| Online: | |
| Visits: | |
| Stories: |
| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
HRchitect Tech Vendor News: Halogen Announces First Quarter 2014 Results
Company delivers record recurring, total and international revenue
- Company delivers record recurring, total and international revenue
OTTAWA , May 8, 2014 /CNW/ – Halogen Software Inc. (“Halogen” or the “Company”) (TSX: HGN), a leading provider of cloud based talent management solutions, today announced its financial results for the three months ended March 31, 2014 . All figures are stated in United States dollars unless otherwise noted.
First Quarter 2014 Financial Highlights
- Recurring revenue increased 21% from Q1 2013 to a record $12.1 million , representing 89% of total revenue in the quarter.
- Revenue generated in international markets outside Canada and the United States increased 98% over Q1 2013.
- Dollar retention continued to be more than 100%1 and customer retention approximately 90%2.
- Adjusted EBITDA3 was $(1.1) million in Q1 2014 compared to $(0.2) million in Q1 2013; Adjusted EBITDA per share3 was $(0.05) per share in Q1 2014, compared to $(0.02) per share in Q1 2013.
- Total cash, cash equivalents and investments was $52.5 million at March 31, 2014 compared to $55.9 million at December 31, 2013 .
| _______________________________ |
| Non-IFRS Measures: |
| 1 Calculated by taking the annualized recurring revenue of customers at the beginning of a 12-month period and dividing it into annualized recurring revenue for those same customers at the end of the period. |
| 2 Calculated as the percentage of customers at the beginning of a 12-month period who remain as customers at the end of the period. |
| 3 Adjusted EBITDA is a non-IFRS measure defined by the Company as earnings before interest income or expense, other income, depreciation and amortization, share-based compensation, foreign exchange gains or losses and loss related to change in fair value of redeemable preferred shares. Adjusted EBITDA per share is calculated by dividing the Adjusted EBITDA by the weighted average number of shares outstanding in each period. Adjusted EBITDA and Adjusted EBITDA per share do not have a uniform definition. Our definition will likely differ from the definitions used by other companies, including peer companies, and therefore comparability may be limited. Thus, our non-IFRS measure of Adjusted EBITDA and Adjusted EBITDA per share should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with IFRS. There are inherent limitations with non-IFRS measures; we compensate for these limitations by reconciling Adjusted EBITDA to the most comparable IFRS financial measure. Management encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure, and to view our non-IFRS financial measures in conjunction with the most comparable IFRS financial measures. |
“It was a solid start to 2014, with record total and recurring revenue and a 98% increase in international sales,” said Paul Loucks, Halogen’s CEO. “In the first quarter, we increased our sales and marketing team by nearly 25% and we plan to expand both domestically and internationally this year to acquire new customers and fuel future recurring revenue growth. We are also expanding our account management team to maintain our strong customer retention and to increase sales back to customers. There is a significant untapped market for Talent Management solutions among global mid-sized organizations, and we are well positioned to capture this opportunity.”
Financial Review
Halogen’s recurring revenue in the first quarter of 2014 was $12.1 million , a 21% increase over Q1 2013. Total revenue increased 17% over Q1 2013 to $13.5 million , driven by the increase in the Company’s customer base, along with the sale of additional seats and modules to existing customers. In the first quarter of 2014, approximately 79% of revenue was generated from customers located in the United States (82% in Q1 2013), 11% in Canada (12% in Q1 2013) and 10% in international markets (6% in Q1 2013).
Gross margin was $10.2 million , or 75% of total revenue, in the first quarter of 2014, compared to $8.9 million , or 76% of total revenue, in Q1 2013.
