- Published: 28 April 2016
- Written by Editor
Blucora Announces First Quarter 2016 Adjusted EBITDA up 11 Percent Year Over Year
BELLEVUE, WA -- 04/28/16 -- Blucora, Inc. (NASDAQ: BCOR), a leading provider of technology-enabled financial solutions to consumers, small businesses and tax professionals, today announced financial results for the first quarter ended March 31, 2016 and provided preliminary tax season update.
First Quarter Highlights and Recent Developments
- Blucora named John S. Clendening as president and chief executive officer
- TaxAct revenue and segment income expected to grow approximately 18 percent and 20 percent respectively for the six months through June 30, 2016 compared to the same period last year
- HD Vest net revenue(1) grew 5 percent and segment income grew 26 percent in the first quarter compared to the same period last year
- Blucora paid down principal of Term B loan by 10 percent ($40M) and repurchased $28.4 million of convertible debt
"Our team continues to drive efforts to strengthen Blucora and execute on our strategic transformation into a technology-enabled financial solutions company," said John Clendening, president and chief executive officer of Blucora. "We began 2016 with good momentum punctuated by our strong financial performance during this year's tax season. Looking ahead, we are committed to our 2016 stated objectives of aggressively paying down debt, divesting our non-core businesses, reducing operating expenses, and delivering on our business performance goals. I am thrilled to lead a newly transformed Blucora, excited for what we can achieve together, and confident in our ability to enhance shareholder value."
Eric Emans, chief financial officer and treasurer of Blucora, noted that the Company has made progress toward its commitment to pay down debt. "We retired more than $65 million of debt in the quarter," he explained, "lowering our net leverage ratio and highlighting the Company's growth, predictable profit generation and strong free cash flow conversion. Debt repayment will remain the top priority for our capital allocation strategy throughout this year and into 2017."
The following presentation includes pro forma financial information and HD Vest. In addition, it excludes the Search and Content and E-Commerce segments which have been classified as discontinued operations for all periods presented. The Company believes that this presentation most accurately reflects the financial performance of the Company on a go-forward basis.
Summary Financial Performance: Q1 2016
($ in millions except per share amounts)
Q1 Q1
2016 2015 Change
------------ --------- ------
As reported Pro forma
Revenue $ 165.8 $ 157.9 5%
Wealth Management $ 77.3 $ 76.8 1%
Tax Preparation $ 88.5 $ 81.1 9%
Segment Income
Wealth Management $ 10.9 $ 8.6 26%
Tax Preparation $ 47.6 $ 44.1 8%
Unallocated Corporate Operating Expenses $ 4.7 $ 4.4 7%
Adjusted EBITDA $ 53.8 $ 48.4 11%
Non-GAAP:
Net Income $ 39.3 $ 37.3 5%
Diluted Net Income Per Share $ 0.94 $ 0.89 6%
GAAP:
Net Income Attributable to Blucora, Inc. $ 22.7 $ 18.4 23%
Diluted Net Income Per Share Attributable
to Blucora, Inc. $ 0.54 $ 0.44 23%
See reconciliations of as reported and pro forma non-GAAP to GAAP measures in tables below.
(1) Net revenue represents Wealth Management segment revenue less Wealth Management services cost of revenue.
Tax Season Update
(in thousands, except %s) Tax seasons ended
---------------------------------------
April 19, 2016 April 16, 2015 % change
-------------- -------------- ---------
Consumer:
Online e-files 4,613 5,058 (9)%
Desktop e-files 234 261 (10)%
-------------- --------------
Sub-total e-files 4,847 5,319 (9)%
Free File Alliance e-files 158 172 (8)%
-------------- --------------
Total consumer e-files 5,005 5,491 (9)%
Professional tax preparer:
E-files 1,630 1,475 11%
-------------- --------------
Total e-files (consumer and
preparer) 6,635 6,966 (5)%
============== ==============
Tax season begins on the first day that the IRS begins accepting e-files and ends on tax day +1.
