Glowpoint Announces Second Quarter 2013 Results

MURRAY HILL, N.J., Aug. 8, 2013 /PRNewswire/ -- Glowpoint, Inc. (NYSE MKT: GLOW), a leading global provider of video collaboration, network and support services, today announced financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Financial Highlights:

• Revenue increased 28% year over year to $8.7 million in the second quarter of 2013 from $6.8 million in the second quarter of 2012.  This increase is attributable to the second quarter 2013 revenue contribution from the October 2012 acquisition of Affinity VideoNet.
• Revenue increased 3% sequentially to $8.7 million in the second quarter of 2013 from $8.5 million in the first quarter of 2013.
• Income from operations was $269,000 in the second quarter of 2013 compared with a loss from operations of $1.6 million for the first quarter of 2013.
• Adjusted EBITDA (as defined and reconciled to GAAP below) was $1.2 million in the second quarter of 2013, compared with $850,000 for the same period last year and $837,000 for the first quarter of 2013.   
• Net cash provided by operating activities was $1.1 million for the second quarter of 2013, compared with $264,000 for the first quarter of 2013.  The company paid down $280,000 on the line of credit during the second quarter.
• The company ended the second quarter with $2.8 million of cash compared with $2.2 million at the end of the first quarter of 2013.

"We generated Adjusted EBITDA of $1.2 million and operating income of $0.3 million for the second quarter, representing significant improvement from the first quarter of 2013," stated David Clark, CFO of Glowpoint. "We generated $1.1 million of cash flow from operations and paid down $0.3 million on our revolver during the second quarter, and ended the quarter with positive working capital and $2.8 million in cash."

"While in the midst of strategically and operationally transitioning the business to better address customer demand in the rapidly evolving video market, we are pleased to report modest sequential revenue growth coupled with much-improved EBITDA and cash flow performance," said Peter Holst, CEO and President of Glowpoint. "As a result of improved product focus and discipline, we are beginning to realize significant operating efficiencies in our service model.  We expect revenue for the second half of 2013 to remain fairly consistent with the first half and expect to make gradual gains in operating leverage through the remainder of 2013 and into 2014."   

The results of Glowpoint's operations and financial condition for the three and six months ended June 30, 2013 and 2012 are more fully discussed in the company's Form 10-Q for the quarter ended June 30, 2013, filed with the Securities and Exchange Commission on August 8, 2013.  Investors are encouraged to carefully review the Form 10-Q for the quarter ended June 30, 2013 for a complete analysis of Glowpoint's results from operations and financial condition.

Teleconference

Glowpoint will host a conference call at 4:30 p.m. Eastern Daylight Time (EDT) today to discuss the financial results for the second quarter of 2013, along with updates on the business. To view the webcast, please visit: https://glowpoint.webcasts.com/. To participate in the teleconference, callers may dial the toll free number [phone] (U.S. callers only) or [phone] (from outside the U.S.). For those unable to participate in the live call, a recording of the call will be archived at www.glowpoint.com/investor-relations.

Supporting Link:

• Glowpoint Investor Information

About Glowpoint

Glowpoint, Inc. (NYSE MKT: GLOW) provides video collaboration, network, and support services to large enterprises and mid-sized companies to support their unified communications (UC) strategies and business goals. More than 1000 organizations in 96 countries rely on our unmatched experience, business-class support and cloud-based services to collaborate with colleagues, business partners, and customers more effectively. To learn more please visit www.glowpoint.com.

Non-GAAP Financial Information

Adjusted EBITDA is defined as net income (loss) before depreciation, amortization, interest expense, interest income, taxes, stock-based compensation, asset impairment charges, acquisition costs and severance. Adjusted EBITDA is not intended to replace operating income, net income, cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles. Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of the company. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Additionally, Adjusted EBITDA as defined here does not have the same meaning as EBITDA as defined in our Securities and Exchange Commission filings prior to this date. A reconciliation of Adjusted EBITDA to net income (loss) is shown below.

Forward looking and cautionary statements

The information in this release may contain statements that are or may be deemed to be forward-looking statements and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. These factors, risks, and uncertainties include market acceptance and availability of new video communications services; the non-exclusive and terminable-at-will nature of sales agreements; rapid technological change affecting demand for our services; competition from other video communication service providers; and the availability of sufficient financial resources to enable us to expand our operations, as well as other risks detailed from time to time in our filings with the Securities and Exchange Commission. We make no representation or warranty that the information contained herein is complete and accurate; we have no duty to correct or update any information.

INVESTOR CONTACT:

Investor Relations

Glowpoint, Inc.

