IDI Announces 2016 Second Quarter Financial and Operating Results
Data and analytics company continues to execute on growth and drive results, expanding into new verticals and bringing next-generation products to market
Business Highlights
-
Consolidated revenue increased to
$41.0 million for the second quarter 2016 from$1.0 million for the second quarter 2015 -
Information Services and Performance Marketing segments contributed
$13.4 million and$27.6 million in revenue, respectively -
Net loss decreased to
$7.2 million for the second quarter 2016 from$45.5 million for the second quarter 2015 -
Adjusted EBITDA increased to
$3.1 million for the second quarter 2016 from negative$1.3 million for the second quarter 2015 - Achieved positive cash flow from operating activities
- Within our Information Services segment:
- Released leading-edge, investigative solution, idiCORE™, to the risk management industry, with continued expansion of search functionality
- Ingested and integrated multiple foundational data sets into idiCORE platform, aligning vertical industry trends with product and platform functional scalability
- Successfully launched our retargeting data acquisition product, ReConnect™ with adoption from major web publishing companies
- On average, generating in excess of 700,000 consumer registrations per day
- Within our Performance Marketing segment:
-
Strong trending in our strategic growth verticals, including Mobile
Applications, Jobs On Demand, and
Market Research , with our partners citing strong quality from our differentiated, data-driven approach - Client growth and percentage of “Uncapped” ad campaigns within our Performance Marketing segment continue to trend in a positive direction. Focusing on performance pricing and ad campaign formats has enabled us to increase the amount of uncapped campaigns as many of our partners recognize ROI very quickly on their media spend
- Successfully launched our Market Research Media brand which we anticipate will allow us to roll out several new media brands in the second half of 2016 further diversifying and growing our audience base
“We are pleased to report yet another very strong quarter of revenue and
adjusted EBITDA, continuing to drive growth and earnings while bringing
innovative solutions to our markets,” commented
Financial Highlights
Total revenue was
Use of Non-GAAP Financial Measures
Management evaluates the financial performance of our business on a variety of key indicators, including adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure equal to net loss, the most directly comparable financial measure based on US GAAP, plus net loss from discontinued operations, interest expense, income tax (benefit) expenses, depreciation and amortization, share-based payments, and other adjustments, as noted in the table below.
Conference Call
About
At IDI, we believe that time is your most valuable asset. Through powerful analytics, we transform data into intelligence, in a fast and efficient manner, so that our clients can spend their time on what matters most – running their organizations with confidence. Through leading-edge, proprietary technology and a massive data repository, our data and analytical solutions harness the power of data fusion, uncovering the relevance of disparate data points and converting them into comprehensive and insightful views of people, businesses, assets and their interrelationships. We empower clients across markets and industries to better execute all aspects of their business, from managing risk, conducting investigations, identifying fraud and abuse, and collecting debts, to identifying and acquiring new customers. At IDI, we are dedicated to making the world a safer place, to reducing the cost of doing business, and to enhancing the consumer experience.
RELATED LINKS: http://www.ididata.com and http://www.fluentco.com
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements," as that term
is defined under the Private Securities Litigation Reform Act of 1995
(PSLRA), which statements may be identified by words such as "expects,"
"plans," "projects," "will," "may," "anticipate," "believes," "should,"
"intends," "estimates," and other words of similar meaning. Such forward
looking statements include statements about continuing to see very
strong demand across our risk markets, continuing to see robust mobile
revenue capture and strong trending in various growth verticals,
including mobile apps. Readers are cautioned not to place undue reliance
on these forward-looking statements, which are based on our expectations
as of the date of this press release and speak only as of the date of
this press release and are advised to consider the factors listed above
together with the additional factors under the heading "Forward-Looking
Statements" and "Risk Factors" in the Company's Annual Report on Form
10-K, as may be supplemented or amended by the Company's Quarterly
Reports on Form 10-Q and other
IDI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) (unaudited) |
