Company Quick10K Filing
Quick10K
Monotype Imaging
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$19.73 41 $816
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 2019-10-11 Leave Agreement, M&A, Shareholder Rights, Control, Officers, Amend Bylaw, Other Events, Exhibits
8-K 2019-10-09 Shareholder Vote
8-K 2019-09-12 Other Events, Exhibits
8-K 2019-09-03 Other Events, Exhibits
8-K 2019-08-28 Other Events, Exhibits
8-K 2019-08-25 Other Events
8-K 2019-08-16 Other Events
8-K 2019-07-25 Enter Agreement, Earnings, Amend Bylaw, Other Events, Exhibits
8-K 2019-06-11 Officers, Other Events, Exhibits
8-K 2019-05-02 Shareholder Vote
8-K 2019-04-26 Earnings, Exhibits
8-K 2019-03-22 Enter Agreement, Leave Agreement, Exhibits
8-K 2019-02-15 Earnings, Exhibits
8-K 2018-07-27 Earnings, Exhibits
8-K 2018-06-06 Exit Costs, Regulation FD, Exhibits
8-K 2018-06-01 Accountant, Exhibits
8-K 2018-05-03 Shareholder Vote, Other Events
8-K 2018-04-27 Earnings, Exhibits
8-K 2018-04-02 Officers, Regulation FD, Exhibits
8-K 2018-02-16 Earnings, Exhibits
YY YY 72,482
INFY Infosys 48,485
PEGA Pegasystems 5,511
EVTC Evertec 2,503
SGMS Scientific Games 1,619
SSTK Shutterstock 1,235
RBBN Ribbon Communications 567
RMBL Rumbleon 72
MTEC MTech Acquisition 58
CCIH Chinacache International Holdings 0
TYPE 2019-06-30
Part I. Financial Information
Item 1. Condensed 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 I. Other Information
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 d762486dex311.htm
EX-32.1 d762486dex321.htm

Monotype Imaging Earnings 2019-06-30

TYPE 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q
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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
001-33612
 
 
MONOTYPE IMAGING HOLDINGS INC.
(Exact name of registrant as specified in its charter)
 
 
     
Delaware
 
20-3289482
(State of
incorporation)
 
(I.R.S. Employer
Identification No.)
     
600 Unicorn Park Drive
Woburn, Massachusetts
 
01801
(Address of principal executive offices)
 
(Zip Code)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registrant’s telephone number, including area code: (781)
 970-6000
 
 
(Former Name, Former Address and Former Fiscal year, if changed since last report)
 
 
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 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
 
☐ (Do not check if a smaller reporting company)
 
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  ☒
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, par value $0.001 per share
 
TYPE
 
NASDAQ Global Select Market
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The number of shares outstanding of the registrant’s common stock as of July 18, 2019 was 41,288,487.
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents
 
MONOTYPE IMAGING HOLDINGS INC.
INDEX
                     
 
Page
 
   
2
 
Item 1.
   
2
 
                     
   
       
2
 
                     
   
       
3
 
                     
   
       
4
 
                     
   
       
5
 
                     
   
       
7
 
                     
   
       
8
 
           
Item 2.
   
23
 
           
Item 3.
   
36
 
           
Item 4.
   
37
 
         
   
37
 
           
Item 1.
   
37
 
           
Item 1A.
   
37
 
           
Item 2.
   
37
 
           
Item 3.
   
38
 
           
Item 4.
   
38
 
           
Item 5.
   
38
 
           
Item 6.
   
38
 
         
   
39
 
         
   
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
 
Table of Contents
 
PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share data)
 
                 
   
June 30,
2019
   
December 31,
2018
 
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 47,763     $ 60,106  
Restricted cash
    6,000       6,000  
Accounts receivable, net of allowance for doubtful accounts of $555 at June 30, 2019 and $492 at December 31, 2018
    47,076       55,943  
Income tax refunds receivable
    6,904       5,122  
Prepaid expenses and other current assets
    7,634       6,473  
   
 
 
   
 
 
 
Total current assets
    115,377       133,644  
Right of use asset
    14,320       —    
Property and equipment, net
    11,850       14,105  
Goodwill
    275,946       276,222  
Intangible assets, net
    71,265       74,699  
Other assets
    15,184       8,986  
   
 
 
   
 
 
 
Total assets
  $  503,942     $  507,656  
   
 
 
   
 
 
 
Liabilities and Stockholders’ Equity
               
Current liabilities:
               
Accounts payable
  $ 1,748     $ 1,719  
Accrued expenses and other current liabilities
    33,864       43,840  
Accrued income taxes payable
    180       510  
Deferred revenue
    10,777       10,337  
Lease liability
    3,701       —    
   
 
 
   
 
 
 
