CCC Intelligent Solutions Inc. (CCC) (NYSE: CCCS), a leading SaaS platform for the Property & Casualty insurance economy, today announced its financial results for the three months ended June 30, 2021.
“We saw continued adoption of digital and AI solutions that accelerated top-line performance in the second quarter. Our continuous focus on innovation and customer success has CCC in a terrific position to support the digitization of the P&C insurance economy by delivering the differentiated solutions our customers want to improve their business,” said Githesh Ramamurthy, Chairman & CEO of CCC.
Ramamurthy continued, “We are excited by the successful completion of our business combination with Dragoneer Growth Opportunity Corp. and our return to the public markets. We have increased flexibility to expand how we invest in the business that will benefit our customers and provide additional growth opportunities for CCC to meet or exceed our long-term growth objectives.”
Second Quarter 2021 Financial Highlights
Revenue
- Total revenue was $166.8 million for the second quarter of 2021, compared to $150.7 million for the second quarter of 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 16% in the second quarter of 2021.
Profitability
- GAAP gross profit was $121.3 million, representing a gross margin of 73%, for the second quarter of 2021, compared with GAAP gross profit of $100.7 million, representing a gross margin of 67%, for the second quarter of 2020. Adjusted gross profit was $128.0 million, representing an adjusted gross margin of 77%, for the second quarter of 2021, compared with adjusted gross profit of $107.3 million, representing an adjusted gross margin of 74%, for the second quarter of 2020.
- GAAP operating income was $22.0 million for the second quarter of 2021, compared with GAAP operating income of $15.6 million for the second quarter of 2020. Adjusted operating income was $54.8 million for the second quarter of 2021, compared with adjusted operating income of $42.5 million for the second quarter of 2020.
- GAAP net income was $3.8 million for the second quarter of 2021, compared with GAAP net loss of $2.0 million for the second quarter of 2020. Adjusted net income was $26.3 million for the second quarter of 2021, compared with adjusted net income of $17.5 million for the second quarter of 2020.
- Adjusted EBITDA was $60.1 million for the second quarter of 2021, compared with adjusted EBITDA of $46.9 million for the second quarter of 2020. Adjusted EBITDA grew 28% in the second quarter of 2021 as compared to the second quarter of 2020.
Liquidity
- CCC had $58.5 million in cash and cash equivalents and $1.3 billion of total debt at June 30, 2021. The Company generated $21.6 million in cash from operating activities and had free cash flow of $13.1 million during the second quarter of 2021, compared with $14.7 million generated in cash from operating activities and had $7.6 million in free cash flow in the second quarter of 2020.
The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross margin,” and “free cash flow.” Refer to “Non-GAAP Financial Measures” for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.
2nd Quarter and Recent Business Highlights
- Successfully completed our business combination with Dragoneer Growth Opportunities Corp and began trading under the ticker “CCCS” on the New York Stock Exchange on August 2, 2021. CCC received net proceeds from this transaction of more than $600 million.
- Announced CCC ONE® Estimating-IQ, which will enhance the AI capabilities on the CCC ONE® platform for repair facilities, will be released in the third quarter. Incorporation of advanced AI will accelerate estimating for the tens of thousands of collision repairers using the CCC ONE platform.
- Announced a partnership with Buckle, an inclusive tech-enabled financial services company, to digitize auto claims for its community of rideshare and delivery drivers. This win reinforces the opportunity we see to expand our solutions to emerging parts of the auto economy ecosystem.
- Announced the new corporate name CCC Intelligent Solutions Inc. The new name reflects the company’s focus on applying AI, IoT, and advanced analytics to power mission-critical workflows, commerce, and connections across the multi-trillion-dollar insurance economy. The CCC Cloud platform connects insurers, collision repairers, automakers, lenders, suppliers, and more to support the industry’s digital transformation.
