NEW YORK, April 29, 2015 /PRNewswire/ --
- Revenues increased 5% year-over-year to $63.8 million in the first quarter
- Net income for the first quarter totaled $5.1 million, resulting in diluted earnings per
share of $0.09 compared to
$0.08 in the first quarter of
2014
- Cash flows from operations totaled $19.1
million for the first quarter compared to $12.0 million for the first quarter of 2014, an
increase of 59%
- Dice's Open Web annual customer count increased 24% from
year-end 2014
DHI Group, Inc. (formerly known as Dice Holdings, Inc.) (NYSE:
DHX) (the "Company"), a leading provider of specialized websites
and services for professional communities, today reported financial
results for the quarter ended March 31, 2015.
"We are pleased with our progress on key strategic initiatives
across the business, as well as with having generated revenue
growth across most of our operating segments," said Michael Durney, President and Chief Executive
Officer. "During the first quarter, we saw an increase in the rate
of sales of our Open Web™ product in both the technology and
financial services verticals. Additionally, our Dice team
continued to innovate for both technology professionals and
customers, including the launch of updated versions of an
integrated Open Web and Talent Match experience that unifies user
workflow and is driving improved usage for both products. We
are also pleased with the ongoing progress of the brands acquired
in the onTargetjobs transaction, with growth across the Healthcare
and Hospitality verticals."
Revenues for the quarter ended March 31, 2015 totaled
$63.8 million, an increase of 5% from
$60.7 million in the comparable
quarter of 2014, reflecting year-over-year growth in most of the
operating segments.
Operating expenses for the first quarter totaled $54.6 million, an increase of $1.8 million from the comparable quarter of
2014. The increase was primarily due to higher year-over-year
sales and marketing expense and additional headcount in part
resulting from the acquisition of OilCareers in March 2014, partially offset by lower
depreciation and amortization expenses.
The Company's net income for the quarter ended March 31,
2015 totaled $5.1 million, resulting
in diluted earnings per share of $0.09.
Net cash provided by operating activities totaled $19.1 million for the quarter ended
March 31, 2015, as compared to $12.0
million for the quarter ended March 31, 2014, an
increase of 59%.
Adjusted EBITDA for the quarter ended March 31, 2015
totaled $17.6 million, or 28% of
Adjusted Revenues. See "Notes Regarding the Use of Non-GAAP
Financial Measures" and "Supplemental Information and Non-GAAP
Reconciliations."
Operating Segment Results
For the quarter ended March 31, 2015, Tech & Clearance
segment revenues increased 5% year-over-year to $33.3 million, or 52% of consolidated revenues,
with growth in all of the segment brands. ClearanceJobs,
while only accounting for 4% of our overall revenues, achieved
year-over-year growth of 19%.
Finance segment revenues for the first quarter of 2015 decreased
$0.2 million or 3% year-over-year to
$8.6 million, with currency
translation negatively impacting revenues by $0.6 million. On a constant currency basis,
revenues increased 5% year-over-year.
The Energy segment revenues grew 7% year-over-year to
$6.3 million in the quarter ended
March 31, 2015. OilCareers, acquired in March 2014 and integrated into the Company's
Rigzone platform in March 2015,
contributed to the growth in revenues in the first quarter.
During the first quarter, the Energy business continued to see the
negative impact on recruitment and advertising activity from
increased instability in the overall market.
For the quarter ended March 31, 2015, the Healthcare
segment contributed $7.1 million in
revenues, an increase of $0.6 million
year-over-year. The increase primarily reflects the impact of
the fair value adjustment for deferred revenue in 2014
($0.4 million). In addition, we
have seen an increase in usage at both HealtheCareers and
BioSpace. Hospitality segment revenues for the first quarter
of 2015 were $4.0 million, an
increase of $1.1 million
year-over-year. The increase reflects the impact of the fair
value adjustment for deferred revenue in 2014 ($0.5 million) and accelerated usage of job
postings by customers.
Corporate & Other segment revenues decreased 6% to
$4.5 million for the quarter ended
March 31, 2015, reflecting a decline in certain revenue
streams at Slashdot Media.
"During the first quarter, we demonstrated continued improvement
in the financial performance of our core businesses, with revenue
growth in most of our operating segments despite headwinds from
currency and the negative impact of lower recruitment activity
resulting from the dramatic decline in oil prices on our Energy
segment," said John Roberts, Chief
Financial Officer.
