BRIDGEWATER, N.J., March 12, 2019 (GLOBE NEWSWIRE) -- Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and innovator in cloud, messaging, digital and IoT platforms and products, today announced financial results for fourth quarter and full year ended December 31, 2018.

Fourth quarter highlights include:

  • Revenue was $82.1 million, including 83 percent recurring revenue.
  • GAAP net loss for the quarter was $101.9 million, or $2.56 per share, which included $109.1 million of pretax non-cash asset impairments.
  • Synchronoss delivered $15.4 million of adjusted EBITDA, up 64.9 percent from $9.4 million in the third quarter. Adjusted EBITDA margin in the fourth quarter reached 18.8 percent, up 67.3 percent from 11.2 percent in the third quarter.
  • Cash flow provided by operations during the quarter was $29.3 million.

Glenn Lurie, president and chief executive officer, stated, “Our fourth quarter financial results show that Synchronoss continues to meet its financial and operational commitments to shareholders. We delivered positive adjusted EBITDA for the second straight quarter and the third straight quarter of improvement, adjusted EBITDA margins reached their highest level of the year, and we delivered nearly $30 million of cash flow from operations. In addition, thus far in early 2019 we are winning a growing number of new customers while expanding engagements with existing customers.  Our success is being driven by the significant value our platforms deliver in solving some of the most complex challenges facing the Telecommunications Media and Technology (TMT) industry, including the risk of disintermediation from Over-The-Top (OTT) applications, managing the increasing complexity to deliver a true digital consumer experiences and journeys that end-users expect while reducing costs and driving incremental revenue.”

Today, Synchronoss is announcing a new Cloud agreement with Assurant, Inc. which will white-label our Synchronoss cloud platform for its Pocket Geek solution which is offered in their device protection bundles.

This announcement builds on several important customer agreements and partnerships that the company won earlier in the quarter, including:

  • A deal and partnership with Rackspace, which will utilize the DXP platform to enhance its internal operational efficiencies and journeys, as well as resell the entire Synchronoss DXP platform and product suite to its global customer portfolio.
  • The renewal of its agreement to power the BT Cloud. BT has been a Synchronoss cloud services and storage partner since 2015, and the contract renewal signifies a deepening relationship between Synchronoss and BT.
  • The continued expansion and development of our advanced messaging initiative with the 3 major Japanese mobile operators.

 Full year financial highlights include:

  • Synchronoss delivered $325.8 million of revenue for the year. In addition, Synchronoss successfully migrated to over 79 percent recurring revenue in 2018, from 75 percent in 2017.
  • GAAP net loss for the year was $243.7 million, or $6.05 per share, which included $127.3 million of pretax non-cash asset impairments.
  • Adjusted EBITDA for the full year was $14.0 million.
  • Synchronoss generated $24.8 million of adjusted EBITDA in the second half of the year, after adjusting for $4.9 million of first quarter expenses that were recognized in the third quarter.
  • Synchronoss achieved $20 million of annualized cost savings in 2018 with another $25 million annualized run rate expected to be realized in 2019.
  • Synchronoss retired over 50% of its convertible debt and paid its third and fourth-quarter quarter dividend on its convertible preferred stock in cash instead of additional shares.

David Clark, chief financial officer, added, “During 2018, we stabilized and reset our core business, aligned the entire team towards our key priorities and core values, and evolved our platforms and product roadmaps to meet customer needs. As a result of those actions, we made a great deal of progress to improve operating leverage and profitability, drive free cash flow, and reduce debt. We believe there is additional cost savings opportunity, and going forward, we will continue to focus on delivering profitable revenue growth and cost efficiencies. Finally, demonstrating our confidence in our cash-generating abilities, in early 2019 we again paid the quarterly dividend on our preferred stock in cash instead of shares, and we repurchased an additional $11.5 million of our convertible debt.”

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures."

