WASHINGTON, Feb. 11, 2015 /PRNewswire/ -- The Advisory
Board Company (NASDAQ: ABCO), a global technology, research, and
services company providing the leading cloud-based comprehensive
performance platform for the health care and higher education
industries, today announced financial results for the quarter and
nine month period ended December 31,
2014, highlighted by 15% growth in contract value and
quarterly revenue.
Robert Musslewhite, Chairman and
Chief Executive Officer of The Advisory Board Company, commented,
"Overall, 2014 was another successful year for The Advisory Board
Company, continuing our track record of incredible value delivered
to our members, transformational impact on the industries we serve,
mid-teens growth, and strong margin performance. In addition,
our acquisition of Royall & Company, which became effective on
January 9, was a key addition to the
firm, expanding our impact and membership while maintaining all key
attributes of our successful business model. Our subscription
based model and high renewal rates typically provide reliable
forward insight into future performance, and I am pleased to have
visibility into another strong year for calendar 2015, with
expectations for revenue growth of 14-17% and significant margin
expansion."
Mr. Musslewhite continued, "I am pleased to announce today two
new product launches. First, on the health care side, we
launched the Purchased Services Management Program. Purchased
outsourced functions such as food, transcription, clinical
engineering, and facilities maintenance comprise 40% or more of the
average hospital's expenses but are often poorly managed, with
unscrutinized long-term contracts. Further, when contracts
are re-negotiated or bid out, hospitals often lack the data and
skills to negotiate not only the contract price but also the
various other terms and conditions that ultimately determine the
value of the service. The Purchased Services Management
Program is a templatized service offering which leverages know-how
and proven practices to develop strategies for effectively
negotiating purchased services contracts. Through our deep
category knowledge and significant experience negotiating and
executing service contracts, the program delivers contract savings
and elevated performance standards. With pilot projects that
have yielded multi-million dollar ROI, the Purchased Services
Management Program has had a strong kick-off, and we are excited
about its potential."
Mr. Musslewhite concluded, "I am also pleased to announce today
our latest launch into the higher education industry, the
Enrollment Management Forum, a renewable research program focused
on the critical strategic issues surrounding enrollment at colleges
and universities today. With best practice research, peer
networking, and benchmarking tools, the Enrollment Management Forum
addresses such topics as elevating net revenue management,
maximizing student yield, meeting the student success imperative,
and building a high-performance, data-driven enrollment
function. A strong complement to the capabilities we gained
through the Royall & Company acquisition, the Enrollment
Management Forum is off to a great start, and we are confident that
it will provide outstanding value to members, both as a stand-alone
program and through its synergies with the capabilities Royall
& Company brings to the company."
Revenue for the quarter increased 15% to $150.2 million, from $131.0 million for the quarter ended December 31, 2013. Contract value increased 15%
to $601.8 million as of December 31, 2014, up from $522.5 million as of December 31, 2013. For the quarter ended
December 31, 2014, net loss
attributable to common stockholders was $5.0
million, or $0.14 per diluted
share, compared to net income attributable to common stockholders
of $3.8 million, or $0.10 per diluted share, for the quarter ended
December 31, 2013. For the quarter
ended December 31, 2014, adjusted
EBITDA was $22.6 million, up from
$21.4 million for the quarter ended
December 31, 2013. Adjusted net
income for the quarter ended December 31,
2014 was $9.5 million, or
$0.26 per diluted share, which was
unchanged from the quarter ended December
31, 2013. Adjusted EBITDA, adjusted net income, and non-GAAP
earnings per diluted share are all non-GAAP financial measures.
For the nine month period ended December
31, 2014, revenue increased 14% to $436.2 million, from $382.6 million for the nine months ended
December 31, 2013. Net loss
attributable to common stockholders was $1.7
million, or $0.05 per diluted
share, for the nine month period ended December 31, 2014, compared to net income
attributable to common stockholders of $16.5
million, or $0.45 per diluted
share, for the nine months ended December
31, 2013. For the nine month period ended December 31, 2014, adjusted EBITDA was
$72.0 million, up from $66.2 million for the nine months ended
December 31, 2013. Adjusted net
income for the nine month period ended December 31, 2014 was $36.4 million, or $1.00 per diluted share, compared to $32.3 million, or $0.88 per diluted share, for the nine months
ended December 31, 2013.
