Sequential revenue growth of 15.3% in the fourth quarter as end markets continue to recover from the COVID-19 downturn
54.9% year-over-year subscription revenue growth in the fourth quarter, driven by a net increase of approximately 27,000 paid subscriptions and strong corporate subscription revenue for the quarter
Net cash from operating activities for the fourth quarter of $ 30.7 million, resulting in free cash flow of $ 30.6 million for the quarter
BURLINGTON, Mass., March 9, 2021 (GLOBE NEWSWIRE) – Avid® (NASDAQ: AVID), a leading technology provider to the media and entertainment industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2020 .
Total revenue increased 15.3% sequentially in the fourth quarter as many of Avid's end markets showed continued signs of recovery from the COVID-19 pandemic, while still being lower year over year. During the fourth quarter, the company's recurring revenue components remained strong with reported subscription revenue of $ 24.5 million, up 54.9% year over year. This reflects the strong corporate subscription revenue for the quarter. At the end of 2020, the company had a $ 231.3 million backlog in sales that is expected to be recognized in the next 12 months. This is an increase of 16.0% from the end of 2019. The fourth quarter continued to result in improved profitability and a strong seasonal contribution from working capital to free cash flow of $ 30.6 million for the quarter, the highest quarterly amount since 2007.
The non-recurring revenue shares of the company's business related to products and professional services continued to show strong signs of sequential recovery in the fourth quarter, although they are still below pre-COVID levels. Perpetual software license and integrated solutions product revenue increased 19.2% sequentially to $ 42.6 million in the fourth quarter, but declined 28.7% year over year.
For 2020 as a whole, Avid's revenues were negatively impacted by the COVID-19 pandemic. They fell by 12.5% compared to 2019. However, subscription revenue grew 61.2% to $ 72.8 million, exceeding 20% of total revenue from 11% in 2019. In 2020, the company saw its gross margin increase 280 basis points to 63.3%, which was mainly was due to a greater mix of software and subscription sales during the year. The benefit from the higher gross margin and a decrease in operating expenses from the cost savings achieved during the year resulted in improved profitability and cash generation. As of December 31, 2020, the company had cash and cash equivalents of $ 79.9 million.
Fourth quarter 2020 financial and business highlights
- Subscription revenue was $ 24.5 million, an increase of 54.9% year over year.
- Paid cloud-enabled software subscriptions grew 57.8% year over year to around 296,000 as of December 31, 2020 and around 27,000 in the fourth quarter.
- Subscription and maintenance revenues were $ 55.5 million, up 12.7% year over year.
- Total revenue was $ 104.3 million, an increase of 15.3% from the previous quarter and a decrease of (10.3%) year over year.
- The gross margin was 62.7%, a decrease of 30 basis points from the previous year. The non-GAAP gross margin was 63.1%, a decrease of 10 basis points from the previous year.
- Operating expenses were $ 54.5 million, down (5.3%) from the previous year. Non-GAAP operating expenses were $ 46.3 million, down (14.9%) from the previous year.
- Operating income was $ 10.8 million, down (31.0%) from the prior year. Non-GAAP operating income was $ 19.4 million, an increase of 2.1% year over year.
- Adjusted EBITDA was $ 21.6 million, an increase of 2.0 percent year over year. The adjusted EBITDA margin was 20.7%, an increase of 250 basis points over the previous year.
- Net earnings per common share were $ 0.16, down from $ 0.35 for the fourth quarter of 2019. Net earnings per common share for the same period last year included a one-time benefit of $ 0.14 per share related to an allowance for certain deferred tax assets. Non-GAAP net earnings per share were $ 0.33, down from $ 0.28 for the fourth quarter of 2019.
- Cash flow from operating activities for the quarter was $ 30.7 million. This represents an increase of $ 12.2 million over cash flow from operating activities of $ 18.5 million in the prior-year period.
- Free cash flow was $ 30.6 million for the quarter, an increase of $ 13.7 million from free cash flow of $ 17.0 million for the same period last year.
Financial and business highlights of the 2020 financial year
- Subscription revenue was $ 72.8 million, an increase of 61.2% year over year.
