UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 13, 2015
IDT CORPORATION
(Exact name of registrant as specified in
its charter)
Delaware |
|
1-16371 |
|
22-3415036 |
(State or other jurisdiction of
incorporation) |
|
(Commission File Number) |
|
(IRS Employer
Identification No.) |
520 Broad Street Newark, New Jersey |
|
07102 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (973) 438-1000
Not Applicable
(Former name or former address, if changed
since last report.)
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial
Condition
On October 13, 2015,
IDT Corporation (the “Registrant”) posted an earnings release to the investor relations page of its website (www.idt.net)
announcing its results of operations for its fiscal quarter and fiscal year ended July 31, 2015. A copy of the earnings release
concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The Registrant is
furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated
by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed”
with the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing.
In addition, this Report and the press release contain statements intended as “forward-looking statements” that are
subject to the cautionary statements about forward-looking statements set forth in the press release.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. |
|
Document |
99.1 |
|
Earnings Release, October 13, 2015, reporting the results of operations for IDT Corporation’s fiscal quarter and fiscal year ended July 31, 2015. |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
|
IDT CORPORATION |
|
|
|
|
By: |
/s/ Shmuel Jonas |
|
Name: |
Shmuel Jonas |
|
Title: |
Chief Executive Officer |
Dated: October 13, 2015
EXHIBIT INDEX
Exhibit Number |
|
Document |
99.1 |
|
Earnings Release, October 13, 2015, reporting the results of operations for IDT Corporation’s fiscal quarter and fiscal year ended July 31, 2015. |
4
Exhibit 99.1
IDT
Corporation Reports Fourth Quarter and Full Year Fiscal 2015 Results
NEWARK,
NJ — October 13, 2015: IDT Corporation (NYSE: IDT) reported diluted earnings per share (EPS) of $0.05 and Non-GAAP diluted
EPS* of $0.25 on revenue of $405.8 million for the fourth quarter of its fiscal year 2015, the three months ended July 31, 2015.
For
FY 2015, IDT reported diluted EPS of $3.63 and Non-GAAP diluted EPS* of $1.27 on revenue of $1,596.8 million.
FOURTH
QUARTER AND FULL FISCAL YEAR 2015 HIGHLIGHTS
(Unless
otherwise noted, results for 4Q15 are compared to 4Q14, and results for FY 2015 are compared to FY 2014).
● |
4Q15
revenue was $405.8 million compared to $420.7 million in 4Q14. Fabrix, which was sold in 1Q15, contributed $5.9 million in
revenue in 4Q14. FY 2015 revenue was $1,596.8 million compared to $1,651.5 million in FY 2014. Fabrix’s revenue totaled
$4.2 million in FY 2015 and $16.6 million in FY 2014; |
● |
4Q15
SG&A expense decreased to $54.1 million from $58.3 million. FY 2015 SG&A expense decreased to $222.2 million from
$228.9 million; |
● |
4Q15
Adjusted EBITDA* increased to $12.4 million from $10.4 million. FY 2015 Adjusted EBITDA* decreased to $44.5 million from $45.3
million; |
● |
4Q15
income from operations increased to $7.2 million from $5.8 million. FY 2015 income from operations increased to $93.0 million,
including a gain of $76.9 million on the sale of IDT’s interest in Fabrix and $8.4 million non-routine severance expense,
from $29.8 million in FY 2014, including a non-routine gain of $0.8 million; |
● |
4Q15
net income attributable to IDT decreased to $1.3 million from $7.7 million. FY 2015 net income attributable to IDT increased
to $84.5 million from $18.8 million, including the gain of $76.9 million on the sale of IDT’s interest in Fabrix; |
● |
4Q15
diluted EPS decreased to $0.05 from $0.33. FY 2015 diluted EPS increased to $3.63 from $0.82; |
● |
4Q15
non-GAAP diluted EPS* decreased to $0.25 from $0.39. FY 2015 Non-GAAP diluted EPS* decreased to $1.27 from $1.41; |
Shmuel
Jonas, IDT’s Chief Executive Officer, said, “Sales of our Boss Revolution international long distance calling service
continued to grow year over year and sequentially, albeit at a slower rate than in recent quarters, reflecting its mature market
penetration into many of our key destinations and industry-wide competitive rate declines to our key Mexican corridor. Boss Revolution’s
growth, in combination with our ongoing efforts to streamline operations and reduce costs, helped us to deliver healthy increases
in Adjusted EBITDA and income from operations compared to the year ago quarter. Overall, our core businesses performed to expectations,
and Zedge reported a great quarter, increasing revenue by 40% year over year and contributing a half million dollars in Adjusted
EBITDA,” Jonas concluded.
*Throughout
this release, Adjusted EBITDA and Non-GAAP diluted EPS for all periods presented are non-GAAP measures intended to provide useful
information that supplements IDT’s or the relevant segment’s core results in accordance with GAAP. Please refer to
the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of these terms and their respective
reconciliation to the most directly comparable GAAP measure.
4Q15
AND FY 2015 OPERATING RESULTS BY SEGMENT
(Results
are for 4Q15 unless otherwise noted).
TPS
IDT’s
Telecom Platform Services (TPS) segment accounted for 98.8% of IDT’s revenue in 4Q15 and 98.5% in FY 2015. TPS markets and
distributes multiple communications and payment services across four broad business verticals: Retail Communications, Wholesale
Carrier Services, Payment Services and Hosted Platform Solutions.
TPS’
quarterly minutes of use were 7.47 billion, an increase from 7.35 billion (+1.6%) in 4Q14 and an increase from 7.15 billion (+4.5%)
in 3Q15 reflecting, in part, the fact that the fourth quarter has 92 days compared to 89 in the third quarter. For FY 2015, TPS’s
minutes of use increased (+0.1%) to 29.63 billion, compared to 29.59 billion in FY 2014.
TPS’
revenue was $400.8 million compared to $410.1 million (-2.3%) in the year ago quarter and $379.1 million (+5.7%) in the prior
quarter. The year over year quarterly decrease was mostly due to declines in Wholesale Carrier Services and Hosted Platform Solutions
revenues. The sequential quarterly increase was driven by the greater number of days in the fourth quarter and a robust increase
in Wholesale Carrier Services’ revenue. For FY 2015, TPS’ revenue was $1,572.7 million, a decrease from $1,615.6 million
(-2.7%) in FY 2014.
