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   
            
(1Cash 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