NEW YORK, Oct. 28, 2015
/PRNewswire/ --
- Total revenues of $65.1 million,
Adjusted EBITDA of $19.1 million and
net income of $6.5 million or
$0.12 per diluted share
- Excluding Slashdot Media, total revenues of $61.6 million, Adjusted EBITDA of $18.8 million and net income of $6.4 million
- Cash flow from operations of $12.4
million for Q3 2015 and $49.4
million for the first nine months, an increase of 4%
year-over-year
- Continued adoption of Open Web, with Dice's Open Web customer
count in the U.S. increasing 56% from year-end 2014 for annual
customers and reaching more than 1,000 total customers
DHI Group, Inc. (formerly known as Dice Holdings, Inc.) (NYSE:
DHX) (the "Company"), a leading provider of data, insights and
employment connections through our specialized services for
professional communities including technology and security
clearance, financial services, energy, healthcare and hospitality,
today reported financial results for the quarter ended
September 30, 2015.
"Our third quarter results reflect the progress we are making on
our path of innovation, integration and evolution, and we are
confident our approach is helping us expand our market opportunity
and strengthen our vertical leadership positioning," said
Michael Durney, President and Chief
Executive Officer. "As we continue to enhance our product
portfolio, we are seeing increased engagement with our customers,
who are looking to expand the ways in which they find and interact
with professionals. With a great deal of the integration and
positioning work related to our recent acquisitions now complete,
we are better positioned than ever before to leverage capabilities
across our business and drive growth long-term."
Q3 2015 Product and Business Highlights
New and Emerging Products
- Adoption of Open Web at Dice continues and the likely-to-switch
feature launched in July, which gives customers the ability to
narrow candidate searches based on the likelihood of candidates to
change professional position, has generated positive initial
feedback.
- Value-add Sourcing Concierge and Branding Products growth
provide an encouraging sign that the Company's evolving product
portfolio is beginning to gain greater traction.
- Launched Spotlight in the Company's Health eCareers service, a
new employer branding product suite with rich content and unique
features, such as employee-generated company reviews, that is
seeing strong early customer demand.
Q3 2015 Financial Highlights
The following summarizes consolidated financial results for the
quarters ended September 30, 2015 and
2014 ($ in millions, except per share data):
|
Q3
2015
|
|
Q3
2014
|
YoY %
Change
|
|
|
|
|
|
|
Revenues
|
$
|
65.1
|
|
|
$
|
67.6
|
|
(4)%
|
*
|
Operating
income
|
$
|
11.0
|
|
|
$
|
13.4
|
|
(18)%
|
|
Income before income
taxes
|
$
|
10.1
|
|
|
$
|
12.5
|
|
(19)%
|
|
Net
income
|
$
|
6.5
|
|
|
$
|
9.5
|
|
(32)%
|
|
Diluted earnings per
share
|
$
|
0.12
|
|
|
$
|
0.18
|
|
(33)%
|
|
Net cash provided by
operating activities
|
$
|
12.4
|
|
|
$
|
14.3
|
|
(13)%
|
|
|
|
|
|
|
Adjusted
Revenues
|
$
|
65.1
|
|
|
$
|
68.1
|
|
(4)%
|
|
Adjusted
EBITDA
|
$
|
19.1
|
|
|
$
|
22.4
|
|
(15)%
|
|
Adjusted EBITDA
margin
|
29.3%
|
|
|
32.9%
|
|
n.m.
|
|
|
|
|
|
|
Adjusted Revenues,
excluding Slashdot Media
|
$
|
61.6
|
|
|
$
|
63.3
|
|
(3)%
|
*
|
Adjusted EBITDA,
excluding Slashdot Media
|
$
|
18.8
|
|
|
$
|
21.0
|
|
(10)%
|
|
Adjusted EBITDA
margin, excluding Slashdot Media
|
30.4%
|
|
|
33.1%
|
|
n.m.
|
|
|
* Excluding the
negative impact of currency translation, revenues decreased 2%, and
Adjusted Revenues, excluding Slashdot Media decreased 1%,
year-over-year.
|
Q3 2015 Financial Highlights by Segment
"Our third quarter performance demonstrates the strength of our
diversified business model. We delivered improved constant
currency results in all of our core businesses with the exception
of Energy, which continues to be negatively impacted by lower oil
prices. At the same time, we generated solid free cash flow
while continuing to invest in innovation for future growth, further
reducing net debt and returning cash to shareholders. With a
strong foundation now in place, we believe we are well positioned
to drive improved financial performance beginning in 2016," said
John Roberts, Chief Financial
Officer.
