ROSETTA STONE INC (RST) [Rocket]

In millions, except per share items	Dec-31-19	Dec-31-18	Dec-31-17	Dec-31-16	Dec-31-15	Dec-31-14	Dec-31-13	Dec-31-12
	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-K
Revenues:
Literacy	62.6	52.8	43.6		21.9	9.9
Consumer						177.2	204.4
Enterprise & Education							60.2
Enterprise & Education Language						74.8
Other	120.1	120.9	141.0		195.7
Total revenues	182.7	173.6	184.6	194.1	217.7	261.9	264.6	273.2
Revenue growth [+]	5.2%	-5.9%	-4.9%	-10.8%	-16.9%	-1.1%	-3.1%	1.8%
Literacy	18.7%	21.0%			121.2%
Consumer						-13.3%
Cost of goods sold	37.3	35.9	33.6	34.3	38.5	53.1	45.7	48.9
Gross profit	145.4	137.7	151.0	159.8	179.1	208.8	218.9	224.3
Gross margin	79.6%	79.3%	81.8%	82.3%	82.3%	79.7%	82.7%	82.1%
Selling, general and administrative [+]	133.9	132.1	130.7	154.8	186.2	230.3	202.5	206.1
Sales and marketing	99.6	98.9	96.7	114.3	136.1	173.2	146.1	150.9
General and administrative	34.3	33.2	34.1	40.5	50.1	57.1	56.4	55.3
Research and development	24.5	25.2	24.7	26.3	29.9	33.2	34.0	23.5
Other operating expenses							0.8
Adjusted EBITDA	6.6	-0.5	11.6	-3.1	-16.1	-34.0	0.4	10.8
Adjusted EBITDA margin	3.6%	-0.3%	6.3%	-1.6%	-7.4%	-13.0%	0.2%	4.0%
Stock-based compensation	4.4	4.5	4.1	4.9	7.2	6.8	9.2	8.0
EBITDA [+]	2.2	-5.0	7.5	-8.0	-23.3	-40.8	-8.8	2.8
EBITDA growth	-144.8%	-166.6%	-193.6%	-65.6%	-42.8%	363.3%	-413.3%	-114.7%
EBITDA margin	1.2%	-2.9%	4.1%	-4.1%	-10.7%	-15.6%	-3.3%	1.0%
Depreciation	13.6	11.3	8.2	9.0	8.5	7.6	7.8	8.0
EBITA	-11.4	-16.3	-0.7	-17.0	-31.8	-48.4	-16.6	-5.2
EBITA margin	-6.2%	-9.4%	-0.4%	-8.8%	-14.6%	-18.5%	-6.3%	-1.9%
Amortization of intangibles	1.5	3.3	3.8	4.4	5.2	6.3	1.8	0.0
EBIT [+]	-12.9	-19.6	-4.5	-21.3	-37.0	-54.7	-18.4	-5.3
EBIT growth	-34.1%	335.9%	-78.9%	-42.3%	-32.4%	196.6%	250.2%	-81.1%
EBIT margin	-7.1%	-11.3%	-2.4%	-11.0%	-17.0%	-20.9%	-7.0%	-1.9%
Non-recurring items [+]				5.6	6.8	24.1
Asset impairment				3.9	6.8	20.3
Unusual expense						3.8
Loss on contract termination				1.6	0.1
Interest expense, net [+]	0.3	0.2	0.4	0.4	0.4	0.2	-0.1	-0.2
Interest expense	0.3	0.3	0.5	0.5	0.4	0.2	0.1
Interest income	0.1	0.1	0.1	0.0	0.0	0.0	0.1	0.2
Other income (expense), net	0.6	0.2	0.9	2.3	-1.5	-1.1	0.4	0.0
Pre-tax income	-12.6	-19.7	-4.0	-25.0	-45.6	-80.2	-18.0	-5.1
Income taxes	0.3	1.8	-2.5	2.5	1.2	-6.5	-1.9	28.9
Tax rate			61.8%			8.1%	10.5%
Net income	-13.0	-21.5	-1.5	-27.6	-46.8	-73.7	-16.1	-34.0
Net margin	-7.1%	-12.4%	-0.8%	-14.2%	-21.5%	-28.1%	-6.1%	-12.4%

Basic EPS [+]	($0.55)	($0.95)	($0.07)	($1.25)	($2.17)	($3.47)	($0.75)	($1.61)
Growth	-41.6%	1260.7%	-94.5%	-42.2%	-37.4%	362.7%	-53.6%	70.7%
Diluted EPS [+]	($0.55)	($0.95)	($0.07)	($1.25)	($2.17)	($3.47)	($0.75)	($1.61)
Growth	-41.6%	1260.7%	-94.5%	-42.2%	-37.4%	362.7%	-53.6%	70.7%

Shares outstanding (basic) [+]	23.4	22.7	22.2	22.0	21.6	21.3	21.5	21.0
Growth	3.3%	2.1%	1.3%	1.8%	1.5%	-1.3%	2.3%	1.3%
Shares outstanding (diluted) [+]	23.4	22.7	22.2	22.0	21.6	21.3	21.5	21.0
Growth	3.3%	2.1%	1.3%	1.8%	1.5%	-1.3%	2.3%	1.3%

EBIT is a non-GAAP figure that excludes all non-recurring expenses: restructuring costs, asset impairments, IPR&D writeoffs, and other unusual charges.