crnc-10q_20200630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 June 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: 001-39030

 

CERENCE INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

83-4177087

( State or other jurisdiction of

incorporation or organization)

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

15 Wayside Road

Burlington, Massachusetts

01803

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (857) 362-7300

 

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 $0.01 per share

 

CRNC

 

The Nasdaq Global Select Market

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  

As of July 30, 2020, the registrant had 36,722,585 shares of common stock, $0.01 par value per share, outstanding.

 

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

2

Item 1.

Consolidated and Combined Financial Statements (Unaudited)

2

 

Statements of Operations

2

 

Statements of Comprehensive (Loss) Income

3

 

Balance Sheets

4

 

Statements of Equity

5

 

Statements of Cash Flows

7

 

Notes to Consolidated and Combined Financial Statements

8

Item 2.

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

28

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

45

Item 4.

Controls and Procedures

46

PART II.

OTHER INFORMATION

47

Item 1.

Legal Proceedings

47

Item 1A.

Risk Factors

47

Item 6.

Exhibits

50

Signatures

51

 

 

i


CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Form 10-Q”), filed by Cerence Inc. together with its consolidated subsidiaries, “Cerence” or the “Company,” “we,” “us” or “our” unless the context indicates otherwise, contains “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and our business and financial results. Forward-looking statements often include words such as “anticipates,” “estimates,” “expects,” “projects,” “forecasts,” “intends,” “plans,” “continues,” “believes,” “may,” “will,” “goals” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this Form 10-Q are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to:

 

the duration and severity of the COVID-19 pandemic and its impact on our business and financial performance;

 

adverse conditions in the automotive industry or the global economy more generally, including as a result of the COVID-19 pandemic;

 

our employees represented by workers councils or unions or are subject to local laws that are less favorable to employers than the laws of the U.S.;

 

the highly competitive and rapidly changing market in which we operate;

 

our strategy to increase cloud services and fluctuations in our operating results;

 

escalating pricing pressures from our customers;

 

our failure to win, renew or implement service contracts;

 

the cancellation or postponement of service contracts after a design win;

 

the loss of business from any of our largest customers;

 

transition difficulties with our first senior management team;

 

inability to recruit and retain qualified personnel;

 

cybersecurity and data privacy incidents that damage client relations;

 

economic, political, regulatory, foreign exchange and other risks of international operations;

 

unforeseen U.S. and foreign tax liabilities;

 

the failure to protect our intellectual property or allegations that we have infringed the intellectual property of others;

 

defects in our software products that result in lost revenue, expensive corrections or claims against us;

 

our inability to quickly respond to changes in technology and to develop our intellectual property into commercially viable products;

 

a significant interruption in the supply or maintenance of our third-party hardware, software, services or data; and

 

certain factors discussed elsewhere in this Form 10-Q.

These and other factors are more fully discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 and elsewhere in this Form 10-Q, including Part II, “Item 1A, Risk Factors”. These risks could cause actual results to differ materially from those implied by forward-looking statements in this Form 10-Q. Even if our results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this Form 10-Q, those results or developments may not be indicative of results or developments in subsequent periods.

Any forward-looking statements made by us in this Form 10-Q speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.

1


PART I—FINANCIAL INFORMATION

Item 1. Consolidated and Combined Financial Statements.

CERENCE INC.

CONSOLIDATED STATEMENT OF OPERATIONS FOR JUNE 30, 2020

COMBINED STATEMENT OF OPERATIONS FOR JUNE 30, 2019

(Dollars in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License

 

$

32,454

 

 

$

43,961

 

 

$

117,843

 

 

$

127,287

 

Connected services

 

 

24,996

 

 

 

19,717

 

 

 

71,148

 

 

 

55,830

 

Professional services

 

 

17,360

 

 

 

13,891

 

 

 

49,773

 

 

 

37,240

 

Total revenues

 

 

74,810

 

 

 

77,569

 

 

 

238,764

 

 

 

220,357

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License

 

 

820

 

 

 

521

 

 

 

2,344

 

 

 

1,428

 

Connected services

 

 

7,191

 

 

 

8,232

 

 

 

24,742

 

 

 

28,591

 

Professional services

 

 

