Trintech Reports Fourth Quarter and Fiscal Year 2010
Financial Results and an Agreement to Sell Its Healthcare
Division
GlobeNewswire
2010-03-02
-- Revenues of $7.9 million, Adjusted EBITDA Net Income of $1.4 million and
Net Income of $910,000 for the Fourth Quarter 2010 from Continuing
Operations.
-- Revenues of $32.5 million, Adjusted EBITDA Net Income of $4.9 million
and Net Income of $2.6 million for the Year Ended January 31, 2010 from
Continuing Operations.
-- Agreement to sell Healthcare Division for $34.5 million in cash.
DUBLIN, Ireland and DALLAS, March 2, 2010 (GLOBE NEWSWIRE) -- Trintech
Group Plc (Nasdaq:TTPA) today announced revenues of $7.9 million for
the fourth quarter ended January 31, 2010, an adjusted EBITDA net
income of $1.4 million and net income for the quarter of $910,000 from
continuing operations. For the year ended January 31, 2010, the company
recorded revenues of $32.5 million, an adjusted EBITDA net income of
$4.9 million and net income of $2.6 million from continuing operations.
It also announced that it has signed a definitive agreement for the
sale of its healthcare division, Concuity, to The Advisory Board
Company (Nasdaq:ABCO) for $34.5 million in cash. Under the terms of the
agreement, The Advisory Board Company will pay Trintech $34.5 million
cash for all of the outstanding shares of a newly formed Trintech
subsidiary which, prior to closing, will hold the majority of the
assets and liabilities of the Concuity business. The purchase price is
subject to a working capital adjustment at the closing date and an
escrow amount of $6 million to be set aside with $2 million being
released after 9 months and the remainder no later than December 31,
2011, subject to the satisfaction of post-closing conditions. The sale
has been approved by the Boards of Directors of both companies and is
subject to customary closing conditions. Trintech expects the sale will
be completed within one month.
Due to the sale of its healthcare division to The Advisory Board
Company, Trintech is required to present its financial results on a
continuing and discontinued basis. This requirement has resulted in the
presentation of financial results showing fourth quarter and the full
fiscal year for the continuing business (the Financial Governance, Risk
and Compliance or GRC business).
Highlights:
-- Revenues from continuing operations amounted to $7.9 million for Q4 of
the 2010 fiscal year which was unchanged compared to Q4 of the prior
year.
-- Revenues from continuing operations fell 5% for the 2010 fiscal year to
$32.5 million compared to $34.3 million in the prior year.
-- Trintech generated an adjusted EBITDA net income from continuing
operations of $1.4 million for Q4 of the 2010 fiscal year compared to an
adjusted EBITDA net income from continuing operations of $649,000 for
the corresponding period in the prior year. Adjusted EBITDA basic and
diluted net income from continuing operations per equivalent ADS was
$0.08 for Q4 of the 2010 fiscal year compared to $0.04 for the same
period in the prior year.
-- Trintech generated an adjusted EBITDA net income from continuing
operations of $4.9 million for the 2010 fiscal year compared to an
adjusted EBITDA net income from continuing operations of $2.6 million in
the prior year. Adjusted basic and diluted EBITDA net income from
continuing operations per equivalent ADS was $0.30 for the 2010 fiscal
year compared to $0.16 for the prior year.
-- Trintech generated $2.6 million cash for the 2010 fiscal year and
increased its cash balances to $20.1 million (including restricted cash
of $170,000) at the end of the year. Cash generated was $1.2 million for
Q4 of the 2010 fiscal year compared to $523,000 for the same period in
the prior year.
-- Gross margin from continuing operations amounted to $5.7 million in Q4
of the 2010 fiscal year, representing 73% of revenues, compared to $5.5
million and 70% in Q4 of the prior year.
-- Gross margin from continuing operations amounted to $23.6 million in the
2010 fiscal year representing 73% of revenues, compared to $24.4 million
and 71% in the prior year.
