On a non-GAAP net income basis, third quarter of 2012 net income was $4.5 million, or $0.14 per diluted share, compared to non-GAAP net income of $4.2 million, or $0.14 per diluted share, for the third quarter of 2011. Non-GAAP net income for the third quarter of 2012 excludes expenses related to stock-based compensation, amortization of acquired intangibles, contingent consideration expense and the related tax impact of these items. For the third quarter of 2011, non-GAAP net income also excludes expenses related to accretion of redemption premium and gains from revaluation of warrants.
Non-GAAP adjusted EBITDA was $10.6 million for the third quarter of 2012, compared to non-GAAP adjusted EBITDA of $8.0 million for the third quarter of 2011.
The reconciliation of the non-GAAP measures to the comparable GAAP measures for the third quarter of 2012 and 2011 is detailed in the tables provided in this press release.
As of September 30, 2012, WageWorks had cash and cash equivalents totaling $238.9 million. This compares to cash and cash equivalents totaling $261.3 million as of June 30, 2012. The decline in cash and cash equivalents was primarily due to the timing of the return of prefunds which happens in the third quarter.The Company's Conference Call Information WageWorks will host a conference call today, November 6, 2012, at 5:00 p.m. ET to discuss the Company’s third quarter 2012 financial results and business outlook. The live webcast of the conference call can be accessed under “Investor Relations” section of the Company’s website at www.wageworks.com. Those wishing to participate in the live call should dial 800-320-2978 (toll-free) or 617-614-4923, and enter pass code 73861984. Following the call, an archived webcast will be available in the “Investor Relations” section of the Company’s website at www.wageworks.com. A replay will be available at 888-286-8010 (toll-free) or (617) 801-6888 using the pass code 31247500. Non-GAAP Financial Information To supplement the Company’s financial statements presented on a GAAP basis, the Company provides non-GAAP financial measure of net income, operating income, adjusted EBITDA and diluted earnings per share. By providing information about both the overall GAAP financial performance and the non-GAAP measures, that focus on what management believes to be its ongoing business operations, the Company believes that the additional information enhances investors’ overall understanding of the Company’s business. The Company’s management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes the impact of accretion of redemption premium expense, stock-based compensation, amortization of acquired intangibles, gains or losses from revaluation of warrants, contingent consideration expense and the related tax impact of all of these items on the provision for income taxes, and the non-GAAP measures that exclude such information in order to assess the performance of the Company’s business for planning and forecasting in subsequent periods. The Company’s management does not itself, nor does it suggest that investors should consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever the Company uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above. Investors are also encouraged to review the Company’s GAAP financial statements as reported in its SEC filings.
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