April 13, 2024

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GTY Technology Holdings Announces Fourth Quarter and Full Year 2020 Financial Results

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BOSTON–(BUSINESS WIRE)–GTY Technology Holdings Inc. (Nasdaq: GTYH) (“GTY”), a leading vertical SaaS/Cloud solution provider for the public sector, today announced financial results for the fourth quarter and full year ended December 31, 2020.

“We closed out a year that presented challenges with another quarter of disciplined execution and strong results. We achieved 14{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} revenue growth, another quarter of positive cash flow and are particularly pleased with our ARR growth of 25{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3},” said TJ Parass, CEO of GTY. “We have great momentum across our business and are taking market share. We remain laser focused on providing our customers with the level of support they have come to expect, while also introducing new prospects to our industry leading solutions. Our execution and results are driven by the exceptional team of men and women who deliver for our customers every day. We are grateful for having the best professionals in the industry who have chosen to grow with GTY.”

“Looking back on the year, we saw strong demand for our products as more and more public sector organizations are pushing to modernize and transform their operations. The fact that they are investing in our technology while dealing with budget shortfalls amid their pandemic response shows the mission critical nature of our software. We are impressed with the quality of our customers and their efforts to improve internal performance and the quality of service to their citizens.”

Fourth Quarter 2020 Financial Highlights

  • Revenue: Total GAAP revenue for the fourth quarter of 2020 was $13.1 million, up 14{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to $11.5 million in the fourth quarter of 2019. Total non-GAAP revenue for the fourth quarter of 2020 was $13.2 million, up 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to $12.0 million in the fourth quarter of 2019.
  • Gross Profit: Gross profit for the fourth quarter of 2020 was $8.2 million, compared to $6.6 million for the fourth quarter of 2019. Gross margin for the fourth quarter of 2020 was 62{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, compared to 58{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the fourth quarter of 2019. Non-GAAP gross profit for the fourth quarter of 2020 was $8.5 million, compared to $7.4 million for the fourth quarter of 2019. Non-GAAP gross margin was 65{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the fourth quarter of 2020, compared to 62{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the fourth quarter of 2019.
  • Operating (Loss): Operating loss for the fourth quarter of 2020 was $(11.1) million, compared to an operating loss of $(42.6) million in the fourth quarter of 2019. Non-GAAP operating loss for the fourth quarter of 2020 was $(1.1) million, compared to an operating loss of $(5.4) million in the fourth quarter of 2019.
  • Net (Loss): Net loss for the fourth quarter of 2020 was $(12.4) million, or $(0.23) per share, based on 53.9 million weighted average shares outstanding. During the fourth quarter of 2019, net loss was $(36.5) million, or $(0.70) per share, based on 52.2 million weighted average shares outstanding.

Full Year 2020 Financial Highlights

  • Revenue: Total GAAP revenue for the full year of 2020 was $48.1 million, up 32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to $36.4 million in 2019. Total non-GAAP revenue for the full year of 2020 was $48.8 million, up 20{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to $40.5 million in 2019.
  • Gross Profit: Gross profit for the full year of 2020 was $29.7 million, compared to $22.9 million in 2019. Gross margin for the full year of 2020 was 62{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, compared to 63{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} in 2019. Non-GAAP gross profit for the full year of 2020 was $31.2 million, compared to $27.2 million in 2019. Non- GAAP gross margin for the full year of 2020 was 64{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, compared to 67{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} in 2019.
  • Operating (Loss): Operating loss for the full year of 2020 was $(42.7) million, compared to an operating loss of $(105.5) million in the full year of 2019. Non-GAAP operating loss for the full year of 2020 was $(11.1) million, compared to an operating loss of $(19.9) million in the full year of 2019.
  • Net (Loss): Net loss for the full year of 2020 was $(44.0) million, or $(0.82) per share, based on 53.5 million weighted average shares outstanding.

Definitions and reconciliations of all non-GAAP financial measures and additional information regarding operating measures are included below in the section titled “Use of Non-GAAP Financial Measures” and in the accompanying tables. All comparisons in this press release are year-over-year over year unless otherwise provided.

