SNCR

SYNCHRONOSS TECHNOLOGIES INC

Technology | Micro Cap

$0.23

EPS Forecast

$43.69

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 sncr-ex99112312019.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

g397781mmi001a03.jpg

200 Crossing Boulevard, Bridgewater, NJ 08807
 
Synchronoss Technologies Announces Fourth Quarter and Full Year 2019 Financial Results; AT&T set to deploy the Synchronoss Personal Cloud Solution

BRIDGEWATER, NJ - March 9, 2020 - (GLOBE NEWSWIRE) -- Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and innovator in cloud, messaging, digital and IoT platforms and products, today announced financial results for its fourth quarter and year ended December 31, 2019. Synchronoss also announced this morning that AT&T is set to deploy the Synchronoss Personal Cloud Solution for AT&T Mobility wireless customers.

Financial highlights:

•
Revenue for the quarter was $90.6 million. For the full year, revenue was $308.7 million.
•
GAAP net loss for the quarter was $14.7 million. For the full year, GAAP net loss was $136.7 million.
•
Synchronoss delivered $6.5 million of adjusted EBITDA for the quarter. For the full year, adjusted EBITDA was $27.6 million.
•
Total costs and expenses were down 13 percent in the fourth quarter and 15 percent for the year.
•
Synchronoss ended the year with $39.0 million of cash on the balance sheet.

                               Three Months Ended December 31,
$000s
2019
 
2018
 
% Change
Revenues
$
90,588

 
$
82,102

 
10.3
 %
 
 
 
 
 
 
Net Loss Attributable to Synchronoss
(14,671
)
 
(101,909
)
 
85.6
 %
Non-GAAP Net Loss From Cont. Ops. Attributable to Synchronoss


(2,502
)
 
(80,837
)
 
96.9
 %
Adjusted EBITDA
6,486

 
15,436

 
(58.0
)%

                               Twelve Months Ended December 31,
$000s
2019
 
2018
 
% Change
Revenues
$
308,749

 
$
325,839

 
(5.2
)%
 
 
 
 
 
 
Net Loss Attributable to Synchronoss
(136,720
)
 
(243,748
)
 
43.9
 %
Non-GAAP Net Loss From Cont. Ops. Attributable to Synchronoss

(53,777
)
 
(176,914
)
 
69.6
 %
Adjusted EBITDA
27,584

 
14,023

 
96.7
 %

Glenn Lurie, president and chief executive officer, stated “Synchronoss finished 2019 on a strong note, with our highest revenue quarter in two years. And 2020 is off to a good start, as we have already launched two new cloud customers - TracFone and Assurant - and we are launching AT&T this week. In addition, our advanced messaging work with the CCMI joint venture of AT&T, Sprint, T-Mobile, and Verizon is well underway, and we are already seeing upside to the original contract in the form of additional technology integration and professional services work.”





Mr. Lurie added, “With the new business wins we closed in 2019, we have the business in hand along with the quality of our sales funnel to energize profitable growth for the next several years. We have worked hard to right size our expense base and see additional opportunities to reduce costs and grow operating margins in the new year."

David Clark, chief financial officer, added, “Synchronoss ended the year with $39 million of cash, up from $20 million at the end of the third quarter. In 2019, we reduced total costs and expenses 13 percent, which drove a significant improvement in financial results. For the full year, Adjusted EBITDA was $27.6 million, up from $14.0 million in 2018. We believe we can deliver approximately $15 million of additional cost savings in 2020.”

New Business Update

New customer agreements and partnerships that the company has completed since the last earnings announcement include:

•
AT&T Mobility is launching the Synchronoss Personal Cloud solution for its wireless customers. The Synchronoss Personal Cloud solution will fully integrate into a suite of AT&T services, leveraging the cloud to vastly improve the subscriber’s overall experience. It will also give AT&T the ability to provide and monetize new value-added services to its wireless customers.
•
Synchronoss’ Personal Cloud Solution has been fully integrated with Pocket Geek by Assurant to provide an enhanced device and content protection solution to a leading North American carrier.
•
In November, the company was selected by the Cross-Carrier Messaging Initiative (CCMI), a joint venture of AT&T, Sprint, T-Mobile, and Verizon, to deliver an advanced mobile messaging experience across all four mobile networks.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures."