Total current liabilities
    50,270       56,406  
Revolving line of credit
    65,000       75,000  
Other long-term liabilities
    1,711       3,102  
Deferred income taxes
    36,891       35,083  
Reserve for income taxes
    —         2,471  
Lease liability
    12,053       —    
Accrued pension benefits
    5,956       5,888  
Commitments and contingencies
(Note 15)
               
Stockholders’ equity:
               
Preferred stock, $0.001 par value, Authorized shares: 10,000,000; Issued and outstanding: none
    —         —    
Common stock, $0.001 par value, Authorized shares: 250,000,000; Shares issued: 46,464,430 at June 30, 2019 and 45,803,288 at December 31, 2018
    46       46  
Additional
paid-in
capital
    327,918       319,486  
Treasury stock, at cost, 5,166,895 shares at June 30, 2019 and 4,504,236 shares at December 31, 2018
    (92,747 )     (83,518
Retained earnings
    102,973       99,605  
Accumulated other comprehensive loss
    (6,129 )     (5,913
   
 
 
   
 
 
 
Total stockholders’ equity
    332,061       329,706  
   
 
 
   
 
 
 
Total liabilities and stockholders’ equity
  $ 503,942     $ 507,656  
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
2
 
 
Table of Contents
 
 
MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except share and per share data)
 
                                 
   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
   
2019
   
2018
   
2019
   
2018
 
License revenue
  $ 54,136     $ 48,093     $ 96,008     $ 93,960  
Service revenue
    9,100       12,594       18,584       23,410  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total revenue
    63,236       60,687       114,592       117,370  
Cost of revenue—license
    8,231       7,282       15,033       16,894  
Cost of revenue—service
    2,759       2,674       5,560       5,498  
Cost of revenue—amortization of acquired technology
    843       860       1,700       1,724  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total cost of revenue
    11,833       10,816       22,293       24,116  
   
 
 
   
 
 
   
 
 
   
 
 
 
Gross profit
    51,403       49,871       92,299       93,254  
Operating expenses:
                               
Marketing and selling
    18,570       20,081       35,700       40,170  
Research and development
    6,764       8,456       14,205       17,752  
General and administrative
    11,588       11,858       23,607       27,476  
Restructuring
    32       6,376       8       6,570  
Amortization of other intangible assets
    829       965       1,661       1,989  
   
 
 
   
 
 
   
 
 
   
 
 
 
Total operating expenses
    37,783       47,736       75,181       93,957  
   
 
 
   
 
 
   
 
 
   
 
 
 
Income (loss) from operations
    13,620       2,135       17,118       (703
Other (income) expense:
                               
Interest expense
    781       945       1,689       1,797  
Interest income
    (83 )     (146     (220 )     (270
Other
    239       (633 )     445       (535 )
   
 
 
   
 
 
   
 
 
   
 
 
 
Total other expense, net
    937       166       1,914       992  
   
 
 
   
 
 
   
 
 
   
 
 
 
Income (loss) before provision (benefit) for income taxes
    12,683       1,969       15,204       (1,695
Provision for (benefit from) income taxes
    2,376       1,274       2,237       (1,191
   
 
 
   
 
 
   
 
 
   
 
 
 
Net income (loss)
  $ 10,307     $ 695     $ 12,967     $ (504
   
 
 
   
 
 
   
 
 
   
 
 
 
Net income (loss) available to common stockholders—basic and diluted
  $ 9,971     $ 666     $ 12,558     $ (504
   
 
 
   
 
 
   
 
 
   
 
 
 
Net income (loss) per common share—basic and diluted
  $ 0.25     $ 0.02     $ 0.31     $ (0.01
   
 
 
   
 
 
   
 
 
   
 
 
 
Weighted-average number of shares outstanding:
                               
Basic
    40,026,865       40,418,308       40,015,672       40,436,595  
Diluted
    40,065,910       40,537,852       40,066,047       40,436,595  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
3
 
 
Table of Contents
 
 
MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited and in thousands)
 
                                 
   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
   
2019
   
2018
   
2019
   
2018
 
Net income (loss)
  $ 10,307     $ 695     $ 12,967     $ (504
Other comprehensive income (loss), net of tax:
                               
Unrecognized actuarial gain, net of tax of $5, $8, $10 and $13, respectively
    6       22       22       41  
Foreign currency translation adjustments, net of tax of $193, ($834), ($83) and ($478), respectively
    579       (3,507     (238 )     (2,182
   
 
 
   
 
 
   
 
 
   
 
 
 
Comprehensive income (loss)
  $  10,892     $  (2,790   $  12,751     $  (2,645
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
4
 
 
Table of Contents
 
 
MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share and per share data)
 
                                                                 
 
 
Three Months Ended June 30, 2019
 
                                       
Accumulated
   
Total
 
                                   
Additional
           
Other
   
Stock-
 
   
Common Stock
   
Treasury Stock
   
Paid-In
   
Retained
   
Comprehensive
   
holders’
 
   
Shares
   
Amount
   
Shares
   
Amount
   
Capital
   
Earnings
   
Income (Loss)
   
