Document


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): November 8, 2018

____________________________________________________
CHANNELADVISOR CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________________________

Delaware
 
001-35940
 
56-2257867
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)

3025 Carrington Mill Boulevard
Morrisville, NC 27560
(Address of principal executive offices, including zip code)

(919) 228-4700
(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)
____________________________________________________

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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  x






Item 2.02            Results of Operations and Financial Condition.
On November 8, 2018, ChannelAdvisor Corporation (the “Registrant”) issued a press release announcing its financial results for the quarter ended September 30, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. 
In accordance with General Instruction B.2. of Form 8-K, the information in this Item 2.02, and Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any of the Registrant's filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any incorporation language in such a filing, except as expressly set forth by specific reference in such a filing.
Item 9.01            Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number
Exhibit Description
99.1






SIGNATURES

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 hereunto duly authorized.

 
 
 
CHANNELADVISOR CORPORATION
 
 
 
 
 
 
By:
/s/ Mark E. Cook
Date:
November 8, 2018
 
Mark E. Cook
 
 
 
Chief Financial Officer





Exhibit
Exhibit 99.1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12539577&doc=3

ChannelAdvisor Reports Third Quarter 2018 Results
Revenue and adjusted EBITDA exceed expectations for the third consecutive quarter


Research Triangle Park, NC - November 8, 2018 - ChannelAdvisor Corporation (NYSE: ECOM), a leading provider of cloud-based e-commerce solutions that enable brands and retailers to increase global sales, today reported financial results for the quarter ended September 30, 2018.

“ChannelAdvisor delivered its third consecutive quarter of exceeding expectations for revenue and adjusted EBITDA,” said David Spitz, Chief Executive Officer of ChannelAdvisor. “Our third quarter top-line results were driven by continued strength in GMV, improved revenue retention and increased strategic partnership revenue, which, when combined with our efforts to control our expenses, led to adjusted EBITDA out-performance as well.”  
 
“We remain committed to delivering revenue growth and margin expansion. With a product strategy focused on initiatives to help brands and manufacturers effectively compete in the rapidly evolving digital economy, we believe we have positioned ourselves to capitalize on serving this key customer segment. We believe this strategy, coupled with our efforts to improve direct sales efficiencies and expand indirect channels, provides us with a solid framework to increase sales and profitability.”
Third Quarter 2018 Financial Results
Revenue: Total revenue was $32.3 million for the third quarter 2018, an increase of 7.4% from the year-ago period. Fixed subscription fees were $25.7 million, or 79.5% of total revenue, an increase of 7.6% from the year-ago period. Variable subscription fees were $6.6 million, or 20.5% of total revenue, an increase of 6.5% from the year-ago period.
Gross Profit: GAAP gross profit was $24.7 million, representing a 76.5% gross margin for the third quarter 2018, compared with $22.8 million and 75.7%, respectively, for the year-ago period. Non-GAAP gross profit was $25.0 million, representing a 77.4% non-GAAP gross margin for the third quarter 2018, compared with $23.1 million and 76.7%, respectively, for the year-ago period.
Net Loss: GAAP net loss was $(2.3) million for the third quarter 2018, compared with $(4.1) million for the year-ago period. GAAP net loss per share was $(0.08) based on 27.3 million weighted average shares outstanding for the third quarter 2018, compared with $(0.15) and 26.4 million shares then outstanding, respectively, for the year-ago period. Non-GAAP net income, which excludes non-cash stock-based compensation, was $0.7 million for the third quarter 2018, or $0.03 per share, compared with non-GAAP net loss of $(1.2) million, or $(0.05) per share, for the year-ago period.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was $2.3 million for the third quarter 2018, compared with $0.4 million for the year-ago period. Adjusted EBITDA excludes depreciation, amortization, income tax expense, interest income (expense) and stock-based compensation expense.



