NEW YORK, July 28, 2015
/PRNewswire/ --
- Revenues totaled $65.8 million in
the second quarter, an increase of 1% year-over-year in constant
currency
- Adjusted EBITDA in the second quarter totaled $19.1 million
- Net income for the second quarter totaled $5.7 million, resulting in diluted earnings per
share of $0.11
- Cash flows from operations totaled $17.9
million for the second quarter and $37.0 million for the first six months of 2015,
an increase of 11% year-over-year
- Continued success of Open Web, with Dice's Open Web annual
customer count increasing 39% from year-end 2014
DHI Group, Inc. (NYSE: DHX) (the "Company"), a leading provider
of specialized websites and services for professional communities,
today reported financial results for the quarter ended
June 30, 2015. The Company also announced that it plans
to sell the Slashdot Media business.
"We made further progress on several of our strategic
initiatives during the second quarter," said Michael Durney, President and Chief Executive
Officer. "Most notably, we expanded our market opportunity in
healthcare through the launch of SHIFT, and expanded our Dice
service into the UK and Continental Europe through the rebranding
of The IT Job Board to Dice. In addition, we generated
significant growth in all three brands (Health eCareers, Hcareers
and BioSpace) acquired in the 2013 onTargetjobs acquisition."
Revenues for the quarter ended June 30, 2015 totaled
$65.8 million, a decrease of 1% from
$66.5 million in the comparable
quarter of 2014. Excluding the $1.3
million negative impact of currency translation, revenues
increased 1% year-over-year.
The Company's net income for the quarter ended June 30,
2015 totaled $5.7 million, resulting
in diluted earnings per share of $0.11.
Net cash provided by operating activities totaled $17.9 million for the quarter ended June 30,
2015.
Adjusted EBITDA for the quarter ended June 30, 2015 totaled
$19.1 million, or 29% of Adjusted
Revenues. See "Notes Regarding the Use of Non-GAAP Financial
Measures" and "Supplemental Information and Non-GAAP
Reconciliations."
Operating Segment Results
For the quarter ended June 30, 2015, Tech & Clearance
segment revenues increased 4% year-over-year to $34.7 million, or 53% of consolidated revenues,
with growth in most of the segment brands. ClearanceJobs,
while only accounting for 4% of our overall revenues, achieved
year-over-year growth of 22% driven by favorable market conditions
in the government sector, as well as the ClearanceJobs product
launch of Pay Per View job postings. The IT Job Board (now
known as Dice Europe) revenues increased 20% year-over-year.
Finance segment revenues for the second quarter of 2015
decreased $0.3 million or 3%
year-over-year to $8.9 million, with
currency translation negatively impacting revenues by $0.7 million. On a constant currency basis,
revenues increased 5% year-over-year.
The Energy segment revenues decreased 32% year-over-year to
$5.7 million in the quarter ended
June 30, 2015. During the second quarter, the Energy business
continued to see the negative impact on recruitment and advertising
activity from the poor overall market in oil and gas.
For the quarter ended June 30, 2015, the Healthcare segment
revenues increased $1.2 million or
18% year-over-year to $7.8
million. The increase primarily reflects an increase
in usage of our services at both Health eCareers and
BioSpace.
Hospitality segment revenues for the second quarter of 2015 were
$4.3 million, an increase of
$0.9 million or 25%
year-over-year. The increase reflects increased usage by
customers and the impact of the fair value adjustment for deferred
revenue in 2014 ($0.3 million).
Corporate & Other segment revenues decreased 22% to
$4.3 million for the quarter ended
June 30, 2015, primarily reflecting a decline in certain
revenue streams at Slashdot Media.
"We delivered improved financial performance in a number of our
core businesses during the second quarter. This helped to
offset, in part, continued headwinds from the dramatic decline in
oil prices on our Energy segment and currency, demonstrating the
strength of our consistent, subscription-based business model and
diversified portfolio of brands," said John
Roberts, Chief Financial Officer.
Six Month Operating Results
Revenues for the six months ended June 30, 2015 totaled
$129.6 million, an increase of 2%
from $127.2 million in the comparable
period of 2014. On a constant currency basis, revenues
increased 5% year-over-year.
By segment, Tech & Clearance revenues increased 5% to
$68.0 million for the six months
ended June 30, 2015. In the same period, Finance segment
revenues decreased by $0.5 million or
3% to $17.5 million from the six
months ended June 30, 2014, with currency translation
negatively impacting revenues by $1.4
million compared to the comparable 2014 period. Energy
segment revenues decreased 16% to $12.1
million. Healthcare revenues increased 14% to
$14.9 million and Hospitality
revenues increased 30% to $8.3
million for the six months ended June
30, 2015. Corporate & Other revenues decreased 14%
to $8.8 million.
Net income for the six months ended June 30, 2015 totaled
$10.8 million, resulting in diluted
earnings per share of $0.20.
Net cash provided by operating activities totaled $37.0 million for the six months ended
June 30, 2015. Adjusted EBITDA for the six months ended
June 30, 2015 totaled $36.7
million, or 28% of Adjusted Revenues. See "Notes
Regarding the Use of Non-GAAP Financial Measures" and "Supplemental
Information and Non-GAAP Reconciliations."