17,529

 

 

 

12,943

 

 

 

48,773

 

 

 

36,132

 

Amortization of intangible assets

 

 

2,063

 

 

 

1,979

 

 

 

6,408

 

 

 

6,175

 

Total cost of revenues

 

 

27,603

 

 

 

23,675

 

 

 

82,267

 

 

 

72,326

 

Gross profit

 

 

47,207

 

 

 

53,894

 

 

 

156,497

 

 

 

148,031

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

22,041

 

 

 

22,975

 

 

 

66,898

 

 

 

69,344

 

Sales and marketing

 

 

9,180

 

 

 

8,232

 

 

 

24,829

 

 

 

27,476

 

General and administrative

 

 

14,261

 

 

 

6,237

 

 

 

36,456

 

 

 

17,647

 

Amortization of intangible assets

 

 

3,120

 

 

 

3,132

 

 

 

9,376

 

 

 

9,396

 

Restructuring and other costs, net

 

 

3,301

 

 

 

9,691

 

 

 

13,725

 

 

 

17,147

 

Acquisition-related costs

 

 

 

 

 

366

 

 

 

 

 

 

783

 

Total operating expenses

 

 

51,903

 

 

 

50,633

 

 

 

151,284

 

 

 

141,793

 

(Loss) income from operations

 

 

(4,696

)

 

 

3,261

 

 

 

5,213

 

 

 

6,238

 

Interest income

 

 

38

 

 

 

 

 

 

563

 

 

 

 

Interest expense

 

 

(5,546

)

 

 

 

 

 

(19,043

)

 

 

 

Other income (expense), net

 

 

(20,446

)

 

 

(150

)

 

 

(20,366

)

 

 

100

 

(Loss) income before income taxes

 

 

(30,650

)

 

 

3,111

 

 

 

(33,633

)

 

 

6,338

 

(Benefit from) provision for income taxes

 

 

(2,469

)

 

 

1,341

 

 

 

(6,185

)

 

 

1,859

 

Net (loss) income

 

$

(28,181

)

 

$

1,770

 

 

$

(27,448

)

 

$

4,479

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.77

)

 

$

0.05

 

 

$

(0.76

)

 

$

0.12

 

Diluted

 

$

(0.77

)

 

$

0.05

 

 

$

(0.76

)

 

$

0.12

 

Weighted-average common share outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,509

 

 

 

36,391

 

 

 

36,315

 

 

 

36,391

 

Diluted

 

 

36,509

 

 

 

36,391

 

 

 

36,315

 

 

 

36,391

 

 

Refer to accompanying Notes to the unaudited consolidated and combined financials statements.

2


CERENCE INC.

CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS FOR JUNE 30, 2020

COMBINED STATEMENT OF COMPREHENSIVE INCOME FOR JUNE 30, 2019

(Dollars in thousands)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net (loss) income

 

$

(28,181

)

 

$

1,770

 

 

$

(27,448

)

 

$

4,479

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

6,382

 

 

 

1,768

 

 

 

4,002

 

 

 

(1,412

)

Pension adjustments

 

 

16

 

 

 

(138

)

 

 

1,032

 

 

 

229

 

Total other comprehensive income (loss)

 

 

6,398

 

 

 

1,630

 

 

 

5,034

 

 

 

(1,183

)

Comprehensive (loss) income

 

$

(21,783

)

 

$

3,400

 

 

$

(22,414

)

 

$

3,296

 

 

Refer to accompanying Notes to the unaudited consolidated and combined financials statements.

3


CERENCE INC.

CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2020 (UNAUDITED)

COMBINED BALANCE SHEET AS OF SEPTEMBER 30, 2019

(Dollars in thousands, except per share amounts)

 

 

 

June 30, 2020

 

 

September 30, 2019

 

ASSETS

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

132,844

 

 

$

-

 

Accounts receivable, net of allowances of $1,406 and $865 at June 30, 2020 and September 30, 2019, respectively

 

 

62,566

 

 

 

65,787

 

Deferred costs

 

 

6,679

 

 

 

9,195

 

Prepaid expenses and other current assets

 

 

34,389

 

 

 

17,343

 

Total current assets

 

 

236,478

 

 