-- Trintech increased expenditure in research and development from
continuing operations by 8% from $1.0 million in Q4 of the 2009 fiscal
year to $1.1 million in the same quarter in the 2010 fiscal year.
Research and development expenditure from continuing operations was down
by less than 1% in the 2010 fiscal year compared with the prior fiscal
year.
-- Trintech reduced expenditure in sales and marketing from continuing
operations by 19% from $2.2 million in Q4 in the 2009 fiscal year to
$1.8 million in the same quarter in the 2010 fiscal year. Sales and
marketing expenditure from continuing operations decreased overall by
25% in the 2010 fiscal year from $10.7 million to $8.0 million in the
prior fiscal year.
-- General and administrative expenses from continuing operations decreased
by 20% to $1.7 million in Q4 of the 2010 fiscal year compared to $2.1
million in Q4 of the 2009 fiscal year and by 13% in the 2010 fiscal year
from $8.7 million to $7.5 million in the prior fiscal year.
-- Net income from continuing operations increased to $910,000 in Q4 of the
2010 fiscal year from $267,000 in Q4 of the 2009 fiscal year. After
incorporating a loss from discontinued operations of $126,000, the total
net income for the quarter ended January 31, 2010 was $784,000 compared
with a net loss of $334,000 for the same period in the prior year, after
incorporating a loss from discontinued operations of $601,000 in Q4 of
the prior year.
-- Basic and diluted net income per equivalent ADS from continuing
operations for the quarter ended January 31, 2010 was $0.06, compared
with a basic and diluted net income per equivalent ADS of $0.02 for the
quarter ended January 31, 2009.
Cyril McGuire, Chairman and Chief Executive Officer, said, "Our trading
results in Q4 and fiscal year 2010 continued to perform strongly, with
adjusted EBITDA net income from continuing operations of $1.4 million
for Q4 and $4.9 million for the fiscal year 2010 representing over 115%
and 90% growth, respectively. We also signed a definitive agreement for
the sale of our healthcare division, Concuity, for a cash consideration
of $34.5 million, which will allow us to tighten our strategic focus
and become a pure play in our core Financial GRC business globally."
Mr. McGuire added, "Operating performance metrics continued to improve,
with margin growth, profitability, operating costs, and cash generation
exceeding our targets. Following the Concuity sale, we will have a
strengthened balance sheet of over $50 million cash and will target
growth in our core Financial GRC business. Our outlook for the fiscal
year 2011 is for robust growth of 10% in revenues and continued
earnings growth as the global economy recovers with encouraging signs
of market confidence and stability building in the US and
internationally in our target markets."
Paul Byrne, President, added, "Trintech's business continues to deliver
strong adjusted EBITDA growth, which has been driven by increasing
operational efficiencies, and improved productivity and asset
utilization, as our solutions continue to drive value for our clients.
With the definitive agreement for the sale of the healthcare division,
we expect to drive additional value for our clients through a singular
focus on the Financial Governance, Risk and Compliance (GRC) market.
Combining this focus with our already highly profitable operating model
and a strong balance sheet, Trintech is positioned for sustained
profitable growth."
Recent Highlights include:
Trintech announced that RONA had selected its ReconNET software for
financial process compliance. ReconNET is a component of Trintech's
Unity platform, a suite of modular software that enables companies to
meet their financial governance, risk management and compliance goals.
RONA is the largest Canadian distributor and retailer of hardware,
renovation and gardening products. RONA operates a network of close to
700 corporate, franchise and affiliate stores of various sizes and
formats.
Trintech announced that PAC Worldwide had selected its AssureNET ASP
software for financial process compliance. AssureNET ASP is a hosted
component of Trintech's Unity platform, a suite of modular software
that enables companies to meet their financial governance, risk
management and compliance goals. PAC Worldwide Corporation has
facilities in the U.S., Mexico and Malaysia. They have over 500
employees, thousands of customers and ship directly to dozens of
countries around the world. The packaging that they manufacture reaches
virtually all corners of the earth.
