×

LogMeIn Announces Fourth Quarter and Fiscal Year 2016 Results

BOSTON, Feb. 28, 2017 (GLOBE NEWSWIRE) -- LogMeIn, Inc. (NASDAQ:LOGM), a leading provider of cloud-based connectivity, today announced its results for the fourth quarter and fiscal year ended December 31, 2016.

Fourth quarter 2016 highlights include:

  • Revenue was $88.0 million, up 16% compared to the fourth quarter of 2015
  • EBITDA was $7.4 million and EBITDA margin was 8.4% compared to $11.1 million and 14.6% in the fourth quarter of 2015
  • Adjusted EBITDA was $26.7 million and adjusted EBITDA margin was 30.4% compared to $20.9 million and 27.5% in the fourth quarter of 2015
  • Net income was $1.9 million, or $0.07 per diluted share, as compared to $6.2 million, or $0.24 per diluted share, in the fourth quarter of 2015
  • Non-GAAP net income was $16.4 million, or $0.62 per diluted share, as compared to $13.2 million, or $0.51 per diluted share, in the fourth quarter of 2015
  • Cash Flow from Operations was $8.2 million, or 9% of revenue
  • Adjusted Cash Flow from Operations was $18.1 million, or 21% of revenue
  • Total deferred revenue was $162.3 million, up 18% from $137.0 million in the fourth quarter of 2015
  • The Company closed the quarter with cash, cash equivalents and short-term investments of $196.5 million

Fiscal year 2016 highlights include:

  • Revenue was $336.1 million, up 24% compared to fiscal year 2015
  • EBITDA was $25.9 million and EBITDA margin was 7.7% compared to $29.7 million and 11.0% in fiscal year 2015
  • Adjusted EBITDA was $89.5 million and adjusted EBITDA margin was 26.6% compared to $67.6 million and 24.9% in fiscal year 2015
  • Net income was $2.6 million, or $0.10 per diluted share, as compared to $14.6 million, or $0.56 per diluted share, for fiscal year 2015
  • Non-GAAP net income was $53.0 million, or $2.03 per diluted share, as compared to $42.7 million, or $1.66 per diluted share, in fiscal year 2015
  • Cash Flow from Operations was $92.3 million, or 27% of revenue
  • Adjusted Cash Flow from Operations was $110.1 million, or 33% of revenue

“We had a very good fourth quarter and ended the year on a high note, as we delivered revenue, adjusted EBITDA, and non-GAAP earnings per share that all exceeded the high-end of our guidance. This strong finish only adds to our confidence as we enter an exciting new chapter for LogMeIn, and set out to build what we believe will be a unique new profile amongst cloud and SaaS leaders,” said Bill Wagner, President and CEO of LogMeIn.

“As we look to 2017, our focus is on making the integration of LogMeIn and GoTo a success, laying the foundation for a company we believe over the long term can achieve 10 percent annual revenue growth, 40 percent adjusted EBITDA margins, and 30 percent cash flow margins. This unique financial profile also allows us to make a commitment to a meaningful return of capital to our shareholders,” continued Wagner.

Returning Capital to Stockholders
On February 23, 2017, the Company’s Board of Directors approved a three-year capital return plan. Pursuant to the plan, the Company intends to return to stockholders approximately 75% of the Company’s free cash flow over the period, up to $700 million, through a combination of share repurchases and dividends. As part of this capital return plan, the Company is initiating a quarterly cash dividend of $0.25 per share. The first $0.25 per share dividend under this plan will be paid on May 26, 2017 to stockholders of record on May 10, 2017. LogMeIn currently has approximately 52.6 million shares of common stock outstanding.

The Board of Directors will continue to review this capital return plan for potential modifications based on the Company’s financial performance, business outlook and other considerations. The timing and number of shares to be repurchased will depend upon prevailing market conditions and other factors, including potential tax restrictions imposed on the Company related to its recent merger and the resolution of the Company’s related IRS private letter ruling.

Business Outlook
Based on information available as of February 28, 2017, the Company is issuing guidance for the first quarter 2017 and fiscal year 2017.

Since the Company’s merger with Citrix Systems, Inc.’s GetGo, Inc. subsidiary (referred to below as “GoTo”) officially closed on January 31, 2017, the Company’s business outlook for both the first quarter and fiscal year 2017 exclude GoTo’s January 2017 results.

First Quarter 2017: The Company expects first quarter non-GAAP revenue to be in the range of $196 million to $198 million, which excludes GoTo’s standalone January revenue of $58 million. The Company expects first quarter GAAP revenue to be in the range of $183 million to $185 million. Non-GAAP revenue adds back $13 million for the impact of an acquisition accounting adjustment recorded to reduce GoTo’s deferred revenue balance to the fair value of the remaining obligation.

