Glowpoint Reports Second Quarter 2018 Results
09 August 2018 - 9:00PM
Glowpoint, Inc. (NYSE American: GLOW), (“Glowpoint” or the
“Company”), a managed service provider of video collaboration and
network applications, today reported financial results for the
three and six months ended June 30, 2018.
Second Quarter Financial
Highlights
- Cash of $2.7 million, working capital of $3.7 million and no
debt as of June 30, 2018.
- Revenue of $3.3 million, net loss of $1.7 million, and positive
adjusted EBITDA (“AEBITDA”) of $0.1 million. Net loss includes a
non-cash impairment charge on goodwill of $1.5 million. AEBITDA is
a non-GAAP financial measure. See “Non-GAAP Financial
Information” later in this release for a reconciliation of this
non-GAAP financial measure.
- Stockholders’ equity of $10.9 million as of June 30, 2018.
“As previously outlined in our July 18th press
release, the company is actively exploring growth opportunities
based on recent improvements in our financial condition. Our
balance sheet remains strong, with $2.7 million of cash and no debt
as of June 30, 2018, allowing us to prospect potential acquisition
and/or business development initiatives,” said Glowpoint President
and CEO, Peter Holst.
Glowpoint’s results from operations and
financial condition are more fully discussed in our Quarterly
Report on Form 10-Q for the three months ended June 30, 2018 on
file with the Securities and Exchange Commission (the “SEC”).
Investors are encouraged to carefully review the Company’s
Form 10-Q for a complete analysis of its results from operations
and financial condition.
About Glowpoint
Glowpoint, Inc. (NYSE American: GLOW) is a
managed service provider of video collaboration and network
applications. Our services are designed to provide a comprehensive
suite of automated and concierge applications to simplify the user
experience and expedite the adoption of video as the primary means
of collaboration. Our customers include Fortune 1000
companies, along with small and medium sized enterprises in a
variety of industries. To learn more please visit
www.glowpoint.com.
Non-GAAP Financial
Information
Adjusted EBITDA (“AEBITDA”), a non-GAAP
financial measure, is defined as net loss before depreciation and
amortization, income tax expense, stock-based compensation,
impairment charges, and interest and other expense, net.
AEBITDA is not intended to replace operating loss, net loss, cash
flow or other measures of financial performance reported in
accordance with generally accepted accounting principles
(GAAP). Rather, AEBITDA is an important measure used by
management to assess the operating performance of the Company and
is used in determining achievement of performance-based stock
awards. AEBITDA as defined here may not be comparable to
similarly titled measures reported by other companies due to
differences in accounting policies. Therefore, AEBITDA should be
considered in conjunction with net loss and other performance
measures prepared in accordance with GAAP, such as operating loss
or cash flow provided by (used in) operating activities, and should
not be considered in isolation or as a substitute for GAAP
measures, such as net loss, operating loss or any other GAAP
measure of liquidity or financial performance. A
reconciliation of AEBITDA to net loss is shown in the attached
schedules.
Forward looking and cautionary
statements
This press release and any oral statements made
regarding the subject of this release contain forward-looking
statements as defined under Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and are made under the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, that address
activities that Glowpoint assumes, plans, expects, believes,
intends, projects, estimates or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. Without limiting the generality
of the foregoing, forward-looking statements contained in this
press release include statements regarding the relative stability
of the Company’s revenue and overall financial condition and the
success of any acquisitions or business development initiatives.
The forward-looking statements are based on management’s current
belief, based on currently available information, as to the outcome
and timing of future events, and involve factors, risks, and
uncertainties that may cause actual results in future periods to
differ materially from such statements. Such risks include
the fact that the Company has a history of net operating losses and
may incur future net losses, impacts to the Company's financial
statements resulting from any future asset impairment charges, the
risk that the Company may not be able to introduce new products
that achieve broad market acceptance or be able to compete
effectively in its marketplace, and other risk factors set forth in
the Company’s Annual Report on Form 10-K for the year ending
December 31, 2017 and in other filings made by the Company with the
SEC from time to time, including the Company’s Quarterly Report on
Form 10-Q for the three months ended June 30, 2018. Any of
these factors could cause Glowpoint’s actual results and plans to
differ materially from those in the forward-looking
statements. Therefore, Glowpoint can give no assurance that
its future results will be as estimated. Glowpoint does not
intend to, and disclaims any obligation to, correct, update or
revise any information contained herein.