Trintech announced that Hyatt Hotels selected the hosted version of its
Unity Compliance software for financial process compliance. Unity
Compliance is a component of Trintech's Unity platform, a suite of
modular software that enables companies to meet their financial
governance, risk management and compliance goals.
Trintech announced that Amplifon selected its ReconNET software for
financial process compliance. Amplifon, listed on the STAR segment and
the FTSE Italia Mid Cap Index of the Milan Stock Exchange, is a
worldwide leader in the distribution and fitting of hearing aids and
related services.
Trintech announced that Komen for the Cure(R) selected its ReconNET ASP
software for financial process compliance. ReconNET ASP is a hosted
component of Trintech's Unity platform, a suite of modular software
that enables companies to meet their financial governance, risk
management and compliance goals. Today, Komen for the Cure is the
world's largest grassroots network of breast cancer survivors and
activists fighting to save lives, empower people, ensure quality care
for all and energize science to find the cures.
Trintech announced that it had embedded the Fujitsu Interstage(R)
XWand(R) XBRL processing engine into the Trintech Unity Xtensible
Financial Reporting (XFR) software module, dramatically extending the
ability of Trintech clients to create, manage and validate
XBRL-compliant financial statements, including Edgar Filer Manual (EFM)
validation. Fujitsu Interstage XWand software helps companies create,
validate, report, collect, and analyze financial data in XBRL, a
standard format for disclosing financial information.
Trintech announced that The Board of Directors and International
Steering Committee of XBRL International approved the appointment of
Chethan Gorur, Director of Interactive Data Services at Trintech, as
Chairman Designate of the XBRL International Standards Board (XSB)
effective immediately. It is anticipated that he will fully assume the
role of Chairman at the end of March 2010.
Trintech and KPMG, the global network of professional service firms
providing audit, tax and advisory services, jointly presented a webinar
on XBRL compliance entitled "Your 2010 XBRL Compliance Roadmap." Topics
included concepts such as XBRL extensions, how to evaluate XBRL
software vendors, and how to leverage the phases of the SEC mandate.
Trintech presented a webinar entitled "Global XBRL Compliance: The
'Built-In' Approach To Drive Benefits." This webinar was aimed at
helping attendees to anticipate and understand the common mistakes made
by filers in their first year of compliance and to learn how to embed
XBRL into their overall financial close and reporting processes using a
built-in approach that offers dramatic efficiencies over the other
methods available.
Trintech announced that it has signed a partnership agreement with
Safeplay, a Swedish consulting partnership specializing in finance and
business process management solutions for the banking, insurance,
energy, telecommunications, shipping, and manufacturing industries to
sell our Financial GRC solutions.
Results Overview:
Revenues from continuing operations for the year ended January 31, 2010
were $32.5 million compared to $34.3 million for the year ended January
31, 2009, a decrease of 5%. Revenues from continuing operations for the
fourth quarter ended January 31, 2010 remained unchanged compared to
the revenues from continuing operations for the corresponding quarter
in the prior year at $7.9 million.
Software license revenues from continuing operations for the year ended
January 31, 2010 were $20.1 million compared to $19.6 million for the
year ended January 31, 2009, an increase of 3%. The increase was
primarily due to stronger GRC license sales in the US and some
international markets. Continued economic uncertainty in some European
markets is negatively impacting our normal sale cycles, with customers
becoming more cautious, procurement processes lengthening and general
uncertainty creating significant challenges to close new business.
Maintenance revenues from continuing operations continued to be strong
from existing customers in the US.
Service revenues from continuing operations for the year ended January
31, 2010 were $12.3 million compared to $14.7 million for the year
ended January 31, 2009, a decrease of 16%. The decrease was primarily
due to a fall in professional service revenues from our GRC business in
the US and European markets and a higher professional service revenue
backlog available in the prior year.