TPS
Revenue by Product Category (in
millions) | |
4Q15 | | |
3Q15 | | |
4Q14 | | |
| 4Q15-4Q14 %
Change in Revenue | | |
| 4Q15-4Q14
% Change in Minutes of Use | | |
| 4Q15
Revenue as a % of all TPS Revenue | |
Retail Communications | |
$ | 182.9 | | |
$ | 182.3 | | |
$ | 181.0 | | |
| +1.0 | % | |
| (6.9 | %) | |
| 45.6 | % |
Wholesale Carrier Services | |
$ | 153.6 | | |
$ | 135.7 | | |
$ | 164.9 | | |
| (6.8 | )% | |
| +6.6 | % | |
| 38.3 | % |
Payment Services | |
$ | 55.7 | | |
$ | 51.6 | | |
$ | 53.2 | | |
| +4.7 | % | |
| n/a | | |
| 13.9 | % |
Hosted Platform Solutions | |
$ | 8.6 | | |
$ | 9.5 | | |
$ | 11.0 | | |
| (21.2 | )% | |
| (12.2 | %) | |
| 2.2 | % |
Total TPS | |
$ | 400.8 | | |
$ | 379.1 | | |
$ | 410.1 | | |
| (2.3 | )% | |
| +1.6 | % | |
| 100.0 | % |
TPS Revenue by Product Category (in millions) | |
FY 2015 | | |
FY 2014 | | |
% Change in Revenue | | |
FY15-FY14 % Change in Minutes of Use | | |
FY 2015 Revenue as a % of all TPS Revenue | |
Retail Communications | |
$ | 729.1 | | |
$ | 695.8 | | |
| +4.8 | % | |
| (1.8 | %) | |
| 46.4 | % |
Wholesale Carrier Services | |
$ | 596.8 | | |
$ | 672.3 | | |
| (11.2 | )% | |
| +1.4 | % | |
| 37.9 | % |
Payment Services | |
$ | 208.3 | | |
$ | 202.3 | | |
| +3.0 | % | |
| n/a | | |
| 13.3 | % |
Hosted Platform Solutions | |
$ | 38.5 | | |
$ | 45.2 | | |
| (14.9 | )% | |
| (8.0 | %) | |
| 2.4 | % |
Total TPS | |
$ | 1,572.7 | | |
$ | 1,615.6 | | |
| (2.7 | )% | |
| +0.1 | % | |
| 100.0 | % |
Retail Communications revenue climbed to $182.9 million
in 4Q15 (+1.0%) and to $729.1 million for FY 2015 (+4.8%). Boss Revolution continued to grow, although at slowing rates of increase.
Sales of international calling services on the Boss Revolution platform increased 7.6% year over year and 1.8% sequentially. The
year-over-year and sequential revenue increases were driven by continued expansion of Boss Revolution’s customer base and
a shift within Boss Revolution to higher average revenue per minute destinations. For all of Retail Communications, the quarterly
and full year increases in Boss Revolution revenue more than offset continued declines in sales of traditional disposable prepaid
calling cards in the U.S. and overseas.
Wholesale
Carrier Services’ revenue decreased to $153.6 million (-6.8%) in 4Q15 and to $596.8 million (-11.2%) for FY 2015 as a result
of lower average revenue per minute rates, partially offset by higher minutes of use. Nevertheless, minutes of use and revenue
in 4Q15 compared 3Q15 increased at a rate well beyond the baseline three percent difference in days comprising these two quarters.
The full year-over-year revenue decrease reflected lower average revenue per minute rates and a decline in Latin America of a
pricing opportunity resulting from local currency exchange rate disparities.
Payment
Services’ revenue in 4Q15 increased to $55.7 million (+4.7%) reflecting more aggressive pricing on international airtime
top-up sales. For FY 2015, revenue increased to $208.3 million (+3.0%) driven by the growth of IDT’s international money
transfer business, increased sales of international and domestic airtime top-up, and revenue generated by IDT’s Gibraltar-based
bank.
Hosted
Platform Solutions’ revenue decreased to $8.6 million in 4Q15 (-21.2%) and to $38.5 million (-14.9%) for FY 2015. The decreases
were in-line with expectations.
TPS’
direct cost of revenue as a percentage of TPS’ revenue was 84.3% in 4Q15, a decrease of 30 basis points year over year and
an increase of 120 basis points sequentially. The year over year improvement primarily reflects a shift in Wholesale Carrier Services’
traffic to higher margin routes, while the sequential deterioration primarily reflects a reduction in IDT’s retail rates
to certain key destinations. For FY 2015, TPS’ direct cost of revenue was 84.1% of revenue – unchanged from the prior
year.
TPS’ SG&A expense decreased
to $49.4 million from $51.2 million (-3.6%) in 4Q14 and increased from $48.6 million (+1.5%) in 3Q15. Expressed as a percentage
of TPS’ revenue, TPS’ 4Q15 SG&A decreased to 12.3% from 12.5% in 4Q14 and 12.8% in 3Q15. The year over year decrease
reflects reduced employee compensation expense after reductions in force were implemented earlier this fiscal year, and reduced
marketing expense compared to the year ago quarter, which included a heavy advertising and promotional spend around the World
Cup. The sequential dollar increase primarily reflects the incremental compensation costs of the three additional days in 4Q15
compared to 3Q15. TPS’ SG&A expense in FY 2015 was $199.6 million, an increase from $198.8 million (+0.4%) in the prior
year, reflecting increased marketing and commission expense. As a percentage of revenue, SG&A expense in FY 2015 increased
to 12.7% from 12.3% in FY 2014, primarily as a result of the year-over-year decrease in Wholesale Carrier Services’ revenue.
TPS’ Adjusted EBITDA increased
to $13.4 million from $12.0 million (+11.7%) in 4Q14 and decreased from $15.3 million (-12.4%) in 3Q15. The year over year increase
was driven by the reduction in SG&A expense compared to 4Q14, while the sequential decrease primarily reflects lower average
gross margins and higher SG&A expense. For FY 2015, Adjusted EBITDA decreased to $50.8 million from $58.2 million (-12.7%)
in FY 2014 due to the decrease in revenue and the increase in SG&A expense.
