NEW YORK, Feb. 3, 2016
/PRNewswire/ --
- Total revenues of $65.1 million
and Adjusted EBITDA of $18.7 million
in Q4 2015
- Excluding Slashdot Media, total revenues of $61.4 million and Adjusted EBITDA of $18.2 million
- Cash flow from operations of $11.4
million for Q4 2015 and $60.8
million for the full year 2015
- Net loss of $28.2 million or
$0.56 per diluted share in Q4
2015
- Growth in Adjusted Revenues and improvement in Adjusted EBITDA
Margin in each of our core segments except Energy during Q4
2015
- Further decline in the Energy business leads the Company to
record a non-cash impairment charge of $34.8
million or $0.68 per diluted
share related to partial write-down of Energy segment goodwill in
Q4 2015
DHI Group, Inc. (formerly known as Dice Holdings, Inc.) (NYSE:
DHX) ("DHI" or the "Company"), a leading provider of data, insights
and employment connections through our specialized services for
professional communities including technology and security
clearance, financial services, energy, healthcare and hospitality,
today reported financial results for the quarter and year ended
December 31, 2015.
"2015 was a year in which we set the stage for the Company's
next iteration. We brought new products to market, organized
ourselves to gain efficiencies, and today, offer new services and
have deeper relationships with our customers," said Michael Durney, President and Chief Executive
Officer. "As we look to 2016, we remain focused on our path of
innovation. We have exciting new products in the pipeline
that will further expand our market opportunity across all of our
brands and beyond, as customers continue to look to new tools to
help find and engage with professionals. Our organization
structure is in place, and we are well-positioned to leverage
capabilities across the organization and build upon our already
strong foundation."
Q4 2015 Product and Business Highlights
New and Emerging Products
- Adoption of Open Web at Dice continues, with Dice's Open Web
annual customer count in the U.S. increasing 67% from year-end
2014.
- The Spotlight employer branding product suite that was launched
in the Company's Health eCareers service during the third quarter
has shown initial strength.
- The Company's recently-formed division, BrightMatter Group
("BMG"), will focus on new initiatives including a number of
next-generation recruitment products and services that will be
applicable across the Company's brands.
Q4 2015 Financial Highlights
The following summarizes consolidated financial results for the
quarters ended December 31, 2015 and 2014 ($ in millions,
except per share data):
|
Q4
2015
|
Q4
2014
|
YoY %
Change
|
|
Revenues
|
$
|
65.1
|
|
$
|
67.8
|
|
(4)%
|
|
(1)
|
Operating income
(loss)
|
$
|
(24.3)
|
|
$
|
12.3
|
|
n.m.
|
|
(2)
|
Income (loss) before
income taxes
|
$
|
(25.1)
|
|
$
|
11.6
|
|
n.m.
|
|
(2)
|
Net income
(loss)
|
$
|
(28.2)
|
|
$
|
6.5
|
|
n.m.
|
|
(2)
|
Diluted earnings
(loss) per share
|
$
|
(0.56)
|
|
$
|
0.12
|
|
n.m.
|
|
(2)
|
Net cash provided by
operating activities
|
$
|
11.4
|
|
$
|
7.9
|
|
44
|
%
|
|
|
|
|
|
|
Adjusted
Revenues
|
$
|
65.1
|
|
$
|
67.9
|
|
(4)
|
%
|
|
Adjusted
EBITDA
|
$
|
18.7
|
|
$
|
20.1
|
|
(7)
|
%
|
|
Adjusted EBITDA
margin
|
28.8
|
%
|
29.6
|
%
|
|
|
|
|
|
|
|
Adjusted Revenues,
excluding Slashdot Media
|
$
|
61.4
|
|
$
|
63.2
|
|
(3)
|
%
|
(1)
|
Adjusted EBITDA,
excluding Slashdot Media
|
$
|
18.2
|
|
$
|
18.8
|
|
(3)
|
%
|
|
Adjusted EBITDA
margin, excluding Slashdot Media
|
29.7
|
%
|
29.7
|
%
|
|
|
(1)
Excluding the negative impact of currency translation, revenues
decreased 3%. Adjusted Revenues, excluding Slashdot Media,
decreased 1% year-over-year on a constant-currency
basis.
