|
Web.com
Group, Inc.
|
|
(Exact
name of registrant as specified in its
charter)
|
|
Delaware
|
000-51595
|
94-3327894
|
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
|
of
incorporation)
|
File
Number)
|
Identification
No.)
|
|
12808
Gran Bay Parkway West, Jacksonville, FL
|
32258
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
(Former
name or former address, if changed since last
report.)
|
|
r
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
r
|
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
r
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
r
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
|
|
99.1
|
Press release dated
August 4, 2009 containing Web.com Group, Inc.’s results of operations for
the fiscal quarter ended June 30,
2009.
|
|
Web.com
Group, Inc.
|
|
|
(Registrant)
|
|
|
Date:
August 4, 2009
|
|
|
/s/
Matthew P. McClure
|
|
|
Matthew
P. McClure, Secretary
|
|
|
Exhibit
No.
|
Description
|
|
|
99.1
|
Press
release dated August 4, 2009 containing Web.com Group, Inc.’s results of
operations for the fiscal quarter ended June 30,
2009.
|
|
|
·
|
Total
revenue was $26.5 million for the second quarter of 2009, above the
high-end of the company’s guidance and compared to $31.0 million for the
second quarter of 2008.
|
|
|
·
|
Operating
income, calculated in accordance with U.S. generally accepted accounting
principles (GAAP), was $290 thousand, representing an operating margin of
1% and compared to $1.1 million for the second quarter of
2008.
|
|
|
·
|
GAAP
net income from continuing operations was $307 thousand for the second
quarter of 2009, compared to $1.8 million in the second quarter of
2008. GAAP net income from continuing operations was $0.01 per
diluted share for the second quarter of 2009, compared to $0.06 per
diluted share for the second quarter of
2008.
|
|
|
·
|
During
the second quarter, Web.com sold its Fusion product line, which was a
non-strategic, website development tool, for approximately $4
million. As a result, $95 thousand of Fusion-related income
from operations and a net gain of $822 thousand from the sale of Fusion
were categorized as discontinued operations during the second quarter of
2009. Including discontinued operations, GAAP net income was
$1.2 million, or $0.05 per diluted share for the second quarter of
2009.
|
|
|
·
|
Non-GAAP
operating income was $4.2 million for the second quarter of 2009,
representing a non-GAAP operating margin of 16% and compared to $4.9
million for the second quarter of
2008.
|
|
|
·
|
Non-GAAP
net income was $5.1 million for the second quarter of 2009, compared to
$5.4 million in the second quarter of 2008. Non-GAAP net income
was $0.19 per diluted share for the second quarter of 2009, compared to
$0.18 per diluted share for the second quarter of
2008.
|
|
|
·
|
Adjusted
EBITDA, which excludes the impact of stock-based compensation and
depreciation and amortization expenses, was $4.9 million for the second
quarter of 2009, compared to $5.5 million for the second quarter of
2008.
|
|
|
·
|
Cash
flows from operations were $2.4 million for the second quarter of 2009,
and $3.8 million excluding the pay down of accrued restructuring expenses
and assumed liabilities from acquisitions. This compared to
$5.0 million and $6.5 million, respectively, for the second quarter of
2008.
|
|
|
·
|
Web.com’s
total net subscribers were over 267,000 at the end of the second quarter,
up approximately 2,000 compared to the end of the prior
quarter.
|
|
|
·
|
Customer
churn was at 3.7% in the second quarter, representing an all-time low and
down from 3.9% in the first quarter of
2009.
|
|
|
·
|
The
company repurchased approximately 200,000 shares during the second quarter
of 2009, bringing the total number of shares repurchased to approximately
3,081,000 since the $20 million share repurchase program was authorized in
the third quarter of 2008.
|
|
|
·
|
Non-GAAP Operating
Income.
The Company excludes from non-GAAP operating
income amortization of intangibles, fair value adjustment to deferred
revenue, restructuring charges and stock-based compensation
charges. Management believes that excluding these non-cash
charges assists investors in evaluating period-over-period changes in the
Company’s operating income without the impact of items that are not a
result of the Company’s day-to-day business and
operations.
|
|
|
·
|
Non-GAAP Net Income and
Non-GAAP Net Income Per Share
. The Company excludes from
non-GAAP net income and non-GAAP net income per share amortization of
intangibles, income tax expense, fair value adjustment to deferred
revenue, restructuring charges and stock-based compensation, and includes
cash income tax expense, because management believes that excluding such
measures helps investors better understand the Company’s operating
activities.
|
|
|
·
|
Adjusted EBITDA
. The
Company excludes from Adjusted EBITDA depreciation expense, amortization
of intangibles, income tax, interest expense, interest income, and
stock-based compensation, because management believes that excluding such
items helps investors better understand the Company's operating
activities.
|
|
|
·
|
Stock-based
compensation.