Conference Call Details
Synchronoss will host a conference call on Tuesday, March 12, 2019, at 5:00 p.m. (ET) to discuss the company’s financial results. To access this call, dial 1-201-493-6784. Additionally, a live web cast of the conference call will be available on the Investor Relations page on the company’s web site www.synchronoss.com.

Following the conference call, a replay will be available for a limited time at 1-412-317-6671. The replay pass code is 13687208. An archived web cast of this conference call will also be available on the Investor Relations page of the company’s web site, www.synchronoss.com.

Non-GAAP Financial Measures
Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP revenues, gross profit, operating income (loss), net income (loss), effective tax rate, earnings (loss) per share and cash flows from operating activities. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss’ ongoing operational performance. Synchronoss 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 its financial results with other companies in Synchronoss’ industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back fair value stock-based compensation expense, acquisition-related costs which includes integration costs, changes in the contingent consideration obligation, deferred compensation expense related to earn outs and amortization of intangibles associated with acquisitions.

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 as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.

About Synchronoss Technologies, Inc.
Synchronoss transforms the way companies create new revenue, reduce costs and delight their subscribers with cloud, messaging, digital and IoT products, supporting hundreds of millions of subscribers across the globe. Synchronoss’ secure, scalable and groundbreaking new technologies, trusted partnerships, and talented people change the way TMT customers grow their businesses. For more information, visit us at www.synchronoss.com.

Forward-looking Statements
This press release includes statements concerning Synchronoss and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “believes,” “potential” or “continue” or other similar expressions are intended to identify forward-looking statements. Synchronoss has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks relating to the Company’s ability to sustain or increase revenue from its larger customers and generate revenue from new customers, the Company’s expectations regarding expenses and revenue, the sufficiency of the Company’s cash resources and its ability to satisfy or refinance its existing debt obligations, the Company’s growth strategies, the anticipated trends and challenges in the business and the market in which the Company operates, the Company’s expectations regarding federal, state and foreign regulatory requirements, the pending lawsuits against the Company described in its most recent SEC filings, and other risks and factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2017 and Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2018, which are on file with the SEC and available on the SEC’s website at www.sec.gov. The company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

Contact:
Investors:
Joe Crivelli
Vice President, Investor Relations
908-566-3131
investor@synchronoss.com

Media:
CCgroup
US: Diane Rose, +1 727-238-7567 or International: Anais Merlin, +44 20 3824 9219
synchronoss@ccgrouppr.com

SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

    
 December 31, 2018 December 31, 2017
    
ASSETS
Current assets:   
Cash and cash equivalents$103,771  $156,299 
Restricted cash6,089  89,826 
Marketable securities, current28,230  3,111 
Accounts receivable, net of allowances of $4,599 and $3,107 at December 31, 2018 and December 31, 2017, respectively102,798  78,186 
Prepaid expenses45,058  33,957 
Other current assets8,508  9,600 
Total current assets294,454  370,979 
Marketable securities, non-current6,658  — 
Property and equipment, net67,937  111,825 
Goodwill223,090  237,303 
Intangible assets, net98,706  132,167 
Other assets8,982  5,236 
Note receivable from related party—  73,984 
Equity method investment1,619  33,917 
Total assets$701,446  $965,411 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:   
Accounts payable$13,576  $5,959 
Accrued expenses59,545  72,739 
Deferred revenues, current57,101  75,829 
Short-term convertible debt, net of debt issuance costs113,542  — 
Mandatorily redeemable financial instrument—  37,959 
Total current liabilities243,764  192,486 
Lease financing obligation9,494  11,183 
Long-term convertible debt, net of debt issuance costs—  227,704 
Deferred tax liabilities1,347  13,735 
Deferred revenues, non-current59,841  25,241 
Other liabilities10,797  6,195 
Commitments and contingencies   
Redeemable noncontrolling interest12,500  25,280 
Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at December 31, 2018176,603  — 
Stockholders’ equity:   
Common stock, $0.0001 par value; 100,000 shares authorized, 49,836 and 52,024 shares issued; 42,674 and 46,965 outstanding at December 31, 2018 and December 31, 2017, respectively5  5 
Treasury stock, at cost (7,162 and 5,059 shares at December 31, 2018 and December 31, 2017, respectively)(82,087) (105,584)
Additional paid-in capital534,673  597,553 
Accumulated other comprehensive loss(32,192) (23,373)
Accumulated deficit(233,299) (5,014)
Total stockholders’ equity187,100  463,587 
Total liabilities and stockholders’ equity$701,446  $965,411 
        

SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

  Twelve Months Ended December 31,
  2018 2017 2016
       
Net revenues $325,839  $402,361  $426,294 
Costs and expenses:      
Cost of revenues 158,802  181,453  194,684 
Research and development 79,172  90,850  114,493 
Selling, general and administrative 122,112  154,037  126,228 
Net change in contingent consideration obligation —  —  1,194 
Restructuring charges 12,375  10,739  6,333 
Depreciation and amortization 117,654  94,884  105,966 
Total costs and expenses 490,115  531,963  548,898 
Loss from continuing operations (164,276) (129,602) (122,604)
Interest income 7,770  12,502  1,907 
Interest expense (4,911) (55,771) (7,414)
Gain (loss) on extinguishment of debt 1,760  (29,413) — 
Other (expense) income, net (74,917) (17,678) 1,022 
Equity method investment loss, net (28,600) (9,125) — 
Loss from continuing operations, before taxes (263,174) (229,087) (127,089)
Benefit for income taxes 17,894  34,863  33,220 
Net loss from continuing operations (245,280) (194,224) (93,869)
Net income from discontinued operations, net of tax 18,288  75,495  90,560 
Net loss (226,992) (118,729) (3,309)
Net loss attributable to redeemable noncontrolling interests 8,837  9,291  15,203 
Preferred stock dividend (25,593) —  — 
Net loss attributable to Synchronoss $(243,748) $(109,438) $11,894 
       
       
Basic:      
Continuing operations $(6.51) $(4.14) $(1.81)
Discontinued operations 0.46  1.69  2.08 
  $(6.05) $(2.45) $0.27 
Diluted:      
Continuing operations $(6.51) $(4.14) $(1.81)
Discontinued operations 0.46  1.69  2.08 
  $(6.05) $(2.45) $0.27 
Weighted-average common shares outstanding:      
Basic 40,277  44,669  43,551 
Diluted 40,277  44,669  43,551 
          

SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

  Three Months Ended December 31,
  2018 2017
     
Net revenues $82,102  $106,259 
Costs and expenses:    
Cost of revenues 31,014  42,067 
Research and development 19,383  23,616 
Selling, general and administrative 22,744  50,988 
Restructuring charges 3,950  (976)
Depreciation and amortization 47,324  23,786 
Total costs and expenses 124,415  139,481 
Loss from continuing operations (42,313) (33,222)
Interest income 252  3,345 
Interest expense (976) (7,755)
Gain (loss) on extinguishment of debt 1,760  (29,413)
Other expense, net (65,737) (20,052)
Equity method investment loss, net (28,671) (10,751)
Loss from continuing operations, before taxes (135,685) (97,848)
Benefit for income taxes 16,290  16,890 
Net loss from continuing operations (119,395) (80,958)
Net income from discontinued operations, net of tax 18,288  89,562 
Net (loss) income (101,107) 8,604 
Net loss attributable to redeemable noncontrolling interests 6,715  2,311 
Preferred stock dividend (7,517) — 
Net (loss) income attributable to Synchronoss $(101,909) $10,915 
     
Basic:    
Continuing operations $(3.01) $(1.75)
Discontinued operations 0.45  1.99 
  $(2.56) $0.24 
Diluted:    
Continuing operations $(3.01) $(1.75)
Discontinued operations 0.45  1.99 
  $(2.56) $0.24 
Weighted-average common shares outstanding:    
Basic 39,885  45,039 
Diluted 39,885  45,039 
       

SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

  Twelve Months Ended December 31,
  2018 2017
Non-GAAP financial measures and reconciliation:    
GAAP Revenue $325,839  $402,361 
Less: Cost of revenues 158,802  181,453 
Gross Profit 167,037  220,908 
Add / (Less):    
Stock-based compensation expense 4,370  4,602 
Acquisition costs —  (2)
Integration —  1,744 
Adjusted Gross Profit $171,407  $227,252 
Adjusted Gross Margin 52.6% 56.5%
     
GAAP Net loss from continuing operations (164,276) (129,602)
Add / (Less):    
Stock-based compensation expense 27,604  22,495 
Acquisition costs 258  13,023 
Restructuring 12,375  10,739 
Amortization expense 53,717  34,695 
Integration —  7,804 
One-Time Expenses due to Restatement, etc. 20,408  37,197 
Non-GAAP Net loss from continuing operations $(49,914) $(3,649)
     
GAAP Net loss attributable to Synchronoss $(243,748) $(109,438)
Less: Net income from discontinued operations, net of taxes (18,288) (75,495)
Net loss from continuing operations attributable to Synchronoss (262,036) (184,933)
Add / (Less):    
Stock-based compensation expense 27,604  22,495 
Acquisition costs 258  13,023 
Restructuring 12,375  10,739 
Amortization expense 53,717  34,695 
Loss on Extinguishment of Debt —  29,413 
Non-GAAP Expenses attributable to Non-Controlling Interest (8,673) (1,955)
One-Time Expenses due to Restatement, etc. 20,408  37,197 
Integration —  7,804 
Income Tax Effect at Statutory Tax Rates (17,894) (34,863)
Non-GAAP Net loss from continuing operations attributable to Synchronoss $(174,241) $(66,385)
     
Diluted Non-GAAP Net loss from continuing operations per share $(4.33) $(1.49)
     
Weighted shares outstanding - Basic 40,277  44,669 
       

SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

  Twelve Months Ended December 31,
  2018 2017
Net loss attributable to Synchronoss $(243,748) $(109,438)
Add / (Less):    
Restructuring 12,375  10,739 
Depreciation and amortization 117,654  94,884 
Interest income (7,770) (12,502)
Interest Expense 4,911  55,771 
Loss on Extinguishment of debt (1,760) 29,413 
Other Income (expense), net 74,917  17,678 
Equity method investment income (loss), net 28,600  9,125 
Benefit for income taxes (17,894) (34,863)
Net (loss) income attributable to noncontrolling interests (8,837) (9,291)
Preferred dividend 25,593  — 
Stock-based compensation expense 27,604  22,495 
Acquisition costs 258  13,023 
Integration —  7,804 
One-Time Expenses due to Restatement, etc. 20,408  37,197 
Net income from discontinued operations, net of taxes (18,288) (75,495)
Adjusted EBITDA (non-GAAP) $14,023  $56,540 
         

SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

  Three Months Ended December 31,
  2018 2017
Non-GAAP financial measures and reconciliation:    
GAAP Revenue $82,102  $106,259 
Less: Cost of revenues 31,014  42,067 
Gross Profit 51,088  64,192 
Add / (Less):    
Stock-based compensation expense 923  1,276 
Integration —  253 
Adjusted Gross Profit $52,011  $65,721 
Adjusted Gross Margin 63.3% 61.8%
     
GAAP Net loss from continuing operations (42,313) (33,222)
Add / (Less):    
Stock-based compensation expense 5,566  8,067 
Acquisition costs 109  10,499 
Restructuring 3,950  (976)
Amortization expense 28,595  8,634 
Integration —  944 
One-Time Expenses due to Restatement, etc. 800  21,920 
Non-GAAP Net (loss) income from continuing operations $(3,293) $15,866 
     