The following summarizes segment Adjusted Revenues, Adjusted
EBITDA and Adjusted EBITDA Margin results for the quarters ended
September 30, 2015 and 2014 ($ in
millions):
|
Adjusted Revenues
by Segment
|
|
|
Adjusted EBITDA by
Segment
|
|
|
Q3 2015
|
|
Q3 2014
|
|
YoY %
Change
|
|
|
Q3 2015
|
|
Q3 2015
Margin
|
|
Q3 2014
|
|
Q3 2014
Margin
|
|
Tech &
Clearance
|
$
|
35.3
|
|
|
$
|
34.0
|
|
|
4%
|
|
|
$
|
16.2
|
|
|
46%
|
|
$
|
15.8
|
|
|
46%
|
|
Finance
|
9.3
|
|
|
9.4
|
|
|
(2)%
|
|
|
2.3
|
|
|
25%
|
|
2.2
|
|
|
23%
|
|
Energy
|
4.7
|
|
|
8.2
|
|
|
(42)%
|
|
|
0.9
|
|
|
19%
|
|
4.0
|
|
|
49%
|
|
Healthcare
|
7.9
|
|
|
7.1
|
|
|
11%
|
|
|
1.2
|
|
|
15%
|
|
0.6
|
|
|
8%
|
|
Hospitality
|
3.9
|
|
|
3.8
|
|
|
2%
|
|
|
1.7
|
|
|
44%
|
|
1.6
|
|
|
42%
|
|
Before Corporate
& Other
|
61.1
|
|
|
62.6
|
|
|
(2)%
|
|
|
22.4
|
|
|
37%
|
|
24.3
|
|
|
39%
|
|
Slashdot
Media
|
3.5
|
|
|
4.8
|
|
|
(26)%
|
|
|
0.3
|
|
|
9%
|
|
1.4
|
|
|
29%
|
|
Corporate &
Other
|
0.5
|
|
|
0.7
|
|
|
(29)%
|
|
|
(3.5)
|
|
|
n.m.
|
|
(3.3)
|
|
|
n.m.
|
|
Total Corporate &
Other
|
4.0
|
|
|
5.5
|
|
|
(27)%
|
|
|
(3.2)
|
|
|
n.m.
|
|
(1.9)
|
|
|
n.m.
|
|
Total
|
$
|
65.1
|
|
|
$
|
68.1
|
|
|
(4)%
|
|
|
$
|
19.1
|
|
|
29%
|
|
$
|
22.4
|
|
|
33%
|
|
Q3 2015 Primary Drivers of YoY % Change
- Adjusted Revenues growth in the Tech & Clearance segment
was driven by growth of 23% at ClearanceJobs and 17% at Dice
Europe.
- Finance segment revenues increased 6% in constant currency,
driven by increases of 10% in North
America, 10% in the Asia
Pacific region, 8% in the UK and 1% in Continental
Europe.
- The decline in Energy segment Adjusted Revenues reflects the
negative impact on recruitment and advertising activity from the
poor overall market in oil and gas.
- Adjusted Revenues growth in the Healthcare segment primarily
reflects an increase in usage of our services at Health eCareers
driven by increased engagement with customers.
