Total Revenue of $70.3 million up 9.7% from Q3
Q4 EPS of $0.11 and Non-GAAP EPS of $0.15
HERNDON, Va. — (BUSINESS WIRE) — February 10, 2010 — Deltek, Inc. (Nasdaq: PROJ), the leading provider of enterprise applications software and solutions for project-focused businesses, today announced financial results for its fourth quarter and full year ended December 31, 2009.
Total revenue for the fourth quarter of 2009 was $70.3 million, up 9.7% from the third quarter. License revenue for Q4 was $19.2 million, up 51% compared to the third quarter of 2009. Consulting services revenue for Q4 was $18.8 million, compared to $19.7 million in Q3. Maintenance and support revenue in the fourth quarter of 2009 was $32.3 million, up 2% from the third quarter.
Non-GAAP operating income for the fourth quarter of 2009 increased 17% to $18.2 million, from $15.6 million in the third quarter. Non-GAAP operating income margins were 25.9% for Q4 2009 and up from 24.3 % in Q3. GAAP operating income for the fourth quarter increased 38% to $14.1 million from $10.2 million in the third quarter. GAAP operating income margins were 20% for Q4 2009 up from 15.9% for Q3.
Non-GAAP net income for the fourth quarter of 2009 was $9.8 million, or $0.15 per diluted share, compared to $9.9 million, or $0.15 per diluted share, in the third quarter. GAAP net income for the fourth quarter of 2009 was $7.2 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, in the third quarter.
Non-GAAP operating income and margin excludes the pre-tax impact of stock-based compensation, expenses associated with the Company's 2005 recapitalization, amortization of acquired intangible assets, and restructuring charges. Non-GAAP net income excludes the same items on a net-of-tax basis.
“We are very pleased with our Q4 results as the increasing confidence among our customers drove significant growth in our license revenues,” said Kevin Parker, Deltek’s president and CEO. “This strong top line performance, combined with our continuing focus on our cost structure, produced best-in-class operating margins of 26%.
During the quarter, we expanded our portfolio of solutions by acquiring mySBX, an online collaboration and business networking platform. In January, we launched govWin, delivering exciting new capabilities to our customers, built on the mySBX acquisition. We are very excited about this new initiative and the ability to expand our presence among the thousands of mySBX participants.
In 2009, we expanded our international capabilities and customers, upgraded our overall product portfolio, delivered strong profitability and improved our balance sheet significantly. These accomplishments position us well for the coming year.”
When compared to the same quarter in the prior year, total revenue for the fourth quarter of 2009 was $70.3 million versus $71.7 million. License revenue for Q4 2009 was $19.2 million, compared to $19.8 million in the fourth quarter of 2008. Consulting services revenue for Q4 2009 was $18.8 million, compared to $21.9 million in the prior-year period. Maintenance and support revenue in the fourth quarter of 2009 was $32.3 million, compared to $30.0 million in Q4 2008.
Non-GAAP operating income for the fourth quarter of 2009 was $18.2 million compared to $16.8 million in the fourth quarter 2008. Non-GAAP operating income margins were 25.9% for Q4 2009 and 23.4 % for Q4 2008. GAAP operating income for the fourth quarter of 2009 was $14.1 million compared to $12.6 million in the fourth quarter of 2008. GAAP operating income margins were 20% for Q4 2009 and 17.6% for Q4 2008.
Non-GAAP net income for the fourth quarter of 2009 was $9.8 million, or $0.15 per diluted share, compared to $8.6 million, or $0.18 per diluted share, in the fourth quarter of 2008. GAAP net income for the fourth quarter of 2009 was $7.2 million, or $0.11 per diluted share, compared to $6.1 million, or $0.13 per diluted share, in the fourth quarter of 2008.
Full-Year 2009 Results
Total revenue for 2009 was $265.8 million, compared to $289.4 million in 2008. License revenue for 2009 was $58.9 million, compared to $77.4 million in 2008. Consulting services revenue for 2009 was $77.8 million, compared to $91.6 million in 2008. Maintenance and support revenue in 2009 was $125.5 million, compared to $115.7 million in 2008.