Exhibit 99.1

Cash: Cash and cash equivalents totaled $48.9 million as of September 30, 2018, compared with $53.4 million as of December 31, 2017. Cash generated from operations was $1.1 million for the nine months ended September 30, 2018, compared with cash used in operations of $(2.2) million for the year-ago period.
Operating Highlights
New and Expanded Marketplaces Partnerships: Increased the number of supported marketplaces to 111 as of the end of third quarter 2018 from 80 as of the end of the third quarter 2017, and significantly expanded strategic alliance with Google to support its new program, Shopping Actions, granting brands greater leverage in the marketplace.
New Strategic Logistics Partnership: Established strategic partnership with DHL, providing new opportunities for brands and retailers to expand sales in foreign markets through DHL’s fulfillment and shipping to customers around the world.
Average Revenue per Customer (ARPC): ARPC, calculated on a trailing twelve-month basis, was $46,073 for the twelve months ended September 30, 2018, an increase of 10.4% from the year-ago period reflecting continued progress in ChannelAdvisor’s strategy of focusing on larger customers.
Customer Count: Total customer count was 2,815 at the end of the third quarter 2018, compared with 2,902 customers at the end of the third quarter 2017.
Financial Outlook
Based on the information available as of today, ChannelAdvisor is issuing guidance for its fourth quarter 2018 and updating guidance for the full year 2018 from amounts previously provided on August 9, 2018.
(in millions, except percentages)
Q4 2018
 
Full Year 2018 (updated)
Revenue
$34.2 - $35.0
 
$130.6 - $131.4
   Y/Y Growth
0% - 3%
 
7%
Adjusted EBITDA
$3.2 - $4.0
 
$7.6 - $8.4
   As a Percentage of Revenue (at the midpoint)
10%
 
6%
Stock-based Compensation Expense
$2.7 - $3.1
 
$10.7 - $11.1
Weighted Average Shares Outstanding
27.3
 
27.2
Refer to the "Adjusted EBITDA Guidance Reconciliation" table included with the financial tables at the end of this release for the reconciliation to the most comparable GAAP financial measure.
Conference Call Information
Event:
ChannelAdvisor Third Quarter 2018 Financial Results Conference Call
Date:
Thursday, November 8, 2018
Time:
4:30 p.m. ET
Live Call:
(855) 638-4821, Passcode 6078882, Toll free
 
(704) 288-0612, Passcode 6078882, Toll
Webcast:
http://ir.channeladvisor.com (live and replay)






Exhibit 99.1

Key Financial and Operating Metrics
Average revenue per customer is revenue for a particular period divided by the average monthly number of customers during the period, which is calculated by taking the sum of the number of customers at the end of each month in the period and dividing by the number of months in the period.
Number of customers includes all customers who subscribe to at least one of the company's solutions.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: non-GAAP net income (loss) and adjusted EBITDA.
ChannelAdvisor believes that these non-GAAP measures of financial results provide useful information to management and investors relating to ChannelAdvisor’s 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 analyses, and for budgeting and planning purposes. The company 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, and that it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making.
Management of the company 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 that are required by GAAP to be recorded in the company’s financial statements. In order to compensate for these limitations, management presents non-GAAP financial measures together with GAAP results. Non-GAAP measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. 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. ChannelAdvisor urges investors to review the reconciliation and not to rely on any single financial measure to evaluate the company’s business. In addition, other companies, including companies in our industry, may calculate similarly named non-GAAP measures differently than we do, which limits their usefulness in comparing our financial results with theirs.
About ChannelAdvisor
ChannelAdvisor (NYSE: ECOM) is a leading e-commerce cloud platform whose mission is to connect and optimize the world’s commerce. For nearly two decades, ChannelAdvisor has helped brands and retailers worldwide improve their online performance by expanding sales channels, connecting with consumers around the world, optimizing their operations for peak performance and providing actionable analytics to improve competitiveness. Thousands of customers depend on ChannelAdvisor to securely power their sales and optimize fulfillment on channels such as Amazon, eBay, Facebook, Google, Walmart and hundreds more. For more information, visit channeladvisor.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, statements regarding our financial outlook and guidance for the fourth quarter and full year 2018 and expectations regarding our growth and that of the e-commerce industry. 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 current beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that



