Tyler Technologies (TYL) Consensus Update on Exercise 21 Guidelines

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Tyler Technologies, Inc. (NYSE: TYL) today announced an update to its annual forecast for 2021, which includes NIC Inc.’s results from the date of its acquisition, April 21, 2021.

As of June 7, 2021, Tyler Technologies provides the following forecasts for the full year 2021:

  • Total GAAP revenue is expected to be between $ 1.507 billion and $ 1.537 billion.
  • Total non-GAAP revenues are expected to be between $ 1.510 billion and $ 1.540 billion.
  • NIC is expected to generate non-GAAP revenue from date of acquisition of $ 310 million to $ 315 million, which includes approximately $ 21 million in COVID-related revenue from TourHealth and unemployment services pandemic that are not expected to recur in the coming years.
  • NIC’s full-year pro forma non-GAAP revenue is expected to be around $ 475 million to $ 480 million, which includes around $ 57 million in COVID-related revenue.
  • Diluted GAAP earnings per share is expected to be between $ 3.58 and $ 3.74 and can vary significantly due to the impact of incentive stock awards on the effective GAAP tax rate.
  • Non-GAAP diluted earnings per share are expected to be between $ 6.65 and $ 6.77.
  • Interest expense is expected to be approximately $ 24 million.
  • The pre-tax non-cash and share-based compensation expense is expected to be approximately $ 100 million.
  • Research and development spending is expected to be between $ 98 million and $ 100 million.
  • Fully diluted shares for the year are expected to be between 42.5 million and 43.0 million shares.
  • GAAP earnings per share assumes an estimated annual effective tax rate of approximately 3.5% after separate tax items, including approximately $ 39 million in separate tax benefits related to stock-based compensation.
  • The annual effective non-GAAP tax rate is expected to be 24%.
  • Capital expenditures are expected to be in the range of $ 40 million to $ 42 million, with approximately $ 6 million related to real estate and approximately $ 15 million in capitalized software development costs. Total amortization is expected to be approximately $ 126 million, of which approximately $ 88 million is from amortization of acquisition-related intangible assets.

(* Consensus projects EPS for the year of $ 6.53 on revenue of $ 1.5 billion)

“Our forecast reflects strong year-to-date performance and improving market activity for Tyler, including NIC,” said Lynn Moore, President and CEO of Tyler. As we noted previously, the acquisition of NIC is expected to have a significant impact on non-GAAP earnings per share and EBITDA. As we continue to work with the NIC leadership team to identify and Prioritize opportunities, we are encouraged by the potential to accelerate long-term growth in both of our businesses and expand our platform for connected communities.With the addition of highly complementary digital government solutions and payment services and NIC’s leading edge to Tyler’s broad portfolio of essential public sector software solutions and Tyler’s vast customer base, the combined company is well equipped to meet the huge demand at the federal, state and local levels for platform solutions. innovative shape. Together, Tyler and NIC will connect data and processes across disparate systems and deliver essential products and services to everyone. all public sector stakeholders.

Reconciliation of GAAP and non-GAAP guidelines

The total non-GAAP revenue comes from the addition of the estimated impact for the full year of the impairment of deferred revenue related to acquisitions of approximately $ 3 million. Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash stock compensation expense and the employer’s share of payroll taxes related to employee share transactions of approximately $ 100 million, l Amortization of acquired software and intangible assets of approximately $ 88 million, and acquisition-related costs of approximately $ 24 million. In addition, the non-GAAP tax rate of 24% is estimated periodically as described below under “Non-GAAP Financial Measures” and excludes approximately $ 39 million of estimated discrete tax benefits that are included in the annual effective tax rate estimated under GAAP.

Conference call

Tyler Technologies will host a conference call on Monday, June 7, 2021 at 10:00 a.m.ET to discuss the company’s financial directions and provide an update on the NIC acquisition. Participants can pre-register for the conference via the following link: http://dpregister.com/sreg/10157097/e8f3ed7c31. Registered participants will receive an email with a calendar reminder and a call number and PIN that allows immediate access to the call on Monday, June 7.

Participants who do not wish to pre-register the call can dial 844-861-5506 (US callers) or 412-317-6587 (international callers) or 866-450-4696 (Canadian callers) and request the “call from” Tyler Technologies. A replay will be available one hour after the call ends until June 14, 2021. To access the replay, please dial 877-344-7529 (US callers), 412-317-0088 (international callers) and 855 -669-9658 (callers in Canada) and reference access code 10157097.

The live webcast and archived replay can also be accessed at https://tylertech.irpass.com/Presentations, where presentation boards will also be available prior to the conference call.

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