Conference Call Details

Synchronoss will host a conference call on Monday, March 9, 2020, at 5:00 p.m. (ET) to discuss the company’s financial results. To access this call, dial 1-201-493-6784. Additionally, a live web cast of the conference call will be available on the Investor Relations page on the company’s web site at www.synchronoss.com.

Following the conference call, a replay will be available for a limited time at 1-412-317-6671. The replay pass code is 13698084. An archived web cast of this conference call will also be available on the Investor Relations page of the company’s web site, www.synchronoss.com.

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP revenues, gross profit, operating income (loss), net income (loss), effective tax rate, earnings (loss) per share and cash flows from operating activities. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss’ ongoing operational performance. Synchronoss 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, and in comparing its financial results with other companies in Synchronoss’ industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back fair value stock-based compensation expense, acquisition-related costs which includes integration costs, restructuring and cease-use lease expense, deferred compensation expense related to earn outs and amortization of intangibles associated with acquisitions as well as certain non-recurring adjustments.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-




GAAP measures to their most directly comparable GAAP financial measures as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss transforms the way companies create new revenue, reduce costs and delight their subscribers with cloud, messaging, digital and IoT products, supporting hundreds of millions of subscribers across the globe. Synchronoss’ secure, scalable and groundbreaking new technologies, trusted partnerships, and talented people change the way TMT customers grow their businesses. For more information, visit us at www.synchronoss.com.





Forward-looking Statements

This press release includes statements concerning Synchronoss and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “believes,” “potential” or “continue” or other similar expressions are intended to identify forward-looking statements. Synchronoss has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks relating to the Company’s ability to sustain or increase revenue from its larger customers and generate revenue from new customers, the Company’s expectations regarding expenses and revenue, the Company’s growth strategies, the anticipated trends and challenges in the business and the market in which the Company operates, the Company’s expectations regarding federal, state and foreign regulatory requirements, the pending lawsuits against the Company described in its most recent SEC filings, and other risks and factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which is on file with the SEC and available on the SEC’s website at www.sec.gov. The company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.


Contact:

Investors:
Joe Crivelli
Vice President, Investor Relations
908-566-3131
investor@synchronoss.com

Media:                    
CCgroup
US: Diane Rose, +1 727-238-7567 or International: Anais Merlin, +44 20 3824 9219            
synchronoss@ccgrouppr.com




SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)

 
December 31, 2019
 
December 31, 2018
ASSETS
Current assets:
 

 
 

Cash and cash equivalents
$
38,990

 
$
103,771

Restricted cash*
11

 
6,089

Marketable securities, current
11

 
28,230

Accounts receivable, net of allowances for bad debt of $1,864 and $4,599 at December 31, 2019 and December 31, 2018, respectively**
65,863

 
102,798

Prepaid expenses
24,224

 
45,058

Other current assets
4,792

 
8,508

Total current assets
133,891

 
294,454

Marketable securities, non-current
—

 
6,658

Property and equipment, net
26,525

 
67,937

Operating lease right-of-use assets
53,965

 
—

Goodwill
222,969

 
224,899

Intangible assets, net
77,613

 
98,706

Other assets
8,054

 
8,982

Equity method investment
—

 
1,619

Total assets
$
523,017

 
$
703,255


LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
21,551

 
13,576

Accrued expenses
56,810

 
59,545

Deferred revenues, current
65,858

 
57,101

Short-term convertible debt, net of debt issuance costs
—

 
113,542

Total current liabilities
144,219

 
243,764

Lease financing obligation
—

 
9,494

Operating lease liabilities, non-current
60,976

 
—

Deferred tax liabilities
1,098

 
1,347

Deferred revenues, non-current
21,941

 
59,841

Other non-current liabilities
4,588

 
10,797

Redeemable noncontrolling interest
12,500

 
12,500

Commitments and contingencies


 


Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 217 shares issued and outstanding at December 31, 2019
200,865

 
176,603

Stockholders’ equity:
 
 
 