Balance Sheet
Deferred revenue at March 31, 2015 was $90.8 million compared to $88.2 million at March 31,
2014 and $86.4 million at
December 31, 2014. The $2.6
million or 3% year-over-year increase was primarily driven
by our Tech & Clearance segment, which grew 5%, as well as the
Finance segment, partially offset by a decrease in the Energy
segment.
Net Debt, defined as total debt less cash and cash equivalents,
was $76.9 million at March 31,
2015, consisting of total debt of $104.9
million minus cash and cash equivalents of $28.0 million. This compares to Net Debt of
$83.7 million at December 31,
2014, consisting of total debt of $110.5
million minus cash and cash equivalents of $26.8 million.
During the first quarter of 2015, the Company purchased
approximately 1.0 million shares of its common stock pursuant to
its stock repurchase plan at an average cost of $8.91 per share, for a total cost of
approximately $9.2 million.
Business Outlook
"Looking ahead to the balance of 2015, we will continue to build
on the accomplishments of 2014 and are making measurable progress
on our key strategic initiatives. We continue to accelerate
innovation and leadership across all of our brands. To that
end, we are pursuing new areas of growth, with further development
of, and improvements to, the successes we have been seeing with
multiple products and services. Today, we have a more
diversified, multi-brand business model that enables us to
offset, in part, near-term headwinds from currency effects and the
reduction in recruitment and advertising activity in our Energy
business while continuing to build a stronger platform for
longer-term growth," said Michael
Durney, President and CEO.
The Company is providing a current, point-in-time view of
estimated financial performance for the quarter ending June 30, 2015 and the year ending
December 31, 2015 based on its assessment as of April 29,
2015. The Company's estimated financial performance for 2015
reflects investments in new growth initiatives, ongoing investments
related to product development including Open Web and the
anticipated negative impact of currency fluctuations compared to
2014. Additionally, the Company's estimated financial
performance for 2015 reflects the anticipated negative impact on
its Energy segment from the reduction in recruitment and
advertising activity resulting from the significant decline in oil
prices.
The Company's actual performance will vary based on a number of
factors including those that are outlined in the Company's Annual
Report on Form 10-K for the year ended December 31, 2014 in
the sections entitled "Risk Factors," "Forward-Looking Statements"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations." In addition, for a description of
Adjusted EBITDA as used below, see "Notes Regarding the Use of
Non-GAAP Financial Measures" and for required reconciliations to
the most comparable GAAP measures, see "Supplemental Information
and Non-GAAP Reconciliations."
|
Quarter
ending June 30,
2015
|
Year
ending December 31,
2015
|
|
|
|
Revenues
|
$64.0 - $65.5
mm
|
$263.0 - $271.0
mm
|
|
|
|
Estimated
Contribution by Segment
|
|
|
Tech &
Clearance
|
53%
|
53%
|
Finance
|
13%
|
13%
|
Energy
|
10%
|
9%
|
Healthcare
|
11%
|
12%
|
Hospitality
|
6%
|
6%
|
Corporate &
Other
|
7%
|
7%
|
|
|
|
Adjusted
EBITDA
|
$17.0 - $18.0
mm
|
$77.0 - $82.0
mm
|
|
|
|
Depreciation and
amortization
|
$5.8 - $6.0 mm
|
$23.1 - $23.7
mm
|
Non-cash stock
compensation expense
|
$2.4 - $2.5 mm
|
$9.8 - $10.2
mm
|
Interest expense,
net
|
$0.7 - $0.8 mm
|
$3.0 - $3.3 mm
|
Income
taxes
|
$3.2 - $3.5 mm
|
$15.9 - $17.3
mm
|
|
|
|
Net income
|
$5.0 - $5.5
mm
|
$25.0 - $27.0
mm
|
|
|
|
Diluted earnings per
share
|
$0.09 -
$0.10
|
$0.46 -
$0.50
|
|
|
|
Diluted share
count
|
54 million
|
54 million
|
|
|
|
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 10063657. The replay
will be available until May 7,
2015.
The call will also be webcast live from the Company's website at
www.dhigroupinc.com under the Investor Relations section.
Investor Contact
Jennifer Milan
Director, Investor Relations
DHI Group, Inc.
