Prepress

Monotype Announces First Quarter 2013 Results

Wednesday 08. May 2013 - Company Reports Record Revenue and Profits

Monotype Imaging Holdings Inc. (Nasdaq: TYPE), a leading provider of typefaces, technology and expertise for creative applications and consumer devices, today announced financial results for the first quarter ended March 31, 2013.
First quarter 2013 highlights
Revenue for the quarter was a record $42.0 million, a 22 percent increase year-over-year.
Operating income was $13.8 million, or 33 percent of revenue.
Non-GAAP net adjusted EBITDA was $18.6 million, or 44 percent of revenue.
GAAP earnings per diluted share of $0.22 and non-GAAP earnings per diluted share of $0.30 increased 47 percent and 36 percent, respectively, year over year.
“Monotype had a strong first quarter, thanks to continued demand for our type solutions that deliver high-quality experiences in today’s multi-screen world,” said Doug Shaw, president and chief executive officer. “Record results in both our Creative Professional and OEM businesses were driven by strong e-commerce revenue, continued momentum in our Web font business, and robust sales of consumer electronics devices. Moving forward, we remain focused on providing customers with significant value in all phases of content creation, distribution and consumption.”
“Our first quarter was highlighted by record revenues and profits. We are delivering healthy profit and cash flow, even as we diversify our business, allowing us to invest for the future and fund additional return for our shareholders,” said Scott Landers, senior vice president and chief financial officer.
First quarter 2013 operating results
Revenue for the quarter was $42.0 million, up 22 percent compared to $34.3 million for the first quarter of 2012. OEM revenue was $26.7 million, increasing eight percent from the first quarter of 2012. Creative Professional revenue was $15.3 million, increasing 58 percent from the same period in 2012.
Net income was $8.6 million, compared to $5.7 million in the first quarter of 2012. Earnings per diluted share were $0.22, compared to $0.15 in the same period in 2012.
Non-GAAP net income, which excludes the amortization of intangible assets and stock-based compensation expense, net of taxes, was $11.6 million, compared to $8.1 million in the first quarter of 2012. Non-GAAP earnings per diluted share were $0.30, compared to $0.22 in the same period in 2012.
Non-GAAP net adjusted EBITDA was $18.6 million, or 44 percent of revenue, compared to $14.4 million or 42 percent of revenue in the first quarter of 2012.
A reconciliation of GAAP measures to non-GAAP measures for the three months ended March 31, 2013 and 2012 is provided in the financial tables that accompany this release.
Cash, cash flow and debt balances
Monotype had cash and cash equivalents of $43.0 million as of March 31, 2013, compared to $39.3 million as of Dec. 31, 2012, and $28.1 million as of March 31, 2012. The company generated $6.7 million of cash from operations in the first quarter of 2013.
Monotype’s outstanding debt was $12.3 million as of March 31, 2013, a decrease from $22.3 million as of Dec. 31, 2012, and $52.3 million as of March 31, 2012.
Quarterly dividend
Monotype’s most recent dividend payment of $0.06 per share was paid on April 19, 2013, to shareholders of record on April 1, 2013, and represented a 50 percent increase per share from the previous payment. The next dividend payment of $0.06 per share will be paid on July 19, 2013, to shareholders of record as of July 1, 2013.
Financial outlook
For the second quarter of 2013, Monotype expects revenue in the range of $40.5 million to $42.0 million. The company anticipates second quarter 2013 non-GAAP net adjusted EBITDA in the range of $16.5 million to $18.0 million, GAAP earnings per diluted share in the range of $0.18 to $0.21 and non-GAAP earnings per diluted share in the range of $0.27 to $0.30.
Monotype is reiterating its previously issued, full year 2013 guidance. The company expects revenue in the range of $165.0 million to $169.0 million. The company anticipates full year 2013 non-GAAP net adjusted EBITDA in the range of $69.5 million to $72.5 million, GAAP earnings per diluted share in the range of $0.81 to $0.86 and non-GAAP earnings per diluted share in the range of $1.13 to $1.18.