Press Releases

Press Releases

RetailMeNot, Inc. Announces Second Quarter 2016 Financial Results

- Consolidated net revenues of $64.2 million

- GAAP net loss of $0.5 million; non-GAAP net income of $4.9 million

- GAAP EPS of $(0.01); non-GAAP EPS of $0.10

- Adjusted EBITDA of $9.5 million; adjusted EBITDA margins of 15%

Aug 2, 2016

AUSTIN, Texas, Aug. 2, 2016 /PRNewswire/ -- RetailMeNot, Inc. (NASDAQ:SALE), a leading digital savings destination connecting consumers with retailers, restaurants and brands, both online and in-store, today announced its financial results for the second quarter ended June 30, 2016.  In addition to this release, the company has also provided a prepared remarks document, both of which can be accessed on the Investor Relations section of our website.

RetailMeNot, Inc.

"We are pleased with our overall second quarter performance. Our core segment grew year over year and we continue to see strong growth in our in-store and ads businesses," said Cotter Cunningham, CEO & Founder, RetailMeNot, Inc.  "We believe we have momentum and a set of initiatives for the second half of 2016 which should deliver audience growth through new content, an enhanced user experience and overall broader, savings-oriented messaging."

Second Quarter Financial Results Highlights and Key Operating Metrics

(All comparisons are made to the second quarter of 2015 unless otherwise noted.  Amounts may not compute due to rounding.)

With the acquisition of GiftCard Zen completed in the second quarter of 2016, RetailMeNot, Inc. is providing financial and operating results for subsequent periods in two separate operating segments, with one representing the "core" RetailMeNot business and the other representing the "gift card" business. 

For our core segment, in addition to total net revenues, we are providing segment operating income, or SOI, results and guidance, as we believe this to be an important financial metric to evaluate the operating performance of this business. SOI is defined as operating income of the core business segment plus depreciation, amortization of intangible assets, stock-based compensation expense, third-party acquisition-related costs and other operating expenses (including non-cash impairments and compensation arrangements entered into in connection with acquisitions).

For our gift card segment we are providing net revenue and gross profit results and guidance, as we believe these to be important financial metrics to evaluate the operating performance of this business. We define gift card segment net revenues as the gross market value of the gift cards sold, net of returns.  Gross profit represents the difference between net revenues less the cost of the gift card sold, including adjustments for shipping and chargebacks.

We are also providing results and guidance combining the results of both segments on a consolidated basis.

  • Core Segment
    • Total net revenues of $53.5 million, up 1%.
      • In-store & advertising net revenues were up 37%, representing 25% of total net revenues.
      • Mobile online transaction net revenues were up 18%, representing 11% of total net revenues.
      •  Desktop online transaction net revenues declined 11%, representing 65% of total net revenues.
    • Segment operating income was $9.8 million, representing SOI margins of 18%.
    • Total website visits were 152.0 million, down 7%.
      • Mobile visits in the quarter increased 1.5% to 67.8 million, or 45% of total visits.
      • Desktop visits in the quarter declined 13% to 84.3 million.
  • Mobile unique visitors grew 2% to 18.8 million.

 

  • Gift Card Segment
    • Net revenues were $10.7 million.
    • Gross profit was $0.8 million, representing gross profit margins of 8%.

 

  • Consolidated Results (Core + Gift Card Segments)
    • Net revenues grew 21% to $64.2 million.
    • Net revenues from international markets were $11.5 million, with international net revenues representing 18% and 21% of consolidated and core segment total net revenues, respectively.
    • GAAP net loss was $0.5 million, compared to GAAP net loss of $1.6 million.
    • Non-GAAP net income was $4.9 million, compared to non-GAAP net income of $5.0 million.
    • GAAP EPS was a loss of $(0.01) per share, based on 48.8 million fully-diluted, weighted-average shares outstanding, compared to a loss of $(0.03) per share, based on 53.5 million fully-diluted, weighted-average shares outstanding.
    • Non-GAAP EPS was $0.10 per share, based on 49.6 million fully-diluted, weighted-average shares outstanding, compared to $0.09 per share, based on 54.7 million fully-diluted, weighted-average shares outstanding.
    • Adjusted EBITDA was $9.5 million, representing adjusted EBITDA margins of 15%, compared to adjusted EBITDA of $10.6 million, or adjusted EBITDA margins of 20%.

