DENVER, March 5, 2015 (GLOBE NEWSWIRE) -- Glowpoint, Inc. (NYSE MKT:GLOW), a leading provider of cloud-based video collaboration services and network solutions, reported financial results for the fiscal year ended December 31, 2014. A summary of financial results and business highlights is outlined below.
Fiscal Year 2014 Financial Highlights:
- Adjusted EBITDA (as defined and reconciled to GAAP below) increased by 6% from $4.4 million in 2013 to $4.7 million in 2014. Adjusted EBITDA, as a percentage of revenue, improved to 15% in 2014 from 13% in 2013.
- Gross margins improved from 42% in 2013 to 43% in 2014.
- Revenue was $32.2 million in 2014 as compared to $33.5 million in 2013, due to a decline in classic managed and professional services, and without the benefit of expanded service offerings launched in 2015.
- Net loss was $2.8 million in 2014 as compared with a net loss of $4.2 million in 2013.
- Cash flow from operations was $1.8 million in 2014.
Fiscal Year 2014 and Recent Company Highlights:
- In February 2015, we released our Hybrid Videoconferencing service that allows enterprise customers to easily expand into self-service video meeting rooms (VMRs) and enables user adoption throughout the organization.
- In January 2015, we launched our cloud-based Video Service Platform to enterprise customers and channel partners. The Platform automates and streamlines critical functions and workflows used by IT organizations to help manage enterprise video collaboration environments.
- In January 2015, Glowpoint was also awarded a new patent related to our Intelligent Call Management and Redirection systems and methods for video calls. The new patent addresses a method for routing packet-based network video calls using an Intelligent Call Policy Management (ICPM) system that can detect the status of a specified video endpoint and refuse to connect a video call based on the video endpoint's status.
- During 2014, we expanded our relationship with Russell Reynolds Associates to deploy a complete package of video collaboration, network and managed service support.
- During 2014, Glowpoint also implemented a global managed service delivery agreement with Regus, the world's largest provider of flexible workspaces.
- Additionally, we have added a number of experienced professionals to our team. We recently added Gary Iles as SVP of Sales and Marketing. Mr. Iles brings more than 20 years of experience in telecommunications and technology, with recent experience in unified communications and video collaboration. We have also brought David Giangano, Patrick J. Lombardi and James H. Cohen onto our Board of Directors. These new directors add depth in key areas such as communications, finance, legal, networking, and telecom services.
"I'm pleased with our progress during the past year as we reshaped our service offerings around the modern work environment. By placing a service-oriented lens on all activities, tasks and processes involved in video collaboration, we have developed a platform that simplifies the process. Glowpoint provides an intuitive service experience, assures high availability across multiple devices, and proactively analyzes critical service metrics to optimize the user experience. Glowpoint is continuing to drive the evolution from the conventional video market into a collaborative service management platform. In doing so, Glowpoint will continue to focus on differentiating key services, broadening its partnerships with complementary technologies, and empowering IT through automation and analytics," said Peter Holst, President and CEO of Glowpoint.
The core elements of Glowpoint's plan are to:
- Focus our sales and marketing efforts on growing the awareness and adoption of our next-generation video collaboration solutions, including both our Managed and Hybrid Videoconferencing services;
- Expand our global distribution through a select group of channel partners;
- Invest in key elements of our service platform to better meet the needs of our new and existing customers; and
- Seek acquisitions that complement our current business and leverage our new service delivery platform.
The results of Glowpoint's operations and financial condition for the years ended December 31, 2014 and 2013 are more fully discussed in our 2014 Annual Report on Form 10-K on file with the Securities and Exchange Commission. Investors are encouraged to carefully review the 2014 Form 10-K for a complete analysis of our results from operations and financial condition.