|
(2) Q4
2015 includes a non-cash impairment charge of approximately $34.8
million, or $0.68 per diluted share related to the partial
write-down of Energy segment goodwill. Excluding this charge,
net income for Q4 2015 totaled $6.0 million or $0.12 per diluted
share.
|
|
Q4 2015 Financial Highlights by Segment
"Even though our Energy business has been severely impacted by
lower oil prices and volatile market conditions, we achieved
further improvement in our overall financial performance during the
fourth quarter highlighted by growth in Adjusted Revenues and
improvement in Adjusted EBITDA Margin in all of our other core
segments. Free cash flow also remained strong, even while
continuing to invest in innovation for future growth, enabling us
to return cash to shareholders. With a strong foundation in
place entering 2016, we are confident in our ability to build upon
our results and further enhance shareholder value longer term,"
said John Roberts, Chief Financial
Officer.
The following summarizes segment Adjusted Revenues, Adjusted
EBITDA and Adjusted EBITDA Margin results for the quarters ended
December 31, 2015 and 2014 ($ in millions):
|
Adjusted Revenues
by Segment
|
|
Adjusted EBITDA by
Segment
|
|
|
Q4
2015
|
|
Q4
2014
|
|
YoY %
Change
|
|
|
Q4
2015
|
|
Q4 2015
Margin
|
|
Q4
2014
|
|
Q4 2014
Margin
|
|
Tech &
Clearance
|
$
|
35.2
|
|
|
$
|
34.5
|
|
|
2
|
%
|
|
$
|
16.4
|
|
|
47
|
%
|
|
$
|
15.0
|
|
|
43
|
%
|
|
Finance
|
9.6
|
|
|
9.2
|
|
|
5
|
%
|
|
2.5
|
|
|
26
|
%
|
|
1.8
|
|
|
20
|
%
|
|
Energy
|
4.2
|
|
|
8.1
|
|
|
(48)
|
%
|
|
0.8
|
|
|
19
|
%
|
|
3.4
|
|
|
42
|
%
|
|
Healthcare
|
8.0
|
|
|
6.9
|
|
|
16
|
%
|
|
0.9
|
|
|
11
|
%
|
|
0.2
|
|
|
3
|
%
|
|
Hospitality
|
3.7
|
|
|
3.6
|
|
|
3
|
%
|
|
1.7
|
|
|
46
|
%
|
|
1.3
|
|
|
36
|
%
|
|
Before Corporate
& Other
|
60.8
|
|
|
62.4
|
|
|
(3)
|
%
|
|
22.3
|
|
|
37
|
%
|
|
21.7
|
|
|
35
|
%
|
|
BrightMatter
Group
|
0.6
|
|
|
0.8
|
|
|
(25)
|
%
|
|
(1.4)
|
|
|
n.m.
|
|
|
(0.1)
|
|
|
n.m.
|
|
|
Corporate
|
-
|
|
|
-
|
|
|
-
|
|
|
(2.6)
|
|
|
n.m.
|
|
|
(2.7)
|
|
|
n.m.
|
|
|
Slashdot
Media
|
3.6
|
|
|
4.7
|
|
|
(23)
|
%
|
|
0.5
|
|
|
14
|
%
|
|
1.3
|
|
|
28
|
%
|
|
Total Corporate
& Other
|
4.2
|
|
|
5.6
|
|
|
(25)
|
%
|
|
(3.5)
|
|
|
n.m.
|
|
|
(1.6)
|
|
|
n.m.
|
|
|
Total
|
$
|
65.1
|
|
|
$
|
67.9
|
|
|
(4)
|
%
|
|
$
|
18.7
|
|
|
29
|
%
|
|
$
|
20.1
|
|
|
30
|
%
|
|
|
Q4 2015 Primary Drivers of YoY % Change
- Revenue growth in the Tech & Clearance segment was driven
by growth of 17% at ClearanceJobs and 6% at Dice Europe.
- Finance segment revenues increased 10% in constant currency,
driven by increases of 8% in North
America, 19% in the Asia
Pacific region and 13% in the UK.