Business Outlook
Based on information as of today, August 12, 2021, the Company is issuing the following financial guidance:
|
Third Quarter Fiscal 2021 |
Full Year Fiscal 2021 |
||
Revenue |
$172.5 million to $174.5 million |
$677 million to $682 million |
||
|
|
|
||
Adjusted EBITDA |
$61 million to $63 million |
$244 million to $249 million |
Year-over-year revenue growth for the third quarter of 2021 is forecasted to be 9% - 10%, or 15% - 16% when adjusted for the impact of the divestiture of a portion of our casualty solution (specifically, First Party Clinical Services) in December 2020. Year-over-year revenue growth for the full year 2021 is forecasted to be 7% - 8%, or 13% - 14% on an adjusted basis. First Party Clinical Services revenue was $7.8 million and $34.7 million for our fiscal third quarter and year end 2020, respectively.
Conference Call Information
CCC will host a conference call today, August 12, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. To access this call, dial 844-200-6205 (domestic) or 44-208-0682-558 (international). The conference ID number is 941788. A live webcast of this conference call will be available on the “Investor Relations” page (https://ir.cccis.com/home/default.aspx.) and a replay will be archived on the website as well.
About CCC Intelligent Solutions
CCC Intelligent Solutions Inc. (CCC) (NYSE: CCCS) is a leading SaaS platform for the multi-trillion-dollar P&C insurance economy powering operations for insurers, repairers, automakers, part suppliers, lenders, and more. CCC cloud technology connects more than 30,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, IoT, customer experience, network and workflow management, CCC delivers innovations that keep people’s lives moving forward when it matters most. Learn more about CCC at www.cccis.com.
Forward Looking Statements
This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding future events, goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, the general economic, political, business and competitive conditions; the ability to recognize the anticipated benefits of the business combination (the “business combination”) of CCC’s parent corporation and Dragoneer Growth Opportunities Corp. ; the impact of COVID-19 on CCC’s business and/or the ability of the parties to complete the business combination; failure to realize the anticipated benefits of the business combination, ; costs related to the business combination; the ability of the Company to grow and manage growth profitably and retain its key employees; the risk that the expansion of CCC Payments and launch of CCC Estimate are not as successful as anticipated or do not occur on the expected timing; the inability to maintain CCC’s listing of securities on the NYSE; changes in applicable laws or regulations; and other risks and uncertainties, including those included under the header “Risk Factors” in the definitive proxy statement/prospectus filed by Dragoneer Growth Opportunities Corp. with the Securities and Exchange Commission (“SEC”) on July 6, 2021, which can be obtained, without charge, at the SEC’s website (www.sec.gov). The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