|||||||||
June 30, 2016 | December 31, 2015 | ||||||||
ASSETS: |
|||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 11,233 | $ | 13,462 | |||||
Accounts receivable, net of allowance for doubtful accounts of $513 and $318 at June 30, 2016 and December 31, 2015, respectively |
24,766 | 21,224 | |||||||
Prepaid expenses and other current assets | 2,125 | 2,931 | |||||||
Total current assets | 38,124 | 37,617 | |||||||
Property and equipment, net | 1,499 | 1,062 | |||||||
Intangible assets, net | 104,361 | 87,445 | |||||||
Goodwill | 166,083 | 161,753 | |||||||
Other non-current assets | 2,021 | 1,315 | |||||||
Total assets | $ | 312,088 | $ | 289,192 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|||||||||
Current liabilities: | |||||||||
Trade accounts payable | $ | 10,986 | $ | 8,863 | |||||
Accrued expenses and other current liabilities | 9,136 | 9,160 | |||||||
Deferred revenue | 344 | 783 | |||||||
Current portion of long-term debt | 2,250 | 2,250 | |||||||
Total current liabilities | 22,716 | 21,056 | |||||||
Promissory notes payable to certain shareholders, net | 10,137 | 9,618 | |||||||
Long-term debt, net | 38,227 | 39,050 | |||||||
Contingent consideration payable in stock | 10,000 | - | |||||||
Deferred tax liabilities | 7,090 | 13,573 | |||||||
Total liabilities | 88,170 | 83,297 | |||||||
Shareholders' equity: | |||||||||
Convertible Series A preferred stock—$0.0001 par value 10,000,000 shares authorized; 0 and 4,871,802 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively |
- | - | |||||||
Convertible Series B preferred stock—$0.0001 par value 10,000,000 shares authorized; 0 and 450,962 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively |
- | - | |||||||
Common stock—$0.0005 par value 200,000,000 shares authorized;
50,700,356 and 15,709,786 shares issued at June 30, 2016 and December 31, 2015, respectively; and 50,645,144 and 15,709,786 shares outstanding at June 30, 2016 and December 31, 2015, respectively |
25 | 8 | |||||||
Treasury stock, at cost, 55,212 and 0 shares at June 30, 2016 and December 31, 2015, respectively |
(272 | ) | - | ||||||
Additional paid-in capital | 323,266 | 291,032 | |||||||
Accumulated deficit | (99,101 | ) | (85,145 | ) | |||||
Total shareholders’ equity | 223,918 | 205,895 | |||||||
Total liabilities and shareholders’ equity | $ | 312,088 | $ | 289,192 | |||||
IDI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Amounts in thousands, except share data) (unaudited) |
||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Revenue | $ | 41,043 | $ | 994 | $ | 80,467 | $ | 2,252 | ||||||||||||
Cost of revenues (exclusive of depreciation and amortization) |
29,557 | 424 | 58,051 | 978 | ||||||||||||||||
Gross profit | 11,486 | 570 | 22,416 | 1,274 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing expenses | 3,179 | 472 | 6,305 | 1,005 | ||||||||||||||||
General and administrative expenses | 13,167 | 3,773 | 26,534 | 5,472 | ||||||||||||||||
Depreciation and amortization | 2,996 | 41 | 5,605 | 76 | ||||||||||||||||
Loss from operations | (7,856 | ) | (3,716 | ) | (16,028 | ) | (5,279 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest expense, net | (1,856 | ) | - | (3,681 | ) | - | ||||||||||||||
Other expenses, net | (976 | ) | - | (1,273 | ) | - | ||||||||||||||
Total other expense | (2,832 | ) | - | (4,954 | ) | - | ||||||||||||||
Loss from continuing operations before income taxes | (10,688 | ) | (3,716 | ) | (20,982 | ) | (5,279 | ) | ||||||||||||
Income taxes | (3,504 | ) | 265 | (7,026 | ) | 265 | ||||||||||||||
Net loss from continuing operations | (7,184 | ) | (3,981 | ) | (13,956 | ) | (5,544 | ) | ||||||||||||
Discontinued operations: | ||||||||||||||||||||
Pretax loss from operations of discontinued operations | - | (1,171 | ) | - | (1,262 | ) | ||||||||||||||
Pretax loss on disposal of discontinued operations | - | (41,471 | ) | - | (41,471 | ) | ||||||||||||||
Income taxes | - | 127 | - | 127 | ||||||||||||||||
Net loss from discontinued operations | - | (42,769 | ) | - | (42,860 | ) | ||||||||||||||
Less: Non-controlling interests | - | (1,280 | ) | - | (1,297 | ) | ||||||||||||||
Net loss from discontinued operations attributable to IDI |
- | (41,489 | ) | - | (41,563 | ) | ||||||||||||||
Net loss attributable to IDI | $ | (7,184 | ) | $ | (45,470 | ) | $ | (13,956 | ) | $ | (47,107 | ) | ||||||||
Loss per share | ||||||||||||||||||||
Basic and diluted | ||||||||||||||||||||
Continuing operations | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.37 | ) | $ | (0.52 | ) | ||||||||
Discontinued operations | - | (2.99 | ) | - | (3.88 | ) | ||||||||||||||
$ | (0.15 | ) | $ | (3.27 | ) | $ | (0.37 | ) | $ | (4.40 | ) | |||||||||
Weighted average number of shares outstanding - | ||||||||||||||||||||
Basic and diluted | 48,084,608 | 13,896,948 | 37,776,411 | 10,710,334 | ||||||||||||||||
Comprehensive loss: | ||||||||||||||||||||
Net loss attributable to IDI, Inc. | $ | (7,184 | ) | $ | (45,470 | ) | $ | (13,956 | ) | $ | (47,107 | ) | ||||||||
