Sign in or join
or
Join us
Didn't receive confirmation?
Thanks for registering. Please click on the confirm link in the email we just sent you.
Continue
Reset password
Resend confirmation
Post as Guest
+
Be part of the collaborative process!

Add a note by highlighting text or Replying to an existing note.

Okay
+
Be part of the collaborative process!

Add a note by highlighting text or Replying to an existing note.

Okay
EX-99.1

Exhibit 99.1

Fleetmatics Announces First Quarter 2014 Financial Results

 

  •   Approximately 472,000 total subscribed vehicles attained

 

  •   Total revenue of $51.9 million, up 35% year-over-year

 

  •   GAAP EPS of $0.09; non-GAAP adjusted EPS of $0.19

 

  •   Adjusted EBITDA of $13.8 million, up 25% year-over-year

 

  •   Generated operating cash flow of $20.3 million, free cash flow of $11.7 million

Dublin, Ireland and Boston, Massachusetts, April 30, 2014 — Fleetmatics Group PLC (NYSE: FLTX), a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as software-as-a-service (SaaS), today announced financial results for its first quarter ended March 31, 2014.

“We are pleased with our strong start to the year, which was highlighted by continued growing demand for our comprehensive software-as-a-service fleet management solution,” stated Jim Travers, Chairman and Chief Executive Officer of Fleetmatics. “We believe that Fleetmatics remains well positioned to increase market share worldwide driven by our continued market penetration in North America and the UK, as well as launching our solution into our new markets of Australia, Mainland Europe and Mexico. We are also excited to have released our new software platform, which brings highly differentiated and industry-first functionality to our service-oriented local fleet customers.”

First Quarter 2014 Financial Highlights

 

  •   Revenue: Total revenue for the first quarter was $51.9 million, an increase of 35.1% compared to $38.4 million for the first quarter of 2013.

 

  •   Gross Profit: GAAP gross profit for the first quarter was $39.2 million, compared to $28.4 million for the first quarter of 2013. GAAP gross margin was 75.4% compared to 74.0% for the same period in 2013. Non-GAAP gross profit, which excludes share-based compensation and amortization of intangible assets, was $39.6 million for the quarter compared to $28.5 million in the year ago period. Non-GAAP gross margin was 76.2% for the first quarter of 2014, compared to 74.2% during the same period last year.

 

  •   Operating Income: GAAP operating income for the first quarter was $5.3 million, compared to $5.8 million for the first quarter of 2013. Non-GAAP operating income, which excludes share-based compensation, amortization of intangible assets and other items as defined in “Non-GAAP Financial Measures”, was $9.1 million, compared to $7.9 million for the first quarter of 2013.


  •   Net Income: GAAP net income for the first quarter was $3.6 million, compared to $3.0 million for the same period last year. GAAP net income per share for the first quarter was $0.09 based on 38.4 million weighted-average diluted shares outstanding, compared to $0.08 for the same period last year, based on 36.2 million weighted-average diluted shares outstanding, for the same period last year.

Non-GAAP adjusted earnings, which excludes share-based compensation, amortization of intangible assets and other items as defined in “Non-GAAP Financial Measures”, was $7.2 million for the first quarter, compared to $5.4 million for the first quarter of 2013. Non-GAAP adjusted earnings per share for the first quarter was $0.19 per share based on 38.4 million weighted-average diluted shares outstanding compared to $0.15 per share, and based on 36.2 million weighted-average diluted shares outstanding, for the same period last year.

 

  •   Adjusted EBITDA: Adjusted EBITDA for the first quarter was $13.8 million, an increase of 24.6% compared to $11.1 million for the first quarter of 2013. Adjusted EBITDA margin was 26.5% for the first quarter of 2014, compared to a 28.8% margin for the same period last year. Adjusted EBITDA is defined as net income (loss) plus (benefit) provision for income taxes; interest (income) expense, net; foreign currency transaction (gain) loss, net; depreciation and amortization of property and equipment; amortization of capitalized in-vehicle devices owned by customers; amortization of intangible assets; share-based compensation; and other items as defined in “Non-GAAP Financial Measures.”

