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CCC Intelligent Solutions Inc. Announces Second Quarter Fiscal 2021 Financial Results

08/12/2021

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

“We saw continued adoption of digital and AI solutions that accelerated top-line performance in the second quarter. Our continuous focus on innovation and customer success has CCC in a terrific position to support the digitization of the P&C insurance economy by delivering the differentiated solutions our customers want to improve their business,” said Githesh Ramamurthy, Chairman & CEO of CCC.

Ramamurthy continued, “We are excited by the successful completion of our business combination with Dragoneer Growth Opportunity Corp. and our return to the public markets. We have increased flexibility to expand how we invest in the business that will benefit our customers and provide additional growth opportunities for CCC to meet or exceed our long-term growth objectives.”

Second Quarter 2021 Financial Highlights

Revenue

  • Total revenue was $166.8 million for the second quarter of 2021, compared to $150.7 million for the second 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 16% in the second quarter of 2021.

Profitability

  • GAAP gross profit was $121.3 million, representing a gross margin of 73%, for the second quarter of 2021, compared with GAAP gross profit of $100.7 million, representing a gross margin of 67%, for the second quarter of 2020. Adjusted gross profit was $128.0 million, representing an adjusted gross margin of 77%, for the second quarter of 2021, compared with adjusted gross profit of $107.3 million, representing an adjusted gross margin of 74%, for the second quarter of 2020.
  • GAAP operating income was $22.0 million for the second quarter of 2021, compared with GAAP operating income of $15.6 million for the second quarter of 2020. Adjusted operating income was $54.8 million for the second quarter of 2021, compared with adjusted operating income of $42.5 million for the second quarter of 2020.
  • GAAP net income was $3.8 million for the second quarter of 2021, compared with GAAP net loss of $2.0 million for the second quarter of 2020. Adjusted net income was $26.3 million for the second quarter of 2021, compared with adjusted net income of $17.5 million for the second quarter of 2020.
  • Adjusted EBITDA was $60.1 million for the second quarter of 2021, compared with adjusted EBITDA of $46.9 million for the second quarter of 2020. Adjusted EBITDA grew 28% in the second quarter of 2021 as compared to the second quarter of 2020.

Liquidity

  • CCC had $58.5 million in cash and cash equivalents and $1.3 billion of total debt at June 30, 2021. The Company generated $21.6 million in cash from operating activities and had free cash flow of $13.1 million during the second quarter of 2021, compared with $14.7 million generated in cash from operating activities and had $7.6 million in free cash flow in the second quarter of 2020.

The information presented above includes non-GAAP financial measures such as “adjusted EBITDA,” “adjusted net income,” “adjusted operating income,” “adjusted gross 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.

2nd Quarter and Recent Business Highlights

  • Successfully completed our business combination with Dragoneer Growth Opportunities Corp and began trading under the ticker “CCCS” on the New York Stock Exchange on August 2, 2021. CCC received net proceeds from this transaction of more than $600 million.
  • Announced CCC ONE® Estimating-IQ, which will enhance the AI capabilities on the CCC ONE® platform for repair facilities, will be released in the third quarter. Incorporation of advanced AI will accelerate estimating for the tens of thousands of collision repairers using the CCC ONE platform.
  • Announced a partnership with Buckle, an inclusive tech-enabled financial services company, to digitize auto claims for its community of rideshare and delivery drivers. This win reinforces the opportunity we see to expand our solutions to emerging parts of the auto economy ecosystem.
  • Announced the new corporate name CCC Intelligent Solutions Inc. The new name reflects the company’s focus on applying AI, IoT, and advanced analytics to power mission-critical workflows, commerce, and connections across the multi-trillion-dollar insurance economy. The CCC Cloud platform connects insurers, collision repairers, automakers, lenders, suppliers, and more to support the industry’s digital transformation.

Business Outlook

Based on information as of today, August 12, 2021, the Company is issuing the following financial guidance:

 

 

Third Quarter Fiscal 2021

Full Year Fiscal 2021

Revenue

$172.5 million to $174.5 million

$677 million to $682 million

 

 

 

Adjusted EBITDA

$61 million to $63 million

$244 million to $249 million

Year-over-year revenue growth for the third quarter of 2021 is forecasted to be 9% - 10%, or 15% - 16% 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 7% - 8%, or 13% - 14% on an adjusted basis. First Party Clinical Services revenue was $7.8 million and $34.7 million for our fiscal third quarter and year end 2020, respectively.