- 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)
|
December 31,
2015
|
|
December 31,
2014
|
|
YoY $
Change
|
|
Deferred revenue
(excluding Slashdot Media)
|
$
|
83.3
|
|
|
$
|
85.0
|
|
|
$
|
(1.7)
|
|
|
Slashdot Media
deferred revenue (3)
|
1.0
|
|
|
1.4
|
|
|
(0.4)
|
|
|
Total deferred
revenue
|
$
|
84.3
|
|
|
$
|
86.4
|
|
|
$
|
(2.1)
|
|
|
Net debt
|
$
|
67.0
|
|
|
$
|
83.7
|
|
|
$
|
(16.7)
|
|
|
(3)
Slashdot Media deferred revenue is included in liabilities held for
sale as of December 31, 2015 only.
|
|
Q4 2015 Primary Drivers of YoY $ Change in Supplemental
Items
- The YoY decrease in deferred revenue (excluding Slashdot Media)
primarily reflects a decrease in the Energy segment of $4.7 million, partially offset by increases in
the Tech & Clearance, Finance and Healthcare segments.
Stock Repurchase Program
During the fourth quarter of 2015, the Company purchased
approximately 1.0 million shares of its common stock at an average
cost of $8.41 per share for a total
cost of approximately $8.4
million. At December 31, 2015, approximately
$47.6 million remained authorized for
repurchase under a $50 million plan
that expires in December 2016.
Organizational Changes Position the Company for Next Phase of
Growth
Effective January 1, 2016, the
Company formally shifted some leadership responsibilities to more
effectively leverage capabilities across the organization and
optimize the organization for future growth. This entailed
combining four of its global brands (eFinancialCareers, Rigzone,
Hcareers and BioSpace) to report to one leader under a global
industry brands group. Management believes this new structure
will allow the Company to leverage its organizational capabilities
across all of its brands, including enabling certain brands that
currently operate only in North
America, Hcareers and BioSpace, to realize international
opportunities more quickly.
During the fourth quarter, the Company combined several new
product and service initiatives into one organization called
BrightMatter group. This group will pursue new initiatives
that not only provide value to the Company's core talent
acquisition brands, but also expand DHI's market opportunity.
Business Outlook
Current Q1 2016
and Full-Year 2016 Business Outlook
|
($ in millions,
except diluted earnings per share)
|
Q1
2016
|
FY
2016
|
|
|
|
Revenues
|
$57.0 -
$58.5
|
$241.0 -
$250.0
|
|
|
|
Talent acquisition
brands Adjusted EBITDA (4)
|
$18.5 -
$19.5
|
$87.0 -
$92.0
|
Corporate
expenses
|
$2.8 -
$3.0
|
$12.0 -
$12.5
|
Talent acquisition
brands Adjusted EBITDA less corporate expenses
(4)
|
$15.5 -
$16.5
|
$75.0 -
$80.0
|
|
|
|
BrightMatter Group
Adjusted EBITDA
|
($1.5) -
($2.0)
|
($7.0) -
($8.0)
|
Total Adjusted
EBITDA
|
$14.0 -
$15.0
|
$68.0 -
$73.0
|
|
|
|
Depreciation and
amortization
|
$4.6 -
$4.8
|
$16.0 -
$16.5
|
Non-cash stock
compensation expense
|
$2.7 -
$2.8
|
$11.0 -
$11.5
|
Interest expense,
net
|
$0.7 -
$0.8
|
$2.9 -
$3.3
|
Income tax
rate
|
39% - 41%
|
39% - 41%
|
Net income
|
$3.4 -
$3.8
|
$23.0 -
$24.5
|
Diluted earnings per
share
|
$0.07 -
$0.08
|
$0.45 -
$0.48
|
Diluted share
count
|
51 million
|
51 million
|
|
|
|
Estimated revenue
growth by segment (in US dollars):
|
|
|
Tech &
Clearance
|
0% - 2%
|
0% - 3%
|
Finance
|
(1%) - 1%
|
(1%) - 2%
|
Energy
|
(50%) -
(46%)
|
(38%) -
(33%)
|
Healthcare
|
8% - 10%
|
10% - 18%
|
Hospitality
|
(6%) -
(4%)
|
7% - 9%
|
(4) Talent
acquisition brands includes the Company's Dice, eFinancialCareers,
Health eCareers, Hcareers, Rigzone, ClearanceJobs and BioSpace
brands.
|
|
Estimated financial performance for 2016 reflects:
- Expectation for negative impact to Revenues from currency
fluctuations of roughly $0.5 million
in Q1 2016 and $2.0 million for FY
2016 relative to the same periods in the prior year, which
primarily is reflected in the Finance segment.
