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CCC Intelligent Solutions Holdings Inc. Announces Second Quarter Fiscal Year 2022 Financial Results and Raises 2022 Guidance

08/04/2022

CCC Intelligent Solutions Holdings Inc. (“CCC” or the “Company”) (NYSE: CCCS), a leading SaaS platform for the P&C insurance economy, today announced its financial results for the three months ended June 30, 2022, and raised revenue and adjusted EBITDA guidance for fiscal year 2022.

“CCC delivered strong second quarter results, highlighted by 16% revenue growth and 22% adjusted EBITDA growth. Our performance reflects the durability of CCC’s business model and end markets as we help our customers become more operationally efficient through our AI-based solutions and connected network,” said Githesh Ramamurthy, Chairman & CEO of CCC.

“The growing momentum of CCC® Estimate – STP with insurance carriers and the increased use of our diagnostics-related capabilities by repair shops are just two examples of how our continued focus on innovation is helping our clients address the macro headwinds of inflation, supply chain issues, labor shortages, and vehicle complexity,” continued Ramamurthy.

Second Quarter 2022 Financial Highlights

Revenue

  • Total revenue was $192.8 million for the second quarter of 2022, an increase of 16% from $166.8 million for the second quarter of 2021.

Profitability

  • GAAP gross profit was $139.9 million, representing a gross profit margin of 73%, for the second quarter of 2022, compared with $121.3 million, representing a gross profit margin of 73%, for the second quarter of 2021. Adjusted gross profit was $148.4 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2022, compared with $128.0 million, representing an adjusted gross profit margin of 77%, for the second quarter of 2021.
  • GAAP operating income was $12.5 million for the second quarter of 2022, compared with GAAP operating income of $22.0 million for the second quarter of 2021. Adjusted operating income was $66.7 million for the second quarter of 2022, compared with adjusted operating income of $54.8 million for the second quarter of 2021.
  • GAAP net income was $15.6 million for the second quarter of 2022, compared with GAAP net income of $3.8 million for the second quarter of 2021. Adjusted net income was $37.4 million for the second quarter of 2022, compared with $26.3 million for the second quarter of 2021.
  • Adjusted EBITDA was $73.4 million for the second quarter of 2022, compared with adjusted EBITDA of $60.1 million for the second quarter of 2021. Adjusted EBITDA grew 22% in the second quarter of 2022 as compared to the second quarter of 2021.

Liquidity

  • CCC had $227.6 million in cash and cash equivalents and $796.0 million of total debt on June 30, 2022. The Company generated cash from operating activities of $40.8 million in the second quarter of 2022, compared with $21.6 million in the second quarter of 2021. The Company generated free cash flow of $29.6 million in the second quarter of 2022, compared with $13.1 million in the second quarter of 2021.

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

  • Increased to 11 the total number of insurance carriers using CCC® Estimate - STP, the first touchless line-level estimating experience in the industry that uses advanced AI and insurer-driven rules to automatically initiate and populate detailed and actionable estimates in seconds. These 11 carriers include the majority of the top-10 auto insurers in the US by direct written premium and therefore represent a sizeable portion of US auto insurance claim volume. Notably, these 11 carriers made their decisions within 8 months of our initial customer win in November 2021 and are at various stages of rollout.
  • Announced that AirPro Diagnostics, a leading service provider of remote scanning, diagnostics, programming and ADAS calibration solutions to the auto body collision industry, has become part of the CCC® Diagnostics network. CCC® Diagnostics simplifies the process of importing the diagnostic report and provider invoice directly into CCC ONE® as part of the repair shop’s workflow. AirPro Diagnostics joins Opus, asTech, and Honda in integrating their diagnostics solutions directly into CCC ONE®, the leading collision repair platform used by 27,500 repair facilities nationwide.
  • In May 2022, CCC resumed its annual in-person customer conference spanning insurers, repair facilities, OEMs, parts suppliers, and more. Over 300 clients attended this 4-day event in Colorado Springs. The event included industry-based Advisory Council meetings, product demos in the Tech Showcase, and presentations from industry thought leaders.