Non-GAAP operating income for 2009 was $58.4 million, compared with $61.9 million for 2008. Non-GAAP operating income margins were 22% for 2009 and 21.4 % for 2008. GAAP operating income for 2009 was $39.3 million, compared with $47 million for 2008. GAAP operating income margin was 14.8% in 2009 and 16.2% in 2008.
Non-GAAP net income for 2009 was $33.0 million, or $0.57 per diluted share, compared to $32.6 million, or $0.68 per diluted share, in 2008. Full-year 2009 GAAP net income was $21.4 million, or $0.37 per diluted share, compared to $23.5 million, or $0.49 per diluted share, in 2008.
A reconciliation of GAAP to non-GAAP financial measures is provided in the tables at the end of this press release.
Recent Highlights
- Trow Global, a Canada-based global leader in engineering and consulting services, selected Deltek Vision in the largest Deltek Vision transaction outside the U.S. in our history. Trow Global was seeking a solution that could manage and streamline its rapidly growing business while providing the flexibility and ease-of-use needed to quickly integrate newly acquired companies into the Trow Global organization. The company will leverage Deltek Vision to streamline operations, manage its organization through real-time visibility into projects and resources, integrate new acquisitions, and win new business.
- GENIVAR, a global Canadian engineering firm with more than 4,000 employees, recently purchased Deltek Vision and will be using the French Canadian version of the Vision solution. GENIVAR will be utilizing Deltek Vision to automate key business processes, implement best practices across its organization and improve efficiencies. The GENIVAR win, combined with the Trow Global success, further demonstrates Deltek’s growing momentum in the Canadian marketplace.
- Deltek announced a successful implementation of Deltek Vision with WSP Africa, a leading South African engineering and management consulting firm. WSP Africa used Deltek Vision to streamline operations, improve efficiency, enforce compliance, and support improved decision making to deliver complete satisfaction to its customers. The Vision implementation was completed on time and on budget.
- For the third year in a row, Deltek received the MarketTools® CustomerSat™ Achievement in Customer Excellence (ACE) ™ Award for “Customer Support Satisfaction.” This MarketTools CustomerSat ACE Award recognizes Deltek’s industry-leading success in building customer loyalty and delivering a premier customer support experience.
- Building on the exciting capabilities acquired in its December acquisition of mySBX, Deltek launched its breakthrough govWin online network, which empowers government contractors to win more business and drive profitability. By combining networking capabilities to promote subcontracting teaming opportunities, cutting-edge SaaS applications such as govWin CRM, and unique industry content, govWin delivers the industry’s only online community dedicated to solving common business problems for government contractors.
- Deltek launched Clarity, an annual industry summit where it presented the findings from one of the largest studies of the government contracting marketplace ever conducted. At Clarity '09, hundreds of professionals from leading government contractors attended the forum to gain unique insight into industry drivers and emerging trends. Deltek initiated the Clarity study and partnered with the government contracting community to identify opportunities, share best practices and develop strategies to achieve success in the rapidly changing government marketplace.
- Deltek held its second annual EMEA customer conference. International customers joined Deltek executives to discuss industry trends and hear about the future product directions for Deltek’s industry-leading Vision and Enterprise Project Management solutions. The conference included presentations from Deltek executives, product workshops from Deltek consultants, and customer case study presentations from Schlumberger Water & Carbon and the Aircraft Carrier Alliance program.
- Deltek added two executives to its management team. In January, Michael Corkery joined Deltek as its Executive Vice President and Chief Financial Officer. Mr. Corkery will leverage his extensive operational experience to drive improvements across all of Deltek’s key functional areas. In October, Deborah Fitzgerald joined Deltek as Senior Vice President and Chief Information Officer and will develop and implement the technology vision for Deltek worldwide.