- Excludes any severance or other costs related to the Company's
sale of Slashdot Media and/or the organizational changes described
in the section above titled "Organizational Changes Position the
Company for Next Phase of Growth."
Conference Call Information
The Company will host a conference call to discuss fourth
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 10078559. The replay
will be available until February 11,
2016.
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 Income excluding
impairment charge, Diluted earnings per share excluding impairment
charge, 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 given our sale 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 given our sale 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 given our sale of
Slashdot Media.
Net Income Excluding Impairment Charge
Net Income excluding impairment charge is a non-GAAP metric used
by management to measure operating performance. Net Income
excluding impairment charge is defined as Net Income less
impairment charge, net of income taxes. We consider Net Income
excluding impairment charge to be an important measure of our
financial performance.
Diluted Earnings per Share Excluding Impairment
Charge
Diluted earnings per share excluding impairment charge is a
non-GAAP metric used by management to measure operating
performance. Diluted earnings per share excluding impairment charge
is defined as diluted earnings (loss) per share less impact per
share of impairment charge. We consider diluted earnings per share
excluding impairment charge to be an important measure of our
financial performance.
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 less total debt. Net Debt is defined
as total debt less cash. 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
December 31,
|
|
For the year
ended
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
65,059
|
|
|
$
|
67,766
|
|
|
$
|
259,769
|
|
|
$
|
262,615
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
9,892
|
|
|
9,409
|
|
|
39,147
|
|
|
37,212
|
|
Product
development
|
7,781
|
|
|
6,833
|
|
|
29,863
|
|
|
26,087
|
|
Sales and
marketing
|
20,771
|
|
|
23,267
|
|
|
81,755
|
|
|
83,299
|
|
General and
administrative
|
10,580
|
|
|
9,928
|
|
|
44,639
|
|
|
42,059
|
|
Depreciation
|
2,477
|
|
|
2,297
|
|
|
9,298
|
|
|
10,944
|
|
Amortization of
intangible assets
|
3,019
|
|
|
3,705
|
|
|
13,894
|
|
|
16,257
|
|
Impairment of
goodwill
|
34,818
|
|
|
—
|
|
|
34,818
|
|
|
—
|
|
Change in acquisition
related contingencies
|
—
|
|
|
19
|
|
|
—
|
|
|
153
|
|
|
Total operating
expenses
|
89,338
|
|
|
55,458
|
|
|
253,414
|
|
|
216,011
|
|
Operating income
(loss)
|
(24,279)
|
|
|
12,308
|
|
|
6,355
|
|
|
46,604
|
|
Interest
expense
|
(817)
|
|
|
(869)
|
|
|
(3,289)
|
|
|
(3,744)
|
|
Other income
(expense)
|
(23)
|
|
|
118
|
|
|
(25)
|
|
|
(11)
|
|
Income (loss) before
income taxes
|
(25,119)
|
|
|
11,557
|
|
|
3,041
|
|
|
42,849
|
|
Income tax
expense
|
3,130
|
|
|
5,041
|
|