Fourth Quarter 2020 Highlights and Key Metrics

  • Free cash flow positive for the quarter of $0.4 million
  • Replaced our $12 million unsecured credit facility with a $25 million secured credit facility
  • Raised $7 million through an equity sale in December 2020
  • The number of customers was 1,768 as of December 31, 2020, an increase of 15{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} from 1,542 as of December 31, 2019.

Additional information regarding our new customers, total customers and Annual Recurring Revenue and how each are calculated are included below.

Financial Outlook

As of February 16, 2021, GTY Technology Holdings is providing guidance for its first quarter and full year 2021 as follows:

  • First Quarter 2021 Guidance: Total Non-GAAP revenue is expected to be in the range of $12.5 million to $13.0 million or approximately 10{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} year over year growth.
  • Full Year 2021 Guidance: Total Non-GAAP revenue is expected to be in the range of $57.0 million to $60.0 million or approximately 20{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} year over year growth.

Conference Call and Webcast

GTY will hold its quarterly earnings call on February 16, 2021 at 4:30 p.m. ET. Conference call details for participation on the call are listed below. A transcript will also be posted to the Investor Relations section of our website at www.gtytechnology.com.

Investors and participants can register for the call in advance by registering here. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast here. The archived webcast will be available shortly after the call on the company website, www.gtytechnology.com.

About GTY Technology Holdings Inc.

GTY Technology Holdings Inc. (NASDAQ: GTYH) (“GTY”) brings leading public sector technology companies together to achieve a new standard in stakeholder engagement and resource management. Through its six business units, GTY offers an intuitive cloud-based suite of solutions for state and local governments, education institutions, and healthcare organizations spanning functions in procurement, payments, grant management, budgeting, and permitting: Bonfire provides strategic sourcing and procurement software to enable confident and compliant spending decisions; CityBase provides government payment solutions to connect constituents with utilities and government agencies; eCivis offers a grant management system to maximize grant revenues and track performance; Open Counter provides user-friendly software to guide applicants through complex permitting and licensing procedures; Questica offers budget preparation and management software to deliver on financial and non-financial strategic objectives; Sherpa provides public-sector budgeting software and consulting services.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The company’s actual results may differ from its expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the impact of the COVID-19 pandemic, or other public health crises, on our operations, our customers and the economy; (2) the risk that the ongoing integration of the businesses acquired in our business combination disrupts current plans and operations; (3) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably and retain its key employees; (4) our failure to generate sufficient cash flow from our business to make payments on our debt; (5) changes in applicable laws or regulations; (6) the possibility that the company may be adversely affected by other economic, business or competitive factors; and (7) other risks and uncertainties included in our Annual Report on Form 10-K for the year ended December 31, 2019 and our subsequent filings with the Securities and Exchange Commission. We caution you that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

Presentation of Predecessor and Successor Financial Results

As a result of the business combination, GTY is the acquirer for accounting purposes and Bonfire, CityBase, eCivis, Open Counter, Questica, and Sherpa are the acquirees and accounting predecessor. The company’s financial statement presentation distinguishes the company’s presentations into two distinct periods, the period up to the closing date (labeled “Predecessor”) and the period including and after that date (labeled “Successor”). The merger was accounted for as a business combination using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired.

Use of Non-GAAP Financial Measures

To supplement its condensed consolidated financial statements, which are prepared in accordance with U.S. generally accepted accounting principles, or GAAP, GTY has provided in this release certain financial measures that have not been prepared in accordance with GAAP defined as “non-GAAP financial measures,” which include (i) non-GAAP revenues, (ii) non-GAAP gross profit and non-GAAP gross margin, (iii) and non-GAAP loss from operations.

