NEW YORK, April 27, 2016
/PRNewswire/ --
- Sale of Slashdot Media business completed
- Total revenues of $58.3 million
and revenues, excluding Slashdot Media, of $57.5 million in Q1 2016
- Adjusted EBITDA of $12.9 million
and Adjusted EBITDA, excluding Slashdot Media and disposition
related and other costs, of $14.0
million
- Cash flow from operations of $12.4
million for Q1 2016
- Net income of $1.1 million or
$0.02 per diluted share and net
income, excluding Slashdot Media and disposition related and other
costs, of $3.4 million or
$0.07 per diluted share
- getTalent product launch initiated in March
DHI Group, Inc. (NYSE: DHX) ("DHI" or the "Company"), a leading
provider of data, insights and employment connections through our
specialized services for professional communities in technology and
security clearance, financial services, energy, healthcare and
hospitality, today reported financial results for the quarter ended
March 31, 2016.
"We continued to make progress against our strategic initiatives
in the first quarter, expanding our ability to deliver value to
professionals, employers and shareholders. The rollout of getTalent
was a significant milestone in the first quarter," said
Michael Durney, President and CEO of
DHI Group, Inc. "We face market challenges in some areas, notably
energy, but we continue to offer innovative products and valuable
resources to employers with talent acquisition and nurturing needs.
The realignment of four of our brands into the Global Industry
Group ("GIG") will leverage resources and allow us to execute more
effectively. Several of our brands have released improved products,
which will benefit our customers and the specialized communities we
serve."
Q1 2016 Product and Business Highlights
- Double-digit revenue and billings growth for both our
ClearanceJobs and Health eCareers brands, which was primarily
driven by favorable market conditions, increased usage and
engagement levels by customers.
- eFinancialCareers revenues increased 8% in constant currency,
driven by increases of 11% in the Asia-Pacific region, 9% in Continental Europe,
6% in the UK and 5% in North
America.
- Market uncertainty within the energy market continues to have a
negative impact on revenue and billings within the Rigzone
business, with customers continuing to pause or curb
recruitment.
- getTalent, the SaaS talent sourcing and talent relationship
management platform operating from the Brightmatter Group, launched
the 2.0 version of the platform.
- Dice launched the latest version of its mobile app, now called
Dice Careers, which provides tech professionals with tools to
manage their careers, including predictive analysis of their future
salary based on career goals and skill improvements.
- The Spotlight employer branding product available through the
Company's Health eCareers service continued to grow and add
customers in the first quarter.
Q1 2016 Financial Highlights
The following summarizes consolidated financial results for the
quarters ended March 31, 2016 and 2015 ($ in millions, except
per share data):
|
|
Q1
2016
|
|
Q1
2015
|
|
YoY %
Change
|
Revenues
|
|
$
|
58.3
|
|
|
$
|
63.8
|
|
|
(9)
|
%
|
Operating
income
|
|
$
|
2.6
|
|
|
$
|
9.2
|
|
|
(72)
|
%
|
Net
income
|
|
$
|
1.1
|
|
|
$
|
5.1
|
|
|
(78)
|
%
|
Diluted earnings per
share
|
|
$
|
0.02
|
|
|
$
|
0.09
|
|
|
(78)
|
%
|
Net cash provided by
operating activities
|
|
$
|
12.4
|
|
|
$
|
19.1
|
|
|
(35)
|
%
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
12.9
|
|
|
$
|
17.6
|
|
|
(27)
|
%
|
Adjusted EBITDA
margin (1)
|
|
22.1
|
%
|
|
27.6
|
%
|
|
|
|
|
|
|
|
|
|
Revenues,
excluding Slashdot Media
|
|
$
|
57.5
|
|
|
$
|
60.0
|
|
|
(4)
|
%
|
Adjusted EBITDA,
excluding Slashdot Media and disposition related and other
costs
|
|
$
|
14.0
|
|
|
$
|
16.9
|
|
|
(17)
|
%
|
Adjusted EBITDA
margin, excluding Slashdot Media and disposition related and other
costs
|
|
24.3
|
%
|
|
28.2
|
%
|
|
|
(1)
Adjusted EBITDA margin is computed as Adjusted EBITDA divided by
Revenues.