|
14,009
|
|
|
15,237
|
|
Net income
(loss)
|
$
|
(28,249)
|
|
|
$
|
6,516
|
|
|
$
|
(10,968)
|
|
|
$
|
27,612
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
(0.56)
|
|
|
$
|
0.13
|
|
|
$
|
(0.21)
|
|
|
$
|
0.53
|
|
Diluted earnings
(loss) per share
|
$
|
(0.56)
|
|
|
$
|
0.12
|
|
|
$
|
(0.21)
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
50,201
|
|
|
51,857
|
|
|
51,402
|
|
|
52,328
|
|
Weighted average
diluted shares outstanding
|
50,201
|
|
|
53,963
|
|
|
51,402
|
|
|
54,410
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
December 31,
|
|
For the year
ended
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(28,249)
|
|
|
$
|
6,516
|
|
|
$
|
(10,968)
|
|
|
$
|
27,612
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
2,477
|
|
|
2,297
|
|
|
9,298
|
|
|
10,944
|
|
|
Amortization of
intangible assets
|
|
3,019
|
|
|
3,705
|
|
|
13,894
|
|
|
16,257
|
|
|
Deferred income
taxes
|
|
(616)
|
|
|
619
|
|
|
(989)
|
|
|
(3,698)
|
|
|
Amortization of
deferred financing costs
|
|
89
|
|
|
86
|
|
|
402
|
|
|
365
|
|
|
Stock based
compensation
|
|
2,695
|
|
|
1,612
|
|
|
10,185
|
|
|
7,498
|
|
|
Change in acquisition
related contingencies
|
|
—
|
|
|
19
|
|
|
—
|
|
|
153
|
|
|
Impairment of
goodwill
|
|
34,818
|
|
|
—
|
|
|
34,818
|
|
|
—
|
|
|
Loss on disposal of
fixed assets
|
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
Change in accrual for
unrecognized tax benefits
|
|
(128)
|
|
|
(119)
|
|
|
44
|
|
|
774
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(5,577)
|
|
|
(9,477)
|
|
|
(2,140)
|
|
|
(9,709)
|
|
|
Prepaid expenses and
other assets
|
|
133
|
|
|
(696)
|
|
|
1,734
|
|
|
(1,142)
|
|
|
Accounts payable and
accrued expenses
|
|
1,278
|
|
|
(1,052)
|
|
|
(1,054)
|
|
|
(1,069)
|
|
|
Income taxes
receivable/payable
|
|
(144)
|
|
|
(670)
|
|
|
5,906
|
|
|
(1,626)
|
|
|
Deferred
revenue
|
|
1,561
|
|
|
5,186
|
|
|
(571)
|
|
|
8,767
|
|
|
Other, net
|
|
84
|
|
|
(149)
|
|
|
250
|
|
|
395
|
|
Net cash flows from
operating activities
|
|
11,440
|
|
|
7,899
|
|
|
60,809
|
|
|
55,543
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Payments for
acquisitions, net of cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,001)
|
|
|
Purchases of fixed
assets
|
|
(2,368)
|
|
|
(1,926)
|
|
|
(9,078)
|
|
|
(8,710)
|
|
Net cash flows from
investing activities
|
|
(2,368)
|
|
|
(1,926)
|
|
|
(9,078)
|
|
|
(35,711)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
|
(109,625)
|
|
|
(13,625)
|
|
|
(138,500)
|
|
|
(37,500)
|
|
|
Proceeds from
long-term debt
|
|
109,000
|
|
|
11,000
|
|
|
129,000
|
|
|
29,000
|
|
|
Payments under stock
repurchase plan
|
|
(8,651)
|
|
|
(6,098)
|
|
|
(38,212)
|
|
|
(33,007)
|
|
|
Payment of
acquisition related contingencies
|
|
—
|
|
|
(5,001)
|
|
|
(3,829)
|
|
|
(5,825)
|
|
|
Proceeds from stock
option exercises
|
|
1,113
|
|
|
6,139
|
|
|
7,010
|
|
|
14,113
|
|
|
Purchase of treasury
stock related to vested restricted stock
|
|
(170)
|
|
|
(96)
|
|
|
(1,835)
|
|
|
(1,319)
|
