WESTLAKE, Texas, Nov. 5,
2015 /PRNewswire/ – Solera Holdings, Inc. (NYSE: SLH), a leading
provider of risk and asset management software and services to the
automotive and property marketplace, including the global P&C
insurance industry, today reported results for the first quarter of
fiscal year 2016.
Results for the First Quarter Ended September 30, 2015:
GAAP Results
- Revenue for the first quarter was $313.3
million, an 11.9% increase over the prior year first quarter
revenue of $280.1 million. On a
constant currency basis, revenue for the first quarter increased by
approximately 21.9% over the prior year first quarter revenue;
- Net loss attributable to Solera Holdings, Inc. for the first
quarter was $66.9 million, as
compared to the prior year first quarter net income attributable to
Solera Holdings, Inc. of $12.4
million. The net loss reported for the first quarter is due
to certain non-recurring charges incurred during the quarter as
described below;
- Diluted net loss attributable to Solera Holdings, Inc. per
common share for the first quarter was $1.00, as compared to the prior year first
quarter diluted net income attributable to Solera Holdings, Inc.
per common share of $0.18. The
diluted net loss per common share reported for the first quarter is
due to the net loss attributable to Solera Holdings, Inc. reported
for the same period.
"We are pleased to report a solid start to fiscal year 2016
with first quarter revenue of $313
million, driven by total growth of 21.9% on a constant
currency basis and continued acceleration in organic growth, both
in-line with our expectations," said Tony Aquila, Solera's founder,
Chairman and Chief Executive Officer.
Non-GAAP Results
- Adjusted EBITDA for the first quarter was $109.8 million, a 3.6% decrease versus the prior
year first quarter Adjusted EBITDA of $113.9
million. On a constant currency basis, Adjusted EBITDA for
the first quarter increased by 9.7% over the prior year first
quarter Adjusted EBITDA. After excluding the one-time, special cash
award of $10.0 million approved by
our Compensation Committee and paid to our CEO during the
quarter (the "Special Cash Award"), Adjusted EBITDA for the first
quarter increased by 5.2% over the prior year first quarter. On a
constant currency basis and excluding the Special Cash Award,
Adjusted EBITDA for the first quarter increased by 18.5% over the
prior year first quarter Adjusted EBITDA;
- Adjusted EBITDA margin for the first quarter was 35.0%, a 561
basis point decrease versus the prior year first quarter Adjusted
EBITDA margin of 40.7%. On a constant currency basis, Adjusted
EBITDA margin for the first quarter was 36.6%, a 406 basis point
decrease versus the prior year first quarter Adjusted EBITDA
margin. After excluding the Special Cash Award, Adjusted EBITDA
margin for the first quarter was 38.2%, a 242 basis points decrease
versus the prior year first quarter. On a constant currency basis
and excluding the Special Cash Award, Adjusted EBITDA margin for
the first quarter was 39.5%, a 113 basis points decrease versus the
prior year first quarter Adjusted EBITDA;
- Adjusted Net Income for the first quarter was $41.5 million, a 21.9% decrease versus the prior
year first quarter Adjusted Net Income of $53.1 million; after excluding the Special Cash
Award, Adjusted Net Income for the first quarter was $49.1 million, a 7.5% decrease versus the prior
year first quarter;
- Cash EPS for the first quarter was $0.62, a 19.5% decrease versus the prior year
first quarter Cash EPS of $0.77.
After excluding the Special Cash Award, Cash EPS for the first
quarter was $0.73, a 5.2% decrease
versus the prior year first quarter.
Business Statistics
- EMEA revenues were $133.7 million
for the first quarter, representing a 1.6% decrease versus the
prior year first quarter. On a constant currency basis, EMEA
revenues for the first quarter increased 14.3% over the prior year
first quarter. After excluding the revenues of CAP Automotive
("CAP"), EMEA revenues decreased 10.3% versus the prior year first
quarter and, on a constant currency basis, increased 4.9% over the
prior year first quarter.