Planned Sale of Slashdot Media
The Company announced that it plans to sell the Slashdot and
SourceForge businesses (together referred to as "Slashdot Media")
and has engaged KeyBanc Capital Markets Inc. to act as exclusive
financial advisor to the Company in connection with such a
transaction.
The Company acquired Slashdot Media in 2012 both to provide the
Dice business with broader reach into Slashdot's user community
base and to extend the Dice business outside North America by engaging with SourceForge's
significant international technology user community. The
Company, however, has not successfully leveraged the Slashdot user
base to further Dice's digital recruitment business; and with the
acquisition of The IT Job Board and success of Open Web, the
anticipated value to the Company of the SourceForge traffic outside
North America has not
materialized. The Company now plans to divest the business,
as it does not fit within the Company's strategic initiatives and
believes the Slashdot Media business will have the opportunity to
improve its financial performance under different ownership.
"While Slashdot Media has an established and solid position in
the Open Source community with iconic brands and an incredibly
loyal and passionate following of tech professionals, it is no
longer a core strategic business for DHI. We believe Slashdot
Media will have greater opportunity to capitalize on its brand
equity and unique assets as part of a business that is focused
primarily on media and software solutions and, at the same time,
divestiture of the businesses will allow us to allocate resources
to our core strategies," said Michael
Durney, President and Chief Executive Officer.
The Slashdot Media business has been classified as "held for
sale." As such, the assets of Slashdot Media are shown on the
Condensed Consolidated Balance Sheets under the heading of "Assets
Held for Sale" and the liabilities are shown under "Liabilities
Held for Sale." Operating results are included in the
Corporate & Other segment in Segment Information. Given
the planned sale of Slashdot Media, we believe it is an important
measure of our performance to present our financial results
excluding Slashdot Media operations. For a reconciliation of
our financial results for the three and six month periods ended
June 30, 2015 and 2014 excluding Slashdot Media, see "Notes
Regarding the Use of Non-GAAP Financial Measures" and "Supplemental
Information and Non-GAAP Reconciliations."
Balance Sheet
Deferred revenue at June 30, 2015 was $88.1 million, including $1.7 million of Slashdot Media deferred revenue
classified as held for sale as of June 30, 2015, compared to
$85.7 million at June 30, 2014 and $86.4
million at December 31, 2014. The $2.4 million or 3% year-over-year increase was
primarily driven by our Tech & Clearance segment, which grew
6%, as well as the Finance segment, partially offset by a decrease
in the Energy segment.
Net Debt, defined as total debt less cash and cash equivalents,
was $71.6 million at June 30,
2015, consisting of total debt of $104.3
million minus cash and cash equivalents of $32.7 million. This compares to Net Debt of
$83.7 million at December 31,
2014, consisting of total debt of $110.5
million minus cash and cash equivalents of $26.8 million.
During the second quarter of 2015, the Company purchased
approximately 1.4 million shares of its common stock pursuant to
its stock repurchase plan at an average cost of $8.48 per share, for a total cost of
approximately $12.2 million.
Business Outlook
"In the first half of 2015, we made a lot of progress on our
path of innovation, integration and evolution. As we look to
the remainder of 2015, we are confident in our approach to
strengthen our leadership position in each of our vertical
markets," said Michael Durney,
President and CEO. "We will continue to deliver greater value for
customers and professionals as we work to improve product
performance and capabilities across all of our brands, while
continuing our balanced approach to investing in future growth
while returning cash to shareholders. At the same time, we
are actively pursuing a number of new opportunities for
growth. With increasing expertise in data and analytics and
the rich insights we are able to provide, we are well-positioned to
drive growth and create greater value for our shareholders
longer-term."
The Company is providing a current, point-in-time view of
estimated financial performance for the quarter ending September 30, 2015 and the year ending
December 31, 2015 based on its assessment as of July 28,
2015. The Company's estimated financial performance for 2015
reflects investments in new growth initiatives, ongoing investments
related to product development including Open Web and the
anticipated negative impact of currency fluctuations compared to
2014. Additionally, the Company's estimated financial
performance for 2015 reflects the anticipated negative impact on
its Energy segment from the reduction in recruitment and
advertising activity resulting from the significant decline in oil
prices. The Company's estimated financial performance
reflects the removal of the Slashdot Media business given the
Company's plan to divest of that business.
The Company's actual performance will vary based on a number of
factors including those that are outlined in the Company's Annual
Report on Form 10-K for the year ended December 31, 2014 in
the sections entitled "Risk Factors," "Forward-Looking Statements"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations." In addition, for a description of
Adjusted EBITDA as used below, see "Notes Regarding the Use of
Non-GAAP Financial Measures" and for required reconciliations to
the most comparable GAAP measures, see "Supplemental Information
and Non-GAAP Reconciliations."
Given the planned divestiture of Slashdot Media and our
reporting of such business, we believe, in order to provide more
meaningful estimates of our future financial performance, it is
more appropriate to discuss our estimated future financial
performance excluding Slashdot Media operations going
forward. Please refer to the table below for a reconciliation
of the full-year 2015 guidance for Revenues, Adjusted EBITDA and
Net Income that was provided on April 29,
2015 to what the full-year 2015 guidance on those measures
would have been had Slashdot Media been excluded.