- Subscription and maintenance revenues were $ 197.0 million, an increase of 12.2% over the prior year.
- Total revenue was $ 360.5 million, down (12.5%) from the previous year.
- LTM recurring revenue accounted for 74.2% of the company's revenue for the fiscal year ended December 31, 2020, an increase of 1,210 basis points from 62.1% the previous year.
- The gross margin was 63.3%, an increase of 280 basis points over the previous year. The non-GAAP gross margin was 63.7%, an increase of 220 basis points over the previous year.
- Operating expenses were $ 196.8 million, down (9.3%) from the previous year. Non-GAAP operating expenses were $ 179.5 million, down (13.1%) from the prior year.
- Operating income was $ 31.6 million, down (1.7%) from the previous year. Non-GAAP operating income was $ 50.1 million, an increase of 7.1% year over year.
- Adjusted EBITDA was $ 58.6 million, an increase of 4.7% year over year. The adjusted EBITDA margin was 16.3%, an increase of 270 basis points over the previous year.
- Net income per common share was $ 0.25 compared to $ 0.17 in 2019. Non-GAAP net income per share was $ 0.65, up 27.3% from $ 0.51 in 2019.
- Cash flow from operating activities was $ 39.6 million in 2020, an increase of $ 19.9 million over cash flow from operating activities of $ 19.6 million in 2019.
- Free cash flow was $ 33.9 million in 2020, an increase of $ 21.4 million from free cash flow of $ 12.5 million in 2019.
- The annual contract value was $ 300.6 million as of December 31, 2020, up 7.4% from $ 279.8 million as of December 31, 2019.
Jeff Rosica, Avid CEO and President said, “We are excited about the strength and growth of our recurring income business in the fourth quarter. The growth in our recurring income was largely driven by the continued expansion of our subscription revenue, which has now seen a second phase of growth as several enterprise customers introduced subscription plans during the quarter. In addition to the ongoing turnaround and sequential improvement we saw in the one-off elements of our business, we also saw strong booking and billing performance in the fourth quarter, which added to a stronger opening backlog for 2021 and made us better at the start of the fiscal year positioned New Years. "Mr. Rosica added," As our customers adapt their business models, we believe they will continue to invest in value-added technology and that we are well positioned to meet those needs for them. We also expect the The full year benefit of our optimized cost structure will enable Avid to become a stronger and more profitable company in 2021 and beyond. "
Ken Gayron, Avid Executive Vice President and Chief Financial Officer, said, “We are delighted that we continued to make significant progress in the fourth quarter in increasing our higher margin revenue streams and improving our cost structure to deliver our strongest quarterly free cash flow This improvement in free cash flow has further strengthened our balance sheet and positioned us for the successful refinancing of our bank debt, which we completed in January 2021. "Mr. Gayron continued," Our successful refinancing should reduce our annual interest costs by approximately $ 10 million. Along with the expected improvement in our business, we should be able to drive further improvements in free cash flow as we look forward to the rest of 2021 and beyond. "
Guidelines for the first quarter and all of 2021
For the first quarter of 2021, Avid announces guidance for revenue, subscription and maintenance revenue, adjusted EBITDA, and non-GAAP net earnings per share. For the full year 2021, Avid provides guidelines for subscription and maintenance revenues and free cash flow. Avid is currently planning to expand its forecasts for the full year 2021 during the course of the year to include additional key figures and to host an investor day in May 2021.
(in USD millions, excluding amounts per share) | Q1 2021 |
revenue | $ 88- $ 94 |
Subscription and Maintenance Revenue | $ 50- $ 53 |
Adjusted EBITDA | $ 12.2 – $ 15.8 |
Non-GAAP Net Earnings Per Share | $ 0.17 – $ 0.24 |
All year round 2021 | |
Subscription and Maintenance Revenue | $ 214- $ 221 |
Free cash flow | $ 45- $ 52 |
All guidance presented by the Company is inherently uncertain and is subject to numerous risks and uncertainties. Avid's actual future results of operations could differ materially from those shown in the table above. For an explanation of some of the key assumptions underlying the guidelines and the main risks and uncertainties associated with these forward-looking statements, see “Forward-Looking Statements” below and the Avid Technology Q4 and Full Year 2020 Business Update Presentation on the Investor Relations website from Avid at ir.avid.com.