Business Outlook

Based on information as of today, August 4, 2022, the Company is issuing the following financial guidance:

 

Third Quarter Fiscal 2022

Full Year Fiscal 2022

Revenue

$194 million to $196 million

$773 million to $777 million

 

 

 

Adjusted EBITDA

$72 million to $74 million

$294 million to $298 million

Conference Call Information

CCC will host a conference call today, August 4, 2022, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and financial guidance. 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., 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, our revenues, the concentration of our customers and the ability to retain our current customers; our ability to negotiate with our customers on favorable terms; our ability to maintain and grow our brand and reputation cost-effectively; the execution of our growth strategy; the impact of COVID-19 on our business and results of operations; our projected financial information, growth rate and market opportunity; the health of our industry, claim volumes, and market conditions; changes in the insurance and automotive collision industries, including the adoption of new technologies; global economic conditions and geopolitical events; competition in our market and our ability to retain and grow market share; our ability to develop, introduce and market new enhanced versions of our solutions and products; our sales and implementation cycles; the ability of our research and development efforts to create significant new revenue streams; changes in applicable laws or regulations; changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries; currency fluctuations; our reliance on third-party data, technology and intellectual property; our ability to protect our intellectual property; our ability to keep our data and information systems secure from data security breaches; our ability to acquire or invest in companies or pursue business partnerships, which may divert our management’s attention or result in dilution to our stockholders, and we may be unable to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions, investments or partnership; our ability to raise financing in the future and improve our capital structure; our success in retaining or recruiting, or changes required in, our officers, key employees or directors; our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our financial performance; our ability to expand or maintain its existing customer base; our ability to service our indebtedness; and other risks and uncertainties, including those included under the header “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC”), which can be obtained, without charge, at the SEC’s website (www.sec.gov), and in our other filings with the SEC. 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,” “adjusted operating expenses,” 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)

 

June 30,

December 31,

2022

2021

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

227,640

 

182,544

 

Accounts receivable—Net of allowances of $4,296 and $3,791 for June 30, 2022 and
December 31, 2021, respectively

82,816

 

78,793

 

Income taxes receivable

71

 

318

 

Deferred contract costs

16,021

 

15,069

 

Other current assets

30,640

 

46,181

 

Total current assets

357,188

 

322,905

 

SOFTWARE, EQUIPMENT, AND PROPERTY—Net

143,629

 

135,845

 

OPERATING LEASE ASSETS

33,615

 

37,234

 

INTANGIBLE ASSETS—Net

1,168,449

 

1,213,249

 

GOODWILL

1,494,267

 

1,466,884

 

DEFERRED FINANCING FEES, REVOLVER—Net

2,593

 

2,899

 

DEFERRED CONTRACT COSTS

19,869

 

22,117

 

EQUITY METHOD INVESTMENT

10,228

 

10,228

 

OTHER ASSETS

35,739

 

26,165

 

TOTAL

3,265,577

 

3,237,526

 

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

15,350

 

12,918

 

Accrued expenses

60,641

 

66,691

 

Income taxes payable

20,847

 

7,243

 

Current portion of long-term debt

8,000

 

8,000

 

Current portion of long-term licensing agreement—Net

2,788

 

2,703

 

Operating lease liabilities

4,137

 

8,052

 

Deferred revenues

33,298

 

31,042

 

Total current liabilities

145,061

 

136,649

 

LONG-TERM DEBT—Net

777,384

 

780,610

 

DEFERRED INCOME TAXES—Net

231,728

 

275,745

 

LONG-TERM LICENSING AGREEMENT—Net

32,213

 

33,629

 

OPERATING LEASE LIABILITIES

55,849

 

56,133

 

WARRANT LIABILITIES

39,338

 

62,478

 

OTHER LIABILITIES

2,859

 

5,785

 

Total liabilities

1,284,432

 

1,351,029

 

COMMITMENTS AND CONTINGENCIES (Notes 19 and 20)

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; 615,501,951 and
609,768,296 shares issued and outstanding at June 30, 2022 and December 31,
2021, respectively

62

 

61

 

Additional paid-in capital

2,686,326

 

2,618,924

 

Accumulated deficit

(718,813

)

(746,352

)

Accumulated other comprehensive loss

(609

)

(315

)

Total stockholders’ equity

1,966,966

 

1,872,318

 

TOTAL

3,265,577

 

3,237,526

 

CCC INTELLIGENT SOLUTIONS 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,

2022

2021

2022

2021

REVENUES

$

192,786

 

$

166,789

 

$

379,609

 

$

324,578

 

COST OF REVENUES

Cost of revenues, exclusive of amortization of acquired technologies

 

46,095

 

 

38,932

 

 

88,795

 

 

76,945

 

Amortization of acquired technologies

 

6,750

 

 

6,580

 

 

13,445

 

 

13,160

 

Total cost of revenues

 

52,845

 

 

45,512

 

 

102,240

 

 

90,105

 

GROSS PROFIT

 

139,941

 

 

121,277

 

 

277,369

 

 