- Americas revenues were $179.7
million for the first quarter, representing a 24.6% increase
over the prior year first quarter. On a constant currency basis,
Americas revenues for the first quarter increased 29.0% over the
prior year first quarter. After excluding the revenues of the
Insurance and Services Division of Pittsburgh Glass Works, LLC
("I&S"), Americas revenues increased 22.6% over the prior year
first quarter, and on a constant currency basis, increased 27.4%
over the prior year first quarter;
- Revenues from insurance company customers were $113.2 million for the first quarter,
representing a 6.8% increase over the prior year first quarter. On
a constant currency basis, revenues from insurance company
customers for the first quarter increased 17.1% over the prior year
first quarter;
- Revenues from collision repair facility customers were
$68.7 million for the first quarter,
representing a 9.2% decrease versus the prior year first quarter.
On a constant currency basis, revenues from collision repair
facility customers for the first quarter increased 4.3% over the
prior year first quarter;
- Revenues from independent assessors were $15.9 million for the first quarter, representing
an 18.3% decrease versus the prior year first quarter. On a
constant currency basis, revenues from independent assessors for
the first quarter decreased 0.4% versus the prior year first
quarter;
- Revenues from service, repair and maintenance facilities
customers, were $55.8 million for the
first quarter, representing an increase of 78.0% over the prior
year first quarter;
- Revenues from automotive recyclers, salvage, dealerships and
other customers were $59.7 million
for the first quarter, representing a 25.3% increase over the prior
year first quarter. On a constant currency basis, revenues from
automotive recyclers, salvage, dealerships and other customers for
the first quarter increased 32.3% over the prior year first
quarter. The increase in revenues from automotive recyclers,
salvage, dealerships and other customers is primarily due to
incremental revenue contributions from recently-acquired
businesses.
Other Information
All percentage amounts and ratios
were calculated using the underlying data in whole dollars. We
measure constant currency, or the effects on our results that are
attributable to foreign currency changes, by measuring the
incremental difference between translating the prior period and the
current results at the monthly average rates for the same period
from the prior year.
Foreign Currency:
Exchange rates between most of the major foreign currencies we
use to transact our business and the U.S. dollar have fluctuated
significantly over the last few years and we expect that they will
continue to fluctuate. The majority of our revenues and costs are
denominated in Euros, Pound Sterling, Swiss francs, Canadian
dollars and other international currencies. The following table
provides the average quarterly exchange rates for the Euro and
Pound Sterling since the beginning of fiscal year 2015:
|
Period
|
Average Euro-to-U.S. Dollar Exchange
Rate
|
|
Average Pound
Sterling-to-U.S. Dollar Exchange Rate
|
|
Quarter ended
September 30, 2014
|
1.33
|
|
1.67
|
|
Quarter ended
December 31, 2014
|
1.25
|
|
1.58
|
|
Quarter ended March
31, 2015
|
1.13
|
|
1.52
|
|
Quarter ended June
30, 2015
|
1.11
|
|
1.53
|
|
Quarter ended
September 30, 2015
|
1.11
|
|
1.55
|
During three months ended September 30, 2015, as compared
to the three months ended September 30, 2014, the U.S. dollar
strengthened against many of the foreign currencies we use to
transact our business. The average U.S. dollar strengthened versus
the Euro by 16.1% and the Pound Sterling by 7.2%, which decreased
our associated revenues and expenses during fiscal year 2016. A
hypothetical 5% increase or decrease in the U.S. dollar versus
other currencies in which we transact our business would have
resulted in an increase or decrease, as the case may be, to our
revenues of $7.7 million during the
first quarter ended September 30, 2015.
Net Loss Attributable to Solera Holdings, Inc.:
The net loss attributable to Solera
Holding, Inc. reported for the first quarter of fiscal year
2016 was primarily due to increased expenses related to a decrease
in the fair value of our derivative financial instruments, an
increase in interest expense due to additional senior unsecured
notes issued in November 2014 and
July 2015, and professional services
and related costs incurred in relation to the proposed acquisition
of Solera by Vista.
