Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,514.37 65.12 0.40%
S&P 500 1,879.55 7.66 0.41%
NASDAQ 4,161.46 39.91 0.97%
Ticker Volume Price Price Delta
STOXX 50 3,194.10 -5.59 -0.17%
FTSE 100 6,692.23 10.47 0.16%
DAX 9,594.11 -5.98 -0.06%
Ticker Volume Price Price Delta
NIKKEI 14,546.27 157.50 1.09%
TOPIX 1,173.81 11.31 0.97%
HANG SENG 22,522.79 -207.89 -0.91%

RealPage Reports Q1 2013 Financial Results



  RealPage Reports Q1 2013 Financial Results

  * 2013 Q1 Non-GAAP revenue increases 19.4% to $89.0 million
  * 2013 Q1 Non-GAAP on demand revenue increases 20.5% to $85.3 million
  * 2013 Q1 adjusted EBITDA increases 25.8% to $20.7 million
  * 2013 Q1 Non-GAAP earnings per share increases 30.0% to $0.13 per diluted
    share

Business Wire

CARROLLTON, Texas -- May 02, 2013

RealPage, Inc. (NASDAQ:RP), a leading provider of on-demand software and
software-enabled services to the rental housing industry, today announced
financial results for its first quarter ended March 31, 2013.

“We continued to deliver consistent on demand revenue growth above 20% while
expanding Adjusted EBITDA margins,” said Steve Winn, Chairman and CEO of
RealPage. “We are particularly pleased with 15% unit expansion compared to
last year and across the board better adoption of our solutions. During the
quarter, we completed two small acquisitions which should increase the
footprint of our multichannel marketing solutions as well as the senior living
solutions that we currently offer. We expect customers will continue to
migrate to our robust platform of software and software-enabled services,
which we believe are the most integrated and most comprehensive solutions in
the industry.”

First Quarter 2013 Financial Highlights

  * Non-GAAP total revenue was $89.0 million, an increase of 19.4%
    year-over-year;
  * Non-GAAP on demand revenue was $85.3 million, an increase of 20.5%
    year-over-year;
  * Adjusted EBITDA was $20.7 million, an increase of 25.8% year-over-year;
  * Non-GAAP net income was $10.0 million, or $0.13 per diluted share, a
    year-over-year increase of 30.5% and 30.0%, respectively; and
  * GAAP net income was $1.0 million, or $0.01 per diluted share, compared to
    GAAP net income of $1.7 million, or $0.02 per diluted share, in the prior
    year quarter.

Financial Outlook

RealPage management expects to achieve the following results during its second
quarter ended June 30, 2013:

  * Non-GAAP total revenue is expected to be in the range of $93.5 million to
    $95.0 million;
  * Adjusted EBITDA is expected to be in the range of $21.0 million to $22.0
    million;
  * Non-GAAP net income is expected to be in the range of $10.1 million to
    $10.7 million, or $0.13 to $0.14 per diluted share;
  * Non-GAAP tax rate of approximately 40.0%; and
  * Weighted average shares outstanding of approximately 76.3 million.

RealPage management expects to achieve the following results during its
calendar year ended December 31, 2013:

  * Non-GAAP total revenue is expected to be in the range of $384.0 million to
    $390.0 million;
  * Adjusted EBITDA is expected to be in the range of $90.0 million to $93.0
    million;
  * Non-GAAP net income is expected to be in the range of $43.9 million to
    $45.7 million, or $0.57 to $0.60 per diluted share;
  * Non-GAAP tax rate of approximately 40.0%; and
  * Full year weighted average shares outstanding of approximately 76.5
    million.

Please note that the above statements are forward looking and that Non-GAAP
total revenue includes an adjustment for the effect of deferred revenue from
acquired companies that is required to be written down for GAAP purposes under
purchase accounting rules. In addition, the above statements also include the
impact of acquisitions and exclude any costs resulting from the Yardi
litigation (including settlement costs and related insurance litigation).
Actual results may differ materially. Please reference the information under
the caption "Non-GAAP Financial Measures" as part of this press release.

Conference Call and Webcast

The Company will host a conference call today at 5:00 p.m. EDT to discuss its
financial results. Participants are encouraged to listen to the presentation
via a live web broadcast at www.realpage.com on the Investor Relations
section. In addition, a live dial-in is available domestically at 866-743-9666
and internationally at 760-298-5103. A replay will be available at
855-859-2056 or 404-537-3406, passcode 58685038, until May 9, 2013.