Conference Call Information
Deltek will host a conference call at 5:00 p.m. Eastern Standard Time today to discuss the Company’s fourth quarter and full-year results. To access this call, dial 1-877-381-6419 in North America and 1-706-643-9496 outside North America. No password is required to join the call. The conference call also can be accessed through the Investor Relations section of Deltek's website ( http://investor.deltek.com). Those unable to participate in the live call may hear a replay through February 17, 2010 by dialing 1-800-642-1687 in North America and 1-706-645-9291 outside North America (pass code: 52143380). The replay also will be available through February 17, 2010 on Deltek's website.
About Deltek
Deltek (Nasdaq: PROJ) is the leading provider of enterprise applications software and solutions designed specifically for project-focused businesses. For more than two decades, our software applications have enabled organizations to automate mission-critical business processes around the engagement, execution and delivery of projects. More than 12,000 customers worldwide rely on Deltek to measure business results, optimize performance, streamline operations and win new business. For more information, visit www.deltek.com.
Use of Non-GAAP Financial Measures
This press release and the related conference call described above contain certain non-GAAP financial measures, including non-GAAP net income, non-GAAP operating income and margin and adjusted EBITDA. The Company defines non-GAAP net income as GAAP net income before the net-of-tax impact of stock-based compensation, expenses associated with the Company's 2005 recapitalization, amortization of acquired intangible assets, New Mountain Capital fees and restructuring charges. Non-GAAP operating income and margin is defined as GAAP operating income before the pre-tax impact of stock-based compensation, expenses associated with the Company's 2005 recapitalization, amortization of acquired intangible assets, New Mountain Capital fees and restructuring charges. Adjusted EBITDA is defined as GAAP net income before interest expenses (net of interest income), provision for income taxes, depreciation, amortization, stock-based compensation, expenses associated with the Company's 2005 recapitalization, New Mountain Capital fees and restructuring charges.
The Company believes that the presentation of these non-GAAP financial measures provides useful information to its investors and lenders because these measures allow for more accurate comparisons of operating results from period-to-period, enhance the overall understanding of the Company's financial performance and provide greater insight into the prospects for the Company's ongoing business operations. Moreover, the Company also believes it is appropriate to exclude costs associated with restructuring charges because these charges are excluded from management’s assessment of the Company’s operating performance and are not related to the Company’s ongoing business operations. In addition, the Company excludes the items from EBITDA described above in its calculations to determine compliance with its debt covenants and to assess its ability to borrow additional funds to finance or expand its operations.
The Company believes that by reporting these measures, it provides insight and consistency in its financial reporting and presents a basis for comparison of its business operations between current, past and future periods. In addition, the measures provide a basis for the Company to compare its financial results to those of other comparable publicly traded companies and are used by its management team to plan and forecast its business.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance which are prepared in accordance with U.S. GAAP and may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review the reconciliations of our GAAP to non-GAAP net income and adjusted EBITDA, which are set forth below.