Total gross margin from continuing operations for the year ended
January 31, 2010 was $23.6 million, a decrease of 3% from $24.4 million
for the year ended January 31, 2009. The overall gross margin
percentage from continuing operations increased by 2% in the 2010
fiscal year to 73% from 71% in the 2009 fiscal year. Total gross margin
from continuing operations for the fourth quarter ended January 31,
2010 was $5.7 million, an increase of 4% from $5.5 million in the
corresponding quarter in the prior year. Gross margin percentage from
continuing operations increased to 73% in Q4 of the 2010 fiscal year
compared to 70% in the same period of the prior year. The increase in
margin and margin percentage in Q4 and for the 2010 fiscal year was due
to higher license revenues and a lower percentage of lower margin
service revenues compared to the prior year periods.
Total operating expenses from continuing operations for the year ended
January 31, 2010 were $21.2 million, a decrease of 15% from $25.1
millionin the previous year. Total operating expenses from continuing
operations for the fourth quarter ended January 31, 2010 were $4.7
million, a decrease of 16% from $5.6 million in the corresponding
quarter in the prior year. The decrease in costs was primarily due to
headcount reductions and lower salary costs. There has also been a
reduction in discretionary expenditure in all areas of Trintech over
the last year due to the general economic environment.
Adjusted EBITDA operating expenses from continuing operations for the
year ended January 31, 2010 were $19.3 million, a decrease of 15% from
$22.7 millionin the previous year. Adjusted EBITDA operating expenses
from continuing operations for the quarter ended January 31, 2010 were
$4.4 million, a decrease of 14% compared to $5.1 million for the
corresponding period in the prior year.
The provision for income taxes from continuing operations was $138,000
and $45,000 for the year and quarter ended January 31, 2010,
respectively, compared to a credit of $356,000 and a credit of $243,000
for the year and quarter ended January 31, 2009. The tax credits in the
year and quarter ended January 31, 2009 were primarily due to a
deferred tax credit in the US resulting from the finalization of the
purchase accounting related to the acquisition of the Movaris business.
Trintech's balance sheet remains strong, with cash balances of $20.1
million (including restricted cash of $170,000) as of January 31, 2010.
The cash flow statement has been prepared on a combined continuing and
discontinued basis. Net cash generated for the three months ended
January 31, 2010 was $1.2 million, which included cash generated from
operations of $1.5 million, cash payments on the purchase of property
and equipment of $53,000 and the effect of exchange rate differences on
cash and cash equivalents of $88,000 negative.
Trintech will host a conference call to discuss its financial results,
its business outlook and the proposed sale of its healthcare division
beginning at 13:30 hrs (UK Time), Wednesday, March 3. Please see
advisory for information on the call.
A web simulcast of Trintech's conference call reviewing our performance
for Q4 and the full fiscal year 2010, our business outlook for Q1
fiscal year 2011 and our proposed sale of its healthcare division will
be broadcast live, Wednesday, March 3, 2010 at 13:30 hrs (UK Time),
08:30 hrs (NY Time) and 05:30 hrs (CA Time) and thereafter for 1 year
at www.trintech.com/investor. An instant telephone replay will also be
available for 10 days by dialing +44 1452 55 00 00 and entering the
following access number (57225731 #).
About Trintech Group
Trintech Group Plc (Nasdaq:TTPA) is a leading global provider of
integrated financial governance, risk management, and compliance
software solutions for commercial, financial, and healthcare markets.
Trintech's recognized expertise in reconciliation process management,
financial data aggregation, revenue and cost cycle management,
financial close, risk management, and compliance enables customers to
gain greater visibility and control of their critical financial
processes leading to better overall business performance.
For more information on how Trintech can help you increase confidence
in business performance and reduce financial risk, please contact us
online at www.trintech.com or at our principal business office in
Addison, Texas, or through an international office in Ireland, the
United Kingdom, or the Netherlands.
