Company Quick10K Filing
Leaf Group
Price4.37 EPS-1
Shares26 P/E-5
MCap114 P/FCF-13
Net Debt-13 EBIT-21
TEV101 TEV/EBIT-5
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-10-29
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-16
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-05
10-Q 2019-03-31 Filed 2019-05-08
10-K 2018-12-31 Filed 2019-03-04
10-Q 2018-09-30 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-23
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-09
10-K 2015-12-31 Filed 2016-03-01
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-03-16
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-11
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-17
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-05
10-Q 2012-09-30 Filed 2012-11-13
10-Q 2012-06-30 Filed 2012-08-10
10-Q 2012-03-31 Filed 2012-05-11
10-K 2011-12-31 Filed 2012-02-24
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-09
10-K 2010-12-31 Filed 2011-03-01
8-K 2020-11-20
8-K 2020-11-06
8-K 2020-10-29
8-K 2020-10-28
8-K 2020-10-16
8-K 2020-10-05
8-K 2020-09-21
8-K 2020-08-24
8-K 2020-08-10
8-K 2020-07-30
8-K 2020-07-20
8-K 2020-07-09
8-K 2020-07-07
8-K 2020-07-02
8-K 2020-06-18
8-K 2020-06-01
8-K 2020-05-19
8-K 2020-05-19
8-K 2020-05-18
8-K 2020-05-11
8-K 2020-05-01
8-K 2020-04-24
8-K 2020-04-20
8-K 2020-04-17
8-K 2020-04-10
8-K 2020-04-01
8-K 2020-03-16
8-K 2019-11-07
8-K 2019-11-07
8-K 2019-08-05
8-K 2019-05-21
8-K 2019-05-15
8-K 2019-05-08
8-K 2019-04-13
8-K 2019-03-26
8-K 2019-03-04
8-K 2019-02-14
8-K 2019-01-29
8-K 2018-12-28
8-K 2018-11-06
8-K 2018-08-02
8-K 2018-08-01
8-K 2018-07-25
8-K 2018-06-25
8-K 2018-06-12
8-K 2018-06-05
8-K 2018-05-08
8-K 2018-03-22
8-K 2018-03-01
8-K 2018-03-01
8-K 2018-02-05
8-K 2018-02-05
8-K 2018-01-11

LEAF 10Q Quarterly Report

Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
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
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 leaf-20200930xex31d1.htm
EX-31.2 leaf-20200930xex31d2.htm
EX-32.1 leaf-20200930xex32d1.htm
EX-32.2 leaf-20200930xex32d2.htm

Leaf Group Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
0.80.60.50.30.20.02012201420172020
Assets, Equity
0.20.10.0-0.1-0.2-0.32012201420172020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

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 001-35048

LEAF GROUP LTD.

(Exact name of registrant as specified in its charter)

Delaware

20-4731239

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

1655 26th Street
Santa Monica, CA

90404

(Address of principal executive offices)

(Zip Code)

(310656-6253

(Registrant’s telephone number, including area code)

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, $0.0001 par value

LEAF

New York Stock Exchange

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 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 

As of October 26, 2020, there were 27,390,064 shares of the registrant’s common stock, $0.0001 par value, outstanding.

LEAF GROUP LTD.

INDEX TO FORM 10-Q

  

 

  

Page

Part I

Financial Information

  

 

Item 1.

  

Condensed Consolidated Financial Statements (Unaudited)

  

1

 

  

Condensed Consolidated Balance Sheets

  

1

 

  

Condensed Consolidated Statements of Operations

  

2

 

  

Condensed Consolidated Statements of Comprehensive Income (Loss)

  

3

 

  

Condensed Consolidated Statements of Stockholders’ Equity

  

4

 

  

Condensed Consolidated Statements of Cash Flows

  

6

 

  

Notes to the Condensed Consolidated Financial Statements

  

7

 

Item 2.

  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

22

 

Item 3.

  

Quantitative and Qualitative Disclosures About Market Risk

  

43

 

Item 4.

  

Controls and Procedures

  

44

Part II

Other Information

 

Item 1.

  

Legal Proceedings

  

45

 

Item 1A.

  

Risk Factors

  

45

 

Item 2.

  

Unregistered Sales of Equity Securities and Use of Proceeds

  

48

 

Item 3.

  

Defaults Upon Senior Securities

  

48

 

Item 4.

  

Mine Safety Disclosures

  

49

 

Item 5.

  

Other Information

  

49

 

Item 6.