Reconciliation of
Prior Full-Year 2015 Estimate Excluding Slashdot
Media
|
|
|
Revenues
|
Adjusted
EBITDA
|
Net
Income
|
|
|
|
|
|
|
Full-year 2015
estimate provided April 29, 2015
|
$263 - $271
mm
|
$77 - $82
mm
|
$25 - $27
mm
|
|
Less: Slashdot Media
estimate included in above
|
$18 - $20
mm
|
$5 - $6 mm
|
$3 - $4 mm
|
|
Full-year 2015
estimate, excluding Slashdot Media
|
$243 - $251
mm
|
$71 - $76
mm
|
$21 - $23
mm
|
|
|
|
|
|
|
A reconciliation of
depreciation and amortization, non-cash stock compensation expense,
interest expense, net and income taxes is not provided because the
impact on consolidated business results is not
significant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Full-Year
2015 Business Outlook Excluding Slashdot Media
|
|
|
|
|
|
|
|
Quarter
ending
September 30,
2015
|
Year
ending
December 31,
2015
|
|
|
|
|
|
|
Revenues excluding
Slashdot Media *
|
|
$60.5 - $62.0
mm
|
$244.0 - $249.0
mm
|
|
|
|
|
|
|
Estimated
Contribution by Segment
|
|
|
|
|
Tech &
Clearance
|
|
57%
|
56%
|
|
Finance
|
|
15%
|
15%
|
|
Energy
|
|
8%
|
8%
|
|
Healthcare
|
|
12%
|
13%
|
|
Hospitality
|
|
7%
|
7%
|
|
Corporate &
Other
|
|
1%
|
1%
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$17.0 - $18.0
mm
|
$71.0 - $75.0
mm
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$5.5 mm
|
$23.0 mm
|
|
Non-cash stock
compensation expense
|
|
$2.5 mm
|
$10.4 mm
|
|
Interest expense,
net
|
|
$0.8 mm
|
$3.3 mm
|
|
Income
taxes
|
|
$3.4 - $3.6
mm
|
$13.8 - $15.0
mm
|
|
|
|
|
|
|
Net income
|
|
$5.4 - $5.7
mm
|
$21.1 - $22.9
mm
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$0.10 -
$0.11
|
$0.40 - $0.43
mm
|
|
|
|
|
|
|
Diluted share
count
|
|
53 million
|
53 million
|
|
|
|
|
|
|
* For the full-year
2015, the Company estimates Slashdot Media will generate
$15.0-$16.0 million in revenues.
|
|
Conference Call Information
The Company will host a conference call to discuss second
quarter results today at 8:30 a.m. Eastern
Time. Hosting the call will be Michael Durney, President and Chief Executive
Officer, and John Roberts, Chief
Financial Officer.
The conference call can be accessed live over the phone by
dialing 1-866-777-2509 or for international callers by dialing
1-412-317-5413. Please ask to be joined to the DHI Group,
Inc. call. A replay will be available one hour after the call
and can be accessed by dialing 1-877-344-7529 or 1-412-317-0088 for
international callers; the replay passcode is 10069042. The replay
will be available until August 4,
2015.
The call will also be webcast live from the Company's website at
www.dhigroupinc.com under the Investor Relations section.
Investor Contact
Jennifer Milan
Director, Investor Relations
DHI Group, Inc.
212-448-4181
ir@dhigroupinc.com
Media Contact
Courtney Chamberlain
Public Relations & Investor Relations Associate
DHI Group, Inc.
212-448-8288
media@dhigroupinc.com
About DHI Group, Inc.
DHI Group, Inc. (NYSE: DHX) (formerly known as Dice Holdings,
Inc.) is a leading provider of specialized websites and services
for professional communities including technology and security
clearance, financial services, energy, healthcare and hospitality.
Our mission is to empower professionals and organizations to
compete and win through specialized insights and relevant
connections. Employers and recruiters use our websites and services
to source and hire the most qualified professionals in select and
highly-skilled occupations, while professionals use our websites
and services to find the best employment opportunities in and most
timely news and information about their respective areas of
expertise. For almost 25 years, we have built our company on
providing employers and recruiters with efficient access to
high-quality, unique professional communities and offering the
professionals in those communities access to highly-relevant career
opportunities, news, tools and information. Today, we serve
multiple markets primarily located throughout North America, Europe and the Asia
Pacific region.
Notes Regarding the Use of Non-GAAP Financial
Measures
The Company has provided certain non-GAAP financial information
as additional information for its operating results. These
measures are not in accordance with, or an alternative for,
generally accepted accounting principles in the United States ("GAAP") and may be
different from similarly titled non-GAAP measures reported by other
companies. The Company believes that its presentation of
non-GAAP measures, such as adjusted earnings before interest,
taxes, depreciation, amortization, non-cash stock based
compensation expense, and other non-recurring income or expense
("Adjusted EBITDA"), Adjusted EBITDA excluding Slashdot Media, free
cash flow, Adjusted Revenues, Adjusted Revenues excluding Slashdot
Media, Net Income excluding Slashdot Media, net cash and net debt,
provides useful information to management and investors regarding
certain financial and business trends relating to its financial
condition and results of operations. In addition, the
Company's management uses these measures for reviewing the
financial results of the Company and for budgeting and planning
purposes. The Company has provided required reconciliations
to the most comparable GAAP measures in the section entitled
"Supplemental Information and Non-GAAP Reconciliations."
