April 28, 2020 / 1:07 PM / a month ago

BRIEF-Benefitfocus Details Comprehensive Actions to Proactively Manage Impact of COVID-19 Pandemic

April 28 (Reuters) - Benefitfocus Inc:

* BENEFITFOCUS - HAD SIGNIFICANT MOMENTUM FOR FIRST TWO MONTHS OF YEAR, WHICH BEGAN TO DECELERATE IN MARCH DUE TO GROWING MAGNITUDE OF COVID-19 PANDEMIC

* ENDED Q1 WITH A STRONG CASH BALANCE OF ABOUT $115 MILLION

* BENEFITFOCUS - IN Q1 OF 2020, ADJUSTED EBITDA IS EXPECTED TO BE ABOVE HIGH-END OF GUIDANCE

* IN Q1 OF 2020 EXPECT TO REPORT AN INCREASE IN NET BENEFIT ELIGIBLE LIVES

* EXPECT Q1 REVENUE TO FALL SHORT OF PREVIOUS QUARTERLY GUIDANCE

* IMPLEMENTED EXECUTIVE COMPENSATION REDUCTIONS INCLUDING REDUCING TAKE HOME PAY FOR CEO TO ZERO

* IMPLEMENTED EXECUTIVE COMPENSATION REDUCTIONS INCLUDING 20% SALARY REDUCTION FOR EXECUTIVE LEADERSHIP TEAM

* IMPLEMENTED REDUCTION IN TAKE HOME PAY FOR EXECUTIVE CHAIRMAN OF BOARD OF DIRECTORS TO ZERO

* IMPLEMENTED 25% REDUCTION IN EQUITY COMPENSATION FOR ALL OTHER BOARD MEMBERS

* SUSPENDED HIRING FOR ALL OPEN POSITIONS EXCEPT CRITICAL ROLES

* REDUCING IMMEDIATELY ITS U.S. WORKFORCE BY ABOUT 17% OR 250 EMPLOYEES

* EXPECTS TO TAKE RESTRUCTURING CHARGE IN Q2 WHICH WILL INCLUDE A CASH CHARGE OF ABOUT $5 MILLION RELATING TO RESTRUCTURING ACTIVITIES

* FOR Q1 2020 EXPECTS ADJUSTED EBITDA OF ABOUT $4 MILLION

* GAAP NET LOSS IS EXPECTED TO BE ABOUT $11 MILLION FOR Q1 2020

* SEES FULL YEAR 2020 TOTAL REVENUE OF ABOUT $250 MILLION TO $270 MILLION

* SEES FULL YEAR 2020 ADJUSTED EBITDA OF ABOUT $25 MILLION TO $35 MILLION

* Q1 REVENUE VIEW $68.7 MILLION — REFINITIV IBES DATA

* FY2020 REVENUE VIEW $310.2 MILLION — REFINITIV IBES DATA Source text for Eikon: Further company coverage:

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