GlobalSCAPE, Inc. Announces Financial Results for the Third Quarter 2015
Revenues Increase 18 Percent Over the Prior Year
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E-mailSAN ANTONIO, TX -- (Marketwired) -- 10/29/15 -- GlobalSCAPE, Inc. (NYSE MKT: GSB), the secure information exchange company, today announced its financial results for the three and nine months ended September 30, 2015.
Revenue for the third quarter of 2015 was $7.6 million, an increase of 18 percent when compared with revenue of $6.5 million for the third quarter of 2014. Revenue for the first nine months of 2015 was $22.4 million compared with $18.9 million for the same period in 2014, an increase of 18 percent.
Deferred revenue, which can be an indicator of future revenue trends, was $15.3 million at September 30, 2015, compared with $14.2 million at September 30, 2014, or an increase of 8 percent.
For the third quarter of 2015, the Company's net income was $1.2 million compared with net income of $782,000 for the third quarter of 2014. Earnings per share was $0.06 for the third quarter of 2015 compared with $0.04 for the third quarter of 2014.
For the first nine months of 2015, net income was $3.4 million compared with $1.8 million for the same period in 2014. Earnings per share for the first nine months of 2015 was $0.16 per share compared with $0.09 per share for the same period in 2014.
Adjusted EBITDA Excluding Infrequent Items for the third quarter of 2015 was $1.9 million compared with $1.5 million for the third quarter of 2015 and was $5.6 million for the first nine months of 2015 compared with $3.4 million for the first nine months of 2014.
The Company had cash, cash equivalents and long-term investments of $16.1 million at September 30, 2015. Other than liabilities for normal trade payables and taxes, the Company has no debt.
Supporting Quote:
James L. Bindseil, President and Chief Executive Officer at Globalscape
"There has never been a more exciting time in Globlascape's recent history. We are very proud of the work that has been done that has resulted in double digit revenue growth. Seeing an 18 percent increase in revenue for both the third quarter and the year to date when compared with 2014 is incredibly rewarding. We remain confident in our sales, marketing and product development strategies. We are encouraged and eager about what the future holds for this organization. We look forward to continuing to execute on the plans we have in place for the remainder of 2015 while setting the stage for continued growth in 2016 and beyond."
Conference Call October 29, 2015 at 4:30 p.m. ET
Globalscape management will hold a conference call on October 29, 2015, at 4:30 p.m. Eastern Time/3:30 p.m. Central Time to discuss financial results and other corporate matters for the third quarter 2015. Those wanting to join may call 888-500-6950 or 719-457-2648 and use Conference ID # 8767354. A live webcast of the conference call will also be available on the Investor Relations page of the company's website at www.globalscape.com. A webcast replay will be made available on the company's website shortly after the call is completed.
About Globalscape
San Antonio, Texas-based GlobalSCAPE, Inc. (NYSE MKT: GSB) ensures the reliability of mission-critical operations by securing sensitive data and intellectual property. Globalscape's suite of solutions features the EFT platform, the industry-leading enterprise file transfer solution that delivers military-grade security and a customizable platform for achieving best-in-class control and visibility of data in motion or at rest, across multiple locations. Founded in 1996, Globalscape is a leading enterprise solution provider of secure information exchange software and services to thousands of customers, including global enterprises, governments, and small businesses. For more information, visit www.Globalscape.com or follow the blog and Twitter updates.
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," "steady," "dramatic," 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 actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's Annual Report on Form 10-K for the 2014 calendar year, filed with the Securities and Exchange Commission on March 30, 2015.
GlobalSCAPE, Inc.