GTY’s management uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to the corresponding GAAP measures, in evaluating GTY’s ongoing operational performance and trends. However, it is important to note that particular items GTY excludes from, or includes in, its non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP financial measures has been provided in the tables included as part of this press release. In addition, as the business combination occurred on February 19, 2019, GTY believes reviewing the operating results on a pro forma basis is more useful in discussing the overall operating performance when compared to the same period in the prior year. Therefore, to compare the twelve months ended December 31, 2020 to the twelve months ended December 30, 2019, the company combined the GAAP and non-GAAP financial measures of the Predecessor period from January 1, 2019 through February 18, 2019 and the Successor period from February 19, 2019 through December 31, 2019 (“S/P Combined 2019”).

Non-GAAP Revenues. Non-GAAP revenues are defined as GAAP revenues adjusted for the impact of purchase accounting resulting from its business combination which reduced its acquired contract liabilities to fair value. The company believes that presenting non-GAAP revenues is useful to investors as it eliminates the impact of the purchase accounting adjustments to revenues to allow for a direct comparison between periods.

Non-GAAP Gross Profit and Non-GAAP Gross Margin. Non-GAAP gross profit is defined as GAAP gross profit adjusted for the impact of purchase accounting resulting its business combination and share-based compensation. Non-GAAP gross margin is defined as non-GAAP gross profit divided by non-GAAP revenues. The company believes that presenting non-GAAP gross profit and margin is useful to investors as it eliminates the impact of the purchase accounting adjustments to allow for a direct comparison between periods.

Non-GAAP Loss From Operations. Non-GAAP loss from operations is defined as GAAP loss from operations adjusted for the impact of purchase accounting to revenues resulting from its business combination, the amortization of acquired intangible assets, share-based compensation, acquisition related costs, goodwill impairment expense, restructuring expenses and the change in fair value of contingent consideration. The company believes that presenting non-GAAP loss from operations is useful to investors as it eliminates the impact of certain non-cash and acquisition related expenses to allow a direct comparison of loss from operations between periods.

Operating Metrics

We define the number of customers as the number of accounts with a unique account identifier for which we have an active contract in the period indicated. New customers have signed a new contract with a GTY entity in the period.

We define ARR as the annualized revenue run-rate of subscription, maintenance or transaction-based agreements from all customers at a point in time. For transaction based CityBase contracts we use the following calculation: For large projects (>$10K per month) with 12 months or more of history we use the trailing 12 months of history. For large projects with less than 12 months, we calculate an annualized value based on history available. For small projects (<$10K per month) we annualize the most recent month’s activity.

Exhibit 1
GTY Technology Holdings Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)

 

 

 

 

 

 

 

 

 

Successor

 

Predecessor

 

Three Months

Ended

 

Three Months

Ended

 

Year ended

 

February 19, 2019

through

 

January 1, 2019

through

 

December 31, 2020

 

December 31, 2019

 

December 31, 2020

 

December 31, 2019

 

February 18, 2019

Revenues

$

13,101

 

$

11,481

 

$

48,128

 

$

31,515

 

$

4,928

 

Cost of revenues

 

4,927

 

 

4,838

 

 

18,468

 

 

11,928

 

 

1,614

 

Gross Profit

 

8,174

 

 

6,643

 

 

29,660

 

 

19,587

 

 

3,314

 

 
Operating expenses
Sales and marketing (1)

 

3,754

 

 

4,002

 

 

16,150

 

 

13,088

 

 

1,394

 

General and administrative (1)

 

5,136

 

 

7,206

 

 

21,743

 

 

23,010

 

 

1,749

 

Research and development (1)

 

2,775

 

 

3,936

 

 

12,158

 

 

11,546

 

 

1,580

 

Amortization of intangible assets

 

3,683

 

 

3,414

 

 

14,681

 

 

12,809

 

 

32

 

Acquisition costs

 

 

 

3,797

 

 

 

 

36,988

 

 

151

 

Goodwill impairment

 

2,000

 

 

32,198

 

 

2,000

 

 

32,198

 

Restructuring charges

 

 

 

 

 

3,666

 

 

 

 

 

Change in fair value of contingent consideration

 

1,951

 

 

(5,323

)

 

1,980

 