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP metric used by management to
measure operating performance. Management uses Adjusted
EBITDA as a performance measure for internal monitoring and
planning, including preparation of annual budgets, analyzing
investment decisions and evaluating profitability and performance
comparisons between us and our competitors. The Company also
uses this measure to calculate amounts of performance based
compensation under the senior management incentive bonus
program. Adjusted EBITDA, as defined in our Credit Agreement,
represents net income plus (to the extent deducted in calculating
such net income) interest expense, income tax expense, depreciation
and amortization, non-cash stock option expenses, losses resulting
from certain dispositions outside the ordinary course of business,
certain writeoffs in connection with indebtedness, impairment
charges with respect to long-lived assets, expenses incurred in
connection with an equity offering, extraordinary or non-recurring
non-cash expenses or losses, transaction costs in connection with
the Credit Agreement up to $250,000,
deferred revenues written off in connection with acquisition
purchase accounting adjustments, writeoff of non-cash stock
compensation expense, and business interruption insurance proceeds,
minus (to the extent included in calculating such net income)
non-cash income or gains, interest income, and any income or gain
resulting from certain dispositions outside the ordinary course of
business.
We consider Adjusted EBITDA, as defined above, to be an
important indicator to investors because it provides information
related to our ability to provide cash flows to meet future debt
service, capital expenditures and working capital requirements and
to fund future growth as well as to monitor compliance with
financial covenants. We present Adjusted EBITDA as a
supplemental performance measure because we believe that this
measure provides our board of directors, management and investors
with additional information to measure our performance, provide
comparisons from period to period and company to company by
excluding potential differences caused by variations in capital
structures (affecting interest expense) and tax positions (such as
the impact on periods or companies of changes in effective tax
rates or net operating losses), and to estimate our value.
We present Adjusted EBITDA because covenants in our Credit
Agreement contain ratios based on this measure. Our Credit
Agreement is material to us because it is one of our primary
sources of liquidity. If our Adjusted EBITDA were to decline
below certain levels, covenants in our Credit Agreement that are
based on Adjusted EBITDA may be violated and could cause a default
and acceleration of payment obligations under our Credit
Agreement.
Adjusted EBITDA is not a measurement of our financial
performance under GAAP and should not be considered as an
alternative to net income, operating income or any other
performance measures derived in accordance with GAAP or as an
alternative to cash flow from operating activities as a measure of
our profitability or liquidity.
Adjusted EBITDA Excluding Slashdot Media
Adjusted EBITDA excluding Slashdot Media is a non-GAAP metric
used by management to measure operating performance. Management
uses Adjusted EBITDA excluding Slashdot Media as a measure of our
financial performance going forward. Adjusted EBITDA excluding
Slashdot Media, represents Adjusted EBITDA defined above, less
Slashdot Media EBITDA.
Adjusted Revenues
Adjusted Revenues is a non-GAAP metric used by management to
measure operating performance. Adjusted Revenues represents
Revenues plus the add back of the fair value adjustment to deferred
revenue related to purchase accounting of acquisitions. We
consider Adjusted Revenues to be an important measure to evaluate
the performance of our acquisitions.
Adjusted Revenues Excluding Slashdot Media
Adjusted Revenues excluding Slashdot Media is a non-GAAP metric
used by management to measure operating performance. Adjusted
Revenues excluding Slashdot Media represents Adjusted Revenues as
defined above less Slashdot Media revenue. We consider
Adjusted Revenues excluding Slashdot Media to be an important
measure to evaluate our financial performance going forward.
Net Income Excluding Slashdot Media
Net Income excluding Slashdot Media is a non-GAAP metric used by
management to measure operating performance. Net Income excluding
Slashdot Media is defined as Net Income less Slashdot Media Net
Income. We consider Net Income excluding Slashdot Media to be an
important measure of our financial performance going forward.
Net Income excluding Slashdot Media presented herein is a non-GAAP
measure and may not be comparable to similarly titled measures used
by other companies.
Free Cash Flow
We define free cash flow as net cash provided by operating
activities minus capital expenditures. We believe free cash flow is
an important non-GAAP measure as it provides useful cash flow
information regarding our ability to service, incur or pay down
indebtedness or repurchase our common stock. We use free cash
flow as a measure to reflect cash available to service our debt as
well as to fund our expenditures. A limitation of using free
cash flow versus the GAAP measure of net cash provided by operating
activities is that free cash flow does not represent the total
increase or decrease in the cash balance from operations for the
period since it includes cash used for capital expenditures during
the period and is adjusted for acquisition related payments within
operating cash flows.
Net Cash/Net Debt
Net Cash is defined as cash and cash equivalents less total
debt. Net Debt is defined as total debt less cash and cash
equivalents. We consider Net Cash and Net Debt to be important
measures of liquidity and indicators of our ability to meet ongoing
obligations. We also use Net Cash and Net Debt, among other
measures, in evaluating our choices for capital deployment.
Net Cash and Net Debt presented herein are non-GAAP measures and
may not be comparable to similarly titled measures used by other
companies.