Other
During the first quarter of 2016, the Company repaid $40.0 million on the TaxAct - HD Vest credit facility and repurchased $28.4 million of the Convertible Senior Notes for cash of $20.7 million. As a result, at the end of the first quarter, Blucora's net leverage ratio was lowered by 1.1x.
Second Quarter and Full Year 2016 Outlook
For the second quarter of 2016, the Company expects revenues to be between $120.5 million and $124.5 million, Adjusted EBITDA to be between $33.7 million and $35.9 million, Non-GAAP income from continuing operations to be between $20.0 million and $22.7 million, or $0.48 to $0.54 per diluted share, and GAAP income from continuing operations to be between $4.5 million and $6.3 million, or $0.11 to $0.15 per diluted share.
For the full year 2016, the Company expects revenues to be between $452.0 million and $465.5 million, Adjusted EBITDA to be between $90.0 million and $94.0 million, Non-GAAP income from continuing operations to be between $39.9 million and $44.4 million, or $0.95 to $1.06 per diluted share, and GAAP loss from continuing operations to be between $5.0 million and $1.3 million, or $(0.12) to $(0.03) per diluted share.
Conference Call and Webcast
A conference call and live webcast will be held today at 5:30 a.m. Pacific Time / 8:30 a.m. Eastern Time during which the Company will further discuss first quarter results and its outlook for the second quarter of 2016. We have also provided supplemental financial information to our results that can be accessed in the Investor Relations section of the Blucora corporate website athttp://www.blucora.com and filed with the SEC on Form 8-K. A replay of the call and management's prepared remarks will also be available on our website.
About Blucora®
Blucora, Inc. (NASDAQ: BCOR) is a leading provider of technology-enabled financial solutions to consumers, small businesses and tax professionals. Our products and services in tax preparation and wealth management, through TaxAct and HD Vest, help consumers manage their financial lives. TaxAct is an affordable digital tax preparation solution for individuals, business owners and tax professionals. HD Vest Financial Services® supports an independent network of tax professionals who provide comprehensive financial planning solutions. For more information on Blucora or its businesses, please visit www.blucora.com.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations due to various risks and uncertainties including, but not limited to: general economic, industry, and market sector conditions; the availability of products to sell; the timing and extent of market acceptance of developed products and services and related costs; our dependence on companies to distribute our products and services; the ability to successfully integrate acquired businesses; future acquisitions; the successful execution of the Company's strategic initiatives, technology enhancements, operating plans, and marketing strategies; and the condition of our cash investments. A more detailed description of these and certain other factors that could affect actual results is included in Blucora, Inc.'s most recent Quarterly Report on Form 10-Q and subsequent reports filed with or furnished to the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Blucora, Inc. undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Blucora, Inc.
Preliminary Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share data)
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
Revenue:
Wealth management services revenue $ 77,291 $ -
Tax preparation services revenue 88,474 81,068
-------------- -------------
Total revenue 165,765 81,068
Operating expenses:
Cost of revenue:
Wealth management services cost of revenue 52,269 -
Tax preparation services cost of revenue 3,207 2,137
Amortization of acquired technology 667 1,862
-------------- -------------
Total cost of revenue (1) 56,143 3,999
Engineering and technology (1) 4,295 1,090
Sales and marketing (1) 43,837 33,018
General and administrative (1) 12,753 7,146
Depreciation 975 351
Amortization of other acquired intangible
assets 8,316 3,186
-------------- -------------
Total operating expenses 126,319 48,790
-------------- -------------
Operating income 39,446 32,278
Other loss, net (2) (7,514) (2,995)
-------------- -------------
Income from continuing operations before income
taxes 31,932 29,283
Income tax expense (11,643) (9,868)
-------------- -------------
Income from continuing operations 20,289 19,415
