Roy Guthrie to Become Chairman; Davis to Become
Executive Vice Chairman
Company Provides Preliminary Results for Full
Year 2015
LifeLock, Inc. (NYSE: LOCK), an industry leader in identity
theft protection, today announced that Hilary Schneider, the
company’s president, will succeed Todd Davis as chief executive
officer, effective March 1, 2016. On that date, Davis, a founder of
the company, will become executive vice chairman of the board and
Roy C. Guthrie, the company’s lead director, will become chairman.
Guthrie has served on the LifeLock board since October
2012. Ms. Schneider will also be appointed to the board.
“On behalf of the board, I would like to congratulate Hilary on
this appointment and thank Todd for his extraordinary contributions
to LifeLock over the years, including the groundwork he laid for a
smooth succession,” Guthrie said. “Under Todd’s leadership, the
company has grown from a startup into a thriving organization
that continues to set the standard for identity theft protection,
and we are pleased that he will continue to serve the company as
executive vice chairman.
“As LifeLock’s president for the past three years, Hilary has
been instrumental in establishing a foundation for LifeLock’s
future success, leading the company’s efforts to enhance its
processes, systems, and products. She is a highly talented
technology executive with the experience and vision to lead
continued value creation at the company,” concluded Guthrie.
“With LifeLock well positioned for continued success, the FTC
matter concluded, and Hilary ready to assume the role of CEO, this
is the right time to move forward with this succession plan,” said
Davis. “The commitment of the LifeLock team to protecting our
members’ identities continues to fuel our momentum. Today we are
announcing preliminary financial results for the fourth quarter of
2015 showing our 43rd consecutive quarter of sequential revenue
growth, with total revenue increasing by double digits.
“Hilary is deeply committed to our mission. She has an
exceptional understanding of technology, and a compelling strategic
vision for the company. I am confident that LifeLock will continue
to reach new heights under her leadership. I look forward to
continuing to work with Hilary, Roy and the rest of our board in my
ongoing role as executive vice chairman,” Davis concluded.
"It is an honor to succeed Todd as CEO of LifeLock and I am
excited about our company’s future," said Schneider. “Only a few
years ago, online identity was a name, address, and Social Security
number; today, it is the highly detailed picture created by a
consumer’s engagement on social media, online and mobile shopping
and banking, and the records that doctors, corporations and others
store online. The work we are doing to enhance our organization and
operate according to the highest standards in all we do will help
us establish LifeLock as not only the most trusted identity theft
solution provider in the industry, but also the leader in helping
consumers holistically manage their online identity. As we progress
toward these goals, we will become an even more important partner
to our members and generate increasing value for our
shareholders.”
Schneider has been LifeLock’s president since she joined the
company in 2012. Prior to joining LifeLock, Schneider served for
six years as executive vice president Yahoo!, Americas, where she
was responsible for Yahoo!’s North and South American business,
reporting directly to the chief executive officer. She has
also held senior leadership roles at Knight Ridder, Inc., where she
was chief executive officer of Knight Ridder Digital and ultimately
co-managed the company’s overall newspaper and online business.
Before that, she was president and chief executive officer of Red
Herring Communications, overseeing Red Herring Magazine,
RedHerring.com and Red Herring’s events unit, and served in a
number of roles at Times Mirror, including president and chief
executive officer of Times Mirror Interactive and general manager
of the Baltimore Sun. Earlier in her career she was vice president
of corporate finance at Drexel Burnham Lambert.
Schneider currently serves on the board of directors of Vail
Resorts, Inc.; Rent Path; and Water.org. She holds a bachelor’s
degree in economics from Brown University and an M.B.A. from
Harvard Business School.
Preliminary Results
Separately, the company announced preliminary results for full
year 2015:
- Total revenue in the range of
$586 million to $587 million, versus $476 million for 2014 and
guidance of $584 million to $586 million for 2015 provided in
connection with the announcement of the company’s third quarter
2015 earnings on October 28, 2015;
- Adjusted net income per diluted
share in the range of $0.62 to $0.63 based on 100.2 million
weighted-average shares outstanding, versus 2014 adjusted net
income per diluted share of $0.48 based on weighted average shares
outstanding of 99.1 million and guidance of $0.61-$0.63;
- Adjusted EBITDA of between $72
million to $73 million versus $55.5 million for 2014 and guidance
of $71 million to $73 million;
- Free cash flow of $88-$89
million versus $89.6 million last year and guidance of $95 million
to $100 million for 2015. Free cash flow was impacted by
approximately $3 million for prepaid marketing expenses expected to
occur during the first quarter of 2016 and an approximately $4
million increase in accounts receivable, of which the majority we
expect to collect by January 31, 2016.
The above information is preliminary and subject to completion
of quarter-end financial reporting processes and reviews. LifeLock
expects to release final fourth quarter and fiscal 2015 financial
results after the market close on February 10, 2016.
About LifeLock
LifeLock, Inc. (NYSE:LOCK) is a leading provider of proactive
identity theft protection services for consumers and consumer risk
management services for enterprises. LifeLock’s threat detection,
proactive identity alerts, and comprehensive remediation services
help provide peace of mind for consumers amid the growing threat of
identity theft. Leveraging unique data, science and patented
technology from ID Analytics, Inc., a wholly owned subsidiary,
LifeLock offers identity theft protection that goes significantly
beyond credit monitoring. As part of its commitment to help fight
identity theft, LifeLock works to train law enforcement and
partners with a variety of non-profit organizations to help
consumers establish positive habits to combat this threat.