  

Exhibits

  

49

 

  

Signatures

  

51

Table of Contents

Part I.       FINANCIAL INFORMATION

Item 1.      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Leaf Group Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

    

September 30, 

    

December 31, 

 

2020

2019

 

Assets

Current assets

Cash and cash equivalents

$

33,038

$

18,106

Accounts receivable, net

 

13,297

 

14,402

Prepaid expenses and other current assets

 

3,701

 

2,555

Total current assets

 

50,036

 

35,063

Property and equipment, net

 

14,333

 

13,797

Operating lease right-of-use assets

10,726

12,645

Intangible assets, net

 

11,312

 

12,589

Goodwill

 

19,244

 

19,465

Other assets

 

1,275

 

1,044

Total assets

$

106,926

$

94,603

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

9,627

$

7,825

Accrued expenses and other current liabilities

 

24,462

 

21,291

Deferred revenue

 

5,308

 

2,464

Debt, current

 

8,407

 

4,000

Total current liabilities

 

47,804

 

35,580

Deferred tax liability

86

63

Operating lease liabilities

8,561

10,863

Debt, non-current

2,979

Other liabilities

 

182

 

287

Total liabilities

59,612

46,793

Commitments and contingencies (Note 9)

Stockholders’ equity

Common stock, $0.0001 par value. Authorized 100,000 shares; 28,991 and 27,336 shares issued and outstanding at September 30, 2020 and 27,938 and 26,283 shares issued and outstanding at December 31, 2019

 

3

 

3

Additional paid-in capital

 

568,062

 

562,332

Treasury stock at cost, 1,655 shares at September 30, 2020 and December 31, 2019

 

(35,706)

 

(35,706)

Accumulated other comprehensive loss

 

(59)

 

(20)

Accumulated deficit

 

(484,986)

 

(478,799)

Total stockholders’ equity

 

47,314

 

47,810

Total liabilities and stockholders’ equity

$

106,926

$

94,603

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


1

Table of Contents

Leaf Group Ltd. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three months ended September 30, 

Nine months ended September 30, 

 

    

2020

    

2019

    

2020

    

2019

 

Revenue:

Product revenue

$

45,135

$

19,611

$

97,439

$

53,021

Service revenue

 

18,120

 

20,419

 

49,649

 

56,836

Total revenue

 

63,255

 

40,030

 

147,088

 

109,857

Operating expenses:

Product costs (exclusive of amortization of intangible assets shown separately below)

 

33,753

 

14,221

 

72,752

 

40,049

Service costs (exclusive of amortization of intangible assets shown separately below)

 

8,468

 

9,107

 

25,270

 

26,000

Sales and marketing

 

9,594

 

7,372

 

24,699

 

22,498

Product development

 

4,967

 

4,973

 

14,728

 

15,652

General and administrative

 

7,691

 

8,072

 

22,948

 

24,724

Amortization of intangible assets

 

518

 

807

 

1,922

 

2,619

Total operating expenses

 

64,991

 

44,552

 

162,319

 

131,542

Loss from operations

 

(1,736)

 

(4,522)

 

(15,231)

 

(21,685)

Interest income

1

44

27

232

Interest (expense)

(103)

(5)

(292)

(15)

Other income, net

 

5,537

 

(6)

 

9,384

 

6

Income (loss) before income taxes

 

3,699

 

(4,489)

 

(6,112)

 

(21,462)

Income tax benefit (expense)

 

(13)

 

4

 

(75)

 

(71)

Net income (loss)

$

3,686

$

(4,485)

$

(6,187)

$

(21,533)

Net income (loss) per share—basic and diluted

Basic

$

0.14

$

(0.17)

$

(0.23)

$

(0.83)

Diluted

$

0.13

$

(0.17)

$

(0.23)

$

(0.83)

Weighted average number of shares—basic and diluted

Basic

 

27,016

26,089

26,720

25,868

Diluted

27,954

26,089

26,720

25,868

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


2

Table of Contents

Leaf Group Ltd. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

Three months ended September 30, 

Nine months ended September 30, 

    

2020

    

2019

    

2020

    

2019

Net income (loss)

$

3,686

$

(4,485)

$

(6,187)

$

(21,533)

Other comprehensive income (loss), net of tax:

Change in foreign currency translation adjustment

 

28

 

(40)

 

(39)

 

(37)

Comprehensive income (loss)

$

3,714

$

(4,525)

$

(6,226)

$

(21,570)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


3

Table of Contents

Leaf Group Ltd. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

Nine months ended September 30, 2020

Accumulated

Additional

other

paid-in

comprehensive

Total

Common stock

capital

Treasury

income

Accumulated

stockholders’

    

Shares

Amount

    

amount

    

stock

    

(loss)

    

deficit

    

equity

Balance at December 31, 2019

 

26,283

$

3

$

562,332

$

(35,706)

$

(20)

$

(478,799)

$

47,810

Issuance of stock under employee stock awards and other, net

 

320

 

 

6

 