Forward-Looking Statements
This press release and oral statements made from time to time by
our representatives contain forward-looking statements. You should
not place undue reliance on those statements because they are
subject to numerous uncertainties and factors relating to our
operations and business environment, all of which are difficult to
predict and many of which are beyond our control. Forward-looking
statements include information without limitation concerning our
possible or assumed future results of operations, including
descriptions of our business strategy. These statements often
include words such as "may," "will," "should," "believe," "expect,"
"anticipate," "intend," "plan," "estimate" or similar
expressions. These statements are based on assumptions that
we have made in light of our experience in the industry as well as
our perceptions of historical trends, current conditions, expected
future developments and other factors we believe are appropriate
under the circumstances. Although we believe that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect our actual financial
results or results of operations and could cause actual results to
differ materially from those in the forward-looking
statements. These factors include, but are not limited to,
competition from existing and future competitors in the highly
competitive market in which we operate, failure to adapt our
business model to keep pace with rapid changes in the recruiting
and career services business, failure to maintain and develop our
reputation and brand recognition, failure to increase or maintain
the number of customers who purchase recruitment packages,
cyclicality or downturns in the economy or industries we serve,
failure to attract qualified professionals to our websites or grow
the number of qualified professionals who use our websites, failure
to successfully identify or integrate acquisitions, U.S. and
foreign government regulation of the Internet and taxation, our
ability to borrow funds under our revolving credit facility or
refinance our indebtedness and restrictions on our current and
future operations under such indebtedness. These factors and
others are discussed in more detail in the Company's filings with
the Securities and Exchange Commission, all of which are available
on the Investors page of our website at www.dhigroupinc.com,
including the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2014 (Dice Holdings, Inc. as of
December 31, 2014), under the
headings "Risk Factors," "Forward-Looking Statements" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations."
You should keep in mind that any forward-looking statement made
by the Company or its representatives herein, or elsewhere, speaks
only as of the date on which it is made. New risks and
uncertainties come up from time to time, and it is impossible to
predict these events or how they may affect us. We have no
obligation to update any forward-looking statements after the date
hereof, except as required by applicable law.
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(in thousands
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
June 30,
|
|
For the six months
ended
June 30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
65,802
|
|
|
$
|
66,544
|
|
|
$
|
129,572
|
|
|
$
|
127,234
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
9,865
|
|
|
9,531
|
|
|
19,490
|
|
|
18,385
|
|
Product
development
|
7,055
|
|
|
6,364
|
|
|
14,144
|
|
|
12,767
|
|
Sales and
marketing
|
20,527
|
|
|
20,268
|
|
|
41,205
|
|
|
39,286
|
|
General and
administrative
|
11,829
|
|
|
10,009
|
|
|
23,101
|
|
|
21,371
|
|
Depreciation
|
2,254
|
|
|
2,896
|
|
|
4,457
|
|
|
5,717
|
|
Amortization of
intangible assets
|
3,756
|
|
|
4,443
|
|
|
7,499
|
|
|
8,754
|
|
Change in acquisition
related contingencies
|
—
|
|
|
45
|
|
|
—
|
|
|
90
|
|
|
Total operating
expenses
|
55,286
|
|
|
53,556
|
|
|
109,896
|
|
|
106,370
|
|
Operating
income
|
10,516
|
|
|
12,988
|
|
|
19,676
|
|
|
20,864
|
|
Interest
expense
|
(833)
|
|
|
(1,055)
|
|
|
(1,641)
|
|
|
(1,948)
|
|
Other income
(expense)
|
18
|
|
|
(129)
|
|
|
(9)
|
|
|
(137)
|
|
Income before income
taxes
|
9,701
|
|
|
11,804
|
|
|
18,026
|
|
|
18,779
|
|
Income tax
expense
|
4,023
|
|
|
4,596
|
|
|
7,256
|
|
|
7,176
|
|
Net income
|
$
|
5,678
|
|
|
$
|
7,208
|
|
|
$
|
10,770
|
|
|
$
|
11,603
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.11
|
|
|
$
|
0.14
|
|
|
$
|
0.21
|
|
|
$
|
0.22
|
|
Diluted earnings per
share
|
$
|
0.11
|
|
|
$
|
0.13
|
|
|
$
|
0.20
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
51,753
|
|
|
52,275
|
|
|
52,019
|
|
|
52,688
|
|
Weighted average
diluted shares outstanding
|
52,965
|
|
|
54,190
|
|
|
53,427
|
|
|
54,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
June 30,
|
|
For the six months
ended
June 30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,678
|
|
|
$
|
7,208
|
|
|
$
|
10,770
|
|
|
$
|
11,603
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
2,254
|
|
|
2,896
|
|
|
4,457
|
|
|