Discontinued operations, net of income taxes 2,522 3,685
-------------- -------------
Net income 22,811 23,100
Net income attributable to noncontrolling
interests (144) -
-------------- -------------
Net income attributable to Blucora, Inc. $ 22,667 $ 23,100
============== =============
Net income per share attributable to Blucora,
Inc. - basic:
Continuing operations $ 0.49 $ 0.47
Discontinued operations 0.06 0.09
-------------- -------------
Basic net income per share $ 0.55 $ 0.56
============== =============
Net income per share attributable to Blucora,
Inc. - diluted:
Continuing operations $ 0.48 $ 0.46
Discontinued operations 0.06 0.09
-------------- -------------
Diluted net income per share $ 0.54 $ 0.55
============== =============
Weighted average shares outstanding:
Basic 41,171 40,987
Diluted 41,610 41,899
(1) Stock-based compensation expense was allocated among the following captions (in thousands):
Three months ended March 31,
-----------------------------
2016 2015
-------------- --------------
Cost of revenue $ 42 $ 29
Engineering and technology 411 133
Sales and marketing 601 195
General and administrative 3,175 1,548
-------------- --------------
Total stock-based compensation expense $ 4,229 $ 1,905
============== ==============
(2) Other loss, net was allocated among the following captions (in thousands):
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
Interest income $ (25) $ (122)
Interest expense 9,191 2,388
Amortization of debt issuance costs 610 276
Accretion of debt discounts 1,406 940
Gain on debt extinguishment and modification
expense (3,843) -
Gain on third party bankruptcy settlement (18) (476)
Other 193 (11)
-------------- -------------
Other loss, net $ 7,514 $ 2,995
============== =============
Blucora, Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
March 31, December 31,
2016 2015
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 67,955 $ 55,473
Cash segregated under federal or other
regulations 3,686 3,557
Available-for-sale investments 11,642 11,301
Accounts receivable, net of allowance 10,840 7,884
Commissions receivable 15,062 16,328
Other receivables 4,261 24,407
Prepaid expenses and other current assets, net 7,320 10,062
Current assets of discontinued operations 197,275 211,663
------------ -------------
Total current assets 318,041 340,675
Long-term assets:
Property and equipment, net 11,093 11,308
Goodwill, net 551,027 548,959
Other intangible assets, net 387,359 396,295
Other long-term assets 2,216 2,311
------------ -------------
Total long-term assets 951,695 958,873
------------ -------------
Total assets $ 1,269,736 $ 1,299,548
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,906 $ 4,689
Commissions and advisory fees payable 15,277 16,982
Accrued expenses and other current liabilities 17,063 13,006
Deferred revenue 7,945 11,521
Current portion of long-term debt, net 3,200 31,631
Current liabilities of discontinued operations 73,830 88,275
------------ -------------
Total current liabilities 127,221 166,104
Long-term liabilities:
Long-term debt, net 344,891 353,850
Convertible senior notes, net 160,781 185,918
Deferred tax liability, net 98,501 103,520
Deferred revenue 2,868 1,902
Other long-term liabilities 10,490 10,932
------------ -------------
Total long-term liabilities 617,531 656,122
------------ -------------
Total liabilities 744,752 822,226
Redeemable noncontrolling interests 15,182 15,038
Stockholders' equity:
Common stock 4 4
Additional paid-in capital 1,514,923 1,490,405
Accumulated deficit (1,004,931) (1,027,598)
Accumulated other comprehensive loss (194) (527)
------------ -------------
Total stockholders' equity 509,802 462,284
------------ -------------
Total liabilities and stockholders' equity $ 1,269,736 $ 1,299,548
============ =============
Blucora, Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in thousands)
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
Operating Activities:
Net income $ 22,811 $ 23,100
Less: Discontinued operations, net of income
taxes 2,522 3,685
-------------- -------------
Net income from continuing operations 20,289 19,415
Adjustments to reconcile net income from
continuing operations to net cash from
operating activities:
Stock-based compensation 4,229 1,905
Depreciation and amortization of acquired
intangible assets 10,105 5,586
Excess tax benefits from stock-based award
activity (16,865) (22,081)
Deferred income taxes (5,127) (14,277)
Amortization of premium on investments, net 79 483
