Exhibit 1: |
Press Release: Perion reports Q3 2016 Results, dated November 8, 2016.
|
|
Perion Network Ltd.
By: /s/ Limor Gershoni Levy
Name: Limor Gershoni Levy
Title: Corporate Secretary &
General Counsel
|
Exhibit 1: |
Press Release: Perion reports Q3 2016 Results, dated November 8, 2016.
|
Three months ended
|
||||||||
September 30,
|
||||||||
2015
|
2016
|
|||||||
Revenues
|
$
|
52,637
|
$
|
74,460
|
||||
GAAP Net Income (loss) from continuing operation
|
$
|
(69,034
|
)
|
$
|
2,884
|
|||
Non-GAAP Net Income
|
$
|
8,310
|
$
|
7,670
|
||||
Adjusted EBITDA
|
$
|
11,450
|
$
|
12,362
|
||||
GAAP Diluted Earnings (Loss) Per Share from continuing operation
|
$
|
(0.97
|
)
|
$
|
0.04
|
|||
Non-GAAP Diluted Earnings Per Share
|
$
|
0.12
|
$
|
0.10
|
· |
Revenue is expected to be in the range of $78 - $82 million.
|
· |
Adjusted EBITDA is expected to be in the range of $12.5 - $13.5 million.
|
· |
Conference ID: 2099863
|
· |
Dial-in number from within the United States: 1-888-684-1264
|
· |
Dial-in number from Israel: 1-809-258-350
|
· |
Dial-in number (other international): 1-913-312-0850
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· |
Playback available until November 15, 2016 by calling 1-877-870-5176 (United States) or 1-858-384-5517 (international). Please use PIN code 4675013 for the replay.
|
· |
Link to the live webcast accessible at http://www.perion.com/ir-events
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PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
In thousands (except share and per share data)
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2015
|
2016
|
2015
|
2016
|
|||||||||||||
Revenues:
|
||||||||||||||||
Search
|
$
|
45,498
|
$
|
38,397
|
$
|
129,210
|
$
|
120,590
|
||||||||
Advertising and other
|
7,139
|
36,063
|
24,133
|
107,662
|
||||||||||||
Total Revenues
|
52,637
|
74,460
|
153,343
|
228,252
|
||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of revenues
|
1,585
|
3,747
|
4,506
|
11,938
|
||||||||||||
Customer acquisition and media buy costs
|
25,304
|
32,990
|
60,395
|
102,065
|
||||||||||||
Research and development
|
5,315
|
5,632
|
15,925
|
20,135
|
||||||||||||
Selling and marketing
|
4,767
|
13,408
|
14,019
|
43,152
|
||||||||||||
General and administrative
|
6,613
|
7,778
|
17,317
|
24,574
|
||||||||||||
Depreciation and amortization
|
1,822
|
6,156
|
6,254
|
19,803
|
||||||||||||
Impairment, net of change in fair value of contingent consideration
|
74,119
|
-
|
71,722
|
-
|
||||||||||||
Restructuring costs
|
-
|
-
|
-
|
728
|
||||||||||||
Total Costs and Expenses
|
119,525
|
69,711
|
190,138
|
222,395
|
||||||||||||
Income (Loss) from Operations
|
(66,888
|
)
|
4,749
|
(36,795
|
)
|
5,857
|
||||||||||
Financial expense, net
|
1,084
|
950
|
2,142
|
6,406
|
||||||||||||
Income (Loss) before Taxes on Income
|
(67,972
|
)
|
3,799
|
(38,937
|
)
|
(549
|
)
|
|||||||||
Taxes on income
|
1,062
|
915
|
7,584
|
(3,078
|
)
|
|||||||||||
Net Income (Loss) from Continuing Operations
|
(69,034
|
)
|
2,884
|
(46,521
|
)
|
2,529
|
||||||||||
Net income (Loss) from discontinued operations
|
(1,812
|
)
|
2,021
|
(5,371
|
)
|
(2,647
|
)
|
|||||||||
Net Income (Loss)
|
$
|
(70,846
|
)
|
$
|
4,905
|
$
|
(51,892
|
)
|
$
|
(118
|
)
|
|||||
Net Earnings (Loss) per Share - Basic:
|
||||||||||||||||
Continuing operations
|
$
|
(0.97
|
)
|
$
|
0.04
|
$
|
(0.66
|
)
|
$
|
0.03
|
||||||
Discontinued operations