|
Q1 2016 Financial Highlights by Segment
Effective January 1, 2016, the
Company organized leadership responsibilities to leverage operating
capabilities more effectively across four of its brands which serve
specific industries, and to optimize these brands for future growth
by streamlining operations and development. This entailed
combining four of its global brands (eFinancialCareers, Rigzone,
Hcareers and BioSpace) to have one management structure under a
combined group called Global Industry Group. As a result, the
Company is now reporting three segments: Tech & Clearance, GIG,
and Healthcare.
Operating segments have been recast to reflect these changes in
the Company's organizational structure.
A financial supplement, including a recast of comparative
periods to reflect the changes in reporting segments, has been
provided in the Results and Reporting section at
http://www.dhigroupinc.com/investors/results-and-reporting/default.aspx.
The Company also completed the sale of its Slashdot and
SourceForge business (together referred to as "Slashdot Media") to
BIZX, LLC in a transaction that closed on January 27, 2016.
The following summarizes segment Revenues, Adjusted EBITDA and
Adjusted EBITDA Margin results for the quarters ended
March 31, 2016 and 2015 ($ in millions):
|
|
Revenues
|
|
|
Adjusted
EBITDA
|
|
|
Q1
2016
|
|
Q1
2015
|
|
YoY %
Change
|
|
|
Q1
2016
|
|
Q1 2016
Margin
|
|
Q1
2015
|
|
Q1 2015
Margin
|
Tech &
Clearance
|
|
$
|
34.0
|
|
|
$
|
33.9
|
|
|
—
|
%
|
|
$
|
15.1
|
|
|
44
|
%
|
|
$
|
15.5
|
|
|
46
|
%
|
Global Industry
Group
|
|
16.6
|
|
|
19.9
|
|
|
(17)
|
%
|
|
2.8
|
|
|
17
|
%
|
|
4.6
|
|
|
23
|
%
|
Healthcare
|
|
7.0
|
|
|
6.1
|
|
|
14
|
%
|
|
0.6
|
|
|
9
|
%
|
|
0.6
|
|
|
10
|
%
|
Talent Acquisition
Brands
|
|
57.5
|
|
|
59.9
|
|
|
(4)
|
%
|
|
18.5
|
|
|
32
|
%
|
|
20.7
|
|
|
35
|
%
|
Corporate
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
(3.5)
|
|
|
n.m.
|
|
|
(3.0)
|
|
|
n.m.
|
|
Talent Acquisition
Brands less Corporate
|
|
57.5
|
|
|
59.9
|
|
|
(4)
|
%
|
|
15.0
|
|
|
26
|
%
|
|
17.7
|
|
|
30
|
%
|
Brightmatter
Group
|
|
—
|
|
|
0.1
|
|
|
n.m.
|
|
|
(1.9)
|
|
|
n.m.
|
|
|
(0.7)
|
|
|
n.m.