Forward-Looking Statements
This press release and related conference call contain forward-looking statements that involve substantial risks and uncertainties. You can identify forward-looking statements by words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "should," "will," "would" or similar words. You should consider these statements carefully because they discuss our plans, targets, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There will be events in the future, however, that we are not able to predict accurately or control. Our actual results may differ materially from the expectations we describe in our forward-looking statements. Factors or events that could cause our actual results to materially differ may emerge from time to time, and it is not possible for us to accurately predict all of them. Before you invest in our common stock, you should be aware that the occurrence of any such event or of any of the additional events described as risk factors in the Company's filings with the Securities and Exchange Commission could have a material adverse effect on our business, results of operation and financial position. Any forward-looking statement made by us in this press release or related conference call speaks only as of the date on which we make it. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| DELTEK, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Software license fees | $ | 19,212 | $ | 19,751 | $ | 58,907 | $ | 77,398 | ||||||||
| Consulting services | 18,788 | 21,916 | 77,807 | 91,566 | ||||||||||||
| Maintenance and support services | 32,313 | 29,983 | 125,545 | 115,658 | ||||||||||||
| Other revenues | 32 | 46 | 3,562 | 4,743 | ||||||||||||
| Total revenues | 70,345 | 71,696 | 265,821 | 289,365 | ||||||||||||
| COST OF REVENUES: | ||||||||||||||||
| Cost of software license fees | 1,452 | 1,624 | 5,873 | 6,563 | ||||||||||||
| Cost of consulting services | 15,660 | 17,695 | 65,833 | 75,327 | ||||||||||||
| Cost of maintenance and support services | 5,701 | 5,540 | 22,463 | 21,404 | ||||||||||||
| Cost of other revenues | 43 | 26 | 4,717 | 5,172 | ||||||||||||
| Total cost of revenues | 22,856 | 24,885 | 98,886 | 108,466 | ||||||||||||
| GROSS PROFIT | 47,489 | 46,811 | 166,935 | 180,899 | ||||||||||||
| Research and development | 10,988 | 11,109 | 43,486 | 45,819 | ||||||||||||
| Sales and marketing | 12,216 | 14,411 | 44,784 | 53,764 | ||||||||||||
| General and administrative | 9,465 | 8,691 | 35,494 | 33,384 | ||||||||||||
| Restructuring charge (benefit) | 766 | (11 | ) | 3,866 | 980 | |||||||||||
| Total operating expenses | 33,435 | 34,200 | 127,630 | 133,947 | ||||||||||||
| INCOME FROM OPERATIONS | 14,054 | 12,611 | 39,305 | 46,952 | ||||||||||||
| Interest income | 11 | 19 | 46 | 637 | ||||||||||||
| Interest expense | (2,704 | ) | (2,594 | ) | (7,603 | ) | (11,002 | ) | ||||||||
| Other income (expense), net | 51 | (213 | ) | 43 | (474 | ) | ||||||||||
| INCOME BEFORE INCOME TAXES | 11,412 | 9,823 | 31,791 | 36,113 | ||||||||||||
| Income tax expense | 4,178 | 3,773 | 10,395 | 12,594 | ||||||||||||
| NET INCOME | $ | 7,234 | $ | 6,050 | $ | 21,396 | $ | 23,519 | ||||||||
| EARNINGS PER SHARE | ||||||||||||||||
| Basic | $ | 0.11 | $ | 0.13 | $ | 0.38 | $ | 0.51 | ||||||||
| Diluted | $ | 0.11 | $ | 0.13 | $ | 0.37 | $ | 0.49 | ||||||||
| COMMON SHARES AND EQUIVALENTS OUTSTANDING | ||||||||||||||||
| Basic weighted average shares | 64,144 | 46,641 | 56,778 | 46,571 | ||||||||||||
| Diluted weighted average shares | 65,411 | 47,199 | 57,596 | 47,729 | ||||||||||||
| DELTEK, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
|
December 31, |
December 31, |