About RealPage

Located in Carrollton, Texas, a suburb of Dallas, RealPage provides on demand
(also referred to as "Software-as-a-Service" or "SaaS") products and services
to apartment communities and single family rentals across the United States.
Its on demand product lines include OneSite® property management systems that
automate the leasing, renting, management, and accounting of conventional,
affordable, tax credit, student living, senior living and military housing
properties; LeaseStar™ multichannel managed marketing that enables owners to
originate, syndicate, manage and capture leads more effectively and at less
overall cost; YieldStar® asset optimization systems that enable owners and
managers to optimize rents to achieve the overall highest yield, or
combination of rent and occupancy, at each property; Velocity™ billing and
utility management services that increase collections and reduce
delinquencies; LeasingDesk® risk mitigation systems that are designed to
reduce a community's exposure to risk and liability; OpsTechnology® spend
management systems that help owners manage and control operating expenses; and
Compliance Depot™ vendor management and qualification services to assist a
community in managing its compliance vendor program. Supporting this family of
SaaS products is a suite of shared cloud services including electronic
payments, document management, decision support and learning. Through its
Propertyware subsidiary, RealPage also provides software and services to
single-family rentals and low density, centrally-managed multifamily housing.
For more information, call 1-87-REALPAGE or visit www.realpage.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking" statements relating to RealPage,
Inc.'s expected, possible or assumed future results of operations, growth,
expenditures, tax rates, and outstanding shares; expected increase in the
footprint of its multichannel marketing solutions as well as the senior living
solutions that RealPage currently offers; and expected customer migration to
RealPage’s platform of software and software-enabled services. These
forward-looking statements are based on management's beliefs and assumptions
and on information currently available to management. Forward-looking
statements include all statements that are not historical facts and may be
identified by terms such as “expects,” “believes,” “plans,” or similar
expressions and the negatives of those terms. Forward-looking statements
involve known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, the following: (a) the
possibility that general economic conditions or uncertainty cause information
technology spending, particularly in the rental housing industry, to be
reduced or purchasing decisions to be delayed; (b) an increase in customer
cancellations; (c) the inability to increase sales to existing customers and
to attract new customers; (d) RealPage, Inc.'s failure to integrate acquired
businesses and any future acquisitions successfully; (e) the timing and
success of new product introductions by RealPage, Inc. or its competitors; (f)
changes in RealPage, Inc.'s pricing policies or those of its competitors; (g)
litigation; (h) inability to complete the integration of our LeaseStar
products and deliver enhanced functionality on a timely basis; or (i) the
discovery of facts and circumstances currently not available to management;
and such other risks and uncertainties described more fully in documents filed
with or furnished to the Securities and Exchange Commission ("SEC") by
RealPage, including its Annual Report on Form 10-K previously filed with the
SEC on February 27, 2013. All information provided in this release is as of
the date hereof and RealPage undertakes no duty to update this information
except as required by law.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. These measures differ
from GAAP in that they exclude amortization of intangible assets, stock-based
compensation expenses, any impact related to the Yardi litigation (including
settlement costs and related insurance litigation), acquisition-related
deferred revenue adjustments, and acquisition related expenses (including any
purchase accounting adjustments). Reconciliation tables comparing GAAP
financial measures to non-GAAP financial measures are included at the end of
this release.

We define Adjusted EBITDA as net (loss) income plus acquisition-related
deferred revenue adjustment, depreciation and asset impairment, amortization
of intangible assets, net interest expense, income tax expense (benefit),
stock-based compensation expense, any impact related to Yardi litigation
(including settlement costs and related insurance litigation), and
acquisition-related expense.

We believe that the use of Adjusted EBITDA is useful to investors and other
users of our financial statements in evaluating our operating performance
because it provides them with an additional tool to compare business
performance across companies and across periods. We believe that:

  * Adjusted EBITDA provides investors and other users of our financial
    information consistency and comparability with our past financial
    performance, facilitates period-to-period comparisons of operations and
    facilitates comparisons with our peer companies, many of which use similar
    non-GAAP financial measures to supplement their GAAP results; and
  * it is useful to exclude certain non-cash charges, such as depreciation and
    asset impairment, amortization of intangible assets and stock-based
    compensation and non-core operational charges, such as acquisition-related
    expense and any impact related to the Yardi litigation (including
    settlement costs and related insurance litigation), from Adjusted EBITDA
    because the amount of such expenses in any specific period may not
    directly correlate to the underlying performance of our business
    operations and these expenses can vary significantly between periods as a
    result of new acquisitions, full amortization of previously acquired
    tangible and intangible assets or the timing of new stock-based awards, as
    the case may be.