34,473

 

OPERATING EXPENSES:

Research and development

 

38,758

 

 

31,253

 

 

74,438

 

 

61,877

 

Selling and marketing

 

31,091

 

 

21,551

 

 

57,894

 

 

40,968

 

General and administrative

 

39,509

 

 

28,394

 

 

83,717

 

 

66,233

 

Amortization of intangible assets

 

18,066

 

 

18,078

 

 

36,146

 

 

36,155

 

Total operating expenses

 

127,424

 

 

99,276

 

 

252,195

 

 

205,233

 

OPERATING INCOME

 

12,517

 

 

22,001

 

 

25,174

 

 

9,240

 

INTEREST EXPENSE

 

(7,944

)

 

(18,903

)

 

(15,285

)

 

(37,669

)

CHANGE IN FAIR VALUE OF INTEREST RATE SWAPS

 

 

 

3,089

 

 

 

 

6,366

 

GAIN ON SALE OF COST METHOD INVESTMENT

 

 

 

 

 

3,578

 

 

 

CHANGE IN FAIR VALUE OF WARRANT LIABILITIES

 

21,004

 

 

 

 

23,140

 

 

 

OTHER INCOME — Net

 

112

 

 

4

 

 

194

 

 

91

 

PRETAX INCOME (LOSS)

 

25,689

 

 

6,191

 

 

36,801

 

 

(1,972

)

INCOME TAX (PROVISION) BENEFIT

 

(10,125

)

 

(2,375

)

 

(9,262

)

 

704

 

NET INCOME (LOSS) INCLUDING NON-CONTROLLING
INTEREST

 

15,564

 

 

3,816

 

 

27,539

 

 

(1,268

)

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

 

 

 

 

 

 

 

 

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

$

15,564

 

$

3,816

 

$

27,539

 

$

(1,268

)

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

Basic

$

0.03

 

$

0.01

 

$

0.05

 

$

(0.00

)

Diluted

$

0.02

 

$

0.01

 

$

0.04

 

$

(0.00

)

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

Basic

 

605,948,628

 

 

505,430,380

 

 

604,534,589

 

 

505,252,635

 

Diluted

 

639,964,696

 

 

523,687,498

 

 

640,650,297

 

 

505,252,635

 

COMPREHENSIVE INCOME (LOSS):

Net income (loss) including non-controlling interest

 

15,564

 

 

3,816

 

 

27,539

 

 

(1,268

)

Other comprehensive income (loss)—Foreign currency translation
adjustment

 

(303

)

 

(36

)

 

(294

)

 

(29

)

COMPREHENSIVE INCOME (LOSS) INCLUDING
NON-CONTROLLING INTEREST

 

15,261

 

 

3,780

 

 

27,245

 

 

(1,297

)

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

 

 

 

 

 

 

 

 

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

$

15,261

 

$

3,780

 

$

27,245

 

$

(1,297

)

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Six Months Ended

June 30,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$

27,539

 

$

(1,268

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization of software, equipment, and property

 

13,490

 

 

10,472

 

Amortization of intangible assets

 

49,591

 

 

49,315

 

Deferred income taxes

 

(43,703

)

 

(11,068

)

Stock-based compensation

 

52,047

 

 

15,537

 

Amortization of deferred financing fees

 

949

 

 

2,321

 

Amortization of discount on debt

 

131

 

 

392

 

Change in fair value of interest rate swaps

 

 

 

(6,366

)

Change in fair value of warrant liabilities

 

(23,140

)

 

 

Non-cash lease expense

 

2,152

 

 

3,667

 

Loss on disposal of software, equipment and property

 

795

 

 

 

Gain on sale of cost method investment

 

(3,578

)

 

 

Other

 

47

 

 

34

 

Changes in:

Accounts receivable—Net

 

(4,027

)

 

(7,749

)

Deferred contract costs

 

(952

)

 

(765

)

Other current assets

 

15,463

 

 

(1,937

)

Deferred contract costs—Non-current

 

2,248

 

 

(1,597

)

Other assets

 

(9,935

)

 

1,699

 

Operating lease assets

 

1,576

 

 

3,410

 

Income taxes

 

13,851

 

 

(43

)

Accounts payable

 

3,204

 

 

3,613

 

Accrued expenses

 

(7,949

)

 

4,031

 

Operating lease liabilities

 

(4,308

)

 

(3,900

)

Deferred revenues

 

2,256

 

 

2,303

 

Other liabilities

 

(62

)

 

(2,281

)

Net cash provided by operating activities

 

87,685

 

 

59,820

 