Quarterly Dividend:
Our Board of Directors approved the payment of a quarterly cash
dividend of $0.225 per share of
outstanding common stock and per outstanding restricted stock unit.
The dividends are payable on December 3, 2015 to stockholders
and restricted stock unit holders of record at the close of
business on November 19, 2015.
Earnings Conference Call:
Solera will release its financial results for the first quarter
ended September 30, 2015 on Thursday, November 5, 2015,
after the market close. A conference call will be hosted by Tony
Aquila, Solera's founder, Chairman and CEO, and Renato Giger, Solera's CFO, at 5:00 pm EDT that evening. The conference call
will be webcast live in listen-only mode and can be accessed by
visiting the Investor Center section of the Solera website at
www.solerainc.com. A live audio-cast will also be accessible to the
public by calling (855) 542-4213 or (412) 455-6065 from outside the
U.S. and providing the access code 69445789. Callers should dial in
approximately ten minutes before the call begins. For those unable
to participate in the live audio-cast, a replay will be available
until 11:59 p.m. EDT on
November 19, 2015. To access the replay, dial (855) 859-2056
or (404) 537-3406 from outside the U.S. and provide the access code
69445789.
|
|
SOLERA HOLDINGS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
2015
|
|
2014
|
|
Revenues
|
|
$
|
313,322
|
|
|
$
|
280,083
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Operating
expenses
|
|
88,787
|
|
|
68,532
|
|
|
Systems development
and programming costs
|
|
28,374
|
|
|
25,901
|
|
|
Total cost of
revenues (excluding depreciation and amortization)
|
|
117,161
|
|
|
94,433
|
|
|
Selling, general and
administrative expenses
|
|
92,977
|
|
|
81,877
|
|
|
Depreciation and
amortization
|
|
44,505
|
|
|
37,998
|
|
|
Restructuring
charges, asset impairments, and other costs associated with exit
and disposal activities
|
|
1,173
|
|
|
2,258
|
|
|
Acquisition and
related costs
|
|
28,017
|
|
|
11,352
|
|
|
Interest
expense
|
|
44,679
|
|
|
27,632
|
|
|
Other expense,
net
|
|
39,830
|
|
|
462
|
|
|
|
368,342
|
|
|
256,012
|
|
|
Income (loss) before
provision for income taxes
|
|
(55,020)
|
|
|
24,071
|
|
|
Income tax
provision
|
|
9,289
|
|
|
7,499
|
|
|
Net income
(loss)
|
|
(64,309)
|
|
|
16,572
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
2,560
|
|
|
4,208
|
|
|
Net income (loss)
attributable to Solera Holdings, Inc.
|
|
$
|
(66,869)
|
|
|
$
|
12,364
|
|
|
Net income (loss)
attributable to Solera Holdings, Inc. per common share:
|
|
|
|
|
|
Basic
|
|
$
|
(1.00)
|
|
|
$
|
0.18
|
|
|
Diluted
|
|
$
|
(1.00)
|
|
|
$
|
0.18
|
|
|
Dividends paid per
share
|
|
$
|
0.225
|
|
|
$
|
0.195
|
|
|
Weighted-average
shares used in the calculation of net income (loss) attributable to
Solera Holdings, Inc. per common share:
|
|
|
|
|
|
Basic
|
|
67,033
|
|
|
68,521
|
|
|
Diluted
|
|
67,033
|
|
|
69,037
|
|
|
|
SOLERA HOLDINGS,
INC.