Conference call to discuss fourth quarter and fiscal 2020 results on March 9, 2021
Avid will host a conference call at 5:00 p.m. on Tuesday, March 9, 2021 to discuss fourth quarter and fiscal 2020 financial results. ET. Attendees can attend the webcast in listen-only mode and access the presentation slides through the link on the Avid Investor Relations website located on the Events tab at ir.avid.com. Participants wishing to ask a question can access the call by dialing +1 856-344-9206 and referring to the verification code 1881087. Please connect at least 15 minutes in advance to ensure a timely connection to the call. A recording of the call will also be available on the Avid Investor Relations website for a limited time shortly after the call is completed.
Non-GAAP Financial Metrics and Operational Metrics
Avid contains non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Operating Income, and Non-GAAP -compliant net result (loss). per share. The company also includes operating metrics for cloud-enabled software subscriptions, revenue backlog, recurring revenue, recurring LTM revenue in%, and annual contract value in this release. Avid believes that the non-GAAP financial and operational metrics contained in this press release provide investors with useful information in evaluating company performance. Unless otherwise stated, all financial and operational information is reported based on actual exchange rates. The definitions of the non-GAAP financial metrics and operational metrics are included in our Form 8-K, filed today. The reconciliation of the non-GAAP financial measures presented in this press release to the Company's comparable GAAP financial measures for the periods presented is set out below and is also included in the supplementary financial and operational data sheet available on our Investor Relations website at ir.avid .com, which also includes definitions of all operational metrics.
Forward-Looking Statements
Certain information in this press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which have been made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements related to our future financial performance or position, results of operations, business strategy, plans and goals of management for future operations, and other statements that are not historical facts. You can identify forward-looking statements by using forward-looking words such as "may", "will", "anticipate", "expect", "believe", "estimate", "intend", "plan", "plan" should "," search ”or other comparable terms.
Readers of this press release should understand that these forward-looking statements are not guarantees of performance or results. Forward-looking statements provide our current expectations and beliefs about future events and are subject to risks, uncertainties and factors relating to our business and operations, all of which are difficult to predict and could cause our actual results to differ materially from the expectations expressed or implied by such forward-looking statements.
These risks, uncertainties and factors include, but are not limited to: risks related to the impact of the coronavirus (COVID-19) outbreak on our business, suppliers, consumers, customers and employees; our liquidity; our ability to implement our strategic plan, including our cost-saving strategies, and to meet customer needs; our ability to retain and hire key personnel; our ability to produce innovative products to respond to changing market demand, particularly in the media industry; our ability to successfully implement our product development plans; Competitive factors; History of losses; Fluctuations in sales due, among other things, to our performance and our risks in certain regions or markets; our greater indebtedness and ability to service it and meet its obligations; Restrictions in our credit facilities; our move to a subscription model and the associated impact on our earnings and our ability to predict future earnings; Fluctuations in subscription and maintenance renewal rates; extended sales cycles; Exchange rate fluctuations; seasonal factors; adverse changes in economic conditions; Deviations in our sales backlog and their realization; Risks related to the availability and prices of raw materials, including adverse effects from inflation, weather conditions or health pandemics; Disruptions or inefficiencies in our supply chain and / or operations, including the COVID-19 outbreak; the costs, disruptions, and distractions of management's attention due to the COVID-19 outbreak; the possibility of legal proceedings that conflict with our company; and other risks described in our reports filed from time to time with the United States Securities and Exchange Commission. In addition, business may be adversely affected by future legal, regulatory or other changes, including changes in tax law, as well as other economic, business and / or competitive factors. The risks mentioned above do not claim to be exhaustive. We caution readers not to place undue reliance on forward-looking statements in this press release, which speak only as of the date of this press release. We are not responsible for updating or revising forward-looking statements unless required by law.