EBITDA is expected to be in the range of $2 million to $4 million, or approximately 1% to 2% of GAAP revenue. Adjusted EBITDA is expected to be in the range of $59 million to $61 million, or approximately 30% to 31% of non-GAAP revenue.

Non-GAAP net income is expected to be in the range of $32 million to $34 million, or $0.72 to $0.76 per diluted share. Non-GAAP net income adds back the non-GAAP revenue adjustment described above and excludes an estimated $14 million in stock-based compensation expense, $30 million in acquisition related costs, $33 million of amortization expense and includes $5 million of amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items.

Non-GAAP net income for the first quarter assumes an effective tax rate of approximately 30% and non-GAAP net income per diluted share is based on an estimated 45 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense, acquisition related costs, amortization expense, and excluding the purchase accounting adjustments to revenue and amortization expense, the Company expects to report a GAAP net loss in the range of ($23) million to ($21) million, or ($0.54) to ($0.48) per share.

GAAP net loss for the first quarter assumes a tax benefit of approximately $15 million and GAAP net loss per share is based on an estimated 43 million weighted average basic shares outstanding.

Fiscal Year 2017: The Company expects full year 2017 non-GAAP revenue to be in the range of $1.00 billion to $1.01 billion, which excludes GoTo’s January revenue of $58 million. The Company expects full year 2017 GAAP revenue to be in the range of $968 million to $978 million. Non-GAAP revenue adds back $32 million for the impact of an acquisition accounting adjustment recorded to reduce GoTo’s deferred revenue balance to the fair value of the remaining obligation.

EBITDA is expected to be in the range of $182 million to $195 million, or approximately 19% to 20% of GAAP revenue. Adjusted EBITDA is expected to be in the range of $335 million to $348 million, or approximately 33% to 34% of non-GAAP revenue.

Non-GAAP net income is expected to be in the range of $190 million to $199 million, or $3.64 to $3.82 per diluted share. Non-GAAP net income excludes an estimated $73 million in stock-based compensation expense, $48 million in acquisition related costs, $178 million of amortization expense and includes $21 million of amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items.

Non-GAAP net income for the full fiscal year 2017 assumes an effective tax rate of approximately 30% and non-GAAP net income per diluted share is based on an estimated 52 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense, acquisition related costs, amortization expense, and excluding the purchase accounting adjustments to revenue and amortization expense, the Company expects to report a GAAP net income (loss) in the range of ($5) million to $3 million, or ($0.10) net loss per share to $0.06 net income per diluted share.

GAAP net income (loss) for the full year assumes a tax benefit in the range of $34 million to $29 million and GAAP net income (loss) per share is based on an estimated 52 million fully-diluted weighted average shares outstanding for net income and 51 million weighted average basic shares outstanding for net loss.

Conference Call Information for Today, Tuesday, February 28, 2017
The Company will host a corresponding conference call and live webcast at 5:00 p.m. Eastern Time today. To access the conference call, dial 888-397-5335 (for the U.S. and Canada) or 719-325-2434 (for international callers) and entering passcode 1914840. A live webcast will be available on the Investor Relations section of the Company’s corporate website at https://www.logmeininc.com and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time on February 28, 2017 until 8:00 p.m. Eastern Time on March 8, 2017, by dialing 888-203-1112 and entering passcode 1914840.

Non-GAAP Financial Measures
This press release contains non-GAAP financial measures including non-GAAP revenue, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and adjusted cash flow from operations.

  • Non-GAAP revenue is GAAP revenue excluding the impact of fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue.
  • EBITDA is GAAP net income excluding provision for income taxes, interest income, interest expense, and other (expense) income, net, and depreciation and amortization.
  • EBITDA margin is calculated by dividing EBITDA by revenue.
  • Adjusted EBITDA is GAAP net income excluding provision for income taxes, interest income, interest expense, and other (expense) income, net, the impact of fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue, depreciation and amortization, acquisition related costs, stock-based compensation expense, and litigation related expense.
  • Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue, or GAAP revenue if not different.
  • Non-GAAP operating income excludes the impact of fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue, acquisition related costs and amortization, stock-based compensation expense, and litigation related expense and includes amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value.
  • Non-GAAP provision for income taxes excludes the tax impact of the fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue, acquisition related costs and amortization, stock-based compensation expense, litigation related expense, and amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value.
  • Non-GAAP net income and non-GAAP net income per diluted share reflects the adjustments noted in Non-GAAP operating income above the and their related tax impact.
  • Adjusted cash flow from operations excludes payments and receipts for litigation related expense and acquisition related costs.