These expenses consist of expenses
for employee stock options and employee stock purchases under SFAS 123(R).
The Company excludes stock-based compensation expenses from our non-GAAP
measures primarily because they are non-cash expenses. Prior to the
adoption of SFAS 123(R) in fiscal 2006, the Company did not include
expenses related to employee stock options and employee stock purchases
directly in its financial statements, but elected, as permitted by SFAS
123, to disclose such expenses in the footnotes to its financial
statements. As the Company applies SFAS 123(R), it believes that it is
useful to its investors to understand the impact of the application of
SFAS 123(R) to its operational performance, liquidity and its ability to
invest in research and development and fund acquisitions and capital
expenditures. While stock-based compensation expense calculated in
accordance with SFAS 123(R) constitutes an ongoing and recurring expense,
such expense is excluded from non-GAAP results because it is not an
expense that typically requires or will require cash settlement by the
Company and because such expense is not used by management to assess the
core profitability of the Company’s business operations. The Company
further believes these measures are useful to investors in that they allow
for greater transparency to certain line items in our financial
statements. In addition, excluding this item from various non-GAAP
measures facilitates comparisons to the Company’s competitors’ operating
results.
|
|
|
·
|
Amortization of
intangibles.
The Company incurs amortization of acquired
intangibles under SFAS 141. Acquired intangibles primarily consist of
customer relationships, non-compete agreements, trade names, and developed
technology. The Company expects to amortize for accounting purposes the
fair value of the acquired intangibles based on the pattern in which the
economic benefits of the intangible assets will be consumed as revenue is
generated. Although the intangible assets generate revenue for the
Company, the item is excluded because this expense is non-cash in nature
and because the Company believes the non-GAAP financial measures excluding
this item provide meaningful supplemental information regarding the
Company’s operational performance, liquidity and its ability to invest in
research and development and fund acquisitions and capital expenditures.
In addition, excluding this item from various non-GAAP measures
facilitates management’s internal comparisons to the Company’s historical
operating results and comparisons to the Company’s competitors’ operating
results.
|
|
|
·
|
Depreciation
expense.
The Company incurs depreciation expense
associated with its fixed assets. Although the fixed assets
generate revenue for the Company, the item is excluded because this
expense is non-cash in nature and because the Company believes the
non-GAAP financial measures excluding this item provide meaningful
supplemental information regarding the Company’s operational performance,
liquidity and its ability to invest in research and development and fund
acquisitions and capital expenditures. In addition, excluding
this item from certain non-GAAP measures facilitates management’s internal
comparisons to the Company’s historical operating results and comparisons
to the Company’s competitors’ operating
results.
|
|
|
·
|
Interest
expense.
The Company incurs interest expense related to
the indebtedness of the Company. This item is excluded because
the Company believes the non-GAAP measures excluding this item provide
meaningful supplemental information regarding the Company’s operational
performance. In addition, excluding this item from various
non-GAAP measures facilitates management’s internal comparisons to the
Company’s historical operating results and comparisons to the Company’s
competitors’ operating results.
|
|
|
·
|
Interest
income.
The Company earns interest income related to its
cash and cash equivalents. This item is excluded because the
Company believes the non-GAAP measures excluding this item provide
meaningful supplemental information regarding the Company’s operational
performance. In addition, excluding this item from various
non-GAAP measures facilitates management’s internal comparisons to the
Company’s historical operating results and comparisons to the Company’s
competitors’ operating results.
|
|
|
·
|
Restructuring
charges.
The Company has recorded restructuring
charges. The Company excludes the impact of these expenses from
its non-GAAP measures, because such expense is not used by management to
assess the core profitability of the Company’s business
operations.
|
|
|
·
|
Income tax
expense.