About Avid
Avid offers the most open and efficient media platform that combines content creation with collaboration, protection, distribution and consumption of resources. Avid's outstanding customer community leverages Avid's comprehensive tools and workflow solutions to create, distribute, and monetize the world's most watched, loved, and listened to media – from prestigious and award-winning movies to popular television shows, news shows, and sporting events in the Watch TV. and acclaimed music recordings and live concerts. Avid's industry-leading solutions with the most flexible deployment and pricing options include Media Composer®, Pro Tools®, Avid NEXIS®, MediaCentral®, iNEWS®, AirSpeed®, Sibelius®, Avid VENUE ™, FastServe® ™ and Maestro ™. For more information about Avid solutions and services, visit www.avid.com, connect with Avid on Facebook, Instagram, Twitter, YouTube, LinkedIn, or subscribe to Avid blogs.
© 2021 Avid Technology, Inc. All rights reserved. Avid, the Avid logo, Avid NEXIS, FastServe, AirSpeed, iNews, Maestro, MediaCentral, Media Composer, Pro Tools, Avid VENUE, and Sibelius are trademarks or registered trademarks of Avid Technology, Inc. or its subsidiaries in the United States and / or other countries. All other trademarks are property of their respective owners. Product features, specifications, system requirements and availability are subject to change without notice.
AVID TECHNOLOGY, INC. | |||||||||||||||||
Condensed consolidated income statement | |||||||||||||||||
(unaudited – in thousands, except data per share) | |||||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net sales: | |||||||||||||||||
Products | $ | 42,642 | $ | 59,812 | $ | 140,762 | $ | 207.445 | |||||||||
Services | 61,659 | 56,494 | 219,704 | 204,343 | |||||||||||||
Total net sales | 104,301 | 116,306 | 360.466 | 411,788 | |||||||||||||
Cost of sales: | |||||||||||||||||
Products | 25,349 | 30.264 | 84.222 | 109,799 | |||||||||||||
Services | 13,602 | 12,769 | 47,924 | 49.176 | |||||||||||||
Amortization of intangible assets | – – | – – | – – | 3.738 | |||||||||||||
Total cost of revenue | 38,951 | 43,033 | 132.146 | 162.713 | |||||||||||||
Gross income | 65,350 | 73.273 | 228.320 | 249.075 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and Development | 14,902 | 16,018 | 57.018 | 62,343 | |||||||||||||
Marketing and Sales | 22,660 | 26,603 | 87,637 | 99,944 | |||||||||||||
General and administrative | 12,908 | 14,816 | 47.052 | 53,362 | |||||||||||||
Amortization of intangible assets | – – | – – | – – | 694 | |||||||||||||
Restructuring costs, net | 4.038 | 113 | 5.046 | 629 | |||||||||||||
Business expense | 54.508 | 57,550 | 196.753 | 216.972 | |||||||||||||
Operating profit | 10,842 | 15,723 | 31,567 | 32.103 | |||||||||||||
Interest and other expenses, net | (3,929 | ) | (5.584 | ) | (19, 133 | ) | (29.578 | ) | |||||||||
Earnings before taxes | 6,913 | 10.139 | 12,434 | 2.525 | |||||||||||||
Provision for (benefit of) income taxes | (174 | ) | (5.231 | ) | 1,372 | (5.076 | ) | ||||||||||
Net income | $ | 7,087 | $ | 15,370 | $ | 11,062 | $ | 7.601 | |||||||||
Net income per ordinary share – undiluted | $ | 0.16 | $ | 0.36 | $ | 0.25 | $ | 0.18 | |||||||||
Earnings per common share – diluted | $ | 0.16 | $ | 0.35 | $ | 0.25 | $ | 0.17 | |||||||||
Weighted Average Ordinary Shares Outstanding – Basis | 44.288 | 43,060 | 43,822 | 42,649 | |||||||||||||