|
|
Total Excluding
Slashdot Media
|
|
57.5
|
|
|
60.0
|
|
|
(4)
|
%
|
|
13.1
|
|
|
23
|
%
|
|
17.0
|
|
|
28
|
%
|
Slashdot
Media
|
|
0.7
|
|
|
3.8
|
|
|
(80)
|
%
|
|
(0.3)
|
|
|
(43)
|
%
|
|
0.7
|
|
|
18
|
%
|
Total
|
|
$
|
58.3
|
|
|
$
|
63.8
|
|
|
(9)
|
%
|
|
$
|
12.9
|
|
|
22
|
%
|
|
$
|
17.6
|
|
|
28
|
%
|
|
|
GIG Revenues by
Brand
|
|
|
|
Q1
2016
|
|
Q1
2015
|
|
YoY %
Change
|
|
eFinancialCareers
|
|
$
|
8.9
|
|
|
$
|
8.6
|
|
|
4
|
%
|
Rigzone
|
|
2.9
|
|
|
6.3
|
|
|
(54)
|
%
|
Hcareers
|
|
3.8
|
|
|
4.0
|
|
|
(5)
|
%
|
BioSpace
|
|
0.9
|
|
|
1.0
|
|
|
(2)
|
%
|
Global Industry
Group
|
|
$
|
16.6
|
|
|
$
|
19.9
|
|
|
(17)
|
%
|
"We continue to see signs of progress in our core talent
acquisition brands with strong revenue and billings performances in
our healthcare and security clearance businesses in the first
quarter. On a constant currency basis, Finance also delivered solid
financial results, in spite of recent trends indicating growing
volatility in several of our key markets," said John Roberts, CFO. "In our Tech & Clearance
segment, the average monthly recruitment package spend at Dice was
up year-over-year, indicating customers are increasing their levels
of service with Dice through products and services like Open Web.
Looking ahead, we plan to build on this quarter's successes, with
the help of some of our more recent strategic investments, as we
continue to return cash to shareholders by means of our consistent
free cash flow."
Supplemental Information
($ in
millions)
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
YTD $
Change
|
|
YoY $
Change
|
|
Deferred revenue
(excluding Slashdot Media)
|
|
$
|
88.8
|
|
|
$
|
83.3
|
|
|
$
|
89.3
|
|
|
$
|
5.5
|
|
|
$
|
(0.5)
|
|
|
Slashdot Media
deferred revenue (3)
|
|
—
|
|
|
1.0
|
|
|
1.5
|
|
|
(1.0)
|
|
|
(1.5)
|
|
|
Total deferred
revenue
|
|
$
|
88.8
|
|
|
$
|
84.3
|
|
|
$
|
90.8
|
|
|
$
|
4.5
|
|
|
$
|
(2.0)
|
|
|
Net debt
|
|
$
|
68.5
|
|
|
$
|
67.0
|
|
|
$
|
76.9
|
|
|
$
|
1.5
|
|
|
$
|
(8.4)
|
|
|
(3)
Slashdot Media deferred revenue is included in liabilities held for
sale as of December 31, 2015 only.
|
Q1 2016 Primary Drivers of YoY $ Change in Supplemental
Items
- The YoY decrease in deferred revenue (excluding Slashdot Media)
primarily reflects a decrease in the Global Industry Group segment
of $4.5 million, wholly attributable
to Rigzone, partially offset by increases in the Tech &
Clearance and Healthcare segments.
Stock Repurchase Program
During the first quarter of 2016, the Company purchased
approximately 1.6 million shares of its common stock at an average
cost of $8.21 per share for a total
cost of approximately $13.1
million. At March 31, 2016, approximately
$34.6 million remained authorized for
repurchase under a $50 million plan
that expires in December 2016.