Exhibit 99.1

are beyond ChannelAdvisor’s control. ChannelAdvisor’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in ChannelAdvisor’s Annual Report on Form 10-K for the year ended December 31, 2017 and its Quarterly Report on Form 10-Q that will be filed for the quarter ended September 30, 2018, as well as other documents that may be filed by the company from time to time with the Securities and Exchange Commission. These documents are available on the ‘SEC Filings’ section of the Investor Relations page of our website at http://ir.channeladvisor.com. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our reliance for a significant portion of our revenue on sales by our customers on the Amazon and eBay marketplaces and through advertisements on Google; our ability to respond to rapid changes in channel technologies or requirements; our ability to compete successfully against current and future competitors, which could include the channels themselves; our reliance in part on a pricing model under which a portion of the subscription fees we receive from customers is variable, based upon the amount of transaction volume that those customers process through our platform; our reliance on non-redundant data centers and cloud computing providers to deliver our SaaS solutions; the potential that the e-commerce market does not grow, or grows more slowly than we expect, particularly on the channels that our solutions support; challenges and risks associated with our increasing international operations; and security or privacy breaches. The forward-looking statements included in this press release represent ChannelAdvisor’s views as of the date of this press release. ChannelAdvisor undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, these forward-looking statements should not be relied upon as representing ChannelAdvisor’s views as of any date subsequent to the date of this press release.
###


Investor Contact:
Traci Mangini
ChannelAdvisor Corporation
traci.mangini@channeladvisor.com
919-228-4886

Media Contact:
Tamara Gibbs
ChannelAdvisor Corporation
tamara.gibbs@channeladvisor.com
919-249-9798




ChannelAdvisor Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
 

September 30, 2018

December 31, 2017
 
(unaudited)

 
Assets



Current assets:



Cash and cash equivalents
$
48,890


$
53,422

Accounts receivable, net of allowance of $945 and $609 as of September 30, 2018 and December 31, 2017, respectively
21,712


27,452

Prepaid expenses and other current assets
8,569


16,462

Total current assets
79,171


97,336

Property and equipment, net
12,964


10,877

Goodwill
23,486


23,486

Intangible assets, net
2,046


2,503

Deferred contract costs, net of current portion

10,425

 

Long-term deferred tax assets, net
4,536

 
5,550

Other assets
1,490


759

Total assets
$
134,118


$
140,511

Liabilities and stockholders' equity



Current liabilities:



Accounts payable
$
1,868


$
7,243

Accrued expenses
9,258


12,611

Deferred revenue
25,651


27,143

Other current liabilities
4,243


4,477

Total current liabilities
41,020


51,474

Long-term capital leases, net of current portion
1,404


641

Lease incentive obligation
2,348

 
3,328

Other long-term liabilities
2,530


3,157

Total liabilities
47,302


58,600

Commitments and contingencies





Stockholders' equity:



Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of September 30, 2018 and December 31, 2017

 

Common stock, $0.001 par value, 100,000,000 shares authorized, 27,311,469 and 26,601,626 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively
27


27

Additional paid-in capital
269,149


262,805

Accumulated other comprehensive loss
(1,521
)

(789
)
Accumulated deficit
(180,839
)

(180,132
)
Total stockholders' equity
86,816


81,911

Total liabilities and stockholders' equity
$
134,118


$
140,511







ChannelAdvisor Corporation and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenue
$
32,324

 
$
30,097

 
$
96,429

 
$
88,430

Cost of revenue (1) (2) (3)
7,606

 
7,309

 
21,934

 
22,149

Gross profit
24,718

 
22,788

 
74,495

 
66,281

Operating expenses (1) (2):
 
 
 
 
 
 
 
Sales and marketing (3)
14,921

 
14,805

 
45,785

 
44,993

Research and development
5,350

 
5,760

 
16,989

 
15,878

General and administrative
6,688

 
6,344

 
19,847

 
21,552

Total operating expenses
26,959

 
26,909

 
82,621

 
82,423

Loss from operations
(2,241
)
 
(4,121
)
 
(8,126
)
 
(16,142
)
Other income (expense):
 
 
 
 
 
 
 
Interest income (expense), net
120

 
67

 
351

 
149

Other income (expense), net
22

 
36

 
2

 
106

Total other income (expense)
142

 
103

 
353

 
255

Loss before income taxes
(2,099
)
 
(4,018
)
 