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

 

  •   Balance Sheet: As of March 31, 2014, Fleetmatics had cash of $148.2 million, an increase of $11.0 million since December 31, 2013.

During the first quarter of 2014, the Company generated $20.3 million in net cash from operations and invested $8.6 million in purchases of property and equipment and


capitalization of internally developed software, resulting in free cash flow of positive $11.7 million. During the first quarter of 2013, the Company generated $12.1 million in net cash from operations and invested $8.9 million in capital expenditures and capitalization of software, resulting in free cash flow of positive $3.1 million.

First Quarter 2014 Operating Highlights

 

  •   Fleetmatics ended the first quarter of 2014 with approximately 472,000 active vehicles under subscription, up 32.6% compared to over 356,000 during the first quarter of 2013.

Quarterly net churn during the first quarter of 2014 was 1.3%, the same as the first quarter of 2013. An explanation of this measure is included below under the heading “Non-GAAP Financial Measures.”

Financial Outlook

As of April 30, 2014, Fleetmatics is providing guidance for the second quarter of 2014 and full year 2014 as follows:

Second Quarter 2014 Guidance: Total revenue is expected to be in the range of $54.5 million to $55.4 million. Adjusted EBITDA is expected to be in the range of $13.1 million to $14.1 million. Non-GAAP adjusted earnings per share is expected to be in the range of $0.15 to $0.17 based on approximately 38.4 million weighted-average diluted shares outstanding.

Full Year 2014 Guidance: Total revenue is expected to be in the range of $228.0 million to $230.0 million, which represents growth of 29.1% year-over-year at the midpoint. Adjusted EBITDA is expected to be in the range of $61.0 million to $62.5 million. Non-GAAP diluted adjusted earnings per share is expected to be in the range of $0.80 to $0.85 based on approximately 38.6 million weighted-average diluted shares outstanding.

Quarterly Conference Call

Fleetmatics will host a conference call today at 5:00 p.m. EDT to discuss the Company’s financial results for the first quarter 2014, its business outlook and other matters. To access this call, dial +1-877-681-3370 (United States), or +1-719-325-2356 (international), with conference ID #1792811. A live webcast of this conference call will also be available on the investor relations portion of the Company’s website at ir.fleetmatics.com, and a replay will be archived on the website as well. A replay of this conference call will also be available through May 14, 2014, by dialing +1-877-870-5176 (United States), or +1-858-384-5517 (international). The recording access code is #1792811.


About Fleetmatics Group PLC

Fleetmatics Group PLC is a leading global provider of mobile workforce solutions for service-based businesses of all sizes delivered as software-as-a-service (SaaS). Our solutions enable businesses to meet the challenges associated with managing local fleets, and improve the productivity of their mobile workforces, by extracting actionable business intelligence from real-time and historical vehicle and driver behavioral data.

Fleetmatics Group’s intuitive, cost-effective Web-based solutions provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage, and other insights into their mobile workforce, enabling them to reduce operating and capital costs, as well as increase revenue. An integrated, full-featured mobile workforce management product provides additional efficiencies related to job management by empowering the field worker and speeding the job completion process from quote through payment. As of March 31, 2014, Fleetmatics served approximately 23,000 customers, with about 472,000 subscribed vehicles worldwide.

To learn more about Fleetmatics, visit www.fleetmatics.com.

Investor Contact:

ICR Inc. on behalf of Fleetmatics

Seth Potter, (646) 277-1230

fleetmatics@icrinc.com


Non-GAAP Financial Measures

In this release, Fleetmatics’ non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP adjusted earnings, non-GAAP diluted adjusted earnings per share, adjusted EBITDA and adjusted EBITDA margin are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of results of operations. Non-GAAP gross profit and non-GAAP gross margin exclude share-based compensation and amortization of intangible assets. Non-GAAP operating income, non-GAAP adjusted earnings and non-GAAP diluted adjusted earnings per share exclude share-based compensation; amortization of intangible assets; foreign currency transaction (gain) loss; certain non-recurring litigation and settlement costs; certain non-recurring secondary public offering costs; acquisition-related transaction costs; the tax effects related to these items, and the tax reserve component of the income tax provision.