Conference Call Information

CCC will host a conference call today, August 12, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. To access this call, dial 844-200-6205 (domestic) or 44-208-0682-558 (international). The conference ID number is 941788. A live webcast of this conference call will be available on the “Investor Relations” page (https://ir.cccis.com/home/default.aspx.) and a replay will be archived on the website as well.

About CCC Intelligent Solutions

CCC Intelligent Solutions Inc. (CCC) (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 ability to recognize the anticipated benefits of the business combination (the “business combination”) of CCC’s parent corporation and Dragoneer Growth Opportunities Corp. ; the impact of COVID-19 on CCC’s business and/or the ability of the parties to complete the business combination; failure to realize the anticipated benefits of 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 expansion of CCC Payments and launch of CCC Estimate are not as successful as anticipated or do not occur on the expected timing; 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 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.

 

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

June 30,

 

December 31,

2021

 

2020

(Unaudited)

 

(Audited)

ASSETS

 

CURRENT ASSETS:

Cash and cash equivalents

$

58,506

 

$

162,118

 

Accounts receivable—Net of allowances of $4,218 and $4,224 for June 30, 2021 and December 31, 2020, respectively

 

81,817

 

 

74,107

 

Income taxes receivable

 

1,244

 

 

2,037

 

Deferred contract costs

 

12,681

 

 

11,917

 

Other current assets

 

33,524

 

 

31,586

 

Total current assets

 

187,772

 

 

281,765

 

SOFTWARE, EQUIPMENT, AND PROPERTY—Net

 

108,640

 

 

101,438

 

OPERATING LEASE ASSETS

 

41,859

 

 

-

 

INTANGIBLE ASSETS—Net

 

1,262,608

 

 

1,311,917

 

GOODWILL

 

1,466,884

 

 

1,466,884

 

DEFERRED FINANCING FEES, REVOLVER—Net

 

598

 

 

746

 

DEFERRED CONTRACT COSTS

 

15,986

 

 

14,389

 

EQUITY METHOD INVESTMENT

 

10,228

 

 

-

 

OTHER ASSETS

 

16,684

 

 

18,416

 

TOTAL

$

3,111,259

 

$

3,195,555

 

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

16,826

 

$

13,164

 

Accrued expenses

 

58,393

 

 

52,987

 

Income taxes payable

 

4,293

 

 

5,129

 

Current portion of long-term debt

 

13,846

 

 

25,381

 

Current portion of long-term licensing agreement—Net

 

2,620

 

 

2,540

 

Operating lease liabilities

 

9,546

 

 

-

 

Deferred revenues

 

28,824

 

 

26,514

 

Interest rate swap derivatives

 

11,993

 

 

-

 

Total current liabilities

 

146,341

 

 

125,715

 

FIRST LIEN TERM LOAN—Net

 

1,299,774

 

 

1,292,597

 

DEFERRED INCOME TAXES—Net

 

311,280

 

 

322,348

 

LONG-TERM LICENSING AGREEMENT—Net

 

35,001

 

 

36,331

 

OPERATING LEASE LIABILITIES

 

41,338

 

 

-

 

OTHER LIABILITIES

 

11,711

 

 

32,770

 

Total liabilities

 

1,845,445

 

 

1,809,761

 

COMMITMENTS AND CONTINGENCIES (Notes 20 and 21)

MEZZANINE EQUITY:

Redeemable non-controlling interests

 

14,179

 

 

14,179

 

STOCKHOLDERS’ EQUITY:

Preferred stock, $0.001 par; 1,500,000 shares authorized; no shares issued and outstanding

 

-

 

 

-

 

Common stock—Series A, $0.001 par; 3,000,000 shares authorized; 1,450,978 shares issued and outstanding at June 30, 2021 and December 31, 2020

1

1

Common stock—Series B, $0.001 par; 500,000 shares authorized; 33,178 and 29,785 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

-

-

Additional paid-in capital

 

1,517,123

 

 

1,501,255

 

Accumulated deficit

 

(265,189

)

 

(129,370

)

Accumulated other comprehensive loss

 

(300

)

 

(271

)

Total stockholders’ equity

 

1,251,635

 

 

1,371,615

 

TOTAL

$

3,111,259

 

$

3,195,555

 

 

See notes to condensed consolidated financial statements.