TPS’ depreciation and amortization
expense was $4.3 million in 4Q15 compared to $3.6 million (+20.6%) in 4Q14 and $4.1 million (+6.3%) in 3Q15. Depreciation increased
due to higher levels of capital expenditures in recent periods to support investments in new products, including IDT Messaging,
Net2Phone Office, and the Boss Revolution Calling App. For FY 2015, depreciation and amortization expense increased to $16.2 million
from $13.8 million (+17.4%) in FY 2014.
TPS’ income from operations increased
to $8.8 million from $8.4 million (+5.0%) in 4Q14 and $5.6 million (+57.2%) in 3Q15. Severance expense was $0.2 million, nil and
$5.6 million in 4Q15, 4Q14 and 3Q15, respectively. For FY 2015, income from operations totaled $27.0 million compared to $45.1
million (-40.2%) in FY 2014. The year-over-year decrease primarily reflects the decline in Adjusted EBITDA, severance expense
of $7.7 million in FY 2015 compared to nil in FY 2014, and the increase in depreciation and amortization expense.
CPS
Consumer
Phone Services (CPS) sells local and long distance services domestically in 11 states, marketed under the brand name IDT America.
CPS has been in harvest mode since fiscal 2006 - maximizing revenue from current customers while maintaining SG&A and other
expenses at the minimum levels essential to operate the business. Results this quarter and fiscal year conformed to expectations.
CPS’
revenue was $2.0 million compared to $2.5 million (-21.9%) in 4Q14 and $2.1 million (-5.8%) in the prior quarter. FY 2015 revenue
was $8.6 million compared to $11.0 million (-21.7%) in FY 2014. CPS’ income from operations was $0.3 million in 4Q15, compared
$0.4 million (-37.8%) in 4Q14 and $0.3 million (-15.6%) in 3Q15. Income from operations in FY 2015 was $1.3 million compared to
$1.8 million (-30.0%) in FY 2014.
ALL OTHER
All
Other includes Zedge - a popular platform for mobile phone consumers to obtain free customization content, IDT’s real estate
holdings and other small businesses. All Other’s results previously included Fabrix, a software development company specializing
in highly efficient cloud-based video processing, storage and delivery. Fabrix’s operations were consolidated into IDT for
all prior periods up to the first two months of 1Q15, at which point Fabrix was sold and deconsolidated.
As
of July 31, 2015 Zedge’s app, available on Android, iOS and Windows Mobile, had surpassed 162 million cumulative installs,
increasing from 111 million (+46%) a year earlier and 149 million (+9%) at April 30, 2015. Zedge has averaged among the top thirty
most popular apps in the Google Play store in the U.S. for the last five years and is currently in the top six most popular free
apps in the iTunes Entertainment category. As a result of Zedge’s large, active user base, it offers advertisers, game developers,
musicians and artists a scalable, non-incentivized, user acquisition platform with global reach.
Zedge’s
revenue in 4Q15 was $2.4 million, an increase from $1.7 million (+39.5%) in 4Q14 and from $2.2 million (+10.4%) in 3Q15. Zedge’s
FY 2015 revenue increased to $9.1 million from $6.5 million (+38.6%) in FY 2014. The year over year and sequential revenue increases
were driven by continued strong growth in users and impressions, and increased revenue per impression. Revenue growth was robust
across both the Android and iOS platforms.
All
Other’s revenue was $3.0 million in 4Q15, a decrease from $8.1 million (-63.2%) in 4Q14. FY 2015 revenue was $15.4 million
compared to $24.9 million in FY 2014. (In 4Q14, Fabrix contributed $5.9 million to All Other’s revenue. In FY 2015, Fabrix
contributed $4.2 million in revenue compared to $16.6 million in FY 2014.) In addition to the revenue generated by Zedge, IDT’s
real estate holdings, comprised of its public garage in Newark and commercial properties in Newark, Piscataway and Jerusalem,
generated the balance of All Other’s revenue in 4Q15.
All
Other’s income from operations in 4Q15 was $449 thousand compared to $506 thousand in 4Q14, and $1.6 million in 3Q15. All
Other’s income from operations in 3Q15 included a gain on sale of IDT’s interest in Fabrix of $1.2 million, reflecting
adjustments to Fabrix’ working capital and estimated transaction costs. Income from operations was $78.0 million in FY 2015
compared to a loss from operations of $1.7 million in FY 2014.
OTHER
CONSOLIDATED RESULTS
Consolidated
results for all periods presented include corporate overhead. In 4Q15, corporate G&A expense decreased to $2.3 million compared
to $3.1 million (-27.1%) in the year ago quarter and to $2.9 million (-19.7%) in the prior quarter. Corporate G&A expense
was $10.9 million in FY 2015 compared to $14.8 million (-26.1%) in FY 2014.
4Q15
net income attributable to IDT decreased to $1.3 million from $7.7 million in the year ago quarter and increased from $0.6 million
in 3Q15. Net income attributable to IDT in 4Q15 included income tax expense of $3.8 million compared to a benefit from income
taxes of $3.9 million in 4Q14 and $59 thousand in 3Q15. FY 2015 net income attributable to IDT increased to $84.5 million from
$18.8 million. The full year increase primarily reflects the $76.9 million gain on the sale of IDT’s interest in Fabrix.
At
July 31, 2015, IDT had $150.6 million in unrestricted cash, cash equivalents and marketable securities. Additionally, at that
date, IDT reported $91.0 million in current restricted cash and cash equivalents, which included $87.6 million of customer deposits
held by IDT’s Gibraltar-based bank. Current notes payable, consisting of a mortgage on real estate, totaled $6.4 million,
which was paid on the maturity date after the quarter close. Current assets totaled $341.2 million and current liabilities were
$348.9 million.
