RADNOR, Pa., Nov. 09, 2017 (GLOBE NEWSWIRE) -- Actua Corporation (Nasdaq:ACTA) (“Actua”) today reported its results for the third quarter ended
September 30, 2017. Based on the execution of definitive agreements for the sale of Actua’s stakes in Bolt, FolioDynamix and
VelocityEHS (as previously announced on September 25, 2017), along with other relevant factors, it has been determined that the
relevant criteria for “held-for-sale” classification and “discontinued operations” presentation were met on September 30,
2017. Accordingly, the financial results and financial positions of Bolt, FolioDynamix and VelocityEHS are presented as
discontinued operations in Actua’s consolidated financial statements for all periods presented.
Actua’s consolidated financial statements are contained in this release and are also available in Actua’s
Quarterly Report on Form 10-Q, which was filed with the SEC on November 9, 2017. As a reminder, Actua will not be hosting a
third quarter earnings conference call in light of the pending sale transactions described above.
Please see Actua’s website at www.actua.com for more information on Actua, its businesses and its third quarter 2017
results.
About Actua
Actua Corporation (Nasdaq:ACTA), the multi-vertical cloud company, brings the power of the cloud to vertical
markets and processes. Actua is pioneering the second wave of the SaaS revolution - the vertical wave - by growing cloud
businesses that are transforming their markets. With over 700 employees delivering unrivaled domain knowledge, agility and
responsiveness to our customers, Actua’s rapidly growing vertical cloud businesses are positioned to lead this wave. For the
latest information about Actua and its brands, please go to www.actua.com.
Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain
risks and uncertainties, including, but not limited to, risks associated with our ability to compete successfully in
highly-competitive, rapidly-developing markets, the valuation of public and private cloud-based businesses by analysts, investors
and other market participants, our ability to deploy capital effectively and on acceptable terms, the effect of economic conditions
generally, capital spending by our customers, our ability to retain existing customer relationships and revenue streams and secure
new ones, developments in the markets in which we operate and our ability to respond to those changes in a timely and effective
manner, the availability, performance and security of our cloud-based technology, particularly in light of increased cybersecurity
risks and concerns, our ability to retain key personnel, our ability to successfully integrate any acquired business, the impact of
any potential acquisitions, dispositions, share repurchases or other strategic transactions (including in connection with the
negotiation, execution and consummation thereof), our ability to have continued access to capital and to manage capital resources
effectively, our ability to satisfy the closing conditions for the sales of our businesses described above, our ability to monetize
our remaining minority investments for sufficient value and other risks and uncertainties detailed in Actua's filings with the
SEC. These and other factors may cause actual results to differ materially from those projected.
| |
| Actua Corporation |
| Consolidated Statements of
Operations |
| (In thousands, except per share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
| |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