Trintech * 15851 Dallas Parkway, Suite 900 * Addison, TX 75001 * Tel 1
972 701 9802Trintech UK Ltd. * Warnford Court, 29 Throgmorton St. *
London EC2N2AT, UK * Tel +44 (0) 20 7628 5235Trintech Technologies *
Block C, Central Park * Leopardstown, Dublin 18, Ireland * Tel +353 1
293 9840Trintech * Cypresbaan 9 * 2908 LT Capelle a/d Ijssel, The
Netherlands * Tel +31 (0) 10 8507 474
Forward Looking Statements
This news release contains "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Any
"forward looking statements" in this press release are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those stated. "Forward looking statements" in
this press release include statements, among others, relating to
Trintech's growth strategy, including a singular focus on the
Governance, Risk and Compliance market, the timing of the closing of
the sale of Trintech's healthcare division, Concuity, the benefits to
be derived therefrom, revenue growth of 10% and continued earnings
growth in Trintech's fiscal year 2011, and economic recovery in the
markets that Trintech serves. Factors that could cause or contribute to
such differences include Trintech's ability to close the sale of the
Concuity business, accurately predict future sales and market trends,
accurately predict and meet customer needs and to successfully position
itself in the market, ensure the performance of its products and
services, and improve the performance of its organization and ensure
the long term health of its business. Actual performance may also be
affected by other factors more fully discussed in Trintech's Form 20-F
for the fiscal year ended January 31, 2009 filed with the US Securities
and Exchange Commission (www.sec.gov) and subsequent filings with the
US Securities and Exchange Commission. Lastly, Trintech assumes no
obligation to update these forward-looking statements.
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share
data)
January January
31, 31,
ASSETS 2010 2009
--------- ---------
Current assets
Cash and cash equivalents $19,929 $17,363
Restricted cash 170 1,143
Accounts receivable, net of
allowance for doubtful accounts
of
$97 and $261 at January 31,
2010 and January 31, 2009,
respectively 4,583 5,447
Prepaid expenses and other
current assets 1,059 993
Net current deferred tax asset 199 252
Assets held for sale and in
discontinued operations 7,703 7,735
--------- ---------
Total current assets 33,643 32,933
--------- ---------
Non-current assets
Restricted cash -- 170
Property and equipment, net 1,005 1,150
Intangible assets, net 1,843 2,945
Goodwill 20,290 20,276
--------- ---------
Total non-current assets 23,138 24,541
--------- ---------
Total assets $56,781 $57,474
========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Accounts payable 463 695
Accrued payroll and related
expenses 966 1,555
Deferred consideration -- 970
Income taxes payable 101 161
Other accrued liabilities 1,186 1,467
Deferred revenues 8,481 8,414
Liabilities held for sale and in
discontinued operations 3,981 4,345
--------- ---------
Total current liabilities 15,178 17,607
--------- ---------
Non-current liabilities
Income taxes payable 127 110
Net non-current deferred tax
liability 199 252
Deferred rent less current
portion 404 537
--------- ---------
Total non-current liabilities 730 899
--------- ---------
Series B preference shares,
$0.0027 par value
10,000,000 authorized at
January 31, 2010 and January
31, 2009, respectively
None issued and outstanding -- --
Shareholders' equity:
Ordinary Shares, $0.0027 par
value: 100,000,000 shares
authorized;
33,454,384 shares issued and
33,095,914
and 31,843,333 shares
outstanding at January 31,
2010 and
January 31, 2009, respectively 90 90
Additional paid-in capital 253,372 253,076
Treasury shares (at cost,
358,470 and 595,552 at January
31, 2010 and
January 31, 2009, respectively) (529) (879)
Accumulated deficit (207,880) (209,367)
Accumulated other comprehensive
loss (4,180) (3,952)
--------- ---------
Total shareholders' equity 40,873 38,968
--------- ---------
Total liabilities and
shareholders' equity $56,781 $57,474
========= =========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three months Twelve months
ended January 31, ended January 31,
---------------------- ----------------------
2010 2009 2010 2009
Revenues
License $4,668 $4,566 $20,140 $19,614