 

(6,135

)

 

(37

)

Total operating expenses

 

19,299

 

 

49,230

 

 

72,378

 

 

123,504

 

 

4,869

 

Loss from operations

 

(11,125

)

 

(42,587

)

 

(42,718

)

 

(103,917

)

 

(1,555

)

 
Other income (expense)
Interest income (expense), net

 

(645

)

 

(23

)

 

(1,758

)

 

225

 

 

(170

)

Loss from repurchase/issuance of shares

 

(666

)

 

 

 

(2,056

)

 

(1,032

)

 

 

Other income (loss), net

 

(359

)

 

331

 

 

78

 

 

472

 

 

12

 

Total other income (expense), net

 

(1,670

)

 

308

 

 

(3,736

)

 

(335

)

 

(158

)

 
Loss before income taxes

 

(12,795

)

 

(42,279

)

 

(46,454

)

 

(104,252

)

 

(1,713

)

Benefit from income taxes

 

371

 

 

5,776

 

 

2,439

 

 

8,595

 

 

 

Net loss

 

(12,424

)

 

(36,503

)

 

(44,015

)

 

(95,657

)

 

(1,713

)

 
Deemed dividend for Exchangeable Shares – Series C

 

 

 

 

 

 

 

(183

)

 

 

Net loss applicable to common shareholders

$

(12,424

)

$

(36,503

)

$

(44,015

)

$

(95,840

)

$

(1,713

)

 
 
Net loss per share, basic and diluted

$

(0.23

)

$

(0.70

)

$

(0.82

)

$

(1.88

)

Weighted average common shares outstanding, basic and diluted

 

53,893

 

 

52,208

 

 

53,450

 

 

50,867

 

 
Net loss

$

(12,424

)

$

(36,503

)

$

(44,015

)

$

(95,657

)

$

(1,713

)

Other comprehensive loss:
Foreign currency translation gain (loss)

 

(677

)

 

 

 

(364

)

 

370

 

 

 

Total other comprehensive income (loss)

 

(677

)

 

 

 

(364

)

 

370

 

 

 

Comprehensive loss

$

(13,101

)

$

(36,503

)

$

(44,379

)

$

(95,287

)

$

(1,713

)

 
(1) Amounts include share-based compensation expense as follows:
Cost of revenues

$

236

 

$

229

 

$

811

 

$

229

 

$

 

Sales and Marketing

 

466

 

 

569

 

 

2,034

 

 

2,032

 

 

 

General and administrative

 

1,367

 

 

1,444

 

 

4,838

 

 

2,729

 

 

61

 

Research and development

 

214

 

 

320

 

 

938

 

 

439

 

 

 

Total share-based compensation expense

$

2,283

 

$

2,562

 

$

8,621

 

$

5,429

 

$

61

 

 
Exhibit 2
Reconciliations of non-GAAP Financial Measures
(in thousands)
(unaudited)
 

 

 

 

 

 

Non-GAAP Reconciliation

Three Months Ended

December 31, 2020

 

September 30, 2020

 

December 31, 2019

Revenues

$

13,101

 

$

12,587

 

$

11,481

 

Purchase accounting adjustment to revenue

 

126

 

 

128

 

 

529

 

Non-GAAP Revenues

$

13,227

 

$

12,715

 

$

12,010

 

 
 
Gross Profit

$

8,174

 

$

7,967

 

$

6,643

 

Purchase accounting adjustment to revenue

 

126

 

 

128

 

 

529

 

Share-based compensation

$

236

 

$

225

 

 

229

 

Non-GAAP Gross Profit

$

8,536

 

$

8,320

 

$

7,401

 

 
Gross Margin

 

62

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

63

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

58

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Non-GAAP Gross Margin

 

65

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

65

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

62

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 
Loss from operations

$

(11,125

)

$

(7,272

)

$

(42,587

)

Purchase accounting adjustment to revenue

 

126

 

 

128

 

 

529

 

Amortization of intangibles

 

3,683

 

 

3,683

 

 