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share data)

(Unaudited)

For the Three Months Ended

 

For the Six Months Ended

June 30,

 

June 30,

2021

 

2020

 

2021

 

2020

 

REVENUES

$

166,789

 

$

150,716

 

$

324,578

 

$

309,924

 

COST OF REVENUES

Cost of revenues, exclusive of amortization of acquired technologies

 

38,932

 

 

43,408

 

 

76,945

 

 

91,795

 

Amortization of acquired technologies

 

6,580

 

 

6,574

 

 

13,160

 

 

13,149

 

Total cost of revenues

 

45,512

 

 

49,982

 

 

90,105

 

 

104,944

 

GROSS PROFIT

 

121,277

 

 

100,734

 

 

234,473

 

 

204,980

 

OPERATING EXPENSES:

Research and development

 

31,253

 

 

27,772

 

 

61,877

 

 

55,315

 

Selling and marketing

 

21,551

 

 

17,702

 

 

40,968

 

 

39,181

 

General and administrative

 

28,394

 

 

21,566

 

 

66,233

 

 

44,566

 

Amortization of intangible assets

 

18,078

 

 

18,078

 

 

36,155

 

 

36,155

 

Total operating expenses

 

99,276

 

 

85,118

 

 

205,233

 

 

175,217

 

OPERATING INCOME

 

22,001

 

 

15,616

 

 

29,240

 

 

29,763

 

INTEREST EXPENSE

 

(18,903

)

 

(18,643

)

 

(37,669

)

 

(37,800

)

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

 

3,089

 

 

620

 

 

6,366

 

 

(20,527

)

LOSS ON EARLY EXTINGUISHMENT OF DEBT

 

-

 

 

-

 

 

-

 

 

(8,615

)

OTHER INCOME—Net

 

4

 

 

115

 

 

91

 

 

255

 

PRETAX INCOME (LOSS)

 

6,191

 

 

(2,292

)

 

(1,972

)

 

(36,924

)

INCOME TAX (PROVISION) BENEFIT

 

(2,375

)

 

331

 

 

704

 

 

9,711

 

NET INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

3,816

 

 

(1,961

)

 

(1,268

)

 

(27,213

)

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

 

-

 

 

-

 

 

-

 

 

-

 

NET INCOME (LOSS) ATTRIBUTABLE TO CYPRESS HOLDINGS, INC.

$

3,816

 

$

(1,961

)

$

(1,268

)

$

(27,213

)

Net income (loss) per share attributable to Class A and Class B common stockholders:

Basic

$

2.57

 

$

(1.32

)

$

(0.85

)

$

(18.39

)

Diluted

$

2.48

 

$

(1.32

)

$

(0.85

)

$

(18.39

)

Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:

Basic

 

1,484,156

 

 

1,480,262

 

 

1,483,634

 

 

1,479,918

 

Diluted

 

1,537,767

 

 

1,480,262

 

 

1,483,634

 

 

1,479,918

 

COMPREHENSIVE INCOME (LOSS):

Net income (loss) including non-controlling interest

 

3,816

 

 

(1,961

)

 

(1,268

)

 

(27,213

)

Other comprehensive loss—Foreign currency translation adjustment

 

(36

)

 

(1

)

 

(29

)

 

(18

)

COMPREHENSIVE INCOME (LOSS) INCLUDING NON-CONTROLLING INTEREST

 

3,780

 

 

(1,962

)

 

(1,297

)

 

(27,231

)

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

 

-

 

 

-

 

 

-

 

 

-

 

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CYPRESS HOLDINGS, INC.

$

3,780

 

$

(1,962

)

$

(1,297

)

$

(27,231

)

 

See notes to condensed consolidated financial statements.

