Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 30, 2012

 

 

QUINSTREET, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-34628   77-0512121

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

950 Tower Lane, 6th Floor

Foster City, CA 94404

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (650) 578-7700

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On April 30, 2012, we issued a press release announcing our financial results for our fiscal third quarter ended March 31, 2012. A copy of this press release entitled “QuinStreet Reports Fiscal Third Quarter Financial Results” is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is filed herewith:

 

Exhibit Number

  

Description

99.1    Press release dated April 30, 2012 entitled “QuinStreet Reports Fiscal Third Quarter Financial Results”

The information furnished in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    QUINSTREET, INC.
Dated: April 30, 2012     By:  

/s/ Kenneth Hahn

      Kenneth Hahn
      Chief Financial Officer


INDEX TO EXHIBITS

 

Exhibit No.

  

Description

99.1    Press Release dated April 30, 2012.
Press Release

Exhibit 99.1

QuinStreet Reports Fiscal Third Quarter Financial Results

Foster City, CA — April 30, 2012 — QuinStreet, Inc. (NASDAQ: QNST), a leader in vertical marketing and media online, today announced its financial results for the quarter and nine months ended March 31, 2012.

For the third quarter, the Company reported total revenue of $93.0 million, a decrease of 14% over the same quarter last year. For the nine month period, the Company reported total revenue of $284.8 million, a decrease of 8% over the same period of the prior year.

Adjusted EBITDA for the third quarter was $17.3 million, or 19% of revenue. EBITDA results included a $1.4 million unexpected bad debt write-off of receivables due the Company by an agency that became insolvent during the quarter. Excluding this effect, adjusted EBITDA for the third quarter would have been $18.7 million, or 20% of revenue.

Adjusted EBITDA for the nine month period was $57.4 million, or 20% of revenue.

The Company reported GAAP net income of $2.9 million, or $0.06 per diluted share, for the third quarter of 2012. GAAP net income for the nine month period was $12.8 million, or $0.27 per diluted share.

Adjusted net income for the third quarter was $9.5 million, or $0.21 per diluted share, and $0.23 per share excluding the write-off. For the nine month period, adjusted net income was $32.0 million, or $0.67 per diluted share. Adjusted net income excludes stock-based compensation expense and amortization of intangible assets, net of estimated tax.

The Company generated $15.0 million of normalized free cash flow for the third quarter and $44.8 million for the nine month period. Cash flow from operations totaled $17.4 million for the third quarter and $42.4 million for the nine month period.

For the third quarter, revenue for the Education client vertical was $38.9 million, a decrease of 19% compared to the year-ago quarter. Revenue for the Financial Services client vertical was $38.9 million, a decrease of 20% compared to the same quarter last year. Revenue for Other client verticals was $15.3 million, an increase of 39% compared to the year-ago quarter.

Reconciliations of adjusted net income to net income, adjusted EBITDA to net income, and normalized free cash flow to net cash provided by operating activities are included in the accompanying tables.

The Company now expects total fiscal 2012 revenue to be between $360 and $370 million, and revenue and profits to be down year-over-year in fiscal Q4. The Company continues to target an adjusted EBITDA margin of 20% for the full fiscal year.

“We continue to manage through challenges in Education and Financial Services that are creating uncertainty and weighing on our results,” commented Doug Valenti, QuinStreet CEO. “We are focused on strategies and initiatives that we believe will mitigate or overcome the challenges and return us to growth. Digital performance marketing is an early stage, enormous opportunity, and our assets and capabilities are strong. We continue to pursue opportunities that we believe represent substantial growth potential.”

Conference Call

QuinStreet will host a conference call and corresponding live webcast at 2:00 p.m. PT today. To access the conference call, dial 1-866-240-0819 for the U.S. and Canada and 1-973-200-3360 for international callers. The webcast will be available live on the investor relations section of the Company’s website at http://investor.quinstreet.com, and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 5:00 p.m. PT on April 30, 2012 until 11:59 p.m. PT on May 6, 2012 by dialling 1-800-585-8367 in the U.S. and Canada, or 1-404-537-3406 for international callers, using passcode 71119897#. This press release, the financial tables, as well as other supplemental financial information are also available on the investor relations section of the Company’s website at http://investor.quinstreet.com.