BUSINESS OUTLOOK

(All comparisons are made to the third quarter or full year of 2015, respectively, unless otherwise noted.  Amounts may not compute due to rounding.)      

Third Quarter 2016 (ending September 30, 2016)

With respect to our core segment, we expect:

  • Total net revenues to be in the range of $49.5 to $54.5 million, reflecting a decline of 1% at the mid-point.
  • Segment operating income to be in the range of $6.5 to $10.5 million, representing SOI margins of 16.3% at the midpoint.

With respect to our gift card segment, we expect:

  • Net revenues to be in the range of $12.0 to $15.0 million.
  • Gross profit to be in the range of $600 to $750 thousand, or gross profit margins of 5% at the midpoint.

On a consolidated basis (core + gift card segments), we expect:

  • Net revenues to be in the range of $61.5 to $69.5 million.
  • Adjusted EBITDA to be in the range of $5.0 to $9.0 million, or adjusted EBITDA margins of 11.2% at the midpoint.

Full Year 2016 (ending December 31, 2016)

With respect to the core segment, we expect:

  • Total net revenues to be in the range of $232.0 to $245.0 million, reflecting a decline of 4% at the mid-point.
  • Segment operating income to be in the range of $52.0 to $63.0 million, representing SOI margins of 24% at the midpoint.

With respect to the gift card segment, we expect:

  • Net revenues to be in the range of $43.0 to $49.0 million.
  • Gross profit to be in the range of $2.4 to $2.7 million, or gross profit margins of 5.6% at the midpoint.

On a consolidated basis, we expect:

  • Net revenues to be in the range of $275.0 to $294.0 million.
  • Adjusted EBITDA to be in the range of $50.0 to $61.0 million, or adjusted EBITDA margins of 19.5% at the midpoint.

The above statements are based on current expectations and actual results may differ materially as explained under the caption "Forward-looking Statements" below.  Information about RetailMeNot's use of non-GAAP financial measures, including adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, is provided below under the caption "Use of Non-GAAP Financial Measures."

Quarterly Conference Call

RetailMeNot will host a webcast to discuss its second quarter financial results and its third quarter and 2016 business outlook today at 7:00 a.m. Central Time (8:00 a.m. Eastern Time). 

A live webcast of the conference call can be accessed within the investor relations section of the RetailMeNot website at http://investor.retailmenot.com.  This webcast will contain forward-looking statements and other material information regarding the company's financial and operating results.

Following completion of the call, a replay of the call will be available beginning at 9:30 a.m. Eastern Time on August 2, 2016.  To listen to the telephone replay, call (877) 344-7529 within the US, or (412) 317-0088 if calling internationally.  Access Code 10088841. 

RetailMeNot uses its investor relations website (http://investor.retailmenot.com) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the investor relations website, in addition to following press releases, SEC filings, public conference calls and webcasts.

About RetailMeNot, Inc. 

