NEW YORK, Nov. 7, 2019 /PRNewswire/ -- DHI Group, Inc.
(NYSE: DHX) ("DHI" or the "Company") today announced the following
financial results for the third quarter ended September 30, 2019.
Third Quarter 2019 Financial Results
- Revenues were $37.2 million.
Ongoing tech-focused1 revenues were flat year over year
and on a sequential basis, excluding foreign exchange
- Dice revenues were $22.9 million,
down 3% compared to the prior year quarter and down 1% on a
sequential basis
- eFinancialCareers revenues were $7.9
million, down 2% compared to the prior year quarter and flat
on a sequential basis, excluding foreign exchange
- ClearanceJobs revenues were $6.3
million, up 17% year over year and up 5% on a sequential
basis
- Net income was $4.4 million, or
$0.08 per diluted share, compared to
net income of $0.9 million, or
$0.02 per diluted share, in the year
ago quarter
- Cash flow from operations was $4.6
million
- Cash was $4.5 million; total debt
reduced to $8 million
- Adjusted EBITDA2 was $8.7
million and Adjusted EBITDA margin2 was 23%
Commenting on the quarter, Art
Zeile, President and CEO of DHI Group, Inc., said:
"We made continued progress in the third quarter, further
strengthening our product offering and go-to-market strategy, both
of which will be key drivers of our future growth. Our focus on
accelerating product development resulted in hiring additional
engineering talent to improve the rate at which we can launch new
features, specifically for our largest platform, Dice. We also
added new commercial sales people - and with our new CRO,
Arie Kanofsky, now on board - we
will be expanding our commercial sales force significantly over the
next few quarters. We believe these investments will further anchor
DHI as an industry leader for matching technologists with employers
and position the Company to generate sustained long-term revenue
growth in the future."
1 Excludes Dice Europe, which ceased operations
August 31, 2018.
2 See "Notes Regarding the Use of Non-GAAP Financial
Measures" later in this press release.
Product Highlights
Dice
- Job Search and Job
Alerts, the enhanced job search platform features, which
deliver improved search relevance by applying DHI's tech skills
data model and include a new user interface with personalized email
alerts, are now in general availability on Dice.com and in the Dice
iOS and Android mobile apps.
eFinancialCareers
- Recruiter Profile, launched version 2.0, giving
recruiters a place to build their brand on the platform and better
gain the trust of candidates by sharing hiring needs, recent
achievements, upcoming events and company news.
ClearanceJobs
- Employer Dashboard, which delivers real-time user
engagement metrics and uses automated intelligence powered by
IntelliSearch to recommend new candidate/employer connections, is
now available to all clients.
Business Outlook
DHI expects ongoing tech-focused1 revenue for the
fourth quarter to be sequentially flat with the third quarter and
anticipates that Dice revenue will turn to positive year-over-year
growth in 2020. The Company continues to expect Adjusted EBITDA
margin2 for the full 2019 fiscal year to be
approximately 23%, as it continues to increase its product and
engineering capacity, as well as invest in more sales resources to
accelerate growth. The Company is not providing guidance for net
income because it cannot reasonably assess the impact of
stock-based compensation and income tax expense.
1 Excludes Dice Europe, which ceased operations
August 31, 2018.
2 See "Notes Regarding the Use of Non-GAAP Financial
Measures" later in this press release.
Conference Call Information
Art Zeile, President and Chief
Executive Officer, and Luc Grégoire, Chief Financial Officer, will
host a conference call today, November 7,
2019, at 5:00 p.m. Eastern
Time to discuss the Company's financial results, recent
developments and progress on its tech-focused strategy.
The call can be accessed by dialing +1-844-890-1790 (in the
U.S.) or +1-412-380-7407 (outside the U.S.). Please ask to be
placed into the DHI Group, Inc. call. A live webcast of the call
will simultaneously be available through the Investor Relations
section of the Company's website,
https://www.dhigroupinc.com, and available for replay after
the call ends.
About DHI Group, Inc.
DHI Group, Inc. (NYSE: DHX) is a leading provider of data,
insights and employment connections through our specialized
services for technology professionals and other select online
communities. Our mission is to empower technology professionals and
organizations that hire them to compete and win through expert
insights and relevant employment connections. Employers and
recruiters use our websites and services to source, hire and
connect with the most qualified and highly-skilled technology
professionals, while professionals use our websites and services to
find ideal employment opportunities, relevant job advice and
tailored career-related data. For over 25 years, we have built our
Company on providing employers and professionals with career
connections, news, tools and information. Today, we serve multiple
markets in North America, Europe, the Middle East and the Asia
Pacific region. Find out more at www.dhigroupinc.com.