| |
Cost of revenue |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
Sales and marketing |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
General and administrative |
|
6,186 |
|
|
5,313 |
|
|
19,607 |
|
|
18,280 |
|
| |
Research and development |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
Amortization of intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
Impairment related and other |
|
— |
|
|
(3 |
) |
|
— |
|
|
42 |
|
| |
Total operating expenses |
|
6,186 |
|
|
5,310 |
|
|
19,607 |
|
|
18,322 |
|
| |
Operating income (loss) |
|
(6,186 |
) |
|
(5,310 |
) |
|
(19,607 |
) |
|
(18,322 |
) |
| |
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
| |
Other income (loss), net |
|
192 |
|
|
2,842 |
|
|
3,846 |
|
|
2,888 |
|
| |
Interest income |
|
107 |
|
|
24 |
|
|
381 |
|
|
92 |
|
| |
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes and noncontrolling
interests |
(5,887 |
) |
|
(2,444 |
) |
|
(15,380 |
) |
|
(15,342 |
) |
| |
|
|
|
|
|
|
|
|
|
| Income tax benefit (expense) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations |
(5,887 |
) |
|
(2,444 |
) |
|
(15,380 |
) |
|
(15,342 |
) |
| Income (loss) from discontinued operations, net of tax |
(1,018 |
) |
|
(8,649 |
) |
|
(9,003 |
) |
|
(24,692 |
) |
| Net income (loss) |
|
(6,905 |
) |
|
(11,093 |
) |
|
(24,383 |
) |
|
(40,034 |
) |
| |
Less: Net income (loss) attributable to the noncontrolling
interests |
(424 |
) |
|
(1,019 |
) |
|
(1,369 |
) |
|
(2,888 |
) |
| Net income (loss) attributable to Actua |
|
$ |
(6,481 |
) |
|
$ |
(10,074 |
) |
|
$ |
(23,014 |
) |
|
$ |
(37,146 |
) |
| |
|
|
|
|
|
|
|
|
|
| Amounts attributable to Actua common
shareholders: |
|
|
|
|
|
|
|
| Net income (loss) from continuing operations |
$ |
(5,887 |
) |
|
$ |
(2,444 |
) |
|
$ |
(15,380 |
) |
|
$ |
(15,342 |
) |
| Net income (loss) from discontinued operations |
(594 |
) |
|
(7,630 |
) |
|
(7,634 |
) |
|
(21,804 |
) |
| Net income (loss) attributable to Actua common shareholders |
$ |
(6,481 |
) |
|
$ |
(10,074 |
) |
|
$ |
(23,014 |
) |
|
$ |
(37,146 |
) |
| |
|
|
|
|
|
|
|
|
|
| Basic and diluted net income (loss) per
share: |
|
|
|
|
|
|
|
|
| Income (loss) from continuing operations attributable to
Actua common shareholders |
|
$ |
(0.19 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.42 |
) |
| Income (loss) from discontinued operations attributable
to Actua common shareholders |
|
(0.02 |
) |
|
(0.21 |
) |
|
(0.24 |
) |
|
(0.59 |
) |
| Income (loss) attributable to Actua common
shareholders |
|
$ |
(0.21 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.73 |
) |
|
$ |
(1.01 |
) |
| |
|
|
|
|
|
|
|
|
|
| Shares used in computation of basic and diluted net
income (loss) per common share attributable to Actua common shareholders |
|
30,641 |
|
|
36,776 |
|
|
31,335 |
|
|
36,943 |
|
| |
|
|
|
|
|
|
|
|
|
| |
| Actua Corporation |
| Condensed Consolidated Balance
Sheets |
| (In thousands) |
| (Unaudited) |
| |
|
|
|
|
|
| |
|
|
September 30, |
|
December 31, |
| |
|
|
2017 |
|
2016 |
| |
|
|
|
|
|
| ASSETS |
|
|
|
| |
Cash and cash equivalents |
$ |
33,604 |
|
|
$ |
76,530 |
|
| |
Prepaid expenses and other current assets |
546 |
|
|
476 |
|
| |
Assets held for sale |
349,200 |
|
|
182,649
|
|
| |
|
Total current assets |
383,350 |
|
|
259,655
|
|
| |
Fixed assets, net |
59 |
|
|
93 |
|
| |
Intangible assets |
700 |
|
|
700 |
|
| |
Cost method businesses |
17,473 |
|
|
17,250 |
|
| |
Other assets |
147 |
|
|
147 |
|
| |
Non-current assets held for sale |