5,717
|
|
Amortization of
intangible assets
|
|
3,756
|
|
|
4,443
|
|
|
7,499
|
|
|
8,754
|
|
Deferred income
taxes
|
|
(1,242)
|
|
|
(1,233)
|
|
|
(1,828)
|
|
|
(2,685)
|
|
Amortization of
deferred financing costs
|
|
105
|
|
|
93
|
|
|
209
|
|
|
185
|
|
Stock based
compensation
|
|
2,577
|
|
|
1,801
|
|
|
5,080
|
|
|
4,147
|
|
Change in acquisition
related contingencies
|
|
—
|
|
|
45
|
|
|
—
|
|
|
90
|
|
Change in accrual for
unrecognized tax benefits
|
|
81
|
|
|
127
|
|
|
164
|
|
|
280
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,502
|
|
|
5,338
|
|
|
4,829
|
|
|
1,195
|
|
Prepaid expenses and
other assets
|
|
1,622
|
|
|
372
|
|
|
1,127
|
|
|
(2,172)
|
|
Accounts payable and
accrued expenses
|
|
351
|
|
|
1,146
|
|
|
(3,813)
|
|
|
(4,616)
|
|
Income taxes
receivable/payable
|
|
3,407
|
|
|
1,754
|
|
|
6,330
|
|
|
3,923
|
|
Deferred
revenue
|
|
(3,398)
|
|
|
(2,659)
|
|
|
2,033
|
|
|
6,928
|
|
Other, net
|
|
176
|
|
|
14
|
|
|
132
|
|
|
16
|
|
Net cash flows from
operating activities
|
|
17,869
|
|
|
21,345
|
|
|
36,989
|
|
|
33,365
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Payments for
acquisitions, net of cash acquired
|
|
—
|
|
|
(277)
|
|
|
—
|
|
|
(27,001)
|
|
Purchases of fixed
assets
|
|
(2,452)
|
|
|
(2,377)
|
|
|
(4,928)
|
|
|
(4,946)
|
|
Net cash flows from
investing activities
|
|
(2,452)
|
|
|
(2,654)
|
|
|
(4,928)
|
|
|
(31,947)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
|
(10,625)
|
|
|
(10,625)
|
|
|
(21,250)
|
|
|
(14,250)
|
|
Proceeds from long-term
debt
|
|
10,000
|
|
|
6,000
|
|
|
15,000
|
|
|
12,000
|
|
Payments under stock
repurchase plan
|
|
(12,663)
|
|
|
(11,675)
|
|
|
(21,379)
|
|
|
(18,547)
|
|
Payment of acquisition
related contingencies
|
|
—
|
|
|
—
|
|
|
(3,829)
|
|
|
(824)
|
|
Proceeds from stock
option exercises
|
|
1,852
|
|
|
806
|
|
|
5,139
|
|
|
3,320
|
|
Purchase of treasury
stock related to vested restricted stock
|
|
(14)
|
|
|
(57)
|
|
|
(1,546)
|
|
|
(1,111)
|
|
Excess tax benefit over
book expense from stock based compensation
|
|
1,045
|
|
|
438
|
|
|
1,421
|
|
|
635
|
|
Net cash flows from
financing activities
|
|
(10,405)
|
|
|
(15,113)
|
|
|
(26,444)
|
|
|
(18,777)
|
|
Effect of exchange
rate changes
|
|
(316)
|
|
|
(1,569)
|
|
|
267
|
|
|
(1,942)
|
|
Net change in cash
and cash equivalents for the period
|
|
4,696
|
|
|
2,009
|
|
|
5,884
|
|
|
(19,301)
|
|
Cash and cash
equivalents, beginning of period
|
|
27,965
|
|
|
18,041
|
|
|
26,777
|
|
|
39,351
|
|
Cash and cash
equivalents, end of period
|
|
$
|
32,661
|
|
|
$
|
20,050
|
|
|
$
|
32,661
|
|
|
$
|
20,050
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
June 30,
2015
|
|
December 31,
2014
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
32,661
|
|
|
$
|
26,777
|
|
|
Accounts receivable,
net
|
40,098
|
|
|
49,048
|
|
|
Deferred income
taxes—current
|
3,337
|
|
|
3,373
|
|
|
Income taxes
receivable
|
1,115
|
|
|
3,973
|
|
|
Prepaid and other
current assets
|
3,711
|
|
|
4,764
|
|
|
Assets held for
sale
|
4,416
|
|
|
—
|
|
|
|
Total current
assets
|
85,338
|
|
|
87,935
|
|
Fixed assets,
net
|
16,001
|
|
|
16,066
|
|
Acquired intangible
assets, net
|
73,075
|
|
|
81,345
|
|
Goodwill
|
239,185
|
|
|
239,256
|
|
Deferred financing
costs, net
|
1,111
|
|
|
1,320
|
|
Deferred income
taxes—non-current
|
306
|
|
|
399
|
|
Other
assets
|
704
|
|
|
926
|
|
|
|
Total
assets
|
$
|
415,720
|
|
|
$
|
427,247
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
20,766
|
|
|
$
|
25,714
|
|
|
Deferred
revenue
|
86,363
|
|
|
86,444
|
|
|
Current portion of
acquisition related contingencies
|
—
|
|
|
3,883
|
|
|
Current portion of
long-term debt
|
3,750
|
|
|
2,500
|
|
|
Deferred income
taxes—current
|
—
|
|
|
3
|
|
|
Income taxes
payable
|
4,661
|
|
|
1,205
|
|
|
Liabilities held for
sale
|
2,704
|
|
|
—
|
|
|
|
Total current
liabilities
|
118,244
|
|
|
119,749
|
|
Long-term
debt
|
100,500
|
|
|
108,000
|
|
Deferred income
taxes—non-current
|
13,618
|
|
|
15,478
|
|
Accrual for
unrecognized tax benefits
|
3,556
|
|
|
3,392
|
|
Other long-term
liabilities
|
2,931
|
|
|
2,830
|
|
|
|
Total
liabilities
|
238,849
|
|
|
249,449
|
|
Total stockholders'
equity
|
176,871
|
|
|
177,798
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
415,720
|
|
|
$
|
427,247
|
|
|
|
|
|
|
|
Supplemental Information and Non-GAAP
Reconciliations
On the pages that follow, the Company has provided certain
supplemental information that we believe will assist the reader in
assessing our business operations and performance, including
certain non-GAAP financial information and required reconciliations
to the most comparable GAAP measure. Certain non-GAAP financial
information and required reconciliations exclude Slashdot Media and
are used as an important measure of our estimates of financial
performance going forward. A statement of operations and
statement of cash flows for the three and six month periods ended
June 30, 2015 and 2014 and a balance sheet as of June 30,
2015 and December 31, 2014 are provided elsewhere in this
press release.
