Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) Q1 2022 Earnings Conference Call May 16, 2022 5:00 PM ET Company Participants Scott Turicchi – Chief Executive Officer John Nebergall – Chief Operating Officer James Malone – Chief Financial Officer Adam Varon – Senior Vice President of Finance Conference Call Participants Jonathan Tanwanteng – CJS Securities Gregory Burns – SIDOTI & Company Operator Good day, ladies and gentlemen, and welcome to Consensus Q1 2022 Earnings Call. My name is Paul and I will be t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number: 001-40750 Consensus Cloud Solutions, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40750 Consensus Cloud Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 87-1139414 (State or other jurisdiction o ...

CPNS 3.2.2022 Full Year and Fourth Quarter 2021 Preliminary Unaudited Results Forward-Looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2021 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in those statements. Readers shou ...

CPNS 3.2.2022 Full Year and Fourth Quarter 2021 Preliminary Unaudited Results Forward-Looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2021 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in those statements. Readers shou ...

Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) Q4 2021 Earnings Conference Call March 2, 2022 5:00 PM ET Company Participants Adam Varon - Senior Vice President, Finance and Accounting Scott Turicchi - Chief Executive Officer Jim Malone - Chief Financial Officer John Nebergall - Chief Operating Officer Conference Call Participants Jon Tanwanteng - CJS Securities Greg Burns - Sidoti Joe Goodwin - JMP Securities Operator Good day, ladies and gentlemen and welcome to Consensus Q4 Investor Call. My name is Tom a ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the period ended September 30, 2021 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $1.58 billion, driven by increased cash, while total liabilities decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $297,792 | $128,189 | | Total current assets | $367,331 | $198,275 | | Goodwill | $875,896 | $924,496 | | **Total assets** | **$1,576,776** | **$1,491,420** | | **Liabilities & Equity** | | | | Total current liabilities | $177,752 | $204,666 | | Total liabilities | $340,079 | $368,878 | | Total member's equity | $1,236,697 | $1,122,542 | | **Total liabilities and member's equity** | **$1,576,776** | **$1,491,420** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Revenue grew 7% in Q3, but net income declined significantly due to a loss on the sale of businesses Condensed Consolidated Statements of Income (in thousands) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $182,103 | $170,248 | $528,891 | $507,090 | | Gross profit | $141,396 | $131,827 | $413,031 | $390,882 | | Income from operations | $57,462 | $62,507 | $142,990 | $180,317 | | Goodwill impairment | $0 | $0 | $32,629 | $0 | | (Loss) gain on sale of businesses | $(24,600) | $17,122 | $(21,798) | $17,122 | | **Net income** | **$27,224** | **$58,923** | **$102,102** | **$133,334** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $196.4 million, supported by contributions from the Parent company Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $196,389 | $160,295 | | Net cash used in investing activities | $(37,753) | $(29,290) | | Net cash provided by (used in) financing activities | $14,378 | $(83,739) | | **Net change in cash and cash equivalents** | **$169,603** | **$48,346** | | Cash and cash equivalents at end of period | $297,792 | $171,121 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the carve-out basis, spin-off, acquisitions, dispositions, and subsequent debt issuance - The financial statements were prepared on a **"carve-out" basis** from J2 Global, which may not reflect standalone expenses[24](index=24&type=chunk)[25](index=25&type=chunk) - The **spin-off** from J2 Global was completed on October 7, 2021, establishing an independent public company[21](index=21&type=chunk)[166](index=166&type=chunk) - The acquisition of SEOmoz for **$66.5 million** contributed **$14.4 million** to revenues for the nine-month period[85](index=85&type=chunk)[86](index=86&type=chunk) - The sale of the B2B Backup business resulted in a **$24.6 million loss**, following a **$32.6 million goodwill impairment**[95](index=95&type=chunk) - Post-spin-off, the company issued **$805 million in new senior notes** to fund operations[167](index=167&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes carve-out basis financial results, highlighting revenue growth and increased operating expenses - The MD&A is based on historical carve-out financials that include businesses not part of Consensus post-separation[178](index=178&type=chunk) Revenue Analysis (in thousands) | Period | Revenue | % Change YoY | | :--- | :--- | :--- | | Q3 2021 | $182,103 | 7% | | 9 Months 2021 | $528,891 | 4% | - Increased Sales and Marketing expenses, **up 33% in Q3**, were driven by costs from recent acquisitions[195](index=195&type=chunk) - A **goodwill impairment charge of $32.6 million** was recorded in Q2 2021 related to the planned sale of the B2B Backup business[200](index=200&type=chunk) - Net cash from operations for the nine-month period **increased to $196.4 million** from $160.3 million in the prior year[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include minimal interest rate risk and foreign currency exposure - **Interest rate risk is minimal** as cash equivalents have short maturities and there was no variable-rate long-term debt[231](index=231&type=chunk)[232](index=232&type=chunk) - The company is exposed to **foreign currency risk** from business in Canada, Australia, and the European Union[234](index=234&type=chunk) Foreign Currency Impact (in millions) | Metric | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | | Foreign exchange gain (in earnings) | $1.4 | $15.5 | | Cumulative translation adjustment loss (in OCI) | $(13.6) | $(11.6) | [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021 - The company's management concluded that **disclosure controls and procedures were effective** as of the end of the period[243](index=243&type=chunk) - No material changes occurred during the third quarter that affected the company's internal control over financial reporting[244](index=244&type=chunk) [Part II. Other Information](index=44&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financials - Information regarding legal proceedings is detailed in Note 9 of the Notes to Consolidated Financial Statements[245](index=245&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the company's Information Statement filing - **No material changes** to the risk factors have occurred since those described in the Information Statement[246](index=246&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - None[247](index=247&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists key agreements filed with the Form 10-Q related to the company's spin-off - Exhibits include the **Separation and Distribution Agreement** with Ziff Davis, Inc, dated October 7, 2021[252](index=252&type=chunk) - Indentures for the **6.0% Senior Notes due 2026** and the **6.5% Senior Notes due 2028** are filed as exhibits[252](index=252&type=chunk) - Other key agreements filed include the Transition Services Agreement, Tax Matters Agreement, and Employee Matters Agreement[252](index=252&type=chunk)