Adjusted EBITDA is defined as net income (loss) plus (benefit) provision for income taxes; interest (income) expense, net; foreign currency transaction (gain) loss, net; depreciation and amortization of property and equipment; amortization of capitalized in-vehicle devices owned by customers; amortization of intangible assets; share-based compensation; certain non-recurring litigation and settlement costs; certain non-recurring secondary public offering costs; and acquisition-related transaction costs.

We calculate our net churn for a period by dividing (i) the number of vehicles under subscription added from existing customers less vehicles under subscription lost from existing customers over that period by (ii) the total vehicles under subscription at the beginning of that period. A positive net churn in each period means we added more vehicles from existing customers than we lost from those customers during the particular period.

Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company’s financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

The Company’s earnings press releases containing such non-GAAP reconciliations can be found on the Investors section of the Company’s web site at ir.fleetmatics.com.


Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our future market share, product innovation, expansion into new geographic markets and our expected financial results for the second quarter of 2014 and the full year of 2014. These forward-looking statements include, but are not limited to: plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks associated with our ability to effectively and efficiently attract, sell to and retain SMB customers; our ability to attract customers on a cost-effective basis, our dependence on various lead generation programs; our ability to retain and increase sales to our existing customers; our ability to successfully complete and integrate acquisitions; expectations regarding the widespread adoption of fleet management solutions; our ability to expand the sales of our products to customers located outside the U.S.; our ability to continue to compete in a highly fragmented market and the risk of future competitors by way of acquisition or otherwise; keeping up with the rapid technological change required to remain competitive in our industry; and the impact of adverse economic conditions on information technology spending by SMB business, collection of our accounts receivable and other risks set forth under the caption “Risk Factors” in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 17, 2014, as updated by our subsequently filed quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.


FLEETMATICS GROUP PLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2014     2013  

Subscription revenue

   $ 51,897      $ 38,419   

Cost of subscription revenue

     12,746        9,997   
  

 

 

   

 

 

 

Gross profit

     39,151        28,422   
  

 

 

   

 

 

 

Operating expenses:

    

Sales and marketing

     18,362        12,601   

Research and development

     4,177        2,094   

General and administrative

     11,272        7,940   
  

 

 

   

 

 

 

Total operating expenses

     33,811        22,635   
  

 

 

   

 

 

 

Income from operations

     5,340        5,787   

Interest income (expense), net

     (163     (366

Foreign currency transaction gain (loss), net

     (48     (356

Other income (expense), net

     41        —    
  

 

 

   

 

 

 

Income before income taxes

     5,170        5,065   

Provision for income taxes

     1,542        2,105   
  

 

 

   

 

 

 

Net income attributable to ordinary shareholders

   $ 3,628      $ 2,960   
  

 

 

   

 

 

 

Net income per share attributable to ordinary shareholders:

    

Basic

   $ 0.10      $ 0.09   
  

 

 

   

 

 

 

Diluted

   $ 0.09      $ 0.08   
  

 

 

   

 

 

 

Weighted average ordinary shares outstanding:

    

Basic

     37,129,314        34,612,057   
  

 

 

   

 

 

 

Diluted

     38,366,942        36,244,647   
  

 

 

   

 

 

 


FLEETMATICS GROUP PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     March 31,
2014
     December 31,
2013
 
     (Unaudited)         

Assets

     

Current assets:

     

Cash

   $ 148,192       $ 137,171   

Restricted cash

     —           64   

Accounts receivable, net of allowances of $2,129 and $1,395 at March 31, 2014 and December 31, 2013, respectively

     18,524         20,240   

Deferred tax assets

     6,724         6,505   

Prepaid expenses and other current assets

     14,310         13,675   
  

 

 

    

 

 

 