212-448-4181
ir@dhigroupinc.com
Media Contact
Courtney Chamberlain
Public Relations & Investor Relations Associate
DHI Group, Inc.
212-448-8288
media@dhigroupinc.com
About DHI Group, Inc.
DHI Group, Inc. (NYSE: DHX) (formerly known as Dice Holdings,
Inc.) is a leading provider of specialized websites and services
for professional communities including technology and security
clearance, financial services, energy, healthcare and hospitality.
Our mission is to empower professionals and organizations to
compete and win through specialized insights and relevant
connections. Employers and recruiters use our websites and services
to source and hire the most qualified professionals in select and
highly-skilled occupations, while professionals use our websites
and services to find the best employment opportunities in and most
timely news and information about their respective areas of
expertise. For almost 25 years, we have built our company on
providing employers and recruiters with efficient access to
high-quality, unique professional communities and offering the
professionals in those communities access to highly-relevant career
opportunities, news, tools and information. Today, we serve
multiple markets primarily located throughout North America, Europe and the Asia
Pacific region.
Notes Regarding the Use of Non-GAAP Financial
Measures
The Company has provided certain non-GAAP financial information
as additional information for its operating results. These
measures are not in accordance with, or an alternative for,
generally accepted accounting principles in the United States ("GAAP") and may be
different from similarly titled non-GAAP measures reported by other
companies. The Company believes that its presentation of
non-GAAP measures, such as adjusted earnings before interest,
taxes, depreciation, amortization, non-cash stock based
compensation expense, and other non-recurring income or expense
("Adjusted EBITDA"), free cash flow, Adjusted Revenues, 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 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.
Free Cash Flow
We define free cash flow as net cash provided by operating
activities minus capital expenditures. We believe free cash flow is
an important non-GAAP measure as it provides useful cash flow
information regarding our ability to service, incur or pay down
indebtedness or repurchase our common stock. We use free cash
flow as a measure to reflect cash available to service our debt as
well as to fund our expenditures. A limitation of using free
cash flow versus the GAAP measure of net cash provided by operating
activities is that free cash flow does not represent the total
increase or decrease in the cash balance from operations for the
period since it includes cash used for capital expenditures during
the period and is adjusted for acquisition related payments within
operating cash flows.
Net Cash/Net Debt
Net Cash is defined as cash and cash equivalents less total
debt. Net Debt is defined as total debt less cash and cash
equivalents. We consider Net Cash and Net Debt to be important
measures of liquidity and indicators of our ability to meet ongoing
obligations. We also use Net Cash and Net Debt, among other
measures, in evaluating our choices for capital deployment.
Net Cash and Net Debt presented herein are non-GAAP measures and
may not be comparable to similarly titled measures used by other
companies.
Forward-Looking Statements
This press release and oral statements made from time to time by
our representatives contain forward-looking statements. You should
not place undue reliance on those statements because they are
subject to numerous uncertainties and factors relating to our
operations and business environment, all of which are difficult to
predict and many of which are beyond our control. Forward-looking
statements include information without limitation concerning our
possible or assumed future results of operations, including
descriptions of our business strategy. These statements often
include words such as "may," "will," "should," "believe," "expect,"
"anticipate," "intend," "plan," "estimate" or similar
expressions. These statements are based on assumptions that
we have made in light of our experience in the industry as well as
our perceptions of historical trends, current conditions, expected
future developments and other factors we believe are appropriate
under the circumstances. Although we believe that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect our actual financial
results or results of operations and could cause actual results to
differ materially from those in the forward-looking
statements. These factors include, but are not limited to,
competition from existing and future competitors in the highly
competitive market in which we operate, failure to adapt our
business model to keep pace with rapid changes in the recruiting
and career services business, failure to maintain and develop our
reputation and brand recognition, failure to increase or maintain
the number of customers who purchase recruitment packages,
cyclicality or downturns in the economy or industries we serve,
failure to attract qualified professionals to our websites or grow
the number of qualified professionals who use our websites, failure
to successfully identify or integrate acquisitions, U.S. and
foreign government regulation of the Internet and taxation, our
ability to borrow funds under our revolving credit facility or
refinance our indebtedness and restrictions on our current and
future operations under such indebtedness. These factors and
others are discussed in more detail in the Company's filings with
the Securities and Exchange Commission, all of which are available
on the Investors page of our website at www.dhigroupinc.com,
including the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2014 (Dice Holdings, Inc. as of
December 31, 2014), under the
headings "Risk Factors," "Forward-Looking Statements" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations."