Non-GAAP Financial Measures
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including, but not limited to, “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross margin,” and “free cash flow” in each case presented on a non-GAAP basis, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s calculation of these non-GAAP measures may not be comparable to similarly-titled measures used by other companies.
The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures, Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.
This press release also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share data) |
||||||||
June 30, |
|
December 31, |
||||||
2021 |
|
2020 |
||||||
(Unaudited) |
|
(Audited) |
||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ |
58,506 |
|
$ |
162,118 |
|
||
Accounts receivable—Net of allowances of $4,218 and $4,224 for June 30, 2021 and December 31, 2020, respectively |
|
81,817 |
|
|
74,107 |
|
||
Income taxes receivable |
|
1,244 |
|
|
2,037 |
|
||
Deferred contract costs |
|
12,681 |
|
|
11,917 |
|
||
Other current assets |
|
33,524 |
|
|
31,586 |
|
||
Total current assets |
|
187,772 |
|
|
281,765 |
|
||
SOFTWARE, EQUIPMENT, AND PROPERTY—Net |
|
108,640 |
|
|
101,438 |
|
||
OPERATING LEASE ASSETS |
|
41,859 |
|
|
- |
|
||
INTANGIBLE ASSETS—Net |
|
1,262,608 |
|
|
1,311,917 |
|
||
GOODWILL |
|
1,466,884 |
|
|
1,466,884 |
|
||
DEFERRED FINANCING FEES, REVOLVER—Net |
|
598 |
|
|
746 |
|
||
DEFERRED CONTRACT COSTS |
|
15,986 |
|
|
14,389 |
|
||
EQUITY METHOD INVESTMENT |
|
10,228 |
|
|
- |
|
||
OTHER ASSETS |
|
16,684 |
|
|
18,416 |
|
||
TOTAL |
$ |
3,111,259 |
|
$ |
3,195,555 |
|
||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ |
16,826 |
|
$ |
13,164 |
|
||
Accrued expenses |
|
58,393 |
|
|
52,987 |
|
||
Income taxes payable |
|
4,293 |
|
|
5,129 |
|
||
Current portion of long-term debt |
|
13,846 |
|
|
25,381 |
|
||
Current portion of long-term licensing agreement—Net |
|
2,620 |
|
|
2,540 |
|
||
Operating lease liabilities |
|
9,546 |
|
|
- |
|
||
Deferred revenues |
|
28,824 |
|
|
26,514 |
|
||
Interest rate swap derivatives |
|
11,993 |
|
|
- |
|
||
Total current liabilities |
|
146,341 |
|
|
125,715 |
|
||
FIRST LIEN TERM LOAN—Net |
|
1,299,774 |
|
|
1,292,597 |
|
||
DEFERRED INCOME TAXES—Net |
|
311,280 |
|
|
322,348 |
|
||
LONG-TERM LICENSING AGREEMENT—Net |
|
35,001 |
|
|
36,331 |
|
||
OPERATING LEASE LIABILITIES |
|
41,338 |
|
|
- |
|
||
OTHER LIABILITIES |
|
11,711 |
|
|
32,770 |
|
||
Total liabilities |
|
1,845,445 |
|
|
1,809,761 |
|
||
COMMITMENTS AND CONTINGENCIES (Notes 20 and 21) |
||||||||
MEZZANINE EQUITY: |
||||||||
Redeemable non-controlling interests |
|
14,179 |
|
|
14,179 |
|
||
STOCKHOLDERS’ EQUITY: |
||||||||
Preferred stock, $0.001 par; 1,500,000 shares authorized; no shares issued and outstanding |
|
- |
|
|
- |
|
||
Common stock—Series A, $0.001 par; 3,000,000 shares authorized; 1,450,978 shares issued and outstanding at June 30, 2021 and December 31, 2020 |
1 |
1 |
||||||
Common stock—Series B, $0.001 par; 500,000 shares authorized; 33,178 and 29,785 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively |
- |
- |
||||||
Additional paid-in capital |
|
1,517,123 |
|
|
1,501,255 |
|
||
Accumulated deficit |