The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures. The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods and uses these measures in financial reports prepared for management and the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors. The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, and not to rely on any single financial measure to evaluate the Company's business. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.
LogMeIn, Inc. (NASDAQ:LOGM) simplifies how people connect with each other and the world around them to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. One of the world’s top 10 public SaaS companies, and a market leader in communication & conferencing, identity & access, and customer engagement & support solutions, LogMeIn has millions of customers spanning virtually every country across the globe. LogMeIn is headquartered in Boston with additional locations in North America, Europe, Asia and Australia.

Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the popularity, value and effectiveness of the Company's products and services, the Company’s ability to build a new financial profile post-merger, the success or timing of integration efforts, the Company’s future revenue growth, EBITDA margins and cash flow, the Company’s Capital Return Plan, and the Company's financial guidance for fiscal year 2017 and the first quarter of 2017. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, dependence on the remote support and cloud computing market, customer adoption of the Company's solutions, the Company’s ability to execute on its strategic initiatives, failure to realize the estimated synergies or growth from the Company’s merger with GetGo, Inc. or that such benefits may take longer to realize than expected, the Company’s ability to integrate acquired products or companies, the disruption of ongoing business operations and the diversion of management’s attention due to the work required to successfully integrate GoTo’s business, unanticipated costs of integration, the Company's ability to attract new customers and retain existing customers, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the Company operates, the effectiveness of the Company’s cybersecurity measures, intellectual property litigation, the Company's ability to continue to promote and maintain its brand in a cost-effective manner, the Company's ability to compete effectively, the Company's ability to develop and introduce new products and add-ons or enhancements to existing products, the Company's ability to manage growth, the Company's ability to attract and retain key personnel, the Company's ability to protect its intellectual property and other proprietary rights, the result of any pending litigation, and other risks detailed in the Company's other publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

LogMeIn is a registered trademark of LogMeIn, Inc. in the US and other countries around the world.



LogMeIn, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
December 31, December 31,
2015 2016
ASSETS
Current assets:
Cash and cash equivalents $ 123,143 $ 140,756
Marketable securities 85,284 55,710
Accounts receivable, net 16,011 25,901
Prepaid expenses and other current assets 11,997 5,723
Total current assets 236,435 228,090
Property and equipment, net 21,711 23,867
Restricted cash 2,467 2,481
Intangibles, net 71,590 62,510
Goodwill 117,545 121,760
Other assets 5,753 4,282
Deferred tax assets 198 303
Total assets $ 455,699 $ 443,293
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 10,327 $ 14,640
Accrued liabilities 31,674 35,253
Deferred revenue, current portion 134,297 156,966
Total current liabilities 176,298 206,859
Long-term debt 60,000 30,000
Deferred revenue, net of current portion 2,692 5,287
Deferred tax liabilities 5,812 2,332
Other long-term liabilities 3,086 2,699
Total liabilities 247,888 247,177
Commitments and contingencies
Preferred stock - -
Equity:
Common stock 275 284
Additional paid-in capital 276,793 314,700
Retained earnings (accumulated deficit) 21,074 (1,754)
Accumulated other comprehensive loss (5,216) (6,618)
Treasury stock (85,115) (110,496)
Total equity 207,811 196,116
Total liabilities and equity $ 455,699 $ 443,293

LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
2015 2016 2015 2016
Revenue $ 76,084 $ 87,965 $ 271,600 $ 336,068
Cost of revenue 10,263 11,380 35,458 45,501
Gross profit 65,821 76,585 236,142 290,567
Operating expenses
Research and development 12,839 13,622 42,597 57,193
Sales and marketing 36,027 39,278 138,946 162,811
General and administrative 9,263 20,343 33,034 60,693
Legal settlements - - 3,600 -
Amortization of acquired intangibles 1,072 1,354 1,916 5,457
Total operating expenses 59,201 74,597 220,093 286,154
Income from operations 6,620 1,988 16,049 4,413
Interest income 123 152 654 698
Interest expense (314) (309) (574) (1,403)
Other income (expense), net 411 176 1,389 (500)
Income before income taxes 6,840 2,007 17,518 3,208
Provision for income taxes (605) (145) (2,960) (570)
Net income $ 6,235 $ 1,862 $ 14,558 $ 2,638
Net income per share:
Basic $ 0.25 $ 0.07 $ 0.59 $ 0.10
Diluted $ 0.24 $ 0.07 $ 0.56 $ 0.10
Weighted average shares outstanding:
Basic 25,103 25,528 24,826 25,305
Diluted 25,955 26,444 25,780 26,164