Business Outlook
Current Q2 2016
and Full-Year 2016 Business Outlook
|
($ in millions,
except diluted earnings per share)
|
Q2
2016
|
FY
2016
|
|
|
|
Revenues
|
$57.5 -
$59.0
|
$240.0 -
$246.0
|
|
|
|
Talent acquisition
brands Adjusted EBITDA (4)
|
$19.5 -
$20.5
|
$86.0 -
$90.0
|
Corporate
expenses
|
$2.8 -
$3.0
|
$12.5 -
$13.0
|
Talent acquisition
brands Adjusted EBITDA less corporate expenses
(4)
|
$16.5 -
$17.5
|
$74.0 -
$78.0
|
|
|
|
Brightmatter Group
Adjusted EBITDA
|
($2.5) -
($3.0)
|
($8.0) -
($9.0)
|
Total Adjusted
EBITDA
|
$14.0 -
$15.0
|
$67.0 -
$72.0
|
|
|
|
Depreciation and
amortization
|
$4.6 -
$4.8
|
$17.0 -
$17.5
|
Non-cash stock
compensation expense
|
$2.4 -
$2.5
|
$10.0 -
$10.5
|
Interest expense,
net
|
$0.7 -
$0.8
|
$2.9 -
$3.3
|
Income tax
rate
|
37% - 39%
|
37% - 39%
|
Net income
|
$3.6 -
$4.0
|
$22.5 -
$24.0
|
Diluted earnings per
share
|
$0.07 -
$0.09
|
$0.44 -
$0.47
|
Diluted share
count
|
50 million
|
50 million
|
|
|
|
Estimated revenue
growth by segment (in US dollars):
|
|
|
Tech &
Clearance
|
0% - 2%
|
0% - 3%
|
Global Industry
Group:
|
|
|
eFinancialCareers
|
0% - 3%
|
0% - 3%
|
Rigzone
|
(50%) -
(46%)
|
(50%) -
(46%)
|
Hcareers
|
(1%) - 1%
|
7% - 9%
|
BioSpace
|
(30%) -
(20%)
|
(3%) - 2%
|
Healthcare
|
10% - 12%
|
10% - 15%
|
(4) Talent
acquisition brands includes the Company's Tech & Clearance,
Global Industry Group, and Healthcare segments
|
Estimated financial performance for 2016 reflects:
- Expectation for negative impact to Revenues from currency
fluctuations of roughly $0.6 million
in Q2 2016 and $2.1 million for FY
2016 relative to the same periods in the prior year, which
primarily is reflected in the Finance segment.
- Ongoing impact of depressed conditions in the Energy segment
hiring market, strategic business investments primarily in
Brightmatter Group, and slower pace of new product revenue
contributions in the Healthcare segment.
- For the full year, excludes Slashdot Media and disposition
related and other costs related to the Company's sale of Slashdot
Media and to the organizational changes described in the section
above titled "Q1 2016 Financial Highlights by Segment"
Conference Call Information
The Company will host a conference call to discuss first 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 10083471. The replay
will be available until May 5,
2016.
The call will also be webcast live from the Company's website at
www.dhigroupinc.com under the Investor Relations section.
Investor Contact
Courtney Chamberlain
Investor Relations/Public Relations Associate
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) 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 over 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 and
disposition related and other costs, Revenues excluding Slashdot
Media, Net Income excluding Slashdot Media and disposition related
and other costs, Free Cash Flow 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 and disposition
related and other costs
Adjusted EBITDA excluding Slashdot Media and disposition related
and other costs is a non-GAAP metric used by management to measure
operating performance. Management uses Adjusted EBITDA excluding
Slashdot Media and disposition related and other costs as a measure
of our financial performance given our sale of Slashdot Media and
disposition related and other costs. Adjusted EBITDA excluding
Slashdot Media and disposition related and other costs, represents
Adjusted EBITDA defined above, less Slashdot Media EBITDA and
disposition related and other costs.
Revenues Excluding Slashdot Media
Revenues excluding Slashdot Media is a non-GAAP metric used by
management to measure operating performance. Revenues
excluding Slashdot Media represents Revenues as defined above less
Slashdot Media revenue. We consider 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 and disposition related
and other costs
Net Income excluding Slashdot Media is a non-GAAP metric used by
management to measure operating performance. Net Income excluding
Slashdot Media and disposition related and other costs is defined
as Net Income less Slashdot Media Net Income (Loss) and disposition
related and other costs. We consider Net Income excluding Slashdot
Media and disposition related and other costs to be an important
measure of our financial performance given our sale of Slashdot
Media and disposition related and other costs.
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.
