SAN ANTONIO, Feb. 28, 2019 /PRNewswire/ -- GlobalSCAPE,
Inc. (NYSE American: GSB), a worldwide leader in the secure
movement and integration of data, today announced financial results
for its fiscal fourth quarter and year ended December 31, 2018.
Fourth Quarter 2018 Results (in thousands, except per share
amounts)
- Revenue was $9,269 compared to
$8,769 for the fourth quarter of
2017
- GAAP net income was $2,998
compared to a net loss of $194 for
the fourth quarter of 2017
- Adjusted EBITDA was $4,645
compared to $1,461 for the fourth
quarter of 2017
- *GAAP fully diluted earnings per share was $.17 compared to a net loss of $.01 for the fourth quarter of 2017
Year Ended December 31, 2018
Results (in thousands, except per share amounts)
- Revenue was $34,416 compared to
$33,891 for the year ended
December 31, 2017
- GAAP net income was $3,654
compared to $1,371 for the year ended
December 31, 2017
- Adjusted EBITDA was $8,237
compared to $6,332 for the year ended
December 31, 2017
- *GAAP fully diluted earnings per share was $.17 compared to $.06 for the year ended December 31, 2017
"We are delighted with our fourth quarter financial
performance," said Matt Goulet,
President and CEO at GlobalSCAPE. "The momentum in our business is
the result of decisive action taken in 2018 to increase revenue,
reduce operating expenses, and deliver greater profitability. When
comparing the fourth quarter of 2018 to the same period in 2017,
revenue increased 6%, operating expenses declined 43%, and a
$194,000 net loss improved to
$3.0 million in net income. Legal
expenses declined to $388,000 in the
fourth quarter of 2018 compared to $1.4
million in the fourth quarter of 2017, primarily due to a
decrease in expenses related to the previously disclosed legal
matters. In the first full quarter after our August 2018 restructuring, our streamlined
operating teams were successful in driving $4.6 million in adjusted EBITDA."
"Year over year results demonstrate our commitment to delivering
improved shareholder value, with revenue up 2%, operating expenses
down 7%, and net income up 167%," Goulet continued. "Adjusted
EBITDA for 2018 improved to $8.2
million as compared to $6.3
million in 2017. Our capital allocation strategy benefited
our per share profitability, as 896,348 shares were repurchased in
the fourth quarter of 2018. When combined with the shares purchased
in the modified Dutch tender, we have repurchased 4,907,361 shares
in 2018, reducing outstanding shares by approximately 22.4%. At
December 31, 2018, there were
17,130,918 shares of common stock outstanding. Our balance sheet is
strong, with $9.2 million in cash and
cash equivalents and no debt. Looking ahead to 2019, we will
continue to monitor capital markets for opportunities to repurchase
shares and consider other actions designed to enhance shareholder
value. We appreciate the steadfast efforts of our dedicated
workforce and thank our customers for their continued loyalty."
About GlobalSCAPE
GlobalSCAPE, Inc. (NYSE American:
GSB) is a pioneer in securing and automating the movement and
integration of data seamlessly in, around and outside your
business, between applications, people and places, in and out of
the cloud. GlobalSCAPE provides cloud services that automate your
work, secure your data, and integrate your applications – while
giving visibility to those who need it. GlobalSCAPE makes business
flow brilliantly. Visit www.globalscape.com.
Safe Harbor Statement
This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. The words "would," "exceed," "should," "anticipates,"
"believe," "expect," and variations of such words and similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not a forward-looking statement.
These forward-looking statements are based upon the Company's
current expectations and are subject to a number of risks,
uncertainties and assumptions. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. Among the important
factors that could cause the actual results of the operations or
financial condition of the Company to differ materially from those
expressed or implied by forward-looking statements include, but are
not limited to, the overall level of consumer spending on our
products; general economic conditions and other factors affecting
consumer confidence; disruption and volatility in the global
capital and credit markets; the Company's ability to protect
patents, trademarks and other intellectual property rights; any
breaches of, or interruptions in, our information systems; legal,
regulatory, political and economic risks in international markets;
the results of our reduction in force; the discovery of additional
information relevant to the internal investigation; the possibility
that additional errors relevant to the recently completed
restatement may be identified; pending litigation and other
proceedings and the possibility of further legal proceedings
adverse to the Company resulting from the restatement or related
matters; the costs associated with the restatement and the
investigation, pending litigation and other proceedings and
possible future legal proceedings; and our decreased "public float"
(the number of Shares owned by non-affiliate stockholders and
available for trading in the securities markets) as a result of
share repurchases. More information on potential risks and other
factors that could affect the Company's financial results is
included from time to time in the Company's public reports filed
with the SEC, including the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
All forward-looking statements included in this press release are
based upon information available to the Company as of the date of
this press release and speak only as of the date hereof.
Use of Non-GAAP Measures
The Company uses
Adjusted EBITDA (Earnings Before Interest, Taxes, Total Other
Income/Expense, Depreciation, Amortization, and Share-Based
Compensation Expense) to provide a view of income and expenses that
is supplemental and secondary to the primary assessment of net
income as presented in the consolidated statement of operations and
comprehensive income.
Prior to 2018, we did not add back the amortization of
capitalized software development costs in our Adjusted EBITDA
computation. In 2018, after researching the methods used by other
software companies, we changed our method of computing Adjusted
EBITDA to include the amortization of capitalized software
development cost in order to enhance the comparability of the
computation to that of our peers. A reconciliation of Adjusted
EBITDA previously reported to the current presentation is provided
at the end of this release.
Adjusted EBITDA is not a measure of financial performance under
GAAP. It should not be considered as a substitute for net income
presented on our condensed consolidated statement of operations and
comprehensive income. Adjusted EBITDA has limitations as an
analytical tool and when assessing our operating performance.
Adjusted EBITDA should not be considered in isolation or without a
simultaneous reading and consideration of our financial statements
prepared in accordance with GAAP. A reconciliation of net income
(loss) to Adjusted EBITDA is provided at the end of this
release.
*Quarterly earnings per share may not total to yearly earnings
per share due to the weighted average number of shares outstanding
each quarter.
GlobalSCAPE Investor Relations Contact:
ir@GlobalSCAPE.com
GlobalSCAPE Public Relations Contact:
Zintel Public Relations
Matthew Zintel
matthew.zintel@zintelpr.com
Adjusted EBITDA
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$ 2,998
|
|
$
(194)
|
|
$ 3,654
|
|
$ 1,371
|
Add (subtract) items
to determine Adjusted EBITDA:
|
|
|
|
|
|
|
|
Income tax
expense
|
840
|
|
677
|
|
1,227
|
|
1,547
|
Interest (income)
expense, net
|
(22)
|
|
(75)
|
|
(86)
|
|
(296)
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
Total depreciation
and amortization
|
532
|
|
540
|
|
2,173
|
|
2,144
|
Share-based
compensation expense
|
297
|
|
513
|
|
1,269
|
|
1,566
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 4,645
|
|
$ 1,461
|
|
$ 8,237
|
|
$ 6,332
|
Adjusted EBITDA
As Previously Reported
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2017
|
|
|
|
|
Adjusted EBITDA as
previously reported
|
$
982
|
|
$
4,449
|
Amortization of
capitalized software development costs
|
$
479
|
|
$
1,883
|
|
|
|
|
Adjusted EBITDA as
now reported
|
$
1,461
|
|
$
6,332
|
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SOURCE GlobalSCAPE, Inc.