About Glowpoint
Glowpoint, Inc. (NYSE MKT:GLOW) provides video collaboration, network, and support services to large enterprises and mid-sized companies to support their unified communications (UC) strategies and business goals. More than 1,000 organizations in 130 countries rely on our unmatched experience, business-class support and cloud-based services to collaborate with colleagues, business partners, and customers more effectively. To learn more please visit www.glowpoint.com .
Non-GAAP Financial Information
Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) before depreciation, amortization, taxes, stock-based compensation, impairment charges, acquisition costs, severance and interest and other expense, net. Adjusted EBITDA is not intended to replace operating income (loss), net income (loss), cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles (GAAP). Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of the Company and is used in the calculation of financial covenants in the company's loan agreements. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. A reconciliation of Adjusted EBITDA to net income (loss) is shown in the attached schedules.
Forward looking and cautionary statements
Forward-looking statements in this press release regarding our growth strategies and goals for the business, our focus on differentiating services, broadening partnerships and empowering IT, the core elements of our plan, plans to make investments and improvements in our video service platform and systems, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. These factors, risks, and uncertainties include market acceptance, availability of new video communications services; the non-exclusive and terminable-at-will nature of sales agreements; rapid technological change affecting demand for our services; competition from other video communication service providers; and the availability of sufficient financial resources to enable us to expand our operations, as well as other risks detailed from time to time in our filings with the SEC. We make no representation or warranty that the information contained herein is complete and accurate and we have no duty to correct or update any information contained herein.
INVESTOR CONTACT:
Investor Relations
Glowpoint, Inc.
+1 303-640-3840
investorrelations@glowpoint.com
www.glowpoint.com
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except par value) | ||
| (Unaudited) | ||
| December 31, | December 31, | |
| 2014 | 2013 | |
| ASSETS | ||
| Current assets: | ||
| Cash | $ 1,938 | $ 2,294 |
| Accounts receivable, net | 3,273 | 4,077 |
| Prepaid expenses and other current assets | 1,025 | 404 |
| Total current assets | 6,236 | 6,775 |
| Property and equipment, net | 3,246 | 2,867 |
| Goodwill | 9,825 | 9,825 |
| Intangibles, net | 3,047 | 5,998 |
| Other assets | 262 | 421 |
| Total assets | $ 22,616 | $ 25,886 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 400 | $ 950 |
| Current portion of capital lease | 41 | 217 |
| Accounts payable | 1,220 | 1,885 |
| Accrued expenses and other liabilities | 1,576 | 2,277 |
| Accrued dividends | 40 | 20 |
| Accrued sales taxes and regulatory fees | 444 | 590 |
| Total current liabilities | 3,721 | 5,939 |
| Long term liabilities: | ||
| Capital lease obligations, net of current portion | 1 | 43 |
| Deferred tax liability | 142 | -- |
| Long term debt, net of current portion | 10,785 | 10,235 |
| Total long term liabilities | 10,928 | 10,278 |
| Total liabilities | 14,649 | 16,217 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock, Series A-2, convertible; $.0001 par value | 167 | 167 |
| Common stock, $.0001 par value | 4 | 4 |
| Treasury stock | (66) | -- |
| Additional paid-in capital | 178,476 | 177,357 |
| Accumulated deficit | (170,614) | (167,859) |
| Total stockholders' equity | 7,967 | 9,669 |
| Total liabilities and stockholders' equity | $ 22,616 | $ 25,886 |