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

For the Six Months Ended

June 30,

2021

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(1,268

)

$

(27,213

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization of software, equipment, and property

 

10,472

 

 

8,543

 

Amortization of intangible assets

 

49,315

 

 

49,304

 

Deferred income taxes

 

(11,068

)

 

(16,685

)

Stock-based compensation

 

15,537

 

 

5,601

 

Amortization of deferred financing fees

 

2,321

 

 

2,146

 

Amortization of discount on debt

 

392

 

 

327

 

Change in fair value of interest rate swaps

 

(6,366

)

 

20,527

 

Loss on early extinguishment of debt

 

-

 

 

8,615

 

Non-cash lease expense

 

3,667

 

 

-

 

Other

 

34

 

 

13

 

Changes in:

Accounts receivable—Net

 

(7,749

)

 

(9,834

)

Deferred contract costs

 

(765

)

 

128

 

Other current assets

 

(1,937

)

 

2,757

 

Deferred contract costs—Non-current

 

(1,597

)

 

(941

)

Other assets

 

1,699

 

 

(10,254

)

Operating lease assets

 

3,410

 

 

-

 

Income taxes

 

(43

)

 

7,256

 

Accounts payable

 

3,613

 

 

(115

)

Accrued expenses

 

4,031

 

 

(17,324

)

Operating lease liabilities

 

(3,900

)

 

-

 

Deferred revenues

 

2,303

 

 

1,127

 

Other liabilities

 

(2,281

)

 

(202

)

 

Net cash provided by operating activities

 

59,820

 

 

23,776

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of software, equipment, and property

 

(13,158

)

 

(12,512

)

Purchase of equity method investment

 

(10,189

)

 

-

 

Purchase of intangible asset

 

(49

)

 

(560

)

 

Net cash used in investing activities

 

(23,396

)

 

(13,072

)

 

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of non-controlling interest in subsidiary

 

-

 

 

14,179

 

Principal payments on long-term debt

 

(6,923

)

 

(381,923

)

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

 

-

 

 

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 Series B common stock

 

1,007

 

 

-

 

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

 

-

 

 

(29

)

Proceeds from exercise of stock options

 

503

 

 

242

 

Repurchases of Series B common stock

 

-

 

 

(101

)

Dividend to stockholders

 

(134,549

)

 

-

 

 

Net cash used in financing activities

 

(139,962

)

 

2,160

 

 

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(74

)

 

(46

)

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

(103,612

)

 

12,818

 

 

CASH AND CASH EQUIVALENTS:

Beginning of period

 

162,118

 

 

93,201

 

 

End of period

$

58,506

 

$

106,019

 

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

Unpaid liability related to software, equipment, and property

$

5,752

 

$

-

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

$

35,020

 

$

35,470

 

 

Cash received (paid) for income taxes—Net

$

(10,409

)

$

283

 

 

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except profit margin percentage data)

(Unaudited)

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

(amounts in thousands)

2021

 

2020

 

2021

 

2020

Gross Profit

$

121,277

 

$

100,734

 

$

234,473

 

$

204,980

 

First Party Clinical Services—Gross Profit

 

-

 

 

(141

)

 

-

 

 

(2,390

)

Amortization of acquired technologies

 

6,580

 

 

6,574

 

 

13,160

 

 

13,149

 

Stock-based compensation

 

176

 

 

160

 

 

394

 

 

239

 

 

Adjusted Gross Profit

$

128,033

 

$

107,327

 

$

248,027

 

$

215,978

 

 

Gross Profit Margin Percentage

 

73

%

 

67

%

 

72

%

 

66

%

Adjusted Gross Profit Margin Percentage

 

77

%

 

74

%

 

76

%

 

70

%

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING INCOME TO ADJUSTED OPERATING INCOME

(In thousands)

(Unaudited)

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

(dollar amounts in thousands)

2021

 

2020

 

2021

 

2020

GAAP Operating Income

$

22,001

$

15,616

 

$

29,240

$

29,763

 

Stock-based compensation expense

 

2,883

 

2,371

 

 

15,537

 

5,601

 

Lease abandonment

 

925

 

-

 

 

1,850

 

-

 

Lease overlap costs

 

909

 

-

 

 

1,817

 

-

 

Net costs related to divestiture

 

1,494

 

-

 

 

2,266

 

-

 

Business combination transaction costs

 

1,953

 

-

 

 

4,955

 

-

 

Amortization of intangible assets

 

18,078

 

18,078

 

 

36,155

 

36,155

 

Amortization of acquired technologies—Cost of revenue

 

6,580

 

6,574

 

 

13,160

 

13,149

 

First Party Clinical Services—Revenue

 

-

 

(6,603

)

 

-

 

(18,255

)

First Party Clinical Services—Cost of revenue

 

-

 

6,462

 

 

-

 

15,865

 

 