RetailMeNot (http://www.retailmenot.com/corp/) is a leading digital savings destination connecting consumers with retailers, restaurants and brands, both online and in-store. The company enables consumers across the globe to find hundreds of thousands of digital offers to save money while they shop or dine out. During the 12 months ended June 30, 2016, RetailMeNot, Inc. experienced over 688 million visits to its websites. It also averaged 18.8 million mobile unique visitors per month during the three months ended June 30, 2016. RetailMeNot, Inc. estimates that approximately $4.8 billion in retailer sales were attributable to consumer transactions from paid digital offers in its marketplace in 2015, more than $600 million of which were attributable to its in-store solution. The RetailMeNot, Inc. portfolio of websites and mobile applications includes RetailMeNot.com in the United States; RetailMeNot.ca in Canada; VoucherCodes.co.uk in the United Kingdom; retailmenot.de in Germany; Actiepagina.nl in the Netherlands; ma-reduc.com and Poulpeo.com in France; RetailMeNot.es in Spain, RetailMeNot.it in Italy, RetailMeNot.pl in Poland and GiftCardZen.com and Deals2Buy.com in North America. RetailMeNot, Inc. is listed on the NASDAQ stock exchange under the ticker symbol "SALE." Investors interested in learning more about the company can visit http://investor.retailmenot.com.

Key Operating Metrics

Visits. RetailMeNot defines a visit as a group of interactions that take place on one of RetailMeNot Inc.'s websites from computers, smartphones, tablets or other mobile devices within a given time frame as measured by Google Analytics, a product that provides digital marketing intelligence. A single visit can contain multiple page views, events, social interactions and e-commerce transactions. A single visitor can open multiple visits. Visits can occur on the same day, or over several days, weeks or months. As soon as one visit ends, there is then an opportunity to start a new visit. A visit ends either through the passage of time or a campaign change, with a campaign generally meaning arrival via search engine, referring site or campaign-tagged information. A visit ends through passage of time either after 30 minutes of inactivity or at midnight Pacific Time. A visit ends through a campaign change if a visitor arrives via one campaign or source, leaves the site, and then returns via another campaign or source.  Visits for the period do not include interactions through our mobile applications or interactions with giftcardzen.com.

Mobile Unique Visitors.  This amount represents the average number of mobile unique visitors per month for the three month period ended June 30, 2016.  RetailMeNot counts each of the following as a mobile unique visitor: (i) the first time a specific mobile device accesses one of our mobile applications during a calendar month, and (ii) the first time a specific mobile device accesses one of our mobile websites using a specific web browser during a calendar month. If a mobile device accesses more than one of our mobile websites or mobile applications in a single calendar month, the first access to each such mobile website or mobile application is counted as a mobile unique visitor as they are tracked separately for each mobile domain. We measure mobile unique visitors with a combination of internal data sources and Google Analytics data.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this document includes references to adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, each of which is a non-GAAP financial measure.  For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the tables provided below in this release.

RetailMeNot has not reconciled adjusted EBITDA guidance to net income guidance because we do not provide guidance for third party acquisition-related costs or other operating expense, net interest income/expense, other non-operating income and expenses and income taxes, net of any foreign exchange income or expense. As these items cannot be reasonably predicted at this time, we are unable to provide such guidance. Accordingly a reconciliation to net income guidance is not available without unreasonable effort.

RetailMeNot defines adjusted EBITDA as net income (loss) plus depreciation, amortization of intangible assets, stock-based compensation expense, third-party acquisition-related costs, other operating expenses (including non-cash impairments and compensation arrangements entered into in connection with acquisitions), net interest expense, other non-operating income or expense (including net foreign exchange gains and losses) and income taxes.

RetailMeNot discloses adjusted EBITDA on a consolidated basis because it is a key measure used by RetailMeNot and its board of directors to understand and evaluate RetailMeNot's financial and operating performance, establish budgets and operational goals and as an element in determining compensation of certain of its executives.  RetailMeNot believes adjusted EBITDA facilitates period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in this non-GAAP financial measure and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. 

RetailMeNot's presentation of non-GAAP net income and non-GAAP net income per share excludes the impact of amortization of purchased intangible assets, stock-based compensation expense, third party acquisition-related costs, other non-cash operating expenses (including non-cash impairments and compensation arrangements entered into in connection with acquisitions) and income taxes, net of the tax effect of the adjustments above. These measures are not key metrics used by RetailMeNot or its board of directors to measure financial or operating performance or otherwise manage the business. However, RetailMeNot provides non-GAAP net income and non-GAAP net income per share as supplemental information for investors, as they facilitate period-to-period comparisons of operations that could otherwise be masked by the effect of the expenses that RetailMeNot excludes in these non-GAAP financial measures and facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. 

Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share have limitations as analytical tools, and you should not consider these measures in isolation or as substitutes for analysis of RetailMeNot's results as reported under GAAP. Because of these limitations, you should consider adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share alongside other financial performance measures, including various cash flow metrics, operating income (loss), net income (loss) and RetailMeNot's other GAAP results.

Forward-looking Statements               

This release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding RetailMeNot's strategy, future operations, future financial position, future net revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would" and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future net revenues, adjusted EBITDA, segment operating income, gross profit and other financial performance, visits, mobile unique visitors, e-mail subscribers, other consumer engagement metrics, new product and content offerings and other statements about management's beliefs, intentions or goals. RetailMeNot may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on RetailMeNot's forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, (1) RetailMeNot's ability to attract visitors to its websites from search engines, to attract and retain users and to increase users' engagement with its solutions; (2) RetailMeNot's ability to monetize digital offers through its mobile solutions; (3) RetailMeNot's ability to attract and retain paid retailers and maintain its relationships with performance marketing networks and suppliers of gift cards; (4) RetailMeNot's ability to manage the growth in scope and complexity of its business, including accurately planning and forecasting its financial results; (5) RetailMeNot's ability to obtain and maintain high quality digital offer content and maintain the positive perception of its brands; (6) the competitive environment for RetailMeNot's business; (7) changes in consumer sentiment regarding RetailMeNot's use of cookies; (8) RetailMeNot's need to manage regulatory, tax and litigation risks, including regulations related to gift cards and imposing sales tax on e-commerce or m-commerce; (9) RetailMeNot's ability to use and protect consumer data and to protect its intellectual property; (10) RetailMeNot's ability to manage international business uncertainties; (11) the impact and integration of current and future acquisitions; and (12) other risks and potential factors that could affect RetailMeNot's business and financial results identified in RetailMeNot's filings with the Securities and Exchange Commission (the "SEC"), including its quarterly report on Form 10-Q filed with the SEC on May  3, 2016.  Additional information will also be set forth in RetailMeNot's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that RetailMeNot makes with the SEC. RetailMeNot does not intend or undertake any duty to release publicly any updates or revisions to any forward-looking statements contained herein.

Investor Contacts
Michael Magaro
RetailMeNot, Inc.
mmagaro@rmn.com
(512) 777-2899

Anne Bawden
RetailMeNot, Inc.
abawden@rmn.com
(415) 200-8654

Media Contact 
Michelle Skupin
RetailMeNot, Inc. 
mskupin@rmn.com
(808) 224-3215

 

RetailMeNot, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)










Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015









Net revenues

$ 64,250


$  53,180


$  118,899


$ 113,564

Cost of net revenues (1)

14,905


5,176


20,105


10,522

Gross profit

49,345


48,004


98,794


103,042

Operating expenses:








Product development (1)

13,000


13,072


25,611


26,392

Sales and marketing (1)

24,165


22,636


47,490


44,277

General and administrative (1)

10,833


9,712


21,059


19,282

Amortization of purchased intangible assets

2,519


2,739


4,473


5,365

Other operating expenses

2,462


763


3,294


1,528

Total operating expenses

52,979


48,922


101,927


96,844

Income (loss) from operations

(3,634)


(918)


(3,133)


6,198









Other income (expense):








Interest expense, net

(571)


(492)


(1,171)


(913)

Other income (expense), net

442


(154)


564


(397)









Income (loss) before income taxes

(3,763)


(1,564)


(3,740)


4,888

Benefit from (provision for) income taxes

3,292


(27)


3,233


(2,420)









Net income (loss)

$      (471)


$  (1,591)


$        (507)


$      2,468









Net income (loss) per share:








 Basic 

$    (0.01)


$    (0.03)


$       (0.01)


$        0.05

 Diluted 

$    (0.01)


$    (0.03)


$       (0.01)


$        0.04









Weighted average number of common shares used in computing net income (loss) per share:








 Basic 

48,828


53,482


49,008


53,754

 Diluted 

48,828


53,482


49,008


54,891









 

RetailMeNot, Inc.

Condensed Consolidated Statements of Operations (continued)

(Unaudited, in thousands)










Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015

 (1)  Includes stock-based compensation as follows: 








Cost of net revenues

$       445


$        530


$          940


$      1,119

Product development

1,933


2,074


4,029


4,333

Sales and marketing

1,100


1,525


2,577


2,947

General and administrative

2,575


2,415


5,089


4,958

 Total 

$    6,053


$    6,544


$    12,635


$    13,357

 

RetailMeNot, Inc.

Reconciliation of Adjusted EBITDA

(Unaudited, in thousands)










Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015









 Net income (loss) 

$      (471)


$  (1,591)


$        (507)


$      2,468

 Depreciation and amortization 

4,557


4,253


8,507


8,179

 Stock-based compensation expense 

6,053


6,544


12,635


13,357

 Third party acquisition-related costs 

64


-


488


55

 Other operating expenses 

2,462


763


3,294


1,528

 Interest expense, net 

571


492


1,171


913

 Other (income) expense, net 

(442)


154


(564)


397

 (Benefit from) provision for income taxes 

(3,292)


27


(3,233)


2,420









 Adjusted EBITDA 

$    9,502


$ 10,642


$    21,791


$    29,317


























 


RetailMeNot, Inc.

Reconciliation of Non-GAAP Net Income and  Non-GAAP Diluted EPS

(Unaudited, in thousands, except per share data and percentage rates)


















Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015

GAAP Income (loss) before income taxes

$  (3,763)


$  (1,564)


(3,740)


4,888

GAAP Benefit from (provision for) income taxes

3,292


(27)


3,233


(2,420)

GAAP Net income (loss)

$      (471)


$  (1,591)


$        (507)


$      2,468

Non-GAAP adjustments to net income (loss):








 Amortization of purchased intangibles 

2,519


2,739


4,473


5,365

 Stock-based compensation expense 

6,053


6,544


12,635


13,357

 Third party acquisition-related costs 

64


-


488


55

 Other operating expenses 

2,462


763


3,294


1,528

 Less: Tax effect of adjustments above 

(5,767)


(3,467)


(9,235)


(7,011)

 Total non-GAAP net income 

$    4,860


$    4,988


$    11,148


$    15,762









Diluted net income (loss) per share:








GAAP  

$    (0.01)


$    (0.03)


$       (0.01)


$        0.04

Non-GAAP

$      0.10


$      0.09


$         0.22


$        0.29









Shares used in non-GAAP diluted EPS calculation:








Weighted-average shares outstanding used in calculating GAAP diluted EPS

48,828


53,482


49,008


54,891

Additional dilutive securities for non-GAAP diluted EPS

801


1,219


901


-

Weighted-average shares outstanding used in calculating non-GAAP diluted EPS

49,629


54,701


49,909


54,891









Reconciliation of non-GAAP effective tax rate:








GAAP Effective tax rate

87.5%


-1.7%


86.4%


49.5%

Tax effect of non-GAAP adjustments to net income

-53.8%


42.9%


-51.4%


-12.1%

Non-GAAP effective tax rate

33.7%


41.2%


35.0%


37.4%

 

RetailMeNot, Inc.