Service 3,207 3,334 12,325 14,697
---------- ---------- ---------- ----------
Total revenues 7,875 7,900 32,465 34,311
---------- ---------- ---------- ----------
Cost of revenues
License 594 540 2,736 2,246
Amortization of purchased
technology 62 107 248 417
Service 1,477 1,724 5,855 7,248
---------- ---------- ---------- ----------
Total cost of revenues 2,133 2,371 8,839 9,911
---------- ---------- ---------- ----------
Gross margin 5,742 5,529 23,626 24,400
Operating expenses
Research and development 1,092 1,012 4,581 4,620
Sales and marketing 1,815 2,241 8,032 10,656
General and administrative 1,679 2,092 7,489 8,654
Restructuring charges -- 58 244 212
Amortization of purchased
intangible assets 141 238 855 933
---------- ---------- ---------- ----------
Total operating expenses 4,727 5,641 21,201 25,075
---------- ---------- ---------- ----------
Income (loss) from operations 1,015 (112) 2,425 (675)
Interest income, net 3 57 50 334
Exchange (loss) gain, net (63) 79 229 331
---------- ---------- ---------- ----------
Income (loss) before provision
for income taxes 955 24 2,704 (10)
Provision for income taxes (45) 243 (138) 356
---------- ---------- ---------- ----------
Net income from continuing
operations $910 $267 $2,566 $346
Loss from discontinued operations (126) (601) (1,079) (2,498)
Gain on sale of discontinued
operations, net -- -- -- 920
---------- ---------- ---------- ----------
Net loss from discontinued
operations,
net of tax (126) (601) (1,079) (1,578)
Net income (loss) $784 $(334) $1,487 $(1,232)
========== ========== ========== ==========
Basic and diluted net income per
Ordinary
Share from continuing operations $0.03 $0.01 $0.08 $0.01
========== ========== ========== ==========
Basic and diluted net loss per
Ordinary
Share from discontinued operations $(0.00) $(0.02) $(0.03) $(0.05)
========== ========== ========== ==========
Basic and diluted net income (loss)
per
Ordinary Share $0.02 $(0.01) $0.05 $(0.04)
========== ========== ========== ==========
Shares used in computation of basic
net
income per Ordinary Share and basic
net income from continuing
operations 33,084,253 31,936,148 32,951,646 31,921,345
========== ========== ========== ==========
Shares used in computation of
diluted net
income (loss) per Ordinary Share and
diluted net income from continuing
operations 33,659,516 32,972,477 33,034,267 33,001,888
========== ========== ========== ==========
Shares used in computation of basic
and diluted net loss per Ordinary
Share from discontinued operations 33,084,253 31,936,148 32,951,646 31,921,345
========== ========== ========== ==========
Basic and diluted net income per
equivalent ADS from continuing
operations $0.06 $0.02 $0.16 $0.02
========== ========== ========== ==========
Basic and diluted net income (loss)
per equivalent ADS $0.05 $(0.02) $0.09 $(0.08)
========== ========== ========== ==========
TRINTECH GROUP PLC
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO
ADJUSTED EBITDA NET INCOME FROM CONTINUING OPERATIONS (UNAUDITED)
(U.S. dollars in thousands, except per share data)
Three months Twelve months
ended January ended January
31, 31,
-------------- ---------------
2010 2009 2010 2009
Net income from continuing operations $910 $267 $2,566 $346
Adjustments:
Depreciation 100 111 409 504
Amortization of purchased intangible assets 203 345 1,103 1,350
Share-based compensation 141 168 488 854
Restructuring charge -- 58 244 212
Interest income, net (3) (57) (50) (334)
Income taxes 45 (243) 138 (356)
------- ----- ------- ------
Adjusted Earnings Before Interest, Taxation,
Depreciation,
Amortization, Restructuring and Share-based
compensation (EBITDA) net income from continuing
operations $1,396 $649 $4,898 $2,576
======= ===== ======= ======
Adjusted Basic and diluted EBITDA net income per
Ordinary
Share from continuing operations $0.04 $0.02 $0.15 $0.08
======= ===== ======= ======
Adjusted Basic and diluted EBITDA net income per
equivalent
ADS from continuing operations $0.08 $0.04 $0.30 $0.16
======= ===== ======= ======
Note: Management believes Adjusted EBITDA net income from continuing operations is
an important measure of Company performance without consideration of the
non-operating income and expense adjusted above as it presents a clearer view of
operational performance changes between the comparative periods.
