Solera Holdings Cuts Fiscal 4Q Sales Call Short

Tony Aquila

Tony Aquila

Tony Aquila, Solera Holdings founder, chairperson and CEO, did not answer any questions or discuss the company’s future outlook during this week’s conference call on fiscal-year fourth-quarter sales. Why? Because the company is exploring a possible sale.

Solera Holdings is parent company to LYNX Services, GTS and Glaxis.

“In light of our announcement about exploring strategic alternatives the format for [the] call was abbreviated,” says Aquila. “We will not update our outlook for fiscal year 2016 nor conduct a Q&A session.”

For the fiscal year, the company reported a net loss of $100.8 million, as compared to $8.7 million in the prior year.

“The net loss reported for fiscal years 2015 and 2014 is due to certain non-recurring changes,” according to the company’s report.

For the fiscal fourth quarter, the company reported a loss of $146.8 million, compared to net income of $8.8 million in the same period of the previous fiscal year.

“The net loss attributable to Solera Holdings reported for the fourth quarter and fiscal year 2015 was primarily attributable to $150 million of income tax expenses recognized in the fourth quarter resulting from the withdrawal of the permanent reinvestment assertion with respect to $350 million of our foreign subsidiaries’ undistributed earnings generated through fiscal 2015,” according to the company’s report.

“Absent the non-recurring charges, we would have reported fiscal-year 2015 net income attributable to Solera Holdings of approximately $48.6 million, an 11.9 percent decrease over fiscal year 2014 net income … of $55.2 million,” based on the company’s report.

Additionally, without the non-recurring charges, the company would have reported fourth quarter net income of $2.7 million, a 69.7 percent decrease over the prior year, which was $8.8 million.

Revenue for the Americas came in at $160.7 million and $602.7 million for the fourth quarter and the full-fiscal year. This represents a 21.3 percent and 28.4 percent increase, respectively, of the same prior-year periods.

“After excluding the revenues of the Insurance and Services Division of Pittsburgh Glass Works and Service Repair Solutions, Americas revenues increased 5.3 percent over the prior fiscal year, and on a constant currency basis, increased 8.1 percent over the prior fiscal year,” according to the report. “After excluding I&S, Americas revenues increased 8.4 percent over the prior-year fourth quarter and, on a constant currency basis, increased 12.1 percent over the prior-year fourth quarter.”

“We were pleased with our fourth-quarter revenue of $297 million, which was up 7.5 percent on an organic constant currency basis and in-line with our expectations,” says Aquila.

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