Diluted Earnings per Share Excluding Slashdot Media and
disposition related and other costs
Diluted earnings per share excluding Slashdot Media and
disposition related and other costs is a non-GAAP metric used by
management to measure operating performance. Diluted earnings per
share excluding Slashdot Media and disposition related and other
costs is defined as diluted earnings per share less impact per
share of Slashdot Media and disposition related and other costs. We
consider diluted earnings per share excluding Slashdot Media and
disposition related and other costs to be an important measure of
our financial performance.
Net Debt
Net Debt is defined as total principal outstanding less cash. We
consider Net Debt to be an important measure of liquidity and
indicator of our ability to meet ongoing obligations. We also
use Net Debt, among other measures, in evaluating our choices for
capital deployment. Net Debt presented herein is a non-GAAP
measure 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, 2015, 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 March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Revenues
|
$
|
58,286
|
|
|
$
|
63,770
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Cost of
revenues
|
8,535
|
|
|
9,625
|
|
Product
development
|
7,060
|
|
|
7,089
|
|
Sales and
marketing
|
20,502
|
|
|
20,678
|
|
General and
administrative
|
11,213
|
|
|
11,272
|
|
Depreciation
|
2,598
|
|
|
2,203
|
|
Amortization of
intangible assets
|
2,466
|
|
|
3,743
|
|
Disposition related
and other costs
|
3,270
|
|
|
—
|
|
|
|
Total operating
expenses
|
55,644
|
|
|
54,610
|
|
Operating
income
|
2,642
|
|
|
9,160
|
|
Interest
expense
|
(872)
|
|
|
(808)
|
|
Other
expense
|
(15)
|
|
|
(27)
|
|
Income before income
taxes
|
1,755
|
|
|
8,325
|
|
Income tax
expense
|
644
|
|
|
3,233
|
|
Net income
|
$
|
1,111
|
|
|
$
|
5,092
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.02
|
|
|
$
|
0.10
|
|
Diluted earnings per
share
|
$
|
0.02
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
49,451
|
|
|
52,267
|
|
Weighted average
diluted shares outstanding
|
50,460
|
|
|
54,292
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the three
months ended March 31,
|
|
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
1,111
|
|
|
$
|
5,092
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
Depreciation
|
2,598
|
|
|
2,203
|
|
|
Amortization of
intangible assets
|
2,466
|
|
|
3,743
|
|
|
Deferred income
taxes
|
(84)
|
|
|
(586)
|
|
|
Amortization of
deferred financing costs
|
81
|
|
|
104
|
|
|
Stock based
compensation
|
3,617
|
|
|
2,503
|
|
|
Change in accrual for
unrecognized tax benefits
|
14
|
|
|
83
|
|
|
Loss on sale of
business
|
562
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
2,367
|
|
|
2,327
|
|
|
Prepaid expenses and
other assets
|
(505)
|
|
|
(495)
|
|
|
Accounts payable and
