Solera Holdings Reports Net Loss in Part Due to Pending Deal to Go Private

Tony Aquila, Solera Holdings founder and CEO

Tony Aquila, Solera Holdings founder and CEO

Tony Aquila, Solera Holdings founder, chairperson and CEO, did not answer any questions or talk about the company’s future outlook during the conference call late last week, which discussed fiscal-year first-quarter sales. Because the company is set to go private, the company sees no need, said Aquila.

Solera reported a net loss of $66.9 million for the first quarter due to “increased expenses related to a decrease in the fair value of our derivative financial instruments, an increase in interest expense due to additional senior unsecured notes issued in November 2014 and July 2015, and professional services and related costs incurred in relation to the proposed acquisition of Solera by Vista Equity Partners,” according to the company’s report.

Solera is parent company to LYNX Services, GTS and Glaxis. Vista Equity Partners, Koch Industries and Goldman, Sachs & Co., plan to acquire 100 percent of the outstanding shares of Solera common stock for $55.85 per share in cash. KGCI LLC, a subsidiary of Koch Industries Inc., is the largest individual shareholder of Guardian Industries. Though there were rumors that another company considered an offer for Solera Holdings that topped Vista Equity Partners deal, this has not come to fruition.

Revenue for the quarter was $313.3 million, up 11.9 percent over the same period in the prior year.  On a constant currency basis, revenue was up by 21.9 percent over the same time frame of the previous year.

Revenue for the Americas was $179.7 million for the quarter, up 24.6 percent from the same period of the previous year. On a constant currency basis, revenue was up 29 percent.

“After excluding the revenues of the Insurance and Services Division of Pittsburgh Glass Works LLC, Americas revenues increased 22.6 percent over the prior year first quarter, and on a constant currency basis, increased 27.4 percent over the prior year first quarter,” according to the report.

Solera has scheduled a special stockholders meeting for December 8, 2015 at 8 a.m. Central Time at the Grand Hyatt DFW at Dallas/Fort Worth International Airport to hold a vote on the deal.

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