Amortization of debt issuance costs 610 276
Accretion of debt discounts 1,406 940
Gain on debt extinguishment and
modification expense (3,843) -
Other 13 -
Cash provided (used) by changes in operating
assets and liabilities:
Cash segregated under federal or other
regulations (129) -
Accounts receivable (2,967) (4,726)
Commissions receivable 1,266 -
Other receivables 20,146 1,612
Prepaid expenses and other current assets 2,709 3,570
Other long-term assets 95 26
Accounts payable 5,217 8,175
Commissions and advisory fees payable (1,705) -
Deferred revenue (2,610) (296)
Accrued expenses and other current and
long-term liabilities 18,809 27,579
-------------- -------------
Net cash provided by operating activities
from continuing operations 51,727 28,187
Investing Activities:
Purchases of property and equipment (677) (259)
Proceeds from sales of investments - 3,000
Proceeds from maturities of investments - 68,243
Purchases of investments (403) (66,833)
-------------- -------------
Net cash provided (used) by investing
activities from continuing operations (1,080) 4,151
Financing Activities:
Repurchase of convertible notes (20,667) -
Repayment of credit facilities (40,000) (25,000)
Stock repurchases - (4,445)
Excess tax benefits from stock-based award
activity 16,865 22,081
Proceeds from stock option exercises 1,088 1,616
Proceeds from issuance of stock through
employee stock purchase plan 562 608
Tax payments from shares withheld upon
vesting of restricted stock units (329) (435)
-------------- -------------
Net cash used by financing activities
from continuing operations (42,481) (5,575)
Net cash provided by continuing operations 8,166 26,763
Net cash provided by operating activities from
discontinued operations 8,402 2,726
Net cash used by investing activities from
discontinued operations (479) (1,135)
Net cash used by financing activities from
discontinued operations (3,607) (10,220)
-------------- -------------
Net cash provided (used) by discontinued
operations 4,316 (8,629)
-------------- -------------
Net increase in cash and cash equivalents 12,482 18,134
Cash and cash equivalents, beginning of period 55,473 41,968
-------------- -------------
Cash and cash equivalents, end of period $ 67,955 $ 60,102
============== =============
Blucora, Inc.
Preliminary Segment Information
(Unaudited)
(Amounts in thousands)
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
Revenue:
Wealth Management $ 77,291 $ -
Tax Preparation 88,474 81,068
-------------- -------------
Total revenue 165,765 81,068
Operating income:
Wealth Management 10,906 -
Tax Preparation 47,573 44,145
Corporate-level activity (1) (19,033) (11,867)
-------------- -------------
Total operating income 39,446 32,278
Other loss, net (7,514) (2,995)
Income tax expense (11,643) (9,868)
Discontinued operations, net of income taxes 2,522 3,685
-------------- -------------
Net income $ 22,811 $ 23,100
============== =============
(1) Corporate-level activity included the following (in thousands):
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
Operating expenses $ 4,699 $ 4,376
Stock-based compensation 4,229 1,905
Depreciation 1,122 538
Amortization of acquired intangible assets 8,983 5,048
-------------- -------------
Total corporate-level activity $ 19,033 $ 11,867
============== =============
Blucora, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable
GAAP Measures
Preliminary Adjusted EBITDA Reconciliation (1)
(Unaudited)
(Amounts in thousands)
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
Operating income (2) $ 39,446 $ 32,278
Stock-based compensation 4,229 1,905
Depreciation and amortization of acquired
intangible assets 10,105 5,586
-------------- -------------
Adjusted EBITDA $ 53,780 $ 39,769
============== =============
Preliminary Non-GAAP Net Income Reconciliation (1)
(Unaudited)
(Amounts in thousands, except per share amounts)
Three months ended March 31,
----------------------------
2016 2015
------------- ------------
Net income attributable to Blucora, Inc.(2) $ 22,667 $ 23,100
Stock-based compensation 4,229 1,905
Amortization of acquired intangible assets 8,983 5,048
Accretion of debt discount on Convertible
Senior Notes 963 940
Accelerated accretion of debt discount on
Convertible Senior Notes 1,628 -
Gain on Convertible Senior Notes repurchased (7,724) -
Discontinued operations, net of income taxes (2,522) (3,685)
Impact of noncontrolling interests 144 -
Cash tax impact of adjustments to GAAP net