Common stock, $0.0001 par value; 100,000 shares authorized, 51,704 and 49,836 shares issued; 44,542 and 42,674 outstanding at December 31, 2019 and December 31, 2018, respectively
5

 
5

Treasury stock, at cost (7,162 and 7,162 shares at December 31, 2019 and December 31, 2018, respectively)
(82,087
)
 
(82,087
)
Additional paid-in capital
525,739

 
534,673

Accumulated other comprehensive loss
(32,515
)
 
(30,383
)
Accumulated deficit
(334,312
)
 
(233,299
)
Total stockholders’ equity
76,830

 
188,909

Total liabilities and stockholders’ equity
$
523,017

 
$
703,255







SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2019
 
2018
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
$
90,588

 
$
82,102

 
$
308,749

 
$
325,839

 
$
402,361

Costs and expenses:
 
 
 
 
 
 
 
 
 
 
Cost of revenues*
 
42,449

 
31,014

 
150,407

 
158,802

 
181,453

Research and development
 
18,286

 
19,383

 
75,568

 
79,172

 
90,850

Selling, general and administrative
 
29,909

 
22,744

 
112,771

 
122,112

 
154,037

Restructuring charges
 
17

 
3,950

 
755

 
12,375

 
10,739

Depreciation and amortization
 
18,116

 
47,324

 
77,036

 
117,654

 
94,884

Total costs and expenses
 
108,777

 
124,415

 
416,537

 
490,115

 
531,963

Loss from continuing operations
 
(18,189
)
 
(42,313
)
 
(107,788
)
 
(164,276
)
 
(129,602
)
Interest income
 
542

 
252

 
1,258

 
7,770

 
12,502

Interest expense
 
(104
)
 
(976
)
 
(1,355
)
 
(4,911
)
 
(55,771
)
Gain (loss) on extinguishment of debt
 
—

 
1,760

 
822

 
1,760

 
(29,413
)
Other Income (expense), net
 
7,372

 
(65,737
)
 
7,389

 
(74,917
)
 
(17,678
)
Equity method investment loss
 
—

 
(28,671
)
 
(1,619
)
 
(28,600
)
 
(9,125
)
Loss from continuing operations, before taxes
 
(10,379
)
 
(135,685
)
 
(101,293
)
 
(263,174
)
 
(229,087
)
Benefit (provision) for income taxes
 
4,446

 
16,290

 
(2,167
)
 
17,894

 
34,863

Net loss from continuing operations
 
(5,933
)
 
(119,395
)
 
(103,460
)
 
(245,280
)
 
(194,224
)
Net income from discontinued operations, net of tax**
 
—

 
18,288

 
—

 
18,288

 
75,495

Net loss
 
(5,933
)
 
(101,107
)
 
(103,460
)
 
(226,992
)
 
(118,729
)
Net (income) loss attributable to redeemable noncontrolling interests
 
(194
)
 
6,715

 
(1,126
)
 
8,837

 
9,291

Preferred stock dividend
 
(8,544
)
 
(7,517
)
 
(32,134
)
 
(25,593
)
 
—

Net loss attributable to Synchronoss
 
$
(14,671
)
 
$
(101,909
)
 
$
(136,720
)
 
$
(243,748
)
 
$
(109,438
)
 
 
 
 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.36
)
 
$
(3.01
)
 
$
(3.36
)
 
$
(6.51
)
 
$
(4.14
)
Discontinued operations**
 
—

 
0.45

 
—

 
0.46

 
1.69

 
 
$
(0.36
)
 
$
(2.56
)
 
$
(3.36
)
 
$
(6.05
)
 
$
(2.45
)
Diluted:
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.36
)
 
$
(3.01
)
 
$
(3.36
)
 
$
(6.51
)
 
$
(4.14
)
Discontinued operations**
 
—

 
0.45

 
—

 
0.46

 
1.69

 
 
$
(0.36
)
 
$
(2.56
)
 
$
(3.36
)
 
$
(6.05
)
 
$
(2.45
)
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
41,085

 
39,885

 
40,694

 
40,277

 
44,669

Diluted
 
41,085

 
39,885

 
40,694

 
40,277

 
44,669









SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands) (Unaudited)
 