|
|
Excess tax benefit
over book expense from stock based compensation
|
|
236
|
|
|
1,621
|
|
|
2,350
|
|
|
3,125
|
|
|
Financing costs
paid
|
|
(646)
|
|
|
—
|
|
|
(646)
|
|
|
—
|
|
Net cash flows from
financing activities
|
|
(8,743)
|
|
|
(6,060)
|
|
|
(44,662)
|
|
|
(31,413)
|
|
Effect of exchange
rate changes
|
|
(190)
|
|
|
(154)
|
|
|
204
|
|
|
(993)
|
|
Net change in cash
for the period
|
|
139
|
|
|
(241)
|
|
|
7,273
|
|
|
(12,574)
|
|
Cash, beginning of
period
|
|
33,911
|
|
|
27,018
|
|
|
26,777
|
|
|
39,351
|
|
Cash, end of
period
|
|
$
|
34,050
|
|
|
$
|
26,777
|
|
|
$
|
34,050
|
|
|
$
|
26,777
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
December 31,
2015
|
|
December 31,
2014
|
Current
assets
|
|
|
|
|
Cash
|
$
|
34,050
|
|
|
$
|
26,777
|
|
|
Accounts receivable,
net
|
46,380
|
|
|
49,048
|
|
|
Income taxes
receivable
|
916
|
|
|
3,973
|
|
|
Prepaid and other
current assets
|
3,072
|
|
|
4,764
|
|
|
Assets held for
sale
|
4,265
|
|
|
—
|
|
|
|
Total current
assets
|
88,683
|
|
|
84,562
|
|
Fixed assets,
net
|
15,255
|
|
|
16,066
|
|
Acquired intangible
assets, net
|
65,292
|
|
|
81,345
|
|
Goodwill
|
198,598
|
|
|
239,256
|
|
Deferred financing
costs, net
|
1,564
|
|
|
1,320
|
|
Deferred income
taxes
|
322
|
|
|
481
|
|
Other
assets
|
785
|
|
|
926
|
|
|
|
Total
assets
|
$
|
370,499
|
|
|
$
|
423,956
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
23,883
|
|
|
$
|
25,714
|
|
|
Deferred
revenue
|
83,316
|
|
|
86,444
|
|
|
Current portion of
acquisition related contingencies
|
—
|
|
|
3,883
|
|
|
Current portion of
long-term debt
|
—
|
|
|
2,500
|
|
|
Income taxes
payable
|
4,006
|
|
|
1,205
|
|
|
Liabilities held for
sale
|
2,334
|
|
|
—
|
|
|
|
Total current
liabilities
|
113,539
|
|
|
119,746
|
|
Long-term
debt
|
101,000
|
|
|
108,000
|
|
Deferred income
taxes
|
10,849
|
|
|
12,190
|
|
Accrual for
unrecognized tax benefits
|
3,436
|
|
|
3,392
|
|
Other long-term
liabilities
|
3,062
|
|
|
2,830
|
|
|
|
Total
liabilities
|
231,886
|
|
|
246,158
|
|
Total stockholders'
equity
|
138,613
|
|
|
177,798
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
370,499
|
|
|
$
|
423,956
|
|
|
|
|
|
|
|
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. A statement of
operations and statement of cash flows for the three months and
years ended December 31, 2015 and 2014 and a balance sheet as
of December 31, 2015 and December 31, 2014 are provided
elsewhere in this press release. Supplemental schedules
provided include:
Adjusted EBITDA Reconciliation
A reconciliation of Adjusted EBITDA for the three months and
years ended December 31, 2015 and 2014 is provided. This
information provides the reader with the information we believe is
necessary to analyze the Company.
Non-GAAP Supplemental Data
On this schedule, the Company provides certain non-GAAP
information as of and for the three months and years ended
December 31, 2015 and 2014 that we believe is useful to
understanding the business operations of the Company.