|
(265,189 |
) |
|
(129,370 |
) |
||
Accumulated other comprehensive loss |
|
(300 |
) |
|
(271 |
) |
||
Total stockholders’ equity |
|
1,251,635 |
|
|
1,371,615 |
|
||
TOTAL |
$ |
3,111,259 |
|
$ |
3,195,555 |
|
||
See notes to condensed consolidated financial statements. |
||||||||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||||
June 30, |
|
June 30, |
||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
REVENUES |
$ |
166,789 |
|
$ |
150,716 |
|
$ |
324,578 |
|
$ |
309,924 |
|
||||
COST OF REVENUES |
||||||||||||||||
Cost of revenues, exclusive of amortization of acquired technologies |
|
38,932 |
|
|
43,408 |
|
|
76,945 |
|
|
91,795 |
|
||||
Amortization of acquired technologies |
|
6,580 |
|
|
6,574 |
|
|
13,160 |
|
|
13,149 |
|
||||
Total cost of revenues |
|
45,512 |
|
|
49,982 |
|
|
90,105 |
|
|
104,944 |
|
||||
GROSS PROFIT |
|
121,277 |
|
|
100,734 |
|
|
234,473 |
|
|
204,980 |
|
||||
OPERATING EXPENSES: |
||||||||||||||||
Research and development |
|
31,253 |
|
|
27,772 |
|
|
61,877 |
|
|
55,315 |
|
||||
Selling and marketing |
|
21,551 |
|
|
17,702 |
|
|
40,968 |
|
|
39,181 |
|
||||
General and administrative |
|
28,394 |
|
|
21,566 |
|
|
66,233 |
|
|
44,566 |
|
||||
Amortization of intangible assets |
|
18,078 |
|
|
18,078 |
|
|
36,155 |
|
|
36,155 |
|
||||
Total operating expenses |
|
99,276 |
|
|
85,118 |
|
|
205,233 |
|
|
175,217 |
|
||||
OPERATING INCOME |
|
22,001 |
|
|
15,616 |
|
|
29,240 |
|
|
29,763 |
|
||||
INTEREST EXPENSE |
|
(18,903 |
) |
|
(18,643 |
) |
|
(37,669 |
) |
|
(37,800 |
) |
||||
GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS |
|
3,089 |
|
|
620 |
|
|
6,366 |
|
|
(20,527 |
) |
||||
LOSS ON EARLY EXTINGUISHMENT OF DEBT |
|
- |
|
|
- |
|
|
- |
|
|
(8,615 |
) |
||||
OTHER INCOME—Net |
|
4 |
|
|
115 |
|
|
91 |
|
|
255 |
|
||||
PRETAX INCOME (LOSS) |
|
6,191 |
|
|
(2,292 |
) |
|
(1,972 |
) |
|
(36,924 |
) |
||||
INCOME TAX (PROVISION) BENEFIT |
|
(2,375 |
) |
|
331 |
|
|
704 |
|
|
9,711 |
|
||||
NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST |
|
3,816 |
|
|
(1,961 |
) |
|
(1,268 |
) |
|
(27,213 |
) |
||||
Less: net income (loss) attributable to non-controlling interest |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO CYPRESS HOLDINGS, INC. |
$ |
3,816 |
|
$ |
(1,961 |
) |
$ |
(1,268 |
) |
$ |
(27,213 |
) |
||||
Net income (loss) per share attributable to Class A and Class B common stockholders: |
||||||||||||||||
Basic |
$ |
2.57 |
|
$ |
(1.32 |
) |
$ |
(0.85 |
) |
$ |
(18.39 |
) |
||||
Diluted |
$ |
2.48 |
|
$ |
(1.32 |
) |
$ |
(0.85 |
) |
$ |
(18.39 |
) |
||||
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders: |
||||||||||||||||
Basic |
|
1,484,156 |
|
|
1,480,262 |
|
|
1,483,634 |
|
|
1,479,918 |
|
||||
Diluted |
|
1,537,767 |
|
|
1,480,262 |
|
|
1,483,634 |
|
|
1,479,918 |
|
||||
COMPREHENSIVE INCOME (LOSS): |
||||||||||||||||
Net income (loss) including non-controlling interest |
|
3,816 |
|
|
(1,961 |
) |
|
(1,268 |
) |
|
(27,213 |
) |
||||
Other comprehensive loss—Foreign currency translation adjustment |
|
(36 |
) |
|
(1 |
) |
|
(29 |
) |
|
(18 |
) |
||||
COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST |
|
3,780 |
|
|
(1,962 |
) |
|
(1,297 |
) |
|
(27,231 |