You should keep in mind that any forward-looking statement made
by the Company or its representatives herein, or elsewhere, speaks
only as of the date on which it is made. New risks and
uncertainties come up from time to time, and it is impossible to
predict these events or how they may affect us. We have no
obligation to update any forward-looking statements after the date
hereof, except as required by applicable law.
DHI GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(in thousands except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
63,770
|
|
|
$
|
60,690
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Cost of
revenues
|
|
9,625
|
|
|
8,854
|
|
|
Product
development
|
|
7,089
|
|
|
6,403
|
|
|
Sales and
marketing
|
|
20,678
|
|
|
19,018
|
|
|
General and
administrative
|
|
11,272
|
|
|
11,362
|
|
|
Depreciation
|
|
2,203
|
|
|
2,821
|
|
|
Amortization of
intangible assets
|
|
3,743
|
|
|
4,311
|
|
|
Change in acquisition
related contingencies
|
|
—
|
|
|
45
|
|
|
|
|
Total operating
expenses
|
|
54,610
|
|
|
52,814
|
|
|
Operating
income
|
|
9,160
|
|
|
7,876
|
|
|
Interest
expense
|
|
(808)
|
|
|
(893)
|
|
|
Other
expense
|
|
(27)
|
|
|
(8)
|
|
|
Income before income
taxes
|
|
8,325
|
|
|
6,975
|
|
|
Income tax
expense
|
|
3,233
|
|
|
2,580
|
|
|
Net income
|
|
$
|
5,092
|
|
|
$
|
4,395
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.10
|
|
|
$
|
0.08
|
|
|
Diluted earnings per
share
|
|
$
|
0.09
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
52,267
|
|
|
53,105
|
|
|
Weighted average
diluted shares outstanding
|
|
54,292
|
|
|
55,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
For the three
months
ended March 31,
|
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
5,092
|
|
|
$
|
4,395
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
Depreciation
|
|
2,203
|
|
|
2,821
|
|
|
Amortization of
intangible assets
|
|
3,743
|
|
|
4,311
|
|
|
Deferred income
taxes
|
|
(586)
|
|
|
(1,452)
|
|
|
Amortization of
deferred financing costs
|
|
104
|
|
|
93
|
|
|
Stock based
compensation
|
|
2,503
|
|
|
2,346
|
|
|
Change in acquisition
related contingencies
|
|
—
|
|
|
45
|
|
|
Change in accrual for
unrecognized tax benefits
|
|
83
|
|
|
153
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
2,327
|
|
|
(4,143)
|
|
|
Prepaid expenses and
other assets
|
|
(495)
|
|
|
(2,544)
|
|
|
Accounts payable and
accrued expenses
|
|
(4,164)
|
|
|
(5,763)
|
|
|
Income taxes
receivable/payable
|
|
2,923
|
|
|
2,169
|
|
|
Deferred
revenue
|
|
5,431
|
|
|
9,587
|
|
|
Other, net
|
|
(44)
|
|
|
2
|
|
Net cash flows from
operating activities
|
|
19,120
|
|
|
12,020
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Payments for
acquisitions, net of cash acquired
|
|
—
|
|
|
(26,724)
|
|
|
Purchases of fixed
assets
|
|
(2,476)
|
|
|
(2,569)
|
|
Net cash flows from
investing activities
|
|
(2,476)
|
|
|
(29,293)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Payments on long-term
debt
|
|
(10,625)
|
|
|
(3,625)
|
|
|
Proceeds from
long-term debt
|
|
5,000
|
|
|
6,000
|
