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CCC Intelligent Solutions Holdings Inc. Announces Third Quarter Fiscal 2021 Financial Results

11/10/2021

CCC Intelligent Solutions Holdings Inc. (CCC) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months ended September 30, 2021.

“CCC continued to perform at a high level in the third quarter, highlighted by 18% adjusted revenue growth and 31% adjusted EBITDA growth. We continue to see strong adoption of our expanding product portfolio as demand for cloud-based solutions to digitize workflows increases across the P&C insurance economy,” said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, “Our performance demonstrates the power of our growth model and we will continue to invest in the business to benefit our customers. We are thrilled with the pace of product innovation and the quality of customer feedback, giving us great confidence in our growth potential.”

Third Quarter 2021 Financial Highlights

Revenue

  • Total revenue was $176.6 million for the third quarter of 2021, compared to $157.8 million for the third quarter of 2020. Adjusted for the impact of the divestiture of a portion of our professional services casualty solution in December 2020, total revenue grew 18% in the third quarter of 2021.

Profitability

  • GAAP gross profit was $118.8 million, representing a gross margin of 67%, for the third quarter of 2021, compared with $107.3 million, representing a gross margin of 68%, for the third quarter of 2020. Adjusted gross profit was $138.4 million, representing an adjusted gross margin of 78%, for the third quarter of 2021, compared with $113.4 million, representing an adjusted gross margin of 76%, for the third quarter of 2020.
  • GAAP operating loss was $189.2 million for the third quarter of 2021, compared with GAAP operating income of $23.1 million for the third quarter of 2020. Adjusted operating income was $62.5 million for the third quarter of 2021, compared with adjusted operating income of $49.1 million for the third quarter of 2020.
  • GAAP net loss was $189.8 million for the third quarter of 2021, compared with GAAP net income of $4.7 million for the third quarter of 2020. Adjusted net income was $29.7 million for the third quarter of 2021, compared with $21.1 million for the third quarter of 2020.
  • Adjusted EBITDA was $70.1 million for the third quarter of 2021, compared with adjusted EBITDA of $53.6 million for the third quarter of 2020. Adjusted EBITDA grew 31% in the third quarter of 2021 as compared to the third quarter of 2020.

Liquidity

  • CCC had $160.5 million in cash and cash equivalents and $800.0 million of total debt at September 30, 2021. The Company generated $36.9 million in cash from operating activities and had free cash flow of $25.0 million during the third quarter of 2021, compared with $43.0 million generated in cash from operating activities and $31.7 million in free cash flow in the third quarter of 2020.

The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” and “free cash flow.” Refer to “Non-GAAP Financial Measures” for a discussion of these measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

3rd Quarter and Recent Business Highlights

  • Announced the first touchless estimating experience in the industry. The AI-powered CCC® Estimate-STP uses advanced AI and insurer-driven rules to automatically initiate and populate detailed and actionable estimates in seconds. In market with four national insurers, CCC Estimate-STP offers touchless line level estimates from photos and is part of CCC’s broader offering that is digitizing the auto claims experience.
  • Signed multi-year renewals with a Top 5 insurer and one of the country’s largest multi-store operators, or MSOs. As part of the multi-year agreements these customers have meaningfully expanded their annual commitment to CCC as they broadened the number of solutions they utilize from the platform.
  • Partnered with Toyota to deliver Collision Assistance, a just-in-time support service, which is now available to drivers within the Toyota and Lexus mobile apps. The CCC mobile technology combines guided accident documentation and access to claims and management services to assist drivers following a collision. This is an example of how CCC is delivering innovation that expands our ecosystem beyond traditional insurer and repair facility customers.
  • Successfully completed the refinancing of its existing secured credit facility with a new credit agreement comprised of an $800 million senior secured term loan facility (the “Term Loan”) and a $250 million senior secured revolving credit facility (the “Revolving Facility”) that lowered our effective interest rate from 4.0% to 3.0%.

Business Outlook

Based on information as of today, November 10, 2021, the Company is issuing the following financial guidance:

   

 

Fourth Quarter Fiscal 2021 

 

Full Year Fiscal 2021

Revenue

$182 million to $184 million

 

$683 million to $685 million

 

 

 

 

 

 

 

 

Adjusted EBITDA

$69 million to $71 million

 

$255 million to $257 million

Year-over-year revenue growth for the fourth quarter of 2021 is forecasted to be 10% - 11%, or 16% - 17% when adjusted for the impact of the divestiture of a portion of our casualty solution (specifically, First Party Clinical Services) in December 2020. Year-over-year revenue growth for the full year 2021 is forecasted to be 8%, or 14% on an adjusted basis. First Party Clinical Services revenue was $8.6 million and $34.7 million for our fiscal fourth quarter and full year 2020, respectively.