Segment Results

(Unaudited, in thousands)










Three Months Ended June 30, 2016


Core


Gift Cards


Unallocated


Total









Net revenues

$   53,509


$    10,741


$                    -


$   64,250

Cost of net revenues

4,387


9,927


591


14,905

Gross profit

49,122


814


(591)


49,345

Operating expenses:








Product development 

9,546


254


3,200


13,000

Sales and marketing 

22,386


355


1,424


24,165

General and administrative 

7,379


514


2,940


10,833

Amortization of purchased intangible assets

-


-


2,519


2,519

Other operating expenses

-


-


2,462


2,462

Total operating expenses

39,311


1,123


12,545


52,979

Income (loss) from operations

$   9,811


$      (309)


$        (13,136)


$   (3,634)


















Three Months Ended June 30, 2015


Core


Gift Cards


Unallocated


Total









Net revenues

$    53,180


$               -


$                    -


$    53,180

Cost of net revenues

4,523


-


653


5,176

Gross profit

48,657


-


(653)


48,004

Operating expenses:








Product development 

10,206


-


2,866


13,072

Sales and marketing 

20,780


-


1,856


22,636

General and administrative 

7,029


-


2,683


9,712

Amortization of purchased intangible assets

-


-


2,739


2,739

Other operating expenses

-


-


763


763

Total operating expenses

38,015


-


10,907


48,922

Income (loss) from operations

$   10,642


-


$   (11,560)


$   (918)


















Six Months Ended June 30, 2016


Core


Gift Cards


Unallocated


Total









Net revenues

$ 108,158


$    10,741


$                    -


$ 118,899

Cost of net revenues

8,955


9,927


1,223


20,105

Gross profit

99,203


814


(1,223)


98,794

Operating expenses:








Product development 

18,847


254


6,510


25,611

Sales and marketing 

43,893


355


3,242


47,490

General and administrative 

14,363


514


6,182


21,059

Amortization of purchased intangible assets

-


-


4,473


4,473

Other operating expenses

-


-


3,294


3,294

Total operating expenses

77,103


1,123


23,701


101,927

Income (loss) from operations

$ 22,100


$      (309)


$        (24,924)


$ (3,133)


















Six Months Ended June 30, 2015


Core


Gift Cards


Unallocated


Total









Net revenues

$ 113,564


$               -


$                    -


$ 113,564

Cost of net revenues

9,151


-


1,371


10,522

Gross profit

104,413


-


(1,371)


103,042

Operating expenses:








Product development 

20,604


-


5,788


26,392

Sales and marketing 

40,692


-


3,585


44,277

General and administrative 

13,800


-


5,482


19,282

Amortization of purchased intangible assets

-


-


5,365


5,365

Other operating expenses

-


-


1,528


1,528

Total operating expenses

75,096


-


21,748


96,844

Income (loss) from operations

$   29,317


-


$       (23,119)


$   6,198

 

RetailMeNot, Inc.

Reconciliation of Unallocated Expenses

(Unaudited, in thousands)










Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015









Depreciation expense

$     2,038


$     1,514


$      4,034


$     2,814

Stock-based compensation expense

6,053


6,544


12,635


13,357

Third party acquisition-related costs

64


-


488


55

Amortization of purchased intangible assets

2,519


2,739


4,473


5,365

Other operating expenses

2,462


763


3,294


1,528

Total Unallocated expenses

$   13,136


$   11,560


$   24,924


$   23,119

RetailMeNot, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)


 As of June 30, 


 As of December 31, 


2016


2015

 Assets 




 Current assets: 




 Cash and cash equivalents 

$            244,409


$                         259,769

 Accounts receivable, net 

42,247


67,504

 Inventory 

922


-

 Prepaids and other current assets, net 

13,048


9,959

 Total current assets 

300,626


337,232





 Property and equipment, net 

21,605


21,382

 Intangible assets, net 

61,076


61,245

 Goodwill 

192,371


174,725

 Other assets, net 

6,758


8,040

 Total assets 

$           582,436


$                       602,624





 Liabilities and Stockholders' Equity 




 Current liabilities: 