Equity
 
Balance,
March 31, 2019 
    46,397,404     $ 46       4,955,996     $ (91,329 )   $ 324,027     $ 97,458     $ (6,714 )   $ 323,488  
Net income
                                            10,307               10,307  
Issuance of capital shares
                                                               
exercised options 
    1,157       —                         12                         12  
restricted share grants
    56,706       —                         —                         —    
restricted units converted
    9,163       —                         —                         —    
Repurchase of unvested shares of restricted common stock
                    135,736       —                                 —    
Purchase of treasury stock
                    55,428       (1,088 )                             (1,088 )
Shares withheld
                    19,735       (330 )                             (330 )
Stock based compensation
                                    3,879                       3,879  
Dividends declared ($0.116 per share)
                                            (4,792 )             (4,792 )
Unrecognized actuarial income, net of tax
                                                    6       6  
Cumulative translation adjustment, net of tax
                                                    579       579  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance, June 30, 2019
    46,464,430     $ 46       5,166,895     $ (92,747 )   $ 327,918     $ 102,973     $ (6,129 )   $ 332,061  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
 
Total
 
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
Other
 
 
Stock-
 
 
 
Common Stock
 
 
Treasury Stock
 
 
Paid-In
 
 
Retained
 
 
Comprehensive
 
 
holders’
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Earnings
 
 
Income (Loss)
 
 
Equity
 
Balance, March 31, 2018
 
  45,588,021     $ 44       3,419,116     $ (65,294 )   $ 305,023     $ 100,673     $ (1,177 )   $ 339,269  
Net income
 
                                          695               695  
Issuance of capital shares
 
                                                             
—exercised options
 
  55,258       —                         734                       734  
—restricted share grants
 
  84,523       —                         —                         —    
—restricted units converted
 
  10,381       —                         —                         —    
Repurchase of unvested shares of restricted common stock
 
                  109,165       —                                 —    
Purchase of treasury stock
 
                  44,600       (981 )                             (981 )
Shares withheld
 
                  13,901       (306 )                             (306 )
Stock based compensation
 
                                  3,195                       3,195  
Dividends declared ($0.116 per share)
 
                                          (4,891 )             (4,891 )
Unrecognized actuarial loss, net of tax
 
                                                  22       22  
Cumulative translation adjustment, net of tax
 
                                                  (3,507 )     (3,507 )
Balance, June 30, 2018
 
  45,738,183     $ 44       3,586,782     $ (66,581 )   $ 308,952     $ 96,477     $ (4,662 )   $ 334,230  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 
5
 
 
Table of Contents
 
 
MONOTYPE IMAGING HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY – (Continued)
(in thousands, except share and per share data)
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
Other
 
 
Stock-
 
 
 
Common Stock
 
 
Treasury Stock
 
 
Paid-In
 
 
Retained
 
 
Comprehensive
 
 
holders’
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Earnings
 
 
Income (Loss)
 
 
Equity
 
Balance, December 31, 2018
    45,803,288     $ 46       4,504,236     $  (83,518 )   $ 319,486     $ 99,605     $  (5,913 )   $ 329,706  
Net income
                                            12,967               12,967  
Issuance of capital shares
                                                               
—exercised options
    49,643       —                         334                       334  
—restricted share grants
    540,658       —                         —                         —    
—restricted units converted
    70,841       —                         —                         —    
Repurchase of unvested shares of restricted common stock
                    155,096       —                                 —    
Purchase of treasury stock
                    425,928       (7,678 )                             (7,678 )
Shares withheld
                    81,635       (1,551 )                             (1,551 )
Stock based compensation
                                    8,098                       8,098  
Dividends declared ($0.232 per share)
                                            (9,599 )             (9,599 )
Unrecognized actuarial income, net of tax
                                                    22       22  
Cumulative translation adjustment, net of tax
                                                    (238 )     (238 )
Balance, June 30, 2019
    46,464,430     $  46       5,166,895     $  (92,747 )   $  327,918     $ 102,973     $  (6,129 )   $  332,061  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
 
Other
 
 
Stock
 
 
 
Common Stock
 
 
Treasury Stock
 
 
Paid-In
 
 
Retained
 
 
Comprehensive
 
 
holders’
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Earnings
 
 
Income (Loss)
 
 
Equity
 
Balance, December 31, 2017
    44,934,364     $ 44       3,215,644     $  (64,083 )   $ 298,113     $  97,815     $  (2,521 )   $ 329,368  
Net loss
                                            (504 )             (504 )
Issuance of capital shares
                                                               
—exercised options
    242,079       —                         3,383                       3,383  
—restricted share grants
    476,875       —                         —                         —    
—restricted units converted
    84,865       —                         —                         —    
Repurchase of unvested shares of restricted common stock
                    262,509       —                                 —    
Purchase of treasury stock
                    44,600       (981 )