) |
||||
Less: comprehensive income (loss) attributable to non-controlling interest |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CYPRESS HOLDINGS, INC. |
$ |
3,780 |
|
$ |
(1,962 |
) |
$ |
(1,297 |
) |
$ |
(27,231 |
) |
||||
See notes to condensed consolidated financial statements. |
||||||||||||||||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
For the Six Months Ended |
||||||||
June 30, |
||||||||
2021 |
|
2020 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net loss |
$ |
(1,268 |
) |
$ |
(27,213 |
) |
||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization of software, equipment, and property |
|
10,472 |
|
|
8,543 |
|
||
Amortization of intangible assets |
|
49,315 |
|
|
49,304 |
|
||
Deferred income taxes |
|
(11,068 |
) |
|
(16,685 |
) |
||
Stock-based compensation |
|
15,537 |
|
|
5,601 |
|
||
Amortization of deferred financing fees |
|
2,321 |
|
|
2,146 |
|
||
Amortization of discount on debt |
|
392 |
|
|
327 |
|
||
Change in fair value of interest rate swaps |
|
(6,366 |
) |
|
20,527 |
|
||
Loss on early extinguishment of debt |
|
- |
|
|
8,615 |
|
||
Non-cash lease expense |
|
3,667 |
|
|
- |
|
||
Other |
|
34 |
|
|
13 |
|
||
Changes in: |
||||||||
Accounts receivable—Net |
|
(7,749 |
) |
|
(9,834 |
) |
||
Deferred contract costs |
|
(765 |
) |
|
128 |
|
||
Other current assets |
|
(1,937 |
) |
|
2,757 |
|
||
Deferred contract costs—Non-current |
|
(1,597 |
) |
|
(941 |
) |
||
Other assets |
|
1,699 |
|
|
(10,254 |
) |
||
Operating lease assets |
|
3,410 |
|
|
- |
|
||
Income taxes |
|
(43 |
) |
|
7,256 |
|
||
Accounts payable |
|
3,613 |
|
|
(115 |
) |
||
Accrued expenses |
|
4,031 |
|
|
(17,324 |
) |
||
Operating lease liabilities |
|
(3,900 |
) |
|
- |
|
||
Deferred revenues |
|
2,303 |
|
|
1,127 |
|
||
Other liabilities |
|
(2,281 |
) |
|
(202 |
) |
||
Net cash provided by operating activities |
|
59,820 |
|
|
23,776 |
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of software, equipment, and property |
|
(13,158 |
) |
|
(12,512 |
) |
||
Purchase of equity method investment |
|
(10,189 |
) |
|
- |
|
||
Purchase of intangible asset |
|
(49 |
) |
|
(560 |
) |
||
Net cash used in investing activities |
|
(23,396 |
) |
|
(13,072 |
) |
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from issuance of non-controlling interest in subsidiary |
|
- |
|
|
14,179 |
|
||
Principal payments on long-term debt |
|
(6,923 |
) |
|
(381,923 |
) |
||
Proceeds from issuance of long-term debt, net of fees paid to lender |
|
- |
|
|
369,792 |
|
||
Proceeds from borrowings on revolving lines of credit |
|
- |
|
|
65,000 |
|
||
Repayment of borrowings on revolving lines of credit |
|
- |
|
|
(65,000 |
) |
||
Proceeds from issuance of Series B common stock |
|
1,007 |
|
|
- |
|
||
Payment of fees associated with early extinguishment of long-term debt |
|
- |
|
|
(29 |
) |
||
Proceeds from exercise of stock options |
|
503 |
|
|
242 |
|
||
Repurchases of Series B common stock |
|
- |
|
|
(101 |
) |
||
Dividend to stockholders |
|
(134,549 |
) |
|
- |
|
||
Net cash used in financing activities |
|
(139,962 |
) |
|
2,160 |
|
||
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
(74 |
) |
|
(46 |
) |
||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
