wageworks inc (WAGE) Key Developments
WageWorks, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revises Earnings Guidance for the Full Year 2015; Provides Effective Tax Rate Guidance for the Second Half 2015 and Earnings Guidance for the Third Quarter 2015
Jul 30 15
WageWorks, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported total revenue of $82.8 million, compared to $58.8 million for the second quarter of 2014, an increase of 41%. GAAP operating income was $6.8 million compared to GAAP operating income of $7.9 million for the second quarter of 2014. GAAP operating income includes aggregate pre-tax charges of $2.1 million related to integration initiatives that will streamline its operations and deliver better and more efficient service to its customers. On a non-GAAP basis, operating income which excludes the severance charges was $17.5 million, compared to non-GAAP operating income of $14.5 million for the second quarter of 2014. GAAP net income was $3.5 million, or $0.10 per diluted share compared to GAAP net income of $4.6 million, or $0.13 per diluted share, for the second quarter of 2014. On a non-GAAP net income basis, net income was $10.3 million, or $0.28 per diluted share, compared to non-GAAP net income of $8.6 million, or $0.24 per diluted share, for the second quarter of 2014. Non-GAAP net income for the second quarter of 2014 and 2015 excludes expenses related to stock-based compensation, amortization of acquired intangibles, contingent consideration expense, and significant severance costs related to integration initiatives and the related tax impact of these items. Non-GAAP adjusted EBITDA was $22.2 million, a 27% increase compared to non-GAAP adjusted EBITDA of $17.5 million for the second quarter of 2014. Income before income taxes was $6.41 million compared to $7.64 million a year ago.
For the six months, the company total revenue of $168.05 million compared to $121.38 million a year ago. Income from operations was $16.44 million compared to $18.79 million a year ago. Income before income taxes was $15.57 million compared to $18.30 million a year ago. Net income was $9.16 million or $0.25 per diluted share compared to $11.03 million or $0.30 per diluted share a year ago. Net cash provided by operating activities was $87.96 million compared to $9.72 million a year ago. Purchases of property and equipment was $11.26 million compared to $7.07 million a year ago. Non-GAAP income from operations was $35.4 million compared to $29.7 million a year ago. Non-GAAP net income was $20.8 million or $0.57 per diluted share compared to $17.5 million or $0.48 per diluted share a year ago. Adjusted EBITDA was $44.3 million compared to $35.7 million a year ago.
The company expects effective tax rate to return to more normalized level from the second half of this year 2015.
For the full year 2015, the company expects total revenue to be in the range of $332 million to $335 million. Organic growth rate for 2015 is still expected to be the range of 10% to 12%. GAAP net income per diluted share is expected to be the range of $0.52 to $0.55. Non-GAAP net income per diluted share is expected to be in the range of $1.15 to $1.18. GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 40% and weighted shares outstanding of approximately 36.8 million. The company's is raising guidance for non-GAAP adjusted EBITDA for the full year of 2015 and now expect it to be the range of $89.5 million to $91.5 million.
For the third quarter 2015, the company's expect total revenue to be in the range of $81.7 million to $82.7 million; GAAP net income per diluted share of $0.15 to $0.16; and non-GAAP net income per diluted share of $0.29 to $0.30. GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 40% and weighted average shares outstanding of approximately 36.8 million. Non-GAAP adjusted EBITDA for the third quarter of 2015 is expected to be in the range of $22.7 million to $23.3 million.
WageWorks Seeks Acquisitions
Jul 30 15
WageWorks, Inc. (NYSE:WAGE) is seeking acquisitions. WageWorks intends to continue to be opportunistic in pursuing acquisitions.
WageWorks, Inc. to Report Q2, 2015 Results on Jul 30, 2015
Jul 21 15
WageWorks, Inc. announced that they will report Q2, 2015 results at 5:00 PM, US Eastern Standard Time on Jul 30, 2015
WageWorks, Inc., Q2 2015 Earnings Call, Jul 30, 2015
Jul 21 15
WageWorks, Inc., Q2 2015 Earnings Call, Jul 30, 2015
WageWorks, Inc. Enters Amend and Restated Credit Agreement
Jun 8 15
On June 5, 2015, WageWorks, Inc. entered into an Amended and Restated Credit Agreement, by and among the Company, the guarantors from time to time party thereto, the lenders from time to time party thereto, and MUFG Union Bank, N.A., as administrative agent (Agent). The Credit Agreement amends and restates the Company's existing Credit Agreement, dated as of December 31, 2012, by and among the Company, MHM Resources, LLC, Benefit Concepts Inc. of Rhode Island and Agent. The Credit Agreement provides for a $150.0 million revolving credit facility, with a $15.0 million letter of credit subfacility. The Credit Agreement contains an increase option permitting the Company, subject to certain requirements, to arrange with existing lenders and/or new lenders to provide up to an aggregate of $100.0 million in additional commitments. Loan proceeds may be used for general corporate purposes, including acquisitions permitted under the Credit Agreement. The Company may prepay loans under the Credit Agreement in whole or in part at any time without premium or penalty. At June 5, 2015, the Company had outstanding revolving loans in an aggregate principal amount of $79.6 million under the Credit Agreement and undrawn letters of credit in an aggregate principal amount of approximately $3.0 million. The loans bear interest, at the Company's option, at (i) a LIBOR rate determined in accordance with the Credit Agreement, plus a margin of 1.25% to 1.75%, with such margin determined based on the Company's consolidated leverage ratio for the preceding four fiscal quarter period, or (ii) a base rate determined in accordance with the Credit Agreement. Interest is due and payable in arrears quarterly for base rate loans and at the end of an interest period for LIBOR rate loans. Principal, together with all accrued and unpaid interest, is due and payable on June 5, 2020. The Company is also obligated to pay other customary closing fees, commitment fees and letter of credit fees for a facility of this size and type. The Company's obligations under the Credit Agreement are secured by substantially all of the Company's assets. All of the Company's future material domestic subsidiaries are required to guaranty its obligations under the Credit Agreement. The guarantees by future material domestic subsidiaries are and will be secured by substantially all of the assets of such subsidiaries. The Credit Agreement requires that the Company maintain compliance with (i) a ratio of consolidated indebtedness to consolidated adjusted EBITDA for the twelve month period ending as of the end of each fiscal quarter of not greater than 3.00 to 1.00 and (ii) a ratio of consolidated adjusted EBITDA for the twelve month period ending as of the end of each fiscal quarter of not less than 1.50 to 1.00. The Credit Agreement contains customary affirmative and negative covenants, including, among others, covenants limiting the ability of the Company and its subsidiaries to grant liens, make investments, make acquisitions, incur indebtedness, make certain restricted payments, merge or consolidate, dispose of assets, and enter into transactions with affiliates, in each case subject to customary exceptions. Upon an event of default, the lenders may declare the outstanding obligations payable by the Company to be immediately due and payable and exercise other rights and remedies provided for under the credit facility. The events of default under the Credit Agreement include, among others, payment defaults, covenant defaults, inaccuracy of representations and warranties, cross-defaults to other material indebtedness, judgment defaults, a change of control default and bankruptcy and insolvency defaults. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the Credit Agreement at a per annum rate of interest equal to 2.00% above the applicable interest rate.