DHI GROUP,
INC.
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA
|
(Unaudited)
|
(dollars in thousands
except per customer data)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended June 30,
|
|
For the six
months
ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues by
Segment (GAAP Revenue)
|
|
|
|
|
|
|
|
Tech & Clearance
(1)
|
$
|
34,680
|
|
|
$
|
33,213
|
|
|
$
|
68,004
|
|
|
$
|
65,047
|
|
Finance
|
8,928
|
|
|
9,235
|
|
|
17,513
|
|
|
18,044
|
|
Energy
|
5,742
|
|
|
8,501
|
|
|
12,061
|
|
|
14,422
|
|
Healthcare
|
7,818
|
|
|
6,623
|
|
|
14,885
|
|
|
13,074
|
|
Hospitality
|
4,306
|
|
|
3,451
|
|
|
8,317
|
|
|
6,382
|
|
Corporate & Other
(1)
|
4,328
|
|
|
5,521
|
|
|
8,792
|
|
|
10,265
|
|
|
|
$
|
65,802
|
|
|
$
|
66,544
|
|
|
$
|
129,572
|
|
|
$
|
127,234
|
|
|
|
|
|
|
|
|
|
Add back fair
value adjustment to deferred revenue
|
|
|
|
|
|
|
|
Tech &
Clearance
|
$
|
—
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
262
|
|
Energy
|
—
|
|
|
331
|
|
|
—
|
|
|
457
|
|
Healthcare
|
—
|
|
|
273
|
|
|
—
|
|
|
686
|
|
Hospitality
|
—
|
|
|
339
|
|
|
—
|
|
|
863
|
|
|
|
$
|
—
|
|
|
$
|
1,026
|
|
|
$
|
—
|
|
|
$
|
2,268
|
|
Adjusted Revenues
by Segment
|
|
|
|
|
|
|
|
Tech &
Clearance
|
$
|
34,680
|
|
|
$
|
33,296
|
|
|
$
|
68,004
|
|
|
$
|
65,309
|
|
Finance
|
8,928
|
|
|
9,235
|
|
|
17,513
|
|
|
18,044
|
|
Energy
|
5,742
|
|
|
8,832
|
|
|
12,061
|
|
|
14,879
|
|
Healthcare
|
7,818
|
|
|
6,896
|
|
|
14,885
|
|
|
13,760
|
|
Hospitality
|
4,306
|
|
|
3,790
|
|
|
8,317
|
|
|
7,245
|
|
Corporate &
Other
|
4,328
|
|
|
5,521
|
|
|
8,792
|
|
|
10,265
|
|
|
|
$
|
65,802
|
|
|
$
|
67,570
|
|
|
$
|
129,572
|
|
|
$
|
129,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
Beginning of
period
|
7,800
|
|
|
8,000
|
|
|
7,800
|
|
|
8,100
|
|
End of
period
|
7,750
|
|
|
8,000
|
|
|
7,750
|
|
|
8,000
|
|
Average for the
period (2)
|
7,750
|
|
|
8,000
|
|
|
7,800
|
|
|
8,050
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (3)
|
$
|
1,084
|
|
|
$
|
1,036
|
|
|
$
|
1,080
|
|
|
$
|
1,029
|
|
DHI GROUP,
INC.