We use Adjusted EBITDA in conjunction with traditional GAAP operating
performance measures as part of our overall assessment of our performance, for
planning purposes, including the preparation of our annual operating budget,
to evaluate the effectiveness of our business strategies and to communicate
with our board of directors concerning our financial performance.

We do not place undue reliance on Adjusted EBITDA as our only measure of
operating performance. Adjusted EBITDA should not be considered as a
substitute for other measures of liquidity or financial performance reported
in accordance with GAAP. There are limitations to using non-GAAP financial
measures, including that other companies may calculate these measures
differently than we do, that they do not reflect our capital expenditures or
future requirements for capital expenditures and that they do not reflect
changes in, or cash requirements for, our working capital. We compensate for
the inherent limitations associated with using Adjusted EBITDA measures
through disclosure of these limitations, presentation of our financial
statements in accordance with GAAP and reconciliation of Adjusted EBITDA to
the most directly comparable GAAP measure, net (loss) income.

                                                               
Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2013 and 2012
(unaudited, in thousands, except per share data)
                                                                 
                                                 Three Months Ended
                                                 March 31,
                                                 2013           2012
Revenue:
On demand                                        $ 85,322       $ 70,718
On premise                                         950            1,416
Professional and other                             2,709          2,283   
Total revenue                                      88,981         74,417
Cost of revenue^(1)                                35,364         30,613  
Gross profit                                       53,617         43,804
Operating expense:
Product development^(1)                            12,038         11,313
Sales and marketing^(1)                            22,902         16,806
General and administrative^(1)                     16,507         12,303  
Total operating expense                            51,447         40,422  
Operating income                                   2,170          3,382
Interest expense and other income, net             (89    )       (636   )
Income before income taxes                         2,081          2,746
Income tax expense                                 1,063          1,026   
Net income                                       $ 1,018        $ 1,720   
                                                                 
Net income per share
Basic                                            $ 0.01         $ 0.02
Diluted                                          $ 0.01         $ 0.02
Weighted average shares used in
computing net income per share
Basic                                              74,011         70,590
Diluted                                            75,454         73,170
                                                                 
                                                                 
^(1) Includes stock-based compensation           Three Months Ended
expense as follows:                              March 31,
                                                 2013           2012
Cost of revenue                                  $ 750          $ 689
Product development                                1,131          1,062
Sales and marketing                                3,201          737
General and administrative                         2,163          1,500   
                                                 $ 7,245        $ 3,988   
                                                                 

                                                                 
Condensed Consolidated Balance Sheets
At March 31, 2013 and December 31, 2012
(unaudited, in thousands except share data)
 
                                                  March 31,       December 31,
                                                  2013            2012
Assets
Current assets:
Cash and cash equivalents                         $ 22,761        $  33,804
Restricted cash                                     28,936           35,202
Accounts receivable, less allowance for
doubtful accounts of $1,146 and $1,087 at
March 31, 2013 and December 31, 2012,               54,652           51,937
respectively
Deferred tax asset, net                             197              -
Other current assets                                9,633            6,541    
Total current assets                                116,179          127,484
Property, equipment and software, net               40,845           32,487
Goodwill                                            141,693          134,025
Identified intangible assets, net                   103,129          104,640
Deferred tax asset, net                             846              -
Other assets                                        3,731            3,561    
Total assets                                      $ 406,423       $  402,197  
Liabilities and stockholders' equity
Current liabilities:
Accounts payable                                  $ 12,697        $  9,805
Accrued expenses and other current                  22,774           19,246
liabilities
Current portion of deferred revenue                 58,992           60,633
Deferred tax liability, net                         -                2
Customer deposits held in restricted                29,103           35,171   
accounts
Total current liabilities                           123,566          124,857
Deferred revenue                                    10,121           9,446
Deferred tax liability, net                         -                10
Revolving credit facility                           -                10,000
Other long-term liabilities                         5,927            2,813    
Total liabilities                                   139,614          147,126
Stockholders' equity:
Preferred stock, $0.001 par value,
10,000,000 shares authorized and zero
shares
issued and outstanding at March 31, 2013            -                -
and December 31, 2012, respectively
Common stock, $0.001 par value per share:
125,000,000 shares authorized,
77,918,997 and 77,012,925 shares issued
and 76,606,090 and 75,826,615 shares
outstanding at March 31, 2013 and                   78               77
December 31, 2012, respectively
Additional paid-in capital                          358,877          347,203
Treasury stock, at cost: 1,312,907 and              (7,256  )        (6,323  )
1,186,310 shares at
and March 31, 2013 and December 31, 2012,
respectively
Accumulated deficit                                 (84,760 )        (85,778 )
Accumulated other comprehensive loss                (130    )        (108    )
Total stockholders' equity                          266,809          255,071  
Total liabilities and stockholders'               $ 406,423       $  402,197  
equity
                                                                   