|
$
|
(0.03
|
)
|
$
|
0.03
|
$
|
(0.08
|
)
|
$
|
(0.03
|
)
|
|||||
Net Earnings (Loss) per Share - Diluted:
|
||||||||||||||||
Continuing operations
|
$
|
(0.97
|
)
|
$
|
0.04
|
$
|
(0.66
|
)
|
$
|
0.03
|
||||||
Discontinued operations
|
$
|
(0.03
|
)
|
$
|
0.03
|
$
|
(0.08
|
)
|
$
|
(0.03
|
)
|
|||||
Weighted average number of shares continuing and discontinued
|
||||||||||||||||
Basic
|
71,242,091
|
76,573,397
|
70,831,856
|
76,357,173
|
||||||||||||
Diluted
|
71,242,091
|
77,739,340
|
70,831,856
|
76,381,693
|
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
In thousands
|
December 31,
|
September 30,
|
|||||||
2015
|
2016
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
17,519
|
$
|
23,578
|
||||
Short-term bank deposit
|
42,442
|
7,836
|
||||||
Accounts receivable, net
|
66,662
|
50,327
|
||||||
Prepaid expenses and other current assets
|
17,396
|
18,483
|
||||||
Total Current Assets
|
144,019
|
100,224
|
||||||
Property and equipment, net
|
12,714
|
13,936
|
||||||
Goodwill and intangible assets, net
|
269,765
|
240,260
|
||||||
Deferred taxes
|
12,344
|
4,223
|
||||||
Other assets
|
3,456
|
1,483
|
||||||
Total Assets
|
$
|
442,298
|
$
|
360,126
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
40,388
|
$
|
28,080
|
||||
Accrued expenses and other liabilities
|
22,857
|
13,894
|
||||||
Short-term loans and current maturities of long-term and convertible debt
|
23,756
|
23,978
|
||||||
Deferred revenues
|
7,731
|
5,218
|
||||||
Payment obligation related to acquisitions
|
11,893
|
9,106
|
||||||
Total Current Liabilities
|
106,625
|
80,276
|
||||||
Long-Term Liabilities:
|
||||||||
Long-term debt, net of current maturities
|
46,920
|
40,893
|
||||||
Convertible debt, net of current maturities
|
28,371
|
22,061
|
||||||
Payment obligation related to acquisition
|
37,231
|
-
|
||||||
Deferred taxes
|
19,456
|
6,029
|
||||||
Other long-term liabilities
|
3,858
|
4,642
|
||||||
Total Liabilities
|
242,461
|
153,901
|
||||||
Shareholders' equity:
|
||||||||
Ordinary shares
|
206
|
209
|
||||||
Additional paid-in capital
|
227,258
|
232,961
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive income (loss)
|
(794
|
)
|
6
|
|||||
Accumulated deficit
|
(25,831
|
)
|
(25,949
|
)
|
||||
Total Shareholders' Equity
|
199,837
|
206,225
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
442,298
|
$
|
360,126
|
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
In thousands
|
Nine months ended September 30,
|
||||||||
2015
|
2016
|
|||||||
Operating activities:
|
||||||||
Net loss
|
$
|
(51,892
|
)
|
$
|
(118
|
)
|
||
Loss from discontinued operations, net
|
(5,371
|
)
|
(2,647
|
)
|
||||
Net income (loss) from continuing operations
|
(46,521
|
)
|
2,529
|
|||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
6,254
|
19,803
|
||||||
Impairment of goodwill and intangible assets
|
78,286
|
-
|
||||||
Stock based compensation expense
|
4,923
|
4,985
|
||||||
Issuance of ordinary shares related to employees' retention
|
63
|
-
|
||||||
Foreign currency translation
|
-
|
928
|
||||||
Accrued interest, net
|
(451
|
)
|
306
|
|||||
Deferred taxes, net
|
186
|
(5,342
|
)
|
|||||
Change in payment obligation related to acquisition
|
(5,581
|
)
|
1,271
|
|||||
Fair value revaluation - convertible debt
|
544
|
1,588
|
||||||
Net changes in operating assets and liabilities
|
(8,316
|
)
|
(4,398
|
)
|
||||