Conference Call Information

CCC will host a conference call today, November 10, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. To access this call, dial 877-407-0784 (domestic) or 201-689-8560 (international). The conference ID number is 13723556. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website at https://ir.cccis.com, and a replay will be archived on the website as well.

About CCC Intelligent Solutions

CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NYSE: CCCS), is a leading SaaS platform for the multi-trillion-dollar P&C insurance economy powering operations for insurers, repairers, automakers, part suppliers, lenders, and more. CCC cloud technology connects more than 30,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, IoT, customer experience, network and workflow management, CCC delivers innovations that keep people’s lives moving forward when it matters most. Learn more about CCC at www.cccis.com.

Forward Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding future events, goals, plans and projections regarding the company’s financial position, results of operations, market position, product development and business strategy. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, the general economic, political, business and competitive conditions; the impact of COVID-19 on CCC’s business; failure to realize the anticipated benefits of the business combination of CCC’s parent corporation and Dragoneer Growth Opportunities Corp. (the “business combination”); costs related to the business combination; the ability of the Company to grow and manage growth profitably and retain its key employees; the risk that the adoption of CCC® Estimate-STP does not occur on the expected timing; the risk that the Company fails to realize the expected benefits of customer renewals and expanding the Company’s customer base; the inability to maintain CCC’s listing of securities on the NYSE; changes in applicable laws or regulations; and other risks and uncertainties, including those included under the header “Risk Factors” in the definitive proxy statement/prospectus filed by Dragoneer Growth Opportunities Corp. with the Securities and Exchange Commission (“SEC”) on July 6, 2021, which can be obtained, without charge, at the SEC’s website (www.sec.gov). The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), including, but not limited to, “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross profit,” “adjusted gross profit margin,” and “free cash flow” in each case presented on a non-GAAP basis, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s calculation of these non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.

This press release also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included for these projections.

 

     

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

     
     
  September 30,   December 31,
 

2021

 

2020

  (Unaudited)  
ASSETS    
     
CURRENT ASSETS:    
  Cash and cash equivalents  

  $

                         160,465

 

 

  $

                        162,118

 

  Accounts receivable—Net of allowances of $3,972 and $4,224 for September 30, 2021 and December 31, 2020, respectively  

 

                               82,367

 

 

 

                              74,107

 

  Income taxes receivable  

 

                                 6,915

 

 

 

                                2,037

 

  Deferred contract costs  

 

                               13,833

 

 

 

                              11,917

 

  Other current assets  

 

                               36,261

 

 

 

                              31,586

 

     
           Total current assets  

 

                             299,841

 

 

 

                            281,765

 

     
SOFTWARE, EQUIPMENT, AND PROPERTY—Net  

 

                             121,018

 

 

 

                            101,438

 

     
OPERATING LEASE ASSETS  

 

                               38,774

 

 

 

                                 -

 

     
INTANGIBLE ASSETS—Net  

 

                          1,237,950

 

 

 

                         1,311,917

 

     
GOODWILL  

 

                          1,466,884

 

 

 

                         1,466,884

 

     
DEFERRED FINANCING FEES, REVOLVER—Net  

 

                                 3,053

 

 

 

                                   746

 

     
DEFERRED CONTRACT COSTS  

 

                               18,893

 

 

 

                              14,389

 

     
EQUITY METHOD INVESTMENT  

 

                               10,228

 

 

 

                                 -

 

     
OTHER ASSETS  

 

                               21,584

 

 

 

                              18,416

 

     
TOTAL  

  $

                      3,218,225

 

 

  $

                     3,195,555

 

     
     
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY    
     
CURRENT LIABILITIES:    
  Accounts payable  

  $

                           16,083

 

 

  $

                          13,164

 

  Accrued expenses  

 

                               81,771

 

 

 

                              52,987

 

  Income taxes payable  

 

                                 7,161

 

 

 

                                5,129

 

  Current portion of long-term debt  

 

                                 8,000

 

 

 

                              25,381

 

  Current portion of long-term licensing agreement—Net  

 

                                 2,661

 

 

 