(103,612 |
) |
|
12,818 |
|
||
CASH AND CASH EQUIVALENTS: |
||||||||
Beginning of period |
|
162,118 |
|
|
93,201 |
|
||
End of period |
$ |
58,506 |
|
$ |
106,019 |
|
||
NONCASH INVESTING AND FINANCING ACTIVITIES: |
||||||||
Unpaid liability related to software, equipment, and property |
$ |
5,752 |
|
$ |
- |
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
||||||||
Cash paid for interest |
$ |
35,020 |
|
$ |
35,470 |
|
||
Cash received (paid) for income taxes—Net |
$ |
(10,409 |
) |
$ |
283 |
|
||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT |
||||||||||||||||
(In thousands, except profit margin percentage data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
|
|
||||||||||||||
(amounts in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Gross Profit |
$ |
121,277 |
|
$ |
100,734 |
|
$ |
234,473 |
|
$ |
204,980 |
|
||||
First Party Clinical Services—Gross Profit |
|
- |
|
|
(141 |
) |
|
- |
|
|
(2,390 |
) |
||||
Amortization of acquired technologies |
|
6,580 |
|
|
6,574 |
|
|
13,160 |
|
|
13,149 |
|
||||
Stock-based compensation |
|
176 |
|
|
160 |
|
|
394 |
|
|
239 |
|
||||
Adjusted Gross Profit |
$ |
128,033 |
|
$ |
107,327 |
|
$ |
248,027 |
|
$ |
215,978 |
|
||||
Gross Profit Margin Percentage |
|
73 |
% |
|
67 |
% |
|
72 |
% |
|
66 |
% |
||||
Adjusted Gross Profit Margin Percentage |
|
77 |
% |
|
74 |
% |
|
76 |
% |
|
70 |
% |
||||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||
RECONCILIATION OF GAAP OPERATING INCOME TO ADJUSTED OPERATING INCOME |
||||||||||||||
(In thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
|
||||||||||||
(dollar amounts in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||
GAAP Operating Income |
$ |
22,001 |
$ |
15,616 |
|
$ |
29,240 |
$ |
29,763 |
|
||||
Stock-based compensation expense |
|
2,883 |
|
2,371 |
|
|
15,537 |
|
5,601 |
|
||||
Lease abandonment |
|
925 |
|
- |
|
|
1,850 |
|
- |
|
||||
Lease overlap costs |
|
909 |
|
- |
|
|
1,817 |
|
- |
|
||||
Net costs related to divestiture |
|
1,494 |
|
- |
|
|
2,266 |
|
- |
|
||||
Business combination transaction costs |
|
1,953 |
|
- |
|
|
4,955 |
|
- |
|
||||
Amortization of intangible assets |
|
18,078 |
|
18,078 |
|
|
36,155 |
|
36,155 |
|
||||
Amortization of acquired technologies—Cost of revenue |
|
6,580 |
|
6,574 |
|
|
13,160 |
|
13,149 |
|
||||
First Party Clinical Services—Revenue |
|
- |
|
(6,603 |
) |
|
- |
|
(18,255 |
) |
||||
First Party Clinical Services—Cost of revenue |
|
- |
|
6,462 |
|
|
- |
|
15,865 |
|
||||
Adjusted Operating Income |
$ |
54,823 |
$ |
42,498 |
|
$ |
104,980 |
$ |
82,278 |
|
||||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
|
|
||||||||||||||
(dollar amounts in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net income (loss) |
$ |
3,816 |
|
$ |
(1,961 |
) |
$ |
(1,268 |
) |
$ |
(27,213 |
) |
||||
Interest expense |
|
18,903 |
|
|
18,643 |
|
|
37,669 |
|
|
37,800 |
|
||||
Income tax provision (benefit) |
|
2,375 |
|
|
(331 |
) |
|
(704 |
) |
|
(9,711 |
) |
||||
Amortization of intangible assets |
|
18,078 |
|
|
18,078 |
|
|
36,155 |
|
|
36,155 |
|
||||
Amortization of acquired technologies—Cost of revenue |
|
6,580 |
|
|
6,574 |
|
|
13,160 |
|
|
13,149 |
|
||||