Supplemental Information
($ in
millions)
|
September
30, 2015
|
|
December
31, 2014
|
|
September
30, 2014
|
|
YTD $
Change
|
|
YoY $
Change
|
Deferred revenue
(excluding Slashdot Media)
|
$
|
81.9
|
|
|
$
|
85.0
|
|
|
$
|
80.5
|
|
|
$
|
(3.1)
|
|
|
$
|
1.4
|
|
Slashdot Media
deferred revenue (1)
|
1.2
|
|
|
1.4
|
|
|
1.4
|
|
|
(0.2)
|
|
|
(0.2)
|
|
Total deferred
revenue
|
$
|
83.1
|
|
|
$
|
86.4
|
|
|
$
|
81.9
|
|
|
$
|
(3.3)
|
|
|
$
|
1.2
|
|
Net debt
|
$
|
67.7
|
|
|
$
|
83.7
|
|
|
$
|
86.1
|
|
|
$
|
(16.0)
|
|
|
$
|
(18.4)
|
|
(1)
Slashdot Media deferred revenue is included in liabilities held for
sale as of September 30, 2015 only.
|
Q3 2015 Primary Drivers of YoY % Change in Supplemental
Items
- The YTD decrease in deferred revenue (excluding Slashdot Media)
primarily reflects decreases in the Energy segment, partially
offset by increases in the Finance (10%) and Healthcare (12%)
segments.
- The YoY increase in deferred revenue (excluding Slashdot Media)
primarily reflects increases in the Tech & Clearance (6%) and
Finance (9%) segments, partially offset by a decrease in the Energy
segment.
Stock Repurchase Program
During the third quarter of 2015, the Company purchased
approximately 1.2 million shares of its common stock at an average
cost of $7.78 per share for a total
cost of approximately $9.3
million. At September 30,
2015, approximately $19.3
million remained authorized for repurchase under a
$50 million plan that expires in
December 2015.
Business Outlook
Given the planned divestiture of Slashdot Media and our
reporting of such business, we believe that, in order to provide
more meaningful estimates of our future financial performance, it
is more appropriate to discuss our estimated future financial
performance excluding Slashdot Media operations going forward.
Current Full-Year
2015 Business Outlook Excluding Slashdot Media
|
($ in millions,
except diluted earnings per share)
|
|
Q4
2015
|
FY
2015
|
|
|
|
|
Revenues excluding
Slashdot Media*
|
|
$61.5 -
$62.5
|
$245.0 -
$246.0
|
Estimated
Contribution by Segment
|
|
|
|
Tech &
Clearance
|
|
57%
|
56%
|
Finance
|
|
15%
|
15%
|
Energy
|
|
8%
|
8%
|
Healthcare
|
|
13%
|
13%
|
Hospitality
|
|
6%
|
7%
|
Corporate &
Other
|
|
1%
|
1%
|
Adjusted
EBITDA
|
|
$17.8 -
$18.8
|
$72.5 -
$73.5
|
Depreciation and
amortization
|
|
$5.4
|
$22.9
|
Non-cash stock
compensation expense
|
|
$2.5
|
$9.7
|
Interest expense,
net
|
|
$0.8
|
$3.3
|
Income
taxes
|
|
$3.6 -
$4.0
|
$14.2 -
$14.6
|
Net income
|
|
$5.5 -
$6.1
|
$22.4 -
$23.0
|
Diluted earnings per
share
|
|
$0.11 -
$0.12
|
$0.42 -
$0.43
|
Diluted share
count
|
|
52 million
|
53 million
|
* For the full-year
2015, the Company now estimates Slashdot Media will generate $14 -
$15 million in revenues. For Q4 2015, Slashdot Media is
expected to generate $3 - $4 million in revenues.
|
Estimated financial performance for 2015 reflects:
- Investments in new growth initiatives;
- Ongoing investments related to product development including
Open Web;
- Anticipated negative impact of currency fluctuations compared
to 2014; and
- Anticipated negative impact on the Company's Energy segment
from the significant decline in oil prices.
Conference Call Information
The Company will host a conference call to discuss third 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 10074148. The replay
will be available until November 5,
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
Rachel Ceccarelli
Director, Corporate Communications
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 data, insights and connections
through our specialized 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 expert
insights and relevant employment 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 the most timely news
and information about their respective areas of expertise. For 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 located
throughout North America,
Europe, the Middle East 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 due to our plans to divest of
Slashdot Media. 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 due to
our plans to divest of Slashdot Media.
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 due to
our plans to divest of Slashdot Media.