(7,773
)
 
(15,887
)
Income tax expense
188

 
37

 
435

 
209

Net loss
$
(2,287
)
 
$
(4,055
)
 
$
(8,208
)
 
$
(16,096
)
Net loss per share:
 
 
 
 
 
 
 
Basic and diluted
$
(0.08
)
 
$
(0.15
)
 
$
(0.30
)
 
$
(0.61
)
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic and diluted
27,294,134

 
26,439,830

 
27,073,332

 
26,293,650

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes stock-based compensation as follows:
 
 
 
 
 
 
 
Cost of revenue (3)
$
298

 
$
298

 
$
607

 
$
864

Sales and marketing (3)
1,003

 
931

 
2,483

 
2,849

Research and development
581

 
588

 
1,585

 
1,659

General and administrative
1,092

 
1,023

 
3,348

 
3,760

 
$
2,974

 
$
2,840

 
$
8,023

 
$
9,132

 
 
 
 
 
 
 
 
(2) Includes depreciation and amortization as follows:
 
 
 
 
 
 
 
Cost of revenue (3)
$
919

 
$
949

 
$
2,671

 
$
3,099

Sales and marketing (3)
224

 
267

 
658

 
771

Research and development
92

 
102

 
280

 
324

General and administrative
315

 
287

 
900

 
847

 
$
1,550

 
$
1,605

 
$
4,509

 
$
5,041


(3) Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on our reported operating loss or net loss for the period.





ChannelAdvisor Corporation and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
 
 
Nine Months Ended September 30,
 
2018
 
2017
Cash flows from operating activities
 
 
 
Net loss
$
(8,208
)
 
$
(16,096
)
Adjustments to reconcile net loss to cash and cash equivalents provided by (used in) operating activities:
 
 
 
Depreciation and amortization
4,509

 
5,041

Bad debt expense
1,036

 
271

Stock-based compensation expense
8,023

 
9,132

Deferred income taxes
373

 
154

Other items, net
(667
)
 
(653
)
Changes in assets and liabilities, net of effects from acquisition:
 
 
 
Accounts receivable
4,451

 
(1,674
)
Prepaid expenses and other assets
10,588

 
(1,370
)
Deferred contract costs
(5,325
)
 

Accounts payable and accrued expenses
(11,164
)
 
(51
)
Deferred revenue
(2,514
)
 
3,042

Cash and cash equivalents provided by (used in) operating activities
1,102

 
(2,204
)
Cash flows from investing activities
 
 
 
Purchases of property and equipment
(1,586
)
 
(2,427
)
Payment of internal-use software development costs
(579
)
 
(224
)
Acquisition, net of cash acquired

 
(2,177
)
Cash and cash equivalents used in investing activities
(2,165
)
 
(4,828
)
Cash flows from financing activities
 
 
 
Repayment of capital leases
(2,092
)
 
(2,586
)
Proceeds from exercise of stock options
1,086

 
625

Payment of statutory tax withholding related to net-share settlement of restricted stock units
(2,130
)
 
(2,581
)
Cash and cash equivalents used in financing activities
(3,136
)
 
(4,542
)
Effect of currency exchange rate changes on cash and cash equivalents
(333
)
 
332

Net decrease in cash and cash equivalents
(4,532
)
 
(11,242
)
Cash and cash equivalents, beginning of period
53,422

 
65,420

Cash and cash equivalents, end of period
$
48,890

 
$
54,178







Reconciliation of GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin
(unaudited; dollars in thousands)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenue
$
32,324

 
$
30,097

 
$
96,429

 
$
88,430

 
 
 
 
 
 
 
 
Gross profit (GAAP)
$
24,718

 
$
22,788

 
$
74,495

 
$
66,281

Plus: Stock-based compensation expense included within cost of revenue
298

 
298

 
607

 
864

Gross profit (Non-GAAP)
$
25,016

 
$
23,086

 
$
75,102

 
$
67,145

Gross margin (GAAP)
76.5
%
 
75.7
%
 
77.3
%
 
75.0
%
Gross margin (Non-GAAP)
77.4
%
 
76.7
%
 
77.9
%
 
75.9
%
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
(unaudited; in thousands)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Operating expenses (GAAP)
$
26,959