INVESTOR CONTACT: Investor
Relations Glowpoint, Inc. +1 303-640-3840
investorrelations@glowpoint.com www.glowpoint.com
|
GLOWPOINT, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except par value, stated value
and shares) |
(Unaudited) |
|
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash |
|
$ |
2,678 |
|
|
$ |
3,946 |
|
Accounts
receivable, net |
1,473 |
|
|
1,220 |
|
Prepaid
expenses and other current assets |
547 |
|
|
715 |
|
Total
current assets |
4,698 |
|
|
5,881 |
|
Property and equipment,
net |
1,027 |
|
|
1,159 |
|
Goodwill |
5,575 |
|
|
7,750 |
|
Intangibles, net |
562 |
|
|
626 |
|
Other assets |
8 |
|
|
8 |
|
Total
assets |
|
$ |
11,870 |
|
|
$ |
15,424 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Current
portion of long-term debt |
|
$ |
— |
|
|
$ |
1,194 |
|
Accounts
payable |
303 |
|
|
337 |
|
Accrued
expenses and other liabilities |
447 |
|
|
1,003 |
|
Accrued
sales taxes and regulatory fees |
204 |
|
|
259 |
|
Total
current liabilities |
954 |
|
|
2,793 |
|
Long term debt, net of
current portion |
— |
|
|
369 |
|
Total
liabilities |
954 |
|
|
3,162 |
|
Stockholders’
equity: |
|
|
|
Preferred
stock, Series A-2, convertible; $.0001 par value; $7,500 stated
value; 7,500 shares authorized, 32 shares issued and outstanding
and liquidation preference of $237 at June 30, 2018 and December
31, 2017 |
— |
|
|
— |
|
Preferred
stock Series B, convertible; $.0001 par value; $1,000 stated value;
2,800 shares authorized, 375 shares issued and outstanding and
liquidation preference of $375 at June 30, 2018 and 450 shares
issued and outstanding and liquidation preference of $450 at
December 31, 2017 |
— |
|
|
— |
|
Preferred
stock Series C, convertible; $.0001 par value; $1,000 stated value;
1,750 shares authorized, 1,275 shares issued and outstanding and
liquidation preference of $1,275 at June 30, 2018 and none at
December 31, 2017 |
— |
|
|
— |
|
Common
stock, $.0001 par value; 150,000,000 shares authorized; 47,318,000
issued and 46,485,000 outstanding at June 30, 2018 and 45,161,000
issued and 44,510,000 outstanding at December 31, 2017 |
5 |
|
|
5 |
|
Treasury
stock, 833,000 and 651,000 shares at June 30, 2018 and December 31,
2017, respectively |
(404 |
) |
|
(352 |
) |
Additional paid-in capital |
184,794 |
|
|
183,114 |
|
Accumulated deficit |
(173,479 |
) |
|
(170,505 |
) |
Total
stockholders’ equity |
10,916 |
|
|
12,262 |
|
Total
liabilities and stockholders’ equity |
|
$ |
11,870 |
|
|
$ |
15,424 |
|
|
|
|
|
|
|
|
|
|
|
GLOWPOINT, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS and GAAP to Non-GAAP Reconciliation |
(In thousands, except per share
data) |
(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue |
$ |
3,293 |
|
|
$ |
3,856 |
|
|
$ |
6,767 |
|
|
$ |
7,936 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
1,930 |
|
|
2,261 |
|
|
4,077 |
|
|
4,709 |
|
Research
and development |
225 |
|
|
292 |
|
|
475 |
|
|
579 |
|
Sales and
marketing |
43 |
|
|
160 |
|
|
220 |
|
|
300 |
|
General
and administrative |
1,064 |
|
|
862 |
|
|
1,962 |
|
|
1,878 |
|
Impairment charges |
1,525 |
|
|
— |
|
|
2,175 |
|
|
— |
|
Depreciation and amortization |
185 |
|
|
460 |
|
|
417 |
|
|
919 |
|
Total operating
expenses |
4,972 |
|
|
4,035 |
|
|
9,326 |
|
|
8,385 |
|
Loss from
operations |
