Company Quick10K Filing
Quick10K
Houghton Mifflin Harcourt
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$6.81 124 $845
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-06-28 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-06-11 Officers, Regulation FD
8-K 2019-05-21 Shareholder Vote
8-K 2019-05-09 Earnings, Exhibits
8-K 2018-11-08 Earnings, Exhibits
8-K 2018-10-01 M&A, Regulation FD, Exhibits
8-K 2018-09-12 Enter Agreement, Regulation FD, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-05-22 Shareholder Vote
8-K 2018-03-01 Officers, Exhibits
ALLE Allegion 9,400
AJRD Aerojet Rocketdyne Holdings 2,980
GRBK Green Brick Partners 471
PCB Pacific City Financial 277
CSTR Capstar Financial Holdings 264
MAGS Magal Security Systems 116
PFSW Pfsweb 87
IMI Intermolecular 58
FRHC Freedom Holding 0
GMTA Gander Mountain 0
HMHC 2019-06-30
Part 1 - Financial Information
Item 1. Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-10.2 d706703dex102.htm
EX-31.1 d706703dex311.htm
EX-31.2 d706703dex312.htm
EX-32.1 d706703dex321.htm
EX-32.2 d706703dex322.htm

Houghton Mifflin Harcourt Earnings 2019-06-30

HMHC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q
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Table of Contents
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM
10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the transition period from ___________ to ___________
Commission file number
001-36166
 
Houghton Mifflin Harcourt Company
(Exact name of registrant as specified in its charter)
 
     
Delaware
 
27-1566372
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
125 High Street
Boston, MA 02110
(617)
351-5000
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
 
Securities registered pursuant to Section 12(b) of the Act:
         
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, $0.01 par value
 
HMHC
 
The Nasdaq Stock Market LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  
    No  
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).    Yes  
    No  
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
Large accelerated filer
 
 
 
 
Accelerated filer
 
                 
Non-accelerated
 filer
 
 
 
Smaller reporting company
 
                 
 
 
 
Emerging growth company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.  
Indicate by check mark whether the Registrant is a shell company (as defined in Rule
 12b-2
of the Exchange Act).    Yes  
    No  
The number of shares of common stock, par value $0.01 per share, outstanding as of August 5, 2019 was 124,316,401
.
                   .
 
 
 
 
 
Table of Contents
 
 
Table of Contents
             
 
Page (s)
 
   
3
 
             
PART I.
     
 
             
Item 1.
     
4
 
             
     
4
 
             
     
5
 
             
     
6
 
             
     
7
 
             
     
8
 
             
     
9
 
             
Item 2.
     
26
 
             
Item 3.
     
47
 
             
Item 4.
     
48
 
             
PART II.
     
 
             
Item 1.
     
48
 
             
Item 1A.
     
48
 
             
Item 6.
     
49
 
         
   
50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2
 
 
 
Table of Contents
 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
The statements contained herein include forward-looking statements, which involve risks and uncertainties. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “projects,” “anticipates,” “expects,” “could,” “intends,” “may,” “will,” “should,” “forecast,” “intend,” “plan,” “potential,” “project,” “target” or, in each case, their negative, or other variations or comparable terminology. Forward-looking statements include all statements that are not statements of historical facts. They include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations; financial condition; liquidity; prospects, growth and strategies; our competitive strengths; the industry in which we operate; the impact of new accounting guidance and tax laws; expenses; effective tax rates; future liabilities; the outcome and impact of pending or threatened litigation; decisions of our customers; education expenditures; population growth; state curriculum adoptions and purchasing cycles; the impact of dispositions, acquisitions and other investments; our share repurchase program; the timing, structure and expected impact of our operational efficiency and cost-reduction initiatives and the estimated savings and amounts expected to be incurred in connection therewith; and potential business decisions. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. We caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are based upon information available to us on the date of this report.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that actual results may differ materially from those made in or suggested by the forward-looking statements contained herein. In addition, even if actual results are consistent with the forward-looking statements contained herein, those results or developments may not be indicative of results or developments in subsequent periods.
Important factors that could cause actual results to vary from expectations include, but are not limited to: changes in state and local education funding and/or related programs, legislation and procurement processes; changes in state academic standards; industry cycles and trends; the rate and state of technological change; state requirements related to digital instructional materials; changes in product distribution channels and concentration of retailer power; changes in our competitive environment, including free and low-cost open educational resources; periods of operating and net losses; our ability to enforce our intellectual property and proprietary rights; risks based on information technology systems and potential breaches of those systems; dependence on a small number of print and paper vendors; third-party software and technology development; possible defects in digital products; our ability to identify, complete, or achieve the expected benefits of, acquisitions; unanticipated consequences of the disposition of our Riverside clinical and standardized testing business; our ability to execute on our long-term growth strategy; increases in our operating costs; exposure to litigation; major disasters or other external threats; contingent liabilities; risks related to our indebtedness; future impairment charges; changes in school district payment practices; a potential increase in the portion of our sales coming from digital sales; risks related to doing business abroad; changes in tax law or interpretation; management and personnel changes; timing, higher costs and unintended consequences of our operational efficiency and cost-reduction initiatives; and other factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (and our subsequent filings pursuant to the Securities Exchange Act of 1934, as amended). In light of these risks, uncertainties and assumptions, the forward-looking events described herein may not occur.
We undertake no obligation, and do not expect, to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein.
 