accrued expenses
|
(2,104)
|
|
|
(4,164)
|
|
|
Income taxes
receivable/payable
|
(3,265)
|
|
|
2,923
|
|
|
Deferred
revenue
|
5,551
|
|
|
5,431
|
|
|
Other, net
|
(14)
|
|
|
(44)
|
|
Net cash flows from
operating activities
|
12,395
|
|
|
19,120
|
|
Cash flows from
investing activities:
|
|
|
|
|
Cash received for
sale of business
|
2,429
|
|
|
—
|
|
|
Purchases of fixed
assets
|
(2,319)
|
|
|
(2,476)
|
|
Net cash flows from
investing activities
|
110
|
|
|
(2,476)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payments on long-term
debt
|
(3,000)
|
|
|
(10,625)
|
|
|
Proceeds from
long-term debt
|
3,000
|
|
|
5,000
|
|
|
Payments under stock
repurchase plan
|
(13,717)
|
|
|
(8,716)
|
|
|
Payment of
acquisition related contingencies
|
—
|
|
|
(3,829)
|
|
|
Proceeds from stock
option exercises
|
1,028
|
|
|
3,287
|
|
|
Purchase of treasury
stock related to vested restricted stock and performance stock
units
|
(2,452)
|
|
|
(1,532)
|
|
|
Excess tax benefit
over book expense from stock based compensation
|
345
|
|
|
376
|
|
Net cash flows from
financing activities
|
(14,796)
|
|
|
(16,039)
|
|
Effect of exchange
rate changes
|
695
|
|
|
583
|
|
Net change in cash
for the period
|
(1,596)
|
|
|
1,188
|
|
Cash, beginning of
period
|
34,050
|
|
|
26,777
|
|
Cash, end of
period
|
$
|
32,454
|
|
|
$
|
27,965
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
March 31,
2016
|
|
December 31,
2015
|
Current
assets
|
|
|
|
|
Cash
|
$
|
32,454
|
|
|
$
|
34,050
|
|
|
Accounts receivable,
net
|
44,080
|
|
|
46,380
|
|
|
Income taxes
receivable
|
1,802
|
|
|
916
|
|
|
Prepaid and other
current assets
|
3,706
|
|
|
3,072
|
|
|
Assets held for
sale
|
—
|
|
|
4,265
|
|
|
|
Total current
assets
|
82,042
|
|
|
88,683
|
|
Fixed assets,
net
|
15,108
|
|
|
15,255
|
|
Acquired intangible
assets, net
|
62,756
|
|
|
65,292
|
|
Goodwill
|
196,486
|
|
|
198,598
|
|
Deferred income
taxes
|
307
|
|
|
322
|
|
Other
assets
|
649
|
|
|
785
|
|
|
|
Total
assets
|
$
|
357,348
|
|
|
$
|
368,935
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
22,274
|
|
|
$
|
23,883
|
|
|
Deferred
revenue
|
88,839
|
|
|
83,316
|
|
|
Income taxes
payable
|
1,672
|
|
|
4,006
|
|
|
Liabilities held for
sale
|
—
|
|
|
2,334
|
|
|
|
Total current
liabilities
|
112,785
|
|
|
113,539
|
|
Long-term debt,
net
|
99,517
|
|
|
99,436
|
|
Deferred income
taxes
|
10,929
|
|
|
10,849
|
|
Accrual for
unrecognized tax benefits
|
3,450
|
|
|
3,436
|
|
Other long-term
liabilities
|
3,048
|
|
|
3,062
|
|
|
|
Total
liabilities
|
229,729
|
|
|
230,322
|
|
Total stockholders'
equity
|
127,619
|
|
|
138,613
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
357,348
|
|
|
$
|
368,935
|
|
|
|
|
|
|
|
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 ended
March 31, 2016 and 2015 and a balance sheet as of
March 31, 2016 and December 31, 2015 are provided
elsewhere in this press release.