LogMeIn, Inc.
Calculation of Non-GAAP Operating Income, Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)
(In thousands, except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
2015 2016 2015 2016
GAAP Income from operations $ 6,620 $ 1,988 $ 16,049 $ 4,413
Add Back:
Stock-based compensation expense 7,264 11,023 26,499 38,350
Litigation related expenses 87 113 4,963 148
Acquisition related costs and amortization 4,412 10,683 11,216 35,124
Non-GAAP Operating income 18,383 23,807 58,727 78,035
Interest and other (expense) income, net 220 19 1,469 (1,205)
Non-GAAP Income before income taxes 18,603 23,826 60,196 76,830
Non-GAAP Provision for income taxes (5,392) (7,383) (17,528) (23,825)
Non-GAAP Net income $ 13,211 $ 16,443 $ 42,668 $ 53,005
Non-GAAP net income per diluted share $ 0.51 $ 0.62 $ 1.66 $ 2.03
Diluted weighted average shares outstanding used in
computing per share amounts 25,955 26,444 25,780 26,164
Calculation of EBITDA and Adjusted EBITDA (unaudited)
(In thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
2015 2016 2015 2016
GAAP Net income $ 6,235 $ 1,862 $ 14,558 $ 2,638
Add Back:
Interest and other (income) expense, net (220) (19) (1,469) 1,205
Income tax expense 605 145 2,960 570
Depreciation and amortization expense 4,466 5,429 13,698 21,505
EBITDA 11,086 7,417 29,747 25,918
Add Back:
Stock-based compensation expense 7,264 11,023 26,499 38,350
Litigation related expenses 87 113 4,963 148
Acquisition related costs 2,512 8,179 6,345 25,063
Adjusted EBITDA $ 20,949 $ 26,732 $ 67,554 $ 89,479
EBITDA Margin 14.6% 8.4% 11.0% 7.7%
Adjusted EBITDA Margin 27.5% 30.4% 24.9% 26.6%
Stock-Based Compensation Expense (unaudited)
(In thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
2015 2016 2015 2016
Stock-based compensation expense:
Cost of revenue $ 428 $ 515 $ 1,560 $ 2,289
Research and development 1,137 1,499 5,188 6,201
Sales and marketing 3,118 3,305 11,090 16,181
General and administrative 2,581 5,704 8,661 13,679
Total stock based-compensation $ 7,264 $ 11,023 $ 26,499 $ 38,350

LogMeIn, Inc.
Calculation of Projected 2017 Non-GAAP Revenue (unaudited)
(In millions)
Three Months Ended Twelve Months Ended
March 31, 2017 December 31, 2017
GAAP Revenue $183 - $185 $968 - $978
Add Back:
Effect of acquisition accounting on fair value of acquired deferred revenue 13 32
Non-GAAP Revenue $196 - $198 $1,000 - $1,010
Calculation of Projected 2017 Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)
(In millions, except per share data)
Three Months Ended Twelve Months Ended
March 31, 2017 December 31, 2017
GAAP Net (loss) income ($23) - ($21) ($5) - $3
Add Back:
Effect of acquisition accounting on fair value of acquired deferred revenue 13 32
Stock-based compensation expense 14 73
Acquisition related costs 30 48
Amortization of acquired intangibles 33 178
Effect of acquisition accounting on internally capitalized software development costs (5) (21)
Income tax effect of non-GAAP items (29) (115)
Non-GAAP Net income $32 - $34 $190 - $199
GAAP net loss per share or net income per diluted share ($0.54) - ($0.48) ($0.10) - $0.06
Non-GAAP net income per diluted share $0.72 - $0.76 $3.64 - $3.82
Weighted average shares outstanding used in computing loss per share 43 51
Diluted weighted average shares outstanding used in computing income per share 45 52
Calculation of Projected 2017 EBITDA and Adjusted EBITDA (unaudited)
(In millions)
Three Months Ended Twelve Months Ended
March 31, 2017 December 31, 2017
GAAP Net (loss) income ($23) - ($21) ($5) - $3
Add Back:
Interest and other (income) expense, net -- 3
Income tax benefit (15) (34) - (29)
Amortization of acquired intangibles 33 178
Depreciation and amortization expense 7 40
EBITDA 2 - 4 182 - 195
Add Back:
Effect of acquisition accounting on fair value of acquired deferred revenue 13 32
Stock-based compensation expense 14 73
Acquisition related costs 30 48
Adjusted EBITDA $59 - $61 $335 - $348
EBITDA Margin 1% - 2% 19% - 20%
Adjusted EBITDA Margin 30% 34%

