Ellie Mae Reports Fourth Quarter And Fiscal Year 2012 Results

Quarterly Conference Call

Ellie Mae will discuss its fourth quarter and fiscal year 2012 results today, February 14, 2013, via teleconference at 4:30 p.m. Eastern Time. To access the call, please dial 877-941-8416 or 480-629-9808 at least five minutes prior to the 4:30 p.m. Eastern Time start time. A live webcast of the call will be available on the Investor Relations section of the Company’s website at http://ir.elliemae.com. An audio replay of the call will be available through February 28, 2013 by dialing 800-406-7325 or 303-590-3030 and entering access code 4593741.

About Ellie Mae

Ellie Mae, Inc. is a leading provider of on-demand automation solutions for the mortgage industry. The Company offers an end-to-end solution, delivered using a Software-as-a-Service model that serves as the core operating system for mortgage originators and spans customer relationship management, loan origination and business management. The Company also hosts the Ellie Mae Network™ that allows Encompass users to electronically conduct business transactions with the lenders and settlement service providers they work with to process and fund loans. The Company's offerings include the Encompass ^®, Encompass360 ^® and DataTrac ^® mortgage management software systems.

Ellie Mae was founded in 1997 and is based in Pleasanton, California. To learn more about Ellie Mae, visit www.EllieMae.com or call 877.355.4362.

© 2013 Ellie Mae, Inc. Ellie Mae ^® , Encompass ^® , Encompass360 ^® , DataTrac ^® , Ellie Mae Network ™ and the Ellie Mae logo are registered trademarks or trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements under the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include discussions regarding projected revenue, net income, adjusted EBITDA and adjusted net income for the first quarter and fiscal year 2013. These statements involve known and unknown risks, uncertainties and other factors which may cause Ellie Mae’s results to be materially different than those expressed or implied in such statements. Such differences may be based on factors such as changes in strategic planning decisions by management; reallocation of internal resources; changes in the volume of residential mortgage volume in the United States; changes in anticipated rates of existing customer conversions and new customer acquisitions; the risk that the anticipated benefits, growth prospects and synergies expected from the Del Mar Datatrac acquisition may not be fully realized or may take longer to realize than expected; the possibility that economic benefits of future opportunities in an emerging industry may never materialize, including unexpected variations in market growth and demand for the acquired products and technologies; delays, disruptions, including changing relationships with partners, customers, employees or suppliers; the amount of costs incurred in connection with the supporting and integrating new customers and partners; ongoing personnel and logistical challenges of managing a larger organization; changes in other macroeconomic factors affecting the residential real estate industry and other risk factors included in documents that Ellie Mae has filed with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2011, Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and Current Reports on Form 8-K. Other unknown or unpredictable factors also could have material adverse effects on Ellie Mae’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Ellie Mae cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Ellie Mae expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Ellie Mae, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
		December 31,
			2012				2011
		(unaudited)					(1)
Assets
Current assets
Cash and cash equivalents		$	44,114			$	23,732
Short-term investments			16,243				1,933
Accounts receivable, net of allowances for doubtful accounts of $74 and $47, as of December 31, 2012 and December 31, 2011, respectively			9,753				6,819
Prepaid expenses and other current assets			2,956				1,165
Deferred tax assets			645				216
Note receivable			1,000				1,000
Total current assets			74,711				34,865
Property and equipment, net			9,494				5,539
Long-term investments			43,728				—
Other intangible assets, net			6,531				8,166
Goodwill			51,051				51,051
Deposits and other assets			100				150
Total assets		$	185,615			$	99,771
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable		$	2,039			$	2,255
Accrued and other current liabilities			5,792				4,937
Acquisition holdback, net of discount			2,948				2,948
Deferred revenue			4,896				4,548
Deferred rent			252				212
Total current liabilities			15,927				14,900
Acquisition holdback, net of current portion and discount			1,911				4,725
Long-term deferred tax liabilities			130				260
Other long-term liabilities			785				1,028
Total liabilities			18,753				20,913
Commitments and contingencies
Stockholders' equity:
Common stock, $0.0001 par value per share;140,000,000 authorized shares, 26,058,533 and 21,019,590 shares issued and outstanding as of December 31, 2012 and December 31, 2011, respectively			3				2
Additional paid-in capital			184,616				116,012
Accumulated other comprehensive loss			(65	)			—
Accumulated deficit			(17,692	)			(37,156	)
Total stockholders' equity			166,862				78,858
Total liabilities and stockholders' equity		$	185,615			$	99,771
(1) Derived from audited financial statements.

Ellie Mae, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
		Three months ended December 31,								Year ended December 31,
			2012				2011				2012				2011
		(unaudited)								(unaudited)					(1)
Revenues		$	29,914			$	18,754			$	101,845			$	55,494
Cost of revenues			6,525				4,864				23,114				15,784
Gross profit			23,389				13,890				78,731				39,710
Operating expenses:
Sales and marketing			5,308				4,131				17,887				12,126
Research and development			4,865				4,113				18,053				12,975
General and administrative			7,406				3,797				21,601				12,900
Total operating expenses			17,579				12,041				57,541				38,001
Income from operations			5,810				1,849				21,190				1,709
Other (expense) income, net			(28	)			(19	)			(43	)			76
Income before income taxes			5,782				1,830				21,147				1,785
Income tax provision (benefit)			1,788				35				1,683				(1,835	)
Net income		$	3,994			$	1,795			$	19,464			$	3,620
Net income per share of common stock:
Basic		$	0.15			$	0.09			$	0.83			$	0.23
Diluted		$	0.14			$	0.08			$	0.76			$	0.18
Weighted average common shares used in computing net income per share of common stock:
Basic			25,832,303				20,828,571				23,523,222				15,618,053
Diluted			27,896,937				22,039,426				25,537,192				20,649,451
Net income		$	3,994			$	1,795			$	19,464			$	3,620
Other comprehensive loss, after taxes
Unrealized losses on investments			(65	)			—				(65	)			—
Comprehensive income		$	3,929			$	1,795			$	19,399			$	3,620
(1) Derived from audited financial statements.