Net
cash provided by operating activities during 4Q15 was $2.8 million, compared to $16.1 million during 4Q14 and $6.8 million in
3Q15. For the same periods, capital expenditures were $5.7 million compared to $4.6 million and $8.9 million, respectively. For
FY 2015, cash provided by operating activities was $30.5 million compared to $45.7 million in FY 2014. Capital expenditures for
FY 2015 totaled $28.6 million compared to $17.0 million in the prior year. The increase in capital expenditures during 4Q15 and
FY 2015 was due mostly to costs related to the refurbishment of IDT’s headquarters building at 520 Broad Street in Newark,
New Jersey
DIVIDEND
On
September 25th, IDT announced that on or about October 15, 2015 it will pay a quarterly dividend quarterly dividend
of $0.18 per share of Class A and Class B common stock for the fourth quarter of FY 2015. The dividend will be paid to stockholders
of record as of the close of business on October 7, 2015. The ex-dividend date was October 5, 2015. This distribution is an ordinary
dividend for tax purposes.
IDT
EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
IDT
will host a conference call at 5:30 PM ET today, October 13th, beginning with management’s discussion of financial
and operational results, business outlook and strategy, followed by Q&A.
To
listen to the call and participate in the Q&A, dial toll-free 1-877-300-8521 (from U.S.) or 1-412-317-6026 (international)
and request the IDT Corporation call.
An
audio replay of the conference call will be available one hour after the call concludes through October 19, 2015 by dialing 1-877-870-5176
(toll free from the U.S.) or 1-858-384-5517 (international) and providing the conference code: 10071762. An audio replay will
also be available by streaming from the IDT website investor relations site: www.idt.net/ir after the call concludes.
Copies
of this release - including the reconciliation of the non-GAAP financial measures that are both used herein and referenced during
management’s discussion of results - are also available in the Investor Relations portion of IDT’s website.
About
IDT:
IDT
Corporation (NYSE: IDT), through its IDT Telecom division, provides retail telecommunications and payment services to help foreign
born communities, under-banked consumers, and small businesses communicate and share resources around the world. IDT Telecom’s
wholesale business is a leading global carrier of international long distance calls. IDT also holds a majority interest in Zedge
(www.zedge.net), developer of the popular, eponymous app for mobile content discovery and acquisition. For more information on
IDT, visit www.idt.net.
All
statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,”
“anticipate,” “expect,” “plan,” “intend,” “estimate,” “target”
and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may
differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with
the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent
permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
Contact:
IDT
Corporation Investor Relations
Bill
Ulrey
william.ulrey@idt.net
973-438-3838
IDT
CORPORATION
CONSOLIDATED
BALANCE SHEETS
July 31 (in thousands) | |
2015 | | |
2014 | |
ASSETS | |
| | |
| |
CURRENT ASSETS: | |
| | |
| |
Cash and cash equivalents | |
$ | 110,361 | | |
$ | 153,823 | |
Restricted cash and cash equivalents—short-term | |
| 91,035 | | |
| 65,706 | |
Marketable securities | |
| 40,287 | | |
| 12,873 | |
Trade accounts receivable, net of allowance for doubtful accounts of $5,645 and $11,507 at July 31, 2015 and 2014, respectively | |
| 58,543 | | |
| 69,330 | |
Receivable from sale of interest in Fabrix Systems, Ltd. | |
| 8,471 | | |
| — | |
Prepaid expenses | |
| 17,304 | | |
| 21,799 | |
Deferred income tax assets, net—current portion | |
| 843 | | |
| 2,953 | |
Other current assets | |
| 14,344 | | |
| 12,381 | |
TOTAL CURRENT ASSETS | |
| 341,188 | | |
| 338,865 | |
Property, plant and equipment, net | |
| 91,316 | | |
| 81,760 | |
Goodwill | |
| 14,388 | | |
| 14,830 | |
Other intangibles, net | |
| 1,277 | | |
| 1,742 | |
Investments | |
| 12,344 | | |
| 10,008 | |
Restricted cash and cash equivalents—long-term | |
| — | | |
| 2,763 | |
Deferred income tax assets, net—long-term portion | |
| 12,481 | | |
| 16,248 | |
Other assets | |
| 12,688 | | |
| 14,715 | |
TOTAL ASSETS | |
$ | 485,682 | | |
$ | 480,931 | |
LIABILITIES AND EQUITY | |
| | | |
| | |
CURRENT LIABILITIES: | |
| | | |
| | |
Revolving credit loan payable | |
$ | — | | |
$ | 13,000 | |
Trade accounts payable | |
| 29,140 | | |
| 42,135 | |
Accrued expenses | |
| 139,272 | | |
| 142,528 | |
Deferred revenue | |
| 86,302 | | |
| 101,165 | |
Customer deposits | |
| 84,454 | | |
| 62,685 | |
Income taxes payable | |
| 391 | | |
| 732 | |
Note payable—current portion | |
| 6,353 | | |
| 271 | |
Other current liabilities | |
| 3,000 | | |
| 5,468 | |
TOTAL CURRENT LIABILITIES | |
| 348,912 | | |
| 367,984 | |
Note payable—long-term portion | |
| — | | |
| 6,353 | |
Other liabilities | |
| 1,830 | | |
| 5,430 | |
TOTAL LIABILITIES | |
| 350,742 | | |
| 379,767 | |
Commitments and contingencies | |
| | | |
| | |
EQUITY: | |
| | | |
| | |
IDT Corporation stockholders’ equity: | |
| | | |
| | |
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued | |
| — | | |
| — | |
Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2015 and 2014 | |
| 33 | | |
| 33 | |