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 September 30,
|
|
For the nine
months
ended September 30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
65,138
|
|
|
$
|
67,615
|
|
|
$
|
194,710
|
|
|
$
|
194,849
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
9,765
|
|
|
9,418
|
|
|
29,255
|
|
|
27,803
|
|
Product
development
|
7,938
|
|
|
6,487
|
|
|
22,082
|
|
|
19,254
|
|
Sales and
marketing
|
19,779
|
|
|
20,746
|
|
|
60,984
|
|
|
60,032
|
|
General and
administrative
|
10,958
|
|
|
10,760
|
|
|
34,059
|
|
|
32,131
|
|
Depreciation
|
2,364
|
|
|
2,930
|
|
|
6,821
|
|
|
8,647
|
|
Amortization of
intangible assets
|
3,376
|
|
|
3,798
|
|
|
10,875
|
|
|
12,552
|
|
Change in acquisition
related contingencies
|
—
|
|
|
44
|
|
|
—
|
|
|
134
|
|
Total
operating expenses
|
54,180
|
|
|
54,183
|
|
|
164,076
|
|
|
160,553
|
|
Operating
income
|
10,958
|
|
|
13,432
|
|
|
30,634
|
|
|
34,296
|
|
Interest
expense
|
(831)
|
|
|
(927)
|
|
|
(2,472)
|
|
|
(2,875)
|
|
Other income
(expense)
|
7
|
|
|
8
|
|
|
(2)
|
|
|
(129)
|
|
Income before income
taxes
|
10,134
|
|
|
12,513
|
|
|
28,160
|
|
|
31,292
|
|
Income tax
expense
|
3,623
|
|
|
3,020
|
|
|
10,879
|
|
|
10,196
|
|
Net income
|
$
|
6,511
|
|
|
$
|
9,493
|
|
|
$
|
17,281
|
|
|
$
|
21,096
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.13
|
|
|
$
|
0.18
|
|
|
$
|
0.33
|
|
|
$
|
0.40
|
|
Diluted earnings per
share
|
$
|
0.12
|
|
|
$
|
0.18
|
|
|
$
|
0.33
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
51,228
|
|
|
52,089
|
|
|
51,792
|
|
|
52,486
|
|
Weighted average
diluted shares outstanding
|
52,230
|
|
|
54,106
|
|
|
53,056
|
|
|
54,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended September
30,
|
|
For the nine
months
ended September
30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,511
|
|
|
$
|
9,493
|
|
|
$
|
17,281
|
|
|
$
|
21,096
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
2,364
|
|
|
2,930
|
|
|
6,821
|
|
|
8,647
|
|
|
Amortization of
intangible assets
|
|
3,376
|
|
|
3,798
|
|
|
10,875
|
|
|
12,552
|
|
|
Deferred income
taxes
|
|
1,455
|
|
|
(1,632)
|
|
|
(373)
|
|
|
(4,317)
|
|
|
Amortization of
deferred financing costs
|
|
104
|
|
|
93
|
|
|
313
|
|
|
278
|
|
|
Stock based
compensation
|
|
2,410
|
|
|
1,739
|
|
|
7,490
|
|
|
5,886
|
|
|
Change in acquisition
related contingencies
|
|
—
|
|
|
44
|
|
|
—
|
|
|
134
|
|
|
Change in accrual for
unrecognized tax benefits
|
|
8
|
|
|
613
|
|
|
172
|
|
|
893
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(1,392)
|
|
|
(1,427)
|
|
|
3,437
|
|
|
(232)
|
|
|
Prepaid expenses and
other assets
|
|
474
|
|
|
1,726
|
|
|
1,601
|
|
|
(446)
|
|
|
Accounts payable and
accrued expenses
|
|
1,481
|
|
|
4,600
|
|
|
(2,332)
|
|
|
(16)
|
|
|
Income taxes
receivable/payable
|
|
(280)
|
|
|
(4,879)