Outlook for Calendar Year
2015
The Company is providing financial guidance for calendar year
2015. For calendar year 2015, the Company expects adjusted revenue
to be in a range of approximately $780
million to $800 million, adjusted EBITDA to be in a range of
approximately $170 million to $180
million, and non-GAAP earnings per diluted share to be in a
range of approximately $1.22 to
$1.35. For calendar year 2015, the Company expects
stock-based compensation expense to be approximately $32.5 million, debt expense to be approximately
$27.0 million, amortization from
acquisition-related intangible assets to be approximately
$31 million, and amortization from
non-acquisition related assets to be approximately $47 million. For calendar year 2015, the Company
expects capital expenditures to be in a range of approximately
$60 million to $65 million and an
effective tax rate in a range of approximately 45% to
47%.
Non-GAAP Financial Measures
This press release and the accompanying tables present
information about the Company's adjusted EBITDA, adjusted net
income, and non-GAAP earnings per diluted share, which are non-GAAP
financial measures provided as a complement to the results provided
in accordance with accounting principles generally accepted in
the United States of America
("GAAP"). The term "adjusted EBITDA" for the three and nine months
ended December 31, 2014 and 2013
refers to net income attributable to common stockholders before
adjustment for the items set forth in the first table. The term
"adjusted net income" for the three and nine months ended
December 31, 2014 and 2013 refers to
net income attributable to common stockholders excluding the net of
tax effect of the items set forth in the second table below. The
term "non-GAAP earnings per diluted share" for the three and nine
months ended December 31, 2014 and
2013 refers to earnings per diluted share excluding the net of tax
effect of the items set forth in the third table below. The term
adjusted revenue for fiscal year 2015 refers to revenue before the
effect of the fair value adjustment to the acquired deferred
revenue of Royall & Company in accordance with purchase
accounting.
A reconciliation of the foregoing historical non-GAAP financial
measures to the most directly comparable historical GAAP financial
measures is provided below for each of the periods indicated. It is
not practicable to provide a reconciliation of forecasted adjusted
EBITDA or non-GAAP earnings per diluted share to the most directly
comparable GAAP financial measures because certain items required
for the forecast of such GAAP financial measures, including fair
value adjustments to acquisition-related earn-out liabilities,
equity in loss of unconsolidated entity, and gains and losses on
investment in common stock warrants, cannot reasonably be estimated
or predicted at this time.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$ (4,990)
|
|
$ 3,771
|
|
$ (1,677)
|
|
$ 16,465
|
Equity in loss of
unconsolidated entities
|
3,193
|
|
1,413
|
|
6,540
|
|
3,320
|
Accretion of
non-controlling interest to redemption value
|
(637)
|
|
—
|
|
6,253
|
|
—
|
Provision for income
taxes
|
(869)
|
|
3,170
|
|
3,774
|
|
12,311
|
Other expense
(income), net
|
1,186
|
|
(360)
|
|
1,327
|
|
(1,974)
|
Depreciation and
amortization
|
11,237
|
|
8,712
|
|
29,994
|
|
21,952
|
Write-off of
capitalized software
|
2,086
|
|
—
|
|
2,086
|
|
—
|
Acquisition and
similar transaction charges
|
5,264
|
|
—
|
|
5,532
|
|
573
|
Fair value
adjustments to acquisition-related earn-out liabilities
|
(100)
|
|
—
|
|
(600)
|
|
(250)
|
Vacation accrual
adjustment
|
—
|
|
—
|
|
850
|
|
—
|
Stock-based
compensation expense
|
6,249
|
|
4,728
|
|
17,965
|
|
13,794
|
Adjusted EBITDA
|
$ 22,619
|
|
$ 21,434
|
|
$ 72,044
|
|
$ 66,191
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$ (4,990)
|
|
$ 3,771
|
|
$ (1,677)
|
|
$ 16,465
|
Equity in loss of
unconsolidated entities
|
3,193
|
|
1,413
|
|
6,540
|
|
3,320
|
Accretion of
non-controlling interest to redemption value
|
(637)
|
|
—
|
|
6,253
|
|
—
|
Amortization of
acquisition-related intangibles, net of tax
|
1,984
|
|
1,424
|
|
5,697
|
|
3,790
|
Write-off of
capitalized software, net of tax
|
1,537
|
|
—
|
|
1,537
|
|
—
|
Acquisition and
similar transaction charges, net of tax
|
3,880
|
|
—
|
|
4,042
|
|
352
|
Fair value
adjustments to acquisition-related earn-out liabilities, net of
tax
|
(74)
|
|
—
|
|
(501)
|
|
(154)
|
Loss on investment in
common stock warrants, net of tax
|
—
|
|
—
|
|
108
|
|
—
|
Vacation accrual
adjustment, net of tax
|
—
|
|
—
|
|
777
|
|
—
|
Stock-based
compensation expense, net of tax
|
4,605
|
|
2,908
|
|
13,599
|
|