TRINTECH GROUP PLC
RECONCILIATION OF OPERATING EXPENSES FROM CONTINUING OPERATIONS TO
ADJUSTED EBITDA OPERATING EXPENSES FROM CONTINUING OPERATIONS (UNAUDITED)
(U.S. dollars in thousands)
Three months Twelve months
ended ended
January 31, January 31,
--------------- ----------------
2010 2009 2010 2009
------- ------ ------- -------
Total operating expenses from continuing
operations $4,727 $5,641 $21,201 $25,075
Adjustments:
Restructuring charge -- (58) (244) (212)
Depreciation (91) (97) (372) (430)
Amortization of purchased intangible assets (141) (238) (855) (933)
Share-based compensation (122) (154) (436) (792)
------- ------ ------- -------
Adjusted EBITDA operating expenses from
continuing operations $4,373 $5,094 $19,294 $22,708
======= ====== ======= =======
Note: Management believes Adjusted EBITDA operating expenses from continuing
operations is an important measure of Company performance without consideration of
the non-operating expense adjusted above as it presents a clearer view of
operational performance changes between the comparative periods.
TRINTECH GROUP PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Twelve Months
ended
January 31,
-----------------
2010 2009
------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $1,487 $(1,232)
Adjustments to reconcile net income (loss)
to
net cash provided by operating activities:
Depreciation 606 742
Amortization 2,194 2,545
Gain on sale of discontinued operations,
net -- (920)
Share-based compensation 515 919
Effect of changes in foreign currency
exchange rates (65) (273)
Changes in operating assets and
liabilities:
Accounts receivable 1,944 804
Prepaid expenses and other current
assets (1,181) (669)
Accounts payable (225) 193
Accrued payroll and related expenses (631) (555)
Deferred revenues 595 2,556
Other accrued liabilities (562) (246)
------- --------
Net cash provided by operating activities 4,677 3,864
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (268) (271)
(Payments) proceeds relating to sale of
discontinued operations, net (60) 920
Increase (decrease) in restricted cash
deposits 1,143 (975)
Payments relating to acquisitions (2,883) (8,816)
------- --------
Net cash used in investing activities (2,068) (9,142)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital leases (156) (146)
Issuance of ordinary shares 130 124
Repurchase of ordinary shares -- (100)
------- --------
Net cash used in financing activities (26) (122)
------- --------
Net increase (decrease) in cash and cash
equivalents 2,583 (5,400)
Effect of exchange rate changes on cash
and cash equivalents (17) (1,003)
Cash and cash equivalents at beginning of
year 17,363 23,766
------- --------
Cash and cash equivalents at end of year $19,929 $17,363
======= ========
Supplemental disclosure of cash flow
information
Interest paid $14 $31
======= ========
Taxes paid $144 $222
======= ========
Supplemental disclosure of non-cash flow
information
Acquisition of property and equipment
under capital leases $-- $(30)
======= ========
Leasehold improvements funded by the
landlord $-- $249
======= ========
Shares issued in connection with
acquisition $-- $1,238
======= ========
CONTACT: Trintech Group plc
Paul Byrne, President
Joseph Seery, VP Finance, Group
+353 1 293 9840
paul.byrne@trintech.com
joseph.seery@trintech.com
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