RECONCILIATION TO
ADJUSTED EBITDA
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(In
thousands)
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
2015
|
|
2014
|
|
Net income
(loss)
|
|
$
|
(64,309)
|
|
|
$
|
16,572
|
|
|
Add: Income tax
provision
|
|
9,289
|
|
|
7,499
|
|
|
Net income (loss)
before income tax provision
|
|
(55,020)
|
|
|
24,071
|
|
|
Add: Depreciation and
amortization
|
|
44,505
|
|
|
37,998
|
|
|
Add: Restructuring
charges, asset impairments, and other costs associated with exit
and disposal activities
|
|
1,173
|
|
|
2,258
|
|
|
Add: Acquisition and
related costs
|
|
28,017
|
|
|
11,352
|
|
|
Add: Litigation
related recoveries
|
|
(1,386)
|
|
|
—
|
|
|
Add: Interest
expense
|
|
44,679
|
|
|
27,632
|
|
|
Add: Other expense,
net
|
|
39,830
|
|
|
462
|
|
|
Add: Stock-based
compensation expense
|
|
8,006
|
|
|
10,104
|
|
|
Adjusted
EBITDA
|
|
$
|
109,804
|
|
|
$
|
113,877
|
|
|
|
SOLERA HOLDINGS,
INC.
RECONCILIATION TO
ADJUSTED NET INCOME
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
2015
|
|
2014
|
|
Net income (loss)
attributable to Solera Holdings, Inc.
|
|
$
|
(66,869)
|
|
|
$
|
12,364
|
|
|
Add: Income tax
provision
|
|
9,289
|
|
|
7,499
|
|
|
Net income (loss)
attributable to Solera Holdings, Inc. before income tax
provision
|
|
(57,580)
|
|
|
19,863
|
|
|
Add: Amortization of
acquisition-related intangibles
|
|
32,087
|
|
|
27,515
|
|
|
Add: Restructuring
charges, asset impairments, and other costs associated with exit
and disposal activities
|
|
1,173
|
|
|
2,258
|
|
|
Add: Acquisition and
related costs
|
|
28,017
|
|
|
11,352
|
|
|
Add: Litigation
related recoveries
|
|
(1,386)
|
|
|
—
|
|
|
Add: Other expense,
net excluding interest income and realized gains (losses) on
derivative financial instruments (1)
|
|
44,291
|
|
|
678
|
|
|
Add: Stock-based
compensation expense
|
|
8,006
|
|
|
10,104
|
|
|
Adjusted Net Income
before income tax provision
|
|
54,608
|
|
|
71,770
|
|
|
Less: Assumed
provision for income taxes at 24% and 26%, respectively
|
|
(13,106)
|
|
|
(18,660)
|
|
|
Adjusted Net
Income
|
|
$
|
41,502
|
|
|
$
|
53,110
|
|
|
Cash EPS:
|
|
|
|
|
|
Basic
|
|
$
|
0.62
|
|
|
$
|
0.78
|
|
|
Diluted
|
|
$
|
0.62
|
|
|
$
|
0.77
|
|
|
Weighted-average
shares used in the calculation of Cash EPS:
|
|
|
|
|
|
Basic
|
|
67,033
|
|
|
68,521
|
|
|
Diluted
|
|
67,256
|
|
|
69,037
|
|
|
(1)
|
During the first
quarter of fiscal year 2016, we partially settled our foreign
exchange forward contract for a cash payment of $8.9 million. This
cash payment is excluded from the determination of Adjusted Net
Income and Cash EPS as it is of a nonrecurring nature. Settlement
of the remaining foreign exchange forward contract with a notional
amount of €235.8 million was extended to July 2016. As of the
settlement extension date, the unrealized loss on the remaining
outstanding notional amount was approximately $8.6 million.
This unrealized loss is also excluded from the determination of
Adjusted Net Income and Cash EPS consistent with our definition of
these non-GAAP financial measures.