Twelve Months Ended December 31,
 
2019
 
2018
 
2017
Operating activities:
 
 
 
 
 
Net loss continuing operations
$
(103,460
)
 
$
(245,280
)
 
$
(194,224
)
Net loss from discontinued operations
—

 
—

 
75,495

Gain (loss) on Sale of discontinued operations, net of tax
—

 
18,288

 
(122,842
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
Depreciation and amortization
77,037

 
97,092

 
93,924

Goodwill impairment
—

 
9,100

 
—

Impairment of long-lived assets and capitalized software
—

 
11,462

 
960

Change in fair value of financial instruments
(163
)
 
(3,849
)
 
4,367

Amortization of debt issuance costs
285

 
1,294

 
12,771

(Gain) loss on extinguishment of debt
(822
)
 
(1,760
)
 
29,413

Accrued PIK interest
—

 
(7,037
)
 
(12,090
)
Allowance for loan losses
—

 
84,314

 
14,562

Loss (earnings) from Equity method investments
1,619

 
28,600

 
9,125

(Gain) loss on Disposals of fixed assets
15

 
277

 
(4,947
)
Discontinued operations non-cash and working capital adjustments*
—

 
—

 
48,647

(Gain) loss on Disposals of intangible assets
(5,429
)
 
—

 
—

Amortization of bond premium
(34
)
 
107

 
244

Deferred income taxes
(222
)
 
(12,350
)
 
19,243

Non-cash interest on leased facility
—

 
 
 
1,203

Stock-based compensation
22,287

 
27,604

 
22,495

Contingent consideration obligation
—

 
—

 
(2,711
)
Cumulative adjustment to STI receivable
26,044

 
—

 
 
ROU Asset Impairment
6,268

 
—

 
 
Changes in operating assets and liabilities:
 
 
 
 
 
Accounts receivable, net of allowance for doubtful accounts
10,891

 
(21,521
)
 
29,283

Prepaid expenses and other current assets
27,215

 
(5,315
)
 
(5,513
)
Other assets
1,710

 
973

 
3,237

Accounts payable
8,879

 
6,846

 
(9,098
)
Accrued expenses
(7,059
)
 
(18,068
)
 
(4,949
)
Other liabilities
(4,362
)
 
(4,675
)
 
(3,337
)
Deferred revenues
(28,856
)
 
2,529

 
(23,506
)
Net cash provided by (used in) operating activities
31,843

 
(31,369
)
 
(18,248
)
 
 
 
 
 
 
Investing activities:
 
 
 
 
 
Purchases of fixed assets
(8,183
)
 
(11,656
)
 
(12,151
)
Purchases of intangible assets and capitalized software
(13,008
)
 
(14,372
)
 
(9,119
)
Proceeds from the sale of intangibles
5,429

 
—

 
—

Proceeds from the sale of Speechcycle
—

 
—

 
13,500

Purchases of marketable securities available for sale
(51,745
)
 
(36,789
)
 
(219
)
Maturity of marketable securities available for sale
86,884

 
4,865

 
12,371

Proceeds from the sale of discontinued operations
—

 
—

 
928,171

Equity investment
—

 
404

 
608

Investing activities in discontinued operations*
—

 
—

 
(13,721
)
Investment in note receivable
—

 
—

 
(6,187
)
Business acquired, net of cash
—

 
(9,734
)
 
(815,008
)
Net cash provided by (used in) investing activities
19,377

 
(67,282
)
 
98,245

 
 
 
 
 
 




Financing activities:
 
 
 
 
 
Share-based compensation-related proceeds, net of taxes paid on withholding shares 
39

 
—

 
2,584

Taxes paid on withholding shares
(15
)
 
—

 
(442
)
Payments on contingent consideration
—

 
—

 
(122
)
Debt issuance costs related to the Credit Facility
—

 
—

 
(3,692
)
Debt issuance costs related to long-term debt
—

 
—

 
(19,887
)
Debt amendment costs related to long-term debt
—

 
—

 
(16,776
)
Proceeds from issuance of convertible notes
—

 
—

 
900,000

Retirement of Convertible Senior Notes & related costs
(113,006
)
 