                                2,540

 

  Operating lease liabilities  

 

                                 8,855

 

 

 

                                 -

 

  Deferred revenues  

 

                               29,384

 

 

 

                              26,514

 

     
           Total current liabilities  

 

                             153,915

 

 

 

                            125,715

 

     
LONG-TERM DEBT:    
First Lien Term Loan—Net  

 

                                  -

 

 

 

                         1,292,597

 

Term B Loan—Net  

 

                             780,218

 

 

 

                                 -

 

           Total long-term debt  

 

                             780,218

 

 

 

                         1,292,597

 

     
DEFERRED INCOME TAXES—Net  

 

                             255,849

 

 

 

                            322,348

 

     
LONG-TERM LICENSING AGREEMENT—Net  

 

                               34,320

 

 

 

                              36,331

 

     
OPERATING LEASE LIABILITIES  

 

                               50,550

 

 

 

                                 -

 

     
WARRANT LIABILITIES  

 

                               85,348

 

 

 

                                 -

 

     
OTHER LIABILITIES  

 

                                 6,808

 

 

 

                              32,770

 

     
           Total liabilities  

 

                          1,367,008

 

 

 

                         1,809,761

 

     
COMMITMENTS AND CONTINGENCIES (Notes 22 and 23)    
     
MEZZANINE EQUITY:    
  Redeemable non-controlling interest  

 

                               14,179

 

 

 

                              14,179

 

     
STOCKHOLDERS’ EQUITY:    
  Preferred stock, $0.0001 par; 100,000,000 shares authorized; no shares issued or outstanding  

 

                                  -

 

 

 

                                 -

 

  Common stock—$0.0001 par; 5,000,000,000 shares authorized; 603,170,380 and 504,274,890 shares issued     
and outstanding at September 30, 2021 and December 31, 2020, respectively  

 

                                      60

 

 

 

                                     50

 

  Additional paid-in capital  

 

                          2,525,750

 

 

 

                         1,501,206

 

  Accumulated deficit  

 

                           (688,483

)

 

 

                          (129,370

)

  Accumulated other comprehensive loss  

 

                                  (289

)

 

 

                                 (271

)

     
           Total stockholders’ equity  

 

                          1,837,038

 

 

 

                         1,371,615

 

     
TOTAL  

  $

                      3,218,225

 

 

  $

                     3,195,555

 

   
 

 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(In thousands, except share and per share data)
(Unaudited)

 
For the Three Months Ended For the Nine Months Ended
September 30, September 30,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 
REVENUES

  $

                              176,628

 

  $

                            157,754

 

  $

                              501,205

 

  $

                              467,677

 

 
COST OF REVENUES
  Cost of revenues, exclusive of amortization of acquired technologies

 

                                    51,273

 

 

                                 43,879

 

 

                                  128,218

 

 

                                  135,674

 

  Amortization of acquired technologies

 

                                     6,580

 

 

                                   6,576

 

 

                                    19,740

 

 

                                    19,725

 

 
           Total cost of revenues

 

                                    57,853

 

 

                                 50,455

 

 

                                  147,958

 

 

                                  155,399

 

 
GROSS PROFIT

 

                                  118,775

 

 

                               107,299

 

 

                                  353,247

 

 

                                  312,278

 

 
OPERATING EXPENSES:
  Research and development

 

                                    67,016

 

 

                                 26,816

 

 

                                  128,894

 

 

                                    82,131

 

  Selling and marketing

 

                                    80,382

 

 

                                 17,427

 

 

                                  121,350

 

 

                                    56,608

 

  General and administrative

 

                                  142,511

 

 

                                 21,893

 

 

                                  208,745

 

 

                                    66,460

 

  Amortization of intangible assets

 

                                    18,078

 

 

                                 18,078

 

 

                                    54,232

 

 

                                    54,232

 

 
           Total operating expenses

 

                                  307,987

 

 

                                 84,214

 

 

                                  513,221

 

 

                                  259,431

 

 
OPERATING (LOSS) INCOME 

 

                                (189,212

)

 

                                 23,085

 

 

                                (159,974

)

 

                                    52,847

 

 
INTEREST EXPENSE

 

                                  (13,878

)

 

                                (19,788

)

 

                                  (51,548

)

 

                                  (57,588

)

 
GAIN (LOSS) ON CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS

 

                                     2,007

 

 

                                   3,894

 

 

                                     8,373

 

 

                                  (16,633

)