|
|
|
SOLERA HOLDINGS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER
30, 2015 and JUNE 30, 2015
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
September 30,
2015
|
|
June 30,
2015
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
494,880
|
|
|
$
|
479,592
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of $5,591 and $6,114 at
September 30, 2015 and June 30, 2015, respectively
|
160,463
|
|
|
156,955
|
|
|
Other
receivables
|
29,118
|
|
|
21,234
|
|
|
Other current
assets
|
51,299
|
|
|
53,597
|
|
|
Deferred income tax
assets
|
9,585
|
|
|
12,878
|
|
|
Total current
assets
|
745,345
|
|
|
724,256
|
|
|
Property and
equipment, net
|
88,279
|
|
|
93,391
|
|
|
Goodwill
|
1,959,980
|
|
|
1,950,408
|
|
|
Intangible assets,
net
|
864,179
|
|
|
898,500
|
|
|
Other noncurrent
assets
|
79,577
|
|
|
70,330
|
|
|
Noncurrent deferred
income tax assets
|
17,311
|
|
|
15,745
|
|
|
Total
assets
|
$
|
3,754,671
|
|
|
$
|
3,752,630
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
45,521
|
|
|
$
|
44,239
|
|
|
Accrued expenses and
other current liabilities
|
283,319
|
|
|
266,861
|
|
|
Income taxes
payable
|
24,320
|
|
|
16,263
|
|
|
Deferred income tax
liabilities
|
13,785
|
|
|
9,077
|
|
|
Total current
liabilities
|
366,945
|
|
|
336,440
|
|
|
Long-term
debt
|
3,126,454
|
|
|
2,481,828
|
|
|
Other noncurrent
liabilities
|
107,367
|
|
|
73,799
|
|
|
Noncurrent deferred
income tax liabilities
|
164,698
|
|
|
176,316
|
|
|
Total
liabilities
|
3,765,464
|
|
|
3,068,383
|
|
|
Redeemable
noncontrolling interests (1)
|
85,700
|
|
|
445,552
|
|
|
Stockholders'
equity:
|
|
|
|
|
Solera Holdings, Inc.
stockholders' equity:
|
|
|
|
|
Common shares, $0.01
par value: 150,000 shares authorized; 67,088 and 66,985 issued
and outstanding as of September 30, 2015 and
June 30, 2015, respectively
|
331,759
|
|
|
579,602
|
|
|
Accumulated
deficit
|
(255,430)
|
|
|
(173,305)
|
|
|
Accumulated other
comprehensive loss
|
(184,385)
|
|
|
(178,474)
|
|
|
Total Solera
Holdings, Inc. stockholders' equity (deficit)
|
(108,056)
|
|
|
227,823
|
|
|
Noncontrolling
interests
|
11,563
|
|
|
10,872
|
|
|
Total stockholders'
equity (deficit)
|
(96,493)
|
|
|
238,695
|
|
|
Total liabilities and
stockholders' equity
|
$
|
3,754,671
|
|
|
$
|
3,752,630
|
|
|
(1)
|
The decrease in
redeemable noncontrolling interests is primarily attributable to
the acquisition of the remaining 50% of the equity interests in our
Service Repair Solutions, Inc. ("SRS") majority-owned subsidiary in
the first quarter of fiscal year 2016. After this acquisition, we
now own 100% of SRS. As a result, the redeemable noncontrolling
interests related to SRS was eliminated.
|
|
|
SOLERA HOLDINGS,
INC.
SELECTED STATEMENT
OF CASH FLOWS INFORMATION
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
2015
|
|
2014
|
|
Net cash provided by
operating activities
|
$
|
17,349
|
|
|
$
|
63,695
|
|
|
Net cash used in
investing activities
|
(19,686)
|
|
|
(327,488)
|
|
|
Net cash provided by
(used in) financing activities
|
7,575
|
|
|
(58,560)
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
10,050
|
|
|
(14,441)
|
|
|
Net change in cash
and cash equivalents
|
15,288
|
|
|
(336,794)
|
|
|
Cash and cash
equivalents, beginning of period
|
479,592
|
|
|
837,751
|
|
|
Cash and cash
equivalents, end of period
|
$
|
494,880
|
|
|
$
|
500,957
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid for
interest
|
$
|
331
|
|
|
$
|
—
|
|
|
Cash paid for income
taxes
|
$
|
10,714
|
|
|
$
|
6,382
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
Capital assets
financed
|
$
|
147
|
|
|
$
|
1,373
|
|
|
Accrued contingent
purchase consideration
|
$
|
1,759
|
|
|
$
|
11,946
|
|
|
|
SOLERA HOLDINGS,
INC.