3
 
 
 
Table of Contents
 
PART 1 – FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Houghton Mifflin Harcourt Company
Consolidated Balance Sheets
                 
(in thousands of dollars, except share information)
 
June 30,
2019
(Unaudited)
 
 
December 31,
2018
 
Assets
   
     
 
Current assets
   
     
 
Cash and cash equivalents
  $
15,114
    $
253,365
 
Short-term investments
   
—  
     
49,833
 
Accounts receivable, net of allowances for bad debts and book returns of $20.0 million and $20.7 million, respectively
   
432,082
     
203,574
 
Inventories
   
267,770
     
184,209
 
Prepaid expenses and other assets
   
22,382
     
15,297
 
                 
Total current assets
   
737,348
     
706,278
 
Property, plant, and equipment, net
   
108,332
     
125,925
 
Pre-publication
costs, net
   
311,724
     
323,641
 
Royalty advances to authors, net
   
49,625
     
47,993
 
Goodwill
   
716,977
     
716,073
 
Other intangible assets, net
   
499,080
     
520,892
 
Operating lease assets
   
138,755
     
—  
 
Deferred income taxes
   
3,259
     
3,259
 
Deferred commissions
   
22,633
     
22,635
 
Other assets
   
28,538
     
28,428
 
                 
Total assets
  $
2,616,271
    $
2,495,124
 
                 
Liabilities and Stockholders’ Equity
   
     
 
Current liabilities
   
     
 
Revolving credit facility
  $
60,000
    $
—  
 
Current portion of long-term debt
   
8,000
     
8,000
 
Accounts payable
   
108,528
     
76,313
 
Royalties payable
   
59,347
     
66,893
 
Salaries, wages, and commissions payable
   
41,996
     
50,225
 
Deferred revenue
   
263,583
     
251,944
 
Interest payable
   
484
     
136
 
Severance and other charges
   
2,028
     
6,020
 
Accrued postretirement benefits
   
1,512
     
1,512
 
Operating lease liabilities
   
12,479
     
—  
 
Other liabilities
   
25,431
     
26,649
 
                 
Total current liabilities
   
583,388
     
487,692
 
Long-term debt, net of discount and issuance costs
   
753,377
     
755,649
 
Operating lease liabilities
   
140,062
     
—  
 
Long-term deferred revenue
   
444,148
     
395,500
 
Accrued pension benefits
   
28,966
     
29,320
 
Accrued postretirement benefits
   
13,329
     
14,300
 
Deferred income taxes
   
32,816
     
27,075
 
Other liabilities
   
6,580
     
17,118
 
                 
Total liabilities
   
2,002,666
     
1,726,654
 
                 
Commitments and contingencies (Note 15)
   
     
 
Stockholders’ equity
   
     
 
Preferred stock, $0.01 par value: 20,000,000 shares authorized; no shares issued and outstanding at June 30, 2019 and December 31, 2018
   
—  
     
—  
 
Common stock, $0.01 par value: 380,000,000 shares authorized; 148,785,426 and 148,164,854 shares issued at June 30, 2019 and December 31, 2018, respectively; 124,208,392 and 123,587,820 shares outstanding at June 30, 2019 and December 31, 2018, respectively
   