|
|
|
6,050
|
|
|
(956)
|
|
|
Deferred
revenue
|
|
(4,165)
|
|
|
(3,347)
|
|
|
(2,132)
|
|
|
3,581
|
|
|
Other, net
|
|
34
|
|
|
528
|
|
|
166
|
|
|
544
|
|
Net cash flows from
operating activities
|
|
12,380
|
|
|
14,279
|
|
|
49,369
|
|
|
47,644
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Payments for
acquisitions, net of cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,001)
|
|
|
Purchases of fixed
assets
|
|
(1,782)
|
|
|
(1,838)
|
|
|
(6,710)
|
|
|
(6,784)
|
|
Net cash flows from
investing activities
|
|
(1,782)
|
|
|
(1,838)
|
|
|
(6,710)
|
|
|
(33,785)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
|
(7,625)
|
|
|
(9,625)
|
|
|
(28,875)
|
|
|
(23,875)
|
|
|
Proceeds from
long-term debt
|
|
5,000
|
|
|
6,000
|
|
|
20,000
|
|
|
18,000
|
|
|
Payments under stock
repurchase plan
|
|
(8,182)
|
|
|
(8,362)
|
|
|
(29,561)
|
|
|
(26,909)
|
|
|
Payment of
acquisition related contingencies
|
|
—
|
|
|
—
|
|
|
(3,829)
|
|
|
(824)
|
|
|
Proceeds from stock
option exercises
|
|
758
|
|
|
4,654
|
|
|
5,897
|
|
|
7,974
|
|
|
Purchase of treasury
stock related to vested restricted stock
|
|
(119)
|
|
|
(112)
|
|
|
(1,665)
|
|
|
(1,223)
|
|
|
Excess tax benefit
over book expense from stock based compensation
|
|
693
|
|
|
869
|
|
|
2,114
|
|
|
1,504
|
|
Net cash flows from
financing activities
|
|
(9,475)
|
|
|
(6,576)
|
|
|
(35,919)
|
|
|
(25,353)
|
|
Effect of exchange
rate changes
|
|
127
|
|
|
1,103
|
|
|
394
|
|
|
(839)
|
|
Net change in cash
and cash equivalents for the period
|
|
1,250
|
|
|
6,968
|
|
|
7,134
|
|
|
(12,333)
|
|
Cash and cash
equivalents, beginning of period
|
|
32,661
|
|
|
20,050
|
|
|
26,777
|
|
|
39,351
|
|
Cash and cash
equivalents, end of period
|
|
$
|
33,911
|
|
|
$
|
27,018
|
|
|
$
|
33,911
|
|
|
$
|
27,018
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
September 30,
2015
|
|
December 31,
2014
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
33,911
|
|
|
$
|
26,777
|
|
|
Accounts receivable,
net
|
40,567
|
|
|
49,048
|
|
|
Deferred income
taxes—current
|
3,163
|
|
|
3,373
|
|
|
Income taxes
receivable
|
1,068
|
|
|
3,973
|
|
|
Prepaid and other
current assets
|
3,308
|
|
|
4,764
|
|
|
Assets held for
sale
|
4,683
|
|
|
—
|
|
|
|
Total current
assets
|
86,700
|
|
|
87,935
|
|
Fixed assets,
net
|
15,495
|
|
|
16,066
|
|
Acquired intangible
assets, net
|
68,675
|
|
|
81,345
|
|
Goodwill
|
235,445
|
|
|
239,256
|
|
Deferred financing
costs, net
|
1,007
|
|
|
1,320
|
|
Deferred income
taxes—non-current
|
344
|
|
|
399
|
|
Other
assets
|
645
|
|
|
926
|
|
|
|
Total
assets
|
$
|
408,311
|
|
|
$
|
427,247
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
23,042
|
|
|
$
|
25,714
|
|
|
Deferred
revenue
|
81,872
|
|
|
86,444
|
|
|
Current portion of
acquisition related contingencies
|
—