3,414

 

Share-based compensation

 

2,283

 

 

2,024

 

 

2,562

 

Acquisition costs

 

 

 

 

 

3,797

 

Goodwill impairment expense

 

2,000

 

 

 

 

32,198

 

Restructuring charges

 

 

 

2

 

 

 

Change in fair value of contingent consideration

 

1,951

 

 

 

 

(5,323

)

Non-GAAP Loss from operations

$

(1,082

)

$

(1,435

)

$

(5,410

)

 
 

Year Ended December 31,

2020

 

2019

Revenues – Successor Period

$

48,128

 

$

31,515

 

Revenues – Predecessor Period

 

 

 

4,928

 

Pro forma as Adjusted Revenues

 

48,128

 

 

36,443

 

Purchase accounting adjustment to revenue

 

715

 

 

4,104

 

Non-GAAP Pro forma as Adjusted Revenues

$

48,843

 

$

40,547

 

 
 
Gross Profit – Successor Period

$

29,660

 

$

19,587

 

Gross Profit – Predecessor Period

 

 

 

3,314

 

Pro forma as Adjusted Gross Profit

 

29,660

 

 

22,901

 

Purchase accounting adjustment to revenue

 

715

 

 

4,104

 

Share-based compensation

 

811

 

 

229

 

Non-GAAP Pro forma as Adjusted Gross Profit

$

31,186

 

$

27,234

 

 
Gross Margin – Successor Period

 

62

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

62

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Gross Margin – Predecessor Period

 

N/A

 

 

67

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Pro forma as Adjusted Gross Margin

 

62

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

63

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Non-GAAP Pro forma as Adjusted Gross Margin

 

64

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

67

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 
Loss from operations – Successor Period

$

(42,718

)

$

(103,917

)

Loss from operations – Predecessor Period

 

 

 

(1,555

)

Pro forma as Adjusted Loss from operations

 

(42,718

)

 

(105,472

)

Purchase accounting adjustment to revenue

 

715

 

 

4,104

 

Amortization of intangibles

 

14,681

 

 

12,841

 

Share-based compensation

 

8,621

 

 

5,490

 

Acquisition costs

 

 

 

37,139

 

Goodwill impairment expense

 

2,000

 

 

32,198

 

Restructuring charges

 

3,666

 

 

 

Change in fair value of contingent consideration

 

1,980

 

 

(6,172

)

Non-GAAP Pro forma as Adjusted Loss from operations

$

(11,055

)

$

(19,872

)

 
Exhibit 3
GTY Technology Holdings Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 

December 31,

 

December 31,

2020

 

2019

Assets
Current assets:
Cash and cash equivalents

$

22,800

 

$

8,374

 

Accounts receivable, net

 

9,994

 

 

9,184

 

Prepaid expenses and other current assets

 

2,583

 

 

3,047

 

Total current assets

 

35,377

 

 

20,605

 

 
Property and equipment, net

 

3,891

 

 

1,697

 

Intangible assets, net

 

101,107

 

 

115,788

 

Goodwill

 

284,635

 

 

286,635

 

Other assets

 

8,797

 

 

9,668

 

Total assets

$

433,807

 

$

434,393

 

 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued expenses

$

6,366

 

$

8,443

 

Deferred revenue – current portion

 

22,304

 

 

17,346

 

Contingent consideration – current portion

 

743

 

 

12,680

 

Other current liabilities

 

1,830

 

 

2,406

 

Total current liabilities

 

31,243

 

 

40,875

 

 
Deferred revenue – less current portion

 

1,602

 

 

1,264

 

Deferred tax liability

 

17,494

 

 

20,276

 

Contingent consideration – less current portion

 

42,530

 

 

41,233

 

Term loan, net

 

26,632

 

 

 

Other long-term liabilities

 

4,501

 

 

5,122

 

Total liabilities

 

124,002

 

 

108,770

 

 
Commitments and contingencies
 
Shareholders’ equity:
Common stock

 

6

 

 

5

 

Exchangeable shares

 