Adjusted Operating Income

$

54,823

$

42,498

 

$

104,980

$

82,278

 

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

(dollar amounts in thousands)

2021

 

2020

 

2021

 

2020

Net income (loss)

$

3,816

 

$

(1,961

)

$

(1,268

)

$

(27,213

)

Interest expense

 

18,903

 

 

18,643

 

 

37,669

 

 

37,800

 

Income tax provision (benefit)

 

2,375

 

 

(331

)

 

(704

)

 

(9,711

)

Amortization of intangible assets

 

18,078

 

 

18,078

 

 

36,155

 

 

36,155

 

Amortization of acquired technologies—Cost of revenue

 

6,580

 

 

6,574

 

 

13,160

 

 

13,149

 

Depreciation and amortization related to software, equipment and property

 

5,314

 

 

4,243

 

 

10,467

 

 

8,543

 

 

EBITDA

 

55,066

 

 

45,246

 

 

95,479

 

 

58,723

 

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

 

(3,089

)

 

(620

)

 

(6,366

)

 

20,527

 

Stock-based compensation expense

 

2,883

 

 

2,371

 

 

15,537

 

 

5,601

 

Loss on early extinguishment of debt

 

-

 

 

-

 

 

-

 

 

8,615

 

Business combination transaction costs

 

1,953

 

 

-

 

 

4,955

 

 

-

 

Lease abandonment

 

925

 

 

-

 

 

1,850

 

 

-

 

Lease overlap costs

 

909

 

 

-

 

 

1,817

 

 

-

 

Net costs related to divestiture

 

1,494

 

 

-

 

 

2,266

 

 

-

 

First Party Clinical Services—Revenue

 

-

 

 

(6,603

)

 

-

 

 

(18,255

)

First Party Clinical Services—Cost of revenue

 

-

 

 

6,462

 

 

-

 

 

15,865

 

 

Adjusted EBITDA

$

60,141

 

$

46,856

 

$

115,538

 

$

91,076

 

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME

(In thousands)

(Unaudited)

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

(dollar amounts in thousands)

2021

 

2020

 

2021

 

2020

GAAP Net Income (Loss)

$

3,816

 

$

(1,961

)

$

(1,268

)

$

(27,213

)

Stock-based compensation expense

 

2,883

 

 

2,371

 

 

15,537

 

 

5,601

 

Lease abandonment

 

925

 

 

-

 

 

1,850

 

 

-

 

Lease overlap costs

 

909

 

 

-

 

 

1,817

 

 

-

 

Net costs related to divestiture

 

1,494

 

 

-

 

 

2,266

 

 

-

 

Business combination transaction costs

 

1,953

 

 

-

 

 

4,955

 

 

-

 

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

 

(3,089

)

 

(620

)

 

(6,366

)

 

20,527

 

Loss on early extinguishment of debt

 

-

 

 

-

 

 

-

 

 

8,615

 

Amortization of intangible assets

 

18,078

 

 

18,078

 

 

36,155

 

 

36,155

 

Amortization of acquired technologies—Cost of revenue

 

6,580

 

 

6,574

 

 

13,160

 

 

13,149

 

First Party Clinical Services—Revenue

 

-

 

 

(6,603

)

 

-

 

 

(18,255

)

First Party Clinical Services—Cost of revenue

 

-

 

 

6,462

 

 

-

 

 

15,865

 

Tax effect of adjustments

 

(7,223

)

 

(6,828

)

 

(16,774

)

 

(21,231

)

 

Adjusted Net Income

$

26,326

 

$

17,473

 

$

51,332

 

$

33,213

 

CYPRESS HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(In thousands)

(Unaudited)

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

(amounts in thousands)

2021

 

2020

 

2021

 

2020

Net cash provided by operating activities

$

21,586

 

$

14,675

 

$

59,820

 

$

23,776

 

Less: Purchases of software, equipment, and property

 

(8,521

)

 

(7,068

)

 

(13,158

)

 

(12,512

)

Less: Purchase of intangible assets

 

-

 

 

-

 

 

(49

)

 

(560

)

 

Free Cash Flow

$

13,065

 

$

7,607

 

$

46,613

 

$

10,704

 

 

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

Media:
Michael Nothnagel
CCC Intelligent Solutions Inc.
michael.nothnagel@teamlewis.com

Source: CCC Intelligent Solutions Inc.

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