Due to the magnitude of the Company’s
historical net operating losses and related deferred tax asset, the
Company excludes income tax expense from its non-GAAP measures primarily
because they are not indicative of the cash tax paid by the Company and
therefore are not reflective of ongoing operating results. Further,
excluding this non-cash item from non-GAAP measures facilitates
management’s internal comparisons to the Company’s historical operating
results. The Company also excludes income tax expense
altogether from certain non-GAAP financial measures because the Company
believes that the non-GAAP measures excluding this item provide meaningful
supplemental information regarding the Company’s operational performance
and facilitates management’s internal comparisons to the Company’s
historical operating results and comparisons to the Company’s competitors’
operating results.
|
|
|
·
|
Fair value adjustment to
deferred revenue.
The Company has recorded a fair value
adjustment to acquired deferred revenue in accordance with SFAS 141. The
Company excludes the impact of this adjustment from its non-GAAP measures,
because doing so results in non-GAAP revenue and non-GAAP net income which
are reflective of ongoing operating results and more comparable to
historical operating results, since the majority of the Company’s revenue
is recurring subscription revenue. Excluding the fair value adjustment to
deferred revenue therefore facilitates management’s internal comparisons
to the Company’s historical operating
results.
|
|
Web.com
Group, Inc.
|
||||||||||||||||
|
Consolidated
Statements of Operations
|
||||||||||||||||
|
(in
thousands except per share data)
|
||||||||||||||||
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Subscription
|
$ | 25,438 | $ | 30,269 | $ | 51,456 | $ | 60,000 | ||||||||
|
Professional
services
|
1,037 | 589 | 1,590 | 1,271 | ||||||||||||
|
Other
|
- | 100 | 1,000 | 100 | ||||||||||||
|
Total
revenue
|
26,475 | 30,958 | 54,046 | 61,371 | ||||||||||||
|
Cost
of revenue (excluding depreciation and amortization
|
||||||||||||||||
|
shown
separately below):
|
||||||||||||||||
|
Subscription
(a)
|
9,413 | 11,038 | 18,721 | 21,941 | ||||||||||||
|
Professional
services
|
575 | 292 | 876 | 667 | ||||||||||||
|
Total
cost of revenue
|
9,988 | 11,330 | 19,597 | 22,608 | ||||||||||||
|
Gross
profit
|
16,487 | 19,628 | 34,449 | 38,763 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Sales
and marketing (a)
|
5,881 | 7,547 | 11,645 | 14,953 | ||||||||||||
|
Research
and development (a)
|
2,086 | 2,384 | 4,128 | 4,666 | ||||||||||||
|
General
and administrative (a)
|
4,789 | 5,398 | 10,851 | 10,499 | ||||||||||||
|
Depreciation
and amortization
|
3,441 | 3,232 | 6,790 | 6,582 | ||||||||||||
|
Total
operating expenses
|
16,197 | 18,561 | 33,414 | 36,700 | ||||||||||||
|
Income
from operations
|
290 | 1,067 | 1,035 | 2,063 | ||||||||||||
|
Other
income:
|
||||||||||||||||
|
Interest,
net
|
43 | 192 | 105 | 448 | ||||||||||||
|
Income
before income taxes
|
333 | 1,259 | 1,140 | 2,511 | ||||||||||||
|
Income
tax (expense) benefit
|
(26 | ) | 578 | (43 | ) | (66 | ) | |||||||||
|
Net
income from continuing operations
|
307 | 1,837 | 1,097 | 2,445 | ||||||||||||
|
Discontinued
operations:
|
||||||||||||||||
|
Income
from discontinued operations
|
95 | 360 | 228 | 302 | ||||||||||||
|
Gain
on sale of discontinued operations
|
822 | - | 822 | - | ||||||||||||
|
Income
from discontinued operations, net
|
917 | 360 | 1,050 | 302 | ||||||||||||
|
Net
income
|
$ | 1,224 | $ | 2,197 | $ | 2,147 | $ | 2,747 | ||||||||
|
Basic
earnings per share:
|
||||||||||||||||
|
Income
from continuing operations attributable per common share
|
$ | 0.01 | $ | 0.07 | $ | 0.04 | $ | 0.09 | ||||||||
|
Income
from discontinuing operations attributable per common
share
|
$ | 0.04 | $ | 0.01 | $ | 0.04 | $ | 0.01 | ||||||||
|
Net
Income per common share
|
$ | 0.05 | $ | 0.08 | $ | 0.08 | $ | 0.10 | ||||||||
|
Diluted
earnings per share:
|
||||||||||||||||
|
Income
from continuing operations attributable per common share
|
$ | 0.01 | $ | 0.06 | $ | 0.04 | $ | 0.08 | ||||||||
|
Income
from discontinuing operations attributable per common
share
|
$ | 0.04 | $ | 0.01 | $ | 0.04 | $ | 0.01 | ||||||||
|
Net
Income per common share
|
$ | 0.05 | $ | 0.07 | $ | 0.08 | $ | 0.09 | ||||||||
|
Weighted-average
number of shares used in per share amounts:
|
||||||||||||||||
|
Basic
|
25,130 | 27,806 | 25,365 | 27,678 | ||||||||||||
|
Diluted
|
26,903 | 30,546 | 26,603 | 30,562 | ||||||||||||
|
(a)
Stock based compensation included above:
|
||||||||||||||||
|
Subscription
(cost of revenue)
|
$ | 105 | $ | 83 | $ | 209 | $ | 163 | ||||||||
|
Sales
and marketing
|
210 | 229 | 435 | 440 | ||||||||||||
|
Research
and development
|
124 | 114 | 249 | 216 | ||||||||||||
|
General
and administration
|
757 | 812 | 1,626 | 1,350 | ||||||||||||
|
Total
|
$ | 1,196 | $ | 1,238 | $ | 2,519 | $ | 2,169 | ||||||||
|
Web.com
Group, Inc.
|
||||||||
|
Consolidated
Balance Sheets
|
||||||||
|
(in
thousands except per share data)
|
||||||||
|
June
30, 2009
|
December
31, 2008
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
Assets
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 35,554 | $ | 34,127 | ||||
|
Accounts
receivable, net of allowance $493 and $645, respectively
|
4,690 | 5,019 | ||||||
|
Inventories,
net of reserves of $0 and $78, respectively
|
- | 39 | ||||||
|
Prepaid
expenses
|
1,635 | 1,430 | ||||||
|
Prepaid
marketing fees
|
621 | 665 | ||||||
|
Deferred
taxes
|
1,094 | 1,093 | ||||||
|
Other
current assets
|
131 | 134 | ||||||
|
Total
current assets
|
43,725 | 42,507 | ||||||
|
Restricted
investments
|
316 | 316 | ||||||
|
Property
and equipment, net
|
8,783 | 8,204 | ||||||
|
Goodwill
|
11,881 | 9,000 | ||||||
|
Intangible
assets, net
|
59,001 | 62,085 | ||||||
|
Other
assets
|
293 | 383 | ||||||
|
Total
assets
|
$ | 123,999 | $ | 122,495 | ||||
|
Liabilities
and stockholders' equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 1,091 | $ | 1,406 | ||||
|
Accrued
expenses
|
6,758 | 6,230 | ||||||
|
Accrued
restructuring costs and other reserves
|
2,315 | 2,619 | ||||||
|
Deferred
revenue
|
7,364 | 7,831 | ||||||
|
Accrued
marketing fees
|
195 | 263 | ||||||
|
Notes
payable
|
- | 59 | ||||||
|
Capital
lease obligations
|
391 | - | ||||||
|
Other
current liabilities
|
136 | 128 | ||||||
|
Total
current liabilities
|
18,250 | 18,536 | ||||||
|
Accrued
rent expense
|
601 | 535 | ||||||
|
Deferred
revenue
|
160 | 180 | ||||||
|
Accrued
restructuring costs and other reserves
|
599 | 1,214 | ||||||
|
Capital
lease obligations
|
512 | - | ||||||
|
Deferred
tax liabilites
|
2,748 | 2,712 | ||||||
|
Other
liabilities
|
498 | 25 | ||||||
|
Total
liabilities
|
23,368 | 23,202 | ||||||
|
Stockholders'
equity
|
||||||||
|
Common
stock, $0.001 par value; 150,000,000 shares
authorized; 28,093,759 and 28,093,759 shares issued and
26,289,277 and 26,633,436 shares outstanding at June 30, 2009 and December
31, 2008, respectively.
|
26 | 27 | ||||||
|
Additional
paid-in capital
|
257,846 | 256,763 | ||||||
|
Treasury
Stock, at cost, 1,804,482 and 1,460,323 shares at June 30, 2009 and
December 31, 2008, respectively.