|
|
|
3,883
|
|
|
Current portion of
long-term debt
|
4,375
|
|
|
2,500
|
|
|
Deferred income
taxes—current
|
—
|
|
|
3
|
|
|
Income taxes
payable
|
4,319
|
|
|
1,205
|
|
|
Liabilities held for
sale
|
2,379
|
|
|
—
|
|
|
|
Total current
liabilities
|
115,987
|
|
|
119,749
|
|
Long-term
debt
|
97,250
|
|
|
108,000
|
|
Deferred income
taxes—non-current
|
14,703
|
|
|
15,478
|
|
Accrual for
unrecognized tax benefits
|
3,564
|
|
|
3,392
|
|
Other long-term
liabilities
|
2,985
|
|
|
2,830
|
|
|
|
Total
liabilities
|
234,489
|
|
|
249,449
|
|
Total stockholders'
equity
|
173,822
|
|
|
177,798
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
408,311
|
|
|
$
|
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 measures. 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 nine month periods ended
September 30, 2015 and 2014 and a balance sheet as of
September 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 September 30,
|
|
For the nine
months
ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues by
Segment (GAAP Revenue)
|
|
|
|
|
|
|
|
Tech & Clearance
(1)
|
$
|
35,326
|
|
|
$
|
34,028
|
|
|
$
|
103,330
|
|
|
$
|
99,075
|
|
Finance
|
9,286
|
|
|
9,449
|
|
|
26,799
|
|
|
27,493
|
|
Energy
|
4,734
|
|
|
8,043
|
|
|
16,795
|
|
|
22,465
|
|
Healthcare
|
7,857
|
|
|
6,921
|
|
|
22,742
|
|
|
19,995
|
|
Hospitality
|
3,900
|
|
|
3,668
|
|
|
12,217
|
|
|
10,050
|
|
Corporate & Other
(1)
|
4,035
|
|
|
5,506
|
|
|
12,827
|
|
|
15,771
|
|
|
|
$
|
65,138
|
|
|
$
|
67,615
|
|
|
$
|
194,710
|
|
|
$
|
194,849
|
|
|
|
|
|
|
|
|
|
Add back fair
value adjustment to deferred revenue
|
|
|
|
|
|
|
|
Tech &
Clearance
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
262
|
|
Energy
|
—
|
|
|
160
|
|
|
—
|
|
|
617
|
|
Healthcare
|
—
|
|
|
153
|
|
|
—
|
|
|
839
|
|
Hospitality
|
—
|
|
|
164
|
|
|
—
|
|
|
1,027
|
|
|
|
$
|
—
|
|
|
$
|
477
|
|
|
$
|
—
|
|
|
$
|
2,745
|
|
Adjusted Revenues
by Segment
|
|
|
|
|
|
|
|
Tech &
Clearance
|
$
|
35,326
|
|
|
$
|
34,028
|
|
|
$
|
103,330
|
|
|
$
|
99,337
|
|
Finance
|
9,286
|
|
|
9,449
|
|
|
26,799
|
|
|
27,493
|
|
Energy
|
4,734
|
|
|
8,203
|
|
|
16,795
|
|
|
23,082
|
|
Healthcare
|
7,857
|
|
|
7,074
|
|
|
22,742
|
|
|
20,834
|
|
Hospitality
|
3,900
|
|
|
3,832
|
|
|
12,217
|
|
|
11,077
|
|
Corporate &
Other
|
4,035
|
|
|
5,506
|
|
|
12,827
|
|
|
15,771
|
|
|
|
$
|
65,138
|
|
|
$
|
68,092
|
|
|
$
|
194,710
|
|
|
$
|
197,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
Beginning of
period
|
7,750
|
|
|
8,000
|
|
|
7,800
|
|
|
8,100
|
|
End of
period
|
7,700
|
|
|
8,000
|
|
|
7,700
|
|
|
8,000
|
|
Average for the
period (2)
|
7,700
|
|
|
8,000
|
|
|
7,750
|
|
|
8,000
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (3)
|
$
|
1,101
|
|
|
$
|
1,047
|
|
|
$
|
1,087
|
|
|
$
|
1,035
|
|
DHI GROUP,
INC.