 Accounts payable 

$                  7,687


$                              8,713

 Accrued compensation and benefits 

12,008


10,136

 Accrued expenses and other current liabilities 

8,008


7,155

 Income taxes payable 

2,225


5,109

 Current maturities of long term debt 

10,000


10,000

 Total current liabilities 

39,928


41,113





 Deferred tax liability--noncurrent 

2,825


1,498

 Long term debt 

55,876


60,872

 Other noncurrent liabilities 

8,455


7,752

 Total liabilities 

107,084


111,235





 Stockholders' equity: 




 Common stock 

49


51

 Additional paid-in capital 

480,380


495,151

 Accumulated other comprehensive loss 

(5,640)


(4,883)

 Retained earnings 

563


1,070

 Total stockholders' equity 

475,352


491,389

 Total liabilities and stockholders' equity 

$           582,436


$                       602,624

 

RetailMeNot, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)










Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015

 Cash flows from operating activities: 








Net income (loss)

$          (471)


$      (1,591)


$       (507)


$     2,468

 Adjustments to reconcile net income (loss) to cash provided by
 operating activities: 








Depreciation and amortization expense

4,557


4,253


8,507


8,179

Stock based compensation expense

6,053


6,544


12,635


13,357

Excess income tax benefit from stock-based compensation

(15)


(552)


(33)


(1,307)

Deferred income tax expense (benefit) 

(227)


(1,416)


2,002


282

Non-cash interest expense

106


101


208


203

Impairment of assets

-


-


834


-

Amortization of deferred compensation

2,458


768


2,458


1,536

Other non-cash (gains) losses, net

(485)


114


(2,009)


1,152

Provision for doubtful accounts receivable

108


(35)


257


(287)

Changes in operating assets and liabilities:








Accounts receivable, net

612


7,819


24,164


30,961

Inventory

(55)


-


(55)


-

Prepaid expenses and other current assets, net

(3,401)


(887)


(5,517)


(1,730)

Accounts payable

1,522


780


(1,402)


1,156

Accrued expenses and other current liabilities

4,069


(2,077)


(1,508)


(12,161)

Other noncurrent assets and liabilities

2


198


1,151


832

 Net cash provided by operating activities 

14,833


14,019


$41,185


$44,641

 Cash flows from investing activities: 








Payments for acquisition of businesses, net of acquired cash

(21,279)


-


(21,279)


-

Proceeds from sale of property and equipment

8


5


10


5

Purchase of other assets

(2)


(4,300)


(44)


(4,302)

Purchase of non-marketable investment

-


(4,000)


-


(4,000)

Purchase of property and equipment

(2,969)


(3,991)


(5,124)


(6,323)

 Net cash used in investing activities 

(24,242)


(12,286)


(26,437)


(14,620)

 Cash flows from financing activities: 








Proceeds from notes payable, net of issuance costs

-


-


-


29,950

Payments on notes payable

(2,500)


(2,500)


(5,000)


(2,500)

Payment of offering costs related to public offerings

-


-


-


-

Excess income tax benefit from stock-based compensation and other

15


552


33


1,307

Payments of principal on capital lease arrangements

-


(4)


-


(7)

Payments for repurchase of common stock

-


(2,719)


(23,770)


(27,192)

Proceeds from issuance of common stock, net of tax payments related to net share settlement of equity awards

(139)


2,073


(1,190)


4,466

 Net cash provided by (used in) financing activities 

(2,624)


(2,598)


(29,927)


6,024

 Effect of foreign currency exchange rate on cash 

(467)


367


(181)


(710)

 Change in cash and cash equivalents 

(12,500)


(498)


(15,360)


35,335

 Cash and cash equivalents, beginning of period 

256,909


280,315


259,769


244,482









 Cash and cash equivalents, end of period 

$ 244,409


$ 279,817


$244,409


$279,817

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-- RMNSALE-F –

 

SOURCE RetailMeNot, Inc.


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