SAN ANTONIO, Jan. 29, 2020 /PRNewswire/ -- GlobalSCAPE,
Inc. (NYSE American: GSB), a worldwide leader in the secure
movement and integration of data, today announced financial results
for its fiscal fourth quarter and year ended December 31, 2019.
Revenue for the fourth quarter of 2019 was $10.5 million, a 13% increase compared to
$9.3 million for the fourth quarter
of 2018. Revenue for 2019 totaled $40.3
million, an increase of 17% compared to revenue of
$34.4 million for full year 2018. The
Company's topline performance represents the highest quarterly and
annual revenue the Company has ever recorded.
Additionally, Robert Alpert,
Chairman of the Board of Directors, was appointed Chief Executive
Officer. He previously served as Interim CEO.
"I am honored to lead the GlobalSCAPE team as CEO and I'm
thrilled with our fourth quarter and full year performance, as it
caps a record setting year for the Company," Alpert said. "By
focusing on our clients, we fulfilled our mission to increase free
cash flow and drive shareholder value. Not only did we demonstrate
remarkable operational excellence, but we strengthened our market
position as a leader in the managed file transfer (MFT) industry.
In 2019, we developed the finest version of our flagship product
which directly addresses privacy mandates such as the European
Union's General Data Protection Regulation (GDPR), Canada's Personal Information Protection and
Electronic Documents Act (PIPEDA), and the California Consumer
Privacy Act (CCPA). Enhanced File Transfer™ (EFT) 2020, released on
January 15, 2020, is the industry's
best enterprise managed file transfer solution. It uniquely
addresses the shift occurring in our industry as privacy joins
security as a framing element. We are well-positioned to grow the
business in 2020."
"One item investors should consider is that fourth quarter and
full year financial results are affected by costs incurred related
to December's special dividend and a special company-wide bonus
paid to all employees," Alpert continued. "For the fourth quarter,
we reported $3.6 million in net
income, $4.4 million in EBITDA and
$0.19 in earnings per fully diluted
share. When taking into account the costs previously mentioned, we
would have reported $4.9 million in
net income, $5.8 million in EBITDA
and $0.26 in earnings per fully
diluted share. For the full year ended 2019, the Company reported
$13.3 million in net income,
$19.7 million in EBITDA and
$0.72 per fully diluted share in
earnings. However, when taking into account the costs, we would
have reported $15.0 million in net
income, $21.6 million in EBITDA and
$0.81 per fully diluted share in
earnings."
Fourth Quarter and Full Year 2019 Financial Highlights
- Revenues for the fourth quarter of 2019 were $10.5 million, compared to $9.3 million for the fourth quarter of 2018, an
increase of 13%.
- Revenues for the year ended December 31,
2019 were $40.3 million,
compared to $34.4 million for fiscal
year 2018, an increase of 17%.
- Net Income for the fourth quarter of 2019 was $3.6 million, compared to net income of
$3.0 million in the fourth quarter of
2018, an increase of 20%. When taking into account the costs
previously mentioned, net income for the fourth quarter of 2019
would have been $4.9 million, an
increase of 63%.
- Net income for the year ended December
31, 2019 was $13.3 million,
compared to $3.7 million for 2018, an
increase of 259%. When taking into account the costs previously
mentioned, net income for the year ended December 31, 2019 would have been $15.0 million, an increase of 305%.
- Adjusted EBITDA for the fourth quarter of 2019 was $4.4 million, compared to $4.6 million for the fourth quarter of 2018, a
decrease of 4%. When taking into account the costs previously
mentioned, adjusted EBITDA for the fourth quarter of 2019 would
have been $5.8 million, an increase
of 26%.
- Adjusted EBITDA for the year ended December 31, 2019 was $19.7 million, compared to $8.2 million for 2018, an increase of 140%. When
taking into account the costs previously mentioned, adjusted EBITDA
for the year ended December 31, 2019
would have been $21.6 million, an
increase of 163%.
- Income per diluted share for the fourth quarter of 2019 was
$0.19, compared to $0.17 for the fourth quarter of 2018, an increase
of 12%. When taking into account the costs previously mentioned,
income per diluted share for the fourth quarter of 2019 would have
been $0.26, an increase of 53%.
- Income per diluted share for the full year 2019 was
$0.72, compared to $0.17 for full year 2018, an increase of 324%.
When taking into account the costs previously mentioned, income per
diluted share for the full year 2019 would have been $0.81, an increase of 376%.