 
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES

 

                                  (26,889

)

 

                                    -

 

 

                                  (26,889

)

 

                                       -

 

 
LOSS ON EARLY EXINGUISHMENT OF DEBT

 

                                  (15,240

)

 

                                    -

 

 

                                  (15,240

)

 

                                    (8,615

)

 
OTHER (EXPENSE) INCOME—Net

 

                                        (93

)

 

                                       49

 

 

                                           1

 

 

                                        304

 

 
PRETAX (LOSS) INCOME

 

                                (243,305

)

 

                                   7,240

 

 

                                (245,277

)

 

                                  (29,685

)

 
INCOME TAX BENEFIT (PROVISION)

 

                                    53,523

 

 

 

                                 (2,520

)

 

                                    54,227

 

 

 

                                     7,191

 

 
NET (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST

 

                                (189,782

)

 

                                   4,720

 

 

                                (191,050

)

 

                                  (22,494

)

  Less: net (loss) income attributable to non-controlling interest

 

                                       -

 

 

                                    -

 

 

                                       -

 

 

                                       -

 

NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT SOLUTIONS
HOLDINGS INC.

  $

                             (189,782

)

  $

                               4,720

 

  $

                             (191,050

)

  $

                              (22,494

)

 
Net (loss) income per share attributable to common stockholders:
Basic

  $

                                  (0.34

)

  $

                                 0.01

 

  $

                                  (0.36

)

  $

                                  (0.04

)

Diluted

  $

                                  (0.34

)

  $

                                 0.01

 

  $

                                  (0.36

)

  $

                                  (0.04

)

Weighted-average shares used in computing net (loss) income per
share attributable to common stockholders:
Basic

 

                            566,454,782

 

 

                         504,212,021

 

 

                            525,877,533

 

 

                            504,062,587

 

Diluted

 

                            566,454,782

 

 

                         510,694,493

 

 

                            525,877,533

 

 

                            504,062,587

 

 
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including non-controlling interest

 

                                (189,782

)

 

                                   4,720

 

 

                                (191,050

)

 

                                  (22,494

)

Other comprehensive income (loss)—Foreign currency translation adjustment

 

                                          11

 

 

                                       83

 

 

                                        (18

)

 

                                          65

 

 
COMPREHENSIVE (LOSS) INCOME INCLUDING NON-CONTROLLING INTEREST

 

                                (189,771

)

 

                                   4,803

 

 

                                (191,068

)

 

                                  (22,429

)

  Less: comprehensive (loss) income attributable to non-controlling interest

 

                                       -

 

 

                                    -

 

 

                                       -

 

 

                                       -

 

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT 
SOLUTIONS HOLDINGS INC.

  $

                             (189,771

)

  $

                               4,803

 

  $

                             (191,068

)

  $

                              (22,429

)

 

 

 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
  For the Nine Months Ended
  September 30,
 

 

2021

 

 

 

2020

 

     
CASH FLOWS FROM OPERATING ACTIVITIES:    
  Net loss  

  $

                    (191,050

)

 

  $

                      (22,494

)

  Adjustments to reconcile net loss to net cash provided by operating activities:    
    Depreciation and amortization of software, equipment, and property  

 

                            18,161

 

 

 

                            13,039

 

    Amortization of intangible assets  

 

                            73,972

 

 

 

                            73,957

 

    Deferred income taxes  

 

                          (66,499

)

 

 

                          (18,018

)

    Stock-based compensation  

 

                          235,413

 

 

 

                              7,471

 

    Amortization of deferred financing fees  

 

                              3,204

 

 

 

                              3,475

 

    Amortization of discount on debt  

 

                                 537

 

 

 

                                 553

 

    Change in fair value of interest rate swaps  

 

                            (8,373

)

 

 

                            16,633

 

    Change in fair value of warrant liabilities  

 

                            26,889

 

 

 

                                -

 

    Loss on early extinguishment of debt  

 

                            15,240

 

 

 

                              8,615

 

    Non-cash lease expense  

 

                              5,029

 

 

 

                                -

 

    Other  

 

                                   54

 

 

 

                                   42

 

    Changes in:    
      Accounts receivable—Net  

 

                            (8,332

)

 

 

                          (12,644

)

      Deferred contract costs  

 

                            (1,916

)

 

 

                               (507

)

      Other current assets  

 

                            (4,673

)

 

 

                               (755

)

      Deferred contract costs—Non-current  

 