Net cash provided by continuing operating activities
|
29,387
|
21,670
|
||||||
Net cash used in discontinued activities
|
(4,635
|
)
|
(3,303
|
)
|
||||
Net cash provided by operating activities
|
$
|
24,752
|
$
|
18,367
|
||||
Investing activities:
|
||||||||
Purchases of property and equipment
|
$
|
(1,519
|
)
|
$
|
(1,011
|
)
|
||
Capitalization of development costs
|
(2,243
|
)
|
(3,724
|
)
|
||||
Change in restricted cash, net
|
50
|
(132
|
)
|
|||||
Investments in short-term deposits, net
|
(40,919
|
)
|
34,606
|
|||||
Cash paid for acquisition, net of cash acquired
|
(4,533
|
)
|
-
|
|||||
Net cash provided by (used in) investing activities
|
$
|
(49,164
|
)
|
$
|
29,739
|
|||
Financing activities:
|
||||||||
Exercise of stock options and restricted share units
|
15
|
1
|
||||||
Payment made in connection with acquisition
|
(1,534
|
)
|
(28,052
|
)
|
||||
Proceeds from short-term loans
|
-
|
26,000
|
||||||
Repayment of convertible debt
|
-
|
(7,620
|
)
|
|||||
Repayment of short-term loans
|
-
|
(26,000
|
)
|
|||||
Repayment of long-term loans
|
(1,725
|
)
|
(6,390
|
)
|
||||
Net cash used in financing activities
|
$
|
(3,244
|
)
|
$
|
(42,061
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(11
|
)
|
14
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(23,032
|
)
|
9,362
|
|||||
Net cash used in discontinued activities
|
(4,670
|
)
|
(3,303
|
)
|
||||
Cash and cash equivalents at beginning of period
|
101,183
|
17,519
|
||||||
Cash and cash equivalents at end of period
|
$
|
73,481
|
$
|
23,578
|
||||
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
In thousands (except share and per share data)
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2015
|
2016
|
2015
|
2016
|
|||||||||||||
GAAP net income (loss) from continuing operations
|
$
|
(69,034
|
)
|
$
|
2,884
|
$
|
(46,521
|
)
|
$
|
2,529
|
||||||
Acquisition related expenses
|
507
|
-
|
1,209
|
179
|
||||||||||||
Valuation adjustment on acquired deferred revenues
|
-
|
-
|
-
|
359
|
||||||||||||
Share based compensation
|
1,890
|
1,457
|
4,923
|
4,985
|
||||||||||||
Amortization of acquired intangible assets
|
1,208
|
5,178
|
4,334
|
16,801
|
||||||||||||
Restructuring costs
|
-
|
-
|
-
|
728
|
||||||||||||
Impairment of acquired intangible assets
|
74,119
|
-
|
78,286
|
-
|
||||||||||||
Change in fair value of contingent consideration related to acquisition
|
-
|
-
|
(6,564
|
)
|
-
|
|||||||||||
Fair value revaluation of convertible debt and related derivative
|
194
|
(422
|
)
|
302
|
134
|
|||||||||||
Accretion of payment obligation related to acquisition
|
-
|
63
|
357
|
1,270
|
||||||||||||
Taxes related to amortization of acquired intangible assets
|
(574
|
)
|
(1,490
|
)
|
(842
|
)
|
(5,810
|
)
|
||||||||
Non-GAAP net income from continuing operations
|
$
|
8,310
|
$
|
7,670
|
$
|
35,484
|
$
|
21,175
|
||||||||
Non-GAAP net income from continuing operations
|
$
|
8,310
|
$
|
7,670
|
$
|
35,484
|
$
|
21,175
|
||||||||
Taxes on income
|
1,636
|
2,405
|
8,426
|
2,732
|
||||||||||||
Financial expense, net
|
890
|
1,309
|
1,483
|
5,002
|
||||||||||||
Depreciation
|
614
|
978
|
1,920
|
3,002
|
||||||||||||
Adjusted EBITDA
|
$
|
11,450
|
$
|
12,362
|
$
|
47,313
|
$
|
31,911
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
0.12
|
$
|
0.10
|
$
|
0.47
|
$
|
0.26
|
||||||||
Shares used in computing non-GAAP diluted earnings per share
|
71,490,533
|
78,877,949
|
70,831,856
|
79,798,457
|