Stamps.com Reports Fourth Quarter And Fiscal 2016 Results
EL SEGUNDO, CA — (Marketwired) — 02/23/17 — Stamps.com®(NASDAQ: STMP), the leading provider of postage online and shipping software solutions to over 675 thousand customers, today announced results for the fourth quarter and fiscal year ended December 31, 2016.
Fourth Quarter 2016 Financial Highlights
- Total revenue was
$105.9 million , up 52% compared to the fourth quarter of 2015. - GAAP net income was
$29.0 million , compared to a net loss of$0.1 million in the fourth quarter of 2015. - GAAP net income per fully diluted share was
$1.61 , compared to a net loss of$0.00 in the fourth quarter of 2015. - Non-GAAP adjusted EBITDA was
$55.9 million , up 85% compared to$30.2 million in the fourth quarter of 2015. - Non-GAAP adjusted income per fully diluted share was
$2.73 , up 74% compared to$1.57 in the fourth quarter of 2015.
“We were very pleased with our fourth quarter and fiscal 2016 performance,” said Ken McBride, Stamps.com’s chairman and CEO. “This was another exceptional year for Stamps.com with strong execution in all of our business areas. During 2016 we continued to see the benefits from our 2014 acquisitions of ShipStation and ShipWorks, and we successfully integrated and realized synergies from our 2015 acquisition of Endicia. During 2016 we completed our acquisition of ShippingEasy and began the integration of that exciting new business as well. Across all of our products and services, we are realizing synergies in sales and marketing, operations, customer service, and product development, and we believe that we have built a strong platform for pursuing all of our target customers. We are very excited about our opportunities in 2017 and beyond.”
Fourth Quarter 2016 Detailed Results
Fourth quarter 2016 total revenue was
Fourth quarter 2016 GAAP income from operations was
Fourth quarter 2016 GAAP income from operations included
Fourth quarter 2015 GAAP income from operations included
Therefore, fourth quarter 2016 non-GAAP income from operations, non-GAAP adjusted income and non-GAAP adjusted income per fully diluted share increased by 88%, 75% and 74% year-over-year, respectively.
Non-GAAP income from operations, non-GAAP adjusted income and non-GAAP adjusted income per share are described further in the “About Non-GAAP Financial Measures” section of this release and are reconciled to the corresponding GAAP measures in the following tables (unaudited):
2016 Detailed Results
2016 total revenue was
2016 GAAP income from operations was
2016 GAAP income from operations included
2015 GAAP income from operations included
Therefore, 2016 non-GAAP income from operations, non-GAAP adjusted income and non-GAAP adjusted income per fully diluted share increased by 115%, 106% and 96% year-over-year, respectively.
Non-GAAP income from operations, non-GAAP adjusted income and non-GAAP adjusted income per share are described further in the “About Non-GAAP Financial Measures” section of this release and are reconciled to the corresponding GAAP measures in the following tables (unaudited):
2016 GAAP Net Income and Non-GAAP Adjusted EBITDA
2016 GAAP net income was
2016 non-GAAP adjusted EBITDA was
Adjusted EBITDA is a non-GAAP financial measure which is described further in the “About Non-GAAP Financial Measures” section of this release and is reconciled to GAAP net income in the following table (unaudited):
Taxes
For the fourth quarter of 2016, the Company reported a GAAP income tax expense of
Share Repurchase and Debt Repayment
During the fourth quarter 2016, the Company repurchased approximately 316 thousand shares at a total cost of approximately
On October 25, 2016 the Board of Directors approved a new share repurchase program, which became effective November 7, 2016, that replaced the company’s prior repurchase program and authorizes the Company to repurchase up to
During the fourth quarter 2016, the Company made required principal repayments of
Business Outlook
For fiscal year 2017, the Company currently expects total revenue to be in a range of approximately
For fiscal year 2017, the Company currently expects GAAP net income to be in a range of approximately
The following table is provided to facilitate a reconciliation of fiscal year 2017 expected non-GAAP adjusted EBITDA to expected GAAP net income:
Company Metrics and Conference Call
2016 Company metrics, updated to include the fourth quarter, is available at http://investor.stamps.com (under a tab on the left side called Company Information, Metrics).
The Stamps.com financial results conference call will be webcast today at
About Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy
Stamps.com (NASDAQ: STMP) is the leading provider of postage online and shipping software solutions to over 675 thousand customers, including consumers, small businesses, e-commerce shippers, enterprises, and high volume shippers. Stamps.com offers solutions that help businesses run their shipping operations more smoothly and function more successfully under the brand names Stamps.com, Endicia, ShipStation, ShippingEasy and ShipWorks. Stamps.com’s family of brands provides seamless access to mailing and shipping services through integrations with more than 400 unique partner applications.