- |
|
|
175,873 |
|
| |
|
Total Assets |
$ |
401,729 |
|
|
$ |
453,718 |
|
| |
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
| |
Accounts payable |
$ |
298 |
|
|
$ |
1,108 |
|
| |
Accrued expenses |
1,860 |
|
|
1,734 |
|
| |
Accrued compensation and benefits |
636 |
|
|
710 |
|
| |
Liabilities held for sale |
73,638 |
|
|
70,227
|
|
| |
|
Total current liabilities |
76,432 |
|
|
73,779
|
|
| |
Non-current liabilities held for sale |
- |
|
|
8,597 |
|
| |
|
Total Liabilities |
76,432 |
|
|
82,376 |
|
| |
Redeemable noncontrolling interests |
5,961 |
|
|
5,858 |
|
| |
Total Equity |
319,336 |
|
|
365,484 |
|
| |
|
Total Liabilities, Redeemable noncontrolling interests and Equity |
$ |
401,729 |
|
|
$ |
453,718 |
|
| |
|
|
|
|
|
| Actua Corporation |
| Consolidated Statements of Cash
Flows |
| (In thousands) |
| (Unaudited) |
| |
Nine Months Ended September 30, |
| |
2017 |
|
2016 |
| OPERATING ACTIVITIES - Continuing Operations |
|
|
|
| Net income (loss) |
$ |
(24,383 |
) |
|
$ |
(40,034 |
) |
| (Income) loss from discontinued operations, net of tax |
9,003 |
|
|
24,692 |
|
| Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
| Depreciation and amortization |
83 |
|
|
100 |
|
| Equity-based compensation |
9,495 |
|
|
9,824 |
|
| Impairment related and other |
— |
|
|
(42 |
) |
| Other (income) loss, net |
(3,846 |
) |
|
(2,888 |
) |
| Changes in operating assets and liabilities |
|
|
|
| Prepaid expenses and other assets |
(68 |
) |
|
1,147 |
|
| Accounts payable |
(809 |
) |
|
(155 |
) |
| Accrued expenses |
111 |
|
|
(651 |
) |
| Accrued compensation and benefits |
(74 |
) |
|
(796 |
) |
| Other liabilities |
— |
|
|
(32 |
) |
| Cash flows provided by (used in) operating activities |
(10,488 |
) |
|
(8,835 |
) |
| INVESTING ACTIVITIES - Continuing Operations |
|
|
|
| Capital expenditures |
(52 |
) |
|
(11 |
) |
| Proceeds from sales/distribution of ownership interests |
3,846 |
|
|
4,454 |
|
| Ownership acquisition, net of cash acquired |
(223 |
) |
|
(700 |
) |
| Cash flows provided by (used in) investing activities |
3,571 |
|
|
3,743 |
|
| FINANCING ACTIVITIES - Continuing Operations |
|
|
|
| Purchase of treasury stock |
(30,434 |
) |
|
(9,533 |
) |
| Tax withholdings related to equity-based awards |
(2,896 |
) |
|
(1,570 |
) |
| Financing activities with discontinued operations, net |
(2,564 |
) |
|
(10,637 |
) |
| Cash flows provided by (used in) financing activities |
(35,894 |
) |
|
(21,740 |
) |
| Effect of exchange rate on cash and cash equivalents |
(115 |
) |
|
(41 |
) |
| Net increase (decrease) in cash and cash equivalents from continuing
operations |
(42,926 |
) |
|
(26,873 |
) |
| Discontinued Operations |
|
|
|
| Cash flows provided by (used in) operating activities |
5,582 |
|
|
(4,710 |
) |
| Cash flows provided by (used in) investing activities |
(1,327 |
) |
|
(6,766 |
) |
| Cash flows provided by (used in) financing activities |
2,893 |
|
|
4,010 |
|
| Net increase (decrease) in cash and cash equivalents from discontinued
operations |
7,148 |
|
|
(7,466 |
) |
| Cash and cash equivalents at beginning of period - discontinued operations |
20,834 |
|
|
21,961 |
|
| Less: cash and cash equivalents at end of period - discontinued operations |
27,982 |
|
|
14,495 |
|
| Cash and cash equivalents at beginning of period |
76,530 |
|
|
54,352 |
|
| Cash and cash equivalents at end of period |
$ |
33,604 |
|
|
$ |
27,479 |
|
| |
|
|
|
|
|
|
|
Investor inquiries:
Karen Greene
Actua
Investor Relations
610.727.6900
IR@actua.com