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, measures in
accordance with 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 Revenues, Adjusted EBITDA
and Adjusted EBITDA margin 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 non-GAAP measures apply
to consolidated results and results by segment or other measure as
shown within this document. The Company has provided required
reconciliations to the most comparable GAAP measures elsewhere in
the document.
Adjusted Revenues
Adjusted Revenues is a non-GAAP metric used by management to
measure operating performance. Adjusted Revenues represents
Revenues less the revenues of divested businesses. We consider
Adjusted Revenues to be an important measure to evaluate the
performance of our ongoing businesses and provide comparable
results excluding our divestitures.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP metrics
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 represents net income plus (to the
extent deducted in calculating such net income) interest expense,
income tax expense, depreciation and amortization, non-cash stock
based compensation, losses resulting from certain dispositions
outside the ordinary course of business including prior negative
operating results of those divested businesses, certain writeoffs
in connection with indebtedness, impairment charges with respect to
long-lived assets, expenses incurred in connection with an equity
offering or any other offering of securities by the Company,
extraordinary or non-recurring non-cash expenses or losses,
transaction costs in connection with the credit agreement, deferred
revenues written off in connection with acquisition purchase
accounting adjustments, writeoff of non-cash stock based
compensation expense, severance and retention costs related to
dispositions and reorganizations of the Company, losses related to
legal claims and fees that are unusual in nature or infrequent,
minus (to the extent included in calculating such net income)
non-cash income or gains, interest income, business interruption
insurance proceeds, and any income or gain resulting from certain
dispositions outside the ordinary course of business, including
prior positive operating results of those divested businesses, and
gains related to legal claims that are unusual in nature or
infrequent.
We also 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. 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.
Adjusted EBITDA Margin is computed as Adjusted EBITDA divided by
Adjusted Revenues.
Adjusted Revenues, Adjusted EBITDA and Adjusted EBITDA Margin
are not measurements of our financial performance under GAAP and
should not be considered as an alternative to revenue, net income,
operating income, cash provided by operating activities, 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 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, without limitation, information concerning our
possible or assumed future results of operations. 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, our ability to
execute our tech-focused strategy, competition from existing and
future competitors in the highly competitive markets 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 most recently filed periodic reports on
Form 10-K and Form 10-Q and subsequent filings 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 federal securities laws.
Investor Contact