|
|
Payments under stock
repurchase plan
|
|
(8,716)
|
|
|
(6,872)
|
|
|
Payment of
acquisition related contingencies
|
|
(3,829)
|
|
|
(824)
|
|
|
Proceeds from stock
option exercises
|
|
3,287
|
|
|
2,514
|
|
|
Purchase of treasury
stock related to vested restricted stock
|
|
(1,532)
|
|
|
(1,054)
|
|
|
Excess tax benefit
over book expense from stock based compensation
|
|
376
|
|
|
197
|
|
Net cash flows from
financing activities
|
|
(16,039)
|
|
|
(3,664)
|
|
Effect of exchange
rate changes
|
|
583
|
|
|
(373)
|
|
Net change in cash
and cash equivalents for the period
|
|
1,188
|
|
|
(21,310)
|
|
Cash and cash
equivalents, beginning of period
|
|
26,777
|
|
|
39,351
|
|
Cash and cash
equivalents, end of period
|
|
$
|
27,965
|
|
|
$
|
18,041
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
March 31,
2015
|
|
December 31,
2014
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
|
27,965
|
|
|
$
|
26,777
|
|
|
|
Accounts receivable,
net
|
|
45,970
|
|
|
49,048
|
|
|
|
Deferred income
taxes—current
|
|
3,340
|
|
|
3,373
|
|
|
|
Income taxes
receivable
|
|
1,444
|
|
|
3,973
|
|
|
|
Prepaid and other
current assets
|
|
5,348
|
|
|
4,764
|
|
|
|
|
Total current
assets
|
|
84,067
|
|
|
87,935
|
|
|
Fixed assets,
net
|
|
16,233
|
|
|
16,066
|
|
|
Acquired intangible
assets, net
|
|
76,282
|
|
|
81,345
|
|
|
Goodwill
|
|
234,751
|
|
|
239,256
|
|
|
Deferred financing
costs, net
|
|
1,216
|
|
|
1,320
|
|
|
Deferred income
taxes—non-current
|
|
249
|
|
|
399
|
|
|
Other
assets
|
|
789
|
|
|
926
|
|
|
|
|
Total
assets
|
|
|
|
|
$
|
413,587
|
|
|
$
|
427,247
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
21,691
|
|
|
$
|
25,714
|
|
|
|
Deferred
revenue
|
|
90,771
|
|
|
86,444
|
|
|
|
Current portion of
acquisition related contingencies
|
|
—
|
|
|
3,883
|
|
|
|
Current portion of
long-term debt
|
|
3,125
|
|
|
2,500
|
|
|
|
Deferred income
taxes—current
|
5
|
|
|
3
|
|
|
|
Income taxes
payable
|
|
1,614
|
|
|
1,205
|
|
|
|
|
Total current
liabilities
|
|
117,206
|
|
|
119,749
|
|
|
Long-term
debt
|
|
101,750
|
|
|
108,000
|
|
|
Deferred income
taxes—non-current
|
|
14,599
|
|
|
15,478
|
|
|
Accrual for
unrecognized tax benefits
|
|
3,475
|
|
|
3,392
|
|
|
Other long-term
liabilities
|
|
2,766
|
|
|
2,830
|
|
|
|
|
Total
liabilities
|
|
239,796
|
|
|
249,449
|
|
|
Total stockholders'
equity
|
|
173,791
|
|
|
177,798
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
413,587
|
|
|
$
|
427,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information and Non-GAAP
Reconciliations
On the pages that follow, the Company has provided certain
supplemental information that we believe will assist the reader in
assessing our business operations and performance, including
certain non-GAAP financial information and required reconciliations
to the most comparable GAAP measure. A statement of
operations and statement of cash flows for the quarters ended
March 31, 2015 and 2014 and a balance sheet as of
March 31, 2015 and December 31, 2014 are provided
elsewhere in this press release.
DHI GROUP,
INC.