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA
|
(Unaudited)
|
(dollars in
thousands except per customer data)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended December 31,
|
|
For the year
ended
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues by
Segment (GAAP Revenue)
|
|
|
|
|
|
|
|
Tech & Clearance
(1)
|
$
|
35,223
|
|
|
$
|
34,534
|
|
|
$
|
138,553
|
|
|
$
|
133,609
|
|
Finance
|
9,609
|
|
|
9,168
|
|
|
36,408
|
|
|
36,661
|
|
Energy
|
4,241
|
|
|
7,984
|
|
|
21,036
|
|
|
30,449
|
|
Healthcare
|
8,020
|
|
|
6,918
|
|
|
30,762
|
|
|
26,913
|
|
Hospitality
|
3,737
|
|
|
3,606
|
|
|
15,954
|
|
|
13,656
|
|
Corporate & Other
(1)
|
4,229
|
|
|
5,556
|
|
|
17,056
|
|
|
21,327
|
|
|
|
$
|
65,059
|
|
|
$
|
67,766
|
|
|
$
|
259,769
|
|
|
$
|
262,615
|
|
|
|
|
|
|
|
|
|
Add back fair
value adjustment to deferred revenue
|
|
|
|
|
|
|
|
Tech &
Clearance
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
262
|
|
Energy
|
—
|
|
|
111
|
|
|
—
|
|
|
728
|
|
Healthcare
|
—
|
|
|
16
|
|
|
—
|
|
|
855
|
|
Hospitality
|
—
|
|
|
15
|
|
|
—
|
|
|
1,042
|
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
2,887
|
|
Adjusted Revenues
by Segment
|
|
|
|
|
|
|
|
Tech &
Clearance
|
$
|
35,223
|
|
|
$
|
34,534
|
|
|
$
|
138,553
|
|
|
$
|
133,871
|
|
Finance
|
9,609
|
|
|
9,168
|
|
|
36,408
|
|
|
36,661
|
|
Energy
|
4,241
|
|
|
8,095
|
|
|
21,036
|
|
|
31,177
|
|
Healthcare
|
8,020
|
|
|
6,934
|
|
|
30,762
|
|
|
27,768
|
|
Hospitality
|
3,737
|
|
|
3,621
|
|
|
15,954
|
|
|
14,698
|
|
Corporate &
Other
|
4,229
|
|
|
5,556
|
|
|
17,056
|
|
|
21,327
|
|
|
|
$
|
65,059
|
|
|
$
|
67,908
|
|
|
$
|
259,769
|
|
|
$
|
265,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
Beginning of
period
|
7,700
|
|
|
8,000
|
|
|
7,800
|
|
|
8,100
|
|
End of
period
|
7,600
|
|
|
7,800
|
|
|
7,600
|
|
|
7,800
|
|
|
|
|
|
|
|
|
|
Average for the
period (2)
|
7,650
|
|
|
7,950
|
|
|
7,700
|
|
|
8,000
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (3)
|
$
|
1,115
|
|
|
$
|
1,070
|
|
|
$
|
1,094
|
|
|
$
|
1,044
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the three
months
ended December 31,
|
|
For the year
ended
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(28,249)
|
|
|
$
|
6,516
|
|
|
$
|
(10,968)
|
|
|
$
|
27,612
|
|
|
Interest
expense
|
817
|
|
|
869
|
|
|
3,289
|
|
|
3,744
|
|
|
Income tax
expense
|
3,130
|
|
|
5,041
|
|
|
14,009
|
|
|
15,237
|
|
|
Depreciation
|
2,477
|
|
|
2,297
|
|
|
9,298
|
|
|
10,944
|
|
|
Amortization of
intangible assets
|
3,019
|
|
|
3,705
|
|
|
13,894
|
|
|
16,257
|
|
|
Change in acquisition
related contingencies
|
—
|
|
|
19
|
|
|
—
|
|
|
153
|
|
|
Impairment of
goodwill
|
34,818
|
|
|
—
|
|
|
34,818
|
|
|
—
|
|
|
Non-cash stock
compensation expense
|
2,695
|
|
|
1,612
|
|
|
10,185
|
|
|
7,498
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
142
|
|
|
—
|
|
|
2,887
|
|
|
Other
|
23
|
|
|
(118)
|
|
|
25
|
|
|
11
|
|
Adjusted
EBITDA
|
$
|
18,730
|
|
|
$
|
20,083
|
|
|
$
|
74,550
|
|
|
$
|
84,343
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
11,440
|
|
|
$
|
7,899
|
|
|
$
|
60,809
|
|
|
$
|
55,543
|
|
|
Interest
expense
|
817
|
|
|
869
|
|
|
3,289
|
|
|
3,744
|
|
|
Amortization of
deferred financing costs
|
(89)
|
|
|
(86)
|
|
|
(402)
|
|
|
(365)
|
|
|
Income tax
expense
|
3,130
|
|
|
5,041
|
|
|
14,009
|
|
|
15,237
|
|
|
Deferred income
taxes
|
616
|
|
|
(619)
|
|
|
989