                                                                   
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2013 and 2012
(unaudited, in thousands)
                                                                     
                                                    Three Months Ended
                                                    March 31,
                                                    2013            2012
Cash flows from operating activities:
Net income                                          $ 1,018         $ 1,720
Adjustments to reconcile net income to net
cash
provided by operating activities:
Depreciation and amortization                         7,798           7,878
Deferred tax expense                                  685             578
Stock-based compensation                              7,245           3,988
Loss on disposal of assets                            3               178
Acquisition-related contingent                        2,638           430
consideration
Changes in assets and liabilities, net of
assets acquired
and liabilities assumed in business                   (2,182  )       (3,870 )
combinations:
                                                                     
Net cash provided by operating activities             17,205          10,902
Cash flows from investing activities:
Purchases of property, equipment and                  (7,724  )       (3,560 )
software, net
Acquisition of businesses, net of cash                (10,050 )       (4,303 )
acquired
Intangible asset additions                            (600    )       (75    )
Net cash used by investing activities                 (18,374 )       (7,938 )
Cash flows from financing activities:
Payments on and proceeds from debt, net               (10,136 )       (5,373 )
Payments of deferred acquisition-related              (307    )       -
consideration
Issuance of common stock                              1,524           1,761
Purchase of treasury stock                            (933    )       (1,046 )
Net cash used in financing activities                 (9,852  )       (4,658 )
Net decrease in cash and cash equivalents             (11,021 )       (1,694 )
Effect of exchange rate on cash                       (22     )       (4     )
Cash and cash equivalents:
Beginning of period                                   33,804          51,273  
End of period                                       $ 22,761        $ 49,575  
                                                                              

                                                                   
Reconciliation of GAAP to Non-GAAP Measures
For the Three Months Ended March 31, 2013 and 2012
(unaudited, in thousands)
                                                                     
                                                     Three Months Ended
                                                     March 31,
                                                     2013           2012
                                                                     
Revenue:                                             $ 88,981       $ 74,417
Acquisition related deferred revenue                   2              81      
adjustment
Non-GAAP revenue                                     $ 88,983       $ 74,498  
                                                                     
                                                     Three Months Ended
                                                     March 31,
                                                     2013           2012
Adjusted gross profit:
Gross profit                                         $ 53,617       $ 43,804
Acquisition related deferred revenue                   2              81
adjustment
Depreciation                                           1,843          1,585
Amortization of intangible assets                      1,967          2,418
Stock-based compensation expense                       750            689     
Adjusted gross profit                                $ 58,179       $ 48,577  
                                                                     
Adjusted gross profit margin                           65.4   %       65.2   %
                                                                     
                                                     Three Months Ended
                                                     March 31,
                                                     2013           2012
Adjusted EBITDA:
Net income                                           $ 1,018        $ 1,720
Acquisition related deferred revenue                   2              81
adjustment
Depreciation, asset impairment and loss on             3,688          3,227
disposal of asset
Amortization of intangible assets                      4,113          4,829
Interest expense, net                                  357            638
Income tax expense                                     1,063          1,026
Litigation-related expense                             406            360
Stock-based compensation expense                       7,245          3,988
Acquisition related expense                            2,774          553     
Adjusted EBITDA                                      $ 20,666       $ 16,422  
                                                                     
Adjusted EBITDA margin                                 23.2   %       22.0   %
                                                                     
                                                     Three Months Ended
                                                     March 31,
                                                     2013           2012
Non-GAAP total product development:
Product development                                  $ 12,038       $ 11,313
Less: Amortization of intangible assets                -              -
Stock-based compensation expense                       1,131          1,062   
Non-GAAP total product development:                  $ 10,907       $ 10,251  
                                                                     
Non-GAAP total product development as % of             12.3   %       13.8   %
non-GAAP revenue:
                                                                     

 
Reconciliation of GAAP to Non-GAAP Measures
For the Three Months Ended March 31, 2013 and 2012
(unaudited, in thousands)
                                                                     
                                                         Three Months Ended
                                                         March 31,
                                                         2013         2012
Non-GAAP total sales and marketing:
Sales and marketing                                      $ 22,902     $ 16,806
Less: Amortization of intangible assets                  2,146        2,411
Stock-based compensation expense                         3,201        737
Non-GAAP total sales and marketing:                      $ 17,555     $ 13,658
                                                                       
