AUSTIN, Texas, Feb. 14, 2017 /PRNewswire/ -- RetailMeNot,
Inc. (NASDAQ:SALE), a leading savings destination connecting
consumers with retailers, restaurants and brands, both online and
in-store, today announced its financial results for the fourth
quarter and fiscal year ended December
31, 2016. In addition to this release, the company has
also provided a prepared remarks document, which is available on
the Investor Relations section of our website.
"During 2016 we continued to make strides toward our long-term
goal of becoming a leading savings destination for consumers," said
Cotter Cunningham, CEO & Founder, RetailMeNot, Inc.
"While the year had its challenges, we closed out the fourth
quarter on a positive note and believe we are well positioned to
capitalize on our initiatives in 2017 and beyond."
Fourth Quarter 2016 Financial Results Highlights and
Key Operating Metrics
(All comparisons are made to the fourth quarter of 2015
unless otherwise noted. Amounts may not compute due to
rounding.)
- Core Segment
- Total net revenues $78.3 million,
down 6%.
- In-store & advertising net revenues were up 23%,
representing 34% of total core net revenues.
- Mobile online transaction net revenues were up 8%, representing
12% of total core net revenues.
- Desktop online transaction net revenues declined 20%,
representing 53% of total core net revenues.
- Segment operating income ("SOI") was $30.6 million, representing SOI margins of
39%.
- Total website visits were 189.8 million, down 12%.
- Mobile visits in the quarter declined 2% to 91.8 million,
representing 48% of total visits.
- Desktop visits in the quarter declined 19% to 98.0
million.
- Mobile unique visitors were flat at 23.1 million.
- Gift Card Segment
- Net revenues were $18.6
million.
- Gross profit was $0.9 million,
representing gross profit margins of 5%.
- Consolidated Results (Core + Gift Card Segments)
- Net revenues grew 17% to $96.9
million.
- Net revenues from international markets were $14.8 million, representing 15% and 19% of
consolidated and core segment total net revenues,
respectively.
- GAAP net income was $2.4 million,
compared to GAAP net income of $9.0
million.
- Non-GAAP net income was $18.3
million, compared to non-GAAP net income of $19.1 million.
- GAAP EPS was $0.05 per share,
based on 49.3 million fully-diluted, weighted-average shares
outstanding, compared to GAAP EPS of $0.17 per share, based on 52.4 million
fully-diluted, weighted-average shares outstanding.
- Non-GAAP EPS was $0.37 per share,
based on 49.3 million fully-diluted, weighted-average shares
outstanding, compared to $0.36 per
share, based on 52.4 million fully-diluted, weighted-average shares
outstanding.
- Adjusted EBITDA was $29.7
million, representing adjusted EBITDA margins of 31%,
inclusive of our gift card segment, compared to adjusted EBITDA of
$30.8 million, or adjusted EBITDA
margins of 37%.
Full Year 2016 Financial Results Highlights and Key
Operating Metrics
(All comparisons are made to the full year 2015 unless
otherwise noted. Amounts may not compute due to
rounding.)
- Core Segment
- Total net revenues were $236.9
million, down 5%.
- In-store & advertising net revenues were up 29%,
representing 28% of total core net revenues.
- Mobile online transaction net revenues were up 11%,
representing 11% of total core net revenues.
- Desktop online transaction net revenues declined 17%,
representing 61% of total core net revenues.
- Segment operating income ("SOI") was $63.1 million, representing SOI margins of
27%.
- Total website visits were 650.1 million, down 10%.
- Mobile visits increased slightly to 298.3 million, representing
46% of total visits.
- Desktop visits declined 16% to 351.8 million.
- Gift Card Segment
- Net revenues were $43.5
million.
- Gross profit was $2.6 million,
representing gross profit margins of 6%.
- Consolidated Results (Core + Gift Card Segments)
- Net revenues grew 13% to $280.4
million.
- Net revenues from international markets were $48.7 million, representing 17% and 21% of
consolidated and core segment total net revenues,
respectively.
- GAAP net income was $2.0 million,
compared to GAAP net income of $11.8
million.
- Non-GAAP net income was $34.2
million, compared to non-GAAP net income of $41.2 million.
- GAAP EPS was $0.04 per share,
based on 49.8 million fully-diluted, weighted-average shares
outstanding, compared to GAAP EPS of $0.22 per share, based on 54.1 million
fully-diluted, weighted-average shares outstanding.
- Non-GAAP EPS was $0.69 per share,
based on 49.8 million fully-diluted, weighted-average shares
outstanding, compared to $0.76 per
share, based on 54.1 million fully-diluted, weighted-average shares
outstanding.
- Adjusted EBITDA was $61.3
million, representing adjusted EBITDA margins of 22%,
inclusive of our gift card segment, compared to adjusted EBITDA of
$71.9 million, or adjusted EBITDA
margins of 29%.
BUSINESS OUTLOOK
(All comparisons are made to the first quarter or full year
of 2016, respectively, unless otherwise noted. Amounts may
not compute due to
rounding.)
First Quarter 2017 (ending March 31, 2017)
With respect to our core segment, we expect:
- Total net revenues to be in the range of $49.0 to $53.0 million, reflecting a decline of
7% at the mid-point.
- Segment operating income to be in the range of $8.5 to $12.5 million, representing SOI margins
of 21% at the midpoint.
With respect to our gift card segment, we expect:
- Net revenues to be in the range of $13.5
to $18.5 million.
- Gross profit to be in the range of $700
to $970 thousand, or gross profit margins of 5% at the
midpoint.
On a consolidated basis (Core + Gift Card Segments), we
expect:
- Net revenues to be in the range of $62.5
to $71.5 million.
- Adjusted EBITDA to be in the range of $7.5 to $11.5 million, or adjusted EBITDA margins
of 14% at the midpoint.
Full Year 2017 (ending December 31, 2017)
With respect to the core segment, we expect:
- Total net revenues to be in the range of $223.5 to $238.5 million, reflecting a decline of
2% at the mid-point.
- Segment operating income to be in the range of $54.0 to $65.0 million, representing SOI margins
of 26% at the midpoint.
With respect to the gift card segment, we expect:
- Net revenues to be in the range of $72.5
to $87.5 million.
- Gross profit to be in the range of $4.0
to $4.8 million, or gross profit margins of 6% at the
midpoint.
On a consolidated basis, we expect:
- Net revenues to be in the range of $296.0 to $326.0 million.
- Adjusted EBITDA to be in the range of $50.5 to $60.5 million, or adjusted EBITDA
margins of 18% at the midpoint.
The above statements are based on current expectations and
actual results may differ materially as explained under the caption
"Forward-looking Statements" below. Information about
RetailMeNot's use of non-GAAP financial measures, including
adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income
(loss) per share, is provided below under the caption "Use of
Non-GAAP Financial Measures."
Quarterly Conference
Call
RetailMeNot will host a webcast to discuss its fourth quarter
& fiscal year 2016 financial results and key operating metrics
and its first quarter and fiscal year 2017 business outlook today
at 7:00 a.m. Central Time
(8:00 a.m. Eastern Time).
A live webcast of the conference call can be accessed within the
investor relations section of the RetailMeNot website at
http://investor.retailmenot.com. This webcast will contain
forward-looking statements and other material information regarding
the company's financial and operating results.
Following completion of the call, a replay of the call will be
available beginning at 9:30 a.m. Eastern
Time on February 14,
2076. To listen to the telephone replay, call (877) 344-7529
within the US, or (412) 317-0088 if calling internationally.
Access Code 10100598.
RetailMeNot uses its investor relations website
(http://investor.retailmenot.com) as a means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD. Accordingly, investors should
monitor the investor relations website, in addition to following
press releases, SEC filings, public conference calls and
webcasts.
About RetailMeNot, Inc.
RetailMeNot, Inc. (http://www.retailmenot.com/corp/) is a
leading savings destination connecting consumers with retailers,
restaurants and brands, both online and in-store. The company
enables consumers across the globe to find hundreds of thousands of
digital offers to save money while they shop or dine out. During
the 12 months ended December 31,
2016, RetailMeNot, Inc. experienced over 650 million visits
to its websites. It also averaged 23.1 million mobile unique
visitors per month during the three months ended December 31, 2016. RetailMeNot, Inc. estimates
that approximately $4.4 billion in
retailer sales were attributable to consumer transactions from paid
digital offers in its marketplace in 2016, more than $600 million of which were attributable to its
in-store solution. The RetailMeNot, Inc. portfolio of websites and
mobile applications includes RetailMeNot.com in the United States; RetailMeNot.ca in
Canada; VoucherCodes.co.uk in the United
Kingdom; ma-reduc.com and Poulpeo.com in France; and GiftCardZen.com and Deals2Buy.com
in North America. RetailMeNot,
Inc. is listed on the NASDAQ stock exchange under the ticker symbol
"SALE."
Key Operating Metrics
Visits. RetailMeNot defines a visit as a group of interactions
that take place on one of RetailMeNot Inc.'s websites from
computers, smartphones, tablets or other mobile devices within a
given time frame as measured by Google Analytics, a product that
provides digital marketing intelligence. A single visit can contain
multiple page views, events, social interactions and e-commerce
transactions. A single visitor can open multiple visits. Visits can
occur on the same day, or over several days, weeks or months. As
soon as one visit ends, there is then an opportunity to start a new
visit. A visit ends either through the passage of time or a
campaign change, with a campaign generally meaning arrival via
search engine, referring site or campaign-tagged information. A
visit ends through passage of time either after 30 minutes of
inactivity or at midnight Pacific
Time. A visit ends through a campaign change if a visitor
arrives via one campaign or source, leaves the site, and then
returns via another campaign or source. Visits for the period
do not include interactions through our mobile applications or
interactions with giftcardzen.com.
Mobile Unique Visitors. This amount represents the average
number of mobile unique visitors per month for the three month
period ended December 31, 2016.
RetailMeNot counts each of the following as a mobile unique
visitor: (i) the first time a specific mobile device accesses one
of our mobile applications during a calendar month, and (ii) the
first time a specific mobile device accesses one of our mobile
websites using a specific web browser during a calendar month. If a
mobile device accesses more than one of our mobile websites or
mobile applications in a single calendar month, the first access to
each such mobile website or mobile application is counted as a
mobile unique visitor as they are tracked separately for each
mobile domain. We measure mobile unique visitors with a combination
of internal data sources and Google Analytics data.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our
financial results, this document includes references to adjusted
EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss)
per share, each of which is a non-GAAP financial measure. For
a reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measures, see the tables
provided below in this release.
RetailMeNot has not reconciled adjusted EBITDA guidance to net
income (loss) guidance because we do not provide guidance
for third party acquisition-related costs or other operating
expense, net interest income/expense, other non-operating
income and expenses and income taxes, net of any foreign exchange
income or expense. As these items cannot be reasonably predicted at
this time, we are unable to provide such guidance. Accordingly a
reconciliation to net income (loss) guidance is not available
without unreasonable effort.
RetailMeNot defines adjusted EBITDA as net income (loss) plus
depreciation, amortization of intangible assets, stock-based
compensation expense, third-party acquisition-related costs, other
operating expenses (including non-cash impairments and compensation
arrangements entered into in connection with acquisitions), net
interest expense, other non-operating income or expense (including
net foreign exchange gains and losses) and income taxes.
RetailMeNot discloses adjusted EBITDA on a consolidated basis
because it is a key measure used by RetailMeNot and its board of
directors to understand and evaluate RetailMeNot's financial and
operating performance, establish budgets and operational goals and
as an element in determining compensation of certain of its
executives. RetailMeNot believes adjusted EBITDA facilitates
period-to-period comparisons of operations that could otherwise be
masked by the effect of the expenses that RetailMeNot excludes in
this non-GAAP financial measure and facilitates comparisons with
other peer companies, many of which use similar non-GAAP financial
measures to supplement their GAAP results.
RetailMeNot's presentation of non-GAAP net income (loss) and
non-GAAP net income (loss) per share excludes the impact of
amortization of purchased intangible assets, stock-based
compensation expense, third party acquisition-related costs, other
non-cash operating expenses (including non-cash impairments and
compensation arrangements entered into in connection with
acquisitions) and income taxes, net of the tax effect of the
adjustments above. These measures are not key metrics used by
RetailMeNot or its board of directors to measure financial or
operating performance or otherwise manage the business. However,
RetailMeNot provides non-GAAP net income (loss) and non-GAAP net
income (loss) per share as supplemental information for investors,
as they facilitate period-to-period comparisons of operations that
could otherwise be masked by the effect of the expenses that
RetailMeNot excludes in these non-GAAP financial measures and
facilitates comparisons with other peer companies, many of which
use similar non-GAAP financial measures to supplement their GAAP
results.
Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net
income (loss) per share have limitations as analytical tools, and
you should not consider these measures in isolation or as
substitutes for analysis of RetailMeNot's results as reported under
GAAP. Because of these limitations, you should consider adjusted
EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss)
per share alongside other financial performance measures, including
various cash flow metrics, operating income (loss), net income
(loss) and RetailMeNot's other GAAP results.
Forward-looking
Statements
This release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than
statements of historical facts, included herein regarding
RetailMeNot's strategy, future operations, future financial
position, future net revenues, projected costs, prospects, plans
and objectives of management are forward-looking statements. The
words "anticipate," "believe," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project," "seek,"
"should," "target," "will," "would" or similar expressions (or the
negative of these terms) are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. These forward-looking statements include,
among other things, statements about management's estimates
regarding future net revenues, adjusted EBITDA, segment operating
income, gross profit and other financial performance, visits,
mobile unique visitors, e-mail subscribers, other consumer
engagement metrics, new product and content offerings and other
statements about management's beliefs, intentions or goals.
RetailMeNot may not actually achieve the expectations disclosed in
the forward-looking statements, and you should not place undue
reliance on RetailMeNot's forward-looking statements. These
forward-looking statements involve risks and uncertainties that
could cause actual results or events to differ materially from the
expectations disclosed in the forward-looking statements,
including, but not limited to, (1) RetailMeNot's ability to attract
visitors to its websites from search engines, to attract and retain
users and to maintain or increase users' engagement with its
solutions; (2) the competitive environment for RetailMeNot's
business; (3) RetailMeNot's ability to monetize digital offers
through its mobile solutions; (4) RetailMeNot's ability to attract
and retain paid retailers and maintain its relationships with
performance marketing networks and suppliers of gift cards; (5)
RetailMeNot's ability to obtain and maintain high quality digital
offer content and maintain the positive perception of its brands,
including with respect to its gift card business; (6) RetailMeNot's
ability to have access to gift card inventory sufficient to meet
consumer demand; (7) RetailMeNot's ability to manage the growth in
scope and complexity of its business, including accurately planning
and forecasting its financial results; (8) consumer adoption of the
electronic sale of discount gift cards or the continued
attractiveness of discount gift cards; (9) RetailMeNot's need
to manage regulatory, tax and litigation risks, including
regulations related to gift cards and imposing sales tax on
e-commerce; (10) RetailMeNot's ability to retain its existing
management team and other key employees; (11) RetailMeNot's ability
to use and protect consumer data and to protect its intellectual
property; (12) RetailMeNot's ability to manage international
business uncertainties; (13) the impact and integration of current
and future acquisitions; and (14) other risks and potential factors
that could affect RetailMeNot's business and financial results
identified in RetailMeNot's filings with the Securities and
Exchange Commission (the "SEC"), including its quarterly report on
Form 10-Q filed with the SEC on November
1, 2016. Additional information will also be set forth
in RetailMeNot's future quarterly reports on Form 10-Q, annual
reports on Form 10-K and other filings that RetailMeNot makes with
the SEC. RetailMeNot does not intend or undertake any duty to
release publicly any updates or revisions to any forward-looking
statements contained herein.
Investor Contacts
Michael Magaro
RetailMeNot, Inc.
mmagaro@rmn.com
(512) 777-2899
Anne Bawden
RetailMeNot, Inc.
abawden@rmn.com
(415) 200-8654
Media Contact
Michelle Skupin
RetailMeNot, Inc.
