Total Revenue of $37.7 million and EBITDA $8.8 million
NaviSite Financial Tables
Net Loss to EBITDA Reconciliation
For the Three Months Ended
January 31, 2009 January 31, 2008
---------------------Unaudited---------------------
------------------(In thousands)------------------
Net loss, as reported $ (2,491 ) $ (2,139 )
Depreciation 4,010 3,186
Interest income/expense, net 3,738 2,947
Income taxes 499 500
Amortization 1,832 2,208
EBITDA 7,588 6,702
Stock based compensation 768 1,271
Severance 114 113
Discontinued operations 50 237
Transaction fees, integration costs, settlements 257 228
EBITDA (excludes impairment costs, stock based compensation, $ 8,777 $ 8,551
severance, discontinued operations, loss on debt extinguishment and
transaction fees, integration costs and settlements)
For the Six Months Ended
January 31, 2009 January 31, 2008
---------------------Unaudited---------------------
------------------(In thousands)------------------
Net loss, as reported $ (5,038 ) $ (6,509 )
Depreciation 8,047 5,855
Interest income/expense, net 6,778 5,490
Income taxes 998 913
Amortization 3,670 3,926
EBITDA 14,455 9,675
Stock based compensation 1,737 2,508
Severance 645 275
Discontinued operations 67 551
Loss on debt extinguishment - 1,651
Transaction fees, integration costs, settlements 485 790
EBITDA (excludes impairment costs, stock based compensation, $ 17,389 $ 15,450
severance, discontinued operations, loss on debt extinguishment and
transaction fees, integration costs and settlements)
NaviSite Financial Tables
Condensed Consolidated Statements of Operations
For the Three Months Ended For the Six Months Ended
January 31, 2009 January 31, 2008 January 31, 2009 January 31, 2008
---------------------Unaudited--------------------- ---------------------Unaudited---------------------
(In thousands, except per share amounts) (In thousands, except per share amounts)
Revenue $ 37,548 $ 38,831 $ 77,326 $ 74,863
Revenue, related parties 111 72 194 147
Total revenue 37,659 38,903 77,520 75,010
Cost of revenue, excluding stock compensation, restructuring, 19,650 21,098 41,002 41,401
depreciation and amortization
Depreciation and amortization 5,669 5,216 11,372 9,403
Stock compensation 312 636 691 1,191
Restructuring charge (5 ) - 209 -
Cost of revenue 25,626 26,950 53,274 51,995
Gross profit 12,033 11,953 24,246 23,015
Operating expenses:
Selling and marketing, excluding stock compensation and restructuring 4,687 4,936 9,945 9,848
General and administrative, excluding stock compensation, 5,262 4,983 10,593 10,092
restructuring and transaction fees
Stock compensation 456 635 1,046 1,316
Restructuring charge (82 ) - 180
Transaction fees 146 56 370 140
Total operating expenses 10,469 10,610 22,134 21,396
Income from operations 1,564 1,343 2,112 1,619
Other income (expense):
Interest income 21 63 25 177
Interest expense (3,759 ) (3,010 ) (6,803 ) (5,667 )
Loss on debt extinguishment - - - (1,651 )
Other income (expense), net 232 202 693 477
Loss from continuing operations before income taxes and discontinued (1,942 ) (1,402 ) (3,973 ) (5,045 )
operations
Income taxes (499 ) (500 ) (998 ) (913 )
Loss from continuing operations before discontinued operations (2,441 ) (1,902 ) (4,971 ) (5,958 )
Discontinued operations, net of income taxes (50 ) (237 ) (67 ) (551 )
Net loss (2,491 ) (2,139 ) (5,038 ) (6,509 )
Accretion of preferred stock dividends (825 ) (736 ) (1,627 ) (1,120 )
Net loss attributable to common stockholders $ (3,316 ) $ (2,875 ) $ (6,665 ) $ (7,629 )
Basic and diluted net loss per common share:
Loss from continuing operations before discontinued operations $ (0.09 ) $ (0.07 ) $ (0.19 ) $ (0.20 )
available to common shareholders
Loss from discontinued operations, net of income taxes (0.00 ) (0.01 ) (0.00 ) (0.02 )
Net loss attributable to common stockholders $ (0.09 ) $ (0.08 ) $ (0.19 ) $ (0.22 )
Basic and diluted weighted average number of common shares 35,457 34,927 35,401 34,422
outstanding
NaviSite Financial Tables
Condensed Consolidated Balance Sheets
January 31, 2009 July 31, 2008
ASSETS --------------------Unaudited--------------------
-----------------(In thousands)-----------------
Current assets:
Cash and cash equivalents $ 2,958 $ 3,261
Accounts receivable, less allowance for doubtful accounts of $918
and $897 at January 31, 2009 and July 31, 2008, respectively
19,719 18,927
Unbilled accounts receivable 1,644 1,711
Prepaid expenses and other current assets 7,216 11,557
Total current assets 31,537 35,456
Non-current assets 132,733 140,257
Total assets $ 164,270 $ 175,713
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Notes payable, current portion $ 5,987 $ 6,100
Capital lease obligations, current portion 3,348 3,166
Accounts payable 5,173 7,033
Accrued expenses, deferred revenue, deferred other income and
customer deposits
18,081 17,499
Total current liabilities 32,589 33,798
Total non-current liabilities 127,676 133,158
Total liabilities 160,265 166,956
Preferred stock 29,156 27,529
Total stockholders' equity (deficit) (25,151 ) (18,772 )
Total liabilities and stockholders' equity (deficit) $ 164,270 $ 175,713
NaviSite Financial Tables
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended
January 31, 2009 January 31, 2008
---------------------Unaudited---------------------
------------------(In thousands)------------------
Net cash provided by (used for) operating activities $ 2,517 $ (1,191 )
Net cash used for investing activities (2,543 ) (2,930 )
Net cash provided by (used for) financing activities (1,873 ) 3,755
Net cash used for discontinued operations (21 ) (208 )
Effect of exchange rate changes on cash (142 ) -
Net increase (decrease) in cash (2,062 ) (574 )
Cash and cash equivalents, beginning of period 5,020 5,479
Cash and cash equivalents, end of period $ 2,958 $ 4,905
For the Six Months Ended
January 31, 2009 January 31, 2008
---------------------Unaudited---------------------
------------------(In thousands)------------------
Net cash provided by (used for) operating activities $ 12,054 $ (1,106 )
Net cash used for investing activities (6,280 ) (28,352 )
Net cash provided by (used for) financing activities (5,727 ) 23,156
Net cash used for discontinued operations (9 ) (494 )
Effect of exchange rate changes on cash (341 ) -
Net increase (decrease) in cash (303 ) (6,796 )
Cash and cash equivalents, beginning of period 3,261 11,701
Cash and cash equivalents, end of period $ 2,958 $ 4,905
NaviSite, Inc. Jim Pluntze, 978-946-8615 sbyers@navisite.com
10:06am 03/12/2009
Delayed quote data
NAVI 0.34, +0.03, +9.7%) , a leading provider of enterprise hosting solutions and application services, today reported financial results for the second quarter of fiscal year 2009 which ended on January 31, 2009.
