NEW YORK, Oct. 17, 2016 /PRNewswire/ -- 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 announced it will host a conference call to discuss third
quarter 2016 financial results on Tuesday,
November 1, 2016 at 8:30 AM Eastern
Time. Hosting the quarterly earnings call will be
Michael Durney, President and Chief
Executive Officer. A press release with third quarter financial
results will be issued prior to the conference call that
morning.
Preliminary Q3 Performance Update
Based on preliminary analysis, third quarter 2016 results will
be below the Company's previous outlook, as follows:
($ in millions,
except EPS)
|
Preliminary Q3
2016 Results
|
July 27 Q3
2016 Outlook
|
Revenues
|
$ 56.0
|
$57.5 –
$58.5
|
Total Adjusted
EBITDA
|
$ 14.8
|
$16.0 –
$17.0
|
Diluted earnings per
share (excluding the impact of impairment of intangible assets and
goodwill)1
|
$ 0.10
|
$0.11 –
$0.12
|
|
|
|
1 The
Company may incur an impairment charge related to goodwill and
intangible assets of up to $25 million pre-tax during the third
quarter of 2016. The impairment analysis has not yet been completed
and, as a result, the Company is unable to estimate Net Income or
Diluted Earnings Per Share on a GAAP basis or provide a
reconciliation of Net Income on a GAAP basis to Total Adjusted
EBITDA at this time.
|
The differences from the third quarter 2016 outlook issued on
July 27, 2016 in conjunction with
second quarter 2016 results are primarily due to lower than
expected sales of traditional recruitment products in our core
talent acquisition brands, slower than expected adoption of new
pay-for-performance products, changes in customer usage patterns –
specifically in healthcare – and slowness related to ongoing
uncertainty around Brexit. We believe these factors will continue
to impact our business in the fourth quarter. The Company will
provide an update on its business operations and full-year 2016
outlook when it reports full third quarter 2016 results. In
addition, the Company will provide an update on the business
strategy review it has undertaken over the past few months.
"The talent acquisition industry in which we operate continues
to evolve at an accelerating pace, and as we evolve with it
challenging periods are inevitable," said Michael Durney, President and CEO of DHI Group,
Inc. "We remain optimistic that our strong brands in key
professional verticals coupled with our growth initiatives will
position us as a leading talent solution for employers and career
resource for professionals, and ultimately enhance shareholder
value."
Preliminary third quarter results are subject to change
consistent with the completion of our normal quarter-end accounting
procedures.
Conference Call Information
Shareholders, investors and analysts may register for the call
in the following ways:
- Pre-register to receive a unique PIN to gain immediate access
on the day of the call. You can pre-register for the call by
clicking here.
- Join the call, without pre-registering, on the day of the event
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.
- Listen to the webcast live from the Company's website in the
Investor Relations section under Presentations & Events at
www.dhigroupinc.com
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 10094699. The replay
will be available until November 8, 2016.
Investor Contact
Brendan
Metrano
VP, Investor Relations
DHI Group, Inc.
212-448-4181
ir@dhigroupinc.com
Media Contact
Rachel
Ceccarelli
Director, Corporate Communications
DHI Group, Inc.
212-448-8288
media@dhigroupinc.com
About DHI Group, Inc.
DHI Group, Inc. (NYSE: DHX) is a leading provider of data,
insights and employment connections through our specialized
services for professional communities including technology and
security clearance, financial services, energy, healthcare and
hospitality. 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") provides useful information to management and
investors regarding certain financial and business trends relating
to its financial condition and results of operations.
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 write-offs 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, write-off 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 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 also 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 as a measure
of our profitability.
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 these 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, the
uncertainty surrounding the United
Kingdom's future departure from the European Union,
including uncertainty in respect of the regulation of data
protection and data privacy, 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.
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SOURCE DHI Group, Inc.