mskupin@rmn.com
(808) 224-3215
RetailMeNot,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(Unaudited, in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
96,885
|
|
$
83,139
|
|
$
280,421
|
|
$
249,115
|
|
Cost of net revenues
(1)
|
23,165
|
|
4,871
|
|
61,511
|
|
19,904
|
|
Gross
profit
|
73,720
|
|
78,268
|
|
218,910
|
|
229,211
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Product development
(1)
|
13,705
|
|
12,177
|
|
52,283
|
|
51,580
|
|
Sales and marketing
(1)
|
27,975
|
|
33,173
|
|
98,209
|
|
99,380
|
|
General and
administrative (1)
|
12,288
|
|
10,906
|
|
42,731
|
|
39,813
|
|
Amortization of
purchased intangible assets
|
2,497
|
|
2,488
|
|
9,466
|
|
10,664
|
|
Other operating
expenses
|
2,213
|
|
2,334
|
|
7,547
|
|
4,616
|
|
Total operating
expenses
|
58,678
|
|
61,078
|
|
210,236
|
|
206,053
|
|
Income from
operations
|
15,042
|
|
17,190
|
|
8,674
|
|
23,158
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(559)
|
|
(539)
|
|
(2,275)
|
|
(1,988)
|
|
Other income
(expense), net
|
(344)
|
|
(14)
|
|
288
|
|
(315)
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
14,139
|
|
16,637
|
|
6,687
|
|
20,855
|
|
Provision for income
taxes
|
(11,778)
|
|
(7,600)
|
|
(4,719)
|
|
(9,007)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
2,361
|
|
$
9,037
|
|
$
1,968
|
|
$
11,848
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.05
|
|
$
0.17
|
|
$
0.04
|
|
$
0.22
|
|
Diluted
|
$
0.05
|
|
$
0.17
|
|
$
0.04
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in computing net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
48,202
|
|
51,782
|
|
48,724
|
|
53,076
|
|
Diluted
|
49,331
|
|
52,406
|
|
49,824
|
|
54,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RetailMeNot,
Inc.
|
Condensed
Consolidated Statements of Operations (continued)
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(1)
Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
|
Cost of net
revenues
|
$
482
|
|
$
568
|
|
$
1,846
|
|
$
2,211
|
|
Product
development
|
2,301
|
|
2,200
|
|
8,367
|
|
8,667
|
|
Sales and
marketing
|
1,518
|
|
1,598
|
|
5,360
|
|
6,254
|
|
General and
administrative
|
2,952
|
|
2,437
|
|
10,608
|
|
9,762
|
|
Total
|
$
7,253
|
|
$
6,803
|
|
$
26,181
|
|
$
26,894
|
|
RetailMeNot,
Inc.
|
Reconciliation of
Adjusted EBITDA
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net
income
|
$
2,361
|
|
$
9,037
|
|
$
1,968
|
|
$
11,848
|
Depreciation
and amortization
|
4,908
|
|
4,389
|
|
18,146
|
|
17,131
|
Stock-based
compensation expense
|
7,253
|
|
6,803
|
|
26,181
|
|
26,894
|
Third party
acquisition-related costs
|
239
|
|
36
|
|
727
|
|
91
|
Other operating
expenses
|
2,213
|
|
2,334
|
|
7,547
|
|
4,616
|
Interest
expense, net
|
559
|
|
539
|
|
2,275
|
|
1,988
|
Other (income)
expense, net
|
344
|
|
14
|
|
(288)
|
|
315
|
Provision for
income taxes
|
11,778
|
|
7,600
|
|
4,719
|
|
9,007
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
29,655
|
|
$
30,752
|
|
$
61,275
|
|
$
71,890
|
RetailMeNot,
Inc.
|
Reconciliation of
Non-GAAP Net Income and Non-GAAP Diluted EPS
|
(Unaudited, in
thousands, except per share data and percentage
rates)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP Income before
income taxes
|
$
14,139
|
|
$
16,637
|
|
6,687
|
|
20,855
|
GAAP Provision for
income taxes
|
(11,778)
|
|
(7,600)
|
|
(4,719)
|
|
(9,007)
|
GAAP Net
income
|
$
2,361
|
|
$
9,037
|
|
$
1,968
|
|
$
11,848
|
Non-GAAP
adjustments to net income:
|
|
|
|
|
|
|
|
Amortization of
purchased intangibles
|
2,497
|
|
2,488
|
|
9,466
|
|
10,664
|
Stock-based
compensation expense
|
7,253
|
|
6,803
|
|
26,181
|
|
26,894
|
Third party
acquisition-related costs
|
239
|
|
36
|
|
727
|
|
91
|
Other operating
expenses
|
2,213
|
|
2,334
|
|
7,547
|
|
4,616
|
Less: Tax
effect of adjustments above
|
3,693
|
|
(1,622)
|
|
(11,730)
|
|
(12,947)
|
Total
non-GAAP net income
|
$
18,256
|
|
$
19,076
|
|
$
34,159
|
|
$
41,166
|
|
|
|
|
|
|
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
GAAP
|
$
0.05
|
|
$
0.17
|
|
$
0.04
|
|
$
0.22
|
Non-GAAP
|
$
0.37
|
|
$
0.36
|
|
$
0.69
|
|
$
0.76
|
|
|
|
|
|
|
|
|
Shares used in
non-GAAP diluted EPS calculation:
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding used in calculating GAAP diluted EPS
|
49,331
|
|
52,406
|
|
49,824
|
|
54,099
|
|
|
|
|
|
|
|
|
Additional dilutive
securities for non-GAAP diluted EPS
|
-
|
|
-
|
|
-
|
|
-
|
Weighted-average
shares outstanding used in calculating non-GAAP diluted
EPS
|
49,331
|
|
52,406
|
|
49,824
|
|
54,099
|
|
|
|
|
|
|
|
|
Reconciliation of
non-GAAP effective tax rate:
|
|
|
|
|
|
|
|
GAAP Effective tax
rate
|
83.3%
|
|
45.7%
|
|
70.6%
|
|
43.2%
|
Tax effect of
non-GAAP adjustments to net income
|
-52.6%
|
|
-13.1%
|
|
-38.1%
|
|
-8.4%
|
Non-GAAP effective
tax rate
|
30.7%
|
|
32.6%
|
|
32.5%
|
|
34.8%
|
RetailMeNot,
Inc.