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of software, equipment, and property

 

(25,469

)

 

(13,158

)

Acquisition of Safekeep, Inc., net of cash acquired

 

(32,242

)

 

 

Purchase of equity method investment

 

 

 

(10,189

)

Proceeds from sale of cost method investment

 

3,892

 

 

 

Purchase of intangible asset

 

 

 

(49

)

Net cash used in investing activities

 

(53,819

)

 

(23,396

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on long-term debt

 

(4,000

)

 

(6,923

)

Proceeds from issuance of common stock

 

 

 

1,007

 

Proceeds from exercise of stock options

 

15,511

 

 

503

 

Dividends to CCCIS stockholders

 

 

 

(134,549

)

Net cash provided by (used in) financing activities

 

11,511

 

 

(139,962

)

NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

 

(281

)

 

(74

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

45,096

 

 

(103,612

)

CASH AND CASH EQUIVALENTS:

Beginning of period

 

182,544

 

 

162,118

 

End of period

$

227,640

 

$

58,506

 

NONCASH INVESTING AND FINANCING ACTIVITIES:

Unpaid liability related to software, equipment, and property

$

 

$

5,752

 

Contingent consideration related to business acquisition

$

200

 

$

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid for interest

$

14,153

 

$

35,020

 

Cash paid for income taxes—Net

$

38,946

 

$

10,409

 

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 June 30,

Six Months Ended June 30,

(amounts in thousands, except percentages)

2022

2021

2022

2021

Gross Profit

$

139,941

 

$

121,277

 

$

277,369

 

$

234,473

 

Amortization of acquired technologies

 

6,750

 

 

6,580

 

 

13,445

 

 

13,160

 

Stock-based compensation and related employer payroll tax

 

1,680

 

 

176

 

 

2,613

 

 

394

 

Adjusted Gross Profit

$

148,371

 

$

128,033

 

$

293,427

 

$

248,027

 

Gross Profit Margin

 

73

%

 

73

%

 

73

%

 

72

%

Adjusted Gross Profit Margin

 

77

%

 

77

%

 

77

%

 

76

%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES

(In thousands)

(Unaudited)

 

Three Months Ended June 30,

Six Months Ended June 30,

(dollar amounts in thousands)

2022

2021

2022

2021

Operating expenses

$

127,424

 

$

99,276

 

$

252,195

 

$

205,233

 

Stock-based compensation expense and related employer payroll tax

 

(26,973

)

 

(2,707

)

 

(50,695

)

 

(15,143

)

Lease abandonment

 

 

 

(925

)

 

(1,338

)

 

(1,850

)

Lease overlap costs

 

 

 

(909

)

 

(1,222

)

 

(1,817

)

Net income (costs) related to divestiture

 

6

 

 

(1,494

)

 

(53

)

 

(2,266

)

Business combination transaction and related costs

 

(324

)

 

(1,953

)

 

(1,056

)

 

(4,955

)

M&A and integration costs

 

(348

)

 

 

 

(1,756

)

 

 

Amortization of intangible assets

 

(18,066

)

 

(18,078

)

 

(36,146

)

 

(36,155

)

Adjusted operating expenses

$

81,719

 

$

73,210

 

$

159,929

 

$

143,047

 

CCC INTELLIGENT SOLUTIONS 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)

2022

2021

2022

2021

Operating income

$

12,517

 

$

22,001

$

25,174

$

29,240

Stock-based compensation expense and related employer payroll tax

 

28,653

 

 

2,883

 

53,308

 

15,537

Lease abandonment

 

 

 

925

 

1,338

 

1,850

Lease overlap costs

 

 

 

909

 

1,222

 

1,817

Net (income) costs related to divestiture

 

(6

)

 

1,494

 

53

 

2,266

Business combination transaction and related costs

 

324

 

 

1,953

 

1,056

 

4,955

Amortization of intangible assets

 

18,066

 

 

18,078

 

36,146

 

36,155

M&A and integration costs

 

348

 

 

 

1,756

 

Amortization of acquired technologies—Cost of revenue

 

6,750

 

 

6,580

 

13,445

 

13,160

Adjusted operating income

$

66,652

 

$

54,823

$

133,498

$

104,980

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands, except for EBITDA margin percentage data)

(Unaudited)

 

Three Months Ended June 30,

Six Months Ended June 30,

(dollar amounts in thousands)

2022

2021

2022

2021

Net income (loss)

$

15,564

 

$

3,816

 

$

27,539

 

$

(1,268

)

Interest expense

 

7,944

 

 

18,903

 

 

15,285

 