ShipStation is a leading web-based shipping solution that helps e-commerce retailers import, organize, process, package, and ship their orders quickly and easily from any web browser. ShipStation features the most integrations of any e-commerce web-based solution with more than 150 shopping carts, marketplaces, package carriers, and fulfillment services. Integration partners include eBay, PayPal, Amazon, Etsy, Square, Shopify, BigCommerce, Volusion, Magento, Squarespace, and carriers such as USPS, UPS, FedEx and DHL. ShipStation has sophisticated automation features such as automated order importing, custom hierarchical rules, product profiles, and fulfillment solutions that enable its customers to complete their orders, wherever they sell, and however they ship.
ShipWorks is the leading client-based shipping solution that helps high volume shippers import, organize, process, fulfill, and ship their orders quickly and easily from any standard PC. With integrations to more than 90 shopping carts, marketplaces, package carriers, and fulfillment services, ShipWorks has the most integrations of any high-volume client shipping solution. Package carriers include USPS, UPS, FedEx, DHL, OnTrac and many more. Marketplace and shopping cart integrations include eBay, PayPal, Amazon, Etsy, Shopify, BigCommerce, Volusion, Channel Advisor, Magento, and many more. ShipWorks has sophisticated automation features such as a custom rules engine, automated order importing, automatic product profile detection, and fulfillment automation, which enable high volume shippers to complete their orders quickly and efficiently.
ShippingEasy is a leading web-based shipping software solution that allows online retailers and e-commerce merchants to organize, process, fulfill and ship their orders quickly and easily. ShippingEasy integrates with leading marketplaces, shopping carts, and e-commerce platforms to allow order fulfillment and tracking data to populate in real time across all systems. The ShippingEasy software downloads orders from all selling channels and automatically maps custom shipping preferences, rates and delivery options across all supported carriers.
About Non-GAAP Financial Measures
To supplement the Company’s condensed consolidated financial statements presented in accordance with GAAP, Stamps.com uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP income from operations, non-GAAP adjusted income, non-GAAP adjusted income per fully diluted share and adjusted EBITDA. Non-GAAP adjusted income per fully diluted share is calculated as adjusted non-GAAP net income divided by fully diluted shares. Prior to the second quarter 2016, the Company referred to non-GAAP adjusted income as non-GAAP net income. Adjusted EBITDA as calculated in this release represents earnings before interest and other expense, net, interest and other income, net, income tax expense or benefit, depreciation and amortization and excludes certain items, such as stock-based compensation expense, described in this release used to reconcile GAAP to non-GAAP income from operations. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP financial measures may differ from similarly titled measures used by other companies. Reconciliation of non-GAAP financial measures included in this press release to the corresponding GAAP measures can be found in the financial tables of this earnings release.
Non-GAAP financial measures are provided to enhance investors’ overall understanding of the Company’s financial performance and prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes the non-GAAP measures that exclude certain non-cash items including stock-based compensation expense, amortization of acquired intangibles, amortization of debt issuance costs, contingent consideration charges and income tax adjustments, and exclude certain expenses such as acquisition related expenses and litigation settlement expenses, provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be reflective of core business operating results. The Company believes that non-GAAP financial measures, when viewed with GAAP results and the accompanying reconciliation, enhance the comparability of results against prior periods and allow for greater transparency of financial results. Management uses non-GAAP financial measures in making financial, operating, compensation and planning decisions. The Company believes non-GAAP financial measures facilitate management and investors comparison of the Company’s financial performance to that of prior periods as well as trend analysis over time.
Share Repurchase Timing
The timing of share repurchases, if any, and the number of shares to be bought at any one time will depend on market conditions, the Company’s compliance with the covenants in its Credit Agreement and the Company’s assessment of the risk that its net operating loss asset could be impaired if such repurchases were undertaken. Share repurchases may be made from time-to-time on the open market or in negotiated transactions at the Company’s discretion in compliance with Rule 10b-18 of the United States Securities and Exchange Commission. The Company’s purchase of any of its shares may be subject to limitations imposed on such purchases by applicable securities laws and regulations and the rules of the Nasdaq Stock Market.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts, and may relate to future events or the company’s anticipated results, business strategies or capital requirements, among other things, all of which involve risks and uncertainties. You can identify many (but not all) such forward-looking statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “projects,” “seeks,” “intends,” “plans,” “could,” “would,” “may” or other similar expressions. Important factors, including the Company’s ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments, to complete and ship its products and to maintain desirable economics for its products, as well as the timing of when the Company will utilize its deferred tax assets, and obtain or maintain regulatory approval, which could cause actual results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Matters described in forward-looking statements may also be affected by other known and unknown risks, trends, uncertainties and factors, many of which are beyond the company’s ability to control or predict. Stamps.com undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Stamps.com, the Stamps.com logo, Endicia, ShipStation, ShipWorks, and ShippingEasy are trademarks or registered trademarks of Stamps.com Inc. and its subsidiaries. All other brands and names are property of their respective owners.
Investor Contact:
Jeff Carberry
Stamps.com Investor Relations
(310) 482-5830
[email protected]
Press Contact:
Eric Nash
Stamps.com Public Relations
(310) 482-5942
[email protected]
Source: Stamps.com
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