 

92,325

 

Property and equipment, net

 

 

28,366

 

 

 

20,113

 

Deferred costs

 

 

36,913

 

 

 

32,428

 

Operating lease right of use assets

 

 

19,547

 

 

 

 

Goodwill

 

 

1,121,616

 

 

 

1,119,329

 

Intangible assets, net

 

 

50,152

 

 

 

65,561

 

Deferred tax assets

 

 

160,140

 

 

 

150,629

 

Other assets

 

 

15,863

 

 

 

3,444

 

Total assets

 

$

1,669,075

 

 

$

1,483,829

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

11,637

 

 

$

16,687

 

Deferred revenue

 

 

116,894

 

 

 

88,233

 

Short-term operating lease liabilities

 

 

5,727

 

 

 

 

Short-term debt

 

 

6,250

 

 

 

 

Accrued expenses and other current liabilities

 

 

54,672

 

 

 

24,194

 

Total current liabilities

 

 

195,180

 

 

 

129,114

 

Long-term debt

 

 

267,172

 

 

 

 

Deferred revenue, net of current portion

 

 

219,197

 

 

 

265,051

 

Long-term operating lease liabilities

 

 

16,305

 

 

 

 

Other liabilities

 

 

32,528

 

 

 

21,536

 

Total liabilities

 

 

730,382

 

 

 

415,701

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 600,000 shares authorized as of June 30, 2020; 36,520 shares issued and outstanding as of June 30, 2020

 

 

366

 

 

 

 

Net parent investment

 

 

-

 

 

 

1,097,127

 

Accumulated other comprehensive loss

 

 

(8,237

)

 

 

(28,999

)

Additional paid-in capital

 

 

974,012

 

 

 

 

Accumulated deficit

 

 

(27,448

)

 

 

 

Total stockholders' equity

 

 

938,693

 

 

 

1,068,128

 

Total liabilities and stockholders' equity

 

$

1,669,075

 

 

$

1,483,829

 

 

Refer to accompanying Notes to the unaudited consolidated and combined financials statements.

4


CERENCE INC.

CONSOLIDATED STATEMENT OF EQUITY AND

COMBINED STATEMENT OF CHANGES IN PARENT COMPANY EQUITY

(Dollars in thousands)

(unaudited)

 

 

Three Months Ended June 30, 2020

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Earnings (Deficit)

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

 

Balance at March 31, 2020

 

 

36,458

 

 

 

365

 

 

 

949,916

 

 

 

733

 

 

 

-

 

 

 

(14,635

)

 

 

936,379

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(28,181

)

 

 

-

 

 

 

-

 

 

 

(28,181

)

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,398

 

 

 

6,398

 

Stock issued pursuant to employee stock plans

 

 

62

 

 

 

1

 

 

 

(696

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(695

)

Convertible Senior Notes conversion feature (net of taxes of $4,678 and issuance costs of $629)

 

 

-

 

 

 

-

 

 

 

14,369

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14,369

 

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

10,423

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,423

 

Balance at June 30, 2020

 

 

36,520

 

 

$

366

 

 

$

974,012

 

 

$

(27,448

)

 

$

 

 

$

(8,237

)

 

$

938,693

 

 

 

Three Months Ended June 30, 2019

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Earnings

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

 

Balance at March 31, 2019

 

 

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,009,956

 

 

$

(26,770

)

 

$

983,186

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,770

 

 

 

-

 

 

 

1,770

 

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,630

 

 

 

1,630

 

Net transfer to Parent

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(21,710

)

 

 

-

 

 

 

(21,710

)

Balance at June 30, 2019

 

 

-

 

 

$

 

 

$

 

 

$

 

 

$

990,016

 

 

$

(25,140

)

 

$

964,876

 

 

5


CERENCE INC.

CONSOLIDATED STATEMENT OF EQUITY AND

COMBINED STATEMENT OF CHANGES IN PARENT COMPANY EQUITY (Cont.)