|
Segment
Results
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
Core
|
|
Gift
Cards
|
|
Unallocated
|
|
Total
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
78,261
|
|
$
18,624
|
|
$
-
|
|
$
96,885
|
Cost of net
revenues
|
4,983
|
|
17,682
|
|
500
|
|
23,165
|
Gross
profit
|
73,278
|
|
942
|
|
(500)
|
|
73,720
|
Operating
expenses:
|
|
|
|
|
|
|
|
Product
development
|
9,722
|
|
399
|
|
3,584
|
|
13,705
|
Sales and
marketing
|
25,746
|
|
683
|
|
1,546
|
|
27,975
|
General and
administrative
|
7,164
|
|
851
|
|
4,273
|
|
12,288
|
Amortization of
purchased intangible assets
|
-
|
|
-
|
|
2,497
|
|
2,497
|
Other operating
expenses
|
-
|
|
-
|
|
2,213
|
|
2,213
|
Total operating
expenses
|
42,632
|
|
1,933
|
|
14,113
|
|
58,678
|
Income (loss) from
operations
|
$
30,646
|
|
$
(991)
|
|
$
(14,613)
|
|
$
15,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
Core
|
|
Gift
Cards
|
|
Unallocated
|
|
Total
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
83,139
|
|
$
-
|
|
$
-
|
|
$
83,139
|
Cost of net
revenues
|
4,163
|
|
-
|
|
708
|
|
4,871
|
Gross
profit
|
78,976
|
|
-
|
|
(708)
|
|
78,268
|
Operating
expenses:
|
|
|
|
|
|
|
|
Product
development
|
8,903
|
|
-
|
|
3,274
|
|
12,177
|
Sales and
marketing
|
31,210
|
|
-
|
|
1,963
|
|
33,173
|
General and
administrative
|
8,111
|
|
-
|
|
2,795
|
|
10,906
|
Amortization of
purchased intangible assets
|
-
|
|
-
|
|
2,488
|
|
2,488
|
Other operating
expenses
|
-
|
|
-
|
|
2,334
|
|
2,334
|
Total operating
expenses
|
48,224
|
|
-
|
|
12,854
|
|
61,078
|
Income (loss) from
operations
|
$
30,752
|
|
$
-
|
|
$
(13,562)
|
|
$
17,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
Core
|
|
Gift
Cards
|
|
Unallocated
|
|
Total
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
236,874
|
|
$
43,547
|
|
$
-
|
|
$
280,421
|
Cost of net
revenues
|
18,426
|
|
40,922
|
|
2,163
|
|
61,511
|
Gross
profit
|
218,448
|
|
2,625
|
|
(2,163)
|
|
218,910
|
Operating
expenses:
|
|
|
|
|
|
|
|
Product
development
|
38,123
|
|
944
|
|
13,216
|
|
52,283
|
Sales and
marketing
|
90,658
|
|
1,477
|
|
6,074
|
|
98,209
|
General and
administrative
|
26,563
|
|
2,033
|
|
14,135
|
|
42,731
|
Amortization of
purchased intangible assets
|
-
|
|
-
|
|
9,466
|
|
9,466
|
Other operating
expenses
|
-
|
|
-
|
|
7,547
|
|
7,547
|
Total operating
expenses
|
155,344
|
|
4,454
|
|
50,438
|
|
210,236
|
Income (loss) from
operations
|
$
63,104
|
|
$
(1,829)
|
|
$
(52,601)
|
|
$
8,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2015
|
|
Core
|
|
Gift
Cards
|
|
Unallocated
|
|
Total
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
249,115
|
|
$
-
|
|
$
-
|
|
$
249,115
|
Cost of net
revenues
|
17,170
|
|
-
|
|
2,734
|
|
19,904
|
Gross
profit
|
231,945
|
|
-
|
|
(2,734)
|
|
229,211
|
Operating
expenses:
|
|
|
|
|
|
|
|
Product
development
|
39,409
|
|
-
|
|
12,171
|
|
51,580
|
Sales and