GAAP Net (loss) income attributable to Synchronoss $(101,909) $10,915 
Less: Net income from discontinued operations, net of taxes (18,288) (89,562)
Net loss from continuing operations attributable to Synchronoss (120,197) (78,647)
Add / (Less):    
Stock-based compensation expense 5,566  8,067 
Acquisition costs 109  10,499 
Restructuring 3,950  (976)
Amortization expense 28,595  8,634 
Loss on Extinguishment of Debt —  29,413 
Non-GAAP Expenses attributable to Non-Controlling Interest (7,404) (465)
One-Time Expenses due to Restatement, etc. 800  21,920 
Integration —  944 
Income Tax Effect at Statutory Tax Rates (10,655) (16,619)
Non-GAAP Net loss from continuing operations attributable to Synchronoss $(99,236) $(17,230)
     
Diluted Non-GAAP Net loss from continuing operations per share $(2.49) $(0.38)
     
Weighted shares outstanding - Basic 39,885  45,039 
       

SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

  Three Months Ended December 31,
  2018 2017
     
Net (loss) income attributable to Synchronoss $(101,909) $10,915 
Add / (Less):    
Restructuring 3,950  (976)
Depreciation and amortization 47,324  23,786 
Interest income (252) (3,345)
Interest Expense 976  7,755 
Loss on Extinguishment of debt (1,760) 29,413 
Other Income (expense), net 65,737  20,052 
Equity method investment income (loss), net 28,671  10,751 
Benefit for income taxes (16,290) (16,890)
Net (loss) income attributable to noncontrolling interests (6,715) (2,311)
Preferred dividend 7,517  — 
Stock-based compensation expense 5,566  8,067 
Acquisition costs 109  10,499 
Integration —  944 
One-Time Expenses due to Restatement, etc. 800  21,920 
Net income from discontinued operations, net of taxes (18,288) (89,562)
Adjusted EBITDA (non-GAAP) $15,436  $31,018 
         

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

  Three Months Ended September 30,
  2018 2017
     
Net (loss) income attributable to Synchronoss $(54,529) $(35,088)
Add / (Less):    
Restructuring 4,539  2,312 
Depreciation and amortization 23,658  23,459 
Interest income (203) (3,274)
Interest Expense 1,370  25,555 
Other Income (expense), net 13,439  256 
Equity method investment income (loss), net (283) (645)
Benefit for income taxes (2,308) (12,825)
Net (loss) income attributable to noncontrolling interests 422  (1,276)
Preferred dividend 7,463  — 
Stock-based compensation expense 7,216  3,678 
Acquisition costs 38  30 
Integration —  1,569 
One-Time Expenses due to Restatement, etc. 3,638  9,438 
Net income from discontinued operations, net of taxes —  (8,842)
Adjusted EBITDA (non-GAAP) $4,460  $4,347 
         

SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

  Twelve Months Ended December 31,
  2018 2017
Net Cash (used in) provided by operating activities $(31,369) $(18,248)
Add / (Less):    
Software Capitalization (14,372) (9,119)
Fixed Assets (11,656) (12,151)
Free Cashflow $(57,397) $(39,518)
Add: One-Time Restatement Expenses 20,408  37,197 
Adjusted Free Cashflow $(36,989) $(2,321)


  Three Months Ended December 31,
  2018 2017
Net Cash (used in) provided by operating activities $29,293  $(17,155)
Add / (Less):    
Software Capitalization (3,360) (1,271)
Fixed Assets (3,091) (1,836)
Free Cashflow $22,842  $(20,262)
Add: One-Time Restatement Expenses 800  21,920 
Adjusted Free Cashflow $23,642  $1,658 
         

SYNCHRONOSS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 Twelve Months Ended December 31,
 2018 2017 2016
      
Operating activities:     
Net loss from continuing operations$(245,280) $(194,224) $(93,869)
Net income from discontinued operations—  75,495  90,560 
Gain (loss) on sale of discontinued operations, net of tax18,288  (122,842) (113,129)
      