Class B common stock, $.01 par value; authorized shares—200,000; 25,276 and 24,587 shares issued and 21,755 and 21,653 shares outstanding at July 31, 2015 and 2014, respectively | |
| 253 | | |
| 246 | |
Additional paid-in capital | |
| 403,146 | | |
| 392,858 | |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 3,521 and 2,934 shares of Class B common stock at July 31, 2015 and 2014, respectively | |
| (110,543 | ) | |
| (99,841 | ) |
Accumulated other comprehensive income | |
| 771 | | |
| 3,668 | |
Accumulated deficit | |
| (159,829 | ) | |
| (196,725 | ) |
Total IDT Corporation stockholders’ equity | |
| 133,831 | | |
| 100,239 | |
Noncontrolling interests | |
| 1,109 | | |
| 925 | |
TOTAL EQUITY | |
| 134,940 | | |
| 101,164 | |
TOTAL LIABILITIES AND EQUITY | |
$ | 485,682 | | |
$ | 480,931 | |
IDT
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
Year ended July 31 (in thousands, except per share data) | |
2015 | | |
2014 | | |
2013 | |
REVENUES | |
$ | 1,596,777 | | |
$ | 1,651,541 | | |
$ | 1,620,617 | |
COSTS AND EXPENSES: | |
| | | |
| | | |
| | |
Direct cost of revenues (exclusive of depreciation and amortization) | |
| 1,328,363 | | |
| 1,367,266 | | |
| 1,355,573 | |
Selling, general and administrative (i) | |
| 222,239 | | |
| 228,934 | | |
| 218,469 | |
Depreciation and amortization | |
| 18,418 | | |
| 16,318 | | |
| 14,910 | |
Research and development | |
| 1,656 | | |
| 10,018 | | |
| 7,166 | |
Severance | |
| 8,363 | | |
| — | | |
| — | |
Impairment of building and improvements | |
| — | | |
| — | | |
| 4,359 | |
TOTAL COSTS AND EXPENSES | |
| 1,579,039 | | |
| 1,622,536 | | |
| 1,600,477 | |
Gain on sale of interest in Fabrix Systems, Ltd. | |
| 76,864 | | |
| — | | |
| — | |
Other operating (losses) gains, net | |
| (1,552 | ) | |
| 835 | | |
| 9,251 | |
Income from operations | |
| 93,050 | | |
| 29,840 | | |
| 29,391 | |
Interest expense, net | |
| (159 | ) | |
| (148 | ) | |
| (824 | ) |
Other (expense) income, net | |
| (688 | ) | |
| (4,700 | ) | |
| 5,383 | |
Income from continuing operations before income taxes | |
| 92,203 | | |
| 24,992 | | |
| 33,950 | |
Provision for income taxes | |
| (6,088 | ) | |
| (3,982 | ) | |
| (15,872 | ) |
Income from continuing operations | |
| 86,115 | | |
| 21,010 | | |
| 18,078 | |
Loss from discontinued operations, net of tax | |
| — | | |
| — | | |
| (4,634 | ) |
NET INCOME | |
| 86,115 | | |
| 21,010 | | |
| 13,444 | |
Net income attributable to noncontrolling interests | |
| (1,625 | ) | |
| (2,226 | ) | |
| (1,837 | ) |
NET INCOME ATTRIBUTABLE TO IDT CORPORATION | |
$ | 84,490 | | |
$ | 18,784 | | |
$ | 11,607 | |
Amounts attributable to IDT Corporation common stockholders: | |
| | | |
| | | |
| | |
Income from continuing operations | |
$ | 84,490 | | |
$ | 18,784 | | |
$ | 16,048 | |
Loss from discontinued operations | |
| — | | |
| — | | |
| (4,441 | ) |
Net income attributable to IDT Corporation | |
$ | 84,490 | | |
$ | 18,784 | | |
$ | 11,607 | |
Earnings per share attributable to IDT Corporation common stockholders: | |
| | | |
| | | |
| | |
Basic: | |
| | | |
| | | |
| | |
Income from continuing operations | |
$ | 3.69 | | |
$ | 0.85 | | |
$ | 0.77 | |
Loss from discontinued operations | |
| — | | |
| — | | |
| (0.21 | ) |
Net income attributable to IDT Corporation | |
$ | 3.69 | | |
$ | 0.85 | | |
$ | 0.56 | |
Weighted-average number of shares used in calculation of basic earnings per share | |
| 22,903 | | |
| 22,009 | | |
| 20,876 | |
Diluted: | |
| | | |
| | | |
| | |
Income from continuing operations | |
$ | 3.63 | | |
$ | 0.82 | | |
$ | 0.72 | |
Loss from discontinued operations | |
| — | | |
| — | | |
| (0.20 | ) |
Net income attributable to IDT Corporation | |
$ | 3.63 | | |
$ | 0.82 | | |
$ | 0.52 | |
Weighted-average number of shares used in calculation of diluted earnings per share | |
| 23,247 | | |
| 22,937 | | |
| 22,315 | |
(i) Stock-based compensation included in selling, general and administrative expenses | |
$ | 5,185 | | |
$ | 5,382 | | |
$ | 5,875 | |
IDT
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year ended July
31 (in thousands) | |
2015 | | |
2014 | | |
2013 | |
OPERATING ACTIVITIES | |
| | |
| | |
| |
Net income | |
$ | 86,115 | | |
$ | 21,010 | | |
$ | 13,444 | |
Adjustments to reconcile
net income to net cash provided by operating activities: | |
| | | |
| | | |
| | |
Net loss from discontinued
operations | |
| — | | |
| — | | |
| 4,634 | |
Depreciation and amortization | |
| 18,418 | | |
| 16,318 | | |
| 14,910 | |
Impairment of building and
improvements | |
| — | | |
| — | | |
| 4,359 | |
Deferred income taxes | |
| 5,877 | | |
| 2,487 | | |
| 15,198 | |
Provision for doubtful accounts
receivable | |
| 97 | | |
| 500 | | |
| 2,743 | |
Gain on sale of interest
in Fabrix Systems Ltd. | |
| (76,864 | ) | |
| — | | |
| — | |
Net realized gains from
investments | |
| 54 | | |
| — | | |
| (586 | ) |
Gain on proceeds from insurance | |
| — | | |
| (571 | ) | |
| — | |
Interest in the equity of
investments | |
| (1,699 | ) | |
| (1,282 | ) | |
| (1,968 | ) |
Stock-based compensation | |
| 5,185 | | |
| 5,382 | | |
| 5,875 | |
Change in assets and liabilities: | |
| | | |
| | | |
| | |
Restricted cash and cash
equivalents | |
| (28,286 | ) | |
| (25,292 | ) | |
| (23,006 | ) |
Trade accounts receivable | |
| 640 | | |
| (1,363 | ) | |
| 17,606 | |
Prepaid expenses, other
current assets and other assets | |
| 2,122 | | |
| (4,628 | ) | |
| 2,890 | |
Trade accounts payable,
accrued expenses, other current liabilities and other liabilities | |
| (3,824 | ) | |
| (5,914 | ) | |