Todd Kehrli or Jim Byers
MKR Investor Relations, Inc.
212-448-4181
ir@dhigroupinc.com
Media Contact
Rachel Ceccarelli
Director of Corporate Communications
212-448-8288
media@dhigroupinc.com
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(in thousands, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
September 30,
|
|
For the nine
months ended
September 30,
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
37,176
|
|
|
$
|
38,917
|
|
|
$
|
111,655
|
|
|
$
|
123,583
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
4,250
|
|
|
4,424
|
|
|
11,991
|
|
|
14,330
|
|
Product
development
|
4,121
|
|
|
5,219
|
|
|
12,708
|
|
|
15,811
|
|
Sales and
marketing
|
13,615
|
|
|
13,974
|
|
|
41,668
|
|
|
46,628
|
|
General and
administrative
|
7,502
|
|
|
8,843
|
|
|
23,220
|
|
|
28,012
|
|
Depreciation
|
2,415
|
|
|
2,540
|
|
|
7,201
|
|
|
7,155
|
|
Amortization of
intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
482
|
|
Disposition related
and other costs
|
—
|
|
|
2,085
|
|
|
1,700
|
|
|
5,214
|
|
|
Total operating
expenses
|
31,903
|
|
|
37,085
|
|
|
98,488
|
|
|
117,632
|
|
Gain (loss) on sale
of businesses, net
|
—
|
|
|
(365)
|
|
|
(537)
|
|
|
3,435
|
|
Operating
income
|
5,273
|
|
|
1,467
|
|
|
12,630
|
|
|
9,386
|
|
Interest expense and
other
|
(188)
|
|
|
(335)
|
|
|
(512)
|
|
|
(1,370)
|
|
Other
expense
|
—
|
|
|
(9)
|
|
|
—
|
|
|
(42)
|
|
Income before income
taxes
|
5,085
|
|
|
1,123
|
|
|
12,118
|
|
|
7,974
|
|
Income tax
expense
|
704
|
|
|
193
|
|
|
3,088
|
|
|
3,746
|
|
Net income
|
$
|
4,381
|
|
|
$
|
930
|
|
|
$
|
9,030
|
|
|
$
|
4,228
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.09
|
|
|
$
|
0.02
|
|
|
$
|
0.19
|
|
|
$
|
0.09
|
|
Diluted earnings per
share
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
$
|
0.18
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
48,974
|
|
|
48,780
|
|
|
48,668
|
|
|
48,589
|
|
Weighted average
diluted shares outstanding
|
52,137
|
|
|
50,390
|
|
|
51,598
|
|
|
49,707
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
|
|
For the nine
months
ended September 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash flows from (used
in) operating activities:
|
|
|
|
|
|
|
|
Net
income
|
$
|
4,381
|
|
|
$
|
930
|
|
|
$
|
9,030
|
|
|
$
|
4,228
|
|
Adjustments to
reconcile net income to net cash flows from (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
2,415
|
|
|
2,540
|
|
|
7,201
|
|
|
7,155
|
|
Amortization of intangible
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
482
|
|
Deferred income taxes
|
478
|
|
|
1,290
|
|
|
573
|
|
|
1,830
|
|
Amortization of deferred financing
costs
|
36
|
|
|
49
|
|
|
110
|
|
|
146
|
|
Stock based compensation
|
1,057
|
|
|
1,273
|
|
|
4,135
|
|
|
5,362
|
|
Change in accrual for unrecognized
tax benefits
|
109
|
|
|
62
|
|
|
319
|
|
|
382
|
|
(Gain) loss on sale of businesses,
net
|
—
|
|
|
365
|
|
|
537
|
|
|
(3,435)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
3,438
|
|
|
2,290
|
|
|
7,244
|
|
|
15,772
|
|
Prepaid expenses and other
assets
|
(121)
|
|
|
914
|
|
|
66
|
|
|
1,709
|
|
Capitalized contract
costs
|
641
|
|
|
171
|
|
|
1,602
|
|
|
(1,587)
|
|
Accounts payable and accrued
expenses
|
(598)
|
|
|
(335)
|
|
|
(8,144)
|
|
|
(4,180)
|
|
Income taxes
receivable/payable
|
(506)
|
|
|
(1,588)
|
|
|
923
|
|
|
(1,021)
|
|
Deferred revenue
|
(6,680)
|
|
|
(7,930)
|
|
|
(4,774)
|
|
|
(18,622)
|
|
Other, net
|
(37)
|
|
|
362
|
|
|