LogMeIn, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
2015 2016 2015 2016
Cash flows from operating activities
Net income $ 6,235 $ 1,862 $ 14,558 $ 2,638
Adjustments to reconcile net income to net cash
provided by operating activities:
Stock-based compensation 7,264 11,023 26,499 38,350
Depreciation and amortization 4,466 5,429 13,698 21,505
Amortization of premiums on investments 89 74 328 431
Change in fair value of contingent consideration liability - - - 502
Amortization of debt issuance costs 55 74 187 293
Provision for bad debts 9 5 61 37
Benefit from deferred income taxes (1,076) (3,304) (1,062) (3,304)
Excess tax benefits realized from stock-based awards (2,527) (6,467) (2,743) (6,467)
Other, net (13) 13 (12) 12
Changes in assets and liabilities:
Accounts receivable 293 (10,136) 2,224 (10,214)
Prepaid expenses and other current assets 79 7,549 (2,794) 5,996
Other assets (172) 302 (454) 1,490
Accounts payable (1,601) 1,444 1,420 6,149
Accrued liabilities 5,110 4,177 2,288 8,353
Deferred revenue (5,976) 1,533 28,874 26,953
Other long-term liabilities 1,521 (5,352) 2,698 (409)
Net cash provided by operating activities (1) 13,756 8,226 85,770 92,315
Cash flows from investing activities
Purchases of marketable securities (35,165) - (92,335) (35,609)
Proceeds from sale or disposal or maturity of marketable securities 35,000 14,756 107,042 64,756
Purchases of property and equipment (3,297) (1,387) (14,219) (14,015)
Intangible asset additions 60 (522) (2,375) (1,559)
Cash paid for acquisitions (107,575) (6,021) (107,575) (6,083)
Decrease (increase) in restricted cash and deposits - - 1,488 (30)
Net cash (used in) provided by investing activities (110,977) 6,826 (107,974) 7,460
Cash flows from financing activities
Repayments of borrowings under credit facility 60,000 (7,500) 60,000 (30,000)
Proceeds from issuance of common stock upon option exercises 2,543 2,310 17,794 11,753
Excess tax benefits realized from stock-based awards 2,527 6,467 2,743 6,467
Payments of withholding taxes in connection with restricted stock unit vesting (493) (1,013) (11,641) (14,445)
Payment of debt issuance costs (11) 3 (988) (346)
Payment of contingent consideration - (2,000) (226) (2,030)
Dividends paid on common stock - (12,767) - (25,466)
Purchase of treasury stock (3,358) (2,582) (18,090) (25,381)
Net cash provided by (used in) financing activities 61,208 (17,082) 49,592 (79,448)
Effect of exchange rate changes on cash and cash equivalents (1,256) (3,814) (5,205) (2,714)
Net (decrease) increase in cash and cash equivalents (37,269) (5,844) 22,183 17,613
Cash and cash equivalents, beginning of period 160,412 146,600 100,960 123,143
Cash and cash equivalents, end of period $ 123,143 $ 140,756 $ 123,143 $ 140,756
(1) Cash flows from operating activities includes the following litigation and acquisition-related payments:
(a) Cash flows from operating activities includes litigation-related payments of $0.4 million and $5.1 million in the three and twelve months ended December
31, 2015, respectively, including a litigation net settlement payment of $3.6 million in the second quarter of 2015.
(b)Cash flows from operating activities includes acquisition transaction, transition, and integration-related payments of $0.4 million for both the three and twelve months ended
December 31, 2015 and $8.2 million and $10.1 million in the three and twelve months ended December 31, 2016, respectively.
(c)Cash flows from operating activities includes acquisition-related retention-based bonus payments and contingent earnout payments of $1.6 million for
the three months ended December 31, 2016 and $3.8 million and $7.7 million for the twelve months ended December 31, 2015 and 2016, respectively, related
to the Company's 2014 and 2015 acquisitions.
Cash flows from operations adding back the items in (a), (b) and (c) above sums to $14.5 million and $18.1 million for the three months and $95.1 million
and $110.1 million for the twelve months ended December 31, 2015 and 2016, respectively.

Contact Information: Investors Rob Bradley LogMeIn, Inc. 781-897-1301 rbradley@LogMeIn.com Press Craig VerColen LogMeIn, Inc. 781-897-0696 Press@LogMeIn.com

Source:LogMeIn, Inc.