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the three
months
ended June 30,
|
|
For the six
months
ended June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
|
5,678
|
|
|
$
|
7,208
|
|
|
$
|
10,770
|
|
|
$
|
11,603
|
|
|
Interest
expense
|
833
|
|
|
1,055
|
|
|
1,641
|
|
|
1,948
|
|
|
Income tax
expense
|
4,023
|
|
|
4,596
|
|
|
7,256
|
|
|
7,176
|
|
|
Depreciation
|
2,254
|
|
|
2,896
|
|
|
4,457
|
|
|
5,717
|
|
|
Amortization of
intangible assets
|
3,756
|
|
|
4,443
|
|
|
7,499
|
|
|
8,754
|
|
|
Change in acquisition
related contingencies
|
—
|
|
|
45
|
|
|
—
|
|
|
90
|
|
|
Non-cash stock
compensation expense
|
2,577
|
|
|
1,801
|
|
|
5,080
|
|
|
4,147
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
1,026
|
|
|
—
|
|
|
2,268
|
|
|
Other
|
(18)
|
|
|
129
|
|
|
9
|
|
|
137
|
|
Adjusted
EBITDA
|
$
|
19,103
|
|
|
$
|
23,199
|
|
|
$
|
36,712
|
|
|
$
|
41,840
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
17,869
|
|
|
$
|
21,345
|
|
|
$
|
36,989
|
|
|
$
|
33,365
|
|
|
Interest
expense
|
833
|
|
|
1,055
|
|
|
1,641
|
|
|
1,948
|
|
|
Amortization of
deferred financing costs
|
(105)
|
|
|
(93)
|
|
|
(209)
|
|
|
(185)
|
|
|
Income tax
expense
|
4,023
|
|
|
4,596
|
|
|
7,256
|
|
|
7,176
|
|
|
Deferred income
taxes
|
1,242
|
|
|
1,233
|
|
|
1,828
|
|
|
2,685
|
|
|
Change in accrual for
unrecognized tax benefits
|
(81)
|
|
|
(127)
|
|
|
(164)
|
|
|
(280)
|
|
|
Change in accounts
receivable
|
(2,502)
|
|
|
(5,338)
|
|
|
(4,829)
|
|
|
(1,195)
|
|
|
Change in deferred
revenue
|
3,398
|
|
|
2,659
|
|
|
(2,033)
|
|
|
(6,928)
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
1,026
|
|
|
—
|
|
|
2,268
|
|
|
Changes in working
capital and other
|
(5,574)
|
|
|
(3,157)
|
|
|
(3,767)
|
|
|
2,986
|
|
Adjusted
EBITDA
|
$
|
19,103
|
|
|
$
|
23,199
|
|
|
$
|
36,712
|
|
|
$
|
41,840
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (4)
|
29.0
|
%
|
|
34.3
|
%
|
|
28.3
|
%
|
|
32.3
|
%
|
|
|
|
|
|
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
17,869
|
|
|
$
|
21,345
|
|
|
$
|
36,989
|
|
|
$
|
33,365
|
|
Purchases of fixed
assets
|
(2,452)
|
|
|
(2,377)
|
|
|
(4,928)
|
|
|
(4,946)
|
|
Free Cash
Flow
|
$
|
15,417
|
|
|
$
|
18,968
|
|
|
$
|
32,061
|
|
|
$
|
28,419
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA (CONTINUED)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
For the three
months
ended June 30,
|
|
For the six months
ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Adjusted
Revenue
|
$
|
65,802
|
|
|
$
|
67,570
|
|
|
$
|
129,572
|
|
|
$
|
129,502
|
|
Less impact of
Slashdot Media
|
3,875
|
|
|
4,667
|
|
|
7,667
|
|
|
8,758
|
|
Adjusted Revenue,
excluding Slashdot Media
|
$
|
61,927
|
|
|
$
|
62,903
|
|
|
$
|
121,905
|
|
|
$
|
120,744
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
5,678
|
|
|
$
|
7,208
|
|
|
$
|
10,770
|
|
|
$
|
11,603
|
|
Less impact of
Slashdot Media
|
—
|
|
|
817
|
|
|
316
|
|
|
1,210
|
|
Net Income,
excluding Slashdot Media
|
$
|
5,678
|
|
|
$
|
6,391
|
|
|
$
|
10,454
|
|
|
$
|
10,393
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
19,103
|
|
|
$
|
23,199
|
|
|
$
|
36,712
|
|
|
$
|
41,840
|
|
Less impact of
Slashdot Media
|
153
|
|
|
1,663
|
|
|
852
|
|
|
2,645
|
|
Adjusted EBITDA,
excluding Slashdot Media
|
$
|
18,950
|
|
|
$
|
21,536
|
|
|
$
|
35,860
|
|
|
$
|
39,195
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin, excluding Slashdot Media (5)
|
30.6
|
%
|
|
34.2
|
%
|
|
29.4
|
%
|
|
32.5
|
%
|
|
|
Segment
Definitions:
|
|
|
|
|
|
|
|
Tech &
Clearance: Dice, ClearanceJobs, Dice Europe (formerly known as The
IT Job Board) and related career fairs
|
Finance:
eFinancialCareers
|
|
|
|
|
Energy: Rigzone,
OilCareers (from acquisition, March 2014 and integrated into the
Rigzone platform in March 2015) and related career
fairs
|
Healthcare: Health
eCareers and BioSpace
|
Hospitality:
Hcareers
|
Corporate &
Other: Corporate related costs, Slashdot Media and
WorkDigital
|
|
|
|
|
|
|
|
|
|
(1) The 2014
period reflects a reclassification of certain revenue from the Tech
& Clearance segment to the Corporate & Other
segment.
|
(2) Reflects
the daily average of recruitment package customers during the
period.
|
|
|
|
|
(3) Reflects
simple average of three months in each period.
|
|
|
|
|
(4) Adjusted
EBITDA margin is computed as Adjusted EBITDA divided by Adjusted
Revenues.
|
(5) Adjusted
EBITDA margin, excluding Slashdot Media, is computed as Adjusted
EBITDA, excluding Slashdot Media, divided by Adjusted Revenues,
excluding Slashdot Media.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dhi-group-inc-reports-second-quarter-2015-results-300119451.html
SOURCE DHI Group, Inc.