(113,696
)
 
—

Repayment of long-term debt
—

 
—

 
(900,000
)
Borrowings on revolving line of credit
2,000

 
—

 
 
Repayment of revolving line of credit
(2,000
)
 
—

 
(29,000
)
Excess tax benefits from stock option exercises
—

 
—

 
17

Proceeds from the sale of treasury stock in connection with an employee stock purchase plan
—

 
—

 
1,047

Proceeds from issuance of preferred stock
—

 
86,220

 
—

Preferred dividend payment
(7,075
)
 
(7,075
)
 
—

Proceeds from mandatorily redeemable financial instruments
—

 
—

 
33,592

Payments on capital obligations
(1,200
)
 
(1,334
)
 
(2,985
)
Net cash used in financing activities
(121,257
)
 
(35,885
)
 
(35,664
)
 
 
 
 
 
 
Effect of exchange rate changes on cash
(822
)
 
(1,729
)
 
(9,641
)
 
 
 
 
 
 
Net decrease in cash and cash equivalents
(70,859
)
 
(136,265
)
 
34,692

Cash and cash equivalents, beginning of period
109,860

 
246,125

 
211,433

Cash and cash equivalents, end of period
$
39,001

 
$
109,860

 
$
246,125

 
 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
 
 
Cash paid for income taxes
$
3,598

 
$
22,549

 
$
7,612

Cash refund for income taxes
$
20,733

 
$
—

 
$
—

Cash paid for interest
$
666

 
$
3,258

 
$
55,957

 
 
 
 
 
 
Supplemental disclosures of non-cash investing and financing activities:
 
 
 
 
 
Accrued dividends on Series A Convertible Participating Perpetual Preferred Stock
$
22,005

 
$
7,075

 
$
—

Issuance of common stock in connection with Intralinks acquisition
$
—

 
$
—

 
$
4,700

 
 
 
 
 
 
Cash and cash equivalents per Consolidated Balance Sheets
$
38,990

 
$
103,771

 
$
156,299

Restricted cash
$
11

 
$
6,089

 
$
89,826

Total cash, cash equivalents and restricted cash
$
39,001

 
$
109,860

 
$
246,125






SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
 
 
Three Months Ended Dec 31,
 
Twelve Months Ended Dec 31,
 
 
2019
 
2018
 
2019
 
2018
Non-GAAP financial measures and reconciliation:
 
 
 
 
 
 
 
 
GAAP Revenue
 
$
90,588

 
$
82,102

 
$
308,749

 
$
325,839

Less: Cost of revenues
 
42,449

 
31,014

 
150,407

 
158,802

Gross Profit
 
48,139

 
51,088

 
158,342

 
167,037

Add / (Less):
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
782

 
1,035

 
2,928

 
3,447

Restructuring and cease-use lease expense
 
—

 
 
 
405

 
 
Cumulative adjustment to STI receivable
 
—

 
 
 
26,044

 
 
Adjusted Gross Profit
 
$
48,921

 
$
52,123

 
$
187,719

 
$
170,484

Adjusted Gross Margin
 
54.0
%
 
63.5
%
 
60.8
%
 
52.3
%
 
 
 
 
 
 
 
 
 
GAAP Net loss attributable to Synchronoss
 
$
(14,671
)
 
$
(101,909
)
 
$
(136,720
)
 
$
(243,748
)
Add / (Less):
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
5,222

 
7,216

 
22,250

 
22,038

Acquisition costs
 
—

 
38

 
(230
)
 
149

Restructuring and cease-use lease expense
 
17

 
4,539

 
7,446

 
8,425

Amortization expense
 
5,610

 
8,472

 
24,683

 
25,122

Non-GAAP Expenses attributable to Non-Controlling Interest
 
—

 
(523
)
 
(76
)
 
(1,269
)
One-Time Expenses due to Restatement, etc.
 