                            (4,504

)

 

 

                            (1,246

)

      Other assets  

 

                            (3,221

)

 

 

                          (10,795

)

      Operating lease assets  

 

                              5,133

 

 

 

                                -

 

      Income taxes  

 

                            (2,846

)

 

 

                            11,597

 

      Accounts payable  

 

                              1,399

 

 

 

                              2,080

 

      Accrued expenses  

 

                            17,051

 

 

 

                            (5,183

)

      Operating lease liabilities  

 

                            (5,935

)

 

 

                                -

 

      Deferred revenues  

 

                              2,861

 

 

 

                                 580

 

      Extinguishment of interest rate swap liability  

 

                            (9,987

)

 

 

                                -

 

      Other liabilities  

 

                               (882

)

 

 

                                 389

 

     
           Net cash provided by operating activities  

 

                            96,725

 

 

 

                            66,789

 

     
CASH FLOWS FROM INVESTING ACTIVITIES:    
  Purchases of software, equipment, and property  

 

                          (25,022

)

 

 

                          (23,815

)

  Purchase of equity method investment  

 

                          (10,228

)

 

 

                                -

 

  Purchase of intangible asset  

 

                                 (49

)

 

 

                               (560

)

     
           Net cash used in investing activities  

 

                          (35,299

)

 

 

                          (24,375

)

     
CASH FLOWS FROM FINANCING ACTIVITIES:    
  Proceeds from issuance of non-controlling interest in subsidiary  

 

                                -

 

 

 

                            14,179

 

  Deemed distribution to CCCIS option holders  

 

                            (9,006

)

 

 

                                -

 

  Net proceeds from equity infusion from the Business Combination  

 

                          763,300

 

 

 

                                -

 

  Principal payments on long-term debt  

 

                     (1,336,154

)

 

 

                        (385,385

)

  Proceeds from issuance of long-term debt, net of fees paid to lender  

 

                          789,927

 

 

 

                          369,792

 

  Proceeds from borrowings on revolving lines of credit  

 

                                -

 

 

 

                            65,000

 

  Repayment of borrowings on revolving lines of credit  

 

                                -

 

 

 

                          (65,000

)

  Proceeds from issuance of common stock  

 

                              1,007

 

 

 

                                -

 

  Payment of fees associated with early extinguishment of long-term debt  

 

                            (3,320

)

 

 

                                 (29

)

  Proceeds from exercise of stock options  

 

                                 503

 

 

 

                                 618

 

  Repurchases of common stock  

 

                                -

 

 

 

                               (123

)

  Dividends to CCCIS stockholders  

 

                        (269,174

)

 

 

                                -

 

     
           Net cash used in financing activities  

 

                          (62,917

)

 

 

                               (948

)

     
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS  

 

                               (162

)

 

 

                                 108

 

     
NET CHANGE IN CASH AND CASH EQUIVALENTS  

 

                            (1,653

)

 

 

                            41,574

 

     
CASH AND CASH EQUIVALENTS:    
  Beginning of period  

 

                          162,118

 

 

 

                            93,201

 

     
  End of period  

  $

                      160,465

 

 

  $

                      134,775

 

     
NONCASH INVESTING AND FINANCING ACTIVITIES:    
  Unpaid liability related to software, equipment, and property  

  $

                          4,054

 

 

  $

                             -

 

     
  Leasehold improvements acquired by tenant improvement allowance  

  $

                        10,556

 

 

  $

                             -

 

     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
  Cash paid for interest, excluding extinguishment of interest rate swap liability  

  $

                        47,312

 

 

  $

                        52,217

 

     
  Cash received (paid) for income taxes—Net  

  $

                      (15,119

)

 

  $

                             770

 

   

 

 

 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT
(In thousands, except profit margin percentage data)
(Unaudited)

 
Three months ended September 30, Nine months ended September 30,
 
(amounts in thousands, except percentages)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Gross Profit

 $

                                  118,775

 

 $

                                  107,299

 

 $

                                  353,247

 

 $

                                  312,278

 

First Party Clinical Services—Gross Profit

 

                                               -

 

 

                                          (645

)

 

                                               -

 

 

                                       (3,035

)

Amortization of acquired technologies

 

                                         6,580

 

 

                                         6,576

 

 

                                       19,740

 

 

                                       19,725

 

Business combination transaction costs

 

                                            905

 

 

                                               -

 

 

                                            905

 

 