Final financial results will be included in the Company’s quarterly report on Form 10-Q, which will be filed with the Securities and Exchange Commission no later than May 10, 2012.


About QuinStreet

QuinStreet, Inc. (Nasdaq:QNST) is one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that meet their needs. For more information, please visit QuinStreet.com.

Non-GAAP Financial Measures

This release and the accompanying tables include a discussion of adjusted EBITDA, adjusted net income, adjusted diluted net income per share, free cash flow and normalized free cash flow, all of which are non-GAAP financial measures that are provided as a complement to results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The term “adjusted EBITDA” refers to a financial measure that we define as net income less provision for taxes, depreciation expense, amortization expense, stock-based compensation expense, interest and other income (expense), net. In the current quarter, we also computed adjusted EBITDA excluding the effect of a bad debt write-off of $1.4 million dollars; the calculation simply removes the effect of that write-off upon the non-GAAP measure (“EBITDA results included a $1.4 million unexpected bad debt write-off of receivables due the Company by an agency that became insolvent during the quarter. Excluding this effect, adjusted EBITDA for the third quarter would have been $18.7 million, or 20% of revenue.”). The term “adjusted net income” refers to a financial measure that we define as net income adjusted for amortization expense and stock-based compensation expense, net of estimated taxes. The term “adjusted diluted net income per share” refers to a financial measure that we define as adjusted net income divided by weighted average diluted shares outstanding. In the current quarter, we also computed adjusted net income per share excluding the effect of a bad debt write-off of $1.4 million dollars; the calculation simply removes the after-tax effect of that write-off upon the non-GAAP measure (“$0.23 per share excluding the write-off”). The term “free cash flow” refers to a financial measure that we define as net cash provided by operating activities, less capital expenditures and internal software development costs. “Normalized free cash flow” refers to free cash flow adjusted for changes in operating assets and liabilities and the impact from excess tax benefits from stock-based compensation. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, our definition of adjusted EBITDA, adjusted net income, adjusted diluted net income per share, free cash flow and normalized free cash flow may not be comparable to the definitions as reported by other companies.

We believe adjusted EBITDA, adjusted net income, adjusted diluted net income per share, free cash flow and normalized free cash flow are relevant and useful information because they provide us and investors with additional measurements to analyze the Company’s operating performance.

Adjusted EBITDA is part of our internal management reporting and planning process and one of the primary measures used by our management to evaluate the operating performance of our business, as well as potential acquisitions. Adjusted EBITDA is useful to us and investors because it provides information related to the Company’s ability to provide cash flow for acquisitions, capital expenditures and working capital requirements. Internally, adjusted EBITDA is used by management for planning purposes, including preparation of internal budgets; to allocate resources to enhance financial performance; to evaluate the effectiveness of operational strategies; and to evaluate the Company’s capacity to fund acquisitions and capital expenditures as well as the capacity to service debt. Adjusted EBITDA is used as a key financial metric in senior management’s annual incentive compensation program. The Company believes that analysts and investors use adjusted EBITDA as a supplemental measurement to evaluate the overall operating performance of companies in its industry and use adjusted EBITDA multiples as a metric for analyzing company valuations. It is also an element of certain maintenance covenants under our debt agreements. In the current quarter, we also provide a computation of adjusted EBITDA excluding the after-tax effect of a bad debt write-off, because it is a historically large write-off and we believe that analysts and investors will want to understand the effect of the write-off upon that non-GAAP measure; hence, we provide the computation for clarity and ease-of-use.

Adjusted net income and adjusted diluted net income per share are useful to us and investors because they present an additional measurement of our financial performance, taking into account depreciation, which we believe is an ongoing cost of doing business, but excluding the impact of certain non-cash expenses (stock-based compensation and amortization of intangible assets). The Company believes that analysts and investors use adjusted net income and adjusted diluted net income per share as supplemental measures to evaluate the overall operating performance of companies in our industry. In the current quarter, we also provide a computation of adjusted net income per share excluding the effect of a bad debt write-off, because it is a historically large write-off and we believe that analysts and investors will want to understand the effect of the write-off upon that non-GAAP measure; hence, we provide the computation for clarity and ease-of-use.


Free cash flow is useful to us and investors because it represents the cash that our business generates from operations, before taking into account cash movements that are non-operational, and is a metric commonly used in our industry to understand the underlying cash generating capacity of a company’s financial model. The measure normalized free cash flow is useful as it removes the fluctuations in operating assets and liabilities that occur in any given quarter due to the timing of payments and therefore helps understand the underlying cash flow of the business as a quarterly metric and the cash flow generation potential of the business model. The Company believes that analysts and investors use free cash flow multiples as a metric for analyzing company valuations in our industry. Free cash flow and normalized free cash flow have certain limitations in that they do not represent the total increase or decrease in the cash balance for the period, nor do they represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate both of these cash flow measures along with our consolidated statement of cash flows and understand any changes in the operating assets and liabilities.

We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.

Legal Notice Regarding Forward Looking Statements

This press release and its attachments contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. Words such as “will, ” “believe, ” “intend, ” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding the Company’s anticipated financial results and strategic and operational plans. The Company’s actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, but are not limited to: the Company’s ability to deliver an adequate rate of growth and manage such growth; the impact of changes in government regulation and industry standards; the Company’s ability to maintain and increase the number of visitors to its websites; the Company’s ability to identify and manage acquisitions; the impact of the current economic climate on the Company’s business; the Company’s ability to attract and retain qualified executives and employees; the Company’s ability to compete effectively against others in the online marketing and media industry; the impact and costs of any failure by the Company to comply with government regulations and industry standards; and costs associated with defending intellectual property infringement and other claims. More information about potential factors that could affect the Company’s business and financial results is contained in the Company’s annual reports on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission (“SEC”). Additional information will also be set forth in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2012, which will be filed with the SEC no later than May 10, 2012. The Company does not intend and undertakes no duty to release publicly any updates or revisions to any forward-looking statements contained herein.


QUINSTREET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

     March 31     June 30,  
     2012     2011  

Assets

    

Current assets

    

Cash and cash equivalents

   $ 77,861      $ 132,290   

Marketable securities

     37,532        34,927   

Accounts receivable, net

     50,030        48,225   

Deferred tax assets

     10,249        10,253   

Prepaid expenses and other assets

     6,041        5,773   
  

 

 

   

 

 

 

Total current assets

     181,713        231,468   

Property and equipment, net

     9,211        8,875   

Goodwill

     238,133        211,856   

Other intangible assets, net

     77,606        65,847   

Deferred tax assets, noncurrent

     5,866        5,866   

Other assets, noncurrent

     1,049        1,012   
  

 

 

   

 

 

 

Total assets

   $ 513,578      $ 524,924   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities

    

Accounts payable

   $ 24,228      $ 23,300   

Accrued liabilities

     28,568        33,238   

Deferred revenue

     2,565        2,531   

Debt

     13,169        10,038   
  

 

 

   

 

 

 

Total current liabilities

     68,530        69,107   

Debt, noncurrent

     94,992        96,010   

Other liabilities, noncurrent

     5,416        4,418   
  

 

 

   

 

 

 

Total liabilities

     168,938        169,535   
  

 

 

   

 

 

 

Stockholders’ equity

    

Common stock

     44        50   

Additional paid-in capital

     224,603        255,689   

Treasury stock

     —          (7,779

Accumulated other comprehensive income

     (185     51   

Retained earnings

     120,178        107,378   
  

 

 

   

 

 

 

Total stockholders’ equity

     344,640        355,389   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 513,578      $ 524,924   
  

 

 

   

 

 

 


QUINSTREET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2012     2011     2012     2011  

Net revenue

   $ 93,023      $ 107,705      $ 284,770      $ 308,903   

Cost of revenue (1)

     72,278        78,578        216,422        222,869   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     20,745        29,127        68,348        86,034   

Operating expenses: (1)

        

Product development

     5,069        6,836        16,245        18,320   

Sales and marketing

     3,394        4,687        11,114        14,097   

General and administrative

     6,239        5,525        16,303        15,190   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     6,043        12,079        24,686        38,427   

Interest income

     31        25        105        139   

Interest expense

     (1,111     (1,091     (3,309     (3,108

Other income (expense), net

     3        66        (121     151   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     4,966        11,079        21,361        35,609   

Provision for taxes

     (2,093     (4,740     (8,561     (14,841
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 2,873      $ 6,339      $ 12,800      $ 20,768   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share

        

Basic

   $ 0.06      $ 0.14      $ 0.28      $ 0.45   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.06      $ 0.13      $ 0.27      $ 0.42   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing net income per share

        

Basic

     44,870        46,792        46,491        45,910   

Diluted

     45,794        50,593        47,584        48,960   

 

(1)        Cost of revenue and operating expenses include stock-based compensation expense as follows:

          

Cost of revenue

   $ 962      $ 1,138      $ 3,338      $ 3,411   

Product development

     637        669        1,979        2,084   

Sales and marketing

     816        918        2,436        3,116   

General and administrative

     781        782        2,338        2,242   


QUINSTREET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2012     2011     2012     2011  

Cash Flows from Operating Activities

        

Net income

   $ 2,873      $ 6,339      $ 12,800      $ 20,768   

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     8,032        7,632        22,657        20,252   

Provision for sales returns and doubtful accounts receivable

     1,589        325        1,557        (143

Stock-based compensation

     3,196        3,507        10,091        10,853   

Excess tax benefits from stock-based compensation

     (49     (1,432     (146     (6,744

Other non-cash adjustments, net

     601        123        1,476        208   

Changes in assets and liabilities, net of effects of acquisitions:

        

Accounts receivable

     (1,068     (609     (656     (486

Prepaid expenses and other assets

     (1,927     4,601        (259     1,896   

Other assets, noncurrent

     (30     (34     (36     133   

Accounts payable

     390        1,312        942        6,567   

Accrued liabilities

     3,461        6,057        (6,826     3,403   

Deferred revenue

     237        507        (256     947   

Other liabilities, noncurrent

     127        531        1,033        923   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     17,432        28,859        42,377        58,577   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities

        

Capital expenditures

     (633     (1,483     (2,017     (4,430

Business acquisitions, net of notes payable and cash acquired

     (23,436     (5,095     (54,639     (91,723

Internal software development costs

     (664     (442     (1,746     (1,322

Purchases of marketable securities

     (15,121     (15,007     (37,807     (33,923

Proceeds from sales and maturities of marketable securities

     16,128        8,484        34,163        8,484   

Other investing activities

     (1     6        29        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (23,727     (13,537     (62,017     (122,914
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities

        

Payments for issuance of common stock

     —          —          —          (106

Proceeds from exercise of common stock options

     1,339        2,966        3,526        12,580   

Proceeds from bank debt

     —          (375     5,884        24,425   

Principal payments on bank debt

     (1,250     (875     (3,875     (2,650

Payment of bank loan upfront fees

     —          —          (1,370     —     

Principal payments on acquisition-related notes payable

     (419     (614     (2,190     (7,725

Excess tax benefits from stock-based compensation

     49        1,432        146        6,744   

Withholding taxes related to restricted stock net share settlement

     (84     —          (346     —     

Repurchases of common stock

     (21,037     —          (36,593     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) / provided by financing activities

     (21,402     2,534        (34,818     33,268   
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     1        7        29        (17

Net decrease in cash and cash equivalents

     (27,696     17,863        (54,429     (31,086

Cash and cash equivalents at beginning of period

     105,557        106,821        132,290        155,770   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 77,861      $ 124,684      $ 77,861      $ 124,684   
  

 

 

   

 

 

   

 

 

   

 

 

 


QUINSTREET, INC.

RECONCILIATION OF NET INCOME TO

ADJUSTED NET INCOME

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2012     2011     2012     2011  

Net income

   $ 2,873      $ 6,339      $ 12,800      $ 20,768   

Amortization of intangible assets

     6,821        6,124        18,769        16,575   

Stock-based compensation

     3,196        3,507        10,091        10,853   

Tax impact of the above items

     (3,348     (3,395     (9,636     (9,818
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 9,542      $ 12,575      $ 32,024      $ 38,378   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted net income per share

   $ 0.21      $ 0.25      $ 0.67      $ 0.78   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing adjusted diluted net income per share

     45,794        50,593        47,584        48,960   

QUINSTREET, INC.

RECONCILIATION OF NET INCOME TO

ADJUSTED NET INCOME

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2012     2011     2012     2011  

Net income

   $ 2,873      $ 6,339      $ 12,800      $ 20,768   

Amortization of intangible assets

     6,821        6,124        18,769        16,575   

Stock-based compensation

     3,196        3,507        10,091        10,853   

Bad debt write-off

     1,435        —          1,435        —     

Tax impact of the above items

     (3,822     (3,395     (10,210     (9,818
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 10,503      $ 12,575      $ 32,885      $ 38,378   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted net income per share

   $ 0.23      $ 0.25      $ 0.69      $ 0.78   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing adjusted diluted net income per share

     45,794        50,593        47,584        48,960   


QUINSTREET, INC.

RECONCILIATION OF NET INCOME TO

ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
     Nine Months Ended
March 31,
 
     2012      2011      2012      2011  

Net income

   $ 2,873       $ 6,339       $ 12,800       $ 20,768   

Interest and other income (expense), net

     1,077         1,000         3,325         2,818   

Provision for taxes

     2,093         4,740         8,561         14,841   

Depreciation and amortization

     8,032         7,632         22,657         20,252   

Stock-based compensation

     3,196         3,507         10,091         10,853   
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 17,271       $ 23,218       $ 57,434       $ 69,532   
  

 

 

    

 

 

    

 

 

    

 

 

 

QUINSTREET, INC.

RECONCILIATION OF NET INCOME TO

ADJUSTED EBITDA

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
     Nine Months Ended
March 31,
 
     2012      2011      2012      2011  

Net income

   $ 2,873       $ 6,339       $ 12,800       $ 20,768   

Interest and other income (expense), net

     1,077         1,000         3,325         2,818   

Provision for taxes

     2,093         4,740         8,561         14,841   

Depreciation and amortization

     8,032         7,632         22,657         20,252   

Stock-based compensation

     3,196         3,507         10,091         10,853   

Bad debt write-off

     1,435         —           1,435         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 18,706       $ 23,218       $ 58,869       $ 69,532   
  

 

 

    

 

 

    

 

 

    

 

 

 


QUINSTREET, INC.

RECONCILIATION OF NET CASH PROVIDED BY

OPERATING ACTIVITIES TO FREE CASH FLOW

AND NORMALIZED FREE CASH FLOW

(In thousands)

(Unaudited)

 

     Three Months Ended
March 31,
    Nine Months Ended
March 31,
 
     2012     2011     2012     2011  

Net cash provided by operating activities

   $ 17,432      $ 28,859      $ 42,377      $ 58,577   

Capital expenditures

     (633     (1,477     (2,017     (4,424

Internal software development costs

     (664     (442     (1,746     (1,322
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ 16,135      $ 26,940      $ 38,614      $ 52,831   
  

 

 

   

 

 

   

 

 

   

 

 

 

Changes in operating assets and liabilities,

        

less excess tax benefits from stock-based compensation

     (1,141     (10,933     6,204        (6,639
  

 

 

   

 

 

   

 

 

   

 

 

 

Normalized free cash flow

   $ 14,994      $ 16,007      $ 44,818      $ 46,192   
  

 

 

   

 

 

   

 

 

   

 

 

 

Contact Information:

Erica Abrams or Matthew Hunt

(415) 217-5864 or (415) 489-2194

erica@blueshirtgroup.com

matt@blueshirtgroup.com