marketing
|
91,772
|
|
-
|
|
7,608
|
|
99,380
|
General and
administrative
|
28,874
|
|
-
|
|
10,939
|
|
39,813
|
Amortization of
purchased intangible assets
|
-
|
|
-
|
|
10,664
|
|
10,664
|
Other operating
expenses
|
-
|
|
-
|
|
4,616
|
|
4,616
|
Total operating
expenses
|
160,055
|
|
-
|
|
45,998
|
|
206,053
|
Income (loss) from
operations
|
$
71,890
|
|
$
-
|
|
$
(48,732)
|
|
$
23,158
|
RetailMeNot,
Inc.
|
Reconciliation of
Unallocated Expenses
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
$
2,411
|
|
$
1,901
|
|
$
8,680
|
|
$
6,467
|
Stock-based
compensation expense
|
7,253
|
|
6,803
|
|
26,181
|
|
26,894
|
Third party
acquisition-related costs
|
239
|
|
36
|
|
727
|
|
91
|
Amortization of
purchased intangible assets
|
2,497
|
|
2,488
|
|
9,466
|
|
10,664
|
Other operating
expenses
|
2,213
|
|
2,334
|
|
7,547
|
|
4,616
|
Total Unallocated
expenses
|
$
14,613
|
|
$
13,562
|
|
$
52,601
|
|
$
48,732
|
RetailMeNot,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited, in
thousands)
|
|
As of
December 31,
|
|
As of
December 31,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
216,858
|
|
$
259,769
|
Accounts
receivable, net
|
66,424
|
|
67,504
|
Inventory
|
9,529
|
|
-
|
Prepaids and
other current assets, net
|
10,485
|
|
9,959
|
Total
current assets
|
303,296
|
|
337,232
|
|
|
|
|
Property and
equipment, net
|
24,800
|
|
21,382
|
Intangible
assets, net
|
55,046
|
|
61,245
|
Goodwill
|
190,882
|
|
174,725
|
Other assets,
net
|
7,983
|
|
8,040
|
Total
assets
|
$
582,007
|
|
$
602,624
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
9,372
|
|
$
8,713
|
Accrued
compensation and benefits
|
13,104
|
|
10,136
|
Accrued
expenses and other current liabilities
|
5,104
|
|
7,155
|
Income taxes
payable
|
7,564
|
|
5,109
|
Current
maturities of long term debt
|
10,000
|
|
10,000
|
Total
current liabilities
|
45,144
|
|
41,113
|
|
|
|
|
Deferred tax
liability--noncurrent
|
1,027
|
|
1,498
|
Long term
debt
|
51,106
|
|
60,872
|
Other
noncurrent liabilities
|
9,121
|
|
7,752
|
Total
liabilities
|
106,398
|
|
111,235
|
|
|
|
|
Stockholders' equity:
|
|
|
|
Common
stock
|
48
|
|
51
|
Additional
paid-in capital
|
480,333
|
|
495,151
|
Accumulated
other comprehensive loss
|
(7,810)
|
|
(4,883)
|
Retained
earnings
|
3,038
|
|
1,070
|
Total stockholders' equity
|
475,609
|
|
491,389
|
Total
liabilities and stockholders' equity
|
$
582,007
|
|
$
602,624
|
RetailMeNot,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
2,361
|
|
$
9,037
|
|
$
1,968
|
|
$
11,848
|
Adjustments to
reconcile net income to cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization expense
|
4,908
|
|
4,389
|
|
18,146
|
|
17,131
|
Stock based
compensation expense
|
7,253
|
|
6,803
|
|
26,181
|
|
26,894
|
Excess income
tax benefit from stock-based compensation
|
(25)
|
|
(41)
|
|
(160)
|
|
(1,374)
|
Deferred
income tax benefit
|
(1,882)
|
|