[phone]

[e-mail]

www.glowpoint.com

 

GLOWPOINT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
	June 30,		December 31,
	2013		2012
ASSETS
Current assets:
Cash	$     2,804		$      2,218
Accounts receivable, net (including related party amounts of $24 and $32, respectively)	3,189		4,047
Prepaid expenses and other current assets	745		897
Total current assets	6,738		7,162
Property and equipment, net	3,159		4,256
Goodwill	9,695		9,900
Intangibles, net	6,627		7,256
Other assets	605		742
Total assets	$   26,824		$    29,316
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$     1,317		$      1,397
Current portion of capital lease	259		240
Accounts payable (including related party amounts of $24 and $13, respectively)	2,048		2,384
Accrued expenses (including related party amounts of $6 and $15, respectively)	1,435		1,672
Accrued dividends	210		-
Accrued sales taxes and regulatory fees	499		398
Customer deposits	195		205
Deferred revenue	124		155
Total current liabilities	6,087		6,451
Noncurrent liabilities:
Capital lease, less current portion	129		231
Long term debt, net of current portion	9,113		9,631
Total noncurrent liabilities	9,242		9,862
Total liabilities	15,329		16,313
Commitments and contingencies
Stockholders' equity:
Preferred stock Series B-1, non-convertible; $.0001 par value	$   10,000		$    10,000
Preferred stock Series A-2, convertible; $.0001 par value	167		167
Common stock, $.0001 par value	3		3
Additional paid-in capital	167,108		166,481
Accumulated deficit	(165,783)		(163,648)
Total stockholders' equity	11,495		13,003
Total liabilities and stockholders' equity	$   26,824		$    29,316

 

GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)
		Six Months Ended				Three Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
Total revenue		17,240		13,546		8,736		6,800
Network and infrastructure		4,108		4,221		2,106		2,145
Global managed services		6,143		3,461		2,953		1,765
Sales and marketing		2,066		1,864		997		878
General and administrative		4,798		2,652		1,711		1,302
Depreciation and amortization		1,458		865		700		425
Total operating expenses		18,573		13,063		8,467		6,515
Income (loss) from operations		(1,333)		483		269		285
Interest and other expense, net		802		58		419		32
Income (loss) before provision for income taxes		$ (2,135)		$    425		$  (150)		$        253
Provision for income taxes		-		5		-		5
Net income (loss)		$ (2,135)		$    420		$  (150)		$        248
Preferred stock dividends		210		-		105		-
Net income (loss) attributable to common stockholders		$ (2,345)		$    420		$  (255)		$        248
Net income (loss) per share:
Basic net income (loss) per share		$   (0.08)		$   0.02		$ (0.01)		$       0.01
Diluted net income (loss) per share		$   (0.08)		$   0.02		$ (0.01)		$       0.01
Weighted average number of common shares:
Basic		27,786		24,440		27,868		24,525
Diluted		27,786		25,742		27,868		25,874
ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation
Net income (loss)		$ (2,135)		$    420		$  (150)		$        248
Provision for income taxes		-		5		-		5
Interest and other expense, net		802		58		419		32
Depreciation and amortization		1,458		865		700		425
Stock-based compensation		690		219		83		140
Severance		407		-		8		-
Acquisition costs		238		-		(1)		-
Asset impairment		539		-		104		-
Adjusted EBITDA		$   1,999		$ 1,567		$ 1,163		$        850

 

GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
								Six Months Ended
								June 30,
								2013		2012
Cash flows from Operating Activities:
	Net income (loss)							$ (2,135)		$    420
	Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
			Depreciation and amortization					1,458		865
			Amortization of deferred financing costs					121		29
			Amortization of debt discount					69		-
			Bad debt expense					119		52
			Loss on disposal of equipment					539		10
			Stock-based compensation					690		219
			Increase (decrease) attributable to changes in assets and liabilities:
					Accounts receivable			739		(573)
					Other current assets			153		(52)
					Other assets			15		(38)
					Accounts payable			(336)		(13)
					Customer deposits			(9)		28
					Accrued expenses, sales taxes and regulatory fees			(38)		(539)
					Deferred revenue			(31)		(61)
						Net cash provided by (used in) continuing operating activities		1,354		347
						Net cash (used in) provided by discontinuing operating activities		-		(50)
						Net cash provided by operating activities		1,354		297
Cash flows from Investing Activities:
	Proceeds from sale of equipment							2		11
	Purchases of property and equipment							(235)		(353)
						Net cash used in investing activities		(233)		(342)
Cash flows from Financing Activities:
	Proceeds from exercise of stock options							-		7
	Principal payments for capital lease							(122)		(91)
	Payments related to debt issuance							(133)		-
	Proceeds from revolving loan facility							(280)		-
						Net cash used in financing activities		(535)		(84)
Increase (decrease) in cash								586		(129)
Cash at beginning of period								2,218		1,818
Cash at end of period								$  2,804		$ 1,689

 

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SOURCE Glowpoint

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