166
|
|
|
469
|
|
Net cash flows from
operating activities
|
4,613
|
|
|
393
|
|
|
18,988
|
|
|
8,690
|
|
Cash flows from (used
in) investing activities:
|
|
|
|
|
|
|
|
Net
cash received from sale of businesses
|
—
|
|
|
—
|
|
|
2,683
|
|
|
17,542
|
|
Purchases of fixed
assets
|
(4,059)
|
|
|
(2,368)
|
|
|
(10,345)
|
|
|
(6,604)
|
|
Net cash flows from
(used in) investing activities
|
(4,059)
|
|
|
(2,368)
|
|
|
(7,662)
|
|
|
10,938
|
|
Cash flows from (used
in) financing activities:
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
(3,000)
|
|
|
(2,000)
|
|
|
(25,000)
|
|
|
(30,000)
|
|
Proceeds from long-term
debt
|
1,000
|
|
|
—
|
|
|
15,000
|
|
|
5,000
|
|
Payments under stock repurchase
plan
|
(1,271)
|
|
|
(733)
|
|
|
(1,762)
|
|
|
(828)
|
|
Purchase of treasury stock related
to vested restricted stock units
|
(316)
|
|
|
(80)
|
|
|
(1,366)
|
|
|
(547)
|
|
Net cash flows used
in financing activities
|
(3,587)
|
|
|
(2,813)
|
|
|
(13,128)
|
|
|
(26,375)
|
|
Effect of exchange
rate changes
|
(126)
|
|
|
(102)
|
|
|
(216)
|
|
|
(662)
|
|
Net change in cash
and cash equivalents for the period
|
(3,159)
|
|
|
(4,890)
|
|
|
(2,018)
|
|
|
(7,409)
|
|
Cash and cash
equivalents, beginning of period
|
7,613
|
|
|
9,549
|
|
|
6,472
|
|
|
12,068
|
|
Cash and cash
equivalents, end of period
|
$
|
4,454
|
|
|
$
|
4,659
|
|
|
$
|
4,454
|
|
|
$
|
4,659
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
September 30,
2019
|
|
December 31,
2018
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
4,454
|
|
|
$
|
6,472
|
|
|
Accounts receivable,
net
|
15,425
|
|
|
22,850
|
|
|
Income taxes
receivable
|
945
|
|
|
2,203
|
|
|
Prepaid and other
current assets
|
3,178
|
|
|
7,330
|
|
|
|
Total current
assets
|
24,002
|
|
|
38,855
|
|
Fixed assets,
net
|
18,922
|
|
|
15,890
|
|
Acquired intangible
assets
|
39,000
|
|
|
39,000
|
|
Capitalized contract
costs
|
6,299
|
|
|
7,939
|
|
Goodwill
|
151,949
|
|
|
153,974
|
|
Deferred income
taxes
|
80
|
|
|
136
|
|
Operating lease right
of use asset
|
15,865
|
|
|
—
|
|
Other
assets
|
2,563
|
|
|
2,591
|
|
|
|
Total
assets
|
$
|
258,680
|
|
|
$
|
258,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
16,209
|
|
|
$
|
25,030
|
|
|
Operating lease
liabilities
|
3,846
|
|
|
—
|
|
|
Deferred
revenue
|
50,147
|
|
|
54,723
|
|
|
Income taxes
payable
|
819
|
|
|
1,168
|
|
|
|
Total current
liabilities
|
71,021
|
|
|
80,921
|
|
Long-term debt,
net
|
7,398
|
|
|
17,288
|
|
Deferred income
taxes
|
10,953
|
|
|
10,444
|
|
Deferred
revenue
|
950
|
|
|
1,363
|
|
Accrual for
unrecognized tax benefits
|
1,999
|
|
|
1,680
|
|
Operating lease
liabilities
|
12,653
|
|
|
—
|
|
Other long-term
liabilities
|
421
|
|
|
1,334
|
|
|
|
Total
liabilities
|
105,395
|
|
|
113,030
|
|
|
|
Total
stockholders' equity
|
153,285
|
|
|
145,355
|
|
|
|
Total liabilities
and stockholders' equity
|
$
|
258,680
|
|
|
$
|
258,385
|
|
|
|
|
|
|
|
Supplemental Information and Non-GAAP
Reconciliations
On the pages that follow, the Company has provided certain
supplemental information that we believe will assist the reader in
assessing our business operations and performance, including
certain non-GAAP financial information and required reconciliations
to the most comparable GAAP measure. A statement of operations and
statement of cash flows for the three and nine month periods ended
September 30, 2019 and 2018 and balance sheets as of
September 30, 2019 and December 31,