| (22,578 | ) |
Customer deposits | |
| 25,939 | | |
| 30,186 | | |
| 17,998 | |
Income taxes payable | |
| (301 | ) | |
| (29 | ) | |
| (576 | ) |
Deferred
revenue | |
| (2,939 | ) | |
| 8,917 | | |
| 6,253 | |
Net cash provided by operating
activities | |
| 30,534 | | |
| 45,721 | | |
| 57,196 | |
INVESTING
ACTIVITIES | |
| | | |
| | | |
| | |
Capital expenditures | |
| (28,556 | ) | |
| (17,021 | ) | |
| (14,537 | ) |
Proceeds from sale of interest
in Fabrix Systems Ltd., net of cash and cash equivalents sold | |
| 59,678 | | |
| — | | |
| — | |
Deposit on purchase of leasehold
interest in building | |
| — | | |
| — | | |
| (950 | ) |
Collection of notes receivable,
net | |
| — | | |
| — | | |
| 750 | |
Cash used for acquisition
and purchase of investments | |
| (125 | ) | |
| (175 | ) | |
| (1,219 | ) |
Proceeds from sales and
redemptions of investments | |
| 119 | | |
| 1,038 | | |
| 114 | |
Purchases of other intangibles | |
| — | | |
| (250 | ) | |
| (93 | ) |
Proceeds from sale of building | |
| — | | |
| 250 | | |
| — | |
Proceeds from insurance | |
| — | | |
| 571 | | |
| — | |
Purchases of marketable
securities | |
| (52,360 | ) | |
| (20,658 | ) | |
| (11,414 | ) |
Proceeds
from maturities and sales of marketable securities | |
| 24,126 | | |
| 17,323 | | |
| 1,712 | |
Net cash provided by (used
in) investing activities | |
| 2,882 | | |
| (18,922 | ) | |
| (25,637 | ) |
FINANCING
ACTIVITIES | |
| | | |
| | | |
| | |
Cash of Straight Path Communications,
Inc. deconsolidated as a result of spin-off | |
| — | | |
| — | | |
| (15,000 | ) |
Dividends paid | |
| (47,594 | ) | |
| (13,635 | ) | |
| (17,123 | ) |
Distributions to noncontrolling
interests | |
| (2,050 | ) | |
| (1,888 | ) | |
| (2,245 | ) |
Purchases of stock of subsidiary | |
| — | | |
| (1,133 | ) | |
| (1,804 | ) |
Proceeds from sales of stock
and exercise of stock options of subsidiary | |
| — | | |
| — | | |
| 154 | |
Proceeds from exercise of
stock options | |
| 3,424 | | |
| 609 | | |
| 921 | |
Proceeds from revolving
credit loan payable | |
| — | | |
| 56,000 | | |
| 21,062 | |
Repayments of revolving
credit loan payable and other borrowings | |
| (13,271 | ) | |
| (64,318 | ) | |
| (21,304 | ) |
Purchase of Class B common
stock from Howard S. Jonas | |
| (7,500 | ) | |
| — | | |
| — | |
Repurchases
of Class B common stock | |
| (3,202 | ) | |
| (1,005 | ) | |
| (1,079 | ) |
Net cash used in financing
activities | |
| (70,193 | ) | |
| (25,370 | ) | |
| (36,418 | ) |
DISCONTINUED
OPERATIONS | |
| | | |
| | | |
| | |
Net cash used in operating
activities | |
| — | | |
| — | | |
| (2,638 | ) |
Net
cash used in investing activities | |
| — | | |
| — | | |
| (350 | ) |
Net cash used in discontinued
operations | |
| — | | |
| — | | |
| (2,988 | ) |
Effect
of exchange rate changes on cash and cash equivalents | |
| (6,685 | ) | |
| 794 | | |
| 1,241 | |
Net (decrease) increase
in cash and cash equivalents | |
| (43,462 | ) | |
| 2,223 | | |
| (6,606 | ) |
Cash
and cash equivalents at beginning of year | |
| 153,823 | | |
| 151,600 | | |
| 158,206 | |
Cash
and cash equivalents at end of year | |
$ | 110,361 | | |
$ | 153,823 | | |
$ | 151,600 | |
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION | |
| | | |
| | | |
| | |
Cash
payments made for interest | |
$ | 745 | | |
$ | 743 | | |
$ | 1,286 | |
Cash
payments made for income taxes | |
$ | 320 | | |
$ | 1,115 | | |
$ | 483 | |
SUPPLEMENTAL
SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES | |
| | | |
| | | |
| | |
Net
liabilities excluding cash and cash equivalents of Fabrix Systems Ltd. sold | |
$ | 14,333 | | |
$ | — | | |
$ | — | |
Adjustment
to liabilities in connection with the Straight Path Communications, Inc. spin-off | |
$ | — | | |
$ | 1,624 | | |
$ | — | |
Escrow
account balances included in other current assets used to reduce notes payable | |
$ | — | | |
$ | — | | |
$ | 1,976 | |
Net
liabilities excluding cash and cash equivalents of Straight Path Communications, Inc. deconsolidated as a result of spin-off | |
$ | — | | |
$ | — | | |
$ | 1,341 | |
Reconciliation
of Non-GAAP Financial Measures for the Fourth Quarter Fiscal 2015
In
addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the
United States of America (GAAP), IDT also disclosed, for the fourth quarters of fiscal 2015 and 2014, Adjusted EBITDA, non-GAAP
net income and non-GAAP diluted earnings per share, or EPS, which are non-GAAP measures. Generally, a non-GAAP financial measure
is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts
that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with
GAAP.
IDT’s
measure of Adjusted EBITDA consists of revenues less direct cost of revenues, selling, general and administrative expense and
research and development expense. Another way of calculating Adjusted EBITDA is to start with income from operations, add depreciation
and amortization, severance expense and other operating losses, and subtract the gain on the sale of interest in Fabrix Systems
Ltd. and other operating gains.
IDT’s
measure of non-GAAP net income starts with net income in accordance with GAAP and adds depreciation and amortization, severance
expense, stock-based compensation and other operating losses, and subtracts the gain on the sale of interest in Fabrix Systems
Ltd. and other operating gains.
IDT’s
measure of non-GAAP diluted EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares.
These
additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2015 and fiscal 2014 periods.
