

Unaudited Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except share and per share data)

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Reconciliation from Gross Profit to Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

30,779

 

 

$

33,470

 

 

$

100,123

 

 

$

97,489

 

Amortization of acquired intangible assets

 

 

332

 

 

 

321

 

 

 

1,005

 

 

 

961

 

Stock-based compensation expense

 

 

511

 

 

 

1,304

 

 

 

1,475

 

 

 

2,604

 

Total net adjustments

 

 

843

 

 

 

1,625

 

 

 

2,480

 

 

 

3,565

 

Non-GAAP gross profit

 

$

31,622

 

 

$

35,095

 

 

$

102,603

 

 

$

101,054

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

$

(5,108

)

 

$

202

 

 

$

(11,074

)

 

$

(11,562

)

Amortization of acquired intangible assets

 

 

568

 

 

 

568

 

 

 

1,705

 

 

 

1,705

 

Stock-based compensation expense

 

 

4,595

 

 

 

3,859

 

 

 

10,494

 

 

 

10,859

 

Transaction and acquisition-related costs expensed

 

 

80

 

 

 

18

 

 

 

240

 

 

 

425

 

Impairment of long-lived assets

 

 

 

 

 

 

 

 

4,003

 

 

 

 

Costs not core to our business

 

 

542

 

 

 

 

 

 

4,140

 

 

 

 

Total net adjustments

 

 

5,785

 

 

 

4,445

 

 

 

20,582

 

 

 

12,989

 

Non-GAAP operating income

 

$

677

 

 

$

4,647

 

 

$

9,508

 

 

$

1,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(18,054

)

 

$

(4,396

)

 

$

(35,171

)

 

$

(27,394

)

Depreciation

 

 

3,615

 

 

 

3,774

 

 

 

10,682

 

 

 

11,496

 

Amortization of software development costs

 

 

2,268

 

 

 

2,032

 

 

 

6,589

 

 

 

5,278

 

Amortization of acquired intangible assets

 

 

568

 

 

 

568

 

 

 

1,705

 

 

 

1,705

 

Interest income

 

 

(52

)

 

 

(40

)

 

 

(163

)

 

 

(563

)

Interest expense

 

 

5,556

 

 

 

5,771

 

 

 

16,757

 

 

 

17,524

 

Income tax expense

 

 

42

 

 

 

6

 

 

 

125

 

 

 

17

 

Stock-based compensation expense

 

 

4,595

 

 

 

3,859

 

 

 

10,494

 

 

 

10,859

 

Transaction and acquisition-related costs expensed

 

 

80

 

 

 

18

 

 

 

240

 

 

 

425

 

Restructuring costs

 

 

 

 

 

 

 

 

4,127

 

 

 

5,616

 

Impairment of long-lived assets

 

 

 

 

 

 

 

 

4,003

 

 

 

 

Loss (gain) on repurchase of convertible senior notes

 

 

7,520

 

 

 

(1,138

)

 

 

7,520

 

 

 

(1,138

)

Costs not core to our business

 

 

542

 

 

 

 

 

 

4,140

 

 

 

 

Total net adjustments

 

 

24,734

 

 

 

14,850

 

 

 

66,219

 

 

 

51,219

 

Adjusted EBITDA

 

$

6,680

 

 

$

10,454

 

 

$

31,048

 

 

$

23,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Loss to Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(18,054

)

 

$

(4,396

)

 

$

(35,171

)

 

$

(27,394

)

Amortization of acquired intangible assets

 

 

568

 

 

 

568

 

 

 

1,705

 

 

 

1,705

 

Stock-based compensation expense

 

 

4,595

 

 

 

3,859

 

 

 

10,494

 

 

 

10,859

 

Transaction and acquisition-related costs expensed

 

 

80

 

 

 

18

 

 

 

240

 

 

 

425

 

Impairment of long-lived assets

 

 

 

 

 

 

 

 

4,003

 

 

 

 

Loss (gain) on repurchase of convertible senior notes

 

 

7,520

 

 

 

(1,138

)

 

 

7,520

 

 

 

(1,138

)

Costs not core to our business

 

 

542

 

 

 

 

 

 

4,140

 

 

 

 

Total net adjustments

 

 

13,305

 

 

 

3,307

 

 

 

28,102

 

 

 

11,851

 

Non-GAAP net loss

 

$

(4,749

)

 

$

(1,089

)

 

$

(7,069

)

 

$

(15,543

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Non-GAAP Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(4,749

)

 

$

(1,089

)

 

$

(7,069

)

 

$

(15,543

)

Preferred dividends

 

 

(1,600

)

 

 

(1,600

)

 

 

(4,800

)

 

 

(2,062

)

Non-GAAP net loss available to common stockholders

 

$

(6,349

)

 

$

(2,689

)

 

$

(11,869

)

 

$

(17,605

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

33,354,624

 

 

 

32,263,876

 

 

 

32,978,394

 

 

 

32,320,201

 

Shares used in computing non-GAAP net loss per share - basic and diluted

 

 

33,354,624

 

 

 

32,263,876

 

 

 

32,978,394

 

 

 

32,320,201