Ellie Mae, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
		Year ended December 31,
			2012				2011
		(unaudited)					(1)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	19,464			$	3,620
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			3,144				1,964
Provision for uncollectible accounts receivable			70				469
Amortization of other intangible assets			1,635				896
Amortization of discount related to holdback			186				80
Stock-based compensation			6,849				1,680
Loss on sale of property and equipment			19				—
Excess tax benefit from exercise of stock options			(1,967	)			—
Deferred income taxes			(559	)			(1,654	)
Changes in operating assets and liabilities:
Accounts receivable			(3,004	)			(2,584	)
Prepaid expenses and other current assets			(1,506	)			(650	)
Deposits and other assets			50				621
Accounts payable			500				479
Accrued and other current liabilities			2,749				1,309
Deferred revenue			334				321
Deferred rent			(211	)			(179	)
Net cash provided by operating activities			27,753				6,372
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment			(8,121	)			(3,688	)
Purchase of investments			(65,811	)			(6,228	)
Maturities of investments			7,708				6,851
Acquisitions, net of cash acquired			(2,907	)			(18,188	)
Other investing activities, net			10				(15	)
Net cash used in investing activities			(69,121	)			(21,268	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from public offerings, net of commissions			55,964				27,900
Offering costs paid during the period			(433	)			(4,824	)
Payment of capital lease obligations			(6	)			(116	)
Proceeds from issuance of common stock under employee stock plans			4,258				1,310
Excess tax benefit from exercise of stock options			1,967				9
Net cash provided by financing activities			61,750				24,279
NET INCREASE IN CASH AND CASH EQUIVALENTS			20,382				9,383
CASH AND CASH EQUIVALENTS, Beginning of period			23,732				14,349
CASH AND CASH EQUIVALENTS, End of period		$	44,114			$	23,732
(1) Derived from audited financial statements.

Ellie Mae, Inc.
NON-GAAP RECONCILIATION
(UNAUDITED)
(in thousands, except share and per share amounts)
		Three months ended December 31,						Year ended December 31,
			2012			2011			2012			2011
Net income		$	3,994		$	1,795		$	19,464		$	3,620
Depreciation and amortization			887			579			3,144			1,964
Amortization of intangible assets			409			415			1,635			896
Other (expense) income, net			28			19			43			(76	)
Income tax provision (benefit)			1,788			35			1,683			(1,835	)
EBITDA			7,106			2,843			25,969			4,569
Non-cash, stock-based compensation expenses			3,206			547			6,849			1,680
Acquisition costs			—			—			—			351
Adjusted EBITDA		$	10,312		$	3,390		$	32,818		$	6,600
Net income		$	3,994		$	1,795		$	19,464		$	3,620
Non-cash, stock-based compensation expenses			3,206			547			6,849			1,680
Acquisition related deferred tax assets			—			—			—			(1,654	)
Amortization of intangible assets			409			415			1,635			896
Acquisition costs			—			—			—			351
Adjusted net income		$	7,609		$	2,757		$	27,948		$	4,893
Shares used to compute non-GAAP net income per share
Basic			25,832,303			20,828,571			23,523,222			15,618,053
Diluted			27,896,937			22,039,426			25,537,192			20,649,451
Adjusted net income per share
Basic		$	0.29		$	0.13		$	1.19		$	0.31
Diluted		$	0.27		$	0.13		$	1.09		$	0.24

Ellie Mae, Inc.
NON-GAAP RECONCILIATION
(UNAUDITED)
(in thousands, except share and per share amounts)
		First Quarter 2013 Projected Range						Fiscal 2013 Projected Range
Net Income		$	3,200		$	3,500		$	15,600		$	16,200
Depreciation and amortization			1,000			1,100			4,600			4,800
Amortization of intangible assets			400			400			1,400			1,400
Income tax provision/other			2,100			2,100			9,400			9,600
EBITDA			6,700			7,100			31,000			32,000
Non-cash, stock-based compensation expenses			2,800			2,900			13,200			13,400
Adjusted EBITDA		$	9,500		$	10,000		$	44,200		$	45,400
Net Income		$	3,200		$	3,500		$	15,600		$	16,200
Non-cash, stock-based compensation expenses			2,800			2,900			13,200			13,400
Amortization of intangible assets			400			400			1,400			1,400
Adjusted net income		$	6,400		$	6,800		$	30,200		$	31,000
Shares used to compute non-GAAP net income per share
Diluted			28,000,000			28,000,000			28,400,000			28,400,000
Projected net income per share
Diluted		$	0.11		$	0.13		$	0.55		$	0.57
Adjusted net income per share
Diluted		$	0.23		$	0.24		$	1.06		$	1.09

« First ‹ Previous 1 2 3 4 5 Next › Last »