Condensed Consolidated Balance Sheets
(in thousands except share amounts)
Unaudited
September 30, December 31,
2015 2014
--------------------------------
Assets
Current assets:
Cash and cash equivalents $ 12,858 $ 11,358
Accounts receivable (net of allowance for
doubtful accounts of $500 and $511 in
2015 and 2014, respectively) 7,481 5,938
Current deferred tax asset 313 402
Prepaid expenses 334 488
--------------------------------
Total current assets 20,986 18,186
Fixed assets, net 520 616
Long term investments 3,233 3,185
Capitalized software development costs 3,999 3,298
Goodwill 12,712 12,712
Deferred tax asset 699 290
Other assets 63 100
--------------------------------
Total assets $ 42,212 $ 38,387
================================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 354 $ 1,111
Accrued expenses 1,600 1,590
Deferred revenue 11,848 11,411
Income taxes payable 356 2
--------------------------------
Total current liabilities 14,158 14,114
Deferred revenue, non-current portion 3,487 3,393
Other long term liabilities 47 52
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.001 per
share, 10,000,000 authorized, no shares
issued or outstanding - -
Common stock, par value $0.001 per share,
40,000,000 authorized, 21,318,967 and
20,989,267 shares issued at September 30,
2015, and December 31, 2014, respectively 21 21
Additional paid-in capital 19,318 18,370
Treasury stock, 403,581 shares, at cost, at
September 30, 2015 and December 31, 2014 (1,452) (1,452)
Retained earnings 6,633 3,889
--------------------------------
Total stockholders' equity 24,520 20,828
--------------------------------
Total liabilities and stockholders'
equity $ 42,212 $ 38,387
================================
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
----------------------- -----------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
Operating Revenues:
Software licenses $ 2,852 $ 2,291 $ 8,590 $ 6,789
Maintenance and support 4,142 3,790 12,269 11,181
Professional services 653 409 1,531 933
----------- ----------- ----------- -----------
Total Revenues 7,647 6,490 22,390 18,903
----------- ----------- ----------- -----------
Operating Expenses:
Cost of revenues 458 277 1,066 679
Selling, general and
administrative 4,355 4,173 13,472 13,077
Research and development 646 513 1,832 1,722
Depreciation and
amortization 433 263 1,116 580
----------- ----------- ----------- -----------
Total operating
expenses 5,892 5,226 17,486 16,058
----------- ----------- ----------- -----------
Income from operations 1,755 1,264 4,904 2,845
Other income (expense),
net 17 (11) 51 (58)
----------- ----------- ----------- -----------
Income before income taxes 1,772 1,253 4,955 2,787
Income tax expense 542 471 1,585 982
----------- ----------- ----------- -----------
Net income $ 1,230 $ 782 $ 3,370 $ 1,805
=========== =========== =========== ===========
Comprehensive income $ 1,230 $ 782 $ 3,370 $ 1,805
=========== =========== =========== ===========
Net income per common
share -
Basic $ 0.06 $ 0.04 $ 0.16 $ 0.09
Diluted $ 0.06 $ 0.04 $ 0.16 $ 0.09
Weighted average shares
outstanding:
Basic 20,892 20,487 20,782 20,024
Diluted 21,440 20,890 21,294 20,624
Cash dividends declared
per share $ 0.015 - $ 0.030 -
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
For the Nine Months Ended
September 30,
--------------------------------
2015 2014
--------------- ---------------
Operating Activities:
Net income $ 3,370 $ 1,805
Adjustments to reconcile net income to
net cash provided by operating
activities:
Bad debt expense 147 318
Depreciation and amortization 1,116 580
Stock-based compensation 482 380
Deferred taxes (320) 740
Excess tax benefit from share-based
compensation (49) 212
--------------- ---------------
Subtotal before changes in operating
assets and liabilities 4,746 4,035
Changes in operating assets and
liabilities:
Accounts receivable (1,690) (3,275)
Prepaid expenses 154 85
Other assets 37 10
Deferred revenue 531 3,405
Accounts payable (757) (24)
Accrued expenses 10 398
Other long-term liabilities (5) (6)
Income tax receivable and payable 403 (132)
--------------- ---------------
Net cash provided by operating activities 3,429 4,496
--------------- ---------------
Investing Activities:
Software development costs capitalized (1,613) (2,028)
Purchase of property and equipment (108) (215)
Interest reinvested in long term
investments (48) (47)
--------------- ---------------
Net cash (used in) investing activities (1,769) (2,290)
--------------- ---------------
Financing Activities:
Proceeds from exercise of stock options 417 2,201
Excess tax benefit from share-based
compensation 49 (212)
Notes payable principal payments - (4,385)
Dividends paid (626) -
--------------- ---------------
Net cash (used in) financing activities (160) (2,396)
--------------- ---------------
Net increase in cash 1,500 (190)
Cash at beginning of period 11,358 9,455
--------------- ---------------
Cash at end of period $ 12,858 $ 9,265
=============== ===============
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest $ - $ 117
=============== ===============
Income taxes $ 1,341 $ 642
=============== ===============
GlobalSCAPE, Inc.
EBITDA Excluding Infrequent items
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2015 2014 2015 2014
--------- --------- --------- ---------
Net income (loss) $ 1,230 $ 782 $ 3,370 $ 1,805
Add (subtract) items to determine
adjusted EBITDA excluding
infrequent items:
Income tax expense 542 471 1,587 982
Interest (income) expense, net (16) 12 (50) 59
Depreciation and amortization:
Total depreciation and
amortization 432 263 1,114 580
Amortization of capitalized
software development costs (366) (186) (911) (359)
Stock-based compensation expense 167 120 482 380
Infrequent items - - -
--------- --------- --------- ---------
Adjusted EBITDA excluding
infrequent items $ 1,989 $ 1,462 $ 5,592 $ 3,447
========= ========= ========= =========
INVESTOR RELATIONS CONTACTContact: Casey StegmanPhone Number: (214) 987-4121Email: [email protected] CONTACTContact: Ciri HaughPhone Number: (210) 308-8267 Email: [email protected]
Source: Globalscape, Inc.
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