Weighted average common shares outstanding – diluted | 45,541 | 43,737 | 44,878 | 43,495 | |||||||||||||
AVID TECHNOLOGY, INC. | ||||||||||||||||
Reconciliation of GAAP financial measures to non-GAAP financial measures | ||||||||||||||||
(unchecked – by the thousands) | ||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
GAAP sales | 2020 | 2019 | 2020 | 2019 | ||||||||||||
GAAP sales | $ | 104,301 | $ | 116,306 | $ | 360.466 | $ | 411,788 | ||||||||
Non-GAAP Gross Income | ||||||||||||||||
GAAP gross profit | 65,350 | 73.273 | 228.320 | 249.075 | ||||||||||||
Amortization of intangible assets | – – | – – | – – | 3.738 | ||||||||||||
Share-based payment | 431 | 197 | 1.339 | 617 | ||||||||||||
Non-GAAP Gross Income | $ | 65,781 | $ | 73,470 | $ | 229.659 | $ | 253.430 | ||||||||
Non-GAAP gross margin | 63.1 | %. | 63.2 | %. | 63.7 | %. | 61.5 | %. | ||||||||
Non-GAAP operating expenses | ||||||||||||||||
GAAP operating expenses | 54.508 | 57,550 | 196.753 | 216.972 | ||||||||||||
Less amortization of intangible assets | (105 | ) | – – | (411 | ) | (695 | ) | |||||||||
Less stock-based pay | (2.101 | ) | (1,973 | ) | (9.325 | ) | (7.341 | ) | ||||||||
Less restructuring costs, net | (4.038 | ) | (113 | ) | (5.046 | ) | (631 | ) | ||||||||
Less restatement costs | – – | 15th | – – | 18th | ||||||||||||
Lower acquisition, integration and other costs | (1.015 | ) | (988 | ) | (832 | ) | (1.446 | ) | ||||||||
Less costs for the efficiency program | (886 | ) | (59 | ) | (1.331 | ) | (250 | ) | ||||||||
Less COVID-19 costs | (27 | ) | – – | (278 | ) | – – | ||||||||||
Non-GAAP operating expenses | $ | 46,336 | $ | 54,432 | $ | 179,530 | $ | 206.627 | ||||||||
Non-GAAP Operating Income | ||||||||||||||||
GAAP operating income | 10,842 | 15,723 | 31,567 | 32.103 | ||||||||||||
Amortization of intangible assets | 105 | – – | 411 | 4,433 | ||||||||||||
Share-based payment | 2.532 | 2,170 | 10,664 | 7,958 | ||||||||||||
Restructuring costs, net | 4.038 | 113 | 5.046 | 631 | ||||||||||||
Restatement costs | – – | (15 | ) | – – | (18 | ) | ||||||||||
Acquisition, integration and other costs | 1,015 | 988 | 832 | 1,446 | ||||||||||||
Efficiency program costs | 886 | 59 | 1.331 | 250 | ||||||||||||
COVID-19 related expenses | 27 | – – | 278 | – – | ||||||||||||
Non-GAAP Operating Income | $ | 19,445 | $ | 19,038 | $ | 50.129 | $ | 46,803 | ||||||||
Adjusted EBITDA | ||||||||||||||||
Non-GAAP Operating Income (from top) | 19,445 | 19,038 | 50.129 | 46,803 | ||||||||||||
depreciation | 2.188 | 2.166 | 8.505 | 9.202 | ||||||||||||
Adjusted EBITDA | $ | 21,633 | $ | 21.204 | $ | 58,634 | $ | 56.005 | ||||||||
Adjusted EBITDA margin | 20.7 | %. | 18.2 | %. | 16.3 | %. | 13.6 | %. | ||||||||
Non-GAAP Net Income | ||||||||||||||||
Non-GAAP Operating Income (from top) | 19,445 | 19,038 | 50.129 | 46,803 | ||||||||||||
Less non-GAAP interest and other expenses | (3,929 | ) | (5.584 | ) | (19, 133 | ) | (22.207 | ) | ||||||||
Less non-GAAP income tax | (287 | ) | (1,299 | ) | (1,868 | ) | (2,417 | ) | ||||||||
Non-GAAP Net Income | $ | 15.229 | $ | 12,155 | $ | 29.128 | $ | 22,179 | ||||||||
Weighted Average Ordinary Shares Outstanding – Basis | 44.288 | 43,060 | 43,822 | 42,649 | ||||||||||||
Weighted average common shares outstanding – diluted | 45,541 | 43,737 | 44,878 | 43,495 | ||||||||||||
Non-GAAP Earnings Per Share – Fundamental | $ | 0.34 | $ | 0.28 | $ | 0.66 | $ | 0.52 | ||||||||
Non-GAAP Earnings Per Share – Diluted | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.51 | ||||||||
