Syniverse — Q4 2017 Earnings Presentation
12 slides from Syniverse's earnings presentation, Jan 25, 2018
Slide 1: Syniverse: We make mobile work
y Syniverse’ y ‘A V We make mobile work January 2018
Slide 2: Forward-looking statements disclaimer
This presentation and the other information furnished by or on behalf of the Company includes certain forward‐looking statements, forecasts, projections and estimates, including statements regarding the Company’s capital structure, proposed refinancing transaction and Q4 and full year 2017 estimated
Slide 3: Strong Execution Has Repositioned Business For Growth
$79 $56 $72 $73 $75 $62 $73 $82 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17E Strong Execution Has Repositioned Business For Growth Quarterly Adjusted EBITDA ($m) Adj. EBITDA stabilized in ‘16 and increased consistently in ‘17… YoY Quarterly Adjusted EBITDA Margin Expansion (%) 28.7% 33.6
Slide 4: Execution of Cost Realignment Against Backdrop of Accelerating Revenue
$79 $56 $72 $73 $75 $62 $73 $82 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17E 29% 36% 37% 39% 34% 38% 38% 40% $162 $165 $164 $160 $150 $156 $165 $163 $32 $33 $33 $33 $36 $38 $42 $43 $194 $198 $197 $193 $186 $195 $207 $206 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17E $ 387 $ 34
Slide 5: Strong and Consistent Cash Flow Generation
$ 68 $ 63 $ 61 2015 2016 2017E 7.9 % 8.0 % 7.7 % Strong and Consistent Cash Flow Generation Capital Expenditure ($m) Note: FY 2017 estimated results are preliminary and subject to change. (1) Includes normalization adjustments for one‐time cash flow items: business development, integration and other
Slide 6: 2017 Q4 Preliminary Results Highlights
$75 $82 Q4 2016 Q4 2017E 38.7% 39.8% 2017 Q4 Preliminary Results Highlights 2017 Q4 revenue of ~$206 million represents a 6.8% increase year‐over‐ year, continuing to demonstrate revenue inflection with second consecutive quarter of year‐over‐year growth The Company’s MTS business grew 2% year‐ove
Slide 7: Syniverse Recent Financial Performance
Syniverse Recent Financial Performance Following several quarters of Adjusted EBITDA growth since 2016, Syniverse has also demonstrated a revenue inflection point with second consecutive quarter of year‐over‐year growth in Q4 2017 Going forward, downward pressure from declining CDMA‐related revenu
Slide 8: Historical Revenue By Segment
Historical Revenue By Segment 2013 2014 2015 2016 2017E MTS By Product(1) ($m) ’13‐’17 CAGR: Other (Non‐CDMA) MTS, 7% CDMA, (19)% MTS EIS EIS, 10% MTS, (4)% A2P, 12% Other EIS, 4% EIS By Product ($m) Total, (4)% Total, 10% Total, (2)% Total Revenue ($m) A2P Other EIS Note: FY 2017 estimated results
Slide 9: Reconciliation to Adjusted EBITDA
(In $ millions) Reconciliation to Adjusted EBITDA 2017 Q1 Q2 Q3 Q4E 2017E Operating income $ 7.0 $ 15.3 $ 23.2 $ 25.9 $ 71.3 Depreciation and amortization 47.4 48.0 49.8 49.3 194.6 Non‐cash stock‐based compensation 3.1 4.6 3.6 3.0 14.2 Restructuring 1.2 2.9 1.1 1.1 6.2 Employee termination benefits
Slide 10: Historical Free Cash Flow Reconciliation
(In $ millions) FCF Reconciliation 2015 2016 2017E Net cash from operating activities $161.8 $136.1 $146.0 Acquisition 0.1 ‐ ‐ Capital expenditures (68.2) (62.9) (61.2) Free Cash Flow $93.7 $73.2 $84.8 Normalization adjustments: Business development, integration and other expenses 12.1 14.1 5.6 Rest
Slide 11: Appendix: Supplementary Materials
Appendix: Supplementary Materials
Slide 12: Reconciliation to Adjusted EBITDA
(In $ millions) Reconciliation to Adjusted EBITDA 2016 2017 2013 2014 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4E 2017E Net income (loss) from continuing operations $(40.3) $(46.3) (49.3) $(15.8) $(14.6) $(17.2) $(17.6) $(65.2) $(23.9) $(15.7) $(25.0) Interest expense, net 125.0 122.4 122.7 30.7 31.1 30.5 30