Depreciation and amortization related to software, equipment and property |
|
5,314 |
|
|
4,243 |
|
|
10,467 |
|
|
8,543 |
|
||||
EBITDA |
|
55,066 |
|
|
45,246 |
|
|
95,479 |
|
|
58,723 |
|
||||
(Gain) loss on change in fair value of interest rate swaps |
|
(3,089 |
) |
|
(620 |
) |
|
(6,366 |
) |
|
20,527 |
|
||||
Stock-based compensation expense |
|
2,883 |
|
|
2,371 |
|
|
15,537 |
|
|
5,601 |
|
||||
Loss on early extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
8,615 |
|
||||
Business combination transaction costs |
|
1,953 |
|
|
- |
|
|
4,955 |
|
|
- |
|
||||
Lease abandonment |
|
925 |
|
|
- |
|
|
1,850 |
|
|
- |
|
||||
Lease overlap costs |
|
909 |
|
|
- |
|
|
1,817 |
|
|
- |
|
||||
Net costs related to divestiture |
|
1,494 |
|
|
- |
|
|
2,266 |
|
|
- |
|
||||
First Party Clinical Services—Revenue |
|
- |
|
|
(6,603 |
) |
|
- |
|
|
(18,255 |
) |
||||
First Party Clinical Services—Cost of revenue |
|
- |
|
|
6,462 |
|
|
- |
|
|
15,865 |
|
||||
Adjusted EBITDA |
$ |
60,141 |
|
$ |
46,856 |
|
$ |
115,538 |
|
$ |
91,076 |
|
||||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
|
|
||||||||||||||
(dollar amounts in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
GAAP Net Income (Loss) |
$ |
3,816 |
|
$ |
(1,961 |
) |
$ |
(1,268 |
) |
$ |
(27,213 |
) |
||||
Stock-based compensation expense |
|
2,883 |
|
|
2,371 |
|
|
15,537 |
|
|
5,601 |
|
||||
Lease abandonment |
|
925 |
|
|
- |
|
|
1,850 |
|
|
- |
|
||||
Lease overlap costs |
|
909 |
|
|
- |
|
|
1,817 |
|
|
- |
|
||||
Net costs related to divestiture |
|
1,494 |
|
|
- |
|
|
2,266 |
|
|
- |
|
||||
Business combination transaction costs |
|
1,953 |
|
|
- |
|
|
4,955 |
|
|
- |
|
||||
(Gain) loss on change in fair value of interest rate swaps |
|
(3,089 |
) |
|
(620 |
) |
|
(6,366 |
) |
|
20,527 |
|
||||
Loss on early extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
8,615 |
|
||||
Amortization of intangible assets |
|
18,078 |
|
|
18,078 |
|
|
36,155 |
|
|
36,155 |
|
||||
Amortization of acquired technologies—Cost of revenue |
|
6,580 |
|
|
6,574 |
|
|
13,160 |
|
|
13,149 |
|
||||
First Party Clinical Services—Revenue |
|
- |
|
|
(6,603 |
) |
|
- |
|
|
(18,255 |
) |
||||
First Party Clinical Services—Cost of revenue |
|
- |
|
|
6,462 |
|
|
- |
|
|
15,865 |
|
||||
Tax effect of adjustments |
|
(7,223 |
) |
|
(6,828 |
) |
|
(16,774 |
) |
|
(21,231 |
) |
||||
Adjusted Net Income |
$ |
26,326 |
|
$ |
17,473 |
|
$ |
51,332 |
|
$ |
33,213 |
|
||||
CYPRESS HOLDINGS, INC. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
|
|
||||||||||||||
(amounts in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net cash provided by operating activities |
$ |
21,586 |
|
$ |
14,675 |
|
$ |
59,820 |
|
$ |
23,776 |
|
||||
Less: Purchases of software, equipment, and property |
|
(8,521 |
) |
|
(7,068 |
) |
|
(13,158 |
) |
|
(12,512 |
) |
||||
Less: Purchase of intangible assets |
|
- |
|
|
- |
|
|
(49 |
) |
|
(560 |
) |
||||
Free Cash Flow |
$ |
13,065 |
|
$ |
7,607 |
|
$ |
46,613 |
|
$ |
10,704 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005829/en/
Contacts
Investor:
Brian Denyeau
ICR, LLC
646-277-1251
IR@cccis.com
Media:
Michael Nothnagel
CCC Intelligent Solutions Inc.
michael.nothnagel@teamlewis.com