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA
|
(Unaudited)
|
(dollars in thousands
except per customer data)
|
|
|
|
|
|
|
|
|
For the three
months
ended March 31,
|
|
|
|
2015
|
|
2014
|
|
Revenues by
Segment (GAAP Revenue)
|
|
|
|
|
Tech & Clearance
(1)
|
$
|
33,324
|
|
|
$
|
31,834
|
|
|
Finance
|
8,585
|
|
|
8,809
|
|
|
Energy
|
6,319
|
|
|
5,921
|
|
|
Healthcare
|
7,067
|
|
|
6,451
|
|
|
Hospitality
|
4,011
|
|
|
2,931
|
|
|
Corporate & Other
(1)
|
4,464
|
|
|
4,744
|
|
|
|
|
$
|
63,770
|
|
|
$
|
60,690
|
|
|
Add back fair
value adjustment to deferred revenue
|
|
|
|
|
Tech &
Clearance
|
$
|
—
|
|
|
$
|
179
|
|
|
Energy
|
—
|
|
|
126
|
|
|
Healthcare
|
—
|
|
|
413
|
|
|
Hospitality
|
—
|
|
|
524
|
|
|
|
|
$
|
—
|
|
|
$
|
1,242
|
|
|
Adjusted Revenues
by Segment
|
|
|
|
|
Tech &
Clearance
|
$
|
33,324
|
|
|
$
|
32,013
|
|
|
Finance
|
8,585
|
|
|
8,809
|
|
|
Energy
|
6,319
|
|
|
6,047
|
|
|
Healthcare
|
7,067
|
|
|
6,864
|
|
|
Hospitality
|
4,011
|
|
|
3,455
|
|
|
Corporate &
Other
|
4,464
|
|
|
4,744
|
|
|
|
|
$
|
63,770
|
|
|
$
|
61,932
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA:
|
|
|
|
|
Net income
|
$
|
5,092
|
|
|
$
|
4,395
|
|
|
|
Interest
expense
|
808
|
|
|
893
|
|
|
|
Income tax
expense
|
3,233
|
|
|
2,580
|
|
|
|
Depreciation
|
2,203
|
|
|
2,821
|
|
|
|
Amortization of
intangible assets
|
3,743
|
|
|
4,311
|
|
|
|
Change in acquisition
related contingencies
|
—
|
|
|
45
|
|
|
|
Non-cash stock
compensation expense
|
2,503
|
|
|
2,346
|
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
1,242
|
|
|
|
Other
|
27
|
|
|
8
|
|
|
Adjusted
EBITDA
|
$
|
17,609
|
|
|
$
|
18,641
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
19,120
|
|
|
$
|
12,020
|
|
|
|
Interest
expense
|
808
|
|
|
893
|
|
|
|
Amortization of
deferred financing costs
|
(104)
|
|
|
(93)
|
|
|
|
Income tax
expense
|
3,233
|
|
|
2,580
|
|
|
|
Deferred income
taxes
|
586
|
|
|
1,452
|
|
|
|
Change in accrual for
unrecognized tax benefits
|
(83)
|
|
|
(153)
|
|
|
|
Change in accounts
receivable
|
(2,327)
|
|
|
4,143
|
|
|
|
Change in deferred
revenue
|
(5,431)
|
|
|
(9,587)
|
|
|
|
Deferred revenue
adjustment
|
—
|
|
|
1,242
|
|
|
|
Changes in working
capital and other
|
1,807
|
|
|
6,144
|
|
|
Adjusted
EBITDA
|
$
|
17,609
|
|
|
$
|
18,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
NON-GAAP AND
QUARTERLY SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
|
|
|
|
|
|
For the three
months
ended March 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
17,609
|
|
|
$
|
18,641
|
|
|
Adjusted EBITDA
Margin (2)
|
27.6
|
%
|
|
30.1
|
%
|
|
|
|
|
|
|
Calculation of
Free Cash Flow
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
19,120
|
|
|
$
|
12,020
|
|
|
Purchases of fixed
assets
|
(2,476)
|
|
|
(2,569)
|
|
|
Free Cash
Flow
|
$
|
16,644
|
|
|
$
|
9,451
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
Beginning of
period
|
7,800
|
|
|
8,100
|
|
|
End of
period
|
7,800
|
|
|
8,000
|
|
|
Average for the
period (3)
|
7,800
|
|
|
8,100
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (4)
|
$
|
1,055
|
|
|
$
|
1,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Definitions:
|
|
|
|
|
Tech &
Clearance: Dice, ClearanceJobs, The IT Job Board and related career
fairs
|
Finance:
eFinancialCareers
|
|
Energy: Rigzone,
OilCareers (from acquisition, March 2014 and integrated into the
Rigzone platform in March 2015) and related career
fairs
|
Healthcare:
HEALTHeCAREERS and BioSpace
|
Hospitality:
Hcareers
|
Corporate &
Other: Corporate related costs, Slashdot Media and
WorkDigital
|
|
|
|
|
|
|
(1) The 2014
period reflects a reclassification of certain revenue from the Tech
& Clearance segment to the Corporate & Other
segment.
|
(2) Adjusted
EBITDA margin is computed as Adjusted EBITDA divided by Adjusted
Revenues.
|
(3) Reflects
the daily average of recruitment package customers during the
period.
|
|
(4) Reflects
simple average of three months in each period.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dhi-group-inc-reports-first-quarter-2015-results-300074007.html
SOURCE DHI Group, Inc.