Total current assets

     187,750         177,655   

Property and equipment, net

     66,247         61,732   

Goodwill

     28,706         28,706   

Intangible assets, net

     7,169         7,765   

Deferred tax assets, net

     993         1,282   

Other assets

     10,030         9,399   
  

 

 

    

 

 

 

Total assets

   $ 300,895       $ 286,539   
  

 

 

    

 

 

 

Liabilities and Shareholders’ Equity

     

Current liabilities:

     

Accounts payable

   $ 8,622       $ 9,952   

Accrued expenses and other current liabilities

     20,151         14,855   

Deferred revenue

     24,708         21,163   
  

 

 

    

 

 

 

Total current liabilities

     53,481         45,970   
  

 

 

    

 

 

 

Deferred revenue

     9,777         9,029   

Accrued income taxes

     2,357         2,094   

Long-term debt

     23,750         23,750   

Other liabilities

     4,331         3,888   
  

 

 

    

 

 

 

Total liabilities

     93,696         84,731   
  

 

 

    

 

 

 

Total shareholders’ equity

     207,199         201,808   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 300,895       $ 286,539   
  

 

 

    

 

 

 


FLEETMATICS GROUP PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2014     2013  

Cash flows from operating activities:

    

Net income

   $ 3,628      $ 2,960   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization of property and equipment

     4,303        2,992   

Amortization of capitalized in-vehicle devices owned by customers

     286        213   

Amortization of intangible assets

     594        467   

Amortization of deferred commissions, other deferred costs and debt discount

     1,773        1,442   

Provision for (benefit from) deferred taxes

     78        21   

Provision for accounts receivable allowances

     790        382   

Unrealized foreign currency transaction (gain) loss

     20        346   

Loss on disposal of property and equipment and other assets

     417        826   

Share-based compensation

     3,004        604   

Changes in operating assets and liabilities:

    

Accounts receivable

     913        (1,773

Prepaid expenses and other current and long-term assets

     (2,114     (1,232

Accounts payable, accrued expenses and other current liabilities

     2,112        1,429   

Excess tax benefits from share-based awards

     (96     —    

Accrued income taxes

     263        345   

Deferred revenue

     4,287        3,055   
  

 

 

   

 

 

 

Net cash provided by operating activities

     20,258        12,077   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (8,115     (8,530

Capitalization of internal-use software costs

     (416     (400

Proceeds from sale of property and equipment

     41        —    

Net decrease in restricted cash

     64        —    
  

 

 

   

 

 

 

Net cash used in investing activities

     (8,426     (8,930
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from (payments of) Term Loan

     —         (313

Proceeds from exercise of stock options

     770        207   

Taxes paid related to net share settlement of equity awards

     (1,368     —    

Excess tax benefits from share-based awards

     96        —    

Payments of previously accrued initial public offering costs

     —         (948

Payments of capital lease obligations

     (156     (90

Payments of notes payable

     (45     —    
  

 

 

   

 

 

 

Net cash provided by financing activities

     (703     (1,144
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     (108     (72
  

 

 

   

 

 

 

Net increase in cash

     11,021        1,931   

Cash, beginning of period

     137,171        100,087   
  

 

 

   

 

 

 

Cash, end of period

   $ 148,192      $ 102,018   
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

    

Cash paid for interest

   $ 175      $ 329   

Cash paid (refunds received), net for income taxes

   $ (370   $ (339

Supplemental disclosure of non-cash financing and investing activities:

    

Acquisition of property and equipment and software through capital leases and note payable

   $ 1,315      $ —     

Additions to property and equipment included in accounts payable or accrued expenses at the balance sheet dates

   $ 2,025      $ 1,470   

Initial public offering costs included in accounts payable or accrued expenses at the balance sheet dates

   $ —       $ 406   


RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND OPERATING INCOME

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2014     2013  

Gross Profit GAAP

   $ 39,151      $ 28,422   

Share-based compensation

     147        42   

Amortization of intangible assets

     258        52   
  

 

 

   

 

 

 

Gross Profit Non-GAAP

   $ 39,556      $ 28,516   
  

 