 

37,669

 

Income tax provision (benefit)

 

10,125

 

 

2,375

 

 

9,262

 

 

(704

)

Amortization of intangible assets

 

18,066

 

 

18,078

 

 

36,146

 

 

36,155

 

Amortization of acquired technologies—Cost of
revenue

 

6,750

 

 

6,580

 

 

13,445

 

 

13,160

 

Depreciation and amortization of software,
equipment and property

 

6,683

 

 

5,314

 

 

13,490

 

 

10,467

 

EBITDA

 

65,132

 

 

55,066

 

 

115,167

 

 

95,479

 

Change in fair value of interest rate
swaps

 

 

 

(3,089

)

 

 

 

(6,366

)

Change in fair value of warrant liabilities

 

(21,004

)

 

 

 

(23,140

)

 

 

Stock-based compensation expense and related employer payroll tax

 

28,653

 

 

2,883

 

 

53,308

 

 

15,537

 

Business combination transaction and related costs

 

324

 

 

1,953

 

 

1,056

 

 

4,955

 

Lease abandonment

 

 

 

925

 

 

1,338

 

 

1,850

 

Lease overlap costs

 

 

 

909

 

 

1,222

 

 

1,817

 

Net (income) costs related to divestiture

 

(6

)

 

1,494

 

 

53

 

 

2,266

 

M&A and integration costs

 

348

 

 

 

 

1,756

 

 

 

Gain on sale of cost method investment

 

 

 

 

 

(3,578

)

 

 

Adjusted EBITDA

$

73,447

 

$

60,141

 

$

147,182

 

$

115,538

 

Adjusted EBITDA Margin

 

38.1

%

 

36.1

%

 

38.8

%

 

35.6

%

CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES

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

(In thousands, except share and per share data)

(Unaudited)

 

Three Months Ended June 30,

Six Months Ended June 30,

(dollar amounts in thousands)

2022

2021

2022

2021

Net income (loss)

$

15,564

 

$

3,816

 

$

27,539

 

$

(1,268

)

Amortization of intangible assets

 

18,066

 

 

18,078

 

 

36,146

 

 

36,155

 

Amortization of acquired technologies—
Cost of revenue

 

6,750

 

 

6,580

 

 

13,445

 

 

13,160

 

Change in fair value of
interest rate swaps

 

 

 

(3,089

)

 

 

 

(6,366

)

Change in fair value of warrant liabilities

 

(21,004

)

 

 

 

(23,140

)

 

 

Stock-based compensation expense and related employer payroll tax

 

28,653

 

 

2,883

 

 

53,308

 

 

15,537

 

Business combination transaction and related costs

 

324

 

 

1,953

 

 

1,056

 

 

4,955

 

Lease abandonment

 

 

 

925

 

 

1,338

 

 

1,850

 

Lease overlap costs

 

 

 

909

 

 

1,222

 

 

1,817

 

Net (income) costs related to divestiture

 

(6

)

 

1,494

 

 

53

 

 

2,266

 

M&A and integration costs

 

348

 

 

 

 

1,756

 

 

 

Gain on sale of cost method investment

 

 

 

 

 

(3,578

)

 

 

Tax effect of adjustments

 

(11,287

)

 

(7,223

)

 

(22,867

)

 

(16,774

)

Adjusted net income

$

37,408

 

$

26,326

 

$

86,278

 

$

51,332

 

Adjusted net income per share attributable to
common stockholders:

Basic

$

0.06

 

$

0.05

 

$

0.14

 

$

0.10

 

Diluted

$

0.06

 

$

0.05

 

$

0.13

 

$

0.10

 

Weighted average shares outstanding:

Basic

 

605,948,628

 

 

505,430,380

 

 

604,534,589

 

 

505,252,635

 

Diluted

 

639,964,696

 

 

523,687,498

 

 

640,650,297

 

 

523,438,612

 

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 June 30,

Six Months Ended June 30,

(dollar amounts in thousands)

2022

2021

2022

2021

Net cash provided by operating activities

$

40,820

 

$

21,586

 

$

87,685

 

$

59,820

 

Less: Purchases of software, equipment, and property

 

(11,189

)

 

(8,521

)

 

(25,469

)

 

(13,158

)

Less: Purchase of intangible assets

 

 

 

 

 

 

 

(49

)

Free Cash Flow

$

29,631

 

 

$

13,065

 

 

$

62,216

 

 

$

46,613

 

 

Investor Contact:
Bill Warmington
VP, Investor Relations, CCC Intelligent Solutions Inc.
312-229-2355
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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