Adjustments to reconcile Net Loss to net cash used in operating activities:     
Depreciation and amortization expense97,092  93,924  94,911 
Goodwill impairment9,100  —  — 
Impairment of long-lived assets and capitalized software11,462  960  11,055 
Change in fair value of financial instruments(3,849) 4,367  — 
Amortization of debt issuance costs1,294  12,771  1,607 
(Gain) loss on extinguishment of debt(1,760) 29,413  — 
Accrued PIK interest(7,037) (12,090) (34)
Allowance for loan losses84,314  14,562  — 
(Earnings) loss from equity method investments28,600  9,125  — 
Loss (Gain) on disposals277  (4,947) (122)
Discontinued operations non-cash and working capital adjustments—  48,647  371 
Amortization of bond premium107  244  1,416 
Deferred income taxes(12,350) 19,243  17,148 
Non-cash interest on leased facility—  1,203  1,392 
Stock-based compensation27,604  22,495  34,178 
Contingent consideration obligation—  (2,711) 1,194 
Changes in operating assets and liabilities:     
Accounts receivable, net of allowance for doubtful accounts(21,521) 29,283  (13,650)
Prepaid expenses and other current assets(5,315) (5,513) 31,648 
Other assets973  3,237  8,880 
Accounts payable6,846  (9,098) (10,089)
Accrued expenses(18,068) (4,949) (7,523)
Other liabilities(4,675) (3,337) (6,558)
Deferred revenues2,529  (23,506) 55,173 
Net cash used in operating activities(31,369) (18,248) 104,559 
      
Investing activities:     
Purchases of fixed assets(11,656) (12,151) (42,570)
Purchases of intangible assets and capitalized software(14,372) (9,119) (7,677)
Proceeds from the sale of SpeechCycle—  13,500  — 
Purchases of marketable securities available for sale(36,789) (219) (13,445)
Maturity of marketable securities available for sale4,865  12,371  82,904 
Proceeds from the sale of discontinued operations—  928,171  27,335 
Equity investment distributions404  608  — 
Investing in discontinued operations—  (13,721) — 
Investment in note receivable—  (6,187) — 
Business acquired, net of cash(9,734) (815,008) (86,322)
Net cash used in investing activities(67,282) 98,245  (39,775)
Financing activities:     
Proceeds from the exercise of stock options—  2,584  13,633 
Taxes paid on withholding shares—  (442) — 
Payments on contingent consideration—  (122) — 
Debt issuance costs related to the Credit Facility—  (3,692) (1,346)
Debt issuance cost related to amendment—  (16,776) — 
Debt issuance costs related to long-term debt—  (19,887) — 
Extinguishment of outstanding Convertible Senior Notes(113,696) —  — 
Proceeds from issuance of long-term debt—  900,000  — 
Repayment of long-term debt—  (900,000) — 
Borrowings on revolving line of credit—  —  144,000 
Repayment of revolving line of credit—  (29,000) (115,000)
Excess tax benefits from stock option exercises—  17  — 
Repurchase of common stock—  —  (40,025)
Proceeds from the sale of treasury stock in connection with an employee stock purchase plan—  1,047  2,183 
Proceeds from issuance of preferred stock86,220  —  — 
Preferred dividend payment(7,075) —  — 
Proceeds from mandatorily redeemable financial instruments—  33,592  — 
Payments on capital obligations(1,334) (2,985) (3,815)
Net cash provided by financing activities(35,885) (35,664) (370)
Effect of exchange rate changes on cash(1,729) (9,641) (853)
Net decrease in cash, restricted cash and cash equivalents(136,265) 34,692  63,561 
Cash, restricted cash and cash equivalents, beginning of period246,125  211,433  147,872 
Cash, restricted cash and cash equivalents, end of period$109,860  $246,125  $211,433 

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