1,487
     
1,481
 
Treasury stock, 24,577,034 shares as of June 30, 2019 and December 31, 2018, respectively, at cost
   
(518,030
)    
(518,030
)
Capital in excess of par value
   
4,898,988
     
4,893,174
 
Accumulated deficit
   
(3,720,134
)    
(3,562,971
)
Accumulated other comprehensive loss
   
(48,706
)    
(45,184
)
                 
Total stockholders’ equity
   
613,605
     
768,470
 
                 
Total liabilities and stockholders’ equity
  $
2,616,271
    $
2,495,124
 
                 
 
 
 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
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Table of Contents
 
Houghton Mifflin Harcourt Company
Consolidated Statements of Operations (Unaudited)
                                 
 
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
(in
 
thousands
 
of
 
dollars,
 
except
 
share
 
and
 
per
 
share
 
information)
 
2019
   
2018
   
2019
   
2018
 
Net sales
  $
388,896
    $
357,365
    $
583,531
    $
557,124
 
Costs and expenses
   
     
     
     
 
Cost of sales, excluding publishing rights and
pre-publication
amortization
   
190,831
     
160,058
     
286,886
     
259,791
 
Publishing rights amortization
   
6,271
     
8,148
     
13,876
     
18,238
 
Pre-publication
amortization
   
35,739
     
26,332
     
68,821
     
51,953
 
                                 
Cost of sales
   
232,841
     
194,538
     
369,583
     
329,982
 
Selling and administrative
   
175,266
     
169,323
     
327,249
     
314,850
 
Other intangible asset amortization
   
6,612
     
6,676
     
13,136
     
13,542
 
Severance and other charges
   
4,430
     
2,075
     
5,651
     
6,018
 
(Gain) loss on sale of assets
   
—  
     
(500
)    
—  
     
384
 
                                 
Operating loss
   
(30,253
)    
(14,747
)    
(132,088
)    
(107,652
)
                                 
Other income (expense)
   
     
     
     
 
Retirement benefits
non-service
income
   
42
     
320
     
84
     
640
 
Interest expense
   
(11,963
)    
(11,472
)    
(23,545
)    
(22,408
)
Interest income
   
97
     
117
     
1,189
     
623
 
Change in fair value of derivative instruments
   
16
     
(1,097
)    
(434
)    
(725
)
Income from transition services agreement
   
1,851
     
—  
     
3,677
     
—  
 
                                 
Loss from continuing operations before taxes
   
(40,210
)    
(26,879
)    
(151,117
)    
(129,522
)
Income tax expense for continuing operations
   
403
     
2,210
     
6,858
     
5,453
 
                                 
Loss from continuing operations
   
(40,613
)    
(29,089
)    
(157,975
)    
(134,975
)
                                 
Income from discontinued operations, net of tax
   
—  
     
5,817
     
—  
     
10,392
 
                                 
Net loss
  $
(40,613
)   $
(23,272
)   $
(157,975
)   $
(124,583
)
                                 
Net income (loss) per share attributable to common stockholders
   
     
     
     
 
Basic and diluted:
   
     
     
     
 
Continuing operations
  $
(0.33
)   $
(0.24
)   $
(1.27
)   $
(1.09
)
Discontinued operations
   
—  
     
0.05
     
—  
     
0.08
 
                                 
Net loss
  $
(0.33
)   $
(0.19
)   $
(1.27
)   $
(1.01
)
                                 
Weighted average shares outstanding
   
     
     
     
 
Basic and diluted
   
124,147,961
     
123,423,911
     
123,974,266
     
123,323,688
 
                                 
 
 
 
 
 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
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Table of Contents
 
Houghton Mifflin Harcourt Company
Consolidated Statements of Comprehensive Loss (Unaudited)
 
 
                                 
 
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
(in thousands of dollars, except share and per share information)
 
2019
   
2018
   
2019
   
2018
 
Net loss
  $
(40,613
)   $
(23,272
)   $
(157,975
)   $
(124,583
)
Other comprehensive income (loss), net of taxes:
   
     
     
     
 
Foreign currency translation adjustments, net of tax
   
105
     
(143
)    
(127
)    
84
 
Unrealized gain on short-term investments, net of tax
   
—  
     
—  
     
9
     
18
 
Net change in unrealized (loss) gain on derivative financial instruments, net of tax
   