1,320

 
3,638

 
2,826

 
19,608

Cumulative adjustment to STI receivable
 
—

 
 
 
26,044

 
 
Income Tax Effect at Statutory Tax Rates
 
—

 
(2,308
)
 
—

 
(7,239
)
Non-GAAP Net loss from continuing operations attributable to Synchronoss
 
$
(2,502
)
 
$
(80,837
)
 
$
(53,777
)
 
$
(176,914
)
 
 
 
 
 
 
 
 
 
Diluted Non-GAAP Net loss from continuing operations per share
 
$
(0.06
)
 
$
(2.04
)
 
$
(1.32
)
 
$
(4.39
)
 
 
 
 
 
 
 
 
 
Weighted shares outstanding - Basic
 
41,085

 
39,612

 
40,694

 
40,277








SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

 
 
Three Months Ended
 
Twelve Months Ended
 
 
Dec 31, 2018
 
Mar 31, 2019
 
Jun 30, 2019
 
Sep 30, 2019
 
Dec 31, 2019
 
Dec 31, 2019
 
Dec 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to Synchronoss
 
$
(101,909
)
 
$
(27,587
)
 
$
(25,030
)
 
$
(69,432
)
 
$
(14,671
)
 
$
(136,720
)
 
$
(243,748
)
Add / (Less):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and cease-use lease expense
 
3,950

 
740

 
474

 
6,215

 
17

 
7,446

 
12,375

Depreciation and amortization
 
47,324

 
20,143

 
20,269

 
18,508

 
18,116

 
77,036

 
117,654

Interest income
 
(252
)
 
(189
)
 
(299
)
 
(228
)
 
(542
)
 
(1,258
)
 
(7,770
)
Interest Expense
 
976

 
585

 
463

 
203

 
104

 
1,355

 
4,911

Gain on Extinguishment of debt
 
(1,760
)
 
(387
)
 
(430
)
 
(5
)
 
—

 
(822
)
 
(1,760
)
Other Income (expense), net
 
65,737

 
(463
)
 
24

 
422

 
(7,372
)
 
(7,389
)
 
74,917

Equity method investment loss
 
28,671

 
1,243

 
376

 
—

 
—

 
1,619

 
28,600

Provision (benefit) for income taxes
 
(16,290
)
 
(1,391
)
 
(1,844
)
 
9,849

 
(4,446
)
 
2,168

 
(17,894
)
Net (loss) income attributable to noncontrolling interests
 
(6,715
)
 
313

 
593

 
25

 
194

 
1,125

 
(8,837
)
Preferred dividend
 
7,517

 
7,537

 
7,859

 
8,194

 
8,544

 
32,134

 
25,593

Stock-based compensation expense
 
5,566

 
5,554

 
5,474

 
6,000

 
5,222

 
22,250

 
27,604

Acquisition costs
 
109

 
(188
)
 
(42
)
 
—

 
—

 
(230
)
 
258

Cumulative adjustment to STI receivable
 
 
 
 
 
 
 
26,044

 
—

 
26,044

 
 
One-Time Expenses due to Restatement, etc.
 
800

 
720

 
782

 
4

 
1,320

 
2,826

 
20,408

Net income from discontinued operations, net of taxes
 
(18,288
)
 
—

 
—

 
—

 
—

 
—

 
(18,288
)
Adjusted EBITDA (non-GAAP)
 
$
15,436

 
$
6,630

 
$
8,669

 
$
5,799

 
$
6,486

 
$
27,584

 
$
14,023



 
 
Three Months Ended Dec 31,
 
Twelve Months Ended Dec 31,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Net Cash (used in) provided by operating activities
 
$
20,004

 
$
29,293

 
$
31,843

 
$
(31,369
)
Add / (Less):
 
 
 
 
 
 
 
 
Capitalized software
 
(3,719
)
 
(3,360
)
 
(13,008
)
 
(14,372
)
Property and equipment
 
(1,106
)
 
(3,091
)
 
(8,183
)
 
(11,656
)
Free Cashflow
 
$
15,179

 
$
22,842

 
$
10,652

 
$
(57,397
)
Add: One-Time Expenses due to Restatement, etc.
 
1,320

 
800

 
2,826

 
20,408

Adjusted Free Cashflow
 
$
16,499

 
$
23,642

 
$
13,478

 
$
(36,989
)