Form 8-K GLOBALSCAPE INC For: Oct 29
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 29, 2015
Date of Report (Date of earliest event reported)
GlobalSCAPE, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
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001-33601
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74-2785449
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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4500 Lockhill Selma Road, Suite 150
San Antonio, Texas 78249
(210) 308-8267
(Address of principal executive offices and Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On October 29, 2015, GlobalSCAPE, Inc. (“Globalscape” or the “Company”) issued a press release announcing financial results for the Company’s third quarter of 2015. A copy of the press release is furnished with this report as Exhibit 99.1. Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibit
99.1 Press release dated October 29, 2015.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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GLOBALSCAPE, INC.
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By:
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/s/ James W. Albrecht, Jr.
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James W. Albrecht, Jr., Chief Financial Officer
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Dated: October 29, 2015
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EXHIBIT INDEX
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Exhibit Number
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Document Description
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99.1
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Press release dated October 29, 2015 announcing Globalscape’s 2015 third quarter financial results.
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Exhibit 99.1
GlobalSCAPE, Inc. Announces Financial Results for the Third Quarter 2015
Revenues Increase 18 Percent over the Prior Year
SAN ANTONIO — October 29, 2015 — 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 Globalscape’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.”
Globalscape Third Quarter 2015 Financial Statements
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·
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Financial Statements (PDF)
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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.
INVESTOR RELATIONS CONTACT
Contact: Casey Stegman
Phone Number: (214) 987-4121
Email: [email protected]
PRESS CONTACT
Contact: Ciri Haugh
Phone Number: (210) 308-8267
Email: [email protected]
GlobalSCAPE, Inc.
Condensed Consolidated Balance Sheets
(in thousands except share amounts)
Unaudited
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September 30,
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December 31,
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|||||||
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2015
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2014
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|||||||
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Assets
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||||||||
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Current assets:
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||||||||
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Cash and cash equivalents
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$ | 12,858 | $ | 11,358 | ||||
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Accounts receivable (net of allowance for doubtful accounts
of $500 and $511 in 2015 and 2014, respectively) |
7,481 | 5,938 | ||||||
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Current deferred tax asset
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313 | 402 | ||||||
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Prepaid expenses
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334 | 488 | ||||||
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Total current assets
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20,986 | 18,186 | ||||||
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Fixed assets, net
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520 | 616 | ||||||
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Long term investments
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3,233 | 3,185 | ||||||
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Capitalized software development costs
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3,999 | 3,298 | ||||||
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Goodwill
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12,712 | 12,712 | ||||||
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Deferred tax asset
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699 | 290 | ||||||
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Other assets
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63 | 100 | ||||||
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Total assets
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$ | 42,212 | $ | 38,387 | ||||
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Liabilities and Stockholders’ Equity
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||||||||
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Current liabilities:
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Accounts payable
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$ | 354 | $ | 1,111 | ||||
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Accrued expenses
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1,600 | 1,590 | ||||||
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Deferred revenue
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11,848 | 11,411 | ||||||
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Income taxes payable
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356 | 2 | ||||||
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Total current liabilities
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14,158 | 14,114 | ||||||
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Deferred revenue, non-current portion
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3,487 | 3,393 | ||||||
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Other long term liabilities
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47 | 52 | ||||||
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Commitments and contingencies
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||||||||
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Stockholders’ equity:
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Preferred stock, par value $0.001 per share, 10,000,000
authorized, no shares issued or outstanding |
- | - | ||||||
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Common stock, par value $0.001 per share, 40,000,000
authorized, 21,318,967 and 20,989,267 shares issued |
21 | 21 | ||||||
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Additional paid-in capital
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19,318 | 18,370 | ||||||
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Treasury stock, 403,581 shares, at cost, at
September 30, 2015 and December 31, 2014 |
(1,452 | ) | (1,452 | ) | ||||
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Retained earnings
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6,633 | 3,889 | ||||||
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Total stockholders’ equity
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24,520 | 20,828 | ||||||
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Total liabilities and stockholders’ equity
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$ | 42,212 | $ | 38,387 | ||||
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
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Three months ended September 30,
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Nine months ended September 30,
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2015
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2014
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2015
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2014
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Operating Revenues:
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Software licenses
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$ | 2,852 | $ | 2,291 | $ | 8,590 | $ | 6,789 | ||||||||
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Maintenance and support
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4,142 | 3,790 | 12,269 | 11,181 | ||||||||||||
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Professional services
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653 | 409 | 1,531 | 933 | ||||||||||||
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Total Revenues
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7,647 | 6,490 | 22,390 | 18,903 | ||||||||||||
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Operating Expenses:
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Cost of revenues
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458 | 277 | 1,066 | 679 | ||||||||||||
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Selling, general and administrative
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4,355 | 4,173 | 13,472 | 13,077 | ||||||||||||
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Research and development
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646 | 513 | 1,832 | 1,722 | ||||||||||||
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Depreciation and amortization