8,484
|
Adjusted net
income
|
$ 9,498
|
|
$ 9,516
|
|
$ 36,375
|
|
$ 32,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common shareholders per share - Diluted
|
$ (0.14)
|
|
$ 0.10
|
|
$ (0.05)
|
|
$ 0.45
|
Equity in loss of
unconsolidated entities
|
0.09
|
|
0.04
|
|
0.18
|
|
0.09
|
Accretion of
non-controlling interest to redemption value
|
(0.02)
|
|
—
|
|
0.18
|
|
—
|
Amortization of
acquisition-related intangibles, net of tax
|
0.06
|
|
0.04
|
|
0.16
|
|
0.10
|
Write-off of
capitalized software, net of tax
|
0.04
|
|
—
|
|
0.04
|
|
—
|
Acquisition and
similar transaction charges, net of tax
|
0.11
|
|
—
|
|
0.11
|
|
0.01
|
Fair value
adjustments to acquisition-related earn-out liabilities, net of
tax
|
(0.01)
|
|
—
|
|
(0.01)
|
|
—
|
Loss on investment in
common stock warrants, net of tax
|
—
|
|
—
|
|
—
|
|
—
|
Vacation accrual
adjustment, net of tax
|
—
|
|
—
|
|
0.02
|
|
—
|
Stock-based
compensation expense, net of tax
|
0.13
|
|
0.08
|
|
0.37
|
|
0.23
|
Non-GAAP earnings per
diluted share
|
$ 0.26
|
|
$ 0.26
|
|
$ 1.00
|
|
$ 0.88
|
Web and Conference Call Information
As previously announced, the Company will hold a conference call
to discuss its third quarter performance this evening, February 11, 2015, at 5:30
p.m. Eastern Time. The conference call will be available via
live webcast on the Company's website at www.advisory.com/IR. To
participate by telephone, the dial-in number is 888.336.7150.
Participants are advised to dial in at least five minutes prior to
the call to register. The webcast will be archived for seven days
from 8:00 p.m. Eastern Time on
Wednesday, February 11, 2015, until
11:00 p.m. Eastern Time on
Wednesday, February 18, 2015.
About The Advisory Board Company
The Advisory Board Company is a global technology, research, and
services firm partnering with 5,000 organizations and more than
230,000 leaders across health care and higher education. Through
its innovative membership model, the Company collaborates with
executives and their teams to elevate performance and solve their
most pressing challenges. The Company provides strategic guidance,
actionable insights, web-based software solutions, and
comprehensive implementation and management services. For more
information, visit the firm's website, www.advisory.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements, including the Company's expectations regarding
its revenue, adjusted EBITDA, non-GAAP earnings per diluted share,
stock-based compensation expense, debt expense, amortization from
acquisition-related intangible assets, amortization from
non-acquisition related intangible assets and effective tax rate
for calendar year 2015 are based on information available to the
Company as of February 11, 2015, the
date of this news release, as well as the Company's current
projections, forecasts, and assumptions, and are subject to risks
and uncertainties. You are hereby cautioned that these statements
may be affected by certain factors, including those set forth
below. Consequently, actual operations and results may differ
materially from the results discussed or implied in the
forward-looking statements, and reported results should not be
considered as an indication of future performance. Factors that
could cause actual results to differ materially from those
indicated or implied by the forward-looking statements include,
among others, changes in the financial condition of the health care
industry, our dependence on renewal of membership-based services,
the need to attract new business and retain current members and
qualified personnel, new product development, competition, risks
associated with the Company's software tools and management and
advisory services, risks relating to privacy, information security,
and other laws and standards related to the health care and
education industries, maintaining our third-party provider
relationships and strategic alliances, our ability to license
technology from third parties, impairment of goodwill, our level of
indebtedness, various factors related to income and other taxes,
and any failure to recognize the anticipated benefits of our
acquisition of Royall Acquisition Co., as well as other risks and
uncertainties described in the Company's Annual Report on Form 10-K
for the fiscal year ended March 31, 2014 and in our subsequent
filings with the Securities and Exchange Commission, which are
available for review at the Securities and Exchange Commission's
website at www.sec.gov. Additional information will also be set
forth in the Company's Report on Form 10-KT for the transition
period ended December 31, 2014 to be filed with the Securities
and Exchange Commission.