|||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 132,338 | $ | 35,788 | ||||
|
Accounts receivable, net of allowance of 2,658 and 2,195 at December 31, 2009 and December 31, 2008, respectively |
42,531 | 47,747 | ||||||
| Deferred income taxes | 6,014 | 4,635 | ||||||
| Prepaid expenses and other current assets | 11,256 | 6,874 | ||||||
| Income taxes receivable | - | 846 | ||||||
| TOTAL CURRENT ASSETS | 192,139 | 95,890 | ||||||
| PROPERTY AND EQUIPMENT, NET | 11,371 | 14,639 | ||||||
| CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET | 618 | 1,438 | ||||||
| LONG-TERM DEFERRED INCOME TAXES | 6,359 | 4,125 | ||||||
| INTANGIBLE ASSETS, NET | 13,748 | 17,396 | ||||||
| GOODWILL | 63,910 | 57,654 | ||||||
| OTHER ASSETS | 3,165 | 2,130 | ||||||
| TOTAL ASSETS | $ | 291,310 | $ | 193,272 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt | $ | 44,599 | $ | 10,154 | ||||
| Accounts payable and accrued expenses | 26,442 | 28,734 | ||||||
| Accrued liability for redemption of stock in recapitalization | 317 | 317 | ||||||
| Deferred revenues | 40,176 | 21,296 | ||||||
| Income taxes payable | 992 | – | ||||||
| TOTAL CURRENT LIABILITIES | 112,526 | 60,501 | ||||||
| LONG-TERM DEBT | 134,358 | 182,661 | ||||||
| OTHER TAX LIABILITIES | 1,871 | 1,003 | ||||||
| OTHER LONG-TERM LIABILITIES | 1,875 | 2,917 | ||||||
| TOTAL LIABILITIES | 250,630 | 247,082 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY (DEFICIT): | ||||||||
|
Preferred stock, $0.001 par value—authorized, 5,000,000 shares; none issued or outstanding at December 31, 2009 or December 31, 2008 |
– | – | ||||||
|
Common stock, $0.001 par value—authorized, 200,000,000 shares; issued and outstanding, 66,292,415 and 43,474,220 shares at December 31, 2009 and December 31, 2008, respectively |
66 | 43 | ||||||
|
Class A common stock, $0.001 par value—authorized, 100 shares; issued and outstanding, 100 shares at December 31, 2009 and December 31, 2008 |
– | – | ||||||
| Additional paid-in capital | 249,798 | 177,249 | ||||||
| Accumulated deficit | (208,509 | ) | (229,905 | ) | ||||
| Accumulated other comprehensive deficit | (675 | ) | (1,197 | ) | ||||
|
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) |
40,680 | (53,810 | ) | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 291,310 | $ | 193,272 | ||||
| DELTEK, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
|
Twelve Months Ended December 31, |
||||||||
| 2009 | 2008 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 21,396 | $ | 23,519 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Provision for doubtful accounts | 2,267 | 1,023 | ||||||
| Depreciation and amortization | 10,547 | 10,188 | ||||||
| Amortization of debt issuance costs | 962 | 793 | ||||||
| Write down of acquired in process research and development | - | 290 | ||||||
| Stock-based compensation expense | 8,675 | 8,480 | ||||||
| Employee stock purchase plan expense | 1,896 | 282 | ||||||
| Restructuring charge, net | 932 | – | ||||||
| Loss on disposal of fixed assets | 42 | 469 | ||||||
| Deferred income taxes | (3,556 | ) | (2,586 | ) | ||||
| Change in assets and liabilities, net of effects from acquisition: | ||||||||
| Accounts receivable, net | 3,273 | 6,302 | ||||||
| Prepaid expenses and other assets | (4,154 | ) | 282 | |||||
| Accounts payable and accrued expenses | (3,144 | ) | (4,022 | ) | ||||
| Income taxes payable/receivable | 1,939 | (1,675 | ) | |||||
| Excess tax benefit from stock awards | (80 | ) | (64 | ) | ||||
| Other tax liabilities | 868 | 452 | ||||||
| Other long-term liabilities | (824 | ) | (630 | ) | ||||
| Deferred revenues | 18,439 | (547 | ) | |||||
| Net Cash Provided by Operating Activities | 59,478 | 42,556 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisitions, net of cash acquired | (5,369 | ) | (17,924 | ) | ||||