- Cash balance as of December 31,
2019 was $4.7 million,
compared to $9.2 million as of
December 31, 2018.
Fourth Quarter Business Highlights
- November 18th,
announced a five-year, $55 million
senior secured credit facility with a syndicate of banks led by
J.P. Morgan.
- November 18th,
announced authorization to repurchase up to $5 million of the Company's outstanding shares.
This is in addition to the approximately $640,000 remaining under the previously
authorized repurchase program.
- December 2nd, paid a
dividend of $0.015 per share of
common stock.
- December 5th, paid a
one-time special dividend of $3.35
per share of common stock.
- December 18th,
announced that we were named as a category leader in the managed
file transfer category in G2's Winter Report for its Enhanced File
Transfer™ (EFT™) software. G2 is the world's leading business
solutions review website.
About GlobalSCAPE
GlobalSCAPE, Inc. (NYSE American:
GSB) is a pioneer in securing and automating the movement and
integration of data seamlessly in, around and outside your
business, between applications, people and places, in and out of
the cloud. GlobalSCAPE provides cloud services that automate your
work, secure your data, and integrate your applications – while
giving visibility to those who need it. GlobalSCAPE makes business
flow brilliantly. Visit www.globalscape.com.
Safe Harbor Statement
This press release 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. The words "would," "exceed," "should," "anticipates,"
"believe," "expect," and variations of such words and similar
expressions identify forward-looking statements, but their absence
does not mean that a statement is not a forward-looking statement.
These forward-looking statements are based upon the Company's
current expectations and are subject to a number of risks,
uncertainties and assumptions. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. Among the important
factors that could cause the actual results of the operations or
financial condition of the Company to differ materially from those
expressed or implied by forward-looking statements include, but are
not limited to, the overall level of consumer spending on our
products; general economic conditions and other factors affecting
consumer confidence; disruption and volatility in the global
capital and credit markets; the Company's ability to protect
patents, trademarks and other intellectual property rights; any
breaches of, or interruptions in, our information systems; legal,
regulatory, political and economic risks in international markets;
the results of our reduction in force; the discovery of additional
information relevant to the internal investigation; the possibility
that additional errors relevant to the recently completed
restatement may be identified; pending litigation and other
proceedings and the possibility of further legal proceedings
adverse to the Company resulting from the restatement or related
matters; the costs associated with the restatement and the
investigation, pending litigation and other proceedings and
possible future legal proceedings; and our decreased "public float"
(the number of shares owned by non-affiliate stockholders and
available for trading in the securities markets) as a result of
share repurchases. More information on potential risks and other
factors that could affect the Company's financial results is
included from time to time in the Company's public reports filed
with the SEC, including the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
All forward-looking statements included in this press release are
based upon information available to the Company as of the date of
this press release and speak only as of the date hereof.
Use of Non-GAAP Measures
The Company uses
Adjusted EBITDA (Earnings Before Interest, Taxes, Total Other
Income/Expense, Depreciation, Amortization, and Share-Based
Compensation Expense) to provide a view of income and expenses that
is supplemental and secondary to the primary assessment of net
income (loss) as presented in the condensed consolidated statement
of operations and comprehensive income.
Adjusted EBITDA is not a measure of financial performance under
GAAP. It should not be considered as a substitute for net income
(loss) presented on our condensed consolidated statement of
operations and comprehensive income. Adjusted EBITDA has
limitations as an analytical tool and when assessing our operating
performance. Adjusted EBITDA should not be considered in isolation
or without a simultaneous reading and consideration of our
financial statements prepared in accordance with GAAP. A
reconciliation of net income to Adjusted EBITDA is provided at the
end of this release.
|
Year Ended
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net Income
|
$ 13,267
|
|
$ 3,654
|
Add (subtract) items
to determine Adjusted EBITDA:
|
|
|
|
Income tax
expense
|
1,965
|
|
1,227
|
Interest (income)
expense, net
|
265
|
|
(86)
|
Depreciation and
amortization:
|
|
|
|
Total depreciation
and amortization
|
1,746
|
|
2,173
|
Share-based
compensation expense
|
2,415
|
|
1,269
|
Adjusted
EBITDA
|
$ 19,658
|
|
$ 8,237
|
GlobalSCAPE Investor Relations Contact:
ir@GlobalSCAPE.com
GlobalSCAPE Public Relations Contact:
Zintel Public Relations
Matthew Zintel
matthew.zintel@zintelpr.com
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SOURCE GlobalSCAPE, Inc.