Accordingly, readers are cautioned not to place undue reliance
on the forward-looking statements made in this news release, which
speak only as of the date of this news release. The Company does
not undertake to update any of its forward-looking statements,
whether as a result of circumstances or events that arise after the
date they are made, new information, or otherwise.
THE ADVISORY BOARD
COMPANY
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
AND OTHER
OPERATING STATISTICS
|
(In
thousands, except per share data)
|
|
|
|
|
Three Months
Ended
|
|
Selected
|
|
Nine Months
Ended
|
|
Selected
|
|
|
|
December
31,
|
|
Growth
|
|
December
31,
|
|
Growth
|
|
|
|
2014
|
|
2013
|
|
Rates
|
|
2014
|
|
2013
|
|
Rates
|
Statements
of Income
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 150,188
|
|
$ 131,038
|
|
14.6%
|
|
$ 436,228
|
|
$ 382,595
|
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services, excluding depreciation and amortization (1)
(2)
|
81,807
|
|
69,521
|
|
|
|
230,103
|
|
205,328
|
|
|
Member
relations and marketing (1)
|
27,803
|
|
25,500
|
|
|
|
81,171
|
|
69,886
|
|
|
General and
administrative (1) (3) (4)
|
29,372
|
|
19,430
|
|
|
|
76,657
|
|
55,426
|
|
|
Depreciation
and amortization (5)
|
11,237
|
|
8,712
|
|
|
|
29,994
|
|
21,952
|
|
|
Write-off of
capitalized software
|
2,086
|
|
-
|
|
|
|
2,086
|
|
-
|
|
|
Operating
income
|
(2,117)
|
|
7,875
|
|
|
|
16,217
|
|
30,003
|
|
|
Other (expense)
income, net (6)
|
(1,186)
|
|
360
|
|
|
|
(1,327)
|
|
1,974
|
|
|
(Loss) income before
provision for income taxes and equity in loss of unconsolidated
entities
|
(3,303)
|
|
8,235
|
|
|
|
14,890
|
|
31,977
|
|
|
Provision for
income taxes
|
869
|
|
(3,170)
|
|
|
|
(3,774)
|
|
(12,311)
|
|
|
Equity in loss
of unconsolidated entities
|
(3,193)
|
|
(1,413)
|
|
|
|
(6,540)
|
|
(3,320)
|
|
|
Net (loss)
income before allocation to noncontrolling interest
|
(5,627)
|
|
3,652
|
|
|
|
4,576
|
|
16,346
|
|
|
Net loss and
accretion to redemption value attributable to noncontrolling
interest (7)
|
637
|
|
119
|
|
|
|
(6,253)
|
|
119
|
|
|
Net (loss) income
attributable to common stockholders
|
$ (4,990)
|
|
$ 3,771
|
|
|
|
$ (1,677)
|
|
$ 16,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to common stockholders per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ (0.14)
|
|
$
0.10
|
|
|
|
$ (0.05)
|
|
$
0.46
|
|
|
|
Diluted
|
$ (0.14)
|
|
$
0.10
|
|
|
|
$ (0.05)
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
36,037
|
|
36,063
|
|
|
|
36,213
|
|
35,812
|
|
|
|
Diluted
|
36,037
|
|
37,112
|
|
|
|
36,213
|
|
36,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
Value (at end of period)
|
$ 601,842
|
|
$ 522,532
|
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages
of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services, excluding depreciation and amortization (1)
(2)
|
54.5%
|
|
53.1%
|
|
|
|
52.7%
|
|
53.7%
|
|
|
Member
relations and marketing (1)
|
18.5%
|
|
19.5%
|
|
|
|
18.6%
|
|
18.3%
|
|
|
General and
administrative (1) (3) (4)
|
19.6%
|
|
14.8%
|
|
|
|
17.6%
|
|
14.5%
|
|
|
Depreciation
and amortization (5)
|
7.5%
|
|
6.6%
|
|
|
|
6.9%
|
|
5.7%
|
|
|
Operating