| Purchase of property and equipment | (2,368 | ) | (5,687 | ) | ||||
| Capitalized software development costs | (150 | ) | (349 | ) | ||||
| Net Cash Used in Investing Activities | (7,887 | ) | (23,960 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Issuance of common stock in connection with rights offering, net of issuance costs | 58,228 | – | ||||||
| Proceeds from exercise of stock options | 887 | 277 | ||||||
| Excess tax benefit from stock awards | 80 | 64 | ||||||
| Proceeds from issuance of stock under employee stock purchase plan | 2,015 | 712 | ||||||
| Shares withheld for minimum tax withholding on vested restricted stock awards | (123 | ) | – | |||||
| Offering costs paid for 2007 sale of common stock in initial public offering | – | (275 | ) | |||||
| Payments for deferred financing costs | (2,336 | ) | – | |||||
| Repayment of debt | (13,858 | ) | (498 | ) | ||||
| Net Cash Provided by Financing Activities | 44,893 | 280 | ||||||
| IMPACT OF FOREIGN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 66 | (179 | ) | |||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 96,550 | 18,697 | ||||||
| CASH AND CASH EQUIVALENTS––Beginning of period | 35,788 | 17,091 | ||||||
| CASH AND CASH EQUIVALENTS––End of period | $ | 132,338 | $ | 35,788 | ||||
| DELTEK, INC. | ||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME | ||||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
|
September 30, |
December 31, |
December 31, |
||||||||||||||||||||||||||||
|
2009 |
2009 |
2008 |
2009 |
2008 |
||||||||||||||||||||||||||
| Net Income (GAAP Basis) | $ | 6,607 | $ | 7,234 | $ | 6,050 | $ | 21,396 | $ | 23,519 | ||||||||||||||||||||
| Income Tax Expense | 1,627 | 4,178 | 3,773 | 10,395 | 12,594 | |||||||||||||||||||||||||
| Pre-Tax Income (GAAP Basis) | $ | 8,234 | $ | 11,412 | $ | 9,823 | $ | 31,791 | $ | 36,113 | ||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||
| Stock-based Compensation | 3,799 | 2,431 | 2,602 | 10,571 | 8,762 | |||||||||||||||||||||||||
| Recapitalization Retention Expense | - | - | 160 | 152 | 611 | |||||||||||||||||||||||||
| Amortization of Acquired Intangibles | 1,054 | 989 | 1,397 | 4,480 | 4,559 | |||||||||||||||||||||||||
| Restructuring Charge (Benefit) | 552 | 766 | (11 | ) | 3,866 | 980 | ||||||||||||||||||||||||
| Adjusted Pre-Tax Income | 13,639 | 15,598 | 13,971 | 50,860 | 51,025 | |||||||||||||||||||||||||
| Less: Adjusted Income Tax Expense | 3,757 | 5,827 | 5,407 | 17,908 | 18,469 | |||||||||||||||||||||||||
| Non-GAAP Net Income | $ | 9,882 | $ | 9,771 | $ | 8,564 | $ | 32,952 | $ | 32,556 | ||||||||||||||||||||
| Non-GAAP Earnings Per Share (diluted) | $ | 0.15 | $ | 0.15 | $ | 0.18 | $ | 0.57 | $ | 0.68 | ||||||||||||||||||||
| Weighted Average Shares | 64,808 | 65,411 | 47,199 | 57,596 | 47,729 | |||||||||||||||||||||||||
| RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO NON-GAAP OPERATING INCOME AND OPERATING MARGIN | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
|
September 30, |
December 31, |
December 31, | ||||||||||||||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||||
| Operating Income and Margin - GAAP | $ | 10,167 | 16 | % | $ | 14,054 | 20 | % | $ | 12,611 | 18 | % | $ | 39,305 | 15 | % | $ | 46,952 | 16 | % | ||||||||||
| Plus: Stock-based Compensation and Recapitalization Retention Expense | 3,799 | 2,431 | 2,762 | 10,723 | 9,373 | |||||||||||||||||||||||||
| Plus: Amortization of Acquired Intangibles | 1,054 | 989 | 1,397 | 4,480 | 4,559 | |||||||||||||||||||||||||
| Plus: Restructuring Charge (Benefit) | 552 | 766 | (11 | ) | 3,866 | 980 | ||||||||||||||||||||||||
| Operating Income and Margin - Non-GAAP | $ | 15,572 | 24 | % | $ | 18,240 | 26 | % | $ | 16,759 | 23 | % | $ | 58,374 | 22 | % | $ | 61,864 | 21 | % | ||||||||||