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| and GAAP to Non-GAAP Reconciliation | ||
| (In thousands, except per share data) | ||
| (Unaudited) | ||
| Year Ended | ||
| December 31, | ||
| 2014 | 2013 | |
| Video collaboration services | $ 18,891 | $ 19,612 |
| Network services | 12,000 | 12,048 |
| Professional and other services | 1,265 | 1,794 |
| Total revenue | 32,156 | 33,454 |
| Cost of revenue (exclusive of depreciation and amortization) | 18,294 | 19,504 |
| Research and development | 1,019 | 662 |
| Sales and marketing | 3,307 | 3,812 |
| General and administrative | 5,643 | 7,378 |
| Impairment charges | 2,342 | 680 |
| Depreciation and amortization | 2,735 | 2,860 |
| Total operating expenses | 33,340 | 34,896 |
| Loss from operations | (1,184) | (1,442) |
| Interest and other expense, net | 1,432 | 2,799 |
| Loss before income taxes | $ (2,616) | $ (4,241) |
| Income tax expense (benefit) | 139 | (30) |
| Net loss | $ (2,755) | $ (4,211) |
| Preferred stock dividends | 20 | 20 |
| Net loss attributable to common stockholders | $ (2,775) | $ (4,231) |
| Net loss attributable to common stockholders per share: | ||
| Basic and diluted net loss per share | $ (0.08) | $ (0.14) |
| Weighted average number of common shares: | ||
| Basic and diluted | 34,885 | 30,525 |
| ADJUSTED EBITDA - GAAP to Non-GAAP Reconciliation | ||
| Net loss | $ (2,755) | $ (4,211) |
| Income tax expense (benefit) | 139 | (30) |
| Depreciation and amortization | 2,735 | 2,860 |
| Amortization of financing costs and debt discount | 89 | 1,703 |
| Interest and other expense, net | 1,343 | 1,096 |
| EBITDA | 1,551 | 1,418 |
| Stock-based compensation | 600 | 1,203 |
| Severance | 184 | 860 |
| Acquisition costs | -- | 259 |
| Impairment charges | 2,342 | 680 |
| Adjusted EBITDA | $ 4,677 | $ 4,420 |
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (In thousands) | ||
| (Unaudited) | ||
| Year Ended | ||
| December 31, | ||
| 2014 | 2013 | |
| Cash flows from Operating Activities: | ||
| Net loss | $ (2,755) | $ (4,211) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||
| Depreciation and amortization | 2,735 | 2,860 |
| Bad debt (recovery) expense | (131) | 149 |
| Amortization of deferred financing costs | 89 | 976 |
| Amortization of debt discount | -- | 727 |
| Stock-based compensation expense | 600 | 1,203 |
| Gain on debt forgiveness | -- | (103) |
| Impairment charges | 2,089 | 680 |
| Increase (decrease) attributable to changes in assets and liabilities: | ||
| Accounts receivable | 935 | (179) |
| Prepaid expenses and other current assets | (621) | 493 |
| Other assets | 71 | 214 |
| Accounts payable | (726) | (499) |
| Accrued expenses and other liabilities | (497) | (78) |
| Accrued sales taxes and regulatory fees | (146) | 68 |
| Deferred tax liability | 142 | -- |
| Net cash provided by operating activities | 1,785 | 2,300 |
| Cash flows from Investing Activities: | ||
| Proceeds from sale of equipment | 4 | 2 |
| Cash paid for acquisition costs | -- | (46) |
| Purchases of property and equipment | (2,176) | (856) |
| Net cash used in investing activities | (2,172) | (900) |
| Cash flows from Financing Activities: | ||
| Costs of preferred stock exchange | (5) | (289) |
| Principal payments for capital lease | (216) | (251) |
| Proceeds from new credit facility, net of expenses of $322 | -- | 8,978 |
| Repayment of former debt obligations and expenses of $482 | -- | (9,762) |
| Principal payments under borrowing arrangements | (249) | -- |
| Advances on borrowing arrangements | 249 | -- |
| Proceeds from issuance of common stock | 416 | -- |
| Payments of equity issuance costs | (39) | -- |
| Payments of debt issuance costs | (59) | -- |
| Purchase of treasury stock | (66) | -- |
| Net cash provided by (used in) financing activities | 31 | (1,324) |
| Increase (decrease) in cash and cash equivalents | (356) | 76 |
| Cash at beginning of year | 2,294 | 2,218 |
| Cash at end of year | $ 1,938 | $ 2,294 |