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA
|
(Unaudited)
|
(dollars in
thousands except per customer data)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended March 31,
|
|
|
2016
|
|
2015
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
Net income
|
$
|
1,111
|
|
|
$
|
5,092
|
|
|
Interest
expense
|
872
|
|
|
808
|
|
|
Income tax
expense
|
644
|
|
|
3,233
|
|
|
Depreciation
|
2,598
|
|
|
2,203
|
|
|
Amortization of
intangible assets
|
2,466
|
|
|
3,743
|
|
|
Non-cash stock
compensation expense
|
2,717
|
|
|
2,503
|
|
|
Severance—Slashdot
Media
|
981
|
|
|
—
|
|
|
Accelerated stock
based compensation expense—Slashdot Media
|
900
|
|
|
—
|
|
|
Loss on sale of
business
|
562
|
|
|
—
|
|
|
Other
|
15
|
|
|
27
|
|
Adjusted
EBITDA
|
$
|
12,866
|
|
|
$
|
17,609
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
Net cash provided by
operating activities
|
$
|
12,395
|
|
|
$
|
19,120
|
|
|
Interest
expense
|
872
|
|
|
808
|
|
|
Amortization of
deferred financing costs
|
(81)
|
|
|
(104)
|
|
|
Income tax
expense
|
644
|
|
|
3,233
|
|
|
Deferred income
taxes
|
84
|
|
|
586
|
|
|
Severance—Slashdot
Media
|
981
|
|
|
—
|
|
|
Change in accrual for
unrecognized tax benefits
|
(14)
|
|
|
(83)
|
|
|
Change in accounts
receivable
|
(2,367)
|
|
|
(2,327)
|
|
|
Change in deferred
revenue
|
(5,551)
|
|
|
(5,431)
|
|
|
Changes in working
capital and other
|
5,903
|
|
|
1,807
|
|
Adjusted
EBITDA
|
$
|
12,866
|
|
|
$
|
17,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
Net cash provided by
operating activities
|
$
|
12,395
|
|
|
$
|
19,120
|
|
Purchases of fixed
assets
|
(2,319)
|
|
|
(2,476)
|
|
Free Cash
Flow
|
$
|
10,076
|
|
|
$
|
16,644
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
Beginning of
period
|
7,600
|
|
|
7,800
|
|
End of
period
|
7,450
|
|
|
7,800
|
|
|
|
|
|
|
Average for the
period (1)
|
7,450
|
|
|
7,800
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (2)
|
$
|
1,118
|
|
|
$
|
1,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects
the daily average of recruitment package customers during the
period.
|
(2) Reflects
the simple average of each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
|
(Unaudited)
|
|
|
|
|
|
For the three
months ended March 31,
|
|
|
2016
|
|
2015
|
Revenues
|
$
|
58,286
|
|
|
$
|
63,770
|
|
Less Slashdot
Media
|
747
|
|
|
3,792
|
|
Revenues,
excluding Slashdot Media
|
$
|
57,539
|
|
|
$
|
59,978
|
|
|
|
|
|
|
Net
Income
|
$
|
1,111
|
|
|
$
|
5,092
|
|
Exclude Slashdot
Media net income (loss)
|
(1,740)
|
|
|
329
|
|
Add back severance
related to re-alignment, net of tax
|
521
|
|
|
—
|
|
Net Income,
excluding Slashdot Media and disposition related and other
costs
|
$
|
3,372
|
|
|
$
|
4,763
|
|
|
|
|
|
|
Diluted Earnings
per Share, excluding Slashdot Media and disposition related and
other costs
|
$
|
0.07
|
|
|
$
|
0.09
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,866
|
|
|
$
|
17,609
|
|
Exclude Slashdot
Media
|
(261)
|
|
|
699
|
|
Add back severance
related to re-alignment
|
827
|
|
|
—
|
|
Adjusted EBITDA,
excluding Slashdot Media and disposition related and other
costs
|
$
|
13,954
|
|
|
$
|
16,910
|
|
|
|
|
|
|
Adjusted EBITDA
Margin, excluding Slashdot Media and disposition related and other
costs (3)
|
24.3
|
%
|
|
28.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Definitions:
|
|
|
|
Tech &
Clearance: Dice, Dice Europe and ClearanceJobs
|
Global Industry
Group: eFinancialCareers, Rigzone, Hcareers and
BioSpace
|
Healthcare: Health
eCareers
|
Corporate &
Other: Corporate related costs, Slashdot Media and
Brightmatter
|
|
|
|
|
|
(3) Adjusted
EBITDA margin, excluding Slashdot Media and disposition related and
other costs, is computed as Adjusted EBITDA, excluding Slashdot
Media and disposition related and other costs, divided by Revenues,
excluding Slashdot Media.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dhi-group-inc-reports-first-quarter-2016-results-300258199.html
SOURCE DHI Group, Inc.