Betty Dillard email@example.com
Solera Holdings Inc. posted second quarter revenue of $238.9 million, a 14.2 percent increase over the prior year revenue of $209.2 million. The revenue growth was the highest in six quarters. Solera Holdings, a Westlake-based global provider of software and services to the automobile insurance claims processing and decision support industries, reported results Feb. 5 for the second quarter of fiscal year 2014.
The company announced Jan. 6 that one of its subsidiaries completed an acquisition of 100 percent of Autosoft S.r.l., an Italian platform that provides workflow, damage assessment and claims management for insurance companies, vehicle repairers and assessors in Italy. In December, one of Solera’s subsidiaries announced the 100 percent acquisition of Distribution Services Technologies Inc. The deal is expected to close by the third quarter 2014. After adjusting for changes in foreign current exchange rates, revenue for the second quarter ended Dec. 31, 2013, increased 13.4 percent over the same period last year.
A net loss incurred in the second quarter was primarily attributable to a one-time charge associated with the November 2013 redemption of the company’s senior unsecured notes due 2018 of $39.1 million, which is net of the related income tax benefit of $21.1 million, and establishing a valuation allowance on U.S. deferred tax assets of $29.7 million. Without the charge associated with the redemption of the 2018 senior notes, net of the related income tax benefit and the U.S. deferred tax asset valuation allowance, the company would have generated net income of approximately $17.7 million, representing a 10.6 percent decrease over prior year second quarter net income. The decrease is primarily attributable to increased interest expense resulting from the issuance of senior unsecured notes in July and November 2013. “We continue to build momentum in fiscal year 2014,” said Tony Aquila, Solera’s founder, chairman and chief executive officer. “The full-year constant currency revenue growth of 16.5 percent implied in our guidance is driven by continued diversification through execution of our platform strategy and continued tailwinds in most of our advanced markets. “Additionally, our adjusted EBITDA margins in the quarter reflect improving operating leverage as we continue to integrate recently-acquired businesses. These results and solid outlook give us confidence for the remainder of the year as reflected in our raised guidance,” he said.
Solera Holdings updated its previous outlook issued on Dec. 3, 2013, for the full fiscal year ending June 30, 2014. Revenue is expected to be between $981 million and $987 million, up from the previous outlook of $978 million to $986 million. Net income is expected to range from $58 million to $65 million, up from $45 million to $52 million, with adjusted net income per diluted common share up from $2.61 to $2.69 to between $2.78 and $2.86.