income 339 (34)
Non-cash income tax expense (1) 10,579 9,811
-------------- -------------
Non-GAAP net income $ 39,286 $ 37,085
============== =============
Per diluted share:
Net income attributable to Blucora, Inc. $ 0.54 $ 0.55
Stock-based compensation 0.10 0.05
Amortization of acquired intangible assets 0.23 0.13
Accretion of debt discount on Convertible
Senior Notes 0.02 0.02
Accelerated accretion of debt discount on
Convertible Senior Notes 0.04 -
Gain on Convertible Senior Notes repurchased (0.19) -
Discontinued operations, net of income taxes (0.06) (0.09)
Impact of noncontrolling interests 0.00 -
Cash tax impact of adjustments to GAAP net
income 0.01 0.00
Non-cash income tax expense 0.25 0.23
-------------- -------------
Non-GAAP net income $ 0.94 $ 0.89
============== =============
Weighted average shares outstanding used in
computing per diluted share amounts 41,610 41,899
Blucora, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable
GAAP Measures
(As Reported and Pro Forma)
Preliminary Adjusted EBITDA Reconciliation (As Reported and Pro Forma) (1)
(Unaudited)
(Amounts in thousands)
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
As reported Pro forma
Operating income $ 39,446 $ 34,198
Stock-based compensation 4,229 2,889
Depreciation and amortization of acquired
intangible assets 10,105 11,329
-------------- -------------
Adjusted EBITDA $ 53,780 $ 48,416
============== =============
Preliminary Non-GAAP Net Income Reconciliation (As Reported and Pro Forma)
(1)
(Unaudited)
(Amounts in thousands, except per share amounts)
Three months ended March 31,
----------------------------
2016 2015
-------------- -------------
As reported Pro forma
Net income attributable to Blucora, Inc. $ 22,667 $ 18,415
Stock-based compensation 4,229 2,889
Amortization of acquired intangible assets 8,983 10,185
Accretion of debt discount on Convertible
Senior Notes 963 940
Accelerated accretion of debt discount on
Convertible Senior Notes 1,628 -
Gain on Convertible Senior Notes repurchased (7,724) -
Discontinued operations, net of income taxes (2,522) (3,685)
Impact of noncontrolling interests 144 -
Cash tax impact of adjustments to GAAP net
income 339 (100)
Non-cash income tax expense 10,579 8,671
-------------- -------------
Non-GAAP net income $ 39,286 $ 37,315
============== =============
Per diluted share:
Net income attributable to Blucora, Inc. $ 0.54 $ 0.44
Stock-based compensation 0.10 0.07
Amortization of acquired intangible assets 0.23 0.24
Accretion of debt discount on Convertible
Senior Notes 0.02 0.02
Accelerated accretion of debt discount on
Convertible Senior Notes 0.04 -
Gain on Convertible Senior Notes repurchased (0.19) -
Discontinued operations, net of income taxes (0.06) (0.09)
Impact of noncontrolling interests 0.00 -
Cash tax impact of adjustments to GAAP net
income 0.01 0.00
Non-cash income tax expense 0.25 0.21
-------------- -------------
Non-GAAP net income $ 0.94 $ 0.89
============== =============
Weighted average shares outstanding used in
computing per diluted share amounts 41,610 41,899
Preliminary Adjusted EBITDA Reconciliation for Forward-Looking Guidance
(Amounts in thousands)
Ranges for the three Ranges for the
months ending year ending
June 30, 2016 December 31, 2016
--------------------- ---------------------
Income (loss) from continuing
operations $ 4,500 $ 6,300 $ (5,000) $ (1,300)
Stock-based compensation 4,300 4,300 18,700 17,700
Depreciation and amortization of
acquired intangible assets 9,600 9,500 39,200 38,900
Other loss, net (3) 12,800 12,300 39,900 39,400
Income tax (benefit) expense 2,500 3,500 (2,800) (700)
---------- ---------- ---------- ----------
Adjusted EBITDA $ 33,700 $ 35,900 $ 90,000 $ 94,000
========== ========== ========== ==========
Preliminary Non-GAAP Income from Continuing Operations Reconciliation for
Forward-Looking Guidance
(Amounts in thousands)
Ranges for the three Ranges for the
months ending year ending
June 30, 2016 December 31, 2016
--------------------- ---------------------
Income (loss) from continuing
operations $ 4,500 $ 6,300 $ (5,000) $ (1,300)
Stock-based compensation 4,300 4,300 18,700 17,700
Amortization of acquired
intangible assets 8,400 8,400 34,200 34,100
Accretion of debt discount on
Convertible Senior Notes 1,000 1,000 3,700 3,700
Accelerated accretion of debt
discount on Convertible Senior
Notes - - 1,600 1,600
Gain on Convertible Senior Notes
repurchased - - (7,700) (7,700)
Cash tax impact of adjustments
to income (loss) from