2018 are provided elsewhere in this press release.
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA
|
(Unaudited)
|
(dollars in
thousands, except per customer data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended September 30,
|
|
For the nine
months
ended September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of Net
Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net
income
|
$
|
4,381
|
|
|
$
|
930
|
|
|
$
|
9,030
|
|
|
$
|
4,228
|
|
|
Interest
expense
|
186
|
|
|
335
|
|
|
512
|
|
|
1,370
|
|
|
Income tax
expense
|
704
|
|
|
193
|
|
|
3,088
|
|
|
3,746
|
|
|
Depreciation
|
2,415
|
|
|
2,540
|
|
|
7,201
|
|
|
7,155
|
|
|
Amortization of
intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
482
|
|
|
Non-cash stock based
compensation
|
1,057
|
|
|
1,273
|
|
|
4,135
|
|
|
5,362
|
|
|
(Gain) loss on sale
of businesses, net
|
—
|
|
|
365
|
|
|
537
|
|
|
(3,435)
|
|
|
Disposition related
and other costs
|
—
|
|
|
2,085
|
|
|
1,700
|
|
|
5,214
|
|
|
Legal contingencies
and related fees
|
—
|
|
|
157
|
|
|
163
|
|
|
1,777
|
|
|
Divested
businesses
|
—
|
|
|
(28)
|
|
|
—
|
|
|
(2,243)
|
|
|
Other
|
(59)
|
|
|
8
|
|
|
(61)
|
|
|
42
|
|
Adjusted
EBITDA
|
$
|
8,684
|
|
|
$
|
7,858
|
|
|
$
|
26,305
|
|
|
$
|
23,698
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
4,613
|
|
|
$
|
393
|
|
|
$
|
18,988
|
|
|
$
|
8,690
|
|
|
Interest
expense
|
186
|
|
|
335
|
|
|
512
|
|
|
1,370
|
|
|
Amortization of
deferred financing costs
|
(36)
|
|
|
(49)
|
|
|
(110)
|
|
|
(146)
|
|
|
Income tax
expense
|
704
|
|
|
193
|
|
|
3,088
|
|
|
3,746
|
|
|
Deferred income
taxes
|
(478)
|
|
|
(1,290)
|
|
|
(573)
|
|
|
(1,830)
|
|
|
Change in accrual for
unrecognized tax benefits
|
(109)
|
|
|
(62)
|
|
|
(319)
|
|
|
(382)
|
|
|
Change in accounts
receivable
|
(3,438)
|
|
|
(2,290)
|
|
|
(7,244)
|
|
|
(15,772)
|
|
|
Change in deferred
revenue
|
6,680
|
|
|
7,930
|
|
|
4,774
|
|
|
18,622
|
|
|
Disposition related
and other costs
|
—
|
|
|
2,085
|
|
|
1,700
|
|
|
5,214
|
|
|
Legal contingencies
and related fees
|
—
|
|
|
157
|
|
|
163
|
|
|
1,777
|
|
|
Divested
businesses
|
—
|
|
|
(28)
|
|
|
—
|
|
|
(2,243)
|
|
|
Changes in working
capital and other
|
562
|
|
|
484
|
|
|
5,326
|
|
|
4,652
|
|
Adjusted
EBITDA
|
$
|
8,684
|
|
|
$
|
7,858
|
|
|
$
|
26,305
|
|
|
$
|
23,698
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
Beginning of
period
|
6,100
|
|
|
6,200
|
|
|
6,200
|
|
|
6,450
|
|
End of
period
|
6,100
|
|
|
6,200
|
|
|
6,100
|
|
|
6,200
|
|
|
|
|
|
|
|
|
|
|
Average for the
period (1)
|
6,100
|
|
|
6,200
|
|
|
6,100
|
|
|
6,200
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per Recruitment Package Customer (2)
|
$
|
1,131
|
|
|
$
|
1,125
|
|
|
$
|
1,132
|
|
|
$
|
1,116
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects
the daily average of recruitment package customers during the
period.
|
(2) Reflects
the simple average of each period presented.
|
|
Summary of Deferred
Revenue and Backlog:
|
|
September 30,
2019
|
|
December 31,
2018
|
|
September 30,
2018
|
Deferred
Revenue
|
|
$
|
51,097
|
|
|
$
|
56,086
|
|
|
$
|
56,425
|
|
Contractual
commitments not invoiced
|
|
22,664
|
|
|
25,845
|
|
|
15,649
|
|
Backlog3
|
|
$
|
73,761
|
|
|
$
|
81,931
|
|
|
$
|
72,074
|
|
|
|
|
|
|
|
|
(3) Backlog
consists of deferred revenue plus customer contractual commitments
not invoiced representing the value of future services to be
rendered under committed contracts.