(2,077
)    
1,632
     
(3,404
)    
5,108
 
                                 
Other comprehensive (loss) gain, net of taxes
   
(1,972
)    
1,489
     
(3,522
)    
5,210
 
                                 
Comprehensive loss
  $
(42,585
)   $
(21,783
)   $
(161,497
)   $
(119,373
)
                                 
 
 
 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
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Table of Contents
 
Houghton Mifflin Harcourt Company
Consolidated Statements of Cash Flows (Unaudited)
 
Six Months Ended
June 30,
 
(in thousands of dollars)
 
2019
   
2018
 
Cash flows from operating activities
   
     
 
Net loss
  $
(157,975
)   $
(124,583
)
Adjustments to reconcile net loss to net cash used in operating activities
   
     
 
Income from discontinued operations, net of tax
   
—  
     
(10,392
)
Loss on sale of assets
   
—  
     
384
 
Depreciation and amortization expense
   
135,649
     
122,488
 
Amortization and impairments of operating lease assets
 
 
9,441
 
 
 
—  
 
Amortization of debt discount and deferred financing costs
   
2,090
     
2,091
 
Deferred income taxes
   
5,741
     
4,825
 
Stock-based compensation expense
   
7,259
     
6,061
 
Change in fair value of derivative instruments
   
434
     
725
 
Changes in operating assets and liabilities, net of acquisitions
   
     
 
Accounts receivable
   
(228,475
)    
(95,077
)
Inventories
   
(83,561
)    
(57,667
)
Other assets
   
(15,568
)    
(4,900
)
Accounts payable and accrued expenses
   
22,495
     
(1,021
)
Royalties payable and author advances, net
   
(9,178
)    
(8,331
)
Deferred revenue
   
60,098
     
(20,725
)
Interest payable
   
348
     
(29
)
Severance and other charges
   
252
     
(1,274
)
Accrued pension and postretirement benefits
   
(1,325
)    
(1,901
)
Operating lease liabilities
 
 
(8,419 )
 
 
—  
 
Other liabilities
   
(5,231
)    
14,079
 
                 
Net cash used in operating activities – continuing operations
   
(265,925
)    
(175,247
)
Net cash provided by operating activities – discontinued operations
   
—  
     
11,433
 
                 
Net cash used in operating activities
   
(265,925
)    
(163,814
)
                 
Cash flows from investing activities
   
     
 
Proceeds from sales and maturities of short-term investments
   
50,000
     
86,539
 
Additions to
pre-publication
costs
   
(55,591
)    
(59,514
)
Additions to property, plant, and equipment
   
(18,358
)    
(23,310
)
Proceeds from sale of assets
   
—  
     
500
 
Acquisition of business, net of cash acquired
   
(5,447
)    
—  
 
                 
Net cash (used in) provided by investing activities – continuing operations
   
(29,396
)    
4,215
 
Net cash used in investing activities – discontinued operations
   
—  
     
(4,259
)
                 
Net cash used in investing activities
   
(29,396
)    
(44
)
                 
Cash flows from financing activities
   
     
 
Proceeds under revolving credit facility
   
60,000
     
50,000
 
Payments of long-term debt
   
(4,000
)    
(4,000
)
Tax withholding payments related to net share settlements of restricted stock units and awards
   
(1,929
)    
(1,093
)
Issuance of common stock under employee stock purchase plan
   
506
     
681
 
Net collections under transition services agreement
   
2,493
     
—  
 
                 
Net cash provided by financing activities – continuing operations
   
57,070
     
45,588
 
                 
Net decrease in cash and cash equivalents
   
(238,251
)    
(118,270
)
Cash and cash equivalents at the beginning of the period
   
253,365
     
148,979
 
                 
Cash and cash equivalents at the end of the period
  $
15,114
    $
30,709
 
                 
Supplemental disclosure of cash flow information
   
     
 
Interest paid
  $
21,937
    $
20,313
 
Income taxes paid (refunded)
   
405
     
(236
)
Non-cash
investing activities
   
     
 
Pre-publication
costs included in accounts payable and accruals
  $
15,288
    $
26,056
 
Property, plant, and equipment included in accounts payable and accruals
   
2,103
     
15,323
 
Property, plant, and equipment acquired under finance leases
   
404
     
570
 
The accompanying notes are an integral part of these consolidated financial statements.
 