SUPPLEMENTAL
REVENUE GROWTH INFORMATION
(Unaudited)
|
|
|
The tables below set
forth the following supplemental information about revenue growth
for our (i) consolidated group, (ii) Americas reporting segment and
(iii) EMEA reporting segment:
|
|
|
Q1
FY16
|
|
Q4
FY15
|
|
Q1
FY15
|
|
Sequential
Change
|
|
Year/Year
Change
|
|
As Reported Total
Revenue Growth
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Total
|
11.9%
|
|
10.9%
|
|
28.5%
|
|
1.0%
|
|
(16.6)%
|
|
Americas
|
24.6%
|
|
21.3%
|
|
50.1%
|
|
3.3%
|
|
(25.5)%
|
|
EMEA
|
(1.6)%
|
|
0.7%
|
|
11.4%
|
|
(2.3)%
|
|
(13.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY16
|
|
Q4
FY15
|
|
Q3
FY15
|
|
Q2
FY15
|
|
Q1
FY15
|
|
As Reported Total
Revenue Growth
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Total
|
11.9%
|
|
10.9%
|
|
7.1%
|
|
18.3%
|
|
28.5%
|
|
Americas
|
24.6%
|
|
21.3%
|
|
15.4%
|
|
33.2%
|
|
50.1%
|
|
EMEA
|
(1.6)%
|
|
0.7%
|
|
(1.0)%
|
|
5.4%
|
|
11.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY16
|
|
Q4
FY15
|
|
Q1
FY15
|
|
Sequential
Change
|
|
Year/Year
Change
|
|
Constant Currency
Total Revenue Growth (1)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Total
|
21.9%
|
|
22.5%
|
|
28.1%
|
|
(0.6)%
|
|
(6.2)%
|
|
Americas
|
29.0%
|
|
24.9%
|
|
50.8%
|
|
4.1%
|
|
(21.8)%
|
|
EMEA
|
14.3%
|
|
20.1%
|
|
10.2%
|
|
(5.8)%
|
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY16
|
|
Q4
FY15
|
|
Q1
FY15
|
|
Sequential
Change
|
|
Year/Year
Change
|
|
Constant Currency
Organic Revenue Growth (2)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Total
|
9.1%
|
|
7.5%
|
|
4.7%
|
|
1.6%
|
|
4.4%
|
|
Americas
|
13.7%
|
|
7.5%
|
|
3.1%
|
|
6.2%
|
|
10.6%
|
|
EMEA
|
4.1%
|
|
7.5%
|
|
6.0%
|
|
(3.4)%
|
|
(1.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY16
|
|
Q4
FY15
|
|
Q3
FY15
|
|
Q2
FY15
|
|
Q1
FY15
|
|
Constant Currency
Total Revenue Growth (1)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Total
|
21.9%
|
|
22.5%
|
|
17.2%
|
|
23.8%
|
|
28.1%
|
|
Americas
|
29.0%
|
|
24.9%
|
|
17.9%
|
|
35.1%
|
|
50.8%
|
|
EMEA
|
14.3%
|
|
20.1%
|
|
16.5%
|
|
14.0%
|
|
10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY16
|
|
Q4
FY15
|
|
Q3
FY15
|
|
Q2
FY15
|
|
Q1
FY15
|
|
Constant Currency
Organic Revenue Growth (2)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Revenue
|
|
Total
|
9.1%
|
|
7.5%
|
|
5.4%
|
|
7.9%
|
|
4.7%
|
|
Americas
|
13.7%
|
|
7.5%
|
|
6.1%
|
|
10.6%
|
|
3.1%
|
|
EMEA
|
4.1%
|
|
7.5%
|
|
4.6%
|
|
5.6%
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Constant Currency
Total Revenue Growth represents As Reported Total Revenue Growth
for each period converted into U.S. dollars at the average exchange
rates in effect for the same period from the prior year.
|
|
(2)
|
Constant Currency
Organic Revenue Growth represents Constant Currency Total Revenue
Growth excluding the incremental revenue growth from businesses
acquired since the same period from the prior year.