 

 

 

6

Tax withholdings related to vesting of share-based payments

(556)

(556)

Stock-based compensation expense

 

 

 

2,833

 

 

 

 

2,833

Foreign currency translation adjustment

 

 

 

 

 

(62)

 

 

(62)

Net loss

 

 

 

 

 

 

(10,676)

 

(10,676)

Balance at March 31, 2020

 

26,603

$

3

$

564,615

$

(35,706)

$

(82)

$

(489,475)

$

39,355

Issuance of stock under employee stock awards and other, net

 

212

 

 

22

 

 

 

 

22

Tax withholdings related to vesting of share-based payments

(191)

(191)

Stock-based compensation expense

 

 

 

2,680

 

 

 

 

2,680

Foreign currency translation adjustment

 

 

 

 

 

(5)

 

 

(5)

Net income

 

 

 

 

 

 

803

 

803

Balance at June 30, 2020

 

26,815

$

3

$

567,126

$

(35,706)

$

(87)

$

(488,672)

$

42,664

Issuance of stock under employee stock awards and other, net

 

521

 

 

14

 

 

 

 

14

Tax withholdings related to vesting of share-based payments

(1,321)

 

 

(1,321)

Stock-based compensation expense

 

 

 

2,243

 

 

 

 

2,243

Foreign currency translation adjustment

 

 

 

 

 

28

 

 

28

Net income

 

 

 

 

 

 

3,686

 

3,686

Balance at September 30, 2020

 

27,336

$

3

$

568,062

$

(35,706)

$

(59)

$

(484,986)

$

47,314


4

Table of Contents

Nine months ended September 30, 2019

Accumulated

Additional

other

paid-in

comprehensive

Total

Common stock

capital

Treasury

income

Accumulated

stockholders’

    

Shares

Amount

    

amount

    

stock

    

(loss)

    

deficit

    

equity

Balance at December 31, 2018

 

25,483

$

3

$

554,403

$

(35,706)

$

(52)

$

(451,961)

$

66,687

Issuance of stock under employee stock awards and other, net

 

319

 

 

270

 

 

 

 

270

Tax withholdings related to vesting of share-based payments

(1,322)

(1,322)

Stock-based compensation expense

 

 

 

2,045

 

 

 

 

2,045

Foreign currency translation adjustment

 

 

 

 

 

27

 

 

27

Net loss

 

 

 

 

 

 

(10,286)

 

(10,286)

Balance at March 31, 2019

 

25,802

$

3

$

555,396

$

(35,706)

$

(25)

$

(462,247)

$

57,421

Issuance of stock under employee stock awards and other, net

 

187

 

 

175

 

 

 

 

175

Tax withholdings related to vesting of share-based payments

(717)

(717)

Stock-based compensation expense

 

 

 

2,331

 

 

 

 

2,331

Foreign currency translation adjustment

 

 

 

 

 

(24)

 

 

(24)

Net loss

 

 

 

 

 

 

(6,762)

 

(6,762)

Balance at June 30, 2019

 

25,989

$

3

$

557,185

$

(35,706)

$

(49)

$

(469,009)

$

52,424

Issuance of stock under employee stock awards and other, net

 

161

 

 

281

 

 

 

 

281

Tax withholdings related to vesting of share-based payments

(364)

 

 

(364)

Stock-based compensation expense

 

 

 

2,562

 

 

 

 

2,562

Foreign currency translation adjustment

 

 

 

 

 

(40)

 

 

(40)

Net loss

 

 

 

 

 

 

(4,485)

 

(4,485)

Balance at September 30, 2019

 

26,150

$

3

$

559,664

$

(35,706)

$

(89)

$

(473,494)

$

50,378

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

.


5

Table of Contents

Leaf Group Ltd. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine months ended September 30, 

 

    

2020

    

2019

 

Cash flows from operating activities

Net loss

$

(6,187)

$

(21,533)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

 

7,273

 

7,740

Non-cash lease expense

2,073

1,386

Deferred income taxes

 

23

 

20

Stock-based compensation

 

7,262

 

6,590

Gain from sale of asset

 

(9,300)

 

Other

 

309

 

118

Change in operating assets and liabilities, net of effect of acquisitions and disposals:

Accounts receivable, net

 

873

 

654

Prepaid expenses and other current assets

 

(1,182)

 

845

Other long-term assets

 

32

 

109

Operating lease ROU assets and liabilities

(2,146)

(1,695)

Accounts payable

 

1,802

 

2,034

Accrued expenses and other liabilities

 

3,284

 

(5,607)

Deferred revenue

 

2,844

 

594

Net cash provided by (used in) operating activities

 

6,960

 

(8,745)

Cash flows from investing activities

Purchases of property and equipment