Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Share and Free Cash Flow.
Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.
Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, restructuring charges, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.
Non-GAAP diluted common shares includes total outstanding shares plus outstanding equity awards under the Company’s equity award plans.
Free cash flow consists of cash flow from operations less capital expenditures.
Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.
About Altair
Altair is a global technology company that provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics and artificial intelligence. Altair enables organizations across broad industry segments to compete more effectively in a connected world while creating a more sustainable future. To learn more, please visit
www.altair.com.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the second quarter and full year 2021, our statements regarding our expectation for 2021, and our reconciliations of projected non-GAAP financial measures. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in our forward-looking statements due to a number of factors, including but not limited to, the risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.
Media Relations
Altair
Dave Simon
248-614-2400 ext. 332
ir@altair.com
Investor Relations
The Blueshirt Group
Monica Gould
212-871-3927
ir@altair.com
Lindsay Savarese
212-331-8417
ir@altair.com
ALTAIR ENGINERING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| March 31, 2021 | December 31, 2020 | |||||||
| (In thousands) | (Unaudited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 243,364 | $ | 241,221 | ||||
| Accounts receivable, net | 107,112 | 117,878 | ||||||
| Income tax receivable | 5,985 | 6,736 | ||||||
| Prepaid expenses and other current assets | 22,295 | 21,100 | ||||||
| Total current assets | 378,756 | 386,935 | ||||||
| Property and equipment, net | 39,143 | 36,332 | ||||||
| Operating lease right of use assets | 33,568 | 33,526 | ||||||
| Goodwill | 262,090 | 264,481 | ||||||
| Other intangible assets, net | 70,912 | 76,114 | ||||||
| Deferred tax assets | 8,476 | 7,125 | ||||||
| Other long-term assets | 24,968 | 25,389 | ||||||
| TOTAL ASSETS | $ | 817,913 | $ | 829,902 | ||||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Current portion of long-term debt | $ | 394 | $ | 30,384 | ||||
| Accounts payable | 6,671 | 8,594 | ||||||
| Accrued compensation and benefits | 36,785 | 34,772 | ||||||
| Current portion of operating lease liabilities | 10,471 | 10,331 | ||||||
| Other accrued expenses and current liabilities | 32,238 | 30,982 | ||||||
| Deferred revenue | 81,737 | 85,691 | ||||||
| Convertible senior notes, net | 191,094 | — | ||||||
| Total current liabilities | 359,390 | 200,754 | ||||||
| Long-term debt, net of current portion | 258 | 353 | ||||||
| Convertible senior notes, net | — | 188,300 | ||||||
| Operating lease liabilities, net of current portion | 24,319 | 24,323 | ||||||
| Deferred revenue, non-current | 8,992 | 9,388 | ||||||
| Other long-term liabilities | 25,141 | 27,414 | ||||||
| TOTAL LIABILITIES | 418,100 | 450,532 | ||||||
| Commitments and contingencies | ||||||||
| MEZZANINE EQUITY | 784 | 784 | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding | — | — | ||||||
| Common stock ($0.0001 par value) | ||||||||
| Class A common stock, authorized 513,797 shares, issued and outstanding 45,494
and 44,216 shares as of March 31, 2021, and December 31, 2020, respectively | 4 | 4 | ||||||
| Class B common stock, authorized 41,203 shares, issued and outstanding 29,601
and 30,111 shares as of March 31, 2021, and December 31, 2020, respectively | 3 | 3 | ||||||
| Additional paid-in capital | 484,584 | 474,669 | ||||||
| Accumulated deficit | (78,933 | ) | (93,293 | ) | ||||
| Accumulated other comprehensive loss | (6,629 | ) | (2,797 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 399,029 | 378,586 | ||||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $ | 817,913 | $ | 829,902 | ||||