|
About Solera:
Solera is a leading provider of risk and asset management
software and services to the automotive and property marketplace,
including the global P&C insurance industry. Solera is active
in over 75 countries across six continents. The Solera companies
include: Audatex in the United
States, Canada, and in more
than 60 additional countries; HPI, CarweB and CAP Automotive in the
United Kingdom; Informex in
Belgium and Greece; Sidexa in France; ABZ and Market Scan in the Netherlands; Hollander serving the North
American recycling market; AUTOonline providing salvage disposition
in a number of European and Latin American countries; IMS providing
medical review services; Explore providing data and analytics to
United States property and
casualty insurers; Identifix, providing solutions for the service,
maintenance and repair ("SMR") market; AutoPoint and DMEautomotive,
providing data-driven tools to enhance SMR experiences and
facilitate customer retention and marketing solutions for the
retail automotive industry; and I&S, a provider of software and
business management tools, third-party claims administration, first
notice of loss and network management services to the U.S. auto and
property repair industries, specializing in glass claims. For more
information, please refer to the Solera's website at
www.solera.com.
Cautions about Forward-Looking Statements:
This press release contains forward-looking statements,
including statements about: our expected dividend payment and the
expected payment date; our expectations and beliefs regarding
changes in foreign currency exchange rates; and historical results
or performance that may suggest trends for our business. These
statements are based on our current expectations, estimates and
assumptions and are subject to many risks, uncertainties and
unknown future events that could cause actual results to differ
materially. Actual results may differ materially from those set
forth in this press release due to the risks and uncertainties
inherent in our business, including, without limitation:
unpredictability and volatility of our operating results, which
include the volatility associated with foreign currency exchange
risks, our sales cycle, seasonality, global economic conditions,
acquisitions and other factors; risks associated with and possible
negative consequences of acquisitions, joint ventures, divestitures
and similar transactions, including regulatory matters and our
ability to successfully integrate our acquired businesses; risks
associated with a diversified business; successful integration of
acquired businesses that operate in industries outside of our core
market; rapid technology changes in our industries, which could
affect customer decisions regarding the purchase of our software
and services; development of claims processing and other products
and services in areas other than automobile insurance, including
our "digital garage" and risk and asset management platform; our
relationship with insurance company customers as they continue
global expansion; revenue growth resulting from the launch of new
software and services, including our "digital garage" and risk and
asset management platform; effects of competition on our software
and service pricing and our business; time and expenses associated
with customers switching from competitive software and services to
our software and services; risks associated with operating in
multiple countries; effects of changes in or violations by us or
our customers of government regulations; our ability to obtain
additional financing as necessary to support our operations,
including Mission 2020 ($2 billion in
revenue and $840 million in Adjusted
EBITDA by June 30, 2020); use of cash
to service our debt and effects on our business of restrictive
covenants in our bond indentures; our reliance on third-party
information for our software and services; our dependence on a
limited number of key personnel; costs and possible future losses
or impairments relating to our acquisitions; the financial impact
of future significant restructuring and severance charges; the
impact of changes in our tax provision (benefit) or effective tax
rate; our ability to pay dividends or repurchase shares in future
periods; our reliance on a limited number of customers for a
substantial portion of our revenues; effects of system failures or
security breaches on our business and reputation; and any material
adverse impact of current or future litigation on our results or
business. For a discussion of these and other factors that could
impact our operations or financial results and cause our results to
differ materially from those in the forward-looking statements,
please refer to our filings with the Securities and Exchange
Commission, particularly our Annual Report on Form 10-K for the
fiscal year ended June 30, 2015. Solera is under no obligation
to (and specifically disclaims any such obligation to) update or
alter our forward-looking statements whether as a result of new
information, future events or otherwise.
Explanation of Non-GAAP Financial Measures:
To supplement our financial results on a GAAP basis, we use a
number of non-GAAP financial measures that management believes
provide additional information with respect to the performance of
our fundamental business activities and are also frequently used by
securities analysts, investors and other interested parties to
facilitate the evaluation of our business on a comparable basis to
other companies. Our non-GAAP financial measures are not meant to
be considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with
GAAP.