 

   

 

 

 

Subscription revenue

   $ 51,897      $ 38,419   

Gross Margin Percentages:

    

GAAP

     75.4     74.0

Non-GAAP

     76.2     74.2

 

     Three Months Ended
March 31,
 
     2014      2013  

Operating income GAAP

   $ 5,340       $ 5,787   

Share-based compensation

     3,004         604   

Amortization of intangible assets

     594         467   

Secondary public offering costs

     —           636   

Litigation and settlements

     120         360  

Acquisition-related transaction costs

     89         —    
  

 

 

    

 

 

 

Operating income Non-GAAP

   $ 9,147       $ 7,854   
  

 

 

    

 

 

 


RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2014     2013  

Reconciliation of Net Income to Adjusted EBITDA:

    

Net income

   $ 3,628      $ 2,960   

Provision for income taxes

     1,542        2,105   

Interest (income) expense, net

     163        366   

Foreign currency transaction (gain) loss, net

     48        356   

Depreciation and amortization of property and equipment

     4,303        2,992   

Amortization of capitalized in-vehicle devices owned by customers

     286        213   

Amortization of intangible assets

     594        467   

Share-based compensation

     3,004        604   

Secondary public offering costs

     —         636   

Litigation and settlements

     120        360  

Acquisition-related transaction costs

     89        —    
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 13,777      $ 11,059   
  

 

 

   

 

 

 

Subscription revenue

   $ 51,897      $ 38,419   

Adjusted EBITDA margin

     26.5     28.8

 


RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS AND EPS

(In thousands, except share and per share data)

(Unaudited)

 

     Three Months Ended
March 31,
 
     2014     2013  

Net income

   $ 3,628      $ 2,960   

Amortization of intangible assets

     594        467   

Share-based compensation

     3,004        604   

Foreign currency transaction (gain) loss, net

     48        356   

Secondary public offering costs

     —         636  

Litigation and settlements

     120        360  

Acquisition-related transaction costs

     89        —    

Tax effect of non-GAAP adjustments above at 15%

     (578     (363

Tax reserve component of income tax provision

     263        429   
  

 

 

   

 

 

 

Adjusted earnings

   $ 7,168      $ 5,449   
  

 

 

   

 

 

 

Weighted average ordinary shares outstanding — diluted

     38,366,942        36,244,647   

Non-GAAP adjusted EPS

   $ 0.19      $ 0.15   
  

 

 

   

 

 

 


FLEETMATICS GROUP PLC

RECONCILIATION TO NON-GAAP INCOME

(In thousands)

(Unaudited)

 

     Three Months Ended March 31,  
     2014     2013  

Cost of subscription revenue

    

Share-based compensation

   $ 147      $ 42   

Amortization of intangible assets

     258        52   
  

 

 

   

 

 

 

Subtotal cost of subscription revenue

     405        94   

Sales and marketing

    

Share-based compensation

     1,173        243   

Amortization of intangible assets

     336        415   
  

 

 

   

 

 

 

Subtotal sales and marketing

     1,509        658   

Research and development

    

Share-based compensation

     397        52   
  

 

 

   

 

 

 

Subtotal research and development

     397        52   

General and administrative

    

Share-based compensation

     1,287        267   

Secondary public offering costs

     —          636   

Litigation and settlements

     120        360   

Acquisition-related transaction costs

     89        —     
  

 

 

   

 

 

 

Subtotal general and administrative

     1,496        1,263   

Foreign currency transaction (gain) loss, net

     48        356   

Tax effect of non-GAAP adjustments, net of tax reserve component of income tax provision

     (315     66   
  

 

 

   

 

 

 

Total expense add-backs

   $ 3,540      $ 2,489   
  

 

 

   

 

 

 
Close
The content provided on Two Margins is for information purposes only and does not constitute investment and/or legal advice. Crypto currencies are highly volatile, risky assets and no information on this site, whether generated by Two Margins or external contributors, is a substitute for your own research. Full Risk Disclosure and Disclaimer here.