|
|
|
3,698
|
|
|
Change in accrual for
unrecognized tax benefits
|
128
|
|
|
119
|
|
|
(44)
|
|
|
(774)
|
|
|
Change in accounts
receivable
|
5,577
|
|
|
9,477
|
|
|
2,140
|
|
|
9,709
|
|
|
Change in deferred
revenue
|
(1,561)
|
|
|
(5,186)
|
|
|
571
|
|
|
(8,767)
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
142
|
|
|
—
|
|
|
2,887
|
|
|
Changes in working
capital and other
|
(1,328)
|
|
|
2,427
|
|
|
(6,811)
|
|
|
3,431
|
|
Adjusted
EBITDA
|
$
|
18,730
|
|
|
$
|
20,083
|
|
|
$
|
74,550
|
|
|
$
|
84,343
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin (4)
|
28.8
|
%
|
|
29.6
|
%
|
|
28.7
|
%
|
|
31.8
|
%
|
|
|
|
|
|
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
11,440
|
|
|
$
|
7,899
|
|
|
$
|
60,809
|
|
|
$
|
55,543
|
|
Purchases of fixed
assets
|
(2,368)
|
|
|
(1,926)
|
|
|
(9,078)
|
|
|
(8,710)
|
|
Free Cash
Flow
|
$
|
9,072
|
|
|
$
|
5,973
|
|
|
$
|
51,731
|
|
|
$
|
46,833
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
|
|
|
|
|
|
|
For the three
months
ended December 31,
|
|
For the year
ended
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Adjusted
Revenues
|
$
|
65,059
|
|
|
$
|
67,908
|
|
|
$
|
259,769
|
|
|
$
|
265,502
|
|
Less impact of
Slashdot Media
|
3,646
|
|
|
4,731
|
|
|
14,819
|
|
|
18,240
|
|
Adjusted Revenues,
excluding Slashdot Media
|
$
|
61,413
|
|
|
$
|
63,177
|
|
|
$
|
244,950
|
|
|
$
|
247,262
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
|
(28,249)
|
|
|
$
|
6,516
|
|
|
$
|
(10,968)
|
|
|
$
|
27,612
|
|
Less impact of
Slashdot Media
|
261
|
|
|
752
|
|
|
692
|
|
|
2,637
|
|
Net Income (loss),
excluding Slashdot Media
|
$
|
(28,510)
|
|
|
$
|
5,764
|
|
|
$
|
(11,660)
|
|
|
$
|
24,975
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
18,730
|
|
|
$
|
20,083
|
|
|
$
|
74,550
|
|
|
$
|
84,343
|
|
Less impact of
Slashdot Media
|
519
|
|
|
1,298
|
|
|
1,663
|
|
|
5,389
|
|
Adjusted EBITDA,
excluding Slashdot Media
|
$
|
18,211
|
|
|
$
|
18,785
|
|
|
$
|
72,887
|
|
|
$
|
78,954
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin, excluding Slashdot Media (5)
|
29.7
|
%
|
|
29.7
|
%
|
|
29.8
|
%
|
|
31.9
|
%
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
(28,249)
|
|
|
$
|
6,516
|
|
|
$
|
(10,968)
|
|
|
$
|
27,612
|
|
Less impact of
impairment charge, net of income taxes
|
34,246
|
|
|
—
|
|
|
34,246
|
|
|
—
|
|
Net Income,
excluding impairment charge
|
$
|
5,997
|
|
|
$
|
6,516
|
|
|
$
|
23,278
|
|
|
$
|
27,612
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
(Loss) per Share
|
$
|
(0.56)
|
|
|
$
|
0.12
|
|
|
$
|
(0.21)
|
|
|
$
|
0.51
|
|
Less impact per share
of impairment charge
|
0.68
|
|
|
—
|
|
|
0.67
|
|
|
—
|
|
Diluted Earnings
per Share, excluding impairment charge
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.46
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Definitions:
|
Tech &
Clearance: Dice, ClearanceJobs and Dice Europe (formerly known as
The IT Job Board)
|
Finance:
eFinancialCareers
|
Energy: Rigzone
and OilCareers (from acquisition, March 2014 and integrated into
the Rigzone platform in March 2015)
|
Healthcare: Health
eCareers and BioSpace
|
Hospitality:
Hcareers
|
Corporate &
Other: Corporate related costs, Slashdot Media, WorkDigital and
BrightMatter
|
|
|
|
|
|
|
|
|
|
(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-fourth-quarter-and-full-year-2015-results-300214222.html
SOURCE DHI Group, Inc.