Free cash flow | ||||||||||||||||
GAAP net cash flow (used in) from operating activities | 30,704 | 18,529 | 39,555 | 19,641 | ||||||||||||
Investments | (73 | ) | (1.556 | ) | (5,692 | ) | (7.185 | ) | ||||||||
Free cash flow | $ | 30,631 | $ | 16,973 | $ | 33,863 | $ | 12,456 | ||||||||
Free cash flow conversion of the adjusted EBITDA | 141.6 | %. | 80.0 | %. | 57.8 | %. | 22.2 | %. | ||||||||
These non-GAAP measures reflect how Avid manages its business internally. Avid's non-GAAP measures may differ from how other companies present non-GAAP measures. Non-GAAP financial measures are not based on comprehensive accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, disclosures required by generally accepted accounting principles, or GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. |
AVID TECHNOLOGY, INC. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(unaudited – in thousands) | ||||||||
December 31, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 79.899 | $ | 69.085 | ||||
Limited money | 1.422 | 1.663 | ||||||
Accounts receivable, net of allowances of $ 1,478 and $ 958 at December 31, 2020 and December 31, 2019, respectively | 78.614 | 73.773 | ||||||
Stocks | 26,568 | 29,166 | ||||||
Prepaid expenses | 6.044 | 9.425 | ||||||
Contract assets | 18,579 | 19.494 | ||||||
Other current assets | 2,366 | 6.125 | ||||||
Total current assets | 213,492 | 208.731 | ||||||
Property and equipment, net | 16.814 | 19,580 | ||||||
Goodwill | 32.643 | 32.643 | ||||||
Right of use assets | 29,430 | 29.747 | ||||||
Deferred tax assets, net | 6.801 | 7.479 | ||||||
Other long-term assets | 5,958 | 6.113 | ||||||
Total assets | $ | 305.138 | $ | 304.293 | ||||
LIABILITIES AND STOCKHOLDERS & # 39; DEFICIT | ||||||||
Short-term liabilities: | ||||||||
Settlement liabilities | $ | 21,823 | $ | 39.888 | ||||
Accrued compensation and benefits | 29.105 | 19,524 | ||||||
Accrued expenses and other current liabilities | 42.264 | 36.759 | ||||||
Income taxes payable | 1.664 | 1.945 | ||||||
Short-term debt | 4,941 | 30.554 | ||||||
Deferred revenues | 87.974 | 83,589 | ||||||
Total short-term liabilities | 187.771 | 212.259 | ||||||
Long-term debt | 202.759 | 199.034 | ||||||
Long-term deferred revenues | 11.284 | 14.312 | ||||||
Long-term lease liabilities | 28,462 | 28.127 | ||||||
Other long-term liabilities | 7.786 | 5.646 | ||||||
Total liabilities | 438,062 | 459.378 | ||||||
Stockholders & # 39; deficit: | ||||||||
Common stock | 442 | 430 | ||||||
Additional paid-in capital | 1,036,658 | 1,027,824 | ||||||
Accumulated deficit | (1,168,347 | ) | (1,179,409 | ) | ||||
Accumulated other comprehensive loss | (1.677 | ) | (3,930 | ) | ||||
Total stockholders & # 39; deficit | (132,924 | ) | (155.085 | ) | ||||
Total liabilities and stockholders & # 39; deficit | $ | 305.138 | $ | 304.293 | ||||
AVID TECHNOLOGY, INC. | |||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||
(unaudited – in thousands) | |||||||||||||
Twelve Months Ended | |||||||||||||
December 31, | |||||||||||||
2020 | 2019 | ||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 11,062 | $ | 7.601 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 8.505 | 13.634 | |||||||||||
Provision for doubtful accounts | 1.298 | 208 | |||||||||||
Stock-based compensation expense | 10.664 | 7,958 | |||||||||||
Non-cash provision for restructuring | 5.046 | – – | |||||||||||
Non-cash interest expense | 3,651 | 6.143 | |||||||||||