Management
believes that IDT’s Adjusted EBITDA, non-GAAP net income and non-GAAP EPS measures provide useful information to both management
and investors by excluding certain expenses and non-routine gains or losses that may not be indicative of IDT’s or the relevant
segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core
operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA, non-GAAP
net income and non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial
measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental
information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar
financial measures and believes such measures are commonly used by readers of financial information in assessing performance,
therefore the inclusion of comparative numbers provides consistency in financial reporting at this time.
Management
refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated
level to facilitate internal and external comparisons to the segments’ and IDT's historical operating results, in making
operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.
While
depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current
period allocation of costs associated with long-lived assets acquired or constructed in prior periods. IDT’s operating results
exclusive of depreciation and amortization charges are useful indicators of its current performance.
Severance
expense is also excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP EPS. Severance expense is reflective
of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused
on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and
magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.
Gain
on the sale of interest in Fabrix Systems Ltd. and other operating (losses) gains, net, which are components of income (loss)
from operations, are excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP EPS. From time-to-time,
IDT will select and incubate promising early stage businesses outside of its core business for eventual sale or spin-off to its
stockholders. Also, IDT has insurance claims and settlements of claims from time-to-time, and has a number of matters under litigation.
However, these gains and losses do not occur each quarter nor are they part of IDT’s or the relevant segment’s core
operating results.
The
other calculation of Adjusted EBITDA consists of revenues less direct cost of revenues, selling, general and administrative expense
and research and development expense. As the other excluded items are not reflected in this calculation, they are excluded automatically
and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility
and significance is as explained above.
Stock-based
compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as
the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded
from IDT’s calculation of non-GAAP net income and non-GAAP EPS because management believes this allows investors to make
more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies.
However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important
part of employees’ compensation that impacts their performance.
Adjusted
EBITDA, non-GAAP net income and non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income
(loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures
of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA,
non-GAAP net income and non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.
Following
are reconciliations of Adjusted EBITDA, non-GAAP net income and non-GAAP EPS to the most directly comparable GAAP measure, which
are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated
basis, (b) for non-GAAP net income, net income and, (c) for non-GAAP EPS, basic and diluted earnings per share.
IDT
Corporation
Reconciliation
of Adjusted EBITDA to Net Income
(unaudited)
in
millions
Figures may not foot or cross-foot due to rounding to millions.
| |
Total IDT Corporation | | |
Telecom Platform Services | | |
Consumer Phone Services | | |
All Other | | |
Corporate | |
Three
Months Ended July 31, 2015 (4Q15) | |
| | |
| | |
| | |
| | |
| |
Adjusted EBITDA | |
$ | 12.4 | | |
$ | 13.4 | | |
$ | 0.3 | | |
$ | 1.1 | | |
$ | (2.3 | ) |
Subtract: | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation and amortization | |
| 5.0 | | |
| 4.3 | | |
| - | | |
| 0.6 | | |
| - | |
Severance expense | |
| 0.2 | | |
| 0.2 | | |
| - | | |
| - | | |
| - | |
Income (loss) from operations | |
| 7.2 | | |
$ | 8.8 | | |
$ | 0.3 | | |
$ | 0.4 | | |
$ | (2.3 | ) |
Other expense, net | |
| (1.6 | ) | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 5.6 | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| (3.7 | ) | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 1.9 | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| (0.6 | ) | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 1.3 | | |
| | | |
| | | |
| | | |
| | |
| |
Total IDT Corporation | | |
Telecom Platform Services | | |
Consumer Phone Services | | |
All Other | | |
Corporate | |
Three Months Ended April 30, 2015 (3Q15) | |
| | |
| | |
| | |
| | |
| |
Adjusted EBITDA | |
$ | 13.6 | | |
$ | 15.3 | | |
$ | 0.3 | | |
$ | 0.9 | | |
$ | (2.9 | ) |
Subtract (Add): | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation and amortization | |
| 4.6 | | |
| 4.1 | | |
| - | | |
| 0.5 | | |
| - | |
Severance expense | |
| 6.2 | | |
| 5.6 | | |
| - | | |
| - | | |
| 0.6 | |
Gain on sale of interest in Fabrix Systems Ltd. | |
| (1.2 | ) | |
| - | | |
| - | | |
| (1.2 | ) | |
| - | |
Other operating losses | |
| 1.5 | | |
| - | | |
| - | | |
| - | | |
| 1.5 | |
Income (loss) from operations | |
| 2.5 | | |
$ | 5.6 | | |
$ | 0.3 | | |
$ | 1.6 | | |
$ | (5.0 | ) |
Other expense, net | |
| (1.4 | ) | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 1.1 | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| - | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 1.1 | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| (0.5 | ) | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 0.6 | | |
| | | |
| | | |
| | | |
| | |
IDT
Corporation
Reconciliation
of Adjusted EBITDA to Net Income
(unaudited)
in
millions
Figures
may not foot or cross-foot due to rounding to millions.
| |
Total IDT Corporation | | |
Telecom Platform Services | | |
Consumer Phone Services | | |
All Other | | |
Corporate | |
Three Months Ended July 31, 2014 (4Q14) | |
| | |
| | |
| | |
| | |
| |
Adjusted EBITDA | |
$ | 10.4 | | |
$ | 12.0 | | |
$ | 0.4 | | |
$ | 1.1 | | |
$ | (3.1 | ) |
Subtract (Add): | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation and amortization | |
| 4.2 | | |
| 3.6 | | |
| - | | |
| 0.6 | | |
| - | |
Other operating loss | |
| 0.4 | | |
| - | | |
| - | | |
| - | | |
| 0.4 | |
Income (loss) from operations | |
| 5.8 | | |
$ | 8.4 | | |
$ | 0.4 | | |
$ | 0.5 | | |
$ | (3.5 | ) |
Interest expense, net | |
| (0.1 | ) | |
| | | |
| | | |
| | | |
| | |
Other expense, net | |
| (1.2 | ) | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 4.5 | | |
| | | |
| | | |
| | | |
| | |
Benefit from income taxes | |
| 3.9 | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 8.4 | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| (0.7 | ) | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 7.7 | | |
| | | |
| | | |
| | | |
| | |
IDT
Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
in
millions
Figures may not foot or cross-foot due to rounding to millions.