Net loss decreased to $3.0 million in the first quarter of 2014 versus a loss of $7.3 million in Q1 2013. The primary driver for the improvement was the elimination of the fair value adjustment to the Company’s redeemable preferred shares, which was $nil in the first quarter of 2014 and $6.1 million in the same period of 2013.
| Adjusted EBITDA reconciliation | 3 months ended March 31, | ||||||||
| ($000′s except per share amounts) | 2014 | 2013 | |||||||
| Net income (loss) | $ | (2,956) | $ | (7,306) | |||||
| Interest (income) expense and other, net | (67) | (19) | |||||||
| Foreign exchange (gain) loss | 1,069 | 402 | |||||||
| Income tax expense | 5 | 13 | |||||||
| Depreciation and amortization | 747 | 524 | |||||||
| Share-based compensation | 140 | 52 | |||||||
| Loss related to change in fair market value of redeemable preferred shares | - | 6,099 | |||||||
| Adjusted EBITDA | $ | (1,062) | $ | (235) | |||||
| Adjusted EBITDA per share | $ | (0.05) | $ | (0.02) | |||||
Cash and investments was $52.5 million at March 31, 2014 compared to $55.9 million at December 31, 2013 . Deferred revenue was $26.9 million at quarter-end compared to $22.7 million a year earlier.
Second Quarter and Full Year 2014 Financial Guidance
For the second quarter of 2014, the Company is expecting:
- Recurring revenue in the range of $12.2 to $12.4 million
- Total revenue in the range of $13.6 to $13.8 million
For the full year 2014, the Company reiterated its guidance:
- Recurring revenue in the range of $50.3 to $51.3 million
- Total revenue in the range of $56.8 to $57.8 million
2014 First Quarter Financial Statements and Management’s Discussion and Analysis
Halogen’s Management’s Discussion and Analysis and Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2014 will be available on SEDAR (www.sedar.com) and on the Halogen website at http://ir.halogensoftware.com.
Conference Call and Webcast
Halogen will hold a conference call to discuss its fiscal 2014 first quarter results today ( Thursday, May 8, 2014 ) at 5:00 p.m. (ET) . The call will be hosted by Paul Loucks, President and CEO, and Pete Low, CFO. To participate in the call, please dial 647-427-7450 or 1-888-231-8191 (Conference ID: 30838258) ten minutes prior to the scheduled start of the call. A replay of the conference call will be available until 12:00 midnight (ET) Thursday, May 15, 2014 by calling 416-849-0833 or 1-855-859-2056). The conference call will be webcast live at http://www.newswire.ca/en/webcast/detail/1338959/1480125.
Forward-looking Statements
Certain statements in this release, including those that express management’s expectations or estimates of our future performance, are “forward-looking statements” which reflect the Company’s current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “might”, “will”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “indicate”, “seek”, “believe”, “estimates”, “predicts” or “likely”, or the negative of these terms, or other similar expressions intended to identify forward-looking statements.
The Company has based these forward-looking statements on its current expectations and projections at the time the statements were originally made or at the time the information was originally provided, about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and it cannot assure that actual results will be consistent with these forward-looking statements. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including without limitation, those risks and uncertainties discussed in the Company’s Prospectus and other filings on SEDAR.
If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking statements prove incorrect, actual results might vary materially from those expressed or implied by the forward-looking statements contained herein. These factors should be considered carefully and prospective investors should not place undue reliance on these forward-looking statements. Although the forward-looking statements contained herein are based upon what the Company currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. The Company does not intend, and the Company does not assume, any obligation to update or revise these forward-looking statements to reflect new events or circumstances.
###
To learn more about HRchitect and how we can help your organization, please visit www.HRchitect.com. HRchitect is the leader in HR systems strategic consulting. As the premier Human Capital Management (HCM) Systems consulting firm, we offer end-to-end HR technology consulting services focused around strategic planning, evaluation/selection, project management and implementation of HR systems, Talent Management Systems, Talent Acquisition Systems, and Workforce Management software. After more than 17 years in business working on over 2000 successful engagements for more than 900 clients across the globe, HRchitect is a name you can trust as your one-stop shop for all your HR technology consulting needs.
Matt Lafata, HRchitect
Source: http://hrtechnologyvendornews.com/2014/06/06/hrchitect-tech-vendor-news-halogen-announces-first-quarter-2014-results/