income
|
-1.4%
|
|
6.0%
|
|
|
|
3.7%
|
|
7.8%
|
|
|
Net income
attributable to common stockholders
|
-3.3%
|
|
2.9%
|
|
|
|
-0.4%
|
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts include
stock-based compensation, as follows:
|
|
Cost of
services
|
1,972
|
1,456
|
5,977
|
4,145
|
|
Member relations and
marketing
|
1,126
|
944
|
3,348
|
2,845
|
|
General and
administrative
|
3,151
|
2,328
|
8,640
|
6,804
|
|
|
(2)
|
Amounts include fair
value adjustments of acquisition-related earn-out liabilities, as
follows:
|
|
Cost of
services
|
(100)
|
-
|
(600)
|
(250)
|
|
|
(3)
|
Amounts include
acquisition and transaction related costs, as follows:
|
|
General and
administrative
|
5,264
|
-
|
5,532
|
573
|
|
|
(4)
|
Amounts include
Vacation accrual adjustment in fiscal year as follows:
|
|
General and
administrative
|
-
|
-
|
850
|
-
|
|
|
(5)
|
Amounts include
amortization of acquisition-related intangibles, as
follows:
|
|
Depreciation and
amortization
|
2,692
|
2,315
|
7,566
|
6,163
|
|
|
(6)
|
Amounts include loss
on investment in common stock warrants, as follows:
|
|
Other income,
net
|
-
|
-
|
180
|
-
|
|
|
(7)
|
Amount represents
non-cash charge to accrete redeemable non-controlling interest to
redemption value
|
|
|
637
|
119
|
(6,253)
|
119
|
THE ADVISORY BOARD
COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
|
2014
|
|
2014
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
72,936
|
|
$
23,129
|
Marketable
securities, current
|
|
14,714
|
|
2,452
|
Membership fees
receivable, net
|
|
539,061
|
|
447,897
|
Prepaid expenses
and other current assets
|
|
19,786
|
|
27,212
|
Deferred income
taxes, current
|
|
14,936
|
|
5,511
|
Total current
assets
|
|
661,433
|
|
506,201
|
|
|
|
|
|
Property and
equipment, net
|
|
135,107
|
|
102,457
|
Intangible
assets, net
|
|
38,973
|
|
33,755
|
Deferred
incentive compensation and other charges
|
|
89,010
|
|
86,147
|
Marketable
securities, net of current portion
|
|
-
|
|
161,944
|
Goodwill
|
|
186,895
|
|
129,424
|
Investments in
and advances to unconsolidated entities
|
|
9,316
|
|
15,857
|
Other
non-current assets
|
|
5,370
|
|
5,550
|
Total
assets
|
|
$
1,126,104
|
|
$
1,041,335
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Deferred
revenue, current
|
|
$
501,785
|
|
$
459,827
|
Accounts payable
and accrued liabilities
|
|
80,787
|
|
77,815
|
Accrued
incentive compensation
|
|
32,073
|
|
28,471
|
Total current
liabilities
|
|
614,645
|
|
566,113
|
|
|
|
|
|
Deferred
revenue, net of current portion
|
|
167,014
|
|
127,532
|
Deferred income
taxes, net of current portion
|
|
9,300
|
|
1,556
|
Other long-term
liabilities
|
|
14,233
|
|
8,975
|
Total
liabilities
|
|
805,192
|
|
704,176
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
-
|
|
100
|
The Advisory
Board Company's stockholders' equity:
|
|
|
|
|
Common
stock
|
|
361
|
|
363
|
Additional
paid-in capital
|
|
443,367
|
|
429,932
|
Accumulated
deficit
|
|
(122,898)
|
|
(91,468)
|
Accumulated
other comprehensive (loss) income
|
|
82
|
|
(1,541)
|
Total
stockholders' equity controlling interest
|
|
320,912
|
|
337,286
|
Equity
attributable to noncontrolling interest
|
|
-
|
|
(227)
|