|
(5,374 | ) | (3,483 | ) | ||||
|
Accumulated
deficit
|
(151,867 | ) | (154,014 | ) | ||||
|
Total
stockholders' equity
|
100,631 | 99,293 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 123,999 | $ | 122,495 | ||||
|
Web.com
Group, Inc.
|
||||||||||||||||
|
Reconciliation
of GAAP to Non-GAAP Results
|
||||||||||||||||
|
(in
thousands except per share data)
|
||||||||||||||||
|
(unaudited)
|
||||||||||||||||
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Reconciliation
of GAAP net income to non-GAAP net income
|
||||||||||||||||
|
GAAP
net income
|
$ | 1,224 | $ | 2,197 | $ | 2,147 | $ | 2,747 | ||||||||
|
Amortization
of intangibles
|
2,687 | 2,495 | 5,301 | 5,113 | ||||||||||||
|
Income
tax expense
|
26 | (578 | ) | 43 | 66 | |||||||||||
|
Cash
income tax expense
|
(91 | ) | (26 | ) | (183 | ) | (85 | ) | ||||||||
|
Fair
value adjustment to deferred revenue
|
17 | 85 | 50 | 224 | ||||||||||||
|
Stock
based compensation
|
1,196 | 1,238 | 2,519 | 2,169 | ||||||||||||
|
Non-GAAP
net income
|
$ | 5,059 | $ | 5,411 | $ | 9,877 | $ | 10,234 | ||||||||
|
Reconciliation
of GAAP basic net income per share to non-GAAP basic net income per
share
|
||||||||||||||||
|
Basic
GAAP net income per share
|
$ | 0.05 | $ | 0.08 | $ | 0.08 | $ | 0.10 | ||||||||
|
Amortization
of intangibles per share
|
0.11 | 0.09 | 0.22 | 0.18 | ||||||||||||
|
Income
tax expense per share
|
- | (0.02 | ) | - | - | |||||||||||
|
Cash
income tax expense per share
|
- | - | (0.01 | ) | - | |||||||||||
|
Fair
value adjustment to deferred revenue per share
|
- | 0.00 | - | 0.01 | ||||||||||||
|
Stock
based compensation per share
|
0.04 | 0.04 | 0.10 | 0.08 | ||||||||||||
|
Basic
Non-GAAP net income per share
|
$ | 0.20 | $ | 0.19 | $ | 0.39 | $ | 0.37 | ||||||||
|
Reconciliation
of GAAP diluted net income per share to non-GAAP net income per
share
|
||||||||||||||||
|
Fully
diluted shares:
|
||||||||||||||||
|
Common
stock
|
25,130 | 27,806 | 25,365 | 27,678 | ||||||||||||
|
Diluted
stock options
|
1,059 | 2,412 | 1,005 | 2,550 | ||||||||||||
|
Diluted
restricted stock
|
391 | - | 185 | - | ||||||||||||
|
Warrants
|
321 | 189 | 45 | 195 | ||||||||||||
|
Escrow
shares
|
2 | 139 | 3 | 139 | ||||||||||||
|
Total
|
26,903 | 30,546 | 26,603 | 30,562 | ||||||||||||
|
Diluted
GAAP net income per share
|
$ | 0.05 | $ | 0.07 | $ | 0.08 | $ | 0.09 | ||||||||
|
Amortization
of intangibles per share
|
0.10 | 0.08 | 0.20 | 0.16 | ||||||||||||
|
Income
tax expense per share
|
- | (0.02 | ) | - | - | |||||||||||
|
Cash
income tax expense per share
|
- | - | (0.01 | ) | - | |||||||||||
|
Fair
value adjustment to deferred revenue per share
|
- | - | - | 0.01 | ||||||||||||
|
Stock
based compensation per share
|
0.04 | 0.05 | 0.10 | 0.07 | ||||||||||||
|
Diluted
Non-GAAP net income per share
|
$ | 0.19 | $ | 0.18 | $ | 0.37 | $ | 0.33 | ||||||||
|
Reconciliation
of GAAP operating income to non-GAAP operating income
|
||||||||||||||||
|
GAAP
operating income
|
$ | 290 | $ | 1,067 | $ | 1,035 | $ | 2,063 | ||||||||
|
Amortization
of intangibles
|
2,687 | 2,495 | 5,301 | 5,113 | ||||||||||||
|
Fair
value adjustment to deferred revenue
|
17 | 85 | 50 | 224 | ||||||||||||
|
Stock
based compensation
|
1,196 | 1,238 | 2,519 | 2,169 | ||||||||||||
|