Non-GAAP total sales and marketing as % of               19.7%        18.3%
non-GAAP revenue:
                                                                       
                                                         Three Months Ended
                                                         March 31,
                                                         2013         2012
Non-GAAP total general and administrative:
General and administrative                               $ 16,507     $ 12,303
Less: Acquisition related expense                        2,774        553
Stock-based compensation expense                         2,163        1,500
Litigation related expense                               406          360
Non-GAAP total general and administrative:               $ 11,164     $ 9,890
                                                                       
Non-GAAP total general and administrative as % of        12.5%        13.3%
non-GAAP revenue:
                                                                       
                                                         Three Months Ended
                                                         March 31,
                                                         2013         2012
Non-GAAP total operating expense:
Operating expense                                        $ 51,447     $ 40,422
Less: Amortization of intangible assets                  2,146        2,411
Acquisition related expenseAcquisition related           2,774        553
expense
Stock-based compensation expense                         6,495        3,299
Litigation related expense                               406          360
Non-GAAP total operating expense:                        $ 39,626     $ 33,799
                                                                       
Non-GAAP total operating expense as % of non-GAAP        44.5%        45.4%
revenue:
                                                                       
                                                         Three Months Ended
                                                         March 31,
                                                         2013         2012
Non-GAAP operating income:
Operating income                                         $ 2,170      $ 3,382
Acquisition related deferred revenue adjustment          2            81
Amortization of intangible assets                        4,113        4,829
Stock-based compensation expense                         7,245        3,988
Acquisition related expense                              2,774        553
Litigation related expense                               406          360
Non-GAAP operating income                                $ 16,710     $ 13,193
                                                                       
Non-GAAP operating margin                                18.8%        17.7%
                                                                       

 
Reconciliation of GAAP to Non-GAAP Measures
For the Three Months Ended March 31, 2013 and 2012
(unaudited, in thousands, except per share data)
                                  Three Months Ended
                                  March 31,
                                  2013                      2012
Non-GAAP net income:
Net income                        $    1,018                $    1,720
Acquisition related
deferred revenue                       2                         81
adjustment
Amortization of                        4,113                     4,829
intangible assets
Stock-based                            7,245                     3,988
compensation expense
Acquisition related                    2,774                     553
expense
Litigation related                     406                       360
expense
Loss on disposal of                    3                         178        
assets
Subtotal of tax                        14,543                    9,989
deductible items
                                                             
Tax impact of tax                      (5,817     )              (3,996    )
deductible items^(1)
Tax expense resulting
from applying effective                231                       (72       )
tax rate^(2)
Non-GAAP net income               $    9,975                $    7,641
                                                             
Non-GAAP net income per           $    0.13                 $    0.10
share - diluted
                                                             
Weighted average shares                75,454                    73,170
- diluted
Weighted average effect                -                         -          
of dilutive securities
Non-GAAP weighted
average shares -                       75,454                    73,170
diluted
                                                             
^(1) Reflects the
removal of the tax
benefit associated with
the amortization of
intangible assets,
stock-based
compensation expense,
Acquisition related
deferred revenue
adjustment and
Acquisition related
expense.
^(2) Represents
adjusting to a
normalized effective
tax rate of 40%.
                                  Three Months Ended
                                  March 31,
                                  2013                      2012
Non-GAAP cash flows
from operating
activities:
Cash flows from                   $    17,205               $    10,902
operating activities
Litigation related                     320                       446        
payments
Non-GAAP cash flows
from operating                    $    17,525               $    11,348     
activities
                                                             
                                  Three Months Ended
                                  March 31,
                                  2013                      2012
Annualized Non-GAAP on
demand revenue per
average on demand unit:
On demand revenue                 $    85,322               $    70,718
Acquisition related
deferred revenue                       2                         81         
adjustment
Non-GAAP on demand                $    85,324               $    70,799
revenue
                                                             
Ending on demand units                 8,545                     7,431
Average on demand units                8,329                     7,366
                                                             
Annualized Non-GAAP on
demand revenue per                $    40.98                $    38.45      
average on demand unit
                                                             
Annual customer value
of on demand                      $    350,174              $    285,722
revenue^(1)
                                                             
^(1) This metric represents management's estimate for the current annual
run-rate value of on demand customer relationships. This metric is calculated
by multiplying ending on demand units times annualized Non-GAAP on demand
revenue per average on demand unit for the periods presented.

Contact:

RealPage, Inc.
Investor Relations
Rhett Butler, 972-820-3773
rhett.butler@realpage.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement