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CST: 21/11/2019 09:41:45   

Glowpoint Announces Second Quarter 2019 Results

98 Days ago

DENVER, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Glowpoint, Inc. (NYSE American: GLOW) (“Glowpoint” or the “Company”), a managed service provider of video collaboration and network applications, today announced financial results for the second quarter ended June 30, 2019.

Second Quarter Financial Results:

  • Revenue of $2.4 million, net loss of $0.9 million, and adjusted EBITDA (“AEBITDA”) of negative $0.3 million.  AEBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Information” below for additional information regarding this non-GAAP financial measure, and “GAAP to Non-GAAP Reconciliation” later in this release for a reconciliation of this non-GAAP financial measure to net loss.
  • Working capital of $2.0 million, cash of $1.0 million and no debt as of June 30, 2019.

Second Quarter and Recent Highlights:

  • In July 2019 the Company appointed Jason Adelman and Richard Ramlall to its Board of Directors.
  • In April 2019 the Company regained full compliance with the NYSE American's continued listing standards.
  • In April 2019 the Company and SharedLabs, Inc. mutually agreed to terminate the parties previously announced Merger Agreement. As previously discussed, the Company is continuing to pursue its available remedies in connection with the termination of the Merger Agreement, including the payment by SharedLabs of fees and expenses in connection therewith.

“We maintain a clean balance sheet with $1.0 million in cash and no debt as of June 30, 2019. While the Company continues to implement certain right-sizing initiatives, the primary goal of sourcing and executing a complementary transaction remains at the forefront of our objectives. We are actively exploring a number of potential business development initiatives, including initiatives to leverage our existing service platform into market opportunities that complement our core services while offering expanded value for our current and potential customers,” said Peter Holst, Chairman and CEO of Glowpoint.

Glowpoint’s results from operations and financial condition are more fully discussed in our Quarterly Report on Form 10-Q for the three and six months ended June 30, 2019 on file with the Securities and Exchange Commission (the “SEC”).  Investors are encouraged to carefully review the Company’s Form 10-Q for a complete analysis of its results from operations and financial condition.

About Glowpoint

Glowpoint, Inc. (NYSE American: GLOW) is a managed service provider of video collaboration and network applications. Our services are designed to provide a comprehensive suite of automated and concierge applications to simplify the user experience and expedite the adoption of video as the primary means of collaboration. Our customers include Fortune 1000 companies, along with small and medium sized enterprises in a variety of industries. To learn more please visit www.glowpoint.com

Non-GAAP Financial Information

Adjusted EBITDA (“AEBITDA”), a non-GAAP financial measure, is defined as net loss before depreciation and amortization, income tax expense, stock-based compensation, impairment charges, merger expenses and interest and other expense, net.  AEBITDA is not intended to replace operating loss, net loss, cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles (GAAP). Rather, AEBITDA is an important measure used by management to assess the operating performance of the Company and is used in determining achievement of performance-based stock awards. AEBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Therefore, AEBITDA should be considered in conjunction with net loss and other performance measures prepared in accordance with GAAP, such as operating loss or cash flow provided by (used in) operating activities, and should not be considered in isolation or as a substitute for GAAP measures, such as net loss, operating loss or any other GAAP measure of liquidity or financial performance. A reconciliation of AEBITDA to net loss is shown in the attached schedules.

Forward looking and cautionary statements

This press release and any oral statements made regarding the subject of this release contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Glowpoint assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Glowpoint’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements regarding the Company’s financial performance, the effect of the termination of the Merger Agreement, the pursuit by Glowpoint for the payment of damages by SharedLabs as a result thereof, the Company’s future compliance with the NYSE American’s continued listing standards, and opportunities for increasing shareholder value. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2018 and in other filings made by the Company with the SEC from time to time, including the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2019. Any of these factors could cause Glowpoint’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, Glowpoint can give no assurance that its future results will be as estimated. Glowpoint does not intend to, and disclaims any obligation to, correct, update or revise any information contained herein.

INVESTOR CONTACT:

Investor Relations
Glowpoint, Inc.
+1 303-640-3840
investorrelations@glowpoint.com 
www.glowpoint.com 


GLOWPOINT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value, stated value, and shares)

  June 30, 2019   December 31, 2018
  (Unaudited)    
ASSETS      
Current assets:      
Cash $ 987     $ 2,007  
Accounts receivable, net 1,474     1,371  
Prepaid expenses and other current assets 473     547  
Total current assets 2,934     3,925  
Property and equipment, net 492     728  
Goodwill 2,342     2,795  
Intangibles, net 437     499  
Other assets 63     15  
Total assets $ 6,268     $ 7,962  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 308     $ 222  
Accrued expenses and other liabilities 604     910  
Total current liabilities 912     1,132  
Stockholders’ equity:      
Preferred stock Series A-2, convertible; $.0001 par value; $7,500 stated value; 7,500 shares authorized, 32 shares issued and outstanding and liquidation preference of $327 and $308 at June 30, 2019 and December 31, 2018, respectively      
Preferred stock Series B, convertible; $.0001 par value; $1,000 stated value; 2,800 shares authorized, no shares issued and outstanding and liquidation preference of $0 at June 30, 2019 and 75 shares issued and outstanding and liquidation preference of $75 at December 31, 2018      
Preferred stock Series C, convertible; $.0001 par value; $1,000 stated value; 1,750 shares authorized, 475 shares issued and outstanding and liquidation preference of $475 at June 30, 2019 and 525 shares issued and outstanding and liquidation preference of $525 at December 31, 2018      
Common stock, $.0001 par value; 150,000,000 shares authorized; 5,173,900 issued and 5,092,100 outstanding at June 30, 2019 and 5,113,700 issued and 4,981,200 outstanding at December 31, 2018 1     1  
Treasury stock, 81,800 and 132,500 shares at June 30, 2019 and December 31, 2018, respectively (149 )   (496 )
Additional paid-in capital 184,650     184,998  
Accumulated deficit (179,146 )   (177,673 )
Total stockholders’ equity 5,356     6,830  
Total liabilities and stockholders’ equity $ 6,268     $ 7,962  
 


GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)

  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2019   2018   2019   2018
Revenue $ 2,439     $ 3,293     $ 5,033     $ 6,767  
Operating expenses:              
Cost of revenue (exclusive of depreciation and amortization) 1,644     1,930     3,319     4,077  
Research and development 249     225     462     475  
Sales and marketing 40     43     73     220  
General and administrative 770     1,064     1,882     1,962  
Impairment charges 453     1,525     453     2,175  
Depreciation and amortization 157     185     316     417  
Total operating expenses 3,313     4,972     6,505     9,326  
Loss from operations (874 )   (1,679 )   (1,472 )   (2,559 )
Interest and other expense, net (1 )   (10 )   (1 )   (415 )
Net loss (875 )   (1,689 )   (1,473 )   (2,974 )
Preferred stock dividends 4     3     19     6  
Net loss attributable to common stockholders $ (879 )   $ (1,692 )   $ (1,492 )   $ (2,980 )
               
Net loss attributable to common stockholders per share:              
Basic and diluted net loss per share $ (0.17 )   $ (0.36 )   $ (0.29 )   $ (0.64 )
               
GAAP to Non-GAAP Reconciliation:              
Net loss $ (875 )   $ (1,689 )   $ (1,473 )   $ (2,974 )
Depreciation and amortization 157     185     316     417  
Interest and other expense, net 1     10     1     415  
EBITDA (717 )   (1,494 )   (1,156 )   (2,142 )
Stock-based compensation 24     110     53     159  
Merger expenses (recovery) (87 )       174      
Impairment charges 453     1,525     453     2,175  
Adjusted EBITDA $ (327 )   $ 141     $ (476 )   $ 192  
 


GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)

  Six Months Ended June 30,
  2019   2018
Cash flows from operating activities:      
Net loss $ (1,473 )   $ (2,974 )
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 316     417  
Bad debt expense 9     14  
Amortization of debt discount, net of gain on extinguishment     104  
Stock-based compensation expense 53     159  
Impairment charges 453     2,175  
Changes in operating assets and liabilities:      
Accounts receivable (112 )   (268 )
Prepaid expenses and other current assets 73     168  
Other assets 50      
Accounts payable 86     (34 )
Accrued expenses and other liabilities (423 )   (450 )
Net cash used in operating activities (968 )   (689 )
Cash flows from investing activities:      
Purchases of property and equipment (17 )   (222 )
Net cash used in investing activities (17 )   (222 )
Cash flows from financing activities:      
Principal payments under borrowing arrangements     (1,832 )
Proceeds from Series C Preferred Stock issuance, net of expenses of $223     1,527  
Purchase of treasury stock (35 )   (52 )
Net cash used in financing activities (35 )   (357 )
Decrease in cash and cash equivalents (1,020 )   (1,268 )
Cash at beginning of period 2,007     3,946  
Cash at end of period $ 987     $ 2,678  
       
Supplemental disclosures of cash flow information:      
Cash paid during the period for interest $     $ 318  
       
Non-cash investing and financing activities:      
Accrued preferred stock dividends $ 19     $ 6  
Issuance of common stock for vested restricted stock units $ 382     $  

 

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