| Total Revenues | $ | 64,114 | $ | 70,345 | $ | 71,696 | $ | 265,821 | $ | 289,365 | ||||||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
|
September 30, |
December 31, |
December 31, | ||||||||||||||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||||
| Net Income (GAAP Basis) | $ | 6,607 | $ | 7,234 | $ | 6,050 | $ | 21,396 | $ | 23,519 | ||||||||||||||||||||
| Stock-based Compensation | 3,799 | 2,431 | 2,602 | 10,571 | 8,762 | |||||||||||||||||||||||||
| Recapitalization Retention Expense | - | - | 160 | 152 | 611 | |||||||||||||||||||||||||
| Depreciation | 1,255 | 1,304 | 1,311 | 5,100 | 4,626 | |||||||||||||||||||||||||
| Amortization | 1,262 | 1,197 | 1,733 | 5,451 | 5,868 | |||||||||||||||||||||||||
| Interest Expense, net | 1,904 | 2,693 | 2,575 | 7,557 | 10,365 | |||||||||||||||||||||||||
| Income Tax Provision | 1,627 | 4,178 | 3,773 | 10,395 | 12,594 | |||||||||||||||||||||||||
| Restructuring Charge (Benefit) | 552 | 766 | (11 | ) | 3,866 | 980 | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 17,006 | $ | 19,803 | $ | 18,193 | $ | 64,488 | $ | 67,325 | ||||||||||||||||||||
| STOCK-BASED COMPENSATION AND RECAPITALIZATION RETENTION EXPENSES | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
|
September 30, |
December 31, |
December 31, |
||||||||||||||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||||
| Cost of Software License Fees | $ | - | $ | - | $ | 1 | $ | - | $ | 4 | ||||||||||||||||||||
| Cost of Consulting Services | 1,021 | 192 | 637 | 2,059 | 1,851 | |||||||||||||||||||||||||
| Cost of Maintenance and Support Services | 308 | 166 | 119 | 679 | 101 | |||||||||||||||||||||||||
| Research and Development | 884 | 519 | 687 | 2,399 | 2,183 | |||||||||||||||||||||||||
| Sales and Marketing | 705 | 563 | 418 | 2,069 | 1,822 | |||||||||||||||||||||||||
| General and Administrative | 881 | 991 | 900 | 3,517 | 3,412 | |||||||||||||||||||||||||
| Total | $ | 3,799 | $ | 2,431 | $ | 2,762 | $ | 10,723 | $ | 9,373 | ||||||||||||||||||||
| AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
|
September 30, |
December 31, |
December 31, |
||||||||||||||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||||
| Cost of Software License Fees | $ | 155 | $ | 80 | $ | 362 | $ | 853 | $ | 1,354 | ||||||||||||||||||||
| Cost of Consulting Services | 20 | 19 | 19 | 78 | 78 | |||||||||||||||||||||||||
| Cost of Other Revenues | - | 10 | - | 10 | - | |||||||||||||||||||||||||
| Research and Development | - | - | - | - | 290 | |||||||||||||||||||||||||
| Sales and Marketing | 874 | 880 | 998 | 3,497 | 2,764 | |||||||||||||||||||||||||
| General and Administrative | 5 | - | 18 | 42 | 73 | |||||||||||||||||||||||||
| Total | $ | 1,054 | $ | 989 | $ | 1,397 | $ | 4,480 | $ | 4,559 | ||||||||||||||||||||
| AMORTIZATION AND DEPRECIATION EXPENSES | ||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
|
September 30, |
December 31, |
December 31, |
||||||||||||||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||||||||||
| Cost of Software License Fees | $ | 365 | $ | 290 | $ | 702 | $ | 1,836 | $ | 2,675 | ||||||||||||||||||||
| Cost of Consulting Services | 362 | 374 | 429 | 1,587 | 1,775 | |||||||||||||||||||||||||
| Cost of Maintenance and Support Services | 205 | 213 | 220 | 843 | 748 | |||||||||||||||||||||||||
| Cost of Other Revenues | - | 10 | - | 10 | - | |||||||||||||||||||||||||
| Research and Development | 401 | 417 | 297 | 1,393 | 1,277 | |||||||||||||||||||||||||
| Sales and Marketing | 1,058 | 1,071 | 1,251 | 4,317 | 3,497 | |||||||||||||||||||||||||
| General and Administrative | 126 | 126 | 145 | 565 | 522 | |||||||||||||||||||||||||
| Total | $ | 2,517 | $ | 2,501 | $ | 3,044 | $ | 10,551 | $ | 10,494 | ||||||||||||||||||||
Contact:
Deltek, Inc.
Investor Relations:
Joe Wilkinson, 703-885-9423
Email Contact
or
Media Relations:
Patrick Smith, 703-885-9062
Email Contact