continuing operations - - 300 300
Non-cash income tax (benefit)
expense 1,800 2,700 (5,900) (4,000)
---------- ---------- ---------- ----------
Non-GAAP income from continuing
operations $ 20,000 $ 22,700 $ 39,900 $ 44,400
========== ========== ========== ==========
Notes to Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(1) We define Adjusted EBITDA differently for this report than we have defined it in the past, due to the impact of noncontrolling interests from the HD Vest acquisition that we began recognizing in the first quarter of 2016 and the discontinued operations treatment of our Search and Content and E-Commerce businesses as determined in the fourth quarter of 2015. We define Adjusted EBITDA as operating income, determined in accordance with GAAP, excluding the effects of depreciation, amortization of acquired intangible assets (including acquired technology), and stock-based compensation.
We believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. We use this non-GAAP financial measure for internal management and compensation purposes, when publicly providing guidance on possible future results, and as a means to evaluate period-to-period comparisons. We believe that Adjusted EBITDA is a common measure used by investors and analysts to evaluate our performance, that it provides a more complete understanding of the results of operations and trends affecting our business when viewed together with GAAP results, and that management and investors benefit from referring to this non-GAAP financial measure. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of our business and, therefore, Adjusted EBITDA should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income. Other companies may calculate Adjusted EBITDA differently and, therefore, our Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
We define non-GAAP net income differently for this report than we have defined it in the past, due to the impact of noncontrolling interests from the HD Vest acquisition that we began recognizing in the first quarter of 2016 and the discontinued operations treatment of our Search and Content and E-Commerce businesses as determined in the fourth quarter of 2015. For this report, we define non-GAAP net income as net income attributable to Blucora, Inc., determined in accordance with GAAP, excluding the effects of stock-based compensation, amortization of acquired intangible assets (included acquired technology), accretion of debt discount and accelerated accretion of debt discount on the Convertible Senior Notes, gain on Convertible Senior Notes repurchased, discontinued operations, the impact of noncontrolling interests, and the related cash tax impact of those adjustments, and non-cash income taxes. We exclude the non-cash portion of income taxes because of our ability to offset a substantial portion of our cash tax liabilities by using deferred tax assets, which primarily consist of U.S. federal net operating losses. The majority of these net operating losses will expire, if unutilized, between 2020 and 2024.
We believe that non-GAAP net income and non-GAAP net income per share provide meaningful supplemental information to management, investors, and analysts regarding our performance and the valuation of our business by excluding items in the statement of operations that we do not consider part of our ongoing operations or have not been, or are not expected to be, settled in cash. Additionally, we believe that non-GAAP net income and non-GAAP net income per share are common measures used by investors and analysts to evaluate our performance and the valuation of our business. Non-GAAP net income should be evaluated in light of our financial results prepared in accordance with GAAP and should be considered as a supplement to, and not as a substitute for or superior to, GAAP net income. Other companies may calculate non-GAAP net income differently, and, therefore, our non-GAAP net income may not be comparable to similarly titled measures of other companies.
(2) As presented in the Preliminary Condensed Consolidated Statements of Operations (unaudited).
(3) Other loss, net primarily includes items such as interest income, interest expense, amortization of debt issuance costs, accretion of debt discounts, gain/loss on debt extinguishment and modification expense, and gain on third party bankruptcy settlement.
Blucora Contact:
Stacy Ybarra
425-709-8127
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