|
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2019
|
Reconciliation of
Operating Income to Adjusted EBITDA:
|
Tech-focused
|
|
Other
|
|
Total
|
Operating
income
|
$
|
5,273
|
|
|
$
|
—
|
|
|
$
|
5,273
|
|
|
Depreciation
|
2,415
|
|
|
—
|
|
|
2,415
|
|
|
Non-cash stock based
compensation
|
1,057
|
|
|
—
|
|
|
1,057
|
|
|
Other
|
(61)
|
|
|
—
|
|
|
(61)
|
|
Adjusted
EBITDA
|
$
|
8,684
|
|
|
$
|
—
|
|
|
$
|
8,684
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2018
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA:
|
Tech-focused
|
|
Other
|
|
Total
|
Operating income
(loss)
|
$
|
1,867
|
|
|
$
|
(400)
|
|
|
$
|
1,467
|
|
|
Depreciation
|
2,495
|
|
|
45
|
|
|
2,540
|
|
|
Non-cash stock based
compensation
|
1,254
|
|
|
19
|
|
|
1,273
|
|
|
Disposition related
and other costs
|
2,085
|
|
|
—
|
|
|
2,085
|
|
|
Legal contingencies
and fees
|
157
|
|
|
—
|
|
|
157
|
|
|
Loss on sale of
businesses
|
—
|
|
|
365
|
|
|
365
|
|
|
Divested
businesses
|
—
|
|
|
(28)
|
|
|
(28)
|
|
|
Other
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Adjusted
EBITDA
|
$
|
7,858
|
|
|
$
|
—
|
|
|
$
|
7,858
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2019
|
Reconciliation of
Operating Income to Adjusted EBITDA:
|
Tech-focused
|
|
Other
|
|
Total
|
Operating
income
|
$
|
12,630
|
|
|
$
|
—
|
|
|
$
|
12,630
|
|
|
Depreciation
|
7,201
|
|
|
—
|
|
|
7,201
|
|
|
Non-cash stock based
compensation
|
4,135
|
|
|
—
|
|
|
4,135
|
|
|
Disposition related
and other costs
|
1,700
|
|
|
—
|
|
|
1,700
|
|
|
Legal contingencies
and fees
|
163
|
|
|
—
|
|
|
163
|
|
|
Loss on sale of
businesses
|
537
|
|
|
—
|
|
|
537
|
|
|
Other
|
(61)
|
|
|
|
|
(61)
|
|
Adjusted
EBITDA
|
$
|
26,305
|
|
|
$
|
—
|
|
|
$
|
26,305
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2018
|
Reconciliation of
Operating Income to Adjusted EBITDA:
|
Tech-focused
|
|
Other
|
|
Total
|
Operating
income
|
$
|
4,907
|
|
|
$
|
4,479
|
|
|
$
|
9,386
|
|
|
Depreciation
|
6,876
|
|
|
279
|
|
|
7,155
|
|
|
Amortization of
intangible assets
|
—
|
|
|
482
|
|
|
482
|
|
|
Non-cash stock based
compensation
|
5,190
|
|
|
172
|
|
|
5,362
|
|
|
Disposition related
and other costs
|
4,947
|
|
|
267
|
|
|
5,214
|
|
|
Legal contingencies
and fees
|
1,777
|
|
|
—
|
|
|
1,777
|
|
|
Divested
businesses
|
—
|
|
|
(2,243)
|
|
|
(2,243)
|
|
|
Gain on sale of
business
|
—
|
|
|
(3,435)
|
|
|
(3,435)
|
|
|
Other
|
1
|
|
|
(1)
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
23,698
|
|
|
$
|
—
|
|
|
$
|
23,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2019
|
Reconciliation of
Revenues to Adjusted Revenues:
|
Tech-focused
|
|
Other
|
|
Total
|
Revenues
|
$
|
37,176
|
|
|
$
|
—
|
|
|
$
|
37,176
|
|
|
Divested
businesses
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted
Revenues
|
$
|
37,176
|
|
|
$
|
—
|
|
|
$
|
37,176
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2018
|
Reconciliation of
Revenues to Adjusted Revenues:
|
Tech-focused
|
|
Other
|
|
Total
|
Revenues
|
$
|
37,986
|
|
|
$
|
931
|
|
|
$
|
38,917
|
|
|
Divested
businesses
|
—
|
|
|
(931)
|
|
|
(931)
|
|
Adjusted
Revenues
|
$
|
37,986
|
|
|
$
|
—
|
|
|
$
|
37,986
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2019
|
Reconciliation of
Revenues to Adjusted Revenues:
|
Tech-focused
|
|
Other
|
|
Total
|
Revenues
|
$
|
111,655
|
|
|
$
|
—
|
|
|
$
|
111,655
|
|
|
Divested
businesses
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted
Revenues
|
$
|
111,655
|
|
|
$
|
—
|
|
|
$
|
111,655
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2018
|
Reconciliation of
Revenues to Adjusted Revenues:
|
Tech
|
|
Other
|
|
Total
|
Revenues
|
$
|
114,271
|
|
|
$
|
9,312
|
|
|
$
|
123,583
|
|
|
Divested
businesses
|
—
|
|
|
(9,312)
|
|
|
(9,312)
|
|
Adjusted
Revenues
|
$
|
114,271
|
|
|
$
|
—
|
|
|
$
|
114,271
|
|
|
Definitions:
|
Tech-focused: Dice,
Dice Europe (ceased operations on August 31, 2018),
eFinancialCareers, ClearanceJobs, Targeted Job Fairs and
Corporate.