(1,679 |
) |
|
(179 |
) |
|
(2,559 |
) |
|
(449 |
) |
Interest and other
expense, net |
(10 |
) |
|
(384 |
) |
|
(415 |
) |
|
(755 |
) |
Loss before income
taxes |
(1,689 |
) |
|
(563 |
) |
|
(2,974 |
) |
|
(1,204 |
) |
Income tax expense |
— |
|
|
(27 |
) |
|
— |
|
|
(54 |
) |
Net loss |
(1,689 |
) |
|
(590 |
) |
|
(2,974 |
) |
|
(1,258 |
) |
Preferred stock
dividends |
3 |
|
|
3 |
|
|
6 |
|
|
6 |
|
Net loss attributable
to common stockholders |
$ |
(1,692 |
) |
|
$ |
(593 |
) |
|
$ |
(2,980 |
) |
|
$ |
(1,264 |
) |
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders per share: |
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
GAAP to
Non-GAAP Reconciliation: |
|
|
|
|
|
|
|
Net
loss |
$ |
(1,689 |
) |
|
$ |
(590 |
) |
|
$ |
(2,974 |
) |
|
$ |
(1,258 |
) |
Depreciation and amortization |
185 |
|
|
460 |
|
|
417 |
|
|
919 |
|
Interest
and other expense, net |
10 |
|
|
384 |
|
|
415 |
|
|
755 |
|
Income
tax expense |
— |
|
|
27 |
|
|
— |
|
|
54 |
|
EBITDA |
(1,494 |
) |
|
281 |
|
|
(2,142 |
) |
|
470 |
|
Stock-based compensation |
|
110 |
|
|
116 |
|
|
159 |
|
|
280 |
|
Impairment charges |
1,525 |
|
|
— |
|
|
2,175 |
|
|
— |
|
Adjusted
EBITDA |
$ |
141 |
|
|
$ |
397 |
|
|
$ |
192 |
|
|
$ |
750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOWPOINT, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited and in thousands) |
|
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
Cash flows from
operating activities: |
|
|
|
Net
loss |
$ |
(2,974 |
) |
|
$ |
(1,258 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
417 |
|
|
919 |
|
Bad debt
expense (recovery) |
14 |
|
|
(14 |
) |
Amortization of deferred financing costs |
— |
|
|
36 |
|
Amortization of debt discount, net of gain on extinguishment |
104 |
|
|
— |
|
Stock-based compensation expense |
159 |
|
|
280 |
|
Impairment charges |
2,175 |
|
|
5 |
|
Deferred
tax provision |
— |
|
|
54 |
|
Changes
in assets and liabilities: |
|
|
|
Accounts
receivable |
(268 |
) |
|
(47 |
) |
Prepaid
expenses and other current assets |
168 |
|
|
42 |
|
Accounts
payable |
(34 |
) |
|
36 |
|
Accrued
expenses and other liabilities |
(395 |
) |
|
18 |
|
Accrued
sales taxes and regulatory fees |
(55 |
) |
|
(42 |
) |
Net cash
provided by (used in) operating activities |
(689 |
) |
|
29 |
|
Cash flows from
investing activities: |
|
|
|
Purchases
of property and equipment |
(222 |
) |
|
(60 |
) |
Net cash
used in investing activities |
(222 |
) |
|
(60 |
) |
Cash flows from
financing activities: |
|
|
|
Principal
payments under borrowing arrangements |
(1,832 |
) |
|
— |
|
Proceeds
from Series C preferred stock issuance, net of expenses of
$223 |
1,527 |
|
|
— |
|
Purchase
of treasury stock |
(52 |
) |
|
(12 |
) |
Net cash
used in financing activities |
(357 |
) |
|
(12 |
) |
Decrease in cash and
cash equivalents |
(1,268 |
) |
|
(43 |
) |
Cash at beginning of
period |
3,946 |
|
|
1,140 |
|
Cash at end of
period |
$ |
2,678 |
|
|
$ |
1,097 |
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid
during the period for interest |
$ |
318 |
|
|
$ |
542 |
|
|
|
|
|
Non-cash investing and
financing activities: |
|
|
|
Accrued
preferred stock dividends |
$ |
6 |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
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