The three primary non-GAAP financial measures that we use are
Adjusted EBITDA, Adjusted Net Income, and Cash EPS. We believe that
Adjusted EBITDA, Adjusted Net Income and Cash EPS are useful to
investors in providing information regarding our operating results.
We rely on Adjusted EBITDA as a primary measure to review and
assess the operating performance of our company and our management
team in connection with our executive compensation and bonus plans.
Adjusted EBITDA also allows us to compare our current operating
results with corresponding prior periods as well as to the
operating results of other companies in our industry. We present
Adjusted Net Income and Cash EPS because we believe both of these
measures provide useful information regarding our operating results
in addition to our GAAP measures. We believe that Adjusted Net
Income and Cash EPS provide investors with valuable insight into
our profitability exclusive of unusual adjustments, and provide
further insight into the cash impact resulting from the different
treatments of goodwill for financial reporting and tax
purposes.
Adjusted EBITDA, Adjusted Net Income and Cash EPS have
limitations as analytical tools, and should not be considered in
isolation or as a substitute for net income, net income per share
and other consolidated income statement data prepared in accordance
with accounting principles generally accepted in the United States. Because of these
limitations, Adjusted EBITDA, Adjusted Net Income, and Cash EPS
should not be considered as a replacement for GAAP net income. We
compensate for these limitations by relying primarily on our GAAP
results and using Adjusted EBITDA, Adjusted Net Income, and Cash
EPS as supplemental information.
|
|
|
Adjusted EBITDA is a
non-GAAP financial measure that represents GAAP net income (loss)
excluding (i) interest expense, (ii) provision for income
taxes, (iii) depreciation and amortization,
(iv) stock-based compensation expense, (v) restructuring
charges, asset impairments, and other costs associated with exit
and disposal activities, (vi) other (income) expense, net,
(vii) litigation related expenses (recoveries), and
(viii) acquisition and related costs. Acquisition and related
costs include costs incurred in relation to the proposed
acquisition of Solera by Vista, including professional fees and
personnel retention incentives; legal and professional fees and
other transaction costs associated with completed and contemplated
business combinations and asset acquisitions; costs associated with
integrating acquired businesses, including costs incurred to
eliminate workforce redundancies and for product rebranding; and
other charges incurred as a direct result of our acquisition
efforts. These other charges include changes to the fair value of
contingent purchase consideration, acquired assets and assumed
liabilities subsequent to the completion of the purchase price
allocation, purchase price that is deemed to be compensatory in
nature and incentive compensation arrangements with continuing
employees of acquired companies.
|
|
|
|
Adjusted Net Income
is a non-GAAP financial measure that represents GAAP net income
(loss) attributable to Solera Holdings, Inc. excluding
(i) provision for income taxes, (ii) amortization of
acquired intangible assets, (iii) stock-based compensation
expense, (iv) restructuring charges, asset impairments, and
other costs associated with exit and disposal activities,
(v) other (income) expense, net excluding interest income and
realized gains (losses) on derivative financial instruments, (vi)
litigation related expenses (recoveries), and
(vii) acquisition and related costs. From this amount, we
subtract an assumed provision for income taxes to arrive at
Adjusted Net Income. During fiscal years 2016 and 2015, we assumed
a 24% and 26% income tax rate, respectively, as an approximation of
our long-term effective corporate income tax rate, which is a
non-GAAP financial measure that includes certain benefits from net
operating loss carryforwards, tax credits, tax deductible goodwill
and amortization, and certain holding companies in low tax-rate
jurisdictions.
|
|
|
|
Cash EPS is a
non-GAAP financial measure that represents Adjusted Net Income (as
defined above) divided by the number of diluted shares outstanding
for the period used in the calculation of GAAP net income (loss)
attributable to Solera Holdings, Inc. per diluted common share. If
we report a net loss attributable to Solera Holdings, Inc. for GAAP
purposes, the diluted shares outstanding used in the calculation of
Cash EPS includes the dilutive effective of common stock
equivalents.
|
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SOURCE Solera Holdings, Inc.