(Dollars in thousands)

(unaudited)

 

 

Nine Months Ended June 30, 2020

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

 

Balance at September 30, 2019

 

 

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,097,127

 

 

$

(28,999

)

 

$

1,068,128

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(27,448

)

 

 

-

 

 

 

-

 

 

 

(27,448

)

Other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,034

 

 

 

5,034

 

Distribution to Parent

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(152,978

)

 

 

-

 

 

 

(152,978

)

Net (decrease) increase in net parent investment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,275

)

 

 

15,728

 

 

 

11,453

 

Reclassification of net parent investment in Cerence

 

 

-

 

 

 

-

 

 

 

939,874

 

 

 

-

 

 

 

(939,874

)

 

 

-

 

 

 

 

Issuance of common stock at separation

 

 

36,391

 

 

 

364

 

 

 

(364

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

Stock issued pursuant to employee stock plans

 

 

129

 

 

 

2

 

 

 

(1,615

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,613

)

Convertible Senior Notes conversion feature (net of taxes of $4,678 and issuance costs of $629)

 

 

-

 

 

 

-

 

 

 

14,369

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14,369

 

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

21,748

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21,748

 

Balance at June 30, 2020

 

 

36,520

 

 

$

366

 

 

$

974,012

 

 

$

(27,448

)

 

$

 

 

$

(8,237

)

 

$

938,693

 

 

 

Nine Months Ended June 30, 2019

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Earnings

 

 

Net

Parent

Investment

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Total

 

Balance at September 30, 2018 (As reported, ASC 605)

 

 

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,017,276

 

 

$

(23,957

)

 

$

993,319

 

Accumulated adjustment related to the adoption of ASC 606

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,974

 

 

 

-

 

 

 

6,974

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,479

 

 

 

-

 

 

 

4,479

 

Other comprehensive loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,183

)

 

 

(1,183

)

Net transfer to Parent

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(38,713

)

 

 

-

 

 

 

(38,713

)

Balance at June 30, 2019

 

 

-

 

 

$

 

 

$

 

 

$

 

 

$

990,016

 

 

$

(25,140

)

 

$

964,876

 

 

 

Refer to accompanying Notes to the unaudited consolidated and combined financials statements.

6


CERENCE INC.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR JUNE 30, 2020

COMBINED STATEMENT OF CASH FLOWS FOR JUNE 30, 2019

(Dollars in thousands)

(unaudited)

 

 

 

Nine Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(27,448

)

 

$

4,479

 

Adjustments to reconcile net (loss) income to net cash provided by operations:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

22,704

 

 

 

21,522

 

Provision for doubtful accounts

 

 

525

 

 

 

 

Stock-based compensation

 

 

32,954

 

 

 

21,195

 

Non-cash interest expense

 

 

4,025

 

 

 

 

Loss on debt extinguishment

 

 

19,279

 

 

 

 

Deferred tax benefit

 

 

(12,572

)

 

 

(469

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

3,853

 

 

 

(7,368

)

Prepaid expenses and other assets

 

 

(21,328

)

 

 

(5,513

)

Deferred costs

 

 

(749

)

 

 

1,876

 

Accounts payable

 

 

(170

)

 

 

6,674

 

Accrued expenses and other liabilities

 

 

19,283

 

 

 

4,441

 

Deferred revenue

 

 

(21,779

)

 

 

21,822

 

Net cash provided by operating activities

 

 

18,577

 

 

 

68,659

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(16,075

)

 

 

(2,868

)

Net cash used in investing activities

 

 

(16,075

)

 

 

(2,868

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net transaction with Parent

 

 

12,964

 

 

 

(65,791

)

Distribution to Parent

 

 

(152,978

)

 

 

 

Proceeds from long-term debt, net of discount

 

 

547,719

 

 

 

 

Payments for long-term debt issuance costs

 

 

(5,765

)

 

 

 

Principal payments of long-term debt

 

 

(270,000

)

 

 

 

Common stock repurchases for tax withholdings for net settlement of equity awards

 

 

(1,613

)

 

 

 

Principal payment of lease liabilities arising from a finance lease

 

 

(96

)

 

 

 

Net cash provided by (used in) financing activities

 

 

130,231

 

 

 

(65,791

)

Effects of exchange rate changes on cash and cash equivalents

 

 

111

 

 

 

 

Net change in cash and cash equivalents

 

 

132,844

 

 

 

 

Cash and cash equivalents at beginning of period