| |
Total IDT Corporation | | |
Telecom Platform Services | | |
Consumer Phone Services | | |
All Other | | |
Corporate | |
Year Ended July 31, 2015 (FY 2015) | |
| | |
| | |
| | |
| | |
| |
Adjusted EBITDA | |
$ | 44.5 | | |
$ | 50.8 | | |
$ | 1.3 | | |
$ | 3.4 | | |
$ | (10.9 | ) |
Subtract (Add): | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation and amortization | |
| 18.4 | | |
| 16.2 | | |
| - | | |
| 2.2 | | |
| - | |
Severance expense | |
| 8.4 | | |
| 7.7 | | |
| - | | |
| - | | |
| 0.6 | |
Gain on sale of interest in Fabrix Systems Ltd. | |
| (76.9 | ) | |
| - | | |
| - | | |
| (76.9 | ) | |
| - | |
Other operating losses | |
| 1.5 | | |
| - | | |
| - | | |
| - | | |
| 1.5 | |
Income (loss) from operations | |
| 93.1 | | |
$ | 27.0 | | |
$ | 1.3 | | |
$ | 78.0 | | |
$ | (13.1 | ) |
Interest expense, net | |
| (0.2 | ) | |
| | | |
| | | |
| | | |
| | |
Other expense, net | |
| (0.7 | ) | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 92.2 | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| (6.1 | ) | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 86.1 | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| (1.6 | ) | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 84.5 | | |
| | | |
| | | |
| | | |
| | |
| |
Total IDT Corporation | | |
Telecom Platform Services | | |
Consumer Phone Services | | |
All Other | | |
Corporate | |
Year Ended July 31, 2014 (FY 2014) | |
| | |
| | |
| | |
| | |
| |
Adjusted EBITDA | |
$ | 45.3 | | |
$ | 58.2 | | |
$ | 1.8 | | |
$ | 0.1 | | |
$ | (14.8 | ) |
Subtract (Add): | |
| | | |
| | | |
| | | |
| | | |
| | |
Depreciation and amortization | |
| 16.3 | | |
| 13.8 | | |
| - | | |
| 2.5 | | |
| - | |
Other operating (gains) losses, net | |
| (0.8 | ) | |
| (0.7 | ) | |
| - | | |
| (0.6 | ) | |
| 0.5 | |
Income (loss) from operations | |
| 29.8 | | |
$ | 45.1 | | |
$ | 1.8 | | |
$ | (1.7 | ) | |
$ | (15.3 | ) |
Interest expense, net | |
| (0.1 | ) | |
| | | |
| | | |
| | | |
| | |
Other expense, net | |
| (4.7 | ) | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 25.0 | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| (4.0 | ) | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 21.0 | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| (2.2 | ) | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 18.8 | | |
| | | |
| | | |
| | | |
| | |
IDT Corporation
Reconciliations of Net Income to Non-GAAP Net Income and Earnings Per Diluted Share to Non-GAAP
Diluted EPS
(unaudited)
in millions, except per share data
Figures may not foot due to rounding to millions.
| |
| 4Q15 | | |
| 3Q15 | | |
| 4Q14 | | |
| Year
Ended July
31, 2015 | | |
| Year
Ended July
31, 2014 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
$ | 1.9 | | |
$ | 1.1 | | |
$ | 8.4 | | |
$ | 86.1 | | |
$ | 21.0 | |
Adjustments (add) subtract: | |
| | | |
| | | |
| | | |
| | | |
| | |
Stock-based compensation | |
| (1.2 | ) | |
| (1.0 | ) | |
| (0.5 | ) | |
| (5.2 | ) | |
| (5.4 | ) |
Depreciation and amortization | |
| (5.0 | ) | |
| (4.6 | ) | |
| (4.2 | ) | |
| (18.4 | ) | |
| (16.3 | ) |
Gain on sale of interest in Fabrix Systems Ltd. | |
| - | | |
| 1.2 | | |
| - | | |
| 76.9 | | |
| - | |
Other operating (losses) gains, net | |
| - | | |
| (1.5 | ) | |
| (0.4 | ) | |
| (1.5 | ) | |
| 0.8 | |
Reversal of a valuation allowance on foreign deferred income tax assets | |
| - | | |
| - | | |
| 4.1 | | |
| - | | |
| 4.1 | |
Severance expense | |
| (0.2 | ) | |
| (6.2 | ) | |
| - | | |
| (8.4 | ) | |
| - | |
Total adjustments | |
| (6.4 | ) | |
| (12.1 | ) | |
| (1.0 | ) | |
| 43.4 | | |
| (16.8 | ) |
Income tax effect of total adjustments | |
| 2.6 | | |
| 3.1 | | |
| 0.4 | | |
| 13.2 | | |
| 5.5 | |
| |
| 3.8 | | |
| 9.0 | | |
| 0.6 | | |
| (56.6 | ) | |
| 11.3 | |
Non-GAAP net income | |
$ | 5.7 | | |
$ | 10.1 | | |
$ | 9.0 | | |
$ | 29.5 | | |
$ | 32.3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Earnings per share: | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.05 | | |
$ | 0.02 | | |
$ | 0.34 | | |
$ | 3.69 | | |
$ | 0.85 | |
Total adjustments | |
| 0.20 | | |
| 0.42 | | |
| 0.06 | | |
| (2.40 | ) | |
| 0.62 | |
Non-GAAP EPS - basic | |
$ | 0.25 | | |
$ | 0.44 | | |
$ | 0.40 | | |
$ | 1.29 | | |
$ | 1.47 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted-average number of shares used in calculation of basic earnings per share | |
| 23.0 | | |
| 23.0 | | |
| 22.7 | | |
| 22.9 | | |
| 22.0 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Diluted | |
$ | 0.05 | | |
$ | 0.02 | | |
$ | 0.33 | | |
$ | 3.63 | | |
$ | 0.82 | |
Total adjustments | |
| 0.20 | | |
| 0.41 | | |
| 0.06 | | |
| (2.36 | ) | |
| 0.59 | |
Non-GAAP EPS - diluted | |
$ | 0.25 | | |
$ | 0.43 | | |
$ | 0.39 | | |
$ | 1.27 | | |
$ | 1.41 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted-average number of shares used in calculation of diluted earnings per share | |
| 23.2 | | |
| 23.5 | | |
| 23.1 | | |
| 23.2 | | |
| 22.9 | |
15
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