Forward-Looking Statements
This press release contains "forward-looking" statements, as
that term is defined under the federal securities laws, including
statements regarding LifeLock’s succession plan, expectations for
its business performance, strategic goals and shareholder value
creation as well as LifeLock’s preliminary financial results for
the full fiscal year 2015. These forward-looking statements are
based on our current assumptions, expectations, and beliefs and are
subject to substantial risks, uncertainties, assumptions, and
changes in circumstances that may cause our actual results,
performance, or achievements to differ materially from those
expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are
not limited to, risks associated with our succession plan, risks
associated with our ability to maintain profitability; variability
in our cash flows; risks associated with our business, including
our ability to protect our customers’ confidential information; our
ability to maintain and enhance our brand recognition and
reputation; the competitive nature of the industries in which we
conduct our business; our ability to retain our existing customers
and attract new customers; our ability to improve our services and
develop and introduce new services with broad appeal; and our
ability to maintain existing and secure new relationships with
strategic partners; and other "Risk Factors" set forth in our most
recent SEC filings with the Securities and Exchange Commission, or
the SEC.
Further information on these and other factors that could affect
our financial results and the forward-looking statements in this
press release is included in our SEC filings, including our Annual
Report on Form 10-K for the year ended December 31, 2014,
particularly under the captions "Risk Factors" and "Management’s
Discussion and Analysis of Financial Condition and Results of
Operations" and our Forms 10-Q. Copies of these documents are
available on our Investor Relations website at
http://investor.lifelock.com/ or the SEC’s website at
www.sec.gov.
We assume no obligation and do not intend to update these
forward-looking statements, except as required by law.
Non-GAAP Financial Measures
Our preliminary financial results include certain non-GAAP
financial measures, including adjusted net income, adjusted net
income per diluted share, adjusted EBITDA, and free cash flow. We
calculate adjusted net income as net income (loss) excluding
amortization of acquired intangible assets, share-based
compensation, income tax benefits and expenses resulting from
changes in our deferred tax assets, and acquisition related
expenses. We calculate adjusted net income per diluted share by
dividing our adjusted net income by the weighted-average diluted
shares outstanding. We calculate adjusted EBITDA as net income
(loss) excluding depreciation and amortization, share-based
compensation, interest expense, interest income, other income
(expense), income tax (benefit) expense, and acquisition related
expenses. We have also excluded from adjusted net income, adjusted
net income per diluted share and adjusted EBITDA the impact of the
legal reserve for the settlements with the FTC and a nationwide
class of consumers, along with a possible settlement with certain
states' attorneys general for related claims and expenses related
to these litigations and settlements. We define free cash flow as
net cash provided by operating activities less net cash used in
investing activities for acquisitions of property and equipment. We
have also excluded from free cash flow the cash outflows for
settlement with the FTC and a nationwide class of consumers and
cash outflows which related to these litigations and settlements
along with a possible settlement with certain states’ attorneys
general for related claims.
We have included adjusted net income per diluted share, and
adjusted EBITDA in this press release because they are key measures
used by us to understand and evaluate our core operating
performance and trends, to prepare and approve our annual budget,
and to develop short- and long-term operational plans. In
particular, the exclusion of certain expenses in calculating
adjusted net income per diluted share and adjusted EBITDA can
provide a useful measure for period-to-period comparisons of our
core business. Additionally, adjusted EBITDA is a key financial
measure used in determining management’s incentive
compensation.
We have included free cash flow in this press release because we
believe it typically presents a more conservative measure of cash
flow as purchases of property and equipment are necessary
components of ongoing operations. We believe that this non-GAAP
financial measure is useful in evaluating our business because free
cash flow reflects the cash surplus available to fund the expansion
of our business after payment of capital expenditures relating to
the necessary components of ongoing operations. We also believe
that the use of free cash flow provides consistency and
comparability with our past financial performance, facilitates
period-to-period comparisons of operations, and also facilitates
comparisons with other companies, many of which use similar
non-GAAP financial measures to supplement their GAAP results.
Beginning in the quarter ended September 30, 2015, we have also
excluded the expenses related to the FTC litigation from our
adjusted net income per diluted share, adjusted EBITDA and free
cash flow.
Although adjusted net income per diluted share, adjusted EBITDA,
and free cash flow are frequently used by investors in their
evaluations of companies, these non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. Because of these limitations, these non-GAAP
financial measures should be considered alongside other financial
performance measures.
We have not reconciled our preliminary adjusted net income per
diluted share to net income (loss) per diluted share guidance or
adjusted EBITDA to net income (loss) because we are not yet able to
calculate share-based compensation expense, provision for income
taxes, interest income, interest expense, change in fair value of
warrant liabilities, change in fair value of embedded derivatives,
other income and expenses, depreciation expense, amortization of
intangible assets, acquisition expenses, legal reserves and
settlements, or income tax (benefit) expense, which are reconciling
items between net income (loss) and adjusted net income and net
income (loss) and adjusted EBITDA. As items that impact net income
(loss) are out of our control and/or cannot be reasonably
predicted, we are unable to provide such guidance. Accordingly,
reconciliation to net income (loss) is not available without
unreasonable effort. We will provide GAAP results and the
applicable reconciliations when we announce earnings for the fourth
quarter and full year 2015 on or about February 10, 2015.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160120006430/en/
LifeLock, Inc.Becca Youngs, +1
480-457-2170media@lifelock.com
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