                                               -

 

Stock-based compensation

 

                                       12,169

 

 

                                            141

 

 

                                       12,563

 

 

                                            380

 

 
Adjusted Gross Profit

 $

                                  138,429

 

 $

                                  113,371

 

 $

                                  386,455

 

 $

                                  329,348

 

 
Gross Profit Margin

 

67

%

 

68

%

 

70

%

 

67

%

Adjusted Gross Profit Margin

 

78

%

 

76

%

 

77

%

 

75

%

 
 

 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO ADJUSTED OPERATING INCOME
(In thousands)
(Unaudited)

 
Three months ended September 30, Nine months ended September 30,
 
(dollar amounts in thousands)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net operating (loss) income

 $

                                (189,212

)

 $

                                   23,085

 

 $

                                (159,974

)

 $

                                   52,847

 

Stock-based compensation expense

 

                                    219,876

 

 

                                        1,869

 

 

                                    235,413

 

 

                                        7,471

 

Lease abandonment 

 

                                           438

 

 

                                              -

 

 

                                        2,256

 

 

                                              -

 

Lease overlap costs

 

                                           924

 

 

                                              -

 

 

                                        2,773

 

 

                                              -

 

Net costs related to divestiture

 

                                           338

 

 

                                              -

 

 

                                        2,605

 

 

                                              -

 

Business combination transaction costs

 

                                        5,516

 

 

                                             93

 

 

                                      10,471

 

 

                                             93

 

Amortization of intangible assets

 

                                      18,078

 

 

                                      18,078

 

 

                                      54,232

 

 

                                      54,232

 

Amortization of acquired technologies—Cost of revenue

 

                                        6,580

 

 

                                        6,576

 

 

                                      19,740

 

 

                                      19,725

 

First Party Clinical Services—Revenue

 

                                              -

 

 

                                       (7,830

)

 

                                              -

 

 

                                     (26,083

)

First Party Clinical Services—Cost of revenue

 

                                              -

 

 

                                        7,185

 

 

                                              -

 

 

                                      23,048

 

 
Adjusted operating income

 $

                                   62,538

 

 $

                                   49,056

 

 $

                                 167,516

 

 $

                                 131,333

 

 

 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
(In thousands)
(Unaudited)

 
Three months ended September 30, Nine months ended September 30,
 
(dollar amounts in thousands)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net (loss) income

 $

                                (189,782

)

 $

                                     4,720

 

 $

                                (191,050

)

 $

                                  (22,494

)

Interest expense

 

                                      13,878

 

 

                                      19,788

 

 

                                      51,548

 

 

                                      57,588

 

Income tax provision (benefit)

 

                                     (53,523

)

 

                                        2,520

 

 

                                     (54,227

)

 

                                       (7,191

)

Amortization of intangible assets

 

                                      18,078

 

 

                                      18,078

 

 

                                      54,232

 

 

                                      54,232

 

Amortization of acquired technologies—Cost of revenue

 

                                        6,580

 

 

                                        6,576

 

 

                                      19,740

 

 

                                      19,725

 

Depreciation and amortization related to software, equipment and property

 

                                        7,694

 

 

                                        4,496

 

 

                                      18,161

 

 

                                      13,039

 

 
EBITDA

 

                                   (197,075

)

 

                                      56,178

 

 

                                   (101,596

)

 

                                    114,899

 

(Gain) loss on change in fair value of interest rate swaps

 

                                       (2,007

)

 

                                       (3,894

)

 

                                       (8,373

)

 

                                      16,633

 

Change in fair value of warrant liabilities

 

                                      26,889

 

 

                                              -

 

 

                                      26,889

 

 

                                              -

 

Stock-based compensation expense

 

                                    219,876

 

 

                                        1,869

 

 

                                    235,413

 

 

                                        7,471

 

Loss on early extinguishment of debt

 

                                      15,240

 

 

                                              -

 

 

                                      15,240

 

 

                                        8,615

 

Business combination transaction costs

 

                                        5,516

 

 

                                             93

 

 

                                      10,471

 

 

                                             93

 

Lease abandonment 

 

                                           438

 

 

                                              -

 

 

                                        2,256

 

 

                                              -

 

Lease overlap costs

 

                                           924

 

 

                                              -

 

 

                                        2,773

 

 

                                              -

 

Net costs related to divestiture

 

                                           338

 

 

                                              -

 

 

                                        2,605

 

 

                                              -

 