 
$
26,909

 
$
82,621

 
$
82,423

Less: Stock-based compensation expense included within operating expenses
2,676

 
2,542

 
7,416

 
8,268

Less: One-time charge for VDAs related to sales taxes

 

 

 
2,539

Operating expenses (Non-GAAP)
$
24,283

 
$
24,367

 
$
75,205

 
$
71,616

Reconciliation of GAAP Loss from Operations and GAAP Operating Margin to Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin
(unaudited; dollars in thousands)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenue
$
32,324

 
$
30,097

 
$
96,429

 
$
88,430

 
 
 
 
 
 
 
 
Loss from operations (GAAP)
$
(2,241
)
 
$
(4,121
)
 
$
(8,126
)
 
$
(16,142
)
Plus: Stock-based compensation expense
2,974

 
2,840

 
8,023

 
9,132

Plus: One-time charge for VDAs related to sales taxes

 

 

 
2,539

Income (loss) from operations (Non-GAAP)
$
733

 
$
(1,281
)
 
$
(103
)
 
$
(4,471
)
Operating margin (GAAP)
(6.9
)%
 
(13.7
)%
 
(8.4
)%
 
(18.3
)%
Operating margin (Non-GAAP)
2.3
 %
 
(4.3
)%
 
(0.1
)%
 
(5.1
)%
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)
(unaudited; in thousands)

Three Months Ended September 30,
 
Nine Months Ended September 30,

2018

2017
 
2018
 
2017
Net loss (GAAP)
$
(2,287
)

$
(4,055
)
 
$
(8,208
)
 
$
(16,096
)
Plus: Stock-based compensation expense
2,974


2,840

 
8,023

 
9,132

Plus: One-time charge for VDAs related to sales taxes

 

 

 
2,539

Net income (loss) (Non-GAAP)
$
687


$
(1,215
)
 
$
(185
)
 
$
(4,425
)





Reconciliation of GAAP Net Loss to Adjusted EBITDA
(unaudited; in thousands)

Three Months Ended September 30,
 
Nine Months Ended September 30,

2018

2017
 
2018
 
2017
Net loss (GAAP)
$
(2,287
)

$
(4,055
)
 
$
(8,208
)
 
$
(16,096
)
  Adjustments:



 
 
 
 
Interest (income) expense, net
(120
)

(67
)
 
(351
)
 
(149
)
Income tax expense
188


37

 
435

 
209

Depreciation and amortization expense
1,550


1,605

 
4,509

 
5,041

     Total adjustments
1,618


1,575

 
4,593

 
5,101

EBITDA
(669
)

(2,480
)
 
(3,615
)
 
(10,995
)
Stock-based compensation expense
2,974


2,840

 
8,023

 
9,132

One-time charge for VDAs related to sales taxes

 

 

 
2,539

Adjusted EBITDA
$
2,305


$
360

 
$
4,408

 
$
676


Free Cash Flow Reconciliation
(unaudited; in thousands)
 
Nine Months Ended September 30,
 
2018
 
2017
Cash and cash equivalents provided by (used in) operating activities
$
1,102

 
$
(2,204
)
Less: Purchases of property and equipment
(1,586
)
 
(2,427
)
Free cash flow
$
(484
)
 
$
(4,631
)

Adjusted EBITDA Guidance Reconciliation
(unaudited; in millions)

Fourth Quarter 2018

Full Year 2018

Low

High

Low

High
Net loss (estimate)
$
(1.7
)

$
(0.2
)

$
(9.9
)

$
(8.4
)
  Adjustments (estimates):







Interest (income) expense, net
0.0


(0.1
)

(0.3
)

(0.4
)
Income tax (benefit) expense
0.2


0.1


0.6


0.5

Depreciation and amortization expense
1.6


1.5


6.1


6.0

     Total adjustments
1.8


1.5


6.4


6.1

EBITDA
0.1


1.3


(3.5
)

(2.3
)
Stock-based compensation expense (estimate)
3.1


2.7


11.1


10.7

Adjusted EBITDA guidance
$
3.2


$
4.0


$
7.6


$
8.4