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433 | 263 | 1,116 | 580 | ||||||||||||
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Total operating expenses
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5,892 | 5,226 | 17,486 | 16,058 | ||||||||||||
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Income from operations
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1,755 | 1,264 | 4,904 | 2,845 | ||||||||||||
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Other income (expense), net
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17 | (11 | ) | 51 | (58 | ) | ||||||||||
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Income before income taxes
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1,772 | 1,253 | 4,955 | 2,787 | ||||||||||||
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Income tax expense
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542 | 471 | 1,585 | 982 | ||||||||||||
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Net income
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$ | 1,230 | $ | 782 | $ | 3,370 | $ | 1,805 | ||||||||
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Comprehensive income
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$ | 1,230 | $ | 782 | $ | 3,370 | $ | 1,805 | ||||||||
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Net income per common share -
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Basic
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$ | 0.06 | $ | 0.04 | $ | 0.16 | $ | 0.09 | ||||||||
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Diluted
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$ | 0.06 | $ | 0.04 | $ | 0.16 | $ | 0.09 | ||||||||
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Weighted average shares outstanding:
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Basic
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20,892 | 20,487 | 20,782 | 20,024 | ||||||||||||
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Diluted
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21,440 | 20,890 | 21,294 | 20,624 | ||||||||||||
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Cash dividends declared per share
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$ | 0.015 | - | $ | 0.030 | - | ||||||||||
GlobalSCAPE, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
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For the Nine Months Ended September 30,
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2015
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2014
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Operating Activities:
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Net income
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$ | 3,370 | $ | 1,805 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
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Bad debt expense
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147 | 318 | ||||||
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Depreciation and amortization
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1,116 | 580 | ||||||
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Stock-based compensation
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482 | 380 | ||||||
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Deferred taxes
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(320 | ) | 740 | |||||
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Excess tax benefit from share-based compensation
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(49 | ) | ||||||
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Subtotal before changes in operating assets and liabilities
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4,746 | 4,035 | ||||||
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Changes in operating assets and liabilities:
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||||||||
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Accounts receivable
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(1,690 | ) | (3,275 | ) | ||||
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Prepaid expenses
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154 | 85 | ||||||
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Other assets
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37 | 10 | ||||||
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Deferred revenue
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531 | 3,405 | ||||||
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Accounts payable
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(757 | ) | (24 | ) | ||||
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Accrued expenses
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10 | 398 | ||||||
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Other long-term liabilities
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(5 | ) | (6 | ) | ||||
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Income tax receivable and payable
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403 | (132 | ) | |||||
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Net cash provided by operating activities
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3,429 | 4,496 | ||||||
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Investing Activities:
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Software development costs capitalized
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(1,613 | ) | (2,028 | ) | ||||
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Purchase of property and equipment
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(108 | ) | (215 | ) | ||||
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Interest reinvested in long term investments
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(48 | ) | (47 | ) | ||||
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Net cash (used in) investing activities
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(1,769 | ) | (2,290 | ) | ||||
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Financing Activities:
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Proceeds from exercise of stock options
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417 | 2,201 | ||||||
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Excess tax benefit from share-based compensation
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49 | (212 | ) | |||||
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Notes payable principal payments
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- | (4,385 | ) | |||||
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Dividends paid
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(626 | ) | - | |||||
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Net cash (used in) financing activities
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(160 | ) | (2,396 | ) | ||||
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Net increase in cash
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1,500 | (190 | ) | |||||
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Cash at beginning of period
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11,358 | 9,455 | ||||||
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Cash at end of period
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$ | 12,858 | $ | 9,265 | ||||
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Supplemental disclosure of cash flow information:
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Cash paid during the period for:
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Interest
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$ | - | $ | 117 | ||||
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Income taxes
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$ | 1,341 | $ | 642 | ||||
GlobalSCAPE, Inc.
EBITDA Excluding Infrequent items
(in thousands)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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Net income (loss)
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$ | 1,230 | $ | 782 | $ | 3,370 | $ | 1,805 | ||||||||
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Add (subtract) items to determine adjusted EBITDA excluding infrequent items:
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Income tax expense
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542 | 471 | 1,587 | 982 | ||||||||||||
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Interest (income) expense, net
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(16 | ) | 12 | (50 | ) | 59 | ||||||||||
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Depreciation and amortization:
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Total depreciation and amortization
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432 | 263 | 1,114 | 580 | ||||||||||||
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Amortization of capitalized software development costs
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(366 | ) | (186 | ) | (911 | ) | (359 | ) | ||||||||
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Stock-based compensation expense
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167 | 120 | 482 | 380 | ||||||||||||
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Infrequent items
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- | - | - | - | ||||||||||||
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Adjusted EBITDA excluding infrequent items
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$ | 1,989 | $ | 1,462 | $ | 5,592 | $ | 3,447 | ||||||||
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