Non-GAAP
operating income
|
$ | 4,190 | $ | 4,885 | $ | 8,905 | $ | 9,569 | ||||||||
|
Reconciliation
of GAAP operating margin to non-GAAP operating margin
|
||||||||||||||||
|
GAAP
operating margin
|
1 | % | 3 | % | 2 | % | 3 | % | ||||||||
|
Amortization
of intangibles
|
10 | % | 8 | % | 10 | % | 8 | % | ||||||||
|
Fair
value adjustment to deferred revenue
|
0 | % | 1 | % | 0 | % | 1 | % | ||||||||
|
Stock
based compensation
|
5 | % | 4 | % | 4 | % | 4 | % | ||||||||
|
Non-GAAP
operating margin
|
16 | % | 16 | % | 16 | % | 16 | % | ||||||||
|
Reconciliation
of GAAP operating income to adjusted EBITDA
|
||||||||||||||||
|
GAAP
operating income
|
$ | 290 | $ | 1,067 | $ | 1,035 | $ | 2,063 | ||||||||
|
Depreciation
and amortization
|
3,441 | 3,232 | 6,790 | 6,582 | ||||||||||||
|
Stock
based compensation
|
1,196 | 1,238 | 2,519 | 2,169 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 4,927 | $ | 5,537 | $ | 10,344 | $ | 10,814 | ||||||||
|
Web.com
Group, Inc.
|
||||||||
|
Consolidated
Statement of Cash Flows
|
||||||||
|
(in
thousands)
|
||||||||
|
Six
Months Ended June 30,
|
||||||||
|
2009
|
2008
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
Cash
flows from operating activities
|
||||||||
|
Net
income
|
$ | 2,147 | $ | 2,747 | ||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
|
Gain
on sale of discontinued operations
|
(822 | ) | - | |||||
|
Depreciation
and amortization
|
6,790 | 6,582 | ||||||
|
Gain
on disposal of assets
|
- | (1 | ) | |||||
|
Stock-based
compensation expense
|
2,519 | 2,169 | ||||||
|
Deferred
income tax
|
36 | (95 | ) | |||||
|
Changes
in operating assets and liabilities:
|
||||||||
|
Accounts
receivable
|
565 | (1,007 | ) | |||||
|
Inventories
|
39 | (49 | ) | |||||
|
Prepaid
expenses and other assets
|
(298 | ) | 3,350 | |||||
|
Accounts
payable, accrued expenses and other liabilities
|
(1,976 | ) | (9,757 | ) | ||||
|
Deferred
revenue
|
(900 | ) | 51 | |||||
|
Net
cash provided by operating activities
|
8,100 | 3,990 | ||||||
|
Cash
flows from investing activities
|
||||||||
|
Business
acquisition, net of cash received
|
(3,490 | ) | (4,578 | ) | ||||
|
Proceeds
from sale of investment
|
- | 7,000 | ||||||
|
Gain
from sale of discontinued operations
|
822 | - | ||||||
|
Purchase
of investment
|
- | (2,494 | ) | |||||
|
Change
in restricted investments
|
- | 1,228 | ||||||
|
Purchase
of property and equipment
|
(510 | ) | (3,247 | ) | ||||
|
Investment
in intangible assets
|
(3 | ) | (2 | ) | ||||
|
Net
cash (used in) investing activities
|
(3,181 | ) | (2,093 | ) | ||||
|
Cash
flows from financing activities
|
||||||||
|
Stock
issuance costs
|
(8 | ) | (10 | ) | ||||
|
Common
stock repurchased
|
(3,534 | ) | - | |||||
|
Payment
of debt obligations
|
(165 | ) | (1,130 | ) | ||||
|
Proceeds
from exercise of stock options
|
215 | 780 | ||||||
|
Net
cash (used in) financing activities
|
(3,492 | ) | (360 | ) | ||||
|
Net
increase in cash and cash equivalents
|
1,427 | 1,537 | ||||||
|
Cash
and cash equivalents, beginning of period
|
34,127 | 29,746 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 35,554 | $ | 31,283 | ||||
|
Supplemental
cash flow information:
|
||||||||
|
Interest
paid
|
$ | 13 | $ | 22 | ||||
|
Income
tax paid
|
$ | 226 | $ | 123 | ||||