Foreign currency translation adjustment | - | (136 | ) | - | (130 | ) | ||||||||||||||
Net comprehensive loss | $ | (7,184 | ) | $ | (45,606 | ) | $ | (13,956 | ) | $ | (47,237 | ) | ||||||||
IDI, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except share data) (unaudited) |
||||||||||
Six Months Ended June 30, | ||||||||||
2016 | 2015 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net loss attributable to IDI | $ | (13,956 | ) | $ | (47,107 | ) | ||||
Less: Loss from discontinued operations, net of tax | - | (41,563 | ) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||||
Depreciation and amortization | 5,605 | 76 | ||||||||
Non-cash interest expenses and related amortization | 1,202 | - | ||||||||
Share-based payments | 14,623 | 1,971 | ||||||||
Non-cash loss on exchange of warrants | 1,273 | - | ||||||||
Provision (recovery) for bad debts | 195 | (84 | ) | |||||||
Deferred income tax (benefit) expenses | (7,039 | ) | 265 | |||||||
Changes in assets and liabilities of continuing operations, net of the effects of acquisition: |
||||||||||
Accounts receivable | 869 | (172 | ) | |||||||
Prepaid expenses and other current assets | 968 | (554 | ) | |||||||
Other non-current assets | (706 | ) | - | |||||||
Trade accounts payable | (174 | ) | - | |||||||
Accrued expenses and other current liabilities | (1,227 | ) | (95 | ) | ||||||
Amounts due to related parties | - | (18 | ) | |||||||
Deferred revenue | (491 | ) | (17 | ) | ||||||
Net cash provided by (used in) operating activities from continuing operations | 1,142 | (4,172 | ) | |||||||
Net cash used in operating activities from discontinued operations | - | (337 | ) | |||||||
Net cash provided by (used in) operating activities | 1,142 | (4,509 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Purchase of property and equipment | (577 | ) | (536 | ) | ||||||
Capitalized costs included in intangible assets | (5,902 | ) | (1,319 | ) | ||||||
Proceeds from reverse acquisition | - | 3,569 | ||||||||
Acquisition, net of cash acquired | (50 | ) | - | |||||||
Net cash (used in) provided by investing activities from continuing operations | (6,529 | ) | 1,714 | |||||||
Net cash used in investing activities from discontinued operations | - | (121 | ) | |||||||
Net cash (used in) provided by investing activities | (6,529 | ) | 1,593 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from issuance of shares, net of issuance costs | 4,664 | - | ||||||||
Debt costs | (381 | ) | - | |||||||
Repayments of long-term debt | (1,125 | ) | - | |||||||
Net cash provided by financing activities | 3,158 | - | ||||||||
Net decrease in cash and cash equivalents | $ | (2,229 | ) | $ | (2,916 | ) | ||||
Cash and cash equivalents at beginning of period | 13,462 | 5,996 | ||||||||
Cash and cash equivalents at end of period | $ | 11,233 | $ | 3,080 | ||||||
SUPPLEMENTAL DISCLOSURE INFORMATION | ||||||||||
Cash paid for interest | $ | 2,510 | $ | - | ||||||
Cash paid for income taxes | $ | - | $ | - | ||||||
Share-based compensation expenses capitalized in intangible assets | $ | 499 | $ | 130 | ||||||
Issuance of common stock to a vendor for services rendered | $ | 131 | $ | - | ||||||
Treasury stock resulting from shares withheld to pay statutory taxes in connection with the vesting of restricted stock units |
$ | 272 | $ | - | ||||||
Fair value of acquisition consideration | $ | 21,206 | $ | 44,112 | ||||||
Use of Non-GAAP Financial Measures
Management evaluates the financial performance of our business on a variety of key indicators, including adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure equal to net loss, the most directly comparable financial measure based on US GAAP, plus net loss from discontinued operations, interest expense, income tax (benefit) expenses, depreciation and amortization, share-based payments, and other adjustments, as noted in the table below.
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
(In thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Net loss attributable to IDI | $ | (7,184 | ) | $ | (45,470 | ) | $ | (13,956 | ) | $ | (47,107 | ) | ||||||||
Net loss from discontinued operations attributable to IDI |
- | 41,489 | - | 41,563 | ||||||||||||||||
Interest expense, net | 1,856 | - | 3,681 | - | ||||||||||||||||
Income tax (benefit) expenses | (3,504 | ) | 265 | (7,026 | ) | 265 | ||||||||||||||
Depreciation and amortization | 2,996 | 41 | 5,605 | 76 | ||||||||||||||||
Share-based payments | 7,245 | 1,910 | 14,623 | 1,971 | ||||||||||||||||
Non-cash loss on exchange of warrants | 976 | - | 1,273 | - | ||||||||||||||||
Acquisition-related costs | 525 | 258 | 577 | 300 | ||||||||||||||||
Non-recurring litigation costs | 191 | 160 | 714 | 745 | ||||||||||||||||
Adjusted EBITDA | $ | 3,101 | $ | (1,347 | ) | $ | 5,491 | $ | (2,187 | ) | ||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160808005304/en/
Source:
IDI, Inc.
Jordyn Kopin, 646-356-8469
Director, Investor
Relations
JKopin@ididata.com