54,224

 

 

45,681

 

Additional paid in capital

 

390,232

 

 

369,756

 

Accumulated other comprehensive income

 

6

 

 

370

 

Treasury stock

 

(5,633

)

 

(5,174

)

Accumulated deficit

 

(129,030

)

 

(85,015

)

Total shareholders’ equity

 

309,805

 

 

325,623

 

Total liabilities and shareholders’ equity

$

433,807

 

$

434,393

 

 
Exhibit 4
GTY Technology Holdings Inc.
Condensed Statement of Cash Flows
(in thousands)
(unaudited)
 

Successor

 

Predecessor

 

Year ended

 

February 19, 2019

through

 

January 1, 2019

through

 

December 31, 2020

 

December 31, 2019

 

February 18, 2019

Cash flows from operating activities:
Net loss

$

(44,015

)

$

(95,657

)

$

(1,713

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment

 

863

 

 

355

 

 

148

 

Amortization of intangible assets

 

14,681

 

 

12,809

 

 

32

 

Amortization of right of use assets

 

2,034

 

 

1,298

 

 

194

 

Share-based compensation

 

8,621

 

 

5,429

 

 

61

 

Deferred income tax benefit

 

(2,439

)

 

(8,595

)

 

 

Loss on issuance of shares

 

2,056

 

 

 

 

 

Goodwill impairment

 

2,000

 

 

32,198

 

 

 

Change in fair value of contingent consideration

 

1,980

 

 

(6,135

)

 

(37

)

Amortization of deferred issuance costs

 

759

 

 

 

 

 

Other

 

165

 

 

(26

)

 

(12

)

Changes in operating assets and liabilities:
Accounts receivable

 

(818

)

 

(5,276

)

 

2,190

 

Prepaid expenses and other assets

 

(725

)

 

(1,536

)

 

202

 

Accounts payable and accrued liabilities

 

(2,372

)

 

(1,000

)

 

(781

)

Deferred revenue and other liabilities

 

6,335

 

 

9,985

 

 

 

Operating lease liabilities

 

(2,099

)

 

(1,079

)

 

 

Net cash (used in) provided by operating activities

 

(12,974

)

 

(57,230

)

 

284

 

 
Cash flows from investing activities:
Proceeds from cash held in trust

 

 

 

217,642

 

 

 

Sale of marketable securities

 

 

 

 

 

1,531

 

Acquisitions, net of cash acquired

 

 

 

(179,423

)

 

 

Capitalization of internal-use software

 

(311

)

 

(793

)

 

 

Capital expenditures

 

(2,712

)

 

(639

)

 

(15

)

Net cash (used in) provided by operating activities

 

(3,023

)

 

36,787

 

 

1,516

 

 
Cash flows from financing activities:
Proceeds from borrowings, net of issuance costs

 

37,803

 

 

 

 

35

 

Repayment of borrowings

 

(12,000

)

 

(486

)

 

(69

)

Contingent consideration payments

 

(1,286

)

 

(920

)

 

 

Proceeds received from private placement of Common Stock, net of costs

 

7,000

 

 

25,450

 

 

 

Common stock repurchases

 

(459

)

 

(4,174

)

 

 

Redemption of Class A Ordinary Shares

 

 

 

(113,982

)

 

 

Proceeds received from private placement of Class A shares, net of costs

 

 

 

125,258

 

 

 

Redemption of Exchangeable Shares – Class C

 

 

 

(1,323

)

 

 

Other

 

(548

)

 

(1,262

)

 

(505

)

Net cash provided by (used in) financing activities

 

30,510

 

 

28,561

 

 

(539

)

 
Effect of foreign currency on cash

 

(87

)

 

204

 

 

(721

)

 
Net change in cash and cash equivalents

 

14,426

 

 

8,322

 

 

540

 

Cash and cash equivalents, beginning of period

 

8,374

 

 

52

 

 

13,929

 

Cash and cash equivalents, end of period

 

22,800

 

 

8,374

 

 

14,469

 

 

 

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