First Party Clinical Services—Revenue

 

                                              -

 

 

                                       (7,830

)

 

                                              -

 

 

                                     (26,083

)

First Party Clinical Services—Cost of revenue

 

                                              -

 

 

                                        7,185

 

 

                                              -

 

 

                                      23,048

 

 
Adjusted EBITDA

 $

                                   70,139

 

 $

                                   53,601

 

 $

                                 185,678

 

 $

                                 144,676

 

 
 

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET INCOME
(In thousands)
(Unaudited)

 
 
Three months ended September 30, Nine months ended September 30,
 
(dollar amounts in thousands)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net (loss) income

 $

                                (189,782

)

 $

                                     4,720

 

 $

                                (191,050

)

 $

                                  (22,494

)

Amortization of intangible assets

 

                                      18,078

 

 

                                      18,078

 

 

                                      54,232

 

 

                                      54,232

 

Amortization of acquired technologies—Cost of revenue

 

                                        6,580

 

 

                                        6,576

 

 

                                      19,740

 

 

                                      19,725

 

(Gain) loss on change in fair value of interest rate swaps

 

                                       (2,007

)

 

                                       (3,894

)

 

                                       (8,373

)

 

                                      16,633

 

Change in fair value of warrant liabilities

 

                                      26,889

 

 

                                              -

 

 

                                      26,889

 

 

                                              -

 

Stock-based compensation expense

 

                                    219,876

 

 

                                        1,869

 

 

                                    235,413

 

 

                                        7,471

 

Loss on early extinguishment of debt

 

                                      15,240

 

 

                                              -

 

 

                                      15,240

 

 

                                        8,615

 

Business combination transaction costs

 

                                        5,516

 

 

                                             93

 

 

                                      10,471

 

 

                                             93

 

Lease abandonment 

 

                                           438

 

 

                                              -

 

 

                                        2,256

 

 

                                              -

 

Lease overlap costs

 

                                           924

 

 

                                              -

 

 

                                        2,773

 

 

                                              -

 

Net costs related to divestiture

 

                                           338

 

 

                                              -

 

 

                                        2,605

 

 

                                              -

 

First Party Clinical Services—Revenue

 

                                              -

 

 

                                       (7,830

)

 

                                              -

 

 

                                     (26,083

)

First Party Clinical Services—Cost of revenue

 

                                              -

 

 

                                        7,185

 

 

                                              -

 

 

                                      23,048

 

Tax effect of adjustments

 

                                     (72,360

)

 

                                       (5,716

)

 

                                     (89,134

)

 

                                     (26,947

)

 
Adjusted net income

 $

                                   29,730

 

 $

                                   21,081

 

 $

                                   81,062

 

 $

                                   54,293

 

 
Adjusted net income per share attributable to common stockholders
Basic 

 $

                                       0.05

 

 $

                                       0.04

 

 $

                                       0.15

 

 $

                                       0.11

 

Diluted

 $

                                       0.05

 

 $

                                       0.04

 

 $

                                       0.15

 

 $

                                       0.11

 

 
Weighted average shares outstanding
Basic 

 

566,454,782

 

 

504,212,021

 

 

525,877,533

 

 

504,062,587

 

Diluted

 

599,675,416

 

 

510,694,493

 

 

554,818,300

 

 

510,252,470

 

 
 

 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
(Unaudited)

 
Three months ended September 30, Nine months ended September 30,
(dollar amounts in thousands)

 

2021

 

 

 

      2020

 

 

 

2021

 

 

 

      2020

 

 
Net cash provided by operating activities

 $

                                           36,905

 

 $

                                           43,013

 

 $

                                           96,725

 

 $

                                           66,789

 

Less: Purchases of software, equipment, and property

 

                                            (11,864

)

 

                                            (11,303

)

 

                                            (25,022

)

 

                                            (23,815

)

Less: Purchase of intangible assets

 

                                                     -

 

 

                                                     -

 

 

                                                   (49

)

 

                                                 (560

)

 
Free Cash Flow

 $

                                           25,041

 

 $

                                           31,710

 

 $

                                           71,654

 

 $

                                           42,414

 

 

Investor Contact:
Brian Denyeau
ICR, LLC
646-277-1251
IR@cccis.com

Media Contact:
Michelle Hellyar
Director Public Relations, CCC Intelligent Solutions Inc.
mhellyar@cccis.com

Source: CCC Intelligent Solutions Inc.

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