Total
stockholders' equity
|
|
320,912
|
|
337,059
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
$
1,126,104
|
|
$
1,041,335
|
|
|
|
|
|
|
|
|
|
|
THE ADVISORY BOARD
COMPANY
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
Nine Months
Ended December 31,
|
|
|
2014
|
|
2013
|
Cash flows
from operating activities:
|
|
|
|
|
Net income before
allocation to noncontrolling interest
|
|
$
4,576
|
|
$
16,346
|
Adjustments to
reconcile net income before allocation to
|
|
|
|
|
noncontrolling
interest to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
29,994
|
|
21,952
|
Write-off of
capitalized software
|
|
2,086
|
|
-
|
Deferred income
taxes
|
|
(1,071)
|
|
(585)
|
Excess tax
benefits from stock-based awards
|
|
(1,815)
|
|
(16,583)
|
Stock-based
compensation expense
|
|
17,964
|
|
13,794
|
Amortization of
marketable securities premiums
|
|
1,331
|
|
2,020
|
Loss on
investment in common stock warrants
|
|
180
|
|
-
|
Equity in loss
of unconsolidated entities
|
|
6,540
|
|
3,320
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Membership fees
receivable
|
|
(82,689)
|
|
(79,697)
|
Prepaid expenses
and other current assets
|
|
9,827
|
|
16,264
|
Deferred
incentive compensation and other charges
|
|
(2,863)
|
|
(11,548)
|
Deferred
revenue
|
|
78,160
|
|
101,861
|
Accounts payable
and accrued liabilities
|
|
5,311
|
|
3,921
|
Acquisition-related earn-out
payments
|
|
(3,348)
|
|
(2,212)
|
Accrued
incentive compensation
|
|
3,602
|
|
3,877
|
Other long-term
liabilities
|
|
(2,886)
|
|
855
|
Net cash flows
provided by operating activities
|
|
64,899
|
|
73,585
|
|
|
|
|
|
Cash flows
from investing activities:
|
|
|
|
|
Purchases of
property and equipment
|
|
(48,134)
|
|
(35,692)
|
Capitalized
external use software development costs
|
|
(3,826)
|
|
(3,722)
|
Investments in
and loans to unconsolidated entities
|
|
-
|
|
(15,641)
|
Cash paid for
acquisitions, net of cash acquired
|
|
(77,468)
|
|
(46,036)
|
Redemptions of
marketable securities
|
|
151,420
|
|
48,676
|
Purchases of
marketable securities
|
|
-
|
|
(38,762)
|
Net cash flows
provided by (used in) investing activities
|
|
21,992
|
|
(91,177)
|
|
|
|
|
|
Cash flows
from financing activities:
|
|
|
|
|
Proceeds from
issuance of stock from exercise of stock options
|
|
4,294
|
|
17,478
|
Withholding of
shares to satisfy minimum employee tax withholding
|
|
(7,611)
|
|
(5,796)
|
Proceeds from
issuance of stock under employee stock purchase plan
|
|
432
|
|
374
|
Excess tax
benefits from stock-based awards
|
|
1,815
|
|
16,583
|
Purchases of
treasury stock
|
|
(36,014)
|
|
(16,159)
|
Net cash flows
(used in) provided by financing activities
|
|
(37,084)
|
|
12,480
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
49,807
|
|
(5,112)
|
Cash and cash
equivalents, beginning of period
|
|
23,129
|
|
57,829
|
Cash and cash
equivalents, end of period
|
|
$
72,936
|
|
$
52,717
|
|
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20110802/PH45999LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/the-advisory-board-company-reports-results-for-quarter-and-nine-month-period-ended-december-31-2014-300034840.html
SOURCE The Advisory Board Company