Loss on extinguishment of debt | – – | 2,878 | |||||||||||
Unrealized foreign currency transaction loss | 1,570 | 971 | |||||||||||
Benefit from (provision for) deferred taxes | 827 | (6.309 | ) | ||||||||||
Changes in operating assets and liabilities: | |||||||||||||
Accounts receivable | (6.124 | ) | (6.227 | ) | |||||||||
Stocks | 2,598 | 3.790 | |||||||||||
Prepaid expenses and other assets | 6.176 | (44 | ) | ||||||||||
Abbrechnungsverbindlichkeiten | (18,141 | ) | 626 | ||||||||||
Accrued expenses, compensation and benefits and other liabilities | 10,432 | (6,892 | ) | ||||||||||
Income taxes payable | (281 | ) | 91 | ||||||||||
Deferred revenue and contract assets | 2,272 | (4,787 | ) | ||||||||||
Net cash provided by operating activities | 39,555 | 19,641 | |||||||||||
Cash flows from investing activities: | |||||||||||||
Purchases of property and equipment | (5,692 | ) | (7,185 | ) | |||||||||
Net cash used in investing activities | (5,692 | ) | (7,185 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from revolving line of credit | 22,000 | – – | |||||||||||
Repayment on revolving line of credit | (22,000 | ) | – – | ||||||||||
Proceeds from long-term debt | 7,800 | 79,292 | |||||||||||
Repayment of debt | (2,250 | ) | (1,438 | ) | |||||||||
Payments for repurchase of outstanding Notes | (28,867 | ) | (76,269 | ) | |||||||||
Proceeds from the issuance of common stock under employee stock plans | 547 | 309 | |||||||||||
Common stock repurchases for tax withholdings for net settlement of equity awards | (2,365 | ) | (3,586 | ) | |||||||||
Partial Unwind capped call cash receipt | 875 | 27 | |||||||||||
Payments for credit facility issuance costs | (289 | ) | (5,979 | ) | |||||||||
Net cash used in financing activities | (24,549 | ) | (7,644 | ) | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 1,748 | (331 | ) | ||||||||||
Net decrease in cash, cash equivalents, and restricted cash | 11,062 | 4,481 | |||||||||||
Cash, cash equivalents and restricted cash at beginning of the period | 72,575 | 68,094 | |||||||||||
Cash, cash equivalents and restricted cash at end of the period | $ | 83,637 | $ | 72,575 | |||||||||
Supplemental information: | |||||||||||||
Zahlungsmittel und Zahlungsmitteläquivalente | $ | 79,899 | $ | 69,085 | |||||||||
Beschränktes Geld | 1,422 | 1,663 | |||||||||||
Restricted cash included in other long-term assets | 2,316 | 1,827 | |||||||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | 83,637 | $ | 72,575 | |||||||||
AVID TECHNOLOGY, INC. | |||||||||||
Supplemental Revenue Information | |||||||||||
(unaudited – in millions) | |||||||||||
December 31 | 30. September | December 31 | |||||||||
2020 | 2020 | 2019 | |||||||||
Revenue Backlog* | |||||||||||
Deferred Revenue | $ 99.3 | $ 81.2 | $ 97.9 | ||||||||
Other Backlog | 336.2 | 321.7 | 342.3 | ||||||||
Total Revenue Backlog | $ 435.5 | $ 402.9 | $ 440.2 | ||||||||
The expected timing of recognition of revenue backlog as of December 31, 2020 is as follows: | |||||||||||
2021 | 2022 | 2023 | Thereafter | total | |||||||
Deferred Revenue | $ 88.0 | $ 6.9 | $ 2.5 | $ 1.9 | $ 99.3 | ||||||
Other Backlog | 143.3 | 99.9 | 65.5 | 27.5 | $ 336.2 | ||||||
Total Revenue Backlog | $ 231.3 | $ 106.8 | $ 68.0 | $ 29.4 | $ 435.5 | ||||||
*A definition of Revenue Backlog is included in our Form 10-K and the supplemental financial and operational data sheet available on our investor relations webpage at ir.avid.com. |