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
|
|
For the nine
months
ended September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
|
6,511
|
|
|
$
|
9,493
|
|
|
$
|
17,281
|
|
|
$
|
21,096
|
|
|
Interest
expense
|
831
|
|
|
927
|
|
|
2,472
|
|
|
2,875
|
|
|
Income tax
expense
|
3,623
|
|
|
3,020
|
|
|
10,879
|
|
|
10,196
|
|
|
Depreciation
|
2,364
|
|
|
2,930
|
|
|
6,821
|
|
|
8,647
|
|
|
Amortization of
intangible assets
|
3,376
|
|
|
3,798
|
|
|
10,875
|
|
|
12,552
|
|
|
Change in acquisition
related contingencies
|
—
|
|
|
44
|
|
|
—
|
|
|
134
|
|
|
Non-cash stock
compensation expense
|
2,410
|
|
|
1,739
|
|
|
7,490
|
|
|
5,886
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
477
|
|
|
—
|
|
|
2,745
|
|
|
Other
|
(7)
|
|
|
(8)
|
|
|
2
|
|
|
129
|
|
Adjusted
EBITDA
|
$
|
19,108
|
|
|
$
|
22,420
|
|
|
$
|
55,820
|
|
|
$
|
64,260
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
12,380
|
|
|
$
|
14,279
|
|
|
$
|
49,369
|
|
|
$
|
47,644
|
|
|
Interest
expense
|
831
|
|
|
927
|
|
|
2,472
|
|
|
2,875
|
|
|
Amortization of
deferred financing costs
|
(104)
|
|
|
(93)
|
|
|
(313)
|
|
|
(278)
|
|
|
Income tax
expense
|
3,623
|
|
|
3,020
|
|
|
10,879
|
|
|
10,196
|
|
|
Deferred income
taxes
|
(1,455)
|
|
|
1,632
|
|
|
373
|
|
|
4,317
|
|
|
Change in accrual for
unrecognized tax benefits
|
(8)
|
|
|
(613)
|
|
|
(172)
|
|
|
(893)
|
|
|
Change in accounts
receivable
|
1,392
|
|
|
1,427
|
|
|
(3,437)
|
|
|
232
|
|
|
Change in deferred
revenue
|
4,165
|
|
|
3,347
|
|
|
2,132
|
|
|
(3,581)
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
477
|
|
|
—
|
|
|
2,745
|
|
|
Changes in working
capital and other
|
(1,716)
|
|
|
(1,983)
|
|
|
(5,483)
|
|
|
1,003
|
|
Adjusted
EBITDA
|
$
|
19,108
|
|
|
$
|
22,420
|
|
|
$
|
55,820
|
|
|
$
|
64,260
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (4)
|
29.3
|
%
|
|
32.9
|
%
|
|
28.7
|
%
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
12,380
|
|
|
$
|
14,279
|
|
|
$
|
49,369
|
|
|
$
|
47,644
|
|
Purchases of fixed
assets
|
(1,782)
|
|
|
(1,838)
|
|
|
(6,710)
|
|
|
(6,784)
|
|
Free Cash
Flow
|
$
|
10,598
|
|
|
$
|
12,441
|
|
|
$
|
42,659
|
|
|
$
|
40,860
|
|
DHI GROUP,
INC.
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
|
|
For the nine
months
ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Adjusted
Revenues
|
$
|
65,138
|
|
|
$
|
68,092
|
|
|
$
|
194,710
|
|
|
$
|
197,594
|
|
Less impact of
Slashdot Media
|
3,506
|
|
|
4,751
|
|
|
11,173
|
|
|
13,509
|
|
Adjusted Revenues,
excluding Slashdot Media
|
$
|
61,632
|
|
|
$
|
63,341
|
|
|
$
|
183,537
|
|
|
$
|
184,085
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
6,511
|
|
|
$
|
9,493
|
|
|
$
|
17,281
|
|
|
$
|
21,096
|
|
Less impact of
Slashdot Media
|
118
|
|
|
675
|
|
|
431
|
|
|
1,885
|
|
Net Income,
excluding Slashdot Media
|
$
|
6,393
|
|
|
$
|
8,818
|
|
|
$
|
16,850
|
|
|
$
|
19,211
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
19,108
|
|
|
$
|
22,420
|
|
|
$
|
55,820
|
|
|
$
|
64,260
|
|
Less impact of
Slashdot Media
|
292
|
|
|
1,446
|
|
|
1,144
|
|
|
4,091
|
|
Adjusted EBITDA,
excluding Slashdot Media
|
$
|
18,766
|
|
|
$
|
20,974
|
|
|
$
|
54,676
|
|
|
$
|
60,169
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin, excluding Slashdot Media (5)
|
30.4
|
%
|
|
33.1
|
%
|
|
29.8
|
%
|
|
32.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
the simple average of each period presented.
|
|
|
|
|
(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-third-quarter-2015-results-300167627.html
SOURCE DHI Group, Inc.