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Table of Contents
 
 
Houghton Mifflin Harcourt Company
Consolidated Statements of Stockholders’ Equity (Unaudited)
                                                         
(in thousands of dollars, except share
information)
 
Common Stock
   
Treasury Stock
   
Capital
in excess
of Par
Value
   
Accumulated
Deficit
   
Accumulated
Other
Comprehensive
Loss
   
Total
   
Shares
Issued
   
Par Value
   
Balance at December 31, 2017
   
147,911,466
    $
1,479
    $
(518,030
)   $
4,879,793
    $
(3,521,527
)   $
(46,522
)   $
795,193
 
Net loss
   
—  
     
—  
     
—  
     
—  
     
(101,311
)    
—  
     
(101,311
)
Other comprehensive income, net of tax
   
—  
     
—  
     
—  
     
—  
     
—  
     
3,721
     
3,721
 
Effects of adoption of new revenue accounting standard
   
—  
     
—  
     
—  
     
—  
     
52,711
     
—  
     
52,711
 
Issuance of common stock for employee purchase plan
   
85,542
     
1
     
—  
     
864
     
—  
     
—  
     
865
 
Issuance of common stock for vesting of restricted stock units
   
245,572
     
2
     
—  
     
(2
)    
—  
     
—  
     
—  
 
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units
   
—  
     
—  
     
—  
     
(1,073
)    
—  
     
—  
     
(1,073
)
Restricted stock forfeitures and cancellations
   
(268,295
)    
(3
)    
—  
     
3
     
—  
     
—  
     
—  
 
Stock-based compensation expense
   
—  
     
—  
     
—  
     
2,873
     
—  
     
—  
     
2,873
 
                                                         
Balance at March 31, 2018
   
147,974,285
    $
1,479
    $
(518,030
)   $
4,882,458
    $
(3,570,127
)   $
(42,801
)   $
752,979
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(23,272
 
 
 
 
 
(23,272
)
Other comprehensive income, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,489
 
 
 
1,489
 
Issuance of common stock for employee purchase plan
 
 
 
 
 
 
 
 
 
 
 
1
 
 
 
 
 
 
 
 
 
1
 
Issuance of common stock for vesting of restricted stock units
 
 
66,653
 
 
 
1
 
 
 
 
 
 
(1
)
 
 
 
 
 
 
 
 
 
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units
 
 
—  
 
 
 
 
 
 
 
 
 
(20
)
 
 
 
 
 
 
 
 
(20
)
Stock-based compensation expense
 
 
 
 
 
 
 
 
 
 
 
3,082
 
 
 
 
 
 
 
 
 
3,082
 
Balance at June 30, 2018
 
 
148,040,938
 
 
$
1,480
 
 
$
(518,030
)
 
$
4,885,520
 
 
$
(3,593,399
)
 
$
(41,312
)
 
$
734,259
 
                                                         
Balance at December 31, 2018
   
148,164,854
    $
1,481
    $
(518,030
)   $
4,893,174
    $
(3,562,971
)   $
(45,184
)   $
768,470
 
Net loss
   
     
—  
     
—  
     
—  
     
(117,362
)    
—  
     
(117,362
)
Other comprehensive loss, net of tax
   
     
—  
     
—  
     
—  
     
—  
     
(1,550
)    
(1,550
)
Effects of adoption of new lease accounting standard
   
—  
     
—  
     
—  
     
—  
     
725
     
—  
     
725
 
Issuance of common stock for employee purchase plan
   
78,105
     
1
     
—  
     
701
     
—  
     
—  
     
702
 
Issuance of common stock for vesting of restricted stock units
   
444,622
     
5
     
—  
     
(5
)    
—  
     
—  
     
—  
 
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units
   
—  
     
—  
     
—  
     
(1,756
)    
—  
     
—  
     
(1,756
)
Stock-based compensation expense
   
—  
     
—  
     
—  
     
3,442
     
—  
     
—  
     
3,442
 
                                                         
Balance at March 31, 2019
   
148,687,581
    $
1,487
    $
(518,030
)   $
4,895,556
    $
(3,679,608
)   $
(46,734