|
|
Other:1
Hcareers, Rigzone, and BioSpace.
|
|
1 Majority
ownership of the BioSpace business was transferred to BioSpace
management on January 31, 2018, the RigLogix portion of the Rigzone
business was sold on February 20, 2018, Hcareers was sold on May
22, 2018, and majority ownership of the remaining Rigzone business
was transferred to Rigzone management on August 31,
2018.
|
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
(in
thousands)
|
|
|
Revenue
|
|
|
Q3
2019
|
|
Q3
2018
|
|
Change
|
|
$ Fx
Impact3
|
Dice
|
|
$
|
22,915
|
|
|
$
|
23,715
|
|
|
(3)%
|
|
$
|
—
|
|
eFinancialCareers
|
|
7,941
|
|
|
8,388
|
|
|
(5)%
|
|
(269)
|
|
ClearanceJobs
|
|
6,320
|
|
|
5,422
|
|
|
17%
|
|
—
|
|
Tech-focused,
excluding Dice Europe
|
|
37,176
|
|
|
37,525
|
|
|
(1)%
|
|
(269)
|
|
Dice
Europe (1)
|
|
—
|
|
|
461
|
|
|
n.m.
|
|
—
|
|
Tech-focused
|
|
37,176
|
|
|
37,986
|
|
|
(2)%
|
|
(269)
|
|
Rigzone
(2)
|
|
—
|
|
|
931
|
|
|
n.m.
|
|
—
|
|
Other
|
|
—
|
|
|
931
|
|
|
n.m.
|
|
—
|
|
Total
Revenues
|
|
$
|
37,176
|
|
|
$
|
38,917
|
|
|
(4)%
|
|
$
|
(269)
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
4,381
|
|
|
$
|
930
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
|
|
|
Adjusted
Revenues
|
|
$
|
37,176
|
|
|
$
|
37,986
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
8,684
|
|
|
$
|
7,858
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
23%
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
YTD
2019
|
|
YTD
2018
|
|
Change
|
|
$ Fx
Impact3
|
Dice
|
|
$
|
69,276
|
|
|
$
|
70,486
|
|
|
(2)%
|
|
$
|
—
|
|
eFinancialCareers
|
|
24,263
|
|
|
25,418
|
|
|
(5)%
|
|
(1,017)
|
|
ClearanceJobs
|
|
18,116
|
|
|
15,359
|
|
|
18%
|
|
—
|
|
Tech-focused,
excluding Dice Europe
|
|
111,655
|
|
|
111,263
|
|
|
—%
|
|
(1,017)
|
|
Dice
Europe(1)
|
|
—
|
|
|
3,008
|
|
|
n.m.
|
|
—
|
|
Tech-focused
|
|
111,655
|
|
|
114,271
|
|
|
(2)%
|
|
(1,017)
|
|
Hcareers(2)
|
|
—
|
|
|
5,329
|
|
|
n.m.
|
|
—
|
|
Rigzone(2)
|
|
—
|
|
|
3,771
|
|
|
n.m.
|
|
—
|
|
BioSpace(2)
|
|
—
|
|
|
212
|
|
|
n.m.
|
|
—
|
|
Other
|
|
—
|
|
|
9,312
|
|
|
n.m.
|
|
—
|
|
Total
Revenues
|
|
$
|
111,655
|
|
|
$
|
123,583
|
|
|
(10)%
|
|
$
|
(1,017)
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
9,030
|
|
|
$
|
4,228
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
|
0.18
|
|
|
$
|
0.09
|
|
|
|
|
|
Adjusted
Revenues
|
|
$
|
111,655
|
|
|
$
|
114,271
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
26,305
|
|
|
$
|
23,698
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
24%
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Dice Europe
ceased operations on August 31, 2018.
|
(2) Majority
ownership of the BioSpace business was transferred to BioSpace
management on January 31, 2018, the RigLogix portion of the Rigzone
business was sold on February 20, 2018, Hcareers was sold on May
22, 2018, and majority ownership of the remaining Rigzone business
was transferred to Rigzone management on August 31,
2018.
|
(3) Foreign exchange
impact is calculated by determining the increase (decrease) in
current period revenues where current period revenues are
translated using prior period exchange rates.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/dhi-group-reports-third-quarter-2019-financial-results-300954152.html
SOURCE DHI Group, Inc.