(1,087)
|
|
(291)
|
|
(849)
|
Non-cash
interest expense
|
116
|
|
102
|
|
440
|
|
407
|
Impairment of
assets
|
786
|
|
2,340
|
|
1,620
|
|
2,340
|
Amortization
of deferred compensation
|
1,435
|
|
-
|
|
5,944
|
|
2,297
|
Other non-cash
(gains) losses, net
|
361
|
|
(746)
|
|
(1,355)
|
|
223
|
Provision for
doubtful accounts receivable
|
1,085
|
|
867
|
|
1,344
|
|
783
|
Changes in operating
assets and liabilities:
|
|
|
|
|
-
|
|
-
|
Accounts receivable,
net
|
(26,775)
|
|
(28,081)
|
|
(1,761)
|
|
161
|
Inventory
|
(6,363)
|
|
-
|
|
(8,796)
|
|
-
|
Prepaid expenses and
other current assets, net
|
8,210
|
|
3,823
|
|
(1,104)
|
|
(1,123)
|
Accounts
payable
|
3,145
|
|
4,881
|
|
667
|
|
4,035
|
Accrued expenses and
other current liabilities
|
2,792
|
|
6,839
|
|
(3,242)
|
|
(3,222)
|
Other noncurrent
assets and liabilities
|
(1,922)
|
|
(895)
|
|
(712)
|
|
938
|
Net cash
(used in) provided by operating activities
|
(4,515)
|
|
8,231
|
|
38,889
|
|
60,489
|
Cash flows
from investing activities:
|
|
|
|
|
|
|
|
Payments for
acquisition of businesses, net of acquired cash
|
239
|
|
-
|
|
(20,729)
|
|
-
|
Proceeds from
sale of property and equipment
|
8
|
|
9
|
|
30
|
|
23
|
Purchase of
other assets
|
-
|
|
(35)
|
|
(44)
|
|
(4,337)
|
Purchase of
non-marketable investment
|
-
|
|
-
|
|
-
|
|
(4,000)
|
Purchase of
property and equipment
|
(2,980)
|
|
(2,162)
|
|
(12,192)
|
|
(10,903)
|
Net cash
used in investing activities
|
(2,733)
|
|
(2,188)
|
|
(32,935)
|
|
(19,217)
|
Cash flows
from financing activities:
|
|
|
|
|
|
|
|
Proceeds from
notes payable, net of issuance costs
|
-
|
|
-
|
|
-
|
|
29,950
|
Payments on
notes payable
|
(2,500)
|
|
(2,500)
|
|
(10,000)
|
|
(7,500)
|
Payment of
offering costs related to public offerings
|
-
|
|
-
|
|
-
|
|
-
|
Excess income
tax benefit from stock-based compensation and other
|
25
|
|
41
|
|
160
|
|
1,374
|
Payments of
principal on capital lease arrangements
|
-
|
|
-
|
|
(67)
|
|
(7)
|
Payments for
repurchase of common stock
|
(7,775)
|
|
(14,065)
|
|
(36,209)
|
|
(52,873)
|
Proceeds from
issuance of common stock, net of tax payments related to net share
settlement of equity awards
|
(330)
|
|
(164)
|
|
(1,899)
|
|
4,166
|
Net cash
used in financing activities
|
(10,580)
|
|
(16,688)
|
|
(48,015)
|
|
(24,890)
|
Effect of
foreign currency exchange rate on cash
|
(581)
|
|
(291)
|
|
(850)
|
|
(1,095)
|
Change in
cash and cash equivalents
|
(18,409)
|
|
(10,936)
|
|
(42,911)
|
|
15,287
|
Cash and
cash equivalents, beginning of period
|
235,267
|
|
270,705
|
|
259,769
|
|
244,482
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents, end of period
|
$
216,858
|
|
$
259,769
|
|
$
216,858
|
|
$
259,769
|
-- RMNSALE-F –
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/retailmenot-inc-announces-fourth-quarter--fiscal-year-2016-financial-results-300406745.html
SOURCE RetailMeNot, Inc.